Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INDEPENDENT BANK CORP /MI/ | |
Entity Central Index Key | 39,311 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 24,105,586 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 35,180 | $ 36,994 |
Interest bearing deposits | 17,990 | 17,744 |
Cash and Cash Equivalents | 53,170 | 54,738 |
Interest bearing deposits - time | 593 | 2,739 |
Equity securities at fair value | 285 | 0 |
Trading securities | 0 | 455 |
Securities available for sale | 436,957 | 522,925 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 18,355 | 15,543 |
Loans held for sale, carried at fair value | 41,325 | 39,436 |
Loans | ||
Commercial | 1,112,101 | 853,260 |
Mortgage | 1,056,482 | 849,530 |
Installment | 393,995 | 316,027 |
Total Loans | 2,562,578 | 2,018,817 |
Allowance for loan losses | (24,401) | (22,587) |
Net Loans | 2,538,177 | 1,996,230 |
Other real estate and repossessed assets | 1,445 | 1,643 |
Property and equipment, net | 39,012 | 39,149 |
Bank-owned life insurance | 54,811 | 54,572 |
Deferred tax assets, net | 8,449 | 15,089 |
Capitalized mortgage loan servicing rights | 23,151 | 15,699 |
Other intangibles | 6,709 | 1,586 |
Goodwill | 28,300 | 0 |
Accrued income and other assets | 46,385 | 29,551 |
Total Assets | 3,297,124 | 2,789,355 |
Deposits | ||
Non-interest bearing | 880,932 | 768,333 |
Savings and interest-bearing checking | 1,217,939 | 1,064,391 |
Reciprocal | 92,635 | 50,979 |
Time | 399,110 | 374,872 |
Brokered time | 208,027 | 141,959 |
Total Deposits | 2,798,643 | 2,400,534 |
Other borrowings | 79,688 | 54,600 |
Subordinated debentures | 39,371 | 35,569 |
Accrued expenses and other liabilities | 34,218 | 33,719 |
Total Liabilities | 2,951,920 | 2,524,422 |
Shareholders' Equity | ||
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 24,150,341 shares at September 30, 2018 and 21,333,869 shares at December 31, 2017 | 389,689 | 324,986 |
Accumulated deficit | (34,596) | (54,054) |
Accumulated other comprehensive loss | (9,889) | (5,999) |
Total Shareholders' Equity | 345,204 | 264,933 |
Total Liabilities and Shareholders' Equity | $ 3,297,124 | $ 2,789,355 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Shareholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 24,150,341 | 21,333,869 |
Common stock, shares outstanding (in shares) | 24,150,341 | 21,333,869 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Interest Income | |||||
Interest and fees on loans | $ 31,000 | $ 21,831 | $ 84,027 | $ 61,638 | |
Interest on securities | |||||
Taxable | 2,737 | 2,765 | 8,092 | 8,300 | |
Tax-exempt | 412 | 512 | 1,335 | 1,478 | |
Other investments | 303 | 263 | 898 | 867 | |
Total Interest Income | 34,452 | 25,371 | 94,352 | 72,283 | |
Interest Expense | |||||
Deposits | 3,976 | 1,833 | 9,472 | 4,754 | |
Other borrowings and subordinated debentures | 779 | 626 | 2,267 | 1,659 | |
Total Interest Expense | 4,755 | 2,459 | 11,739 | 6,413 | |
Net Interest Income | 29,697 | 22,912 | 82,613 | 65,870 | |
Provision for loan losses | (53) | 582 | 912 | 806 | |
Net Interest Income After Provision for Loan Losses | 29,750 | 22,330 | 81,701 | 65,064 | |
Non-interest Income | |||||
Service charges on deposit accounts | 3,166 | 3,281 | 9,166 | 9,465 | |
Interchange income | 2,486 | 1,942 | 7,236 | 5,869 | |
Net gains (losses) on assets | |||||
Mortgage loans | 2,745 | 2,971 | 8,571 | 8,886 | |
Securities | 93 | 69 | (71) | 62 | |
Mortgage loan servicing, net | 1,212 | 1 | 4,668 | 668 | |
Other | 2,134 | 2,040 | 6,294 | 6,139 | |
Total Non-Interest Income | 11,836 | 10,304 | 35,864 | 31,089 | |
Non-interest Expense | |||||
Compensation and employee benefits | 16,169 | 13,577 | 46,506 | 41,104 | |
Occupancy, net | 2,233 | 1,970 | 6,667 | 6,032 | |
Data processing | 2,051 | 1,796 | 6,180 | 5,670 | |
Merger related expenses | 98 | 10 | 3,354 | 10 | |
Furniture, fixtures and equipment | 1,043 | 961 | 3,029 | 2,943 | |
Communications | 727 | 685 | 2,111 | 2,046 | |
Interchange expense | 715 | 294 | 1,974 | 869 | |
Loan and collection | 531 | 481 | 1,900 | 1,564 | |
Advertising | 594 | 526 | 1,578 | 1,551 | |
Legal and professional | 477 | 540 | 1,311 | 1,366 | |
FDIC deposit insurance | 270 | 208 | 750 | 608 | |
Other | 1,832 | 1,568 | 5,276 | 5,183 | |
Total Non-Interest Expense | 26,740 | 22,616 | 80,636 | 68,946 | |
Income Before Income Tax | 14,846 | 10,018 | 36,929 | 27,207 | |
Income tax expense | 2,921 | 3,159 | 7,026 | 8,443 | |
Net Income | $ 11,925 | $ 6,859 | $ 29,903 | $ 18,764 | |
Net Income Per Common Share | |||||
Basic (in dollars per share) | [1] | $ 0.49 | $ 0.32 | $ 1.29 | $ 0.88 |
Diluted (in dollars per share) | 0.49 | 0.32 | 1.27 | 0.87 | |
Dividends Per Common Share | |||||
Declared (in dollars per share) | 0.15 | 0.10 | 0.45 | 0.30 | |
Paid (in dollars per share) | $ 0.15 | $ 0.10 | $ 0.45 | $ 0.30 | |
[1] | Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||||
Net income | $ 11,925 | $ 6,859 | $ 29,903 | $ 18,764 |
Securities available for sale | ||||
Unrealized gains (losses) arising during period | (1,157) | 20 | (6,220) | 7,738 |
Change in unrealized gains (losses) for which a portion of other than temporary impairment has been recognized in earnings | (14) | 126 | (17) | 211 |
Reclassification adjustments for (gains) losses included in earnings | 0 | (8) | 45 | (125) |
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale | (1,171) | 138 | (6,192) | 7,824 |
Income tax expense (benefit) | (246) | 48 | (1,300) | 2,738 |
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale, net of tax | (925) | 90 | (4,892) | 5,086 |
Derivative instruments | ||||
Unrealized gain arising during period | 389 | 95 | 1,400 | 95 |
Reclassification adjustment for income (expense) recognized in earnings | (73) | 5 | (132) | 5 |
Unrealized gains recognized in other comprehensive income (loss) on derivative instruments | 316 | 100 | 1,268 | 100 |
Income tax expense | 66 | 35 | 266 | 35 |
Unrealized gains recognized in other comprehensive income (loss) on derivative instruments, net of tax | 250 | 65 | 1,002 | 65 |
Other comprehensive income (loss) | (675) | 155 | (3,890) | 5,151 |
Comprehensive income | $ 11,250 | $ 7,014 | $ 26,013 | $ 23,915 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidated Statements of Cash Flows (unaudited) [Abstract] | ||
Net Income | $ 29,903 | $ 18,764 |
Adjustments to Reconcile Net Income to Net Cash From Operating Activities | ||
Proceeds from sales of loans held for sale | 351,486 | 313,559 |
Disbursements for loans held for sale | (343,462) | (316,338) |
Provision for loan losses | 912 | 806 |
Deferred income tax expense | 6,972 | 7,422 |
Deferred loan fees and costs | (3,681) | (4,588) |
Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearing deposits - time | 4,560 | 5,079 |
Net gains on mortgage loans | (8,571) | (8,886) |
Net losses on securities | 71 | (62) |
Share based compensation | 1,293 | 1,342 |
Increase in accrued income and other assets | (16,925) | (12,748) |
Increase (decrease) in accrued expenses and other liabilities | (1,930) | 2,274 |
Total Adjustments | (9,275) | (12,140) |
Net Cash From Operating Activities | 20,628 | 6,624 |
Cash Flow Used in Investing Activities | ||
Proceeds from the sale of securities available for sale | 31,445 | 8,834 |
Proceeds from maturities, prepayments and calls of securities available for sale | 125,275 | 143,953 |
Purchases of securities available for sale | (71,067) | (84,080) |
Proceeds from the sale of interest bearing deposits - time | 2,474 | 0 |
Proceeds from the maturity of interest bearing deposits - time | 3,728 | 2,100 |
Purchase of Federal Reserve Bank stock | (2,034) | 0 |
Net increase in portfolio loans (loans originated, net of principal payments) | (272,084) | (326,089) |
Proceeds from the sale of portfolio loans | 27,577 | 0 |
Acquisition of TCSB Bancorp Inc., less cash received | 23,516 | 0 |
Cash received from the sale of Mepco Finance Corporation assets, net | 0 | 33,446 |
Proceeds from bank-owned life insurance | 474 | 523 |
Proceeds from the sale of other real estate and repossessed assets | 1,777 | 4,111 |
Capital expenditures | (2,812) | (2,592) |
Net Cash Used in Investing Activities | (131,731) | (219,794) |
Cash Flow From Financing Activities | ||
Net increase in total deposits | 110,400 | 118,042 |
Net increase in other borrowings | 18,903 | 3,003 |
Proceeds from Federal Home Loan Bank advances | 1,202,000 | 461,000 |
Payments of Federal Home Loan Bank Advances | (1,210,197) | (397,587) |
Dividends paid | (10,446) | (6,400) |
Proceeds from issuance of common stock | 202 | 57 |
Share based compensation withholding obligation | (1,327) | (536) |
Net Cash From Financing Activities | 109,535 | 177,579 |
Net Decrease in Cash and Cash Equivalents | (1,568) | (35,591) |
Cash and Cash Equivalents at Beginning of Period | 54,738 | 83,194 |
Cash and Cash Equivalents at End of Period | 53,170 | 47,603 |
Cash paid during the period for | ||
Interest | 11,168 | 6,240 |
Income taxes | 120 | 988 |
Transfers to other real estate and repossessed assets | 960 | 1,389 |
Transfer of loans to held for sale | 27,577 | 0 |
Purchase of securities available for sale not yet settled | 1,000 | 1,765 |
Sale of securities available for sale not yet settled | $ 0 | $ 760 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders' Equity (unaudited) $ in Thousands | USD ($) |
Balance at beginning of period at Dec. 31, 2016 | $ 248,980 |
Cumulative effect of change in accounting at Dec. 31, 2016 | 352 |
Balance at beginning of period, as adjusted at Dec. 31, 2016 | 249,332 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 18,764 |
Cash dividends declared | (6,400) |
Acquisition of TCSB Bancorp, Inc. | 0 |
Issuance of common stock | 57 |
Share based compensation | 1,342 |
Share based compensation withholding obligation | (536) |
Net change in accumulated other comprehensive loss, net of related tax effect | 5,151 |
Balance at end of period at Sep. 30, 2017 | 267,710 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 6,859 |
Net change in accumulated other comprehensive loss, net of related tax effect | 155 |
Balance at end of period at Sep. 30, 2017 | 267,710 |
Balance at beginning of period at Dec. 31, 2017 | 264,933 |
Cumulative effect of change in accounting at Dec. 31, 2017 | 0 |
Balance at beginning of period, as adjusted at Dec. 31, 2017 | 264,933 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 29,903 |
Cash dividends declared | (10,446) |
Acquisition of TCSB Bancorp, Inc. | 64,536 |
Issuance of common stock | 202 |
Share based compensation | 1,293 |
Share based compensation withholding obligation | (1,327) |
Net change in accumulated other comprehensive loss, net of related tax effect | (3,890) |
Balance at end of period at Sep. 30, 2018 | 345,204 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 11,925 |
Net change in accumulated other comprehensive loss, net of related tax effect | (675) |
Balance at end of period at Sep. 30, 2018 | $ 345,204 |
Preparation of Financial Statem
Preparation of Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
Preparation of Financial Statements [Abstract] | |
Preparation of Financial Statements | 1. Preparation of Financial Statements The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2017 included in our Annual Report on Form 10-K. In our opinion, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary to present fairly our consolidated financial condition as of September 30, 2018 and December 31, 2017, and the results of operations for the three and nine-month periods ended September 30, 2018 and 2017. The results of operations for the three and nine-month periods ended September 30, 2018, are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made in the prior period financial statements to conform to the current period presentation. Our critical accounting policies include the determination of the allowance for loan losses, the valuation of capitalized mortgage loan servicing rights and the valuation of deferred tax assets. Refer to our 2017 Annual Report on Form 10-K for a disclosure of our accounting policies. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. This ASU amends existing guidance related to the accounting for leases. These amendments, among other things, require lessees to account for most leases on the balance sheet while recognizing expense on the income statement in a manner similar to existing guidance. For lessors the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. This amended guidance is effective for us on January 1, 2019 and is not expected to have a material impact on our consolidated operating results or financial condition. Based on a review of our operating leases that we currently have in place we do not expect a material change in the recognition, measurement and presentation of lease expense or impact on cash flow. While the primary impact will be the recognition of certain operating leases on our Condensed Consolidated Statements of Financial Condition this impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For securities available for sale, allowances will be recorded rather than reducing the carrying amount as is done under the current other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This amended guidance is effective for us on January 1, 2020. We began evaluating this ASU in 2016 and have formed a committee that includes personnel from various areas of Independent Bank (the “Bank”) that meets regularly to discuss the implementation of the ASU. We are currently in the process of gathering data and reviewing loss methodologies and have engaged third party resources that will assist us in the implementation of this ASU. While we have not yet determined what the impact will be on our consolidated operating results or financial condition by the nature of the implementation of an expected loss model compared to an incurred loss approach, we would expect our allowance for loan losses (“AFLL”) to increase under this ASU. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities”. This new ASU amends the hedge accounting model in Topic 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The amendments expand an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. This amended guidance is effective for us on January 1, 2019, and given our current level of derivatives designated as hedges is not expected to have a material impact on our consolidated operating results or financial condition. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” , The impact of the adoption of ASU 2014-09 on our Condensed Consolidated Statement of Operations follows: As Reported Under Legacy GAAP Impact of ASU 2014-09 (In thousands) Three months ended September 30, 2018 Non-interest income - Interchange income $ 2,486 $ 2,088 $ 398 (1 ) Non-interest expense - interchange expense $ 715 $ 317 398 (1 ) Impact on net income $ - Nine months ended September 30, 2018 Non-interest income - Interchange income $ 7,236 $ 6,170 $ 1,066 (1 ) Non-interest expense - interchange expense $ 1,974 $ 908 1,066 (1 ) Impact on net income $ - (1) Represents certain costs charged by payment networks that were previously netted against interchange income. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU amends existing guidance related to the accounting for certain financial assets and liabilities. These amendments, among other things, require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This amended guidance was effective for us on January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated operating results or financial condition. As a result of the adoption of this ASU our equity securities previously classified as trading securities are now classified as equity securities at fair value on our September 30, 2018 Condensed Consolidated Statement of Financial Condition. In addition, this amended guidance impacted certain fair value disclosure items (see note #12). In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business”. This new ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses which distinction determines whether goodwill is recorded or not. This amended guidance was effective for us on January 1, 2018, and did not have a material impact on our consolidated operating results or financial condition. In January 2017, the FASB issued ASU 2017-4, “Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment”. This new ASU amends the requirement that entities compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, entities should perform their annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment if the carrying amount exceeds the reporting unit’s fair value. This amended guidance is effective for us on January 1, 2020 with early application permitted. Due to our recent acquisition (see note #16) and expectations this ASU will be relevant to us in 2018 we elected to adopt this amended guidance as of January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated operating results or financial condition. In February 2018, the FASB issued ASU 2018-02, ‘‘Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income’’. This new ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. As a result, this amended guidance eliminates the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. This amended guidance is effective for us on January 1, 2019, with early application permitted in any period for which financial statements have not yet been issued. We elected to adopt this amended guidance during the fourth quarter of 2017 and it resulted in a $0.04 million reclassification between accumulated other comprehensive loss and accumulated deficit. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Securities [Abstract] | |
Securities | 3. Securities Securities available for sale consist of the following: Amortized Unrealized Cost Gains Losses Fair Value (In thousands) September 30, 2018 U.S. agency $ 20,769 $ - $ 346 $ 20,423 U.S. agency residential mortgage-backed 126,851 802 2,592 125,061 U.S. agency commercial mortgage-backed 6,039 - 224 5,815 Private label mortgage-backed 29,340 369 736 28,973 Other asset backed 78,567 147 188 78,526 Obligations of states and political subdivisions 143,138 219 3,703 139,654 Corporate 35,017 65 512 34,570 Trust preferred 1,963 - 38 1,925 Foreign government 2,060 - 50 2,010 Total $ 443,744 $ 1,602 $ 8,389 $ 436,957 December 31, 2017 U.S. Treasury $ 898 $ - $ - $ 898 U.S. agency 25,667 82 67 25,682 U.S. agency residential mortgage-backed 137,785 1,116 983 137,918 U.S. agency commercial mortgage-backed 9,894 36 170 9,760 Private label mortgage-backed 29,011 428 330 29,109 Other asset backed 93,811 202 115 93,898 Obligations of states and political subdivisions 174,073 755 1,883 172,945 Corporate 47,365 578 90 47,853 Trust preferred 2,929 - 127 2,802 Foreign government 2,087 - 27 2,060 Total $ 523,520 $ 3,197 $ 3,792 $ 522,925 Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) September 30, 2018 U.S. agency $ 11,938 $ 239 $ 8,485 $ 107 $ 20,423 $ 346 U.S. agency residential mortgage-backed 28,672 765 40,857 1,827 69,529 2,592 U.S. agency commercial mortgage-backed 1,358 12 4,391 212 5,749 224 Private label mortgage- backed 10,209 295 8,473 441 18,682 736 Other asset backed 30,663 92 11,226 96 41,889 188 Obligations of states and political subdivisions 59,590 1,157 57,509 2,546 117,099 3,703 Corporate 20,853 361 5,726 151 26,579 512 Trust preferred - - 925 38 925 38 Foreign government - - 2,010 50 2,010 50 Total $ 163,283 $ 2,921 $ 139,602 $ 5,468 $ 302,885 $ 8,389 December 31, 2017 U.S. agency $ 5,466 $ 26 $ 5,735 $ 41 $ 11,201 $ 67 U.S. agency residential mortgage-backed 22,198 229 40,698 754 62,896 983 U.S. agency commercial mortgage-backed 2,181 34 3,994 136 6,175 170 Private label mortgage-backed 11,390 92 4,396 238 15,786 330 Other asset backed 20,352 40 16,648 75 37,000 115 Obligations of states and political subdivisions 76,574 936 28,246 947 104,820 1,883 Corporate 14,440 33 3,943 57 18,383 90 Trust preferred - - 2,802 127 2,802 127 Foreign government 489 10 1,571 17 2,060 27 Total $ 153,090 $ 1,400 $ 108,033 $ 2,392 $ 261,123 $ 3,792 Our portfolio of securities available for sale is reviewed quarterly for impairment in value. In performing this review management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). U.S. agency, U.S. agency residential mortgage-backed securities and U.S. agency commercial mortgage backed securities — at September 30, 2018, we had 51 U.S. agency, 133 U.S. agency residential mortgage-backed and 15 U.S. agency commercial mortgage-backed securities whose fair market value is less than amortized cost. The unrealized losses are largely attributed to increases in interest rates since acquisition and widening spreads to Treasury bonds. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Private label mortgage backed securities — at September 30, 2018, we Unrealized losses are primarily due to credit spread widening and increases in interest rates since their acquisition. Two private label mortgage-backed securities (included in the securities discussed further below) were reviewed for other than temporary impairment (“OTTI”) utilizing a cash flow projection. The cash flow analysis forecasts cash flow from the underlying loans in each transaction and then applies these cash flows to the bonds in the securitization. See further discussion below. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no other declines discussed above are deemed to be other than temporary. Other asset backed — at September 30, 2018, we had 72 other asset backed securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Obligations of states and political subdivisions — at September 30, 2018, we had 393 municipal securities whose fair value is less than amortized cost. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Corporate — at September 30, 2018, we had 32 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Trust preferred securities — at September 30, 2018, As management does not intend to liquidate this security and it is more likely than not that we will not be required to sell this security prior to recovery of the unrealized loss, this decline is not deemed to be other than temporary. Foreign government — at September 30, 2018, we had foreign government securities whose fair value is less than amortized cost. The unrealized losses are primarily due to increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. We recorded no credit related OTTI charges in our Condensed Consolidated Statements of Operations related to securities available for sale during the three and nine month periods ended September 30, 2018 and 2017, respectively. At September 30, 2018, three private label mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Senior Support Security Total (In thousands) Fair value $ 842 $ 808 $ 32 $ 1,682 Amortized cost 698 633 - 1,331 Non-credit unrealized loss - - - - Unrealized gain 144 175 32 351 Cumulative credit related OTTI 757 457 380 1,594 Each of these securities is receiving principal and interest payments similar to principal reductions in the underlying collateral. All three of these securities have unrealized gains at September 30, 2018. The original amortized cost (current amortized cost excluding cumulative credit related OTTI) for each of these securities has been permanently adjusted downward for previously recorded credit related OTTI. The unrealized loss (based on original amortized cost) for these securities is now less than previously recorded credit related OTTI amounts. A roll forward of credit losses recognized in earnings on securities available for sale follows: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (In thousands) (In thousands) Balance at beginning of period $ 1,594 $ 1,594 $ 1,594 $ 1,594 Additions to credit losses on securities for which no previous OTTI was recognized - - - - Increases to credit losses on securities for which OTTI was previously recognized - - - - Balance at end of period $ 1,594 $ 1,594 $ 1,594 $ 1,594 The amortized cost and fair value of securities available for sale at September 30, 2018, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 14,513 $ 14,494 Maturing after one year but within five years 79,683 78,634 Maturing after five years but within ten years 62,609 60,979 Maturing after ten years 46,142 44,475 202,947 198,582 U.S. agency residential mortgage-backed 126,851 125,061 U.S. agency commercial mortgage-backed 6,039 5,815 Private label mortgage-backed 29,340 28,973 Other asset backed 78,567 78,526 Total $ 443,744 $ 436,957 The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis. A summary of proceeds from the sale of securities available for sale and gains and losses for the nine month periods ending September 30, follows: Realized Proceeds (1) Gains (2) Losses (In thousands) 2018 $ 31,445 $ 81 $ 126 2017 9,594 125 - (1) 2017 includes $0.760 million for trades that did not settle until after September 30, 2017. (2) 2018 excludes a $0.144 million gain on the sale of 1,000 VISA Class B shares. Certain preferred stocks have been classified as equity securities at fair value in our Condensed Consolidated Statement of Financial Condition beginning on January 1, 2018. Previously these preferred stocks were classified as trading securities. See note #2. During the nine months ended September 30, 2018 and 2017 we recognized losses on these preferred stocks of $0.170 million |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Loans [Abstract] | |
Loans | 4. Loans Our assessment of the allowance for loan losses is based on an evaluation of the loan portfolio, recent loss experience, current economic conditions and other pertinent factors. An analysis of the allowance for loan losses by portfolio segment for the three months ended September 30, follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2018 Balance at beginning of period $ 6,073 $ 8,296 $ 848 $ 8,287 $ 23,504 Additions (deductions) Provision for loan losses (907 ) 415 (25 ) 464 (53 ) Recoveries credited to the allowance 1,418 192 298 - 1,908 Loans charged against the allowance (225 ) (448 ) (285 ) - (958 ) Balance at end of period $ 6,359 $ 8,455 $ 836 $ 8,751 $ 24,401 2017 Balance at beginning of period $ 5,100 $ 8,145 $ 900 $ 6,441 $ 20,586 Additions (deductions) Provision for loan losses (97 ) 68 (33 ) 644 582 Recoveries credited to the allowance 340 587 285 - 1,212 Loans charged against the allowance (92 ) (471 ) (339 ) - (902 ) Balance at end of period $ 5,251 $ 8,329 $ 813 $ 7,085 $ 21,478 An analysis of the allowance for loan losses by portfolio segment for the nine months ended September 30, follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2018 Balance at beginning of period $ 5,595 $ 8,733 $ 864 $ 7,395 $ 22,587 Additions (deductions) Provision for loan losses (1,404 ) 778 182 1,356 912 Recoveries credited to the allowance 2,458 549 761 - 3,768 Loans charged against the allowance (290 ) (1,605 ) (971 ) - (2,866 ) Balance at end of period $ 6,359 $ 8,455 $ 836 $ 8,751 $ 24,401 2017 Balance at beginning of period $ 4,880 $ 8,681 $ 1,011 $ 5,662 $ 20,234 Additions (deductions) Provision for loan losses (197 ) (593 ) 173 1,423 806 Recoveries credited to the allowance 946 1,264 788 - 2,998 Loans charged against the allowance (378 ) (1,023 ) (1,159 ) - (2,560 ) Balance at end of period $ 5,251 $ 8,329 $ 813 $ 7,085 $ 21,478 Allowance for loan losses and recorded investment in loans by portfolio segment follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) September 30, 2018 Allowance for loan losses Individually evaluated for impairment $ 727 $ 5,155 $ 220 $ - $ 6,102 Collectively evaluated for impairment 5,632 3,300 616 8,751 18,299 Loans acquired with deteriorated credit quality - - - - - Total ending allowance balance $ 6,359 $ 8,455 $ 836 $ 8,751 $ 24,401 Loans Individually evaluated for impairment $ 9,714 $ 48,815 $ 3,630 $ 62,159 Collectively evaluated for impairment 1,103,860 1,011,276 391,093 2,506,229 Loans acquired with deteriorated credit quality 1,653 557 355 2,565 Total loans recorded investment 1,115,227 1,060,648 395,078 2,570,953 Accrued interest included in recorded investment 3,126 4,166 1,083 8,375 Total loans $ 1,112,101 $ 1,056,482 $ 393,995 $ 2,562,578 December 31, 2017 Allowance for loan losses Individually evaluated for impairment $ 837 $ 5,725 $ 277 $ - $ 6,839 Collectively evaluated for impairment 4,758 3,008 587 7,395 15,748 Total ending allowance balance $ 5,595 $ 8,733 $ 864 $ 7,395 $ 22,587 Loans Individually evaluated for impairment $ 8,420 $ 53,179 $ 3,945 $ 65,544 Collectively evaluated for impairment 847,140 799,629 313,005 1,959,774 Total loans recorded investment 855,560 852,808 316,950 2,025,318 Accrued interest included in recorded investment 2,300 3,278 923 6,501 Total loans $ 853,260 $ 849,530 $ 316,027 $ 2,018,817 Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow: 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) September 30, 2018 Commercial Income producing - real estate $ - $ - $ - Land, land development and construction - real estate - 2,402 2,402 Commercial and industrial - 380 380 Mortgage 1-4 family - 4,159 4,159 Resort lending - 969 969 Home equity - 1st lien - 324 324 Home equity - 2nd lien - 353 353 Installment Home equity - 1st lien - 225 225 Home equity - 2nd lien - 246 246 Boat lending - 64 64 Recreational vehicle lending - 8 8 Other - 213 213 Total recorded investment $ - $ 9,343 $ 9,343 Accrued interest included in recorded investment $ - $ - $ - December 31, 2017 Commercial Income producing - real estate $ - $ 30 $ 30 Land, land development and construction - real estate - 9 9 Commercial and industrial - 607 607 Mortgage 1-4 family - 5,130 5,130 Resort lending - 1,223 1,223 Home equity - 1st lien - 326 326 Home equity - 2nd lien - 316 316 Installment Home equity - 1st lien - 141 141 Home equity - 2nd lien - 159 159 Boat lending - 100 100 Recreational vehicle lending - 25 25 Other - 118 118 Total recorded investment $ - $ 8,184 $ 8,184 Accrued interest included in recorded investment $ - $ - $ - An aging analysis of loans by class follows: Loans Past Due Loans not Past Due Total Loans 30-59 days 60-89 days 90+ days Total (In thousands) September 30, 2018 Commercial Income producing - real estate $ - $ 32 $ - $ 32 $ 378,201 $ 378,233 Land, land development and construction - real estate - - 2,402 2,402 61,760 64,162 Commercial and industrial 881 25 51 957 671,875 672,832 Mortgage 1-4 family 2,146 687 4,344 7,177 844,584 851,761 Resort lending 418 - 969 1,387 83,420 84,807 Home equity - 1st lien 81 15 324 420 40,312 40,732 Home equity - 2nd lien 364 209 353 926 82,422 83,348 Installment Home equity - 1st lien 285 44 225 554 7,738 8,292 Home equity - 2nd lien 190 45 246 481 7,099 7,580 Boat lending 153 16 64 233 169,925 170,158 Recreational vehicle lending 46 30 8 84 123,199 123,283 Other 145 140 213 498 85,267 85,765 Total recorded investment $ 4,709 $ 1,243 $ 9,199 $ 15,151 $ 2,555,802 $ 2,570,953 Accrued interest included in recorded investment $ 53 $ 21 $ - $ 74 $ 8,301 $ 8,375 December 31, 2017 Commercial Income producing - real estate $ - $ - $ 30 $ 30 $ 290,466 $ 290,496 Land, land development and construction - real estate 9 - - 9 70,182 70,191 Commercial and industrial 60 - 44 104 494,769 494,873 Mortgage 1-4 family 1,559 802 5,130 7,491 659,742 667,233 Resort lending 713 - 1,223 1,936 88,620 90,556 Home equity - 1st lien 308 38 326 672 34,689 35,361 Home equity - 2nd lien 353 155 316 824 58,834 59,658 Installment Home equity - 1st lien 90 11 141 242 9,213 9,455 Home equity - 2nd lien 217 94 159 470 9,001 9,471 Boat lending 59 36 100 195 129,777 129,972 Recreational vehicle lending 28 20 25 73 92,737 92,810 Other 275 115 118 508 74,734 75,242 Total recorded investment $ 3,671 $ 1,271 $ 7,612 $ 12,554 $ 2,012,764 $ 2,025,318 Accrued interest included in recorded investment $ 43 $ 22 $ - $ 65 $ 6,436 $ 6,501 Impaired loans are as follows: September 30, 2018 December 31, 2017 Impaired loans with no allocated allowance for loan losses (In thousands) TDR $ 347 $ 349 Non - TDR 2,402 175 Impaired loans with an allocated allowance for loan losses TDR - allowance based on collateral 2,366 2,482 TDR - allowance based on present value cash flow 56,599 62,113 Non - TDR - allowance based on collateral 168 148 Total impaired loans $ 61,882 $ 65,267 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 692 $ 684 TDR - allowance based on present value cash flow 5,335 6,089 Non - TDR - allowance based on collateral 75 66 Total amount of allowance for loan losses allocated $ 6,102 $ 6,839 Impaired loans by class are as follows: September 30, 2018 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance for loan losses recorded: (In thousands) Commercial Income producing - real estate $ - $ - $ - $ - $ - $ - Land, land development & construction-real estate 2,402 2,402 - - - - Commercial and industrial 347 347 - 524 549 - Mortgage 1-4 family 2 447 - 2 469 - Resort lending - - - - - - Home equity - 1st lien - - - - - - Home equity - 2nd lien - 34 - - - - Installment Home equity - 1st lien 1 90 - 1 69 - Home equity - 2nd lien - - - - - - Boat lending - 5 - - - - Recreational vehicle lending - - - - - - Other - 16 - - - - 2,752 3,341 - 527 1,087 - With an allowance for loan losses recorded: Commercial Income producing - real estate 4,829 4,808 307 5,195 5,347 347 Land, land development & construction-real estate 152 152 4 166 194 9 Commercial and industrial 1,984 2,133 416 2,535 2,651 481 Mortgage 1-4 family 34,656 36,169 3,126 36,848 38,480 3,454 Resort lending 13,934 13,972 2,017 15,978 16,046 2,210 Home equity - 1st lien 66 65 3 173 236 43 Home equity - 2nd lien 157 156 9 178 213 18 Installment Home equity - 1st lien 1,520 1,640 97 1,667 1,804 108 Home equity - 2nd lien 1,626 1,644 93 1,793 1,805 140 Boat lending - - - 1 5 1 Recreational vehicle lending 81 81 4 90 90 5 Other 402 428 26 393 418 23 59,407 61,248 6,102 65,017 67,289 6,839 Total Commercial Income producing - real estate 4,829 4,808 307 5,195 5,347 347 Land, land development & construction-real estate 2,554 2,554 4 166 194 9 Commercial and industrial 2,331 2,480 416 3,059 3,200 481 Mortgage 1-4 family 34,658 36,616 3,126 36,850 38,949 3,454 Resort lending 13,934 13,972 2,017 15,978 16,046 2,210 Home equity - 1st lien 66 65 3 173 236 43 Home equity - 2nd lien 157 190 9 178 213 18 Installment Home equity - 1st lien 1,521 1,730 97 1,668 1,873 108 Home equity - 2nd lien 1,626 1,644 93 1,793 1,805 140 Boat lending - 5 - 1 5 1 Recreational vehicle lending 81 81 4 90 90 5 Other 402 444 26 393 418 23 Total $ 62,159 $ 64,589 $ 6,102 $ 65,544 $ 68,376 $ 6,839 Accrued interest included in recorded investment $ 277 $ 277 Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending September 30, follows: 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance for loan losses recorded: (In thousands) Commercial Income producing - real estate $ - $ - $ - $ - Land, land development & construction-real estate 2,402 - - - Commercial and industrial 425 7 445 8 Mortgage 1-4 family 121 9 127 7 Resort lending - - - - Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien 1 1 1 1 Home equity - 2nd lien - - - - Boat lending - - - - Recreational vehicle lending - - - - Other - - - 1 2,949 17 573 17 With an allowance for loan losses recorded: Commercial Income producing - real estate 4,968 64 7,311 91 Land, land development & construction-real estate 153 3 171 2 Commercial and industrial 2,264 24 2,878 26 Mortgage 1-4 family 34,731 458 38,533 462 Resort lending 14,276 161 16,175 153 Home equity - 1st lien 67 1 201 1 Home equity - 2nd lien 157 2 180 2 Installment Home equity - 1st lien 1,545 27 1,808 40 Home equity - 2nd lien 1,679 24 2,058 26 Boat lending 1 - 1 - Recreational vehicle lending 83 1 98 1 Other 406 5 361 6 60,330 770 69,775 810 Total Commercial Income producing - real estate 4,968 64 7,311 91 Land, land development & construction-real estate 2,555 3 171 2 Commercial and industrial 2,689 31 3,323 34 Mortgage 1-4 family 34,852 467 38,660 469 Resort lending 14,276 161 16,175 153 Home equity - 1st lien 67 1 201 1 Home equity - 2nd lien 157 2 180 2 Installment Home equity - 1st lien 1,546 28 1,809 41 Home equity - 2nd lien 1,679 24 2,058 26 Boat lending 1 - 1 - Recreational vehicle lending 83 1 98 1 Other 406 5 361 7 Total $ 63,279 $ 787 $ 70,348 $ 827 Average recorded investment in and interest income earned on impaired loans by class for the nine month periods ending September 30, follows: 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance for loan losses recorded: (In thousands) Commercial Income producing - real estate $ - $ - $ 222 $ - Land, land development & construction-real estate 1,201 - 8 - Commercial and industrial 472 20 808 16 Mortgage 1-4 family 70 18 64 16 Resort lending - - - - Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien 1 5 1 4 Home equity - 2nd lien - - - - Boat lending - - - - Recreational vehicle lending - - - - Other - 1 - 1 1,744 44 1,103 37 With an allowance for loan losses recorded: Commercial Income producing - real estate 5,077 202 7,525 300 Land, land development & construction-real estate 157 7 187 6 Commercial and industrial 2,391 90 3,488 98 Mortgage 1-4 family 35,549 1,347 39,716 1,420 Resort lending 15,027 475 16,485 464 Home equity - 1st lien 115 4 218 5 Home equity - 2nd lien 167 5 217 5 Installment Home equity - 1st lien 1,595 81 1,874 107 Home equity - 2nd lien 1,728 76 2,210 96 Boat lending 1 - 1 - Recreational vehicle lending 86 3 103 4 Other 406 18 373 19 62,299 2,308 72,397 2,524 Total Commercial Income producing - real estate 5,077 202 7,747 300 Land, land development & construction-real estate 1,358 7 195 6 Commercial and industrial 2,863 110 4,296 114 Mortgage 1-4 family 35,619 1,365 39,780 1,436 Resort lending 15,027 475 16,485 464 Home equity - 1st lien 115 4 218 5 Home equity - 2nd lien 167 5 217 5 Installment Home equity - 1st lien 1,596 86 1,875 111 Home equity - 2nd lien 1,728 76 2,210 96 Boat lending 1 - 1 - Recreational vehicle lending 86 3 103 4 Other 406 19 373 20 Total $ 64,043 $ 2,352 $ 73,500 $ 2,561 Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance. Troubled debt restructurings follow: September 30, 2018 Commercial Retail (1) Total (In thousands) Performing TDRs $ 6,904 $ 49,397 $ 56,301 Non-performing TDRs(2) 212 2,799 (3) 3,011 Total $ 7,116 $ 52,196 $ 59,312 December 31, 2017 Commercial Retail (1) Total (In thousands) Performing TDRs $ 7,748 $ 52,367 $ 60,115 Non-performing TDRs(2) 323 4,506 (3) 4,829 Total $ 8,071 $ 56,873 $ 64,944 (1) Retail loans include mortgage and installment portfolio segments. (2) Included in non-performing loans table above. (3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. We allocated $6.0 million and $6.8 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2018 and December 31, 2017, respectively. During the nine months ended September 30, 2018 and 2017, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans generally included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 36 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 230 months in certain circumstances. Loans that have been classified as troubled debt restructurings during the three-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2018 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 1 24 24 Mortgage 1-4 family 3 609 609 Resort lending 1 115 114 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 1 15 15 Home equity - 2nd lien 1 20 21 Boat lending - - - Recreational vehicle lending - - - Other - - - Total 7 $ 783 $ 783 2017 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial - - - Mortgage 1-4 family 1 93 95 Resort lending - - - Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien - - - Home equity - 2nd lien 2 51 50 Boat lending - - - Recreational vehicle lending - - - Other 1 10 10 Total 4 $ 154 $ 155 Loans that have been classified as troubled debt restructurings during the nine-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2018 Commercial Income producing - real estate 1 $ 67 $ 67 Land, land development & construction-real estate - - - Commercial and industrial 6 611 611 Mortgage 1-4 family 7 903 889 Resort lending 1 115 114 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 6 203 205 Home equity - 2nd lien 3 113 114 Boat lending - - - Recreational vehicle lending - - - Other 2 76 73 Total 26 $ 2,088 $ 2,073 2017 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 12 786 786 Mortgage 1-4 family 3 142 144 Resort lending 1 189 189 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 2 34 37 Home equity - 2nd lien 7 300 301 Boat lending - - - Recreational vehicle lending - - - Other 1 10 10 Total 26 $ 1,461 $ 1,467 The troubled debt restructurings described above for 2018 decreased the allowance for loan losses by $0.01 million and resulted in zero charge offs during the three months ended September 30, 2018, and decreased the allowance by $0.004 million and resulted in zero charge offs during the nine months ended September 30, 2018. The troubled debt restructurings described above for 2017 increased the allowance for loan losses by $0.02 million and resulted in zero charge offs during the three months ended September 30, 2017, and increased the allowance by $0.08 million and resulted in zero charge offs during the nine months ended September 30, 2017. There were no troubled debt restructurings that subsequently defaulted within twelve months following the modification during the three and nine months periods ended September 30, 2018. Six commercial and industrial loans with a recorded balance of $0.16 million that have been classified as troubled debt restructurings during the past twelve months (from September 30, 2017) subsequently defaulted during the three and nine month periods ended September 30, 2017. These subsequent defaults resulted in an increase in the allowance of $0.02 million and $0.04 million during the three and nine month periods ended September 30, 2017, respectively and resulted in charge-offs of $0.05 million during both the three and nine month periods ended September 30, 2017. There were no troubled debt restructurings that subsequently defaulted within twelve months following the modification during the three and nine months ended September 30, 2017 for any other loan class. A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms. In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy. Credit Quality Indicators For commercial loans, we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows: Rating 1 through 6 Rating 7 and 8 Rating 9 Rating 10 and 11 These loans are generally referred to as our ‘‘substandard - non-accrual’’ and ‘‘doubtful’’ commercial credits. Our doubtful rating includes a sub classification for a loss rate other than 50% (which is the standard doubtful loss rate). These ratings include loans to borrowers with weaknesses that make collection of debt in full, on the basis of current facts, conditions and values at best questionable and at worst improbable. All of these loans are placed in non-accrual. Rating 12 The following table summarizes loan ratings by loan class for our commercial loan segment: Commercial Non-watch 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) September 30, 2018 Income producing - real estate $ 374,965 $ 3,060 $ 208 $ - $ 378,233 Land, land development and construction - real estate 55,126 6,623 11 2,402 64,162 Commercial and industrial 634,763 27,174 10,515 380 672,832 Total $ 1,064,854 $ 36,857 $ 10,734 $ 2,782 $ 1,115,227 Accrued interest included in total $ 2,869 $ 146 $ 111 $ - $ 3,126 December 31, 2017 Income producing - real estate $ 288,869 $ 1,293 $ 304 $ 30 $ 290,496 Land, land development and construction - real estate 70,122 60 - 9 70,191 Commercial and industrial 463,570 28,351 2,345 607 494,873 Total $ 822,561 $ 29,704 $ 2,649 $ 646 $ 855,560 Accrued interest included in total $ 2,198 $ 94 $ 8 $ - $ 2,300 For each of our mortgage and installment segment classes, we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually. The following tables summarize credit scores by loan class for our mortgage and installment loan segments: Mortgage (1) 1-4 Family Resort Lending Home Equity 1st Lien Home Equity 2nd Lien Total (In thousands) September 30, 2018 800 and above $ 110,400 $ 12,423 $ 7,872 $ 12,318 $ 143,013 750-799 358,072 32,498 15,037 30,573 436,180 700-749 211,575 21,239 9,562 21,561 263,937 650-699 104,395 9,271 3,222 9,539 126,427 600-649 30,578 4,142 569 2,884 38,173 550-599 13,491 1,220 503 1,261 16,475 500-549 7,641 822 228 1,205 9,896 Under 500 1,702 84 86 190 2,062 Unknown 13,907 3,108 3,653 3,817 24,485 Total $ 851,761 $ 84,807 $ 40,732 $ 83,348 $ 1,060,648 Accrued interest included in total $ 3,161 $ 360 $ 206 $ 439 $ 4,166 December 31, 2017 800 and above $ 78,523 $ 11,625 $ 6,169 $ 7,842 $ 104,159 750-799 283,558 36,015 16,561 24,126 360,260 700-749 154,239 22,099 7,317 15,012 198,667 650-699 84,121 12,145 2,793 7,420 106,479 600-649 25,087 3,025 1,189 2,512 31,813 550-599 15,136 2,710 518 1,118 19,482 500-549 9,548 1,009 397 1,156 12,110 Under 500 2,549 269 260 385 3,463 Unknown 14,472 1,659 157 87 16,375 Total $ 667,233 $ 90,556 $ 35,361 $ 59,658 $ 852,808 Accrued interest included in total $ 2,456 $ 371 $ 157 $ 294 $ 3,278 (1) Other than for the TCSB Bancorp, Inc. ("TCSB") acquired loans, credit scores have been updated within the last twelve months. Installment(1) Home Equity 1st Lien Home Equity 2nd Lien Boat Lending Recreational Vehicle Lending Other Total (In thousands) September 30, 2018 800 and above $ 651 $ 264 $ 25,231 $ 22,621 $ 6,223 $ 54,990 750-799 1,899 1,519 95,664 72,298 32,094 203,474 700-749 1,471 1,806 36,743 22,996 23,917 86,933 650-699 1,608 1,627 8,760 4,093 10,002 26,090 600-649 1,174 1,065 2,064 778 2,504 7,585 550-599 1,065 850 410 334 961 3,620 500-549 305 132 340 76 433 1,286 Under 500 87 172 43 21 152 475 Unknown 32 145 903 66 9,479 10,625 Total $ 8,292 $ 7,580 $ 170,158 $ 123,283 $ 85,765 $ 395,078 Accrued interest included in total $ 33 $ 27 $ 431 $ 319 $ 273 $ 1,083 December 31, 2017 800 and above $ 815 $ 825 $ 15,531 $ 16,754 $ 7,060 $ 40,985 750-799 1,912 1,952 73,251 52,610 28,422 158,147 700-749 1,825 2,142 28,922 17,993 20,059 70,941 650-699 1,840 2,036 9,179 4,270 9,258 26,583 600-649 1,567 1,065 2,052 754 2,402 7,840 550-599 950 1,028 640 305 871 3,794 500-549 499 303 281 83 475 1,641 Under 500 32 88 57 6 194 377 Unknown 15 32 59 35 6,501 6,642 Total $ 9,455 $ 9,471 $ 129,972 $ 92,810 $ 75,242 $ 316,950 Accrued interest included in total $ 39 $ 43 $ 346 $ 254 $ 241 $ 923 (1) Other than for the TCSB acquired loans, credit scores have been updated within the last twelve months. Foreclosed residential real estate properties included in other real estate and repossessed assets on our Condensed Consolidated Statements of Financial Condition totaled $1.3 million and $1.6 million at September 30, 2018 and December 31, 2017, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $0.4 million and $0.8 million at September 30, 2018 and December 31, 2017, respectively. In March and July 2018, we sold $16.5 million and $11.1 million, respectively, of single-family residential fixed and adjustable rate mortgage loans servicing retained to another financial institution and recognized a gain (loss) on sale of $0.05 million and ($0.01) million, respectively. These mortgage loans were all on properties located in Ohio, had weighted average interest rates of 3.59% and 4.07%, respectively, and were sold primarily for asset/liability management purposes. Purchase Credit Impaired (“PCI”) Loans Loans acquired in a business combination are recorded at estimated fair value on their purchase date with no carryover of the related allowance for loan losses. In determining the estimated fair value of purchased loans, management considers a number of factors including, among others, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, and net present value of cash flows expected to be received. Purchased loans are accounted for in accordance with guidance for certain loans acquired in a transfer (ASC 310-30), when the loans have evidence of credit deterioration since origination and it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield, which would have a positive impact on interest income. As a result of our acquisition of TCSB (see note #16) we purchased loans for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. For these loans that meet the criteria of ASC 310-30 treatment, the carrying amount was as follows: September 30, 2018 December 31, 2017 (In thousands) Commercial $ 1,653 $ - Mortgage 557 - Installment 355 - Total carrying amount 2,565 - Allowance for loan losses - - Carrying amount, net of allowance for loan losses $ 2,565 $ - The accretable difference on PCI loans is the difference between the expected cash flows and the net present value of expected cash flows with such difference accreted into earnings using the effective yield method over the term of the loans. Accretion recorded as loan interest income totaled $0.03 million and $0.07 million during the three and nine months ended September 30, 2018, respectively. Accretable yield of PCI loans, or income expected to be collected follows: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (unaudited) (unaudited) (In thousands) (In thousands) Balance at beginning of period $ 533 $ - $ - $ - New loans purchased - - 568 - Accretion of income (32 ) - (67 ) - Reclassification from (to) nonaccretable difference - - - - Displosals/other adjustments - - - - Balance at end of period $ 501 $ - $ 501 $ - PCI loans purchased during 2018 (all relating to the TCSB acquisition) for which it was probable at acquisition that all contractually required payments would not be collected follows: (In thousands) Contractually required payments $ 4,213 Non accretable difference (742 ) Cash flows expected to be collected at acquisition 3,471 Accretable yield (568 ) Fair value of acquired loans at acquisition $ 2,903 Income would not be recognized on certain purchased loans if we could not reasonably estimate cash flows to be collected. We did not have any purchased loans for which we could not reasonably estimate cash flows to be collected. |
Shareholders' Equity and Earnin
Shareholders' Equity and Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2018 | |
Shareholders' Equity and Earnings Per Common Share [Abstract] | |
Shareholders' Equity and Earnings Per Common Share | 5. Shareholders’ Equity and Earnings Per Common Share On January 22, 2018, our Board of Directors authorized a share repurchase plan (the “Repurchase Plan”) to buy back up to 5% of our outstanding common stock through December 31, 2018. A reconciliation of basic and diluted net income per common share follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income $ 11,925 $ 6,859 $ 29,903 $ 18,764 Weighted average shares outstanding (1) 24,149 21,334 23,218 21,325 Effect of stock options 182 138 180 144 Stock units for deferred compensation plan for non-employee directors 129 121 126 120 Performance share units 55 59 52 57 Weighted average shares outstanding for calculation of diluted earnings per share 24,515 21,652 23,576 21,646 Net income per common share Basic (1) $ 0.49 $ 0.32 $ 1.29 $ 0.88 Diluted $ 0.49 $ 0.32 $ 1.27 $ 0.87 (1) Weighted average stock options outstanding that were not considered in computing diluted net income per common share because they were anti-dilutive were zero for the three and nine month periods ended September 30, 2018 and 2017, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 6. Derivative Financial Instruments We are required to record derivatives on our Condensed Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting. Our derivative financial instruments according to the type of hedge in which they are designated follows: September 30, 2018 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Cash flow hedge designation Pay-fixed interest rate swap agreements $ 25,000 2.8 $ 581 Interest rate cap agreements 130,000 3.6 3,391 $ 155,000 3.5 $ 3,972 No hedge designation Rate-lock mortgage loan commitments $ 44,609 0.1 $ 884 Mandatory commitments to sell mortgage loans 65,633 0.1 182 Pay-fixed interest rate swap agreements - commercial 88,657 5.7 2,242 Pay-variable interest rate swap agreements - commercial 88,657 5.7 (2,242 ) Purchased options 3,119 2.8 178 Written options 3,119 2.8 (178 ) Total $ 293,794 3.5 $ 1,066 December 31, 2017 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Cash flow hedge designation Pay-fixed interest rate swap agreements $ 15,000 3.7 $ 245 Interest rate cap agreements 45,000 3.5 976 $ 60,000 3.6 $ 1,221 No hedge designation Rate-lock mortgage loan commitments $ 25,032 0.1 $ 530 Mandatory commitments to sell mortgage loans 56,127 0.1 37 Pay-fixed interest rate swap agreements - commercial 75,990 6.2 292 Pay-variable interest rate swap agreements - commercial 75,990 6.2 (292 ) Purchased options 3,119 3.5 322 Written options 3,119 3.5 (322 ) Total $ 239,377 4.1 $ 567 We use variable-rate and short-term fixed-rate (less than 12 months) debt obligations to fund a portion of our Condensed Consolidated Statements of Financial Condition, which exposes us to variability in interest rates. To meet our asset/liability management objectives, we may periodically enter into derivative financial instruments to mitigate exposure to fluctuations in cash flows resulting from changes in interest rates (“Cash Flow Hedges”). Cash Flow Hedges included certain pay-fixed interest rate swaps and interest rate cap agreements. Pay-fixed interest rate swaps convert the variable-rate cash flows on debt obligations to fixed-rates. We record the fair value of Cash Flow Hedges in accrued income and other assets and accrued expenses and other liabilities on our Condensed Consolidated Statements of Financial Condition. On an ongoing basis, we adjust our Condensed Consolidated Statements of Financial Condition to reflect the then current fair value of Cash Flow Hedges. The related gains or losses are reported in other comprehensive income or loss and are subsequently reclassified into earnings, as a yield adjustment in the same period in which the related interest on the hedged items (variable-rate debt obligations) affect earnings. It is anticipated that approximately $0.66 million, of unrealized gains on Cash Flow Hedges at September 30, 2018 will be reclassified to earnings over the next twelve months. To the extent that the Cash Flow Hedges are not effective, the ineffective portion of the Cash Flow Hedges is immediately recognized in interest expense. The maximum term of the Cash Flow Hedge at September 30, 2018 is 5.0 years. Certain financial derivative instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our Condensed Consolidated Statements of Financial Condition and is adjusted on an ongoing basis to reflect their then current fair value. The changes in fair value of derivative financial instruments not designated as hedges are recognized in our Condensed Consolidated Statements of Operations. In the ordinary course of business, we enter into rate-lock mortgage loan commitments with customers (“Rate-Lock Commitments”). These commitments expose us to interest rate risk. We also enter into mandatory commitments to sell mortgage loans (“Mandatory Commitments”) to reduce the impact of price fluctuations of mortgage loans held for sale and Rate-Lock Commitments. Mandatory Commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of Rate-Lock Commitments and Mandatory Commitments are recognized currently as part of net gains on mortgage loans in our Condensed Consolidated Statements of Operations. We obtain market prices on Mandatory Commitments and Rate-Lock Commitments. Net gains on mortgage loans, as well as net income may be more volatile as a result of these derivative instruments, which are not designated as hedges. In prior periods we offered to our deposit customers an equity linked time deposit product (“Altitude CD”). The Altitude CD is a time deposit that provides the customer a guaranteed return of principal at maturity plus a potential equity return (a written option), while we receive a like stream of funds based on the equity return (a purchased option). The written and purchased options will generally move in opposite directions resulting in little or no net impact on our Condensed Consolidated Statements of Operations. All of the written and purchased options in the table above relate to this Altitude CD product. We have a program that allows commercial loan customers to lock in a fixed rate for a longer period of time than we would normally offer for interest rate risk reasons. We will enter into a variable rate commercial loan and an interest rate swap agreement with a customer and then enter into an offsetting interest rate swap agreement with an unrelated party. The interest rate swap agreement fair values will generally move in opposite directions resulting in little or no net impact on our Condensed Consolidated Statements of Operations. All of the interest rate swap agreements noted as commercial in the table above with no hedge designation relate to this program. The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Condensed Consolidated Statements of Financial Condition for the periods presented: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments Pay-fixed interest rate swap agreements Other assets $ 581 Other assets $ 245 Other $ - Other $ - Interest rate cap agreements Other 3,391 Other 976 Other - Other - 3,972 1,221 - - Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other 884 Other 530 Other - Other - Mandatory commitments to sell mortgage loans Other assets 182 Other 37 Other - Other - Pay-fixed interest rate swap agreements - commercial Other 2,380 Other 631 Other 138 Other 339 Pay-variable interest rate swap agreements - commercial Other 138 Other assets 339 Other 2,380 Other 631 Purchased options Other 178 Other 322 Other - Other - Written options Other - Other - Other 178 Other 322 3,762 1,859 2,696 1,292 Total derivatives $ 7,734 $ 3,080 $ 2,696 $ 1,292 The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows: Three Month Periods Ended September 30, Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income (1) Gain Recognized in Income (1) 2018 2017 2018 2017 2018 2017 (In thousands) Cash Flow Hedges Interest rate cap agreements $ 297 $ - Interest $ 67 $ - Interest expense $ - $ - Pay-fixed interest rate swap agreements 92 95 Interest expense 6 (5 ) Interest 16 5 Total $ 389 $ 95 $ 73 $ (5 ) $ 16 $ 5 No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ (318 ) $ (313 ) Mandatory commitments to sell mortgage loans Net gains on mortgage loans 415 2 Pay-fixed interest rate swap agreements - commercial Interest income 407 52 Pay-variable interest rate swap agreements - commercial Interest (407 ) (52 ) Purchased options Interest (45 ) 5 Written options Interest 45 (5 ) Total $ 97 $ (311 ) (1) For cash flow hedges, this location and amount refers to the ineffective portion. Nine Month Periods Ended September 30, Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income (1) Gain Recognized in Income (1) 2018 2017 2018 2017 2018 2017 (In thousands) Cash Flow Hedges Interest rate cap agreements $ 1,054 $ - Interest $ 119 $ - Interest $ - $ - Pay-fixed interest rate swap agreements 346 95 Interest 13 (5 ) Interest 4 5 Total $ 1,400 $ 95 $ 132 $ (5 ) $ 4 $ 5 No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ 354 $ 123 Mandatory sell mortgage loans Net gains on mortgage loans 145 (604 ) Pay-fixed interest rate swap agreements - commercial Interest 1,950 (197 ) Pay-variable interest rate swap agreements - commercial Interest income (1,950 ) 197 Purchased options Interest (144 ) 39 Written options Interest 144 (39 ) Total $ 499 $ (481 ) (1) For cash flow hedges, this location and amount refers to the ineffective portion. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets [Abstract] | |
Intangible Assets | 7. Intangible Assets The following table summarizes intangible assets, net of amortization: September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 11,916 $ 5,207 $ 6,118 $ 4,532 Unamortized intangible assets - goodwill $ 28,300 $ - The $5.8 million and $28.3 million increases in the gross carrying amount of core deposit intangibles and goodwill, respectively are the result of our acquisition of TCSB (see note #16). There is no expected residual value relating to the core deposit intangible asset which is expected to be amortized over a period of 10 years (weighted average of 5.2 years). In the third quarter of 2018, goodwill was reduced by $0.7 million (to $28.3 million) related to the collection of a TCSB acquired loan that had been charged off in full prior to the Merger. Because of the status of the collection activities related to this loan at the time of the Merger, we determined that this transaction was a measurement period adjustment and reduced goodwill accordingly. Amortization of other intangibles has been estimated through 2022 in the following table. (In thousands) Three months ending December 31, 2018 $ 293 2019 1,089 2020 1,020 2021 970 2022 785 2023 and thereafter 2,552 Total $ 6,709 Changes in the carrying amount of goodwill for the nine month period ending September 30, 2018 follows: (In thousands) Balance at beginning of year $ - Acquired during the year 28,300 Balance at end of the period $ 28,300 |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Share Based Compensation [Abstract] | |
Share Based Compensation | 8. Share Based Compensation We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.5 million shares of common stock as of September 30, 2018. The non-employee director stock purchase plan permits the issuance of additional share based payments for up to 0.2 million shares of common stock as of September 30, 2018. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares. During the nine month periods ended September 30, 2018 and 2017, pursuant to our long-term incentive plan, we granted 0.05 million shares of restricted stock during each period, and 0.02 million performance stock units (“PSU”), during each period to certain officers. No long term incentive grants were made during the three months ended September 30, 2018 and 2017. Except for 0.002 million shares of restricted stock issued in 2018 that vest ratably over three years, the shares of restricted stock and PSUs cliff vest after a period of three years. The performance feature of the PSUs is based on a comparison of our total shareholder return over the three year period starting on the grant date to the total shareholder return over that period for a banking index of our peers. Our directors may elect to receive a portion of their quarterly cash retainer fees in the form of common stock (either on a current basis or on a deferred basis pursuant to the non-employee director stock purchase plan referenced above). Shares equal in value to that portion of each director’s fees that he or she has elected to receive in stock are issued each quarter and vest immediately. We issued 0.007 million shares and 0.006 million shares during the nine months ended September 30, 2018 and 2017, respectively, and expensed their value during those same periods. Total compensation expense recognized for grants pursuant to our long-term incentive plan was $0.4 million and $1.1 million during the three and nine month periods ended September 30, 2018, respectively, and was $0.4 million and $1.2 million during the same periods in 2017, respectively. The corresponding tax benefit relating to this expense was $0.1 million and $0.2 million for the three and nine month periods ended September 30, 2018, respectively and $0.1 million and $0.4 million for the same periods in 2017. Total expense recognized for non-employee director share based payments was $0.05 million and $0.16 million during the three and nine month periods ended September 30, 2018, respectively, and was $0.05 million and $0.12 million during the same periods in 2017, respectively. The corresponding tax benefit relating to this expense was $0.01 million and $0.03 million for the three and nine month periods ended September 30, 2018, respectively and $0.02 million and $0.04 million during the same periods in 2017. At September 30, 2018, the total expected compensation cost related to non-vested restricted stock and PSUs not yet recognized was $2.4 million. The weighted-average period over which this amount will be recognized is 2.0 years. A summary of outstanding stock option grants and related transactions follows: Number of Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1, 2018 176,055 $ 5.24 Issued for acquisition (see note #16) 187,915 9.94 Exercised (113,548 ) 9.18 Forfeited - Expired - Outstanding at September 30, 2018 250,422 $ 6.98 4.7 $ 4,174 Vested and expected to vest at September 30, 2018 250,422 $ 6.98 4.7 $ 4,174 Exercisable at September 30, 2018 250,422 $ 6.98 4.7 $ 4,174 A summary of outstanding non-vested restricted stock and PSUs and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2018 290,527 $ 15.88 Granted 73,406 23.62 Vested (96,255 ) 13.17 Forfeited (8,259 ) 18.53 Outstanding at September 30, 2018 259,419 $ 19.00 A summary of weighted-average assumptions used in the Black-Scholes option pricing model for the issue of stock options relating to the acquisition of TCSB (see note #16) during the second quarter of 2018 follows: Expected dividend yield 2.62 % Risk-free interest rate 2.40 Expected life (in years) 3.14 Expected volatility 45.99 % Per share weighted-average fair value $ 13.25 The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life was obtained using a simplified method that, in general, averaged the vesting term and original contractual term of the stock option. This method was used as relevant historical data of actual exercise activity was very limited. The expected volatility was based on historical volatility of our common stock. Certain information regarding options exercised during the periods follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Intrinsic value $ 153 $ 39 $ 1,827 $ 513 Cash proceeds received $ 58 $ 18 $ 1,042 $ 117 Tax benefit realized $ 32 $ 14 $ 384 $ 180 |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax [Abstract] | |
Income Tax | 9. Income Tax Income tax expense was $2.9 million and $3.2 million during the three month periods ended September 30, 2018 and 2017, respectively and $7.0 million and $8.4 million during the nine months ended September 30, 2018 and 2017, respectively. On December 22, 2017, "H.R. 1" (also known as the "Tax Cuts and Jobs Act") was signed into law. H.R. 1, among other things, reduced the federal corporate income tax rate to 21% effective January 1, 2018 from 35% during 2017. Our actual federal income tax expense is different than the amount computed by applying our statutory income tax rate to our income before income tax primarily due to tax-exempt interest income and tax-exempt income from the increase in the cash surrender value on life insurance. In addition, the three and nine month periods ending September 30, 2018 include reductions of $0.01 million and $0.33 million, respectively, of income tax expense related to impact of the excess value of stock awards that vested and stock options that were exercised as compared to the initial fair values that were expensed. These amounts during the same periods in 2017 were $0.02 million and $0.23 million, respectively. We assess whether a valuation allowance should be established against our deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. The ultimate realization of this asset is primarily based on generating future income. realization of substantially all of our deferred tax assets continues to be more likely than not. At both September 30, 2018 and December 31, 2017, we had approximately $0.7 million, of gross unrecognized tax benefits. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the balance of 2018. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | 10. Regulatory Matters Capital guidelines adopted by federal and state regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of September 30, 2018, the Bank had positive undivided profits of $27.2 million. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent and in accordance with guidelines of regulatory authorities. We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our interim condensed consolidated financial statements. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of September 30, 2018 and December 31, 2017, categorized our Bank as well capitalized. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (“FDIC”) categorization. On July 2, 2013, the Federal Reserve approved a final rule that establishes an integrated regulatory capital framework (the “New Capital Rules”). The rule implements in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act. In general, under the New Capital Rules, minimum requirements have increased for both the quantity and quality of capital held by banking organizations. Consistent with the international Basel framework, the New Capital Rules include a new minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. The capital conservation buffer began to phase in on January 1, 2016 with 1.875% and 1.25% added to the minimum ratio for adequately capitalized institutions for 2018 and 2017, respectively and 0.625% will be added each subsequent year until fully phased in during 2019. This capital conservation buffer is not reflected in the table that follows. Our actual capital amounts and ratios follow: Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) September 30, 2018 Total capital to risk-weighted assets Consolidated $ 373,748 14.57 % $ 205,173 8.00 % NA NA Independent Bank 337,905 13.18 205,044 8.00 $ 256,305 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 348,228 13.58 % $ 153,880 6.00 % NA NA Independent Bank 312,385 12.19 153,783 6.00 $ 205,044 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 310,081 12.09 % $ 115,410 4.50 % NA NA Independent Bank 312,385 12.19 115,337 4.50 $ 166,598 6.50 % Tier 1 capital to average assets Consolidated $ 348,228 10.84 % $ 128,543 4.00 % NA NA Independent Bank 312,385 9.73 128,376 4.00 $ 160,469 5.00 % December 31, 2017 Total capital to risk-weighted assets Consolidated $ 312,163 15.16 % $ 164,782 8.00 % NA NA Independent Bank 290,188 14.10 164,675 8.00 $ 205,843 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 288,451 14.00 % $ 123,586 6.00 % NA NA Independent Bank 266,476 12.95 123,506 6.00 $ 164,675 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 255,934 12.43 % $ 92,690 4.50 % NA NA Independent Bank 266,476 12.95 92,630 4.50 $ 133,798 6.50 % Tier 1 capital to average assets Consolidated $ 288,451 10.57 % $ 109,209 4.00 % NA NA Independent Bank 266,476 9.78 109,041 4.00 $ 136,301 5.00 % NA - Not applicable The components of our regulatory capital are as follows: Consolidated Independent Bank September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (In thousands) Total shareholders' equity $ 345,204 $ 264,933 $ 343,351 $ 269,481 Add (deduct) Accumulated other comprehensive loss for regulatory purposes 4,092 201 4,092 201 Goodwill and other intangibles (35,009 ) (1,269 ) (35,009 ) (1,269 ) Disallowed deferred tax assets (4,206 ) (7,931 ) (49 ) (1,937 ) Common equity tier 1 capital 310,081 255,934 312,385 266,476 Qualifying trust preferred securities 38,147 34,500 - - Disallowed deferred tax assets - (1,983 ) - - Tier 1 capital 348,228 288,451 312,385 266,476 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 25,520 23,712 25,520 23,712 Total risk-based capital $ 373,748 $ 312,163 $ 337,905 $ 290,188 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 11. Fair Value Disclosures FASB ASC topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. We used the following methods and significant assumptions to estimate fair value: Securities obligations of states and political subdivisions Loans held for sale The fair value of mortgage loans held for sale is based on agency cash window loan pricing for comparable assets (recurring Level 2) Impaired loans with specific loss allocations based on collateral value From time to time, certain loans are considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Those impaired loans not requiring an allowance for loan losses represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2018 and December 31, 2017, all of our impaired loans were evaluated based on either the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. When the fair value of the collateral is based on an appraised value or when an appraised value is not available we record the impaired loan as nonrecurring Level 3 Other real estate At the time of acquisition, other real estate is recorded at fair value, less estimated costs to sell, which becomes the property’s new basis. Subsequent write-downs to reflect declines in value since the time of acquisition may occur from time to time and are recorded in net (gains) losses on other real estate and repossessed assets, which is part of non-interest expense - other in the Condensed Consolidated Statements of Operations. The fair value of the property used at and subsequent to the time of acquisition is typically determined by a third party appraisal of the property. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by us. Once received, an independent third party, or a member of our Collateral Evaluation Department (for commercial properties), or a member of our Special (for residential properties) reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. We compare the actual selling price of collateral that has been sold to the most recent appraised value of our properties to determine what additional adjustment, if any, should be made to the appraisal value to arrive at fair value. For commercial and residential properties we typically discount an appraisal to account for various factors that the appraisal excludes in its assumptions. These additional discounts generally do not result in material adjustments to the appraised value. Capitalized mortgage loan servicing rights Derivatives The fair value of rate-lock mortgage loan commitments is based on agency cash window loan pricing for comparable assets and the fair value of mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets (recurring Level 2). The fair value of interest rate swap and interest rate cap agreements are derived from proprietary models which utilize current market data. The significant fair value inputs can generally be observed in the market place and do not typically involve judgment by management (recurring Level 2). The fair value of purchased and written options is based on prices of financial instruments with similar characteristics and do not typically involve judgment by management (recurring Level 2). Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows: Fair Value Measure- ments Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2018: Measured at Fair Value on a Recurring Basis Assets Equity securities at fair value $ 285 $ 285 $ - $ - Securities available for sale U.S. agency 20,423 - 20,423 - U.S. agency residential mortgage-backed 125,061 - 125,061 - U.S. agency commercial mortgage-backed 5,815 - 5,815 - Private label mortgage-backed 28,973 - 28,973 - Other asset backed 78,526 - 78,526 - Obligations of states and political subdivisions 139,654 - 139,654 - Corporate 34,570 - 34,570 - Trust preferred 1,925 - 1,925 - Foreign government 2,010 - 2,010 - Loans held for sale 41,325 - 41,325 - Capitalized mortgage loan servicing rights 23,151 - - 23,151 Derivatives (1) 7,734 - 7,734 - Liabilities Derivatives (2) 2,696 - 2,696 - Measured at Fair Value on a Non-recurring basis: Assets Impaired loans (3) Commercial Income producing - real estate 225 - - 225 Commercial and industrial 944 - - 944 Mortgage 1-4 family 334 - - 334 Resort lending 264 - - 264 Other real estate (4) Mortgage 1-4 family 94 - - 94 Resort lending 1 - - 1 (1) Included in accrued income and other assets (2) Included in accrued expenses and other liabilities (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. Fair Value Measure- ments Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2017: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 455 $ 455 $ - $ - Securities available for sale U.S. Treasury 898 898 - - U.S. agency 25,682 - 25,682 - U.S. agency residential mortgage-backed 137,918 - 137,918 - U.S. agency commercial mortgage-backed 9,760 - 9,760 - Private label mortgage-backed 29,109 - 29,109 - Other asset backed 93,898 - 93,898 - Obligations of states and political subdivisions 172,945 - 172,945 - Corporate 47,853 - 47,853 - Trust preferred 2,802 - 2,802 - Foreign government 2,060 - 2,060 - Loans held for sale 39,436 - 39,436 - Capitalized mortgage loan servicing rights 15,699 - - 15,699 Derivatives (1) 3,080 - 3,080 - Liabilities Derivatives (2) 1,292 - 1,292 - Measured at Fair Value on a Non-recurring basis: Assets Impaired loans (3) Commercial Income producing - real estate 274 - - 274 Land, land development & construction-real estate 9 - - 9 Commercial and industrial 1,051 - - 1,051 Mortgage 1-4 family 339 - - 339 Resort lending 207 - - 207 Other real estate (4) Mortgage 1-4 family 186 - - 186 Resort lending 65 - - 65 (1) Included in accrued income and other assets (2) Included in accrued expenses and other liabilities (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. There were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2018 and 2017. Changes in fair values for financial assets which we have elected the fair value option for the periods presented were as follows: Changes in Fair Values for the nine-Month Periods Ended September 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option Net Gains (Losses) on Assets Mortgage Loan Servicing, net Total Change in Fair Values Included in Current Period Earnings Securities Mortgage Loans (In thousands) 2018 Equity securities at fair value $ (170 ) $ - $ - $ (170 ) Loans held for sale - (120 ) - (120 ) Capitalized mortgage loan servicing rights - - 694 694 2017 Trading securities $ (63 ) $ - $ - $ (63 ) Loans held for sale - 713 - 713 Capitalized mortgage loan servicing rights - - (2,585 ) (2,585 ) For those items measured at fair value pursuant to our election of the fair value option, interest income is recorded within the Condensed Consolidated Statements of Operations based on the contractual amount of interest income earned on these financial assets and dividend income is recorded based on cash dividends received. The following represent impairment charges recognized during the three and nine month periods ended September 30, 2018 and 2017 relating to assets measured at fair value on a non-recurring basis: · Loans which are measured for impairment using the fair value of collateral for collateral dependent loans had a carrying amount of $1.8 million, which is net of a valuation allowance of $0.8 million at September 30, 2018, and had a carrying amount of $1.9 million, which is net of a valuation allowance of $0.7 million at December 31, 2017. · Other real estate, which is measured using the fair value of the property, had a carrying amount of $0.1 million which is net of a valuation allowance of $0.1 million at September 30, 2018, and a carrying amount of $0.3 million, which is net of a valuation allowance of $0.1 million, at December 31, 2017. A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follows: Capitalized Mortgage Loan Servicing Rights Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) (In thousands) Beginning balance $ 21,848 $ 14,515 $ 15,699 $ - Change in accounting - - - 14,213 Beginning balance, as adjusted 21,848 14,515 15,699 14,213 Total gains (losses) realized and unrealized: Included in results of operations (198 ) (1,090 ) 694 (2,585 ) Included in other comprehensive income (loss) - - - - Purchases, issuances, settlements, maturities and calls 1,501 1,250 6,758 3,047 Transfers in and/or out of Level 3 - - - - Ending balance $ 23,151 $ 14,675 $ 23,151 $ 14,675 Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at September 30 $ (198 ) $ (1,090 ) $ 694 $ (2,585 ) The fair value of our capitalized mortgage loan servicing rights has been determined based on a valuation model used by an independent third party Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) September 30, 2018 Capitalized mortgage loan servicing rights $ 23,151 Present value of net Discount rate 10.00% to 13.00 % 10.15 % servicing revenue Cost to service $ 68 to $317 $ 81 Ancillary income 20 to 36 22 Float rate 3.07 % 3.07 % December 31, 2017 Capitalized mortgage loan servicing rights $ 15,699 Present value of net Discount rate 9.88% to 11.00 % 10.11 % servicing revenue Cost to service $ 66 to $216 $ 81 Ancillary income 20 to 36 23 Float rate 2.24 % 2.24 % Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) September 30, 2018 Impaired loans Commercial $ 1,169 Sales comparison approach Adjustment for differences between comparable sales (32.5)% to 25.0% (4.5 )% Mortgage 598 Sales comparison approach Adjustment for differences between comparable sales (40.1) to 30.4 (1.9 ) Other real estate Mortgage 95 Sales comparison approach Adjustment for differences between comparable sales 2.2 to 34.1 17.9 December 31, 2017 Impaired loans Commercial 1,334 Sales comparison approach Adjustment for differences between comparable sales (32.5)% to 25.0% (4.5 )% Mortgage 546 Sales comparison approach Adjustment for differences between comparable sales (21.1) to 34.1 (2.7 ) Other real estate Mortgage 251 Sales comparison approach Adjustment for differences between comparable sales (33.0) to 44.5 (1.0 ) The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected for the periods presented. Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale September 30, 2018 $ 41,325 $ 724 $ 40,601 December 31, 2017 39,436 844 38,592 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Values of Financial Instruments [Abstract] | |
Fair Values of Financial Instruments | 12. Fair Values of Financial Instruments Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates. As discussed in note #2, we adopted ASU 2016-02 as of January 1, 2018. This new ASU requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. All of estimated fair values of our financial instruments in the table below at September 30, 2018 have used this exit price notion. In addition, except as discussed below in the net loans and loans held for sale section, all of our financial assets and liabilities have historically been valued using an exit price notion. This new ASU also removes the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost. The methods and significant assumptions for those financial instruments measured at amortized cost disclosed below are presented for fair values at December 31, 2017. Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances. Cash and due from banks and interest bearing deposits Interest bearing deposits - time Securities Federal Home Loan Bank and Federal Reserve Bank stock Net loans and loans held for sale Loans held for sale are classified as Level 2 as described in note #11. Accrued interest receivable and payable Derivative financial instruments Deposits Other borrowings Subordinated debentures The estimated recorded book balances and fair values follow: Recorded Book Balance Fair Value Fair Value Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2018 Assets Cash and due from banks $ 35,180 $ 35,180 $ 35,180 $ - $ - Interest bearing deposits 17,990 17,990 17,990 - - Interest bearing deposits - time 593 593 - 593 - Equity securities at fair value 285 285 285 - - Securities available for sale 436,957 436,957 - 436,957 - Federal Home Loan Bank and Federal 18,355 NA NA NA NA Net loans and loans held for sale 2,579,502 2,533,221 - 41,325 2,491,896 Accrued interest receivable 10,791 10,791 1 2,383 8,407 Derivative financial instruments 7,734 7,734 - 7,734 - Liabilities Deposits with no stated maturity (1) $ 2,143,552 $ 2,143,552 $ 2,143,552 $ - $ - Deposits with stated maturity (1) 655,091 649,709 - 649,709 - Other borrowings 79,688 79,275 - 79,275 - Subordinated debentures 39,371 36,888 - 36,888 - Accrued interest payable 1,463 1,463 110 1,353 - Derivative financial instruments 2,696 2,696 - 2,696 - December 31, 2017 Assets Cash and due from banks $ 36,994 $ 36,994 $ 36,994 $ - $ - Interest bearing deposits 17,744 17,744 17,744 - - Interest bearing deposits - time 2,739 2,740 - 2,740 - Trading securities 455 455 455 - - Securities available for sale 522,925 522,925 898 522,027 - Federal Home Loan Bank and Federal 15,543 NA NA NA NA Net loans and loans held for sale 2,035,666 1,962,937 - 39,436 1,923,501 Accrued interest receivable 8,609 8,609 1 2,192 6,416 Derivative financial instruments 3,080 3,080 - 3,080 - Liabilities Deposits with no stated maturity (1) $ 1,845,716 $ 1,845,716 $ 1,845,716 $ - $ - Deposits with stated maturity (1) 554,818 551,489 - 551,489 - Other borrowings 54,600 54,918 - 54,918 - Subordinated debentures 35,569 29,946 - 29,946 - Accrued interest payable 892 892 48 844 - Derivative financial instruments 1,292 1,292 - 1,292 - (1) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $44.681 million and $12.992 million at September 30, 2018 and December 31, 2017, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $ million and $37.987 million September 30, 2018 and December 31, 2017, respectively. The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal and therefore are not disclosed. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments. Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | 13. Contingent Liabilities We are involved in various litigation matters in the ordinary course of business. At the present time, we do not believe any of these matters will have a significant impact on our consolidated financial position or results of operations. The aggregate amount we have accrued for losses we consider probable as a result of these litigation matters is immaterial. However, because of the inherent uncertainty of outcomes from any litigation matter, we believe it is reasonably possible we may incur losses in addition to the amounts we have accrued. At this time, we estimate the maximum amount of additional losses that are reasonably possible is insignificant. However, because of a number of factors, including the fact that certain of these litigation matters are still in their early stages, this maximum amount may change in the future. The litigation matters described in the preceding paragraph primarily include claims that have been brought against us for damages, but do not include litigation matters where we seek to collect amounts owed to us by third parties (such as litigation initiated to collect delinquent loans). These excluded, collection-related matters may involve claims or counterclaims by the opposing party or parties, but we have excluded such matters from the disclosure contained in the preceding paragraph in all cases where we believe the possibility of us paying damages to any opposing party is remote. Risks associated with the likelihood that we will not collect the full amount owed to us, net of reserves, are disclosed elsewhere in this report. In connection with the sale of Mepco Finance Corporation (“Mepco”) (see note #15), we agreed to contractually indemnify the purchaser from certain losses it may incur, including as a result of its failure to collect certain receivables it purchased as part of the business as well as breaches of representations and warranties we made in the sale agreement, subject to various limitations. We have not accrued any liability related to these indemnification requirements in our September 30, 2018 Condensed Consolidated Statement of Financial Condition because we believe the likelihood of having to pay any amount as a result of these indemnification obligations is remote. However, if the purchaser is unable to collect the receivables it purchased from Mepco or otherwise encounters difficulties in operating the business, it is possible it could make one or more claims against us pursuant to the sale agreement. In that event, we may incur expenses in defending any such claims and/or amounts paid to such purchaser to resolve such claims. As of September 30, 2018 these receivables balances had declined to $2.1 million and to date the purchaser has made no claims for indemnification. The provision for loss reimbursement on sold loans represents our estimate of incurred losses related to mortgage loans that we have sold to investors (primarily Fannie Mae, Freddie Mac, Ginnie Mae and the FHLB). Since we sell mortgage loans without recourse, loss reimbursements only occur in those instances where we have breached a representation or warranty or other contractual requirement related to the loan sale. The provision for loss reimbursement on sold loans was an expense of $0.05 million and $0.02 million for the three month periods ended September 30, 2018 and 2017 and an expense of $0.08 million and $0.07 million for the nine month periods ended September 30, 2018 and 2017, respectively. The reserve for loss reimbursements on sold mortgage loans totaled $0.85 million and $0.67 million at September 30, 2018 and December 31, 2017, respectively. This reserve is included in accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Condition. This reserve is based on an analysis of mortgage loans that we have sold which are further categorized by delinquency status, loan to value, and year of origination. The calculation includes factors such as probability of default, probability of loss reimbursement (breach of representation or warranty) and estimated loss severity. We believe that the amounts that we have accrued for incurred losses on sold mortgage loans are appropriate given our analyses. However, future losses could exceed our current estimate. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Loss ("AOCL") [Abstract] | |
Accumulated Other Comprehensive Loss ("AOCL") | 14. Accumulated Other Comprehensive Loss (“AOCL”) A summary of changes in AOCL follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Gains on Cash Flow Hedges Total (In thousands) For the three months ended September 30, 2018 Balances at beginning of period $ (4,437 ) $ (5,798 ) $ 1,021 $ (9,214 ) Other comprehensive income (loss) before reclassifications (925 ) - 307 (618 ) Amounts reclassified from AOCL - - (57 ) (57 ) Net current period other comprehensive income (loss) (925 ) - 250 (675 ) Balances at end of period $ (5,362 ) $ (5,798 ) $ 1,271 $ (9,889 ) 2017 Balances at beginning of period $ 1,986 $ (5,798 ) $ - $ (3,812 ) Other comprehensive income before reclassifications 95 - 62 157 Amounts reclassified from AOCL (5 ) - 3 (2 ) Net current period other comprehensive income 90 - 65 155 Balances at end of period $ 2,076 $ (5,798 ) $ 65 $ (3,657 ) For the nine months ended September 30, 2018 Balances at beginning of period $ (470 ) $ (5,798 ) $ 269 $ (5,999 ) Other comprehensive income (loss) before reclassifications (4,928 ) - 1,106 (3,822 ) Amounts reclassified from AOCL 36 - (104 ) (68 ) Net current period other comprehensive income (loss) (4,892 ) - 1,002 (3,890 ) Balances at end of period $ (5,362 ) $ (5,798 ) $ 1,271 $ (9,889 ) 2017 Balances at beginning of period $ (3,310 ) $ (5,798 ) $ - $ (9,108 ) Cumulative effect of change in accounting 300 - - 300 Balances at beginning of period, as adjusted (3,010 ) (5,798 ) - (8,808 ) Other comprehensive income before reclassifications 5,167 - 62 5,229 Amounts reclassified from AOCL (81 ) - 3 (78 ) Net current period other comprehensive income 5,086 - 65 5,151 Balances at end of period $ 2,076 $ (5,798 ) $ 65 $ (3,657 ) The disproportionate tax effects from securities available for sale arose due to tax effects of other comprehensive income (“OCI”) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. Release of material disproportionate tax effects from other comprehensive income to earnings is done by the portfolio method whereby the effects will remain in AOCL as long as we carry a more than insubstantial portfolio of securities available for sale. A summary of reclassifications out of each component of AOCL for the three months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2018 Unrealized losses on securities $ - Net gains (losses) on securities - Net impairment loss recognized in earnings - Total reclassifications before tax - Income tax expense $ - Reclassifications, net of tax Unrealized gains on cash flow hedges $ (73 ) Interest expense (16 ) Income tax expense $ (57 ) Reclassification, net of tax $ 57 Total reclassifications for the period, net of tax 2017 Unrealized gains on securities available for sale $ 8 Net gains (losses) on securities - Net impairment loss recognized in earnings 8 Total reclassifications before tax 3 Income tax expense $ 5 Reclassifications, net of tax Unrealized gains on cash flow hedges $ (5 ) Interest expense (2 ) Income tax expense $ (3 ) Reclassification, net of tax $ 2 Total reclassifications for the period, net of tax A summary of reclassifications out of each component of AOCL for the nine months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2018 Unrealized losses on securities available for sale $ (45 ) Net gains (losses) on securities - Net impairment loss recognized in earnings (45 ) Total reclassifications before tax (9 ) Income tax expense $ (36 ) Reclassifications, net of tax Unrealized gains on cash flow hedges $ (132 ) Interest expense (28 ) Income tax expense $ (104 ) Reclassification, net of tax $ 68 Total reclassifications for the period, net of tax 2017 Unrealized gains on securities available for sale $ 125 Net gains (losses) on securities - Net impairment loss recognized in earnings 125 Total reclassifications before tax 44 Income tax expense $ 81 Reclassifications, net of tax Unrealized gains on cash flow hedges $ (5 ) Interest expense (2 ) Income tax expense $ (3 ) Reclassification, net of tax $ 78 Total reclassifications for the period, net of tax |
Mepco Sale
Mepco Sale | 9 Months Ended |
Sep. 30, 2018 | |
Mepco Sale [Abstract] | |
Mepco Sale | 15. Mepco Sale On December 30, 2016, Mepco executed an Asset Purchase Agreement (the “APA”) with Seabury Asset Management LLC (“Seabury”). Pursuant to the terms of the APA, we sold our payment plan processing business, payment plan receivables, and certain other assets to Seabury, who also assumed certain liabilities of Mepco. This transaction closed on May 18, 2017, with an effective date of May 1, 2017. As a result of the closing, Mepco sold $33.1 million of net payment plan receivables, $0.5 million of commercial loans, $0.2 million of furniture and equipment and $1.6 million of other assets to Seabury, who also assumed $2.0 million of specified liabilities. We received cash totaling $33.4 million and recorded no gain or loss in 2017 as the assets were sold and the liabilities were assumed at book value. |
Recent Acquisition
Recent Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Recent Acquisition [Abstract] | |
Recent Acquisition | 16. Recent Acquisition Effective April 1, 2018, we completed the acquisition of all of the issued and outstanding shares of common stock of TCSB through a merger of TCSB into Independent Bank Corporation (“IBCP”), with IBCP as the surviving corporation (the ‘‘Merger’’). On that same date we also consolidated Traverse City State Bank, TCSB’s wholly-owned subsidiary bank, into Independent Bank (with Independent Bank as the surviving institution). Under the terms of the merger agreement each holder of TCSB common stock received 1.1166 shares of IBCP common stock plus cash in lieu of fractional shares totaling $0.005 million. TCSB option holders had their options converted into IBCP stock options. As a result we issued 2.71 million shares of common stock and 0.19 million stock options with a fair value of approximately $64.5 million to the shareholders and option holders of TCSB. The fair value of common stock and stock options issued as the consideration paid for TCSB was determined using the closing price of our common stock on the acquisition date. This acquisition was accounted for under the acquisition method of accounting. Accordingly, we recognized amounts for identifiable assets acquired and liabilities assumed at their estimated acquisition date fair values. TCSB results of operations are included in our results beginning April 1, 2018. Non-interest expense includes $0.1 million and $3.4 million of costs incurred during the three and nine month periods ended September 30, 2018, respectively related to the Merger. Any remaining merger related costs will be expensed as incurred in future periods. The following table reflects our preliminary valuation of the assets acquired and liabilities assumed: (In thousands) Cash and cash equivalents $ 23,521 Interest bearing deposits - time 4,054 Securities available for sale 6,066 Federal Home Loan Bank stock 778 Loans, net 295,799 Property and equipement, net 1,067 Capitalized mortgage loan servicing rights 3,047 Accrued income and other assets 3,362 Other intangibles (1) 5,798 Total assets acquired 343,492 Deposits 287,710 Other borrowings 14,345 Subordinated debentures 3,768 Accrued expenses and other liabilities 1,429 Total liabilities assumed 307,252 Net assets acquired 36,240 Goodwill 28,300 Purchase price (fair value of consideration) $ 64,540 (1) Relates to core deposit intangibles (see note #7). Management views the disclosed fair values presented above to be provisional. Prior to the end of the one-year measurement period for finalizing acquisition-date fair values, if information becomes available which would indicate adjustments are required to the allocation, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined. In the third quarter of 2018, goodwill was reduced by $0.7 million (to $28.3 million) related to the collection of a TCSB acquired loan that had been charged off in full prior to the Merger. Because of the status of the collection activities related to this loan at the time of the Merger, we determined that this transaction was a measurement period adjustment and reduced goodwill accordingly. Goodwill related to this acquisition will not be deductible for tax purposes and consists largely of synergies and cost savings resulting from the combining of the operations of TCSB into ours as well as expansion into a new market. The estimated fair value of the core deposit intangible was $5.8 million and is being amortized over an estimated useful life of 10 years. The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. However, we believe that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans which have shown evidence of credit deterioration since origination. Receivables acquired that are not subject to these requirements included non-impaired customer receivables with a fair value and gross contractual amounts receivable of $292.9 million and $298.6 million on the date of acquisition. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contracts with Customers | 17. Revenue from Contracts with Customers We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which we adopted on January 1, 2018, using the modified retrospective method (see note #2). We derive the majority of our revenue from financial instruments and their related contractual rights and obligations which for the most part are excluded from the scope of ASU 2014-09. These sources of revenue that are excluded from the scope of this amended guidance include interest income, net gains on mortgage loans, net gains (losses) on securities, mortgage loan servicing, net and bank owned life insurance and were approximately 83.1% and 80.0% of total revenues at September 30, 2018 and 2017, respectively. Material sources of revenue that are included in the scope of ASC Topic 606 include service charges on deposits, other deposit related income, interchange income and investment and insurance commissions and are discussed in the following paragraphs. Generally these sources of revenue are earned at the time the service is delivered or over the course of a monthly period and do not result in any contract asset or liability balance at any given period end. As a result, there were no contract assets or liabilities recorded as of September 30, 2018. Service charges on deposit accounts and other deposit related income : Interchange income: Investment and insurance commissions: Net (gains) losses on other real estate and repossessed assets: Disaggregation of our revenue sources by attribute for the three months ending September 30, 2018 follows: Service Charges on Deposits Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 2,161 $ 2,161 Account service charges 519 519 ATM fees $ 374 374 Other 219 219 Business Overdraft fees 408 408 Account service charges 78 78 ATM fees 10 10 Other 124 124 Interchange income $ 2,486 2,486 Asset management revenue $ 274 274 Transaction based revenue 239 239 Total $ 3,166 $ 727 $ 2,486 $ 513 $ 6,892 Reconciliation to Condensed Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 727 Investment and insurance commissions 513 Bank owned life insurance 237 Other 657 Total $ 2,134 Disaggregation of our revenue sources by attribute for the nine months ending September 30, 2018 follows: Service Charges on Deposits Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 6,177 $ 6,177 Account service charges 1,607 1,607 ATM fees $ 1,077 1,077 Other 656 656 Business Overdraft fees 1,153 1,153 Account service charges 229 229 ATM fees 26 26 Other 399 399 Interchange income $ 7,236 7,236 Asset management revenue $ 826 826 Transaction based revenue 608 608 Total $ 9,166 $ 2,158 $ 7,236 $ 1,434 $ 19,994 Reconciliation to Condensed Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,158 Investment and insurance commissions 1,434 Bank owned life insurance 713 Other 1,989 Total $ 6,294 |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)”. This ASU amends existing guidance related to the accounting for leases. These amendments, among other things, require lessees to account for most leases on the balance sheet while recognizing expense on the income statement in a manner similar to existing guidance. For lessors the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. This amended guidance is effective for us on January 1, 2019 and is not expected to have a material impact on our consolidated operating results or financial condition. Based on a review of our operating leases that we currently have in place we do not expect a material change in the recognition, measurement and presentation of lease expense or impact on cash flow. While the primary impact will be the recognition of certain operating leases on our Condensed Consolidated Statements of Financial Condition this impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For securities available for sale, allowances will be recorded rather than reducing the carrying amount as is done under the current other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This amended guidance is effective for us on January 1, 2020. We began evaluating this ASU in 2016 and have formed a committee that includes personnel from various areas of Independent Bank (the “Bank”) that meets regularly to discuss the implementation of the ASU. We are currently in the process of gathering data and reviewing loss methodologies and have engaged third party resources that will assist us in the implementation of this ASU. While we have not yet determined what the impact will be on our consolidated operating results or financial condition by the nature of the implementation of an expected loss model compared to an incurred loss approach, we would expect our allowance for loan losses (“AFLL”) to increase under this ASU. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities”. This new ASU amends the hedge accounting model in Topic 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The amendments expand an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. This amended guidance is effective for us on January 1, 2019, and given our current level of derivatives designated as hedges is not expected to have a material impact on our consolidated operating results or financial condition. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” , The impact of the adoption of ASU 2014-09 on our Condensed Consolidated Statement of Operations follows: As Reported Under Legacy GAAP Impact of ASU 2014-09 (In thousands) Three months ended September 30, 2018 Non-interest income - Interchange income $ 2,486 $ 2,088 $ 398 (1 ) Non-interest expense - interchange expense $ 715 $ 317 398 (1 ) Impact on net income $ - Nine months ended September 30, 2018 Non-interest income - Interchange income $ 7,236 $ 6,170 $ 1,066 (1 ) Non-interest expense - interchange expense $ 1,974 $ 908 1,066 (1 ) Impact on net income $ - (1) Represents certain costs charged by payment networks that were previously netted against interchange income. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU amends existing guidance related to the accounting for certain financial assets and liabilities. These amendments, among other things, require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This amended guidance was effective for us on January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated operating results or financial condition. As a result of the adoption of this ASU our equity securities previously classified as trading securities are now classified as equity securities at fair value on our September 30, 2018 Condensed Consolidated Statement of Financial Condition. In addition, this amended guidance impacted certain fair value disclosure items (see note #12). In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business”. This new ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses which distinction determines whether goodwill is recorded or not. This amended guidance was effective for us on January 1, 2018, and did not have a material impact on our consolidated operating results or financial condition. In January 2017, the FASB issued ASU 2017-4, “Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment”. This new ASU amends the requirement that entities compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, entities should perform their annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment if the carrying amount exceeds the reporting unit’s fair value. This amended guidance is effective for us on January 1, 2020 with early application permitted. Due to our recent acquisition (see note #16) and expectations this ASU will be relevant to us in 2018 we elected to adopt this amended guidance as of January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated operating results or financial condition. In February 2018, the FASB issued ASU 2018-02, ‘‘Income Statement – Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income’’. This new ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. As a result, this amended guidance eliminates the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. This amended guidance is effective for us on January 1, 2019, with early application permitted in any period for which financial statements have not yet been issued. We elected to adopt this amended guidance during the fourth quarter of 2017 and it resulted in a $0.04 million reclassification between accumulated other comprehensive loss and accumulated deficit. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Standards [Abstract] | |
Impact of Adoption on Condensed Consolidated Statement of Operations | The impact of the adoption of ASU 2014-09 on our Condensed Consolidated Statement of Operations follows: As Reported Under Legacy GAAP Impact of ASU 2014-09 (In thousands) Three months ended September 30, 2018 Non-interest income - Interchange income $ 2,486 $ 2,088 $ 398 (1 ) Non-interest expense - interchange expense $ 715 $ 317 398 (1 ) Impact on net income $ - Nine months ended September 30, 2018 Non-interest income - Interchange income $ 7,236 $ 6,170 $ 1,066 (1 ) Non-interest expense - interchange expense $ 1,974 $ 908 1,066 (1 ) Impact on net income $ - (1) Represents certain costs charged by payment networks that were previously netted against interchange income. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Securities [Abstract] | |
Securities Available for Sale | Securities available for sale consist of the following: Amortized Unrealized Cost Gains Losses Fair Value (In thousands) September 30, 2018 U.S. agency $ 20,769 $ - $ 346 $ 20,423 U.S. agency residential mortgage-backed 126,851 802 2,592 125,061 U.S. agency commercial mortgage-backed 6,039 - 224 5,815 Private label mortgage-backed 29,340 369 736 28,973 Other asset backed 78,567 147 188 78,526 Obligations of states and political subdivisions 143,138 219 3,703 139,654 Corporate 35,017 65 512 34,570 Trust preferred 1,963 - 38 1,925 Foreign government 2,060 - 50 2,010 Total $ 443,744 $ 1,602 $ 8,389 $ 436,957 December 31, 2017 U.S. Treasury $ 898 $ - $ - $ 898 U.S. agency 25,667 82 67 25,682 U.S. agency residential mortgage-backed 137,785 1,116 983 137,918 U.S. agency commercial mortgage-backed 9,894 36 170 9,760 Private label mortgage-backed 29,011 428 330 29,109 Other asset backed 93,811 202 115 93,898 Obligations of states and political subdivisions 174,073 755 1,883 172,945 Corporate 47,365 578 90 47,853 Trust preferred 2,929 - 127 2,802 Foreign government 2,087 - 27 2,060 Total $ 523,520 $ 3,197 $ 3,792 $ 522,925 |
Investments in a Continuous Unrealized Loss Position | Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) September 30, 2018 U.S. agency $ 11,938 $ 239 $ 8,485 $ 107 $ 20,423 $ 346 U.S. agency residential mortgage-backed 28,672 765 40,857 1,827 69,529 2,592 U.S. agency commercial mortgage-backed 1,358 12 4,391 212 5,749 224 Private label mortgage- backed 10,209 295 8,473 441 18,682 736 Other asset backed 30,663 92 11,226 96 41,889 188 Obligations of states and political subdivisions 59,590 1,157 57,509 2,546 117,099 3,703 Corporate 20,853 361 5,726 151 26,579 512 Trust preferred - - 925 38 925 38 Foreign government - - 2,010 50 2,010 50 Total $ 163,283 $ 2,921 $ 139,602 $ 5,468 $ 302,885 $ 8,389 December 31, 2017 U.S. agency $ 5,466 $ 26 $ 5,735 $ 41 $ 11,201 $ 67 U.S. agency residential mortgage-backed 22,198 229 40,698 754 62,896 983 U.S. agency commercial mortgage-backed 2,181 34 3,994 136 6,175 170 Private label mortgage-backed 11,390 92 4,396 238 15,786 330 Other asset backed 20,352 40 16,648 75 37,000 115 Obligations of states and political subdivisions 76,574 936 28,246 947 104,820 1,883 Corporate 14,440 33 3,943 57 18,383 90 Trust preferred - - 2,802 127 2,802 127 Foreign government 489 10 1,571 17 2,060 27 Total $ 153,090 $ 1,400 $ 108,033 $ 2,392 $ 261,123 $ 3,792 |
Private Label Mortgage Backed Securities Below Investment Grade | At September 30, 2018, three private label mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Senior Support Security Total (In thousands) Fair value $ 842 $ 808 $ 32 $ 1,682 Amortized cost 698 633 - 1,331 Non-credit unrealized loss - - - - Unrealized gain 144 175 32 351 Cumulative credit related OTTI 757 457 380 1,594 |
Credit Losses Recognized in Earnings on Securities Available for Sale | A roll forward of credit losses recognized in earnings on securities available for sale follows: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (In thousands) (In thousands) Balance at beginning of period $ 1,594 $ 1,594 $ 1,594 $ 1,594 Additions to credit losses on securities for which no previous OTTI was recognized - - - - Increases to credit losses on securities for which OTTI was previously recognized - - - - Balance at end of period $ 1,594 $ 1,594 $ 1,594 $ 1,594 |
Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and fair value of securities available for sale at September 30, 2018, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 14,513 $ 14,494 Maturing after one year but within five years 79,683 78,634 Maturing after five years but within ten years 62,609 60,979 Maturing after ten years 46,142 44,475 202,947 198,582 U.S. agency residential mortgage-backed 126,851 125,061 U.S. agency commercial mortgage-backed 6,039 5,815 Private label mortgage-backed 29,340 28,973 Other asset backed 78,567 78,526 Total $ 443,744 $ 436,957 |
Gains and Losses Realized on Sale of Securities Available for Sale | A summary of proceeds from the sale of securities available for sale and gains and losses for the nine month periods ending September 30, follows: Realized Proceeds (1) Gains (2) Losses (In thousands) 2018 $ 31,445 $ 81 $ 126 2017 9,594 125 - (1) 2017 includes $0.760 million for trades that did not settle until after September 30, 2017. (2) 2018 excludes a $0.144 million gain on the sale of 1,000 VISA Class B shares. |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans [Abstract] | |
Analysis of Allowance for Loan Losses by Portfolio Segment | An analysis of the allowance for loan losses by portfolio segment for the three months ended September 30, follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2018 Balance at beginning of period $ 6,073 $ 8,296 $ 848 $ 8,287 $ 23,504 Additions (deductions) Provision for loan losses (907 ) 415 (25 ) 464 (53 ) Recoveries credited to the allowance 1,418 192 298 - 1,908 Loans charged against the allowance (225 ) (448 ) (285 ) - (958 ) Balance at end of period $ 6,359 $ 8,455 $ 836 $ 8,751 $ 24,401 2017 Balance at beginning of period $ 5,100 $ 8,145 $ 900 $ 6,441 $ 20,586 Additions (deductions) Provision for loan losses (97 ) 68 (33 ) 644 582 Recoveries credited to the allowance 340 587 285 - 1,212 Loans charged against the allowance (92 ) (471 ) (339 ) - (902 ) Balance at end of period $ 5,251 $ 8,329 $ 813 $ 7,085 $ 21,478 An analysis of the allowance for loan losses by portfolio segment for the nine months ended September 30, follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) 2018 Balance at beginning of period $ 5,595 $ 8,733 $ 864 $ 7,395 $ 22,587 Additions (deductions) Provision for loan losses (1,404 ) 778 182 1,356 912 Recoveries credited to the allowance 2,458 549 761 - 3,768 Loans charged against the allowance (290 ) (1,605 ) (971 ) - (2,866 ) Balance at end of period $ 6,359 $ 8,455 $ 836 $ 8,751 $ 24,401 2017 Balance at beginning of period $ 4,880 $ 8,681 $ 1,011 $ 5,662 $ 20,234 Additions (deductions) Provision for loan losses (197 ) (593 ) 173 1,423 806 Recoveries credited to the allowance 946 1,264 788 - 2,998 Loans charged against the allowance (378 ) (1,023 ) (1,159 ) - (2,560 ) Balance at end of period $ 5,251 $ 8,329 $ 813 $ 7,085 $ 21,478 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment | Allowance for loan losses and recorded investment in loans by portfolio segment follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) September 30, 2018 Allowance for loan losses Individually evaluated for impairment $ 727 $ 5,155 $ 220 $ - $ 6,102 Collectively evaluated for impairment 5,632 3,300 616 8,751 18,299 Loans acquired with deteriorated credit quality - - - - - Total ending allowance balance $ 6,359 $ 8,455 $ 836 $ 8,751 $ 24,401 Loans Individually evaluated for impairment $ 9,714 $ 48,815 $ 3,630 $ 62,159 Collectively evaluated for impairment 1,103,860 1,011,276 391,093 2,506,229 Loans acquired with deteriorated credit quality 1,653 557 355 2,565 Total loans recorded investment 1,115,227 1,060,648 395,078 2,570,953 Accrued interest included in recorded investment 3,126 4,166 1,083 8,375 Total loans $ 1,112,101 $ 1,056,482 $ 393,995 $ 2,562,578 December 31, 2017 Allowance for loan losses Individually evaluated for impairment $ 837 $ 5,725 $ 277 $ - $ 6,839 Collectively evaluated for impairment 4,758 3,008 587 7,395 15,748 Total ending allowance balance $ 5,595 $ 8,733 $ 864 $ 7,395 $ 22,587 Loans Individually evaluated for impairment $ 8,420 $ 53,179 $ 3,945 $ 65,544 Collectively evaluated for impairment 847,140 799,629 313,005 1,959,774 Total loans recorded investment 855,560 852,808 316,950 2,025,318 Accrued interest included in recorded investment 2,300 3,278 923 6,501 Total loans $ 853,260 $ 849,530 $ 316,027 $ 2,018,817 |
Loans on Non-Accrual Status and Past Due More than 90 Days | Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow: 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) September 30, 2018 Commercial Income producing - real estate $ - $ - $ - Land, land development and construction - real estate - 2,402 2,402 Commercial and industrial - 380 380 Mortgage 1-4 family - 4,159 4,159 Resort lending - 969 969 Home equity - 1st lien - 324 324 Home equity - 2nd lien - 353 353 Installment Home equity - 1st lien - 225 225 Home equity - 2nd lien - 246 246 Boat lending - 64 64 Recreational vehicle lending - 8 8 Other - 213 213 Total recorded investment $ - $ 9,343 $ 9,343 Accrued interest included in recorded investment $ - $ - $ - December 31, 2017 Commercial Income producing - real estate $ - $ 30 $ 30 Land, land development and construction - real estate - 9 9 Commercial and industrial - 607 607 Mortgage 1-4 family - 5,130 5,130 Resort lending - 1,223 1,223 Home equity - 1st lien - 326 326 Home equity - 2nd lien - 316 316 Installment Home equity - 1st lien - 141 141 Home equity - 2nd lien - 159 159 Boat lending - 100 100 Recreational vehicle lending - 25 25 Other - 118 118 Total recorded investment $ - $ 8,184 $ 8,184 Accrued interest included in recorded investment $ - $ - $ - |
Aging Analysis of Loans by Class | An aging analysis of loans by class follows: Loans Past Due Loans not Past Due Total Loans 30-59 days 60-89 days 90+ days Total (In thousands) September 30, 2018 Commercial Income producing - real estate $ - $ 32 $ - $ 32 $ 378,201 $ 378,233 Land, land development and construction - real estate - - 2,402 2,402 61,760 64,162 Commercial and industrial 881 25 51 957 671,875 672,832 Mortgage 1-4 family 2,146 687 4,344 7,177 844,584 851,761 Resort lending 418 - 969 1,387 83,420 84,807 Home equity - 1st lien 81 15 324 420 40,312 40,732 Home equity - 2nd lien 364 209 353 926 82,422 83,348 Installment Home equity - 1st lien 285 44 225 554 7,738 8,292 Home equity - 2nd lien 190 45 246 481 7,099 7,580 Boat lending 153 16 64 233 169,925 170,158 Recreational vehicle lending 46 30 8 84 123,199 123,283 Other 145 140 213 498 85,267 85,765 Total recorded investment $ 4,709 $ 1,243 $ 9,199 $ 15,151 $ 2,555,802 $ 2,570,953 Accrued interest included in recorded investment $ 53 $ 21 $ - $ 74 $ 8,301 $ 8,375 December 31, 2017 Commercial Income producing - real estate $ - $ - $ 30 $ 30 $ 290,466 $ 290,496 Land, land development and construction - real estate 9 - - 9 70,182 70,191 Commercial and industrial 60 - 44 104 494,769 494,873 Mortgage 1-4 family 1,559 802 5,130 7,491 659,742 667,233 Resort lending 713 - 1,223 1,936 88,620 90,556 Home equity - 1st lien 308 38 326 672 34,689 35,361 Home equity - 2nd lien 353 155 316 824 58,834 59,658 Installment Home equity - 1st lien 90 11 141 242 9,213 9,455 Home equity - 2nd lien 217 94 159 470 9,001 9,471 Boat lending 59 36 100 195 129,777 129,972 Recreational vehicle lending 28 20 25 73 92,737 92,810 Other 275 115 118 508 74,734 75,242 Total recorded investment $ 3,671 $ 1,271 $ 7,612 $ 12,554 $ 2,012,764 $ 2,025,318 Accrued interest included in recorded investment $ 43 $ 22 $ - $ 65 $ 6,436 $ 6,501 |
Impaired Loans | Impaired loans are as follows: September 30, 2018 December 31, 2017 Impaired loans with no allocated allowance for loan losses (In thousands) TDR $ 347 $ 349 Non - TDR 2,402 175 Impaired loans with an allocated allowance for loan losses TDR - allowance based on collateral 2,366 2,482 TDR - allowance based on present value cash flow 56,599 62,113 Non - TDR - allowance based on collateral 168 148 Total impaired loans $ 61,882 $ 65,267 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 692 $ 684 TDR - allowance based on present value cash flow 5,335 6,089 Non - TDR - allowance based on collateral 75 66 Total amount of allowance for loan losses allocated $ 6,102 $ 6,839 Impaired loans by class are as follows: September 30, 2018 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance for loan losses recorded: (In thousands) Commercial Income producing - real estate $ - $ - $ - $ - $ - $ - Land, land development & construction-real estate 2,402 2,402 - - - - Commercial and industrial 347 347 - 524 549 - Mortgage 1-4 family 2 447 - 2 469 - Resort lending - - - - - - Home equity - 1st lien - - - - - - Home equity - 2nd lien - 34 - - - - Installment Home equity - 1st lien 1 90 - 1 69 - Home equity - 2nd lien - - - - - - Boat lending - 5 - - - - Recreational vehicle lending - - - - - - Other - 16 - - - - 2,752 3,341 - 527 1,087 - With an allowance for loan losses recorded: Commercial Income producing - real estate 4,829 4,808 307 5,195 5,347 347 Land, land development & construction-real estate 152 152 4 166 194 9 Commercial and industrial 1,984 2,133 416 2,535 2,651 481 Mortgage 1-4 family 34,656 36,169 3,126 36,848 38,480 3,454 Resort lending 13,934 13,972 2,017 15,978 16,046 2,210 Home equity - 1st lien 66 65 3 173 236 43 Home equity - 2nd lien 157 156 9 178 213 18 Installment Home equity - 1st lien 1,520 1,640 97 1,667 1,804 108 Home equity - 2nd lien 1,626 1,644 93 1,793 1,805 140 Boat lending - - - 1 5 1 Recreational vehicle lending 81 81 4 90 90 5 Other 402 428 26 393 418 23 59,407 61,248 6,102 65,017 67,289 6,839 Total Commercial Income producing - real estate 4,829 4,808 307 5,195 5,347 347 Land, land development & construction-real estate 2,554 2,554 4 166 194 9 Commercial and industrial 2,331 2,480 416 3,059 3,200 481 Mortgage 1-4 family 34,658 36,616 3,126 36,850 38,949 3,454 Resort lending 13,934 13,972 2,017 15,978 16,046 2,210 Home equity - 1st lien 66 65 3 173 236 43 Home equity - 2nd lien 157 190 9 178 213 18 Installment Home equity - 1st lien 1,521 1,730 97 1,668 1,873 108 Home equity - 2nd lien 1,626 1,644 93 1,793 1,805 140 Boat lending - 5 - 1 5 1 Recreational vehicle lending 81 81 4 90 90 5 Other 402 444 26 393 418 23 Total $ 62,159 $ 64,589 $ 6,102 $ 65,544 $ 68,376 $ 6,839 Accrued interest included in recorded investment $ 277 $ 277 |
Average Recorded Investment in and Interest Income Earned on Impaired Loans by Class | Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending September 30, follows: 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance for loan losses recorded: (In thousands) Commercial Income producing - real estate $ - $ - $ - $ - Land, land development & construction-real estate 2,402 - - - Commercial and industrial 425 7 445 8 Mortgage 1-4 family 121 9 127 7 Resort lending - - - - Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien 1 1 1 1 Home equity - 2nd lien - - - - Boat lending - - - - Recreational vehicle lending - - - - Other - - - 1 2,949 17 573 17 With an allowance for loan losses recorded: Commercial Income producing - real estate 4,968 64 7,311 91 Land, land development & construction-real estate 153 3 171 2 Commercial and industrial 2,264 24 2,878 26 Mortgage 1-4 family 34,731 458 38,533 462 Resort lending 14,276 161 16,175 153 Home equity - 1st lien 67 1 201 1 Home equity - 2nd lien 157 2 180 2 Installment Home equity - 1st lien 1,545 27 1,808 40 Home equity - 2nd lien 1,679 24 2,058 26 Boat lending 1 - 1 - Recreational vehicle lending 83 1 98 1 Other 406 5 361 6 60,330 770 69,775 810 Total Commercial Income producing - real estate 4,968 64 7,311 91 Land, land development & construction-real estate 2,555 3 171 2 Commercial and industrial 2,689 31 3,323 34 Mortgage 1-4 family 34,852 467 38,660 469 Resort lending 14,276 161 16,175 153 Home equity - 1st lien 67 1 201 1 Home equity - 2nd lien 157 2 180 2 Installment Home equity - 1st lien 1,546 28 1,809 41 Home equity - 2nd lien 1,679 24 2,058 26 Boat lending 1 - 1 - Recreational vehicle lending 83 1 98 1 Other 406 5 361 7 Total $ 63,279 $ 787 $ 70,348 $ 827 Average recorded investment in and interest income earned on impaired loans by class for the nine month periods ending September 30, follows: 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance for loan losses recorded: (In thousands) Commercial Income producing - real estate $ - $ - $ 222 $ - Land, land development & construction-real estate 1,201 - 8 - Commercial and industrial 472 20 808 16 Mortgage 1-4 family 70 18 64 16 Resort lending - - - - Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien 1 5 1 4 Home equity - 2nd lien - - - - Boat lending - - - - Recreational vehicle lending - - - - Other - 1 - 1 1,744 44 1,103 37 With an allowance for loan losses recorded: Commercial Income producing - real estate 5,077 202 7,525 300 Land, land development & construction-real estate 157 7 187 6 Commercial and industrial 2,391 90 3,488 98 Mortgage 1-4 family 35,549 1,347 39,716 1,420 Resort lending 15,027 475 16,485 464 Home equity - 1st lien 115 4 218 5 Home equity - 2nd lien 167 5 217 5 Installment Home equity - 1st lien 1,595 81 1,874 107 Home equity - 2nd lien 1,728 76 2,210 96 Boat lending 1 - 1 - Recreational vehicle lending 86 3 103 4 Other 406 18 373 19 62,299 2,308 72,397 2,524 Total Commercial Income producing - real estate 5,077 202 7,747 300 Land, land development & construction-real estate 1,358 7 195 6 Commercial and industrial 2,863 110 4,296 114 Mortgage 1-4 family 35,619 1,365 39,780 1,436 Resort lending 15,027 475 16,485 464 Home equity - 1st lien 115 4 218 5 Home equity - 2nd lien 167 5 217 5 Installment Home equity - 1st lien 1,596 86 1,875 111 Home equity - 2nd lien 1,728 76 2,210 96 Boat lending 1 - 1 - Recreational vehicle lending 86 3 103 4 Other 406 19 373 20 Total $ 64,043 $ 2,352 $ 73,500 $ 2,561 |
Troubled Debt Restructurings | Troubled debt restructurings follow: September 30, 2018 Commercial Retail (1) Total (In thousands) Performing TDRs $ 6,904 $ 49,397 $ 56,301 Non-performing TDRs(2) 212 2,799 (3) 3,011 Total $ 7,116 $ 52,196 $ 59,312 December 31, 2017 Commercial Retail (1) Total (In thousands) Performing TDRs $ 7,748 $ 52,367 $ 60,115 Non-performing TDRs(2) 323 4,506 (3) 4,829 Total $ 8,071 $ 56,873 $ 64,944 (1) Retail loans include mortgage and installment portfolio segments. (2) Included in non-performing loans table above. (3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
Troubled Debt Restructuring During the Period | Loans that have been classified as troubled debt restructurings during the three-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2018 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 1 24 24 Mortgage 1-4 family 3 609 609 Resort lending 1 115 114 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 1 15 15 Home equity - 2nd lien 1 20 21 Boat lending - - - Recreational vehicle lending - - - Other - - - Total 7 $ 783 $ 783 2017 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial - - - Mortgage 1-4 family 1 93 95 Resort lending - - - Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien - - - Home equity - 2nd lien 2 51 50 Boat lending - - - Recreational vehicle lending - - - Other 1 10 10 Total 4 $ 154 $ 155 Loans that have been classified as troubled debt restructurings during the nine-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2018 Commercial Income producing - real estate 1 $ 67 $ 67 Land, land development & construction-real estate - - - Commercial and industrial 6 611 611 Mortgage 1-4 family 7 903 889 Resort lending 1 115 114 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 6 203 205 Home equity - 2nd lien 3 113 114 Boat lending - - - Recreational vehicle lending - - - Other 2 76 73 Total 26 $ 2,088 $ 2,073 2017 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 12 786 786 Mortgage 1-4 family 3 142 144 Resort lending 1 189 189 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 2 34 37 Home equity - 2nd lien 7 300 301 Boat lending - - - Recreational vehicle lending - - - Other 1 10 10 Total 26 $ 1,461 $ 1,467 |
Loan Ratings by Loan Class | The following table summarizes loan ratings by loan class for our commercial loan segment: Commercial Non-watch 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) September 30, 2018 Income producing - real estate $ 374,965 $ 3,060 $ 208 $ - $ 378,233 Land, land development and construction - real estate 55,126 6,623 11 2,402 64,162 Commercial and industrial 634,763 27,174 10,515 380 672,832 Total $ 1,064,854 $ 36,857 $ 10,734 $ 2,782 $ 1,115,227 Accrued interest included in total $ 2,869 $ 146 $ 111 $ - $ 3,126 December 31, 2017 Income producing - real estate $ 288,869 $ 1,293 $ 304 $ 30 $ 290,496 Land, land development and construction - real estate 70,122 60 - 9 70,191 Commercial and industrial 463,570 28,351 2,345 607 494,873 Total $ 822,561 $ 29,704 $ 2,649 $ 646 $ 855,560 Accrued interest included in total $ 2,198 $ 94 $ 8 $ - $ 2,300 The following tables summarize credit scores by loan class for our mortgage and installment loan segments: Mortgage (1) 1-4 Family Resort Lending Home Equity 1st Lien Home Equity 2nd Lien Total (In thousands) September 30, 2018 800 and above $ 110,400 $ 12,423 $ 7,872 $ 12,318 $ 143,013 750-799 358,072 32,498 15,037 30,573 436,180 700-749 211,575 21,239 9,562 21,561 263,937 650-699 104,395 9,271 3,222 9,539 126,427 600-649 30,578 4,142 569 2,884 38,173 550-599 13,491 1,220 503 1,261 16,475 500-549 7,641 822 228 1,205 9,896 Under 500 1,702 84 86 190 2,062 Unknown 13,907 3,108 3,653 3,817 24,485 Total $ 851,761 $ 84,807 $ 40,732 $ 83,348 $ 1,060,648 Accrued interest included in total $ 3,161 $ 360 $ 206 $ 439 $ 4,166 December 31, 2017 800 and above $ 78,523 $ 11,625 $ 6,169 $ 7,842 $ 104,159 750-799 283,558 36,015 16,561 24,126 360,260 700-749 154,239 22,099 7,317 15,012 198,667 650-699 84,121 12,145 2,793 7,420 106,479 600-649 25,087 3,025 1,189 2,512 31,813 550-599 15,136 2,710 518 1,118 19,482 500-549 9,548 1,009 397 1,156 12,110 Under 500 2,549 269 260 385 3,463 Unknown 14,472 1,659 157 87 16,375 Total $ 667,233 $ 90,556 $ 35,361 $ 59,658 $ 852,808 Accrued interest included in total $ 2,456 $ 371 $ 157 $ 294 $ 3,278 (1) Other than for the TCSB Bancorp, Inc. ("TCSB") acquired loans, credit scores have been updated within the last twelve months. Installment(1) Home Equity 1st Lien Home Equity 2nd Lien Boat Lending Recreational Vehicle Lending Other Total (In thousands) September 30, 2018 800 and above $ 651 $ 264 $ 25,231 $ 22,621 $ 6,223 $ 54,990 750-799 1,899 1,519 95,664 72,298 32,094 203,474 700-749 1,471 1,806 36,743 22,996 23,917 86,933 650-699 1,608 1,627 8,760 4,093 10,002 26,090 600-649 1,174 1,065 2,064 778 2,504 7,585 550-599 1,065 850 410 334 961 3,620 500-549 305 132 340 76 433 1,286 Under 500 87 172 43 21 152 475 Unknown 32 145 903 66 9,479 10,625 Total $ 8,292 $ 7,580 $ 170,158 $ 123,283 $ 85,765 $ 395,078 Accrued interest included in total $ 33 $ 27 $ 431 $ 319 $ 273 $ 1,083 December 31, 2017 800 and above $ 815 $ 825 $ 15,531 $ 16,754 $ 7,060 $ 40,985 750-799 1,912 1,952 73,251 52,610 28,422 158,147 700-749 1,825 2,142 28,922 17,993 20,059 70,941 650-699 1,840 2,036 9,179 4,270 9,258 26,583 600-649 1,567 1,065 2,052 754 2,402 7,840 550-599 950 1,028 640 305 871 3,794 500-549 499 303 281 83 475 1,641 Under 500 32 88 57 6 194 377 Unknown 15 32 59 35 6,501 6,642 Total $ 9,455 $ 9,471 $ 129,972 $ 92,810 $ 75,242 $ 316,950 Accrued interest included in total $ 39 $ 43 $ 346 $ 254 $ 241 $ 923 (1) Other than for the TCSB acquired loans, credit scores have been updated within the last twelve months. |
Purchase Credit Impaired (PCI) Loans | For these loans that meet the criteria of ASC 310-30 treatment, the carrying amount was as follows: September 30, 2018 December 31, 2017 (In thousands) Commercial $ 1,653 $ - Mortgage 557 - Installment 355 - Total carrying amount 2,565 - Allowance for loan losses - - Carrying amount, net of allowance for loan losses $ 2,565 $ - Accretable yield of PCI loans, or income expected to be collected follows: Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 (unaudited) (unaudited) (In thousands) (In thousands) Balance at beginning of period $ 533 $ - $ - $ - New loans purchased - - 568 - Accretion of income (32 ) - (67 ) - Reclassification from (to) nonaccretable difference - - - - Displosals/other adjustments - - - - Balance at end of period $ 501 $ - $ 501 $ - PCI loans purchased during 2018 (all relating to the TCSB acquisition) for which it was probable at acquisition that all contractually required payments would not be collected follows: (In thousands) Contractually required payments $ 4,213 Non accretable difference (742 ) Cash flows expected to be collected at acquisition 3,471 Accretable yield (568 ) Fair value of acquired loans at acquisition $ 2,903 |
Shareholders' Equity and Earn_2
Shareholders' Equity and Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Shareholders' Equity and Earnings Per Common Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income Per Share | A reconciliation of basic and diluted net income per common share follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands, except per share data) Net income $ 11,925 $ 6,859 $ 29,903 $ 18,764 Weighted average shares outstanding (1) 24,149 21,334 23,218 21,325 Effect of stock options 182 138 180 144 Stock units for deferred compensation plan for non-employee directors 129 121 126 120 Performance share units 55 59 52 57 Weighted average shares outstanding for calculation of diluted earnings per share 24,515 21,652 23,576 21,646 Net income per common share Basic (1) $ 0.49 $ 0.32 $ 1.29 $ 0.88 Diluted $ 0.49 $ 0.32 $ 1.27 $ 0.87 (1) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments According to Type of Hedge Designation | Our derivative financial instruments according to the type of hedge in which they are designated follows: September 30, 2018 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Cash flow hedge designation Pay-fixed interest rate swap agreements $ 25,000 2.8 $ 581 Interest rate cap agreements 130,000 3.6 3,391 $ 155,000 3.5 $ 3,972 No hedge designation Rate-lock mortgage loan commitments $ 44,609 0.1 $ 884 Mandatory commitments to sell mortgage loans 65,633 0.1 182 Pay-fixed interest rate swap agreements - commercial 88,657 5.7 2,242 Pay-variable interest rate swap agreements - commercial 88,657 5.7 (2,242 ) Purchased options 3,119 2.8 178 Written options 3,119 2.8 (178 ) Total $ 293,794 3.5 $ 1,066 December 31, 2017 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) Cash flow hedge designation Pay-fixed interest rate swap agreements $ 15,000 3.7 $ 245 Interest rate cap agreements 45,000 3.5 976 $ 60,000 3.6 $ 1,221 No hedge designation Rate-lock mortgage loan commitments $ 25,032 0.1 $ 530 Mandatory commitments to sell mortgage loans 56,127 0.1 37 Pay-fixed interest rate swap agreements - commercial 75,990 6.2 292 Pay-variable interest rate swap agreements - commercial 75,990 6.2 (292 ) Purchased options 3,119 3.5 322 Written options 3,119 3.5 (322 ) Total $ 239,377 4.1 $ 567 |
Fair Value of Derivative Instruments | The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Condensed Consolidated Statements of Financial Condition for the periods presented: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives designated as hedging instruments Pay-fixed interest rate swap agreements Other assets $ 581 Other assets $ 245 Other $ - Other $ - Interest rate cap agreements Other 3,391 Other 976 Other - Other - 3,972 1,221 - - Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other 884 Other 530 Other - Other - Mandatory commitments to sell mortgage loans Other assets 182 Other 37 Other - Other - Pay-fixed interest rate swap agreements - commercial Other 2,380 Other 631 Other 138 Other 339 Pay-variable interest rate swap agreements - commercial Other 138 Other assets 339 Other 2,380 Other 631 Purchased options Other 178 Other 322 Other - Other - Written options Other - Other - Other 178 Other 322 3,762 1,859 2,696 1,292 Total derivatives $ 7,734 $ 3,080 $ 2,696 $ 1,292 |
Effect of Derivative Financial Instruments on Condensed Consolidated Statement of Operations | The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows: Three Month Periods Ended September 30, Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income (1) Gain Recognized in Income (1) 2018 2017 2018 2017 2018 2017 (In thousands) Cash Flow Hedges Interest rate cap agreements $ 297 $ - Interest $ 67 $ - Interest expense $ - $ - Pay-fixed interest rate swap agreements 92 95 Interest expense 6 (5 ) Interest 16 5 Total $ 389 $ 95 $ 73 $ (5 ) $ 16 $ 5 No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ (318 ) $ (313 ) Mandatory commitments to sell mortgage loans Net gains on mortgage loans 415 2 Pay-fixed interest rate swap agreements - commercial Interest income 407 52 Pay-variable interest rate swap agreements - commercial Interest (407 ) (52 ) Purchased options Interest (45 ) 5 Written options Interest 45 (5 ) Total $ 97 $ (311 ) (1) For cash flow hedges, this location and amount refers to the ineffective portion. Nine Month Periods Ended September 30, Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain Recognized in Income (1) Gain Recognized in Income (1) 2018 2017 2018 2017 2018 2017 (In thousands) Cash Flow Hedges Interest rate cap agreements $ 1,054 $ - Interest $ 119 $ - Interest $ - $ - Pay-fixed interest rate swap agreements 346 95 Interest 13 (5 ) Interest 4 5 Total $ 1,400 $ 95 $ 132 $ (5 ) $ 4 $ 5 No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ 354 $ 123 Mandatory sell mortgage loans Net gains on mortgage loans 145 (604 ) Pay-fixed interest rate swap agreements - commercial Interest 1,950 (197 ) Pay-variable interest rate swap agreements - commercial Interest income (1,950 ) 197 Purchased options Interest (144 ) 39 Written options Interest 144 (39 ) Total $ 499 $ (481 ) (1) For cash flow hedges, this location and amount refers to the ineffective portion. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Intangible Assets [Abstract] | |
Other Intangible Assets, Net of Amortization | The following table summarizes intangible assets, net of amortization: September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 11,916 $ 5,207 $ 6,118 $ 4,532 Unamortized intangible assets - goodwill $ 28,300 $ - |
Estimated Amortization of Other Intangible Assets | Amortization of other intangibles has been estimated through 2022 in the following table. (In thousands) Three months ending December 31, 2018 $ 293 2019 1,089 2020 1,020 2021 970 2022 785 2023 and thereafter 2,552 Total $ 6,709 |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the nine month period ending September 30, 2018 follows: (In thousands) Balance at beginning of year $ - Acquired during the year 28,300 Balance at end of the period $ 28,300 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Share Based Compensation [Abstract] | |
Outstanding Stock Option Grants and Transactions | A summary of outstanding stock option grants and related transactions follows: Number of Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1, 2018 176,055 $ 5.24 Issued for acquisition (see note #16) 187,915 9.94 Exercised (113,548 ) 9.18 Forfeited - Expired - Outstanding at September 30, 2018 250,422 $ 6.98 4.7 $ 4,174 Vested and expected to vest at September 30, 2018 250,422 $ 6.98 4.7 $ 4,174 Exercisable at September 30, 2018 250,422 $ 6.98 4.7 $ 4,174 |
Non-Vested Restricted Stock, Restricted Stock Units and PSU's | A summary of outstanding non-vested restricted stock and PSUs and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2018 290,527 $ 15.88 Granted 73,406 23.62 Vested (96,255 ) 13.17 Forfeited (8,259 ) 18.53 Outstanding at September 30, 2018 259,419 $ 19.00 |
Weighted-average Assumptions Used Black-Scholes Option Pricing Model | A summary of weighted-average assumptions used in the Black-Scholes option pricing model for the issue of stock options relating to the acquisition of TCSB (see note #16) during the second quarter of 2018 follows: Expected dividend yield 2.62 % Risk-free interest rate 2.40 Expected life (in years) 3.14 Expected volatility 45.99 % Per share weighted-average fair value $ 13.25 |
Information Regarding Options Exercised | Certain information regarding options exercised during the periods follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) Intrinsic value $ 153 $ 39 $ 1,827 $ 513 Cash proceeds received $ 58 $ 18 $ 1,042 $ 117 Tax benefit realized $ 32 $ 14 $ 384 $ 180 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Matters [Abstract] | |
Actual Capital Amounts and Ratios | Our actual capital amounts and ratios follow: Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) September 30, 2018 Total capital to risk-weighted assets Consolidated $ 373,748 14.57 % $ 205,173 8.00 % NA NA Independent Bank 337,905 13.18 205,044 8.00 $ 256,305 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 348,228 13.58 % $ 153,880 6.00 % NA NA Independent Bank 312,385 12.19 153,783 6.00 $ 205,044 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 310,081 12.09 % $ 115,410 4.50 % NA NA Independent Bank 312,385 12.19 115,337 4.50 $ 166,598 6.50 % Tier 1 capital to average assets Consolidated $ 348,228 10.84 % $ 128,543 4.00 % NA NA Independent Bank 312,385 9.73 128,376 4.00 $ 160,469 5.00 % December 31, 2017 Total capital to risk-weighted assets Consolidated $ 312,163 15.16 % $ 164,782 8.00 % NA NA Independent Bank 290,188 14.10 164,675 8.00 $ 205,843 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 288,451 14.00 % $ 123,586 6.00 % NA NA Independent Bank 266,476 12.95 123,506 6.00 $ 164,675 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 255,934 12.43 % $ 92,690 4.50 % NA NA Independent Bank 266,476 12.95 92,630 4.50 $ 133,798 6.50 % Tier 1 capital to average assets Consolidated $ 288,451 10.57 % $ 109,209 4.00 % NA NA Independent Bank 266,476 9.78 109,041 4.00 $ 136,301 5.00 % NA - Not applicable |
Regulatory Capital | The components of our regulatory capital are as follows: Consolidated Independent Bank September 30, 2018 December 31, 2017 September 30, 2018 December 31, 2017 (In thousands) Total shareholders' equity $ 345,204 $ 264,933 $ 343,351 $ 269,481 Add (deduct) Accumulated other comprehensive loss for regulatory purposes 4,092 201 4,092 201 Goodwill and other intangibles (35,009 ) (1,269 ) (35,009 ) (1,269 ) Disallowed deferred tax assets (4,206 ) (7,931 ) (49 ) (1,937 ) Common equity tier 1 capital 310,081 255,934 312,385 266,476 Qualifying trust preferred securities 38,147 34,500 - - Disallowed deferred tax assets - (1,983 ) - - Tier 1 capital 348,228 288,451 312,385 266,476 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 25,520 23,712 25,520 23,712 Total risk-based capital $ 373,748 $ 312,163 $ 337,905 $ 290,188 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows: Fair Value Measure- ments Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2018: Measured at Fair Value on a Recurring Basis Assets Equity securities at fair value $ 285 $ 285 $ - $ - Securities available for sale U.S. agency 20,423 - 20,423 - U.S. agency residential mortgage-backed 125,061 - 125,061 - U.S. agency commercial mortgage-backed 5,815 - 5,815 - Private label mortgage-backed 28,973 - 28,973 - Other asset backed 78,526 - 78,526 - Obligations of states and political subdivisions 139,654 - 139,654 - Corporate 34,570 - 34,570 - Trust preferred 1,925 - 1,925 - Foreign government 2,010 - 2,010 - Loans held for sale 41,325 - 41,325 - Capitalized mortgage loan servicing rights 23,151 - - 23,151 Derivatives (1) 7,734 - 7,734 - Liabilities Derivatives (2) 2,696 - 2,696 - Measured at Fair Value on a Non-recurring basis: Assets Impaired loans (3) Commercial Income producing - real estate 225 - - 225 Commercial and industrial 944 - - 944 Mortgage 1-4 family 334 - - 334 Resort lending 264 - - 264 Other real estate (4) Mortgage 1-4 family 94 - - 94 Resort lending 1 - - 1 (1) Included in accrued income and other assets (2) Included in accrued expenses and other liabilities (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. Fair Value Measure- ments Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2017: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 455 $ 455 $ - $ - Securities available for sale U.S. Treasury 898 898 - - U.S. agency 25,682 - 25,682 - U.S. agency residential mortgage-backed 137,918 - 137,918 - U.S. agency commercial mortgage-backed 9,760 - 9,760 - Private label mortgage-backed 29,109 - 29,109 - Other asset backed 93,898 - 93,898 - Obligations of states and political subdivisions 172,945 - 172,945 - Corporate 47,853 - 47,853 - Trust preferred 2,802 - 2,802 - Foreign government 2,060 - 2,060 - Loans held for sale 39,436 - 39,436 - Capitalized mortgage loan servicing rights 15,699 - - 15,699 Derivatives (1) 3,080 - 3,080 - Liabilities Derivatives (2) 1,292 - 1,292 - Measured at Fair Value on a Non-recurring basis: Assets Impaired loans (3) Commercial Income producing - real estate 274 - - 274 Land, land development & construction-real estate 9 - - 9 Commercial and industrial 1,051 - - 1,051 Mortgage 1-4 family 339 - - 339 Resort lending 207 - - 207 Other real estate (4) Mortgage 1-4 family 186 - - 186 Resort lending 65 - - 65 (1) Included in accrued income and other assets (2) Included in accrued expenses and other liabilities (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. |
Changes in Fair Value for Financial Assets | Changes in fair values for financial assets which we have elected the fair value option for the periods presented were as follows: Changes in Fair Values for the nine-Month Periods Ended September 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option Net Gains (Losses) on Assets Mortgage Loan Servicing, net Total Change in Fair Values Included in Current Period Earnings Securities Mortgage Loans (In thousands) 2018 Equity securities at fair value $ (170 ) $ - $ - $ (170 ) Loans held for sale - (120 ) - (120 ) Capitalized mortgage loan servicing rights - - 694 694 2017 Trading securities $ (63 ) $ - $ - $ (63 ) Loans held for sale - 713 - 713 Capitalized mortgage loan servicing rights - - (2,585 ) (2,585 ) |
Reconciliation for all Assets and (Liabilities) Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) follows: Capitalized Mortgage Loan Servicing Rights Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (In thousands) (In thousands) Beginning balance $ 21,848 $ 14,515 $ 15,699 $ - Change in accounting - - - 14,213 Beginning balance, as adjusted 21,848 14,515 15,699 14,213 Total gains (losses) realized and unrealized: Included in results of operations (198 ) (1,090 ) 694 (2,585 ) Included in other comprehensive income (loss) - - - - Purchases, issuances, settlements, maturities and calls 1,501 1,250 6,758 3,047 Transfers in and/or out of Level 3 - - - - Ending balance $ 23,151 $ 14,675 $ 23,151 $ 14,675 Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at September 30 $ (198 ) $ (1,090 ) $ 694 $ (2,585 ) |
Quantitative Information About Level 3 Fair Value Measurements Measured on a Recurring Basis and Non-recurring Basis | Quantitative information about our Level 3 fair value measurements measured on a recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) September 30, 2018 Capitalized mortgage loan servicing rights $ 23,151 Present value of net Discount rate 10.00% to 13.00 % 10.15 % servicing revenue Cost to service $ 68 to $317 $ 81 Ancillary income 20 to 36 22 Float rate 3.07 % 3.07 % December 31, 2017 Capitalized mortgage loan servicing rights $ 15,699 Present value of net Discount rate 9.88% to 11.00 % 10.11 % servicing revenue Cost to service $ 66 to $216 $ 81 Ancillary income 20 to 36 23 Float rate 2.24 % 2.24 % Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Range Weighted Average (In thousands) September 30, 2018 Impaired loans Commercial $ 1,169 Sales comparison approach Adjustment for differences between comparable sales (32.5)% to 25.0% (4.5 )% Mortgage 598 Sales comparison approach Adjustment for differences between comparable sales (40.1) to 30.4 (1.9 ) Other real estate Mortgage 95 Sales comparison approach Adjustment for differences between comparable sales 2.2 to 34.1 17.9 December 31, 2017 Impaired loans Commercial 1,334 Sales comparison approach Adjustment for differences between comparable sales (32.5)% to 25.0% (4.5 )% Mortgage 546 Sales comparison approach Adjustment for differences between comparable sales (21.1) to 34.1 (2.7 ) Other real estate Mortgage 251 Sales comparison approach Adjustment for differences between comparable sales (33.0) to 44.5 (1.0 ) |
Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance for Loans Held for Sale | The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected for the periods presented. Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale September 30, 2018 $ 41,325 $ 724 $ 40,601 December 31, 2017 39,436 844 38,592 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Values of Financial Instruments [Abstract] | |
Estimated Recorded Book Balances and Fair Values | The estimated recorded book balances and fair values follow: Recorded Book Balance Fair Value Fair Value Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2018 Assets Cash and due from banks $ 35,180 $ 35,180 $ 35,180 $ - $ - Interest bearing deposits 17,990 17,990 17,990 - - Interest bearing deposits - time 593 593 - 593 - Equity securities at fair value 285 285 285 - - Securities available for sale 436,957 436,957 - 436,957 - Federal Home Loan Bank and Federal 18,355 NA NA NA NA Net loans and loans held for sale 2,579,502 2,533,221 - 41,325 2,491,896 Accrued interest receivable 10,791 10,791 1 2,383 8,407 Derivative financial instruments 7,734 7,734 - 7,734 - Liabilities Deposits with no stated maturity (1) $ 2,143,552 $ 2,143,552 $ 2,143,552 $ - $ - Deposits with stated maturity (1) 655,091 649,709 - 649,709 - Other borrowings 79,688 79,275 - 79,275 - Subordinated debentures 39,371 36,888 - 36,888 - Accrued interest payable 1,463 1,463 110 1,353 - Derivative financial instruments 2,696 2,696 - 2,696 - December 31, 2017 Assets Cash and due from banks $ 36,994 $ 36,994 $ 36,994 $ - $ - Interest bearing deposits 17,744 17,744 17,744 - - Interest bearing deposits - time 2,739 2,740 - 2,740 - Trading securities 455 455 455 - - Securities available for sale 522,925 522,925 898 522,027 - Federal Home Loan Bank and Federal 15,543 NA NA NA NA Net loans and loans held for sale 2,035,666 1,962,937 - 39,436 1,923,501 Accrued interest receivable 8,609 8,609 1 2,192 6,416 Derivative financial instruments 3,080 3,080 - 3,080 - Liabilities Deposits with no stated maturity (1) $ 1,845,716 $ 1,845,716 $ 1,845,716 $ - $ - Deposits with stated maturity (1) 554,818 551,489 - 551,489 - Other borrowings 54,600 54,918 - 54,918 - Subordinated debentures 35,569 29,946 - 29,946 - Accrued interest payable 892 892 48 844 - Derivative financial instruments 1,292 1,292 - 1,292 - (1) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $44.681 million and $12.992 million at September 30, 2018 and December 31, 2017, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $ million and $37.987 million September 30, 2018 and December 31, 2017, respectively. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss ("AOCL") (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Loss ("AOCL") [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL), Net of Tax | A summary of changes in AOCL follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Gains on Cash Flow Hedges Total (In thousands) For the three months ended September 30, 2018 Balances at beginning of period $ (4,437 ) $ (5,798 ) $ 1,021 $ (9,214 ) Other comprehensive income (loss) before reclassifications (925 ) - 307 (618 ) Amounts reclassified from AOCL - - (57 ) (57 ) Net current period other comprehensive income (loss) (925 ) - 250 (675 ) Balances at end of period $ (5,362 ) $ (5,798 ) $ 1,271 $ (9,889 ) 2017 Balances at beginning of period $ 1,986 $ (5,798 ) $ - $ (3,812 ) Other comprehensive income before reclassifications 95 - 62 157 Amounts reclassified from AOCL (5 ) - 3 (2 ) Net current period other comprehensive income 90 - 65 155 Balances at end of period $ 2,076 $ (5,798 ) $ 65 $ (3,657 ) For the nine months ended September 30, 2018 Balances at beginning of period $ (470 ) $ (5,798 ) $ 269 $ (5,999 ) Other comprehensive income (loss) before reclassifications (4,928 ) - 1,106 (3,822 ) Amounts reclassified from AOCL 36 - (104 ) (68 ) Net current period other comprehensive income (loss) (4,892 ) - 1,002 (3,890 ) Balances at end of period $ (5,362 ) $ (5,798 ) $ 1,271 $ (9,889 ) 2017 Balances at beginning of period $ (3,310 ) $ (5,798 ) $ - $ (9,108 ) Cumulative effect of change in accounting 300 - - 300 Balances at beginning of period, as adjusted (3,010 ) (5,798 ) - (8,808 ) Other comprehensive income before reclassifications 5,167 - 62 5,229 Amounts reclassified from AOCL (81 ) - 3 (78 ) Net current period other comprehensive income 5,086 - 65 5,151 Balances at end of period $ 2,076 $ (5,798 ) $ 65 $ (3,657 ) |
Reclassifications Out of Each Component of AOCL | A summary of reclassifications out of each component of AOCL for the three months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2018 Unrealized losses on securities $ - Net gains (losses) on securities - Net impairment loss recognized in earnings - Total reclassifications before tax - Income tax expense $ - Reclassifications, net of tax Unrealized gains on cash flow hedges $ (73 ) Interest expense (16 ) Income tax expense $ (57 ) Reclassification, net of tax $ 57 Total reclassifications for the period, net of tax 2017 Unrealized gains on securities available for sale $ 8 Net gains (losses) on securities - Net impairment loss recognized in earnings 8 Total reclassifications before tax 3 Income tax expense $ 5 Reclassifications, net of tax Unrealized gains on cash flow hedges $ (5 ) Interest expense (2 ) Income tax expense $ (3 ) Reclassification, net of tax $ 2 Total reclassifications for the period, net of tax A summary of reclassifications out of each component of AOCL for the nine months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2018 Unrealized losses on securities available for sale $ (45 ) Net gains (losses) on securities - Net impairment loss recognized in earnings (45 ) Total reclassifications before tax (9 ) Income tax expense $ (36 ) Reclassifications, net of tax Unrealized gains on cash flow hedges $ (132 ) Interest expense (28 ) Income tax expense $ (104 ) Reclassification, net of tax $ 68 Total reclassifications for the period, net of tax 2017 Unrealized gains on securities available for sale $ 125 Net gains (losses) on securities - Net impairment loss recognized in earnings 125 Total reclassifications before tax 44 Income tax expense $ 81 Reclassifications, net of tax Unrealized gains on cash flow hedges $ (5 ) Interest expense (2 ) Income tax expense $ (3 ) Reclassification, net of tax $ 78 Total reclassifications for the period, net of tax |
Recent Acquisition (Tables)
Recent Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Recent Acquisition [Abstract] | |
Preliminary Valuation of Assets Acquired and Liabilities Assumed | The following table reflects our preliminary valuation of the assets acquired and liabilities assumed: (In thousands) Cash and cash equivalents $ 23,521 Interest bearing deposits - time 4,054 Securities available for sale 6,066 Federal Home Loan Bank stock 778 Loans, net 295,799 Property and equipement, net 1,067 Capitalized mortgage loan servicing rights 3,047 Accrued income and other assets 3,362 Other intangibles (1) 5,798 Total assets acquired 343,492 Deposits 287,710 Other borrowings 14,345 Subordinated debentures 3,768 Accrued expenses and other liabilities 1,429 Total liabilities assumed 307,252 Net assets acquired 36,240 Goodwill 28,300 Purchase price (fair value of consideration) $ 64,540 (1) Relates to core deposit intangibles (see note #7). |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contracts with Customers [Abstract] | |
Disaggregation of Revenue Sources by Attribute | Disaggregation of our revenue sources by attribute for the three months ending September 30, 2018 follows: Service Charges on Deposits Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 2,161 $ 2,161 Account service charges 519 519 ATM fees $ 374 374 Other 219 219 Business Overdraft fees 408 408 Account service charges 78 78 ATM fees 10 10 Other 124 124 Interchange income $ 2,486 2,486 Asset management revenue $ 274 274 Transaction based revenue 239 239 Total $ 3,166 $ 727 $ 2,486 $ 513 $ 6,892 Reconciliation to Condensed Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 727 Investment and insurance commissions 513 Bank owned life insurance 237 Other 657 Total $ 2,134 Disaggregation of our revenue sources by attribute for the nine months ending September 30, 2018 follows: Service Charges on Deposits Other Deposit Related Income Interchange Income Investment and Insurance Commissions Total (In thousands) Retail Overdraft fees $ 6,177 $ 6,177 Account service charges 1,607 1,607 ATM fees $ 1,077 1,077 Other 656 656 Business Overdraft fees 1,153 1,153 Account service charges 229 229 ATM fees 26 26 Other 399 399 Interchange income $ 7,236 7,236 Asset management revenue $ 826 826 Transaction based revenue 608 608 Total $ 9,166 $ 2,158 $ 7,236 $ 1,434 $ 19,994 Reconciliation to Condensed Consolidated Statement of Operations: Non-interest income - other: Other deposit related income $ 2,158 Investment and insurance commissions 1,434 Bank owned life insurance 713 Other 1,989 Total $ 6,294 |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | ||
New Accounting Standards [Abstract] | ||||
Non-interest income | $ 6,892 | $ 19,994 | ||
Interchange Income [Member] | ||||
New Accounting Standards [Abstract] | ||||
Non-interest income | 2,486 | 7,236 | ||
Interchange Expense [Member] | ||||
New Accounting Standards [Abstract] | ||||
Non-interest expense | 715 | 1,974 | ||
ASU 2018-02 [Member] | ||||
New Accounting Standards [Abstract] | ||||
Reclassification of certain deferred tax effects | $ 40 | |||
Under Legacy GAAP [Member] | Interchange Income [Member] | ||||
New Accounting Standards [Abstract] | ||||
Non-interest income | 2,088 | 6,170 | ||
Under Legacy GAAP [Member] | Interchange Expense [Member] | ||||
New Accounting Standards [Abstract] | ||||
Non-interest expense | 317 | 908 | ||
Impact [Member] | ||||
New Accounting Standards [Abstract] | ||||
Impact on net income | 0 | 0 | ||
Impact [Member] | ASU 2014-09 [Member] | Interchange Income [Member] | ||||
New Accounting Standards [Abstract] | ||||
Non-interest income | [1] | 398 | 1,066 | |
Impact [Member] | ASU 2014-09 [Member] | Interchange Expense [Member] | ||||
New Accounting Standards [Abstract] | ||||
Non-interest expense | [1] | $ 398 | $ 1,066 | |
[1] | Represents certain costs charged by payment networks that were previously netted against interchange income. |
Securities (Details)
Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Security | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | $ 443,744 | $ 443,744 | $ 523,520 | ||
Unrealized Gains | 1,602 | 1,602 | 3,197 | ||
Unrealized Losses | 8,389 | 8,389 | 3,792 | ||
Fair Value | 436,957 | 436,957 | 522,925 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 163,283 | 163,283 | 153,090 | ||
Less Than Twelve Months, Unrealized Losses | 2,921 | 2,921 | 1,400 | ||
Twelve Months or More, Fair Value | 139,602 | 139,602 | 108,033 | ||
Twelve Months or More, Unrealized Losses | 5,468 | 5,468 | 2,392 | ||
Total, Fair Value | 302,885 | 302,885 | 261,123 | ||
Total, Unrealized Losses | 8,389 | 8,389 | 3,792 | ||
Credit related OTTI recognized in earnings | 0 | $ 0 | 0 | $ 0 | |
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||||
Fair value | 1,682 | 1,682 | |||
Amortized cost | 1,331 | 1,331 | |||
Non-credit unrealized loss | 0 | 0 | |||
Unrealized gain | 351 | 351 | |||
Cumulative credit related OTTI | 1,594 | 1,594 | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||||
Balance at beginning of period | 1,594 | 1,594 | 1,594 | 1,594 | |
Additions to credit losses on securities for which no previous OTTI was recognized | 0 | 0 | 0 | 0 | |
Increases to credit losses on securities for which OTTI was previously recognized | 0 | 0 | 0 | 0 | |
Balance at end of period | 1,594 | $ 1,594 | 1,594 | $ 1,594 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Maturing within one year | 14,513 | 14,513 | |||
Maturing after one year but within five years | 79,683 | 79,683 | |||
Maturing after five years but within ten years | 62,609 | 62,609 | |||
Maturing after ten years | 46,142 | 46,142 | |||
Available-for-sale securities, debt maturities, amortized cost basis | 202,947 | 202,947 | |||
U.S. agency residential mortgage-backed | 126,851 | 126,851 | |||
U.S. agency commercial mortgage-backed | 6,039 | 6,039 | |||
Private label mortgage-backed | 29,340 | 29,340 | |||
Other asset backed | 78,567 | 78,567 | |||
Amortized Cost | 443,744 | 443,744 | 523,520 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Maturing within one year | 14,494 | 14,494 | |||
Maturing after one year but within five years | 78,634 | 78,634 | |||
Maturing after five years but within ten years | 60,979 | 60,979 | |||
Maturing after ten years | 44,475 | 44,475 | |||
Total available-for-sale securities fair value | 198,582 | 198,582 | |||
U.S. agency residential mortgage-backed | 125,061 | 125,061 | |||
U.S. agency commercial mortgage-backed | 5,815 | 5,815 | |||
Private label mortgage-backed | 28,973 | 28,973 | |||
Other asset backed | 78,526 | 78,526 | |||
Total | 436,957 | 436,957 | 522,925 | ||
U.S. Treasury [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 898 | ||||
Unrealized Gains | 0 | ||||
Unrealized Losses | 0 | ||||
Fair Value | 898 | ||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | 898 | ||||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 898 | ||||
U.S. Agency [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 20,769 | 20,769 | 25,667 | ||
Unrealized Gains | 0 | 0 | 82 | ||
Unrealized Losses | 346 | 346 | 67 | ||
Fair Value | 20,423 | 20,423 | 25,682 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 11,938 | 11,938 | 5,466 | ||
Less Than Twelve Months, Unrealized Losses | 239 | 239 | 26 | ||
Twelve Months or More, Fair Value | 8,485 | 8,485 | 5,735 | ||
Twelve Months or More, Unrealized Losses | 107 | 107 | 41 | ||
Total, Fair Value | 20,423 | 20,423 | 11,201 | ||
Total, Unrealized Losses | $ 346 | $ 346 | 67 | ||
Number of securities with market fair value less than amortized cost | Security | 51 | 51 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 20,769 | $ 20,769 | 25,667 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 20,423 | 20,423 | 25,682 | ||
U.S. Agency Residential Mortgage-Backed [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 126,851 | 126,851 | 137,785 | ||
Unrealized Gains | 802 | 802 | 1,116 | ||
Unrealized Losses | 2,592 | 2,592 | 983 | ||
Fair Value | 125,061 | 125,061 | 137,918 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 28,672 | 28,672 | 22,198 | ||
Less Than Twelve Months, Unrealized Losses | 765 | 765 | 229 | ||
Twelve Months or More, Fair Value | 40,857 | 40,857 | 40,698 | ||
Twelve Months or More, Unrealized Losses | 1,827 | 1,827 | 754 | ||
Total, Fair Value | 69,529 | 69,529 | 62,896 | ||
Total, Unrealized Losses | $ 2,592 | $ 2,592 | 983 | ||
Number of securities with market fair value less than amortized cost | Security | 133 | 133 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 126,851 | $ 126,851 | 137,785 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 125,061 | 125,061 | 137,918 | ||
U.S. Agency Commercial Mortgage-Backed [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 6,039 | 6,039 | 9,894 | ||
Unrealized Gains | 0 | 0 | 36 | ||
Unrealized Losses | 224 | 224 | 170 | ||
Fair Value | 5,815 | 5,815 | 9,760 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 1,358 | 1,358 | 2,181 | ||
Less Than Twelve Months, Unrealized Losses | 12 | 12 | 34 | ||
Twelve Months or More, Fair Value | 4,391 | 4,391 | 3,994 | ||
Twelve Months or More, Unrealized Losses | 212 | 212 | 136 | ||
Total, Fair Value | 5,749 | 5,749 | 6,175 | ||
Total, Unrealized Losses | $ 224 | $ 224 | 170 | ||
Number of securities with market fair value less than amortized cost | Security | 15 | 15 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 6,039 | $ 6,039 | 9,894 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 5,815 | 5,815 | 9,760 | ||
Private Label Mortgage-Backed [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 29,340 | 29,340 | 29,011 | ||
Unrealized Gains | 369 | 369 | 428 | ||
Unrealized Losses | 736 | 736 | 330 | ||
Fair Value | 28,973 | 28,973 | 29,109 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 10,209 | 10,209 | 11,390 | ||
Less Than Twelve Months, Unrealized Losses | 295 | 295 | 92 | ||
Twelve Months or More, Fair Value | 8,473 | 8,473 | 4,396 | ||
Twelve Months or More, Unrealized Losses | 441 | 441 | 238 | ||
Total, Fair Value | 18,682 | 18,682 | 15,786 | ||
Total, Unrealized Losses | $ 736 | $ 736 | 330 | ||
Number of securities with market fair value less than amortized cost | Security | 27 | 27 | |||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||||
Number of private label mortgage backed securities complete recovery of cost basis | Security | 2 | 2 | |||
Number of private label mortgage backed securities currently with OTTI unrealized gains | Security | 3 | 3 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 29,340 | $ 29,340 | 29,011 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 28,973 | 28,973 | 29,109 | ||
Senior Security [Member] | |||||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||||
Fair value | 842 | 842 | |||
Amortized cost | 698 | 698 | |||
Non-credit unrealized loss | 0 | 0 | |||
Unrealized gain | 144 | 144 | |||
Cumulative credit related OTTI | 757 | 757 | |||
Super Senior Security [Member] | |||||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||||
Fair value | 808 | 808 | |||
Amortized cost | 633 | 633 | |||
Non-credit unrealized loss | 0 | 0 | |||
Unrealized gain | 175 | 175 | |||
Cumulative credit related OTTI | 457 | 457 | |||
Senior Support Security [Member] | |||||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||||
Fair value | 32 | 32 | |||
Amortized cost | 0 | 0 | |||
Non-credit unrealized loss | 0 | 0 | |||
Unrealized gain | 32 | 32 | |||
Cumulative credit related OTTI | 380 | 380 | |||
Other Asset Backed [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 78,567 | 78,567 | 93,811 | ||
Unrealized Gains | 147 | 147 | 202 | ||
Unrealized Losses | 188 | 188 | 115 | ||
Fair Value | 78,526 | 78,526 | 93,898 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 30,663 | 30,663 | 20,352 | ||
Less Than Twelve Months, Unrealized Losses | 92 | 92 | 40 | ||
Twelve Months or More, Fair Value | 11,226 | 11,226 | 16,648 | ||
Twelve Months or More, Unrealized Losses | 96 | 96 | 75 | ||
Total, Fair Value | 41,889 | 41,889 | 37,000 | ||
Total, Unrealized Losses | $ 188 | $ 188 | 115 | ||
Number of securities with market fair value less than amortized cost | Security | 72 | 72 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 78,567 | $ 78,567 | 93,811 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 78,526 | 78,526 | 93,898 | ||
Obligations of States and Political Subdivisions [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 143,138 | 143,138 | 174,073 | ||
Unrealized Gains | 219 | 219 | 755 | ||
Unrealized Losses | 3,703 | 3,703 | 1,883 | ||
Fair Value | 139,654 | 139,654 | 172,945 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 59,590 | 59,590 | 76,574 | ||
Less Than Twelve Months, Unrealized Losses | 1,157 | 1,157 | 936 | ||
Twelve Months or More, Fair Value | 57,509 | 57,509 | 28,246 | ||
Twelve Months or More, Unrealized Losses | 2,546 | 2,546 | 947 | ||
Total, Fair Value | 117,099 | 117,099 | 104,820 | ||
Total, Unrealized Losses | $ 3,703 | $ 3,703 | 1,883 | ||
Number of securities with market fair value less than amortized cost | Security | 393 | 393 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 143,138 | $ 143,138 | 174,073 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 139,654 | 139,654 | 172,945 | ||
Corporate [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 35,017 | 35,017 | 47,365 | ||
Unrealized Gains | 65 | 65 | 578 | ||
Unrealized Losses | 512 | 512 | 90 | ||
Fair Value | 34,570 | 34,570 | 47,853 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 20,853 | 20,853 | 14,440 | ||
Less Than Twelve Months, Unrealized Losses | 361 | 361 | 33 | ||
Twelve Months or More, Fair Value | 5,726 | 5,726 | 3,943 | ||
Twelve Months or More, Unrealized Losses | 151 | 151 | 57 | ||
Total, Fair Value | 26,579 | 26,579 | 18,383 | ||
Total, Unrealized Losses | $ 512 | $ 512 | 90 | ||
Number of securities with market fair value less than amortized cost | Security | 32 | 32 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 35,017 | $ 35,017 | 47,365 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 34,570 | 34,570 | 47,853 | ||
Trust Preferred [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 1,963 | 1,963 | 2,929 | ||
Unrealized Gains | 0 | 0 | 0 | ||
Unrealized Losses | 38 | 38 | 127 | ||
Fair Value | 1,925 | 1,925 | 2,802 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 0 | 0 | 0 | ||
Less Than Twelve Months, Unrealized Losses | 0 | 0 | 0 | ||
Twelve Months or More, Fair Value | 925 | 925 | 2,802 | ||
Twelve Months or More, Unrealized Losses | 38 | 38 | 127 | ||
Total, Fair Value | 925 | 925 | 2,802 | ||
Total, Unrealized Losses | $ 38 | $ 38 | 127 | ||
Number of securities with market fair value less than amortized cost | Security | 1 | 1 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 1,963 | $ 1,963 | 2,929 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | 1,925 | 1,925 | 2,802 | ||
Foreign Government [Member] | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||
Amortized Cost | 2,060 | 2,060 | 2,087 | ||
Unrealized Gains | 0 | 0 | 0 | ||
Unrealized Losses | 50 | 50 | 27 | ||
Fair Value | 2,010 | 2,010 | 2,060 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Less Than Twelve Months, Fair Value | 0 | 0 | 489 | ||
Less Than Twelve Months, Unrealized Losses | 0 | 0 | 10 | ||
Twelve Months or More, Fair Value | 2,010 | 2,010 | 1,571 | ||
Twelve Months or More, Unrealized Losses | 50 | 50 | 17 | ||
Total, Fair Value | 2,010 | 2,010 | 2,060 | ||
Total, Unrealized Losses | $ 50 | $ 50 | 27 | ||
Number of securities with market fair value less than amortized cost | Security | 2 | 2 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||
Amortized Cost | $ 2,060 | $ 2,060 | 2,087 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||
Total | $ 2,010 | $ 2,010 | $ 2,060 |
Securities, Gains and Losses Re
Securities, Gains and Losses Realized on Sale of Securities Available for Sale (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | |||
Gain and losses realized on sale of securities available for sale [Abstract] | ||||
Proceeds | $ 31,445 | $ 9,594 | [1] | |
Realized gains | 81 | [2] | 125 | |
Realized losses | 126 | 0 | ||
Sale of securities available for sale not yet settled | 0 | 760 | ||
Trading securities, realized losses | (170) | $ (63) | ||
VISA Class B Shares [Member] | ||||
Gain and losses realized on sale of securities available for sale [Abstract] | ||||
Realized gains | $ 144 | |||
Number securities sold (in shares) | 1,000 | |||
[1] | 2017 includes $0.760 million for trades that did not settle until after September 30, 2017. | |||
[2] | 2018 excludes a $0.144 million gain on the sale of 1,000 VISA Class B shares. |
Loans, Allowance for Loan Losse
Loans, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||||
Balance at beginning of period | $ 23,504 | $ 20,586 | $ 22,587 | $ 20,234 | ||
Additions (deductions) [Abstract] | ||||||
Provision for loan losses | (53) | 582 | 912 | 806 | ||
Recoveries credited to the allowance | 1,908 | 1,212 | 3,768 | 2,998 | ||
Loans charged against the allowance | (958) | (902) | (2,866) | (2,560) | ||
Balance at end of period | 24,401 | 21,478 | 24,401 | 21,478 | ||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 6,102 | 6,102 | $ 6,839 | |||
Collectively evaluated for impairment | 18,299 | 18,299 | 15,748 | |||
Total ending allowance balance | 24,401 | 24,401 | 22,587 | |||
Loans [Abstract] | ||||||
Individually evaluated for impairment | 62,159 | 62,159 | 65,544 | |||
Collectively evaluated for impairment | 2,506,229 | 2,506,229 | 1,959,774 | |||
Total loans recorded investment | 2,570,953 | 2,570,953 | 2,025,318 | |||
Accrued interest included in recorded investment | 8,375 | 8,375 | 6,501 | |||
Total loans | 2,562,578 | 2,562,578 | 2,018,817 | |||
Loans Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 2,565 | 2,565 | ||||
Commercial [Member] | ||||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||||
Balance at beginning of period | 6,073 | 5,100 | 5,595 | 4,880 | ||
Additions (deductions) [Abstract] | ||||||
Provision for loan losses | (907) | (97) | (1,404) | (197) | ||
Recoveries credited to the allowance | 1,418 | 340 | 2,458 | 946 | ||
Loans charged against the allowance | (225) | (92) | (290) | (378) | ||
Balance at end of period | 6,359 | 5,251 | 6,359 | 5,251 | ||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 727 | 727 | 837 | |||
Collectively evaluated for impairment | 5,632 | 5,632 | 4,758 | |||
Total ending allowance balance | 6,359 | 6,359 | 5,595 | |||
Loans [Abstract] | ||||||
Individually evaluated for impairment | 9,714 | 9,714 | 8,420 | |||
Collectively evaluated for impairment | 1,103,860 | 1,103,860 | 847,140 | |||
Total loans recorded investment | 1,115,227 | 1,115,227 | 855,560 | |||
Accrued interest included in recorded investment | 3,126 | 3,126 | 2,300 | |||
Total loans | 1,112,101 | 1,112,101 | 853,260 | |||
Commercial [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 1,653 | 1,653 | ||||
Mortgage [Member] | ||||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||||
Balance at beginning of period | 8,296 | 8,145 | 8,733 | 8,681 | ||
Additions (deductions) [Abstract] | ||||||
Provision for loan losses | 415 | 68 | 778 | (593) | ||
Recoveries credited to the allowance | 192 | 587 | 549 | 1,264 | ||
Loans charged against the allowance | (448) | (471) | (1,605) | (1,023) | ||
Balance at end of period | 8,455 | 8,329 | 8,455 | 8,329 | ||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 5,155 | 5,155 | 5,725 | |||
Collectively evaluated for impairment | 3,300 | 3,300 | 3,008 | |||
Total ending allowance balance | 8,455 | 8,455 | 8,733 | |||
Loans [Abstract] | ||||||
Individually evaluated for impairment | 48,815 | 48,815 | 53,179 | |||
Collectively evaluated for impairment | 1,011,276 | 1,011,276 | 799,629 | |||
Total loans recorded investment | 1,060,648 | 1,060,648 | 852,808 | |||
Accrued interest included in recorded investment | [1] | 4,166 | 4,166 | 3,278 | ||
Total loans | 1,056,482 | 1,056,482 | 849,530 | |||
Mortgage [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 557 | 557 | ||||
Installment [Member] | ||||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||||
Balance at beginning of period | 848 | 900 | 864 | 1,011 | ||
Additions (deductions) [Abstract] | ||||||
Provision for loan losses | (25) | (33) | 182 | 173 | ||
Recoveries credited to the allowance | 298 | 285 | 761 | 788 | ||
Loans charged against the allowance | (285) | (339) | (971) | (1,159) | ||
Balance at end of period | 836 | 813 | 836 | 813 | ||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 220 | 220 | 277 | |||
Collectively evaluated for impairment | 616 | 616 | 587 | |||
Total ending allowance balance | 836 | 836 | 864 | |||
Loans [Abstract] | ||||||
Individually evaluated for impairment | 3,630 | 3,630 | 3,945 | |||
Collectively evaluated for impairment | 391,093 | 391,093 | 313,005 | |||
Total loans recorded investment | 395,078 | 395,078 | 316,950 | |||
Accrued interest included in recorded investment | [2] | 1,083 | 1,083 | 923 | ||
Total loans | 393,995 | 393,995 | 316,027 | |||
Installment [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans [Abstract] | ||||||
Loans acquired with deteriorated credit quality | 355 | 355 | ||||
Subjective Allocation [Member] | ||||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||||
Balance at beginning of period | 8,287 | 6,441 | 7,395 | 5,662 | ||
Additions (deductions) [Abstract] | ||||||
Provision for loan losses | 464 | 644 | 1,356 | 1,423 | ||
Recoveries credited to the allowance | 0 | 0 | 0 | 0 | ||
Loans charged against the allowance | 0 | 0 | 0 | 0 | ||
Balance at end of period | 8,751 | $ 7,085 | 8,751 | $ 7,085 | ||
Allowance for loan losses [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 8,751 | 8,751 | 7,395 | |||
Total ending allowance balance | 8,751 | 8,751 | $ 7,395 | |||
Subjective Allocation [Member] | Loans Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses [Abstract] | ||||||
Loans acquired with deteriorated credit quality | $ 0 | $ 0 | ||||
[1] | Other than for the TCSB Bancorp, Inc. ("TCSB") acquired loans, credit scores have been updated within the last twelve months. | |||||
[2] | Other than for the TCSB acquired loans, credit scores have been updated within the last twelve months. |
Loans, Receivables Past Due (De
Loans, Receivables Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Non performing loans [Abstract] | |||
90+ and Still Accruing | $ 0 | $ 0 | |
Non-Accrual | 9,343 | 8,184 | |
Total Non-performing Loans | 9,343 | 8,184 | |
Accrued interest included in recorded investment | 0 | 0 | |
Aging analysis of loans by class [Abstract] | |||
Total | 15,151 | 12,554 | |
Loans not Past Due | 2,555,802 | 2,012,764 | |
Total loans recorded investment | 2,570,953 | 2,025,318 | |
Accrued interest included in recorded investment | 8,375 | 6,501 | |
Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 4,709 | 3,671 | |
Accrued interest included in recorded investment | 53 | 43 | |
Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 1,243 | 1,271 | |
Accrued interest included in recorded investment | 21 | 22 | |
Loans Past Due, 90+ days [Member] | |||
Non performing loans [Abstract] | |||
Accrued interest included in recorded investment | 0 | 0 | |
Aging analysis of loans by class [Abstract] | |||
Total | 9,199 | 7,612 | |
Accrued interest included in recorded investment | 0 | 0 | |
Loans Past Due Total [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Accrued interest included in recorded investment | 74 | 65 | |
Loans Not Past Due [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Accrued interest included in recorded investment | 8,301 | 6,436 | |
Commercial [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 1,115,227 | 855,560 | |
Accrued interest included in recorded investment | 3,126 | 2,300 | |
Commercial [Member] | Income Producing - Real Estate [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 0 | 30 | |
Total Non-performing Loans | 0 | 30 | |
Aging analysis of loans by class [Abstract] | |||
Total | 32 | 30 | |
Loans not Past Due | 378,201 | 290,466 | |
Total loans recorded investment | 378,233 | 290,496 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 0 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 32 | 0 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 30 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 2,402 | 9 | |
Total Non-performing Loans | 2,402 | 9 | |
Aging analysis of loans by class [Abstract] | |||
Total | 2,402 | 9 | |
Loans not Past Due | 61,760 | 70,182 | |
Total loans recorded investment | 64,162 | 70,191 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 9 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 0 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 2,402 | 0 | |
Commercial [Member] | Commercial and Industrial [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 380 | 607 | |
Total Non-performing Loans | 380 | 607 | |
Aging analysis of loans by class [Abstract] | |||
Total | 957 | 104 | |
Loans not Past Due | 671,875 | 494,769 | |
Total loans recorded investment | 672,832 | 494,873 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 881 | 60 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 25 | 0 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 51 | 44 | |
Mortgage [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 1,060,648 | 852,808 | |
Accrued interest included in recorded investment | [1] | 4,166 | 3,278 |
Mortgage [Member] | 1-4 Family [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 4,159 | 5,130 | |
Total Non-performing Loans | 4,159 | 5,130 | |
Aging analysis of loans by class [Abstract] | |||
Total | 7,177 | 7,491 | |
Loans not Past Due | 844,584 | 659,742 | |
Total loans recorded investment | 851,761 | 667,233 | |
Accrued interest included in recorded investment | [1] | 3,161 | 2,456 |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 2,146 | 1,559 | |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 687 | 802 | |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 4,344 | 5,130 | |
Mortgage [Member] | Resort Lending [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 969 | 1,223 | |
Total Non-performing Loans | 969 | 1,223 | |
Aging analysis of loans by class [Abstract] | |||
Total | 1,387 | 1,936 | |
Loans not Past Due | 83,420 | 88,620 | |
Total loans recorded investment | 84,807 | 90,556 | |
Accrued interest included in recorded investment | [1] | 360 | 371 |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 418 | 713 | |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 0 | |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 969 | 1,223 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 324 | 326 | |
Total Non-performing Loans | 324 | 326 | |
Aging analysis of loans by class [Abstract] | |||
Total | 420 | 672 | |
Loans not Past Due | 40,312 | 34,689 | |
Total loans recorded investment | 40,732 | 35,361 | |
Accrued interest included in recorded investment | [1] | 206 | 157 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 81 | 308 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 15 | 38 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 324 | 326 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 353 | 316 | |
Total Non-performing Loans | 353 | 316 | |
Aging analysis of loans by class [Abstract] | |||
Total | 926 | 824 | |
Loans not Past Due | 82,422 | 58,834 | |
Total loans recorded investment | 83,348 | 59,658 | |
Accrued interest included in recorded investment | [1] | 439 | 294 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 364 | 353 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 209 | 155 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 353 | 316 | |
Installment [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 395,078 | 316,950 | |
Accrued interest included in recorded investment | [2] | 1,083 | 923 |
Installment [Member] | Home Equity - 1st Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 225 | 141 | |
Total Non-performing Loans | 225 | 141 | |
Aging analysis of loans by class [Abstract] | |||
Total | 554 | 242 | |
Loans not Past Due | 7,738 | 9,213 | |
Total loans recorded investment | 8,292 | 9,455 | |
Accrued interest included in recorded investment | [2] | 33 | 39 |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 285 | 90 | |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 44 | 11 | |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 225 | 141 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 246 | 159 | |
Total Non-performing Loans | 246 | 159 | |
Aging analysis of loans by class [Abstract] | |||
Total | 481 | 470 | |
Loans not Past Due | 7,099 | 9,001 | |
Total loans recorded investment | 7,580 | 9,471 | |
Accrued interest included in recorded investment | [2] | 27 | 43 |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 190 | 217 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 45 | 94 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 246 | 159 | |
Installment [Member] | Boat Lending [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 64 | 100 | |
Total Non-performing Loans | 64 | 100 | |
Aging analysis of loans by class [Abstract] | |||
Total | 233 | 195 | |
Loans not Past Due | 169,925 | 129,777 | |
Total loans recorded investment | 170,158 | 129,972 | |
Accrued interest included in recorded investment | [2] | 431 | 346 |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 153 | 59 | |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 16 | 36 | |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 64 | 100 | |
Installment [Member] | Recreational Vehicle Lending [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 8 | 25 | |
Total Non-performing Loans | 8 | 25 | |
Aging analysis of loans by class [Abstract] | |||
Total | 84 | 73 | |
Loans not Past Due | 123,199 | 92,737 | |
Total loans recorded investment | 123,283 | 92,810 | |
Accrued interest included in recorded investment | [2] | 319 | 254 |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 46 | 28 | |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 30 | 20 | |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 8 | 25 | |
Installment [Member] | Other [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 213 | 118 | |
Total Non-performing Loans | 213 | 118 | |
Aging analysis of loans by class [Abstract] | |||
Total | 498 | 508 | |
Loans not Past Due | 85,267 | 74,734 | |
Total loans recorded investment | 85,765 | 75,242 | |
Accrued interest included in recorded investment | [2] | 273 | 241 |
Installment [Member] | Other [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 145 | 275 | |
Installment [Member] | Other [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 140 | 115 | |
Installment [Member] | Other [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | $ 213 | $ 118 | |
[1] | Other than for the TCSB Bancorp, Inc. ("TCSB") acquired loans, credit scores have been updated within the last twelve months. | ||
[2] | Other than for the TCSB acquired loans, credit scores have been updated within the last twelve months. |
Loans, Impaired Financing Recei
Loans, Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Impaired loans with no allocated allowance for loan losses [Abstract] | |||||
TDR | $ 347 | $ 347 | $ 349 | ||
Non - TDR | 2,402 | 2,402 | 175 | ||
Impaired loans with an allocated allowance for loan losses [Abstract] | |||||
TDR - allowance based on collateral | 2,366 | 2,366 | 2,482 | ||
TDR - allowance based on present value cash flow | 56,599 | 56,599 | 62,113 | ||
Non - TDR - allowance based on collateral | 168 | 168 | 148 | ||
Total impaired loans | 61,882 | 61,882 | 65,267 | ||
Amount of allowance for loan losses allocated [Abstract] | |||||
TDR - allowance based on collateral | 692 | 692 | 684 | ||
TDR - allowance based on present value cash flow | 5,335 | 5,335 | 6,089 | ||
Non - TDR - allowance based on collateral | 75 | 75 | 66 | ||
Total amount of allowance for loan losses allocated | 6,102 | 6,102 | 6,839 | ||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 2,752 | 2,752 | 527 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 3,341 | 3,341 | 1,087 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 59,407 | 59,407 | 65,017 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 61,248 | 61,248 | 67,289 | ||
With an allowance for loan losses recorded | 62,159 | 62,159 | 65,544 | ||
Unpaid Principal Balance | 64,589 | 64,589 | 68,376 | ||
Related Allowance | 6,102 | 6,102 | 6,839 | ||
Accrued interest included in recorded investment | 277 | 277 | 277 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 2,949 | $ 573 | 1,744 | $ 1,103 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 17 | 17 | 44 | 37 | |
Average Recorded Investment, with an allowance for loan losses recorded | 60,330 | 69,775 | 62,299 | 72,397 | |
Interest Income Recognized, with an allowance for loan losses recorded | 770 | 810 | 2,308 | 2,524 | |
Average Recorded Investment | 63,279 | 70,348 | 64,043 | 73,500 | |
Interest Income Recognized | 787 | 827 | 2,352 | 2,561 | |
Commercial [Member] | Income Producing - Real Estate [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 4,829 | 4,829 | 5,195 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 4,808 | 4,808 | 5,347 | ||
With an allowance for loan losses recorded | 4,829 | 4,829 | 5,195 | ||
Unpaid Principal Balance | 4,808 | 4,808 | 5,347 | ||
Related Allowance | 307 | 307 | 347 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 222 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 4,968 | 7,311 | 5,077 | 7,525 | |
Interest Income Recognized, with an allowance for loan losses recorded | 64 | 91 | 202 | 300 | |
Average Recorded Investment | 4,968 | 7,311 | 5,077 | 7,747 | |
Interest Income Recognized | 64 | 91 | 202 | 300 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 2,402 | 2,402 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 2,402 | 2,402 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 152 | 152 | 166 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 152 | 152 | 194 | ||
With an allowance for loan losses recorded | 2,554 | 2,554 | 166 | ||
Unpaid Principal Balance | 2,554 | 2,554 | 194 | ||
Related Allowance | 4 | 4 | 9 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 2,402 | 0 | 1,201 | 8 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 153 | 171 | 157 | 187 | |
Interest Income Recognized, with an allowance for loan losses recorded | 3 | 2 | 7 | 6 | |
Average Recorded Investment | 2,555 | 171 | 1,358 | 195 | |
Interest Income Recognized | 3 | 2 | 7 | 6 | |
Commercial [Member] | Commercial and Industrial [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 347 | 347 | 524 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 347 | 347 | 549 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 1,984 | 1,984 | 2,535 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 2,133 | 2,133 | 2,651 | ||
With an allowance for loan losses recorded | 2,331 | 2,331 | 3,059 | ||
Unpaid Principal Balance | 2,480 | 2,480 | 3,200 | ||
Related Allowance | 416 | 416 | 481 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 425 | 445 | 472 | 808 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 7 | 8 | 20 | 16 | |
Average Recorded Investment, with an allowance for loan losses recorded | 2,264 | 2,878 | 2,391 | 3,488 | |
Interest Income Recognized, with an allowance for loan losses recorded | 24 | 26 | 90 | 98 | |
Average Recorded Investment | 2,689 | 3,323 | 2,863 | 4,296 | |
Interest Income Recognized | 31 | 34 | 110 | 114 | |
Mortgage [Member] | 1-4 Family [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 2 | 2 | 2 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 447 | 447 | 469 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 34,656 | 34,656 | 36,848 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 36,169 | 36,169 | 38,480 | ||
With an allowance for loan losses recorded | 34,658 | 34,658 | 36,850 | ||
Unpaid Principal Balance | 36,616 | 36,616 | 38,949 | ||
Related Allowance | 3,126 | 3,126 | 3,454 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 121 | 127 | 70 | 64 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 9 | 7 | 18 | 16 | |
Average Recorded Investment, with an allowance for loan losses recorded | 34,731 | 38,533 | 35,549 | 39,716 | |
Interest Income Recognized, with an allowance for loan losses recorded | 458 | 462 | 1,347 | 1,420 | |
Average Recorded Investment | 34,852 | 38,660 | 35,619 | 39,780 | |
Interest Income Recognized | 467 | 469 | 1,365 | 1,436 | |
Mortgage [Member] | Resort Lending [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 13,934 | 13,934 | 15,978 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 13,972 | 13,972 | 16,046 | ||
With an allowance for loan losses recorded | 13,934 | 13,934 | 15,978 | ||
Unpaid Principal Balance | 13,972 | 13,972 | 16,046 | ||
Related Allowance | 2,017 | 2,017 | 2,210 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 14,276 | 16,175 | 15,027 | 16,485 | |
Interest Income Recognized, with an allowance for loan losses recorded | 161 | 153 | 475 | 464 | |
Average Recorded Investment | 14,276 | 16,175 | 15,027 | 16,485 | |
Interest Income Recognized | 161 | 153 | 475 | 464 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 66 | 66 | 173 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 65 | 65 | 236 | ||
With an allowance for loan losses recorded | 66 | 66 | 173 | ||
Unpaid Principal Balance | 65 | 65 | 236 | ||
Related Allowance | 3 | 3 | 43 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 67 | 201 | 115 | 218 | |
Interest Income Recognized, with an allowance for loan losses recorded | 1 | 1 | 4 | 5 | |
Average Recorded Investment | 67 | 201 | 115 | 218 | |
Interest Income Recognized | 1 | 1 | 4 | 5 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 34 | 34 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 157 | 157 | 178 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 156 | 156 | 213 | ||
With an allowance for loan losses recorded | 157 | 157 | 178 | ||
Unpaid Principal Balance | 190 | 190 | 213 | ||
Related Allowance | 9 | 9 | 18 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 157 | 180 | 167 | 217 | |
Interest Income Recognized, with an allowance for loan losses recorded | 2 | 2 | 5 | 5 | |
Average Recorded Investment | 157 | 180 | 167 | 217 | |
Interest Income Recognized | 2 | 2 | 5 | 5 | |
Installment [Member] | Home Equity - 1st Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 1 | 1 | 1 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 90 | 90 | 69 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 1,520 | 1,520 | 1,667 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 1,640 | 1,640 | 1,804 | ||
With an allowance for loan losses recorded | 1,521 | 1,521 | 1,668 | ||
Unpaid Principal Balance | 1,730 | 1,730 | 1,873 | ||
Related Allowance | 97 | 97 | 108 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 1 | 1 | 1 | 1 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 1 | 1 | 5 | 4 | |
Average Recorded Investment, with an allowance for loan losses recorded | 1,545 | 1,808 | 1,595 | 1,874 | |
Interest Income Recognized, with an allowance for loan losses recorded | 27 | 40 | 81 | 107 | |
Average Recorded Investment | 1,546 | 1,809 | 1,596 | 1,875 | |
Interest Income Recognized | 28 | 41 | 86 | 111 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 1,626 | 1,626 | 1,793 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 1,644 | 1,644 | 1,805 | ||
With an allowance for loan losses recorded | 1,626 | 1,626 | 1,793 | ||
Unpaid Principal Balance | 1,644 | 1,644 | 1,805 | ||
Related Allowance | 93 | 93 | 140 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 1,679 | 2,058 | 1,728 | 2,210 | |
Interest Income Recognized, with an allowance for loan losses recorded | 24 | 26 | 76 | 96 | |
Average Recorded Investment | 1,679 | 2,058 | 1,728 | 2,210 | |
Interest Income Recognized | 24 | 26 | 76 | 96 | |
Installment [Member] | Boat Lending [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 5 | 5 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 0 | 0 | 1 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 0 | 0 | 5 | ||
With an allowance for loan losses recorded | 0 | 0 | 1 | ||
Unpaid Principal Balance | 5 | 5 | 5 | ||
Related Allowance | 0 | 0 | 1 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 1 | 1 | 1 | 1 | |
Interest Income Recognized, with an allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment | 1 | 1 | 1 | 1 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Installment [Member] | Recreational Vehicle Lending [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 81 | 81 | 90 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 81 | 81 | 90 | ||
With an allowance for loan losses recorded | 81 | 81 | 90 | ||
Unpaid Principal Balance | 81 | 81 | 90 | ||
Related Allowance | 4 | 4 | 5 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Average Recorded Investment, with an allowance for loan losses recorded | 83 | 98 | 86 | 103 | |
Interest Income Recognized, with an allowance for loan losses recorded | 1 | 1 | 3 | 4 | |
Average Recorded Investment | 83 | 98 | 86 | 103 | |
Interest Income Recognized | 1 | 1 | 3 | 4 | |
Installment [Member] | Other [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance for loan losses recorded | 16 | 16 | 0 | ||
With no related allowance for loan losses recorded | 0 | 0 | 0 | ||
Recorded Investment, with an allowance for loan losses recorded | 402 | 402 | 393 | ||
Unpaid Principal Balance, with an allowance for loan losses recorded | 428 | 428 | 418 | ||
With an allowance for loan losses recorded | 402 | 402 | 393 | ||
Unpaid Principal Balance | 444 | 444 | 418 | ||
Related Allowance | 26 | 26 | $ 23 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with no related allowance for loan losses recorded | 0 | 0 | 0 | 0 | |
Interest Income Recognized, with no related allowance for loan losses recorded | 0 | 1 | 1 | 1 | |
Average Recorded Investment, with an allowance for loan losses recorded | 406 | 361 | 406 | 373 | |
Interest Income Recognized, with an allowance for loan losses recorded | 5 | 6 | 18 | 19 | |
Average Recorded Investment | 406 | 361 | 406 | 373 | |
Interest Income Recognized | $ 5 | $ 7 | $ 19 | $ 20 |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($)Contract | Sep. 30, 2017USD ($)Contract | Sep. 30, 2018USD ($)PaymentContract | Sep. 30, 2017USD ($)ContractLoan | Dec. 31, 2017USD ($) | ||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | $ 59,312 | $ 59,312 | $ 64,944 | |||
Troubled debt restructuring, specific reserve | $ 6,000 | $ 6,000 | 6,800 | |||
Number of consecutive timely payments required | Payment | 6 | |||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 7 | 4 | 26 | 26 | ||
Pre-modification recorded balance | $ 783 | $ 154 | $ 2,088 | $ 1,461 | ||
Post-modification recorded balance | 783 | 155 | 2,073 | 1,467 | ||
Increase (decrease) in allowance for loan losses | (10) | 20 | (4) | 80 | ||
Charge offs due to troubled debt restructurings | 0 | 0 | $ 0 | 0 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Past due period for modified loans | 90 days | |||||
Charge-offs on TDRs that subsequently defaulted | 0 | 0 | $ 0 | $ 0 | ||
Minimum [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Modification of stated interest rate of loans, range of period | 9 months | |||||
Modifications involving extension of maturity date, period range | 1 month | |||||
Maximum [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Modification of stated interest rate of loans, range of period | 36 months | |||||
Modification of stated interest rate of loans, range of period in certain circumstances | 480 months | |||||
Modifications involving extension of maturity date, period range | 60 months | |||||
Modifications involving extension of maturity date, period range in certain circumstances | 230 months | |||||
Performing TDRs [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | 56,301 | $ 56,301 | 60,115 | |||
Non-performing TDRs [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | [1] | 3,011 | 3,011 | 4,829 | ||
Commercial and Industrial [Member] | ||||||
TDR that subsequently defaulted [Abstract] | ||||||
Number of loans subsequently defaulted | Loan | 6 | |||||
Recorded balance | 160 | $ 160 | ||||
Increase (decrease) in allowance for loan loss due to TDRs that subsequently defaulted | 20 | 40 | ||||
Charge-offs on TDRs that subsequently defaulted | $ 50 | $ 50 | ||||
Commercial [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | 7,116 | 7,116 | 8,071 | |||
Commercial [Member] | Performing TDRs [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | 6,904 | 6,904 | 7,748 | |||
Commercial [Member] | Non-performing TDRs [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | [1] | $ 212 | $ 212 | 323 | ||
Commercial [Member] | Income Producing - Real Estate [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 1 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 67 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 67 | $ 0 | ||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Commercial [Member] | Commercial and Industrial [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 1 | 0 | 6 | 12 | ||
Pre-modification recorded balance | $ 24 | $ 0 | $ 611 | $ 786 | ||
Post-modification recorded balance | $ 24 | $ 0 | $ 611 | $ 786 | ||
Mortgage [Member] | 1-4 Family [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 3 | 1 | 7 | 3 | ||
Pre-modification recorded balance | $ 609 | $ 93 | $ 903 | $ 142 | ||
Post-modification recorded balance | $ 609 | $ 95 | $ 889 | $ 144 | ||
Mortgage [Member] | Resort Lending [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 1 | 0 | 1 | 1 | ||
Pre-modification recorded balance | $ 115 | $ 0 | $ 115 | $ 189 | ||
Post-modification recorded balance | $ 114 | $ 0 | $ 114 | $ 189 | ||
Mortgage [Member] | Home Equity - 1st Lien [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Installment [Member] | Home Equity - 1st Lien [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 1 | 0 | 6 | 2 | ||
Pre-modification recorded balance | $ 15 | $ 0 | $ 203 | $ 34 | ||
Post-modification recorded balance | $ 15 | $ 0 | $ 205 | $ 37 | ||
Installment [Member] | Home Equity - 2nd Lien [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 1 | 2 | 3 | 7 | ||
Pre-modification recorded balance | $ 20 | $ 51 | $ 113 | $ 300 | ||
Post-modification recorded balance | $ 21 | $ 50 | $ 114 | $ 301 | ||
Installment [Member] | Boat Lending [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Installment [Member] | Recreational Vehicle Lending [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Installment [Member] | Other [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 1 | 2 | 1 | ||
Pre-modification recorded balance | $ 0 | $ 10 | $ 76 | $ 10 | ||
Post-modification recorded balance | 0 | $ 10 | 73 | $ 10 | ||
Retail [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | [2] | 52,196 | 52,196 | 56,873 | ||
Retail [Member] | Performing TDRs [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | [2] | 49,397 | 49,397 | 52,367 | ||
Retail [Member] | Non-performing TDRs [Member] | ||||||
Troubled Debt Restructuring [Abstract] | ||||||
Troubled debt restructuring | [1],[2],[3] | $ 2,799 | $ 2,799 | $ 4,506 | ||
[1] | Included in non-performing loans table above. | |||||
[2] | Retail loans include mortgage and installment portfolio segments. | |||||
[3] | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
Loans, Loan Ratings by Loan Cla
Loans, Loan Ratings by Loan Class, Commercial, Mortgage and Installment Segments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jul. 31, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | $ 1,112,101 | $ 1,112,101 | $ 853,260 | |||||
Accrued interest included in total | 8,375 | 8,375 | 6,501 | |||||
Other Real Estate and Foreclosed Assets [Abstract] | ||||||||
Foreclosed residential real estate properties | 1,300 | 1,300 | 1,600 | |||||
Retail mortgage loans in process of foreclosure | 400 | 400 | 800 | |||||
Sale of Mortgage Loans [Abstract] | ||||||||
Proceeds from sale of mortgage loan | 27,577 | $ 0 | ||||||
Net gains on mortgage loans | (2,745) | $ (2,971) | (8,571) | $ (8,886) | ||||
Single-family Residential Loans [Member] | ||||||||
Sale of Mortgage Loans [Abstract] | ||||||||
Proceeds from sale of mortgage loan | $ 11,100 | $ 16,500 | ||||||
Net gains on mortgage loans | $ (10) | $ 50 | ||||||
Weighted average interest rate | 4.07% | 3.59% | ||||||
Commercial [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 1,115,227 | 1,115,227 | 855,560 | |||||
Accrued interest included in total | 3,126 | 3,126 | 2,300 | |||||
Commercial [Member] | Non-Watch 1-6 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 1,064,854 | 1,064,854 | 822,561 | |||||
Accrued interest included in total | 2,869 | 2,869 | 2,198 | |||||
Commercial [Member] | Watch 7-8 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 36,857 | 36,857 | 29,704 | |||||
Accrued interest included in total | 146 | 146 | 94 | |||||
Commercial [Member] | Substandard Accrual 9 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 10,734 | 10,734 | 2,649 | |||||
Accrued interest included in total | 111 | 111 | 8 | |||||
Commercial [Member] | Non-Accrual 10-11 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 2,782 | 2,782 | 646 | |||||
Accrued interest included in total | 0 | 0 | 0 | |||||
Commercial [Member] | Income Producing - Real Estate [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 378,233 | 378,233 | 290,496 | |||||
Commercial [Member] | Income Producing - Real Estate [Member] | Non-Watch 1-6 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 374,965 | 374,965 | 288,869 | |||||
Commercial [Member] | Income Producing - Real Estate [Member] | Watch 7-8 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 3,060 | 3,060 | 1,293 | |||||
Commercial [Member] | Income Producing - Real Estate [Member] | Substandard Accrual 9 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 208 | 208 | 304 | |||||
Commercial [Member] | Income Producing - Real Estate [Member] | Non-Accrual 10-11 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 0 | 0 | 30 | |||||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 64,162 | 64,162 | 70,191 | |||||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non-Watch 1-6 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 55,126 | 55,126 | 70,122 | |||||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Watch 7-8 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 6,623 | 6,623 | 60 | |||||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Substandard Accrual 9 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 11 | 11 | 0 | |||||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non-Accrual 10-11 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 2,402 | 2,402 | 9 | |||||
Commercial [Member] | Commercial and Industrial [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 672,832 | 672,832 | 494,873 | |||||
Commercial [Member] | Commercial and Industrial [Member] | Non-Watch 1-6 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 634,763 | 634,763 | 463,570 | |||||
Commercial [Member] | Commercial and Industrial [Member] | Watch 7-8 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 27,174 | 27,174 | 28,351 | |||||
Commercial [Member] | Commercial and Industrial [Member] | Substandard Accrual 9 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 10,515 | 10,515 | 2,345 | |||||
Commercial [Member] | Commercial and Industrial [Member] | Non-Accrual 10-11 [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
Commercial | 380 | 380 | 607 | |||||
Mortgage [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [1] | 143,013 | 143,013 | 104,159 | ||||
750-799 | [1] | 436,180 | 436,180 | 360,260 | ||||
700-749 | [1] | 263,937 | 263,937 | 198,667 | ||||
650-699 | [1] | 126,427 | 126,427 | 106,479 | ||||
600-649 | [1] | 38,173 | 38,173 | 31,813 | ||||
550-599 | [1] | 16,475 | 16,475 | 19,482 | ||||
500-549 | [1] | 9,896 | 9,896 | 12,110 | ||||
Under 500 | [1] | 2,062 | 2,062 | 3,463 | ||||
Unknown | [1] | 24,485 | 24,485 | 16,375 | ||||
Total | [1] | 1,060,648 | 1,060,648 | 852,808 | ||||
Accrued interest included in total | [1] | 4,166 | 4,166 | 3,278 | ||||
Mortgage [Member] | 1-4 Family [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [1] | 110,400 | 110,400 | 78,523 | ||||
750-799 | [1] | 358,072 | 358,072 | 283,558 | ||||
700-749 | [1] | 211,575 | 211,575 | 154,239 | ||||
650-699 | [1] | 104,395 | 104,395 | 84,121 | ||||
600-649 | [1] | 30,578 | 30,578 | 25,087 | ||||
550-599 | [1] | 13,491 | 13,491 | 15,136 | ||||
500-549 | [1] | 7,641 | 7,641 | 9,548 | ||||
Under 500 | [1] | 1,702 | 1,702 | 2,549 | ||||
Unknown | [1] | 13,907 | 13,907 | 14,472 | ||||
Total | [1] | 851,761 | 851,761 | 667,233 | ||||
Accrued interest included in total | [1] | 3,161 | 3,161 | 2,456 | ||||
Mortgage [Member] | Resort Lending [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [1] | 12,423 | 12,423 | 11,625 | ||||
750-799 | [1] | 32,498 | 32,498 | 36,015 | ||||
700-749 | [1] | 21,239 | 21,239 | 22,099 | ||||
650-699 | [1] | 9,271 | 9,271 | 12,145 | ||||
600-649 | [1] | 4,142 | 4,142 | 3,025 | ||||
550-599 | [1] | 1,220 | 1,220 | 2,710 | ||||
500-549 | [1] | 822 | 822 | 1,009 | ||||
Under 500 | [1] | 84 | 84 | 269 | ||||
Unknown | [1] | 3,108 | 3,108 | 1,659 | ||||
Total | [1] | 84,807 | 84,807 | 90,556 | ||||
Accrued interest included in total | [1] | 360 | 360 | 371 | ||||
Mortgage [Member] | Home Equity - 1st Lien [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [1] | 7,872 | 7,872 | 6,169 | ||||
750-799 | [1] | 15,037 | 15,037 | 16,561 | ||||
700-749 | [1] | 9,562 | 9,562 | 7,317 | ||||
650-699 | [1] | 3,222 | 3,222 | 2,793 | ||||
600-649 | [1] | 569 | 569 | 1,189 | ||||
550-599 | [1] | 503 | 503 | 518 | ||||
500-549 | [1] | 228 | 228 | 397 | ||||
Under 500 | [1] | 86 | 86 | 260 | ||||
Unknown | [1] | 3,653 | 3,653 | 157 | ||||
Total | [1] | 40,732 | 40,732 | 35,361 | ||||
Accrued interest included in total | [1] | 206 | 206 | 157 | ||||
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [1] | 12,318 | 12,318 | 7,842 | ||||
750-799 | [1] | 30,573 | 30,573 | 24,126 | ||||
700-749 | [1] | 21,561 | 21,561 | 15,012 | ||||
650-699 | [1] | 9,539 | 9,539 | 7,420 | ||||
600-649 | [1] | 2,884 | 2,884 | 2,512 | ||||
550-599 | [1] | 1,261 | 1,261 | 1,118 | ||||
500-549 | [1] | 1,205 | 1,205 | 1,156 | ||||
Under 500 | [1] | 190 | 190 | 385 | ||||
Unknown | [1] | 3,817 | 3,817 | 87 | ||||
Total | [1] | 83,348 | 83,348 | 59,658 | ||||
Accrued interest included in total | [1] | 439 | 439 | 294 | ||||
Installment [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [2] | 54,990 | 54,990 | 40,985 | ||||
750-799 | [2] | 203,474 | 203,474 | 158,147 | ||||
700-749 | [2] | 86,933 | 86,933 | 70,941 | ||||
650-699 | [2] | 26,090 | 26,090 | 26,583 | ||||
600-649 | [2] | 7,585 | 7,585 | 7,840 | ||||
550-599 | [2] | 3,620 | 3,620 | 3,794 | ||||
500-549 | [2] | 1,286 | 1,286 | 1,641 | ||||
Under 500 | [2] | 475 | 475 | 377 | ||||
Unknown | [2] | 10,625 | 10,625 | 6,642 | ||||
Total | [2] | 395,078 | 395,078 | 316,950 | ||||
Accrued interest included in total | [2] | 1,083 | 1,083 | 923 | ||||
Installment [Member] | Home Equity - 1st Lien [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [2] | 651 | 651 | 815 | ||||
750-799 | [2] | 1,899 | 1,899 | 1,912 | ||||
700-749 | [2] | 1,471 | 1,471 | 1,825 | ||||
650-699 | [2] | 1,608 | 1,608 | 1,840 | ||||
600-649 | [2] | 1,174 | 1,174 | 1,567 | ||||
550-599 | [2] | 1,065 | 1,065 | 950 | ||||
500-549 | [2] | 305 | 305 | 499 | ||||
Under 500 | [2] | 87 | 87 | 32 | ||||
Unknown | [2] | 32 | 32 | 15 | ||||
Total | [2] | 8,292 | 8,292 | 9,455 | ||||
Accrued interest included in total | [2] | 33 | 33 | 39 | ||||
Installment [Member] | Home Equity - 2nd Lien [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [2] | 264 | 264 | 825 | ||||
750-799 | [2] | 1,519 | 1,519 | 1,952 | ||||
700-749 | [2] | 1,806 | 1,806 | 2,142 | ||||
650-699 | [2] | 1,627 | 1,627 | 2,036 | ||||
600-649 | [2] | 1,065 | 1,065 | 1,065 | ||||
550-599 | [2] | 850 | 850 | 1,028 | ||||
500-549 | [2] | 132 | 132 | 303 | ||||
Under 500 | [2] | 172 | 172 | 88 | ||||
Unknown | [2] | 145 | 145 | 32 | ||||
Total | [2] | 7,580 | 7,580 | 9,471 | ||||
Accrued interest included in total | [2] | 27 | 27 | 43 | ||||
Installment [Member] | Boat Lending [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [2] | 25,231 | 25,231 | 15,531 | ||||
750-799 | [2] | 95,664 | 95,664 | 73,251 | ||||
700-749 | [2] | 36,743 | 36,743 | 28,922 | ||||
650-699 | [2] | 8,760 | 8,760 | 9,179 | ||||
600-649 | [2] | 2,064 | 2,064 | 2,052 | ||||
550-599 | [2] | 410 | 410 | 640 | ||||
500-549 | [2] | 340 | 340 | 281 | ||||
Under 500 | [2] | 43 | 43 | 57 | ||||
Unknown | [2] | 903 | 903 | 59 | ||||
Total | [2] | 170,158 | 170,158 | 129,972 | ||||
Accrued interest included in total | [2] | 431 | 431 | 346 | ||||
Installment [Member] | Recreational Vehicle Lending [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [2] | 22,621 | 22,621 | 16,754 | ||||
750-799 | [2] | 72,298 | 72,298 | 52,610 | ||||
700-749 | [2] | 22,996 | 22,996 | 17,993 | ||||
650-699 | [2] | 4,093 | 4,093 | 4,270 | ||||
600-649 | [2] | 778 | 778 | 754 | ||||
550-599 | [2] | 334 | 334 | 305 | ||||
500-549 | [2] | 76 | 76 | 83 | ||||
Under 500 | [2] | 21 | 21 | 6 | ||||
Unknown | [2] | 66 | 66 | 35 | ||||
Total | [2] | 123,283 | 123,283 | 92,810 | ||||
Accrued interest included in total | [2] | 319 | 319 | 254 | ||||
Installment [Member] | Other [Member] | ||||||||
Loan ratings/credit scores by loan class [Abstract] | ||||||||
800 and above | [2] | 6,223 | 6,223 | 7,060 | ||||
750-799 | [2] | 32,094 | 32,094 | 28,422 | ||||
700-749 | [2] | 23,917 | 23,917 | 20,059 | ||||
650-699 | [2] | 10,002 | 10,002 | 9,258 | ||||
600-649 | [2] | 2,504 | 2,504 | 2,402 | ||||
550-599 | [2] | 961 | 961 | 871 | ||||
500-549 | [2] | 433 | 433 | 475 | ||||
Under 500 | [2] | 152 | 152 | 194 | ||||
Unknown | [2] | 9,479 | 9,479 | 6,501 | ||||
Total | [2] | 85,765 | 85,765 | 75,242 | ||||
Accrued interest included in total | [2] | $ 273 | $ 273 | $ 241 | ||||
[1] | Other than for the TCSB Bancorp, Inc. ("TCSB") acquired loans, credit scores have been updated within the last twelve months. | |||||||
[2] | Other than for the TCSB acquired loans, credit scores have been updated within the last twelve months. |
Loans, Purchase Credit Impaired
Loans, Purchase Credit Impaired ("PCI") Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
PCI loans contractually required payments would not be collected [Abstract] | |||||
Accretions recorded as loan interest income | $ 30 | $ 70 | |||
TCSB Bancorp, Inc. [Member] | |||||
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | |||||
Total carrying amount | 2,565 | 2,565 | $ 0 | ||
Allowance for loan losses | 0 | 0 | 0 | ||
Carrying amount, net of allowance for loan losses | 2,565 | 2,565 | 0 | ||
Accretable yield of PCI loans, or income expected to be collected [Roll Forward] | |||||
Balance at beginning of period | 533 | $ 0 | 0 | $ 0 | |
New loans purchased | 0 | 0 | 568 | 0 | |
Accretion of income | (32) | 0 | (67) | 0 | |
Reclassification from (to) nonaccretable difference | 0 | 0 | 0 | 0 | |
Disposals/other adjustments | 0 | 0 | 0 | 0 | |
Balance at end of period | 501 | $ 0 | 501 | $ 0 | |
PCI loans contractually required payments would not be collected [Abstract] | |||||
Contractually required payments | 4,213 | 4,213 | |||
Non accretable difference | (742) | (742) | |||
Cash flows expected to be collected at acquisition | 3,471 | 3,471 | |||
Accretable yield | (568) | (568) | |||
Fair value of acquired loans at acquisition | 2,903 | 2,903 | |||
Commercial [Member] | TCSB Bancorp, Inc. [Member] | |||||
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | |||||
Total carrying amount | 1,653 | 1,653 | 0 | ||
Mortgage [Member] | TCSB Bancorp, Inc. [Member] | |||||
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | |||||
Total carrying amount | 557 | 557 | 0 | ||
Installment [Member] | TCSB Bancorp, Inc. [Member] | |||||
Carrying amount of loans that meet the criteria of ASC 310-30 treatment [Abstract] | |||||
Total carrying amount | $ 355 | $ 355 | $ 0 |
Shareholders' Equity and Earn_3
Shareholders' Equity and Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 22, 2018 | ||
Earnings Per Share Reconciliation [Abstract] | ||||||
Net Income | $ 11,925 | $ 6,859 | $ 29,903 | $ 18,764 | ||
Weighted average shares outstanding (in shares) | [1] | 24,149 | 21,334 | 23,218 | 21,325 | |
Effect of stock options (in shares) | 182 | 138 | 180 | 144 | ||
Stock units for deferred compensation plan for non-employee directors (in shares) | 129 | 121 | 126 | 120 | ||
Performance share units (in shares) | 55 | 59 | 52 | 57 | ||
Weighted average shares outstanding for calculation of diluted earnings per share (in shares) | 24,515 | 21,652 | 23,576 | 21,646 | ||
Net income per common share [Abstract] | ||||||
Basic (in dollars per share) | [1] | $ 0.49 | $ 0.32 | $ 1.29 | $ 0.88 | |
Diluted (in dollars per share) | $ 0.49 | $ 0.32 | $ 1.27 | $ 0.87 | ||
Common Stock [Member] | ||||||
Share Repurchase Plan [Abstract] | ||||||
Share repurchase plan percentage of shares authorized to be repurchased | 5.00% | |||||
Stock Options [Member] | ||||||
Antidilutive Securities [Abstract] | ||||||
Antidilutive shares excluded from computation of diluted loss per share (in shares) | 0 | 0 | 0 | 0 | ||
[1] | Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Derivative financial instrument according to type of hedge [Abstract] | ||
Unrealized gain on cash flow hedges, net of tax | $ 660 | |
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 7,734 | $ 3,080 |
Liability Derivatives | 2,696 | 1,292 |
Interest-Rate Cap Agreements [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Unrecognized premiums | $ 2,300 | 900 |
Maximum [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Term of cash flow hedge | 5 years | |
Cash Flow Hedge Designation [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 155,000 | $ 60,000 |
Average Maturity | 3 years 6 months | 3 years 7 months 6 days |
Fair Value | $ 3,972 | $ 1,221 |
Cash Flow Hedge Designation [Member] | Interest-Rate Cap Agreements [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 130,000 | $ 45,000 |
Average Maturity | 3 years 7 months 6 days | 3 years 6 months |
Fair Value | $ 3,391 | $ 976 |
Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 3,972 | 1,221 |
Liability Derivatives | 0 | 0 |
No Hedge Designation [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 293,794 | $ 239,377 |
Average Maturity | 3 years 6 months | 4 years 1 month 6 days |
Fair Value | $ 1,066 | $ 567 |
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 3,762 | 1,859 |
Liability Derivatives | 2,696 | 1,292 |
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 44,609 | $ 25,032 |
Average Maturity | 1 month 6 days | 1 month 6 days |
Fair Value | $ 884 | $ 530 |
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 65,633 | $ 56,127 |
Average Maturity | 1 month 6 days | 1 month 6 days |
Fair Value | $ 182 | $ 37 |
No Hedge Designation [Member] | Purchased Options [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 3,119 | $ 3,119 |
Average Maturity | 2 years 9 months 18 days | 3 years 6 months |
Fair Value | $ 178 | $ 322 |
No Hedge Designation [Member] | Written Options [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 3,119 | $ 3,119 |
Average Maturity | 2 years 9 months 18 days | 3 years 6 months |
Fair Value | $ (178) | $ (322) |
Fixed Income Interest Rate [Member] | Cash Flow Hedge Designation [Member] | Interest Rate Swap [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 25,000 | $ 15,000 |
Average Maturity | 2 years 9 months 18 days | 3 years 8 months 12 days |
Fair Value | $ 581 | $ 245 |
Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap - Commercial [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 88,657 | $ 75,990 |
Average Maturity | 5 years 8 months 12 days | 6 years 2 months 12 days |
Fair Value | $ 2,242 | $ 292 |
Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap - Commercial [Member] | ||
Derivative financial instrument according to type of hedge [Abstract] | ||
Notional Amount | $ 88,657 | $ 75,990 |
Average Maturity | 5 years 8 months 12 days | 6 years 2 months 12 days |
Fair Value | $ (2,242) | $ (292) |
Other Assets [Member] | Designated as Hedging Instrument [Member] | Interest-Rate Cap Agreements [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 3,391 | 976 |
Other Assets [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 884 | 530 |
Other Assets [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 182 | 37 |
Other Assets [Member] | No Hedge Designation [Member] | Purchased Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 178 | 322 |
Other Assets [Member] | No Hedge Designation [Member] | Written Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 0 | 0 |
Other Assets [Member] | Fixed Income Interest Rate [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 581 | 245 |
Other Assets [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap - Commercial [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 2,380 | 631 |
Other Assets [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap - Commercial [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 138 | 339 |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest-Rate Cap Agreements [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Other Liabilities [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Other Liabilities [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Other Liabilities [Member] | No Hedge Designation [Member] | Purchased Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Other Liabilities [Member] | No Hedge Designation [Member] | Written Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 178 | 322 |
Other Liabilities [Member] | Fixed Income Interest Rate [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Other Liabilities [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap - Commercial [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 138 | 339 |
Other Liabilities [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap - Commercial [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | $ 2,380 | $ 631 |
Derivative Financial Instrume_4
Derivative Financial Instruments, Effect on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) | $ 389 | $ 95 | $ 1,400 | $ 95 | |
Cash Flow Hedge [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) | 389 | 95 | 1,400 | 95 | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | 73 | (5) | 132 | (5) | |
Gain Recognized in Income | [1] | 16 | 5 | 4 | 5 |
Cash Flow Hedge [Member] | Interest-Rate Cap Agreements [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) | 297 | 0 | 1,054 | 0 | |
Cash Flow Hedge [Member] | Interest-Rate Cap Agreements [Member] | Interest Expense [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | 67 | 0 | 119 | 0 | |
Gain Recognized in Income | [1] | 0 | 0 | 0 | 0 |
Cash Flow Hedge [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Other Comprehensive Income (Loss) (Effective Portion) | 92 | 95 | 346 | 95 | |
Cash Flow Hedge [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | 6 | (5) | 13 | (5) | |
Gain Recognized in Income | [1] | 16 | 5 | 4 | 5 |
No Hedge Designation [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Income | 97 | (311) | 499 | (481) | |
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Net Gains on Mortgage Loans [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Income | (318) | (313) | 354 | 123 | |
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Net Gains on Mortgage Loans [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Income | 415 | 2 | 145 | (604) | |
No Hedge Designation [Member] | Purchased Options [Member] | Interest Expense [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Income | (45) | 5 | (144) | 39 | |
No Hedge Designation [Member] | Written Options [Member] | Interest Expense [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Income | 45 | (5) | 144 | (39) | |
No Hedge Designation [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap - Commercial [Member] | Interest Income [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Income | 407 | 52 | 1,950 | (197) | |
No Hedge Designation [Member] | Variable Income Interest Rate [Member] | Interest Rate Swap - Commercial [Member] | Interest Income [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain Recognized in Income | $ (407) | $ (52) | $ (1,950) | $ 197 | |
[1] | For cash flow hedges, this location and amount refers to the ineffective portion. |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Amortized intangible assets - core deposits [Abstract] | ||||
Gross Carrying Amount | $ 11,916 | $ 6,118 | ||
Accumulated Amortization | 5,207 | 4,532 | ||
Unamortized intangible assets - goodwill [Abstract] | ||||
Gross Carrying Amount | $ 28,300 | $ 0 | 28,300 | $ 0 |
Increases in gross carrying amount of core deposit intangibles | 5,800 | |||
Increases (decrease) in goodwill | (700) | $ 28,300 | ||
Expected residual value of core deposit intangible asset | 0 | |||
Expected amortization period of core deposit intangible asset | 10 years | |||
Weighted average amortization period of core deposit intangible asset | 5 years 2 months 12 days | |||
Summary of estimated intangible amortization [Abstract] | ||||
Three months ending December 31, 2018 | 293 | |||
2,019 | 1,089 | |||
2,020 | 1,020 | |||
2,021 | 970 | |||
2,022 | 785 | |||
2023 and thereafter | 2,552 | |||
Total | $ 6,709 | |||
Goodwill [Roll Forward] | ||||
Balance at beginning of year | $ 0 | |||
Acquired during the year | 28,300 | |||
Balance at end of the period | $ 28,300 | $ 28,300 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share Based Compensation [Abstract] | ||||
Number of additional shares approved for grant (in shares) | 500,000 | |||
Total compensation cost not yet recognized | $ 2,400 | $ 2,400 | ||
Total compensation cost not yet recognized, period for recognition | 2 years | |||
Information regarding options exercised [Abstract] | ||||
Intrinsic value | 153 | $ 39 | $ 1,827 | $ 513 |
Cash proceeds received | 58 | 18 | 1,042 | 117 |
Tax benefit realized | 32 | 14 | 384 | 180 |
Long-Term Incentive Plan [Member] | ||||
Share Based Compensation [Abstract] | ||||
Total compensation expense recognized | 400 | 400 | 1,100 | 1,200 |
Tax benefit relating to compensation expense recognized | $ 100 | 100 | $ 200 | $ 400 |
Stock Options [Member] | ||||
Number of Shares [Roll Forward] | ||||
Outstanding, beginning balance (in shares) | 176,055 | |||
Issued for acquisition (in shares) | 187,915 | |||
Exercised (in shares) | (113,548) | |||
Forfeited (in shares) | 0 | |||
Expired (in shares) | 0 | |||
Outstanding, ending balance (in shares) | 250,422 | 250,422 | ||
Vested and expected to vest, period end (in shares) | 250,422 | 250,422 | ||
Exercisable, period end (in shares) | 250,422 | 250,422 | ||
Average Exercise Price [Roll Forward] | ||||
Outstanding, beginning balance (in dollars per share) | $ 5.24 | |||
Issued for acquisition (in dollars per share) | 9.94 | |||
Exercised (in dollars per share) | 9.18 | |||
Outstanding, ending balance (in dollars per share) | $ 6.98 | 6.98 | ||
Vested and expected to vest, period end (in dollars per share) | 6.98 | 6.98 | ||
Exercisable, period end (in dollars per share) | $ 6.98 | $ 6.98 | ||
Weighted-Average Remaining Contractual Term (Years) [Abstract] | ||||
Outstanding, weighted average remaining contractual term | 4 years 8 months 12 days | |||
Vested and expected to vest, weighted-average remaining contractual term | 4 years 8 months 12 days | |||
Exercisable, weighted average remaining contractual term | 4 years 8 months 12 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding, aggregate intrinsic value | $ 4,174 | $ 4,174 | ||
Vested and expected to vest, aggregate intrinsic value | 4,174 | 4,174 | ||
Exercisable, aggregate intrinsic value | $ 4,174 | $ 4,174 | ||
Weighted-average assumptions used in the Black-Scholes option pricing model [Abstract] | ||||
Expected dividend yield | 2.62% | |||
Risk-free interest rate | 2.40% | |||
Expected life | 3 years 1 month 20 days | |||
Expected volatility | 45.99% | |||
Per share weighted-average fair value (in dollars per share) | $ 13.25 | $ 13.25 | ||
Restricted Stock [Member] | Long-Term Incentive Plan [Member] | ||||
Share Based Compensation [Abstract] | ||||
Number of stock units or restricted shares issued in period (in shares) | 2,000 | |||
Vesting period | 3 years | |||
Non-Vested Restricted Stock and PSUs [Member] | ||||
Number of Shares [Roll Forward] | ||||
Outstanding, beginning balance (in shares) | 290,527 | |||
Granted (in shares) | 73,406 | |||
Vested (in shares) | (96,255) | |||
Forfeited (in shares) | (8,259) | |||
Outstanding, ending balance (in shares) | 259,419 | 259,419 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Outstanding, beginning balance (in dollars per share) | $ 15.88 | |||
Granted (in dollars per share) | 23.62 | |||
Vested (in dollars per share) | 13.17 | |||
Forfeited (in dollars per share) | 18.53 | |||
Outstanding, ending balance (in dollars per share) | $ 19 | $ 19 | ||
Directors [Member] | ||||
Share Based Compensation [Abstract] | ||||
Shares issues as retainer fees (in shares) | 7,000 | 6,000 | ||
Non-Employee Directors [Member] | ||||
Share Based Compensation [Abstract] | ||||
Number of additional shares approved for grant (in shares) | 200,000 | |||
Total compensation expense recognized | $ 50 | 50 | $ 160 | $ 120 |
Tax benefit relating to compensation expense recognized | $ 10 | $ 20 | $ 30 | $ 40 |
Officers [Member] | Long-Term Incentive Plan [Member] | ||||
Share Based Compensation [Abstract] | ||||
Number of stock units or restricted shares issued in period (in shares) | 0 | 0 | ||
Officers [Member] | Restricted Stock [Member] | Long-Term Incentive Plan [Member] | ||||
Share Based Compensation [Abstract] | ||||
Number of stock units or restricted shares issued in period (in shares) | 50,000 | 50,000 | ||
Vesting period | 3 years | 3 years | ||
Officers [Member] | Performance Stock Units [Member] | Long-Term Incentive Plan [Member] | ||||
Share Based Compensation [Abstract] | ||||
Number of stock units or restricted shares issued in period (in shares) | 20,000 | 20,000 | ||
Vesting period | 3 years | 3 years | ||
Performance feature comparison period | 3 years |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax [Abstract] | |||||
Income tax expense | $ 2,921 | $ 3,159 | $ 7,026 | $ 8,443 | |
Statutory federal income tax rate | 21.00% | 35.00% | |||
Decrease in income tax expense | (10) | $ (20) | $ (330) | $ (230) | |
Gross unrecognized tax benefits | $ 700 | $ 700 | $ 700 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Regulatory Matters [Abstract] | ||||
Undivided profits | $ 27,200 | |||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | 345,204 | $ 264,933 | $ 267,710 | $ 248,980 |
Add (deduct) [Abstract] | ||||
Accumulated other comprehensive loss for regulatory purposes | (9,889) | (5,999) | ||
Consolidated [Member] | ||||
Total capital to risk-weighted assets [Abstract] | ||||
Total risk-based capital | $ 373,748 | $ 312,163 | ||
Actual, Ratio | 14.57% | 15.16% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 205,173 | $ 164,782 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 8.00% | 8.00% | ||
Tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | $ 348,228 | $ 288,451 | ||
Actual, Ratio | 13.58% | 14.00% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 153,880 | $ 123,586 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 6.00% | 6.00% | ||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | $ 310,081 | $ 255,934 | ||
Actual, Ratio | 12.09% | 12.43% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 115,410 | $ 92,690 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 4.50% | 4.50% | ||
Tier 1 capital to average assets [Abstract] | ||||
Tier 1 capital | $ 348,228 | $ 288,451 | ||
Actual, Ratio | 10.84% | 10.57% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 128,543 | $ 109,209 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 4.00% | 4.00% | ||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | $ 345,204 | $ 264,933 | ||
Add (deduct) [Abstract] | ||||
Accumulated other comprehensive loss for regulatory purposes | 4,092 | 201 | ||
Goodwill and other intangibles | (35,009) | (1,269) | ||
Disallowed deferred tax assets | (4,206) | (7,931) | ||
Common equity tier 1 capital | 310,081 | 255,934 | ||
Qualifying trust preferred securities | 38,147 | 34,500 | ||
Disallowed deferred tax assets | 0 | (1,983) | ||
Tier 1 capital | 348,228 | 288,451 | ||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 25,520 | 23,712 | ||
Total risk-based capital | 373,748 | 312,163 | ||
Independent Bank [Member] | ||||
Total capital to risk-weighted assets [Abstract] | ||||
Total risk-based capital | $ 337,905 | $ 290,188 | ||
Actual, Ratio | 13.18% | 14.10% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 205,044 | $ 164,675 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 8.00% | 8.00% | ||
Minimum for Well Capitalized Institutions, Amount | $ 256,305 | $ 205,843 | ||
Minimum for Well-Capitalized Institutions, Ratio | 10.00% | 10.00% | ||
Tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | $ 312,385 | $ 266,476 | ||
Actual, Ratio | 12.19% | 12.95% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 153,783 | $ 123,506 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 6.00% | 6.00% | ||
Minimum for Well-Capitalized Institutions, Amount | $ 205,044 | $ 164,675 | ||
Minimum for Well Capitalized Institutions, Ratio | 8.00% | 8.00% | ||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | $ 312,385 | $ 266,476 | ||
Actual, Ratio | 12.19% | 12.95% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 115,337 | $ 92,630 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 4.50% | 4.50% | ||
Minimum for Well-Capitalized Institutions, Amount | $ 166,598 | $ 133,798 | ||
Minimum for Well Capitalized Institutions, Ratio | 6.50% | 6.50% | ||
Tier 1 capital to average assets [Abstract] | ||||
Tier 1 capital | $ 312,385 | $ 266,476 | ||
Actual, Ratio | 9.73% | 9.78% | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 128,376 | $ 109,041 | ||
Minimum for Adequately Capitalized Institutions, Ratio | 4.00% | 4.00% | ||
Minimum for Well-Capitalized Institutions, Amount | $ 160,469 | $ 136,301 | ||
Minimum for Well-Capitalized Institutions, Ratio | 5.00% | 5.00% | ||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | $ 343,351 | $ 269,481 | ||
Add (deduct) [Abstract] | ||||
Accumulated other comprehensive loss for regulatory purposes | 4,092 | 201 | ||
Goodwill and other intangibles | (35,009) | (1,269) | ||
Disallowed deferred tax assets | (49) | (1,937) | ||
Common equity tier 1 capital | 312,385 | 266,476 | ||
Qualifying trust preferred securities | 0 | 0 | ||
Disallowed deferred tax assets | 0 | 0 | ||
Tier 1 capital | 312,385 | 266,476 | ||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 25,520 | 23,712 | ||
Total risk-based capital | $ 337,905 | $ 290,188 |
Fair Value Disclosures, Signifi
Fair Value Disclosures, Significant Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets [Abstract] | |||
Equity securities at fair value | $ 285 | $ 0 | |
Trading securities | 0 | 455 | |
Securities available for sale | 436,957 | 522,925 | |
Loans held for sale | 41,325 | 39,436 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Equity securities at fair value | 285 | ||
Trading securities | 455 | ||
Securities available for sale | 0 | 898 | |
Derivatives | 0 | 0 | |
Liabilities [Abstract] | |||
Derivatives | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Equity securities at fair value | 0 | ||
Trading securities | 0 | ||
Securities available for sale | 436,957 | 522,027 | |
Derivatives | 7,734 | 3,080 | |
Liabilities [Abstract] | |||
Derivatives | 2,696 | 1,292 | |
Significant Un-observable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Equity securities at fair value | 0 | ||
Trading securities | 0 | ||
Securities available for sale | 0 | 0 | |
Derivatives | 0 | 0 | |
Liabilities [Abstract] | |||
Derivatives | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Equity securities at fair value | 285 | ||
Trading securities | 455 | ||
Loans held for sale | 41,325 | 39,436 | |
Capitalized mortgage loan servicing rights | 23,151 | 15,699 | |
Derivatives | [1] | 7,734 | 3,080 |
Liabilities [Abstract] | |||
Derivatives | [2] | 2,696 | 1,292 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 898 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 20,423 | 25,682 | |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 125,061 | 137,918 | |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 5,815 | 9,760 | |
Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,973 | 29,109 | |
Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 78,526 | 93,898 | |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 139,654 | 172,945 | |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 34,570 | 47,853 | |
Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 1,925 | 2,802 | |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,010 | 2,060 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Equity securities at fair value | 285 | ||
Trading securities | 455 | ||
Loans held for sale | 0 | 0 | |
Capitalized mortgage loan servicing rights | 0 | 0 | |
Derivatives | [1] | 0 | 0 |
Liabilities [Abstract] | |||
Derivatives | [2] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 898 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Private Label Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign Government [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Equity securities at fair value | 0 | ||
Trading securities | 0 | ||
Loans held for sale | 41,325 | 39,436 | |
Capitalized mortgage loan servicing rights | 0 | 0 | |
Derivatives | [1] | 7,734 | 3,080 |
Liabilities [Abstract] | |||
Derivatives | [2] | 2,696 | 1,292 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 20,423 | 25,682 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 125,061 | 137,918 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 5,815 | 9,760 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Private Label Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,973 | 29,109 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 78,526 | 93,898 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 139,654 | 172,945 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 34,570 | 47,853 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 1,925 | 2,802 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,010 | 2,060 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Equity securities at fair value | 0 | ||
Trading securities | 0 | ||
Loans held for sale | 0 | 0 | |
Capitalized mortgage loan servicing rights | 23,151 | 15,699 | |
Derivatives | [1] | 0 | 0 |
Liabilities [Abstract] | |||
Derivatives | [2] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | U.S. Treasury [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Private Label Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Foreign Government [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [3] | 225 | 274 |
Land, land development & construction - real estate | [3] | 9 | |
Commercial and industrial | [3] | 944 | 1,051 |
Mortgage [Abstract] | |||
1-4 Family | [3] | 334 | 339 |
Resort Lending | [3] | 264 | 207 |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | |||
Mortgage [Abstract] | |||
1-4 Family | [4] | 94 | 186 |
Resort Lending | [4] | 1 | 65 |
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [3] | 0 | 0 |
Land, land development & construction - real estate | [3] | 0 | |
Commercial and industrial | [3] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [3] | 0 | 0 |
Resort Lending | [3] | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Real Estate [Member] | |||
Mortgage [Abstract] | |||
1-4 Family | [4] | 0 | 0 |
Resort Lending | [4] | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [3] | 0 | 0 |
Land, land development & construction - real estate | [3] | 0 | |
Commercial and industrial | [3] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [3] | 0 | 0 |
Resort Lending | [3] | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Real Estate [Member] | |||
Mortgage [Abstract] | |||
1-4 Family | [4] | 0 | 0 |
Resort Lending | [4] | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [3] | 225 | 274 |
Land, land development & construction - real estate | [3] | 9 | |
Commercial and industrial | [3] | 944 | 1,051 |
Mortgage [Abstract] | |||
1-4 Family | [3] | 334 | 339 |
Resort Lending | [3] | 264 | 207 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Un-observable Inputs (Level 3) [Member] | Other Real Estate [Member] | |||
Mortgage [Abstract] | |||
1-4 Family | [4] | 94 | 186 |
Resort Lending | [4] | $ 1 | $ 65 |
[1] | Included in accrued income and other assets. | ||
[2] | Included in accrued expenses and other liabilities. | ||
[3] | Only includes impaired loans with specific loss allocations based on collateral value. | ||
[4] | Only includes other real estate with subsequent write downs to fair value. |
Fair Value Disclosures, Changes
Fair Value Disclosures, Changes in Fair Value for Financial Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Changes in fair value for financial assets [Abstract] | |||||
Equity Securities at fair value, net gains (losses) | $ (170) | ||||
Trading securities, net gains (losses) | $ (63) | ||||
Loans held for sale, net gains (losses) | (120) | 713 | |||
Capitalized mortgage loan servicing rights, net gains (losses) | 694 | (2,585) | |||
Impairment charges recognized [Abstract] | |||||
Collateral dependent loans, carrying amount | $ 1,800 | 1,800 | $ 1,900 | ||
Collateral dependent loans, valuation allowance | 800 | 800 | 700 | ||
Additional provision for loan losses on impaired loans | 100 | $ 300 | 500 | 500 | |
Other real estate, carrying amount | 100 | 100 | 300 | ||
Other real estate, valuation allowance | 100 | 100 | $ 100 | ||
Other real estate, additional charge | $ 40 | $ 30 | 40 | 40 | |
Securities [Member] | |||||
Changes in fair value for financial assets [Abstract] | |||||
Equity Securities at fair value, net gains (losses) | (170) | ||||
Trading securities, net gains (losses) | (63) | ||||
Mortgage Loans [Member] | |||||
Changes in fair value for financial assets [Abstract] | |||||
Loans held for sale, net gains (losses) | (120) | 713 | |||
Mortgage Loan Servicing, Net [Member] | |||||
Changes in fair value for financial assets [Abstract] | |||||
Capitalized mortgage loan servicing rights, net gains (losses) | $ 694 | $ (2,585) |
Fair Value Disclosures, Reconci
Fair Value Disclosures, Reconciliation for all Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Capitalized Mortgage Loan Servicing Rights [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||||
Beginning balance | $ 21,848 | $ 14,515 | $ 15,699 | $ 0 |
Change in accounting | 0 | 0 | 0 | 14,213 |
Total gains (losses) realized and unrealized [Abstract] | ||||
Included in results of operations | (198) | (1,090) | 694 | (2,585) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, issuances, settlements, maturities and calls | 1,501 | 1,250 | 6,758 | 3,047 |
Transfers in and/or out of Level 3 | 0 | 0 | 0 | 0 |
Ending balance | 23,151 | 14,675 | 23,151 | 14,675 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at September 30 | (198) | (1,090) | 694 | (2,585) |
As Adjusted [Member] | ||||
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||||
Beginning balance | $ 21,848 | $ 14,515 | $ 15,699 | $ 14,213 |
Fair Value Disclosures, Quantit
Fair Value Disclosures, Quantitative Information About Level 3 (Details) - Significant Un-observable Inputs (Level 3) [Member] | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | ||
Asset Fair Value [Abstract] | ||
Servicing asset fair value | $ 23,151,000 | $ 15,699,000 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Present Value of Net Servicing Revenue [Member] | Float Rate [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 0.0307 | 0.0224 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Minimum [Member] | Cost to Service [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 68 | 66 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Minimum [Member] | Ancillary Income [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 20 | 20 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Minimum [Member] | Present Value of Net Servicing Revenue [Member] | Discount Rate [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 0.1 | 0.0988 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Maximum [Member] | Cost to Service [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 317 | 216 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Maximum [Member] | Ancillary Income [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 36 | 36 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Maximum [Member] | Present Value of Net Servicing Revenue [Member] | Discount Rate [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 0.13 | 0.1100 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Cost to Service [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 81 | 81 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Ancillary Income [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 22 | 23 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Present Value of Net Servicing Revenue [Member] | Discount Rate [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 0.1015 | 0.1011 |
Recurring Basis [Member] | Capitalized Mortgage Loan Servicing Rights [Member] | Weighted Average [Member] | Present Value of Net Servicing Revenue [Member] | Float Rate [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Servicing asset measurement input | 0.0307 | 0.0224 |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | ||
Asset Fair Value [Abstract] | ||
Impaired loans fair value | $ 1,169,000 | $ 1,334,000 |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | Minimum [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Impaired loans measurement input | (0.325) | (0.325) |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | Maximum [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Impaired loans measurement input | 0.250 | 0.250 |
Nonrecurring Basis [Member] | Impaired Loans Commercial [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Impaired loans measurement input | (0.045) | (0.045) |
Nonrecurring Basis [Member] | Impaired Loans Mortgage [Member] | ||
Asset Fair Value [Abstract] | ||
Impaired loans fair value | $ 598,000 | $ 546,000 |
Nonrecurring Basis [Member] | Impaired Loans Mortgage [Member] | Minimum [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Impaired loans measurement input | (0.401) | (0.211) |
Nonrecurring Basis [Member] | Impaired Loans Mortgage [Member] | Maximum [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Impaired loans measurement input | 0.304 | (0.341) |
Nonrecurring Basis [Member] | Impaired Loans Mortgage [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Impaired loans measurement input | (0.019) | (0.027) |
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | ||
Asset Fair Value [Abstract] | ||
Other real estate fair value | $ 95,000 | $ 251,000 |
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | Minimum [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Other real estate measurement input | 0.022 | (0.33) |
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | Maximum [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Other real estate measurement input | 0.341 | 0.445 |
Nonrecurring Basis [Member] | Other Real Estate Mortgage [Member] | Weighted Average [Member] | Sales Comparison Approach [Member] | Adjustment for Differences Between Comparable Sales [Member] | ||
Ranges and Weighted Average [Abstract] | ||
Other real estate measurement input | 0.179 | (0.010) |
Fair Value Disclosures, Differe
Fair Value Disclosures, Difference Between Aggregate Fair Value and Aggregate Remaining Contractual Principal (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Loans held for sale [Abstract] | ||
Aggregate Fair Value | $ 41,325 | $ 39,436 |
Difference | 724 | 844 |
Contractual Principal | $ 40,601 | $ 38,592 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets [Abstract] | |||
Interest bearing deposits - time | $ 593 | $ 2,739 | |
Equity securities at fair value | 285 | 0 | |
Trading securities | 0 | 455 | |
Securities available for sale | 436,957 | 522,925 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 18,355 | 15,543 | |
Liabilities [Abstract] | |||
Other borrowings | 79,688 | 54,600 | |
Subordinated debentures | 39,371 | 35,569 | |
Reciprocal deposits included in deposits with no stated maturity | 44,681 | 12,992 | |
Reciprocal deposits included in deposits with stated maturity | 47,954 | 37,987 | |
Recorded Book Balance [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 35,180 | 36,994 | |
Interest bearing deposits | 17,990 | 17,744 | |
Interest bearing deposits - time | 593 | 2,739 | |
Equity securities at fair value | 285 | ||
Trading securities | 455 | ||
Securities available for sale | 436,957 | 522,925 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 18,355 | 15,543 | |
Net loans and loans held for sale | 2,579,502 | 2,035,666 | |
Accrued interest receivable | 10,791 | 8,609 | |
Derivative financial instruments | 7,734 | 3,080 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [1] | 2,143,552 | 1,845,716 |
Deposits with stated maturity | [1] | 655,091 | 554,818 |
Other borrowings | 79,688 | 54,600 | |
Subordinated debentures | 39,371 | 35,569 | |
Accrued interest payable | 1,463 | 892 | |
Derivative financial instruments | 2,696 | 1,292 | |
Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 35,180 | 36,994 | |
Interest bearing deposits | 17,990 | 17,744 | |
Interest bearing deposits - time | 593 | 2,740 | |
Equity securities at fair value | 285 | ||
Trading securities | 455 | ||
Securities available for sale | 436,957 | 522,925 | |
Net loans and loans held for sale | 2,533,221 | 1,962,937 | |
Accrued interest receivable | 10,791 | 8,609 | |
Derivative financial instruments | 7,734 | 3,080 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 2,143,552 | 1,845,716 | |
Deposits with stated maturity | 649,709 | 551,489 | |
Other borrowings | 79,275 | 54,918 | |
Subordinated debentures | 36,888 | 29,946 | |
Accrued interest payable | 1,463 | 892 | |
Derivative financial instruments | 2,696 | 1,292 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 35,180 | 36,994 | |
Interest bearing deposits | 17,990 | 17,744 | |
Interest bearing deposits - time | 0 | 0 | |
Equity securities at fair value | 285 | ||
Trading securities | 455 | ||
Securities available for sale | 0 | 898 | |
Net loans and loans held for sale | 0 | 0 | |
Accrued interest receivable | 1 | 1 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 2,143,552 | 1,845,716 | |
Deposits with stated maturity | 0 | 0 | |
Other borrowings | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 110 | 48 | |
Derivative financial instruments | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits | 0 | 0 | |
Interest bearing deposits - time | 593 | 2,740 | |
Equity securities at fair value | 0 | ||
Trading securities | 0 | ||
Securities available for sale | 436,957 | 522,027 | |
Net loans and loans held for sale | 41,325 | 39,436 | |
Accrued interest receivable | 2,383 | 2,192 | |
Derivative financial instruments | 7,734 | 3,080 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 0 | 0 | |
Deposits with stated maturity | 649,709 | 551,489 | |
Other borrowings | 79,275 | 54,918 | |
Subordinated debentures | 36,888 | 29,946 | |
Accrued interest payable | 1,353 | 844 | |
Derivative financial instruments | 2,696 | 1,292 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Interest bearing deposits | 0 | 0 | |
Interest bearing deposits - time | 0 | 0 | |
Equity securities at fair value | 0 | ||
Trading securities | 0 | ||
Securities available for sale | 0 | 0 | |
Net loans and loans held for sale | 2,491,896 | 1,923,501 | |
Accrued interest receivable | 8,407 | 6,416 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | 0 | 0 | |
Deposits with stated maturity | 0 | 0 | |
Other borrowings | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Derivative financial instruments | $ 0 | $ 0 | |
[1] | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $44.681 million and $12.992 million at September 30, 2018 and December 31, 2017, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $47.954 million and $37.987 million September 30, 2018 and December 31, 2017, respectively. |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Contingent Liabilities [Abstract] | |||||
Receivables balance decline | $ 2,100 | $ 2,100 | |||
Provision for loss reimbursement on sold loans | 50 | $ 20 | 80 | $ 70 | |
Reserve for loss reimbursement on sold mortgage loans | $ 850 | $ 850 | $ 670 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss ("AOCL"), Summary of Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in AOCL [Roll Forward] | ||||
Balance at beginning of period | $ 264,933 | $ 248,980 | ||
Cumulative effect of change in accounting | 0 | 352 | ||
Balance at beginning of period, as adjusted | 264,933 | 249,332 | ||
Other comprehensive income (loss) before reclassifications | $ (618) | $ 157 | (3,822) | 5,229 |
Amounts reclassified from AOCL | (57) | (2) | (68) | (78) |
Other comprehensive income (loss) | (675) | 155 | (3,890) | 5,151 |
Balance at end of period | 345,204 | 267,710 | 345,204 | 267,710 |
Accumulated Other Comprehensive Loss [Member] | ||||
Changes in AOCL [Roll Forward] | ||||
Balance at beginning of period | (9,214) | (3,812) | (5,999) | (9,108) |
Cumulative effect of change in accounting | 300 | |||
Balance at beginning of period, as adjusted | (8,808) | |||
Balance at end of period | (9,889) | (3,657) | (9,889) | (3,657) |
Unrealized Gains (Losses) on Securities Available For Sale [Member] | ||||
Changes in AOCL [Roll Forward] | ||||
Balance at beginning of period | (4,437) | 1,986 | (470) | (3,310) |
Cumulative effect of change in accounting | 300 | |||
Balance at beginning of period, as adjusted | (3,010) | |||
Other comprehensive income (loss) before reclassifications | (925) | 95 | (4,928) | 5,167 |
Amounts reclassified from AOCL | 0 | (5) | 36 | (81) |
Other comprehensive income (loss) | (925) | 90 | (4,892) | 5,086 |
Balance at end of period | (5,362) | 2,076 | (5,362) | 2,076 |
Disproportionate Tax Effects from Securities Available for Sale [Member] | ||||
Changes in AOCL [Roll Forward] | ||||
Balance at beginning of period | (5,798) | (5,798) | (5,798) | (5,798) |
Cumulative effect of change in accounting | 0 | |||
Balance at beginning of period, as adjusted | (5,798) | |||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Balance at end of period | (5,798) | (5,798) | (5,798) | (5,798) |
Unrealized Gains on Cash Flow Hedges [Member] | ||||
Changes in AOCL [Roll Forward] | ||||
Balance at beginning of period | 1,021 | 0 | 269 | 0 |
Cumulative effect of change in accounting | 0 | |||
Balance at beginning of period, as adjusted | 0 | |||
Other comprehensive income (loss) before reclassifications | 307 | 62 | 1,106 | 62 |
Amounts reclassified from AOCL | (57) | 3 | (104) | 3 |
Other comprehensive income (loss) | 250 | 65 | 1,002 | 65 |
Balance at end of period | $ 1,271 | $ 65 | $ 1,271 | $ 65 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss ("AOCL"), Reclassification Out of Each Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassifications out of AOCL [Abstract] | ||||
Total reclassifications before tax | $ 14,846 | $ 10,018 | $ 36,929 | $ 27,207 |
Interest expense | (4,755) | (2,459) | (11,739) | (6,413) |
Income tax expense | 2,921 | 3,159 | 7,026 | 8,443 |
Reclassifications, net of tax | 11,925 | 6,859 | 29,903 | 18,764 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassifications out of AOCL [Abstract] | ||||
Reclassifications, net of tax | 57 | 2 | 68 | 78 |
Unrealized Gains (Losses) on Securities Available For Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassifications out of AOCL [Abstract] | ||||
Net gains (losses) on securities | 0 | 8 | (45) | 125 |
Net impairment loss recognized in earnings | 0 | 0 | 0 | 0 |
Total reclassifications before tax | 0 | 8 | (45) | 125 |
Income tax expense | 0 | 3 | (9) | 44 |
Reclassifications, net of tax | 0 | 5 | (36) | 81 |
Unrealized Gains on Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassifications out of AOCL [Abstract] | ||||
Interest expense | (73) | (5) | (132) | (5) |
Income tax expense | (16) | (2) | (28) | (2) |
Reclassifications, net of tax | $ (57) | $ (3) | $ (104) | $ (3) |
Mepco Sale (Details)
Mepco Sale (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | May 01, 2017 | |
Asset Purchase Agreement [Abstract] | ||||
Commercial loans | $ 1,112,101 | $ 853,260 | ||
Cash proceeds from sale of assets | $ 0 | $ 33,446 | ||
Mepco [Member] | ||||
Asset Purchase Agreement [Abstract] | ||||
Net payment plan receivables | $ 33,100 | |||
Commercial loans | 500 | |||
Furniture and Equipment | 200 | |||
Other assets | 1,600 | |||
Liabilities assumed | $ 2,000 | |||
Cash proceeds from sale of assets | 33,400 | |||
Gain (loss) on sale of assets | $ 0 |
Recent Acquisition (Details)
Recent Acquisition (Details) - USD ($) $ in Thousands | Apr. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Recent Acquisition [Abstract] | ||||||||
Non-interest expense amount | $ 98 | $ 10 | $ 3,354 | $ 10 | ||||
Decrease in goodwill | (700) | 28,300 | ||||||
Valuation of the assets acquired and liabilities assumed [Abstract] | ||||||||
Goodwill | 28,300 | $ 28,300 | $ 0 | |||||
Estimated useful life | 10 years | |||||||
TCSB Bancorp, Inc. [Member] | ||||||||
Recent Acquisition [Abstract] | ||||||||
Equity interest issued to each holder of common stock under merger agreement (in shares) | 1.1166 | |||||||
Total value of common stock and cash paid in lieu of fractional shares | $ 5 | |||||||
Equity issued under merger agreement (in shares) | 2,710,000 | |||||||
Options issued under merger agreement (in shares) | 190,000 | |||||||
Fair value of equity issued under merger agreement | $ 64,500 | |||||||
Non-interest expense amount | 100 | $ 3,400 | ||||||
Decrease in goodwill | $ (700) | |||||||
Valuation of the assets acquired and liabilities assumed [Abstract] | ||||||||
Cash and cash equivalents | $ 23,521 | |||||||
Interest bearing deposits - time | 4,054 | |||||||
Securities available for sale | 6,066 | |||||||
Federal Home Loan Bank stock | 778 | |||||||
Loans, net | 295,799 | |||||||
Property and equipment, net | 1,067 | |||||||
Capitalized mortgage loan servicing rights | 3,047 | |||||||
Accrued income and other assets | 3,362 | |||||||
Other intangibles | [1] | 5,798 | ||||||
Total assets acquired | 343,492 | |||||||
Deposits | 287,710 | |||||||
Other borrowings | 14,345 | |||||||
Subordinated debentures | 3,768 | |||||||
Accrued expenses and other liabilities | 1,429 | |||||||
Total liabilities assumed | 307,252 | |||||||
Net assets acquired | 36,240 | |||||||
Goodwill | 28,300 | |||||||
Purchase price (fair value of consideration) | 64,540 | |||||||
Fair value of acquired receivables | 292,900 | |||||||
Gross contractual amounts receivable | $ 298,600 | |||||||
TCSB Bancorp, Inc. [Member] | Core Deposits [Member] | ||||||||
Valuation of the assets acquired and liabilities assumed [Abstract] | ||||||||
Estimated fair value of intangible assets | $ 5,800 | |||||||
Estimated useful life | 10 years | |||||||
[1] | Relates to core deposit intangibles (see note #7). |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Asset | Sep. 30, 2017USD ($) | |
Revenue from Contracts with Customers [Abstract] | ||||
Percentage of revenues excluded from ASU 2014-09 | 83.10% | 80.00% | 83.10% | 80.00% |
Number of real estate assets sold during the period | Asset | 0 | |||
Contract assets | $ 0 | $ 0 | ||
Contract liabilities | 0 | 0 | ||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 6,892 | 19,994 | ||
Bank owned life insurance | 237 | 713 | ||
Other | 657 | 1,989 | ||
Total | 2,134 | $ 2,040 | 6,294 | $ 6,139 |
Service Charges on Deposits [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 3,166 | 9,166 | ||
Overdraft Fees [Member] | Retail [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 2,161 | 6,177 | ||
Overdraft Fees [Member] | Business [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 408 | 1,153 | ||
Account Service Charges [Member] | Retail [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 519 | 1,607 | ||
Account Service Charges [Member] | Business [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 78 | 229 | ||
Other Deposit Related Income [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 727 | 2,158 | ||
ATM Fees [Member] | Retail [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 374 | 1,077 | ||
ATM Fees [Member] | Business [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 10 | 26 | ||
Other [Member] | Retail [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 219 | 656 | ||
Other [Member] | Business [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 124 | 399 | ||
Interchange Income [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 2,486 | 7,236 | ||
Investment and Insurance Commissions [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 513 | 1,434 | ||
Asset Management Revenue [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | 274 | 826 | ||
Transaction Based Revenue [Member] | ||||
Disaggregation of Revenue Sources by Attributes [Abstract] | ||||
Revenue from contracts with customers | $ 239 | $ 608 |