Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | CENTRAL PACIFIC FINANCIAL CORP | |
Entity Central Index Key | 701,347 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 29,172,431 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 82,668 | $ 75,318 |
Interest-bearing deposits in other banks | 7,051 | 6,975 |
Investment securities: | ||
Available-for-sale debt securities, at fair value | 1,233,002 | 1,304,066 |
Held-to-maturity debt securities, at amortized cost; fair value of: $146,466 at September 30, 2018 and $189,201 at December 31, 2017 | 152,852 | 191,753 |
Equity securities, at fair value | 885 | 825 |
Total investment securities | 1,386,739 | 1,496,644 |
Loans held for sale | 4,460 | 16,336 |
Loans and leases | 3,978,027 | 3,770,615 |
Allowance for loan and lease losses | (46,826) | (50,001) |
Net loans and leases | 3,931,201 | 3,720,614 |
Premises and equipment, net | 46,184 | 48,348 |
Accrued interest receivable | 16,755 | 16,581 |
Investment in unconsolidated subsidiaries | 15,283 | 7,088 |
Other real estate owned | 414 | 851 |
Mortgage servicing rights | 15,634 | 15,843 |
Core deposit premium | 0 | 2,006 |
Bank-owned life insurance | 157,085 | 156,293 |
Federal Home Loan Bank stock | 10,965 | 7,761 |
Other assets | 54,201 | 53,050 |
Total assets | 5,728,640 | 5,623,708 |
Deposits: | ||
Noninterest-bearing demand | 1,403,534 | 1,395,556 |
Interest-bearing demand | 935,130 | 933,054 |
Savings and money market | 1,503,465 | 1,481,876 |
Time | 1,161,551 | 1,145,868 |
Total deposits | 5,003,680 | 4,956,354 |
Short-term borrowings | 105,000 | 32,000 |
Long-term debt | 92,785 | 92,785 |
Other liabilities | 49,024 | 42,534 |
Total liabilities | 5,250,489 | 5,123,673 |
Equity | ||
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at September 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 29,270,398 at September 30, 2018 and 30,024,222 at December 31, 2017 | 478,721 | 503,988 |
Additional paid-in capital | 87,939 | 86,098 |
Accumulated deficit | (61,406) | (89,036) |
Accumulated other comprehensive income (loss) | (27,103) | (1,039) |
Total shareholders' equity | 478,151 | 500,011 |
Non-controlling interest | 0 | 24 |
Total equity | 478,151 | 500,035 |
Total liabilities and equity | $ 5,728,640 | $ 5,623,708 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value (in dollars) | $ 146,466 | $ 189,201 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares | 185,000,000 | 185,000,000 |
Common stock, issued shares | 29,270,398 | 30,024,222 |
Common stock, outstanding shares | 29,270,398 | 30,024,222 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - 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 and leases | $ 40,531 | $ 36,289 | $ 116,620 | $ 106,777 |
Interest and dividends on investment securities: | ||||
Taxable interest | 8,490 | 8,540 | 26,050 | 25,156 |
Tax-exempt interest | 920 | 966 | 2,786 | 2,919 |
Dividends | 26 | 12 | 44 | 36 |
Interest on deposits in other banks | 109 | 163 | 310 | 298 |
Dividends on Federal Home Loan Bank stock | 60 | 23 | 145 | 100 |
Total interest income | 50,136 | 45,993 | 145,955 | 135,286 |
Interest on deposits: | ||||
Demand | 181 | 177 | 554 | 471 |
Savings and money market | 593 | 281 | 1,421 | 797 |
Time | 4,744 | 2,637 | 12,203 | 6,490 |
Interest on short-term borrowings | 146 | 9 | 237 | 86 |
Interest on long-term debt | 1,147 | 894 | 3,221 | 2,563 |
Total interest expense | 6,811 | 3,998 | 17,636 | 10,407 |
Net interest income | 43,325 | 41,995 | 128,319 | 124,879 |
Provision (credit) for loan and lease losses | (59) | (126) | 262 | (2,488) |
Net interest income after provision (credit) for loan and lease losses | 43,384 | 42,121 | 128,057 | 127,367 |
Other operating income: | ||||
Mortgage banking income | 1,923 | 1,531 | 5,545 | 5,431 |
Service charges on deposit accounts | 2,189 | 2,182 | 6,169 | 6,338 |
Other service charges and fees | 3,286 | 3,185 | 9,697 | 8,986 |
Income from fiduciary activities | 1,159 | 911 | 3,132 | 2,739 |
Equity in earnings of unconsolidated subsidiaries | 71 | 176 | 151 | 388 |
Fees on foreign exchange | 220 | 101 | 708 | 394 |
Investment securities gains (losses) | 0 | 0 | 0 | (1,640) |
Income from bank-owned life insurance | 1,055 | 1,074 | 1,874 | 2,774 |
Loan placement fees | 115 | 86 | 532 | 366 |
Net gain on sales of foreclosed assets | 0 | 19 | 0 | 205 |
Other | 802 | 304 | 1,596 | 1,472 |
Total other operating income | 10,820 | 9,569 | 29,404 | 27,453 |
Other operating expense: | ||||
Salaries and employee benefits | 19,011 | 18,157 | 56,299 | 53,527 |
Net occupancy | 3,488 | 3,404 | 10,114 | 10,153 |
Equipment | 1,048 | 969 | 3,160 | 2,778 |
Amortization of core deposit premium | 669 | 669 | 2,006 | 2,006 |
Communication expense | 903 | 944 | 2,547 | 2,735 |
Legal and professional services | 1,528 | 1,854 | 5,118 | 5,633 |
Computer software expense | 2,672 | 2,346 | 7,244 | 6,788 |
Advertising expense | 612 | 626 | 1,841 | 1,408 |
Foreclosed asset expense | 212 | 24 | 537 | 123 |
Other | 3,996 | 4,518 | 12,515 | 12,155 |
Total other operating expense | 34,139 | 33,511 | 101,381 | 97,306 |
Income before income taxes | 20,065 | 18,179 | 56,080 | 57,514 |
Income tax expense | 4,872 | 6,367 | 12,386 | 20,598 |
Net income | $ 15,193 | $ 11,812 | $ 43,694 | $ 36,916 |
Per common share data: | ||||
Basic earnings per common share (in dollars per share) | $ 0.52 | $ 0.39 | $ 1.48 | $ 1.21 |
Diluted earnings per common share (in dollars per share) | 0.52 | 0.39 | 1.47 | 1.20 |
Cash dividends declared (in dollars per share) | $ 0.21 | $ 0.18 | $ 0.61 | $ 0.52 |
Weighted average common shares outstanding used in computation: | ||||
Basic shares (in shares) | 29,297,465 | 30,300,195 | 29,536,536 | 30,526,260 |
Diluted shares (in shares) | 29,479,812 | 30,514,459 | 29,743,238 | 30,758,989 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 15,193 | $ 11,812 | $ 43,694 | $ 36,916 |
Other comprehensive income (loss), net of tax: | ||||
Net change in unrealized gain (loss) on investment securities | (6,072) | (293) | (24,712) | 4,626 |
Defined benefit plans | 217 | 285 | 623 | 111 |
Total other comprehensive income (loss), net of tax | (5,855) | (8) | (24,089) | 4,737 |
Comprehensive income | $ 9,338 | $ 11,804 | $ 19,605 | $ 41,653 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non- Controlling Interest |
Balance at beginning of period at Dec. 31, 2016 | $ 504,675 | $ 530,932 | $ 84,180 | $ (108,941) | $ (1,521) | $ 25 | |
Balance (in shares) at Dec. 31, 2016 | 30,796,243 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 36,916 | 36,916 | |||||
Other comprehensive loss | 4,737 | 4,737 | |||||
Cash dividends (of $0.61 and $0.52 per share, respectively) | (15,888) | (15,888) | |||||
Net shares of common stock sold by directors' deferred compensation plan | (385) | (385) | |||||
Shares of common stock repurchased and other related costs | $ (21,304) | (21,304) | |||||
Shares of common stock repurchased and other related costs (in shares) | (697,483) | (697,483) | |||||
Share-based compensation | $ 1,120 | 0 | 1,120 | ||||
Share-based compensation (in shares) | 89,988 | ||||||
Net loss from variable interest entity | (1) | (1) | |||||
Balance at end of period at Sep. 30, 2017 | 509,870 | 509,243 | 85,300 | (87,913) | 3,216 | 24 | |
Balance (in shares) at Sep. 30, 2017 | 30,188,748 | ||||||
Balance at beginning of period at Dec. 31, 2016 | 504,675 | $ 530,932 | 84,180 | (108,941) | (1,521) | 25 | |
Balance (in shares) at Dec. 31, 2016 | 30,796,243 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Shares of common stock repurchased and other related costs (in shares) | (864,483) | ||||||
Balance at end of period at Dec. 31, 2017 | 500,035 | $ 503,988 | 86,098 | (89,036) | (1,039) | 24 | |
Balance at end of period (As Adjusted) at Dec. 31, 2017 | $ 500,035 | 503,988 | 86,098 | (88,897) | (1,178) | 24 | |
Balance (in shares) at Dec. 31, 2017 | 30,024,222 | 30,024,222 | |||||
Balance (in shares) (As Adjusted) at Dec. 31, 2017 | 30,024,222 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Impact of the adoption of new accounting standards | $ 0 | 139 | (139) | ||||
Impact of the adoption of new accounting standards | Accounting Standards Updates | (139) | ||||||
Impact of the adoption of new accounting standards | Accounting Standards Updates | 0 | 1,836 | (1,836) | ||||
Net income | 43,694 | 43,694 | |||||
Other comprehensive loss | (24,089) | (24,089) | |||||
Cash dividends (of $0.61 and $0.52 per share, respectively) | (18,039) | (18,039) | |||||
Net shares of common stock sold by directors' deferred compensation plan | (504) | (504) | |||||
Shares of common stock repurchased and other related costs | $ (24,763) | $ (24,763) | |||||
Shares of common stock repurchased and other related costs (in shares) | (849,290) | (849,290) | (849,290) | ||||
Share-based compensation | $ 1,841 | $ 0 | 1,841 | 0 | |||
Share-based compensation (in shares) | 95,466 | ||||||
Net loss from variable interest entity | (24) | (24) | |||||
Balance at end of period at Sep. 30, 2018 | $ 478,151 | $ 478,721 | $ 87,939 | $ (61,406) | $ (27,103) | $ 0 | |
Balance (in shares) at Sep. 30, 2018 | 29,270,398 | 29,270,398 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.61 | $ 0.52 |
Common stock (purchased) sold by directors' deferred compensation plan (in net shares) | 16,950 | 12,020 |
Shares of common stock repurchased | 849,290 | 697,483 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 43,694 | $ 36,916 |
Provision (credit) for loan and lease losses | 262 | (2,488) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 4,700 | 4,768 |
Gain or loss on sale of other real estate, net of write-downs | 431 | (192) |
Amortization of core deposit premium and mortgage servicing rights | 3,419 | 3,549 |
Net amortization and accretion of premium/discounts on investment securities | 8,465 | 8,960 |
Share-based compensation expense | 1,841 | 1,120 |
Net loss on sales of investment securities | 0 | 1,640 |
Net gain on sales of residential mortgage loans | (3,013) | (3,101) |
Proceeds from sales of loans held for sale | 183,967 | 249,866 |
Originations of loans held for sale | (169,078) | (225,712) |
Equity in earnings of unconsolidated subsidiaries | (151) | (388) |
Net increase in cash surrender value of bank-owned life insurance | (792) | (3,256) |
Deferred income taxes | 12,201 | 19,984 |
Net tax benefits from share-based compensation | 185 | 614 |
Net change in other assets and liabilities | (7,925) | (15,701) |
Net cash provided by operating activities | 78,206 | 76,579 |
Cash flows from investing activities: | ||
Proceeds from maturities of and calls on investment securities available-for-sale | 114,508 | 128,588 |
Proceeds from sales of investment securities available-for-sale | 0 | 96,019 |
Purchases of investment securities available-for-sale | (85,334) | (333,242) |
Proceeds from maturities of and calls on investment securities held-to-maturity | 38,491 | 19,455 |
Net loan proceeds (originations) | (190,022) | (63,835) |
Purchases of loan portfolios | (20,867) | (50,725) |
Proceeds from sale of foreclosed loans/other real estate owned | 46 | 286 |
Proceeds from bank-owned life insurance | 0 | 2,921 |
Net purchases of premises and equipment | (2,536) | (4,849) |
Net return of capital from unconsolidated subsidiaries | 614 | 549 |
Contributions to unconsolidated subsidiaries | 0 | 4 |
Net (purchases of) proceeds from redemption of FHLB stock | (3,204) | 5,088 |
Net cash used in investing activities | (148,304) | (199,749) |
Cash flows from financing activities: | ||
Net increase in deposits | 47,326 | 319,296 |
Net increase (decrease) in short-term borrowings | 73,000 | (135,000) |
Cash dividends paid on common stock | (18,039) | (15,888) |
Repurchases of common stock and other related costs | (24,763) | (21,304) |
Net cash provided by financing activities | 77,524 | 147,104 |
Net increase (decrease) in cash and cash equivalents | 7,426 | 23,934 |
Cash and cash equivalents at beginning of period | 82,293 | 84,341 |
Cash and cash equivalents at end of period | 89,719 | 108,275 |
Cash paid during the period for | ||
Interest | 15,969 | 9,097 |
Income taxes | 23 | 7,900 |
Net change in common stock held by directors deferred compensation plan | 504 | 385 |
Net reclassification of loans to foreclosed loans/other real estate owned | $ 40 | $ 154 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K, as amended by our Form 10-K/A for the fiscal year ended December 31, 2017 . In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In December 2015, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, One Hawaii HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment was consolidated into our financial statements. One Hawaii HomeLoans, LLC was terminated in 2017, and final payment of taxes and distributions to members was made in March 2018. We have 50% ownership interests in three other mortgage loan origination and brokerage companies which are accounted for using the equity method and are included in investment in unconsolidated subsidiaries: Gentry HomeLoans, LLC, Haseko HomeLoans, LLC and Island Pacific HomeLoans, LLC. We also had 50% ownership interest in one additional mortgage loan origination and brokerage company, Pacific Access Mortgage, LLC, which was also accounted for using the equity method and was included in investment in unconsolidated subsidiaries. Pacific Access Mortgage, LLC was terminated in 2017, and final payment of taxes and distributions to members was made in March 2018. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity and cost methods were $0.2 million and $15.1 million , respectively, at September 30, 2018 and $0.6 million and $6.5 million , respectively, at December 31, 2017 . Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements. Reclassifications The Company's equity investment securities in the prior year have been reclassified from available-for-sale debt securities to conform to the current year's presentation in accordance with Accounting Standards Update ("ASU") 2016-01, "Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Liabilities . " The reclassification had no impact on the Company's reported net income or shareholders' equity. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2018 In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU replaces most existing revenue recognition guidance in GAAP. ASU 2014-09 was initially effective for the Company's reporting period beginning on January 1, 2017. However, in August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" which deferred the effective date by one year. For financial reporting purposes, the standard allows for either a full retrospective or modified retrospective adoption. The FASB has also issued additional updates to provide further clarification to specific implementation issues associated with ASU 2014-09. These updates include ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations," ASU 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing," ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," and ASU 2016-20 "Technical Corrections and Improvements to Topic 606." Our revenue is comprised of net interest income on financial assets and financial liabilities, which is our main source of income, and other operating income. The scope of ASU 2014-09 explicitly excludes net interest income, as well as other revenues associated with financial assets and liabilities, including loans, leases, securities and derivatives. With respect to other operating income, the Company conducted a comprehensive scoping exercise to determine the revenue streams that are in scope of the guidance. This included reviewing the contracts potentially impacted by the standard in revenue streams such as deposit-related fees, merchant fees, bank card fees, interchange fees, commissions income, trust and asset management fees, foreign exchange fees, and loan placement fees. We adopted ASU 2014-09 and all subsequent amendments to the standard beginning January 1, 2018 under the modified retrospective approach. Based on our analysis, the standard required us to change how we recognize certain recurring revenue streams on a gross versus net basis. This resulted in an increase in other service charges and fees totaling $0.2 million and $0.5 million during the three and nine months ended September 30, 2018 , respectively, and the resultant increase in other operating expense-other for the same amount. These changes did not have an impact to our net income; as such a cumulative effect adjustment to opening accumulated deficit was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior period amounts continue to be recorded in accordance with legacy GAAP. Refer to Note 11 - Revenue from Contracts with Customers for further discussion on the Company's accounting policies for revenue sources within the scope of Accounting Standards Codification ("ASC") 606. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Liabilities . " The amendments in ASU 2016-01 made targeted improvements to GAAP as follows: 1) required 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, 2) simplified the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, 3) eliminated the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities, 4) eliminated 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 on the balance sheet, 5) required public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, 6) required an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, 7) required separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements, and 8) clarified that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company adopted ASU 2016-01 beginning January 1, 2018, which resulted in a reclassification of the Company's equity investment securities portfolio of $0.9 million and $0.8 million as of September 30, 2018 and December 31, 2017 , respectively, from available-for-sale debt securities to equity securities on the Company's consolidated balance sheets. Changes in fair value are recognized in net income. In addition, during the first quarter of 2018, the Company recorded a cumulative effect adjustment which increased opening retained earnings (or reduced opening accumulated deficit) and decreased accumulated other comprehensive income (loss) ("AOCI") by $0.1 million related to the unrealized gains on the equity investment securities portfolio and changes in the fair value of the equity investment securities portfolio were recognized in net income. The Company also engaged a third-party consultant, who used a refined calculation to determine the fair value of our loans held for investment portfolio using the exit price notion, which is included in our fair value disclosures in Note 17 - Fair Value of Financial Assets and Liabilities . The refined calculation did not have a material impact on our fair value disclosures. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provided guidance on eight statement of cash flow classification issues and was intended to reduce the current and future diversity in practice described in the amendments. Current GAAP is either unclear or does not include specific guidance on the eight statement of cash flow classification issues included in ASU 2016-15. The Company adopted ASU 2016-15 effective January 1, 2018. The amendments in ASU 2016-15 did not impact the Company's financial statements as our current practice was consistent with the update. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost." ASU 2017-07 requires an entity to present the service cost component of the net periodic benefit cost in the same line item or items in the statement of income as other employee compensation costs arising from services rendered by the pertinent employees during the period. In addition, only the service cost component is eligible for capitalization. The other components of net benefit costs should be presented in the statement of income separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is used to present the other components, that line item shall be described appropriately. The line items used in the income statement to present the components other than the service cost component shall be disclosed if a Company elects to not present them in a separate line item. The Company adopted ASU 2017-07 effective January 1, 2018. The amendments in ASU 2017-07 did not impact the Company's financial statements. In March 2017, the FASB issued ASU 2017-08, "Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. Although ASU 2017-08 is effective for the Company's reporting period beginning on January 1, 2019, the Company elected to early adopt the standard effective January 1, 2018. The amendments in ASU 2017-08 did not have a material impact to the Company's financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification." ASU 2017-09 was issued to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. Diversity in practice has arisen in part because some entities apply modification accounting under Topic 718 for modifications to terms and conditions that they consider substantive, but do not when they conclude that particular modifications are not substantive. Others apply modification accounting for any change to an award, except for changes that they consider purely administrative in nature. Still others apply modification accounting when a change to an award changes the fair value, the vesting, or the classification of the award. In practice, it appears that the evaluation of a change in fair value, vesting, or classification may be used to evaluate whether a change is substantive. ASU 2017-09 includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The Company adopted ASU 2017-09 effective January 1, 2018. The amendments in ASU 2017-09 did not impact the Company's financial statements as the Company has not historically had any scope modifications and has no plans to do so in the near future. 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." ASU 2018-02 was issued to address certain stranded tax effects in AOCI as a result of H.R.1., commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform"). ASU 2018-02 provides companies the option to reclassify stranded tax effects within AOCI to retained earnings (or accumulated deficit) in each period in which the effect of the change from the newly enacted corporate tax rate is recorded. The amount of the reclassification is calculated on the basis of the difference between the historical and newly enacted tax rates for deferred tax assets and liabilities related to items within AOCI. ASU 2018-02 requires companies to disclose its accounting policy related to releasing income tax effects from accumulated other comprehensive income, whether it has elected to reclassify the stranded tax effects, and information about the other income tax effects that are reclassified. Although ASU 2018-02 is effective for the Company's reporting period beginning on January 1, 2019, the Company elected to early adopt the standard effective January 1, 2018. As a result, the Company recorded cumulative effect adjustments which increased opening retained earnings (or reduced opening accumulated deficit) and decreased AOCI for the stranded tax effects related to the Company's defined benefit pension and supplemental retirement plan obligations and the unrealized loss on the Company's investment securities portfolio by $1.4 million and $0.5 million , respectively. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842) . " ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term of longer than 12 months. The FASB has also made available several practical expedients to assist entities with the adoption of ASU 2016-02. Among other things, these practical expedients require no reassessment of whether existing contracts are or contain leases as well as no reassessment of lease classification for current leases. In July 2018, the FASB released ASU 2018-11, "Leases (Topic 842 Targeted Improvements)," which adds an additional practical expedient that allows entities to elect not to recast comparative periods presented when transitioning to Topic 842. During the quarter ended September 30, 2018 , the Company has engaged a software vendor to assist in the implementation of ASU 2016-02 and has completed testing of completeness and accuracy of the lease population. The ASU is effective for the Company's reporting period beginning January 1, 2019 and must be applied using the modified retrospective approach. Based on preliminary evaluation, the ASU will not have a material impact on our consolidated financial statements as the projected minimum lease payments under existing leases subject to the ASU are less than one percent of our total assets as of September 30, 2018 . In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , " which significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s “incurred loss” guidance delays the recognition of credit losses on loans, leases, held-to-maturity debt securities, loan commitments, and financial guarantees, and instead provides for a current expected credit loss (“CECL”) approach to determine the allowance for credit losses. CECL requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, this guidance modifies the accounting treatment for other-than-temporary impairment for available-for-sale debt securities. Organizations will continue to use judgment to determine which loss estimation methods are appropriate for their circumstances. This guidance requires entities to record a cumulative effect adjustment to the consolidated balance sheet as of the beginning of the first reporting period in which the guidance is effective. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with earlier adoption permitted. As such, the Company will implement CECL for the reporting period beginning January 1, 2020. The new guidance will require significant operational changes, particularly in data collection and analysis. The Company has formed a steering committee that is responsible for oversight of the Company’s implementation strategy for compliance with provisions of the new standard. The Company has also established a project management governance process to manage the implementation across affected disciplines. An external provider specializing in community bank loss driver and CECL reserving model design as well as other related consulting services has been retained, and we have begun to evaluate potential CECL modeling alternatives. As part of this process, the Company has determined potential loan pool segmentation and sub-segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. Further, the Company has engaged a third party economic forecasting service to utilize in developing the Company's reasonable and supportable forecasts under CECL. The Company presently plans to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for interim and annual reporting periods in 2019. While the Company is currently unable to reasonably estimate the impact of adopting this new guidance, management expects the impact of adoption will be significantly influenced by the composition and quality of the Company’s loans and investment securities as well as the economic conditions as of the date of adoption. The Company also anticipates significant changes to the processes and procedures for calculating the reserve for credit losses and continues to evaluate the potential impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The FASB believes that such amendments will: 1) improve the transparency of information about an entity’s risk management activities and 2) simplify the application of hedge accounting. The ASU allows an entity that qualifies for the last-of-layer method to reclassify securities from the held-to-maturity category to the available-for-sale category. The ASU is effective for the the Company's reporting period beginning on January 1, 2019. Early adoption is permitted. We are currently in the process of evaluating the potential impact the amendments will have on our consolidated financial statements, but we do not expect the adoption of the ASU to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The ASU is part of the FASB's disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles. The ASU modifies disclosure requirements on fair value measurements in Topic 820 and is effective for the Company's reporting period beginning January 1, 2020. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." Like ASU 2018-13, this ASU is part of the FASB's disclosure framework project. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for the Company's reporting period beginning January 1, 2021. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an “other asset”). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. ASU 2018-15 is effective for the Company's reporting period beginning January 1, 2020 and early adoption is permitted. We are currently in the process of evaluating the potential impact the amendments will have on our consolidated financial statements, but we do not expect the adoption of the ASU to have a material impact on our consolidated financial statements. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES A summary of our investment portfolio is as follows: (dollars in thousands) Amortized Gross Gross Fair September 30, 2018 Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 87,356 $ — $ (4,339 ) $ 83,017 Commercial - U.S. Government-sponsored entities 65,496 — (2,047 ) 63,449 Total held-to-maturity securities $ 152,852 $ — $ (6,386 ) $ 146,466 Available-for-sale: Debt securities: States and political subdivisions $ 175,495 $ 788 $ (2,731 ) $ 173,552 Corporate securities 65,587 23 (477 ) 65,133 U.S. Treasury obligations and direct obligations of U.S Government agencies 34,566 — (647 ) 33,919 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 763,635 297 (29,575 ) 734,357 Commercial - U.S. Government agencies and sponsored entities 53,618 — (2,413 ) 51,205 Residential - Non-government agencies 42,069 132 (831 ) 41,370 Commercial - Non-government agencies 134,914 321 (1,769 ) 133,466 Total available-for-sale securities $ 1,269,884 $ 1,561 $ (38,443 ) $ 1,233,002 Equity securities $ 712 $ 173 $ — $ 885 (dollars in thousands) Amortized Gross Gross Fair December 31, 2017 Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 100,279 $ 106 $ (2,222 ) $ 98,163 Commercial - U.S. Government-sponsored entities 91,474 — (436 ) 91,038 Total held-to-maturity securities $ 191,753 $ 106 $ (2,658 ) $ 189,201 Available-for-sale: Debt securities: States and political subdivisions $ 178,459 $ 2,041 $ (719 ) $ 179,781 Corporate securities 73,772 582 (76 ) 74,278 U.S. Treasury obligations and direct obligations of U.S Government agencies 25,519 60 (69 ) 25,510 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 808,242 2,230 (9,789 ) 800,683 Commercial - U.S. Government agencies and sponsored entities 40,012 — (287 ) 39,725 Residential - Non-government agencies 45,679 1,084 — 46,763 Commercial - Non-government agencies 135,058 2,461 (193 ) 137,326 Total available-for-sale securities $ 1,306,741 $ 8,458 $ (11,133 ) $ 1,304,066 Equity securities $ 686 $ 139 $ — $ 825 The amortized cost and estimated fair value of investment securities at September 30, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 (dollars in thousands) Amortized Cost Fair Value Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 87,356 $ 83,017 Commercial - U.S. Government-sponsored entities 65,496 63,449 Total held-to-maturity securities $ 152,852 $ 146,466 Available-for-sale: Due in one year or less $ 63,878 $ 63,916 Due after one year through five years 103,852 103,115 Due after five years through ten years 50,639 49,629 Due after ten years 57,279 55,944 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 763,635 734,357 Commercial - U.S. Government agencies and sponsored entities 53,618 51,205 Residential - Non-government agencies 42,069 41,370 Commercial - Non-government agencies 134,914 133,466 Total available-for-sale securities $ 1,269,884 $ 1,233,002 Equity securities $ 712 $ 885 We did not sell any available-for-sale securities during the three and nine months ended September 30, 2018 . In the second quarter of 2017, we completed an investment portfolio repositioning strategy designed to enhance potential prospective earnings and improve net interest margin. In connection with the repositioning, we sold $97.7 million in lower-yielding available-for-sale securities, and purchased $97.4 million in higher yielding, longer duration investment securities. The investment securities sold had an average yield of 1.91% . Gross proceeds of the sale of $96.0 million were immediately reinvested back into investment securities with an average yield of 2.57% . The new securities were classified in the available-for-sale portfolio. There were no gross realized gains on the sale of the investment securities. Gross realized losses on the sale of the investment securities were $1.6 million . The specific identification method was used as the basis for determining the cost of all securities sold. We did not sell any available-for-sale securities during the three months ended March 31, 2017 and September 30, 2017. Investment securities of $1.00 billion and $1.08 billion at September 30, 2018 and December 31, 2017 , respectively, were pledged to secure public funds on deposit and other long-term debt and short-term borrowings. Provided below is a summary of the 379 and 223 investment securities which were in an unrealized or unrecognized loss position at September 30, 2018 and December 31, 2017 , respectively, aggregated by major security type and length of time in a continuous unrealized or unrecognized loss position. Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2018 Debt securities: States and political subdivisions $ 87,069 $ (1,225 ) $ 26,654 $ (1,506 ) $ 113,723 $ (2,731 ) Corporate securities 54,275 (301 ) 5,130 (176 ) 59,405 (477 ) U.S. Treasury obligations and direct obligations of U.S Government agencies 31,220 (602 ) 2,699 (45 ) 33,919 (647 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 285,808 (7,950 ) 513,681 (25,964 ) 799,489 (33,914 ) Residential - Non-government agencies 24,690 (831 ) — — 24,690 (831 ) Commercial - U.S. Government agencies and sponsored entities 57,509 (1,873 ) 57,145 (2,587 ) 114,654 (4,460 ) Commercial - Non-government agencies 93,778 (1,769 ) — — 93,778 (1,769 ) Total temporarily impaired securities $ 634,349 $ (14,551 ) $ 605,309 $ (30,278 ) $ 1,239,658 $ (44,829 ) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Debt securities: States and political subdivisions $ 53,811 $ (305 ) $ 15,403 $ (414 ) $ 69,214 $ (719 ) Corporate securities — — 5,307 (76 ) 5,307 (76 ) U.S. Treasury obligations and direct obligations of U.S Government agencies 10,740 (69 ) — — 10,740 (69 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 335,883 (3,372 ) 340,219 (8,639 ) 676,102 (12,011 ) Residential - Non-government agencies — — — — — — Commercial - U.S. Government-sponsored entities 130,763 (723 ) — — 130,763 (723 ) Commercial - Non-government agencies 28,490 (193 ) — — 28,490 (193 ) Total temporarily impaired securities $ 559,687 $ (4,662 ) $ 360,929 $ (9,129 ) $ 920,616 $ (13,791 ) Other-Than-Temporary Impairment ("OTTI") Management evaluates investment securities for OTTI on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation, to determine whether the unrealized losses on investment securities, or the decline in their value below amortized cost is "other-than-temporary." The term "other-than-temporary" is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value are not necessarily favorable, or that there is a general lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. In conducting this assessment, for securities in an unrealized loss position we evaluate a number of factors including, but not limited to: • The length of time and the extent to which fair value has been less than the amortized cost basis; • Adverse conditions specifically related to the security, an industry, or a geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments; • Failure of the issuer to make scheduled interest or principal payments; • Any rating changes by a rating agency; and • Recoveries or additional declines in fair value subsequent to the balance sheet date. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding impairment charge to earnings is recognized for anticipated credit losses. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, the Company compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. The declines in market value were primarily attributable to changes in interest rates and volatility in the credit and financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not consider our investments to be other-than-temporarily impaired. Visa and MasterCard Class B Common Stock As of September 30, 2018 , the Company owns 34,631 shares and 11,170 shares of Class B common stock of Visa, Inc. ("Visa") and MasterCard, Inc. ("MasterCard"), respectively. Due to transfer restrictions and the lack of readily determinable fair values of Class B common stock of Visa and MasterCard, the Company chooses to carry the shares on the Company's consolidated balance sheets at zero cost basis. |
LOANS AND LEASES
LOANS AND LEASES | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
LOANS AND LEASES | 4. LOANS AND LEASES Loans and leases, excluding loans held for sale, consisted of the following: (dollars in thousands) September 30, 2018 December 31, 2017 Commercial, financial and agricultural $ 564,900 $ 503,738 Real estate: Construction 69,065 64,525 Residential mortgage 1,388,925 1,337,193 Home equity 455,599 412,230 Commercial mortgage 1,034,951 979,239 Consumer 462,198 470,819 Leases 170 362 Gross loans and leases 3,975,808 3,768,106 Net deferred costs 2,219 2,509 Total loans and leases, net of deferred costs $ 3,978,027 $ 3,770,615 During the nine months ended September 30, 2018 , we foreclosed on one loan totaling $40 thousand , which was sold at a small premium to book value. During the nine months ended September 30, 2017 , we foreclosed on one loan totaling $0.1 million . During the nine months ended September 30, 2018 and 2017 , we did not transfer any loans to the held-for-sale category. We did not sell any portfolio loans during the nine months ended September 30, 2018 and 2017 . In May 2018 , we purchased an auto loan portfolio totaling $20.6 million which included a $0.1 million premium over the $20.5 million outstanding balance. At the time of purchase, the auto loans had a weighted average remaining term of 63 months and a weighted average yield, net of the premium paid and servicing costs, of 3.89% . In November 2017 , we purchased an auto loan portfolio totaling $33.1 million which included a $1.1 million premium over the $31.9 million outstanding balance. At the time of purchase, the auto loans had a weighted average remaining term of 76 months and a weighted average yield, net of the premium paid and servicing costs, of 3.04% . In May 2017 , we purchased an auto loan portfolio totaling $26.6 million which included a $0.9 million premium over the $25.7 million outstanding balance. At the time of purchase, the auto loans had a weighted average remaining term of 77 months and a weighted average yield, net of the premium paid and servicing costs, of 2.67% . In March 2017 , we purchased an auto loan portfolio totaling $24.1 million which included a $0.4 million premium over the $23.8 million outstanding balance. At the time of purchase, the auto loans had a weighted average remaining term of 55 months and a weighted average yield, net of the premium paid and servicing costs, of 2.60% . Impaired Loans The following tables present by class, the balance in the allowance for loan and lease losses (the "Allowance") and the recorded investment in loans and leases based on the Company's impairment measurement method as of September 30, 2018 and December 31, 2017 : Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total September 30, 2018 Allowance: Individually evaluated for impairment $ — $ — $ 87 $ — $ — $ — $ — $ 87 Collectively evaluated for impairment 7,867 1,291 14,048 3,718 13,470 6,345 — 46,739 Total ending balance $ 7,867 $ 1,291 $ 14,135 $ 3,718 $ 13,470 $ 6,345 $ — $ 46,826 Loans and leases: Individually evaluated for impairment $ 388 $ 2,355 $ 12,660 $ 415 $ 3,439 $ — $ — $ 19,257 Collectively evaluated for impairment 564,512 66,710 1,376,265 455,184 1,031,512 462,198 170 3,956,551 Subtotal 564,900 69,065 1,388,925 455,599 1,034,951 462,198 170 3,975,808 Net deferred costs (income) 464 (424 ) 3,744 — (1,501 ) (64 ) — 2,219 Total loans and leases, net of deferred costs (income) $ 565,364 $ 68,641 $ 1,392,669 $ 455,599 $ 1,033,450 $ 462,134 $ 170 $ 3,978,027 Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total December 31, 2017 Allowance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 7,594 1,835 14,328 3,317 16,801 6,126 — 50,001 Total ending balance $ 7,594 $ 1,835 $ 14,328 $ 3,317 $ 16,801 6,126 $ — $ 50,001 Loans and leases: Individually evaluated for impairment $ 491 $ 2,597 $ 13,862 $ 416 $ 3,914 $ — $ — $ 21,280 Collectively evaluated for impairment 503,247 61,928 1,323,331 411,814 975,325 470,819 362 3,746,826 Subtotal 503,738 64,525 1,337,193 412,230 979,239 470,819 362 3,768,106 Net deferred costs (income) 281 (285 ) 4,028 — (1,442 ) (73 ) — 2,509 Total loans and leases, net of deferred costs (income) $ 504,019 $ 64,240 $ 1,341,221 $ 412,230 $ 977,797 $ 470,746 $ 362 $ 3,770,615 There was one impaired loan with an allowance of $0.1 million recorded as of September 30, 2018 . There were no impaired loans with an allowance recorded as of December 31, 2017 . The following table presents by class, information related to impaired loans as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Unpaid Recorded Allowance Unpaid Recorded Allowance (dollars in thousands) Impaired loans: Commercial, financial and agricultural $ 498 $ 388 $ — $ 602 $ 491 $ — Real estate: Construction 7,705 2,355 — 7,947 2,597 — Residential mortgage 13,689 12,660 87 14,920 13,862 — Home equity 415 415 — 416 416 — Commercial mortgage 3,439 3,439 — 3,914 3,914 — Total impaired loans $ 25,746 $ 19,257 $ 87 $ 27,799 $ 21,280 $ — The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (dollars in thousands) Average Interest Average Interest Average Interest Average Interest Commercial, financial and agricultural $ 399 $ 12 $ 1,212 $ 3 $ 498 $ 17 $ 1,500 $ 7 Real estate: Construction 2,382 30 2,704 26 2,476 84 2,800 74 Residential mortgage 12,857 123 16,444 189 13,208 419 17,951 1,356 Home equity 447 1,418 — 516 1,343 1 Commercial mortgage 3,483 36 4,440 179 3,653 110 5,143 272 Total $ 19,568 $ 201 $ 26,218 $ 397 $ 20,351 $ 630 $ 28,737 $ 1,710 Foreclosure Proceedings The Company had $0.1 million of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at September 30, 2018 . The Company had $40 thousand of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at December 31, 2017 . Aging Analysis of Accruing and Non-Accruing Loans and Leases For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past due loans and leases as of September 30, 2018 and December 31, 2017 : (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total September 30, 2018 Commercial, financial and agricultural $ 1,821 $ 326 $ — $ — $ 2,147 $ 563,217 $ 565,364 Real estate: Construction — — — — — 68,641 68,641 Residential mortgage 98 708 — 2,197 3,003 1,389,666 1,392,669 Home equity 1,582 — — 415 1,997 453,602 455,599 Commercial mortgage 12 — — — 12 1,033,438 1,033,450 Consumer 1,849 604 333 — 2,786 459,348 462,134 Leases — — — — — 170 170 Total $ 5,362 $ 1,638 $ 333 $ 2,612 $ 9,945 $ 3,968,082 $ 3,978,027 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total December 31, 2017 Commercial, financial and agricultural $ 410 $ 355 $ — $ — $ 765 $ 503,254 $ 504,019 Real estate: Construction — — — — — 64,240 64,240 Residential mortgage 4,037 2,127 49 2,280 8,493 1,332,728 1,341,221 Home equity 105 264 — 416 785 411,445 412,230 Commercial mortgage — — — 79 79 977,718 977,797 Consumer 2,126 1,056 515 — 3,697 467,049 470,746 Leases — — — — — 362 362 Total $ 6,678 $ 3,802 $ 564 $ 2,775 $ 13,819 $ 3,756,796 $ 3,770,615 Modifications Troubled debt restructurings ("TDRs") included in nonperforming assets at September 30, 2018 consisted of three Hawaii residential mortgage loans with a combined principal balance of $0.4 million . Concessions made to the original contractual terms of these loans consisted primarily of the deferral of interest and/or principal payments due to deterioration in the borrowers' financial condition. The principal balances on these TDRs had matured and/or were in default at the time of restructure, and we have no commitments to lend additional funds to any of these borrowers. There were $11.3 million of TDRs still accruing interest at September 30, 2018 , none of which were more than 90 days delinquent. At December 31, 2017 , there were $12.6 million of TDRs still accruing interest, none of which were more than 90 days delinquent. Some loans modified in a TDR may already be on nonaccrual status and partial charge-offs may have already been taken against the outstanding loan balance. Thus, these loans have already been identified as impaired and have already been evaluated under the Company's allowance for loan and lease losses (the "Allowance") methodology. Loans that were not on nonaccrual status when modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. The loans modified in a TDR did not have a material effect on our provision for loan and lease losses (the "Provision") and the Allowance during the three and nine months ended September 30, 2018 . The following table presents by class, information related to loans modified in a TDR during the period presented. (dollars in thousands) Number of Recorded Increase in the Three Months Ended September 30, 2018 Real estate: Residential mortgage 3 $ 575 $ — Total 3 $ 575 $ — Nine Months Ended September 30, 2018 Real estate: Residential mortgage 3 $ 575 $ — Total 3 $ 575 $ — Three Months Ended September 30, 2017 Real estate: Residential mortgage 1 70 — Total 1 $ 70 $ — Nine Months Ended September 30, 2017 Commercial, financial and agricultural 1 $ 632 $ — Real estate: Residential mortgage 1 70 — Total 2 $ 702 $ — No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2018 and 2017 . Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases by credit risk. This analysis includes non-homogeneous loans and leases, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention. Loans and leases classified as special mention, while still adequately protected by the borrower's capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management's close attention so as to avoid becoming undue or unwarranted credit exposures. Substandard. Loans and leases classified as substandard are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Loss. Loans and leases classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible. Loans and leases not meeting the criteria above are considered to be pass-rated. The following table presents by class and credit indicator, the recorded investment in the Company's loans and leases as of September 30, 2018 and December 31, 2017 : (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total September 30, 2018 Commercial, financial and agricultural $ 535,574 $ 11,496 $ 17,830 $ — $ 564,900 $ 464 $ 565,364 Real estate: Construction 69,065 — — — 69,065 (424 ) 68,641 Residential mortgage 1,386,630 — 2,295 — 1,388,925 3,744 1,392,669 Home equity 455,184 — 415 — 455,599 — 455,599 Commercial mortgage 1,022,854 10,982 1,115 — 1,034,951 (1,501 ) 1,033,450 Consumer 461,865 — 135 198 462,198 (64 ) 462,134 Leases 170 — — — 170 — 170 Total $ 3,931,342 $ 22,478 $ 21,790 $ 198 $ 3,975,808 $ 2,219 $ 3,978,027 (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total December 31, 2017 Commercial, financial and agricultural $ 474,995 $ 7,543 $ 21,200 $ — $ 503,738 $ 281 $ 504,019 Real estate: Construction 55,646 8,879 — — 64,525 (285 ) 64,240 Residential mortgage 1,334,760 — 2,433 — 1,337,193 4,028 1,341,221 Home equity 411,814 — 416 — 412,230 — 412,230 Commercial mortgage 955,865 12,735 10,639 — 979,239 (1,442 ) 977,797 Consumer 470,243 — 305 271 470,819 (73 ) 470,746 Leases 362 — — — 362 — 362 Total $ 3,703,685 $ 29,157 $ 34,993 $ 271 $ 3,768,106 $ 2,509 $ 3,770,615 |
ALLOWANCE FOR LOAN AND LEASE LO
ALLOWANCE FOR LOAN AND LEASE LOSSES | 9 Months Ended |
Sep. 30, 2018 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | 5. ALLOWANCE FOR LOAN AND LEASE LOSSES The following table presents by class, the activity in the Allowance for the periods indicated: Real Estate Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total (dollars in thousands) Three Months Ended September 30, 2018 Beginning balance $ 7,525 $ 1,811 $ 14,252 $ 3,168 $ 15,094 $ 6,331 $ — $ 48,181 Provision (credit) for loan and lease losses 495 (526 ) (168 ) 544 (1,632 ) 1,228 — (59 ) 8,020 1,285 14,084 3,712 13,462 7,559 — 48,122 Charge-offs 731 — — — — 1,762 — 2,493 Recoveries 578 6 51 6 8 548 — 1,197 Net charge-offs (recoveries) 153 (6 ) (51 ) (6 ) (8 ) 1,214 — 1,296 Ending balance $ 7,867 $ 1,291 $ 14,135 $ 3,718 $ 13,470 $ 6,345 $ — $ 46,826 Three Months Ended September 30, 2017 Beginning balance $ 8,598 $ 3,212 $ 14,034 $ 3,370 $ 18,184 $ 5,430 $ — $ 52,828 Provision (credit) for loan and lease losses (690 ) (207 ) (526 ) (134 ) (541 ) 1,972 — (126 ) 7,908 3,005 13,508 3,236 17,643 7,402 — 52,702 Charge-offs 429 — — — — 1,709 — 2,138 Recoveries 165 40 124 6 7 311 — 653 Net charge-offs (recoveries) 264 (40 ) (124 ) (6 ) (7 ) 1,398 — 1,485 Ending balance $ 7,644 $ 3,045 $ 13,632 $ 3,242 $ 17,650 $ 6,004 $ — $ 51,217 Real Estate Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total (dollars in thousands) Nine Months Ended September 30, 2018 Beginning balance $ 7,594 $ 1,835 $ 14,328 $ 3,317 $ 16,801 $ 6,126 $ — $ 50,001 Provision (credit) for loan and lease losses 1,227 (1,749 ) (291 ) 383 (3,383 ) 4,075 — 262 8,821 86 14,037 3,700 13,418 10,201 — 50,263 Charge-offs 1,971 — — — — 5,424 — 7,395 Recoveries 1,017 1,205 98 18 52 1,568 — 3,958 Net charge-offs (recoveries) 954 (1,205 ) (98 ) (18 ) (52 ) 3,856 — 3,437 Ending balance $ 7,867 $ 1,291 $ 14,135 $ 3,718 $ 13,470 $ 6,345 $ — $ 46,826 Nine Months Ended September 30, 2017 Beginning balance $ 8,637 $ 4,224 $ 15,055 $ 3,502 $ 19,104 $ 6,109 $ — $ 56,631 Provision (credit) for loan and lease losses (403 ) (1,296 ) (2,280 ) (295 ) (1,600 ) 3,386 — (2,488 ) 8,234 2,928 12,775 3,207 17,504 9,495 — 54,143 Charge-offs 1,266 — — — — 4,676 — 5,942 Recoveries 676 117 857 35 146 1,185 — 3,016 Net charge-offs (recoveries) 590 (117 ) (857 ) (35 ) (146 ) 3,491 — 2,926 Ending balance $ 7,644 $ 3,045 $ 13,632 $ 3,242 $ 17,650 $ 6,004 $ — $ 51,217 Loans held for sale and other real estate assets are not included in our assessment of the Allowance. Our Provision was a credit of $0.1 million and a debit of $0.3 million in the three and nine months ended September 30, 2018 , respectively, compared to a credit of $0.1 million and a credit of $2.5 million in the three and nine months ended September 30, 2017 , respectively. |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 9 Months Ended |
Sep. 30, 2018 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 6. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES The components of the Company's investments in unconsolidated subsidiaries were as follows: (dollars in thousands) September 30, 2018 December 31, 2017 Investments in low income housing tax credit partnerships $ 12,267 $ 3,608 Trust preferred investments 2,792 2,792 Investments in affiliates 170 634 Other 54 54 Total $ 15,283 $ 7,088 The Company had $9.5 million in unfunded low income housing commitments as of September 30, 2018 compared to $2.6 million at December 31, 2017 . The Company expects to fund $1.9 million in 2018, $4.0 million in 2019 , and $3.6 million in 2020. Investments in low income housing tax credit ("LIHTC") partnerships are accounted for using the cost method. The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three and nine months ended September 30, 2018 and September 30, 2017 : (dollars in thousands) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Cost method: Amortization expense recognized in other operating expense $ 114 $ 174 $ 341 $ 630 Tax credits recognized in income tax expense 152 218 457 744 |
CORE DEPOSIT PREMIUM AND MORTGA
CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2018 | |
OTHER INTANGIBLE ASSETS | |
CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS | 7. CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS The following table presents changes in core deposit premium and mortgage servicing rights for the periods presented: (dollars in thousands) Core Mortgage Total Balance, January 1, 2017 $ 4,680 $ 15,779 $ 20,459 Additions — 1,857 1,857 Amortization (2,006 ) (1,543 ) (3,549 ) Balance, September 30, 2017 $ 2,674 $ 16,093 $ 18,767 Balance, January 1, 2018 $ 2,006 $ 15,843 $ 17,849 Additions — 1,204 1,204 Amortization (2,006 ) (1,413 ) (3,419 ) Balance, September 30, 2018 $ — $ 15,634 $ 15,634 Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $0.4 million and $1.2 million for the three and nine months ended September 30, 2018 , respectively, compared to $0.6 million and $1.9 million for the three and nine months ended September 30, 2017 , respectively. Amortization of mortgage servicing rights was $0.5 million and $1.4 million , respectively, for the three and nine months ended September 30, 2018 , compared to $0.5 million and $1.5 million for the three and nine months ended September 30, 2017 , respectively. The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Nine Months Ended Nine Months Ended (dollars in thousands) September 30, 2018 September 30, 2017 Fair market value, beginning of period $ 17,161 $ 18,087 Fair market value, end of period 18,315 16,777 Weighted average discount rate 9.5 % 9.5 % Forecasted constant prepayment rate assumption 14.0 16.5 The gross carrying value and accumulated amortization related to our core deposit premium and mortgage servicing rights are presented below: September 30, 2018 December 31, 2017 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Core deposit premium $ 44,642 $ (44,642 ) $ — $ 44,642 $ (42,636 ) $ 2,006 Mortgage servicing rights 65,605 (49,971 ) 15,634 64,401 (48,558 ) 15,843 Total $ 110,247 $ (94,613 ) $ 15,634 $ 109,043 $ (91,194 ) $ 17,849 Based on the mortgage servicing rights held as of September 30, 2018 , estimated amortization expense for the remainder of fiscal year 2018 , the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) 2018 (remainder) $ 450 2019 1,566 2020 1,292 2021 1,087 2022 919 2023 789 Thereafter 9,531 $ 15,634 We perform an impairment assessment of our mortgage servicing rights whenever events or changes in circumstance indicate that the carrying value of the asset may not be recoverable. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 8. DERIVATIVES We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates including interest rate swaps, interest rate lock commitments and forward sale commitments. We measure all derivatives at fair value on our consolidated balance sheet. In each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as cash flow hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. At September 30, 2018 and December 31, 2017 , we were not party to any derivatives designated as part of a fair value or cash flow hedge. Interest Rate Lock and Forward Sale Commitments We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate locks and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At September 30, 2018 , we were a party to interest rate lock and forward sale commitments on $15.5 million and $19.9 million of mortgage loans, respectively. The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets: Derivatives Financial Instruments Not Designated as Hedging Instruments Asset Derivatives Liability Derivatives Fair Value at Fair Value at (dollars in thousands) Balance Sheet Location September 30, December 31, September 30, December 31, Interest rate lock and forward sale commitments Other assets / other liabilities $ 92 $ 35 $ 29 $ 49 The following table presents the impact of derivative instruments and their location within the consolidated statements of income: Derivatives Financial Instruments Location of Gain (Loss) Amount of Gain (Loss) (dollars in thousands) Three Months Ended September 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income $ 91 Loans held for sale Other income (6 ) Three Months Ended September 30, 2017 Interest rate lock and forward sale commitments Mortgage banking income (21 ) Loans held for sale Other income (3 ) Nine Months Ended September 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income 76 Loans held for sale Other income (6 ) Nine Months Ended September 30, 2017 Interest rate lock and forward sale commitments Mortgage banking income (148 ) Loans held for sale Other income — |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9. SHORT-TERM BORROWINGS AND LONG-TERM DEBT Federal Home Loan Bank Advances and Other Borrowings The bank is a member of the Federal Home Loan Bank of Des Moines (the "FHLB") and maintained a $1.67 billion line of credit as of September 30, 2018 , compared to $1.50 billion at December 31, 2017 . At September 30, 2018 , $1.56 billion was undrawn under this arrangement, compared to $1.47 billion at December 31, 2017 . Short-term borrowings under this arrangement totaled $105.0 million at September 30, 2018 , compared to $32.0 million at December 31, 2017 . There were no long-term borrowings under this arrangement at September 30, 2018 and December 31, 2017 . FHLB advances available at September 30, 2018 were secured by certain real estate loans with a carrying value of $2.26 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB. At September 30, 2018 and December 31, 2017 , our bank had additional unused borrowings available at the Federal Reserve discount window of $76.5 million and $73.0 million , respectively. As of September 30, 2018 and December 31, 2017 , certain commercial and commercial real estate loans with a carrying value totaling $124.6 million and $129.2 million , respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans. Subordinated Debentures In October 2003, we created two wholly-owned statutory trusts, CPB Capital Trust II ("Trust II") and CPB Statutory Trust III ("Trust III"). Trust II issued $20.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 2.85% and maturing on October 7, 2033. The principal assets of Trust II are $20.6 million of the Company's subordinated debentures with an identical interest rate and maturity as the Trust II trust preferred securities. Trust II issued $0.6 million of common securities to the Company. Trust III issued $20.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 2.85% and maturing on December 17, 2033. The principal assets of Trust III are $20.6 million of the Company's subordinated debentures with an identical interest rate and maturity as the Trust III trust preferred securities. Trust III issued $0.6 million of common securities to the Company. In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV ("Trust IV"). Trust IV issued $30.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 2.45% and maturing on December 15, 2034. The principal assets of Trust IV are $30.9 million of the Company's subordinated debentures with an identical interest rate and maturity as the Trust IV trust preferred securities. Trust IV issued $0.9 million of common securities to the Company. In December 2004, we created a wholly-owned statutory trust, CPB Statutory Trust V ("Trust V"). Trust V issued $20.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 1.87% and maturing on December 15, 2034. The principal assets of Trust V are $20.6 million of the Company's subordinated debentures with an identical interest rate and maturity as the Trust V trust preferred securities. Trust V issued $0.6 million of common securities to the Company. The trust preferred securities, the subordinated debentures that are the assets of Trusts II, III, IV and V and the common securities issued by Trusts II, III, IV and V are redeemable in whole or in part on any interest payment date on or after October 7, 2008 for Trusts II and III, and on or after December 15, 2009 for Trust IV and V, or at any time in whole but not in part within 90 days following the occurrence of certain events. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of each trust's obligations with respect to its trust preferred securities. Subject to certain exceptions and limitations, we may elect from time to time to defer interest payments on the subordinated debentures, which would result in a deferral of distribution payments on the related trust preferred securities, for up to 20 consecutive quarterly periods without default or penalty. The subordinated debentures may be included in Tier 1 capital, with certain limitations applicable, under current regulatory guidelines and interpretations. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 11. REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" , establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts to provide goods or services to its customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services. Revenue is recognized as performance obligations are satisfied. The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. Our principal source of revenue is derived from interest income on financial instruments, such as our loan and investment securities portfolios, as well as revenue related to our mortgage banking activities. These revenue-generating transactions are out of scope of ASC 606, but are subject to other GAAP and discussed elsewhere within our disclosures. We also generate other revenue in connection with our broad range of banking products and financial services. Descriptions of our other revenue-generating activities that are within the scope of ASC 606, which are presented in our consolidated statements of income as components of other operating income are as follows: Service charges on deposit accounts Revenue from service charges on deposit accounts includes general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as stop payment fees). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Other Service Charges and Fees Revenue from other service charges and fees includes cards and payments income, safe deposit rental income and other service charges, commissions and fees. Cards and payments income includes interchange fees from debit cards processed through card association networks, merchant services, and other card related services. Interchange rates are generally set by the credit card associations and based on purchase volumes and other factors. Interchange fees are recognized as transactions occur. Interchange expenses related to cards and payments income are presented gross in other operating expense. Merchant services income represents account management fees and transaction fees charged to merchants for the processing of card association network transactions. Merchant services revenue is recognized as transactions occur, or as services are performed. Other service charges, commissions and fees include automated teller machines ("ATM") surcharge and interchange fees, bill payment fees, cashier’s check and money order fees, wire transfer fees, loan brokerage fees, and commissions on sales of insurance, broker-dealer products, letters of credit, and travelers’ checks. Revenue from these fees and commissions is recorded in a manner that reflects the timing of when transactions occur, and as services are provided. Based on the nature of the commission agreement with the broker-dealer and each insurance provider, we may recognize revenue from broker-dealer and insurance commissions over time or at a point-in-time as our performance obligation is satisfied. Income from Fiduciary Activities Income from fiduciary activities includes fees from wealth management, trust, custodial and escrow services provided to individual and institutional customers. Revenue is generally recognized monthly based on a minimum annual fee and/or the market value of assets in custody. Additional fees are recognized for transactional activity. Revenue from trade execution and brokerage services is earned through commissions from trade execution on behalf of clients. Revenue from these transactions is recognized at the trade date. Any ongoing service fees are recognized on a monthly basis as services are performed. Fees on Foreign Exchange The Company provides foreign currency exchange services to customers, whereby cash can be converted to different foreign currencies, and vice versa. As a result of the services, a gain or loss is recognized on foreign currency transactions, as well as income related to commissions and fees earned on each transaction. Revenue from the commissions and fees earned on the transactions fall within the scope of ASC 606, and is recorded in a manner that reflects the timing of when transactions occur, and as services are provided. Realized and unrealized gains or losses related to foreign currency are out of scope of ASC 606. Loan Placement Fees Loan placement fees primarily represent revenues earned by the Company for loan placement and underwriting. Revenues for these services are recorded at a point-in-time, upon completion of a contractually identified transaction, or when an advisory opinion is provided. Gain on Sales of Foreclosed Assets The Company records a gain or loss on the sale of a foreclosed property when control of the property transfers to the Company, which typically occurs at the time the deed is executed. The Company does not finance the sale of the foreclosed property. The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606 for the nine months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Other operating income: In-scope of ASC 606 Service charges on deposit accounts $ 2,189 $ 2,182 $ 6,169 $ 6,338 Other service charges and fees 2,778 2,766 8,169 7,490 Income on fiduciary activities 1,159 911 3,132 2,739 Fees on foreign exchange 26 29 86 112 Loan placement fees 115 86 532 366 Net gain on sales of foreclosed assets — 19 — 205 In-scope other operating income 6,267 5,993 18,088 17,250 Out-of-scope other operating income 4,553 3,576 11,316 10,203 Total other operating income $ 10,820 $ 9,569 $ 29,404 $ 27,453 |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
EQUITY | 10. EQUITY As a Hawaii state-chartered bank, Central Pacific Bank may only pay dividends to the extent it has retained earnings as defined under Hawaii banking law ("Statutory Retained Earnings"), which differs from GAAP retained earnings. As of September 30, 2018 , the bank had Statutory Retained Earnings of $87.5 million . Dividends are payable at the discretion of the Board of Directors and there can be no assurance that the Board of Directors will continue to pay dividends at the same rate, or at all, in the future. Our ability to pay cash dividends to our shareholders is subject to restrictions under federal and Hawaii law, including restrictions imposed by the FRB and covenants set forth in various agreements we are a party to, including covenants set forth in our subordinated debentures. In January 2016, the Board of Directors authorized the repurchase of up to $30.0 million of the Company's common stock from time to time in the open market or in privately negotiated transactions, pursuant to a newly authorized share repurchase program (the "2016 Repurchase Plan"), which superseded in its entirety the repurchase plan that was previously approved by the Board of Directors. In January 2017, the Board of Directors authorized the repurchase of up to $30.0 million of the Company's common stock from time to time in the open market or in privately negotiated transactions, pursuant to a newly authorized share repurchase program (the "2017 Repurchase Plan"). The 2017 Repurchase Plan replaced and superseded in its entirety the 2016 Repurchase Plan. In January 2017, prior to the 2017 Repurchase Plan being approved, 1,750 shares of common stock, at a cost of $0.1 million , were repurchased under the 2016 Repurchase Plan. In November 2017, the Board of Directors authorized an increase in the share repurchase program authority by an additional $50.0 million (known henceforth as the "Repurchase Plan"). This amount is in addition to the $30.0 million in planned repurchases authorized in January 2017. There is no expiration date on the Repurchase Plan. In the year ended December 31, 2017, 864,483 shares of common stock, at a cost of $26.6 million , were repurchased under the 2016 Repurchase Plan and the Repurchase Plan combined. In the nine months ended September 30, 2018 , a total of 849,290 shares of common stock, at a cost of $24.8 million , were repurchased under the Repurchase Plan. A total of $28.7 million remained available for repurchase under the Repurchase Plan as of September 30, 2018 . |
MORTGAGE BANKING INCOME
MORTGAGE BANKING INCOME | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
MORTGAGE BANKING INCOME | 12. MORTGAGE BANKING INCOME Noninterest income from the Company's mortgage banking activities include the following components for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Mortgage banking income: Loan servicing fees $ 1,269 $ 1,323 $ 3,869 $ 4,021 Amortization of mortgage servicing rights (519 ) (476 ) (1,413 ) (1,543 ) Gain on sale of residential mortgage loans 1,082 705 3,013 3,101 Unrealized gain (loss) on interest rate locks 91 (21 ) 76 (148 ) Total mortgage banking income $ 1,923 $ 1,531 $ 5,545 $ 5,431 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | 13. SHARE-BASED COMPENSATION Restricted Stock Awards and Units The table below presents the activity of restricted stock awards and units for the nine months ended September 30, 2018 : Shares Weighted Average Grant Date Fair Value Non-vested restricted stock awards and units, beginning of period 397,551 $ 25.49 Changes during the period: Granted 116,152 29.51 Vested (123,629 ) 24.40 Forfeited (20,294 ) 27.47 Non-vested restricted stock awards and units, end of period 369,780 27.01 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 15. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of other comprehensive income for the three and nine months ended September 30, 2018 and 2017 , by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2018 Net unrealized losses on investment securities : Net unrealized losses arising during the perio d $ (8,297 ) $ (2,225 ) $ (6,072 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securitie s (8,297 ) (2,225 ) (6,072 ) Defined benefit plans: Amortization of net actuarial loss 289 78 211 Amortization of net transition obligation 5 2 3 Amortization of prior service cost 4 1 3 Defined benefit plans, net 298 81 217 Other comprehensive loss $ (7,999 ) $ (2,144 ) $ (5,855 ) (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2017 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (487 ) $ (194 ) $ (293 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securities (487 ) (194 ) (293 ) Defined benefit plans: Amortization of net actuarial loss 324 44 280 Amortization of net transition obligation 4 2 2 Amortization of prior service cost 5 2 3 Settlement — — — Defined benefit plans, net 333 48 285 Other comprehensive loss $ (154 ) $ (146 ) $ (8 ) (dollars in thousands) Before Tax Tax Effect Net of Tax Nine Months Ended September 30, 2018 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (33,809 ) $ (9,097 ) $ (24,712 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securitie s (33,809 ) (9,097 ) (24,712 ) Defined benefit plans: Amortization of net actuarial loss 865 262 603 Amortization of net transition obligation 14 4 10 Amortization of prior service cost 13 3 10 Defined benefit plans, net 892 269 623 Other comprehensive loss $ (32,917 ) $ (8,828 ) $ (24,089 ) (dollars in thousands) Before Tax Tax Effect Net of Tax Nine Months Ended September 30, 2017 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 6,042 $ 2,403 $ 3,639 Less: Reclassification adjustments from AOCI realized in net income 1,640 653 987 Net unrealized gains on investment securities 7,682 3,056 4,626 Defined benefit plans: Net actuarial losses arising during the period (1,042 ) (415 ) (627 ) Amortization of net actuarial loss 971 331 640 Amortization of net transition obligation 13 5 8 Amortization of prior service cost 13 5 8 Settlement 138 56 82 Defined benefit plans, net 93 (18 ) 111 Other comprehensive inco me $ 7,775 $ 3,038 $ 4,737 The following tables present the changes in each component of AOCI, net of tax, for the three and nine months ended September 30, 2018 and 2017 : (dollars in thousands) Investment Defined AOCI Three Months Ended September 30, 2018 Balance at beginning of period $ (14,161 ) $ (7,087 ) $ (21,248 ) Other comprehensive income (loss) before reclassi fications (6,072 ) — (6,072 ) Reclassification adjustments from AOCI — 217 217 Total other comprehensive income (loss) (6,072 ) 217 (5,855 ) Balance at end of period $ (20,233 ) $ (6,870 ) $ (27,103 ) (dollars in thousands) Investment Defined AOCI Three Months Ended September 30, 2017 Balance at beginning of period $ 9,648 $ (6,424 ) $ 3,224 Other comprehensive income before reclassifications (293 ) — (293 ) Reclassification adjustments from AOCI — 285 285 Total other comprehensive income (loss) (293 ) 285 (8 ) Balance at end of period $ 9,355 $ (6,139 ) $ 3,216 (dollars in thousands) Investment Defined AOCI Nine Months Ended September 30, 2018 Balance at beginning of period $ 5,073 $ (6,112 ) $ (1,039 ) Impact of the adoption of new accounting standards (139 ) — (139 ) Adjusted balance at beginning of period 4,934 (6,112 ) (1,178 ) Impact of the adoption of new accounting standards (455 ) (1,381 ) (1,836 ) Other comprehensive income (loss) before reclassi fications (24,712 ) — (24,712 ) Reclassification adjustments from AOCI — 623 623 Total other comprehensive income (loss) (24,712 ) 623 (24,089 ) Balance at end of period $ (20,233 ) $ (6,870 ) $ (27,103 ) (dollars in thousands) Investment Defined AOCI Nine Months Ended September 30, 2017 Balance at beginning of period $ 4,729 $ (6,250 ) $ (1,521 ) Other comprehensive income (loss) before reclassifi cations 3,639 (627 ) 3,012 Reclassification adjustments from AOCI 987 738 1,725 Total other comprehensive income (loss) 4,626 111 4,737 Balance at end of period $ 9,355 $ (6,139 ) $ 3,216 The following table presents the amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2018 and 2017 : Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended September 30, (dollars in thousands) 2018 2017 Sale of investment securities available-for-sale $ — $ — Investment securities gains (losses) — — Income tax benefit (expense) $ — $ — Net of tax Amortization of defined benefit retirement and supplemental executive retirement plan items Net actuarial loss $ (289 ) $ (324 ) (1) Net transition obligation (5 ) (4 ) (1) Prior service cost (4 ) (5 ) (1) Settlement — — (1) (298 ) (333 ) Total before tax 81 48 Income tax benefit (expense) $ (217 ) $ (285 ) Net of tax Total reclassification adjustments from AOCI for the period $ (217 ) $ (285 ) Net of tax Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Nine months ended September 30, (dollars in thousands) 2018 2017 Sale of investment securities available-for-sale $ — $ (1,640 ) Investment securities gains (losses) — 653 Income tax benefit (expense) $ — $ (987 ) Net of tax Amortization of defined benefit retirement and supplemental executive retirement plan items Net actuarial loss $ (865 ) $ (971 ) (1) Net transition obligation (14 ) (13 ) (1) Prior service cost (13 ) (13 ) (1) Settlement — (138 ) (1) (892 ) (1,135 ) Total before tax 269 397 Income tax benefit (expense) $ (623 ) $ (738 ) Net of tax Total reclassification adjustments from AOCI for the period $ (623 ) $ (1,725 ) Net of tax (1) These AOCI components are included in the computation of net periodic pension cost (see Note 14 - Pension and Supplemental Executive Retirement Plans for additional details). |
PENSION AND SUPPLEMENTAL EXECUT
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | 14. PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS Central Pacific Bank has a defined benefit retirement plan (the "Pension Plan") which covers certain eligible employees. The plan was curtailed effective December 31, 2002, and accordingly, plan benefits were fixed as of that date. The following table sets forth the components of net periodic benefit cost for the Pension Plan for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Interest cost $ 199 $ 232 $ 597 $ 694 Expected return on plan assets (302 ) (264 ) (906 ) (792 ) Amortization of net actuarial loss 245 298 735 894 Net periodic cost $ 142 $ 266 $ 426 $ 796 Our bank also established Supplemental Executive Retirement Plans ("SERPs"), which provide certain (current and former) officers of our bank with supplemental retirement benefits. We have not entered into a SERP since December 31, 2008. In the second quarter of 2017, the Company settled a portion of the SERP obligation of a former executive. As a result of the settlement, the Company remeasured the related SERP obligation and net periodic benefit cost and recognized a pro-rata net actuarial loss of $0.1 million in SERP expense and other comprehensive income. The following table sets forth the components of net periodic benefit cost for the SERPs for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Interest cost $ 97 $ 107 $ 292 $ 322 Amortization of net actuarial loss 44 26 130 77 Amortization of net transition obligation 5 4 14 13 Amortization of prior service cost 4 5 13 13 Settlement — — — 138 Net periodic cost $ 150 $ 142 $ 449 $ 563 All components of net periodic benefit cost are included in salaries and employee benefits in the Company's consolidated statements of income. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 16. EARNINGS PER SHARE The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands, except per share data) 2018 2017 2018 2017 Net income $ 15,193 $ 11,812 $ 43,694 $ 36,916 Weighted average common shares outstanding - basic 29,297,465 30,300,195 29,536,536 30,526,260 Dilutive effect of employee stock options and awards 182,347 214,264 206,702 232,729 Weighted average common shares outstanding - diluted 29,479,812 30,514,459 29,743,238 30,758,989 Basic earnings per common share $ 0.52 $ 0.39 $ 1.48 $ 1.21 Diluted earnings per common share $ 0.52 $ 0.39 $ 1.47 $ 1.20 Anti-dilutive employee stock options and awards outstanding — 80 — 8 |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 17. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Disclosures about Fair Value of Financial Instruments Fair value estimates, methods and assumptions are set forth below for our financial instruments. Short-Term Financial Instruments The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from financial institutions, interest-bearing deposits in other financial institutions, accrued interest receivable, the majority of Federal Home Loan Bank advances and other short-term borrowings, and accrued interest payable. Investment Securities The fair value of investment securities is based on market price quotations received from third-party pricing services. The third-party pricing services utilize pricing models supported with timely market data information. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Loans Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company's various loan types and are derived from available market information, as well as specific borrower information. In accordance with ASU 2016-01, the fair value of loans as of September 30, 2018 are based on the notion of exit price. The fair value of loans as of December 31, 2017 was measured based on the notion of entry price. Loans Held for Sale The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans, if any, net of applicable selling costs on our consolidated balance sheets. Mortgage Servicing Rights The initial fair value of mortgage servicing rights is calculated by a discounted cash flow model prepared by a third-party service provider based on market value assumptions at the time of origination. We assess the servicing right for impairment using current market value assumptions at each reporting period. Critical assumptions used in the discounted cash flow model include mortgage prepayment speeds, discount rates, costs to service, and ancillary income. Variations in our assumptions could materially affect the estimated fair values. Changes to our assumptions are made when current trends and market data indicate that new trends have developed. Current market value assumptions based on loan product types (fixed rate, adjustable rate and balloon loans) include average discount rates and prepayment speeds. Many of these assumptions are subjective and require a high level of management judgment. Our mortgage servicing rights portfolio and valuation assumptions are periodically reviewed by management. Federal Home Loan Bank Stock It is not practical to determine the fair value of FHLB stock due to the restrictions placed on its transferability. Deposit Liabilities The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, are equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Long-Term Debt The fair value of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. Derivatives The fair values of derivative financial instruments are based upon current market values, if available. If there are no relevant comparables, fair values are based on pricing models using current assumptions for interest rate swaps and options. Off-Balance Sheet Financial Instruments The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments. Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets. Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant September 30, 2018 Financial assets Cash and due from banks $ 82,668 $ 82,668 $ 82,668 $ — $ — Interest-bearing deposits in other banks 7,051 7,051 7,051 — — Investment securities 1,386,739 1,380,353 885 1,368,324 11,144 Loans held for sale 4,460 4,460 — 4,460 — Net loans and leases 3,931,201 3,804,844 — 19,170 3,785,674 Mortgage servicing rights 15,634 18,315 — — 18,315 Federal Home Loan Bank stock 10,965 N/A N/A N/A N/A Financial liabilities Deposits: Noninterest-bearing demand 1,403,534 1,403,534 1,403,534 — — Interest-bearing demand and savings and money market 2,438,595 2,438,595 2,438,595 — — Time 1,161,551 1,152,739 — 1,152,739 Short-term borrowings 105,000 105,000 — 105,000 — Long-term debt 92,785 88,344 — 88,344 — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant September 30, 2018 Derivatives Interest rate lock commitments $ 15,463 $ (4 ) $ (4 ) $ — $ (4 ) $ — Forward sale commitments 19,861 67 67 — 67 — Off-balance sheet financial instruments Commitments to extend credit 1,066,761 — 1,272 — 1,272 — Standby letters of credit and financial guarantees written 13,465 — 202 — 202 — Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant December 31, 2017 Financial assets Cash and due from banks $ 75,318 $ 75,318 $ 75,318 $ — $ — Interest-bearing deposits in other banks 6,975 6,975 6,975 — — Investment securities 1,496,644 1,494,092 825 1,481,473 11,794 Loans held for sale 16,336 16,336 — 16,336 — Net loans and leases 3,720,614 3,684,834 — 21,280 3,663,554 Mortgage servicing rights 15,843 17,161 — — 17,161 Federal Home Loan Bank stock 7,761 N/A N/A N/A N/A Financial liabilities Deposits: Noninterest-bearing demand 1,395,556 1,395,556 1,395,556 — — Interest-bearing demand and savings and money market 2,414,930 2,414,930 2,414,930 — — Time 1,145,868 1,140,064 — — 1,140,064 Short-term borrowings 32,000 32,000 — 32,000 — Long-term debt 92,785 70,139 — 70,139 — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant December 31, 2017 Derivatives Interest rate lock commitments $ 2,494 $ 12 $ 12 $ — $ 12 $ — Forward sale commitments 18,748 (26 ) (26 ) — (26 ) — Off-balance sheet financial instruments Commitments to extend credit 917,405 — 1,140 — 1,140 — Standby letters of credit and financial guarantees written 13,551 — 203 — 203 — Fair Value Measurements We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: • Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. • 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 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation. We base our fair values on the price that we would expect to receive if an asset were sold or pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale and equity securities and derivatives are recorded at fair value on a recurring basis. From time to time, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, impaired loans, mortgage servicing rights, and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. The Company's policy is to recognize transfers into or out of a level as of the end of the reporting period. There were no transfers of financial assets and liabilities between Level 1 and Level 2 of the fair value hierarchy during the three and nine months ended September 30, 2018 . Also, there were no transfers of financial assets and liabilities into or out of Level 3 of the fair value hierarchy during the three and nine months ended September 30, 2018 . The following tables present the fair value of assets and liabilities measured on a recurring basis as of September 30, 2018 and December 31, 2017 : Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant September 30, 2018 Available-for-sale securities Debt securities: States and political subdivisions $ 173,552 $ — $ 162,408 $ 11,144 Corporate securities 65,133 — 65,133 — U.S. Treasury obligations and direct obligations of U.S Government agencies 33,919 — 33,919 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 734,357 — 734,357 — Commercial - U.S. Government agencies and sponsored entities 51,205 — 51,205 — Residential - Non-government agencies 41,370 — 41,370 — Commercial - Non-government agencies 133,466 — 133,466 — Total available-for-sale securities 1,233,002 — 1,221,858 11,144 Equity securities 885 885 — — Derivatives - Interest rate lock and forward sale commitments 63 — 63 — Total $ 1,233,950 $ 885 $ 1,221,921 $ 11,144 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant December 31, 2017 Available-for-sale securities Debt securities: States and political subdivisions $ 179,781 $ — $ 167,987 $ 11,794 Corporate securities 74,278 — 74,278 — U.S. Treasury obligations and direct obligations of U.S Government agencies 25,510 — 25,510 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 800,683 — 800,683 — Commercial - U.S. Government agencies and sponsored entities 39,725 — 39,725 — Residential - Non-government agencies 46,763 — 46,763 — Commercial - Non-government agencies 137,326 — 137,326 — Total available-for-sale securities 1,304,066 — 1,292,272 11,794 Equity securities 825 825 — — Derivatives - Interest rate lock and forward sale commitments (14 ) — (14 ) — Total $ 1,304,877 $ 825 $ 1,292,258 $ 11,794 For the nine months ended September 30, 2018 and 2017 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: (dollars in thousands) Available for Sale Balance at December 31, 2017 $ 11,794 Principal payments received (280 ) Unrealized net gain (loss) included in other comprehensive income (370 ) Balance at September 30, 2018 $ 11,144 Balance at December 31, 2016 $ 12,196 Principal payments received (268 ) Unrealized net gain (loss) included in other comprehensive income 170 Balance at September 30, 2017 $ 12,098 Within the states and political subdivisions available-for-sale debt securities category, the Company holds four mortgage revenue bonds issued by the City & County of Honolulu with an aggregate fair value of $11.1 million and $12.1 million at September 30, 2018 and September 30, 2017 , respectively. The Company estimates the fair value of its mortgage revenue bonds by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The significant unobservable input used in the fair value measurement of the Company's mortgage revenue bonds is the weighted average discount rate. As of September 30, 2018 , the weighted average discount rate utilized was 5.28% compared to 4.50% at September 30, 2017 and 4.81% at December 31, 2017 , which was derived by incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. The following table presents the fair value of assets measured on a nonrecurring basis and the level of valuation assumptions used to determine the respective fair values as of September 30, 2018 and December 31, 2017 : Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant September 30, 2018 Impaired loans (1) $ 19,170 $ — $ 19,170 $ — Mortgage servicing rights 18,315 — — 18,315 Other real estate (2) 414 — 414 — December 31, 2017 Impaired loans (1) $ 21,280 $ — $ 21,280 $ — Mortgage servicing rights 17,161 — — 17,161 Other real estate (2) 851 — 851 — (1) Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral. (2) Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. The significant unobservable inputs used in the fair value measurement of the Company's mortgage servicing rights are the weighted average discount rate and the forecasted constant prepayment rate. As of September 30, 2018 , the weighted average discount rate and the forecasted constant prepayment rate utilized were 9.5% and 14.0% , respectively, compared to 9.5% and 16.5% , respectively, as of September 30, 2017 and 9.5% and 16.0% , respectively, as of December 31, 2017 . Significant increases (decreases) in the weighted average discount rate and/or the forecasted constant prepayment rate could result in a significantly lower (higher) fair value measurement. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 18. SEGMENT INFORMATION We have the following three reportable segments: Banking Operations, Treasury and All Others. These segments are consistent with our internal functional reporting lines and are managed separately because each unit has different target markets, technological requirements, and specialized skills. The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending, indirect auto lending, trust services, retail brokerage services and our retail branch offices, which provide a full range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company's investment securities portfolio and wholesale funding activities. The All Others segment consists of all activities not captured by the Banking Operations or Treasury segments described above and includes activities such as electronic banking, data processing and management of bank owned properties. The accounting policies of the segments are consistent with the Company's accounting policies that are described in Note 1 - Summary of Significant Accounting Policies to the consolidated financial statements in the Annual Report on Form 10-K, as amended by our Form 10-K/A for the year ended December 31, 2017 filed with the SEC. The majority of the Company's net income is derived from net interest income. Accordingly, management focuses primarily on net interest income, rather than gross interest income and expense amounts, in evaluating segment profitability. Intersegment net interest income (expense) was allocated to each segment based upon a funds transfer pricing process that assigns costs of funds to assets and earnings credits to liabilities based on market interest rates that reflect interest rate sensitivity and maturity characteristics. All administrative and overhead expenses are allocated to the segments at cost. Cash, investment securities, loans and leases and their related balances are allocated to the segment responsible for acquisition and maintenance of those assets. Segment assets also include all premises and equipment used directly in segment operations. Segment profits and assets are provided in the following table for the periods indicated. (dollars in thousands) Banking Treasury All Others Total Three Months Ended September 30, 2018 Net interest income $ 38,872 $ 4,453 $ — $ 43,325 Inter-segment net interest income (expense) 7,524 (4,327 ) (3,197 ) — Credit (provision) for loan and lease losses 59 — — 59 Other operating income: Mortgage banking income 1,173 — 750 1,923 Service charges on deposit accounts 2,189 — — 2,189 Other service charges and fees 1,318 8 1,960 3,286 Income from fiduciary activities 1,159 — — 1,159 Equity in earnings of unconsolidated subsidiaries 71 — — 71 Fees on foreign exchange 22 198 — 220 Income from bank-owned life insurance — 1,055 — 1,055 Loan placement fees 115 — — 115 Other 448 58 296 802 Other operating income 6,495 1,319 3,006 10,820 Other operating expense (16,265 ) (335 ) (17,539 ) (34,139 ) Administrative and overhead expense allocation (15,481 ) (206 ) 15,687 — Income before taxes 21,204 904 (2,043 ) 20,065 Income tax (expense) benefit (5,128 ) (215 ) 471 (4,872 ) Net income (loss) $ 16,076 $ 689 $ (1,572 ) $ 15,193 (dollars in thousands) Banking Treasury All Others Total Three Months Ended September 30, 2017 Net interest income $ 35,191 $ 6,804 $ — $ 41,995 Inter-segment net interest income (expense) 8,530 (6,299 ) (2,231 ) — Credit (provision) for loan and lease losses 126 — — 126 Other operating income: Mortgage banking income 684 — 847 1,531 Service charges on deposit accounts 2,182 — — 2,182 Other service charges and fees 1,303 — 1,882 3,185 Income from fiduciary activities 911 — — 911 Equity in earnings of unconsolidated subsidiaries 176 — — 176 Fees on foreign exchange 23 78 101 Income from bank-owned life insurance — 1,074 — 1,074 Loan placement fees 86 — — 86 Net gain (loss) sale of foreclosed assets — — 19 19 Other 140 7 157 304 Other operating income 5,505 1,159 2,905 9,569 Other operating expense (15,242 ) (338 ) (17,931 ) (33,511 ) Administrative and overhead expense allocation (15,635 ) (311 ) 15,946 — Income before taxes 18,475 1,015 (1,311 ) 18,179 Income tax (expense) benefit (6,470 ) (360 ) 463 (6,367 ) Net income (loss) $ 12,005 $ 655 $ (848 ) $ 11,812 (dollars in thousands) Banking Treasury All Others Total Nine Months Ended September 30, 2018 Net interest income $ 112,295 $ 16,024 $ — $ 128,319 Inter-segment net interest income (expense) 21,360 (14,717 ) (6,643 ) — Credit (provision) for loan and lease losses (262 ) — — (262 ) Other operating income: Mortgage banking income 3,089 — 2,456 5,545 Service charges on deposit accounts 6,169 — — 6,169 Other service charges and fees 3,748 22 5,927 9,697 Income from fiduciary activities 3,132 — — 3,132 Equity in earnings of unconsolidated subsidiaries 151 — — 151 Fees on foreign exchange 75 633 — 708 Income from bank-owned life insurance — 1,874 — 1,874 Loan placement fees 532 — — 532 Other 803 60 733 1,596 Other operating income 17,699 2,589 9,116 29,404 Other operating expense (47,967 ) (1,078 ) (52,336 ) (101,381 ) Administrative and overhead expense allocation (45,594 ) (652 ) 46,246 — Income before taxes 57,531 2,166 (3,617 ) 56,080 Income tax (expense) benefit (12,707 ) (478 ) 799 (12,386 ) Net income (loss) $ 44,824 $ 1,688 $ (2,818 ) $ 43,694 (dollars in thousands) Banking Treasury All Others Total Nine Months Ended September 30, 2017 Net interest income $ 103,839 $ 21,040 $ — $ 124,879 Inter-segment net interest income (expense) 24,618 (18,828 ) (5,790 ) — Credit (provision) for loan and lease losses 2,488 — — 2,488 Other operating income: Mortgage banking income 2,953 — 2,478 5,431 Service charges on deposit accounts 6,338 — — 6,338 Other service charges and fees 3,288 — 5,698 8,986 Income from fiduciary activities 2,739 — — 2,739 Equity in earnings of unconsolidated subsidiaries 388 — — 388 Fees on foreign exchange 65 329 — 394 Investments securities gains (losses) — (1,640 ) — (1,640 ) Income from bank-owned life insurance — 2,774 — 2,774 Loan placement fees 366 — — 366 Net gain (loss) sale of foreclosed assets — — 205 205 Other 936 24 512 1,472 Other operating income 17,073 1,487 8,893 27,453 Other operating expense (45,095 ) (1,048 ) (51,163 ) (97,306 ) Administrative and overhead expense allocation (44,360 ) (741 ) 45,101 — Income before taxes 58,563 1,910 (2,959 ) 57,514 Income tax (expense) benefit (20,974 ) (684 ) 1,060 (20,598 ) Net income $ 37,589 $ 1,226 $ (1,899 ) $ 36,916 (dollars in thousands) Banking Treasury All Others Total September 30, 2018 Investment securities $ — $ 1,386,739 $ — $ 1,386,739 Loans and leases (including loans held for sale) 3,982,487 — — 3,982,487 Other 40,814 237,043 81,557 359,414 Total assets $ 4,023,301 $ 1,623,782 $ 81,557 $ 5,728,640 (dollars in thousands) Banking Treasury All Others Total December 31, 2017 Investment securities $ — $ 1,496,644 $ — $ 1,496,644 Loans and leases (including loans held for sale) 3,786,951 — — 3,786,951 Other 42,243 228,608 69,262 340,113 Total assets $ 3,829,194 $ 1,725,252 $ 69,262 $ 5,623,708 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended |
Sep. 30, 2018 | |
Legal Proceedings [Abstract] | |
LEGAL PROCEEDINGS | 19. LEGAL PROCEEDINGS We are involved in legal actions arising in the ordinary course of business. Management, after consultation with our legal counsel, believes the ultimate disposition of those matters will not have a material adverse effect on our consolidated financial statements. |
SUBSEQUENT EVENTS SUBSEQUENT EV
SUBSEQUENT EVENTS SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS On October 24, 2018, the Company submitted a redemption notice to the trustee and security holder to redeem, in whole, $20 million of floating rate trust preferred securities issued by Trust III. The trust preferred securities are being redeemed, along with $0.6 million in common securities issued by Trust III and held by the Company, as a result of the concurrent redemption of 100% of the Company's outstanding floating rate junior subordinated debentures due in December 2033 and held by Trust III, which underlie the trust preferred securities. The redemption is pursuant to the optional prepayment provisions of the indenture and is scheduled to occur on December 17, 2018. The redemption price for the floating rate junior subordinated debentures will be equal to 100% of the principal amount plus accrued interest, if any, up to, but not including, the redemption date. The proceeds from the redemption of the floating rate junior subordinated debentures will be simultaneously applied to redeem all of the outstanding floating rate trust preferred securities at a price of 100% of the aggregate liquidation amount of the securities plus accumulated but unpaid distributions up to but not including the redemption date. The Company has received all necessary regulatory approvals for the redemption. The redemption will be funded with excess cash currently available to the Company. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K, as amended by our Form 10-K/A for the fiscal year ended December 31, 2017 . In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In December 2015, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, One Hawaii HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment was consolidated into our financial statements. One Hawaii HomeLoans, LLC was terminated in 2017, and final payment of taxes and distributions to members was made in March 2018. We have 50% ownership interests in three other mortgage loan origination and brokerage companies which are accounted for using the equity method and are included in investment in unconsolidated subsidiaries: Gentry HomeLoans, LLC, Haseko HomeLoans, LLC and Island Pacific HomeLoans, LLC. We also had 50% ownership interest in one additional mortgage loan origination and brokerage company, Pacific Access Mortgage, LLC, which was also accounted for using the equity method and was included in investment in unconsolidated subsidiaries. Pacific Access Mortgage, LLC was terminated in 2017, and final payment of taxes and distributions to members was made in March 2018. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity and cost methods were $0.2 million and $15.1 million , respectively, at September 30, 2018 and $0.6 million and $6.5 million , respectively, at December 31, 2017 . Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements. |
Reclassification, Policy [Policy Text Block] | Reclassifications The Company's equity investment securities in the prior year have been reclassified from available-for-sale debt securities to conform to the current year's presentation in accordance with Accounting Standards Update ("ASU") 2016-01, "Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Liabilities . " The reclassification had no impact on the Company's reported net income or shareholders' equity. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2018 In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This ASU replaces most existing revenue recognition guidance in GAAP. ASU 2014-09 was initially effective for the Company's reporting period beginning on January 1, 2017. However, in August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" which deferred the effective date by one year. For financial reporting purposes, the standard allows for either a full retrospective or modified retrospective adoption. The FASB has also issued additional updates to provide further clarification to specific implementation issues associated with ASU 2014-09. These updates include ASU 2016-08, "Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations," ASU 2016-10, "Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing," ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," and ASU 2016-20 "Technical Corrections and Improvements to Topic 606." Our revenue is comprised of net interest income on financial assets and financial liabilities, which is our main source of income, and other operating income. The scope of ASU 2014-09 explicitly excludes net interest income, as well as other revenues associated with financial assets and liabilities, including loans, leases, securities and derivatives. With respect to other operating income, the Company conducted a comprehensive scoping exercise to determine the revenue streams that are in scope of the guidance. This included reviewing the contracts potentially impacted by the standard in revenue streams such as deposit-related fees, merchant fees, bank card fees, interchange fees, commissions income, trust and asset management fees, foreign exchange fees, and loan placement fees. We adopted ASU 2014-09 and all subsequent amendments to the standard beginning January 1, 2018 under the modified retrospective approach. Based on our analysis, the standard required us to change how we recognize certain recurring revenue streams on a gross versus net basis. This resulted in an increase in other service charges and fees totaling $0.2 million and $0.5 million during the three and nine months ended September 30, 2018 , respectively, and the resultant increase in other operating expense-other for the same amount. These changes did not have an impact to our net income; as such a cumulative effect adjustment to opening accumulated deficit was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior period amounts continue to be recorded in accordance with legacy GAAP. Refer to Note 11 - Revenue from Contracts with Customers for further discussion on the Company's accounting policies for revenue sources within the scope of Accounting Standards Codification ("ASC") 606. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Liabilities . " The amendments in ASU 2016-01 made targeted improvements to GAAP as follows: 1) required 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, 2) simplified the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, 3) eliminated the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities, 4) eliminated 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 on the balance sheet, 5) required public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, 6) required an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, 7) required separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements, and 8) clarified that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The Company adopted ASU 2016-01 beginning January 1, 2018, which resulted in a reclassification of the Company's equity investment securities portfolio of $0.9 million and $0.8 million as of September 30, 2018 and December 31, 2017 , respectively, from available-for-sale debt securities to equity securities on the Company's consolidated balance sheets. Changes in fair value are recognized in net income. In addition, during the first quarter of 2018, the Company recorded a cumulative effect adjustment which increased opening retained earnings (or reduced opening accumulated deficit) and decreased accumulated other comprehensive income (loss) ("AOCI") by $0.1 million related to the unrealized gains on the equity investment securities portfolio and changes in the fair value of the equity investment securities portfolio were recognized in net income. The Company also engaged a third-party consultant, who used a refined calculation to determine the fair value of our loans held for investment portfolio using the exit price notion, which is included in our fair value disclosures in Note 17 - Fair Value of Financial Assets and Liabilities . The refined calculation did not have a material impact on our fair value disclosures. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provided guidance on eight statement of cash flow classification issues and was intended to reduce the current and future diversity in practice described in the amendments. Current GAAP is either unclear or does not include specific guidance on the eight statement of cash flow classification issues included in ASU 2016-15. The Company adopted ASU 2016-15 effective January 1, 2018. The amendments in ASU 2016-15 did not impact the Company's financial statements as our current practice was consistent with the update. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost." ASU 2017-07 requires an entity to present the service cost component of the net periodic benefit cost in the same line item or items in the statement of income as other employee compensation costs arising from services rendered by the pertinent employees during the period. In addition, only the service cost component is eligible for capitalization. The other components of net benefit costs should be presented in the statement of income separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item is used to present the other components, that line item shall be described appropriately. The line items used in the income statement to present the components other than the service cost component shall be disclosed if a Company elects to not present them in a separate line item. The Company adopted ASU 2017-07 effective January 1, 2018. The amendments in ASU 2017-07 did not impact the Company's financial statements. In March 2017, the FASB issued ASU 2017-08, "Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. Although ASU 2017-08 is effective for the Company's reporting period beginning on January 1, 2019, the Company elected to early adopt the standard effective January 1, 2018. The amendments in ASU 2017-08 did not have a material impact to the Company's financial statements. In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 718): Scope of Modification." ASU 2017-09 was issued to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation, to a change to the terms or conditions of a share-based payment award. Diversity in practice has arisen in part because some entities apply modification accounting under Topic 718 for modifications to terms and conditions that they consider substantive, but do not when they conclude that particular modifications are not substantive. Others apply modification accounting for any change to an award, except for changes that they consider purely administrative in nature. Still others apply modification accounting when a change to an award changes the fair value, the vesting, or the classification of the award. In practice, it appears that the evaluation of a change in fair value, vesting, or classification may be used to evaluate whether a change is substantive. ASU 2017-09 includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The Company adopted ASU 2017-09 effective January 1, 2018. The amendments in ASU 2017-09 did not impact the Company's financial statements as the Company has not historically had any scope modifications and has no plans to do so in the near future. 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." ASU 2018-02 was issued to address certain stranded tax effects in AOCI as a result of H.R.1., commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform"). ASU 2018-02 provides companies the option to reclassify stranded tax effects within AOCI to retained earnings (or accumulated deficit) in each period in which the effect of the change from the newly enacted corporate tax rate is recorded. The amount of the reclassification is calculated on the basis of the difference between the historical and newly enacted tax rates for deferred tax assets and liabilities related to items within AOCI. ASU 2018-02 requires companies to disclose its accounting policy related to releasing income tax effects from accumulated other comprehensive income, whether it has elected to reclassify the stranded tax effects, and information about the other income tax effects that are reclassified. Although ASU 2018-02 is effective for the Company's reporting period beginning on January 1, 2019, the Company elected to early adopt the standard effective January 1, 2018. As a result, the Company recorded cumulative effect adjustments which increased opening retained earnings (or reduced opening accumulated deficit) and decreased AOCI for the stranded tax effects related to the Company's defined benefit pension and supplemental retirement plan obligations and the unrealized loss on the Company's investment securities portfolio by $1.4 million and $0.5 million , respectively. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842) . " ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU establishes a right-of-use ("ROU") model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term of longer than 12 months. The FASB has also made available several practical expedients to assist entities with the adoption of ASU 2016-02. Among other things, these practical expedients require no reassessment of whether existing contracts are or contain leases as well as no reassessment of lease classification for current leases. In July 2018, the FASB released ASU 2018-11, "Leases (Topic 842 Targeted Improvements)," which adds an additional practical expedient that allows entities to elect not to recast comparative periods presented when transitioning to Topic 842. During the quarter ended September 30, 2018 , the Company has engaged a software vendor to assist in the implementation of ASU 2016-02 and has completed testing of completeness and accuracy of the lease population. The ASU is effective for the Company's reporting period beginning January 1, 2019 and must be applied using the modified retrospective approach. Based on preliminary evaluation, the ASU will not have a material impact on our consolidated financial statements as the projected minimum lease payments under existing leases subject to the ASU are less than one percent of our total assets as of September 30, 2018 . In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , " which significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. In issuing the standard, the FASB is responding to criticism that today’s “incurred loss” guidance delays the recognition of credit losses on loans, leases, held-to-maturity debt securities, loan commitments, and financial guarantees, and instead provides for a current expected credit loss (“CECL”) approach to determine the allowance for credit losses. CECL requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. In addition, this guidance modifies the accounting treatment for other-than-temporary impairment for available-for-sale debt securities. Organizations will continue to use judgment to determine which loss estimation methods are appropriate for their circumstances. This guidance requires entities to record a cumulative effect adjustment to the consolidated balance sheet as of the beginning of the first reporting period in which the guidance is effective. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with earlier adoption permitted. As such, the Company will implement CECL for the reporting period beginning January 1, 2020. The new guidance will require significant operational changes, particularly in data collection and analysis. The Company has formed a steering committee that is responsible for oversight of the Company’s implementation strategy for compliance with provisions of the new standard. The Company has also established a project management governance process to manage the implementation across affected disciplines. An external provider specializing in community bank loss driver and CECL reserving model design as well as other related consulting services has been retained, and we have begun to evaluate potential CECL modeling alternatives. As part of this process, the Company has determined potential loan pool segmentation and sub-segmentation under CECL, as well as evaluated the key economic loss drivers for each segment. Further, the Company has engaged a third party economic forecasting service to utilize in developing the Company's reasonable and supportable forecasts under CECL. The Company presently plans to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for interim and annual reporting periods in 2019. While the Company is currently unable to reasonably estimate the impact of adopting this new guidance, management expects the impact of adoption will be significantly influenced by the composition and quality of the Company’s loans and investment securities as well as the economic conditions as of the date of adoption. The Company also anticipates significant changes to the processes and procedures for calculating the reserve for credit losses and continues to evaluate the potential impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The FASB believes that such amendments will: 1) improve the transparency of information about an entity’s risk management activities and 2) simplify the application of hedge accounting. The ASU allows an entity that qualifies for the last-of-layer method to reclassify securities from the held-to-maturity category to the available-for-sale category. The ASU is effective for the the Company's reporting period beginning on January 1, 2019. Early adoption is permitted. We are currently in the process of evaluating the potential impact the amendments will have on our consolidated financial statements, but we do not expect the adoption of the ASU to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The ASU is part of the FASB's disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles. The ASU modifies disclosure requirements on fair value measurements in Topic 820 and is effective for the Company's reporting period beginning January 1, 2020. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." Like ASU 2018-13, this ASU is part of the FASB's disclosure framework project. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for the Company's reporting period beginning January 1, 2021. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an “other asset”). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. ASU 2018-15 is effective for the Company's reporting period beginning January 1, 2020 and early adoption is permitted. We are currently in the process of evaluating the potential impact the amendments will have on our consolidated financial statements, but we do not expect the adoption of the ASU to have a material impact on our consolidated financial statements. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" , establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts to provide goods or services to its customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services. Revenue is recognized as performance obligations are satisfied. The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. Our principal source of revenue is derived from interest income on financial instruments, such as our loan and investment securities portfolios, as well as revenue related to our mortgage banking activities. These revenue-generating transactions are out of scope of ASC 606, but are subject to other GAAP and discussed elsewhere within our disclosures. We also generate other revenue in connection with our broad range of banking products and financial services. Descriptions of our other revenue-generating activities that are within the scope of ASC 606, which are presented in our consolidated statements of income as components of other operating income are as follows: Service charges on deposit accounts Revenue from service charges on deposit accounts includes general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as stop payment fees). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Other Service Charges and Fees Revenue from other service charges and fees includes cards and payments income, safe deposit rental income and other service charges, commissions and fees. Cards and payments income includes interchange fees from debit cards processed through card association networks, merchant services, and other card related services. Interchange rates are generally set by the credit card associations and based on purchase volumes and other factors. Interchange fees are recognized as transactions occur. Interchange expenses related to cards and payments income are presented gross in other operating expense. Merchant services income represents account management fees and transaction fees charged to merchants for the processing of card association network transactions. Merchant services revenue is recognized as transactions occur, or as services are performed. Other service charges, commissions and fees include automated teller machines ("ATM") surcharge and interchange fees, bill payment fees, cashier’s check and money order fees, wire transfer fees, loan brokerage fees, and commissions on sales of insurance, broker-dealer products, letters of credit, and travelers’ checks. Revenue from these fees and commissions is recorded in a manner that reflects the timing of when transactions occur, and as services are provided. Based on the nature of the commission agreement with the broker-dealer and each insurance provider, we may recognize revenue from broker-dealer and insurance commissions over time or at a point-in-time as our performance obligation is satisfied. Income from Fiduciary Activities Income from fiduciary activities includes fees from wealth management, trust, custodial and escrow services provided to individual and institutional customers. Revenue is generally recognized monthly based on a minimum annual fee and/or the market value of assets in custody. Additional fees are recognized for transactional activity. Revenue from trade execution and brokerage services is earned through commissions from trade execution on behalf of clients. Revenue from these transactions is recognized at the trade date. Any ongoing service fees are recognized on a monthly basis as services are performed. Fees on Foreign Exchange The Company provides foreign currency exchange services to customers, whereby cash can be converted to different foreign currencies, and vice versa. As a result of the services, a gain or loss is recognized on foreign currency transactions, as well as income related to commissions and fees earned on each transaction. Revenue from the commissions and fees earned on the transactions fall within the scope of ASC 606, and is recorded in a manner that reflects the timing of when transactions occur, and as services are provided. Realized and unrealized gains or losses related to foreign currency are out of scope of ASC 606. Loan Placement Fees Loan placement fees primarily represent revenues earned by the Company for loan placement and underwriting. Revenues for these services are recorded at a point-in-time, upon completion of a contractually identified transaction, or when an advisory opinion is provided. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of available for sale and held to maturity investment securities | A summary of our investment portfolio is as follows: (dollars in thousands) Amortized Gross Gross Fair September 30, 2018 Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 87,356 $ — $ (4,339 ) $ 83,017 Commercial - U.S. Government-sponsored entities 65,496 — (2,047 ) 63,449 Total held-to-maturity securities $ 152,852 $ — $ (6,386 ) $ 146,466 Available-for-sale: Debt securities: States and political subdivisions $ 175,495 $ 788 $ (2,731 ) $ 173,552 Corporate securities 65,587 23 (477 ) 65,133 U.S. Treasury obligations and direct obligations of U.S Government agencies 34,566 — (647 ) 33,919 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 763,635 297 (29,575 ) 734,357 Commercial - U.S. Government agencies and sponsored entities 53,618 — (2,413 ) 51,205 Residential - Non-government agencies 42,069 132 (831 ) 41,370 Commercial - Non-government agencies 134,914 321 (1,769 ) 133,466 Total available-for-sale securities $ 1,269,884 $ 1,561 $ (38,443 ) $ 1,233,002 Equity securities $ 712 $ 173 $ — $ 885 (dollars in thousands) Amortized Gross Gross Fair December 31, 2017 Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 100,279 $ 106 $ (2,222 ) $ 98,163 Commercial - U.S. Government-sponsored entities 91,474 — (436 ) 91,038 Total held-to-maturity securities $ 191,753 $ 106 $ (2,658 ) $ 189,201 Available-for-sale: Debt securities: States and political subdivisions $ 178,459 $ 2,041 $ (719 ) $ 179,781 Corporate securities 73,772 582 (76 ) 74,278 U.S. Treasury obligations and direct obligations of U.S Government agencies 25,519 60 (69 ) 25,510 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 808,242 2,230 (9,789 ) 800,683 Commercial - U.S. Government agencies and sponsored entities 40,012 — (287 ) 39,725 Residential - Non-government agencies 45,679 1,084 — 46,763 Commercial - Non-government agencies 135,058 2,461 (193 ) 137,326 Total available-for-sale securities $ 1,306,741 $ 8,458 $ (11,133 ) $ 1,304,066 Equity securities $ 686 $ 139 $ — $ 825 |
Schedule of amortized cost and estimated fair value of investment securities by contractual maturity | The amortized cost and estimated fair value of investment securities at September 30, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2018 (dollars in thousands) Amortized Cost Fair Value Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 87,356 $ 83,017 Commercial - U.S. Government-sponsored entities 65,496 63,449 Total held-to-maturity securities $ 152,852 $ 146,466 Available-for-sale: Due in one year or less $ 63,878 $ 63,916 Due after one year through five years 103,852 103,115 Due after five years through ten years 50,639 49,629 Due after ten years 57,279 55,944 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 763,635 734,357 Commercial - U.S. Government agencies and sponsored entities 53,618 51,205 Residential - Non-government agencies 42,069 41,370 Commercial - Non-government agencies 134,914 133,466 Total available-for-sale securities $ 1,269,884 $ 1,233,002 Equity securities $ 712 $ 885 |
Schedule of investment securities in an unrealized loss position | Provided below is a summary of the 379 and 223 investment securities which were in an unrealized or unrecognized loss position at September 30, 2018 and December 31, 2017 , respectively, aggregated by major security type and length of time in a continuous unrealized or unrecognized loss position. Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2018 Debt securities: States and political subdivisions $ 87,069 $ (1,225 ) $ 26,654 $ (1,506 ) $ 113,723 $ (2,731 ) Corporate securities 54,275 (301 ) 5,130 (176 ) 59,405 (477 ) U.S. Treasury obligations and direct obligations of U.S Government agencies 31,220 (602 ) 2,699 (45 ) 33,919 (647 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 285,808 (7,950 ) 513,681 (25,964 ) 799,489 (33,914 ) Residential - Non-government agencies 24,690 (831 ) — — 24,690 (831 ) Commercial - U.S. Government agencies and sponsored entities 57,509 (1,873 ) 57,145 (2,587 ) 114,654 (4,460 ) Commercial - Non-government agencies 93,778 (1,769 ) — — 93,778 (1,769 ) Total temporarily impaired securities $ 634,349 $ (14,551 ) $ 605,309 $ (30,278 ) $ 1,239,658 $ (44,829 ) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Debt securities: States and political subdivisions $ 53,811 $ (305 ) $ 15,403 $ (414 ) $ 69,214 $ (719 ) Corporate securities — — 5,307 (76 ) 5,307 (76 ) U.S. Treasury obligations and direct obligations of U.S Government agencies 10,740 (69 ) — — 10,740 (69 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 335,883 (3,372 ) 340,219 (8,639 ) 676,102 (12,011 ) Residential - Non-government agencies — — — — — — Commercial - U.S. Government-sponsored entities 130,763 (723 ) — — 130,763 (723 ) Commercial - Non-government agencies 28,490 (193 ) — — 28,490 (193 ) Total temporarily impaired securities $ 559,687 $ (4,662 ) $ 360,929 $ (9,129 ) $ 920,616 $ (13,791 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of loans and leases, excluding loans held for sale | Loans and leases, excluding loans held for sale, consisted of the following: (dollars in thousands) September 30, 2018 December 31, 2017 Commercial, financial and agricultural $ 564,900 $ 503,738 Real estate: Construction 69,065 64,525 Residential mortgage 1,388,925 1,337,193 Home equity 455,599 412,230 Commercial mortgage 1,034,951 979,239 Consumer 462,198 470,819 Leases 170 362 Gross loans and leases 3,975,808 3,768,106 Net deferred costs 2,219 2,509 Total loans and leases, net of deferred costs $ 3,978,027 $ 3,770,615 |
Schedule of balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on the impairment measurement methods, by class | The following tables present by class, the balance in the allowance for loan and lease losses (the "Allowance") and the recorded investment in loans and leases based on the Company's impairment measurement method as of September 30, 2018 and December 31, 2017 : Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total September 30, 2018 Allowance: Individually evaluated for impairment $ — $ — $ 87 $ — $ — $ — $ — $ 87 Collectively evaluated for impairment 7,867 1,291 14,048 3,718 13,470 6,345 — 46,739 Total ending balance $ 7,867 $ 1,291 $ 14,135 $ 3,718 $ 13,470 $ 6,345 $ — $ 46,826 Loans and leases: Individually evaluated for impairment $ 388 $ 2,355 $ 12,660 $ 415 $ 3,439 $ — $ — $ 19,257 Collectively evaluated for impairment 564,512 66,710 1,376,265 455,184 1,031,512 462,198 170 3,956,551 Subtotal 564,900 69,065 1,388,925 455,599 1,034,951 462,198 170 3,975,808 Net deferred costs (income) 464 (424 ) 3,744 — (1,501 ) (64 ) — 2,219 Total loans and leases, net of deferred costs (income) $ 565,364 $ 68,641 $ 1,392,669 $ 455,599 $ 1,033,450 $ 462,134 $ 170 $ 3,978,027 Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total December 31, 2017 Allowance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 7,594 1,835 14,328 3,317 16,801 6,126 — 50,001 Total ending balance $ 7,594 $ 1,835 $ 14,328 $ 3,317 $ 16,801 6,126 $ — $ 50,001 Loans and leases: Individually evaluated for impairment $ 491 $ 2,597 $ 13,862 $ 416 $ 3,914 $ — $ — $ 21,280 Collectively evaluated for impairment 503,247 61,928 1,323,331 411,814 975,325 470,819 362 3,746,826 Subtotal 503,738 64,525 1,337,193 412,230 979,239 470,819 362 3,768,106 Net deferred costs (income) 281 (285 ) 4,028 — (1,442 ) (73 ) — 2,509 Total loans and leases, net of deferred costs (income) $ 504,019 $ 64,240 $ 1,341,221 $ 412,230 $ 977,797 $ 470,746 $ 362 $ 3,770,615 |
Schedule of impaired loans, by class | The following table presents by class, information related to impaired loans as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Unpaid Recorded Allowance Unpaid Recorded Allowance (dollars in thousands) Impaired loans: Commercial, financial and agricultural $ 498 $ 388 $ — $ 602 $ 491 $ — Real estate: Construction 7,705 2,355 — 7,947 2,597 — Residential mortgage 13,689 12,660 87 14,920 13,862 — Home equity 415 415 — 416 416 — Commercial mortgage 3,439 3,439 — 3,914 3,914 — Total impaired loans $ 25,746 $ 19,257 $ 87 $ 27,799 $ 21,280 $ — |
Schedule of average recorded investment and interest income recognized on impaired loans, by class | The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 (dollars in thousands) Average Interest Average Interest Average Interest Average Interest Commercial, financial and agricultural $ 399 $ 12 $ 1,212 $ 3 $ 498 $ 17 $ 1,500 $ 7 Real estate: Construction 2,382 30 2,704 26 2,476 84 2,800 74 Residential mortgage 12,857 123 16,444 189 13,208 419 17,951 1,356 Home equity 447 1,418 — 516 1,343 1 Commercial mortgage 3,483 36 4,440 179 3,653 110 5,143 272 Total $ 19,568 $ 201 $ 26,218 $ 397 $ 20,351 $ 630 $ 28,737 $ 1,710 |
Schedule of aging of the recorded investment in past due loans and leases, by class | The following tables present by class, the aging of the recorded investment in past due loans and leases as of September 30, 2018 and December 31, 2017 : (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total September 30, 2018 Commercial, financial and agricultural $ 1,821 $ 326 $ — $ — $ 2,147 $ 563,217 $ 565,364 Real estate: Construction — — — — — 68,641 68,641 Residential mortgage 98 708 — 2,197 3,003 1,389,666 1,392,669 Home equity 1,582 — — 415 1,997 453,602 455,599 Commercial mortgage 12 — — — 12 1,033,438 1,033,450 Consumer 1,849 604 333 — 2,786 459,348 462,134 Leases — — — — — 170 170 Total $ 5,362 $ 1,638 $ 333 $ 2,612 $ 9,945 $ 3,968,082 $ 3,978,027 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total December 31, 2017 Commercial, financial and agricultural $ 410 $ 355 $ — $ — $ 765 $ 503,254 $ 504,019 Real estate: Construction — — — — — 64,240 64,240 Residential mortgage 4,037 2,127 49 2,280 8,493 1,332,728 1,341,221 Home equity 105 264 — 416 785 411,445 412,230 Commercial mortgage — — — 79 79 977,718 977,797 Consumer 2,126 1,056 515 — 3,697 467,049 470,746 Leases — — — — — 362 362 Total $ 6,678 $ 3,802 $ 564 $ 2,775 $ 13,819 $ 3,756,796 $ 3,770,615 |
Schedule of information related to loans modified in a TDR, by class | The following table presents by class, information related to loans modified in a TDR during the period presented. (dollars in thousands) Number of Recorded Increase in the Three Months Ended September 30, 2018 Real estate: Residential mortgage 3 $ 575 $ — Total 3 $ 575 $ — Nine Months Ended September 30, 2018 Real estate: Residential mortgage 3 $ 575 $ — Total 3 $ 575 $ — Three Months Ended September 30, 2017 Real estate: Residential mortgage 1 70 — Total 1 $ 70 $ — Nine Months Ended September 30, 2017 Commercial, financial and agricultural 1 $ 632 $ — Real estate: Residential mortgage 1 70 — Total 2 $ 702 $ — |
Schedule of recorded investment in loans and leases, by class and credit indicator | The following table presents by class and credit indicator, the recorded investment in the Company's loans and leases as of September 30, 2018 and December 31, 2017 : (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total September 30, 2018 Commercial, financial and agricultural $ 535,574 $ 11,496 $ 17,830 $ — $ 564,900 $ 464 $ 565,364 Real estate: Construction 69,065 — — — 69,065 (424 ) 68,641 Residential mortgage 1,386,630 — 2,295 — 1,388,925 3,744 1,392,669 Home equity 455,184 — 415 — 455,599 — 455,599 Commercial mortgage 1,022,854 10,982 1,115 — 1,034,951 (1,501 ) 1,033,450 Consumer 461,865 — 135 198 462,198 (64 ) 462,134 Leases 170 — — — 170 — 170 Total $ 3,931,342 $ 22,478 $ 21,790 $ 198 $ 3,975,808 $ 2,219 $ 3,978,027 |
ALLOWANCE FOR LOAN AND LEASE _2
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | |
Schedule of activity in the allowance, by class | The following table presents by class, the activity in the Allowance for the periods indicated: Real Estate Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total (dollars in thousands) Three Months Ended September 30, 2018 Beginning balance $ 7,525 $ 1,811 $ 14,252 $ 3,168 $ 15,094 $ 6,331 $ — $ 48,181 Provision (credit) for loan and lease losses 495 (526 ) (168 ) 544 (1,632 ) 1,228 — (59 ) 8,020 1,285 14,084 3,712 13,462 7,559 — 48,122 Charge-offs 731 — — — — 1,762 — 2,493 Recoveries 578 6 51 6 8 548 — 1,197 Net charge-offs (recoveries) 153 (6 ) (51 ) (6 ) (8 ) 1,214 — 1,296 Ending balance $ 7,867 $ 1,291 $ 14,135 $ 3,718 $ 13,470 $ 6,345 $ — $ 46,826 Three Months Ended September 30, 2017 Beginning balance $ 8,598 $ 3,212 $ 14,034 $ 3,370 $ 18,184 $ 5,430 $ — $ 52,828 Provision (credit) for loan and lease losses (690 ) (207 ) (526 ) (134 ) (541 ) 1,972 — (126 ) 7,908 3,005 13,508 3,236 17,643 7,402 — 52,702 Charge-offs 429 — — — — 1,709 — 2,138 Recoveries 165 40 124 6 7 311 — 653 Net charge-offs (recoveries) 264 (40 ) (124 ) (6 ) (7 ) 1,398 — 1,485 Ending balance $ 7,644 $ 3,045 $ 13,632 $ 3,242 $ 17,650 $ 6,004 $ — $ 51,217 Real Estate Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total (dollars in thousands) Nine Months Ended September 30, 2018 Beginning balance $ 7,594 $ 1,835 $ 14,328 $ 3,317 $ 16,801 $ 6,126 $ — $ 50,001 Provision (credit) for loan and lease losses 1,227 (1,749 ) (291 ) 383 (3,383 ) 4,075 — 262 8,821 86 14,037 3,700 13,418 10,201 — 50,263 Charge-offs 1,971 — — — — 5,424 — 7,395 Recoveries 1,017 1,205 98 18 52 1,568 — 3,958 Net charge-offs (recoveries) 954 (1,205 ) (98 ) (18 ) (52 ) 3,856 — 3,437 Ending balance $ 7,867 $ 1,291 $ 14,135 $ 3,718 $ 13,470 $ 6,345 $ — $ 46,826 Nine Months Ended September 30, 2017 Beginning balance $ 8,637 $ 4,224 $ 15,055 $ 3,502 $ 19,104 $ 6,109 $ — $ 56,631 Provision (credit) for loan and lease losses (403 ) (1,296 ) (2,280 ) (295 ) (1,600 ) 3,386 — (2,488 ) 8,234 2,928 12,775 3,207 17,504 9,495 — 54,143 Charge-offs 1,266 — — — — 4,676 — 5,942 Recoveries 676 117 857 35 146 1,185 — 3,016 Net charge-offs (recoveries) 590 (117 ) (857 ) (35 ) (146 ) 3,491 — 2,926 Ending balance $ 7,644 $ 3,045 $ 13,632 $ 3,242 $ 17,650 $ 6,004 $ — $ 51,217 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |
Schedule of investment in unconsolidated subsidiaries | The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three and nine months ended September 30, 2018 and September 30, 2017 : (dollars in thousands) Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended Cost method: Amortization expense recognized in other operating expense $ 114 $ 174 $ 341 $ 630 Tax credits recognized in income tax expense 152 218 457 744 The components of the Company's investments in unconsolidated subsidiaries were as follows: (dollars in thousands) September 30, 2018 December 31, 2017 Investments in low income housing tax credit partnerships $ 12,267 $ 3,608 Trust preferred investments 2,792 2,792 Investments in affiliates 170 634 Other 54 54 Total $ 15,283 $ 7,088 |
CORE DEPOSIT PREMIUM AND MORT_2
CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
OTHER INTANGIBLE ASSETS | |
Schedule of gross carrying value and accumulated amortization related to intangible assets | The gross carrying value and accumulated amortization related to our core deposit premium and mortgage servicing rights are presented below: September 30, 2018 December 31, 2017 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Core deposit premium $ 44,642 $ (44,642 ) $ — $ 44,642 $ (42,636 ) $ 2,006 Mortgage servicing rights 65,605 (49,971 ) 15,634 64,401 (48,558 ) 15,843 Total $ 110,247 $ (94,613 ) $ 15,634 $ 109,043 $ (91,194 ) $ 17,849 The following table presents changes in core deposit premium and mortgage servicing rights for the periods presented: (dollars in thousands) Core Mortgage Total Balance, January 1, 2017 $ 4,680 $ 15,779 $ 20,459 Additions — 1,857 1,857 Amortization (2,006 ) (1,543 ) (3,549 ) Balance, September 30, 2017 $ 2,674 $ 16,093 $ 18,767 Balance, January 1, 2018 $ 2,006 $ 15,843 $ 17,849 Additions — 1,204 1,204 Amortization (2,006 ) (1,413 ) (3,419 ) Balance, September 30, 2018 $ — $ 15,634 $ 15,634 |
Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights | The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Nine Months Ended Nine Months Ended (dollars in thousands) September 30, 2018 September 30, 2017 Fair market value, beginning of period $ 17,161 $ 18,087 Fair market value, end of period 18,315 16,777 Weighted average discount rate 9.5 % 9.5 % Forecasted constant prepayment rate assumption 14.0 16.5 |
Schedule of estimated amortization expense | Based on the mortgage servicing rights held as of September 30, 2018 , estimated amortization expense for the remainder of fiscal year 2018 , the next five succeeding fiscal years and all years thereafter are as follows: (dollars in thousands) 2018 (remainder) $ 450 2019 1,566 2020 1,292 2021 1,087 2022 919 2023 789 Thereafter 9,531 $ 15,634 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheets | The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets: Derivatives Financial Instruments Not Designated as Hedging Instruments Asset Derivatives Liability Derivatives Fair Value at Fair Value at (dollars in thousands) Balance Sheet Location September 30, December 31, September 30, December 31, Interest rate lock and forward sale commitments Other assets / other liabilities $ 92 $ 35 $ 29 $ 49 |
Schedule of the impact of derivative instruments and their location within the consolidated statements of income | The following table presents the impact of derivative instruments and their location within the consolidated statements of income: Derivatives Financial Instruments Location of Gain (Loss) Amount of Gain (Loss) (dollars in thousands) Three Months Ended September 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income $ 91 Loans held for sale Other income (6 ) Three Months Ended September 30, 2017 Interest rate lock and forward sale commitments Mortgage banking income (21 ) Loans held for sale Other income (3 ) Nine Months Ended September 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income 76 Loans held for sale Other income (6 ) Nine Months Ended September 30, 2017 Interest rate lock and forward sale commitments Mortgage banking income (148 ) Loans held for sale Other income — |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Other operating income segregated by revenue streams | The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606 for the nine months ended September 30, 2018 and 2017 . Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Other operating income: In-scope of ASC 606 Service charges on deposit accounts $ 2,189 $ 2,182 $ 6,169 $ 6,338 Other service charges and fees 2,778 2,766 8,169 7,490 Income on fiduciary activities 1,159 911 3,132 2,739 Fees on foreign exchange 26 29 86 112 Loan placement fees 115 86 532 366 Net gain on sales of foreclosed assets — 19 — 205 In-scope other operating income 6,267 5,993 18,088 17,250 Out-of-scope other operating income 4,553 3,576 11,316 10,203 Total other operating income $ 10,820 $ 9,569 $ 29,404 $ 27,453 |
MORTGAGE BANKING INCOME (Tables
MORTGAGE BANKING INCOME (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | Noninterest income from the Company's mortgage banking activities include the following components for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Mortgage banking income: Loan servicing fees $ 1,269 $ 1,323 $ 3,869 $ 4,021 Amortization of mortgage servicing rights (519 ) (476 ) (1,413 ) (1,543 ) Gain on sale of residential mortgage loans 1,082 705 3,013 3,101 Unrealized gain (loss) on interest rate locks 91 (21 ) 76 (148 ) Total mortgage banking income $ 1,923 $ 1,531 $ 5,545 $ 5,431 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of activity of restricted stock awards and units | The table below presents the activity of restricted stock awards and units for the nine months ended September 30, 2018 : Shares Weighted Average Grant Date Fair Value Non-vested restricted stock awards and units, beginning of period 397,551 $ 25.49 Changes during the period: Granted 116,152 29.51 Vested (123,629 ) 24.40 Forfeited (20,294 ) 27.47 Non-vested restricted stock awards and units, end of period 369,780 27.01 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of components of other comprehensive income (loss) | The following tables present the components of other comprehensive income for the three and nine months ended September 30, 2018 and 2017 , by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2018 Net unrealized losses on investment securities : Net unrealized losses arising during the perio d $ (8,297 ) $ (2,225 ) $ (6,072 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securitie s (8,297 ) (2,225 ) (6,072 ) Defined benefit plans: Amortization of net actuarial loss 289 78 211 Amortization of net transition obligation 5 2 3 Amortization of prior service cost 4 1 3 Defined benefit plans, net 298 81 217 Other comprehensive loss $ (7,999 ) $ (2,144 ) $ (5,855 ) (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended September 30, 2017 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (487 ) $ (194 ) $ (293 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securities (487 ) (194 ) (293 ) Defined benefit plans: Amortization of net actuarial loss 324 44 280 Amortization of net transition obligation 4 2 2 Amortization of prior service cost 5 2 3 Settlement — — — Defined benefit plans, net 333 48 285 Other comprehensive loss $ (154 ) $ (146 ) $ (8 ) (dollars in thousands) Before Tax Tax Effect Net of Tax Nine Months Ended September 30, 2018 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (33,809 ) $ (9,097 ) $ (24,712 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securitie s (33,809 ) (9,097 ) (24,712 ) Defined benefit plans: Amortization of net actuarial loss 865 262 603 Amortization of net transition obligation 14 4 10 Amortization of prior service cost 13 3 10 Defined benefit plans, net 892 269 623 Other comprehensive loss $ (32,917 ) $ (8,828 ) $ (24,089 ) |
Schedule of changes in each component of AOCI, net of tax | The following tables present the changes in each component of AOCI, net of tax, for the three and nine months ended September 30, 2018 and 2017 : (dollars in thousands) Investment Defined AOCI Three Months Ended September 30, 2018 Balance at beginning of period $ (14,161 ) $ (7,087 ) $ (21,248 ) Other comprehensive income (loss) before reclassi fications (6,072 ) — (6,072 ) Reclassification adjustments from AOCI — 217 217 Total other comprehensive income (loss) (6,072 ) 217 (5,855 ) Balance at end of period $ (20,233 ) $ (6,870 ) $ (27,103 ) (dollars in thousands) Investment Defined AOCI Three Months Ended September 30, 2017 Balance at beginning of period $ 9,648 $ (6,424 ) $ 3,224 Other comprehensive income before reclassifications (293 ) — (293 ) Reclassification adjustments from AOCI — 285 285 Total other comprehensive income (loss) (293 ) 285 (8 ) Balance at end of period $ 9,355 $ (6,139 ) $ 3,216 (dollars in thousands) Investment Defined AOCI Nine Months Ended September 30, 2018 Balance at beginning of period $ 5,073 $ (6,112 ) $ (1,039 ) Impact of the adoption of new accounting standards (139 ) — (139 ) Adjusted balance at beginning of period 4,934 (6,112 ) (1,178 ) Impact of the adoption of new accounting standards (455 ) (1,381 ) (1,836 ) Other comprehensive income (loss) before reclassi fications (24,712 ) — (24,712 ) Reclassification adjustments from AOCI — 623 623 Total other comprehensive income (loss) (24,712 ) 623 (24,089 ) Balance at end of period $ (20,233 ) $ (6,870 ) $ (27,103 ) (dollars in thousands) Investment Defined AOCI Nine Months Ended September 30, 2017 Balance at beginning of period $ 4,729 $ (6,250 ) $ (1,521 ) Other comprehensive income (loss) before reclassifi cations 3,639 (627 ) 3,012 Reclassification adjustments from AOCI 987 738 1,725 Total other comprehensive income (loss) 4,626 111 4,737 Balance at end of period $ 9,355 $ (6,139 ) $ 3,216 |
Schedule of amounts reclassified out of each component of AOCI | The following table presents the amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2018 and 2017 : Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended September 30, (dollars in thousands) 2018 2017 Sale of investment securities available-for-sale $ — $ — Investment securities gains (losses) — — Income tax benefit (expense) $ — $ — Net of tax Amortization of defined benefit retirement and supplemental executive retirement plan items Net actuarial loss $ (289 ) $ (324 ) (1) Net transition obligation (5 ) (4 ) (1) Prior service cost (4 ) (5 ) (1) Settlement — — (1) (298 ) (333 ) Total before tax 81 48 Income tax benefit (expense) $ (217 ) $ (285 ) Net of tax Total reclassification adjustments from AOCI for the period $ (217 ) $ (285 ) Net of tax Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Nine months ended September 30, (dollars in thousands) 2018 2017 Sale of investment securities available-for-sale $ — $ (1,640 ) Investment securities gains (losses) — 653 Income tax benefit (expense) $ — $ (987 ) Net of tax Amortization of defined benefit retirement and supplemental executive retirement plan items Net actuarial loss $ (865 ) $ (971 ) (1) Net transition obligation (14 ) (13 ) (1) Prior service cost (13 ) (13 ) (1) Settlement — (138 ) (1) (892 ) (1,135 ) Total before tax 269 397 Income tax benefit (expense) $ (623 ) $ (738 ) Net of tax Total reclassification adjustments from AOCI for the period $ (623 ) $ (1,725 ) Net of tax (1) These AOCI components are included in the computation of net periodic pension cost (see Note 14 - Pension and Supplemental Executive Retirement Plans for additional details). |
PENSION AND SUPPLEMENTAL EXEC_2
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Pension Plan | |
PENSION PLANS | |
Schedule of components of net periodic benefit cost | The following table sets forth the components of net periodic benefit cost for the Pension Plan for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Interest cost $ 199 $ 232 $ 597 $ 694 Expected return on plan assets (302 ) (264 ) (906 ) (792 ) Amortization of net actuarial loss 245 298 735 894 Net periodic cost $ 142 $ 266 $ 426 $ 796 |
SERPs | |
PENSION PLANS | |
Schedule of components of net periodic benefit cost | The following table sets forth the components of net periodic benefit cost for the SERPs for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands) 2018 2017 2018 2017 Interest cost $ 97 $ 107 $ 292 $ 322 Amortization of net actuarial loss 44 26 130 77 Amortization of net transition obligation 5 4 14 13 Amortization of prior service cost 4 5 13 13 Settlement — — — 138 Net periodic cost $ 150 $ 142 $ 449 $ 563 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of information used to compute basic and diluted earnings per share | The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: Three Months Ended Nine Months Ended (dollars in thousands, except per share data) 2018 2017 2018 2017 Net income $ 15,193 $ 11,812 $ 43,694 $ 36,916 Weighted average common shares outstanding - basic 29,297,465 30,300,195 29,536,536 30,526,260 Dilutive effect of employee stock options and awards 182,347 214,264 206,702 232,729 Weighted average common shares outstanding - diluted 29,479,812 30,514,459 29,743,238 30,758,989 Basic earnings per common share $ 0.52 $ 0.39 $ 1.48 $ 1.21 Diluted earnings per common share $ 0.52 $ 0.39 $ 1.47 $ 1.20 Anti-dilutive employee stock options and awards outstanding — 80 — 8 |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of financial instruments | Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant September 30, 2018 Financial assets Cash and due from banks $ 82,668 $ 82,668 $ 82,668 $ — $ — Interest-bearing deposits in other banks 7,051 7,051 7,051 — — Investment securities 1,386,739 1,380,353 885 1,368,324 11,144 Loans held for sale 4,460 4,460 — 4,460 — Net loans and leases 3,931,201 3,804,844 — 19,170 3,785,674 Mortgage servicing rights 15,634 18,315 — — 18,315 Federal Home Loan Bank stock 10,965 N/A N/A N/A N/A Financial liabilities Deposits: Noninterest-bearing demand 1,403,534 1,403,534 1,403,534 — — Interest-bearing demand and savings and money market 2,438,595 2,438,595 2,438,595 — — Time 1,161,551 1,152,739 — 1,152,739 Short-term borrowings 105,000 105,000 — 105,000 — Long-term debt 92,785 88,344 — 88,344 — Fair Value Measurement Using (dollars in thousands) Notional Carrying Estimated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant September 30, 2018 Derivatives Interest rate lock commitments $ 15,463 $ (4 ) $ (4 ) $ — $ (4 ) $ — Forward sale commitments 19,861 67 67 — 67 — Off-balance sheet financial instruments Commitments to extend credit 1,066,761 — 1,272 — 1,272 — Standby letters of credit and financial guarantees written 13,465 — 202 — 202 — Fair Value Measurement Using (dollars in thousands) Carrying Estimated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant December 31, 2017 Financial assets Cash and due from banks $ 75,318 $ 75,318 $ 75,318 $ — $ — Interest-bearing deposits in other banks 6,975 6,975 6,975 — — Investment securities 1,496,644 1,494,092 825 1,481,473 11,794 Loans held for sale 16,336 16,336 — 16,336 — Net loans and leases 3,720,614 3,684,834 — 21,280 3,663,554 Mortgage servicing rights 15,843 17,161 — — 17,161 Federal Home Loan Bank stock 7,761 N/A N/A N/A N/A Financial liabilities Deposits: Noninterest-bearing demand 1,395,556 1,395,556 1,395,556 — — Interest-bearing demand and savings and money market 2,414,930 2,414,930 2,414,930 — — Time 1,145,868 1,140,064 — — 1,140,064 Short-term borrowings 32,000 32,000 — 32,000 — Long-term debt 92,785 70,139 — 70,139 — |
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value of assets and liabilities measured on a recurring basis as of September 30, 2018 and December 31, 2017 : Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant September 30, 2018 Available-for-sale securities Debt securities: States and political subdivisions $ 173,552 $ — $ 162,408 $ 11,144 Corporate securities 65,133 — 65,133 — U.S. Treasury obligations and direct obligations of U.S Government agencies 33,919 — 33,919 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 734,357 — 734,357 — Commercial - U.S. Government agencies and sponsored entities 51,205 — 51,205 — Residential - Non-government agencies 41,370 — 41,370 — Commercial - Non-government agencies 133,466 — 133,466 — Total available-for-sale securities 1,233,002 — 1,221,858 11,144 Equity securities 885 885 — — Derivatives - Interest rate lock and forward sale commitments 63 — 63 — Total $ 1,233,950 $ 885 $ 1,221,921 $ 11,144 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant December 31, 2017 Available-for-sale securities Debt securities: States and political subdivisions $ 179,781 $ — $ 167,987 $ 11,794 Corporate securities 74,278 — 74,278 — U.S. Treasury obligations and direct obligations of U.S Government agencies 25,510 — 25,510 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 800,683 — 800,683 — Commercial - U.S. Government agencies and sponsored entities 39,725 — 39,725 — Residential - Non-government agencies 46,763 — 46,763 — Commercial - Non-government agencies 137,326 — 137,326 — Total available-for-sale securities 1,304,066 — 1,292,272 11,794 Equity securities 825 825 — — Derivatives - Interest rate lock and forward sale commitments (14 ) — (14 ) — Total $ 1,304,877 $ 825 $ 1,292,258 $ 11,794 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the nine months ended September 30, 2018 and 2017 , the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: (dollars in thousands) Available for Sale Balance at December 31, 2017 $ 11,794 Principal payments received (280 ) Unrealized net gain (loss) included in other comprehensive income (370 ) Balance at September 30, 2018 $ 11,144 Balance at December 31, 2016 $ 12,196 Principal payments received (268 ) Unrealized net gain (loss) included in other comprehensive income 170 Balance at September 30, 2017 $ 12,098 |
Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis | the level of valuation assumptions used to determine the respective fair values as of September 30, 2018 and December 31, 2017 : Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant September 30, 2018 Impaired loans (1) $ 19,170 $ — $ 19,170 $ — Mortgage servicing rights 18,315 — — 18,315 Other real estate (2) 414 — 414 — December 31, 2017 Impaired loans (1) $ 21,280 $ — $ 21,280 $ — Mortgage servicing rights 17,161 — — 17,161 Other real estate (2) 851 — 851 — (1) Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral. (2) Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment profits (losses) and assets | Segment profits and assets are provided in the following table for the periods indicated. (dollars in thousands) Banking Treasury All Others Total Three Months Ended September 30, 2018 Net interest income $ 38,872 $ 4,453 $ — $ 43,325 Inter-segment net interest income (expense) 7,524 (4,327 ) (3,197 ) — Credit (provision) for loan and lease losses 59 — — 59 Other operating income: Mortgage banking income 1,173 — 750 1,923 Service charges on deposit accounts 2,189 — — 2,189 Other service charges and fees 1,318 8 1,960 3,286 Income from fiduciary activities 1,159 — — 1,159 Equity in earnings of unconsolidated subsidiaries 71 — — 71 Fees on foreign exchange 22 198 — 220 Income from bank-owned life insurance — 1,055 — 1,055 Loan placement fees 115 — — 115 Other 448 58 296 802 Other operating income 6,495 1,319 3,006 10,820 Other operating expense (16,265 ) (335 ) (17,539 ) (34,139 ) Administrative and overhead expense allocation (15,481 ) (206 ) 15,687 — Income before taxes 21,204 904 (2,043 ) 20,065 Income tax (expense) benefit (5,128 ) (215 ) 471 (4,872 ) Net income (loss) $ 16,076 $ 689 $ (1,572 ) $ 15,193 (dollars in thousands) Banking Treasury All Others Total Three Months Ended September 30, 2017 Net interest income $ 35,191 $ 6,804 $ — $ 41,995 Inter-segment net interest income (expense) 8,530 (6,299 ) (2,231 ) — Credit (provision) for loan and lease losses 126 — — 126 Other operating income: Mortgage banking income 684 — 847 1,531 Service charges on deposit accounts 2,182 — — 2,182 Other service charges and fees 1,303 — 1,882 3,185 Income from fiduciary activities 911 — — 911 Equity in earnings of unconsolidated subsidiaries 176 — — 176 Fees on foreign exchange 23 78 101 Income from bank-owned life insurance — 1,074 — 1,074 Loan placement fees 86 — — 86 Net gain (loss) sale of foreclosed assets — — 19 19 Other 140 7 157 304 Other operating income 5,505 1,159 2,905 9,569 Other operating expense (15,242 ) (338 ) (17,931 ) (33,511 ) Administrative and overhead expense allocation (15,635 ) (311 ) 15,946 — Income before taxes 18,475 1,015 (1,311 ) 18,179 Income tax (expense) benefit (6,470 ) (360 ) 463 (6,367 ) Net income (loss) $ 12,005 $ 655 $ (848 ) $ 11,812 (dollars in thousands) Banking Treasury All Others Total Nine Months Ended September 30, 2018 Net interest income $ 112,295 $ 16,024 $ — $ 128,319 Inter-segment net interest income (expense) 21,360 (14,717 ) (6,643 ) — Credit (provision) for loan and lease losses (262 ) — — (262 ) Other operating income: Mortgage banking income 3,089 — 2,456 5,545 Service charges on deposit accounts 6,169 — — 6,169 Other service charges and fees 3,748 22 5,927 9,697 Income from fiduciary activities 3,132 — — 3,132 Equity in earnings of unconsolidated subsidiaries 151 — — 151 Fees on foreign exchange 75 633 — 708 Income from bank-owned life insurance — 1,874 — 1,874 Loan placement fees 532 — — 532 Other 803 60 733 1,596 Other operating income 17,699 2,589 9,116 29,404 Other operating expense (47,967 ) (1,078 ) (52,336 ) (101,381 ) Administrative and overhead expense allocation (45,594 ) (652 ) 46,246 — Income before taxes 57,531 2,166 (3,617 ) 56,080 Income tax (expense) benefit (12,707 ) (478 ) 799 (12,386 ) Net income (loss) $ 44,824 $ 1,688 $ (2,818 ) $ 43,694 (dollars in thousands) Banking Treasury All Others Total Nine Months Ended September 30, 2017 Net interest income $ 103,839 $ 21,040 $ — $ 124,879 Inter-segment net interest income (expense) 24,618 (18,828 ) (5,790 ) — Credit (provision) for loan and lease losses 2,488 — — 2,488 Other operating income: Mortgage banking income 2,953 — 2,478 5,431 Service charges on deposit accounts 6,338 — — 6,338 Other service charges and fees 3,288 — 5,698 8,986 Income from fiduciary activities 2,739 — — 2,739 Equity in earnings of unconsolidated subsidiaries 388 — — 388 Fees on foreign exchange 65 329 — 394 Investments securities gains (losses) — (1,640 ) — (1,640 ) Income from bank-owned life insurance — 2,774 — 2,774 Loan placement fees 366 — — 366 Net gain (loss) sale of foreclosed assets — — 205 205 Other 936 24 512 1,472 Other operating income 17,073 1,487 8,893 27,453 Other operating expense (45,095 ) (1,048 ) (51,163 ) (97,306 ) Administrative and overhead expense allocation (44,360 ) (741 ) 45,101 — Income before taxes 58,563 1,910 (2,959 ) 57,514 Income tax (expense) benefit (20,974 ) (684 ) 1,060 (20,598 ) Net income $ 37,589 $ 1,226 $ (1,899 ) $ 36,916 (dollars in thousands) Banking Treasury All Others Total September 30, 2018 Investment securities $ — $ 1,386,739 $ — $ 1,386,739 Loans and leases (including loans held for sale) 3,982,487 — — 3,982,487 Other 40,814 237,043 81,557 359,414 Total assets $ 4,023,301 $ 1,623,782 $ 81,557 $ 5,728,640 (dollars in thousands) Banking Treasury All Others Total December 31, 2017 Investment securities $ — $ 1,496,644 $ — $ 1,496,644 Loans and leases (including loans held for sale) 3,786,951 — — 3,786,951 Other 42,243 228,608 69,262 340,113 Total assets $ 3,829,194 $ 1,725,252 $ 69,262 $ 5,623,708 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2015 |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Equity Method Investments | $ 0.2 | $ 0.6 | |
Cost Method Investments | $ 15.1 | $ 6.5 | |
Gentry Home Loans L L C | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Percentage of equity method investment ownership interest | 50.00% | ||
Pacific Access Mortgage L L C | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Percentage of equity method investment ownership interest | 50.00% | ||
Haseko Home Loans L L C | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Percentage of equity method investment ownership interest | 50.00% | ||
Island Pacific HomeLoans, LLC | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Percentage of equity method investment ownership interest | 50.00% | ||
Primary Beneficiary | One Hawaii HomeLoans, LLC | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Ownership interest acquired | 50.00% |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other service charges and fees | $ 3,286 | $ 3,185 | $ 9,697 | $ 8,986 | ||
Equity securities, at fair value | 885 | 885 | $ 825 | |||
Accumulated other comprehensive income (loss) | (27,103) | (27,103) | $ (1,039) | |||
Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other service charges and fees | $ 200 | $ 500 | ||||
Accounting Standards Update 2016-01 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated other comprehensive income (loss) | $ 100 | |||||
Accounting Standards Update 2018-02 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | 1,400 | |||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | $ 500 |
INVESTMENT SECURITIES (Availabl
INVESTMENT SECURITIES (Available for Sale and Held to Maturity Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Held-to-maturity: | ||
Amortized Cost | $ 152,852 | $ 191,753 |
Gross unrealized gains | 0 | 106 |
Gross unrealized losses | (6,386) | (2,658) |
Fair value | 146,466 | 189,201 |
Available for Sale | ||
Amortized cost | 1,269,884 | 1,306,741 |
Gross unrealized gains | 1,561 | 8,458 |
Gross unrealized losses | (38,443) | (11,133) |
Fair value | 1,233,002 | 1,304,066 |
Equity securities | ||
Fair Value | 885 | 825 |
Residential - U.S. Government-sponsored entities | ||
Held-to-maturity: | ||
Amortized Cost | 87,356 | 100,279 |
Gross unrealized gains | 0 | 106 |
Gross unrealized losses | (4,339) | (2,222) |
Fair value | 83,017 | 98,163 |
Available for Sale | ||
Amortized cost | 763,635 | 808,242 |
Gross unrealized gains | 297 | 2,230 |
Gross unrealized losses | (29,575) | (9,789) |
Fair value | 734,357 | 800,683 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale | ||
Amortized cost | 53,618 | 40,012 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2,413) | (287) |
Fair value | 51,205 | 39,725 |
Commercial - U.S. Government-sponsored entities | ||
Held-to-maturity: | ||
Amortized Cost | 65,496 | 91,474 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2,047) | (436) |
Fair value | 63,449 | 91,038 |
States and political subdivisions | ||
Available for Sale | ||
Amortized cost | 175,495 | 178,459 |
Gross unrealized gains | 788 | 2,041 |
Gross unrealized losses | (2,731) | (719) |
Fair value | 173,552 | 179,781 |
Corporate securities | ||
Available for Sale | ||
Amortized cost | 65,587 | 73,772 |
Gross unrealized gains | 23 | 582 |
Gross unrealized losses | (477) | (76) |
Fair value | 65,133 | 74,278 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Available for Sale | ||
Amortized cost | 34,566 | 25,519 |
Gross unrealized gains | 0 | 60 |
Gross unrealized losses | (647) | (69) |
Fair value | 33,919 | 25,510 |
Residential - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 42,069 | 45,679 |
Gross unrealized gains | 132 | 1,084 |
Gross unrealized losses | (831) | 0 |
Fair value | 41,370 | 46,763 |
Commercial - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 134,914 | 135,058 |
Gross unrealized gains | 321 | 2,461 |
Gross unrealized losses | (1,769) | (193) |
Fair value | 133,466 | 137,326 |
Equity securities | ||
Equity securities | ||
Amortized Cost | 712 | 686 |
Gross Unrealized Gains | 173 | 139 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 885 | $ 825 |
INVESTMENT SECURITIES (Amortize
INVESTMENT SECURITIES (Amortized Cost and Estimated Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Held to Maturity, Amortized Cost | ||
Mortgage-backed securities | $ 152,852 | |
Held to Maturity, Estimated Fair Value | ||
Mortgage-backed securities | 146,466 | |
Available for Sale, Amortized Cost | ||
Due in one year or less | 63,878 | |
Due after one year through five years | 103,852 | |
Due after five years through ten years | 50,639 | |
Due after ten years | 57,279 | |
Total | 1,269,884 | |
Available for Sale, Estimated Fair Value | ||
Due in one year or less | 63,916 | |
Due after one year through five years | 103,115 | |
Due after five years through ten years | 49,629 | |
Due after ten years | 55,944 | |
Available-for-sale debt securities, at fair value | 1,233,002 | $ 1,304,066 |
Equity securities, at fair value | 885 | 825 |
Residential - U.S. Government-sponsored entities | ||
Held to Maturity, Amortized Cost | ||
Mortgage-backed securities | 87,356 | |
Held to Maturity, Estimated Fair Value | ||
Mortgage-backed securities | 83,017 | |
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 763,635 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 734,357 | |
Available-for-sale debt securities, at fair value | 734,357 | 800,683 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 53,618 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 51,205 | |
Available-for-sale debt securities, at fair value | 51,205 | 39,725 |
Commercial - U.S. Government-sponsored entities | ||
Held to Maturity, Amortized Cost | ||
Mortgage-backed securities | 65,496 | |
Held to Maturity, Estimated Fair Value | ||
Mortgage-backed securities | 63,449 | |
Residential - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 42,069 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 41,370 | |
Available-for-sale debt securities, at fair value | 41,370 | 46,763 |
Commercial - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 134,914 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 133,466 | |
Available-for-sale debt securities, at fair value | 133,466 | 137,326 |
Equity securities | ||
Available for Sale, Estimated Fair Value | ||
Equity securities, at amortized cost | 712 | 686 |
Equity securities, at fair value | $ 885 | $ 825 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018USD ($)securityshares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($)securityshares | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)security | |
Class of Stock [Line Items] | |||||||
Available-for-sale securities, sold at par | $ 0 | $ 0 | $ 97,700 | $ 0 | $ 0 | ||
Payments to acquire available-for-sale securities | $ 97,400 | 85,334 | $ 333,242 | ||||
Available-for-sale securities, average yield of securities sold | 1.91% | ||||||
Available-for-sale securities, gross realized gains (losses), sale proceeds | $ 96,000 | ||||||
Available-for-sale securities, average yield of securities acquired | 2.57% | ||||||
Available-for-sale securities, gross realized losses | $ 1,600 | ||||||
Investment securities pledged as collateral | $ 1,000,000 | $ 1,000,000 | $ 1,080,000 | ||||
Number of investment securities in an unrealized loss position | security | 379 | 379 | 223 | ||||
Visa [Member] | Common Class B [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares owned (in shares) | shares | 34,631 | 34,631 | |||||
Credit Card Intermediary [Member] | Common Class B [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares owned (in shares) | shares | 11,170 | 11,170 |
INVESTMENT SECURITIES (Investme
INVESTMENT SECURITIES (Investment Securities at an Unrealized Loss Position) (Details) $ in Thousands | Sep. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of investment securities in an unrealized loss position | security | 379 | 223 |
Total temporary impaired securities | ||
Less than 12 months, Fair Value | $ 634,349 | $ 559,687 |
Less than 12 months, Unrealized Losses | (14,551) | (4,662) |
12 months or longer, Fair Value | 605,309 | 360,929 |
12 months or longer, Unrealized Losses | (30,278) | (9,129) |
Total, Fair Value | 1,239,658 | 920,616 |
Total, Unrealized Losses | (44,829) | (13,791) |
States and political subdivisions | ||
Total temporary impaired securities | ||
Less than 12 months, Fair Value | 87,069 | 53,811 |
Less than 12 months, Unrealized Losses | (1,225) | (305) |
12 months or longer, Fair Value | 26,654 | 15,403 |
12 months or longer, Unrealized Losses | (1,506) | (414) |
Total, Fair Value | 113,723 | 69,214 |
Total, Unrealized Losses | (2,731) | (719) |
Corporate securities | ||
Total temporary impaired securities | ||
Less than 12 months, Fair Value | 54,275 | 0 |
Less than 12 months, Unrealized Losses | (301) | 0 |
12 months or longer, Fair Value | 5,130 | 5,307 |
12 months or longer, Unrealized Losses | (176) | (76) |
Total, Fair Value | 59,405 | 5,307 |
Total, Unrealized Losses | (477) | (76) |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Total temporary impaired securities | ||
Less than 12 months, Fair Value | 31,220 | 10,740 |
Less than 12 months, Unrealized Losses | (602) | (69) |
12 months or longer, Fair Value | 2,699 | 0 |
12 months or longer, Unrealized Losses | (45) | 0 |
Total, Fair Value | 33,919 | 10,740 |
Total, Unrealized Losses | (647) | (69) |
Residential - U.S. Government-sponsored entities | ||
Total temporary impaired securities | ||
Less than 12 months, Fair Value | 285,808 | 335,883 |
Less than 12 months, Unrealized Losses | (7,950) | (3,372) |
12 months or longer, Fair Value | 513,681 | 340,219 |
12 months or longer, Unrealized Losses | (25,964) | (8,639) |
Total, Fair Value | 799,489 | 676,102 |
Total, Unrealized Losses | (33,914) | (12,011) |
Residential - Non-government agencies | ||
Total temporary impaired securities | ||
Less than 12 months, Fair Value | 24,690 | 0 |
Less than 12 months, Unrealized Losses | (831) | 0 |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 24,690 | 0 |
Total, Unrealized Losses | (831) | 0 |
Commercial - U.S. Government-sponsored entities | ||
Total temporary impaired securities | ||
Less than 12 months, Fair Value | 57,509 | 130,763 |
Less than 12 months, Unrealized Losses | (1,873) | (723) |
12 months or longer, Fair Value | 57,145 | 0 |
12 months or longer, Unrealized Losses | (2,587) | 0 |
Total, Fair Value | 114,654 | 130,763 |
Total, Unrealized Losses | (4,460) | (723) |
Commercial - Non-government agencies | ||
Total temporary impaired securities | ||
Less than 12 months, Fair Value | 93,778 | 28,490 |
Less than 12 months, Unrealized Losses | (1,769) | (193) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 93,778 | 28,490 |
Total, Unrealized Losses | $ (1,769) | $ (193) |
LOANS AND LEASES (Loans and Lea
LOANS AND LEASES (Loans and Leases) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
May 31, 2018USD ($) | Nov. 30, 2017USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2018USD ($)contractloan | Sep. 30, 2017USD ($)contractloan | Dec. 31, 2017USD ($) | |
LOANS AND LEASES | |||||||||
Number of loans foreclosed | loan | 1 | 1 | |||||||
Loans foreclosed | $ 40 | $ 100 | $ 40 | $ 100 | |||||
Number of TDRs included in nonperforming assets | contract | 3 | 1 | 3 | 2 | |||||
Loans and leases, gross | $ 3,975,808 | $ 3,975,808 | $ 3,768,106 | ||||||
Net deferred costs | 2,219 | 2,219 | 2,509 | ||||||
Total loans and leases, net of deferred costs | 3,978,027 | $ 3,978,027 | 3,770,615 | ||||||
Number of loans transferred to held-for-sale | loan | 0 | 0 | |||||||
Number of loans sold | loan | 0 | 0 | |||||||
Commercial, Financial & Agricultural | |||||||||
LOANS AND LEASES | |||||||||
Number of TDRs included in nonperforming assets | contract | 0 | 0 | 1 | ||||||
Loans and leases, gross | 564,900 | $ 564,900 | 503,738 | ||||||
Net deferred costs | 464 | 464 | 281 | ||||||
Total loans and leases, net of deferred costs | 565,364 | 565,364 | 504,019 | ||||||
Real Estate | Construction | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 69,065 | 69,065 | 64,525 | ||||||
Net deferred costs | (424) | (424) | (285) | ||||||
Total loans and leases, net of deferred costs | 68,641 | 68,641 | 64,240 | ||||||
Real Estate | Home Equity | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 455,599 | 455,599 | 412,230 | ||||||
Net deferred costs | 0 | 0 | 0 | ||||||
Total loans and leases, net of deferred costs | $ 455,599 | $ 455,599 | 412,230 | ||||||
Real Estate | Residential Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Number of TDRs included in nonperforming assets | contract | 3 | 1 | 3 | 1 | |||||
Loans and leases, gross | $ 1,388,925 | $ 1,388,925 | 1,337,193 | ||||||
Net deferred costs | 3,744 | 3,744 | 4,028 | ||||||
Total loans and leases, net of deferred costs | 1,392,669 | 1,392,669 | 1,341,221 | ||||||
Real Estate | Commercial Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 1,034,951 | 1,034,951 | 979,239 | ||||||
Net deferred costs | (1,501) | (1,501) | (1,442) | ||||||
Total loans and leases, net of deferred costs | 1,033,450 | 1,033,450 | 977,797 | ||||||
Consumer | Weighted average | |||||||||
LOANS AND LEASES | |||||||||
Weighted average yield | 3.89% | 3.04% | 2.67% | 2.60% | |||||
Consumer | Automobiles | |||||||||
LOANS AND LEASES | |||||||||
Payments to acquire loans receivable | $ 20,600 | $ 33,100 | $ 26,600 | $ 24,100 | |||||
Premium over loan outstanding balance | 100 | 1,100 | 900 | 400 | |||||
Consumer | Consumer | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 462,198 | 462,198 | 470,819 | ||||||
Net deferred costs | (64) | (64) | (73) | ||||||
Total loans and leases, net of deferred costs | 462,134 | 462,134 | 470,746 | ||||||
Consumer | Uncollateralized | Automobiles | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | $ 20,500 | $ 31,900 | $ 25,700 | $ 23,800 | |||||
Weighted average remaining term | 63 months | 76 months | 77 months | 55 months | |||||
Leases | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 170 | 170 | 362 | ||||||
Net deferred costs | 0 | 0 | 0 | ||||||
Total loans and leases, net of deferred costs | 170 | 170 | 362 | ||||||
Special Mention | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 22,478 | 22,478 | 29,157 | ||||||
Special Mention | Commercial, Financial & Agricultural | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 11,496 | 11,496 | 7,543 | ||||||
Special Mention | Real Estate | Construction | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 8,879 | ||||||
Special Mention | Real Estate | Home Equity | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Special Mention | Real Estate | Residential Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Special Mention | Real Estate | Commercial Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 10,982 | 10,982 | 12,735 | ||||||
Special Mention | Consumer | Consumer | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Special Mention | Leases | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Substandard | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 21,790 | 21,790 | 34,993 | ||||||
Substandard | Commercial, Financial & Agricultural | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 17,830 | 17,830 | 21,200 | ||||||
Substandard | Real Estate | Construction | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Substandard | Real Estate | Home Equity | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 415 | 415 | 416 | ||||||
Substandard | Real Estate | Residential Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 2,295 | 2,295 | 2,433 | ||||||
Substandard | Real Estate | Commercial Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 1,115 | 1,115 | 10,639 | ||||||
Substandard | Consumer | Consumer | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 135 | 135 | 305 | ||||||
Substandard | Leases | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Loss | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 198 | 198 | 271 | ||||||
Loss | Commercial, Financial & Agricultural | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Loss | Real Estate | Construction | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Loss | Real Estate | Home Equity | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Loss | Real Estate | Residential Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Loss | Real Estate | Commercial Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Loss | Consumer | Consumer | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 198 | 198 | 271 | ||||||
Loss | Leases | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 0 | 0 | 0 | ||||||
Pass | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 3,931,342 | 3,931,342 | 3,703,685 | ||||||
Pass | Commercial, Financial & Agricultural | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 535,574 | 535,574 | 474,995 | ||||||
Pass | Real Estate | Construction | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 69,065 | 69,065 | 55,646 | ||||||
Pass | Real Estate | Home Equity | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 455,184 | 455,184 | 411,814 | ||||||
Pass | Real Estate | Residential Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 1,386,630 | 1,386,630 | 1,334,760 | ||||||
Pass | Real Estate | Commercial Mortgage | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 1,022,854 | 1,022,854 | 955,865 | ||||||
Pass | Consumer | Consumer | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | 461,865 | 461,865 | 470,243 | ||||||
Pass | Leases | |||||||||
LOANS AND LEASES | |||||||||
Loans and leases, gross | $ 170 | $ 170 | $ 362 |
LOANS AND LEASES (Allowance for
LOANS AND LEASES (Allowance for Loan and Lease Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | $ 87 | $ 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 46,739 | 50,001 | ||||
Total ending balance | 46,826 | $ 48,181 | 50,001 | $ 51,217 | $ 52,828 | $ 56,631 |
Loans and leases : | ||||||
Individually evaluated for impairment | 19,257 | 21,280 | ||||
Collectively evaluated for impairment | 3,956,551 | 3,746,826 | ||||
Loans and leases | 3,975,808 | 3,768,106 | ||||
Net deferred costs | 2,219 | 2,509 | ||||
Total loans and leases, net of deferred costs | 3,978,027 | 3,770,615 | ||||
Commercial, Financial & Agricultural | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 7,867 | 7,594 | ||||
Total ending balance | 7,867 | 7,525 | 7,594 | 7,644 | 8,598 | 8,637 |
Loans and leases : | ||||||
Individually evaluated for impairment | 388 | 491 | ||||
Collectively evaluated for impairment | 564,512 | 503,247 | ||||
Loans and leases | 564,900 | 503,738 | ||||
Net deferred costs | 464 | 281 | ||||
Total loans and leases, net of deferred costs | 565,364 | 504,019 | ||||
Leases | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 0 | 0 | ||||
Total ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
Loans and leases : | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 170 | 362 | ||||
Loans and leases | 170 | 362 | ||||
Net deferred costs | 0 | 0 | ||||
Total loans and leases, net of deferred costs | 170 | 362 | ||||
Construction | Real Estate | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 1,291 | 1,835 | ||||
Total ending balance | 1,291 | 1,811 | 1,835 | 3,045 | 3,212 | 4,224 |
Loans and leases : | ||||||
Individually evaluated for impairment | 2,355 | 2,597 | ||||
Collectively evaluated for impairment | 66,710 | 61,928 | ||||
Loans and leases | 69,065 | 64,525 | ||||
Net deferred costs | (424) | (285) | ||||
Total loans and leases, net of deferred costs | 68,641 | 64,240 | ||||
Residential Mortgage | Real Estate | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 87 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 14,048 | 14,328 | ||||
Total ending balance | 14,135 | 14,252 | 14,328 | 13,632 | 14,034 | 15,055 |
Loans and leases : | ||||||
Individually evaluated for impairment | 12,660 | 13,862 | ||||
Collectively evaluated for impairment | 1,376,265 | 1,323,331 | ||||
Loans and leases | 1,388,925 | 1,337,193 | ||||
Net deferred costs | 3,744 | 4,028 | ||||
Total loans and leases, net of deferred costs | 1,392,669 | 1,341,221 | ||||
Home Equity | Real Estate | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 3,718 | 3,317 | ||||
Total ending balance | 3,718 | 3,168 | 3,317 | 3,242 | 3,370 | 3,502 |
Loans and leases : | ||||||
Individually evaluated for impairment | 415 | 416 | ||||
Collectively evaluated for impairment | 455,184 | 411,814 | ||||
Loans and leases | 455,599 | 412,230 | ||||
Net deferred costs | 0 | 0 | ||||
Total loans and leases, net of deferred costs | 455,599 | 412,230 | ||||
Commercial Mortgage | Real Estate | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 13,470 | 16,801 | ||||
Total ending balance | 13,470 | 15,094 | 16,801 | 17,650 | 18,184 | 19,104 |
Loans and leases : | ||||||
Individually evaluated for impairment | 3,439 | 3,914 | ||||
Collectively evaluated for impairment | 1,031,512 | 975,325 | ||||
Loans and leases | 1,034,951 | 979,239 | ||||
Net deferred costs | (1,501) | (1,442) | ||||
Total loans and leases, net of deferred costs | 1,033,450 | 977,797 | ||||
Consumer | Consumer | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 6,345 | 6,126 | ||||
Total ending balance | 6,345 | $ 6,331 | 6,126 | $ 6,004 | $ 5,430 | $ 6,109 |
Loans and leases : | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 462,198 | 470,819 | ||||
Loans and leases | 462,198 | 470,819 | ||||
Net deferred costs | (64) | (73) | ||||
Total loans and leases, net of deferred costs | $ 462,134 | $ 470,746 |
LOANS AND LEASES (Impaired Loan
LOANS AND LEASES (Impaired 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 | |
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 87 | $ 87 | $ 0 | ||
Unpaid Principal Balance | |||||
Total | 25,746 | 25,746 | 27,799 | ||
Recorded Investment | |||||
Total | 19,257 | 19,257 | 21,280 | ||
Allowance Allocated | |||||
Impaired loans, allowance allocated | 87 | 87 | 0 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 19,568 | $ 26,218 | 20,351 | $ 28,737 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 201 | 397 | 630 | 1,710 | |
Commercial, Financial & Agricultural | |||||
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance recorded | 498 | 498 | 602 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 388 | 388 | 491 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 399 | 1,212 | 498 | 1,500 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 12 | 3 | 17 | 7 | |
Construction | Real Estate | |||||
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance recorded | 7,705 | 7,705 | 7,947 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 2,355 | 2,355 | 2,597 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 2,382 | 2,704 | 2,476 | 2,800 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 30 | 26 | 84 | 74 | |
Residential Mortgage | |||||
Allowance Allocated | |||||
Impaired loans, allowance allocated | 87 | 87 | |||
Residential Mortgage | Real Estate | |||||
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 87 | 87 | 0 | ||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance recorded | 13,689 | 13,689 | 14,920 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 12,660 | 12,660 | 13,862 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 12,857 | 16,444 | 13,208 | 17,951 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 123 | 189 | 419 | 1,356 | |
Loans in the process of foreclosure | 100 | 100 | 40 | ||
Home Equity | Real Estate | |||||
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance recorded | 415 | 415 | 416 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 415 | 415 | 416 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 447 | 1,418 | 516 | 1,343 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 0 | 1 | |||
Commercial Mortgage | Real Estate | |||||
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | ||
Unpaid Principal Balance | |||||
Impaired loans with no related allowance recorded | 3,439 | 3,439 | 3,914 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 3,439 | 3,439 | $ 3,914 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 3,483 | 4,440 | 3,653 | 5,143 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | $ 36 | $ 179 | $ 110 | $ 272 |
LOANS AND LEASES (Aging of Reco
LOANS AND LEASES (Aging of Recorded Investment) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | $ 2,612 | $ 2,775 |
Total Past Due and Nonaccrual | 9,945 | 13,819 |
Loans and Leases Not Past Due | 3,968,082 | 3,756,796 |
Total loans and leases, net of deferred costs | 3,978,027 | 3,770,615 |
Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 2,147 | 765 |
Loans and Leases Not Past Due | 563,217 | 503,254 |
Total loans and leases, net of deferred costs | 565,364 | 504,019 |
Leases | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Loans and Leases Not Past Due | 170 | 362 |
Total loans and leases, net of deferred costs | 170 | 362 |
Accruing Loans 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 5,362 | 6,678 |
Accruing Loans 30 - 59 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,821 | 410 |
Accruing Loans 30 - 59 Days Past Due | Leases | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Accruing Loans 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,638 | 3,802 |
Accruing Loans 60 - 89 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 326 | 355 |
Accruing Loans 60 - 89 Days Past Due | Leases | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 333 | 564 |
Accruing Loans Greater Than 90 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | Leases | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Residential Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 2,197 | 2,280 |
Total Past Due and Nonaccrual | 3,003 | 8,493 |
Loans and Leases Not Past Due | 1,389,666 | 1,332,728 |
Total loans and leases, net of deferred costs | 1,392,669 | 1,341,221 |
Residential Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 98 | 4,037 |
Residential Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 708 | 2,127 |
Residential Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 49 |
Construction | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 0 |
Loans and Leases Not Past Due | 68,641 | 64,240 |
Total loans and leases, net of deferred costs | 68,641 | 64,240 |
Construction | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Construction | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Construction | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Home Equity | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 415 | 416 |
Total Past Due and Nonaccrual | 1,997 | 785 |
Loans and Leases Not Past Due | 453,602 | 411,445 |
Total loans and leases, net of deferred costs | 455,599 | 412,230 |
Home Equity | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,582 | 105 |
Home Equity | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 264 |
Home Equity | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Commercial Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 79 |
Total Past Due and Nonaccrual | 12 | 79 |
Loans and Leases Not Past Due | 1,033,438 | 977,718 |
Total loans and leases, net of deferred costs | 1,033,450 | 977,797 |
Commercial Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 12 | 0 |
Commercial Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Commercial Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Consumer | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 2,786 | 3,697 |
Loans and Leases Not Past Due | 459,348 | 467,049 |
Total loans and leases, net of deferred costs | 462,134 | 470,746 |
Consumer | Accruing Loans 30 - 59 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,849 | 2,126 |
Consumer | Accruing Loans 60 - 89 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 604 | 1,056 |
Consumer | Accruing Loans Greater Than 90 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | $ 333 | $ 515 |
LOANS AND LEASES (Modifications
LOANS AND LEASES (Modifications) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)contractloan | Sep. 30, 2017USD ($)contract | Sep. 30, 2018USD ($)contractloan | Sep. 30, 2017USD ($)contract | Dec. 31, 2017USD ($) | |
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | contract | 3 | 1 | 3 | 2 | |
Recorded Investment | $ 575,000 | $ 70,000 | $ 575,000 | $ 702,000 | |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | 0 | $ 0 | ||
Loans modified as a TDR within the previous twelve months that subsequently defaulted | |||||
Number of loans were modified as a TDR within the previous twelve months that subsequently defaulted | loan | 0 | ||||
Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Recorded Investment, Past Due | $ 333,000 | $ 333,000 | $ 564,000 | ||
Commercial, Financial & Agricultural | |||||
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | contract | 0 | 0 | 1 | ||
Recorded Investment | $ 632,000 | ||||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | ||||
Commercial, Financial & Agricultural | Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Recorded Investment, Past Due | 0 | $ 0 | 0 | ||
Nonperforming Financial Instruments | |||||
Information related to loans modified in a TDR | |||||
Commitments to lend additional funds | 0 | 0 | |||
Amount of TDRs still accruing interest | 11,300,000 | $ 11,300,000 | $ 12,600,000 | ||
Holding period limit for accruing interest on TDRs | 90 days | 90 days | |||
Nonperforming Financial Instruments | Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Recorded Investment, Past Due | 0 | $ 0 | $ 0 | ||
Nonperforming Financial Instruments | Resi Mortgage | HAWAII | |||||
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | loan | 3 | ||||
Principal balances of troubled debt restructurings included in nonperforming assets | $ 400,000 | $ 400,000 | |||
Residential Mortgage | Real Estate | |||||
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | contract | 3 | 1 | 3 | 1 | |
Recorded Investment | $ 575,000 | $ 70,000 | $ 575,000 | $ 70,000 | |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 0 | 0 | $ 0 | ||
Residential Mortgage | Real Estate | Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Recorded Investment, Past Due | 0 | 0 | 49,000 | ||
Commercial Mortgage | Real Estate | Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Recorded Investment, Past Due | $ 0 | $ 0 | $ 0 |
LOANS AND LEASES (Class and Cre
LOANS AND LEASES (Class and Credit Indicator) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | $ 3,975,808 | $ 3,768,106 |
Net deferred costs | 2,219 | 2,509 |
Total loans and leases, net of deferred costs | 3,978,027 | 3,770,615 |
Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 564,900 | 503,738 |
Net deferred costs | 464 | 281 |
Total loans and leases, net of deferred costs | 565,364 | 504,019 |
Leases | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 170 | 362 |
Net deferred costs | 0 | 0 |
Total loans and leases, net of deferred costs | 170 | 362 |
Pass | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 3,931,342 | 3,703,685 |
Pass | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 535,574 | 474,995 |
Pass | Leases | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 170 | 362 |
Special Mention | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 22,478 | 29,157 |
Special Mention | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 11,496 | 7,543 |
Special Mention | Leases | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Substandard | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 21,790 | 34,993 |
Substandard | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 17,830 | 21,200 |
Substandard | Leases | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Loss | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 198 | 271 |
Loss | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Loss | Leases | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Construction | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 69,065 | 64,525 |
Net deferred costs | (424) | (285) |
Total loans and leases, net of deferred costs | 68,641 | 64,240 |
Construction | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 69,065 | 55,646 |
Construction | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 8,879 |
Construction | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Construction | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Residential Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 1,388,925 | 1,337,193 |
Net deferred costs | 3,744 | 4,028 |
Total loans and leases, net of deferred costs | 1,392,669 | 1,341,221 |
Residential Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 1,386,630 | 1,334,760 |
Residential Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Residential Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 2,295 | 2,433 |
Residential Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Home Equity | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 455,599 | 412,230 |
Net deferred costs | 0 | 0 |
Total loans and leases, net of deferred costs | 455,599 | 412,230 |
Home Equity | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 455,184 | 411,814 |
Home Equity | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Home Equity | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 415 | 416 |
Home Equity | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Commercial Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 1,034,951 | 979,239 |
Net deferred costs | (1,501) | (1,442) |
Total loans and leases, net of deferred costs | 1,033,450 | 977,797 |
Commercial Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 1,022,854 | 955,865 |
Commercial Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 10,982 | 12,735 |
Commercial Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 1,115 | 10,639 |
Commercial Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Consumer | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 462,198 | 470,819 |
Net deferred costs | (64) | (73) |
Total loans and leases, net of deferred costs | 462,134 | 470,746 |
Consumer | Pass | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 461,865 | 470,243 |
Consumer | Special Mention | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Consumer | Substandard | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 135 | 305 |
Consumer | Loss | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | $ 198 | $ 271 |
ALLOWANCE FOR LOAN AND LEASE _3
ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in the allowance | ||||
Beginning balance | $ 48,181 | $ 52,828 | $ 50,001 | $ 56,631 |
Provision (credit) for loan and lease losses | (59) | (126) | 262 | (2,488) |
Subtotal | 48,122 | 52,702 | 50,263 | 54,143 |
Charge-offs | 2,493 | 2,138 | 7,395 | 5,942 |
Recoveries | 1,197 | 653 | 3,958 | 3,016 |
Net charge-offs (recoveries) | 1,296 | 1,485 | 3,437 | 2,926 |
Ending balance | 46,826 | 51,217 | 46,826 | 51,217 |
Commercial, Financial & Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 7,525 | 8,598 | 7,594 | 8,637 |
Provision (credit) for loan and lease losses | 495 | (690) | 1,227 | (403) |
Subtotal | 8,020 | 7,908 | 8,821 | 8,234 |
Charge-offs | 731 | 429 | 1,971 | 1,266 |
Recoveries | 578 | 165 | 1,017 | 676 |
Net charge-offs (recoveries) | 153 | 264 | 954 | 590 |
Ending balance | 7,867 | 7,644 | 7,867 | 7,644 |
Leases | ||||
Changes in the allowance | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Provision (credit) for loan and lease losses | 0 | 0 | 0 | 0 |
Subtotal | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs (recoveries) | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
Construction | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 1,811 | 3,212 | 1,835 | 4,224 |
Provision (credit) for loan and lease losses | (526) | (207) | (1,749) | (1,296) |
Subtotal | 1,285 | 3,005 | 86 | 2,928 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 6 | 40 | 1,205 | 117 |
Net charge-offs (recoveries) | (6) | (40) | (1,205) | (117) |
Ending balance | 1,291 | 3,045 | 1,291 | 3,045 |
Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 14,252 | 14,034 | 14,328 | 15,055 |
Provision (credit) for loan and lease losses | (168) | (526) | (291) | (2,280) |
Subtotal | 14,084 | 13,508 | 14,037 | 12,775 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 51 | 124 | 98 | 857 |
Net charge-offs (recoveries) | (51) | (124) | (98) | (857) |
Ending balance | 14,135 | 13,632 | 14,135 | 13,632 |
Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 3,168 | 3,370 | 3,317 | 3,502 |
Provision (credit) for loan and lease losses | 544 | (134) | 383 | (295) |
Subtotal | 3,712 | 3,236 | 3,700 | 3,207 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 6 | 6 | 18 | 35 |
Net charge-offs (recoveries) | (6) | (6) | (18) | (35) |
Ending balance | 3,718 | 3,242 | 3,718 | 3,242 |
Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 15,094 | 18,184 | 16,801 | 19,104 |
Provision (credit) for loan and lease losses | (1,632) | (541) | (3,383) | (1,600) |
Subtotal | 13,462 | 17,643 | 13,418 | 17,504 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 8 | 7 | 52 | 146 |
Net charge-offs (recoveries) | (8) | (7) | (52) | (146) |
Ending balance | 13,470 | 17,650 | 13,470 | 17,650 |
Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | 6,331 | 5,430 | 6,126 | 6,109 |
Provision (credit) for loan and lease losses | 1,228 | 1,972 | 4,075 | 3,386 |
Subtotal | 7,559 | 7,402 | 10,201 | 9,495 |
Charge-offs | 1,762 | 1,709 | 5,424 | 4,676 |
Recoveries | 548 | 311 | 1,568 | 1,185 |
Net charge-offs (recoveries) | 1,214 | 1,398 | 3,856 | 3,491 |
Ending balance | $ 6,345 | $ 6,004 | $ 6,345 | $ 6,004 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Investments in Low Income Housing Tax Credit Partnerships | $ 12,267 | $ 12,267 | $ 3,608 | |||||
Trust preferred investments | 2,792 | 2,792 | 2,792 | |||||
Investments in affiliates | 170 | 170 | 634 | |||||
Other | 54 | 54 | 54 | |||||
Investment in unconsolidated subsidiaries | 15,283 | 15,283 | 7,088 | |||||
Other Commitment | 9,500 | 9,500 | $ 2,600 | |||||
Estimated Affordable Housing Program Expense [Line Items] | ||||||||
Amortization expense in pretax income | 114 | $ 174 | 341 | $ 630 | ||||
Income tax credits and adjustments | $ 152 | $ 218 | $ 457 | $ 744 | ||||
Scenario, Forecast [Member] | ||||||||
Estimated Affordable Housing Program Expense [Line Items] | ||||||||
Expected to be paid | $ 3,600 | $ 4,000 | $ 1,900 |
CORE DEPOSIT PREMIUM AND MORT_3
CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS (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 | Sep. 30, 2018 | Dec. 31, 2017 | |
OTHER INTANGIBLE ASSETS | |||||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | $ 1,082 | $ 705 | $ 3,013 | $ 3,101 | |||
Changes in other intangible assets | |||||||
Balance, beginning of period | 17,849 | 20,459 | $ 20,459 | ||||
Additions | 1,204 | 1,857 | |||||
Amortization | (3,419) | (3,549) | |||||
Balance, end of period | 15,634 | 18,767 | 15,634 | 18,767 | 17,849 | ||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||||
Gross Carrying Value | $ 110,247 | $ 109,043 | |||||
Accumulated Amortization | (94,613) | (91,194) | |||||
Other intangible assets | 15,634 | 18,767 | 17,849 | 20,459 | 20,459 | 15,634 | 17,849 |
Estimated Amortization Expense | |||||||
Other intangible assets | 15,634 | 18,767 | 17,849 | 20,459 | 20,459 | 15,634 | 17,849 |
Core Deposit Premium | |||||||
Changes in other intangible assets | |||||||
Balance, beginning of period | 2,006 | 4,680 | 4,680 | ||||
Additions | 0 | 0 | |||||
Amortization | (2,006) | (2,006) | |||||
Balance, end of period | 0 | 2,674 | 0 | 2,674 | 2,006 | ||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||||
Gross Carrying Value | 44,642 | 44,642 | |||||
Accumulated Amortization | (44,642) | (42,636) | |||||
Other intangible assets | 0 | 2,674 | 2,006 | 4,680 | 4,680 | 0 | 2,006 |
Estimated Amortization Expense | |||||||
Other intangible assets | 0 | 2,674 | 2,006 | 4,680 | 4,680 | 0 | 2,006 |
Mortgage Servicing Rights | |||||||
OTHER INTANGIBLE ASSETS | |||||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | 400 | 600 | 1,200 | 1,900 | |||
Changes in other intangible assets | |||||||
Balance, beginning of period | 15,843 | 15,779 | 15,779 | ||||
Additions | 1,204 | 1,857 | |||||
Amortization | (500) | (500) | (1,413) | (1,543) | |||
Balance, end of period | 15,634 | 16,093 | 15,634 | 16,093 | 15,843 | ||
Fair market value and key assumptions used in determining the fair market value | |||||||
Fair market value, beginning of period | 17,161 | 18,087 | 18,087 | ||||
Fair market value, end of period | 18,315 | 16,777 | $ 18,315 | $ 16,777 | $ 17,161 | ||
Weighted average discount rate | 9.50% | 9.50% | 9.50% | ||||
Forecasted constant prepayment rate assumption | 14.00% | 16.50% | 16.00% | ||||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||||
Gross Carrying Value | 65,605 | 64,401 | |||||
Accumulated Amortization | (49,971) | (48,558) | |||||
Other intangible assets | 15,634 | 16,093 | $ 15,843 | $ 15,779 | $ 15,779 | 15,634 | 15,843 |
Estimated Amortization Expense | |||||||
2018 (remainder) | 450 | ||||||
2,019 | 1,566 | ||||||
2,020 | 1,292 | ||||||
2,021 | 1,087 | ||||||
2,022 | 919 | ||||||
2,023 | 789 | ||||||
Thereafter | 9,531 | ||||||
Other intangible assets | $ 15,634 | $ 16,093 | $ 15,843 | $ 15,779 | $ 15,779 | $ 15,634 | $ 15,843 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Derivatives Not Designated as Hedging Instruments $ in Millions | Sep. 30, 2018USD ($) |
Interest rate lock commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 15.5 |
Forward sale commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 19.9 |
DERIVATIVES (Balance Sheet) (De
DERIVATIVES (Balance Sheet) (Details) - Derivatives Not Designated as Hedging Instruments - Interest rate lock and forward sale commitments - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Asset Derivatives | ||
Fair Value | $ 92 | $ 35 |
Liability Derivatives | ||
Fair Value | $ 29 | $ 49 |
DERIVATIVES (Income Statement)
DERIVATIVES (Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ 91 | $ (21) | $ 76 | $ (148) |
Mortgage banking income | Derivatives Not Designated as Hedging Instruments | Derivatives Not in Cash Flow Hedging Relationship | Interest rate lock and forward sale commitments | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | 91 | (21) | 76 | (148) |
Other income | Derivatives Not Designated as Hedging Instruments | Derivatives Not in Cash Flow Hedging Relationship | Loans held-for-sale | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ 0 | $ (3) | $ 0 | $ 0 |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) | 1 Months Ended | 9 Months Ended | |||
Dec. 31, 2004USD ($) | Sep. 30, 2004USD ($) | Oct. 31, 2003USD ($)trust | Sep. 30, 2018USD ($)period | Dec. 31, 2017USD ($) | |
LONG-TERM DEBT | |||||
Short-term borrowings | $ 105,000,000 | $ 32,000,000 | |||
Long term borrowings | 92,785,000 | 92,785,000 | |||
Number of wholly owned statutory trusts created | trust | 2 | ||||
Federal Home Loan Bank Borrowings | |||||
LONG-TERM DEBT | |||||
Line of Credit, maximum borrowing capacity | 1,670,000,000 | 1,500,000,000 | |||
Unused borrowings available | 1,560,000,000 | 1,470,000,000 | |||
Short-term borrowings | 105,000,000 | 32,000,000 | |||
Long term borrowings | 0 | 0 | |||
Commercial real estate and commercial loans pledged as collateral | 2,260,000,000 | ||||
Federal Reserve discount window line of credit | |||||
LONG-TERM DEBT | |||||
Unused borrowings available | 76,500,000 | 73,000,000 | |||
Commercial real estate and commercial loans pledged as collateral | $ 124,600,000 | $ 129,200,000 | |||
C P B Capital Trust I I [Member] | |||||
LONG-TERM DEBT | |||||
Common securities issued | $ 600,000 | ||||
Trust preferred securities issued value | $ 20,000,000 | ||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||
Trust preferred securities, basis spread on variable rate | 2.85% | ||||
C P B Capital Trust I I I [Member] | |||||
LONG-TERM DEBT | |||||
Common securities issued | $ 600,000 | ||||
Trust preferred securities issued value | $ 20,000,000 | ||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||
Trust preferred securities, basis spread on variable rate | 2.85% | ||||
C P B Capital Trust I V [Member] | |||||
LONG-TERM DEBT | |||||
Common securities issued | $ 900,000 | ||||
Trust preferred securities issued value | $ 30,000,000 | ||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||
Trust preferred securities, basis spread on variable rate | 2.45% | ||||
C P B Capital Trust V [Member] | |||||
LONG-TERM DEBT | |||||
Common securities issued | $ 600,000 | ||||
Trust preferred securities issued value | $ 20,000,000 | ||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||
Trust preferred securities, basis spread on variable rate | 1.87% | ||||
Subordinated Debt [Member] | |||||
LONG-TERM DEBT | |||||
Number of periods interest can be deferred | period | 20 | ||||
Subordinated Debt [Member] | C P B Capital Trust I I [Member] | |||||
LONG-TERM DEBT | |||||
Long term borrowings | $ 20,600,000 | ||||
Subordinated Debt [Member] | C P B Capital Trust I I I [Member] | |||||
LONG-TERM DEBT | |||||
Long term borrowings | 20,600,000 | ||||
Subordinated Debt [Member] | C P B Capital Trust I V [Member] | |||||
LONG-TERM DEBT | |||||
Long term borrowings | 30,900,000 | ||||
Subordinated Debt [Member] | C P B Capital Trust V [Member] | |||||
LONG-TERM DEBT | |||||
Long term borrowings | $ 20,600,000 | ||||
Maximum [Member] | Subordinated Debt [Member] | |||||
LONG-TERM DEBT | |||||
Redemption period | 90 days |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 6,267 | $ 5,993 | $ 18,088 | $ 17,250 |
Out-of-scope other operating income | 4,553 | 3,576 | 11,316 | 10,203 |
Total other operating income | 10,820 | 9,569 | 29,404 | 27,453 |
Service charges on deposit accounts | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 2,189 | 2,182 | 6,169 | 6,338 |
Other service charges and fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 2,778 | 2,766 | 8,169 | 7,490 |
Income from fiduciary activities | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 1,159 | 911 | 3,132 | 2,739 |
Fees on foreign exchange | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 26 | 29 | 86 | 112 |
Loan placement fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 115 | 86 | 532 | 366 |
Net gain (loss) sale of foreclosed assets | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 0 | $ 19 | $ 0 | $ 205 |
EQUITY (Details)
EQUITY (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Nov. 30, 2017 | Jan. 31, 2016 | |
EQUITY | ||||||
Shares of common stock repurchased | 849,290 | 697,483 | ||||
Central Pacific Bank | ||||||
EQUITY | ||||||
Statutory retained earnings | $ 87,500,000 | |||||
Common Stock | ||||||
EQUITY | ||||||
Up to value of shares repurchased | $ 24,800,000 | $ 26,600,000 | ||||
Shares of common stock repurchased | 849,290 | 864,483 | ||||
Common Stock | 2016 Repurchase Plan | ||||||
EQUITY | ||||||
Up to value of shares repurchased | $ 100,000 | |||||
Shares of common stock repurchased | 1,750 | |||||
Amount authorized under the Repurchase Plan | $ 30,000,000 | $ 30,000,000 | ||||
Common Stock | 2017 Repurchase Plan | ||||||
EQUITY | ||||||
Amount authorized under the Repurchase Plan | $ 50,000,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 28,700,000 |
MORTGAGE BANKING INCOME (Detail
MORTGAGE BANKING INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Loan servicing fees | $ 1,269 | $ 1,323 | $ 3,869 | $ 4,021 |
Amortization of mortgage servicing rights | (519) | (476) | (1,413) | (1,543) |
Gain on sale of residential mortgage loans | 1,082 | 705 | 3,013 | 3,101 |
Unrealized gain (loss) on interest rate locks | 91 | (21) | 76 | (148) |
Total mortgage banking income | $ 1,923 | $ 1,531 | $ 5,545 | $ 5,431 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - Restricted Stock Awards and Units | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Activity of nonvested shares | |
Nonvested restricted stock awards and units, beginning of period (in shares) | shares | 397,551 |
Changes during the period: | |
Granted (in shares) | shares | 116,152 |
Vested (in shares) | shares | (123,629) |
Forfeited (in shares) | shares | (20,294) |
Nonvested restricted stock awards and units, end of period (in shares) | shares | 369,780 |
Weighted Average Grant Date Fair Value | |
Nonvested restricted stock awards and units, beginning of period (in dollars per share) | $ / shares | $ 25.49 |
Changes during the period: | |
Granted (in dollars per share) | $ / shares | 29.51 |
Vested (in dollars per share) | $ / shares | 24.40 |
Forfeited (in dollars per share) | $ / shares | 27.47 |
Nonvested restricted stock awards and units, end of period (in dollars per share) | $ / shares | $ 27.01 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Before Tax | ||||
Net actuarial losses arising during the period, before tax | $ (1,042) | |||
Other comprehensive income (loss), before tax | $ (7,999) | $ (154) | $ (32,917) | 7,775 |
Tax Effect | ||||
Net actuarial losses arising during the period, tax | (415) | |||
Other comprehensive income, tax | (2,144) | (146) | (8,828) | 3,038 |
Net of Tax | ||||
Net actuarial losses arising during the period, net of tax | (627) | |||
Total other comprehensive income (loss), net of tax | (5,855) | (8) | (24,089) | 4,737 |
Net unrealized gains on investment securities | ||||
Before Tax | ||||
Other comprehensive income (loss) before reclassification, before tax | (8,297) | (487) | (33,809) | 6,042 |
Reclassification from AOCI, before tax | 0 | 0 | 0 | 1,640 |
Other comprehensive income (loss), before tax | (8,297) | (487) | (33,809) | 7,682 |
Tax Effect | ||||
Other comprehensive income (loss) before reclassifications, tax | (2,225) | (194) | (9,097) | 2,403 |
Reclassification from AOCI, tax | 0 | 0 | 0 | 653 |
Other comprehensive income, tax | (2,225) | (194) | (9,097) | 3,056 |
Net of Tax | ||||
Other comprehensive income (loss), before reclassifications, net of tax | (6,072) | (293) | (24,712) | 3,639 |
Reclassification from AOCI, net of tax | 0 | 0 | 0 | 987 |
Total other comprehensive income (loss), net of tax | (6,072) | (293) | (24,712) | 4,626 |
Amortization of net actuarial loss | ||||
Before Tax | ||||
Reclassification from AOCI, before tax | 289 | 324 | 865 | 971 |
Tax Effect | ||||
Reclassification from AOCI, tax | 78 | 44 | 262 | 331 |
Net of Tax | ||||
Reclassification from AOCI, net of tax | 211 | 280 | 603 | 640 |
Amortization of net transition obligation | ||||
Before Tax | ||||
Reclassification from AOCI, before tax | 5 | 4 | 14 | 13 |
Tax Effect | ||||
Reclassification from AOCI, tax | 2 | 2 | 4 | 5 |
Net of Tax | ||||
Reclassification from AOCI, net of tax | 3 | 2 | 10 | 8 |
Amortization of prior service cost | ||||
Before Tax | ||||
Reclassification from AOCI, before tax | 4 | 5 | 13 | 13 |
Tax Effect | ||||
Reclassification from AOCI, tax | 1 | 2 | 3 | 5 |
Net of Tax | ||||
Reclassification from AOCI, net of tax | 3 | 3 | 10 | 8 |
Settlement | ||||
Before Tax | ||||
Reclassification from AOCI, before tax | 0 | 138 | ||
Tax Effect | ||||
Reclassification from AOCI, tax | 0 | 56 | ||
Net of Tax | ||||
Reclassification from AOCI, net of tax | 0 | 82 | ||
Defined benefit plans, net | ||||
Before Tax | ||||
Other comprehensive income (loss), before tax | (298) | (333) | (892) | (93) |
Tax Effect | ||||
Other comprehensive income, tax | (81) | (48) | (269) | 18 |
Net of Tax | ||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 0 | (627) |
Reclassification from AOCI, net of tax | 217 | 285 | 623 | 738 |
Total other comprehensive income (loss), net of tax | $ 217 | $ 285 | $ 623 | $ 111 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of AOCI) (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 each component of AOCI, net of tax | |||||
Balance at beginning of period | $ 500,011 | ||||
Impact of the adoption of new accounting standards | $ 0 | ||||
Total other comprehensive income (loss), net of tax | $ (5,855) | $ (8) | (24,089) | $ 4,737 | |
Balance at end of period | 478,151 | 478,151 | |||
Investment Securities | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (14,161) | 9,648 | 4,934 | 4,729 | |
Impact of the adoption of new accounting standards | (139) | ||||
Impact of the adoption of new accounting standards | (455) | ||||
Other comprehensive income (loss) before reclassifications | (6,072) | (293) | (24,712) | 3,639 | |
Reclassification adjustments from AOCI | 0 | 0 | 0 | 987 | |
Total other comprehensive income (loss), net of tax | (6,072) | (293) | (24,712) | 4,626 | |
Balance at end of period | (20,233) | 9,355 | (20,233) | 9,355 | |
Defined Benefit Plans | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (7,087) | (6,424) | (6,112) | (6,250) | |
Impact of the adoption of new accounting standards | 0 | ||||
Impact of the adoption of new accounting standards | (1,381) | ||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | (627) | |
Reclassification adjustments from AOCI | 217 | 285 | 623 | 738 | |
Total other comprehensive income (loss), net of tax | 217 | 285 | 623 | 111 | |
Balance at end of period | (6,870) | (6,139) | (6,870) | (6,139) | |
Accumulated Other Comprehensive Income (Loss) | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (21,248) | 3,224 | (1,178) | (1,521) | |
Impact of the adoption of new accounting standards | (139) | ||||
Other comprehensive income (loss) before reclassifications | (6,072) | (293) | (24,712) | 3,012 | |
Reclassification adjustments from AOCI | 217 | 285 | 623 | 1,725 | |
Total other comprehensive income (loss), net of tax | (5,855) | (8) | (24,089) | 4,737 | |
Balance at end of period | $ (27,103) | $ 3,216 | (27,103) | $ 3,216 | |
Accounting Standards Update 2018-02 and Accounting Standards Update 2016-01 | |||||
Changes in each component of AOCI, net of tax | |||||
Impact of the adoption of new accounting standards | 0 | ||||
Accounting Standards Update 2018-02 and Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||
Changes in each component of AOCI, net of tax | |||||
Impact of the adoption of new accounting standards | $ (139) | ||||
Impact of the adoption of new accounting standards | (1,836) | ||||
Previously Reported | Investment Securities | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | 5,073 | ||||
Previously Reported | Defined Benefit Plans | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | (6,112) | ||||
Previously Reported | Accumulated Other Comprehensive Income (Loss) | |||||
Changes in each component of AOCI, net of tax | |||||
Balance at beginning of period | $ (1,039) |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified out of AOCI) (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Investment securities gains (losses) | $ 0 | $ 0 | $ 0 | $ (1,640) |
Income tax benefit (expense) | (4,872) | (6,367) | (12,386) | (20,598) |
Net income | 15,193 | 11,812 | 43,694 | 36,916 |
Amount Reclassified from AOCI | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Net income | (217) | (285) | (623) | (1,725) |
Amortization of defined benefit plan items, before tax | 0 | (138) | ||
Investment Securities | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Reclassification from AOCI, net of tax | 0 | 0 | 0 | (987) |
Investment Securities | Amount Reclassified from AOCI | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Investment securities gains (losses) | 0 | 0 | 0 | (1,640) |
Income tax benefit (expense) | 0 | 0 | 0 | 653 |
Net income | 0 | 0 | 0 | (987) |
Defined Benefit Plans | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Reclassification from AOCI, net of tax | (217) | (285) | (623) | (738) |
Defined Benefit Plans | Amount Reclassified from AOCI | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | (298) | (333) | (892) | (1,135) |
Amortization of defined benefit plan items, tax | 81 | 48 | 269 | 397 |
Reclassification from AOCI, net of tax | (217) | (285) | (623) | (738) |
Net actuarial loss | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | (289) | (324) | (865) | (971) |
Amortization of defined benefit plan items, tax | 78 | 44 | 262 | 331 |
Reclassification from AOCI, net of tax | (211) | (280) | (603) | (640) |
Net actuarial loss | Amount Reclassified from AOCI | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | (289) | (324) | (865) | (971) |
Net transition obligation | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | (5) | (4) | (14) | (13) |
Amortization of defined benefit plan items, tax | 2 | 2 | 4 | 5 |
Reclassification from AOCI, net of tax | (3) | (2) | (10) | (8) |
Net transition obligation | Amount Reclassified from AOCI | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | (5) | (4) | (14) | (13) |
Prior service cost | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | (4) | (5) | (13) | (13) |
Amortization of defined benefit plan items, tax | 1 | 2 | 3 | 5 |
Reclassification from AOCI, net of tax | (3) | (3) | (10) | (8) |
Prior service cost | Amount Reclassified from AOCI | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | (4) | (5) | $ (13) | (13) |
Settlement | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | 0 | (138) | ||
Amortization of defined benefit plan items, tax | 0 | 56 | ||
Reclassification from AOCI, net of tax | 0 | $ (82) | ||
Settlement | Amount Reclassified from AOCI | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Amortization of defined benefit plan items, before tax | $ 0 | $ 0 |
PENSION AND SUPPLEMENTAL EXEC_3
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Plan | |||||
Components of net periodic benefit cost | |||||
Interest cost | $ 199 | $ 232 | $ 597 | $ 694 | |
Expected return on plan assets | (302) | (264) | (906) | (792) | |
Amortization of net actuarial loss | 245 | 298 | 735 | 894 | |
Net periodic cost | 142 | 266 | 426 | 796 | |
SERPs | |||||
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | $ 100 | 0 | (138) |
Components of net periodic benefit cost | |||||
Interest cost | 97 | 107 | 292 | 322 | |
Amortization of net actuarial loss | 44 | 26 | 130 | 77 | |
Amortization of net transition obligation | 5 | 4 | 14 | 13 | |
Amortization of prior service cost | 4 | 5 | 13 | 13 | |
Net periodic cost | $ 150 | $ 142 | $ 449 | $ 563 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (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 | ||||
Net income | $ 15,193 | $ 11,812 | $ 43,694 | $ 36,916 |
Weighted average shares outstanding - basic | 29,297,465 | 30,300,195 | 29,536,536 | 30,526,260 |
Weighted average shares outstanding - diluted | 29,479,812 | 30,514,459 | 29,743,238 | 30,758,989 |
Basic earnings per common share (in dollars per share) | $ 0.52 | $ 0.39 | $ 1.48 | $ 1.21 |
Diluted earnings per common share (in dollars per share) | $ 0.52 | $ 0.39 | $ 1.47 | $ 1.20 |
Antidilutive securities excluded from the dilutive share calculation (in shares) | 0 | 80 | 0 | 8 |
Stock Option | ||||
SHARE-BASED COMPENSATION | ||||
Dilutive effect of share-based compensation arrangements | 182,347 | 214,264 | 206,702 | 232,729 |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Financial assets | |||
Cash and due from banks | $ 82,668,000 | $ 82,668,000 | $ 75,318,000 |
Interest-bearing deposits in other banks | 7,051,000 | 7,051,000 | 6,975,000 |
Loans held for sale | 4,460,000 | 4,460,000 | 16,336,000 |
Mortgage servicing rights | 15,634,000 | 15,634,000 | 15,843,000 |
Federal Home Loan Bank stock | 10,965,000 | 10,965,000 | 7,761,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,403,534,000 | 1,403,534,000 | 1,395,556,000 |
Time deposits | 1,161,551,000 | 1,161,551,000 | 1,145,868,000 |
Transfers of financial assets from Level 1 to Level 2 | 0 | 0 | |
Transfers of financial assets from Level 2 to Level 1 | 0 | 0 | |
Transfers of financial liabilities from Level 1 to Level 2 | 0 | 0 | |
Transfers of financial liabilities from Level 2 to Level 1 | 0 | 0 | |
Transfers of financial assets out of Level 3 | 0 | 0 | |
Transfers of financial liabilities out of Level 3 | 0 | 0 | |
Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments, Notional Amount | 1,066,761,000 | 1,066,761,000 | 917,405,000 |
Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments, Notional Amount | 13,465,000 | 13,465,000 | 13,551,000 |
Interest rate lock commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 15,463,000 | 15,463,000 | 2,494,000 |
Forward sale commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 19,861,000 | 19,861,000 | 18,748,000 |
Carrying Amount | |||
Financial assets | |||
Cash and due from banks | 82,668,000 | 82,668,000 | 75,318,000 |
Interest-bearing deposits in other banks | 7,051,000 | 7,051,000 | 6,975,000 |
Investment securities | 1,386,739,000 | 1,386,739,000 | 1,496,644,000 |
Loans held for sale | 4,460,000 | 4,460,000 | 16,336,000 |
Net loans and leases | 3,931,201,000 | 3,931,201,000 | 3,720,614,000 |
Mortgage servicing rights | 15,634,000 | 15,634,000 | 15,843,000 |
Federal Home Loan Bank stock | 10,965,000 | 10,965,000 | 7,761,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,403,534,000 | 1,403,534,000 | 1,395,556,000 |
Interest-bearing demand and savings deposits | 2,438,595,000 | 2,438,595,000 | 2,414,930,000 |
Time deposits | 1,161,551,000 | 1,161,551,000 | 1,145,868,000 |
Short-term debt | 105,000,000 | 105,000,000 | 32,000,000 |
Long-term debt | 92,785,000 | 92,785,000 | 92,785,000 |
Carrying Amount | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Carrying Amount | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Carrying Amount | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 12,000 | ||
Derivative assets | (4,000) | (4,000) | |
Carrying Amount | Forward sale commitments | |||
Deposits: | |||
Derivative liabilities | 67,000 | 67,000 | |
Derivative assets | (26,000) | ||
Estimated Fair Value | |||
Financial assets | |||
Cash and due from banks | 82,668,000 | 82,668,000 | 75,318,000 |
Interest-bearing deposits in other banks | 7,051,000 | 7,051,000 | 6,975,000 |
Investment securities | 1,380,353,000 | 1,380,353,000 | 1,494,092,000 |
Loans held for sale | 4,460,000 | 4,460,000 | 16,336,000 |
Net loans and leases | 3,804,844,000 | 3,804,844,000 | 3,684,834,000 |
Mortgage servicing rights | 18,315,000 | 18,315,000 | 17,161,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,403,534,000 | 1,403,534,000 | 1,395,556,000 |
Interest-bearing demand and savings deposits | 2,438,595,000 | 2,438,595,000 | 2,414,930,000 |
Time deposits | 1,152,739,000 | 1,152,739,000 | 1,140,064,000 |
Short-term debt | 105,000,000 | 105,000,000 | 32,000,000 |
Long-term debt | 88,344,000 | 88,344,000 | 70,139,000 |
Estimated Fair Value | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,272,000 | 1,272,000 | 1,140,000 |
Estimated Fair Value | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 202,000 | 202,000 | 203,000 |
Estimated Fair Value | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 12,000 | ||
Derivative assets | (4,000) | (4,000) | |
Estimated Fair Value | Forward sale commitments | |||
Deposits: | |||
Derivative liabilities | 67,000 | 67,000 | |
Derivative assets | (26,000) | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets | |||
Cash and due from banks | 82,668,000 | 82,668,000 | 75,318,000 |
Interest-bearing deposits in other banks | 7,051,000 | 7,051,000 | 6,975,000 |
Investment securities | 885,000 | 885,000 | 825,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 0 | 0 | 0 |
Mortgage servicing rights | 0 | 0 | 0 |
Deposits: | |||
Noninterest-bearing deposits | 1,403,534,000 | 1,403,534,000 | 1,395,556,000 |
Interest-bearing demand and savings deposits | 2,438,595,000 | 2,438,595,000 | 2,414,930,000 |
Time deposits | 0 | ||
Short-term debt | 0 | 0 | 0 |
Long-term debt | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 0 | ||
Derivative assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments | |||
Deposits: | |||
Derivative liabilities | 0 | 0 | |
Derivative assets | 0 | ||
Significant Other Observable Inputs (Level 2) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 | 0 |
Investment securities | 1,368,324,000 | 1,368,324,000 | 1,481,473,000 |
Loans held for sale | 4,460,000 | 4,460,000 | 16,336,000 |
Net loans and leases | 19,170,000 | 19,170,000 | 21,280,000 |
Mortgage servicing rights | 0 | 0 | 0 |
Deposits: | |||
Noninterest-bearing deposits | 0 | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 | 0 |
Time deposits | 0 | 0 | 0 |
Short-term debt | 105,000,000 | 105,000,000 | 32,000,000 |
Long-term debt | 88,344,000 | 88,344,000 | 70,139,000 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,272,000 | 1,272,000 | 1,140,000 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 202,000 | 202,000 | 203,000 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 12,000 | ||
Derivative assets | (4,000) | (4,000) | |
Significant Other Observable Inputs (Level 2) | Forward sale commitments | |||
Deposits: | |||
Derivative liabilities | 67,000 | 67,000 | |
Derivative assets | (26,000) | ||
Significant Unobservable Inputs (Level 3) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 | 0 |
Investment securities | 11,144,000 | 11,144,000 | 11,794,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 3,785,674,000 | 3,785,674,000 | 3,663,554,000 |
Mortgage servicing rights | 17,161,000 | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 18,315,000 | 18,315,000 | |
Deposits: | |||
Noninterest-bearing deposits | 0 | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 | 0 |
Time deposits | 1,152,739,000 | 1,152,739,000 | 1,140,064,000 |
Short-term debt | 0 | 0 | 0 |
Long-term debt | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 0 | ||
Derivative assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Forward sale commitments | |||
Deposits: | |||
Derivative liabilities | $ 0 | $ 0 | |
Derivative assets | $ 0 |
FAIR VALUE OF FINANCIAL ASSET_4
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | $ 1,233,002 | $ 1,304,066 |
Equity securities, at fair value | 885 | 825 |
States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 173,552 | 179,781 |
Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 65,133 | 74,278 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 33,919 | 25,510 |
Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 734,357 | 800,683 |
Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 51,205 | 39,725 |
Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 41,370 | 46,763 |
Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 133,466 | 137,326 |
Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 885 | 825 |
Recurring basis | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,233,002 | 1,304,066 |
Total | 1,233,950 | 1,304,877 |
Recurring basis | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 63 | (14) |
Recurring basis | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 173,552 | 179,781 |
Recurring basis | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 65,133 | 74,278 |
Recurring basis | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 33,919 | 25,510 |
Recurring basis | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 734,357 | 800,683 |
Recurring basis | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 51,205 | 39,725 |
Recurring basis | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 41,370 | 46,763 |
Recurring basis | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 133,466 | 137,326 |
Recurring basis | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 885 | 825 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Total | 885 | 825 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 885 | 825 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,221,858 | 1,292,272 |
Total | 1,221,921 | 1,292,258 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 63 | (14) |
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 162,408 | 167,987 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 65,133 | 74,278 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 33,919 | 25,510 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 734,357 | 800,683 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 51,205 | 39,725 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 41,370 | 46,763 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 133,466 | 137,326 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 11,144 | 11,794 |
Total | 11,144 | 11,794 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 11,144 | 11,794 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL ASSET_5
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Change in Level 3 Assets and Liabilities) (Details 3) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018USD ($)security | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
States and political subdivisions | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | $ 11,794 | $ 12,196 | $ 12,196 |
Principal payments received | (280) | (268) | |
Unrealized net gain (loss) included in other comprehensive income | (370) | 170 | |
Aggregate fair value / Balance at the end of the period | $ 11,794 | ||
Mortgage revenue bonds | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the end of the period | $ 11,144 | $ 12,098 | |
Additional disclosures | |||
Number of investment securities held | security | 4 | ||
Mortgage revenue bonds | Weighted average | |||
Additional disclosures | |||
Discount rate (as a percent) | 5.28% | 4.50% | 4.81% |
Mortgage Servicing Rights | |||
Additional disclosures | |||
Discount rate (as a percent) | 9.50% | 9.50% | 9.50% |
Forecasted constant prepayment rate | 14.00% | 16.50% | 16.00% |
FAIR VALUE OF FINANCIAL ASSET_6
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets measured at fair value on a nonrecurring basis | ||
Mortgage servicing rights | $ 15,634 | $ 15,843 |
Other real estate owned | 414 | 851 |
Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Impaired loans | 19,170 | 21,280 |
Mortgage servicing rights | 18,315 | 17,161 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets measured at fair value on a nonrecurring basis | ||
Mortgage servicing rights | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Impaired loans | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets measured at fair value on a nonrecurring basis | ||
Mortgage servicing rights | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Impaired loans | 19,170 | 21,280 |
Mortgage servicing rights | 0 | 0 |
Other real estate owned | 414 | 851 |
Significant Unobservable Inputs (Level 3) | ||
Assets measured at fair value on a nonrecurring basis | ||
Mortgage servicing rights | 17,161 | |
Significant Unobservable Inputs (Level 3) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Impaired loans | 0 | 0 |
Mortgage servicing rights | 18,315 | 17,161 |
Other real estate owned | $ 0 | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 3 | ||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | $ 43,325 | $ 41,995 | $ 128,319 | $ 124,879 | |
Other operating income | 10,820 | 9,569 | 29,404 | 27,453 | |
Other operating expense | (34,139) | (33,511) | (101,381) | (97,306) | |
Income before income taxes | 20,065 | 18,179 | 56,080 | 57,514 | |
Income tax (expenses) benefit | (4,872) | (6,367) | (12,386) | (20,598) | |
Net income | 15,193 | 11,812 | 43,694 | 36,916 | |
Investment securities | 1,386,739 | 1,386,739 | $ 1,496,644 | ||
Total assets | 5,728,640 | 5,728,640 | 5,623,708 | ||
Banking Operations | |||||
SEGMENT INFORMATION | |||||
Net income | 16,076 | 12,005 | 44,824 | 37,589 | |
Total assets | 4,023,301 | 4,023,301 | 3,829,194 | ||
Treasury | |||||
SEGMENT INFORMATION | |||||
Net income | 689 | 655 | 1,688 | 1,226 | |
Total assets | 1,623,782 | 1,623,782 | 1,725,252 | ||
All Others | |||||
SEGMENT INFORMATION | |||||
Net income | (1,572) | (848) | (2,818) | (1,899) | |
Total assets | 81,557 | 81,557 | 69,262 | ||
Intersegment elimination | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | 0 | 0 | 0 | 0 | |
Intersegment elimination | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | 7,524 | 8,530 | 21,360 | 24,618 | |
Intersegment elimination | Treasury | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | (4,327) | (6,299) | (14,717) | (18,828) | |
Intersegment elimination | All Others | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | (3,197) | (2,231) | (6,643) | (5,790) | |
Operating segments | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | 43,325 | 41,995 | 128,319 | 124,879 | |
Provision (credit) for loan and lease losses | 59 | 126 | (262) | 2,488 | |
Other operating income | 10,820 | 9,569 | 29,404 | 27,453 | |
Other operating expense | (34,139) | (33,511) | (101,381) | (97,306) | |
Administrative and overhead expense allocation | 0 | 0 | 0 | 0 | |
Income before income taxes | 20,065 | 18,179 | 56,080 | 57,514 | |
Income tax (expenses) benefit | (4,872) | (6,367) | (12,386) | (20,598) | |
Investment securities | 1,386,739 | 1,386,739 | 1,496,644 | ||
Loans and leases (including loans held for sale) | 3,982,487 | 3,982,487 | 3,786,951 | ||
Other | 359,414 | 359,414 | 340,113 | ||
Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | 38,872 | 35,191 | 112,295 | 103,839 | |
Provision (credit) for loan and lease losses | 59 | 126 | (262) | 2,488 | |
Other operating income | 6,495 | 5,505 | 17,699 | 17,073 | |
Other operating expense | (16,265) | (15,242) | (47,967) | (45,095) | |
Administrative and overhead expense allocation | (15,481) | (15,635) | (45,594) | (44,360) | |
Income before income taxes | 21,204 | 18,475 | 57,531 | 58,563 | |
Income tax (expenses) benefit | (5,128) | (6,470) | (12,707) | (20,974) | |
Investment securities | 0 | 0 | 0 | ||
Loans and leases (including loans held for sale) | 3,982,487 | 3,982,487 | 3,786,951 | ||
Other | 40,814 | 40,814 | 42,243 | ||
Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | 4,453 | 6,804 | 16,024 | 21,040 | |
Provision (credit) for loan and lease losses | 0 | 0 | 0 | 0 | |
Other operating income | 1,319 | 1,159 | 2,589 | 1,487 | |
Other operating expense | (335) | (338) | (1,078) | (1,048) | |
Administrative and overhead expense allocation | (206) | (311) | (652) | (741) | |
Income before income taxes | 904 | 1,015 | 2,166 | 1,910 | |
Income tax (expenses) benefit | (215) | (360) | (478) | (684) | |
Investment securities | 1,386,739 | 1,386,739 | 1,496,644 | ||
Loans and leases (including loans held for sale) | 0 | 0 | 0 | ||
Other | 237,043 | 237,043 | 228,608 | ||
Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Net interest income (expense) | 0 | 0 | 0 | 0 | |
Provision (credit) for loan and lease losses | 0 | 0 | 0 | 0 | |
Other operating income | 3,006 | 2,905 | 9,116 | 8,893 | |
Other operating expense | (17,539) | (17,931) | (52,336) | (51,163) | |
Administrative and overhead expense allocation | 15,687 | 15,946 | 46,246 | 45,101 | |
Income before income taxes | (2,043) | (1,311) | (3,617) | (2,959) | |
Income tax (expenses) benefit | 471 | 463 | 799 | 1,060 | |
Investment securities | 0 | 0 | 0 | ||
Loans and leases (including loans held for sale) | 0 | 0 | 0 | ||
Other | 81,557 | 81,557 | $ 69,262 | ||
Mortgage banking income | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,923 | 1,531 | 5,545 | 5,431 | |
Mortgage banking income | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,173 | 684 | 3,089 | 2,953 | |
Mortgage banking income | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Mortgage banking income | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 750 | 847 | 2,456 | 2,478 | |
Service charges on deposit accounts | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 2,189 | 2,182 | 6,169 | 6,338 | |
Service charges on deposit accounts | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 2,189 | 2,182 | 6,169 | 6,338 | |
Service charges on deposit accounts | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Service charges on deposit accounts | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Other service charges and fees | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 3,286 | 3,185 | 9,697 | 8,986 | |
Other service charges and fees | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,318 | 1,303 | 3,748 | 3,288 | |
Other service charges and fees | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 8 | 0 | 22 | 0 | |
Other service charges and fees | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,960 | 1,882 | 5,927 | 5,698 | |
Income from fiduciary activities | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,159 | 911 | 3,132 | 2,739 | |
Income from fiduciary activities | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,159 | 911 | 3,132 | 2,739 | |
Income from fiduciary activities | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Income from fiduciary activities | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Equity in earnings of unconsolidated subsidiaries | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 71 | 176 | 151 | 388 | |
Equity in earnings of unconsolidated subsidiaries | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 71 | 176 | 151 | 388 | |
Equity in earnings of unconsolidated subsidiaries | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Equity in earnings of unconsolidated subsidiaries | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Fees on foreign exchange | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 220 | 101 | 708 | 394 | |
Fees on foreign exchange | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 22 | 23 | 75 | 65 | |
Fees on foreign exchange | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 198 | 78 | 633 | 329 | |
Fees on foreign exchange | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | ||
Income from bank-owned life insurance | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,055 | 1,074 | 1,874 | 2,774 | |
Income from bank-owned life insurance | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Income from bank-owned life insurance | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 1,055 | 1,074 | 1,874 | 2,774 | |
Income from bank-owned life insurance | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Loan placement fees | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 115 | 86 | 532 | 366 | |
Loan placement fees | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 115 | 86 | 532 | 366 | |
Loan placement fees | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Loan placement fees | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | 0 | 0 | |
Net gain (loss) sale of foreclosed assets | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 19 | 205 | |||
Net gain (loss) sale of foreclosed assets | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | |||
Net gain (loss) sale of foreclosed assets | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | 0 | |||
Net gain (loss) sale of foreclosed assets | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | 19 | 205 | |||
Other income | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | 802 | 304 | 1,596 | 1,472 | |
Other income | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 448 | 140 | 803 | 936 | |
Other income | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | 58 | 7 | 60 | 24 | |
Other income | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | $ 296 | $ 157 | $ 733 | 512 | |
Investment Securities Gains (Losses) [Member] | Operating segments | |||||
SEGMENT INFORMATION | |||||
Other operating income | (1,640) | ||||
Investment Securities Gains (Losses) [Member] | Operating segments | Banking Operations | |||||
SEGMENT INFORMATION | |||||
Other operating income | 0 | ||||
Investment Securities Gains (Losses) [Member] | Operating segments | Treasury | |||||
SEGMENT INFORMATION | |||||
Other operating income | (1,640) | ||||
Investment Securities Gains (Losses) [Member] | Operating segments | All Others | |||||
SEGMENT INFORMATION | |||||
Other operating income | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - C P B Capital Trust I I I [Member] - USD ($) | Oct. 24, 2018 | Oct. 31, 2003 |
Subsequent Event [Line Items] | ||
Common Securities Issued to Parent Value | $ 600,000 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Trust Preferred Securities Redeemed Value | $ 20,000,000 | |
Common Securities Issued to Parent Value | $ 600,000 |