Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Entity Interactive Data Current | Yes | |
Entity Address, Address Line One | 220 South King Street | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Small Business | false | |
Title of 12(b) Security | Common stock, No Par Value | |
Entity Incorporation, State or Country Code | HI | |
Entity Registrant Name | CENTRAL PACIFIC FINANCIAL CORP | |
Entity Central Index Key | 0000701347 | |
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 | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 28,556,677 | |
Entity Tax Identification Number | 99-0212597 | |
Trading Symbol | CPF | |
Security Exchange Name | NYSE | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-31567 | |
Entity Address, City or Town | Honolulu | |
Entity Address, State or Province | HI | |
Entity Address, Postal Zip Code | 96813 | |
City Area Code | 808 | |
Local Phone Number | 544-0500 | |
Entity Shell Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 83,534 | $ 80,569 |
Interest-bearing deposits in other banks | 15,173 | 21,617 |
Investment securities: | ||
Available-for-sale debt securities, at fair value | 1,254,743 | 1,205,478 |
Held-to-maturity debt securities, at amortized cost; fair value of: none at June 30, 2019 and $144,272 at December 31, 2018 | 0 | 148,508 |
Equity securities, at fair value | 1,034 | 826 |
Total investment securities | 1,255,777 | 1,354,812 |
Loans held for sale | 6,848 | 6,647 |
Loans and leases | 4,247,113 | 4,078,366 |
Allowance for loan and lease losses | (48,267) | (47,916) |
Net loans and leases | 4,198,846 | 4,030,450 |
Premises and equipment, net | 43,600 | 45,285 |
Accrued interest receivable | 17,260 | 17,000 |
Investment in unconsolidated subsidiaries | 17,247 | 14,008 |
Other real estate owned | 276 | 414 |
Mortgage servicing rights | 15,266 | 15,596 |
Bank-owned life insurance | 158,294 | 157,440 |
Federal Home Loan Bank stock | 17,824 | 16,645 |
Right of use lease asset | 53,678 | 0 |
Other assets | 36,383 | 46,543 |
Total assets | 5,920,006 | 5,807,026 |
Deposits: | ||
Noninterest-bearing demand | 1,351,190 | 1,436,967 |
Interest-bearing demand | 1,002,706 | 954,011 |
Savings and money market | 1,573,805 | 1,448,257 |
Time | 1,049,148 | 1,107,255 |
Total deposits | 4,976,849 | 4,946,490 |
Short-term borrowings | 221,000 | 197,000 |
Long-term debt | 101,547 | 122,166 |
Lease liability | 53,829 | 0 |
Other liabilities | 51,086 | 49,645 |
Total liabilities | 5,404,311 | 5,315,301 |
Shareholders' Equity | ||
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at June 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 28,567,777 at June 30, 2019 and 28,967,715 at December 31, 2018 | 456,293 | 470,660 |
Additional paid-in capital | 89,724 | 88,876 |
Accumulated deficit | (34,780) | (51,718) |
Accumulated other comprehensive income (loss) | 4,458 | (16,093) |
Total shareholders' equity | 515,695 | 491,725 |
Total liabilities and shareholders' equity | $ 5,920,006 | $ 5,807,026 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value (in dollars) | $ 0 | $ 144,272 |
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 | 28,567,777 | 28,967,715 |
Common stock, outstanding shares | 28,567,777 | 28,967,715 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest income: | ||||
Interest and fees on loans and leases | $ 45,540 | $ 38,699 | $ 89,308 | $ 76,089 |
Interest and dividends on investment securities: | ||||
Taxable interest | 7,530 | 8,717 | 15,790 | 17,560 |
Tax-exempt interest | 814 | 933 | 1,680 | 1,866 |
Dividends | 14 | 3 | 32 | 18 |
Interest on deposits in other banks | 46 | 117 | 114 | 201 |
Dividends on Federal Home Loan Bank stock | 161 | 40 | 322 | 85 |
Total interest income | 54,105 | 48,509 | 107,246 | 95,819 |
Interest on deposits: | ||||
Demand | 199 | 193 | 391 | 373 |
Savings and money market | 1,507 | 459 | 2,298 | 828 |
Time | 4,867 | 4,034 | 9,959 | 7,459 |
Interest on short-term borrowings | 1,123 | 48 | 2,016 | 91 |
Interest on long-term debt | 1,031 | 1,103 | 2,091 | 2,074 |
Total interest expense | 8,727 | 5,837 | 16,755 | 10,825 |
Net interest income | 45,378 | 42,672 | 90,491 | 84,994 |
Provision (credit) for loan and lease losses | 1,404 | 532 | 2,687 | 321 |
Net interest income after provision (credit) for loan and lease losses | 43,974 | 42,140 | 87,804 | 84,673 |
Other operating income: | ||||
Mortgage banking income | 1,601 | 1,775 | 3,025 | 3,622 |
Service charges on deposit accounts | 2,041 | 1,977 | 4,122 | 3,980 |
Other service charges and fees | 3,691 | 3,377 | 6,755 | 6,411 |
Income from fiduciary activities | 1,129 | 1,017 | 2,094 | 1,973 |
Equity in earnings of unconsolidated subsidiaries | 71 | 37 | 79 | 80 |
Fees on foreign exchange | 218 | 277 | 369 | 488 |
Income from bank-owned life insurance | 914 | 501 | 1,866 | 819 |
Loan placement fees | 107 | 220 | 256 | 417 |
Other | 322 | 449 | 3,201 | 794 |
Total other operating income | 10,094 | 9,630 | 21,767 | 18,584 |
Other operating expense: | ||||
Salaries and employee benefits | 20,563 | 18,783 | 40,452 | 37,288 |
Net occupancy | 3,525 | 3,360 | 6,983 | 6,626 |
Equipment | 1,138 | 1,044 | 2,144 | 2,112 |
Amortization of core deposit premium | 0 | 668 | 0 | 1,337 |
Communication expense | 903 | 746 | 1,637 | 1,644 |
Legal and professional services | 1,728 | 1,769 | 3,298 | 3,590 |
Computer software expense | 2,560 | 2,305 | 5,157 | 4,572 |
Advertising expense | 712 | 617 | 1,423 | 1,229 |
Foreclosed asset expense | 49 | 31 | 208 | 325 |
Other | 4,929 | 4,288 | 9,153 | 8,292 |
Total other operating expense | 36,107 | 33,611 | 70,455 | 67,015 |
Income before income taxes | 17,961 | 18,159 | 39,116 | 36,242 |
Income tax expense | 4,427 | 3,935 | 9,545 | 7,741 |
Net income | $ 13,534 | $ 14,224 | $ 29,571 | $ 28,501 |
Per common share data: | ||||
Basic earnings per common share (in dollars per share) | $ 0.47 | $ 0.48 | $ 1.03 | $ 0.96 |
Diluted earnings per common share (in dollars per share) | 0.47 | 0.48 | 1.03 | 0.95 |
Cash dividends declared (in dollars per share) | $ 0.23 | $ 0.21 | $ 0.44 | $ 0.40 |
Weighted average common shares outstanding used in computation: | ||||
Basic shares (in shares) | 28,546,564 | 29,510,175 | 28,651,852 | 29,658,051 |
Diluted shares (in shares) | 28,729,510 | 29,714,942 | 28,847,786 | 29,881,534 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,534 | $ 14,224 | $ 29,571 | $ 28,501 |
Other comprehensive income (loss), net of tax: | ||||
Net change in unrealized gain (loss) on investment securities | 12,165 | (3,669) | 23,161 | (18,640) |
Defined benefit plans | 248 | 150 | 490 | 406 |
Total other comprehensive income (loss), net of tax | 12,413 | (3,519) | 23,651 | (18,234) |
Comprehensive income | $ 25,947 | $ 10,705 | $ 53,222 | $ 10,267 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Common Shares Outstanding | Common Stock | Additional Paid-In Capital | Accum. Deficit | Accum. Other Comp. Income (Loss) | Non- Controlling Interest |
Balance at beginning of period at Dec. 31, 2017 | $ 500,035 | $ 503,988 | $ 86,098 | $ (89,036) | $ (1,039) | $ 24 | |
Balance (in shares) at Dec. 31, 2017 | 30,024,222 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 14,277 | 14,277 | |||||
Other comprehensive income | (14,715) | (14,715) | |||||
Cash dividends (of $0.21 $0.23, $0.19, and $0.21, per share, respectively) | (5,670) | (5,670) | |||||
Common stock purchased by directors' deferred compensation plan (14,600, 2,850, and 14,100 shares, net, respectively) | (83) | (83) | |||||
Common stock repurchased and retired and other related costs (277,000, 213,700, 344,362, and 269,885 shares, respectively) | $ (10,111) | (10,111) | |||||
Shares of common stock repurchased and other related costs (in shares) | (344,362) | (344,362) | |||||
Share-based compensation expense | $ 399 | 0 | 399 | 0 | |||
Share-based compensation (in shares) | 27,262 | ||||||
Distribution from variable interest entity | (24) | (24) | |||||
Balance at end of period at Mar. 31, 2018 | 484,108 | 493,794 | 86,497 | (78,454) | (17,729) | 0 | |
Balance (in shares) at Mar. 31, 2018 | 29,707,122 | ||||||
Balance at beginning of period at Dec. 31, 2017 | 500,035 | 503,988 | 86,098 | (89,036) | (1,039) | 24 | |
Balance (in shares) at Dec. 31, 2017 | 30,024,222 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 28,501 | ||||||
Other comprehensive income | (18,234) | (18,234) | |||||
Balance at end of period at Jun. 30, 2018 | 480,668 | 485,402 | 86,949 | (70,435) | (21,248) | 0 | |
Balance (in shares) at Jun. 30, 2018 | 29,489,954 | ||||||
Balance at beginning of period at Mar. 31, 2018 | 484,108 | 493,794 | 86,497 | (78,454) | (17,729) | 0 | |
Balance (in shares) at Mar. 31, 2018 | 29,707,122 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 14,224 | 14,224 | |||||
Other comprehensive income | (3,519) | (3,519) | |||||
Cash dividends (of $0.21 $0.23, $0.19, and $0.21, per share, respectively) | (6,205) | (6,205) | |||||
Common stock purchased by directors' deferred compensation plan (14,600, 2,850, and 14,100 shares, net, respectively) | (421) | (421) | |||||
Common stock repurchased and retired and other related costs (277,000, 213,700, 344,362, and 269,885 shares, respectively) | $ (7,971) | (7,971) | |||||
Shares of common stock repurchased and other related costs (in shares) | (269,885) | (269,885) | |||||
Share-based compensation expense | $ 452 | 452 | 0 | ||||
Share-based compensation (in shares) | 52,717 | ||||||
Balance at end of period at Jun. 30, 2018 | 480,668 | 485,402 | 86,949 | (70,435) | (21,248) | 0 | |
Balance (in shares) at Jun. 30, 2018 | 29,489,954 | ||||||
Balance at beginning of period at Dec. 31, 2018 | $ 491,725 | 470,660 | 88,876 | (51,718) | (16,093) | 0 | |
Balance (in shares) at Dec. 31, 2018 | 28,967,715 | 28,967,715 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | $ 16,037 | 16,037 | |||||
Other comprehensive income | 11,238 | 11,238 | |||||
Cash dividends (of $0.21 $0.23, $0.19, and $0.21, per share, respectively) | (6,052) | (6,052) | |||||
Common stock repurchased and retired and other related costs (277,000, 213,700, 344,362, and 269,885 shares, respectively) | $ (7,708) | (7,708) | |||||
Shares of common stock repurchased and other related costs (in shares) | (277,000) | (277,000) | |||||
Share-based compensation expense | $ 498 | 0 | 498 | 0 | |||
Share-based compensation (in shares) | 32,326 | ||||||
Balance at end of period at Mar. 31, 2019 | 502,638 | 462,952 | 89,374 | (41,733) | (7,955) | 0 | |
Balance (in shares) at Mar. 31, 2019 | 28,723,041 | ||||||
Balance at beginning of period at Dec. 31, 2018 | $ 491,725 | 470,660 | 88,876 | (51,718) | (16,093) | 0 | |
Balance (in shares) at Dec. 31, 2018 | 28,967,715 | 28,967,715 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | $ 29,571 | ||||||
Other comprehensive income | 23,651 | 23,651 | |||||
Balance at end of period at Jun. 30, 2019 | $ 515,695 | 456,293 | 89,724 | (34,780) | 4,458 | ||
Balance (in shares) at Jun. 30, 2019 | 28,567,777 | 28,567,777 | |||||
Increase (Decrease) in Shareholders' Equity | |||||||
Adjusted balance | (7,955) | ||||||
Balance at beginning of period at Mar. 31, 2019 | $ 502,638 | 462,952 | 89,374 | (41,733) | (7,955) | $ 0 | |
Balance (in shares) at Mar. 31, 2019 | 28,723,041 | ||||||
Increase (Decrease) in Shareholders' Equity | |||||||
Net income | 13,534 | 13,534 | |||||
Other comprehensive income | 12,413 | 12,413 | |||||
Cash dividends (of $0.21 $0.23, $0.19, and $0.21, per share, respectively) | (6,581) | (6,581) | |||||
Common stock purchased by directors' deferred compensation plan (14,600, 2,850, and 14,100 shares, net, respectively) | (416) | (416) | |||||
Common stock repurchased and retired and other related costs (277,000, 213,700, 344,362, and 269,885 shares, respectively) | $ (6,243) | (6,243) | |||||
Shares of common stock repurchased and other related costs (in shares) | (213,700) | (213,700) | |||||
Share-based compensation expense | $ 350 | 350 | |||||
Share-based compensation (in shares) | 58,436 | ||||||
Balance at end of period at Jun. 30, 2019 | $ 515,695 | $ 456,293 | $ 89,724 | $ (34,780) | $ 4,458 | ||
Balance (in shares) at Jun. 30, 2019 | 28,567,777 | 28,567,777 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 0.23 | $ 0.21 | $ 0.19 |
Common stock (purchased) sold by directors' deferred compensation plan (in net shares) | 14,600 | 14,100 | 2,850 |
Shares of common stock repurchased | 213,700 | 269,885 | 344,362 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 29,571 | $ 28,501 |
Provision (credit) for loan and lease losses | 2,687 | 321 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 3,085 | 3,177 |
Non-cash lease expense | 151 | 0 |
Cash flows from operating leases | (3,105) | 0 |
(Gain) loss on sale of other real estate, net of write-downs | 138 | 250 |
Amortization of core deposit premium and mortgage servicing rights | 1,072 | 2,231 |
Net amortization and accretion of premium/discounts on investment securities | 4,644 | 5,769 |
Share-based compensation expense | 848 | 851 |
Net gain on sales of residential mortgage loans | (1,586) | (1,931) |
Proceeds from sales of loans held for sale | 93,490 | 118,294 |
Originations of loans held for sale | (92,105) | (109,123) |
Equity in earnings of unconsolidated subsidiaries | (79) | (80) |
Distributions from unconsolidated subsidiaries | 101 | 578 |
Net increase in cash surrender value of bank-owned life insurance | (854) | (819) |
Deferred income taxes | 8,501 | 7,575 |
Net tax benefits from share-based compensation | 192 | 166 |
Net change in other assets and liabilities | (8,782) | (5,501) |
Net cash provided by operating activities | 37,969 | 50,259 |
Cash flows from investing activities: | ||
Proceeds from maturities of and calls on investment securities available-for-sale | 121,881 | 78,401 |
Purchases of investment securities available-for-sale | 0 | (85,313) |
Proceeds from maturities of and calls on investment securities held-to-maturity | 0 | 33,319 |
Proceeds from sale of MasterCard stock | 2,555 | 0 |
Net loan proceeds (originations) | (121,756) | (92,539) |
Purchases of loan portfolios | (49,327) | (20,608) |
Proceeds from sale of foreclosed loans/other real estate owned | 0 | 46 |
Proceeds from bank-owned life insurance | 0 | 167 |
Net purchases of premises and equipment | (1,400) | (1,833) |
Net return of capital from unconsolidated subsidiaries | 622 | 0 |
Net (purchases of) proceeds from redemption of FHLB stock | (1,179) | (2,485) |
Net cash used in investing activities | (48,604) | (90,845) |
Cash flows from financing activities: | ||
Net increase in deposits | 30,359 | 22,745 |
Repayments of long-term debt | (20,619) | 0 |
Net increase (decrease) in short-term borrowings | 24,000 | 55,000 |
Cash dividends paid on common stock | (12,633) | (11,875) |
Repurchases of common stock and other related costs | (13,951) | (18,082) |
Net cash provided by financing activities | 7,156 | 47,788 |
Net (decrease) increase in cash and cash equivalents | (3,479) | 7,202 |
Cash and cash equivalents at beginning of period | 102,186 | 82,293 |
Cash and cash equivalents at end of period | 98,707 | 89,495 |
Cash paid during the period for | ||
Interest | 16,916 | 10,552 |
Income taxes | 9,401 | 22 |
Net change in common stock held by directors’ deferred compensation plan | 416 | 0 |
Net reclassification of loans to foreclosed loans/other real estate owned | 0 | 40 |
Net transfer of investment securities held to maturity to available for sale | 149,042 | 0 |
Right-of-use lease assets obtained in exchange for lease liabilities | $ 55,887 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
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 for the fiscal year ended December 31, 2018 . 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. During the fourth quarter of 2018, we voluntarily changed our accounting policy for investments in low income housing tax credit ("LIHTC") partnerships from the cost method to the proportional amortization method using the practical expedient available under ASC 323, "Investments - Equity Method and Joint Ventures" , which permits an investor to amortize the initial cost of the investment in proportion to only the tax credits allocated to the investor. We believe the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits. In addition to a change in the timing of the recognition of amortization expense on LIHTC investments, amortization expense on LIHTC investments is now reflected in the income tax expense line, which provides users a better understanding of the nature of the returns of such investments, instead of in other operating expenses on the consolidated statements of income. The change did not impact net income, the consolidated balance sheets and the consolidated statements of cash flows. 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, proportional amortization and cost methods were $0.2 million , $15.5 million and $1.6 million , respectively, at June 30, 2019 and $0.2 million , $11.6 million and $2.2 million , respectively, at December 31, 2018 . 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 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2019 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 lease 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. The Company elected to adopt the practical expedient allowed under ASU 2018-11. During the year ended December 31, 2018, the Company engaged a software vendor to assist in the implementation of ASU 2016-02. The Company adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective approach and recorded a ROU lease asset and corresponding lease liability on the Company's consolidated balance sheet of $55.9 million for its operating leases where it is a lessee. There was no impact to the Company's financial statements for its leases where it is a lessor. As of June 30, 2019 , the ROU lease asset and lease liability was $53.7 million and $53.8 million , respectively. See Note 12 - Leases for required disclosures on this new standard. 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 a one-time opportunity to reclassify securities from the held-to-maturity category to the available-for-sale category. The Company adopted ASU 2017-12 effective January 1, 2019 and transferred its entire held-to-maturity investment securities portfolio with a fair value of $144.3 million at January 1, 2019 to the available-for-sale portfolio. On the date of adoption, the Company recorded a cumulative effect adjustment related to the unrealized loss on the investment securities transferred, which decreased available-for-sale investments by $4.2 million , increased deferred tax assets by $1.1 million , and decreased opening accumulated other comprehensive income (loss) ("AOCI") by $3.1 million . The ASU did not have a material impact on our current derivative activities. 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. The Company early adopted ASU 2018-15 during the second quarter of 2019. The adoption of the ASU did not have a material impact on our consolidated financial statements. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , " and subsequent amendments to the guidance, ASU 2019-04 in April 2019 and ASU 2019-05 in May 2019. The standard 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. However, an organization may elect to phase in the regulatory capital impact over a three-year transition period if adoption of the new standard results in a reduction of retained earnings. 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 existing processes, 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. To date, the Company has established appropriate loan pools by segment and sub-segment, developed internal loss driver models, and has leveraged a third-party software solution to measure expected losses under CECL. As part of this process, the Company has also engaged an additional third party specializing in economic forecasting to enable it to incorporate reasonable and supportable forecasts in its process. Finally, the Company is developing internal controls around all applicable components, including data, calculations and implementation. Later in the year, the Company plans to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for select interim reporting periods in 2019. While the Company is evaluating the full impact of adopting this new guidance, management expects that it will be significantly influenced by its own historical experience, the composition and quality of the Company’s loans, as well as economic condition expectations as of the date of adoption. The Company also anticipates significant changes to its reserve calculation processes and procedures and continues to evaluate the potential 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 disclosures in 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 disclosures in our consolidated financial statements. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Available-for-sale: Debt securities: States and political subdivisions $ 152,303 $ 2,308 $ (107 ) $ 154,504 Corporate securities 30,594 231 (28 ) 30,797 U.S. Treasury obligations and direct obligations of U.S Government agencies 29,869 2 (256 ) 29,615 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 758,008 3,309 (5,944 ) 755,373 Commercial - U.S. Government agencies and sponsored entities 105,347 1,136 (129 ) 106,354 Residential - Non-government agencies 39,429 1,088 — 40,517 Commercial - Non-government agencies 134,771 2,869 (57 ) 137,583 Total available-for-sale securities $ 1,250,321 $ 10,943 $ (6,521 ) $ 1,254,743 Equity securities $ 872 $ 162 $ — $ 1,034 (dollars in thousands) Amortized Gross Gross Fair December 31, 2018 Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 83,436 $ 19 $ (3,174 ) $ 80,281 Commercial - U.S. Government-sponsored entities 65,072 — (1,081 ) 63,991 Total held-to-maturity securities $ 148,508 $ 19 $ (4,255 ) $ 144,272 Available-for-sale: Debt securities: States and political subdivisions $ 174,114 $ 1,035 $ (1,475 ) $ 173,674 Corporate securities 55,259 — (410 ) 54,849 U.S. Treasury obligations and direct obligations of U.S Government agencies 33,257 — (683 ) 32,574 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 736,175 369 (19,492 ) 717,052 Commercial - U.S. Government agencies and sponsored entities 53,014 — (1,531 ) 51,483 Residential - Non-government agencies 41,245 337 (464 ) 41,118 Commercial - Non-government agencies 134,867 1,013 (1,152 ) 134,728 Total available-for-sale securities $ 1,227,931 $ 2,754 $ (25,207 ) $ 1,205,478 Equity securities $ 826 $ — $ — $ 826 As discussed in Note 2 - Recent Accounting Pronouncements , on January 1, 2019 in connection with the adoption of ASU 2017-12, the Company transferred all of its held-to-maturity investment securities with an amortized cost of $148.5 million and fair value of $144.3 million to its available-for-sale investment securities portfolio. The amortized cost and estimated fair value of investment securities at June 30, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2019 (dollars in thousands) Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 36,539 $ 36,603 Due after one year through five years 82,075 82,723 Due after five years through ten years 49,903 50,805 Due after ten years 44,249 44,785 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 758,008 755,373 Commercial - U.S. Government agencies and sponsored entities 105,347 106,354 Residential - Non-government agencies 39,429 40,517 Commercial - Non-government agencies 134,771 137,583 Total available-for-sale securities $ 1,250,321 $ 1,254,743 Equity securities $ 872 $ 1,034 We did not sell any available-for-sale securities during the three and six months ended June 30, 2019 and June 30, 2018 . Investment securities of $753.3 million and $980.2 million at June 30, 2019 and December 31, 2018 , respectively, were pledged to secure public funds on deposit and other short-term borrowings. Provided below is a summary of the 134 and 336 investment securities which were in an unrealized or unrecognized loss position at June 30, 2019 and December 31, 2018 , 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 June 30, 2019 Debt securities: States and political subdivisions $ 2,656 $ (5 ) $ 10,456 $ (102 ) $ 13,112 $ (107 ) Corporate securities — — 5,200 (28 ) 5,200 (28 ) U.S. Treasury obligations and direct obligations of U.S Government agencies — — 27,943 (256 ) 27,943 (256 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 18,320 (194 ) 426,811 (5,750 ) 445,131 (5,944 ) Residential - Non-government agencies — — — — — — Commercial - U.S. Government agencies and sponsored entities — — 30,253 (129 ) 30,253 (129 ) Commercial - Non-government agencies 16,709 (57 ) — — 16,709 (57 ) Total temporarily impaired securities $ 37,685 $ (256 ) $ 500,663 $ (6,265 ) $ 538,348 $ (6,521 ) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Debt securities: States and political subdivisions $ 38,099 $ (157 ) $ 49,505 $ (1,318 ) $ 87,604 $ (1,475 ) Corporate securities 49,729 (250 ) 5,120 (160 ) 54,849 (410 ) U.S. Treasury obligations and direct obligations of U.S Government agencies 30,029 (613 ) 2,545 (70 ) 32,574 (683 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 88,957 (1,229 ) 666,685 (21,437 ) 755,642 (22,666 ) Residential - Non-government agencies — — 24,515 (464 ) 24,515 (464 ) Commercial - U.S. Government-sponsored entities 13,973 (247 ) 101,500 (2,365 ) 115,473 (2,612 ) Commercial - Non-government agencies 33,847 (233 ) 46,680 (919 ) 80,527 (1,152 ) Total temporarily impaired securities $ 254,634 $ (2,729 ) $ 896,550 $ (26,733 ) $ 1,151,184 $ (29,462 ) Visa and MasterCard Class B Common Stock As of June 30, 2019 , the Company owns 34,631 shares of Class B common stock of Visa, Inc. ("Visa"). These shares were received in 2008 as part of Visa's initial public offering ("IPO"). These shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the resolution of certain litigation, which is indemnified by Visa members. Since its IPO, Visa has funded a litigation reserve to settle these litigation claims. At its discretion, Visa may continue to increase the litigation reserve based upon a change in the conversion ratio of each member bank’s restricted Class B common stock to unrestricted Class A common stock. Due to the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the Company has determined that the Visa Class B common stock does not have a readily determinable fair value and chooses to carry the shares on the Company's consolidated balance sheets at zero cost basis. During the first quarter of 2019, the Company converted the 11,170 shares of Class B common stock of MasterCard, Inc. ("MasterCard") it received during their initial public offering to an equal number of Class A common stock and sold the shares for $2.6 million . The shares were carried on the Company's consolidated balance sheets at zero cost basis and the proceeds received were recorded as a gain in other operating income - other in the Company's consolidated statements of income. The Company no longer owns any shares of MasterCard Class B common stock. |
LOANS AND LEASES
LOANS AND LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
LOANS AND LEASES | 4. LOANS AND LEASES Loans and leases, excluding loans held for sale, consisted of the following as of June 30, 2019 and December 31, 2018 : (dollars in thousands) June 30, 2019 December 31, 2018 Commercial, financial and agricultural $ 590,071 $ 581,177 Real estate: Construction 72,835 67,269 Residential mortgage 1,513,104 1,424,384 Home equity 472,918 468,966 Commercial mortgage 1,094,256 1,041,685 Consumer 501,273 492,268 Leases 52 124 Gross loans and leases 4,244,509 4,075,873 Net deferred costs 2,604 2,493 Total loans and leases, net of deferred costs $ 4,247,113 $ 4,078,366 During the six months ended June 30, 2019 , we did not foreclose on any loans. During the six months ended June 30, 2018 , we foreclosed on one loan totaling $40 thousand . During the six months ended June 30, 2019 and 2018 , we did not transfer any loans to the held-for-sale category. We did not sell any portfolio loans during the six months ended June 30, 2019 and 2018 . In the first quarter of 2019, we purchased consumer loans totaling $18.3 million which represented the outstanding balance at the time of purchase. In the second quarter of 2019, we purchased consumer loans totaling $31.0 million which represented the outstanding balance at the time of purchase. In 2018, we purchased consumer loans totaling $58.6 million , which included a 0.1 million premium over the $58.5 million outstanding balance at the time of purchase. 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 June 30, 2019 and December 31, 2018 : Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total June 30, 2019 Allowance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 8,109 1,313 13,367 4,313 11,668 9,497 — 48,267 Total ending balance $ 8,109 $ 1,313 $ 13,367 $ 4,313 $ 11,668 $ 9,497 $ — $ 48,267 Loans and leases: Individually evaluated for impairment $ 178 $ — $ 7,569 $ 244 $ 2,097 $ — $ — $ 10,088 Collectively evaluated for impairment 589,893 72,835 1,505,535 472,674 1,092,159 501,273 52 4,234,421 Subtotal 590,071 72,835 1,513,104 472,918 1,094,256 501,273 52 4,244,509 Net deferred costs (income) 412 (408 ) 3,832 233 (1,398 ) (67 ) — 2,604 Total loans and leases, net of deferred costs (income) $ 590,483 $ 72,427 $ 1,516,936 $ 473,151 $ 1,092,858 $ 501,206 $ 52 $ 4,247,113 Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total December 31, 2018 Allowance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 8,027 1,202 14,349 3,788 13,358 7,192 — 47,916 Total ending balance $ 8,027 $ 1,202 $ 14,349 $ 3,788 $ 13,358 7,192 $ — $ 47,916 Loans and leases: Individually evaluated for impairment $ 220 $ 2,273 $ 10,075 $ 275 $ 2,348 $ — $ — $ 15,191 Collectively evaluated for impairment 580,957 64,996 1,414,309 468,691 1,039,337 492,268 124 4,060,682 Subtotal 581,177 67,269 1,424,384 468,966 1,041,685 492,268 124 4,075,873 Net deferred costs (income) 483 (342 ) 3,821 — (1,407 ) (62 ) — 2,493 Total loans and leases, net of deferred costs (income) $ 581,660 $ 66,927 $ 1,428,205 $ 468,966 $ 1,040,278 $ 492,206 $ 124 $ 4,078,366 There were no impaired loans with an allowance recorded as of June 30, 2019 and December 31, 2018 . The following table presents by class, information related to impaired loans as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (dollars in thousands) Unpaid Recorded Allowance Unpaid Recorded Allowance Impaired loans: Commercial, financial and agricultural $ 288 $ 178 $ — $ 330 $ 220 $ — Real estate: Construction — — — 3,076 2,273 — Residential mortgage 8,306 7,569 — 11,019 10,075 — Home equity 244 244 — 275 275 — Commercial mortgage 2,097 2,097 — 2,348 2,348 — Total impaired loans $ 10,935 $ 10,088 $ — $ 17,048 $ 15,191 $ — The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 (dollars in thousands) Average Interest Average Interest Average Interest Average Interest Commercial, financial and agricultural $ 185 $ 2 $ 628 $ 3 $ 199 $ 5 $ 540 $ 5 Real estate: Construction 1,434 32 2,464 28 1,890 62 2,517 54 Residential mortgage 8,583 607 12,832 159 9,289 713 13,358 296 Home equity 254 13 518 — 393 13 546 — Commercial mortgage 2,138 23 3,616 36 2,222 46 3,726 74 Total $ 12,594 $ 677 $ 20,058 $ 226 $ 13,993 $ 839 $ 20,687 $ 429 For the three and six months ended June 30, 2019 and 2018 , the amount of interest income recognized on impaired loans within the period that the loans were impaired were primarily related to loans modified in a troubled debt restructuring ("TDR") that were on accrual status. For the three and six months ended June 30, 2019 and 2018 , the amount of interest income recognized using a cash-based method of accounting during the period that the loans were impaired was not material. Foreclosure Proceedings The Company had $0.5 million and $0.7 million of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at June 30, 2019 and December 31, 2018 , respectively. 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 June 30, 2019 and December 31, 2018 : (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total June 30, 2019 Commercial, financial and agricultural $ 1,104 $ 469 $ — $ — $ 1,573 $ 588,910 $ 590,483 Real estate: Construction — — — — — 72,427 72,427 Residential mortgage 89 975 — 738 1,802 1,515,134 1,516,936 Home equity 970 — — 244 1,214 471,937 473,151 Commercial mortgage — — — — — 1,092,858 1,092,858 Consumer 2,013 737 267 — 3,017 498,189 501,206 Leases — — — — — 52 52 Total $ 4,176 $ 2,181 $ 267 $ 982 $ 7,606 $ 4,239,507 $ 4,247,113 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total December 31, 2018 Commercial, financial and agricultural $ 1,348 $ 162 $ — $ — $ 1,510 $ 580,150 $ 581,660 Real estate: Construction — — — — — 66,927 66,927 Residential mortgage 3,966 157 — 2,048 6,171 1,422,034 1,428,205 Home equity 433 104 298 275 1,110 467,856 468,966 Commercial mortgage — — — — — 1,040,278 1,040,278 Consumer 2,340 872 238 — 3,450 488,756 492,206 Leases — — — — — 124 124 Total $ 8,087 $ 1,295 $ 536 $ 2,323 $ 12,241 $ 4,066,125 $ 4,078,366 Modifications Troubled debt restructurings ("TDRs") included in nonperforming assets at June 30, 2019 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 $9.1 million of TDRs still accruing interest at June 30, 2019 , none of which were more than 90 days delinquent. At December 31, 2018 , there were $12.9 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 six months ended June 30, 2019 . No loans were modified in a TDR during the three and six months ended June 30, 2019 and 2018 . No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2019 and 2018 . We had no commitments on TDRs during the three and six months ended June 30, 2019 and 2018 . 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 June 30, 2019 and December 31, 2018 : (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total June 30, 2019 Commercial, financial and agricultural $ 574,264 $ 3,994 $ 11,813 $ — $ 590,071 $ 412 $ 590,483 Real estate: Construction 72,835 — — — 72,835 (408 ) 72,427 Residential mortgage 1,512,276 — 828 — 1,513,104 3,832 1,516,936 Home equity 472,674 — 244 — 472,918 233 473,151 Commercial mortgage 1,054,254 26,711 13,291 — 1,094,256 (1,398 ) 1,092,858 Consumer 501,007 — 178 88 501,273 (67 ) 501,206 Leases 52 — — — 52 — 52 Total $ 4,187,362 $ 30,705 $ 26,354 $ 88 $ 4,244,509 $ 2,604 $ 4,247,113 (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total December 31, 2018 Commercial, financial and agricultural $ 552,706 $ 7,961 $ 20,510 $ — $ 581,177 $ 483 $ 581,660 Real estate: Construction 67,269 — — — 67,269 (342 ) 66,927 Residential mortgage 1,422,240 — 2,144 — 1,424,384 3,821 1,428,205 Home equity 468,394 — 572 — 468,966 — 468,966 Commercial mortgage 1,029,581 10,412 1,692 — 1,041,685 (1,407 ) 1,040,278 Consumer 492,030 — 80 158 492,268 (62 ) 492,206 Leases 124 — — — 124 — 124 Total $ 4,032,344 $ 18,373 $ 24,998 $ 158 $ 4,075,873 $ 2,493 $ 4,078,366 |
ALLOWANCE FOR LOAN AND LEASE LO
ALLOWANCE FOR LOAN AND LEASE LOSSES | 6 Months Ended |
Jun. 30, 2019 | |
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 (dollars in thousands) Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total Three Months Ended June 30, 2019 Beginning balance $ 7,847 $ 1,299 $ 12,851 $ 4,278 $ 12,036 $ 8,956 $ — $ 47,267 Provision (credit) for loan and lease losses 786 (578 ) 144 26 (393 ) 1,419 — 1,404 8,633 721 12,995 4,304 11,643 10,375 — 48,671 Charge-offs 839 — — — — 1,459 — 2,298 Recoveries 315 592 372 9 25 581 — 1,894 Net charge-offs (recoveries) 524 (592 ) (372 ) (9 ) (25 ) 878 — 404 Ending balance $ 8,109 $ 1,313 $ 13,367 $ 4,313 $ 11,668 $ 9,497 $ — $ 48,267 Three Months Ended June 30, 2018 Beginning balance $ 7,476 $ 1,714 $ 14,207 $ 3,328 $ 16,186 $ 6,306 $ — $ 49,217 Provision (credit) for loan and lease losses 496 91 24 (169 ) (1,121 ) 1,211 — 532 7,972 1,805 14,231 3,159 15,065 7,517 — 49,749 Charge-offs 742 — — — — 1,729 — 2,471 Recoveries 295 6 21 9 29 543 — 903 Net charge-offs (recoveries) 447 (6 ) (21 ) (9 ) (29 ) 1,186 — 1,568 Ending balance $ 7,525 $ 1,811 $ 14,252 $ 3,168 $ 15,094 $ 6,331 $ — $ 48,181 Real Estate (dollars in thousands) Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total Six Months Ended June 30, 2019 Beginning balance $ 8,027 $ 1,202 $ 14,349 $ 3,788 $ 13,358 $ 7,192 $ — $ 47,916 Provision (credit) for loan and lease losses 836 (487 ) (1,376 ) 507 (1,715 ) 4,922 — 2,687 8,863 715 12,973 4,295 11,643 12,114 — 50,603 Charge-offs 1,302 — — — — 3,710 — 5,012 Recoveries 548 598 394 18 25 1,093 — 2,676 Net charge-offs (recoveries) 754 (598 ) (394 ) (18 ) (25 ) 2,617 — 2,336 Ending balance $ 8,109 $ 1,313 $ 13,367 $ 4,313 $ 11,668 $ 9,497 $ — $ 48,267 Six Months Ended June 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 732 (1,223 ) (123 ) (161 ) (1,751 ) 2,847 — 321 8,326 612 14,205 3,156 15,050 8,973 — 50,322 Charge-offs 1,240 — — — — 3,662 — 4,902 Recoveries 439 1,199 47 12 44 1,020 — 2,761 Net charge-offs (recoveries) 801 (1,199 ) (47 ) (12 ) (44 ) 2,642 — 2,141 Ending balance $ 7,525 $ 1,811 $ 14,252 $ 3,168 $ 15,094 $ 6,331 $ — $ 48,181 In accordance with GAAP, loans held for sale and other real estate assets are not included in our assessment of the Allowance. Our Provision was a debit of $1.4 million and a debit of $2.7 million in the three and six months ended June 30, 2019 , respectively, compared to a debit of $0.5 million and a debit of $0.3 million in the three and six months ended June 30, 2018 , respectively. |
INVESTMENTS IN UNCONSOLIDATED S
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 6 Months Ended |
Jun. 30, 2019 | |
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) June 30, 2019 December 31, 2018 Investments in low income housing tax credit partnerships $ 15,486 $ 11,603 Investments in common securities of statutory trusts 1,547 2,169 Investments in affiliates 160 182 Other 54 54 Total $ 17,247 $ 14,008 The Company invests in low-income housing tax credit ("LIHTC") partnerships. As of June 30, 2019 and December 31, 2018 , the Company had $12.1 million and $8.3 million , respectively, in unfunded commitments related to the LIHTC partnerships. The expected payments for the unfunded commitments as of June 30, 2019 for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2019 (remainder) $ 4,018 2020 7,866 2021 94 2022 10 2023 10 2024 26 Thereafter 49 Total unfunded commitments $ 12,073 Prior to 2018, the Company's investments in LIHTC partnerships were accounted for using the cost method. In 2018, the Company voluntarily changed its accounting policy for LIHTC partnerships from the cost method to the proportional amortization method using the practical expedient available under ASC 323, "Investments - Equity Method and Joint Ventures" , which permits an investor to amortize the initial cost of the investment in proportion to only the tax credits allocated to the investor. The Company believes the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits. In addition to a change in the timing of the recognition of amortization expense on LIHTC investments, amortization expense on LIHTC investments is now reflected in the income tax expense line, which provides users a better understanding of the nature of the returns of such investments, instead of in other operating expenses on the consolidated statements of income. The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three and six months ended June 30, 2019 and June 30, 2018 : (dollars in thousands) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Proportional amortization method: Amortization expense recognized in income tax expense $ 259 $ 113 $ 517 $ 227 Tax credits recognized in income tax expense 338 153 615 305 |
CORE DEPOSIT PREMIUM AND MORTGA
CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 $ 2,006 $ 15,843 $ 17,849 Additions — 807 807 Amortization (1,337 ) (894 ) (2,231 ) Balance, June 30, 2018 $ 669 $ 15,756 $ 16,425 Balance, January 1, 2019 $ — $ 15,596 $ 15,596 Additions — 742 742 Amortization — (1,072 ) (1,072 ) Balance, June 30, 2019 $ — $ 15,266 $ 15,266 Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $0.5 million and $0.7 million for the three and six months ended June 30, 2019 , respectively, compared to $0.4 million and $0.8 million for the three and six months ended June 30, 2018 , respectively. Amortization of mortgage servicing rights was $0.6 million and $1.1 million for the three and six months ended June 30, 2019 , respectively, compared to $0.4 million and $0.9 million for the three and six months ended June 30, 2018 , respectively. The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Six Months Ended Six Months Ended (dollars in thousands) June 30, 2019 June 30, 2018 Fair market value, beginning of period $ 17,696 $ 17,161 Fair market value, end of period 15,554 18,560 Weighted average discount rate 9.5 % 9.5 % Forecasted constant prepayment rate assumption (1) 17.4 13.9 (1) Represents annualized loan prepayment rate assumption. The gross carrying value and accumulated amortization related to our core deposit premium and mortgage servicing rights are presented below: June 30, 2019 December 31, 2018 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Core deposit premium $ 44,642 $ (44,642 ) $ — $ 44,642 $ (44,642 ) $ — Mortgage servicing rights 66,755 (51,489 ) 15,266 66,013 (50,417 ) 15,596 Total $ 111,397 $ (96,131 ) $ 15,266 $ 110,655 $ (95,059 ) $ 15,596 Based on the mortgage servicing rights held as of June 30, 2019 , estimated amortization expense for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2019 (remainder) $ 1,481 2020 2,437 2021 1,941 2022 1,570 2023 1,297 2024 1,120 Thereafter 5,420 Total $ 15,266 |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2019 | |
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 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 June 30, 2019 and December 31, 2018 , 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 June 30, 2019 , we were a party to interest rate lock and forward sale commitments on $1.0 million and $7.8 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 June 30, December 31, June 30, December 31, Interest rate lock and forward sale commitments Other assets / other liabilities $ 6 $ 11 $ 69 $ 95 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 June 30, 2019 Interest rate lock and forward sale commitments Mortgage banking income $ (18 ) Loans held for sale Other income — Three Months Ended June 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income (36 ) Loans held for sale Other income 7 Six Months Ended June 30, 2019 Interest rate lock and forward sale commitments Mortgage banking income 21 Loans held for sale Other income — Six Months Ended June 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income (15 ) Loans held for sale Other income — |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2019 | |
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 $1.74 billion line of credit as of June 30, 2019 , compared to $1.43 billion at December 31, 2018 . At June 30, 2019 , $1.40 billion was undrawn under this arrangement, compared to $1.18 billion at December 31, 2018 . Short-term borrowings under this arrangement totaled $221.0 million at June 30, 2019 , compared to $197.0 million at December 31, 2018 . Long-term borrowings under this arrangement totaled $50.0 million at June 30, 2019 and December 31, 2018 . FHLB advances available at June 30, 2019 were secured by certain real estate loans with a carrying value of $2.34 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB. At June 30, 2019 and December 31, 2018 , our bank had additional unused borrowings available at the Federal Reserve discount window of $67.7 million and $73.9 million , respectively. As of June 30, 2019 and December 31, 2018 , certain commercial and commercial real estate loans with a carrying value totaling $121.2 million and $123.3 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 floating rate 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 were $20.6 million of the Company's junior 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. On January 7, 2019, the Company completed the redemption of $20.0 million in floating rate trust preferred securities of Trust II. The redemption price was 100% of the aggregate liquidation amount of the securities plus accumulated but unpaid distributions up to but not including the redemption date. The Company also redeemed $0.6 million of common securities issued by Trust II and held by the Company, as a result of the concurrent redemption of 100% of the principal assets of Trust II, or $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust II trust preferred securities. The redemption was pursuant to the optional prepayment provisions of the indenture. On January 22, 2019, Trust II was canceled with the state of Delaware. Trust III issued $20.0 million in floating rate 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 were $20.6 million of the Company's junior 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. On December 17, 2018, the Company completed the redemption of $20.0 million in floating rate trust preferred securities of Trust III. The redemption price was 100% of the aggregate liquidation amount of the securities plus accumulated but unpaid distributions up to but not including the redemption date. The Company also redeemed $0.6 million of common securities issued by Trust III and held by the Company, as a result of the concurrent redemption of 100% of the principal assets of Trust III, or $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust III trust preferred securities. The redemption was pursuant to the optional prepayment provisions of the indenture. On January 9, 2019, Trust III was canceled with the state of Connecticut. In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV ("Trust IV"). Trust IV issued $30.0 million in floating rate 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 junior 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 floating rate 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 junior 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 floating trust preferred securities, the junior subordinated debentures that are the assets of Trusts IV and V and the common securities issued by Trusts IV and V are redeemable in whole or in part on any interest payment date 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 | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 10. REVENUE FROM CONTRACTS WITH CUSTOMERS The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three and six months ended June 30, 2019 and 2018 . Three Months Ended Six Months Ended (dollars in thousands) 2019 2018 2019 2018 Other operating income: In-scope of ASC 606 Service charges on deposit accounts $ 2,041 $ 1,977 $ 4,122 $ 3,980 Other service charges and fees 3,193 2,835 5,761 5,391 Income on fiduciary activities 1,129 1,017 2,094 1,973 Fees on foreign exchange 28 28 54 60 Loan placement fees 107 220 256 417 In-scope other operating income 6,498 6,077 12,287 11,821 Out-of-scope other operating income 3,596 3,553 9,480 6,763 Total other operating income $ 10,094 $ 9,630 $ 21,767 $ 18,584 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Restricted Stock Units The table below presents the activity of restricted stock units for the six months ended June 30, 2019 : Shares Weighted Average Grant Date Fair Value Non-vested restricted stock units, beginning of period 362,725 $ 26.98 Changes during the period: Granted 181,073 28.89 Vested (134,256 ) 24.31 Forfeited (6,970 ) 29.63 Non-vested restricted stock units, end of period 402,572 28.69 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases" . Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not have any short term leases. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company used the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability as of January 1, 2019. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2019 2019 Lease cost: Operating lease cost $ 1,628 $ 3,256 Variable lease cost 604 1,251 Less: sublease income (11 ) (22 ) Total lease cost $ 2,221 4,485 Other information: Operating cash flows from operating leases $ (1,556 ) $ (3,105 ) Weighted-average remaining lease term - operating leases 14.05 years 14.21 years Weighted-average discount rate - operating leases 3.92 % 3.92 % The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter (dollars in thousands): Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2019 (remainder) $ 3,106 $ 1,032 $ 2,074 2020 6,015 1,939 4,076 2021 5,705 1,787 3,918 2022 5,268 1,645 3,623 2023 4,970 1,512 3,458 2024 4,812 1,383 3,429 Thereafter 40,920 7,669 33,251 Total $ 70,796 $ 16,967 $ 53,829 In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2019 2019 Total rental income recognized $ 519 1,054 Based on the Company's leases as lessor as of June 30, 2019 , estimated lease payments for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2019 (remainder) $ 982 2020 1,782 2021 1,842 2022 1,283 2023 450 2024 88 Thereafter 268 Total $ 6,695 |
LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases" . Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not have any short term leases. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company used the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability as of January 1, 2019. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2019 2019 Lease cost: Operating lease cost $ 1,628 $ 3,256 Variable lease cost 604 1,251 Less: sublease income (11 ) (22 ) Total lease cost $ 2,221 4,485 Other information: Operating cash flows from operating leases $ (1,556 ) $ (3,105 ) Weighted-average remaining lease term - operating leases 14.05 years 14.21 years Weighted-average discount rate - operating leases 3.92 % 3.92 % The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter (dollars in thousands): Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2019 (remainder) $ 3,106 $ 1,032 $ 2,074 2020 6,015 1,939 4,076 2021 5,705 1,787 3,918 2022 5,268 1,645 3,623 2023 4,970 1,512 3,458 2024 4,812 1,383 3,429 Thereafter 40,920 7,669 33,251 Total $ 70,796 $ 16,967 $ 53,829 In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2019 2019 Total rental income recognized $ 519 1,054 Based on the Company's leases as lessor as of June 30, 2019 , estimated lease payments for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2019 (remainder) $ 982 2020 1,782 2021 1,842 2022 1,283 2023 450 2024 88 Thereafter 268 Total $ 6,695 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of other comprehensive income for the three and six months ended June 30, 2019 and 2018 , by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2019 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 16,620 $ 4,455 $ 12,165 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 16,620 4,455 12,165 Defined benefit plans: Amortization of net actuarial loss 264 22 242 Amortization of net transition obligation 4 1 3 Amortization of prior service cost 4 1 3 Defined benefit plans, net 272 24 248 Other comprehensive income $ 16,892 $ 4,479 $ 12,413 (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2018 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (5,057 ) $ (1,388 ) $ (3,669 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securities (5,057 ) (1,388 ) (3,669 ) Defined benefit plans: Amortization of net actuarial loss 235 91 144 Amortization of net transition obligation 4 1 3 Amortization of prior service cost 4 1 3 Defined benefit plans, net 243 93 150 Other comprehensive loss $ (4,814 ) $ (1,295 ) $ (3,519 ) (dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2019 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 31,644 $ 8,483 $ 23,161 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 31,644 8,483 23,161 Defined benefit plans: Net actuarial losses arising during the period — — — Amortization of net actuarial loss 527 51 476 Amortization of net transition obligation 9 2 7 Amortization of prior service cost 9 2 7 Settlement — Defined benefit plans, net 545 55 490 Other comprehensive inco me $ 32,189 $ 8,538 $ 23,651 (dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2018 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (25,512 ) $ (6,872 ) $ (18,640 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securities (25,512 ) (6,872 ) (18,640 ) Defined benefit plans: Net actuarial losses arising during the period — — — Amortization of net actuarial loss 576 184 392 Amortization of net transition obligation 9 2 7 Amortization of prior service cost 9 2 7 Settlement — — — Defined benefit plans, net 594 188 406 Other comprehensive loss $ (24,918 ) $ (6,684 ) $ (18,234 ) The following tables present the changes in each component of AOCI, net of tax, for the three and six months ended June 30, 2019 and 2018 : (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2019 Balance at beginning of period (1,747 ) (6,208 ) (7,955 ) Other comprehensive income before reclassificatio ns 12,165 — 12,165 Reclassification adjustments from AOCI — 248 248 Total other comprehensive income 12,165 248 12,413 Balance at end of period $ 10,418 $ (5,960 ) $ 4,458 (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2018 Balance at beginning of period $ (10,492 ) $ (7,237 ) $ (17,729 ) Impact of the adoption of new accounting standards — — — Other comprehensive income before reclassifications (3,669 ) — (3,669 ) Reclassification adjustments from AOCI — 150 150 Total other comprehensive income (loss) (3,669 ) 150 (3,519 ) Balance at end of period $ (14,161 ) $ (7,087 ) $ (21,248 ) (dollars in thousands) Investment Defined AOCI Six Months Ended June 30, 2019 Balance at beginning of period $ (9,643 ) $ (6,450 ) $ (16,093 ) Impact of the adoption of new accounting standards (3,100 ) — (3,100 ) Adjusted balance at beginning of period (12,743 ) (6,450 ) (19,193 ) Other comprehensive income (loss) before reclassi fications 23,161 — 23,161 Reclassification adjustments from AOCI — 490 490 Total other comprehensive income 23,161 490 23,651 Balance at end of period $ 10,418 $ (5,960 ) $ 4,458 (dollars in thousands) Investment Defined AOCI Six Months Ended June 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 reclassifi cations (18,640 ) — (18,640 ) Reclassification adjustments from AOCI — 406 406 Total other comprehensive income (loss) (18,640 ) 406 (18,234 ) Balance at end of period $ (14,161 ) $ (7,087 ) $ (21,248 ) The following table presents the amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2019 and 2018 : Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended June 30, (dollars in thousands) 2019 2018 Sale of investment securities available-for-sale: Realized losses on securities available-for-sale $ — $ — Investment securities gains (losses) Tax effect — — Income tax benefit (expense) Net of tax $ — $ — Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (264 ) $ (235 ) Salaries and employee benefits Amortization of net transition obligation (4 ) (4 ) Salaries and employee benefits Amortization of prior service cost (4 ) (4 ) Salaries and employee benefits Total before tax (272 ) (243 ) Tax effect 24 93 Income tax benefit (expense) Net of tax $ (248 ) $ (150 ) Total reclassification adjustments from AOCI for the period, net of tax $ (248 ) $ (150 ) Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Six months ended June 30, (dollars in thousands) 2019 2018 Sale of investment securities available-for-sale: Realized losses on securities available-for-sale $ — $ — Investment securities gains (losses) Tax effect — — Income tax benefit (expense) Net of tax $ — $ — Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (527 ) $ (576 ) Salaries and employee benefits Amortization of net transition obligation (9 ) (9 ) Salaries and employee benefits Amortization of prior service cost (9 ) (9 ) Salaries and employee benefits Total before tax (545 ) (594 ) Tax effect 55 188 Income tax benefit (expense) Net of tax $ (490 ) $ (406 ) Total reclassification adjustments from AOCI for the period $ (490 ) $ (406 ) Net of tax |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 14. 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 Six Months Ended (dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 13,534 $ 14,224 $ 29,571 $ 28,501 Weighted average common shares outstanding - basic 28,546,564 29,510,175 28,651,852 29,658,051 Dilutive effect of employee stock options and awards 182,946 204,767 195,934 223,483 Weighted average common shares outstanding - diluted 28,729,510 29,714,942 28,847,786 29,881,534 Basic earnings per common share $ 0.47 $ 0.48 $ 1.03 $ 0.96 Diluted earnings per common share $ 0.47 $ 0.48 $ 1.03 $ 0.95 Anti-dilutive employee stock options and awards outstanding — — — — |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 15. 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 are measured based on the notion of exit 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. 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 June 30, 2019 Financial assets: Cash and due from banks $ 83,534 $ 83,534 $ 83,534 $ — $ — Interest-bearing deposits in other banks 15,173 15,173 15,173 — — Investment securities 1,255,777 1,255,777 1,034 1,243,338 11,405 Loans held for sale 6,848 6,848 — 6,848 — Net loans and leases 4,198,846 4,195,832 — 10,088 4,185,744 Accrued interest receivable 17,260 17,260 17,260 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,351,190 1,351,190 1,351,190 — — Interest-bearing demand and savings and money market 2,576,511 2,576,511 2,576,511 — — Time 1,049,148 1,045,184 — — 1,045,184 Short-term borrowings 221,000 221,000 — 221,000 — Long-term debt 101,547 97,710 — 97,710 — Accrued interest payable (included in other liabilities) 4,890 4,890 4,890 — 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 June 30, 2019 Derivatives: Interest rate lock commitments $ 1,001 $ 6 $ 6 $ — $ 6 $ — Forward sale commitments 7,798 (69 ) (69 ) — (69 ) — Off-balance sheet financial instruments: Commitments to extend credit 1,085,507 1,246 1,246 — 1,246 — Standby letters of credit and financial guarantees written 13,069 196 196 — 196 — 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, 2018 Financial assets: Cash and due from banks $ 80,569 $ 80,569 $ 80,569 $ — $ — Interest-bearing deposits in other banks 21,617 21,617 21,617 — — Investment securities 1,354,812 1,350,576 826 1,338,581 11,169 Loans held for sale 6,647 6,647 — 6,647 — Net loans and leases 4,030,450 3,938,380 — — 3,938,380 Accrued interest receivable 17,000 17,000 17,000 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,436,967 1,436,967 1,436,967 — — Interest-bearing demand and savings and money market 2,402,268 2,402,268 2,402,268 — — Time 1,107,255 1,099,560 — — 1,099,560 Short-term borrowings 197,000 197,000 — 197,000 — Long-term debt 122,166 118,057 — 118,057 — Accrued interest payable (included in other liabilities) 5,051 5,051 5,051 — — 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, 2018 Derivatives: Interest rate lock commitments $ 2,158 $ 11 $ 11 $ — $ 11 $ — Forward sale commitments 8,530 (95 ) (95 ) — (95 ) — Off-balance sheet financial instruments: Commitments to extend credit 1,030,322 1,205 1,205 — 1,205 — Standby letters of credit and financial guarantees written 13,377 201 201 — 201 — 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 the price that we would expect to 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 six months ended June 30, 2019 . 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 six months ended June 30, 2019 . The following tables present the fair value of assets and liabilities measured on a recurring basis as of June 30, 2019 and December 31, 2018 : Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant June 30, 2019 Available-for-sale securities: Debt securities: States and political subdivisions $ 154,504 $ — $ 143,099 $ 11,405 Corporate securities 30,797 — 30,797 — U.S. Treasury obligations and direct obligations of U.S Government agencies 29,615 — 29,615 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 755,373 — 755,373 — Commercial - U.S. Government agencies and sponsored entities 106,354 — 106,354 — Residential - Non-government agencies 40,517 — 40,517 — Commercial - Non-government agencies 137,583 — 137,583 — Total available-for-sale securities 1,254,743 — 1,243,338 11,405 Equity securities 1,034 1,034 — — Derivatives: Interest rate lock and forward sale commitments (63 ) — (63 ) — Total $ 1,255,714 $ 1,034 $ 1,243,275 $ 11,405 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant December 31, 2018 Available-for-sale securities: Debt securities: States and political subdivisions $ 173,674 $ — $ 162,505 $ 11,169 Corporate securities 54,849 — 54,849 — U.S. Treasury obligations and direct obligations of U.S Government agencies 32,574 — 32,574 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 717,052 — 717,052 — Commercial - U.S. Government agencies and sponsored entities 41,118 — 41,118 — Residential - Non-government agencies 51,483 — 51,483 — Commercial - Non-government agencies 134,728 — 134,728 — Total available-for-sale securities 1,205,478 — 1,194,309 11,169 Equity securities 826 826 — — Derivatives: Interest rate lock and forward sale commitments (84 ) — (84 ) — Total $ 1,206,220 $ 826 $ 1,194,225 $ 11,169 For the six months ended June 30, 2019 and 2018 , 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, 2018 $ 11,169 Principal payments received (204 ) Unrealized net gain (loss) included in other comprehensive income 440 Balance at June 30, 2019 $ 11,405 Balance at December 31, 2017 $ 11,794 Principal payments received (189 ) Unrealized net gain (loss) included in other comprehensive income (271 ) Balance at June 30, 2018 $ 11,334 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 $11.4 million and $11.3 million at June 30, 2019 and June 30, 2018 , 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 June 30, 2019 , the weighted average discount rate utilized was 4.27% compared to 5.16% at June 30, 2018 and 5.06% at December 31, 2018 , 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 June 30, 2019 and December 31, 2018 : Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant June 30, 2019 Other real estate (1) $ 276 $ — $ 276 $ — December 31, 2018 Other real estate (1) $ 414 $ — $ 414 $ — (1) 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
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 16. 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 for the year ended December 31, 2018 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 tables for the periods indicated. (dollars in thousands) Banking Treasury All Others Total Three Months Ended June 30, 2019 Net interest income $ 42,589 $ 2,789 $ — $ 45,378 Inter-segment net interest income (expense) 6,602 (2,688 ) (3,914 ) — Credit (provision) for loan and lease losses (1,404 ) — — (1,404 ) Other operating income: Mortgage banking income 957 — 644 1,601 Service charges on deposit accounts 2,041 — — 2,041 Other service charges and fees 1,584 — 2,107 3,691 Income from fiduciary activities 1,129 — — 1,129 Equity in earnings of unconsolidated subsidiaries 71 — — 71 Fees on foreign exchange 25 193 — 218 Income from bank-owned life insurance — 914 — 914 Loan placement fees 107 — — 107 Other 153 — 169 322 Other operating income 6,067 1,107 2,920 10,094 Other operating expense (15,903 ) (399 ) (19,805 ) (36,107 ) Administrative and overhead expense allocation (17,061 ) (211 ) 17,272 — Income before taxes 20,890 598 (3,527 ) 17,961 Income tax (expense) benefit (5,142 ) (154 ) 869 (4,427 ) Net income (loss) $ 15,748 $ 444 $ (2,658 ) $ 13,534 (dollars in thousands) Banking Treasury All Others Total Three Months Ended June 30, 2018 Net interest income $ 37,281 $ 5,391 $ — $ 42,672 Inter-segment net interest income (expense) 6,915 (4,941 ) (1,974 ) — Credit (provision) for loan and lease losses (532 ) — — (532 ) Other operating income: Mortgage banking income 923 — 852 1,775 Service charges on deposit accounts 1,977 — — 1,977 Other service charges and fees 1,287 8 2,082 3,377 Income from fiduciary activities 1,017 — — 1,017 Equity in earnings of unconsolidated subsidiaries 37 — — 37 Fees on foreign exchange 29 248 277 Income from bank-owned life insurance — 501 — 501 Loan placement fees 220 — — 220 Other 200 2 247 449 Other operating income 5,690 759 3,181 9,630 Other operating expense (15,777 ) (358 ) (17,476 ) (33,611 ) Administrative and overhead expense allocation (15,167 ) (223 ) 15,390 — Income before taxes 18,410 628 (879 ) 18,159 Income tax (expense) benefit (3,898 ) (133 ) 96 (3,935 ) Net income (loss) $ 14,512 $ 495 $ (783 ) $ 14,224 (dollars in thousands) Banking Treasury All Others Total Six Months Ended June 30, 2019 Net interest income $ 84,269 $ 6,222 $ — $ 90,491 Inter-segment net interest income (expense) 13,292 (5,294 ) (7,998 ) — Credit (provision) for loan and lease losses (2,687 ) — — (2,687 ) Other operating income: Mortgage banking income 1,607 — 1,418 3,025 Service charges on deposit accounts 4,122 — — 4,122 Other service charges and fees 2,660 — 4,095 6,755 Income from fiduciary activities 2,094 — — 2,094 Equity in earnings of unconsolidated subsidiaries 79 — — 79 Fees on foreign exchange 47 322 — 369 Income from bank-owned life insurance — 1,866 — 1,866 Loan placement fees 256 — — 256 Other 299 2,554 348 3,201 Other operating income 11,164 4,742 5,861 21,767 Other operating expense (31,807 ) (745 ) (37,903 ) (70,455 ) Administrative and overhead expense allocation (32,458 ) (420 ) 32,878 — Income before taxes 41,773 4,505 (7,162 ) 39,116 Income tax (expense) benefit (10,194 ) (1,099 ) 1,748 (9,545 ) Net income (loss) $ 31,579 $ 3,406 $ (5,414 ) $ 29,571 (dollars in thousands) Banking Treasury All Others Total Six Months Ended June 30, 2018 Net interest income $ 73,423 $ 11,571 $ — $ 84,994 Inter-segment net interest income (expense) 13,836 (10,390 ) (3,446 ) — Credit (provision) for loan and lease losses (321 ) — — (321 ) Other operating income: Mortgage banking income 1,916 — 1,706 3,622 Service charges on deposit accounts 3,980 — — 3,980 Other service charges and fees 2,430 14 3,967 6,411 Income from fiduciary activities 1,973 — — 1,973 Equity in earnings of unconsolidated subsidiaries 80 — — 80 Fees on foreign exchange 53 435 488 Income from bank-owned life insurance — 819 — 819 Loan placement fees 417 — — 417 Other 355 2 437 794 Other operating income 11,204 1,270 6,110 18,584 Other operating expense (31,702 ) (743 ) (34,570 ) (67,015 ) Administrative and overhead expense allocation (30,113 ) (446 ) 30,559 — Income before taxes 36,327 1,262 (1,347 ) 36,242 Income tax (expense) benefit (7,579 ) (263 ) 101 (7,741 ) Net income $ 28,748 $ 999 $ (1,246 ) $ 28,501 (dollars in thousands) Banking Treasury All Others Total June 30, 2019 Investment securities $ — $ 1,255,777 $ — $ 1,255,777 Loans and leases (including loans held for sale) 4,253,961 — — 4,253,961 Other 20,833 251,213 138,222 410,268 Total assets $ 4,274,794 $ 1,506,990 $ 138,222 $ 5,920,006 (dollars in thousands) Banking Treasury All Others Total December 31, 2018 Investment securities $ — $ 1,354,812 $ — $ 1,354,812 Loans and leases (including loans held for sale) 4,085,013 — — 4,085,013 Other 36,905 256,652 73,644 367,201 Total assets $ 4,121,918 $ 1,611,464 $ 73,644 $ 5,807,026 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Jun. 30, 2019 | |
Legal Proceedings [Abstract] | |
LEGAL PROCEEDINGS | 17. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 for the fiscal year ended December 31, 2018 . 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. During the fourth quarter of 2018, we voluntarily changed our accounting policy for investments in low income housing tax credit ("LIHTC") partnerships from the cost method to the proportional amortization method using the practical expedient available under ASC 323, "Investments - Equity Method and Joint Ventures" , which permits an investor to amortize the initial cost of the investment in proportion to only the tax credits allocated to the investor. We believe the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits. In addition to a change in the timing of the recognition of amortization expense on LIHTC investments, amortization expense on LIHTC investments is now reflected in the income tax expense line, which provides users a better understanding of the nature of the returns of such investments, instead of in other operating expenses on the consolidated statements of income. The change did not impact net income, the consolidated balance sheets and the consolidated statements of cash flows. 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, proportional amortization and cost methods were $0.2 million , $15.5 million and $1.6 million , respectively, at June 30, 2019 and $0.2 million , $11.6 million and $2.2 million , respectively, at December 31, 2018 . 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 Certain prior year amounts in the consolidated financial statements and the notes thereto have been reclassified to conform to the fiscal 2019 presentation. Such reclassifications had no effect on the Company's reported net income or shareholders' equity. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2019 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 lease 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. The Company elected to adopt the practical expedient allowed under ASU 2018-11. During the year ended December 31, 2018, the Company engaged a software vendor to assist in the implementation of ASU 2016-02. The Company adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective approach and recorded a ROU lease asset and corresponding lease liability on the Company's consolidated balance sheet of $55.9 million for its operating leases where it is a lessee. There was no impact to the Company's financial statements for its leases where it is a lessor. As of June 30, 2019 , the ROU lease asset and lease liability was $53.7 million and $53.8 million , respectively. See Note 12 - Leases for required disclosures on this new standard. 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 a one-time opportunity to reclassify securities from the held-to-maturity category to the available-for-sale category. The Company adopted ASU 2017-12 effective January 1, 2019 and transferred its entire held-to-maturity investment securities portfolio with a fair value of $144.3 million at January 1, 2019 to the available-for-sale portfolio. On the date of adoption, the Company recorded a cumulative effect adjustment related to the unrealized loss on the investment securities transferred, which decreased available-for-sale investments by $4.2 million , increased deferred tax assets by $1.1 million , and decreased opening accumulated other comprehensive income (loss) ("AOCI") by $3.1 million . The ASU did not have a material impact on our current derivative activities. 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. The Company early adopted ASU 2018-15 during the second quarter of 2019. The adoption of the ASU did not have a material impact on our consolidated financial statements. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , " and subsequent amendments to the guidance, ASU 2019-04 in April 2019 and ASU 2019-05 in May 2019. The standard 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. However, an organization may elect to phase in the regulatory capital impact over a three-year transition period if adoption of the new standard results in a reduction of retained earnings. 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 existing processes, 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. To date, the Company has established appropriate loan pools by segment and sub-segment, developed internal loss driver models, and has leveraged a third-party software solution to measure expected losses under CECL. As part of this process, the Company has also engaged an additional third party specializing in economic forecasting to enable it to incorporate reasonable and supportable forecasts in its process. Finally, the Company is developing internal controls around all applicable components, including data, calculations and implementation. Later in the year, the Company plans to generate and evaluate model scenarios under CECL in tandem with its current reserving processes for select interim reporting periods in 2019. While the Company is evaluating the full impact of adopting this new guidance, management expects that it will be significantly influenced by its own historical experience, the composition and quality of the Company’s loans, as well as economic condition expectations as of the date of adoption. The Company also anticipates significant changes to its reserve calculation processes and procedures and continues to evaluate the potential 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 disclosures in 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 disclosures in our consolidated financial statements. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Available-for-sale: Debt securities: States and political subdivisions $ 152,303 $ 2,308 $ (107 ) $ 154,504 Corporate securities 30,594 231 (28 ) 30,797 U.S. Treasury obligations and direct obligations of U.S Government agencies 29,869 2 (256 ) 29,615 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 758,008 3,309 (5,944 ) 755,373 Commercial - U.S. Government agencies and sponsored entities 105,347 1,136 (129 ) 106,354 Residential - Non-government agencies 39,429 1,088 — 40,517 Commercial - Non-government agencies 134,771 2,869 (57 ) 137,583 Total available-for-sale securities $ 1,250,321 $ 10,943 $ (6,521 ) $ 1,254,743 Equity securities $ 872 $ 162 $ — $ 1,034 (dollars in thousands) Amortized Gross Gross Fair December 31, 2018 Held-to-maturity: Mortgage-backed securities: Residential - U.S. Government-sponsored entities $ 83,436 $ 19 $ (3,174 ) $ 80,281 Commercial - U.S. Government-sponsored entities 65,072 — (1,081 ) 63,991 Total held-to-maturity securities $ 148,508 $ 19 $ (4,255 ) $ 144,272 Available-for-sale: Debt securities: States and political subdivisions $ 174,114 $ 1,035 $ (1,475 ) $ 173,674 Corporate securities 55,259 — (410 ) 54,849 U.S. Treasury obligations and direct obligations of U.S Government agencies 33,257 — (683 ) 32,574 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 736,175 369 (19,492 ) 717,052 Commercial - U.S. Government agencies and sponsored entities 53,014 — (1,531 ) 51,483 Residential - Non-government agencies 41,245 337 (464 ) 41,118 Commercial - Non-government agencies 134,867 1,013 (1,152 ) 134,728 Total available-for-sale securities $ 1,227,931 $ 2,754 $ (25,207 ) $ 1,205,478 Equity securities $ 826 $ — $ — $ 826 |
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 June 30, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. June 30, 2019 (dollars in thousands) Amortized Cost Fair Value Available-for-sale: Due in one year or less $ 36,539 $ 36,603 Due after one year through five years 82,075 82,723 Due after five years through ten years 49,903 50,805 Due after ten years 44,249 44,785 Mortgage-backed securities: Residential - U.S. Government-sponsored entities 758,008 755,373 Commercial - U.S. Government agencies and sponsored entities 105,347 106,354 Residential - Non-government agencies 39,429 40,517 Commercial - Non-government agencies 134,771 137,583 Total available-for-sale securities $ 1,250,321 $ 1,254,743 Equity securities $ 872 $ 1,034 |
Schedule of investment securities in an unrealized loss position | Provided below is a summary of the 134 and 336 investment securities which were in an unrealized or unrecognized loss position at June 30, 2019 and December 31, 2018 , 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 June 30, 2019 Debt securities: States and political subdivisions $ 2,656 $ (5 ) $ 10,456 $ (102 ) $ 13,112 $ (107 ) Corporate securities — — 5,200 (28 ) 5,200 (28 ) U.S. Treasury obligations and direct obligations of U.S Government agencies — — 27,943 (256 ) 27,943 (256 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 18,320 (194 ) 426,811 (5,750 ) 445,131 (5,944 ) Residential - Non-government agencies — — — — — — Commercial - U.S. Government agencies and sponsored entities — — 30,253 (129 ) 30,253 (129 ) Commercial - Non-government agencies 16,709 (57 ) — — 16,709 (57 ) Total temporarily impaired securities $ 37,685 $ (256 ) $ 500,663 $ (6,265 ) $ 538,348 $ (6,521 ) Less Than 12 Months 12 Months or Longer Total (dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Debt securities: States and political subdivisions $ 38,099 $ (157 ) $ 49,505 $ (1,318 ) $ 87,604 $ (1,475 ) Corporate securities 49,729 (250 ) 5,120 (160 ) 54,849 (410 ) U.S. Treasury obligations and direct obligations of U.S Government agencies 30,029 (613 ) 2,545 (70 ) 32,574 (683 ) Mortgage-backed securities: Residential - U.S. Government-sponsored entities 88,957 (1,229 ) 666,685 (21,437 ) 755,642 (22,666 ) Residential - Non-government agencies — — 24,515 (464 ) 24,515 (464 ) Commercial - U.S. Government-sponsored entities 13,973 (247 ) 101,500 (2,365 ) 115,473 (2,612 ) Commercial - Non-government agencies 33,847 (233 ) 46,680 (919 ) 80,527 (1,152 ) Total temporarily impaired securities $ 254,634 $ (2,729 ) $ 896,550 $ (26,733 ) $ 1,151,184 $ (29,462 ) |
LOANS AND LEASES (Tables)
LOANS AND LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of loans and leases, excluding loans held for sale | Loans and leases, excluding loans held for sale, consisted of the following as of June 30, 2019 and December 31, 2018 : (dollars in thousands) June 30, 2019 December 31, 2018 Commercial, financial and agricultural $ 590,071 $ 581,177 Real estate: Construction 72,835 67,269 Residential mortgage 1,513,104 1,424,384 Home equity 472,918 468,966 Commercial mortgage 1,094,256 1,041,685 Consumer 501,273 492,268 Leases 52 124 Gross loans and leases 4,244,509 4,075,873 Net deferred costs 2,604 2,493 Total loans and leases, net of deferred costs $ 4,247,113 $ 4,078,366 |
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 June 30, 2019 and December 31, 2018 : Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total June 30, 2019 Allowance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 8,109 1,313 13,367 4,313 11,668 9,497 — 48,267 Total ending balance $ 8,109 $ 1,313 $ 13,367 $ 4,313 $ 11,668 $ 9,497 $ — $ 48,267 Loans and leases: Individually evaluated for impairment $ 178 $ — $ 7,569 $ 244 $ 2,097 $ — $ — $ 10,088 Collectively evaluated for impairment 589,893 72,835 1,505,535 472,674 1,092,159 501,273 52 4,234,421 Subtotal 590,071 72,835 1,513,104 472,918 1,094,256 501,273 52 4,244,509 Net deferred costs (income) 412 (408 ) 3,832 233 (1,398 ) (67 ) — 2,604 Total loans and leases, net of deferred costs (income) $ 590,483 $ 72,427 $ 1,516,936 $ 473,151 $ 1,092,858 $ 501,206 $ 52 $ 4,247,113 Real Estate (dollars in thousands) Comml, Fin & Ag Constr Resi Mortgage Home Equity Comml Mortgage Consumer Leases Total December 31, 2018 Allowance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 8,027 1,202 14,349 3,788 13,358 7,192 — 47,916 Total ending balance $ 8,027 $ 1,202 $ 14,349 $ 3,788 $ 13,358 7,192 $ — $ 47,916 Loans and leases: Individually evaluated for impairment $ 220 $ 2,273 $ 10,075 $ 275 $ 2,348 $ — $ — $ 15,191 Collectively evaluated for impairment 580,957 64,996 1,414,309 468,691 1,039,337 492,268 124 4,060,682 Subtotal 581,177 67,269 1,424,384 468,966 1,041,685 492,268 124 4,075,873 Net deferred costs (income) 483 (342 ) 3,821 — (1,407 ) (62 ) — 2,493 Total loans and leases, net of deferred costs (income) $ 581,660 $ 66,927 $ 1,428,205 $ 468,966 $ 1,040,278 $ 492,206 $ 124 $ 4,078,366 |
Schedule of impaired loans, by class | The following table presents by class, information related to impaired loans as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (dollars in thousands) Unpaid Recorded Allowance Unpaid Recorded Allowance Impaired loans: Commercial, financial and agricultural $ 288 $ 178 $ — $ 330 $ 220 $ — Real estate: Construction — — — 3,076 2,273 — Residential mortgage 8,306 7,569 — 11,019 10,075 — Home equity 244 244 — 275 275 — Commercial mortgage 2,097 2,097 — 2,348 2,348 — Total impaired loans $ 10,935 $ 10,088 $ — $ 17,048 $ 15,191 $ — |
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 six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 (dollars in thousands) Average Interest Average Interest Average Interest Average Interest Commercial, financial and agricultural $ 185 $ 2 $ 628 $ 3 $ 199 $ 5 $ 540 $ 5 Real estate: Construction 1,434 32 2,464 28 1,890 62 2,517 54 Residential mortgage 8,583 607 12,832 159 9,289 713 13,358 296 Home equity 254 13 518 — 393 13 546 — Commercial mortgage 2,138 23 3,616 36 2,222 46 3,726 74 Total $ 12,594 $ 677 $ 20,058 $ 226 $ 13,993 $ 839 $ 20,687 $ 429 |
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 June 30, 2019 and December 31, 2018 : (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total June 30, 2019 Commercial, financial and agricultural $ 1,104 $ 469 $ — $ — $ 1,573 $ 588,910 $ 590,483 Real estate: Construction — — — — — 72,427 72,427 Residential mortgage 89 975 — 738 1,802 1,515,134 1,516,936 Home equity 970 — — 244 1,214 471,937 473,151 Commercial mortgage — — — — — 1,092,858 1,092,858 Consumer 2,013 737 267 — 3,017 498,189 501,206 Leases — — — — — 52 52 Total $ 4,176 $ 2,181 $ 267 $ 982 $ 7,606 $ 4,239,507 $ 4,247,113 (dollars in thousands) Accruing Accruing Accruing Nonaccrual Total Loans and Total December 31, 2018 Commercial, financial and agricultural $ 1,348 $ 162 $ — $ — $ 1,510 $ 580,150 $ 581,660 Real estate: Construction — — — — — 66,927 66,927 Residential mortgage 3,966 157 — 2,048 6,171 1,422,034 1,428,205 Home equity 433 104 298 275 1,110 467,856 468,966 Commercial mortgage — — — — — 1,040,278 1,040,278 Consumer 2,340 872 238 — 3,450 488,756 492,206 Leases — — — — — 124 124 Total $ 8,087 $ 1,295 $ 536 $ 2,323 $ 12,241 $ 4,066,125 $ 4,078,366 |
Schedule of information related to loans modified in a TDR, by class | No loans were modified in a TDR during the three and six months ended June 30, 2019 and 2018 . |
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 June 30, 2019 and December 31, 2018 : (dollars in thousands) Pass Special Substandard Loss Subtotal Net Total June 30, 2019 Commercial, financial and agricultural $ 574,264 $ 3,994 $ 11,813 $ — $ 590,071 $ 412 $ 590,483 Real estate: Construction 72,835 — — — 72,835 (408 ) 72,427 Residential mortgage 1,512,276 — 828 — 1,513,104 3,832 1,516,936 Home equity 472,674 — 244 — 472,918 233 473,151 Commercial mortgage 1,054,254 26,711 13,291 — 1,094,256 (1,398 ) 1,092,858 Consumer 501,007 — 178 88 501,273 (67 ) 501,206 Leases 52 — — — 52 — 52 Total $ 4,187,362 $ 30,705 $ 26,354 $ 88 $ 4,244,509 $ 2,604 $ 4,247,113 |
ALLOWANCE FOR LOAN AND LEASE _2
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 (dollars in thousands) Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total Three Months Ended June 30, 2019 Beginning balance $ 7,847 $ 1,299 $ 12,851 $ 4,278 $ 12,036 $ 8,956 $ — $ 47,267 Provision (credit) for loan and lease losses 786 (578 ) 144 26 (393 ) 1,419 — 1,404 8,633 721 12,995 4,304 11,643 10,375 — 48,671 Charge-offs 839 — — — — 1,459 — 2,298 Recoveries 315 592 372 9 25 581 — 1,894 Net charge-offs (recoveries) 524 (592 ) (372 ) (9 ) (25 ) 878 — 404 Ending balance $ 8,109 $ 1,313 $ 13,367 $ 4,313 $ 11,668 $ 9,497 $ — $ 48,267 Three Months Ended June 30, 2018 Beginning balance $ 7,476 $ 1,714 $ 14,207 $ 3,328 $ 16,186 $ 6,306 $ — $ 49,217 Provision (credit) for loan and lease losses 496 91 24 (169 ) (1,121 ) 1,211 — 532 7,972 1,805 14,231 3,159 15,065 7,517 — 49,749 Charge-offs 742 — — — — 1,729 — 2,471 Recoveries 295 6 21 9 29 543 — 903 Net charge-offs (recoveries) 447 (6 ) (21 ) (9 ) (29 ) 1,186 — 1,568 Ending balance $ 7,525 $ 1,811 $ 14,252 $ 3,168 $ 15,094 $ 6,331 $ — $ 48,181 Real Estate (dollars in thousands) Commercial, Construction Residential Mortgage Home Equity Commercial Mortgage Consumer Leases Total Six Months Ended June 30, 2019 Beginning balance $ 8,027 $ 1,202 $ 14,349 $ 3,788 $ 13,358 $ 7,192 $ — $ 47,916 Provision (credit) for loan and lease losses 836 (487 ) (1,376 ) 507 (1,715 ) 4,922 — 2,687 8,863 715 12,973 4,295 11,643 12,114 — 50,603 Charge-offs 1,302 — — — — 3,710 — 5,012 Recoveries 548 598 394 18 25 1,093 — 2,676 Net charge-offs (recoveries) 754 (598 ) (394 ) (18 ) (25 ) 2,617 — 2,336 Ending balance $ 8,109 $ 1,313 $ 13,367 $ 4,313 $ 11,668 $ 9,497 $ — $ 48,267 Six Months Ended June 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 732 (1,223 ) (123 ) (161 ) (1,751 ) 2,847 — 321 8,326 612 14,205 3,156 15,050 8,973 — 50,322 Charge-offs 1,240 — — — — 3,662 — 4,902 Recoveries 439 1,199 47 12 44 1,020 — 2,761 Net charge-offs (recoveries) 801 (1,199 ) (47 ) (12 ) (44 ) 2,642 — 2,141 Ending balance $ 7,525 $ 1,811 $ 14,252 $ 3,168 $ 15,094 $ 6,331 $ — $ 48,181 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30, 2019 and June 30, 2018 : (dollars in thousands) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Proportional amortization method: Amortization expense recognized in income tax expense $ 259 $ 113 $ 517 $ 227 Tax credits recognized in income tax expense 338 153 615 305 The components of the Company's investments in unconsolidated subsidiaries were as follows: (dollars in thousands) June 30, 2019 December 31, 2018 Investments in low income housing tax credit partnerships $ 15,486 $ 11,603 Investments in common securities of statutory trusts 1,547 2,169 Investments in affiliates 160 182 Other 54 54 Total $ 17,247 $ 14,008 |
Other Commitments | he expected payments for the unfunded commitments as of June 30, 2019 for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2019 (remainder) $ 4,018 2020 7,866 2021 94 2022 10 2023 10 2024 26 Thereafter 49 Total unfunded commitments $ 12,073 |
CORE DEPOSIT PREMIUM AND MORT_2
CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 December 31, 2018 (dollars in thousands) Gross Accumulated Net Gross Accumulated Net Core deposit premium $ 44,642 $ (44,642 ) $ — $ 44,642 $ (44,642 ) $ — Mortgage servicing rights 66,755 (51,489 ) 15,266 66,013 (50,417 ) 15,596 Total $ 111,397 $ (96,131 ) $ 15,266 $ 110,655 $ (95,059 ) $ 15,596 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, 2018 $ 2,006 $ 15,843 $ 17,849 Additions — 807 807 Amortization (1,337 ) (894 ) (2,231 ) Balance, June 30, 2018 $ 669 $ 15,756 $ 16,425 Balance, January 1, 2019 $ — $ 15,596 $ 15,596 Additions — 742 742 Amortization — (1,072 ) (1,072 ) Balance, June 30, 2019 $ — $ 15,266 $ 15,266 |
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: Six Months Ended Six Months Ended (dollars in thousands) June 30, 2019 June 30, 2018 Fair market value, beginning of period $ 17,696 $ 17,161 Fair market value, end of period 15,554 18,560 Weighted average discount rate 9.5 % 9.5 % Forecasted constant prepayment rate assumption (1) 17.4 13.9 |
Schedule of estimated amortization expense | Based on the mortgage servicing rights held as of June 30, 2019 , estimated amortization expense for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2019 (remainder) $ 1,481 2020 2,437 2021 1,941 2022 1,570 2023 1,297 2024 1,120 Thereafter 5,420 Total $ 15,266 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, December 31, June 30, December 31, Interest rate lock and forward sale commitments Other assets / other liabilities $ 6 $ 11 $ 69 $ 95 |
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 June 30, 2019 Interest rate lock and forward sale commitments Mortgage banking income $ (18 ) Loans held for sale Other income — Three Months Ended June 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income (36 ) Loans held for sale Other income 7 Six Months Ended June 30, 2019 Interest rate lock and forward sale commitments Mortgage banking income 21 Loans held for sale Other income — Six Months Ended June 30, 2018 Interest rate lock and forward sale commitments Mortgage banking income (15 ) Loans held for sale Other income — |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, "Revenue from Contracts with Customers" for the three and six months ended June 30, 2019 and 2018 . Three Months Ended Six Months Ended (dollars in thousands) 2019 2018 2019 2018 Other operating income: In-scope of ASC 606 Service charges on deposit accounts $ 2,041 $ 1,977 $ 4,122 $ 3,980 Other service charges and fees 3,193 2,835 5,761 5,391 Income on fiduciary activities 1,129 1,017 2,094 1,973 Fees on foreign exchange 28 28 54 60 Loan placement fees 107 220 256 417 In-scope other operating income 6,498 6,077 12,287 11,821 Out-of-scope other operating income 3,596 3,553 9,480 6,763 Total other operating income $ 10,094 $ 9,630 $ 21,767 $ 18,584 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of activity of restricted stock awards and units | The table below presents the activity of restricted stock units for the six months ended June 30, 2019 : Shares Weighted Average Grant Date Fair Value Non-vested restricted stock units, beginning of period 362,725 $ 26.98 Changes during the period: Granted 181,073 28.89 Vested (134,256 ) 24.31 Forfeited (6,970 ) 29.63 Non-vested restricted stock units, end of period 402,572 28.69 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2019 2019 Lease cost: Operating lease cost $ 1,628 $ 3,256 Variable lease cost 604 1,251 Less: sublease income (11 ) (22 ) Total lease cost $ 2,221 4,485 Other information: Operating cash flows from operating leases $ (1,556 ) $ (3,105 ) Weighted-average remaining lease term - operating leases 14.05 years 14.21 years Weighted-average discount rate - operating leases 3.92 % 3.92 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter (dollars in thousands): Year Ending December 31, Undiscounted Cash Flows Lease Liability Expense Lease Liability Reduction 2019 (remainder) $ 3,106 $ 1,032 $ 2,074 2020 6,015 1,939 4,076 2021 5,705 1,787 3,918 2022 5,268 1,645 3,623 2023 4,970 1,512 3,458 2024 4,812 1,383 3,429 Thereafter 40,920 7,669 33,251 Total $ 70,796 $ 16,967 $ 53,829 |
Operating Lease, Lease Income [Table Text Block] | The following represents lease income related to these leases that was recognized for the period indicated: Three Months Ended Six Months Ended (dollars in thousands) 2019 2019 Total rental income recognized $ 519 1,054 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Based on the Company's leases as lessor as of June 30, 2019 , estimated lease payments for the remainder of fiscal year 2019 , the next five succeeding fiscal years and all years thereafter are as follows (dollars in thousands): Year Ending December 31, 2019 (remainder) $ 982 2020 1,782 2021 1,842 2022 1,283 2023 450 2024 88 Thereafter 268 Total $ 6,695 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30, 2019 and 2018 , by component: (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2019 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 16,620 $ 4,455 $ 12,165 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 16,620 4,455 12,165 Defined benefit plans: Amortization of net actuarial loss 264 22 242 Amortization of net transition obligation 4 1 3 Amortization of prior service cost 4 1 3 Defined benefit plans, net 272 24 248 Other comprehensive income $ 16,892 $ 4,479 $ 12,413 (dollars in thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2018 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (5,057 ) $ (1,388 ) $ (3,669 ) Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized losses on investment securities (5,057 ) (1,388 ) (3,669 ) Defined benefit plans: Amortization of net actuarial loss 235 91 144 Amortization of net transition obligation 4 1 3 Amortization of prior service cost 4 1 3 Defined benefit plans, net 243 93 150 Other comprehensive loss $ (4,814 ) $ (1,295 ) $ (3,519 ) (dollars in thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2019 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 31,644 $ 8,483 $ 23,161 Less: Reclassification adjustments from AOCI realized in net income — — — Net unrealized gains on investment securities 31,644 8,483 23,161 Defined benefit plans: Net actuarial losses arising during the period — — — Amortization of net actuarial loss 527 51 476 Amortization of net transition obligation 9 2 7 Amortization of prior service cost 9 2 7 Settlement — Defined benefit plans, net 545 55 490 Other comprehensive inco me $ 32,189 $ 8,538 $ 23,651 |
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 six months ended June 30, 2019 and 2018 : (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2019 Balance at beginning of period (1,747 ) (6,208 ) (7,955 ) Other comprehensive income before reclassificatio ns 12,165 — 12,165 Reclassification adjustments from AOCI — 248 248 Total other comprehensive income 12,165 248 12,413 Balance at end of period $ 10,418 $ (5,960 ) $ 4,458 (dollars in thousands) Investment Defined AOCI Three Months Ended June 30, 2018 Balance at beginning of period $ (10,492 ) $ (7,237 ) $ (17,729 ) Impact of the adoption of new accounting standards — — — Other comprehensive income before reclassifications (3,669 ) — (3,669 ) Reclassification adjustments from AOCI — 150 150 Total other comprehensive income (loss) (3,669 ) 150 (3,519 ) Balance at end of period $ (14,161 ) $ (7,087 ) $ (21,248 ) (dollars in thousands) Investment Defined AOCI Six Months Ended June 30, 2019 Balance at beginning of period $ (9,643 ) $ (6,450 ) $ (16,093 ) Impact of the adoption of new accounting standards (3,100 ) — (3,100 ) Adjusted balance at beginning of period (12,743 ) (6,450 ) (19,193 ) Other comprehensive income (loss) before reclassi fications 23,161 — 23,161 Reclassification adjustments from AOCI — 490 490 Total other comprehensive income 23,161 490 23,651 Balance at end of period $ 10,418 $ (5,960 ) $ 4,458 (dollars in thousands) Investment Defined AOCI Six Months Ended June 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 reclassifi cations (18,640 ) — (18,640 ) Reclassification adjustments from AOCI — 406 406 Total other comprehensive income (loss) (18,640 ) 406 (18,234 ) Balance at end of period $ (14,161 ) $ (7,087 ) $ (21,248 ) |
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 six months ended June 30, 2019 and 2018 : Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Three months ended June 30, (dollars in thousands) 2019 2018 Sale of investment securities available-for-sale: Realized losses on securities available-for-sale $ — $ — Investment securities gains (losses) Tax effect — — Income tax benefit (expense) Net of tax $ — $ — Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (264 ) $ (235 ) Salaries and employee benefits Amortization of net transition obligation (4 ) (4 ) Salaries and employee benefits Amortization of prior service cost (4 ) (4 ) Salaries and employee benefits Total before tax (272 ) (243 ) Tax effect 24 93 Income tax benefit (expense) Net of tax $ (248 ) $ (150 ) Total reclassification adjustments from AOCI for the period, net of tax $ (248 ) $ (150 ) Amount Reclassified from AOCI Affected Line Item in the Statement Where Net Income is Presented Details about AOCI Components Six months ended June 30, (dollars in thousands) 2019 2018 Sale of investment securities available-for-sale: Realized losses on securities available-for-sale $ — $ — Investment securities gains (losses) Tax effect — — Income tax benefit (expense) Net of tax $ — $ — Defined benefit retirement and supplemental executive retirement plan items: Amortization of net actuarial loss $ (527 ) $ (576 ) Salaries and employee benefits Amortization of net transition obligation (9 ) (9 ) Salaries and employee benefits Amortization of prior service cost (9 ) (9 ) Salaries and employee benefits Total before tax (545 ) (594 ) Tax effect 55 188 Income tax benefit (expense) Net of tax $ (490 ) $ (406 ) Total reclassification adjustments from AOCI for the period $ (490 ) $ (406 ) Net of tax |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended (dollars in thousands, except per share data) 2019 2018 2019 2018 Net income $ 13,534 $ 14,224 $ 29,571 $ 28,501 Weighted average common shares outstanding - basic 28,546,564 29,510,175 28,651,852 29,658,051 Dilutive effect of employee stock options and awards 182,946 204,767 195,934 223,483 Weighted average common shares outstanding - diluted 28,729,510 29,714,942 28,847,786 29,881,534 Basic earnings per common share $ 0.47 $ 0.48 $ 1.03 $ 0.96 Diluted earnings per common share $ 0.47 $ 0.48 $ 1.03 $ 0.95 Anti-dilutive employee stock options and awards outstanding — — — — |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Financial assets: Cash and due from banks $ 83,534 $ 83,534 $ 83,534 $ — $ — Interest-bearing deposits in other banks 15,173 15,173 15,173 — — Investment securities 1,255,777 1,255,777 1,034 1,243,338 11,405 Loans held for sale 6,848 6,848 — 6,848 — Net loans and leases 4,198,846 4,195,832 — 10,088 4,185,744 Accrued interest receivable 17,260 17,260 17,260 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,351,190 1,351,190 1,351,190 — — Interest-bearing demand and savings and money market 2,576,511 2,576,511 2,576,511 — — Time 1,049,148 1,045,184 — — 1,045,184 Short-term borrowings 221,000 221,000 — 221,000 — Long-term debt 101,547 97,710 — 97,710 — Accrued interest payable (included in other liabilities) 4,890 4,890 4,890 — 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 June 30, 2019 Derivatives: Interest rate lock commitments $ 1,001 $ 6 $ 6 $ — $ 6 $ — Forward sale commitments 7,798 (69 ) (69 ) — (69 ) — Off-balance sheet financial instruments: Commitments to extend credit 1,085,507 1,246 1,246 — 1,246 — Standby letters of credit and financial guarantees written 13,069 196 196 — 196 — 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, 2018 Financial assets: Cash and due from banks $ 80,569 $ 80,569 $ 80,569 $ — $ — Interest-bearing deposits in other banks 21,617 21,617 21,617 — — Investment securities 1,354,812 1,350,576 826 1,338,581 11,169 Loans held for sale 6,647 6,647 — 6,647 — Net loans and leases 4,030,450 3,938,380 — — 3,938,380 Accrued interest receivable 17,000 17,000 17,000 — — Financial liabilities: Deposits: Noninterest-bearing demand 1,436,967 1,436,967 1,436,967 — — Interest-bearing demand and savings and money market 2,402,268 2,402,268 2,402,268 — — Time 1,107,255 1,099,560 — — 1,099,560 Short-term borrowings 197,000 197,000 — 197,000 — Long-term debt 122,166 118,057 — 118,057 — Accrued interest payable (included in other liabilities) 5,051 5,051 5,051 — — |
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 June 30, 2019 and December 31, 2018 : Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant June 30, 2019 Available-for-sale securities: Debt securities: States and political subdivisions $ 154,504 $ — $ 143,099 $ 11,405 Corporate securities 30,797 — 30,797 — U.S. Treasury obligations and direct obligations of U.S Government agencies 29,615 — 29,615 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 755,373 — 755,373 — Commercial - U.S. Government agencies and sponsored entities 106,354 — 106,354 — Residential - Non-government agencies 40,517 — 40,517 — Commercial - Non-government agencies 137,583 — 137,583 — Total available-for-sale securities 1,254,743 — 1,243,338 11,405 Equity securities 1,034 1,034 — — Derivatives: Interest rate lock and forward sale commitments (63 ) — (63 ) — Total $ 1,255,714 $ 1,034 $ 1,243,275 $ 11,405 Fair Value at Reporting Date Using (dollars in thousands) Fair Value Quoted Significant Significant December 31, 2018 Available-for-sale securities: Debt securities: States and political subdivisions $ 173,674 $ — $ 162,505 $ 11,169 Corporate securities 54,849 — 54,849 — U.S. Treasury obligations and direct obligations of U.S Government agencies 32,574 — 32,574 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 717,052 — 717,052 — Commercial - U.S. Government agencies and sponsored entities 41,118 — 41,118 — Residential - Non-government agencies 51,483 — 51,483 — Commercial - Non-government agencies 134,728 — 134,728 — Total available-for-sale securities 1,205,478 — 1,194,309 11,169 Equity securities 826 826 — — Derivatives: Interest rate lock and forward sale commitments (84 ) — (84 ) — Total $ 1,206,220 $ 826 $ 1,194,225 $ 11,169 |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the six months ended June 30, 2019 and 2018 , 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, 2018 $ 11,169 Principal payments received (204 ) Unrealized net gain (loss) included in other comprehensive income 440 Balance at June 30, 2019 $ 11,405 Balance at December 31, 2017 $ 11,794 Principal payments received (189 ) Unrealized net gain (loss) included in other comprehensive income (271 ) Balance at June 30, 2018 $ 11,334 |
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 June 30, 2019 and December 31, 2018 : Fair Value Measurements Using (dollars in thousands) Fair Value Quoted Prices Significant Significant June 30, 2019 Other real estate (1) $ 276 $ — $ 276 $ — December 31, 2018 Other real estate (1) $ 414 $ — $ 414 $ — (1) 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) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment profits (losses) and assets | Segment profits and assets are provided in the following tables for the periods indicated. (dollars in thousands) Banking Treasury All Others Total Three Months Ended June 30, 2019 Net interest income $ 42,589 $ 2,789 $ — $ 45,378 Inter-segment net interest income (expense) 6,602 (2,688 ) (3,914 ) — Credit (provision) for loan and lease losses (1,404 ) — — (1,404 ) Other operating income: Mortgage banking income 957 — 644 1,601 Service charges on deposit accounts 2,041 — — 2,041 Other service charges and fees 1,584 — 2,107 3,691 Income from fiduciary activities 1,129 — — 1,129 Equity in earnings of unconsolidated subsidiaries 71 — — 71 Fees on foreign exchange 25 193 — 218 Income from bank-owned life insurance — 914 — 914 Loan placement fees 107 — — 107 Other 153 — 169 322 Other operating income 6,067 1,107 2,920 10,094 Other operating expense (15,903 ) (399 ) (19,805 ) (36,107 ) Administrative and overhead expense allocation (17,061 ) (211 ) 17,272 — Income before taxes 20,890 598 (3,527 ) 17,961 Income tax (expense) benefit (5,142 ) (154 ) 869 (4,427 ) Net income (loss) $ 15,748 $ 444 $ (2,658 ) $ 13,534 (dollars in thousands) Banking Treasury All Others Total Three Months Ended June 30, 2018 Net interest income $ 37,281 $ 5,391 $ — $ 42,672 Inter-segment net interest income (expense) 6,915 (4,941 ) (1,974 ) — Credit (provision) for loan and lease losses (532 ) — — (532 ) Other operating income: Mortgage banking income 923 — 852 1,775 Service charges on deposit accounts 1,977 — — 1,977 Other service charges and fees 1,287 8 2,082 3,377 Income from fiduciary activities 1,017 — — 1,017 Equity in earnings of unconsolidated subsidiaries 37 — — 37 Fees on foreign exchange 29 248 277 Income from bank-owned life insurance — 501 — 501 Loan placement fees 220 — — 220 Other 200 2 247 449 Other operating income 5,690 759 3,181 9,630 Other operating expense (15,777 ) (358 ) (17,476 ) (33,611 ) Administrative and overhead expense allocation (15,167 ) (223 ) 15,390 — Income before taxes 18,410 628 (879 ) 18,159 Income tax (expense) benefit (3,898 ) (133 ) 96 (3,935 ) Net income (loss) $ 14,512 $ 495 $ (783 ) $ 14,224 (dollars in thousands) Banking Treasury All Others Total Six Months Ended June 30, 2019 Net interest income $ 84,269 $ 6,222 $ — $ 90,491 Inter-segment net interest income (expense) 13,292 (5,294 ) (7,998 ) — Credit (provision) for loan and lease losses (2,687 ) — — (2,687 ) Other operating income: Mortgage banking income 1,607 — 1,418 3,025 Service charges on deposit accounts 4,122 — — 4,122 Other service charges and fees 2,660 — 4,095 6,755 Income from fiduciary activities 2,094 — — 2,094 Equity in earnings of unconsolidated subsidiaries 79 — — 79 Fees on foreign exchange 47 322 — 369 Income from bank-owned life insurance — 1,866 — 1,866 Loan placement fees 256 — — 256 Other 299 2,554 348 3,201 Other operating income 11,164 4,742 5,861 21,767 Other operating expense (31,807 ) (745 ) (37,903 ) (70,455 ) Administrative and overhead expense allocation (32,458 ) (420 ) 32,878 — Income before taxes 41,773 4,505 (7,162 ) 39,116 Income tax (expense) benefit (10,194 ) (1,099 ) 1,748 (9,545 ) Net income (loss) $ 31,579 $ 3,406 $ (5,414 ) $ 29,571 (dollars in thousands) Banking Treasury All Others Total Six Months Ended June 30, 2018 Net interest income $ 73,423 $ 11,571 $ — $ 84,994 Inter-segment net interest income (expense) 13,836 (10,390 ) (3,446 ) — Credit (provision) for loan and lease losses (321 ) — — (321 ) Other operating income: Mortgage banking income 1,916 — 1,706 3,622 Service charges on deposit accounts 3,980 — — 3,980 Other service charges and fees 2,430 14 3,967 6,411 Income from fiduciary activities 1,973 — — 1,973 Equity in earnings of unconsolidated subsidiaries 80 — — 80 Fees on foreign exchange 53 435 488 Income from bank-owned life insurance — 819 — 819 Loan placement fees 417 — — 417 Other 355 2 437 794 Other operating income 11,204 1,270 6,110 18,584 Other operating expense (31,702 ) (743 ) (34,570 ) (67,015 ) Administrative and overhead expense allocation (30,113 ) (446 ) 30,559 — Income before taxes 36,327 1,262 (1,347 ) 36,242 Income tax (expense) benefit (7,579 ) (263 ) 101 (7,741 ) Net income $ 28,748 $ 999 $ (1,246 ) $ 28,501 (dollars in thousands) Banking Treasury All Others Total June 30, 2019 Investment securities $ — $ 1,255,777 $ — $ 1,255,777 Loans and leases (including loans held for sale) 4,253,961 — — 4,253,961 Other 20,833 251,213 138,222 410,268 Total assets $ 4,274,794 $ 1,506,990 $ 138,222 $ 5,920,006 (dollars in thousands) Banking Treasury All Others Total December 31, 2018 Investment securities $ — $ 1,354,812 $ — $ 1,354,812 Loans and leases (including loans held for sale) 4,085,013 — — 4,085,013 Other 36,905 256,652 73,644 367,201 Total assets $ 4,121,918 $ 1,611,464 $ 73,644 $ 5,807,026 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2015 |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Equity Method Investments | $ 0.2 | $ 0.2 | |
Proportional Amortization Investments | 15.5 | 11.6 | |
Cost Method Investments | $ 1.6 | $ 2.2 | |
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 | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right of use lease asset | $ 53,678 | $ 0 | ||
Lease liability | 53,829 | 0 | ||
Fair value | $ 0 | $ 144,272 | ||
Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right of use lease asset | $ 55,900 | |||
Lease liability | 55,900 | |||
Accounting Standards Update 2017-12 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fair value | 144,300 | |||
Available-for-sale Securities | Accounting Standards Update 2017-12 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Impact of the adoption of new accounting standards | [1] | (4,200) | ||
Deferred Tax Asset | Accounting Standards Update 2017-12 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Impact of the adoption of new accounting standards | [1] | (1,100) | ||
Accum. Other Comp. Income (Loss) | Accounting Standards Update 2017-12 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Impact of the adoption of new accounting standards | [1] | $ (3,100) | ||
[1] | (1) Represents the impact of the adoption of Accounting Standards Update ("ASU") ASU 2017-12. See Note 2 to the consolidated financial statements for additional information. |
INVESTMENT SECURITIES (Availabl
INVESTMENT SECURITIES (Available for Sale and Held to Maturity Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held-to-maturity: | ||
Amortized Cost | $ 0 | $ 148,508 |
Gross unrealized gains | 19 | |
Gross unrealized losses | (4,255) | |
Fair value | 0 | 144,272 |
Available for Sale | ||
Amortized cost | 1,250,321 | 1,227,931 |
Gross unrealized gains | 10,943 | 2,754 |
Gross unrealized losses | (6,521) | (25,207) |
Fair value | 1,254,743 | 1,205,478 |
Equity securities | ||
Fair Value | 1,034 | 826 |
Residential - U.S. Government-sponsored entities | ||
Held-to-maturity: | ||
Amortized Cost | 83,436 | |
Gross unrealized gains | 19 | |
Gross unrealized losses | (3,174) | |
Fair value | 80,281 | |
Available for Sale | ||
Amortized cost | 758,008 | 736,175 |
Gross unrealized gains | 3,309 | 369 |
Gross unrealized losses | (5,944) | (19,492) |
Fair value | 755,373 | 717,052 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale | ||
Amortized cost | 105,347 | 53,014 |
Gross unrealized gains | 1,136 | 0 |
Gross unrealized losses | (129) | (1,531) |
Fair value | 106,354 | 51,483 |
Commercial - U.S. Government-sponsored entities | ||
Held-to-maturity: | ||
Amortized Cost | 65,072 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | (1,081) | |
Fair value | 63,991 | |
States and political subdivisions | ||
Available for Sale | ||
Amortized cost | 152,303 | 174,114 |
Gross unrealized gains | 2,308 | 1,035 |
Gross unrealized losses | (107) | (1,475) |
Fair value | 154,504 | 173,674 |
Corporate securities | ||
Available for Sale | ||
Amortized cost | 30,594 | 55,259 |
Gross unrealized gains | 231 | 0 |
Gross unrealized losses | (28) | (410) |
Fair value | 30,797 | 54,849 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Available for Sale | ||
Amortized cost | 29,869 | 33,257 |
Gross unrealized gains | 2 | 0 |
Gross unrealized losses | (256) | (683) |
Fair value | 29,615 | 32,574 |
Residential - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 39,429 | 41,245 |
Gross unrealized gains | 1,088 | 337 |
Gross unrealized losses | 0 | (464) |
Fair value | 40,517 | 41,118 |
Commercial - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 134,771 | 134,867 |
Gross unrealized gains | 2,869 | 1,013 |
Gross unrealized losses | (57) | (1,152) |
Fair value | 137,583 | 134,728 |
Equity securities | ||
Equity securities | ||
Amortized Cost | 872 | 826 |
Gross Unrealized Gains | 162 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1,034 | $ 826 |
INVESTMENT SECURITIES (Amortize
INVESTMENT SECURITIES (Amortized Cost and Estimated Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 36,539 | |
Due after one year through five years | 82,075 | |
Due after five years through ten years | 49,903 | |
Due after ten years | 44,249 | |
Total | 1,250,321 | |
Available for Sale, Estimated Fair Value | ||
Due in one year or less | 36,603 | |
Due after one year through five years | 82,723 | |
Due after five years through ten years | 50,805 | |
Due after ten years | 44,785 | |
Available-for-sale debt securities, at fair value | 1,254,743 | $ 1,205,478 |
Equity securities, at fair value | 1,034 | 826 |
Residential - U.S. Government-sponsored entities | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 758,008 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 755,373 | |
Available-for-sale debt securities, at fair value | 755,373 | 717,052 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 105,347 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 106,354 | |
Available-for-sale debt securities, at fair value | 106,354 | 51,483 |
Residential - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 39,429 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 40,517 | |
Available-for-sale debt securities, at fair value | 40,517 | 41,118 |
Commercial - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 134,771 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 137,583 | |
Available-for-sale debt securities, at fair value | 137,583 | 134,728 |
Equity securities | ||
Available for Sale, Estimated Fair Value | ||
Equity securities, at amortized cost | 872 | 826 |
Equity securities, at fair value | $ 1,034 | $ 826 |
INVESTMENT SECURITIES (Narrativ
INVESTMENT SECURITIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($)securityshares | Mar. 31, 2019USD ($)shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)securityshares | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)security | |
Class of Stock [Line Items] | |||||||
Debt Securities, Held-to-maturity | $ 0 | $ 0 | $ 148,508 | ||||
Fair value | 0 | 0 | 144,272 | ||||
Proceeds from sale of MasterCard stock | 2,555 | $ 0 | |||||
Available-for-sale securities, sold at par | 0 | $ 0 | 0 | $ 0 | |||
Investment securities pledged as collateral | $ 753,300 | $ 753,300 | $ 980,200 | ||||
Number of investment securities in an unrealized loss position | security | 134 | 134 | 336 | ||||
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 | ||||||
Proceeds from sale of MasterCard stock | $ 2,600 | ||||||
Accounting Standards Update 2017-12 [Member] | |||||||
Class of Stock [Line Items] | |||||||
Debt Securities, Held-to-maturity | $ 148,500 | ||||||
Fair value | $ 144,300 |
INVESTMENT SECURITIES (Investme
INVESTMENT SECURITIES (Investment Securities at an Unrealized Loss Position) (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of investment securities in an unrealized loss position | security | 134 | 336 |
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | $ 37,685 | $ 254,634 |
Less than 12 months, Unrealized Losses | (256) | (2,729) |
12 months or longer, Fair Value | 500,663 | 896,550 |
12 months or longer, Unrealized Losses | (6,265) | (26,733) |
Total, Fair Value | 538,348 | 1,151,184 |
Total, Unrealized Losses | (6,521) | (29,462) |
States and political subdivisions | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 2,656 | 38,099 |
Less than 12 months, Unrealized Losses | (5) | (157) |
12 months or longer, Fair Value | 10,456 | 49,505 |
12 months or longer, Unrealized Losses | (102) | (1,318) |
Total, Fair Value | 13,112 | 87,604 |
Total, Unrealized Losses | (107) | (1,475) |
Corporate securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 0 | 49,729 |
Less than 12 months, Unrealized Losses | 0 | (250) |
12 months or longer, Fair Value | 5,200 | 5,120 |
12 months or longer, Unrealized Losses | (28) | (160) |
Total, Fair Value | 5,200 | 54,849 |
Total, Unrealized Losses | (28) | (410) |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 0 | 30,029 |
Less than 12 months, Unrealized Losses | 0 | (613) |
12 months or longer, Fair Value | 27,943 | 2,545 |
12 months or longer, Unrealized Losses | (256) | (70) |
Total, Fair Value | 27,943 | 32,574 |
Total, Unrealized Losses | (256) | (683) |
Residential - U.S. Government-sponsored entities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 18,320 | 88,957 |
Less than 12 months, Unrealized Losses | (194) | (1,229) |
12 months or longer, Fair Value | 426,811 | 666,685 |
12 months or longer, Unrealized Losses | (5,750) | (21,437) |
Total, Fair Value | 445,131 | 755,642 |
Total, Unrealized Losses | (5,944) | (22,666) |
Residential - Non-government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 0 | 0 |
Less than 12 months, Unrealized Losses | 0 | 0 |
12 months or longer, Fair Value | 0 | 24,515 |
12 months or longer, Unrealized Losses | 0 | (464) |
Total, Fair Value | 0 | 24,515 |
Total, Unrealized Losses | 0 | (464) |
Commercial - U.S. Government-sponsored entities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 0 | 13,973 |
Less than 12 months, Unrealized Losses | 0 | (247) |
12 months or longer, Fair Value | 30,253 | 101,500 |
12 months or longer, Unrealized Losses | (129) | (2,365) |
Total, Fair Value | 30,253 | 115,473 |
Total, Unrealized Losses | (129) | (2,612) |
Commercial - Non-government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 16,709 | 33,847 |
Less than 12 months, Unrealized Losses | (57) | (233) |
12 months or longer, Fair Value | 0 | 46,680 |
12 months or longer, Unrealized Losses | 0 | (919) |
Total, Fair Value | 16,709 | 80,527 |
Total, Unrealized Losses | $ (57) | $ (1,152) |
LOANS AND LEASES (Loans and Lea
LOANS AND LEASES (Loans and Leases) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($)contract | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)loancontract | Jun. 30, 2018USD ($)loancontract | Dec. 31, 2018USD ($) | |
LOANS AND LEASES | ||||||
Impaired loans, allowance allocated | $ 0 | $ 0 | $ 0 | |||
Number of loans foreclosed | loan | 0 | 1 | ||||
Loans foreclosed | $ 40,000 | $ 40,000 | ||||
Loans and leases, gross | 4,244,509,000 | $ 4,244,509,000 | 4,075,873,000 | |||
Net deferred costs | 2,604,000 | 2,604,000 | 2,493,000 | |||
Total loans and leases, net of deferred costs | 4,247,113,000 | $ 4,247,113,000 | 4,078,366,000 | |||
Number of loans transferred to held-for-sale | loan | 0 | 0 | ||||
Number of loans sold | loan | 0 | 0 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 0 | $ 0 | 0 | |||
Commercial, Financial & Agricultural | ||||||
LOANS AND LEASES | ||||||
Number of TDRs included in nonperforming assets | contract | 0 | 0 | 0 | 0 | ||
Financing Receivable, Commitments, Number of Contracts | contract | 0 | 0 | 0 | 0 | ||
Loans and leases, gross | $ 590,071,000 | $ 590,071,000 | 581,177,000 | |||
Net deferred costs | 412,000 | 412,000 | 483,000 | |||
Total loans and leases, net of deferred costs | 590,483,000 | 590,483,000 | 581,660,000 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | |||
Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 72,835,000 | 72,835,000 | 67,269,000 | |||
Net deferred costs | (408,000) | (408,000) | (342,000) | |||
Total loans and leases, net of deferred costs | 72,427,000 | 72,427,000 | 66,927,000 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | |||
Real Estate | Home Equity | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 472,918,000 | 472,918,000 | 468,966,000 | |||
Net deferred costs | 233,000 | 233,000 | 0 | |||
Total loans and leases, net of deferred costs | 473,151,000 | 473,151,000 | 468,966,000 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | |||
Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 1,513,104,000 | 1,513,104,000 | 1,424,384,000 | |||
Net deferred costs | 3,832,000 | 3,832,000 | 3,821,000 | |||
Total loans and leases, net of deferred costs | 1,516,936,000 | 1,516,936,000 | 1,428,205,000 | |||
Loans in the process of foreclosure | 500,000 | 500,000 | 700,000 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | |||
Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 1,094,256,000 | 1,094,256,000 | 1,041,685,000 | |||
Net deferred costs | (1,398,000) | (1,398,000) | (1,407,000) | |||
Total loans and leases, net of deferred costs | 1,092,858,000 | 1,092,858,000 | 1,040,278,000 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | |||
Consumer | ||||||
LOANS AND LEASES | ||||||
Payments to acquire loans receivable | 31,000,000 | $ 18,300,000 | 58,600,000 | |||
Premium over loan outstanding balance | 100,000 | |||||
Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 501,273,000 | 501,273,000 | 492,268,000 | |||
Net deferred costs | (67,000) | (67,000) | (62,000) | |||
Total loans and leases, net of deferred costs | 501,206,000 | 501,206,000 | 492,206,000 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | |||
Consumer | Uncollateralized | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 58,500,000 | |||||
Leases | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 52,000 | 52,000 | 124,000 | |||
Net deferred costs | 0 | 0 | 0 | |||
Total loans and leases, net of deferred costs | 52,000 | 52,000 | 124,000 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | |||
Special Mention | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 30,705,000 | 30,705,000 | 18,373,000 | |||
Special Mention | Commercial, Financial & Agricultural | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 3,994,000 | 3,994,000 | 7,961,000 | |||
Special Mention | Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | 0 | |||
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 | 26,711,000 | 26,711,000 | 10,412,000 | |||
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 | 26,354,000 | 26,354,000 | 24,998,000 | |||
Substandard | Commercial, Financial & Agricultural | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 11,813,000 | 11,813,000 | 20,510,000 | |||
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 | 244,000 | 244,000 | 572,000 | |||
Substandard | Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 828,000 | 828,000 | 2,144,000 | |||
Substandard | Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 13,291,000 | 13,291,000 | 1,692,000 | |||
Substandard | Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 178,000 | 178,000 | 80,000 | |||
Substandard | Leases | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | 0 | |||
Loss | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 88,000 | 88,000 | 158,000 | |||
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 | 88,000 | 88,000 | 158,000 | |||
Loss | Leases | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 0 | 0 | 0 | |||
Pass | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 4,187,362,000 | 4,187,362,000 | 4,032,344,000 | |||
Pass | Commercial, Financial & Agricultural | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 574,264,000 | 574,264,000 | 552,706,000 | |||
Pass | Real Estate | Construction | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 72,835,000 | 72,835,000 | 67,269,000 | |||
Pass | Real Estate | Home Equity | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 472,674,000 | 472,674,000 | 468,394,000 | |||
Pass | Real Estate | Residential Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 1,512,276,000 | 1,512,276,000 | 1,422,240,000 | |||
Pass | Real Estate | Commercial Mortgage | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 1,054,254,000 | 1,054,254,000 | 1,029,581,000 | |||
Pass | Consumer | Consumer | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | 501,007,000 | 501,007,000 | 492,030,000 | |||
Pass | Leases | ||||||
LOANS AND LEASES | ||||||
Loans and leases, gross | $ 52,000 | $ 52,000 | $ 124,000 |
LOANS AND LEASES (Allowance for
LOANS AND LEASES (Allowance for Loan and Lease Losses) (Details) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | $ 0 | $ 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 48,267,000 | 47,916,000 | ||||
Total ending balance | 48,267,000 | $ 47,267,000 | 47,916,000 | $ 48,181,000 | $ 49,217,000 | $ 50,001,000 |
Loans and leases : | ||||||
Individually evaluated for impairment | 10,088,000 | 15,191,000 | ||||
Collectively evaluated for impairment | 4,234,421,000 | 4,060,682,000 | ||||
Loans and leases | 4,244,509,000 | 4,075,873,000 | ||||
Net deferred costs | 2,604,000 | 2,493,000 | ||||
Total loans and leases, net of deferred costs | 4,247,113,000 | 4,078,366,000 | ||||
Commercial, Financial & Agricultural | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 8,109,000 | 8,027,000 | ||||
Total ending balance | 8,109,000 | 7,847,000 | 8,027,000 | 7,525,000 | 7,476,000 | 7,594,000 |
Loans and leases : | ||||||
Individually evaluated for impairment | 178,000 | 220,000 | ||||
Collectively evaluated for impairment | 589,893,000 | 580,957,000 | ||||
Loans and leases | 590,071,000 | 581,177,000 | ||||
Net deferred costs | 412,000 | 483,000 | ||||
Total loans and leases, net of deferred costs | 590,483,000 | 581,660,000 | ||||
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 | 52,000 | 124,000 | ||||
Loans and leases | 52,000 | 124,000 | ||||
Net deferred costs | 0 | 0 | ||||
Total loans and leases, net of deferred costs | 52,000 | 124,000 | ||||
Construction | Real Estate | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 1,313,000 | 1,202,000 | ||||
Total ending balance | 1,313,000 | 1,299,000 | 1,202,000 | 1,811,000 | 1,714,000 | 1,835,000 |
Loans and leases : | ||||||
Individually evaluated for impairment | 0 | 2,273,000 | ||||
Collectively evaluated for impairment | 72,835,000 | 64,996,000 | ||||
Loans and leases | 72,835,000 | 67,269,000 | ||||
Net deferred costs | (408,000) | (342,000) | ||||
Total loans and leases, net of deferred costs | 72,427,000 | 66,927,000 | ||||
Residential Mortgage | Real Estate | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 13,367,000 | 14,349,000 | ||||
Total ending balance | 13,367,000 | 12,851,000 | 14,349,000 | 14,252,000 | 14,207,000 | 14,328,000 |
Loans and leases : | ||||||
Individually evaluated for impairment | 7,569,000 | 10,075,000 | ||||
Collectively evaluated for impairment | 1,505,535,000 | 1,414,309,000 | ||||
Loans and leases | 1,513,104,000 | 1,424,384,000 | ||||
Net deferred costs | 3,832,000 | 3,821,000 | ||||
Total loans and leases, net of deferred costs | 1,516,936,000 | 1,428,205,000 | ||||
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 | 4,313,000 | 3,788,000 | ||||
Total ending balance | 4,313,000 | 4,278,000 | 3,788,000 | 3,168,000 | 3,328,000 | 3,317,000 |
Loans and leases : | ||||||
Individually evaluated for impairment | 244,000 | 275,000 | ||||
Collectively evaluated for impairment | 472,674,000 | 468,691,000 | ||||
Loans and leases | 472,918,000 | 468,966,000 | ||||
Net deferred costs | 233,000 | 0 | ||||
Total loans and leases, net of deferred costs | 473,151,000 | 468,966,000 | ||||
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 | 11,668,000 | 13,358,000 | ||||
Total ending balance | 11,668,000 | 12,036,000 | 13,358,000 | 15,094,000 | 16,186,000 | 16,801,000 |
Loans and leases : | ||||||
Individually evaluated for impairment | 2,097,000 | 2,348,000 | ||||
Collectively evaluated for impairment | 1,092,159,000 | 1,039,337,000 | ||||
Loans and leases | 1,094,256,000 | 1,041,685,000 | ||||
Net deferred costs | (1,398,000) | (1,407,000) | ||||
Total loans and leases, net of deferred costs | 1,092,858,000 | 1,040,278,000 | ||||
Consumer | Consumer | ||||||
Allowance: | ||||||
Ending balance attributable to loans : Individually evaluated for impairment | 0 | 0 | ||||
Ending balance attributable to loans : Collectively evaluated for impairment | 9,497,000 | 7,192,000 | ||||
Total ending balance | 9,497,000 | $ 8,956,000 | 7,192,000 | $ 6,331,000 | $ 6,306,000 | $ 6,126,000 |
Loans and leases : | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 501,273,000 | 492,268,000 | ||||
Loans and leases | 501,273,000 | 492,268,000 | ||||
Net deferred costs | (67,000) | (62,000) | ||||
Total loans and leases, net of deferred costs | $ 501,206,000 | $ 492,206,000 |
LOANS AND LEASES (Impaired Loan
LOANS AND LEASES (Impaired Loans) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Impaired Loans | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 0 | $ 0 | $ 0 | ||
Unpaid Principal Balance | |||||
Total | 10,935,000 | 10,935,000 | 17,048,000 | ||
Recorded Investment | |||||
Total | 10,088,000 | 10,088,000 | 15,191,000 | ||
Allowance Allocated | |||||
Impaired loans, allowance allocated | 0 | 0 | 0 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 12,594,000 | $ 20,058,000 | 13,993,000 | $ 20,687,000 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 677,000 | 226,000 | 839,000 | 429,000 | |
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 | 288,000 | 288,000 | 330,000 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 178,000 | 178,000 | 220,000 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 185,000 | 628,000 | 199,000 | 540,000 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 2,000 | 3,000 | 5,000 | 5,000 | |
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 | 0 | 0 | 3,076,000 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 0 | 0 | 2,273,000 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 1,434,000 | 2,464,000 | 1,890,000 | 2,517,000 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 32,000 | 28,000 | 62,000 | 54,000 | |
Residential 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 | 8,306,000 | 8,306,000 | 11,019,000 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 7,569,000 | 7,569,000 | 10,075,000 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 8,583,000 | 12,832,000 | 9,289,000 | 13,358,000 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 607,000 | 159,000 | 713,000 | 296,000 | |
Loans in the process of foreclosure | 500,000 | 500,000 | 700,000 | ||
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 | 244,000 | 244,000 | 275,000 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 244,000 | 244,000 | 275,000 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 254,000 | 518,000 | 393,000 | 546,000 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | 13,000 | 0 | 13,000 | 0 | |
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 | 2,097,000 | 2,097,000 | 2,348,000 | ||
Recorded Investment | |||||
Impaired loans with no related allowance recorded | 2,097,000 | 2,097,000 | $ 2,348,000 | ||
Average recorded investment on impaired loans | |||||
Average Recorded Investment | 2,138,000 | 3,616,000 | 2,222,000 | 3,726,000 | |
Interest income recognized on impaired loans | |||||
Interest Income Recognized | $ 23,000 | $ 36,000 | $ 46,000 | $ 74,000 |
LOANS AND LEASES (Aging of Reco
LOANS AND LEASES (Aging of Recorded Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | $ 982 | $ 2,323 |
Total Past Due and Nonaccrual | 7,606 | 12,241 |
Loans and Leases Not Past Due | 4,239,507 | 4,066,125 |
Total loans and leases, net of deferred costs | 4,247,113 | 4,078,366 |
Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 1,573 | 1,510 |
Loans and Leases Not Past Due | 588,910 | 580,150 |
Total loans and leases, net of deferred costs | 590,483 | 581,660 |
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 | 52 | 124 |
Total loans and leases, net of deferred costs | 52 | 124 |
Accruing Loans 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 4,176 | 8,087 |
Accruing Loans 30 - 59 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,104 | 1,348 |
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 | 2,181 | 1,295 |
Accruing Loans 60 - 89 Days Past Due | Commercial, Financial & Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 469 | 162 |
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 | 267 | 536 |
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 | 738 | 2,048 |
Total Past Due and Nonaccrual | 1,802 | 6,171 |
Loans and Leases Not Past Due | 1,515,134 | 1,422,034 |
Total loans and leases, net of deferred costs | 1,516,936 | 1,428,205 |
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 | 89 | 3,966 |
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 | 975 | 157 |
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 | 0 |
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 | 72,427 | 66,927 |
Total loans and leases, net of deferred costs | 72,427 | 66,927 |
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 | 244 | 275 |
Total Past Due and Nonaccrual | 1,214 | 1,110 |
Loans and Leases Not Past Due | 471,937 | 467,856 |
Total loans and leases, net of deferred costs | 473,151 | 468,966 |
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 | 970 | 433 |
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 | 104 |
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 | 298 |
Commercial Mortgage | 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 | 1,092,858 | 1,040,278 |
Total loans and leases, net of deferred costs | 1,092,858 | 1,040,278 |
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 | 0 | 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 | 3,017 | 3,450 |
Loans and Leases Not Past Due | 498,189 | 488,756 |
Total loans and leases, net of deferred costs | 501,206 | 492,206 |
Consumer | Accruing Loans 30 - 59 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 2,013 | 2,340 |
Consumer | Accruing Loans 60 - 89 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 737 | 872 |
Consumer | Accruing Loans Greater Than 90 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | $ 267 | $ 238 |
LOANS AND LEASES (Modifications
LOANS AND LEASES (Modifications) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)loancontract | Jun. 30, 2018contract | Jun. 30, 2019USD ($)loancontract | Jun. 30, 2018contract | Dec. 31, 2018USD ($) | |
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, Past Due | $ 267 | $ 267 | $ 536 | ||
Commercial, Financial & Agricultural | |||||
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | contract | 0 | 0 | 0 | 0 | |
Commercial, Financial & Agricultural | Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Past Due | $ 0 | $ 0 | 0 | ||
Nonperforming Financial Instruments | |||||
Information related to loans modified in a TDR | |||||
Amount of TDRs still accruing interest | 9,100 | $ 9,100 | $ 12,900 | ||
Holding period limit for accruing interest on TDRs | 90 days | 90 days | |||
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 | $ 400 | |||
Residential Mortgage | Real Estate | Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Past Due | 0 | 0 | $ 0 | ||
Commercial Mortgage | Real Estate | Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Financing Receivable, Past Due | $ 0 | $ 0 | $ 0 |
LOANS AND LEASES (Class and Cre
LOANS AND LEASES (Class and Credit Indicator) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | $ 4,244,509 | $ 4,075,873 |
Net deferred costs | 2,604 | 2,493 |
Total loans and leases, net of deferred costs | 4,247,113 | 4,078,366 |
Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 590,071 | 581,177 |
Net deferred costs | 412 | 483 |
Total loans and leases, net of deferred costs | 590,483 | 581,660 |
Leases | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 52 | 124 |
Net deferred costs | 0 | 0 |
Total loans and leases, net of deferred costs | 52 | 124 |
Pass | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 4,187,362 | 4,032,344 |
Pass | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 574,264 | 552,706 |
Pass | Leases | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 52 | 124 |
Special Mention | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 30,705 | 18,373 |
Special Mention | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 3,994 | 7,961 |
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 | 26,354 | 24,998 |
Substandard | Commercial, Financial & Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 11,813 | 20,510 |
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 | 88 | 158 |
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 | 72,835 | 67,269 |
Net deferred costs | (408) | (342) |
Total loans and leases, net of deferred costs | 72,427 | 66,927 |
Construction | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 72,835 | 67,269 |
Construction | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
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 | 1,513,104 | 1,424,384 |
Net deferred costs | 3,832 | 3,821 |
Total loans and leases, net of deferred costs | 1,516,936 | 1,428,205 |
Residential Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 1,512,276 | 1,422,240 |
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 | 828 | 2,144 |
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 | 472,918 | 468,966 |
Net deferred costs | 233 | 0 |
Total loans and leases, net of deferred costs | 473,151 | 468,966 |
Home Equity | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 472,674 | 468,394 |
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 | 244 | 572 |
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 | 1,094,256 | 1,041,685 |
Net deferred costs | (1,398) | (1,407) |
Total loans and leases, net of deferred costs | 1,092,858 | 1,040,278 |
Commercial Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 1,054,254 | 1,029,581 |
Commercial Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 26,711 | 10,412 |
Commercial Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 13,291 | 1,692 |
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 | 501,273 | 492,268 |
Net deferred costs | (67) | (62) |
Total loans and leases, net of deferred costs | 501,206 | 492,206 |
Consumer | Pass | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 501,007 | 492,030 |
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 | 178 | 80 |
Consumer | Loss | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | $ 88 | $ 158 |
ALLOWANCE FOR LOAN AND LEASE _3
ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in the allowance | ||||
Beginning balance | $ 47,267 | $ 49,217 | $ 47,916 | $ 50,001 |
Provision (credit) for loan and lease losses | 1,404 | 532 | 2,687 | 321 |
Subtotal | 48,671 | 49,749 | 50,603 | 50,322 |
Charge-offs | 2,298 | 2,471 | 5,012 | 4,902 |
Recoveries | 1,894 | 903 | 2,676 | 2,761 |
Net charge-offs (recoveries) | 404 | 1,568 | 2,336 | 2,141 |
Ending balance | 48,267 | 48,181 | 48,267 | 48,181 |
Commercial, Financial & Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 7,847 | 7,476 | 8,027 | 7,594 |
Provision (credit) for loan and lease losses | 786 | 496 | 836 | 732 |
Subtotal | 8,633 | 7,972 | 8,863 | 8,326 |
Charge-offs | 839 | 742 | 1,302 | 1,240 |
Recoveries | 315 | 295 | 548 | 439 |
Net charge-offs (recoveries) | 524 | 447 | 754 | 801 |
Ending balance | 8,109 | 7,525 | 8,109 | 7,525 |
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 | 1,299 | 1,714 | 1,202 | 1,835 |
Provision (credit) for loan and lease losses | (578) | 91 | (487) | (1,223) |
Subtotal | 721 | 1,805 | 715 | 612 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 592 | 6 | 598 | 1,199 |
Net charge-offs (recoveries) | (592) | (6) | (598) | (1,199) |
Ending balance | 1,313 | 1,811 | 1,313 | 1,811 |
Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 12,851 | 14,207 | 14,349 | 14,328 |
Provision (credit) for loan and lease losses | 144 | 24 | (1,376) | (123) |
Subtotal | 12,995 | 14,231 | 12,973 | 14,205 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 372 | 21 | 394 | 47 |
Net charge-offs (recoveries) | (372) | (21) | (394) | (47) |
Ending balance | 13,367 | 14,252 | 13,367 | 14,252 |
Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 4,278 | 3,328 | 3,788 | 3,317 |
Provision (credit) for loan and lease losses | 26 | (169) | 507 | (161) |
Subtotal | 4,304 | 3,159 | 4,295 | 3,156 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 9 | 9 | 18 | 12 |
Net charge-offs (recoveries) | (9) | (9) | (18) | (12) |
Ending balance | 4,313 | 3,168 | 4,313 | 3,168 |
Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 12,036 | 16,186 | 13,358 | 16,801 |
Provision (credit) for loan and lease losses | (393) | (1,121) | (1,715) | (1,751) |
Subtotal | 11,643 | 15,065 | 11,643 | 15,050 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 25 | 29 | 25 | 44 |
Net charge-offs (recoveries) | (25) | (29) | (25) | (44) |
Ending balance | 11,668 | 15,094 | 11,668 | 15,094 |
Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | 8,956 | 6,306 | 7,192 | 6,126 |
Provision (credit) for loan and lease losses | 1,419 | 1,211 | 4,922 | 2,847 |
Subtotal | 10,375 | 7,517 | 12,114 | 8,973 |
Charge-offs | 1,459 | 1,729 | 3,710 | 3,662 |
Recoveries | 581 | 543 | 1,093 | 1,020 |
Net charge-offs (recoveries) | 878 | 1,186 | 2,617 | 2,642 |
Ending balance | $ 9,497 | $ 6,331 | $ 9,497 | $ 6,331 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||||
2019 (remainder) | $ 4,018 | $ 4,018 | |||
2020 | 7,866 | 7,866 | |||
2021 | 94 | 94 | |||
2022 | 10 | 10 | |||
2023 | 10 | 10 | |||
2024 | 26 | 26 | |||
Thereafter | 49 | 49 | |||
Total unfunded commitments | 12,073 | 12,073 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Investments in Low Income Housing Tax Credit Partnerships | 15,486 | 15,486 | $ 11,603 | ||
Investments in common securities of statutory trusts | 1,547 | 1,547 | 2,169 | ||
Investments in affiliates | 160 | 160 | 182 | ||
Other | 54 | 54 | 54 | ||
Investment in unconsolidated subsidiaries | 17,247 | 17,247 | 14,008 | ||
Amortization expense in pretax income | 259 | $ 113 | 517 | $ 227 | |
Income tax credits and adjustments | 338 | $ 153 | 615 | $ 305 | |
Affordable Housing Program Obligation | $ 12,100 | $ 12,100 | $ 8,300 |
CORE DEPOSIT PREMIUM AND MORT_3
CORE DEPOSIT PREMIUM AND MORTGAGE SERVICING RIGHTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | |
OTHER INTANGIBLE ASSETS | |||||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | $ 1,586 | $ 1,931 | |||||
Changes in other intangible assets | |||||||
Balance, beginning of period | 15,596 | 17,849 | |||||
Additions | 742 | 807 | |||||
Amortization | (1,072) | (2,231) | |||||
Balance, end of period | $ 15,266 | $ 16,425 | 15,266 | 16,425 | |||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||||
Gross Carrying Value | $ 111,397 | $ 110,655 | |||||
Accumulated Amortization | (96,131) | (95,059) | |||||
Other intangible assets | 15,266 | 16,425 | 15,266 | 17,849 | 15,266 | 15,596 | $ 16,425 |
Estimated Amortization Expense | |||||||
Other intangible assets | 15,266 | 16,425 | 15,266 | 17,849 | 15,266 | 15,596 | 16,425 |
Core Deposit Premium | |||||||
Changes in other intangible assets | |||||||
Balance, beginning of period | 0 | 2,006 | |||||
Additions | 0 | 0 | |||||
Amortization | 0 | (1,337) | |||||
Balance, end of period | 0 | 669 | 0 | 669 | |||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||||
Gross Carrying Value | 44,642 | 44,642 | |||||
Accumulated Amortization | (44,642) | (44,642) | |||||
Other intangible assets | 0 | 669 | 0 | 2,006 | 0 | 0 | 669 |
Estimated Amortization Expense | |||||||
Other intangible assets | 0 | 669 | 0 | 2,006 | 0 | 0 | 669 |
Mortgage Servicing Rights | |||||||
OTHER INTANGIBLE ASSETS | |||||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | 500 | 400 | 700 | 800 | |||
Changes in other intangible assets | |||||||
Balance, beginning of period | 15,596 | 15,843 | |||||
Additions | 742 | 807 | |||||
Amortization | (600) | (400) | (1,072) | (894) | |||
Balance, end of period | 15,266 | 15,756 | 15,266 | 15,756 | |||
Fair market value and key assumptions used in determining the fair market value | |||||||
Fair market value, beginning of period | 17,696 | 17,161 | |||||
Fair market value, end of period | 15,554 | 18,560 | 15,554 | 18,560 | |||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||||
Gross Carrying Value | 66,755 | 66,013 | |||||
Accumulated Amortization | (51,489) | (50,417) | |||||
Other intangible assets | 15,266 | 15,756 | 15,596 | 15,843 | 15,266 | 15,596 | 15,756 |
Estimated Amortization Expense | |||||||
2019 (remainder) | 1,481 | ||||||
2019 | 2,437 | ||||||
2020 | 1,941 | ||||||
2021 | 1,570 | ||||||
2022 | 1,297 | ||||||
2023 | 1,120 | ||||||
Thereafter | 5,420 | ||||||
Other intangible assets | $ 15,266 | $ 15,756 | $ 15,596 | $ 15,843 | $ 15,266 | $ 15,596 | $ 15,756 |
Measurement Input, Discount Rate | Mortgage Servicing Rights | |||||||
Fair market value and key assumptions used in determining the fair market value | |||||||
Forecasted constant prepayment rate assumption (1) | 0.095 | 0.095 | |||||
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | |||||||
Fair market value and key assumptions used in determining the fair market value | |||||||
Forecasted constant prepayment rate assumption (1) | 0.174 | 0.139 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Derivatives Not Designated as Hedging Instruments $ in Millions | Jun. 30, 2019USD ($) |
Interest rate lock commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 1 |
Forward sale commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 7.8 |
DERIVATIVES (Balance Sheet) (De
DERIVATIVES (Balance Sheet) (Details) - Derivatives Not Designated as Hedging Instruments - Interest rate lock and forward sale commitments - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Asset Derivatives | ||
Fair Value | $ 6 | $ 11 |
Liability Derivatives | ||
Fair Value | $ 69 | $ 95 |
DERIVATIVES (Income Statement)
DERIVATIVES (Income Statement) (Details) - Derivatives Not Designated as Hedging Instruments - Derivatives Not in Cash Flow Hedging Relationship - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Mortgage banking income | Interest rate lock and forward sale commitments | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ (18) | $ (36) | $ 21 | $ (15) |
Other income | Loans held-for-sale | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ 0 | $ 7 | $ 0 | $ 0 |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) | Jan. 07, 2019USD ($) | Dec. 17, 2018USD ($) | Dec. 31, 2004USD ($) | Sep. 30, 2004USD ($) | Oct. 31, 2003USD ($)trust | Jun. 30, 2019USD ($)period | Dec. 31, 2018USD ($) |
LONG-TERM DEBT | |||||||
Short-term borrowings | $ 221,000,000 | $ 197,000,000 | |||||
Long term borrowings | 101,547,000 | 122,166,000 | |||||
Number of wholly owned statutory trusts created | trust | 2 | ||||||
Federal Home Loan Bank Borrowings | |||||||
LONG-TERM DEBT | |||||||
Line of Credit, maximum borrowing capacity | 1,740,000,000 | 1,430,000,000 | |||||
Unused borrowings available | 1,400,000,000 | 1,180,000,000 | |||||
Short-term borrowings | 221,000,000 | 197,000,000 | |||||
Commercial real estate and commercial loans pledged as collateral | 2,340,000,000 | ||||||
Federal Reserve discount window line of credit | |||||||
LONG-TERM DEBT | |||||||
Unused borrowings available | 67,700,000 | 73,900,000 | |||||
Commercial real estate and commercial loans pledged as collateral | 121,200,000 | 123,300,000 | |||||
C P B Capital Trust I I [Member] | |||||||
LONG-TERM DEBT | |||||||
Common securities issued | $ 600,000 | ||||||
Trust preferred securities issued value | $ 20,000,000 | $ 20,000,000 | |||||
Trust Preferred Securities Issued Value, Held By Company | 600,000 | ||||||
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 | $ 20,000,000 | |||||
Trust Preferred Securities Issued Value, Held By Company | 600,000 | ||||||
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% | ||||||
Federal Home Loan Bank Advances [Member] | |||||||
LONG-TERM DEBT | |||||||
Long term borrowings | $ 50,000,000 | $ 50,000,000 | |||||
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 | $ 20,600,000 | |||||
Subordinated Debt [Member] | C P B Capital Trust I I I [Member] | |||||||
LONG-TERM DEBT | |||||||
Long term borrowings | $ 20,600,000 | 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_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 6,498 | $ 6,077 | $ 12,287 | $ 11,821 |
Out-of-scope other operating income | 3,596 | 3,553 | 9,480 | 6,763 |
Total other operating income | 10,094 | 9,630 | 21,767 | 18,584 |
Service charges on deposit accounts | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 2,041 | 1,977 | 4,122 | 3,980 |
Other service charges and fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 3,193 | 2,835 | 5,761 | 5,391 |
Income from fiduciary activities | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 1,129 | 1,017 | 2,094 | 1,973 |
Fees on foreign exchange | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 28 | 28 | 54 | 60 |
Loan placement fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 107 | $ 220 | $ 256 | $ 417 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - Restricted Stock Awards and Units | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Activity of nonvested shares | |
Nonvested restricted stock awards and units, beginning of period (in shares) | shares | 362,725 |
Changes during the period: | |
Granted (in shares) | shares | 181,073 |
Vested (in shares) | shares | (134,256) |
Forfeited (in shares) | shares | (6,970) |
Nonvested restricted stock awards and units, end of period (in shares) | shares | 402,572 |
Weighted Average Grant Date Fair Value | |
Nonvested restricted stock awards and units, beginning of period (in dollars per share) | $ / shares | $ 26.98 |
Changes during the period: | |
Granted (in dollars per share) | $ / shares | 28.89 |
Vested (in dollars per share) | $ / shares | 24.31 |
Forfeited (in dollars per share) | $ / shares | 29.63 |
Nonvested restricted stock awards and units, end of period (in dollars per share) | $ / shares | $ 28.69 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | |||
Operating Lease, Cost | $ 1,628 | $ 3,256 | |
Variable Lease, Cost | 604 | 1,251 | |
Sublease Income | (11) | (22) | |
Lease, Cost | 2,221 | 4,485 | |
Cash flows from operating leases | $ (1,556) | $ (3,105) | $ 0 |
Operating Lease, Weighted Average Remaining Lease Term | 14 years 18 days | 14 years 2 months 15 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.92% | 3.92% |
LEASES - Lessee, Operating Leas
LEASES - Lessee, Operating Lease Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Undiscounted Cash Flows | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 3,106 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 6,015 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 5,705 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 5,268 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 4,970 |
Lessee, Operating Lease, Liability, Payments, Due Year Six | 4,812 |
Lessee, Operating Lease, Liability, Payments, Due after Year Six | 40,920 |
Lessee, Operating Lease, Liability, Payments, Due | 70,796 |
Lease Liability Expense | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Remainder of Fiscal Year | 1,032 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Two | 1,939 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Three | 1,787 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Four | 1,645 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Five | 1,512 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Six | 1,383 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due After Year Six | 7,669 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 16,967 |
Lease Liability Reduction | |
Lessee, Operating Lease, Lease Liability Reduction, Remainder of Fiscal Year | 2,074 |
Lessee, Operating Lease, Lease Liability Reduction, Year Two | 4,076 |
Lessee, Operating Lease, Lease Liability Reduction, Year Three | 3,918 |
Lessee, Operating Lease, Lease Liability Reduction, Year Four | 3,623 |
Lessee, Operating Lease, Lease Liability Reduction, Year Five | 3,458 |
Lessee, Operating Lease, Lease Liability Reduction, Year Six | 3,429 |
Lessee, Operating Lease, Lease Liability Reduction, After Year Six | 33,251 |
Lessee, Operating Lease, Lease Liability Reduction | $ 53,829 |
LEASES - Rental Income (Details
LEASES - Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease, Lease Income | $ 519 | $ 1,054 |
LEASES - Lessor, Operating Leas
LEASES - Lessor, Operating Lease Maturities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Remainder of Fiscal Year | $ 982 |
Lessor, Operating Lease, Payments to be Received, Two Years | 1,782 |
Lessor, Operating Lease, Payments to be Received, Three Years | 1,842 |
Lessor, Operating Lease, Payments to be Received, Four Years | 1,283 |
Lessor, Operating Lease, Payments to be Received, Five Years | 450 |
Lessor, Operating Lease, Payments to be Received, Six Years | 88 |
Lessor, Operating Lease, Payments to be Received, Thereafter | 268 |
Lessor, Operating Lease, Payments to be Received | $ 6,695 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Before Tax | ||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | $ 0 | $ 0 | ||||
Other comprehensive income (loss), before tax | $ 16,892 | $ (4,814) | 32,189 | (24,918) | ||
Tax Effect | ||||||
Other comprehensive income, tax | 4,479 | (1,295) | 8,538 | (6,684) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | 0 | 0 | ||||
Net of Tax | ||||||
Total other comprehensive income (loss), net of tax | 12,413 | $ 11,238 | (3,519) | $ (14,715) | 23,651 | (18,234) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 0 | 0 | ||||
Net unrealized gains on investment securities | ||||||
Before Tax | ||||||
Other comprehensive income (loss) before reclassification, before tax | 16,620 | (5,057) | 31,644 | (25,512) | ||
Reclassification from AOCI, before tax | 0 | 0 | 0 | 0 | ||
Other comprehensive income (loss), before tax | 16,620 | (5,057) | 31,644 | (25,512) | ||
Tax Effect | ||||||
Other comprehensive income (loss) before reclassifications, tax | 4,455 | (1,388) | 8,483 | (6,872) | ||
Reclassification from AOCI, tax | 0 | 0 | 0 | 0 | ||
Other comprehensive income, tax | 4,455 | (1,388) | 8,483 | (6,872) | ||
Net of Tax | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | 12,165 | (3,669) | 23,161 | (18,640) | ||
Reclassification from AOCI, net of tax | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 12,165 | (3,669) | 23,161 | (18,640) | ||
Amortization of net actuarial loss | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | 264 | 235 | 527 | 576 | ||
Tax Effect | ||||||
Reclassification from AOCI, tax | 22 | 91 | 51 | 184 | ||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | 242 | 144 | 476 | 392 | ||
Amortization of net transition obligation | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | 4 | 4 | 9 | 9 | ||
Tax Effect | ||||||
Reclassification from AOCI, tax | 1 | 1 | 2 | 2 | ||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | 3 | 3 | 7 | 7 | ||
Amortization of prior service cost | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | 4 | 4 | 9 | 9 | ||
Tax Effect | ||||||
Reclassification from AOCI, tax | 1 | 1 | 2 | 2 | ||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | 3 | 3 | 7 | 7 | ||
Settlement | ||||||
Before Tax | ||||||
Reclassification from AOCI, before tax | 0 | |||||
Tax Effect | ||||||
Reclassification from AOCI, tax | 0 | |||||
Net of Tax | ||||||
Reclassification from AOCI, net of tax | 0 | 0 | ||||
Defined benefit plans, net | ||||||
Before Tax | ||||||
Other comprehensive income (loss), before tax | (272) | (243) | (545) | (594) | ||
Tax Effect | ||||||
Other comprehensive income, tax | (24) | (93) | (55) | (188) | ||
Net of Tax | ||||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 0 | 0 | ||
Reclassification from AOCI, net of tax | 248 | 150 | 490 | 406 | ||
Total other comprehensive income (loss), net of tax | $ 248 | $ 150 | $ 490 | $ 406 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Apr. 01, 2018 | Jan. 01, 2018 | |||
Changes in each component of AOCI, net of tax | |||||||||||
Balance at beginning of period | $ 491,725 | $ 491,725 | |||||||||
Adjusted balance | $ 488,625 | $ 500,035 | |||||||||
Total other comprehensive income (loss), net of tax | $ 12,413 | 11,238 | $ (3,519) | $ (14,715) | 23,651 | $ (18,234) | |||||
Balance at end of period | 515,695 | 515,695 | |||||||||
Investment Securities | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Balance at beginning of period | (9,643) | (10,492) | 5,073 | (9,643) | 5,073 | ||||||
Impact of the adoption of new accounting standards | (3,100) | (139) | |||||||||
Impact of the adoption of new accounting standards | (455) | ||||||||||
Adjusted balance | (1,747) | (12,743) | 4,934 | ||||||||
Other comprehensive income (loss) before reclassifications | 12,165 | (3,669) | 23,161 | (18,640) | |||||||
Reclassification adjustments from AOCI | 0 | 0 | 0 | 0 | |||||||
Total other comprehensive income (loss), net of tax | 12,165 | (3,669) | 23,161 | (18,640) | |||||||
Balance at end of period | 10,418 | (14,161) | (10,492) | 10,418 | (14,161) | ||||||
Defined Benefit Plans | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Balance at beginning of period | (6,450) | (7,237) | (6,112) | (6,450) | (6,112) | ||||||
Impact of the adoption of new accounting standards | 0 | 0 | |||||||||
Impact of the adoption of new accounting standards | (1,381) | ||||||||||
Adjusted balance | (6,208) | (6,450) | (6,112) | ||||||||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | |||||||
Reclassification adjustments from AOCI | 248 | 150 | 490 | 406 | |||||||
Total other comprehensive income (loss), net of tax | 248 | 150 | 490 | 406 | |||||||
Balance at end of period | (5,960) | (7,087) | (7,237) | (5,960) | (7,087) | ||||||
Accum. Other Comp. Income (Loss) | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Balance at beginning of period | (16,093) | (17,729) | (1,039) | (16,093) | (1,039) | ||||||
Adjusted balance | (7,955) | (19,193) | (1,178) | ||||||||
Other comprehensive income (loss) before reclassifications | 12,165 | (3,669) | 23,161 | (18,640) | |||||||
Reclassification adjustments from AOCI | 248 | 150 | 490 | 406 | |||||||
Total other comprehensive income (loss), net of tax | 12,413 | $ 11,238 | (3,519) | (14,715) | 23,651 | (18,234) | |||||
Balance at end of period | $ 4,458 | $ (21,248) | $ (17,729) | $ 4,458 | (21,248) | ||||||
Accounting Standards Update 2018-02 and Accounting Standards Update 2016-01 [Member] | Accum. Other Comp. Income (Loss) | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Impact of the adoption of new accounting standards | $ (3,100) | (139) | |||||||||
Impact of the adoption of new accounting standards | $ (1,836) | ||||||||||
Accounting Standards Update 2018-02 [Member] | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Impact of the adoption of new accounting standards | [1] | 0 | |||||||||
Accounting Standards Update 2018-02 [Member] | Investment Securities | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Impact of the adoption of new accounting standards | $ 0 | ||||||||||
Accounting Standards Update 2018-02 [Member] | Defined Benefit Plans | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Impact of the adoption of new accounting standards | 0 | ||||||||||
Accounting Standards Update 2018-02 [Member] | Accum. Other Comp. Income (Loss) | |||||||||||
Changes in each component of AOCI, net of tax | |||||||||||
Impact of the adoption of new accounting standards | $ 0 | $ (1,836) | [1] | ||||||||
[1] | (1) Represents the impact of the adoption of Accounting Standards Update ("ASU") ASU 2017-12. See Note 2 to the consolidated financial statements for additional information. |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified out of AOCI) (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Income tax benefit (expense) | $ (4,427) | $ (3,935) | $ (9,545) | $ (7,741) | ||
Net income | 13,534 | $ 16,037 | 14,224 | $ 14,277 | 29,571 | 28,501 |
Amount Reclassified from AOCI | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Net income | (248) | (150) | (490) | (406) | ||
Investment Securities | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Reclassification from AOCI, net of tax | 0 | 0 | 0 | 0 | ||
Investment Securities | Amount Reclassified from AOCI | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Investment securities gains (losses) | 0 | 0 | 0 | 0 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Net income | 0 | 0 | 0 | 0 | ||
Defined Benefit Plans | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Reclassification from AOCI, net of tax | (248) | (150) | (490) | (406) | ||
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 | (272) | (243) | (545) | (594) | ||
Amortization of defined benefit plan items, tax | 24 | 93 | 55 | 188 | ||
Reclassification from AOCI, net of tax | (248) | (150) | (490) | (406) | ||
Amortization of net actuarial loss | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (264) | (235) | (527) | (576) | ||
Amortization of defined benefit plan items, tax | 22 | 91 | 51 | 184 | ||
Reclassification from AOCI, net of tax | (242) | (144) | (476) | (392) | ||
Amortization of 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 | (264) | (235) | (527) | (576) | ||
Amortization of net transition obligation | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (4) | (4) | (9) | (9) | ||
Amortization of defined benefit plan items, tax | 1 | 1 | 2 | 2 | ||
Reclassification from AOCI, net of tax | (3) | (3) | (7) | (7) | ||
Amortization of 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 | (4) | (4) | (9) | (9) | ||
Amortization of prior service cost | ||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||
Amortization of defined benefit plan items, before tax | (4) | (4) | (9) | (9) | ||
Amortization of defined benefit plan items, tax | 1 | 1 | 2 | 2 | ||
Reclassification from AOCI, net of tax | (3) | (3) | (7) | (7) | ||
Amortization of 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) | $ (4) | $ (9) | $ (9) |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
SHARE-BASED COMPENSATION | ||||||
Net income | $ 13,534 | $ 16,037 | $ 14,224 | $ 14,277 | $ 29,571 | $ 28,501 |
Weighted average shares outstanding - basic | 28,546,564 | 29,510,175 | 28,651,852 | 29,658,051 | ||
Weighted average shares outstanding - diluted | 28,729,510 | 29,714,942 | 28,847,786 | 29,881,534 | ||
Basic earnings per common share (in dollars per share) | $ 0.47 | $ 0.48 | $ 1.03 | $ 0.96 | ||
Diluted earnings per common share (in dollars per share) | $ 0.47 | $ 0.48 | $ 1.03 | $ 0.95 | ||
Antidilutive securities excluded from the dilutive share calculation (in shares) | 0 | 0 | 0 | 0 | ||
Stock Option | ||||||
SHARE-BASED COMPENSATION | ||||||
Dilutive effect of share-based compensation arrangements | 182,946 | 204,767 | 195,934 | 223,483 |
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 | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Cash and due from banks | $ 83,534,000 | $ 83,534,000 | $ 80,569,000 |
Interest-bearing deposits in other banks | 15,173,000 | 15,173,000 | 21,617,000 |
Loans held for sale | 6,848,000 | 6,848,000 | 6,647,000 |
Accrued interest receivable | 17,260,000 | 17,260,000 | 17,000,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,351,190,000 | 1,351,190,000 | 1,436,967,000 |
Time deposits | 1,049,148,000 | 1,049,148,000 | 1,107,255,000 |
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 | 1,085,507,000 | 1,085,507,000 | 1,030,322,000 |
Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments, Notional Amount | 13,069,000 | 13,069,000 | 13,377,000 |
Interest rate lock commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 1,001,000 | 1,001,000 | 2,158,000 |
Forward sale commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 7,798,000 | 7,798,000 | 8,530,000 |
Carrying Amount | |||
Financial assets | |||
Cash and due from banks | 83,534,000 | 83,534,000 | 80,569,000 |
Interest-bearing deposits in other banks | 15,173,000 | 15,173,000 | 21,617,000 |
Investment securities | 1,255,777,000 | 1,255,777,000 | 1,354,812,000 |
Loans held for sale | 6,848,000 | 6,848,000 | 6,647,000 |
Net loans and leases | 4,198,846,000 | 4,198,846,000 | 4,030,450,000 |
Accrued interest receivable | 17,260,000 | 17,260,000 | 17,000,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,351,190,000 | 1,351,190,000 | 1,436,967,000 |
Interest-bearing demand and savings deposits | 2,576,511,000 | 2,576,511,000 | 2,402,268,000 |
Time deposits | 1,049,148,000 | 1,049,148,000 | 1,107,255,000 |
Short-term debt | 221,000,000 | 221,000,000 | 197,000,000 |
Long-term debt | 101,547,000 | 101,547,000 | 122,166,000 |
Interest Payable | 4,890,000 | 4,890,000 | 5,051,000 |
Carrying Amount | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,246,000 | 1,246,000 | 1,205,000 |
Carrying Amount | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 196,000 | 196,000 | 201,000 |
Carrying Amount | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 6,000 | 6,000 | 11,000 |
Estimated Fair Value | |||
Financial assets | |||
Cash and due from banks | 83,534,000 | 83,534,000 | 80,569,000 |
Interest-bearing deposits in other banks | 15,173,000 | 15,173,000 | 21,617,000 |
Investment securities | 1,255,777,000 | 1,255,777,000 | 1,350,576,000 |
Loans held for sale | 6,848,000 | 6,848,000 | 6,647,000 |
Net loans and leases | 4,195,832,000 | 4,195,832,000 | 3,938,380,000 |
Accrued interest receivable | 17,260,000 | 17,260,000 | 17,000,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,351,190,000 | 1,351,190,000 | 1,436,967,000 |
Interest-bearing demand and savings deposits | 2,576,511,000 | 2,576,511,000 | 2,402,268,000 |
Time deposits | 1,045,184,000 | 1,045,184,000 | 1,099,560,000 |
Short-term debt | 221,000,000 | 221,000,000 | 197,000,000 |
Long-term debt | 97,710,000 | 97,710,000 | 118,057,000 |
Interest Payable | 4,890,000 | 4,890,000 | 5,051,000 |
Estimated Fair Value | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,246,000 | 1,246,000 | 1,205,000 |
Estimated Fair Value | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 196,000 | 196,000 | 201,000 |
Estimated Fair Value | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 6,000 | 6,000 | 11,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets | |||
Cash and due from banks | 83,534,000 | 83,534,000 | 80,569,000 |
Interest-bearing deposits in other banks | 15,173,000 | 15,173,000 | 21,617,000 |
Investment securities | 1,034,000 | 1,034,000 | 826,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 0 | 0 | 0 |
Accrued interest receivable | 17,260,000 | 17,260,000 | 17,000,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,351,190,000 | 1,351,190,000 | 1,436,967,000 |
Interest-bearing demand and savings deposits | 2,576,511,000 | 2,576,511,000 | 2,402,268,000 |
Time deposits | 0 | 0 | 0 |
Short-term debt | 0 | 0 | 0 |
Long-term debt | 0 | 0 | 0 |
Interest Payable | 4,890,000 | 4,890,000 | 5,051,000 |
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 | 0 | 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 | 1,243,338,000 | 1,243,338,000 | 1,338,581,000 |
Loans held for sale | 6,848,000 | 6,848,000 | 6,647,000 |
Net loans and leases | 10,088,000 | 10,088,000 | 0 |
Accrued interest receivable | 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 | 221,000,000 | 221,000,000 | 197,000,000 |
Long-term debt | 97,710,000 | 97,710,000 | 118,057,000 |
Interest Payable | 0 | ||
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,246,000 | 1,246,000 | 1,205,000 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 196,000 | 196,000 | 201,000 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 6,000 | 6,000 | 11,000 |
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 | 11,405,000 | 11,405,000 | 11,169,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 4,185,744,000 | 4,185,744,000 | 3,938,380,000 |
Accrued interest receivable | 0 | 0 | 0 |
Deposits: | |||
Noninterest-bearing deposits | 0 | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 | 0 |
Time deposits | 1,045,184,000 | 1,045,184,000 | 1,099,560,000 |
Short-term debt | 0 | 0 | 0 |
Long-term debt | 0 | 0 | 0 |
Interest Payable | 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 | 0 | 0 |
Recurring basis | Carrying Amount | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (69,000) | (69,000) | (95,000) |
Recurring basis | Estimated Fair Value | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (69,000) | (69,000) | (95,000) |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (69,000) | (69,000) | (95,000) |
Recurring basis | Significant Unobservable Inputs (Level 3) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | $ 0 | $ 0 | $ 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 | Jun. 30, 2019 | Dec. 31, 2018 |
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | $ 1,254,743 | $ 1,205,478 |
Equity securities, at fair value | 1,034 | 826 |
States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 154,504 | 173,674 |
Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 30,797 | 54,849 |
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 | 29,615 | 32,574 |
Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 755,373 | 717,052 |
Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 106,354 | 51,483 |
Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 40,517 | 41,118 |
Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 137,583 | 134,728 |
Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,034 | 826 |
Recurring basis | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,254,743 | 1,205,478 |
Total | 1,255,714 | 1,206,220 |
Recurring basis | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | (63) | (84) |
Recurring basis | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 154,504 | 173,674 |
Recurring basis | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 30,797 | 54,849 |
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 | 29,615 | 32,574 |
Recurring basis | Residential - U.S. Government-sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 755,373 | 717,052 |
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 | 106,354 | 41,118 |
Recurring basis | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 40,517 | 51,483 |
Recurring basis | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 137,583 | 134,728 |
Recurring basis | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,034 | 826 |
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 | 1,034 | 826 |
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 | 1,034 | 826 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,243,338 | 1,194,309 |
Total | 1,243,275 | 1,194,225 |
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) | (84) |
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 | 143,099 | 162,505 |
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 | 30,797 | 54,849 |
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 | 29,615 | 32,574 |
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 | 755,373 | 717,052 |
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 | 106,354 | 41,118 |
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 | 40,517 | 51,483 |
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 | 137,583 | 134,728 |
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 | 11,405 | 11,169 |
Total | 11,405 | 11,169 |
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 | 11,405 | 11,169 |
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 | 6 Months Ended | ||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018 | |
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 | $ 11,169 | $ 11,794 | |
Principal payments received | (204) | (189) | |
Unrealized net gain (loss) included in other comprehensive income | 440 | (271) | |
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 | $ 11,405 | $ 11,334 | |
Additional disclosures | |||
Number of investment securities held | security | 4 | ||
Measurement Input, Discount Rate | Mortgage revenue bonds | Weighted average | |||
Fair Value Of Financial Assets And Liabilities | |||
Forecasted constant prepayment rate assumption (1) | 0.0427 | 0.0516 | 0.0506 |
FAIR VALUE OF FINANCIAL ASSET_6
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 276 | $ 414 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 276 | 414 |
Significant Unobservable Inputs (Level 3) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 0 | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | |||||||
Number of reportable segments | segment | 3 | ||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | $ 45,378 | $ 42,672 | $ 90,491 | $ 84,994 | |||
Other operating income | 10,094 | 9,630 | 21,767 | 18,584 | |||
Other operating expense | (36,107) | (33,611) | (70,455) | (67,015) | |||
Income before income taxes | 17,961 | 18,159 | 39,116 | 36,242 | |||
Income tax (expenses) benefit | (4,427) | (3,935) | (9,545) | (7,741) | |||
Net income | 13,534 | $ 16,037 | 14,224 | $ 14,277 | 29,571 | 28,501 | |
Investment securities | 1,255,777 | 1,255,777 | $ 1,354,812 | ||||
Total assets | 5,920,006 | 5,920,006 | 5,807,026 | ||||
Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Net income | 15,748 | 14,512 | 31,579 | 28,748 | |||
Total assets | 4,274,794 | 4,274,794 | 4,121,918 | ||||
Treasury | |||||||
SEGMENT INFORMATION | |||||||
Net income | 444 | 495 | 3,406 | 999 | |||
Total assets | 1,506,990 | 1,506,990 | 1,611,464 | ||||
All Others | |||||||
SEGMENT INFORMATION | |||||||
Net income | (2,658) | (783) | (5,414) | (1,246) | |||
Total assets | 138,222 | 138,222 | 73,644 | ||||
Intersegment elimination | |||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | 0 | 0 | 0 | 0 | |||
Intersegment elimination | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | 6,602 | 6,915 | 13,292 | 13,836 | |||
Intersegment elimination | Treasury | |||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | (2,688) | (4,941) | (5,294) | (10,390) | |||
Intersegment elimination | All Others | |||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | (3,914) | (1,974) | (7,998) | (3,446) | |||
Operating segments | |||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | 45,378 | 42,672 | 90,491 | 84,994 | |||
Provision (credit) for loan and lease losses | (1,404) | (532) | (2,687) | (321) | |||
Other operating income | 10,094 | 9,630 | 21,767 | 18,584 | |||
Other operating expense | (36,107) | (33,611) | (70,455) | (67,015) | |||
Administrative and overhead expense allocation | 0 | 0 | 0 | 0 | |||
Income before income taxes | 17,961 | 18,159 | 39,116 | 36,242 | |||
Income tax (expenses) benefit | (4,427) | (3,935) | (9,545) | (7,741) | |||
Investment securities | 1,255,777 | 1,255,777 | 1,354,812 | ||||
Loans and leases (including loans held for sale) | 4,253,961 | 4,253,961 | 4,085,013 | ||||
Other | 410,268 | 410,268 | 367,201 | ||||
Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | 42,589 | 37,281 | 84,269 | 73,423 | |||
Provision (credit) for loan and lease losses | (1,404) | (532) | (2,687) | (321) | |||
Other operating income | 6,067 | 5,690 | 11,164 | 11,204 | |||
Other operating expense | (15,903) | (15,777) | (31,807) | (31,702) | |||
Administrative and overhead expense allocation | (17,061) | (15,167) | (32,458) | (30,113) | |||
Income before income taxes | 20,890 | 18,410 | 41,773 | 36,327 | |||
Income tax (expenses) benefit | (5,142) | (3,898) | (10,194) | (7,579) | |||
Investment securities | 0 | 0 | 0 | ||||
Loans and leases (including loans held for sale) | 4,253,961 | 4,253,961 | 4,085,013 | ||||
Other | 20,833 | 20,833 | 36,905 | ||||
Operating segments | Treasury | |||||||
SEGMENT INFORMATION | |||||||
Net interest income (expense) | 2,789 | 5,391 | 6,222 | 11,571 | |||
Provision (credit) for loan and lease losses | 0 | 0 | 0 | 0 | |||
Other operating income | 1,107 | 759 | 4,742 | 1,270 | |||
Other operating expense | (399) | (358) | (745) | (743) | |||
Administrative and overhead expense allocation | (211) | (223) | (420) | (446) | |||
Income before income taxes | 598 | 628 | 4,505 | 1,262 | |||
Income tax (expenses) benefit | (154) | (133) | (1,099) | (263) | |||
Investment securities | 1,255,777 | 1,255,777 | 1,354,812 | ||||
Loans and leases (including loans held for sale) | 0 | 0 | 0 | ||||
Other | 251,213 | 251,213 | 256,652 | ||||
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 | 2,920 | 3,181 | 5,861 | 6,110 | |||
Other operating expense | (19,805) | (17,476) | (37,903) | (34,570) | |||
Administrative and overhead expense allocation | 17,272 | 15,390 | 32,878 | 30,559 | |||
Income before income taxes | (3,527) | (879) | (7,162) | (1,347) | |||
Income tax (expenses) benefit | 869 | 96 | 1,748 | 101 | |||
Investment securities | 0 | 0 | 0 | ||||
Loans and leases (including loans held for sale) | 0 | 0 | 0 | ||||
Other | 138,222 | 138,222 | $ 73,644 | ||||
Mortgage banking income | Operating segments | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 1,601 | 1,775 | 3,025 | 3,622 | |||
Mortgage banking income | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 957 | 923 | 1,607 | 1,916 | |||
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 | 644 | 852 | 1,418 | 1,706 | |||
Service charges on deposit accounts | Operating segments | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 2,041 | 1,977 | 4,122 | 3,980 | |||
Service charges on deposit accounts | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 2,041 | 1,977 | 4,122 | 3,980 | |||
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 | 3,691 | 3,377 | 6,755 | 6,411 | |||
Other service charges and fees | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 1,584 | 1,287 | 2,660 | 2,430 | |||
Other service charges and fees | Operating segments | Treasury | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 0 | 8 | 0 | 14 | |||
Other service charges and fees | Operating segments | All Others | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 2,107 | 2,082 | 4,095 | 3,967 | |||
Income from fiduciary activities | Operating segments | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 1,129 | 1,017 | 2,094 | 1,973 | |||
Income from fiduciary activities | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 1,129 | 1,017 | 2,094 | 1,973 | |||
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 | 37 | 79 | 80 | |||
Equity in earnings of unconsolidated subsidiaries | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 71 | 37 | 79 | 80 | |||
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 | 218 | 277 | 369 | 488 | |||
Fees on foreign exchange | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 25 | 29 | 47 | 53 | |||
Fees on foreign exchange | Operating segments | Treasury | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 193 | 248 | 322 | 435 | |||
Fees on foreign exchange | Operating segments | All Others | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 0 | 0 | |||||
Income from bank-owned life insurance | Operating segments | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 914 | 501 | 1,866 | 819 | |||
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 | 914 | 501 | 1,866 | 819 | |||
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 | 107 | 220 | 256 | 417 | |||
Loan placement fees | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 107 | 220 | 256 | 417 | |||
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 | |||
Other income | Operating segments | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 322 | 449 | 3,201 | 794 | |||
Other income | Operating segments | Banking Operations | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 153 | 200 | 299 | 355 | |||
Other income | Operating segments | Treasury | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | 0 | 2 | 2,554 | 2 | |||
Other income | Operating segments | All Others | |||||||
SEGMENT INFORMATION | |||||||
Other operating income | $ 169 | $ 247 | $ 348 | $ 437 |
Uncategorized Items - a10qq2201
Label | Element | Value | |
Retained Earnings [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (51,718,000) | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (88,897,000) | |
Common Stock [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 470,660,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 503,988,000 | |
Additional Paid-in Capital [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 86,098,000 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 88,876,000 | |
Noncontrolling Interest [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 24,000 | |
Common Shares Outstanding [Member] | |||
Common Stock, Shares, Outstanding, Adjusted Balance | cpf_CommonStockSharesOutstandingAdjustedBalance | 28,967,715 | |
Common Stock, Shares, Outstanding, Adjusted Balance | cpf_CommonStockSharesOutstandingAdjustedBalance | 30,024,222 | |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,836,000 | [1] |
Accounting Standards Update 2016-01 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | [1] |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 139,000 | [1] |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (139,000) | [1] |
Accounting Standards Update 2017-02 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,100,000) | [1] |
Accounting Standards Update 2017-02 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,100,000) | [1] |
[1] | (1) Represents the impact of the adoption of Accounting Standards Update ("ASU") ASU 2017-12. See Note 2 to the consolidated financial statements for additional information. |