☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||
Emerging growth company | ☐ |
Class A Common Stock, $1.00 par value | ||
Class B Common Stock, $1.00 par value |
Page Number | ||||||
Part I | ||||||
| 3 | |||||
Item 1. | ||||||
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Consolidated Balance Sheets:
| 4 | |||||
Consolidated Statements of Income: Three Months and Nine Months Ended | 5 | |||||
Consolidated Statements of Comprehensive Income: Three Months and Nine Months Ended | 6 | |||||
Consolidated Statements of Changes in Stockholders’ Equity: Three Months Ended | 7 | |||||
Consolidated Statements of
| 8 | |||||
9 | ||||||
Item 2. | ||||||
Item 3. | 47 | |||||
Item 4. | 47 | |||||
Part II. | ||||||
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Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
Item 6. | ||||||
50 | ||||||
Exhibits | ||||||
| Ex-31.1 | |||||
Ex-31.2 | ||||||
Ex-32.1 | ||||||
Ex-32.2 | ||||||
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March 31, | December 31, | |||||||
2020 | 2019 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 64,523 | $ | 44,420 | ||||
Federal funds sold and interest-bearing deposits in other banks | 218,488 | 214,273 | ||||||
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Total cash and cash equivalents | 283,011 | 258,693 | ||||||
Securitiesavailable-for-sale, amortized cost $280,520 and $260,924, respectively | 278,019 | 260,502 | ||||||
Securitiesheld-to-maturity, fair value $2,365,027 and $2,361,304, respectively | 2,304,074 | 2,351,120 | ||||||
Federal Home Loan Bank of Boston, stock at cost | 17,241 | 19,471 | ||||||
Equity securities, amortized cost $1,635 and $1,635, respectively | 1,609 | 1,688 | ||||||
Loans, net: | ||||||||
Construction and land development | 6,493 | 8,992 | ||||||
Commercial and industrial | 867,599 | 812,417 | ||||||
Municipal | 141,588 | 120,455 | ||||||
Commercial real estate | 761,464 | 786,102 | ||||||
Residential real estate | 393,338 | 371,897 | ||||||
Consumer and overdrafts | 21,039 | 21,893 | ||||||
Home equity | 307,373 | 304,363 | ||||||
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Total loans, net | 2,498,894 | 2,426,119 | ||||||
Less: allowance for loan losses | 30,804 | 29,585 | ||||||
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Net loans | 2,468,090 | 2,396,534 | ||||||
Bank premises and equipment | 36,238 | 33,952 | ||||||
Accrued interest receivable | 12,998 | 13,110 | ||||||
Goodwill | 2,714 | 2,714 | ||||||
Other assets | 158,292 | 154,640 | ||||||
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Total assets | $ | 5,562,286 | $ | 5,492,424 | ||||
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Liabilities | ||||||||
Deposits: | ||||||||
Demand deposits | $ | 797,570 | $ | 712,842 | ||||
Savings and NOW deposits | 1,662,414 | 1,678,250 | ||||||
Money market accounts | 1,489,679 | 1,453,572 | ||||||
Time deposits | 612,849 | 555,447 | ||||||
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| |||||
Total deposits | 4,562,512 | 4,400,111 | ||||||
Securities sold under agreements to repurchase | 219,995 | 266,045 | ||||||
Other borrowed funds | 312,120 | 370,955 | ||||||
Subordinated debentures | 36,083 | 36,083 | ||||||
Due to broker | 5,500 | — | ||||||
Other liabilities | 85,389 | 86,649 | ||||||
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Total liabilities | 5,221,599 | 5,159,843 | ||||||
Stockholders’ Equity | ||||||||
Preferred Stock – $1.00 par value; 100,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Common stock, Class A, $1.00 par value per share; authorized 10,000,000 shares; issued 3,652,349 shares and 3,650,949 shares, respectively | 3,652 | 3,651 | ||||||
Common stock, Class B, $1.00 par value per share; authorized 5,000,000 shares; issued 1,915,560 shares and 1,916,960 shares respectively | 1,916 | 1,917 | ||||||
Additionalpaid-in capital | 12,292 | 12,292 | ||||||
Retained earnings | 348,093 | 338,980 | ||||||
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365,953 | 356,840 | |||||||
Unrealized losses on securitiesavailable-for-sale, net of taxes | (1,839 | ) | (308 | ) | ||||
Unrealized losses on securities transferred toheld-to-maturity, net of taxes | (1,648 | ) | (1,812 | ) | ||||
Pension liability, net of taxes | (21,779 | ) | (22,139 | ) | ||||
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Total accumulated other comprehensive loss, net of taxes | (25,266 | ) | (24,259 | ) | ||||
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Total stockholders’ equity | 340,687 | 332,581 | ||||||
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Total liabilities and stockholders’ equity | $ | 5,562,286 | $ | 5,492,424 | ||||
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Assets | September 30, 2020 | December 31, 2019 | ||||||
Cash and due from banks | $ | 101,679 | $ | 44,420 | ||||
Federal funds sold and interest-bearing deposits in other banks | 310,901 | 214,273 | ||||||
Total cash and cash equivalents | 412,580 | 258,693 | ||||||
Securities available-for-sale, | 291,632 | 260,502 | ||||||
Securities held-to-maturity, | 2,407,176 | 2,351,120 | ||||||
Federal Home Loan Bank of Boston, stock at cost | 13,361 | 19,471 | ||||||
Equity securities, cost $1,635 and $1,635, respectively | 1,645 | 1,688 | ||||||
Loans, net: | ||||||||
Construction and land development | 9,116 | 8,992 | ||||||
Commercial and industrial | 1,315,407 | 812,417 | ||||||
Municipal | 130,047 | 120,455 | ||||||
Commercial real estate | 784,895 | 786,102 | ||||||
Residential real estate | 443,703 | 371,897 | ||||||
Consumer and overdrafts | 19,866 | 21,893 | ||||||
Home equity | 287,099 | 304,363 | ||||||
Total loans, net | 2,990,133 | 2,426,119 | ||||||
Less: allowance for loan losses | 33,394 | 29,585 | ||||||
Net loans | 2,956,739 | 2,396,534 | ||||||
Bank premises and equipment | 37,340 | 33,952 | ||||||
Accrued interest receivable | 13,223 | 13,110 | ||||||
Goodwill | 2,714 | 2,714 | ||||||
Other assets | 159,016 | 154,640 | ||||||
Total assets | $ | 6,295,426 | $ | 5,492,424 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Demand deposits | $ | 991,590 | $ | 712,842 | ||||
Savings and NOW deposits | 1,932,339 | 1,678,250 | ||||||
Money market accounts | 1,906,676 | 1,453,572 | ||||||
Time deposits | 581,866 | 555,447 | ||||||
Total deposits | 5,412,471 | 4,400,111 | ||||||
Securities sold under agreements to repurchase | 231,030 | 266,045 | ||||||
Other borrowed funds | 152,248 | 370,955 | ||||||
Subordinated debentures | 36,083 | 36,083 | ||||||
Due to broker | 9,977 | — | ||||||
Other liabilities | 90,183 | 86,649 | ||||||
Total liabilities | 5,931,992 | 5,159,843 | ||||||
Stockholders’ Equity | ||||||||
Preferred Stock – $1.00 par value; 100,000 shares authorized; 0 shares issued and outstanding | — | — | ||||||
Common stock, Class A, $1.00 par value per share; authorized 10,000,000 shares; issued 3,655,469 shares and 3,650,949 shares, respectively | 3,656 | 3,651 | ||||||
Common stock, Class B, $1.00 par value per share; authorized 5,000,000 shares; issued 1,912,440 shares and 1,916,960 shares respectively | 1,912 | 1,917 | ||||||
Additional paid-in capital | 12,292 | 12,292 | ||||||
Retained earnings | 367,836 | 338,980 | ||||||
385,696 | 356,840 | |||||||
Unrealized gains(losses) on securities available-for-sale, | 137 | (308 | ) | |||||
Unrealized losses on securities transferred to held-to-maturity, | (1,341 | ) | (1,812 | ) | ||||
Pension liability, net of taxes | (21,058 | ) | (22,139 | ) | ||||
Total accumulated other comprehensive loss, net of taxes | (22,262 | ) | (24,259 | ) | ||||
Total stockholders’ equity | 363,434 | 332,581 | ||||||
Total liabilities and stockholders’ equity | $ | 6,295,426 | $ | 5,492,424 | ||||
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Interest income | ||||||||
Loans | $ | 22,199 | $ | 21,309 | ||||
Securitiesheld-to-maturity | 15,293 | 13,788 | ||||||
Securitiesavailable-for-sale | 1,693 | 2,631 | ||||||
Federal funds sold and interest-bearing deposits in other banks | 610 | 1,349 | ||||||
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Total interest income | 39,795 | 39,077 | ||||||
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Interest expense | ||||||||
Savings and NOW deposits | 3,725 | 5,466 | ||||||
Money market accounts | 5,572 | 5,343 | ||||||
Time deposits | 3,172 | 2,793 | ||||||
Securities sold under agreements to repurchase | 626 | 385 | ||||||
Other borrowed funds and subordinated debentures | 1,499 | 1,652 | ||||||
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Total interest expense | 14,594 | 15,639 | ||||||
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Net interest income | 25,201 | 23,438 | ||||||
Provision for loan losses | 1,075 | 375 | ||||||
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Net interest income after provision for loan losses | 24,126 | 23,063 | ||||||
Other operating income | ||||||||
Service charges on deposit accounts | 2,296 | 2,209 | ||||||
Lockbox fees | 930 | 1,089 | ||||||
Gains on sales of mortgage loans | — | 15 | ||||||
Other income | 1,084 | 1,114 | ||||||
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Total other operating income | 4,310 | 4,427 | ||||||
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Operating expenses | ||||||||
Salaries and employee benefits | 11,371 | 11,035 | ||||||
Occupancy | 1,515 | 1,701 | ||||||
Equipment | 837 | 783 | ||||||
FDIC Assessments | — | 373 | ||||||
Other | 4,450 | 4,298 | ||||||
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Total operating expenses | 18,173 | 18,190 | ||||||
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Income before income taxes | 10,263 | 9,300 | ||||||
(Benefit) Provision for income taxes | 597 | (118 | ) | |||||
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Net income | $ | 9,666 | $ | 9,418 | ||||
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Share data: | ||||||||
Weighted average number of shares outstanding, basic | ||||||||
Class A | 3,652,349 | 3,610,329 | ||||||
Class B | 1,915,560 | 1,957,580 | ||||||
Weighted average number of shares outstanding, diluted | ||||||||
Class A | 5,567,909 | 5,567,909 | ||||||
Class B | 1,915,560 | 1,957,580 | ||||||
Basic earnings per share: | ||||||||
Class A | $ | 2.10 | $ | 2.05 | ||||
Class B | $ | 1.05 | $ | 1.03 | ||||
Diluted earnings per share | ||||||||
Class A | $ | 1.74 | $ | 1.69 | ||||
Class B | $ | 1.05 | $ | 1.03 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Interest income | ||||||||||||||||
Loans | $ | 21,431 | $ | 22,117 | $ | 63,478 | $ | 65,106 | ||||||||
Securities held-to-maturity | 14,186 | 14,623 | 44,701 | 43,006 | ||||||||||||
Securities available-for-sale | 818 | 2,184 | 3,493 | 7,305 | ||||||||||||
Federal funds sold and interest-bearing deposits in other banks | 69 | 928 | 747 | 3,204 | ||||||||||||
Total interest income | 36,504 | 39,852 | 112,419 | 118,621 | ||||||||||||
Interest expense | ||||||||||||||||
Savings and NOW deposits | 1,726 | 5,445 | 7,569 | 16,788 | ||||||||||||
Money market accounts | 3,056 | 5,050 | 12,090 | 15,805 | ||||||||||||
Time deposits | 2,858 | 3,038 | 9,141 | 8,724 | ||||||||||||
Securities sold under agreements to repurchase | 241 | 697 | 1,176 | 1,572 | ||||||||||||
Other borrowed funds and subordinated debentures | 1,292 | 1,852 | 4,093 | 5,274 | ||||||||||||
Total interest expense | 9,173 | 16,082 | 34,069 | 48,163 | ||||||||||||
Net interest income | 27,331 | 23,770 | 78,350 | 70,458 | ||||||||||||
Provision for loan losses | 900 | 75 | 3,675 | 700 | ||||||||||||
Net interest income after provision for loan losses | 26,431 | 23,695 | 74,675 | 69,758 | ||||||||||||
Other operating income | ||||||||||||||||
Service charges on deposit accounts | 2,239 | 2,310 | 6,558 | 6,801 | ||||||||||||
Lockbox fees | 996 | 937 | 2,850 | 3,018 | ||||||||||||
Net gains on sales of securities | — | 53 | — | 61 | ||||||||||||
Gains on sales of mortgage loans | — | — | — | 154 | ||||||||||||
Other income | 934 | 986 | 3,112 | 3,676 | ||||||||||||
Total other operating income | 4,169 | 4,286 | 12,520 | 13,710 | ||||||||||||
Operating expenses | ||||||||||||||||
Salaries and employee benefits | 11,362 | 10,670 | 33,020 | 32,621 | ||||||||||||
Occupancy | 1,477 | 1,463 | 4,448 | 4,686 | ||||||||||||
Equipment | 809 | 862 | 2,608 | 2,440 | ||||||||||||
FDIC assessments | 410 | — | 720 | 723 | ||||||||||||
Other | 4,109 | 4,467 | 12,586 | 13,447 | ||||||||||||
Total operating expenses | 18,167 | 17,462 | 53,382 | 53,917 | ||||||||||||
Income before income taxes | 12,433 | 10,519 | 33,813 | 29,551 | ||||||||||||
Provision for income taxes | 1,546 | 435 | 3,204 | 584 | ||||||||||||
Net income | $ | 10,887 | $ | 10,084 | $ | 30,609 | $ | 28,967 | ||||||||
Share data: | ||||||||||||||||
Weighted average number of shares outstanding, basic | ||||||||||||||||
Class A | 3,655,469 | 3,650,449 | 3,653,429 | 3,627,076 | ||||||||||||
Class B | 1,912,440 | 1,917,460 | 1,914,480 | 1,940,833 | ||||||||||||
Weighted average number of shares outstanding, diluted | ||||||||||||||||
Class A | 5,567,909 | 5,567,909 | 5,567,909 | 5,567,909 | ||||||||||||
Class B | 1,912,440 | 1,917,460 | 1,914,480 | 1,940,833 | ||||||||||||
Basic earnings per share: | ||||||||||||||||
Class A | $ | 2.36 | $ | 2.19 | $ | 6.64 | $ | 6.30 | ||||||||
Class B | $ | 1.18 | $ | 1.09 | $ | 3.32 | $ | 3.15 | ||||||||
Diluted earnings per share | ||||||||||||||||
Class A | $ | 1.96 | $ | 1.81 | $ | 5.50 | $ | 5.20 | ||||||||
Class B | $ | 1.18 | $ | 1.09 | $ | 3.32 | $ | 3.15 |
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 9,666 | $ | 9,418 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized gains (losses) on securities: | ||||||||
Unrealized (losses) gains arising during period | (1,531 | ) | (462 | ) | ||||
Less: reclassification adjustment for gains included in net income | — | — | ||||||
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Total unrealized (losses) gains on securities | (1,531 | ) | (462 | ) | ||||
Accretion of net unrealized losses transferred | 164 | 216 | ||||||
Defined benefit pension plans: | ||||||||
Amortization of prior service cost and loss included in net periodic benefit cost | 360 | 263 | ||||||
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Other comprehensive (loss) income | (1,007 | ) | 17 | |||||
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Comprehensive income | $ | 8,659 | $ | 9,435 | ||||
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Three months ended September 30, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 10,887 | $ | 10,084 | ||||
Other comprehensive income, net of tax: | ||||||||
Unrealized gains on securities: | ||||||||
Unrealized gains arising during period | 486 | 113 | ||||||
Less: reclassification adjustment for gains included in net income | — | (39 | ) | |||||
Total unrealized gains on securities | 486 | 74 | ||||||
Accretion of net unrealized losses transferred | 145 | 155 | ||||||
Defined benefit pension plans: | ||||||||
Amortization of prior service cost and loss included in net periodic benefit cost | 360 | 263 | ||||||
Other comprehensive income | 991 | 492 | ||||||
Comprehensive income | $ | 11,878 | $ | 10,576 | ||||
Nine months ended September 30, | ||||||||
2020 | 2019 | |||||||
Net income | $ | 30,609 | $ | 28,967 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Unrealized gains (losses) on securities: | ||||||||
Unrealized gains (losses) arising during period | 445 | (112 | ) | |||||
Less: reclassification adjustment for gains included in net income | — | (44 | ) | |||||
Total unrealized gains (losses) on securities | 445 | (156 | ) | |||||
Accretion of net unrealized losses transferred | 471 | 574 | ||||||
Defined benefit pension plans: | ||||||||
Amortization of prior service cost and loss included in net periodic benefit cost | 1,081 | 790 | ||||||
Other comprehensive income | 1,997 | 1,208 | ||||||
Comprehensive income | $ | 32,606 | $ | 30,175 | ||||
Accumulated | ||||||||||||||||||||||||
Class A | Class B | Additional | Other | Total | ||||||||||||||||||||
Common | Common | Paid-In | Retained | Comprehensive | Stockholders’ | |||||||||||||||||||
Stock | Stock | Capital | Earnings | Income (Loss) | Equity | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 3,608 | $ | 1,960 | $ | 12,292 | $ | 301,488 | $ | (18,909 | ) | $ | 300,439 | |||||||||||
Net income | — | — | — | 9,418 | — | 9,418 | ||||||||||||||||||
Other comprehensive income, net of tax: | — | |||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net of $166 in taxes | — | — | — | — | (462 | ) | (462 | ) | ||||||||||||||||
Accretion of unrealized losses on securities transferred toheld-to-maturity, net of $78 in taxes | — | — | — | — | 216 | 216 | ||||||||||||||||||
Pension liability adjustment, net of $103 in taxes | — | — | — | — | 263 | 263 | ||||||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock, 2,300 shares | 2 | (2 | ) | — | — | — | — | |||||||||||||||||
Cash dividends paid, Class A common stock, $0.12 per share | — | — | — | (433 | ) | — | (433 | ) | ||||||||||||||||
Cash dividends paid, Class B common stock, $0.06 per share | — | — | — | (117 | ) | — | (117 | ) | ||||||||||||||||
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Balance at March 31, 2019 | $ | 3,610 | $ | 1,958 | $ | 12,292 | $ | 310,356 | $ | (18,892 | ) | $ | 309,324 | |||||||||||
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Balance at December 31, 2019 | $ | 3,651 | $ | 1,917 | $ | 12,292 | $ | 338,980 | $ | (24,259 | ) | $ | 332,581 | |||||||||||
Net income | — | — | — | 9,666 | — | 9,666 | ||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net of $548 in taxes | — | — | — | — | (1,531 | ) | (1,531 | ) | ||||||||||||||||
Accretion of unrealized losses on securities transferred toheld-to-maturity, net of $58 in taxes | — | — | — | — | 164 | 164 | ||||||||||||||||||
Pension liability adjustment, net of $141 in taxes | — | — | — | — | 360 | 360 | ||||||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock, 1,400 shares | 1 | (1 | ) | — | — | — | — | |||||||||||||||||
Cash dividends paid, Class A common stock, $0.12 per share | — | — | — | (438 | ) | — | (438 | ) | ||||||||||||||||
Cash dividends paid, Class B common stock, $0.06 per share | — | — | — | (115 | ) | — | (115 | ) | ||||||||||||||||
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Balance at March 31, 2020 | $ | 3,652 | $ | 1,916 | $ | 12,292 | $ | 348,093 | $ | (25,266 | ) | $ | 340,687 | |||||||||||
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Class A Common Stock | Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 3,620 | $ | 1,948 | $ | 12,292 | $ | 319,270 | $ | (18,193 | ) | $ | 318,937 | |||||||||||
Net income | — | — | — | 10,084 | — | 10,084 | ||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net of $23 in taxes and $53 in realized gains | — | — | — | — | 74 | 74 | ||||||||||||||||||
Accretion of unrealized losses on securities transferred to held-to-maturity, | — | — | — | — | 155 | 155 | ||||||||||||||||||
Pension liability adjustment, net of $103 in taxes | — | — | — | — | 263 | 263 | ||||||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock, 30,000 shares | 30 | (30 | ) | — | — | — | — | |||||||||||||||||
Cash dividends paid, Class A common stock, $.12 per share | — | — | — | (438 | ) | — | (438 | ) | ||||||||||||||||
Cash dividends paid, Class B common stock, $.06 per share | — | — | — | (115 | ) | — | (115 | ) | ||||||||||||||||
Balance at September 30, 2019 | $ | 3,650 | $ | 1,918 | $ | 12,292 | $ | 328,801 | $ | (17,701 | ) | $ | 328,960 | |||||||||||
Balance at June 30, 2020 | $ | 3,653 | $ | 1,915 | $ | 12,292 | $ | 357,595 | $ | (23,253 | ) | $ | 352,202 | |||||||||||
Net income | — | — | — | 10,887 | 10,887 | |||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net of $181 in taxes | — | — | — | — | 486 | 486 | ||||||||||||||||||
Accretion of unrealized losses on securities transferred to held-to-maturity, | — | — | — | — | 145 | 145 | ||||||||||||||||||
Pension liability adjustment, net of $142 in taxes | — | — | — | — | 360 | 360 | ||||||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock, 3,000 shares | 3 | (3 | ) | — | — | — | — | |||||||||||||||||
Cash dividends paid, Class A common stock, $0.14 per share | — | — | — | (512 | ) | — | (512 | ) | ||||||||||||||||
Cash dividends paid, Class B common stock, $0.07 per share | — | — | — | (134 | ) | — | (134 | ) | ||||||||||||||||
Balance at September 30, 2020 | $ | 3,656 | $ | 1,912 | $ | 12,292 | $ | 367,836 | $ | (22,262 | ) | $ | 363,434 | |||||||||||
Three months ended March 31, | ||||||||
2020 | 2019 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 9,666 | $ | 9,418 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Gain on sales of mortgage loans | — | (15 | ) | |||||
Net loss (gain) on equity securities | 79 | (53 | ) | |||||
Provision for loan losses | 1,075 | 375 | ||||||
Deferred income taxes | (114 | ) | 104 | |||||
Net depreciation and amortization | (578 | ) | (468 | ) | ||||
Decrease (increase) in accrued interest receivable | 112 | (58 | ) | |||||
(Increase) decrease in other assets | 2,359 | 2,187 | ||||||
Increase in other liabilities | (336 | ) | (458 | ) | ||||
|
|
|
| |||||
Net cash provided by operating activities | 12,263 | 11,032 | ||||||
|
|
|
| |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from redemptions of Federal Home Loan Bank of Boston stock | 6,831 | 4,777 | ||||||
Purchase of Federal Home Loan Bank of Boston stock | (4,601 | ) | (1,047 | ) | ||||
Proceeds from calls/maturities of securitiesavailable-for-sale | 20,734 | 34,927 | ||||||
Purchase of securitiesavailable-for-sale | (39,719 | ) | (34,031 | ) | ||||
Proceeds from calls/maturities of securitiesheld-to-maturity | 123,723 | 88,027 | ||||||
Purchase of securitiesheld-to-maturity | (70,171 | ) | (148,500 | ) | ||||
Net increase in loans | (72,621 | ) | (25,811 | ) | ||||
Proceeds from sales of portfolio loans | — | 685 | ||||||
Bank owned life insurance purchases | (6,000 | ) | — | |||||
Capital expenditures | (3,084 | ) | (1,344 | ) | ||||
|
|
|
| |||||
Net cash used in investing activities | (44,908 | ) | (82,317 | ) | ||||
|
|
|
| |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net increase (decrease) in time deposits | 57,402 | (18,500 | ) | |||||
Net increase in demand, savings, money market and NOW deposits | 104,999 | 61,163 | ||||||
Cash dividends | (553 | ) | (550 | ) | ||||
Net (decrease) increase in securities sold under agreements to repurchase | (46,050 | ) | 10,260 | |||||
Net (decrease) increase in other borrowed funds | (58,835 | ) | 54,770 | |||||
|
|
|
| |||||
Net cash provided by financing activities | 56,963 | 107,143 | ||||||
|
|
|
| |||||
Net increase in cash and cash equivalents | 24,318 | 35,858 | ||||||
Cash and cash equivalents at beginning of period | 258,693 | 342,503 | ||||||
|
|
|
| |||||
Cash and cash equivalents at end of period | $ | 283,011 | $ | 378,361 | ||||
|
|
|
| |||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid (received) during the period for: | ||||||||
Interest | $ | 14,711 | $ | 15,462 | ||||
Income taxes | 300 | (1,265 | ) | |||||
Change in unrealized gains (losses) on securitiesavailable-for-sale, net of taxes | (1,531 | ) | (462 | ) | ||||
Change in unrealized losses on securities transferred toheld-to-maturity, net of taxes | 164 | 216 | ||||||
Pension liability adjustment, net of taxes | 360 | 263 | ||||||
Change in due to (from) to broker | 5,500 | 11,740 |
Class A Common Stock | Class B Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Equity | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 3,608 | $ | 1,960 | $ | 12,292 | $ | 301,488 | $ | (18,909 | ) | $ | 300,439 | �� | ||||||||||
Net income | — | — | — | 28,967 | — | 28,967 | ||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net of $52 in taxes and $61 in realized gains | — | — | — | — | (156 | ) | (156 | ) | ||||||||||||||||
Accretion of unrealized losses on securities transferred to held-to-maturity, | — | — | — | — | 574 | 574 | ||||||||||||||||||
Pension liability adjustment, net of $309 in taxes | — | — | — | — | 790 | 790 | ||||||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock, 42,120 shares | 42 | (42 | ) | — | — | — | — | |||||||||||||||||
Cash dividends paid, Class A common stock, $.36 per share | — | — | — | (1,304 | ) | — | (1,304 | ) | ||||||||||||||||
Cash dividends paid, Class B common stock, $.18 per share | — | — | — | (350 | ) | — | (350 | ) | ||||||||||||||||
Balance at September 30, 2019 | $ | 3,650 | $ | 1,918 | $ | 12,292 | $ | 328,801 | $ | (17,701 | ) | $ | 328,960 | |||||||||||
Balance at December 31, 2019 | $ | 3,651 | $ | 1,917 | $ | 12,292 | $ | 338,980 | $ | (24,259 | ) | $ | 332,581 | |||||||||||
Net income | — | — | — | 30,609 | 30,609 | |||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net of $169 in taxes | — | — | — | — | 445 | 445 | ||||||||||||||||||
Accretion of unrealized losses on securities transferred to held-to-maturity, | — | — | — | — | 471 | 471 | ||||||||||||||||||
Pension liability adjustment, net of $422 in taxes | — | — | — | — | 1,081 | 1,081 | ||||||||||||||||||
Conversion of Class B Common Stock to Class A Common Stock, 4,520 shares | 5 | (5 | ) | — | — | — | — | |||||||||||||||||
Cash dividends paid, Class A common stock, $0.38 per share | — | — | — | (1,389 | ) | — | (1,389 | ) | ||||||||||||||||
Cash dividends paid, Class B common stock, $0.19 per share | — | — | — | (364 | ) | — | (364 | ) | ||||||||||||||||
Balance at September 30, 2020 | $ | 3,656 | $ | 1,912 | $ | 12,292 | $ | 367,836 | $ | (22,262 | ) | $ | 363,434 | |||||||||||
Nine months ended September 30, | ||||||||
2020 | 2019 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 30,609 | $ | 28,967 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Gain on sales of mortgage loans | — | (154 | ) | |||||
Net gains on sales of securities | — | (61 | ) | |||||
Net loss (gain) on equity securities | 43 | (76 | ) | |||||
Provision for loan losses | 3,675 | 700 | ||||||
Deferred income taxes | (1,487 | ) | (593 | ) | ||||
Net depreciation and amortization | (1,167 | ) | (1,693 | ) | ||||
(Increase) decrease in accrued interest receivable | (113 | ) | 1,131 | |||||
Decrease (increase) in other assets | 3,897 | (1,037 | ) | |||||
Increase in other liabilities | 3,396 | 2,029 | ||||||
Net cash provided by operating activities | 38,853 | 29,213 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Proceeds from redemptions of Federal Home Loan Bank of Boston stock | 10,836 | 13,801 | ||||||
Purchase of Federal Home Loan Bank of Boston stock | (4,726 | ) | (9,852 | ) | ||||
Proceeds from calls/maturities of securities available-for-sale | 57,493 | 115,574 | ||||||
Proceeds from sales of securities available-for-sale | — | 16,285 | ||||||
Purchase of securities available-for-sale | (87,751 | ) | (57,005 | ) | ||||
Proceeds from calls/maturities of securities held-to-maturity | 596,043 | 313,358 | ||||||
Purchase of securities held-to-maturity | (638,023 | ) | (427,124 | ) | ||||
Proceeds from sales of securities held-to-maturity | — | 1,194 | ||||||
(Purchases) proceeds from life insurance policies | (6,000 | ) | 5,124 | |||||
Net increase in loans | (563,850 | ) | (98,915 | ) | ||||
Proceeds from sales of portfolio loans | — | 8,871 | ||||||
Capital expenditures | (5,873 | ) | (9,962 | ) | ||||
Net cash used in investing activities | (641,851 | ) | (128,651 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net increase (decrease) in time deposits | 26,419 | (27,505 | ) | |||||
Net increase (decrease) in demand, savings, money market and NOW deposits | 985,941 | (39,606 | ) | |||||
Cash dividends | (1,753 | ) | (1,654 | ) | ||||
Net (decrease) increase in securities sold under agreements to repurchase | (35,015 | ) | 152,995 | |||||
Net (decrease) increase in other borrowed funds | (218,707 | ) | 6,810 | |||||
Net cash provided by financing activities | 756,885 | 91,040 | ||||||
Net increase (decrease) in cash and cash equivalents | 153,887 | (8,398 | ) | |||||
Cash and cash equivalents at beginning of period | 258,693 | 342,503 | ||||||
Cash and cash equivalents at end of period | $ | 412,580 | $ | 334,105 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid (received) during the period for: | ||||||||
Interest | $ | 34,384 | $ | 48,127 | ||||
Income taxes | 1,750 | (6,604 | ) | |||||
Change in unrealized gains (losses) on securities available-for-sale, | 445 | (156 | ) | |||||
Change in unrealized gains (losses) on securities transferred to held-to-maturity, | 471 | 574 | ||||||
Pension liability adjustment, net of taxes | 1,081 | 790 | ||||||
Change in due to broker | 9,977 | — |
Three
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
SBA Backed Securities | $ | 50,722 | $ | 25 | $ | 132 | $ | 50,615 | $ | 54,331 | $ | 23 | $ | 143 | $ | 54,211 | ||||||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 208,596 | 157 | 2,538 | 206,215 | 184,580 | 139 | 532 | 184,187 | ||||||||||||||||||||||||
Privately Issued Residential Mortgage-Backed Securities | 378 | — | 44 | 334 | 397 | 1 | 2 | 396 | ||||||||||||||||||||||||
Obligations Issued by States and Political Subdivisions | 17,224 | — | — | 17,224 | 18,016 | 60 | — | 18,076 | ||||||||||||||||||||||||
Other Debt Securities | 3,600 | 42 | 11 | 3,631 | 3,600 | 51 | 19 | 3,632 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | $ | 280,520 | $ | 224 | $ | 2,725 | $ | 278,019 | $ | 260,924 | $ | 274 | $ | 696 | $ | 260,502 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
SBA Backed Securities | $ | 46,147 | $ | 0 | $ | 282 | $ | 45,865 | $ | 54,331 | $ | 23 | $ | 143 | $ | 54,211 | ||||||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 189,531 | 767 | 394 | 189,904 | 184,580 | 139 | 532 | 184,187 | ||||||||||||||||||||||||
Privately Issued Residential Mortgage-Backed Securities | 347 | 1 | 7 | 341 | 397 | 1 | 2 | 396 | ||||||||||||||||||||||||
Obligations Issued by States and Political Subdivisions | 48,815 | 0 | — | 48,815 | 18,016 | 60 | — | 18,076 | ||||||||||||||||||||||||
Other Debt Securities | 6,600 | 113 | 6 | 6,707 | 3,600 | 51 | 19 | 3,632 | ||||||||||||||||||||||||
Total | $ | 291,440 | $ | 881 | $ | 689 | $ | 291,632 | $ | 260,924 | $ | 274 | $ | 696 | $ | 260,502 | ||||||||||||||||
September 30, 2020. The Company realized gross gains of $13,000 from the proceeds of $16,285,000 from the sales of
Amortized | Fair | |||||||
Cost | Value | |||||||
(in thousands) | ||||||||
Within one year | $ | 18,618 | $ | 18,568 | ||||
After one but within five years | 149,846 | 148,675 | ||||||
After five but within ten years | 107,266 | 105,995 | ||||||
More than 10 years | 4,790 | 4,781 | ||||||
|
|
|
| |||||
Total | $ | 280,520 | $ | 278,019 | ||||
|
|
|
|
Amortized Cost | Fair Value | |||||||
(in thousands) | ||||||||
Within one year | $ | 52,775 | $ | 52,763 | ||||
After one but within five years | 124,574 | 125,000 | ||||||
After five but within ten years | 97,505 | 97,430 | ||||||
More than 10 years | 16,586 | 16,439 | ||||||
Total | $ | 291,440 | $ | 291,632 | ||||
Page 10 of 42
The following table shows the temporarily impaired securities of the Company’sMarch 31,September 30, 2020. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 5614 and 2520 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 124148 holdings at March 31,September 30, 2020.
March 31, 2020 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Temporarily Impaired Investments | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
SBA Backed Securities | $ | 12,806 | $ | 25 | $ | 20,687 | $ | 107 | $ | 33,493 | $ | 132 | ||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 131,960 | 1,846 | 43,274 | 692 | 175,234 | 2,538 | ||||||||||||||||||
Privately Issued Residential Mortgage-Backed Securities | 334 | 44 | — | — | 334 | 44 | ||||||||||||||||||
Obligations Issued by States and Political Subdivisions | — | — | ||||||||||||||||||||||
Other Debt Securities | 800 | — | 489 | 11 | 1,289 | 11 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total temporarily impaired securities | $ | 145,900 | $ | 1,915 | $ | 64,450 | $ | 810 | $ | 210,350 | $ | 2,725 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Temporarily Impaired Investments | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
SBA Backed Securities | $ | 16,625 | $ | 50 | $ | 29,240 | $ | 232 | $ | 45,865 | $ | 282 | ||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 29,870 | 156 | 33,686 | 238 | 63,556 | 394 | ||||||||||||||||||
Privately Issued Residential Mortgage-Backed Securities | 219 | 7 | — | — | 219 | 7 | ||||||||||||||||||
Obligations Issued by States and Political Subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Other Debt Securities | — | — | 1,294 | 6 | 1,294 | 6 | ||||||||||||||||||
Total temporarily impaired securities | $ | 46,714 | $ | 213 | $ | 64,220 | $ | 476 | $ | 110,934 | $ | 689 | ||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Temporarily Impaired Investments | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
SBA Backed Securities | $ | 14,560 | $ | 30 | $ | 22,092 | $ | 113 | $ | 36,652 | $ | 143 | ||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage- Backed Securities | 108,806 | 379 | 29,178 | 153 | 137,984 | 532 | ||||||||||||||||||
Privately Issued Residential Mortgage-Backed Securities | 252 | 2 | — | — | 252 | 2 | ||||||||||||||||||
Obligations Issued by States and Political Subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Other Debt Securities | 800 | 1 | 481 | 18 | 1,281 | 19 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total temporarily impaired securities | $ | 124,418 | $ | 412 | $ | 51,751 | $ | 284 | $ | 176,169 | $ | 696 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
Temporarily Impaired Investments | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
SBA Backed Securities | $ | 14,560 | $ | 30 | $ | 22,092 | $ | 113 | $ | 36,652 | $ | 143 | ||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 108,806 | 379 | 29,178 | 153 | 137,984 | 532 | ||||||||||||||||||
Privately Issued Residential Mortgage-Backed Securities | 252 | 2 | — | — | 252 | 2 | ||||||||||||||||||
Obligations Issued by States and Political Subdivisions | — | — | — | — | — | — | ||||||||||||||||||
Other Debt Securities | 800 | 1 | 481 | 18 | 1,281 | 19 | ||||||||||||||||||
Total temporarily impaired securities | $ | 124,418 | $ | 412 | $ | 51,751 | $ | 284 | $ | 176,169 | $ | 696 | ||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | |||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | Amortized | Unrealized | Unrealized | Estimated | |||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
U.S. Government Sponsored Enterprises | $ | 89,419 | $ | 1,113 | $ | — | $ | 90,532 | $ | 98,867 | $ | 527 | $ | 96 | $ | 99,298 | ||||||||||||||||
SBA Backed Securities | 42,856 | 492 | 69 | 43,279 | 44,379 | 182 | 303 | 44,258 | ||||||||||||||||||||||||
U.S. Government Sponsored Enterprises Mortgage-Backed Securities | 2,171,799 | 61,037 | 1,620 | 2,231,216 | 2,207,874 | 20,720 | 10,846 | 2,217,748 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | $ | 2,304,074 | $ | 62,642 | $ | 1,689 | $ | 2,365,027 | $ | 2,351,120 | $ | 21,429 | $ | 11,245 | $ | 2,361,304 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
U.S. Government Sponsored Enterprises | $ | 248,211 | $ | 594 | $ | 494 | $ | 248,311 | $ | 98,867 | $ | 527 | $ | 96 | $ | 99,298 | ||||||||||||||||
SBA Backed Securities | 39,384 | 2,375 | 0 | 41,759 | 44,379 | 182 | 303 | 44,258 | ||||||||||||||||||||||||
U.S. Government Sponsored Enterprises Mortgage- Backed Securities | 2,119,581 | 76,185 | 889 | 2,194,877 | 2,207,874 | 20,720 | 10,846 | 2,217,748 | ||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Total | $ | 2,407,176 | $ | 79,154 | $ | 1,383 | $ | 2,484,947 | $ | 2,351,120 | $ | 21,429 | $ | 11,245 | $ | 2,361,304 | ||||||||||||||||
Page 11September 30, 2020. The Company realized gross gains of 42
Amortized | Fair | |||||||
Cost | Value | |||||||
(in thousands) | ||||||||
Within one year | $ | 90,437 | $ | 91,896 | ||||
After one but within five years | 1,921,419 | 1,971,224 | ||||||
After five but within ten years | 280,016 | 289,074 | ||||||
More than ten years | 12,202 | 12,833 | ||||||
|
|
|
| |||||
Total | $ | 2,304,074 | $ | 2,365,027 | ||||
|
|
|
|
Amortized Cost | Fair Value | |||||||
(in thousands) | ||||||||
Within one year | $ | 64,436 | $ | 64,929 | ||||
After one but within five years | 1,954,304 | 2,018,674 | ||||||
After five but within ten years | 385,428 | 397,910 | ||||||
More than ten years | 3,008 | 3,434 | ||||||
Total | $ | 2,407,176 | $ | 2,484,947 | ||||
In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary.
March 31, 2020 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Temporarily Impaired Investments | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
SBA Backed Securities | $ | 12,725 | $ | 69 | $ | — | $ | — | $ | 12,725 | $ | 69 | ||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 197,134 | 911 | 53,703 | 709 | 250,837 | 1,620 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total temporarily impaired securities | $ | 209,859 | $ | 980 | $ | 53,703 | $ | 709 | $ | 263,562 | $ | 1,689 | ||||||||||||
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Page 12 of 42
September 30, 2020 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Temporarily Impaired Investments | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
SBA Backed Securities | $ | 0 | $ | 0 | $ | — | $ | — | $ | 0 | $ | 0 | ||||||||||||
US Government Sponsored Enterprises Mortgage-Backed Securities | 128,240 | 494 | — | — | 128,240 | 494 | ||||||||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 129,158 | 840 | 4,176 | 49 | 133,334 | 889 | ||||||||||||||||||
Total temporarily impaired securities | $ | 257,398 | $ | 1,334 | $ | 4,176 | $ | 49 | $ | 261,574 | $ | 1,383 | ||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total |
| |||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Temporarily Impaired Investments | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
U.S. Government Sponsored Enterprises | 24,420 | 72 | 9,976 | 24 | 34,396 | 96 | ||||||||||||||||||
SBA Backed Securities | 25,251 | 303 | — | — | 25,251 | 303 | ||||||||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 613,905 | 3,949 | 389,919 | 6,897 | 1,003,824 | 10,846 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total temporarily impaired securities | $ | 663,576 | $ | 4,324 | $ | 399,895 | $ | 6,921 | $ | 1,063,471 | $ | 11,245 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Temporarily Impaired Investments | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
U.S. Government Sponsored Enterprises | 24,420 | 72 | 9,976 | 24 | 34,396 | 96 | ||||||||||||||||||
SBA Backed Securities | 25,251 | 303 | — | — | 25,251 | 303 | ||||||||||||||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities | 613,905 | 3,949 | 389,919 | 6,897 | 1,003,824 | 10,846 | ||||||||||||||||||
Total temporarily impaired securities | $ | 663,576 | $ | 4,324 | $ | 399,895 | $ | 6,921 | $ | 1,063,471 | $ | 11,245 | ||||||||||||
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Allowance for loan losses, beginning of period | $ | 29,585 | $ | 28,543 | ||||
Loans charged off | (62 | ) | (142 | ) | ||||
Recoveries on loans previouslycharged-off | 206 | 72 | ||||||
|
|
|
| |||||
Net recoveries (charge-offs) | 144 | (70 | ) | |||||
Provision charged to expense | 1,075 | 375 | ||||||
|
|
|
| |||||
Allowance for loan losses, end of period | $ | 30,804 | $ | 28,848 | ||||
|
|
|
|
Three months ended | Nine months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Allowance for loan losses, beginning of period | $ | 32,516 | $ | 29,070 | $ | 29,585 | $ | 28,543 | ||||||||
Loans charged off | (41 | ) | (118 | ) | (120 | ) | (336 | ) | ||||||||
Recoveries on loans previously charged-off | 19 | 70 | 254 | 190 | ||||||||||||
Net recoveries (charge-offs) | (22 | ) | (48 | ) | 134 | (146 | ) | |||||||||
Provision charged to expense | 900 | 75 | 3,675 | 700 | ||||||||||||
Allowance for loan losses, end of period | $ | 33,394 | $ | 29,097 | $ | 33,394 | $ | 29,097 | ||||||||
Construction | Commercial | |||||||||||||||||||||||||||||||||||
and Land | and | Commercial | Residential | Home | ||||||||||||||||||||||||||||||||
Development | Industrial | Municipal | Real Estate | Real Estate | Consumer | Equity | Unallocated | Total | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 331 | $ | 11,596 | $ | 2,566 | $ | 11,464 | $ | 2,194 | $ | 312 | $ | 1,065 | $ | 57 | $ | 29,585 | ||||||||||||||||||
Charge-offs | — | (5 | ) | — | — | — | (57 | ) | — | — | (62 | ) | ||||||||||||||||||||||||
Recoveries | — | 164 | — | — | — | 37 | 5 | — | 206 | |||||||||||||||||||||||||||
Provision | (85 | ) | 673 | 323 | (343 | ) | 255 | 4 | 67 | 181 | 1,075 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Ending balance at March 31, 2020 | $ | 246 | $ | 12,428 | $ | 2,889 | $ | 11,121 | $ | 2,449 | $ | 296 | $ | 1,137 | $ | 238 | $ | 30,804 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Amount of allowance for loan losses for loans deemed to be impaired | $ | — | $ | — | $ | — | $ | 85 | $ | — | $ | — | $ | — | $ | — | $ | 85 | ||||||||||||||||||
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
| |||||||||||||||||||
Amount of allowance for loan losses for loans not deemed to be impaired | $ | 246 | $ | 12,428 | $ | 2,889 | $ | 11,036 | $ | 2,449 | $ | 296 | $ | 1,137 | $ | 238 | $ | 30,719 | ||||||||||||||||||
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 6,493 | $ | 867,599 | $ | 141,588 | $ | 761,464 | $ | 393,338 | $ | 21,039 | $ | 307,373 | $ | — | $ | 2,498,894 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Loans deemed to be impaired | $ | — | $ | 623 | $ | — | $ | 2,322 | $ | — | $ | — | $ | — | $ | — | $ | 2,945 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
| |||||||||||||||||||
Loans not deemed to be impaired | $ | 6,493 | $ | 866,976 | $ | 141,588 | $ | 759,142 | $ | 393,338 | $ | 21,039 | $ | 307,373 | $ | — | $ | 2,495,949 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development | Commercial and Industrial | Municipal | Commercial Real Estate | Residential Real Estate | Consumer | Home Equity | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | (in thousands) | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 289 | $ | 13,121 | $ | 2,868 | $ | 11,303 | $ | 3,094 | $ | 289 | $ | 1,465 | $ | 87 | $ | 32,516 | ||||||||||||||||||
Charge-offs | — | (20 | ) | — | — | — | (21 | ) | — | — | (41 | ) | ||||||||||||||||||||||||
Recoveries | — | 12 | — | — | — | 7 | 0 | — | 19 | |||||||||||||||||||||||||||
Provision | 76 | 2,731 | (300 | ) | (522 | ) | (958 | ) | 35 | (200 | ) | 38 | 900 | |||||||||||||||||||||||
Ending balance at September 30, 2020 | $ | 365 | $ | 15,844 | $ | 2,568 | $ | 10,781 | $ | 2,136 | $ | 310 | $ | 1,265 | $ | 125 | $ | 33,394 | ||||||||||||||||||
Amount of allowance for loan losses for loans deemed to be impaired | $ | — | $ | 12 | $ | — | $ | 75 | $ | — | $ | — | $ | — | $ | — | $ | 87 | ||||||||||||||||||
Amount of allowance for loan losses for loans not deemed to be impaired | $ | 365 | $ | 15,832 | $ | 2,568 | $ | 10,706 | $ | 2,136 | $ | 310 | $ | 1,265 | $ | 125 | $ | 33,307 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 9,116 | $ | 1,315,407 | $ | 130,047 | $ | 784,895 | $ | 443,703 | $ | 19,866 | $ | 287,099 | $ | — | $ | 2,990,133 | ||||||||||||||||||
Loans deemed to be impaired | $ | — | $ | 160 | $ | — | $ | 2,675 | $ | 236 | $ | — | $ | — | $ | — | $ | 3,071 | ||||||||||||||||||
Loans not deemed to be impaired | $ | 9,116 | $ | 1,315,247 | $ | 130,047 | $ | 782,220 | $ | 443,467 | $ | 19,866 | $ | 287,099 | $ | — | $ | 2,987,062 | ||||||||||||||||||
Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2020 is as follows: | ||||||||||||||||||||||||||||||||||||
Construction and Land Development | Commercial and Industrial | Municipal | Commercial Real Estate | Residential Real Estate | Consumer | Home Equity | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | (in thousands) | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 331 | $ | 11,596 | $ | 2,566 | $ | 11,464 | $ | 2,194 | $ | 312 | $ | 1,065 | $ | 57 | $ | 29,585 | ||||||||||||||||||
Charge-offs | — | (31 | ) | — | — | — | (89 | ) | — | — | (120 | ) | ||||||||||||||||||||||||
Recoveries | — | 182 | — | — | — | 67 | 5 | — | 254 | |||||||||||||||||||||||||||
Provision | 34 | 4,097 | 2 | (683 | ) | (58 | ) | 20 | 195 | 68 | 3,675 | |||||||||||||||||||||||||
Ending balance at September 30, 2020 | $ | 365 | $ | 15,844 | $ | 2,568 | $ | 10,781 | $ | 2,136 | $ | 310 | $ | 1,265 | $ | 125 | $ | 33,394 | ||||||||||||||||||
Amount of allowance for loan losses for loans deemed to be impaired | $ | — | $ | 12 | $ | — | $ | 75 | $ | — | $ | — | $ | — | $ | — | $ | 87 | ||||||||||||||||||
Amount of allowance for loan losses for loans not deemed to be impaired | $ | 365 | $ | 15,832 | $ | 2,568 | $ | 10,706 | $ | 2,136 | $ | 310 | $ | 1,265 | $ | 125 | $ | 33,307 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 9,116 | $ | 1,315,407 | $ | 130,047 | $ | 784,895 | $ | 443,703 | $ | 19,866 | $ | 287,099 | $ | — | $ | 2,990,133 | ||||||||||||||||||
Loans deemed to be impaired | $ | — | $ | 160 | $ | — | $ | 2,675 | $ | 236 | $ | — | $ | — | $ | — | $ | 3,071 | ||||||||||||||||||
Loans not deemed to be impaired | $ | 9,116 | $ | 1,315,247 | $ | 130,047 | $ | 782,220 | $ | 443,467 | $ | 19,866 | $ | 287,099 | $ | — | $ | 2,987,062 | ||||||||||||||||||
Construction | Commercial | |||||||||||||||||||||||||||||||||||
and Land | and | Commercial | Residential | Home | ||||||||||||||||||||||||||||||||
Development | Industrial | Municipal | Real Estate | Real Estate | Consumer | Equity | Unallocated | Total | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 1,092 | $ | 10,998 | $ | 1,838 | $ | 10,663 | $ | 2,190 | $ | 365 | $ | 1,111 | $ | 286 | $ | 28,543 | ||||||||||||||||||
Charge-offs | — | (43 | ) | — | — | — | (99 | ) | — | — | (142 | ) | ||||||||||||||||||||||||
Recoveries | — | 18 | — | — | — | 54 | — | — | 72 | |||||||||||||||||||||||||||
Provision | (81 | ) | 183 | 160 | 104 | (55 | ) | 22 | (10 | ) | 52 | 375 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Ending balance at March 31, 2019 | $ | 1,011 | $ | 11,156 | $ | 1,998 | $ | 10,767 | $ | 2,135 | $ | 342 | $ | 1,101 | $ | 338 | $ | 28,848 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Amount of allowance for loan losses for loans deemed to be impaired | $ | — | $ | 6 | $ | — | $ | 94 | $ | — | $ | — | $ | — | $ | — | $ | 100 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Amount of allowance for loan losses for loans not deemed to be impaired | $ | 1,011 | $ | 11,150 | $ | 1,998 | $ | 10,673 | $ | 2,135 | $ | 342 | $ | 1,101 | $ | 338 | $ | 28,748 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 13,305 | $ | 767,436 | $ | 105,288 | $ | 746,703 | $ | 349,966 | $ | 22,123 | $ | 305,839 | $ | — | $ | 2,310,660 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Loans deemed to be impaired | $ | — | $ | 320 | $ | — | $ | 2,946 | $ | — | $ | — | $ | — | $ | — | $ | 3,266 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
Loans not deemed to be impaired | $ | 13,305 | $ | 767,116 | $ | 105,288 | $ | 743,757 | $ | 349,966 | $ | 22,123 | $ | 305,839 | $ | — | $ | 2,307,394 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development | Commercial and Industrial | Municipal | Commercial Real Estate | Residential Real Estate | Consumer | Home Equity | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | (in thousands) | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 1,052 | $ | 11,338 | $ | 1,832 | $ | 10,848 | $ | 2,210 | $ | 380 | $ | 1,120 | $ | 290 | $ | 29,070 | ||||||||||||||||||
Charge-offs | — | (57 | ) | — | — | — | (61 | ) | — | — | (118 | ) | ||||||||||||||||||||||||
Recoveries | — | 23 | — | — | — | 47 | — | — | 70 | |||||||||||||||||||||||||||
Provision | (752 | ) | 9 | 751 | 53 | (24 | ) | (84 | ) | (33 | ) | 155 | 75 | |||||||||||||||||||||||
Ending balance at September 30, 2019 | $ | 300 | $ | 11,313 | $ | 2,583 | $ | 10,901 | $ | 2,186 | $ | 282 | $ | 1,087 | $ | 445 | $ | 29,097 | ||||||||||||||||||
Amount of allowance for loan losses for loans deemed to be impaired | $ | — | $ | 2 | $ | — | $ | 86 | $ | — | $ | — | $ | — | $ | — | $ | 88 | ||||||||||||||||||
Amount of allowance for loan losses for loans not deemed to be impaired | $ | 300 | $ | 11,311 | $ | 2,583 | $ | 10,815 | $ | 2,186 | $ | 282 | $ | 1,087 | $ | 445 | $ | 29,009 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 7,824 | $ | 783,950 | $ | 121,802 | $ | 765,385 | $ | 364,317 | $ | 21,748 | $ | 310,635 | $ | — | $ | 2,375,661 | ||||||||||||||||||
Loans deemed to be impaired | $ | — | $ | 203 | $ | — | $ | 2,373 | $ | — | $ | — | $ | — | $ | — | $ | 2,576 | ||||||||||||||||||
Loans not deemed to be impaired | $ | 7,824 | $ | 783,747 | $ | 121,802 | $ | 763,012 | $ | 364,317 | $ | 21,748 | $ | 310,635 | $ | — | $ | 2,373,085 | ||||||||||||||||||
Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2019 is as follows: | ||||||||||||||||||||||||||||||||||||
Construction and Land Development | Commercial and Industrial | Municipal | Commercial Real Estate | Residential Real Estate | Consumer | Home Equity | Unallocated | Total | ||||||||||||||||||||||||||||
Allowance for loan losses: | (in thousands) | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 1,092 | $ | 10,998 | $ | 1,838 | $ | 10,663 | $ | 2,190 | $ | 365 | $ | 1,111 | $ | 286 | $ | 28,543 | ||||||||||||||||||
Charge-offs | — | (108 | ) | — | — | — | (228 | ) | — | — | (336 | ) | ||||||||||||||||||||||||
Recoveries | — | 49 | — | — | — | 141 | — | — | 190 | |||||||||||||||||||||||||||
Provision | (792 | ) | 374 | 745 | 238 | (4 | ) | 4 | (24 | ) | 159 | 700 | ||||||||||||||||||||||||
Ending balance at September 30, 2019 | $ | 300 | $ | 11,313 | $ | 2,583 | $ | 10,901 | $ | 2,186 | $ | 282 | $ | 1,087 | $ | 445 | $ | 29,097 | ||||||||||||||||||
Amount of allowance for loan losses for loans deemed to be impaired | $ | — | $ | 2 | $ | — | $ | 86 | $ | — | $ | — | $ | — | $ | — | $ | 88 | ||||||||||||||||||
Amount of allowance for loan losses for loans not deemed to be impaired | $ | 300 | $ | 11,311 | $ | 2,583 | $ | 10,815 | $ | 2,186 | $ | 282 | $ | 1,087 | $ | 445 | $ | 29,009 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||||||
Ending balance | $ | 7,824 | $ | 783,950 | $ | 121,802 | $ | 765,385 | $ | 364,317 | $ | 21,748 | $ | 310,635 | $ | — | $ | 2,375,661 | ||||||||||||||||||
Loans deemed to be impaired | $ | — | $ | 203 | $ | — | $ | 2,373 | $ | — | $ | — | $ | — | $ | — | $ | 2,576 | ||||||||||||||||||
Loans not deemed to be impaired | $ | 7,824 | $ | 783,747 | $ | 121,802 | $ | 763,012 | $ | 364,317 | $ | 21,748 | $ | 310,635 | $ | — | $ | 2,373,085 | ||||||||||||||||||
Construction | Commercial | |||||||||||||||
and Land | and | Commercial | ||||||||||||||
Development | Industrial | Municipal | Real Estate | |||||||||||||
(in thousands) | ||||||||||||||||
Grade: | ||||||||||||||||
1-3 (Pass) | $ | 6,493 | $ | 863,026 | $ | 141,588 | $ | 734,992 | ||||||||
4 (Monitor) | — | 3,950 | — | 24,150 | ||||||||||||
5 (Substandard) | — | — | — | — | ||||||||||||
6 (Doubtful) | — | — | — | — | ||||||||||||
Impaired | — | 623 | — | 2,322 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 6,493 | $ | 867,599 | $ | 141,588 | $ | 761,464 | ||||||||
|
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|
Page 14 of 42
Construction and Land Development | Commercial and Industrial | Municipal | Commercial Real Estate | |||||||||||||
Grade: | (in thousands) | |||||||||||||||
1-3 (Pass) | $ | 9,116 | $ | 1,308,693 | $ | 130,047 | $ | 757,953 | ||||||||
4 (Monitor) | — | 6,554 | — | 24,267 | ||||||||||||
5 (Substandard) | — | — | — | — | ||||||||||||
6 (Doubtful) | — | — | — | — | ||||||||||||
Impaired | — | 160 | — | 2,675 | ||||||||||||
Total | $ | 9,116 | $ | 1,315,407 | $ | 130,047 | $ | 784,895 | ||||||||
Construction | Commercial | |||||||||||||||
and Land | and | Commercial | ||||||||||||||
Development | Industrial | Municipal | Real Estate | |||||||||||||
(in thousands) | ||||||||||||||||
Grade: | ||||||||||||||||
1-3 (Pass) | $ | 8,992 | $ | 807,486 | $ | 120,455 | $ | 759,402 | ||||||||
4 (Monitor) | — | 4,025 | — | 24,354 | ||||||||||||
5 (Substandard) | — | — | — | — | ||||||||||||
6 (Doubtful) | — | — | — | — | ||||||||||||
Impaired | — | 906 | — | 2,346 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 8,992 | $ | 812,417 | $ | 120,455 | $ | 786,102 | ||||||||
|
|
|
|
|
|
|
|
Construction and Land Development | Commercial and Industrial | Municipal | Commercial Real Estate | |||||||||||||
Grade: | (in thousands) | |||||||||||||||
1-3 (Pass) | $ | 8,992 | $ | 807,486 | $ | 120,455 | $ | 759,402 | ||||||||
4 (Monitor) | — | 4,025 | — | 24,354 | ||||||||||||
5 (Substandard) | — | — | — | — | ||||||||||||
6 (Doubtful) | — | — | — | — | ||||||||||||
Impaired | — | 906 | — | 2,346 | ||||||||||||
Total | $ | 8,992 | $ | 812,417 | $ | 120,455 | $ | 786,102 | ||||||||
Commercial | Commercial | |||||||||||||||
and | Real | |||||||||||||||
Industrial | Municipal | Estate | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Credit Rating: | ||||||||||||||||
Aaa – Aa3 | $ | 568,173 | $ | 74,406 | $ | 38,955 | $ | 681,534 | ||||||||
A1 – A3 | 185,819 | 7,354 | 147,953 | 341,126 | ||||||||||||
Baa1 – Baa3 | — | 51,133 | 143,302 | 194,435 | ||||||||||||
Ba2 | — | 5,895 | — | 5,895 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 753,992 | $ | 138,788 | $ | 330,210 | $ | 1,222,990 | ||||||||
|
|
|
|
|
|
|
|
Commercial and Industrial | Municipal | Commercial Real Estate | Total | |||||||||||||
Credit Rating: | (in thousands) | |||||||||||||||
Aaa – Aa3 | $ | 647,056 | $ | 64,806 | $ | 38,365 | $ | 750,227 | ||||||||
A1 – A3 | 184,409 | 7,228 | 145,467 | 337,104 | ||||||||||||
Baa1 – Baa3 | 50,000 | 51,133 | 140,486 | 241,619 | ||||||||||||
Ba2 | — | 5,080 | — | 5,080 | ||||||||||||
Total | $ | 881,465 | $ | 128,247 | $ | 324,318 | $ | 1,334,030 | ||||||||
Commercial | Commercial | |||||||||||||||
and | Real | |||||||||||||||
Industrial | Municipal | Estate | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Credit Rating: | ||||||||||||||||
Aaa – Aa3 | $ | 523,644 | $ | 53,273 | $ | 40,437 | $ | 617,354 | ||||||||
A1 – A3 | 186,044 | 7,354 | 148,346 | 341,744 | ||||||||||||
Baa1 – Baa3 | — | 51,133 | 144,711 | 195,844 | ||||||||||||
Ba2 | — | 5,895 | — | 5,895 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 709,688 | $ | 117,655 | $ | 333,494 | $ | 1,160,837 | ||||||||
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Page 15 of 42
Commercial and Industrial | Municipal | Commercial Real Estate | Total | |||||||||||||
Credit Rating: | (in thousands) | |||||||||||||||
Aaa – Aa3 | $ | 523,644 | $ | 53,273 | $ | 40,437 | $ | 617,354 | ||||||||
A1 – A3 | 186,044 | 7,354 | 148,346 | 341,744 | ||||||||||||
Baa1 – Baa3 | — | 51,133 | 144,711 | 195,844 | ||||||||||||
Ba2 | — | 5,895 | — | 5,895 | ||||||||||||
Total | $ | 709,688 | $ | 117,655 | $ | 333,494 | $ | 1,160,837 | ||||||||
Accruing | ||||||||||||||||||||||||
Accruing | Greater | Total | ||||||||||||||||||||||
30-89 Days | Non | than | Past | Current | ||||||||||||||||||||
Past Due | Accrual | 90 Days | Due | Loans | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | 6,493 | $ | 6,493 | ||||||||||||
Commercial and industrial | 337 | 374 | — | 711 | 866,888 | 867,599 | ||||||||||||||||||
Municipal | — | — | — | — | 141,588 | 141,588 | ||||||||||||||||||
Commercial real estate | 2,322 | 238 | — | 2,560 | 758,904 | 761,464 | ||||||||||||||||||
Residential real estate | 2,455 | 890 | — | 3,345 | 389,993 | 393,338 | ||||||||||||||||||
Consumer and overdrafts | 17 | 6 | — | 23 | 21,016 | 21,039 | ||||||||||||||||||
Home equity | 1,450 | 193 | — | 1,643 | 305,730 | 307,373 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 6,581 | $ | 1,701 | $ | — | $ | 8,282 | $ | 2,490,612 | $ | 2,498,894 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Accruing 30-89 Days Past Due | Non Accrual | Accruing Greater than 90 Days | Total Past Due | Current Loans | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | 9,116 | $ | 9,116 | ||||||||||||
Commercial and industrial | 623 | 3 | — | 626 | 1,314,781 | 1,315,407 | ||||||||||||||||||
Municipal | — | — | — | — | 130,047 | 130,047 | ||||||||||||||||||
Commercial real estate | 3,596 | 593 | 49 | 4,238 | 780,657 | 784,895 | ||||||||||||||||||
Residential real estate | 569 | 532 | — | 1,101 | 442,602 | 443,703 | ||||||||||||||||||
Consumer and overdrafts | 15 | — | — | 15 | 19,851 | 19,866 | ||||||||||||||||||
Home equity | 1,206 | 291 | — | 1,497 | 285,602 | 287,099 | ||||||||||||||||||
Total | $ | 6,009 | $ | 1,419 | $ | 49 | $ | 7,477 | $ | 2,982,656 | $ | 2,990,133 | ||||||||||||
Accruing | ||||||||||||||||||||||||
Accruing | Greater | Total | ||||||||||||||||||||||
30-89 Days | Non | than | Past | Current | ||||||||||||||||||||
Past Due | Accrual | 90 Days | Due | Loans | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | 8,992 | $ | 8,992 | ||||||||||||
Commercial and industrial | 227 | 400 | — | 627 | 811,790 | 812,417 | ||||||||||||||||||
Municipal | — | — | — | — | 120,455 | 120,455 | ||||||||||||||||||
Commercial real estate | 840 | 492 | — | 1,332 | 784,770 | 786,102 | ||||||||||||||||||
Residential real estate | 1,563 | 683 | — | 2,246 | 369,651 | 371,897 | ||||||||||||||||||
Consumer and overdrafts | 18 | 4 | — | 22 | 21,871 | 21,893 | ||||||||||||||||||
Home equity | 603 | 435 | — | 1,038 | 303,325 | 304,363 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 3,251 | $ | 2,014 | $ | — | $ | 5,265 | $ | 2,420,854 | $ | 2,426,119 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Accruing 30-89 Days Past Due | Non Accrual | Accruing Greater than 90 Days | Total Past Due | Current Loans | Total | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | 8,992 | $ | 8,992 | ||||||||||||
Commercial and industrial | 227 | 400 | — | 627 | 811,790 | 812,417 | ||||||||||||||||||
Municipal | — | — | — | — | 120,455 | 120,455 | ||||||||||||||||||
Commercial real estate | 840 | 492 | — | 1,332 | 784,770 | 786,102 | ||||||||||||||||||
Residential real estate | 1,563 | 683 | — | 2,246 | 369,651 | 371,897 | ||||||||||||||||||
Consumer and overdrafts | 18 | 4 | — | 22 | 21,871 | 21,893 | ||||||||||||||||||
Home equity | 603 | 435 | — | 1,038 | 303,325 | 304,363 | ||||||||||||||||||
Total | $ | 3,251 | $ | 2,014 | $ | — | $ | 5,265 | $ | 2,420,854 | $ | 2,426,119 | ||||||||||||
Average | Interest | |||||||||||||||||||
Carrying | Income | |||||||||||||||||||
Value | Recognized | |||||||||||||||||||
for 3 | for 3 | |||||||||||||||||||
Unpaid | Months | Months | ||||||||||||||||||
Carrying | Principal | Required | Ending | Ending | ||||||||||||||||
Value | Balance | Reserve | 3/31/20 | 3/31/20 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
With no required reserve recorded: | ||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial and industrial | 623 | 641 | — | 582 | 1 | |||||||||||||||
Municipal | — | — | — | — | — | |||||||||||||||
Commercial real estate | 155 | 185 | — | 157 | — | |||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 778 | $ | 826 | $ | — | $ | 739 | $ | 1 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
With required reserve recorded: | ||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial and industrial | — | — | — | 113 | 1 | |||||||||||||||
Municipal | — | — | — | — | — | |||||||||||||||
Commercial real estate | 2,167 | 2,290 | 85 | 2,176 | 22 | |||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,167 | $ | 2,290 | $ | 85 | $ | 2,289 | $ | 23 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total: | ||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial and industrial | 623 | 641 | — | 695 | 2 | |||||||||||||||
Municipal | — | — | — | — | — | |||||||||||||||
Commercial real estate | 2,322 | 2,475 | 85 | 2,333 | 22 | |||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,945 | $ | 3,116 | $ | 85 | $ | 3,028 | $ | 24 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Carrying Value | Unpaid Principal Balance | Required Reserve | Average Carrying Value for 3 Months Ending 9/30/20 | Interest Income Recognized for 3 Months Ending 9/30/20 | Average Carrying Value for 9 Months Ending 9/30/20 | Interest Income Recognized for 9 Months Ending 9/30/20 | ||||||||||||||||||||||
With no required reserve recorded: | (in thousands) | |||||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial and industrial | 67 | 88 | — | 73 | 0 | 288 | 2 | |||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial real estate | 592 | 624 | — | 601 | — | 365 | — | |||||||||||||||||||||
Residential real estate | 236 | 236 | — | 236 | — | 118 | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 895 | $ | 948 | $ | — | $ | 910 | $ | 0 | $ | 771 | $ | 2 | ||||||||||||||
With required reserve recorded: | ||||||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial and industrial | 93 | 93 | 12 | 100 | 1 | 95 | 3 | |||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial real estate | 2,083 | 2,209 | 75 | 2,094 | 21 | 2,140 | 65 | |||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 2,176 | $ | 2,302 | $ | 87 | $ | 2,194 | $ | 22 | $ | 2,235 | $ | 68 | ||||||||||||||
Total: | ||||||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial and industrial | 160 | 181 | 12 | 173 | 1 | 383 | 5 | |||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial real estate | 2,675 | 2,833 | 75 | 2,695 | 21 | 2,505 | 65 | |||||||||||||||||||||
Residential real estate | 236 | 236 | — | 236 | — | 118 | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 3,071 | $ | 3,250 | $ | 87 | $ | 3,104 | $ | 22 | $ | 3,006 | $ | 70 | ||||||||||||||
Average | Interest | |||||||||||||||||||
Carrying | Income | |||||||||||||||||||
Value | Recognized | |||||||||||||||||||
Unpaid | for 3 Months | for 3 Months | ||||||||||||||||||
Carrying | Principal | Required | Ending | Ending | ||||||||||||||||
Value | Balance | Reserve | 3/31/19 | 3/31/19 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
With no required reserve recorded: | ||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial and industrial | 93 | 306 | — | 87 | 2 | |||||||||||||||
Municipal | — | — | — | — | — | |||||||||||||||
Commercial real estate | 182 | 206 | — | 188 | — | |||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 275 | $ | 512 | $ | — | $ | 275 | $ | 2 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
With required reserve recorded: | ||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial and industrial | 227 | 228 | 6 | 262 | 3 | |||||||||||||||
Municipal | — | — | — | — | — | |||||||||||||||
Commercial real estate | 2,764 | 2,881 | 94 | 2,694 | 24 | |||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 2,991 | $ | 3,109 | $ | 100 | $ | 2,956 | $ | 27 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total: | ||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Commercial and industrial | 320 | 534 | 6 | 349 | 5 | |||||||||||||||
Municipal | — | — | — | — | — | |||||||||||||||
Commercial real estate | 2,946 | 3,087 | 94 | 2,882 | 24 | |||||||||||||||
Residential real estate | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||
Home equity | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 3,266 | $ | 3,621 | $ | 100 | $ | 3,231 | $ | 29 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Carrying Value | Unpaid Principal Balance | Required Reserve | Average Carrying Value for 3 Months Ending 9/30/19 | Interest Income Recognized for 3 Months Ending 9/30/19 | Average Carrying Value for 9 Months Ending 9/30/19 | Interest Income Recognized for 9 Months Ending 9/30/19 | ||||||||||||||||||||||
With no required reserve recorded: | (in thousands) | |||||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial and industrial | 87 | 306 | — | 89 | 2 | 87 | 6 | |||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial real estate | 167 | 194 | — | 729 | 0 | 529 | 0 | |||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 254 | $ | 500 | $ | — | $ | 818 | $ | 2 | $ | 616 | $ | 6 | ||||||||||||||
With required reserve recorded: | ||||||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial and industrial | 116 | 116 | 2 | 310 | 2 | 299 | 6 | |||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial real estate | 2,206 | 2,326 | 86 | 2,140 | 23 | 2,350 | 67 | |||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 2,322 | $ | 2,442 | $ | 88 | $ | 2,450 | $ | 25 | $ | 2,649 | $ | 73 | ||||||||||||||
Total: | ||||||||||||||||||||||||||||
Construction and land development | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Commercial and industrial | 203 | 422 | 2 | 399 | 4 | 386 | 12 | |||||||||||||||||||||
Municipal | — | — | — | — | — | — | — | |||||||||||||||||||||
Commercial real estate | 2,373 | 2,520 | 86 | 2,869 | 23 | 2,879 | 67 | |||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity | — | — | — | — | — | — | — | |||||||||||||||||||||
Total | $ | 2,576 | $ | 2,942 | $ | 88 | $ | 3,268 | $ | 27 | $ | 3,265 | $ | 79 | ||||||||||||||
Page 18 of 42
Three | Three | Affected Line Item in the | ||||||||
Details about Accumulated Other | Months Ended | Months Ended | Statement where Net Income is | |||||||
Comprehensive Income Components | March 31, 2020 | March 31, 2019 | Presented | |||||||
(in thousands) | ||||||||||
Accretion of unrealized losses transferred | $ | (222 | ) | $ | (294 | ) | Securitiesheld-to-maturity | |||
Tax (expense) or benefit | 58 | 78 | Provision for income taxes | |||||||
|
|
|
| |||||||
Net of tax | $ | (164 | ) | $ | (216 | ) | Net income | |||
|
|
|
| |||||||
Amortization of defined benefit pension items | ||||||||||
Prior-service costs | $ | (29 | )(b) | $ | (29 | )(b) | Salaries and employee benefits | |||
Actuarial gains (losses) | (472 | )(b) | (337 | )(b) | Salaries and employee benefits | |||||
|
|
|
| |||||||
Total before tax | (501 | ) | (366 | ) | Income before taxes | |||||
|
|
|
| |||||||
Tax (expense) or benefit | 141 | 103 | Provision for income taxes | |||||||
|
|
|
| |||||||
Net of tax | $ | (360 | ) | $ | (263 | ) | Net income | |||
|
|
|
|
Details about Accumulated Other Comprehensive Income Components | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Affected Line Item in the Statement where Net Income is Presented | |||||||||||
(in thousands) | ||||||||||||||
Unrealized gains and losses on available-for-sale | $ | — | $ | 54 | Net gains on sales of investments | |||||||||
— | (15 | ) | Provision for income taxes | |||||||||||
$ | — | $ | 39 | Net income | ||||||||||
Accretion of unrealized losses transferred | $ | (196 | ) | $ | (209 | ) | Interest on securities held-to-maturity | |||||||
51 | 54 | Provision for income taxes | ||||||||||||
$ | (145 | ) | $ | (155 | ) | Net income | ||||||||
Amortization of defined benefit pension items | ||||||||||||||
Prior-service costs | $ | (29 | ) | (b) | $ | (29 | ) | (b) | Salaries and employee benefits | |||||
Actuarial gains (losses) | (472 | ) | (b) | (337 | ) | (b) | Salaries and employee benefits | |||||||
Total before tax | (501 | ) | (366 | ) | Income before taxes | |||||||||
Tax (expense) or benefit | 141 | 103 | Provision for income taxes | |||||||||||
Net of tax | $ | (360 | ) | $ | (263 | ) | Net income | |||||||
Details about Accumulated Other Comprehensive Income Components | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Affected Line Item in the Statement where Net Income is Presented | |||||||||||
(in thousands) | ||||||||||||||
Unrealized gains and losses on available-for-sale | $ | — | $ | 61 | Net gains on sales of investments | |||||||||
— | (17 | ) | Provision for income taxes | |||||||||||
$ | — | $ | 44 | Net income | ||||||||||
Accretion of unrealized losses transferred | $ | (637 | ) | $ | (779 | ) | Interest on securities held-to-maturity | |||||||
166 | 205 | Provision for income taxes | ||||||||||||
$ | (471 | ) | $ | (574 | ) | Net income | ||||||||
Amortization of defined benefit pension items | ||||||||||||||
Prior-service costs | $ | (86 | ) | (b) | $ | (86 | ) | (b) | Salaries and employee benefits | |||||
Actuarial gains (losses) | (1,417 | ) | (b) | (1,013 | ) | (b) | Salaries and employee benefits | |||||||
Total before tax | (1,503 | ) | (1,099 | ) | Income before taxes | |||||||||
Tax (expense) or benefit | 422 | 309 | Provision for income taxes | |||||||||||
Net of tax | $ | (1,081 | ) | $ | (790 | ) | Net income | |||||||
(a) | Amount in parentheses indicates reductions to net income. |
(b) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Employee Benefits footnote (Note 7) for additional details). |
Three Months Ended | ||||||||
March 31, | ||||||||
(in thousands except share and per share data) | 2020 | 2019 | ||||||
Basic EPS Computation: | ||||||||
Numerator: | ||||||||
Net income, Class A | $ | 7,658 | $ | 7,409 | ||||
Net income, Class B | 2,008 | 2,009 | ||||||
Denominator: | ||||||||
Weighted average shares outstanding, Class A | 3,652,349 | 3,610,329 | ||||||
Weighted average shares outstanding, Class B | 1,915,560 | 1,957,580 | ||||||
Basic EPS, Class A | $ | 2.10 | $ | 2.05 | ||||
Basic EPS, Class B | 1.05 | 1.03 | ||||||
|
|
|
| |||||
Diluted EPS Computation: | ||||||||
Numerator: | ||||||||
Net income, Class A | $ | 7,658 | $ | 7,409 | ||||
Net income, Class B | 2,008 | 2,009 | ||||||
|
|
|
| |||||
Total net income, for diluted EPS, Class A computation | 9,666 | 9,418 | ||||||
Denominator: | ||||||||
Weighted average shares outstanding, basic, Class A | 3,652,349 | 3,610,329 | ||||||
Weighted average shares outstanding, Class B | 1,915,560 | 1,957,580 | ||||||
|
|
|
| |||||
Weighted average shares outstanding diluted, Class A | 5,567,909 | 5,567,909 | ||||||
Weighted average shares outstanding, Class B | 1,915,560 | 1,957,580 | ||||||
Diluted EPS, Class A | $ | 1.74 | $ | 1.69 | ||||
Diluted EPS, Class B | 1.05 | 1.03 | ||||||
|
|
|
|
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands except share and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Basic EPS Computation: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income, Class A | $ | 8,630 | $ | 7,986 | $ | 24,254 | $ | 22,853 | ||||||||
Net income, Class B | 2,257 | 2,098 | 6,355 | 6,114 | ||||||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding, Class A | 3,655,469 | 3,650,449 | 3,653,429 | 3,627,076 | ||||||||||||
Weighted average shares outstanding, Class B | 1,912,440 | 1,917,460 | 1,914,480 | 1,940,833 | ||||||||||||
Basic EPS, Class A | $ | 2.36 | $ | 2.19 | $ | 6.64 | $ | 6.30 | ||||||||
Basic EPS, Class B | 1.18 | 1.09 | 3.32 | 3.15 | ||||||||||||
Diluted EPS Computation: | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income, Class A | $ | 8,630 | $ | 7,986 | $ | 24,254 | $ | 22,853 | ||||||||
Net income, Class B | 2,257 | 2,098 | 6,355 | 6,114 | ||||||||||||
Total net income, for diluted EPS, Class A computation | 10,887 | 10,084 | 30,609 | 28,967 | ||||||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding, basic, Class A | 3,655,469 | 3,650,449 | 3,653,429 | 3,627,076 | ||||||||||||
Weighted average shares outstanding, Class B | 1,912,440 | 1,917,460 | 1,914,480 | 1,940,833 | ||||||||||||
Weighted average shares outstanding diluted, Class A | 5,567,909 | 5,567,909 | 5,567,909 | 5,567,909 | ||||||||||||
Weighted average shares outstanding, Class B | 1,912,440 | 1,917,460 | 1,914,480 | 1,940,833 | ||||||||||||
Diluted EPS, Class A | $ | 1.96 | $ | 1.81 | $ | 5.50 | $ | 5.20 | ||||||||
Diluted EPS, Class B | 1.18 | 1.09 | 3.32 | 3.15 | ||||||||||||
Supplemental Insurance/ | ||||||||||||||||
Pension Benefits | Retirement Plan | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 344 | $ | 276 | $ | 353 | $ | 256 | ||||||||
Interest | 450 | 473 | 466 | 482 | ||||||||||||
Expected return on plan assets | (952 | ) | (819 | ) | — | — | ||||||||||
Recognized prior service cost (benefit) | — | — | 29 | 28 | ||||||||||||
Recognized net actuarial losses | 261 | 229 | 211 | 109 | ||||||||||||
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|
| |||||||||
Net periodic benefit (credit) cost | $ | 103 | $ | 159 | $ | 1,059 | $ | 875 | ||||||||
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|
|
September 30,
Pension Benefits | Supplemental Insurance/ Retirement Plan | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 344 | $ | 276 | $ | 353 | $ | 256 | ||||||||
Interest | 450 | 473 | 466 | 482 | ||||||||||||
Expected return on plan assets | (952 | ) | (819 | ) | — | — | ||||||||||
Recognized prior service cost (benefit) | — | — | 29 | 28 | ||||||||||||
Recognized net actuarial losses | 261 | 229 | 211 | 109 | ||||||||||||
Net periodic benefit (credit) cost | $ | 103 | $ | 159 | $ | 1,059 | $ | 875 | ||||||||
Pension Benefits | Supplemental Insurance/ Retirement Plan | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Service cost | $ | 1,032 | $ | 828 | $ | 1,059 | $ | 768 | ||||||||
Interest | 1,350 | 1,419 | 1,398 | 1,445 | ||||||||||||
Expected return on plan assets | (2,856 | ) | (2,457 | ) | — | — | ||||||||||
Recognized prior service cost (benefit) | — | — | 87 | 86 | ||||||||||||
Recognized net actuarial losses | 783 | 687 | 633 | 326 | ||||||||||||
Net periodic benefit (credit) cost | $ | 309 | $ | 477 | $ | 3,177 | $ | 2,625 | ||||||||
Page 21 of 42
Financial Instruments Measured at Fair Value on a Recurring Basis:
Securities AFS Fair Value Measurements Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
In Active | Significant | |||||||||||||||
Markets for | Significant | Other | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Carrying | Assets | Inputs | Inputs | |||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
SBA Backed Securities | $ | 50,615 | $ | — | $ | 50,615 | $ | — | ||||||||
U.S. Government Agency and Sponsored Mortgage-Backed Securities | 206,215 | — | 206,215 | — | ||||||||||||
Privately Issued Residential Mortgage- Backed Securities | 334 | — | 334 | — | ||||||||||||
Obligations Issued by States and Political Subdivisions | 17,224 | — | — | 17,224 | ||||||||||||
Other Debt Securities | 3,631 | — | 3,631 | — | ||||||||||||
|
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|
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|
|
| |||||||||
Total Debt Securities | $ | 278,019 | $ | — | $ | 260,795 | $ | 17,224 | ||||||||
|
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| |||||||||
Equity Securities | $ | 1,609 | $ | 243 | $ | 1,366 | $ | — | ||||||||
Financial Instruments Measured at Fair Value on aNon-recurring Basis | ||||||||||||||||
Impaired Loans | $ | 608 | $ | — | $ | — | $ | 608 |
Fair Value Measurements Using | ||||||||||||||||
Carrying Value | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Securities AFS | ||||||||||||||||
SBA Backed Securities | $ | 45,865 | $ | — | $ | 45,865 | $ | — | ||||||||
U.S. Government Agency and Sponsored Mortgage-Backed Securities | 189,904 | — | 189,904 | — | ||||||||||||
Privately Issued Residential Mortgage- Backed Securities | 341 | — | 341 | — | ||||||||||||
Obligations Issued by States and Political Subdivisions | 48,815 | — | — | 48,815 | ||||||||||||
Other Debt Securities | 6,707 | — | 6,707 | — | ||||||||||||
Total | $ | 291,632 | $ | — | $ | 242,817 | $ | 48,815 | ||||||||
Equity Securities | $ | 1,645 | $ | 276 | $ | 1,369 | $ | — | ||||||||
Financial Instruments Measured at Fair Value on a Non-recurring Basis | ||||||||||||||||
Impaired Loans | $ | 828 | $ | — | $ | — | $ | 828 |
, respectively.
Unobservable Input | ||||||||||
Asset | Fair Value | Valuation Technique | Unobservable Input | Value or Range | ||||||
Securities AFS | $ | 17,224 | Discounted cash flow | Discount rate | 0%-1% (3) | |||||
Impaired Loans | $ | 608 | Appraisal of collateral (1) | Appraisal adjustments (2) | 0% |
Asset | Fair Value | Valuation Technique | Unobservable Input | Unobservable Input Value or Range | ||||||
Securities AFS | $ | 48,815 | Discounted cash flow | Discount rate | 0%-1% (3) | |||||
Impaired Loans | $ | 828 | Appraisal of collateral (1) | Appraisal adjustments (2) | 0% |
(1) | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. |
(2) | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses. |
(3) | Weighted averages. |
Page 22 of 42
Obligations | ||||
Issued by States | ||||
& Political | ||||
Subdivisions | ||||
Balance at December 31, 2019 | $ | 13,301 | ||
Purchases | 9,372 | |||
Maturities and calls | (5,449 | ) | ||
Amortization | — | |||
|
| |||
Balance at March 31, 2020 | $ | 17,224 | ||
|
|
Obligations Issued by States & Political Subdivisions | ||||
Balance at December 31, 2019 | $ | 13,301 | ||
Purchases | 53,903 | |||
Maturities and calls | (18,357 | ) | ||
Amortization | (32 | ) | ||
Balance at September 30, 2020 | $ | 48,815 | ||
Obligations | ||||
Issued by States | ||||
& Political | ||||
Subdivisions | ||||
Balance at December 31, 2018 | $ | 88,728 | ||
Purchases | 970 | |||
Maturities and calls | (26,352 | ) | ||
Amortization | (14 | ) | ||
Changes in fair value | — | |||
|
| |||
Balance at March 31, 2019 | $ | 63,332 | ||
|
|
Page 23 of 42
Obligations Issued by States & Political Subdivisions | ||||
Balance at December 31, 2018 | $ | 88,728 | ||
Purchases | 13,290 | |||
Maturities and calls | (78,196 | ) | ||
Amortization | (21 | ) | ||
Changes in fair value | — | |||
Balance at September 30, 2019 | $ | 23,801 | ||
Financial Instruments Measured at Fair Value on a Recurring Basis:
Securities AFS Fair Value Measurements Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
In Active | Significant | |||||||||||||||
Markets for | Significant | Other | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Carrying | Assets | Inputs | Inputs | |||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
SBA Backed Securities | $ | 54,211 | $ | — | $ | 54,211 | $ | — | ||||||||
U.S. Government Agency and Sponsored Mortgage-Backed Securities | 184,187 | — | 184,187 | — | ||||||||||||
Privately Issued Residential Mortgage-Backed Securities | 396 | — | 396 | — | ||||||||||||
Obligations Issued by States and Political Subdivisions | 18,076 | — | 4,775 | 13,301 | ||||||||||||
Other Debt Securities | 3,632 | 3,632 | — | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 260,502 | $ | — | $ | 247,201 | $ | 13,301 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis Equity Securities | $ | 1,688 | $ | 343 | $ | 1,345 | $ | — | ||||||||
Financial Instruments Measured at Fair Value on aNon-recurring Basis Impaired Loans | $ | 877 | $ | — | $ | — | $ | 877 |
Securities AFS Fair Value Measurements Using | ||||||||||||||||
Carrying Value | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis: | ||||||||||||||||
SBA Backed Securities | $ | 54,211 | $ | — | $ | 54,211 | $ | — | ||||||||
U.S. Government Agency and Sponsored Mortgage-Backed Securities | 184,187 | — | 184,187 | — | ||||||||||||
Privately Issued Residential Mortgage- Backed Securities | 396 | — | 396 | — | ||||||||||||
Obligations Issued by States and Political Subdivisions | 18,076 | — | 4,775 | 13,301 | ||||||||||||
Other Debt Securities | 3,632 | 3,632 | — | |||||||||||||
Total | $ | 260,502 | $ | — | $ | 247,201 | $ | 13,301 | ||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis Equity Securities | $ | 1,688 | $ | 343 | $ | 1,345 | $ | — | ||||||||
Financial Instruments Measured at Fair Value on a Non-recurring Basis Impaired Loans | $ | 877 | $ | — | $ | — | $ | 877 |
Page 24 of 42
Unobservable Input | ||||||||||
Asset | Fair Value | Valuation Technique | Unobservable Input | Value or Range | ||||||
Securities AFS | $ | 13,301 | Discounted cash flow | Discount rate | 1.5%-3.2% (3) | |||||
Impaired Loans | $ | 877 | Appraisal of collateral (1) | Appraisal adjustments (2) | 0%-30% discount |
Asset | Fair Value | Valuation Technique | Unobservable Input | Unobservable Input Value or Range | ||||||
Securities AFS | $ | 13,301 | Discounted cash flow | Discount rate | 1.5%-3.2% (3) | |||||
Impaired Loans | $ | 877 | Appraisal of collateral (1) | Appraisal adjustments (2) | 0%-30% discount |
(1) | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. |
(2) | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses. |
(3) | Weighted averages. |
Page 25 of 42
Fair Value | ||||||||||||||||||||
Carrying | Estimated | Measurements | Level 2 | Level 3 | ||||||||||||||||
March 31, 2020 | Amount | Fair Value | Level 1 Inputs | Inputs | Inputs | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Securitiesheld-to-maturity | $ | 2,304,074 | $ | 2,365,027 | $ | — | $ | 2,365,027 | $ | — | ||||||||||
Loans (1) | 2,468,090 | 2,437,099 | — | — | 2,437,099 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | 612,849 | 621,553 | — | 621,553 | — | |||||||||||||||
Other borrowed funds | 312,120 | 320,830 | — | 320,830 | — | |||||||||||||||
Subordinated debentures | 36,083 | 36,083 | — | 36,083 | — | |||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Securitiesheld-to-maturity | $ | 2,351,120 | $ | 2,361,304 | $ | — | $ | 2,361,304 | $ | — | ||||||||||
Loans (1) | 2,396,534 | 2,424,770 | — | — | 2,424,770 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | 555,447 | 560,746 | — | 560,746 | — | |||||||||||||||
Other borrowed funds | 370,955 | 374,531 | — | 374,531 | — | |||||||||||||||
Subordinated debentures | 36,083 | 36,083 | — | 36,083 | — |
September 30, 2020 | Carrying Amount | Estimated Fair Value | Fair Value Measurements Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | |||||||||||||||
(in thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Securities held-to-maturity | $ | 2,407,176 | $ | 2,484,947 | $ | — | $ | 2,484,947 | $ | — | ||||||||||
Loans (1) | 2,956,739 | 2,885,187 | — | — | 2,885,187 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | 581,866 | 596,675 | — | 596,675 | — | |||||||||||||||
Other borrowed funds | 152,248 | 159,690 | — | 159,690 | — | |||||||||||||||
Subordinated debentures | 36,083 | 36,083 | — | 36,083 | — | |||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Securities held-to-maturity | $ | 2,351,120 | $ | 2,361,304 | $ | — | $ | 2,361,304 | $ | — | ||||||||||
Loans (1) | 2,396,534 | 2,424,770 | — | — | 2,424,770 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | 555,447 | 560,746 | — | 560,746 | — | |||||||||||||||
Other borrowed funds | 370,955 | 374,531 | — | 374,531 | — | |||||||||||||||
Subordinated debentures | 36,083 | 36,083 | — | 36,083 | — |
(1) | Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses. |
Page 26 of 42
A. Nature of goods and services
A. | Nature of goods and services |
a. | Revenue earned at a point in time – Examples of revenue earned at a point in time are ATM transaction fees, wire transfer fees, NSF fees, credit and debit card interchange fees and foreign exchange transaction fees. Revenue is generally derived from transactional information accumulated by our systems and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. The Company is the principal in each of these contracts, with the exception of credit and debit card interchange fees, in which case we are acting as the agent and record revenue net of expenses paid to the principal. |
b. | Revenue earned over time – The Company earns revenue from contracts with customers in a variety of ways in which the revenue is earned over a period of time – generally monthly or quarterly. Examples of this type of revenue are deposit account service fees, lockbox fees, investment management fees, merchant referral services, and safe deposit box fees. Account service charges, management fees and referral fees are recognized on a monthly basis while any transaction based income is recorded as the activity occurs. Revenue is primarily based on the number and type of transactions or assets managed and is generally derived from transactional information accumulated by our systems. Revenue is recorded in the same period as the related transactions occur or services are rendered to the customer. |
B. Disaggregation of revenue
B. | Disaggregation of revenue |
Three | Revenue from | Three | Revenue from | |||||||||||||
Months | Contracts in | Months | Contracts in | |||||||||||||
Ended | Scope of | Ended | Scope of | |||||||||||||
3/31/2020 | Topic 606 | 3/31/2019 | Topic 606 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Total interest income | $ | 25,201 | $ | — | $ | 23,438 | $ | — | ||||||||
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| |||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 2,296 | 2,296 | 2,209 | 2,209 | ||||||||||||
Lockbox fees | 930 | 930 | 1,089 | 1,089 | ||||||||||||
Gains on sales of mortgage loans | — | — | 15 | — | ||||||||||||
Other income | 1,084 | 599 | 1,114 | 800 | ||||||||||||
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|
|
|
|
| |||||||||
Total noninterest income | 4,310 | 3,825 | 4,427 | 4,098 | ||||||||||||
|
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|
|
|
|
|
| |||||||||
Total revenues | $ | 29,511 | $ | 3,825 | $ | 27,865 | $ | 4,098 | ||||||||
|
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|
|
|
|
|
|
Nine Months Ended 9/30/2020 | Revenue from Contracts in Scope of Topic 606 | Nine Months Ended 9/30/2019 | Revenue from Contracts in Scope of Topic 606 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Total net interest income | $ | 78,350 | $ | — | $ | 70,458 | $ | — | ||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 6,558 | 6,558 | 6,801 | 6,801 | ||||||||||||
Lockbox fees | 2,850 | 2,850 | 3,018 | 3,018 | ||||||||||||
Net gains on sales of securities | — | — | 61 | — | ||||||||||||
Gains on sales of mortgage loans | — | — | 154 | — | ||||||||||||
Other income | 3,112 | 1,738 | 3,676 | 2,338 | ||||||||||||
Total noninterest income | 12,520 | 11,146 | 13,710 | 12,157 | ||||||||||||
Total revenues | $ | 90,870 | $ | 11,146 | $ | 84,168 | $ | 12,157 | ||||||||
Three Months Ended 9/30/2020 | Revenue from Contracts in Scope of Topic 606 | Three Months Ended 9/30/2019 | Revenue from Contracts in Scope of Topic 606 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Total interest income | $ | 27,331 | $ | — | $ | 23,770 | $ | — | ||||||||
Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 2,239 | 2,239 | 2,310 | 2,310 | ||||||||||||
Lockbox fees | 996 | 996 | 937 | 937 | ||||||||||||
Net gains on sales of securities | — | — | 53 | — | ||||||||||||
Gains on sales of mortgage loans | — | — | 0 | — | ||||||||||||
Other income | 934 | 580 | 986 | 728 | ||||||||||||
Total noninterest income | 4,169 | 3,815 | 4,286 | 3,975 | ||||||||||||
Total revenues | $ | 31,500 | $ | 3,815 | $ | 28,056 | $ | 3,975 | ||||||||
March 31, 2020 | December 31, 2019 | |||||||
(dollars in thousands) | ||||||||
Receivables, which are included in “Other assets” | $ | 1,236 | $ | 1,200 |
September 30, 2020 | December 31, 2019 | |||||||
(dollars in thousands) | ||||||||
Receivables, which are included in “Other assets” | $ | 1,362 | $ | 1,200 |
Three | ||||||||
Three Months | Months | |||||||
Ended | Ended | |||||||
3/31/2020 | 3/31/2019 | |||||||
(in thousands) | ||||||||
Operating lease cost | $ | 546 | $ | 563 | ||||
Variable lease cost | 133 | 148 | ||||||
|
|
|
| |||||
Total lease cost | $ | 679 | $ | 711 | ||||
|
|
|
|
Three Months Ended 9/30/2020 | Nine Months Ended 9/30/2020 | Three Months Ended 9/30/2019 | Nine Months Ended 9/30/2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Operating lease cost | $ | 546 | $ | 1,638 | $ | 550 | $ | 1,676 | ||||||||
Variable lease cost | 135 | 441 | 121 | 405 | ||||||||||||
Total lease cost | $ | 681 | $ | 2,079 | $ | 671 | $ | 2,081 | ||||||||
Three | ||||||||
Three Months | Months | |||||||
Ended | Ended | |||||||
3/31/2020 | 3/31/2019 | |||||||
(in thousands) | ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | 529 | $ | 538 | ||||
|
|
|
| |||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||||
Operating leases | $ | 421 | $ | 443 | ||||
|
|
|
|
Three Months Ended 9/30/2020 | Nine Months Ended 9/30/2020 | Three Months Ended 9/30/2019 | Nine Months Ended 9/30/2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||
Operating cash flows from operating leases | $ | 529 | $ | 1,586 | $ | 528 | $ | 1,605 | ||||||||
Right-of-use | ||||||||||||||||
Operating leases | $ | 431 | $ | 1,306 | $ | 433 | $ | 1,318 | ||||||||
3/31/2020 | 12/31/2019 | |||||||
(in thousands, except lease term and discount rate) | ||||||||
Operating Leases: | ||||||||
Operating leaseright-of-use assets | $ | 12,085 | $ | 12,521 | ||||
Operating lease liabilities | $ | 12,267 | $ | 12,690 | ||||
Weighted Average Remaining Lease Term: | ||||||||
Operating Leases | 11 years | 11 years | ||||||
Weighted Average Discount Rate: | ||||||||
Operating Leases | 3.5 | % | 3.5 | % |
Page 28 of 42
9/30/2020 | 12/31/2019 | |||||||
(in thousands, except lease term and discount rate) | ||||||||
Operating Leases: | ||||||||
Operating lease right-of-use | $ | 14,124 | $ | 12,521 | ||||
Operating lease liabilities | $ | 14,332 | $ | 12,690 | ||||
Weighted Average Remaining Lease Term: | ||||||||
Operating Leases | 11 Years | 11 Years | ||||||
Weighted Average Discount Rate: | ||||||||
Operating Leases | 3.1% | 3.5% |
Minimum Rental Payments | ||||||||
March 31, 2020 | December 31, 2019 | |||||||
(in thousands) | ||||||||
Year Ending December 31, | ||||||||
2020 | $ | 1,502 | $ | 2,030 | ||||
2021 | 1,754 | 1,754 | ||||||
2022 | 1,603 | 1,603 | ||||||
2023 | 1,545 | 1,545 | ||||||
2024 | 1,277 | 1,277 | ||||||
Thereafter | 7,311 | 7,312 | ||||||
|
|
|
| |||||
Total lease payments | $ | 14,992 | $ | 15,521 | ||||
|
|
|
| |||||
Less imputed interest | (2,725 | ) | (2,831 | ) | ||||
|
|
|
| |||||
Present value of lease liability | $ | 12,267 | $ | 12,690 | ||||
|
|
|
|
March 31,
Minimum Rental Payments | ||||||||
September 30, 2020 | December 31, 2019 | |||||||
(in thousands) | ||||||||
Year Ending December 31, 2020 | $ | 397 | $ | 2,030 | ||||
2021 | 2,127 | 1,754 | ||||||
2022 | 1,975 | 1,603 | ||||||
2023 | 1,920 | 1,545 | ||||||
2024 | 1,666 | 1,277 | ||||||
Thereafter | 8,565 | 7,312 | ||||||
Total lease payments | $ | 16,650 | $ | 15,521 | ||||
Less imputed interest | (2,318 | ) | (2,831 | ) | ||||
Present value of lease liability | $ | 14,332 | $ | 12,690 | ||||
During the first quarter of 2020, theCOVID-19 pandemic caused economic turmoil for individuals and businesses throughout the country and, in particular, our market area. Many businesses were required to fully or partially shut down. Many businesses laid off and/or furloughed employees as a result. Unemployment is expected to increase significantly, and GDP is expected to decline significantly. This may cause loan defaults in the future as customers are unable to make their contractual loan payments. The Company has increased its provision for loan losses in response to this increased risk. Future provision levels will be dependent upon the length of the economic disruption and the effectiveness of government programs to mitigate the economic impact of the shutdowns. We also anticipate the Company’s revenue may be negatively impacted as transaction fees will decline due to decreased volume.
In response to the pandemic, on March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. The CARES Act, among other things, provides cash payments to certain individuals and has various programs for businesses. In particular, it includes the Payroll Protection Program which provides forgivable loans to qualified small businesses, primarily to allow these businesses to continue to pay their employees. The original amount allocated to the program was $349 billion, which was
Page 29 of 42
exhausted on April 16, 2020. On April 24, 2020, an additional allocation of $310 billion was signed into law. These loans are funded by participating banks and are 100% guaranteed by the SBA. If utilized primarily for payroll, subject to certain other conditions, the loans may be forgiven, in whole or in part, and repaid by the SBA. Subsequent to March 31, 2020, Century Bank received SBA approvals for 1,215 loans totaling approximately $232 million. The fees expected to be collected, from the SBA, should all of the loans close, amount to approximately $7.8 million. The fees will be amortized over the lives of the loans utilizing the level-yield method.
The Company is considered an essential business based on criteria set by the Governor of the Commonwealth of Massachusetts. However, the Company has been and may continue to be affected by a work stoppage, forced quarantine, or other interruption or the unavailability of key employees.
Three Months Ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
Basic EPS – Class A common | $ | 2.10 | $ | 2.05 | ||||
Basic EPS – Class B common | $ | 1.05 | $ | 1.03 | ||||
Diluted EPS – Class A common | $ | 1.74 | $ | 1.69 | ||||
Diluted EPS – Class B common | $ | 1.05 | $ | 1.03 |
Three Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Basic EPS – Class A common | $ | 2.36 | $ | 2.19 | ||||
Basic EPS – Class B common | $ | 1.18 | $ | 1.09 | ||||
Diluted EPS – Class A common | $ | 1.96 | $ | 1.81 | ||||
Diluted EPS – Class B common | $ | 1.18 | $ | 1.09 | ||||
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Basic EPS – Class A common | $ | 6.64 | $ | 6.30 | ||||
Basic EPS – Class B common | $ | 3.32 | $ | 3.15 | ||||
Diluted EPS – Class A common | $ | 5.50 | $ | 5.20 | ||||
Diluted EPS – Class B common | $ | 3.32 | $ | 3.15 |
This was primarily the result of increased margin pressure during the recent decrease in interest rates across the yield curve.
$14,100,000.
below
Page 30 of 42
On April 24, 2020, an additional allocation of $310 billion was signed into law. These loans are funded by participating banks and are 100% guaranteed by the U.S. Small Business Administration (SBA). If utilized primarily for payroll, subject to certain other conditions, the loans may be forgiven, in whole or in part, and repaid by the SBA. As of September 30, 2020, Century Bank’s PPP loans totaled approximately 1,324 loans for approximately $232 million. The fees collected, from the SBA, amount to approximately $8.0 million. The fees are being amortized over the lives of the loans utilizing the level-yield method.
add new exclusions from the definition of covered fund and provide relief in other areas.
Page 31 of 42
and Families First Coronavirus Response Act (FFCRA)
Commercial | Commercial | |||||||||||||||
and | Real | |||||||||||||||
Industrial | Municipal | Estate | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Credit Rating: | ||||||||||||||||
Aaa – Aa3 | $ | 568,173 | $ | 74,406 | $ | 38,955 | $ | 681,534 | ||||||||
A1 – A3 | 185,819 | 7,354 | 147,953 | 341,126 | ||||||||||||
Baa1 – Baa3 | — | 51,133 | 143,302 | 194,435 | ||||||||||||
Ba2 | — | 5,895 | — | 5,895 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 753,992 | $ | 138,788 | $ | 330,210 | $ | 1,222,990 | ||||||||
|
|
|
|
|
|
|
|
Commercial and Industrial | Municipal | Commercial Real Estate | Total | |||||||||||||
Credit Rating: | (in thousands) | |||||||||||||||
Aaa – Aa3 | $ | 647,056 | $ | 64,806 | $ | 38,365 | $ | 750,227 | ||||||||
A1 – A3 | 184,409 | 7,228 | 145,467 | 337,104 | ||||||||||||
Baa1 – Baa3 | 50,000 | 51,133 | 140,486 | 241,619 | ||||||||||||
Ba2 | — | 5,080 | — | 5,080 | ||||||||||||
Total | $ | 881,465 | $ | 128,247 | $ | 324,318 | $ | 1,334,030 | ||||||||
Commercial | Commercial | |||||||||||||||
and | Real | |||||||||||||||
Industrial | Municipal | Estate | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Credit Rating: | ||||||||||||||||
Aaa – Aa3 | $ | 523,644 | $ | 53,273 | $ | 40,437 | $ | 617,354 | ||||||||
A1 – A3 | 186,044 | 7,354 | 148,346 | 341,744 | ||||||||||||
Baa1 – Baa3 | — | 51,133 | 144,711 | 195,844 | ||||||||||||
Ba2 | — | 5,895 | — | 5,895 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Total | $ | 709,688 | $ | 117,655 | $ | 333,494 | $ | 1,160,837 | ||||||||
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Page 34 of 42
Commercial and Industrial | Municipal | Commercial Real Estate | Total | |||||||||||||
Credit Rating: | (in thousands) | |||||||||||||||
Aaa – Aa3 | $ | 523,644 | $ | 53,273 | $ | 40,437 | $ | 617,354 | ||||||||
A1 – A3 | 186,044 | 7,354 | 148,346 | 341,744 | ||||||||||||
Baa1 – Baa3 | — | 51,133 | 144,711 | 195,844 | ||||||||||||
Ba2 | — | 5,895 | — | 5,895 | ||||||||||||
Total | $ | 709,688 | $ | 117,655 | $ | 333,494 | $ | 1,160,837 | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Allowance for loan losses, beginning of period | $ | 29,585 | $ | 28,543 | ||||
Loans charged off | (62 | ) | (142 | ) | ||||
Recoveries on loans previouslycharged-off | 206 | 72 | ||||||
|
|
|
| |||||
Net recoveries (charge-offs) | 144 | (70 | ) | |||||
Provision charged to expense | 1,075 | 375 | ||||||
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|
| |||||
Allowance for loan losses, end of period | $ | 30,804 | $ | 28,848 | ||||
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|
|
Three months ended | Nine months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Allowance for loan losses, beginning of period | $ | 32,516 | $ | 29,070 | $ | 29,585 | $ | 28,543 | ||||||||
Loans charged off | (41 | ) | (118 | ) | (120 | ) | (336 | ) | ||||||||
Recoveries on loans previously charged-off | 19 | 70 | 254 | 190 | ||||||||||||
Net recoveries (charge-offs) | (22 | ) | (48 | ) | 134 | (146 | ) | |||||||||
Provision charged to expense | 900 | 75 | 3,675 | 700 | ||||||||||||
Allowance for loan losses, end of period | $ | 33,394 | $ | 29,097 | $ | 33,394 | $ | 29,097 | ||||||||
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
(dollars in thousands) | ||||||||
Nonaccruing loans | $ | 1,701 | $ | 2,014 | ||||
Total nonperforming assets | $ | 1,701 | $ | 2,014 | ||||
Loans past due 90 days or more and still accruing | $ | — | $ | — | ||||
Nonaccruing loans as a percentage of total loans | 0.07 | % | 0.08 | % | ||||
Nonperforming assets as a percentage of total assets | 0.03 | % | 0.04 | % | ||||
Accruing troubled debt restructures | $ | 2,337 | $ | 2,361 |
September 30, 2020 | December 31, 2019 | |||||||
(dollars in thousands) | ||||||||
Nonaccruing loans | $ | 1,419 | $ | 2,014 | ||||
Total nonperforming assets | $ | 1,419 | $ | 2,014 | ||||
Loans past due 90 days or more and still accruing | $ | 49 | $ | — | ||||
Nonaccruing loans as a percentage of total loans | 0.05 | % | 0.08 | % | ||||
Nonperforming assets as a percentage of total assets | 0.02 | % | 0.04 | % | ||||
Accruing troubled debt restructures | $ | 2,240 | $ | 2,361 |
Page 35
Securitiesavailable-for-sale totaling $17,224,000 or 6.2% of securitiesavailable-for-sale
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Small Business Administration | $ | 50,615 | $ | 54,211 | ||||
U.S Government Agency and Sponsored Enterprise Mortgage-backed Securities | 206,215 | 184,187 | ||||||
Privately Issued Residential Mortgage-backed Securities | 334 | 396 | ||||||
Obligations issued by States and Political Subdivisions | 17,224 | 18,076 | ||||||
Other Debt Securities | 3,631 | 3,632 | ||||||
|
|
|
| |||||
Total SecuritiesAvailable–for-Sale | $ | 278,019 | $ | 260,502 | ||||
|
|
|
|
September 30, | December 31, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Small Business Administration | $ | 45,865 | $ | 54,211 | ||||
U.S Government Agency and Sponsored Enterprise Mortgage-backed Securities | 189,904 | 184,187 | ||||||
Privately Issued Residential Mortgage-backed Securities | 341 | 396 | ||||||
Obligations issued by States and Political Subdivisions | 48,815 | 18,076 | ||||||
Other Debt Securities | 6,707 | 3,632 | ||||||
Total Securities Available–for-Sale | $ | 291,632 | $ | 260,502 | ||||
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
U.S. Government Sponsored Enterprises | $ | 89,419 | $ | 98,867 | ||||
SBA Backed Securities | 42,856 | 44,379 | ||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-backed Securities | 2,171,799 | 2,207,874 | ||||||
|
|
|
| |||||
Total SecuritiesHeld-to-Maturity | $ | 2,304,074 | $ | 2,351,120 | ||||
|
|
|
|
September 30, 2020 | December 31, 2019 | |||||||
(in thousands) | ||||||||
U.S. Government Sponsored Enterprises | $ | 248,211 | $ | 98,867 | ||||
SBA Backed Securities | 39,384 | 44,379 | ||||||
U.S. Government Agency and Sponsored Enterprise Mortgage-backed Securities | 2,119,581 | 2,207,874 | ||||||
Total Securities Held-to-Maturity | $ | 2,407,176 | $ | 2,351,120 | ||||
Page 36 of 42
that would require further consideration of potential impairment.
2019, this was primarily the result of changes in fair values.
Three Months Ended | ||||||||||||||||||||||||
March 31, 2020 | March 31, 2019 | |||||||||||||||||||||||
Interest | Rate | Interest | Rate | |||||||||||||||||||||
Average | Income/ | Earned/ | Average | Income/ | Earned/ | |||||||||||||||||||
Balance | Expenses (1) | Paid (1) | Balance | Expenses (1) | Paid (1) | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (2) | ||||||||||||||||||||||||
Loans taxable | $ | 1,275,999 | $ | 13,481 | 4.25 | % | $ | 1,182,782 | $ | 13,096 | 4.49 | % | ||||||||||||
Loanstax-exempt | 1,171,963 | 10,789 | 3.70 | % | 1,109,824 | 10,411 | 3.80 | % | ||||||||||||||||
Securitiesavailable-for-sale (5): | ||||||||||||||||||||||||
Taxable | 262,332 | 1,582 | 2.41 | % | 273,309 | 2,182 | 3.19 | % | ||||||||||||||||
Tax-exempt | 9,640 | 137 | 5.68 | % | 78,560 | 545 | 2.77 | % | ||||||||||||||||
Securitiesheld-to-maturity: | ||||||||||||||||||||||||
Taxable | 2,299,750 | 15,293 | 2.66 | % | 2,078,626 | 13,788 | 2.65 | % | ||||||||||||||||
Interest-bearing deposits in other banks | 173,928 | 610 | 1.40 | % | 225,870 | 1,349 | 2.39 | % | ||||||||||||||||
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| |||||||||||||
Total interest-earning assets | 5,193,612 | 41,892 | 3.23 | % | 4,948,971 | 41,371 | 3.37 | % | ||||||||||||||||
Non interest-earning assets | 285,422 | 247,261 | ||||||||||||||||||||||
Allowance for loan losses | (29,765 | ) | (28,708 | ) | ||||||||||||||||||||
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| |||||||||||||||||||||
Total assets | $ | 5,449,269 | $ | 5,167,524 | ||||||||||||||||||||
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| |||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW accounts | $ | 1,016,266 | $ | 2,252 | 0.89 | % | $ | 902,321 | $ | 2,156 | 0.97 | % | ||||||||||||
Savings accounts | 716,569 | 1,473 | 0.83 | % | 909,798 | 3,310 | 1.48 | % | ||||||||||||||||
Money market accounts | 1,480,399 | 5,572 | 1.51 | % | 1,271,707 | 5,343 | 1.70 | % | ||||||||||||||||
Time deposits | 589,396 | 3,172 | 2.16 | % | 516,781 | 2,793 | 2.19 | % | ||||||||||||||||
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| |||||||||||||
Total interest-bearing deposits | 3,802,630 | 12,469 | 1.32 | % | 3,600,607 | 13,602 | 1.53 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 246,272 | 626 | 1.02 | % | 168,447 | 385 | 0.93 | % | ||||||||||||||||
Other borrowed funds and subordinated debentures | 217,839 | 1,499 | 2.77 | % | 231,920 | 1,652 | 2.89 | % | ||||||||||||||||
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| |||||||||||||
Total interest-bearing liabilities | 4,266,741 | 14,594 | 1.38 | % | 4,000,974 | 15,639 | 1.59 | % | ||||||||||||||||
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| |||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | 758,173 | 782,794 | ||||||||||||||||||||||
Other liabilities | 87,423 | 79,156 | ||||||||||||||||||||||
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| |||||||||||||||||||||
Total liabilities | 5,112,337 | 4,862,924 | ||||||||||||||||||||||
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| |||||||||||||||||||||
Stockholders’ equity | 336,932 | 304,600 | ||||||||||||||||||||||
Total liabilities & stockholders’ equity | $ | 5,449,269 | $ | 5,167,524 | ||||||||||||||||||||
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| |||||||||||||||||||||
Net interest income on a fully taxable equivalent basis | 27,298 | 25,732 | ||||||||||||||||||||||
Less taxable equivalent adjustment | (2,097 | ) | (2,294 | ) | ||||||||||||||||||||
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| |||||||||||||||||||||
Net interest income | $ | 25,201 | $ | 23,438 | ||||||||||||||||||||
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| |||||||||||||||||
Net interest spread (3) | 1.85 | % | 1.79 | % | ||||||||||||||||||||
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Net interest margin (4) | 2.11 | % | 2.11 | % | ||||||||||||||||||||
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Three Months Ended | ||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||
Average Balance | Interest Income/ Expenses (1) | Rate Earned/ Paid (1) | Average Balance | Interest Income/ Expenses (1) | Rate Earned/ Paid (1) | |||||||||||||||||||
ASSETS | (dollars in thousands) | |||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (2) | ||||||||||||||||||||||||
Loans taxable | $ | 1,681,573 | $ | 15,074 | 3.57 | % | $ | 1,217,324 | $ | 13,665 | 4.45 | % | ||||||||||||
Loans tax-exempt | 1,240,668 | 7,997 | 2.56 | % | 1,145,136 | 10,704 | 3.71 | % | ||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||
Taxable | 272,475 | 722 | 1.06 | % | 261,312 | 1,969 | 3.01 | % | ||||||||||||||||
Tax-exempt | 43,000 | 110 | 1.02 | % | 32,978 | 262 | 3.18 | % | ||||||||||||||||
Securities held-to-maturity: | ||||||||||||||||||||||||
Taxable | 2,368,987 | 14,186 | 2.40 | % | 2,141,931 | 14,623 | 2.73 | % | ||||||||||||||||
Interest-bearing deposits in other banks | 275,157 | 69 | 0.10 | % | 173,150 | 928 | 2.14 | % | ||||||||||||||||
Total interest-earning assets | 5,881,860 | 38,158 | 2.59 | % | 4,971,831 | 42,151 | 3.38 | % | ||||||||||||||||
Non interest-earning assets | 306,887 | 248,663 | ||||||||||||||||||||||
Allowance for loan losses | (32,819 | ) | (29,079 | ) | ||||||||||||||||||||
Total assets | $ | 6,155,928 | $ | 5,191,415 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW accounts | $ | 1,170,430 | $ | 1,060 | 0.36 | % | $ | 917,133 | $ | 2,366 | 1.02 | % | ||||||||||||
Savings accounts | 794,806 | 666 | 0.33 | % | 868,891 | 3,079 | 1.41 | % | ||||||||||||||||
Money market accounts | 1,747,629 | 3,056 | 0.70 | % | 1,207,387 | 5,050 | 1.66 | % | ||||||||||||||||
Time deposits | 595,453 | 2,858 | 1.91 | % | 517,184 | 3,038 | 2.33 | % | ||||||||||||||||
Total interest-bearing deposits | 4,308,318 | 7,640 | 0.71 | % | 3,510,595 | 13,533 | 1.53 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 209,477 | 241 | 0.46 | % | 252,270 | 697 | 1.10 | % | ||||||||||||||||
Other borrowed funds and subordinated debentures | 207,467 | 1,292 | 2.48 | % | 250,648 | 1,852 | 2.93 | % | ||||||||||||||||
Total interest-bearing liabilities | 4,725,262 | 9,173 | 0.77 | % | 4,013,513 | 16,082 | 1.59 | % | ||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | 983,990 | 775,080 | ||||||||||||||||||||||
Other liabilities | 88,896 | 79,104 | ||||||||||||||||||||||
Total liabilities | 5,798,148 | 4,867,697 | ||||||||||||||||||||||
Stockholders’ equity | 357,780 | 323,718 | ||||||||||||||||||||||
Total liabilities & stockholders’ equity | $ | 6,155,928 | $ | 5,191,415 | ||||||||||||||||||||
Net interest income on a fully taxable equivalent basis | 28,985 | 26,069 | ||||||||||||||||||||||
Less taxable equivalent adjustment | (1,654 | ) | (2,299 | ) | ||||||||||||||||||||
Net interest income | $ | 27,331 | $ | 23,770 | ||||||||||||||||||||
Net interest spread (3) | 1.82 | % | 1.79 | % | ||||||||||||||||||||
Net interest margin (4) | 1.96 | % | 2.08 | % | ||||||||||||||||||||
(1) | On a fully taxable equivalent basis calculated using a federal tax rate of 21%. Rates are annualized. |
(2) | Nonaccrual loans are included in average amounts outstanding. |
(3) | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
(4) | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
(5) | Average balances of securities available-for-sale |
Nine Months Ended | ||||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||
Average Balance | Interest Income/ Expenses (1) | Rate Earned/ Paid (1) | Average Balance | Interest Income/ Expenses (1) | Rate Earned/ Paid (1) | |||||||||||||||||||
ASSETS | (dollars in thousands) | |||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (2) | ||||||||||||||||||||||||
Loans taxable | $ | 1,489,641 | $ | 41,884 | 3.76 | % | $ | 1,200,512 | $ | 40,114 | 4.47 | % | ||||||||||||
Loans tax-exempt | 1,203,359 | 27,100 | 3.01 | % | 1,124,624 | 31,658 | 3.76 | % | ||||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||
Taxable | 271,882 | 3,241 | 1.59 | % | 271,637 | 6,338 | 3.11 | % | ||||||||||||||||
Tax-exempt | 21,419 | 304 | 1.89 | % | 53,399 | 1,176 | 2.94 | % | ||||||||||||||||
Securities held-to-maturity: | ||||||||||||||||||||||||
Taxable | 2,346,502 | 44,701 | 2.54 | % | 2,128,082 | 43,006 | 2.69 | % | ||||||||||||||||
Interest-bearing deposits in other banks | 238,525 | 747 | 0.42 | % | 184,035 | 3,204 | 2.32 | % | ||||||||||||||||
Total interest-earning assets | 5,571,328 | 117,977 | 2.83 | % | 4,962,289 | 125,496 | 3.38 | % | ||||||||||||||||
Non interest-earning assets | 294,226 | 247,744 | ||||||||||||||||||||||
Allowance for loan losses | (31,359 | ) | (28,936 | ) | ||||||||||||||||||||
Total assets | $ | 5,834,195 | $ | 5,181,097 | ||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||
NOW accounts | $ | 1,110,309 | $ | 4,633 | 0.56 | % | $ | 932,139 | $ | 7,057 | 1.01 | % | ||||||||||||
Savings accounts | 771,588 | 2,936 | 0.51 | % | 885,878 | 9,731 | 1.47 | % | ||||||||||||||||
Money market accounts | 1,603,367 | 12,090 | 1.01 | % | 1,249,531 | 15,805 | 1.69 | % | ||||||||||||||||
Time deposits | 597,589 | 9,141 | 2.04 | % | 512,228 | 8,724 | 2.28 | % | ||||||||||||||||
Total interest-bearing deposits | 4,082,853 | 28,800 | 0.94 | % | 3,579,776 | 41,317 | 1.54 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 220,796 | 1,176 | 0.71 | % | 205,185 | 1,572 | 1.02 | % | ||||||||||||||||
Other borrowed funds and subordinated debentures | 206,055 | 4,093 | 2.65 | % | 237,887 | 5,274 | 2.96 | % | ||||||||||||||||
Total interest-bearing liabilities | 4,509,704 | 34,069 | 1.01 | % | 4,022,848 | 48,163 | 1.60 | % | ||||||||||||||||
Non-interest-bearing liabilities | ||||||||||||||||||||||||
Demand deposits | 889,237 | 764,852 | ||||||||||||||||||||||
Other liabilities | 88,028 | 79,327 | ||||||||||||||||||||||
Total liabilities | 5,486,969 | 4,867,027 | ||||||||||||||||||||||
Stockholders’ equity | 347,226 | 314,070 | ||||||||||||||||||||||
Total liabilities & stockholders’ equity | $ | 5,834,195 | $ | 5,181,097 | ||||||||||||||||||||
Net interest income on a fully taxable equivalent basis | 83,908 | 77,333 | ||||||||||||||||||||||
Less taxable equivalent adjustment | (5,558 | ) | (6,875 | ) | ||||||||||||||||||||
Net interest income | $ | 78,350 | $ | 70,458 | ||||||||||||||||||||
Net interest spread (3) | 1.82 | % | 1.78 | % | ||||||||||||||||||||
Net interest margin (4) | 2.01 | % | 2.08 | % | ||||||||||||||||||||
(1) | On a fully taxable equivalent basis calculated using a federal tax rate of 21%. Rates are annualized. |
(2) | Nonaccrual loans are included in average amounts outstanding. |
(3) | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. |
(4) | Net interest margin represents net interest income as a percentage of average interest-earning assets. |
(5) | Average balances of securities available-for-sale |
Three Months Ended March 31, 2020 | ||||||||||||
Compared with | ||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||
Increase/(Decrease) | ||||||||||||
Due to Change in | ||||||||||||
Volume | Rate | Total | ||||||||||
(in thousands) | ||||||||||||
Interest income: | ||||||||||||
Loans | ||||||||||||
Taxable | $ | 1,055 | $ | (670 | ) | $ | 385 | |||||
Tax-exempt | 617 | (238 | ) | 379 | ||||||||
Securitiesavailable-for-sale | ||||||||||||
Taxable | (85 | ) | (515 | ) | (600 | ) | ||||||
Tax-exempt | (707 | ) | 298 | (409 | ) | |||||||
Securitiesheld-to-maturity | ||||||||||||
Taxable | 1,470 | 35 | 1,505 | |||||||||
Interest-bearing deposits in other banks | (264 | ) | (475 | ) | (739 | ) | ||||||
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| |||||||
Total interest income | 2,086 | (1,565 | ) | 521 | ||||||||
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Interest expense: | ||||||||||||
Deposits | ||||||||||||
NOW accounts | 269 | (173 | ) | 96 | ||||||||
Savings accounts | (596 | ) | (1,241 | ) | (1,837 | ) | ||||||
Money market accounts | 842 | (613 | ) | 229 | ||||||||
Time deposits | 401 | (22 | ) | 379 | ||||||||
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Total interest-bearing deposits | 916 | (2,049 | ) | (1,133 | ) | |||||||
Securities sold under agreements to repurchase | 196 | 45 | 241 | |||||||||
Other borrowed funds and subordinated debentures | (92 | ) | (61 | ) | (153 | ) | ||||||
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Total interest expense | 1,020 | (2,065 | ) | (1,045 | ) | |||||||
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| |||||||
Change in net interest income | $ | 1,066 | $ | 500 | $ | 1,566 | ||||||
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Three Months Ended September 30, 2020 Compared with Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2020 Compared with Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Increase/(Decrease) Due to Change in | Increase/(Decrease) Due to Change in | |||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||||
Interest income: | (in thousands) | (in thousands) | ||||||||||||||||||||||
Loans | ||||||||||||||||||||||||
Taxable | $ | 4,502 | $ | (3,093 | ) | $ | 1,409 | $ | 8,758 | $ | (6,988 | ) | $ | 1,770 | ||||||||||
Tax-exempt | 829 | (3,536 | ) | (2,707 | ) | 2,108 | (6,666 | ) | (4,558 | ) | ||||||||||||||
Securities available-for-sale | ||||||||||||||||||||||||
Taxable | 81 | (1,328 | ) | (1,247 | ) | 6 | (3,103 | ) | (3,097 | ) | ||||||||||||||
Tax-exempt | 63 | (215 | ) | (152 | ) | (547 | ) | (325 | ) | (872 | ) | |||||||||||||
Securities held-to-maturity | ||||||||||||||||||||||||
Taxable | 1,462 | (1,899 | ) | (437 | ) | 4,252 | (2,557 | ) | 1,695 | |||||||||||||||
Interest-bearing deposits in other banks | 348 | (1,207 | ) | (859 | ) | 742 | (3,199 | ) | (2,457 | ) | ||||||||||||||
Total interest income | 7,285 | (11,278 | ) | (3,993 | ) | 15,319 | (22,838 | ) | (7,519 | ) | ||||||||||||||
Interest expense: | ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||
NOW accounts | 526 | (1,832 | ) | (1,306 | ) | 1,170 | (3,593 | ) | (2,423 | ) | ||||||||||||||
Savings accounts | (242 | ) | (2,171 | ) | (2,413 | ) | (1,120 | ) | (5,675 | ) | (6,795 | ) | ||||||||||||
Money market accounts | 1,685 | (3,679 | ) | (1,994 | ) | 3,735 | (7,450 | ) | (3,715 | ) | ||||||||||||||
Time deposits | 418 | (598 | ) | (180 | ) | 1,366 | (950 | ) | 416 | |||||||||||||||
Total interest-bearing deposits | 2,387 | (8,280 | ) | (5,893 | ) | 5,151 | (17,668 | ) | (12,517 | ) | ||||||||||||||
Securities sold under agreements to repurchase | (103 | ) | (353 | ) | (456 | ) | 113 | (509 | ) | (396 | ) | |||||||||||||
Other borrowed funds and subordinated debentures | (295 | ) | (265 | ) | (560 | ) | (662 | ) | (519 | ) | (1,181 | ) | ||||||||||||
Total interest expense | 1,989 | (8,898 | ) | (6,909 | ) | 4,602 | (18,696 | ) | (14,094 | ) | ||||||||||||||
Change in net interest income | $ | 5,296 | $ | (2,380 | ) | $ | 2,916 | $ | 10,717 | $ | (4,142 | ) | $ | 6,575 | ||||||||||
$6,909,000.
Page 39 of 42
For
Item 3. |
|
Item 4. |
|
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds – |
Item 3 | Defaults Upon Senior Securities – None |
Item 4 | Mine Safety Disclosures – Not applicable |
Item 5 | Other Information – None |
Item 6 | Exhibits |
+32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
++101. | INS XBRL Instance Document | |
++101. | SCH XBRL Taxonomy Extension Schema | |
++101. | CAL XBRL Taxonomy Extension Calculation Linkbase | |
++101. | LAB XBRL Taxonomy Extension Label Linkbase | |
++101. | PRE XBRL Taxonomy Extension Presentation Linkbase | |
++101. | DEF XBRL Taxonomy Definition Linkbase | |
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101) |
+ | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
++ | As provided in Rule 406T of regulation S-T, this information is filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 and consists of the following materials from Century Bancorp Inc.’s Quarterly Report on10-Q for the quarter ended |
Date: | Century Bancorp, Inc. | |||
/s/ Barry R. Sloane | ||||
Barry R. Sloane | ||||
Chairman, President and Chief Executive Officer | ||||
/s/ William P. Hornby | ||||
William P. Hornby, CPA | ||||
Chief Financial Officer and Treasurer | ||||
(Principal Accounting Officer) |