Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-17071 | ||
Entity Registrant Name | FIRST MERCHANTS CORPORATION | ||
Entity Incorporation, State or Country Code | IN | ||
Entity Tax Identification Number | 35-1544218 | ||
Entity Address, Address Line One | 200 East Jackson Street | ||
Entity Address, City or Town | Muncie | ||
Entity Address, State or Province | IN | ||
Entity Address, Postal Zip Code | 47305-2814 | ||
City Area Code | 765 | ||
Local Phone Number | 747-1500 | ||
Title of 12(b) Security | Common Stock, $0.125 stated value per share | ||
Trading Symbol | FRME | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,874,405 | ||
Entity Common Stock, Shares Outstanding | 55,155,733 | ||
Documents Incorporated by Reference | Documents Part of Form 10-K into which incorporated Portions of the Registrant’s Definitive Part III (Items 10 through 14) Proxy Statement for Annual Meeting of Shareholders to be held May 13, 2020 | ||
Entity Central Index Key | 0000712534 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 177,201 | $ 139,247 |
Interest-bearing time deposits | 118,263 | 36,963 |
Investment securities available for sale | 1,790,025 | 1,142,195 |
Investment securities held to maturity (fair value of $827,566 and $489,217) | 806,038 | 490,387 |
Loans held for sale | 9,037 | 4,778 |
Loans | 8,459,310 | 7,224,467 |
Less: Allowance for loan losses | (80,284) | (80,552) |
Net Loans | 8,379,026 | 7,143,915 |
Premises and equipment | 113,055 | 93,420 |
Federal Home Loan Bank stock | 28,736 | 24,588 |
Interest receivable | 48,901 | 40,881 |
Other intangibles | 34,962 | 24,429 |
Goodwill | 543,918 | 445,355 |
Cash surrender value of life insurance | 288,206 | 224,939 |
Other real estate owned | 7,527 | 2,179 |
Tax asset, deferred and receivable | 12,165 | 23,668 |
Other assets | 100,194 | 47,772 |
TOTAL ASSETS | 12,457,254 | 9,884,716 |
Deposits: | ||
Noninterest-bearing | 1,736,396 | 1,447,907 |
Interest-bearing | 8,103,560 | 6,306,686 |
Total Deposits | 9,839,956 | 7,754,593 |
Borrowings: | ||
Federal funds purchased | 55,000 | 104,000 |
Securities sold under repurchase agreements | 187,946 | 113,512 |
Federal Home Loan Bank advances | 351,072 | 314,986 |
Subordinated debentures and term loans | 138,685 | 138,463 |
Total Borrowings | 732,703 | 670,961 |
Interest payable | 6,754 | 5,607 |
Other liabilities | 91,404 | 45,295 |
Total Liabilities | 10,670,817 | 8,476,456 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY | ||
Cumulative Preferred Stock | 125 | 125 |
Common Stock | 6,921 | 6,169 |
Additional paid-in capital | 1,054,997 | 840,052 |
Retained earnings | 696,520 | 583,336 |
Accumulated other comprehensive income (loss) | 27,874 | (21,422) |
Total Stockholders' Equity | 1,786,437 | 1,408,260 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 12,457,254 | $ 9,884,716 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $ 827,566 | $ 489,217 |
Preferred Stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, shares authorized (in shares) | 600 | 600 |
Preferred Stock, shares issued (in shares) | 125 | 125 |
Preferred Stock, shares outstanding (in shares) | 125 | 125 |
Common Stock, stated value (in dollars per share) | $ 0.125 | $ 0.125 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, shares issued (in shares) | 55,368,482 | 49,349,800 |
Common Stock, shares outstanding (in shares) | 55,368,482 | 49,349,800 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans receivable: | |||
Taxable | $ 382,772 | $ 342,501 | $ 263,704 |
Tax exempt | 17,568 | 14,862 | 10,694 |
Investment securities: | |||
Taxable | 27,815 | 21,597 | 17,489 |
Tax exempt | 31,655 | 25,509 | 21,379 |
Deposits with financial institutions | 4,225 | 2,241 | 736 |
Federal Home Loan Bank stock | 1,370 | 1,234 | 894 |
Total Interest Income | 465,405 | 407,944 | 314,896 |
INTEREST EXPENSE | |||
Deposits | 91,585 | 51,542 | 23,806 |
Federal funds purchased | 251 | 718 | 561 |
Securities sold under repurchase agreements | 1,424 | 762 | 477 |
Federal Home Loan Bank advances | 7,176 | 7,832 | 5,196 |
Subordinated debentures and term loans | 8,309 | 8,233 | 7,572 |
Total Interest Expense | 108,745 | 69,087 | 37,612 |
NET INTEREST INCOME | 356,660 | 338,857 | 277,284 |
Provision for loan losses | 2,800 | 7,227 | 9,143 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 353,860 | 331,630 | 268,141 |
OTHER INCOME | |||
Net gains and fees on sales of loans | 7,891 | 7,029 | 7,564 |
Increase in cash surrender value of life insurance | 4,518 | 4,020 | 3,906 |
Gains on life insurance benefits | 19 | 198 | 2,671 |
Net realized gains on sales of available for sale securities | 4,415 | 4,269 | 2,631 |
Other income | 2,068 | 2,699 | 992 |
Total Other Income | 86,688 | 76,459 | 71,009 |
OTHER EXPENSES | |||
Salaries and employee benefits | 144,037 | 131,704 | 119,812 |
Net occupancy | 19,584 | 18,341 | 16,976 |
Equipment | 16,218 | 14,334 | 13,090 |
Marketing | 6,650 | 4,681 | 3,739 |
Outside data processing fees | 16,476 | 13,215 | 12,242 |
Printing and office supplies | 1,445 | 1,425 | 1,283 |
Intangible asset amortization | 5,994 | 6,719 | 5,647 |
FDIC assessments | 717 | 2,920 | 2,564 |
Other real estate owned and foreclosure expenses | 2,428 | 1,470 | 1,903 |
Professional and other outside services | 15,410 | 8,176 | 12,757 |
Other expenses | 17,804 | 16,966 | 15,543 |
Total Other Expenses | 246,763 | 219,951 | 205,556 |
INCOME BEFORE INCOME TAX | 193,785 | 188,138 | 133,594 |
Income tax expense | 29,325 | 28,999 | 37,524 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 164,460 | $ 159,139 | $ 96,070 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE DATA: | |||
Basic (in dollars per share) | $ 3.20 | $ 3.23 | $ 2.13 |
Diluted (in dollars per share) | $ 3.19 | $ 3.22 | $ 2.12 |
Service charges on deposit accounts | |||
OTHER INCOME | |||
OTHER INCOME | $ 22,951 | $ 20,950 | $ 18,722 |
Fiduciary and wealth management fees | |||
OTHER INCOME | |||
OTHER INCOME | 17,562 | 14,906 | 14,682 |
Card payment fees | |||
OTHER INCOME | |||
OTHER INCOME | 20,243 | 18,035 | 16,120 |
Derivative hedge fees | |||
OTHER INCOME | |||
OTHER INCOME | 5,357 | 2,493 | 1,978 |
Other customer fees | |||
OTHER INCOME | |||
OTHER INCOME | $ 1,664 | $ 1,860 | $ 1,743 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 164,460 | $ 159,139 | $ 96,070 |
Other comprehensive income (loss) net of tax: | |||
Unrealized holding gain (loss) on securities available for sale arising during the period, net of tax of $12,946, $3,174, and $5,193 | 48,703 | (13,872) | 9,645 |
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $226, $52, and $4 | (846) | 437 | |
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $226, $52, and $4 | 9 | ||
Reclassification adjustment for net gains included in net income, net of tax of $857, $797, and $576 | (3,224) | (3,002) | (1,070) |
Defined benefit pension plans, net of tax of $1,239, $1,001, and $1,125 | |||
Net gain (loss) arising during period | 4,579 | (1,435) | 2,686 |
Amortization of prior service cost | 84 | (16) | (597) |
Period change | 49,296 | (17,888) | 10,673 |
Comprehensive income | $ 213,756 | $ 141,251 | $ 106,743 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding gain (loss) on securities available for sale arising during the period, tax | $ 12,946 | $ (3,174) | $ 5,193 |
Unrealized gain (loss) on cash flow hedges arising during the period, tax | (226) | 52 | |
Unrealized gain (loss) on cash flow hedges arising during the period, tax | 4 | ||
Reclassification adjustment for net losses (gains) included in net income, tax | 857 | 797 | 576 |
Defined benefit pension plans, tax | $ (1,239) | $ 1,001 | $ (1,125) |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2016 | 125 | 40,912,697 | ||||
Beginning balance at Dec. 31, 2016 | $ 901,657 | $ 125 | $ 5,114 | $ 509,018 | $ 400,981 | $ (13,581) |
Comprehensive income | ||||||
Net income | 96,070 | 96,070 | ||||
Other comprehensive income (loss), net of tax | 10,673 | 10,673 | ||||
Cash dividends on common stock | (31,820) | (31,820) | ||||
Issuance of common stock related to acquisitions (in shares) | 8,044,446 | |||||
Issuance of common stock related to acquisitions | 321,431 | $ 1,006 | 320,425 | |||
Share-based compensation (in shares) | 89,362 | |||||
Share-based compensation | 2,827 | $ 11 | 2,816 | |||
Stock issued under employee benefit plans (in shares) | 14,948 | |||||
Stock issued under employee benefit plans | 519 | $ 2 | 517 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 24,058 | |||||
Stock issued under dividend reinvestment and stock purchase plan | 991 | $ 3 | 988 | |||
Stock options exercised (in shares) | 104,748 | |||||
Stock options exercised | 2,398 | $ 13 | 2,385 | |||
Stock redeemed (in shares) | (32,021) | |||||
Restricted shares withheld for taxes | (1,283) | $ (4) | (1,279) | |||
Ending balance (in shares) at Dec. 31, 2017 | 125 | 49,158,238 | ||||
Ending balance at Dec. 31, 2017 | 1,303,463 | $ 125 | $ 6,145 | 834,870 | 465,231 | (2,908) |
Comprehensive income | ||||||
Net income | 159,139 | 159,139 | ||||
Other comprehensive income (loss), net of tax | (17,888) | (17,888) | ||||
Cash dividends on common stock | (41,660) | (41,660) | ||||
Reclassification adjustment under ASU 2018-02 | (626) | 626 | (626) | |||
Issuance of common stock related to acquisitions | 0 | |||||
Share-based compensation (in shares) | 112,569 | |||||
Share-based compensation | 3,592 | $ 14 | 3,578 | |||
Stock issued under employee benefit plans (in shares) | 19,001 | |||||
Stock issued under employee benefit plans | 707 | $ 2 | 705 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 28,156 | |||||
Stock issued under dividend reinvestment and stock purchase plan | 1,211 | $ 4 | 1,207 | |||
Stock options exercised (in shares) | 76,152 | |||||
Stock options exercised | 1,598 | $ 10 | 1,588 | |||
Stock redeemed (in shares) | (44,316) | |||||
Restricted shares withheld for taxes | (1,902) | $ (6) | (1,896) | |||
Ending balance (in shares) at Dec. 31, 2018 | 125 | 49,349,800 | ||||
Ending balance at Dec. 31, 2018 | 1,408,260 | $ 125 | $ 6,169 | 840,052 | 583,336 | (21,422) |
Comprehensive income | ||||||
Net income | 164,460 | 164,460 | ||||
Other comprehensive income (loss), net of tax | 49,296 | 49,296 | ||||
Cash dividends on common stock | (51,276) | (51,276) | ||||
Issuance of common stock related to acquisitions (in shares) | 6,383,806 | |||||
Issuance of common stock related to acquisitions | 229,926 | $ 798 | 229,128 | |||
Repurchases of common stock (in shares) | (516,016) | |||||
Repurchases of common stock | (19,041) | $ (65) | (18,976) | |||
Share-based compensation (in shares) | 116,572 | |||||
Share-based compensation | 4,115 | $ 15 | 4,100 | |||
Stock issued under employee benefit plans (in shares) | 21,521 | |||||
Stock issued under employee benefit plans | 702 | $ 3 | 699 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 38,942 | |||||
Stock issued under dividend reinvestment and stock purchase plan | $ 1,531 | $ 5 | 1,526 | |||
Stock options exercised (in shares) | 16,950 | 16,950 | ||||
Stock options exercised | $ 144 | $ 2 | 142 | |||
Stock redeemed (in shares) | (43,093) | |||||
Restricted shares withheld for taxes | (1,680) | $ (6) | (1,674) | |||
Ending balance (in shares) at Dec. 31, 2019 | 125 | 55,368,482 | ||||
Ending balance at Dec. 31, 2019 | $ 1,786,437 | $ 125 | $ 6,921 | $ 1,054,997 | $ 696,520 | $ 27,874 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends on common stock (in dollars per share) | $ 1 | $ 0.84 | $ 0.69 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow From Operating Activities: | |||
Net income | $ 164,460 | $ 159,139 | $ 96,070 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 2,800 | 7,227 | 9,143 |
Depreciation and amortization | 9,383 | 8,842 | 7,967 |
Change in deferred taxes | 4,965 | 3,524 | 15,523 |
Share-based compensation | 4,115 | 3,592 | 2,827 |
Loans originated for sale | (511,407) | (372,791) | (377,252) |
Proceeds from sales of loans held for sale | 513,357 | 380,254 | 387,095 |
Gains on sales of loans held for sale | (6,209) | (5,025) | (5,910) |
Gains on sales of securities available for sale | (4,415) | (4,269) | (2,631) |
Increase in cash surrender of life insurance | (4,518) | (4,020) | (3,906) |
Gains on life insurance benefits | (19) | (198) | (2,671) |
Change in interest receivable | (4,659) | (3,751) | (6,838) |
Change in interest payable | 1,090 | 1,217 | 31 |
Other adjustments | 9,464 | 6,494 | 7,054 |
Net cash provided by operating activities | 178,407 | 180,235 | 126,502 |
Cash Flows from Investing Activities: | |||
Net change in interest-bearing deposits | 199,928 | (1,936) | 237,936 |
Purchases of: | |||
Securities available for sale | (676,791) | (370,284) | (479,045) |
Securities held to maturity | (423,385) | (30,465) | (30,220) |
Proceeds from sales of securities available for sale | 132,837 | 154,519 | 94,165 |
Proceeds from maturities of: | |||
Securities available for sale | 138,356 | 77,881 | 70,846 |
Securities held to maturity | 130,502 | 66,129 | 72,220 |
Redemption (Purchase) of Federal Reserve and Federal Home Loan Bank stock | 0 | (763) | 40 |
Net change in loans | (512,364) | (483,418) | (670,000) |
Net cash and cash equivalents received in acquisition | 10,207 | 0 | 54,536 |
Proceeds from the sale of other real estate owned | 2,060 | 9,121 | 6,584 |
Proceeds from life insurance benefits | 815 | 2,836 | 11,655 |
Other investing activities | (8,564) | 804 | (4,047) |
Net cash used in investing activities | (1,006,399) | (575,576) | (635,330) |
Net change in : | |||
Demand and savings deposits | 883,524 | 526,859 | 425,742 |
Certificates of deposit and other time deposits | 95,913 | 55,204 | 75,236 |
Borrowings | 599,298 | 1,515,526 | 1,088,189 |
Repayment of borrowings | (643,169) | (1,677,860) | (1,024,166) |
Cash dividends on common stock | (51,276) | (41,660) | (31,820) |
Stock issued under employee benefit plans | 702 | 707 | 519 |
Stock issued under dividend reinvestment and stock purchase plans | 1,531 | 1,211 | 991 |
Stock options exercised | 144 | 1,598 | 2,398 |
Restricted shares withheld for taxes | (1,680) | (1,902) | (1,283) |
Repurchase of common stock | (19,041) | 0 | 0 |
Net cash provided by financing activities | 865,946 | 379,683 | 535,806 |
Net Change in Cash and Cash Equivalents | 37,954 | (15,658) | 26,978 |
Cash and Cash Equivalents, January 1 | 139,247 | 154,905 | 127,927 |
Cash and Cash Equivalents, December 31 | 177,201 | 139,247 | 154,905 |
Additional cash flow information: | |||
Interest paid | 107,598 | 67,870 | 36,332 |
Income tax paid | 23,588 | 23,289 | 22,421 |
Loans transferred to other real estate owned | 7,031 | 855 | 8,360 |
Fixed assets transferred to other assets | 1,210 | 374 | 6,753 |
Non-cash investing activities using trade date accounting | 0 | 6,551 | 9,401 |
Investments transferred from held to maturity to available for sale in accordance with ASU 2017-12 | 0 | 30,794 | 0 |
ROU assets obtained in exchange for new operating lease liabilities | 23,529 | 0 | 0 |
Liabilities assumed in conjunction with acquisitions | |||
Fair value of assets acquired | 1,451,287 | 0 | 1,531,397 |
Cash received (paid) in acquisition | (15) | 0 | (12) |
Less: Common stock issued | 229,926 | 0 | 321,431 |
Liabilities assumed | $ 1,221,346 | $ 0 | $ 1,209,954 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Financial Statement Preparation The accounting and reporting policies of the Corporation and the Bank, conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Corporation is a financial holding company whose principal activity is the ownership and management of the Bank and operates in a single significant business segment. The Bank provides full banking services under an Indiana state-charter. Additionally, the Bank operates as First Merchants Private Wealth Advisors (a division of First Merchants Bank). The Bank generates commercial, mortgage, and consumer loans and receives deposits from customers located primarily in central and northern Indiana, northeast Illinois, central Ohio and southeast Michigan counties. The Bank’s loans are generally secured by specific items of collateral, including real property, consumer assets and business assets. A brief description of current accounting practices and current valuation methodologies are presented below. CONSOLIDATION of the Corporation's financial statements include the accounts of the Corporation and all its subsidiaries, after elimination of all material intercompany transactions. BUSINESS COMBINATIONS are accounted for under the acquisition method of accounting. Under the acquisition method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. AVAILABLE FOR SALE SECURITIES are recorded at fair value on a recurring basis with the unrealized gains and losses, net of applicable income taxes, recorded in other comprehensive income. Realized gains and losses are recorded in earnings and the prior fair value adjustments are reclassified within stockholders' equity. Gains and losses on sales of securities are determined on the specific-identification method. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Available for sale and held to maturity securities are evaluated for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Corporation has the intent to sell the debt security or more likely than not, will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs, the amount of OTTI recognized in the income statement depends on whether the Corporation intends to sell the security or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss. If the intent is to sell, or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis, less any recognized credit loss, and its fair value at the balance sheet date. If the intent is not to sell the security and it is not more likely than not that the Corporation will be required to sell the security before the recovery of its amortized cost basis less any recognized credit loss, the OTTI has been separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable income taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. HELD TO MATURITY SECURITIES are classified as held to maturity when the Corporation has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. For held to maturity debt securities, the amount of an OTTI recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. LOANS HELD FOR SALE are carried at the principal amount outstanding. The carrying amount approximates fair value due to the short duration between origination and the date of sale. LOANS held in the Corporation’s loan portfolio are carried at the principal amount outstanding, net of unearned income and principal charge-offs. Certain non-accrual, substantially delinquent and renegotiated loans classified as troubled debt restructures may be considered to be impaired in accordance with ASC 310, Receivables . Under ASC 310-10, a loan is impaired when, based on current information or events, it is probable all amounts due (principal and interest) according to the contractual terms of the loan agreement are uncollectible. Renegotiated consumer loans classified as troubled debt restructures are considered to be impaired. In applying the provisions of ASC 310-10, the Corporation considers all other investments in one-to-four family residential loans and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment. Impaired loans are carried at the fair value of collateral if the loan is collateral dependent, or the present value of estimated future cash flows using the loan’s existing rate. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. The valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis. Interest income is accrued on the principal balances of loans. The accrual of interest is discontinued on a loan when, in management’s opinion, the borrower may be unable to meet payments as they become due. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectible. Interest income accrued in the prior year, if any, is charged to the allowance for loan losses. Interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status. Certain loan fees and direct costs are being deferred and amortized as an adjustment of yield on the loans. Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses which limit the exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value. LOANS ACQUIRED IN BUSINESS COMBINATIONS with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be purchased credit impaired. Evidence of credit quality deterioration as of purchase dates may include information such as past-due and nonaccrual status, borrower credit risk grade and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30). These loans are initially measured at fair value based upon expected cash flows without anticipation of prepayments and includes estimated future credit losses expected to be incurred over the life of the loans. As a result, related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans. For purposes of applying ASC 310-30, loans acquired in business combinations are individually evaluated for the initial fair value measurement. Accordingly, allowances for credit losses related to these loans are not carried over at the acquisition date. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable portion of the fair value discount or premium. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. Acquired loans not accounted for under ASC 310-30 are accounted for under ASC 310-20, which allows the fair value adjustment to be accreted into income over the remaining life of the loans. ALLOWANCE FOR LOAN LOSSES is maintained to absorb losses inherent in the loan portfolio and is based on ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current operating results. Loan losses are charged against the allowance when management believes the uncollectability of a loan is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Corporation’s strategy for credit risk management includes credit policies and underwriting criteria for all loans, as well as an overall credit limit for each customer significantly below legal lending limits. The strategy also emphasizes diversification on regional geographic and industry levels, regular credit quality reviews and management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Corporation’s methodology for assessing the appropriateness of the allowance consists of three key elements – the determination of the appropriate reserves for impaired loans accounted for under ASC 310-10, probable losses estimated from historical loss rates, and probable losses resulting from economic, environmental, qualitative or other deterioration above and beyond what is reflected in the first two components of the allowance. Where appropriate, reserves are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Corporation. Loans individually evaluated for impairment are those deemed impaired in accordance with ASC 310-10, including commercial relationships greater than $500,000 that exhibit well defined credit weaknesses. Any allowances for impaired loans are measured based on the fair value of the underlying collateral, if collateral dependent, or the present value of expected future cash flows discounted at the loan’s effective interest rate. The Corporation evaluates the collectability of principal when assessing the need for a loss accrual. Historical loss rates are applied to other commercial loans not subject to specific reserve allocations. The historical allocation for commercial loans graded pass are established by loan segments using loss rates based on the Corporation’s migration analysis. This migration analysis shows the loss rates for each segment of loans based on the loan grades at the beginning of the twelve month period. This loss rate is then applied to the current portfolio of loans in each respective loan segment. Homogenous loans, such as consumer installment and residential mortgage loans, are not individually risk graded. Reserves are established for each segment of loans using loss rates based on charge-offs for the same period as the migration analysis used for commercial loans. Historical loss allocations for commercial and consumer loans may be adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. Factors which management considers in the analysis include the effects of the national and local economies, trends in loan growth and charge-off rates, changes in mix, concentration of loans in specific industries, asset quality trends (delinquencies, charge-offs and non-accrual loans), risk management and loan administration, changes in the internal lending policies and credit standards, examination results from bank regulatory agencies and the Corporation’s internal loan review. PENSION benefits are provided to the Corporation’s employees. Its accounting policies related to pensions and other post retirement benefits reflect the guidance in ASC 715, Compensation – Retirement Benefits. The Corporation does not consolidate the assets and liabilities associated with the pension plan. Instead, the Corporation recognizes the funded status of the plan in the consolidated balance sheets. The measurement of the funded status and the annual pension expense involves actuarial and economic assumptions. Various statistical and other factors, which attempt to anticipate future events, are used in calculating the expense and liabilities related to the plans. Key factors include assumptions on the expected rates of return on plan assets, discount rates, expected rates of salary increases and health care costs and trends. The Corporation considers market conditions, including changes in investment returns and interest rates in making these assumptions. The primary assumptions used in determining the Corporation’s pension and post retirement benefit obligations and related expenses are presented in NOTE 21. PENSION AND OTHER POST RETIREMENT BENEFIT PLANS of these Notes to Consolidated Financial Statements. PREMISES AND EQUIPMENT is carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line and declining balance methods based on the estimated useful lives of the assets ranging from three to forty years . Maintenance and repairs are expensed as incurred, while major additions and improvements, which extend the useful life, are capitalized. Gains and losses on dispositions are included in current operations. FEDERAL HOME LOAN BANK STOCK is a required investment for institutions that are members of the FHLB. The Bank is a member of the FHLB of Indianapolis. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. INTANGIBLE ASSETS that are subject to amortization, including core deposit intangibles, are being amortized on both the straight-line and accelerated basis over two to ten years . Intangible assets are periodically evaluated as to the recoverability of their carrying value. GOODWILL is maintained by applying the provisions of ASC 350, Intangibles – Goodwill and Other . For purchase acquisitions, the Corporation is required to record the assets acquired, including identified intangible assets, and the liabilities assumed at their fair value, which in many instances involves estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation techniques that may include estimates of attrition, inflation, asset growth rates or other relevant factors. In addition, the determination of the useful lives for which an intangible asset will be amortized is subjective. Under ASC 350, the Corporation is required to evaluate goodwill for impairment on an annual basis, as well as on an interim basis, if events or changes indicate that the asset may be impaired, indicating that the carrying value may not be recoverable. The Corporation has historically elected to test for goodwill impairment as of October 1 of each year and has determined that no impairment exists. BANK OWNED LIFE INSURANCE has been purchased on certain employees and directors of the Corporation to offset a portion of the employee benefit costs. The Corporation records the life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement. Changes in cash surrender values and death benefits received in excess of cash surrender values are reported in non-interest income. A corporate policy is in place with defined thresholds that limit the amount of credit, interest rate and liquidity risk inherent in a BOLI portfolio. The Corporation actively monitors the overall portfolio performance along with the credit quality of the insurance carriers and the credit quality and yield of the underlying investments. OTHER REAL ESTATE OWNED consists of assets acquired through, or in lieu of, loan foreclosure and are held for sale. They are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation are included in other real estate owned and foreclosure expenses. DERIVATIVE INSTRUMENTS are carried at the fair value of the derivatives and reflects the estimated amounts that would have been received to terminate these contracts at the reporting date based upon pricing or valuation models applied to current market information. As part of the asset/liability management program, the Corporation will utilize, from time to time, interest rate floors, caps or swaps to reduce its sensitivity to interest rate fluctuations. These are derivative instruments, which are recorded as assets or liabilities in the consolidated balance sheets at fair value. Changes in the fair values of derivatives are reported in the consolidated statements of operations or AOCI depending on the use of the derivative and whether the instrument qualifies for hedge accounting. The key criterion for the hedge accounting is that the hedged relationship must be highly effective in achieving offsetting changes in those cash flows that are attributable to the hedged risk, both at inception of the hedge and on an ongoing basis. Derivatives that qualify for the hedge accounting treatment are designated as either: (1) a hedge of the fair value of the recognized asset or liability, or of an unrecognized firm commitment (a fair value hedge); or (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (a cash flow hedge). To date, the Corporation has only entered into a cash flow hedge. For cash flow hedges, changes in the fair values of the derivative instruments are reported in AOCI to the extent the hedge is effective. The gains and losses on derivative instruments that are reported in AOCI are reflected in the consolidated statements of income in the periods in which the results of operations are impacted by the variability of the cash flows of the hedged item. Generally, net interest income is increased or decreased by amounts receivable or payable with respect to the derivatives, which qualify for hedge accounting. At inception of the hedge, the Corporation establishes the method it uses for assessing the effectiveness of the hedging derivative and the measurement approach for determining the ineffective aspect of the hedge. The ineffective portion of the hedge, if any, is recognized in the consolidated statements of income. The Corporation excludes the time value expiration of the hedge when measuring ineffectiveness. The Corporation offers interest rate derivative products (e.g. interest rate swaps) to certain of its high-quality commercial borrowers. This product allows customers to enter into an agreement with the Corporation to swap their variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the risk of changes in the borrower’s interest rate or market price risk. The extension of credit incurred through the execution of these derivative products is subject to the same approvals and rigorous underwriting standards as the related traditional credit product. The Corporation limits its risk exposure to these products by entering into a mirror-image, offsetting swap agreement with a separate, well-capitalized and rated counterparty previously approved by the Credit and Asset Liability Committee. By using these interest rate swap arrangements, the Corporation is also better insulated from the interest rate risk associated with underwriting fixed-rate loans. These derivative contracts are not designated against specific assets or liabilities under ASC 815, Derivatives and Hedging , and, therefore, do not qualify for hedge accounting. The derivatives are recorded on the balance sheet at fair value and changes in fair value of both the customer and the offsetting swap agreements are recorded (and essentially offset) in non-interest income. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820, Fair Value Measurements and Disclosures ), resulting in some volatility in earnings each period. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS represent securities the Corporation routinely sells to certain treasury management customers and then repurchases these securities the next day. Securities sold under repurchase agreements are reflected as secured borrowings in the consolidated balance sheets at the amount of cash received in connection with each transaction. REVENUE RECOGNITION guidance was adopted by the Corporation on January 1, 2018. ASU 2014-09 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Corporation's revenue-generating transactions are not subject to ASU 2014-09, including revenue generated from financial instruments, such as loans, letters of credit, derivatives and investment securities, as well as revenue related to mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within the disclosures. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. Descriptions of revenue-generating activities that are within the scope of ASU 2014-09, which are presented in our income statements are as follows: Service charges on deposit accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed, which is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned monthly, representing the period which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Fiduciary activities : This represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and similar fiduciary activities. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on the market value of assets under management at month-end. Fees that are transaction-based are recognized at the point in time that the transaction is executed. Investment Brokerage Fees : The Corporation earns fees from investment brokerage services provided to its customers by a third-party service provider. The Corporation receives commissions from the third-party provider on a monthly basis based upon customer activity for the month. The fees are paid to us by the third party on a monthly basis and are recognized when received. Interchange income : The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the Visa and MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized concurrent with the transaction processing services provided to the cardholder. Gains (Losses) on Sales of OREO : The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. TRANSFERS OF FINANCIAL ASSETS are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. STOCK OPTION AND RESTRICTED STOCK AWARD PLANS are maintained by the Corporation. The compensation costs are recognized for stock options and restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the appropriate service period, which is generally two or three years . INCOME TAX in the consolidated statements of income includes deferred income tax provisions or benefits for all significant temporary differences in recognizing income and expenses for financial reporting and income tax purposes. The Corporation files consolidated income tax returns with its subsidiaries. The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2016 . The Corporation adopted the provisions of the ASC 740, Income Taxes , which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740, the Corporation did not identify any uncertain tax positions that it believes should be recognized in the financial statements. The Corporation's policy is to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. NET INCOME PER SHARE is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding, plus the dilutive effect of outstanding stock options and nonvested restricted stock. RECLASSIFICATIONS have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. RECENT ACCOUNTING CHANGES ADOPTED IN 2019 FASB Accounting Standards Update No. 2018-11 - Leases (Topic 842): Targeted Improvements - The FASB issued Accounting Standards Update (ASU) No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU was intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provided a new transition method and a practical expedient for separating components of a contract. ASU 2018-11 provided entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applied the new leases standard at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the Corporation's reporting for the comparative periods presented in the financial statements in the period of adoption is in accordance with GAAP in Topic 840, Leases. The Corporation must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments did not change the existing disclosure requirements in Topic 840 (for example, they did not create interim disclosure requirements that the Corporation previously was not required to provide). The Corporation adopted this new transition method on January 1, 2019, but did not recognize a cumulative-effect adjustment to the opening balance of retained earnings at adoption. Lease disclosures are included in NOTE 10. LEASES of these Notes to Consolidated Financial Statements. The amendments in ASU 2018-11 provided lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: • The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. • The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | ACQUISITION MBT Financial Corp. On September 1, 2019, the Corporation acquired 100 percent of MBT. MBT, a Michigan corporation, merged with and into the Corporation, whereupon the separate corporate existence of MBT ceased and the Corporation survived. Immediately following the merger, MBT's wholly-owned subsidiary, Monroe Bank & Trust, merged with and into the Bank, with the Bank continuing as the surviving bank. MBT was headquartered in Monroe, Michigan and had 20 banking centers serving the Monroe market. Pursuant to the merger agreement, each MBT shareholder received 0.275 shares of the Corporation's common stock for each outstanding share of MBT common stock held. The Corporation issued approximately 6.4 million shares of common stock, which was valued at approximately $229.9 million . The Corporation engaged in this transaction with the expectation that it would be accretive to income and add a new market area in Michigan that has a demographic profile consistent with many of the current Indiana and Ohio markets served by the Bank. Goodwill resulted from this transaction due to the expected synergies and economies of scale. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the MBT acquisition is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the acquisition date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. Fair Value Cash and cash equivalents $ 10,222 Interest-bearing time deposits 281,228 Investment securities 212,235 Loans 732,578 Premises and equipment 21,664 Federal Home Loan Bank stock 4,148 Interest receivable 3,361 Cash surrender value of life insurance 59,545 Tax asset, deferred and receivable 5,205 Other assets 6,011 Deposits (1,105,926 ) Securities sold under repurchase agreements (94,760 ) Federal Home Loan Bank advances (10,853 ) Other liabilities (9,807 ) Net tangible assets acquired 114,851 Core deposit intangible 16,527 Goodwill 98,563 Purchase price $ 229,941 Of the total purchase price, $16,527,000 was allocated to a core deposit intangible, which will be amortized over its estimated life of 10 years . The remaining purchase price was allocated to goodwill, which is not deductible for tax purposes. Acquired loan data for MBT is included in the following table: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 3,531 $ 6,840 $ 2,733 Acquired receivables not subject to ASC 310-30 $ 729,047 $ 907,210 $ 14,722 Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality . The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. Pro Forma Financial Information The results of operations of MBT have been included in the Corporation's consolidated financial statements since the acquisition date. The following schedule includes pro forma results for the year ended December 31, 2019 and 2018, as if the MBT acquisition occurred as of the beginning of the periods presented. Year Ended Year Ended Total revenue (net interest income plus other income) $ 474,891 $ 476,878 Net income available to common shareholders $ 161,228 $ 177,906 Earnings per share: Basic $ 2.89 $ 3.19 Diluted $ 2.88 $ 3.18 The pro forma information includes adjustments for interest income on loans and investments, interest expense on deposits and borrowings, premises expense for banking centers acquired and amortization of intangibles arising from the transaction and the related income tax effects. The pro forma information for the year ended December 31, 2019 includes operating revenue from MBT of $19.7 million since the date of acquisition. Additionally, $19.7 million , net of tax, of non-recurring expenses directly attributable to the MBT acquisition were included in the year ended December 31, 2019 pro forma information. The pro forma information for the year ended December 31, 2018 includes operating results from MBT as if the acquisition occurred at the beginning of the year. Additionally, $877,000 , net of tax, of non-recurring expenses directly attributable to the MBT acquisition were included in the year ended December 31, 2018 pro forma information. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time, or intended to be a projection of future results. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS The Corporation considers all liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2019 , cash and cash equivalents is defined to include cash on hand, deposits in other institutions and federal funds sold. At December 31, 2019 , the Corporation’s interest-bearing cash accounts and noninterest-bearing transaction deposits held at other institutions exceeded the $250,000 federally insured limits by approximately $190,378,000 . Each correspondent bank’s financial performance and market rating are reviewed on a quarterly basis to ensure the Corporation has deposits only at institutions providing minimal risk for those exceeding the federally insured limits. Additionally, the Corporation had approximately $39,844,000 at the Federal Home Loan Bank and Federal Reserve Bank, which are government-sponsored entities not insured by the FDIC. The Corporation is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2019 , was $78,934,000 . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and approximate market value of the Corporation's investment securities at the dates indicated were: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale at December 31, 2019 U.S. Government-sponsored agency securities $ 38,529 $ 346 $ — $ 38,875 State and municipal 859,511 41,092 807 899,796 U.S. Government-sponsored mortgage-backed securities 842,349 10,378 1,404 851,323 Corporate obligations 31 — — 31 Total available for sale 1,740,420 51,816 2,211 1,790,025 Held to maturity at December 31, 2019 U.S. Government-sponsored agency securities 15,619 1 37 15,583 State and municipal 354,115 15,151 107 369,159 U.S. Government-sponsored mortgage-backed securities 434,804 6,921 401 441,324 Foreign investment 1,500 — — 1,500 Total held to maturity 806,038 22,073 545 827,566 Total Investment Securities $ 2,546,458 $ 73,889 $ 2,756 $ 2,617,591 Available for sale at December 31, 2018 U.S. Government-sponsored agency securities $ 13,493 $ 92 $ 3 $ 13,582 State and municipal 605,994 5,995 5,854 606,135 U.S. Government-sponsored mortgage-backed securities 530,209 634 8,396 522,447 Corporate obligations 31 — — 31 Total available for sale 1,149,727 6,721 14,253 1,142,195 Held to maturity at December 31, 2018 U.S. Government-sponsored agency securities 22,618 — 545 22,073 State and municipal 197,909 2,858 872 199,895 U.S. Government-sponsored mortgage-backed securities 268,860 713 3,323 266,250 Foreign investment 1,000 — 1 999 Total held to maturity 490,387 3,571 4,741 489,217 Total Investment Securities $ 1,640,114 $ 10,292 $ 18,994 $ 1,631,412 The change in unrealized gains/losses from December 31, 2018 to December 31, 2019 is primarily due to the changes in interest rates. The longer term points on the yield curve have declined since year-end which increases the fair value of securities held in the portfolio. The following table shows the Corporation’s gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018 : Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2019 State and municipal $ 76,273 $ 807 $ — $ — $ 76,273 $ 807 U.S. Government-sponsored mortgage-backed securities 127,673 1,326 20,796 78 148,469 1,404 Total Temporarily Impaired Available for Sale Securities 203,946 2,133 20,796 78 224,742 2,211 Temporarily Impaired Held to Maturity Securities at December 31, 2019 U.S. Government-sponsored agency securities 3,016 4 12,467 33 15,483 37 State and municipal 22,947 107 — — 22,947 107 U.S. Government-sponsored mortgage-backed securities 124,253 364 7,991 37 132,244 401 Total Temporarily Impaired Held to Maturity Securities 150,216 475 20,458 70 $ 170,674 545 Total Temporarily Impaired Investment Securities $ 354,162 $ 2,608 $ 41,254 $ 148 $ 395,416 $ 2,756 Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2018 U.S. Government-sponsored agency securities $ 1,490 $ 3 $ — $ — $ 1,490 $ 3 State and municipal 234,431 3,958 38,028 1,896 272,459 5,854 U.S. Government-sponsored mortgage-backed securities 196,601 2,400 217,121 5,996 413,722 8,396 Total Temporarily Impaired Available for Sale Securities 432,522 6,361 255,149 7,892 687,671 14,253 Temporarily Impaired Held to Maturity Securities at December 31, 2018 U.S. Government-sponsored agency securities — — 22,073 545 22,073 545 State and municipal 14,952 369 16,786 503 31,738 872 U.S. Government-sponsored mortgage-backed securities 102,828 876 87,268 2,447 190,096 3,323 Foreign investment — — 999 1 999 1 Total Temporarily Impaired Held to Maturity Securities 117,780 1,245 127,126 3,496 244,906 4,741 Total Temporarily Impaired Investment Securities $ 550,302 $ 7,606 $ 382,275 $ 11,388 $ 932,577 $ 18,994 Certain investments in debt securities are reported in the financial statements at amounts less than their historical cost. The historical cost of these investments totaled $398,172,000 and $951,571,000 at December 31, 2019 and 2018 , respectively. Total fair value of these investments was $395,416,000 and $932,577,000 , which was approximately 15.2 and 57.1 percent of the Corporation's available for sale and held to maturity investment portfolio at December 31, 2019 and 2018 , respectively. The Corporation's management believes the decline in fair value for these securities was temporary. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income during the period the OTTI is identified. The Corporation’s management has evaluated all securities with unrealized losses for OTTI and concluded no OTTI existed at December 31, 2019 . In determining the fair value of the investment securities portfolio, the Corporation utilizes a third party for portfolio accounting services, including market value input, for those securities classified as Level I and Level II in the fair value hierarchy. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor classified these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis; and (b) actual gains or loss resulting from the sale of certain securities has proven the data to be accurate over time. Fair value of securities classified as Level 3 in the valuation hierarchy was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. U.S. Government-Sponsored Mortgage-Backed Securities The unrealized losses on the Corporation's investment in mortgage-backed securities were a result of interest rate changes. The Corporation expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2019 . As noted in the table above, the mortgage-backed securities portfolio contains unrealized losses of $1,404,000 on twenty-seven securities and $401,000 on fifteen securities in the available for sale and held to maturity portfolios, respectively. All these securities are issued by a government-sponsored entity. State and Municipal Securities and U.S. Government-Sponsored Agency Securities The unrealized losses on the Corporation's investments in securities of state and political subdivisions and U.S. Government-Sponsored Agency securities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2019 . As noted in the table above, the state and municipal securities portfolio contains unrealized losses of $807,000 on thirty-eight securities and $107,000 on eighteen securities in the available for sale and held to maturity portfolios, respectively. The U.S. Government-Sponsored Agency securities portfolio contains no unrealized loses in the available for sale portfolio, and $37,000 on three securities in the held to maturity portfolio. The amortized cost and fair value of securities available for sale and held to maturity at December 31, 2019 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2019 Due in one year or less $ 1,134 $ 1,136 $ 9,920 $ 10,105 Due after one through five years 5,031 5,141 45,197 45,654 Due after five through ten years 74,745 76,920 84,153 88,844 Due after ten years 817,161 855,505 231,964 241,639 898,071 938,702 371,234 386,242 U.S. Government-sponsored mortgage-backed securities 842,349 851,323 434,804 441,324 Total Investment Securities $ 1,740,420 $ 1,790,025 $ 806,038 $ 827,566 Securities with a carrying value of approximately $503,427,000 , $416,155,000 and $475,999,000 were pledged at December 31, 2019 , 2018 and 2017 , respectively, to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. The book value of securities sold under agreements to repurchase amounted to $182,856,000 at December 31, 2019, and $116,691,000 at December 31, 2018. Gross gains and losses on the sales and redemptions of available for sale securities for the for the years indicated are shown below. 2019 2018 2017 Sales and Redemptions of Available for Sale Securities: Gross gains $ 4,415 $ 4,269 $ 2,681 Gross losses — — 50 |
Loans and Allowance
Loans and Allowance | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance | LOANS AND ALLOWANCE The Corporation's primary lending focus is small business and middle market commercial, commercial real estate and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio, the allowance for loan losses and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale at December 31, 2019 and 2018 , were $9,037,000 and $4,778,000 , respectively. The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the years indicated: December 31, 2019 December 31, 2018 Commercial and industrial loans $ 2,109,879 $ 1,726,664 Agricultural production financing and other loans to farmers 93,861 92,404 Real estate loans: Construction 787,568 545,729 Commercial and farmland 3,052,698 2,832,102 Residential 1,143,217 966,421 Home equity 588,984 528,157 Individuals' loans for household and other personal expenditures 135,989 99,788 Public finance and other commercial loans 547,114 433,202 Loans 8,459,310 7,224,467 Allowance for loan losses (80,284 ) (80,552 ) Net Loans $ 8,379,026 $ 7,143,915 Allowance, Credit Quality and Loan Portfolio The Corporation maintains an allowance for loan losses to cover probable credit losses identified during its loan review process. Management believes that the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio at December 31, 2019 . The process for determining the adequacy of the allowance for loan losses is critical to the Corporation’s financial results. It requires management to make difficult, subjective and complex judgments to estimate the effect of uncertain matters. The allowance for loan losses considers current factors, including economic conditions and ongoing internal and external examinations, and will increase or decrease as deemed necessary to ensure it remains adequate. In addition, the allowance as a percentage of charge-offs and nonperforming loans will change at different points in time based on credit performance, portfolio mix and collateral values. The allowance for loan losses is maintained through the provision for loan losses, which is a charge against earnings. The allowance is increased by provision expense and decreased by charge-offs less recoveries. All charge-offs are approved by the Bank's senior credit officers and in accordance with established policies. The Bank charges off a loan when a determination is made that all or a portion of the loan is uncollectible. The amount provided for loan losses in a given period may be greater than or less than net loan losses experienced during the period, and is based on management’s judgment as to the appropriate level of the allowance for loan losses. The determination of the provision amount is based on management’s ongoing review and evaluation of the loan portfolio, including an internally administered loan "watch" list and independent loan reviews. The evaluation takes into consideration identified credit problems, the possibility of losses inherent in the loan portfolio that are not specifically identified and management’s judgment as to the impact of the current environment and economic conditions on the portfolio. The allowance consists of specific impairment reserves as required by ASC 310-10-35, a component for historical losses in accordance with ASC 450 and the consideration of current environmental factors in accordance with ASC 450. A loan is deemed impaired when, based on current information or events, it is probable that all amounts due of principal and interest according to the contractual terms of the loan agreement will not be collected. The historical loss allocation for loans not deemed impaired according to ASC 450 is the product of the volume of loans within the non-impaired criticized and non-criticized risk grade classifications, each segmented by call code, and the historical loss factor for each respective classification and call code segment. The historical loss factors are based upon actual loss experience within each risk and call code classification. The historical look back period for non-criticized loans looks to the most recent rolling-four-quarter average and aligns with the look back period for non-impaired criticized loans. Each of the rolling four quarter periods used to obtain the average, include all charge-offs for the previous twelve-month period, therefore the historical look back period includes seven quarters. Criticized loans are grouped based on the risk grade assigned to the loan. Loans with a special mention grade are assigned a loss factor, and loans with a classified grade but not impaired are assigned a separate loss factor. The loss factor computation for this allocation includes a segmented historical loss migration analysis of risk grades to charge-off. In addition to the specific reserves and historical loss components of the allowance, consideration is given to various environmental factors to ensure that losses inherent in the portfolio are reflected in the allowance for loan losses. The environmental component adjusts the historical loss allocations for non-impaired loans to reflect relevant current conditions that, in management's opinion, have an impact on loss recognition. Environmental factors that management reviews in the analysis include: national and local economic trends and conditions; trends in growth in the loan portfolio and growth in higher risk areas; levels of, and trends in, delinquencies and non-accruals; experience and depth of lending management and staff; adequacy of, and adherence to, lending policies and procedures including those for underwriting; industry concentrations of credit; and adequacy of risk identification systems and controls through the internal loan review and internal audit processes. In conformance with ASC 805 and ASC 820, loans purchased after December 31, 2008 are recorded at the acquisition date fair value. Such loans are included in the allowance to the extent a specific impairment is identified that exceeds the fair value adjustment on an impaired loan or the historical loss and environmental factor analysis indicates losses inherent in a purchased portfolio exceeds the fair value adjustment on the portion of the purchased portfolio not deemed impaired. At December 31, 2019, the allowance for loan losses was $80,284,000 , a decrease of $268,000 from the December 31, 2018 balance of $80,552,000 . Net charge-offs for the twelve months ended December 31, 2019, were $3,068,000 , an increase of $1,361,000 from the same period in 2018. The provision for loan losses for the twelve months ended December 31, 2019 was $2,800,000 , a decrease of $4,427,000 from the same period in 2018. The determination of the provision for loan losses in any period is based on management’s continuing review and evaluation of the loan portfolio, and its judgment as to the impact of current economic conditions on the portfolio. The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2019, 2018, and 2017: Twelve Months Ended December 31, 2019 Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Balances, December 31, 2018 $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Provision for losses 733 1,555 239 273 2,800 Recoveries on loans 1,244 1,289 401 619 3,553 Loans charged off (1,732 ) (3,675 ) (569 ) (645 ) (6,621 ) Balances, December 31, 2019 $ 32,902 $ 28,778 $ 4,035 $ 14,569 $ 80,284 Twelve Months Ended December 31, 2018 Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Balances, December 31, 2017 $ 30,420 $ 27,343 $ 3,732 $ 13,537 $ 75,032 Provision for losses 2,097 2,482 679 1,969 7,227 Recoveries on loans 2,456 2,525 302 993 6,276 Loans charged off (2,316 ) (2,741 ) (749 ) (2,177 ) (7,983 ) Balances, December 31, 2018 $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Twelve Months Ended December 31, 2017 Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Balances, December 31, 2016 $ 27,698 $ 23,661 $ 2,923 $ 11,755 $ 66,037 Provision for losses 2,515 3,159 1,078 2,391 9,143 Recoveries on loans 1,590 2,260 324 706 4,880 Loans charged off (1,383 ) (1,737 ) (593 ) (1,315 ) (5,028 ) Balances, December 31, 2017 $ 30,420 $ 27,343 $ 3,732 $ 13,537 $ 75,032 The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated. December 31, 2019 Commercial Commercial Consumer Residential Total Allowance balances: Individually evaluated for impairment $ — $ 231 $ — $ 458 $ 689 Collectively evaluated for impairment 32,902 28,547 4,035 14,111 79,595 Total allowance for loan losses $ 32,902 $ 28,778 $ 4,035 $ 14,569 $ 80,284 Loan balances: Individually evaluated for impairment $ 457 $ 8,728 $ 4 $ 2,520 $ 11,709 Collectively evaluated for impairment 2,748,681 3,821,660 135,985 1,727,966 8,434,292 Loans acquired with deteriorated credit quality 1,716 9,878 — 1,715 13,309 Loans $ 2,750,854 $ 3,840,266 $ 135,989 $ 1,732,201 $ 8,459,310 December 31, 2018 Commercial Commercial Consumer Residential Total Allowance balances: Individually evaluated for impairment $ — $ 1,435 $ 1 $ 436 $ 1,872 Collectively evaluated for impairment 32,657 28,174 3,963 13,886 78,680 Total allowance for loan losses $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Loan balances: Individually evaluated for impairment $ 1,838 $ 17,756 $ 18 $ 2,413 $ 22,025 Collectively evaluated for impairment 2,248,330 3,347,686 99,770 1,490,872 7,186,658 Loans acquired with deteriorated credit quality 2,102 12,389 — 1,293 15,784 Loans $ 2,252,270 $ 3,377,831 $ 99,788 $ 1,494,578 $ 7,224,467 Loans individually evaluated for impairment are comprised of commercial and consumer loans deemed impaired in accordance with ASC 310-10. This includes loans acquired with subsequent deterioration of credit quality totaling $2,819,000 with $124,000 of related allowance for loan losses at December 31, 2019 and $1,541,000 with no related allowance for loan losses at December 31, 2018. The risk characteristics of the Corporation’s material portfolio segments are as follows: Commercial Commercial lending is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Consumer and Residential With respect to residential loans that are secured by 1-4 family residences, which are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans, such as small installment loans and certain lines of credit, are unsecured. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment on loans secured by 1-4 family residences can be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectible. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. Payments received on impaired accruing or delinquent loans are applied to interest income as accrued. The following table summarizes the Corporation’s non-accrual loans by loan class for the years indicated: December 31, 2019 December 31, 2018 Commercial and industrial loans $ 1,255 $ 1,803 Agriculture production financing and other loans to farmers 183 679 Real estate loans: Construction 977 8,667 Commercial and farmland 7,007 8,156 Residential 5,062 4,966 Home equity 1,421 1,481 Individuals' loans for household and other personal expenditures 44 42 Public Finance and other commercial loans — 354 Total $ 15,949 $ 26,148 Impaired loans include loans deemed impaired according to the guidance set forth in ASC 310-10. Commercial loans under $500,000 and consumer loans, with the exception of troubled debt restructures, are not individually evaluated for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method for measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. The following tables show the composition of the Corporation’s impaired loans, related allowance and interest income recognized while impaired by loan class for the years indicated: December 31, 2019 Unpaid Principal Recorded Related Average Recorded Investment Interest Income Recognized Impaired loans with no related allowance: Commercial and industrial loans $ 320 $ 320 $ — $ 320 $ — Agriculture production financing and other loans to farmers 299 137 — 298 — Real estate loans: Construction 1,206 970 — 1,229 — Commercial and farmland 8,037 5,849 — 6,000 156 Residential 93 76 — 77 3 Total $ 9,955 $ 7,352 $ — $ 7,924 $ 159 Impaired loans with related allowance: Real estate loans: Commercial and farmland $ 2,648 $ 1,909 $ 231 $ 1,909 $ — Residential 2,070 2,044 383 2,083 63 Home equity 417 400 75 409 12 Individuals' loans for household and other personal expenditures 4 4 — 4 $ — Total $ 5,139 $ 4,357 $ 689 $ 4,405 $ 75 Total Impaired Loans $ 15,094 $ 11,709 $ 689 $ 12,329 $ 234 December 31, 2018 Unpaid Principal Recorded Related Average Recorded Investment Interest Income Recognized Impaired loans with no related allowance: Commercial and industrial loans $ 828 $ 806 $ — $ 833 $ — Agriculture production financing and other loans to farmers 679 679 — 679 — Real estate loans: Construction 1,352 614 — 835 — Commercial and farmland 11,176 8,994 — 12,975 165 Residential 118 100 — 101 3 Home equity 49 48 — 48 — Public finance and other commercial loans 353 353 — 353 — Total $ 14,555 $ 11,594 $ — $ 15,824 $ 168 Impaired loans with related allowance: Real estate loans: Construction $ 7,978 $ 7,977 $ 1,429 $ 7,977 $ — Commercial and farmland 171 171 6 171 — Residential 1,958 1,907 362 1,915 57 Home equity 376 358 74 365 10 Individuals' loans for household and other personal expenditures 18 18 1 20 1 Total $ 10,501 $ 10,431 $ 1,872 $ 10,448 $ 68 Total Impaired Loans $ 25,056 $ 22,025 $ 1,872 $ 26,272 $ 236 December 31, 2017 Unpaid Principal Recorded Related Average Recorded Investment Interest Income Recognized Impaired loans with no related allowance: Commercial and industrial loans $ 7,611 $ 1,536 $ — $ 3,839 $ — Agriculture production financing and other loans to farmers 732 700 — 762 — Real estate loans: Commercial and farmland 16,758 15,163 — 17,495 360 Residential 833 519 — 635 — Home equity 40 8 — 14 — Individuals' loans for household and other personal expenditures 5 5 — 7 — Total $ 25,979 $ 17,931 $ — $ 22,752 $ 360 Impaired loans with related allowance: Commercial and industrial loans 812 782 552 1,517 — Agriculture production financing and other loans to farmers 357 327 114 327 — Real estate loans: Commercial and farmland 2,988 2,269 567 2,379 — Residential 1,616 1,572 327 1,580 28 Home equity 350 330 77 332 11 Total $ 6,123 $ 5,280 $ 1,637 $ 6,135 $ 39 Total Impaired Loans $ 32,102 $ 23,211 $ 1,637 $ 28,887 $ 399 Impaired loans in the above tables do not include loans accounted for under ASC 310-30, or any other loan, unless deemed impaired in accordance with ASC 310-10. As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge-offs, (iii) non-performing loans, (iv) covenant failures and (v) the general national and local economic conditions. The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows: • Pass - Loans that are considered to be of acceptable credit quality. • Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. The key distinctions of this category's classification are that it is indicative of an unwarranted level of risk; and weaknesses are considered “potential”, not “defined”, impairments to the primary source of repayment. Examples include businesses that may be suffering from inadequate management, loss of key personnel or significant customer or litigation. • Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Other characteristics may include: o the likelihood that a loan will be paid from the primary source of repayment is uncertain or financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss, o the primary source of repayment is gone, and the Corporation is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees, o loans have a distinct possibility that the Corporation will sustain some loss if deficiencies are not corrected, o unusual courses of action are needed to maintain a high probability of repayment, o the borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments, o the Corporation is forced into a subordinated or unsecured position due to flaws in documentation, o loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms, o the Corporation is seriously contemplating foreclosure or legal action due to the apparent deterioration of the loan, and o there is significant deterioration in market conditions to which the borrower is highly vulnerable. • Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. Other credit characteristics may include the primary source of repayment is gone or there is considerable doubt as to the quality of the secondary sources of repayment. The possibility of loss is high, but because of certain important pending factors that may strengthen the loan, loss classification is deferred until the exact status of repayment is known. • Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the years indicated. Consumer non-performing loans include accruing consumer loans 90-days or more delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and the probability, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. December 31, 2019 Commercial Pass Commercial Special Mention Commercial Substandard Commercial Doubtful Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,956,985 $ 81,179 $ 71,715 $ — $ — $ — $ — $ 2,109,879 Agriculture production financing and other loans to farmers 78,558 5,626 9,677 — — — — 93,861 Real estate loans: Construction 749,249 1,613 1,634 — — 35,072 — 787,568 Commercial and farmland 2,894,366 57,776 98,575 — — 1,981 — 3,052,698 Residential 196,710 877 8,075 — — 932,743 4,812 1,143,217 Home equity 24,211 257 682 — — 562,507 1,327 588,984 Individuals' loans for household and other personal expenditures — — — — — 135,944 45 135,989 Public finance and other commercial loans 547,114 — — — — — — 547,114 Loans $ 6,447,193 $ 147,328 $ 190,358 $ — $ — $ 1,668,247 $ 6,184 $ 8,459,310 December 31, 2018 Commercial Pass Commercial Special Mention Commercial Substandard Commercial Doubtful Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,660,879 $ 23,246 $ 42,539 $ — — $ — $ — $ 1,726,664 Agriculture production financing and other loans to farmers 78,446 5,966 7,992 — — — — 92,404 Real estate loans: Construction 492,358 2,185 24,224 — — 25,419 1,543 545,729 Commercial and farmland 2,669,491 76,037 84,288 — — 2,285 1 2,832,102 Residential 170,075 7,373 2,076 — — 782,080 4,817 966,421 Home equity 24,653 535 457 — — 500,996 1,516 528,157 Individuals' loans for household and other personal expenditures — — — — — 99,741 47 99,788 Public finance and other commercial loans 432,849 — 353 — — — — 433,202 Loans $ 5,528,751 $ 115,342 $ 161,929 $ — $ — $ 1,410,521 $ 7,924 $ 7,224,467 The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated: December 31, 2019 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 2,105,445 $ 3,039 $ 136 $ 4 $ 1,255 $ 4,434 $ 2,109,879 Agriculture production financing and other loans to farmers 93,678 — — — 183 183 93,861 Real estate loans: Construction 784,961 1,630 — — 977 2,607 787,568 Commercial and farmland 3,043,318 2,324 49 — 7,007 9,380 3,052,698 Residential 1,133,476 4,290 367 22 5,062 9,741 1,143,217 Home equity 584,023 2,960 538 42 1,421 4,961 588,984 Individuals' loans for household and other personal expenditures 135,399 440 105 1 44 590 135,989 Public finance and other commercial loans 547,114 — — — — — 547,114 Loans $ 8,427,414 $ 14,683 $ 1,195 $ 69 $ 15,949 $ 31,896 $ 8,459,310 December 31, 2018 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,723,337 $ 1,093 $ 182 $ 249 $ 1,803 $ 3,327 $ 1,726,664 Agriculture production financing and other loans to farmers 89,440 2,285 — — 679 2,964 92,404 Real estate loans: Construction 535,520 64 — 1,478 8,667 10,209 545,729 Commercial and farmland 2,822,515 1,253 178 — 8,156 9,587 2,832,102 Residential 959,252 1,756 430 17 4,966 7,169 966,421 Home equity 524,198 2,164 207 107 1,481 3,959 528,157 Individuals' loans for household and other personal expenditures 99,499 179 64 4 42 289 99,788 Public finance and other commercial loans 432,848 — — — 354 354 433,202 Loans $ 7,186,609 $ 8,794 $ 1,061 $ 1,855 $ 26,148 $ 37,858 $ 7,224,467 On occasion, borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays including debt payments. Concurrently, in an effort to preserve and protect its earning assets, specifically troubled loans, the Corporation works to maintain its relationship with certain customers who are experiencing financial difficulty by contractually modifying the borrower's debt agreement with the Corporation. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a trouble debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be paid. The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the periods ended December 31, 2019 and 2018 : December 31, 2019 Pre-Modification Post-Modification Number Real estate loans: Residential $ 636 $ 629 11 Home equity 56 61 2 Total $ 692 $ 690 13 December 31, 2018 Pre-Modification Post-Modification Number Real estate loans: Commercial and farmland $ 85 $ 85 1 Residential 490 487 11 Home equity 81 81 3 Individuals' loans for household and other personal expenditures 65 66 3 Total $ 721 $ 719 18 The following tables summarize the recorded investment of troubled debt restructures as of December 31, 2019 and 2018 , by modification type, that occurred during the years indicated: December 31, 2019 Term Rate Combination Total Real estate loans: Residential $ 95 $ 87 $ 432 $ 614 Home equity — — 61 61 Total $ 95 $ 87 $ 493 $ 675 December 31, 2018 Term Rate Combination Total Real estate loans: Commercial and farmland $ 85 — — $ 85 Residential — $ 209 $ 239 448 Home equity 106 74 — 180 Individuals' loans for household and other personal expenditures 58 6 — 64 Total $ 249 $ 289 $ 239 $ 777 Loans secured by 1- 4 family residential real estate made up 100 percent of the post-modification balances of the troubled debt restructured loans that occurred during the twelve months ending December 31, 2019 . The same classification made up 79 percent of the post-modification balance of the troubled debt restructured loans for the twelve months ending December 31, 2018. The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2019 and 2018 , that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. Twelve Months Ended December 31, 2019 Number of Loans Recorded Balance Real estate loans: Residential 1 $ 37 Total 1 $ 37 Twelve Months Ended December 31, 2018 Number of Loans Recorded Balance Real estate loans: Residential 2 $ 75 Total 2 $ 75 For potential consumer loan restructures, impairment evaluation occurs prior to modification. Any subsequent impairment is addressed through the charge-off process or through a specific reserve. Consumer troubled debt restructures are generally included in the general historical allowance for loan loss at the post modification balance. Consumer non-accrual and delinquent troubled debt restructures are also considered in the calculation of the non-accrual and delinquency trend environmental allowance allocation. Consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $1,033,000 and $800,000 at December 31, 2019 and 2018, respectively. Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for impairment under ASC 310. Any resulting specific reserves are included in the allowance for loan losses. Commercial 30 - 89 day delinquent troubled debt restructures are included in the calculation of the delinquency trend environmental allowance allocation. With the exception of the acquired loans excluded from the allowance for loan losses, all commercial non-impaired loans, including non-accrual and 90-days or more delinquents, are included in the ASC 450 loss estimate. |
Accounting for Certain Loans Ac
Accounting for Certain Loans Acquired in a Purchase | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Accounting for Certain Loans Acquired in a Purchase | ACCOUNTING FOR CERTAIN LOANS ACQUIRED IN A PURCHASE Purchase Credit Impaired Loans are included in NOTE 5. LOANS AND ALLOWANCE of these Notes to Consolidated Financial Statements. As described in NOTE 5, purchased loans are recorded at the acquisition date fair value, which could result in a fair value discount or premium. Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality . The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. The outstanding balance of purchased credit impaired loans as of December 31, 2019 was $25.3 million which had a carrying amount of $16.1 million and $124,000 of related allowance for loan losses. As of December 31, 2018 , the outstanding balance of purchased credit impaired loans was $26.3 million with a carrying amount of $17.3 million with no required allowance for loan losses. As customer cash flow expectations improve, nonaccretable yield can be reclassified to accretable yield. The accretable amount, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below. Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 Beginning balance $ 2,143 $ 2,890 $ 3,950 Additions 576 — 1,608 Accretion (2,387 ) (4,118 ) (6,749 ) Reclassification from nonaccretable 1,965 3,387 4,748 Disposals (165 ) (16 ) (667 ) Ending balance $ 2,132 $ 2,143 $ 2,890 The following table presents loans acquired during the period ending December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected. There were no loans acquired during the period ending December 31, 2018. 2019 MBT Contractually required payments receivable at acquisition date $ 6,840 Nonaccretable difference 2,733 Expected cash flows at acquisition date 4,107 Accretable difference 576 Basis in loans at acquisition date $ 3,531 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT The following table summarizes the Corporation's premises and equipment as of December 31, 2019 and 2018 : 2019 2018 Cost at December 31: Land $ 25,227 $ 21,762 Buildings and Leasehold Improvements 162,391 125,366 Equipment 124,327 86,498 Total Cost 311,945 233,626 Accumulated Depreciation and Amortization (198,890 ) (140,206 ) Net $ 113,055 $ 93,420 The MBT acquisition on September 1, 2019 resulted in additions to premises and equipment of $21,664,000 . Details regarding the acquisition are discussed in NOTE 2. ACQUISITION of these Notes to Consolidated Financial Statements. The Corporation is committed under various non-cancelable lease contracts for certain subsidiary office facilities and equipment. Details regarding the lease contracts are discussed in NOTE 10. LEASES of these Notes to Consolidated Financial Statements. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill is recorded on the acquisition date of an entity. During the one-year measurement period, the Corporation may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. The MBT acquisition on September, 1, 2019 resulted in $98,563,000 of goodwill, which includes an addition of $719,000 . This addition was recorded in the fourth quarter of 2019 as a measurement period adjustment. Details regarding the MBT acquisition is discussed in NOTE 2. ACQUISITION of these Notes to Consolidated Financial Statements. No impairment loss was recorded in 2019 or 2018. The Corporation tested goodwill for impairment during 2019 and 2018. In both valuations, the fair value exceeded the Corporation’s carrying value; therefore, it was concluded goodwill is not impaired. For additional details related to impairment testing, see the “GOODWILL” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K. 2019 2018 Balance, January 1 $ 445,355 $ 445,355 Goodwill acquired 97,844 — Measurement period adjustment 719 $ — Balance, December 31 $ 543,918 $ 445,355 |
Other Intangibles
Other Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangibles | OTHER INTANGIBLES Core deposit intangibles and other intangibles are recorded on the acquisition date of an entity. During the one-year measurement period, the Corporation may record subsequent adjustments to these intangibles for provisional amounts recorded at the acquisition date. The MBT acquisition on September 1, 2019 resulted in a core deposit intangible of $16,527,000 . Details regarding the MBT acquisition are discussed in NOTE 2. ACQUISITION of these Notes to Consolidated Financial Statements. The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below. 2019 2018 Gross carrying amount $ 85,869 $ 85,869 Core deposit intangible acquired 16,527 — Accumulated amortization (67,434 ) (61,440 ) Core Deposit and Other Intangibles $ 34,962 $ 24,429 The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of two to ten years . Amortization expense for the years ended December 31, 2019 , 2018 and 2017 , was $5,994,000 , $6,719,000 and $5,647,000 , respectively. Estimated future amortization expense is summarized as follows: Amortization Expense 2020 $ 5,987 2021 5,429 2022 5,027 2023 4,827 2024 4,241 After 2024 9,451 $ 34,962 |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Corporation adopted ASU No. 2016-02 - Leases (Topic 842) , as amended, as of January 1, 2019 for certain retail branches, office space, land and equipment. The Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. Operating leases are included in the operating lease right-of use ("ROU") asset, which is included in other assets and the lease liability is included in other liabilities in our condensed balance sheets. The Corporation does not have any finance leases. ROU assets represent the Corporation's right to use an underlying asset for the lease term and lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the Corporation's leases do not provide an implicit rate, the Corporation typically uses its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. Lease terms may include options to extend or terminate the lease. The exercise of such lease renewal options is at the Corporation's sole discretion and is not included in the present value of lease obligations unless it is reasonably certain that the option will be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of the Corporation's lease agreements include rental payments adjusted periodically for inflation. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Corporation does not have any material sublease agreements. Supplemental balance sheet information related to leases is presented in the table below as of December 31, 2019 . December 31, 2019 Operating lease assets $ 20,747 Total lease assets $ 20,747 Operating lease liabilities $ 21,421 Total Lease liabilities $ 21,421 Weighted average remaining lease term (years) Operating leases 8.9 Weighted average discount rate Operating leases 3.4 % The table below presents the components of lease expense for the period indicated. Twelve Months Ended December 31, 2019 Lease Cost: Operating lease cost $ 3,617 Short-term lease cost 204 Variable lease cost 948 Sublease income $ (13 ) Total lease cost $ 4,756 Supplemental cash flow information related to leases is presented in the tables below. Maturity of lease liabilities Operating Leases 2020 $ 3,434 2021 3,157 2022 3,033 2023 2,654 2024 2,585 2025 and after 10,198 Total lease payments $ 25,061 Less: Present value discount 3,640 Present value of lease liabilities $ 21,421 Other Information Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,422 ROU assets obtained in exchange for new operating lease liabilities $ 23,529 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS The composition of the deposit portfolio is included in the table below for the years indicated: December 31, 2019 December 31, 2018 Demand deposits $ 5,250,568 $ 3,985,178 Savings deposits 2,896,177 2,282,701 Certificates and other time deposits of $100,000 or more 736,843 593,592 Other certificates and time deposits 741,759 646,682 Brokered deposits 214,609 246,440 Total deposits $ 9,839,956 $ 7,754,593 At December 31, 2019 and 2018 , deposits exceeding the FDIC's Standard Maximum Deposit Insurance Amount of $250,000 were $5.1 billion and $3.8 billion , respectively. At December 31, 2019 , the contractual maturities of time deposits are summarized as follows: Certificates and Other Time Deposits 2020 $ 1,489,274 2021 118,919 2022 47,731 2023 24,636 2024 11,934 After 2024 717 $ 1,693,211 |
Transfers Accounted for as Secu
Transfers Accounted for as Secured Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Transfers Accounted for as Secured Borrowings | TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of December 31, 2019 and 2018 were: December 31, 2019 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 178,732 $ — $ 7,672 $ 1,542 $ 187,946 December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 104,883 $ 1,014 $ 7,615 $ — $ 113,512 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS The following table summarizes the Corporation's borrowings as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Federal funds purchased $ 55,000 $ 104,000 Securities sold under repurchase agreements 187,946 113,512 Federal Home Loan Bank advances 351,072 314,986 Subordinated debentures and term loans 138,685 138,463 Total Borrowings $ 732,703 $ 670,961 Securities sold under repurchase agreements consist of obligations of the Bank to other parties and are secured by U.S. Government-Sponsored Enterprise obligations. The maximum amount of outstanding agreements at any month-end during 2019 and 2018 totaled $191,603,000 and $143,016,000 , respectively, and the average of such agreements totaled $136,274,000 and $124,762,000 during 2019 and 2018 , respectively. Contractual maturities of borrowings as of December 31, 2019 , are as follows: Maturities in Years Ending December 31: Federal Funds Purchased Securities Sold Federal Home Subordinated 2020 $ 55,000 $ 187,946 $ 41,370 $ — 2021 — — 55,097 — 2022 — — 95,097 — 2023 — — 115,097 — 2024 — — 97 — After 2024 — — 44,314 142,322 ASC 805 fair value adjustments at acquisition — — — (3,637 ) $ 55,000 $ 187,946 $ 351,072 $ 138,685 The terms of a security agreement with the FHLB require the Corporation to pledge, as collateral for advances, qualifying first mortgage loans, investment securities and multi-family loans in an amount equal to at least 145 percent of these advances depending on the type of collateral pledged. At December 31, 2019, the outstanding FHLB advances had interest rates from 1.07 to 5.09 percent and are subject to restrictions or penalties in the event of prepayment. The total available remaining borrowing capacity from the FHLB at December 31, 2019 , was $638,668,000 . As of December 31, 2019 , the Corporation had $55,000,000 of putable advances with the FHLB. Subordinated Debentures and Term Loans. As of December 31, 2019 and 2018 , subordinated debentures and term loans totaled $138,685,000 and $ 138,463,000 , respectively. • First Merchants Capital Trust II. The subordinated debenture was entered into on July 2, 2007 for $56,702,000 . On August 10, 2015, the Corporation completed the cancellation of $5 million of subordinated debentures at a gain of $1,250,000 . As of December 31, 2019 , $51,702,000 of subordinated debentures remain outstanding with a maturity date of September 15, 2037. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. Interest was fixed at 6.495 percent for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus 1.56 percent , reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2019 and 2018 was 3.45 percent and 4.35 percent , respectively. The Corporation holds all of the outstanding common securities of First Merchants Capital Trust II. • Ameriana Capital Trust I. On December 31, 2015 the Corporation acquired Ameriana Capital Trust I in conjunction with its acquisition of Ameriana Bancorp, Inc. The subordinated debentures of Ameriana Capital Trust I were entered into in March 2006 for $10,310,000 and have a maturity of March 2036. Ameriana could not redeem the debenture prior to March 2011, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. The interest rate is equal to the three-month LIBOR plus 1.50 percent , reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2019 and 2018 was 3.39 percent and 4.29 percent , respectively. The Corporation holds all of the outstanding common securities of Ameriana Capital Trust I. • Grabill Capital Trust I. On July 14, 2017 the Corporation acquired Grabill Capital Trust I in conjunction with its acquisition of Independent Alliance Banks, Inc. The subordinated debentures of Grabill Capital Trust I were entered into in June 2004 for $10,310,000 and have a maturity of July 23, 2034. IAB could not redeem the debenture prior to July 2009, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. The interest rate is equal to the three-month LIBOR plus 2.60 percent , reset quarterly. Interest is payable in January, April, July and October of each year. The interest rate at December 31, 2019 and 2018 was 4.53 percent and 5.08 percent , respectively. The Corporation holds all of the outstanding common securities of Grabill Capital Trust I. • On November 1, 2013, the Corporation completed the private issuance and sale to four institutional investors of an aggregate of $70 million of debt comprised of (a) 5.00 percent Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million (the "Senior Debt") and (b) 6.75 percent Fixed-to-Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of $65 million (the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten ( 10 ) years and will become floating thereafter. Once the rates convert to floating on October 30, 2023, the Senior Debt will have an annual floating rate equal to the three-month LIBOR plus 2.345 percent and the Subordinated Debt will have an annual floating rate equal to the three-month LIBOR plus 4.095 percent . The Corporation has an option to redeem the Subordinated Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Subordinated Notes, plus accrued and unpaid interest to the date of the redemption. The option of redemption is subject to the approval of the Federal Reserve Board. The Corporation has an option to redeem the Senior Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Senior Notes, plus accrued and unpaid interest to the date of the redemption; provided, however, that no Subordinated Notes (as defined in the Issuing and Paying Agency Agreement) may remain outstanding subsequent to any early redemption of Senior Notes. The Subordinated Debt and the Senior Debt options to redeem begin with the interest payment date on October 30, 2023, or on any scheduled interest payment date thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2019 and 2018 the Corporation was in compliance with these covenants. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash payments principally related to certain variable-rate liabilities. The Corporation also has derivatives that are a result of a service the Corporation provides to certain qualifying customers, and, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. The Corporation manages a matched book with respect to its derivative instruments offered as a part of this service to its customers in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of December 31, 2019 , the Corporation had four interest rate swaps with a notional amount of $46.0 million . As of December 31, 2018 , the Corporation had four interest rate swaps with a notional amount of $46.0 million and one interest rate cap with a notional amount of $13.0 million . The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2019 , $26.0 million of the interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September 2012 . In addition, the remaining $20.0 million of interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with two Federal Home Loan Bank advances. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the years ended December 31, 2019 and 2018 , the Corporation did not recognize any ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation’s variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $490,000 from accumulated other comprehensive income to interest expense. Non-designated Hedges The Corporation does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers. The Corporation executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Corporation executes with a third party, such that the Corporation minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2019 , the notional amount of customer-facing swaps was approximately $692,287,000 . This amount is offset with third party counterparties, as described above. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2019 and December 31, 2018 . Asset Derivatives Liability Derivatives December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Balance Sheet Location Fair Balance Sheet Location Fair Balance Sheet Location Fair Balance Sheet Location Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ — Other Assets $ 135 Other Liabilities $ 1,444 Other Liabilities $ 688 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 27,855 Other Assets $ 11,948 Other Liabilities $ 27,855 Other Liabilities $ 11,948 The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative 2019 2018 Interest rate products $ (1,072 ) $ 247 Effect of Derivative Instruments on the Income Statement The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the years ended December 31, 2019 , 2018 and 2017 . Derivatives Designated as Hedging Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion) 2019 2018 2017 Interest rate contracts Interest expense $ (334 ) $ (470 ) $ (985 ) The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties. The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or Standard & Poor’s, at or above investment grade. The Corporation’s control of such risk is through quarterly financial reviews, comparing mark-to-market values with policy limitations, credit ratings and collateral pledging. Credit-Risk-Related Contingent Features The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well/adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, the Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. As of December 31, 2019 , the termination value of derivatives in a net liability position related to these agreements was $28,734,000 . As of December 31, 2019 , the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $42,255,000 . If the Corporation had breached any of these provisions at December 31, 2019 , it could have been required to settle its obligations under the agreements at their termination value. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | FAIR VALUES OF FINANCIAL INSTRUMENTS The Corporation used fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. As defined in ASC 820, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. The Corporation values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of the Corporation. Unobservable inputs are assumptions based on the Corporation’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs for which there is little or no market activity (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation considers an input to be significant if it drives 10 percent or more of the total fair value of a particular asset or liability. RECURRING MEASUREMENTS Assets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment or recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Corporation currently has no securities classified within Level 1 of the hierarchy. Where significant observable inputs, other than Level 1 quoted prices, are available, securities are classified within Level 2 of the valuation hierarchy. Level 2 securities include government-sponsored agency and mortgage-backed securities and state and municipal securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include state and municipal, government-sponsored mortgage-backed securities and corporate obligations securities. Level 3 fair value for securities was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3. Interest Rate Derivative Agreements See information regarding the Corporation’s interest rate derivative products in NOTE 14. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES of these Notes to Consolidated Financial Statements. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018 . Fair Value Measurements Using: Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2019 Fair Value (Level 1) (Level 2) (Level 3) Available for sale securities: U.S. Government-sponsored agency securities $ 38,875 $ — $ 38,875 $ — State and municipal 899,796 — 896,938 2,858 U.S. Government-sponsored mortgage-backed securities 851,323 — 851,319 4 Corporate obligations 31 — — 31 Interest rate swap asset 27,855 — 27,855 — Interest rate swap liability 29,299 — 29,299 — Fair Value Measurements Using: Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2018 Fair Value (Level 1) (Level 2) (Level 3) Available for sale securities: U.S. Government-sponsored agency securities $ 13,582 $ — $ 13,582 $ — State and municipal 606,135 — 602,842 3,293 U.S. Government-sponsored mortgage-backed securities 522,447 — 522,443 4 Corporate obligations 31 — — 31 Interest rate swap asset 11,948 — 11,948 — Interest rate cap 135 — 135 — Interest rate swap liability 12,636 — 12,636 — LEVEL 3 RECONCILIATION The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for year ended December 31, 2019 and 2018 . Available for Sale Securities For The Year Ended December 31, 2019 December 31, 2018 Beginning Balance $ 3,328 $ 3,978 Included in other comprehensive income 80 (49 ) Principal payments (515 ) (601 ) Ending balance $ 2,893 $ 3,328 There were no gains or losses included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at December 31, 2019 or 2018 . TRANSFERS BETWEEN LEVELS There were no transfers in or out of Level 3 during 2019 or 2018. NONRECURRING MEASUREMENTS Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for year ended December 31, 2019 and 2018 . Fair Value Measurements Using Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2019 Fair Value (Level 1) (Level 2) (Level 3) Impaired Loans (collateral dependent) $ 5,653 — — $ 5,653 Other real estate owned $ 194 — — $ 194 Fair Value Measurements Using Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2018 Fair Value (Level 1) (Level 2) (Level 3) Impaired Loans (collateral dependent) $ 11,866 — — $ 11,866 Other real estate owned $ 657 — — $ 657 Impaired Loans (collateral dependent) Loans for which it is probable that the Corporation will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. During 2018 and 2019 , certain impaired loans were partially charged off or re-evaluated. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. Other Real Estate Owned The fair value for impaired loans and other real estate owned is measured based on the value of the collateral securing those loans or real estate and is determined using several methods. The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a discounted cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. UNOBSERVABLE (LEVEL 3) INPUTS The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2019 and 2018 . December 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 2,858 Discounted cash flow Maturity Call Date 1 month to 15 years Corporate obligations and U.S. Government-sponsored mortgage backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR Impaired loans (collateral dependent) $ 5,653 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (1%) Other real estate owned $ 194 Appraisals Discount to reflect current market conditions 0% - 37% (37%) December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,293 Discounted cash flow Maturity Call Date 1 month to 20 years Corporate obligations and U.S. Government-sponsored mortgage backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR Impaired loans (collateral dependent) $ 11,866 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (6%) Other real estate owned $ 657 Appraisals Discount to reflect current market conditions 0% - 10% (4%) The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. State and Municipal Securities, Corporate Obligations, U.S. Government-sponsored Mortgage Backed Securities The significant unobservable inputs used in the fair value measurement of the Corporation's state and municipal securities, corporate obligations and U.S. Government-sponsored mortgage backed securities are premiums for unrated securities and marketability discounts. Significant increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, changes in either of those inputs will not affect the other input. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents estimated fair values of the Corporation's financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018 . 2019 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets at December 31: Cash and cash equivalents $ 177,201 $ 177,201 $ — $ — Interest-bearing time deposits 118,263 118,263 — — Investment securities available for sale 1,790,025 — 1,787,132 2,893 Investment securities held to maturity 806,038 — 799,884 27,682 Loans held for sale 9,037 — 9,037 — Loans 8,379,026 — — 8,335,340 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 27,855 — 27,855 — Interest receivable 48,901 — 48,901 — Liabilities at December 31: Deposits $ 9,839,956 $ 8,146,745 $ 1,675,202 $ — Borrowings: Federal funds purchased 55,000 — 55,000 — Securities sold under repurchase agreements 187,946 — 187,801 — Federal Home Loan Bank advances 351,072 — 352,581 — Subordinated debentures and term loans 138,685 — 123,571 — Interest rate swap liability 29,299 — 29,299 — Interest payable 6,754 — 6,754 — 2018 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets at December 31: Cash and cash equivalents $ 139,247 $ 139,247 $ — $ — Interest-bearing time deposits 36,963 36,963 — — Investment securities available for sale 1,142,195 — 1,138,867 3,328 Investment securities held to maturity 490,387 — 481,377 7,840 Loans held for sale 4,778 — 4,778 — Loans 7,143,915 — — 7,004,193 Federal Home Loan Bank stock 24,588 — 24,588 — Interest rate swap asset 12,083 — 12,083 — Interest receivable 40,881 — 40,881 — Liabilities at December 31: Deposits $ 7,754,593 $ 6,267,879 $ 1,464,129 $ — Borrowings: Federal funds purchased 104,000 — 104,000 — Securities sold under repurchase agreements 113,512 — 113,437 — Federal Home Loan Bank advances 314,986 — 318,728 — Subordinated debentures and term loans 138,463 — 127,298 — Interest rate swap liability 12,636 — 12,636 — Interest payable 5,607 — 5,607 — |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES In the normal course of business there are outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Corporation's exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making such commitments as they do for instruments that are included in the consolidated balance sheets. Financial instruments, whose contract amount represents credit risk as of December 31, were as follows: 2019 2018 Amounts of commitments: Loan commitments to extend credit $ 3,005,064 $ 2,684,806 Standby letters of credit $ 30,200 $ 32,862 Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation. Collateral held varies, but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The Corporation and subsidiaries are also subject to claims and lawsuits, which arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position of the Corporation. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2019 and 2018 : Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2018 $ (6,343 ) $ (559 ) $ (14,520 ) $ (21,422 ) Other comprehensive income before reclassifications 48,703 (846 ) 4,579 52,436 Amounts reclassified from accumulated other comprehensive income (3,488 ) 264 84 (3,140 ) Period change 45,215 (582 ) 4,663 49,296 Balance at December 31, 2019 $ 38,872 $ (1,141 ) $ (9,857 ) $ 27,874 Balance at December 31, 2017 $ 8,970 $ (1,125 ) $ (10,753 ) $ (2,908 ) Other comprehensive income before reclassifications (13,872 ) 437 (1,435 ) (14,870 ) Amounts reclassified from accumulated other comprehensive income (3,373 ) 371 (16 ) (3,018 ) Period change (17,245 ) 808 (1,451 ) (17,888 ) Reclassification adjustment under ASU 2018-02 1,932 (242 ) (2,316 ) (626 ) Balance at December 31, 2018 $ (6,343 ) $ (559 ) $ (14,520 ) $ (21,422 ) The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2019 2018 2017 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 4,415 $ 4,269 $ 2,631 Other income - net realized gains on sales of available for sale securities Related income tax expense (927 ) (896 ) (921 ) Income tax expense $ 3,488 $ 3,373 $ 1,710 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (334 ) $ (470 ) $ (985 ) Interest expense - subordinated debentures and term loans Related income tax benefit 70 99 345 Income tax expense $ (264 ) $ (371 ) $ (640 ) Unrealized gains (losses) on defined benefit plans Amortization of net loss and prior service costs $ (106 ) $ 20 $ 806 Other expenses - salaries and employee benefits Related income tax benefit (expense) 22 (4 ) (209 ) Income tax expense $ (84 ) $ 16 $ 597 Total reclassifications for the period, net of tax $ 3,140 $ 3,018 1,667 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 4. INVESTMENT SECURITIES. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 14. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. |
Regulatory Capital and Dividend
Regulatory Capital and Dividends | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital and Dividends | REGULATORY CAPITAL AND DIVIDENDS Regulatory Capital Capital adequacy is an important indicator of financial stability and performance. The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies and are assigned to a capital category. The assigned capital category is largely determined by four ratios that are calculated according to the regulations: total risk-based capital, tier 1 risk-based capital, CET1, and tier 1 leverage ratios. The ratios are intended to measure capital relative to assets and credit risk associated with those assets and off-balance sheet exposures of the entity. The capital category assigned to an entity can also be affected by qualitative judgments made by regulatory agencies about the risk inherent in the entity's activities that are not part of the calculated ratios. There are five capital categories defined in the regulations, ranging from well capitalized to critically undercapitalized. Classification of a bank in any of the undercapitalized categories can result in actions by regulators that could have a material effect on a bank's operations. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and tier 1 capital to risk-weighted assets, and of tier 1 capital to average assets, or leverage ratio, all of which are calculated as defined in the regulations. Banks with lower capital levels are deemed to be undercapitalized, significantly undercapitalized or critically undercapitalized, depending on their actual levels. The appropriate federal regulatory agency may also downgrade a bank to the next lower capital category upon a determination that the bank is in an unsafe or unsound practice. Banks are required to monitor closely their capital levels and to notify their appropriate regulatory agency of any basis for a change in capital category. Basel III was effective for the Corporation on January 1, 2015. Basel III requires the Corporation and the Bank to maintain a minimum ratio of CET1 capital to risk weighted assets, as defined in the regulation. Under the Basel III rules, in order to avoid limitations on capital distributions, including dividends, the Corporation must hold a capital conservation buffer above the adequately capitalized CET1 capital to risk-weighted assets ratio. The capital conservation buffer was phased in from zero percent in 2015 to the fully-implemented 2.50 percent in 2019. Under Basel III, the Corporation and Bank elected to opt-out of including accumulated other comprehensive income in regulatory capital. As of December 31, 2019 , the Bank met all capital adequacy requirements to be considered well capitalized. There is no threshold for well capitalized status for bank holding companies. The Corporation's and Bank's actual and required capital ratios as of December 31, 2019 and December 31, 2018 were as follows: Prompt Corrective Action Thresholds Actual Adequately Capitalized Well Capitalized December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital to risk-weighted assets First Merchants Corporation $ 1,400,617 14.29 % $ 783,946 8.00 % N/A N/A First Merchants Bank 1,267,649 12.87 787,753 8.00 $ 984,691 10.00 % Tier 1 capital to risk-weighted assets First Merchants Corporation $ 1,255,333 12.81 % $ 587,960 6.00 % N/A N/A First Merchants Bank 1,187,365 12.06 590,815 6.00 $ 787,753 8.00 % Common equity tier 1 capital to risk-weighted assets First Merchants Corporation $ 1,188,970 12.13 % $ 440,970 4.50 % N/A N/A First Merchants Bank 1,187,365 12.06 443,111 4.50 $ 640,049 6.50 % Tier 1 capital to average assets First Merchants Corporation $ 1,255,333 10.54 % $ 476,383 4.00 % N/A N/A First Merchants Bank 1,187,365 9.99 475,564 4.00 $ 594,455 5.00 % Prompt Corrective Action Thresholds Actual Adequately Capitalized Well Capitalized December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital to risk-weighted assets First Merchants Corporation $ 1,177,725 14.61 % $ 644,871 8.00 % N/A N/A First Merchants Bank 1,092,602 13.46 649,531 8.00 $ 811,914 10.00 % Tier 1 capital to risk-weighted assets First Merchants Corporation $ 1,032,173 12.80 % $ 483,653 6.00 % N/A N/A First Merchants Bank 1,012,050 12.47 487,148 6.00 $ 649,531 8.00 % Common equity tier 1 capital to risk-weighted assets First Merchants Corporation $ 966,032 11.98 % $ 362,740 4.50 % N/A N/A First Merchants Bank 1,012,050 12.47 365,361 4.50 $ 527,744 6.50 % Tier 1 capital to average assets First Merchants Corporation $ 1,032,173 10.91 % $ 378,379 4.00 % N/A N/A First Merchants Bank 1,012,050 10.70 379,397 4.00 $ 472,996 5.00 % Management believes that all of the above capital ratios are meaningful measurements for evaluating the safety and soundness of the Corporation. Traditionally, the banking regulators have assessed bank and bank holding company capital adequacy based on both the amount and the composition of capital, the calculation of which is prescribed in federal banking regulations. The Federal Reserve focuses its assessment of capital adequacy on a component of Tier 1 capital known as CET1. Because the Federal Reserve has long indicated that voting common shareholders' equity (essentially Tier 1 risk-based capital less preferred stock and non-controlling interest in subsidiaries) generally should be the dominant element in Tier 1 risk-based capital, this focus on CET1 is consistent with existing capital adequacy categories. Tier I regulatory capital consists primarily of total stockholders’ equity and subordinated debentures issued to business trusts categorized as qualifying borrowings, less non-qualifying intangible assets and unrealized net securities gains or losses. Because these measures are not defined in GAAP, they are considered non-GAAP financial measures. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. For a reconciliation of GAAP measures to regulatory measures (non-GAAP), see additional details within the “Capital” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K. Dividends The Corporation's principal source of funds for dividend payments to shareholders is dividends received from the Bank. Banking regulations limit the maximum amount of dividends that a bank may pay without requesting prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the bank’s retained net income (as defined) for the current year plus those for the previous two years, subject to the capital requirements described above. As of December 31, 2019 , the amount available without prior regulatory approval for 2020 dividends from the Corporation’s subsidiaries (both banking and non-banking) was $189,371,000 . Additionally, the Corporation has a Dividend Reinvestment and Stock Purchase Plan, enabling stockholders to elect to have their cash dividends on all shares automatically reinvested in additional shares of the Corporation’s common stock. In addition, stockholders may elect to make optional cash payments up to an aggregate of $5,000 per quarter for the purchase of additional shares of common stock. The stock is credited to participant accounts at fair market value. Dividends are reinvested on a quarterly basis. Stockholders' Equity On September 1, 2019, the Corporation acquired 100 percent of MBT. Pursuant to the merger agreement, each MBT shareholder received 0.275 shares of the Corporation's common stock for each outstanding share of MBT common stock held. The Corporation issued approximately 6.4 million shares of common stock, which was valued at approximately $229.9 million . Details regarding the MBT acquisition are discussed in NOTE 2. ACQUISITION of these Notes to Consolidated Financial Statements. Stock Repurchase Program On September 3, 2019, the Board of Directors of the Corporation approved a stock repurchase program of up to 3 million shares of the Corporation's outstanding common stock; provided, however, that the total aggregate investment in shares repurchased under the program may not exceed $75 million . On a share basis, the amount of common stock subject to the repurchase program represents approximately 5 percent of the Corporation's outstanding shares. The actual timing, number and share price of shares purchased under the repurchase program will be determined at the Corporation's discretion and will depend upon such factors as the market price of the stock, general market and economic conditions and applicable legal requirements. During 2019, the Corporation repurchased 516,016 shares of common stock for a total amount of $19.0 million at an average price of $36.90 . All shares repurchased under the stock repurchase program were retired upon settlement. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Loan Servicing | LOAN SERVICING Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Fannie Mae, Federal Home Loan Bank of Cincinnati and Federal Home Loan Bank of Indianapolis, and the unpaid balances totaled $514,294,000 , $533,386,000 and $549,618,000 at December 31, 2019 , 2018 and 2017 , respectively. The amount of capitalized servicing assets is considered immaterial. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Stock options and RSAs have been issued to directors, officers and other management employees under the Corporation's 2009 Long-term Equity Incentive Plan, the 2019 Long-term Equity Incentive Plan and the Equity Compensation Plan for Non-Employee Directors. The stock options, which have a ten -year life, become 100 percent vested based on time ranging from one year to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years . The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. For non-employee directors, the RSA's vest only if the non-employee director remains as an active board member on the vesting date and, therefore, any unvested shares are forfeited. The RSAs for employees and non-employee directors retired from the Corporation are either immediately vested at retirement, disability or death, or continue to vest after retirement, disability or death, depending on the plan under which the shares were granted. The Corporation’s 2019 ESPP provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000 . The Corporation's 2009 ESPP, which was substantially similar to the 2019 ESPP, expired on June 30, 2019. Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the years ended December 31, 2019 , 2018 , and 2017 was $4,115,000 , $3,592,000 , and $2,827,000 , respectively, and has been recognized as a component of salaries and benefits expense in the accompanying CONSOLIDATED STATEMENTS OF INCOME. Share-based compensation expense recognized in the CONSOLIDATED STATEMENTS OF INCOME is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 1.7 percent for the year ended December 31, 2019 , based on historical experience. The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. The income tax benefit decrease for the year ended December 31, 2018 was due to the reduction of the corporate federal income tax rate from 35 percent to 21 percent as a result of the Tax Cuts and Jobs Act, which was effective January 1, 2018. On January 1, 2017, the implementation of ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting required the income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled. Implementation of the ASU resulted in approximately $433,000 , $644,000 and $935,000 of income tax benefit for the years ended December 31, 2019, 2018 and 2017, respectively. Years Ended December 31, 2019 2018 2017 Stock and ESPP Options Pre-tax compensation expense $ 101 $ 109 $ 121 Income tax expense (benefit) (70 ) (97 ) (322 ) Stock and ESPP option expense, net of income taxes $ 31 $ 12 $ (201 ) Restricted Stock Awards Pre-tax compensation expense $ 4,014 $ 3,483 $ 2,706 Income tax benefit (1,206 ) (1,179 ) (1,561 ) Restricted stock awards expense, net of income taxes $ 2,808 $ 2,304 $ 1,145 Total Share-Based Compensation: Pre-tax compensation expense $ 4,115 $ 3,592 $ 2,827 Income tax benefit (1,276 ) (1,276 ) (1,883 ) Total share-based compensation expense, net of income taxes $ 2,839 $ 2,316 $ 944 As of December 31, 2019 , unrecognized compensation expense related to RSAs was $7,422,000 and is expected to be recognized over weighted-average period of 1.60 years. The Corporation did no t have any unrecognized compensation expense related to stock options as of December 31, 2019 . Stock option activity under the Corporation's stock option plans, as of December 31, 2019 , and changes during the year ended December 31, 2019 , were as follows: Number of Weighted-Average Price Weighted Average Aggregate Outstanding at January 1, 2019 76,300 $ 12.40 — $ — Exercised (16,950 ) $ 8.51 — $ — Outstanding December 31, 2019 59,350 $ 13.51 2.45 $ 1,666,694 Vested and Expected to Vest at December 31, 2019 59,350 $ 13.51 2.45 $ 1,666,694 Exercisable at December 31, 2019 59,350 $ 13.51 2.45 $ 1,666,694 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of 2019 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on December 31, 2019 . The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2019 and 2018 was $495,000 and $1,685,000 , respectively. Cash receipts of stock options exercised during 2019 and 2018 were $144,000 and $1,598,000 , respectively. The following table summarizes information on unvested RSAs outstanding as of December 31, 2019 : Number of Weighted-Average Unvested RSAs at January 1, 2019 344,362 $ 36.80 Granted 125,846 $ 35.84 Forfeited (2,588 ) $ 40.53 Vested (116,572 ) $ 24.03 Unvested RSAs at December 31, 2019 351,048 $ 40.67 The grant date fair value of ESPP options was estimated at the beginning of the October 1, 2019, quarterly offering period of approximately $29,000 . The ESPP options vested during the three months ending December 31, 2019 , leaving no unrecognized compensation expense related to unvested ESPP options at December 31, 2019 . |
Pension and Other Post Retireme
Pension and Other Post Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Post Retirement Benefit Plans | PENSION AND OTHER POST RETIREMENT BENEFIT PLANS The Corporation’s defined-benefit pension plans, including non-qualified plans for certain employees, former employees and former non-employee directors, cover approximately 10 percent of the Corporation’s employees. In 2005 , the Board of Directors of the Corporation approved the curtailment of the accumulation of defined benefits for future services provided by certain participants in the First Merchants Corporation Retirement Plan. No additional pension benefits have been earned by any employees who had not attained both the age of 55 and accrued at least 10 years of vesting service as of March 1, 2005 . The benefits are based primarily on years of service and employees’ pay near retirement. Contributions are intended to provide not only for benefits attributed to service-to-date, but also for those expected to be earned in the future. The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31 , using measurement dates of December 31, 2019 and 2018 . 2019 2018 Change in Benefit Obligation: Benefit obligation at beginning of year $ 73,193 $ 82,157 Service cost 39 8 Interest cost 2,975 2,816 Actuarial (gain) loss 4,007 (6,129 ) Benefits paid (5,145 ) (5,659 ) Net transfer in from MBT acquisition 1,701 — Benefit obligation at end of year $ 76,770 $ 73,193 Change in Plan Assets: Fair value of plan assets at beginning of year $ 76,736 $ 85,213 Actual return on plan assets 12,972 (3,427 ) Employer contributions 558 609 Benefits paid (5,145 ) (5,659 ) End of year 85,121 76,736 Funded status at end of year $ 8,351 $ 3,543 Assets and Liabilities Recognized in the Balance Sheets: Deferred tax asset $ 3,278 $ 3,855 Assets $ 13,291 $ 7,024 Liabilities $ 4,940 $ 3,481 Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic Cost, net of tax, consist of: Accumulated loss $ (9,712 ) $ (14,111 ) Prior service cost (325 ) (409 ) $ (10,037 ) $ (14,520 ) The actuarial (gain) loss recognized in 2019 and 2018 was primarily a result of discount rate assumption fluctuations. The accumulated benefit obligation for all defined benefit plans was $76,770,000 and $73,193,000 at December 31, 2019 and 2018 , respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets consists solely of the non-qualified plans for certain employees, former employees and former non-employee directors, and is included in the table below. December 31, 2019 December 31, 2018 Projected benefit obligation $ 4,940 $ 3,481 Accumulated benefit obligation $ 4,940 $ 3,481 Fair value of plan assets $ — $ — The Corporation recognized expense under these non-qualified plans of $192,000 , $161,000 and $213,000 for 2019 , 2018 and 2017 , respectively. The following table shows the components of net periodic pension benefit cost: December 31, 2019 December 31, 2018 December 31, 2017 Service cost $ 39 $ 8 $ 10 Interest cost 2,975 2,816 3,353 Expected return on plan assets (4,414 ) (4,891 ) (4,778 ) Amortization of prior service cost 87 87 90 Amortization of net loss 404 287 1,218 Settlement loss recognized — — 761 Net periodic pension benefit cost $ (909 ) $ (1,693 ) $ 654 Other changes in plan assets and benefit obligations recognized in other comprehensive income: December 31, 2019 December 31, 2018 December 31, 2017 Net periodic pension benefit cost $ (909 ) $ (1,693 ) $ 654 Net gain (loss) 4,552 (2,189 ) 1,504 Amortization of net loss 404 287 1,979 Amortization of prior service cost 87 87 90 Total recognized in other comprehensive income (loss) 5,043 (1,815 ) 3,573 Total recognized in net periodic pension benefit cost and other comprehensive income (loss) $ 5,952 $ (122 ) $ 2,919 The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic pension benefit cost over the next fiscal year are: December 31, 2019 December 31, 2018 December 31, 2017 Amortization of net loss $ (208 ) $ (432 ) $ (830 ) Amortization of prior service cost (87 ) (87 ) (87 ) Total $ (295 ) $ (519 ) $ (917 ) Significant assumptions include: December 31, 2019 December 31, 2018 December 31, 2017 Weighted-average Assumptions Used to Determine Benefit Obligation: Discount rate 3.20 % 4.30 % 3.60 % Rate of compensation increase for accruing active participants n/a n/a n/a Weighted-average Assumptions Used to Determine Cost: Discount rate 4.30 % 3.60 % 4.20 % Expected return on plan assets 6.00 % 6.00 % 6.00 % Rate of compensation increase for accruing active participants n/a n/a n/a At December 31, 2019 and 2018 , the Corporation based its estimate of the expected long-term rate of return on analysis of the historical returns of the plans and current market information available. The plans’ investment strategies are to provide for preservation of capital with an emphasis on long-term growth without undue exposure to risk. The assets of the plans’ are invested in accordance with the plans’ Investment Policy Statement, subject to strict compliance with ERISA and any other applicable statutes. The plans’ risk management practices include semi-annual evaluations of investment managers, including reviews of compliance with investment manager guidelines and restrictions; ability to exceed performance objectives; adherence to the investment philosophy and style; and ability to exceed the performance of other investment managers. The evaluations are reviewed by management with appropriate follow-up and actions taken, as deemed necessary. The Investment Policy Statement generally allows investments in cash and cash equivalents, real estate, fixed income debt securities and equity securities, and specifically prohibits investments in derivatives, options, futures, private placements, short selling, non-marketable securities and purchases of individual non-investment grade bonds. At December 31, 2019 , the maturities of the plans’ debt securities ranged from 15 days to 7.67 years , with a weighted average maturity of 4.00 years . At December 31, 2018 , the maturities of the plans’ debt securities ranged from 15 days to 8.24 years , with a weighted average maturity of 4.29 years . The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2019 . The minimum contribution required in 2020 will likely be zero , but the Corporation may decide to make a discretionary contribution during the year. 2020 $ 5,662 2021 5,549 2022 5,547 2023 5,418 2024 5,241 After 2024 24,435 $ 51,852 Plan assets are re-balanced quarterly. At December 31, 2019 and 2018 , plan assets by category are as follows: December 31, 2019 December 31, 2018 Actual Target Actual Target Cash and cash equivalents 3.0 % 3.0 % 3.9 % 3.0 % Equity securities 52.3 50.0 48.4 50.0 Debt securities 42.3 45.0 45.6 45.0 Alternative investments 2.4 2.0 2.1 2.0 100.0 % 100.0 % 100.0 % 100.0 % The Savings Plan, a Section 401(k) qualified defined contribution plan, was amended on March 1, 2005 to provide enhanced retirement benefits, including employer and matching contributions, for eligible employees of the Corporation and its subsidiaries. The Corporation matches employees’ contributions at the rate of 100 percent for the first 3 percent of base salary contributed by participants and 50 percent of the next 3 percent of base salary contributed by participants. Beginning in 2005 , employees who have completed 1000 hours of service and are an active employee on the last day of the year receive an additional retirement contribution after year-end. Employees hired after January 1, 2010 do not participate in the additional retirement contribution. Effective January 1, 2013, the additional retirement contribution was fixed at 2 percent. Full vesting occurs after five years of service. The Corporation’s expense for the Savings Plan, including the additional retirement contribution, was $4,560,000 , $5,114,000 and $3,691,000 for 2019 , 2018 and 2017 , respectively. The Corporation also maintains a post retirement benefit plan that provides health insurance benefits for a closed group of participants that came to the Corporation through the 2019 MBT acquisition. To be eligible for the post retirement plan, the participants must (1) have been hired by MBT prior to January 1, 2007, (2) be a full-time employee of the Corporation and employed by MBT prior to the acquisition, and (3) be at least 55 of age with 5 years of full-time service with MBT. The plan allowed retirees to be carried under the Corporation’s health insurance plan, generally from ages 55 to 65 . The retirees' premiums are determined based on their retiree class (per historical MBT guidelines) and also determined by the plan type for which the retiree is enrolled. As of December 31, 2019, the obligation payable under the post retirement plan was $4.0 million . Post retirement plan expense totaled $43,000 for the year ended December 31, 2019. Pension Plan Assets Following is a description of the valuation methodologies used for pension plan assets measured at fair value on a recurring basis, as well as the general classification of pension plan assets pursuant to the valuation hierarchy. Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets total $80,689,000 and $71,277,000 as of December 31, 2019 and 2018 , respectively, and include cash and cash equivalents, common stocks, mutual funds and corporate bonds and notes. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. Level 2 plan assets total $4,432,000 and $5,459,000 as of December 31, 2019 and 2018 , respectively, and include governmental agencies, taxable municipal bonds and notes, and certificates of deposit. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. There are no assets classified within Level 3 of the hierarchy at December 31, 2019 and 2018 . Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Fair Value (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 2,578 $ 2,578 $ — $ — Corporate Bonds and Notes 17,629 17,629 — — Government Agency and Municipal Bonds and Notes 3,660 — 3,660 — Certificates of Deposit 772 — 772 — Party-in-Interest Investments Common Stock 2,516 2,516 — — Mutual Funds Taxable Bond 13,938 13,938 — — Large Cap Equity 21,958 21,958 — — Mid Cap Equity 10,407 10,407 — — Small Cap Equity 5,753 5,753 — — International Equity 3,898 3,898 — — Specialty Alternative Equity 2,012 2,012 — — $ 85,121 $ 80,689 $ 4,432 $ — Fair Value Measurements Using Quoted Prices in Significant Other Observable Inputs Significant December 31, 2018 Fair Value (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 3,026 $ 3,026 $ — $ — Corporate Bonds and Notes 16,691 16,691 — — Government Agency and Municipal Bonds and Notes 4,479 — 4,479 — Certificates of Deposit 980 — 980 — Party-in-Interest Investments Common Stock 2,073 2,073 — — Mutual Funds Taxable Bond 12,817 12,817 — — Large Cap Equity 18,269 18,269 — — Mid Cap Equity 8,735 8,735 — — Small Cap Equity 4,713 4,713 — — International Equity 3,336 3,336 — — Specialty Alternative Equity 1,617 1,617 — — $ 76,736 $ 71,277 $ 5,459 $ — |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAX The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 Reconciliation of Federal Statutory to Actual Tax Expense: Federal Statutory Income Tax at 21% for 2019 and 2018 and 35% for 2017 $ 40,695 $ 39,509 $ 46,758 Tax-exempt Interest Income (10,124 ) (8,347 ) (11,127 ) Stock Compensation (459 ) (622 ) (893 ) Earnings on Life Insurance (953 ) (868 ) (2,302 ) Tax Credits (263 ) (615 ) (811 ) Tax Cuts and Jobs Act - Rate Reform Impact — — 5,120 Other 429 (58 ) 779 Income Tax Expense $ 29,325 $ 28,999 $ 37,524 Effective Tax Rate 15.1 % 15.4 % 28.1 % Income tax expense consists of the following components for the years ended December 31, 2019 , 2018 , 2017 : 2019 2018 2017 Income Tax Expense for the Year Ended December 31: Currently Payable: Federal $ 23,938 $ 23,633 $ 22,001 State 422 1,842 — Deferred: Federal 4,726 6,723 9,969 Tax Cuts and Jobs Act - Rate Reform Impact — — 5,120 State 239 (3,199 ) 434 Income Tax Expense $ 29,325 $ 28,999 $ 37,524 Significant components of the net deferred tax assets (liabilities) resulting from temporary differences were as follows at December 31, 2019 and 2018 : 2019 2018 Deferred Tax Asset at December 31: Assets: Differences in Accounting for Loan Losses $ 19,717 $ 19,785 Differences in Accounting for Loan Fees 442 749 Differences in Accounting for Loans and Securities — 710 Deferred Compensation 4,436 2,101 Federal & State Income Tax Loss Carryforward and Credits 6,205 6,954 Net Unrealized Loss on Securities Available for Sale — 1,686 Other 3,499 2,028 Total Assets 34,299 34,013 Liabilities: Differences in Depreciation Methods 5,240 6,496 Differences in Accounting for Loans and Securities 1,192 — Difference in Accounting for Pensions and Other Employee Benefits 1,556 566 State Income Tax 778 791 Net Unrealized Gain on Securities Available for Sale 10,333 — Gain on FDIC Modified Whole Bank Transaction 413 487 Other 6,506 4,271 Total Liabilities 26,018 12,611 Net Deferred Tax Asset Before Valuation Allowance 8,281 21,402 Valuation allowance: Beginning Balance — (6,966 ) Decrease/(Increase) During the Year — 6,966 Ending Balance — — Net Deferred Tax Asset $ 8,281 $ 21,402 The $13,121,000 decrease in the Corporation’s net deferred tax asset was primarily due to an increase in deferred tax liabilities. The largest deferred tax liability increase was associated with the tax effect of the change in unrealized gains and losses on available for sale securities of $12,019,000 . Additionally, the net change in deferred taxes associated with accounting for loans increased the net deferred tax liability by $1,902,000 . Offsetting the increases to deferred tax liabilities was a deferred tax asset increase associated with deferred compensation of $2,336,000 . As of December 31, 2019 , the Corporation has approximately $28,354,000 of state NOL carryforwards available to offset future state taxable income, which will expire beginning in 2022 . These NOL carryforwards along with normal timing differences between book and tax result in total state deferred tax assets of $3,719,000 . Management believes it is more likely than not that the benefit of these state NOL carryforwards and other state deferred tax assets will be fully realized. The Corporation has additional paid-in capital that is considered restricted resulting from the acquisitions of CFS and Ameriana of approximately $13,393,000 and $11,883,000 , respectively. CFS and Ameriana qualified as banks under provisions of the Internal Revenue Code which permitted them to deduct from taxable income an allowance for bad debts which differed from the provision for losses charged to income. No provision for income taxes had been provided. If in the future this portion of additional paid-in capital is distributed, or the Corporation no longer qualifies as a bank for income tax purposes, income taxes may be imposed at the then applicable tax rates. The unrecorded deferred tax liability at December 31, 2019 , would have been approximately $5,308,000 . The Corporation or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2016 . |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted-average shares outstanding during the reporting period. Diluted net income per share is computed by dividing net income by the combination of the weighted-average shares outstanding during the reporting period and all potentially dilutive common shares. Potentially dilutive common shares include stock options and RSAs issued under the Corporation's share-based compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. The following table reconciles basic and diluted net income per share for the years indicated: 2019 2018 2017 Weighted-Average Shares Weighted-Average Shares Weighted-Average Shares Basic net income per share: Net income available to common stockholders $ 164,460 51,412,133 $ 3.20 $ 159,139 49,262,015 $ 3.23 $ 96,070 45,181,221 $ 2.13 Effect of dilutive stock options and restricted stock awards 149,105 208,908 221,757 Diluted net income per share: Net income available to common stockholders $ 164,460 51,561,238 $ 3.19 $ 159,139 49,470,923 $ 3.22 $ 96,070 45,402,978 $ 2.12 As of December 31, 2019, 2018 and 2017, there were no stock options with an option price greater than the average market price of the common shares. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table sets forth certain quarterly results for the years ended December 31, 2019 and 2018 : 2019 2018 First Second Third Fourth First Second Third Fourth Interest income $ 108,813 $ 112,639 $ 118,132 $ 125,821 $ 93,620 $ 100,871 $ 104,800 $ 108,653 Interest expense 23,947 27,361 29,200 28,237 13,704 16,300 18,314 20,769 Net interest income 84,866 85,278 88,932 97,584 79,916 84,571 86,486 87,884 Provision for loan losses 1,200 500 600 500 2,500 1,663 1,400 1,664 Net interest income after provision for loan losses 83,666 84,778 88,332 97,084 77,416 82,908 85,086 86,220 Non-interest income 18,713 21,614 22,116 24,245 19,561 18,191 19,527 19,180 Non-interest expense 56,621 57,587 67,354 65,201 53,687 53,504 55,022 57,738 Income before income tax expense 45,758 48,805 43,094 56,128 43,290 47,595 49,591 47,662 Income tax expense 6,941 7,749 6,337 8,298 6,611 7,961 8,478 5,949 Net income available to common stockholders $ 38,817 $ 41,056 $ 36,757 $ 47,830 $ 36,679 $ 39,634 $ 41,113 $ 41,713 Basic EPS $ 0.79 $ 0.83 $ 0.71 $ 0.87 $ 0.75 $ 0.80 $ 0.83 $ 0.85 Diluted EPS $ 0.78 $ 0.83 $ 0.71 $ 0.87 $ 0.74 $ 0.80 $ 0.83 $ 0.85 Average Shares Outstanding: Basic 49,369,024 49,432,167 51,433,227 55,348,176 49,192,647 49,252,580 49,286,945 49,314,276 Diluted 49,540,844 49,549,887 51,569,557 55,519,953 49,427,972 49,451,406 49,492,019 49,511,233 |
Condensed Financial Information
Condensed Financial Information (parent company only) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information (parent company only) | CONDENSED FINANCIAL INFORMATION (parent company only) Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Corporation. Condensed Balance Sheets December 31, 2019 December 31, 2018 Assets Cash $ 127,723 $ 87,435 Investment in subsidiaries 1,791,070 1,459,036 Premises and equipment 153 1,158 Interest receivable 6 6 Goodwill 448 448 Cash surrender value of life insurance 837 810 Other assets 16,803 5,240 Total assets $ 1,937,040 $ 1,554,133 Liabilities Subordinated debentures and term loans $ 138,685 $ 138,463 Interest payable 977 994 Other liabilities 10,941 6,416 Total liabilities 150,603 145,873 Stockholders' equity 1,786,437 1,408,260 Total liabilities and stockholders' equity $ 1,937,040 $ 1,554,133 Condensed Statements of Income and Comprehensive Income December 31, 2019 December 31, 2018 December 31, 2017 Income Dividends from subsidiaries $ 125,775 $ 100,954 $ 33,014 Loss on sale of available for sale securities — — (50 ) Other income 172 572 350 Total income 125,947 101,526 33,314 Expenses Interest expense 8,309 8,233 7,572 Salaries and employee benefits 3,540 3,729 4,118 Net occupancy and equipment expenses 802 851 797 Other outside services 1,889 489 1,810 Professional services 303 270 442 Other expenses 1,587 442 (385 ) Total expenses 16,430 14,014 14,354 Income before income tax benefit and equity in undistributed income of subsidiaries 109,517 87,512 18,960 Income tax benefit 3,575 3,298 5,946 Income before equity in undistributed income of subsidiaries 113,092 90,810 24,906 Equity in undistributed income of subsidiaries 51,368 68,329 71,164 Net income available to common stockholders $ 164,460 $ 159,139 $ 96,070 Net income $ 164,460 $ 159,139 $ 96,070 Other comprehensive income (loss) 49,296 (17,888 ) 10,673 Comprehensive income $ 213,756 $ 141,251 $ 106,743 Condensed Statements of Cash Flows December 31, 2019 December 31, 2018 December 31, 2017 Cash Flow From Operating Activities: Net income $ 164,460 $ 159,139 $ 96,070 Adjustments to Reconcile Net Income to Net Cash: Share-based compensation 1,339 1,256 1,215 Distributions in excess of (equity in undistributed) income of subsidiaries (51,368 ) (68,329 ) (71,164 ) Loss on sale of available for sale securities — — 50 Net Change in: Other assets (8,944 ) 584 3,358 Other liabilities 4,611 274 (1,900 ) Investment in subsidiaries - operating activities (268 ) 841 1,112 Net cash provided by operating activities 109,830 93,765 28,741 Cash Flow From Investing Activities: Net cash received in acquisition 78 — 37 Other — 2,189 — Net cash provided by investing activities 78 2,189 37 Cash Flow From Financing Activities: Cash dividends (51,276 ) (41,660 ) (31,820 ) Stock issued under employee benefit plans 702 707 519 Stock issued under dividend reinvestment and stock purchase plan 1,531 1,211 991 Stock options exercised 144 1,598 2,398 Restricted shares withheld for taxes (1,680 ) (1,902 ) (1,283 ) Repurchases of common stock (19,041 ) — — Net cash used by financing activities (69,620 ) (40,046 ) (29,195 ) Net change in cash 40,288 55,908 (417 ) Cash, beginning of the year 87,435 31,527 31,944 Cash, end of year $ 127,723 $ 87,435 $ 31,527 |
General Litigation
General Litigation | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation | GENERAL LITIGATION The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accounting and reporting policies of the Corporation and the Bank, conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Consolidation | CONSOLIDATION of the Corporation's financial statements include the accounts of the Corporation and all its subsidiaries, after elimination of all material intercompany transactions. |
Business Combinations | BUSINESS COMBINATIONS are accounted for under the acquisition method of accounting. Under the acquisition method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. |
Available for Sale and Held to Maturity Securities | AVAILABLE FOR SALE SECURITIES are recorded at fair value on a recurring basis with the unrealized gains and losses, net of applicable income taxes, recorded in other comprehensive income. Realized gains and losses are recorded in earnings and the prior fair value adjustments are reclassified within stockholders' equity. Gains and losses on sales of securities are determined on the specific-identification method. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Available for sale and held to maturity securities are evaluated for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Corporation has the intent to sell the debt security or more likely than not, will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs, the amount of OTTI recognized in the income statement depends on whether the Corporation intends to sell the security or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss. If the intent is to sell, or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis, less any recognized credit loss, and its fair value at the balance sheet date. If the intent is not to sell the security and it is not more likely than not that the Corporation will be required to sell the security before the recovery of its amortized cost basis less any recognized credit loss, the OTTI has been separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable income taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. HELD TO MATURITY SECURITIES are classified as held to maturity when the Corporation has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. For held to maturity debt securities, the amount of an OTTI recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. |
Loans Held for Sale | LOANS HELD FOR SALE are carried at the principal amount outstanding. The carrying amount approximates fair value due to the short duration between origination and the date of sale. |
Loans | LOANS held in the Corporation’s loan portfolio are carried at the principal amount outstanding, net of unearned income and principal charge-offs. Certain non-accrual, substantially delinquent and renegotiated loans classified as troubled debt restructures may be considered to be impaired in accordance with ASC 310, Receivables . Under ASC 310-10, a loan is impaired when, based on current information or events, it is probable all amounts due (principal and interest) according to the contractual terms of the loan agreement are uncollectible. Renegotiated consumer loans classified as troubled debt restructures are considered to be impaired. In applying the provisions of ASC 310-10, the Corporation considers all other investments in one-to-four family residential loans and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment. Impaired loans are carried at the fair value of collateral if the loan is collateral dependent, or the present value of estimated future cash flows using the loan’s existing rate. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. The valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis. Interest income is accrued on the principal balances of loans. The accrual of interest is discontinued on a loan when, in management’s opinion, the borrower may be unable to meet payments as they become due. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectible. Interest income accrued in the prior year, if any, is charged to the allowance for loan losses. Interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status. Certain loan fees and direct costs are being deferred and amortized as an adjustment of yield on the loans. Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses which limit the exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value. |
Loans Acquired in Business Combinations | LOANS ACQUIRED IN BUSINESS COMBINATIONS with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be purchased credit impaired. Evidence of credit quality deterioration as of purchase dates may include information such as past-due and nonaccrual status, borrower credit risk grade and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30). These loans are initially measured at fair value based upon expected cash flows without anticipation of prepayments and includes estimated future credit losses expected to be incurred over the life of the loans. As a result, related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans. For purposes of applying ASC 310-30, loans acquired in business combinations are individually evaluated for the initial fair value measurement. Accordingly, allowances for credit losses related to these loans are not carried over at the acquisition date. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable portion of the fair value discount or premium. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. Acquired loans not accounted for under ASC 310-30 are accounted for under ASC 310-20, which allows the fair value adjustment to be accreted into income over the remaining life of the loans. |
Allowance for Loan Losses | ALLOWANCE FOR LOAN LOSSES is maintained to absorb losses inherent in the loan portfolio and is based on ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current operating results. Loan losses are charged against the allowance when management believes the uncollectability of a loan is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Corporation’s strategy for credit risk management includes credit policies and underwriting criteria for all loans, as well as an overall credit limit for each customer significantly below legal lending limits. The strategy also emphasizes diversification on regional geographic and industry levels, regular credit quality reviews and management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Corporation’s methodology for assessing the appropriateness of the allowance consists of three key elements – the determination of the appropriate reserves for impaired loans accounted for under ASC 310-10, probable losses estimated from historical loss rates, and probable losses resulting from economic, environmental, qualitative or other deterioration above and beyond what is reflected in the first two components of the allowance. Where appropriate, reserves are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Corporation. Loans individually evaluated for impairment are those deemed impaired in accordance with ASC 310-10, including commercial relationships greater than $500,000 that exhibit well defined credit weaknesses. Any allowances for impaired loans are measured based on the fair value of the underlying collateral, if collateral dependent, or the present value of expected future cash flows discounted at the loan’s effective interest rate. The Corporation evaluates the collectability of principal when assessing the need for a loss accrual. Historical loss rates are applied to other commercial loans not subject to specific reserve allocations. The historical allocation for commercial loans graded pass are established by loan segments using loss rates based on the Corporation’s migration analysis. This migration analysis shows the loss rates for each segment of loans based on the loan grades at the beginning of the twelve month period. This loss rate is then applied to the current portfolio of loans in each respective loan segment. Homogenous loans, such as consumer installment and residential mortgage loans, are not individually risk graded. Reserves are established for each segment of loans using loss rates based on charge-offs for the same period as the migration analysis used for commercial loans. Historical loss allocations for commercial and consumer loans may be adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. Factors which management considers in the analysis include the effects of the national and local economies, trends in loan growth and charge-off rates, changes in mix, concentration of loans in specific industries, asset quality trends (delinquencies, charge-offs and non-accrual loans), risk management and loan administration, changes in the internal lending policies and credit standards, examination results from bank regulatory agencies and the Corporation’s internal loan review. |
Pension | PENSION benefits are provided to the Corporation’s employees. Its accounting policies related to pensions and other post retirement benefits reflect the guidance in ASC 715, Compensation – Retirement Benefits. The Corporation does not consolidate the assets and liabilities associated with the pension plan. Instead, the Corporation recognizes the funded status of the plan in the consolidated balance sheets. The measurement of the funded status and the annual pension expense involves actuarial and economic assumptions. Various statistical and other factors, which attempt to anticipate future events, are used in calculating the expense and liabilities related to the plans. Key factors include assumptions on the expected rates of return on plan assets, discount rates, expected rates of salary increases and health care costs and trends. The Corporation considers market conditions, including changes in investment returns and interest rates in making these assumptions. The primary assumptions used in determining the Corporation’s pension and post retirement benefit obligations and related expenses are presented in NOTE 21. PENSION AND OTHER POST RETIREMENT BENEFIT PLANS of these Notes to Consolidated Financial Statements. |
Premises and Equipment | PREMISES AND EQUIPMENT is carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line and declining balance methods based on the estimated useful lives of the assets ranging from three to forty years . Maintenance and repairs are expensed as incurred, while major additions and improvements, which extend the useful life, are capitalized. Gains and losses on dispositions are included in current operations. |
Federal Home Loan Bank Stock | FEDERAL HOME LOAN BANK STOCK is a required investment for institutions that are members of the FHLB. The Bank is a member of the FHLB of Indianapolis. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Intangible Assets | INTANGIBLE ASSETS that are subject to amortization, including core deposit intangibles, are being amortized on both the straight-line and accelerated basis over two to ten years . Intangible assets are periodically evaluated as to the recoverability of their carrying value. |
Goodwill | GOODWILL is maintained by applying the provisions of ASC 350, Intangibles – Goodwill and Other . For purchase acquisitions, the Corporation is required to record the assets acquired, including identified intangible assets, and the liabilities assumed at their fair value, which in many instances involves estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation techniques that may include estimates of attrition, inflation, asset growth rates or other relevant factors. In addition, the determination of the useful lives for which an intangible asset will be amortized is subjective. Under ASC 350, the Corporation is required to evaluate goodwill for impairment on an annual basis, as well as on an interim basis, if events or changes indicate that the asset may be impaired, indicating that the carrying value may not be recoverable. The Corporation has historically elected to test for goodwill impairment as of October 1 of each year and has determined that no impairment exists. |
Bank Owned Life Insurance | BANK OWNED LIFE INSURANCE has been purchased on certain employees and directors of the Corporation to offset a portion of the employee benefit costs. The Corporation records the life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement. Changes in cash surrender values and death benefits received in excess of cash surrender values are reported in non-interest income. A corporate policy is in place with defined thresholds that limit the amount of credit, interest rate and liquidity risk inherent in a BOLI portfolio. The Corporation actively monitors the overall portfolio performance along with the credit quality of the insurance carriers and the credit quality and yield of the underlying investments. |
Other Real Estate Owned | OTHER REAL ESTATE OWNED consists of assets acquired through, or in lieu of, loan foreclosure and are held for sale. They are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation are included in other real estate owned and foreclosure expenses. |
Derivative Instruments | DERIVATIVE INSTRUMENTS are carried at the fair value of the derivatives and reflects the estimated amounts that would have been received to terminate these contracts at the reporting date based upon pricing or valuation models applied to current market information. As part of the asset/liability management program, the Corporation will utilize, from time to time, interest rate floors, caps or swaps to reduce its sensitivity to interest rate fluctuations. These are derivative instruments, which are recorded as assets or liabilities in the consolidated balance sheets at fair value. Changes in the fair values of derivatives are reported in the consolidated statements of operations or AOCI depending on the use of the derivative and whether the instrument qualifies for hedge accounting. The key criterion for the hedge accounting is that the hedged relationship must be highly effective in achieving offsetting changes in those cash flows that are attributable to the hedged risk, both at inception of the hedge and on an ongoing basis. Derivatives that qualify for the hedge accounting treatment are designated as either: (1) a hedge of the fair value of the recognized asset or liability, or of an unrecognized firm commitment (a fair value hedge); or (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (a cash flow hedge). To date, the Corporation has only entered into a cash flow hedge. For cash flow hedges, changes in the fair values of the derivative instruments are reported in AOCI to the extent the hedge is effective. The gains and losses on derivative instruments that are reported in AOCI are reflected in the consolidated statements of income in the periods in which the results of operations are impacted by the variability of the cash flows of the hedged item. Generally, net interest income is increased or decreased by amounts receivable or payable with respect to the derivatives, which qualify for hedge accounting. At inception of the hedge, the Corporation establishes the method it uses for assessing the effectiveness of the hedging derivative and the measurement approach for determining the ineffective aspect of the hedge. The ineffective portion of the hedge, if any, is recognized in the consolidated statements of income. The Corporation excludes the time value expiration of the hedge when measuring ineffectiveness. The Corporation offers interest rate derivative products (e.g. interest rate swaps) to certain of its high-quality commercial borrowers. This product allows customers to enter into an agreement with the Corporation to swap their variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the risk of changes in the borrower’s interest rate or market price risk. The extension of credit incurred through the execution of these derivative products is subject to the same approvals and rigorous underwriting standards as the related traditional credit product. The Corporation limits its risk exposure to these products by entering into a mirror-image, offsetting swap agreement with a separate, well-capitalized and rated counterparty previously approved by the Credit and Asset Liability Committee. By using these interest rate swap arrangements, the Corporation is also better insulated from the interest rate risk associated with underwriting fixed-rate loans. These derivative contracts are not designated against specific assets or liabilities under ASC 815, Derivatives and Hedging , and, therefore, do not qualify for hedge accounting. The derivatives are recorded on the balance sheet at fair value and changes in fair value of both the customer and the offsetting swap agreements are recorded (and essentially offset) in non-interest income. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820, Fair Value Measurements and Disclosures ), resulting in some volatility in earnings each period. |
Stock Option and Restricted Stock Award Plans | STOCK OPTION AND RESTRICTED STOCK AWARD PLANS are maintained by the Corporation. The compensation costs are recognized for stock options and restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the appropriate service period, which is generally two or three years . |
Net Income Per Share | NET INCOME PER SHARE is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding, plus the dilutive effect of outstanding stock options and nonvested restricted stock. |
Reclassifications | RECLASSIFICATIONS have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. |
Recent Accounting Changes | RECENT ACCOUNTING CHANGES ADOPTED IN 2019 FASB Accounting Standards Update No. 2018-11 - Leases (Topic 842): Targeted Improvements - The FASB issued Accounting Standards Update (ASU) No. 2018-11, Leases (Topic 842): Targeted Improvements. This ASU was intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provided a new transition method and a practical expedient for separating components of a contract. ASU 2018-11 provided entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applied the new leases standard at the adoption date and recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, the Corporation's reporting for the comparative periods presented in the financial statements in the period of adoption is in accordance with GAAP in Topic 840, Leases. The Corporation must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments did not change the existing disclosure requirements in Topic 840 (for example, they did not create interim disclosure requirements that the Corporation previously was not required to provide). The Corporation adopted this new transition method on January 1, 2019, but did not recognize a cumulative-effect adjustment to the opening balance of retained earnings at adoption. Lease disclosures are included in NOTE 10. LEASES of these Notes to Consolidated Financial Statements. The amendments in ASU 2018-11 provided lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: • The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. • The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. The Corporation elected the practical expedient to not separate non-lease components from the associated lease component at adoption, which was January 1, 2019. FASB Accounting Standards Update No. 2018-07 - Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting - The FASB issued an Accounting Standards Update (ASU) intended to reduce cost and complexity and to improve financial reporting for non-employee share-based payments. The ASU expanded the scope of Topic 718, Compensation-Stock Compensation (which currently only includes share-based payments to employees) to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees is substantially aligned. The ASU supersedes Subtopic 505-50, Equity-Equity-Based Payments to Non-Employees. The Corporation adopted the standard in the first quarter of 2019 and adoption of the standard did not have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2017-08 - Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities - The FASB issued Accounting Standards Update (ASU) No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . The ASU shortened the amortization period for certain callable debt securities held at a premium to the earliest call date. Under previous GAAP, entities normally amortized the premium as an adjustment of yield over the contractual life of the instrument. Stakeholders expressed concerns with the approach on the basis that GAAP excluded certain callable debt securities from consideration of early repayment of principal even if the holder was certain the call would be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium was recorded as a loss in earnings. Further, there was diversity in practice (1) in the amortization period for premiums of callable debt securities, and (2) in how the potential for exercise of a call was factored into current impairment assessments. Another issue was that the practice in the United States was to quote, price, and trade callable debt securities using a model that incorporated consideration of calls (also referred to as “yield-to-worst” pricing). The ASU shortened the amortization period for certain callable debt securities held at a premium and required the premium to be amortized to the earliest call date. However, the amendments did not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The Corporation was required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at adoption. The Corporation adopted ASU 2017-08 on January 1, 2019 and adoption of the standard did not have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2016-02 - Leases (Topic 842) - The FASB issued new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees recognize the following for all leases (with the exception of short-term leases) at the commencement date: • A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and • A right-of-use ("ROU") asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers . The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees are no longer provided with a source of off-balance sheet financing. The Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. The Corporation elected to not apply ASC 842 to short-term leases (leases with a term of 12 months or less). Leases with an initial term of 12 months or less are not recorded on the balance sheet as the Corporation expenses the lease on a straight-line basis over the lease term. The Corporation also elected the practical expedient to not separate nonlease components from lease components. Variable payments are not included as part of the consideration of a lease contract and all of the Corporation's nonlease components contain variable payments; therefore, this election will not have any impact on the ROU asset or lease liability. The Corporation adopted this ASU on January 1, 2019 and recorded a ROU asset of $23.3 million and a lease liability of $23.8 million at adoption. Lease disclosures are included in NOTE 10. LEASES of these Notes to Consolidated Financial Statements. NEW ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED AFTER 2019 The Corporation continually monitors potential accounting changes and pronouncements. The following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: FASB Accounting Standards Update No. 2019-11 - Codification Improvements to Topic 326, Financial Instruments - Credit Losses Summary - The FASB issued an Accounting Standards Update (ASU) that addressed issues raised by stakeholders during the implementation of ASU No. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments. Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The ASU includes effective dates and transition requirements that vary depending on whether or not an entity has already adopted ASU 2016-13. The Corporation adopted the standard on January 1, 2020, but adoption of the standard did not have a significant impact on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 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 Summary - The FASB has issued Accounting Standards Update (ASU) No. 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 reduces complexity for the accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The ASU aligns the following requirements for capitalizing implementation costs: • Those incurred in a hosting arrangement that is a service contract, and • Those incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). For calendar-year public companies, the changes will be effective for fiscal years ending after December 15, 2019. For all other calendar-year companies and organizations, the changes will be effective for fiscal years ending after December 15, 2020. The Corporation adopted the standard on January 1, 2020, but adoption of the standard did not have a significant impact on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans Summary - The FASB has issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, that applies to all employers that sponsor defined benefit pension or other postretirement plans. The amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Disclosure Requirements Deleted • The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. • The amount and timing of plan assets expected to be returned to the employer. • Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan. • For public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. Disclosure Requirements Added • An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: • The projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets. • The accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Early adoption is permitted for all entities. The Corporation adopted the standard January 1, 2020, but adoption of the standard did not have a significant impact on the Corporation’s disclosures. FASB Accounting Standards Update No. 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement Summary - The FASB has issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. Certain disclosure requirements related to transfers between Level 1 and Level 2 of the fair value hierarchy and Level 3 valuation process were removed from Topic 820. Disclosures were also added to Topic 820 for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate at a minimum from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. The amendments in ASU No. 2018-13 are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date. The Corporation adopted the standard January 1, 2020, but adoption of the standard did not have a significant impact on the Corporation’s disclosures. FASB Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Summary - The FASB has issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This new guidance was issued to address concerns that current generally accepted accounting principles (GAAP) restricts the ability to record credit losses that are expected, but do not yet meet the “probable” threshold by replacing the current “incurred loss” model for recognizing credit losses with an “expected life of loan loss” model referred to as the Current Expected Credit Loss (CECL) model. Under the CECL model, certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, are required to be presented at the net amount expected to be collected. The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current GAAP, which delays recognition until it is probable a loss has been incurred. The change could materially affect how the allowance for loan losses is determined and cause a charge to earnings through the provision for loan losses. Such charge would adversely affect the financial condition of the Corporation. The ASU is effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 (i.e., January 1, 2020, for calendar year entities). The Corporation adopted this ASU January 1, 2020. The Corporation has developed models that satisfy the requirements of the new standard which will be governed by a system of internal controls and a cross-functional working group consisting of accounting, finance, and credit administration personnel. The loan portfolio was pooled into ten loan segments with similar risk characteristics for which the probability of default/loss given default methodology will be applied. The Corporation intends to utilize a one-year economic forecast period then revert to historical macroeconomic levels for the remaining life of the portfolio. A baseline macroeconomic scenario, along with three other scenarios, will be used to develop a range of estimated credit losses for which to determine the best estimate within. The Corporation will record a one-time cumulative-effect adjustment to retained earnings, net of income taxes, on the consolidated balance sheet as of the beginning of the first quarter of 2020. The allowance will increase by 55 - 65 percent because it will cover expected credit losses over the life of the loan portfolio, which approximates four years, and it includes all purchased loans that were previously excluded from the allowance for loan losses calculation. CECL also requires the establishment of a reserve for potential losses from unfunded commitments that is recorded in other liabilities, separate from allowance for credit losses, which is estimated to be approximately $18 million |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Valuations of the Fair Value of Assets Acquired and Liabilities Assumed | Fair Value Cash and cash equivalents $ 10,222 Interest-bearing time deposits 281,228 Investment securities 212,235 Loans 732,578 Premises and equipment 21,664 Federal Home Loan Bank stock 4,148 Interest receivable 3,361 Cash surrender value of life insurance 59,545 Tax asset, deferred and receivable 5,205 Other assets 6,011 Deposits (1,105,926 ) Securities sold under repurchase agreements (94,760 ) Federal Home Loan Bank advances (10,853 ) Other liabilities (9,807 ) Net tangible assets acquired 114,851 Core deposit intangible 16,527 Goodwill 98,563 Purchase price $ 229,941 |
Schedule of Acquired Loan Data | Acquired loan data for MBT is included in the following table: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 3,531 $ 6,840 $ 2,733 Acquired receivables not subject to ASC 310-30 $ 729,047 $ 907,210 $ 14,722 The following table presents loans acquired during the period ending December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected. There were no loans acquired during the period ending December 31, 2018. 2019 MBT Contractually required payments receivable at acquisition date $ 6,840 Nonaccretable difference 2,733 Expected cash flows at acquisition date 4,107 Accretable difference 576 Basis in loans at acquisition date $ 3,531 |
Schedule of Pro Forma Information from Acquisition | The results of operations of MBT have been included in the Corporation's consolidated financial statements since the acquisition date. The following schedule includes pro forma results for the year ended December 31, 2019 and 2018, as if the MBT acquisition occurred as of the beginning of the periods presented. Year Ended Year Ended Total revenue (net interest income plus other income) $ 474,891 $ 476,878 Net income available to common shareholders $ 161,228 $ 177,906 Earnings per share: Basic $ 2.89 $ 3.19 Diluted $ 2.88 $ 3.18 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Approximate Market Value of Securities | The amortized cost, gross unrealized gains, gross unrealized losses and approximate market value of the Corporation's investment securities at the dates indicated were: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale at December 31, 2019 U.S. Government-sponsored agency securities $ 38,529 $ 346 $ — $ 38,875 State and municipal 859,511 41,092 807 899,796 U.S. Government-sponsored mortgage-backed securities 842,349 10,378 1,404 851,323 Corporate obligations 31 — — 31 Total available for sale 1,740,420 51,816 2,211 1,790,025 Held to maturity at December 31, 2019 U.S. Government-sponsored agency securities 15,619 1 37 15,583 State and municipal 354,115 15,151 107 369,159 U.S. Government-sponsored mortgage-backed securities 434,804 6,921 401 441,324 Foreign investment 1,500 — — 1,500 Total held to maturity 806,038 22,073 545 827,566 Total Investment Securities $ 2,546,458 $ 73,889 $ 2,756 $ 2,617,591 Available for sale at December 31, 2018 U.S. Government-sponsored agency securities $ 13,493 $ 92 $ 3 $ 13,582 State and municipal 605,994 5,995 5,854 606,135 U.S. Government-sponsored mortgage-backed securities 530,209 634 8,396 522,447 Corporate obligations 31 — — 31 Total available for sale 1,149,727 6,721 14,253 1,142,195 Held to maturity at December 31, 2018 U.S. Government-sponsored agency securities 22,618 — 545 22,073 State and municipal 197,909 2,858 872 199,895 U.S. Government-sponsored mortgage-backed securities 268,860 713 3,323 266,250 Foreign investment 1,000 — 1 999 Total held to maturity 490,387 3,571 4,741 489,217 Total Investment Securities $ 1,640,114 $ 10,292 $ 18,994 $ 1,631,412 |
Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position | The following table shows the Corporation’s gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018 : Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2019 State and municipal $ 76,273 $ 807 $ — $ — $ 76,273 $ 807 U.S. Government-sponsored mortgage-backed securities 127,673 1,326 20,796 78 148,469 1,404 Total Temporarily Impaired Available for Sale Securities 203,946 2,133 20,796 78 224,742 2,211 Temporarily Impaired Held to Maturity Securities at December 31, 2019 U.S. Government-sponsored agency securities 3,016 4 12,467 33 15,483 37 State and municipal 22,947 107 — — 22,947 107 U.S. Government-sponsored mortgage-backed securities 124,253 364 7,991 37 132,244 401 Total Temporarily Impaired Held to Maturity Securities 150,216 475 20,458 70 $ 170,674 545 Total Temporarily Impaired Investment Securities $ 354,162 $ 2,608 $ 41,254 $ 148 $ 395,416 $ 2,756 Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2018 U.S. Government-sponsored agency securities $ 1,490 $ 3 $ — $ — $ 1,490 $ 3 State and municipal 234,431 3,958 38,028 1,896 272,459 5,854 U.S. Government-sponsored mortgage-backed securities 196,601 2,400 217,121 5,996 413,722 8,396 Total Temporarily Impaired Available for Sale Securities 432,522 6,361 255,149 7,892 687,671 14,253 Temporarily Impaired Held to Maturity Securities at December 31, 2018 U.S. Government-sponsored agency securities — — 22,073 545 22,073 545 State and municipal 14,952 369 16,786 503 31,738 872 U.S. Government-sponsored mortgage-backed securities 102,828 876 87,268 2,447 190,096 3,323 Foreign investment — — 999 1 999 1 Total Temporarily Impaired Held to Maturity Securities 117,780 1,245 127,126 3,496 244,906 4,741 Total Temporarily Impaired Investment Securities $ 550,302 $ 7,606 $ 382,275 $ 11,388 $ 932,577 $ 18,994 |
Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity | Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2019 Due in one year or less $ 1,134 $ 1,136 $ 9,920 $ 10,105 Due after one through five years 5,031 5,141 45,197 45,654 Due after five through ten years 74,745 76,920 84,153 88,844 Due after ten years 817,161 855,505 231,964 241,639 898,071 938,702 371,234 386,242 U.S. Government-sponsored mortgage-backed securities 842,349 851,323 434,804 441,324 Total Investment Securities $ 1,740,420 $ 1,790,025 $ 806,038 $ 827,566 |
Schedule of Gross Gains on Sales and Redemptions of Available for Sale Securities | Gross gains and losses on the sales and redemptions of available for sale securities for the for the years indicated are shown below. 2019 2018 2017 Sales and Redemptions of Available for Sale Securities: Gross gains $ 4,415 $ 4,269 $ 2,681 Gross losses — — 50 |
Loans and Allowance (Tables)
Loans and Allowance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Composition of Loan Portfolio by Loan Class | The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the years indicated: December 31, 2019 December 31, 2018 Commercial and industrial loans $ 2,109,879 $ 1,726,664 Agricultural production financing and other loans to farmers 93,861 92,404 Real estate loans: Construction 787,568 545,729 Commercial and farmland 3,052,698 2,832,102 Residential 1,143,217 966,421 Home equity 588,984 528,157 Individuals' loans for household and other personal expenditures 135,989 99,788 Public finance and other commercial loans 547,114 433,202 Loans 8,459,310 7,224,467 Allowance for loan losses (80,284 ) (80,552 ) Net Loans $ 8,379,026 $ 7,143,915 |
Changes in Allowance for Loan Losses | The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2019, 2018, and 2017: Twelve Months Ended December 31, 2019 Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Balances, December 31, 2018 $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Provision for losses 733 1,555 239 273 2,800 Recoveries on loans 1,244 1,289 401 619 3,553 Loans charged off (1,732 ) (3,675 ) (569 ) (645 ) (6,621 ) Balances, December 31, 2019 $ 32,902 $ 28,778 $ 4,035 $ 14,569 $ 80,284 Twelve Months Ended December 31, 2018 Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Balances, December 31, 2017 $ 30,420 $ 27,343 $ 3,732 $ 13,537 $ 75,032 Provision for losses 2,097 2,482 679 1,969 7,227 Recoveries on loans 2,456 2,525 302 993 6,276 Loans charged off (2,316 ) (2,741 ) (749 ) (2,177 ) (7,983 ) Balances, December 31, 2018 $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Twelve Months Ended December 31, 2017 Commercial Commercial Real Estate Consumer Residential Total Allowance for loan losses: Balances, December 31, 2016 $ 27,698 $ 23,661 $ 2,923 $ 11,755 $ 66,037 Provision for losses 2,515 3,159 1,078 2,391 9,143 Recoveries on loans 1,590 2,260 324 706 4,880 Loans charged off (1,383 ) (1,737 ) (593 ) (1,315 ) (5,028 ) Balances, December 31, 2017 $ 30,420 $ 27,343 $ 3,732 $ 13,537 $ 75,032 |
Allowance for Credit Losses and Loan Portfolio by Loan Segment | The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated. December 31, 2019 Commercial Commercial Consumer Residential Total Allowance balances: Individually evaluated for impairment $ — $ 231 $ — $ 458 $ 689 Collectively evaluated for impairment 32,902 28,547 4,035 14,111 79,595 Total allowance for loan losses $ 32,902 $ 28,778 $ 4,035 $ 14,569 $ 80,284 Loan balances: Individually evaluated for impairment $ 457 $ 8,728 $ 4 $ 2,520 $ 11,709 Collectively evaluated for impairment 2,748,681 3,821,660 135,985 1,727,966 8,434,292 Loans acquired with deteriorated credit quality 1,716 9,878 — 1,715 13,309 Loans $ 2,750,854 $ 3,840,266 $ 135,989 $ 1,732,201 $ 8,459,310 December 31, 2018 Commercial Commercial Consumer Residential Total Allowance balances: Individually evaluated for impairment $ — $ 1,435 $ 1 $ 436 $ 1,872 Collectively evaluated for impairment 32,657 28,174 3,963 13,886 78,680 Total allowance for loan losses $ 32,657 $ 29,609 $ 3,964 $ 14,322 $ 80,552 Loan balances: Individually evaluated for impairment $ 1,838 $ 17,756 $ 18 $ 2,413 $ 22,025 Collectively evaluated for impairment 2,248,330 3,347,686 99,770 1,490,872 7,186,658 Loans acquired with deteriorated credit quality 2,102 12,389 — 1,293 15,784 Loans $ 2,252,270 $ 3,377,831 $ 99,788 $ 1,494,578 $ 7,224,467 |
Summary of Non-Accrual Loans by Loan class | The following table summarizes the Corporation’s non-accrual loans by loan class for the years indicated: December 31, 2019 December 31, 2018 Commercial and industrial loans $ 1,255 $ 1,803 Agriculture production financing and other loans to farmers 183 679 Real estate loans: Construction 977 8,667 Commercial and farmland 7,007 8,156 Residential 5,062 4,966 Home equity 1,421 1,481 Individuals' loans for household and other personal expenditures 44 42 Public Finance and other commercial loans — 354 Total $ 15,949 $ 26,148 |
Composition of Impaired Loans by Loan Class | The following tables show the composition of the Corporation’s impaired loans, related allowance and interest income recognized while impaired by loan class for the years indicated: December 31, 2019 Unpaid Principal Recorded Related Average Recorded Investment Interest Income Recognized Impaired loans with no related allowance: Commercial and industrial loans $ 320 $ 320 $ — $ 320 $ — Agriculture production financing and other loans to farmers 299 137 — 298 — Real estate loans: Construction 1,206 970 — 1,229 — Commercial and farmland 8,037 5,849 — 6,000 156 Residential 93 76 — 77 3 Total $ 9,955 $ 7,352 $ — $ 7,924 $ 159 Impaired loans with related allowance: Real estate loans: Commercial and farmland $ 2,648 $ 1,909 $ 231 $ 1,909 $ — Residential 2,070 2,044 383 2,083 63 Home equity 417 400 75 409 12 Individuals' loans for household and other personal expenditures 4 4 — 4 $ — Total $ 5,139 $ 4,357 $ 689 $ 4,405 $ 75 Total Impaired Loans $ 15,094 $ 11,709 $ 689 $ 12,329 $ 234 December 31, 2018 Unpaid Principal Recorded Related Average Recorded Investment Interest Income Recognized Impaired loans with no related allowance: Commercial and industrial loans $ 828 $ 806 $ — $ 833 $ — Agriculture production financing and other loans to farmers 679 679 — 679 — Real estate loans: Construction 1,352 614 — 835 — Commercial and farmland 11,176 8,994 — 12,975 165 Residential 118 100 — 101 3 Home equity 49 48 — 48 — Public finance and other commercial loans 353 353 — 353 — Total $ 14,555 $ 11,594 $ — $ 15,824 $ 168 Impaired loans with related allowance: Real estate loans: Construction $ 7,978 $ 7,977 $ 1,429 $ 7,977 $ — Commercial and farmland 171 171 6 171 — Residential 1,958 1,907 362 1,915 57 Home equity 376 358 74 365 10 Individuals' loans for household and other personal expenditures 18 18 1 20 1 Total $ 10,501 $ 10,431 $ 1,872 $ 10,448 $ 68 Total Impaired Loans $ 25,056 $ 22,025 $ 1,872 $ 26,272 $ 236 December 31, 2017 Unpaid Principal Recorded Related Average Recorded Investment Interest Income Recognized Impaired loans with no related allowance: Commercial and industrial loans $ 7,611 $ 1,536 $ — $ 3,839 $ — Agriculture production financing and other loans to farmers 732 700 — 762 — Real estate loans: Commercial and farmland 16,758 15,163 — 17,495 360 Residential 833 519 — 635 — Home equity 40 8 — 14 — Individuals' loans for household and other personal expenditures 5 5 — 7 — Total $ 25,979 $ 17,931 $ — $ 22,752 $ 360 Impaired loans with related allowance: Commercial and industrial loans 812 782 552 1,517 — Agriculture production financing and other loans to farmers 357 327 114 327 — Real estate loans: Commercial and farmland 2,988 2,269 567 2,379 — Residential 1,616 1,572 327 1,580 28 Home equity 350 330 77 332 11 Total $ 6,123 $ 5,280 $ 1,637 $ 6,135 $ 39 Total Impaired Loans $ 32,102 $ 23,211 $ 1,637 $ 28,887 $ 399 |
Credit Quality of Loan Portfolio by Loan Class | The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the years indicated. Consumer non-performing loans include accruing consumer loans 90-days or more delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and the probability, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. December 31, 2019 Commercial Pass Commercial Special Mention Commercial Substandard Commercial Doubtful Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,956,985 $ 81,179 $ 71,715 $ — $ — $ — $ — $ 2,109,879 Agriculture production financing and other loans to farmers 78,558 5,626 9,677 — — — — 93,861 Real estate loans: Construction 749,249 1,613 1,634 — — 35,072 — 787,568 Commercial and farmland 2,894,366 57,776 98,575 — — 1,981 — 3,052,698 Residential 196,710 877 8,075 — — 932,743 4,812 1,143,217 Home equity 24,211 257 682 — — 562,507 1,327 588,984 Individuals' loans for household and other personal expenditures — — — — — 135,944 45 135,989 Public finance and other commercial loans 547,114 — — — — — — 547,114 Loans $ 6,447,193 $ 147,328 $ 190,358 $ — $ — $ 1,668,247 $ 6,184 $ 8,459,310 December 31, 2018 Commercial Pass Commercial Special Mention Commercial Substandard Commercial Doubtful Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 1,660,879 $ 23,246 $ 42,539 $ — — $ — $ — $ 1,726,664 Agriculture production financing and other loans to farmers 78,446 5,966 7,992 — — — — 92,404 Real estate loans: Construction 492,358 2,185 24,224 — — 25,419 1,543 545,729 Commercial and farmland 2,669,491 76,037 84,288 — — 2,285 1 2,832,102 Residential 170,075 7,373 2,076 — — 782,080 4,817 966,421 Home equity 24,653 535 457 — — 500,996 1,516 528,157 Individuals' loans for household and other personal expenditures — — — — — 99,741 47 99,788 Public finance and other commercial loans 432,849 — 353 — — — — 433,202 Loans $ 5,528,751 $ 115,342 $ 161,929 $ — $ — $ 1,410,521 $ 7,924 $ 7,224,467 |
Past Due Aging of Loan Portfolio by Loan Class | The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated: December 31, 2019 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 2,105,445 $ 3,039 $ 136 $ 4 $ 1,255 $ 4,434 $ 2,109,879 Agriculture production financing and other loans to farmers 93,678 — — — 183 183 93,861 Real estate loans: Construction 784,961 1,630 — — 977 2,607 787,568 Commercial and farmland 3,043,318 2,324 49 — 7,007 9,380 3,052,698 Residential 1,133,476 4,290 367 22 5,062 9,741 1,143,217 Home equity 584,023 2,960 538 42 1,421 4,961 588,984 Individuals' loans for household and other personal expenditures 135,399 440 105 1 44 590 135,989 Public finance and other commercial loans 547,114 — — — — — 547,114 Loans $ 8,427,414 $ 14,683 $ 1,195 $ 69 $ 15,949 $ 31,896 $ 8,459,310 December 31, 2018 Current 30-59 Days 60-89 Days Loans 90 Days or More Past Due Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,723,337 $ 1,093 $ 182 $ 249 $ 1,803 $ 3,327 $ 1,726,664 Agriculture production financing and other loans to farmers 89,440 2,285 — — 679 2,964 92,404 Real estate loans: Construction 535,520 64 — 1,478 8,667 10,209 545,729 Commercial and farmland 2,822,515 1,253 178 — 8,156 9,587 2,832,102 Residential 959,252 1,756 430 17 4,966 7,169 966,421 Home equity 524,198 2,164 207 107 1,481 3,959 528,157 Individuals' loans for household and other personal expenditures 99,499 179 64 4 42 289 99,788 Public finance and other commercial loans 432,848 — — — 354 354 433,202 Loans $ 7,186,609 $ 8,794 $ 1,061 $ 1,855 $ 26,148 $ 37,858 $ 7,224,467 |
Schedules of Troubled Debt Restructuring | The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2019 and 2018 , that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. Twelve Months Ended December 31, 2019 Number of Loans Recorded Balance Real estate loans: Residential 1 $ 37 Total 1 $ 37 Twelve Months Ended December 31, 2018 Number of Loans Recorded Balance Real estate loans: Residential 2 $ 75 Total 2 $ 75 The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the periods ended December 31, 2019 and 2018 : December 31, 2019 Pre-Modification Post-Modification Number Real estate loans: Residential $ 636 $ 629 11 Home equity 56 61 2 Total $ 692 $ 690 13 December 31, 2018 Pre-Modification Post-Modification Number Real estate loans: Commercial and farmland $ 85 $ 85 1 Residential 490 487 11 Home equity 81 81 3 Individuals' loans for household and other personal expenditures 65 66 3 Total $ 721 $ 719 18 The following tables summarize the recorded investment of troubled debt restructures as of December 31, 2019 and 2018 , by modification type, that occurred during the years indicated: December 31, 2019 Term Rate Combination Total Real estate loans: Residential $ 95 $ 87 $ 432 $ 614 Home equity — — 61 61 Total $ 95 $ 87 $ 493 $ 675 December 31, 2018 Term Rate Combination Total Real estate loans: Commercial and farmland $ 85 — — $ 85 Residential — $ 209 $ 239 448 Home equity 106 74 — 180 Individuals' loans for household and other personal expenditures 58 6 — 64 Total $ 249 $ 289 $ 239 $ 777 |
Accounting for Certain Loans _2
Accounting for Certain Loans Acquired in a Purchase (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement | The accretable amount, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below. Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 Beginning balance $ 2,143 $ 2,890 $ 3,950 Additions 576 — 1,608 Accretion (2,387 ) (4,118 ) (6,749 ) Reclassification from nonaccretable 1,965 3,387 4,748 Disposals (165 ) (16 ) (667 ) Ending balance $ 2,132 $ 2,143 $ 2,890 |
Schedule of Loans Acquired for which Contractually Required Payments would not be Collected | Acquired loan data for MBT is included in the following table: Fair Value of Acquired Loans at Acquisition Date Gross Contractual Amounts Receivable at Acquisition Date Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected Acquired receivables subject to ASC 310-30 $ 3,531 $ 6,840 $ 2,733 Acquired receivables not subject to ASC 310-30 $ 729,047 $ 907,210 $ 14,722 The following table presents loans acquired during the period ending December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected. There were no loans acquired during the period ending December 31, 2018. 2019 MBT Contractually required payments receivable at acquisition date $ 6,840 Nonaccretable difference 2,733 Expected cash flows at acquisition date 4,107 Accretable difference 576 Basis in loans at acquisition date $ 3,531 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following table summarizes the Corporation's premises and equipment as of December 31, 2019 and 2018 : 2019 2018 Cost at December 31: Land $ 25,227 $ 21,762 Buildings and Leasehold Improvements 162,391 125,366 Equipment 124,327 86,498 Total Cost 311,945 233,626 Accumulated Depreciation and Amortization (198,890 ) (140,206 ) Net $ 113,055 $ 93,420 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | 2019 2018 Balance, January 1 $ 445,355 $ 445,355 Goodwill acquired 97,844 — Measurement period adjustment 719 $ — Balance, December 31 $ 543,918 $ 445,355 |
Other Intangibles (Tables)
Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Core Deposit and Other Intangibles | The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below. 2019 2018 Gross carrying amount $ 85,869 $ 85,869 Core deposit intangible acquired 16,527 — Accumulated amortization (67,434 ) (61,440 ) Core Deposit and Other Intangibles $ 34,962 $ 24,429 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense is summarized as follows: Amortization Expense 2020 $ 5,987 2021 5,429 2022 5,027 2023 4,827 2024 4,241 After 2024 9,451 $ 34,962 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information | Supplemental balance sheet information related to leases is presented in the table below as of December 31, 2019 . December 31, 2019 Operating lease assets $ 20,747 Total lease assets $ 20,747 Operating lease liabilities $ 21,421 Total Lease liabilities $ 21,421 Weighted average remaining lease term (years) Operating leases 8.9 Weighted average discount rate Operating leases 3.4 % |
Schedule of components of lease expense | The table below presents the components of lease expense for the period indicated. Twelve Months Ended December 31, 2019 Lease Cost: Operating lease cost $ 3,617 Short-term lease cost 204 Variable lease cost 948 Sublease income $ (13 ) Total lease cost $ 4,756 |
Schedule of supplemental cash flow information | Supplemental cash flow information related to leases is presented in the tables below. Maturity of lease liabilities Operating Leases 2020 $ 3,434 2021 3,157 2022 3,033 2023 2,654 2024 2,585 2025 and after 10,198 Total lease payments $ 25,061 Less: Present value discount 3,640 Present value of lease liabilities $ 21,421 Other Information Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,422 ROU assets obtained in exchange for new operating lease liabilities $ 23,529 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Deposits | The composition of the deposit portfolio is included in the table below for the years indicated: December 31, 2019 December 31, 2018 Demand deposits $ 5,250,568 $ 3,985,178 Savings deposits 2,896,177 2,282,701 Certificates and other time deposits of $100,000 or more 736,843 593,592 Other certificates and time deposits 741,759 646,682 Brokered deposits 214,609 246,440 Total deposits $ 9,839,956 $ 7,754,593 |
Summary of Contractual Maturities of Time Deposits | At December 31, 2019 , the contractual maturities of time deposits are summarized as follows: Certificates and Other Time Deposits 2020 $ 1,489,274 2021 118,919 2022 47,731 2023 24,636 2024 11,934 After 2024 717 $ 1,693,211 |
Transfers Accounted for as Se_2
Transfers Accounted for as Secured Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Collateral Pledged for all Repurchase Agreements Accounted for as Secured Borrowings | The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of December 31, 2019 and 2018 were: December 31, 2019 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 178,732 $ — $ 7,672 $ 1,542 $ 187,946 December 31, 2018 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 104,883 $ 1,014 $ 7,615 $ — $ 113,512 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the Corporation's borrowings as of December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Federal funds purchased $ 55,000 $ 104,000 Securities sold under repurchase agreements 187,946 113,512 Federal Home Loan Bank advances 351,072 314,986 Subordinated debentures and term loans 138,685 138,463 Total Borrowings $ 732,703 $ 670,961 |
Schedule of Maturities of Long-term Debt | Contractual maturities of borrowings as of December 31, 2019 , are as follows: Maturities in Years Ending December 31: Federal Funds Purchased Securities Sold Federal Home Subordinated 2020 $ 55,000 $ 187,946 $ 41,370 $ — 2021 — — 55,097 — 2022 — — 95,097 — 2023 — — 115,097 — 2024 — — 97 — After 2024 — — 44,314 142,322 ASC 805 fair value adjustments at acquisition — — — (3,637 ) $ 55,000 $ 187,946 $ 351,072 $ 138,685 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments and Classification on the Balance Sheet | The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2019 and December 31, 2018 . Asset Derivatives Liability Derivatives December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Balance Sheet Location Fair Balance Sheet Location Fair Balance Sheet Location Fair Balance Sheet Location Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ — Other Assets $ 135 Other Liabilities $ 1,444 Other Liabilities $ 688 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 27,855 Other Assets $ 11,948 Other Liabilities $ 27,855 Other Liabilities $ 11,948 |
Amount of Gain (Loss) Recognized in Other Comprehensive Income | The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative 2019 2018 Interest rate products $ (1,072 ) $ 247 |
Effect of Derivative Financial Instruments on the Income Statement | The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the years ended December 31, 2019 , 2018 and 2017 . Derivatives Designated as Hedging Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion) 2019 2018 2017 Interest rate contracts Interest expense $ (334 ) $ (470 ) $ (985 ) |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities Recognized in the Balance Sheets Measured at Fair Value on Recurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018 . Fair Value Measurements Using: Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2019 Fair Value (Level 1) (Level 2) (Level 3) Available for sale securities: U.S. Government-sponsored agency securities $ 38,875 $ — $ 38,875 $ — State and municipal 899,796 — 896,938 2,858 U.S. Government-sponsored mortgage-backed securities 851,323 — 851,319 4 Corporate obligations 31 — — 31 Interest rate swap asset 27,855 — 27,855 — Interest rate swap liability 29,299 — 29,299 — Fair Value Measurements Using: Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2018 Fair Value (Level 1) (Level 2) (Level 3) Available for sale securities: U.S. Government-sponsored agency securities $ 13,582 $ — $ 13,582 $ — State and municipal 606,135 — 602,842 3,293 U.S. Government-sponsored mortgage-backed securities 522,447 — 522,443 4 Corporate obligations 31 — — 31 Interest rate swap asset 11,948 — 11,948 — Interest rate cap 135 — 135 — Interest rate swap liability 12,636 — 12,636 — |
Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in the Balance Sheets using Significant Unobservable Level 3 Inputs | The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for year ended December 31, 2019 and 2018 . Available for Sale Securities For The Year Ended December 31, 2019 December 31, 2018 Beginning Balance $ 3,328 $ 3,978 Included in other comprehensive income 80 (49 ) Principal payments (515 ) (601 ) Ending balance $ 2,893 $ 3,328 |
Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in the Balance Sheets | Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for year ended December 31, 2019 and 2018 . Fair Value Measurements Using Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2019 Fair Value (Level 1) (Level 2) (Level 3) Impaired Loans (collateral dependent) $ 5,653 — — $ 5,653 Other real estate owned $ 194 — — $ 194 Fair Value Measurements Using Quoted Prices in Active Significant Other Observable Inputs Significant December 31, 2018 Fair Value (Level 1) (Level 2) (Level 3) Impaired Loans (collateral dependent) $ 11,866 — — $ 11,866 Other real estate owned $ 657 — — $ 657 |
Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other than Goodwill | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2019 and 2018 . December 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 2,858 Discounted cash flow Maturity Call Date 1 month to 15 years Corporate obligations and U.S. Government-sponsored mortgage backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR Impaired loans (collateral dependent) $ 5,653 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (1%) Other real estate owned $ 194 Appraisals Discount to reflect current market conditions 0% - 37% (37%) December 31, 2018 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 3,293 Discounted cash flow Maturity Call Date 1 month to 20 years Corporate obligations and U.S. Government-sponsored mortgage backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR Impaired loans (collateral dependent) $ 11,866 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% (6%) Other real estate owned $ 657 Appraisals Discount to reflect current market conditions 0% - 10% (4%) |
Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Corporation's financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018 . 2019 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets at December 31: Cash and cash equivalents $ 177,201 $ 177,201 $ — $ — Interest-bearing time deposits 118,263 118,263 — — Investment securities available for sale 1,790,025 — 1,787,132 2,893 Investment securities held to maturity 806,038 — 799,884 27,682 Loans held for sale 9,037 — 9,037 — Loans 8,379,026 — — 8,335,340 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 27,855 — 27,855 — Interest receivable 48,901 — 48,901 — Liabilities at December 31: Deposits $ 9,839,956 $ 8,146,745 $ 1,675,202 $ — Borrowings: Federal funds purchased 55,000 — 55,000 — Securities sold under repurchase agreements 187,946 — 187,801 — Federal Home Loan Bank advances 351,072 — 352,581 — Subordinated debentures and term loans 138,685 — 123,571 — Interest rate swap liability 29,299 — 29,299 — Interest payable 6,754 — 6,754 — 2018 Carrying Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets at December 31: Cash and cash equivalents $ 139,247 $ 139,247 $ — $ — Interest-bearing time deposits 36,963 36,963 — — Investment securities available for sale 1,142,195 — 1,138,867 3,328 Investment securities held to maturity 490,387 — 481,377 7,840 Loans held for sale 4,778 — 4,778 — Loans 7,143,915 — — 7,004,193 Federal Home Loan Bank stock 24,588 — 24,588 — Interest rate swap asset 12,083 — 12,083 — Interest receivable 40,881 — 40,881 — Liabilities at December 31: Deposits $ 7,754,593 $ 6,267,879 $ 1,464,129 $ — Borrowings: Federal funds purchased 104,000 — 104,000 — Securities sold under repurchase agreements 113,512 — 113,437 — Federal Home Loan Bank advances 314,986 — 318,728 — Subordinated debentures and term loans 138,463 — 127,298 — Interest rate swap liability 12,636 — 12,636 — Interest payable 5,607 — 5,607 — |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments which Contract Amount Represents Credit Risk | Financial instruments, whose contract amount represents credit risk as of December 31, were as follows: 2019 2018 Amounts of commitments: Loan commitments to extend credit $ 3,005,064 $ 2,684,806 Standby letters of credit $ 30,200 $ 32,862 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2019 and 2018 : Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2018 $ (6,343 ) $ (559 ) $ (14,520 ) $ (21,422 ) Other comprehensive income before reclassifications 48,703 (846 ) 4,579 52,436 Amounts reclassified from accumulated other comprehensive income (3,488 ) 264 84 (3,140 ) Period change 45,215 (582 ) 4,663 49,296 Balance at December 31, 2019 $ 38,872 $ (1,141 ) $ (9,857 ) $ 27,874 Balance at December 31, 2017 $ 8,970 $ (1,125 ) $ (10,753 ) $ (2,908 ) Other comprehensive income before reclassifications (13,872 ) 437 (1,435 ) (14,870 ) Amounts reclassified from accumulated other comprehensive income (3,373 ) 371 (16 ) (3,018 ) Period change (17,245 ) 808 (1,451 ) (17,888 ) Reclassification adjustment under ASU 2018-02 1,932 (242 ) (2,316 ) (626 ) Balance at December 31, 2018 $ (6,343 ) $ (559 ) $ (14,520 ) $ (21,422 ) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Statements of Income for the years ended December 31, 2019 , 2018 and 2017 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2019 2018 2017 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 4,415 $ 4,269 $ 2,631 Other income - net realized gains on sales of available for sale securities Related income tax expense (927 ) (896 ) (921 ) Income tax expense $ 3,488 $ 3,373 $ 1,710 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (334 ) $ (470 ) $ (985 ) Interest expense - subordinated debentures and term loans Related income tax benefit 70 99 345 Income tax expense $ (264 ) $ (371 ) $ (640 ) Unrealized gains (losses) on defined benefit plans Amortization of net loss and prior service costs $ (106 ) $ 20 $ 806 Other expenses - salaries and employee benefits Related income tax benefit (expense) 22 (4 ) (209 ) Income tax expense $ (84 ) $ 16 $ 597 Total reclassifications for the period, net of tax $ 3,140 $ 3,018 1,667 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 4. INVESTMENT SECURITIES. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 14. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. |
Regulatory Capital and Divide_2
Regulatory Capital and Dividends (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | The Corporation's and Bank's actual and required capital ratios as of December 31, 2019 and December 31, 2018 were as follows: Prompt Corrective Action Thresholds Actual Adequately Capitalized Well Capitalized December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital to risk-weighted assets First Merchants Corporation $ 1,400,617 14.29 % $ 783,946 8.00 % N/A N/A First Merchants Bank 1,267,649 12.87 787,753 8.00 $ 984,691 10.00 % Tier 1 capital to risk-weighted assets First Merchants Corporation $ 1,255,333 12.81 % $ 587,960 6.00 % N/A N/A First Merchants Bank 1,187,365 12.06 590,815 6.00 $ 787,753 8.00 % Common equity tier 1 capital to risk-weighted assets First Merchants Corporation $ 1,188,970 12.13 % $ 440,970 4.50 % N/A N/A First Merchants Bank 1,187,365 12.06 443,111 4.50 $ 640,049 6.50 % Tier 1 capital to average assets First Merchants Corporation $ 1,255,333 10.54 % $ 476,383 4.00 % N/A N/A First Merchants Bank 1,187,365 9.99 475,564 4.00 $ 594,455 5.00 % Prompt Corrective Action Thresholds Actual Adequately Capitalized Well Capitalized December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital to risk-weighted assets First Merchants Corporation $ 1,177,725 14.61 % $ 644,871 8.00 % N/A N/A First Merchants Bank 1,092,602 13.46 649,531 8.00 $ 811,914 10.00 % Tier 1 capital to risk-weighted assets First Merchants Corporation $ 1,032,173 12.80 % $ 483,653 6.00 % N/A N/A First Merchants Bank 1,012,050 12.47 487,148 6.00 $ 649,531 8.00 % Common equity tier 1 capital to risk-weighted assets First Merchants Corporation $ 966,032 11.98 % $ 362,740 4.50 % N/A N/A First Merchants Bank 1,012,050 12.47 365,361 4.50 $ 527,744 6.50 % Tier 1 capital to average assets First Merchants Corporation $ 1,032,173 10.91 % $ 378,379 4.00 % N/A N/A First Merchants Bank 1,012,050 10.70 379,397 4.00 $ 472,996 5.00 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Components of Share Based Compensation Awards | The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. The income tax benefit decrease for the year ended December 31, 2018 was due to the reduction of the corporate federal income tax rate from 35 percent to 21 percent as a result of the Tax Cuts and Jobs Act, which was effective January 1, 2018. On January 1, 2017, the implementation of ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting required the income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled. Implementation of the ASU resulted in approximately $433,000 , $644,000 and $935,000 of income tax benefit for the years ended December 31, 2019, 2018 and 2017, respectively. Years Ended December 31, 2019 2018 2017 Stock and ESPP Options Pre-tax compensation expense $ 101 $ 109 $ 121 Income tax expense (benefit) (70 ) (97 ) (322 ) Stock and ESPP option expense, net of income taxes $ 31 $ 12 $ (201 ) Restricted Stock Awards Pre-tax compensation expense $ 4,014 $ 3,483 $ 2,706 Income tax benefit (1,206 ) (1,179 ) (1,561 ) Restricted stock awards expense, net of income taxes $ 2,808 $ 2,304 $ 1,145 Total Share-Based Compensation: Pre-tax compensation expense $ 4,115 $ 3,592 $ 2,827 Income tax benefit (1,276 ) (1,276 ) (1,883 ) Total share-based compensation expense, net of income taxes $ 2,839 $ 2,316 $ 944 |
Stock Option Activity Under Stock Option Plans | Stock option activity under the Corporation's stock option plans, as of December 31, 2019 , and changes during the year ended December 31, 2019 , were as follows: Number of Weighted-Average Price Weighted Average Aggregate Outstanding at January 1, 2019 76,300 $ 12.40 — $ — Exercised (16,950 ) $ 8.51 — $ — Outstanding December 31, 2019 59,350 $ 13.51 2.45 $ 1,666,694 Vested and Expected to Vest at December 31, 2019 59,350 $ 13.51 2.45 $ 1,666,694 Exercisable at December 31, 2019 59,350 $ 13.51 2.45 $ 1,666,694 |
Summary of Unvested RSAs Outstanding | The following table summarizes information on unvested RSAs outstanding as of December 31, 2019 : Number of Weighted-Average Unvested RSAs at January 1, 2019 344,362 $ 36.80 Granted 125,846 $ 35.84 Forfeited (2,588 ) $ 40.53 Vested (116,572 ) $ 24.03 Unvested RSAs at December 31, 2019 351,048 $ 40.67 |
Pension and Other Post Retire_2
Pension and Other Post Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Plans' Funded Status and Amounts Recognized in the Balance Sheets | The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31 , using measurement dates of December 31, 2019 and 2018 . 2019 2018 Change in Benefit Obligation: Benefit obligation at beginning of year $ 73,193 $ 82,157 Service cost 39 8 Interest cost 2,975 2,816 Actuarial (gain) loss 4,007 (6,129 ) Benefits paid (5,145 ) (5,659 ) Net transfer in from MBT acquisition 1,701 — Benefit obligation at end of year $ 76,770 $ 73,193 Change in Plan Assets: Fair value of plan assets at beginning of year $ 76,736 $ 85,213 Actual return on plan assets 12,972 (3,427 ) Employer contributions 558 609 Benefits paid (5,145 ) (5,659 ) End of year 85,121 76,736 Funded status at end of year $ 8,351 $ 3,543 Assets and Liabilities Recognized in the Balance Sheets: Deferred tax asset $ 3,278 $ 3,855 Assets $ 13,291 $ 7,024 Liabilities $ 4,940 $ 3,481 Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic Cost, net of tax, consist of: Accumulated loss $ (9,712 ) $ (14,111 ) Prior service cost (325 ) (409 ) $ (10,037 ) $ (14,520 ) |
Schedule of Accumulated Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets consists solely of the non-qualified plans for certain employees, former employees and former non-employee directors, and is included in the table below. December 31, 2019 December 31, 2018 Projected benefit obligation $ 4,940 $ 3,481 Accumulated benefit obligation $ 4,940 $ 3,481 Fair value of plan assets $ — $ — |
Schedule of Net Periodic Pension Costs | The following table shows the components of net periodic pension benefit cost: December 31, 2019 December 31, 2018 December 31, 2017 Service cost $ 39 $ 8 $ 10 Interest cost 2,975 2,816 3,353 Expected return on plan assets (4,414 ) (4,891 ) (4,778 ) Amortization of prior service cost 87 87 90 Amortization of net loss 404 287 1,218 Settlement loss recognized — — 761 Net periodic pension benefit cost $ (909 ) $ (1,693 ) $ 654 |
Schedule of Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive income: December 31, 2019 December 31, 2018 December 31, 2017 Net periodic pension benefit cost $ (909 ) $ (1,693 ) $ 654 Net gain (loss) 4,552 (2,189 ) 1,504 Amortization of net loss 404 287 1,979 Amortization of prior service cost 87 87 90 Total recognized in other comprehensive income (loss) 5,043 (1,815 ) 3,573 Total recognized in net periodic pension benefit cost and other comprehensive income (loss) $ 5,952 $ (122 ) $ 2,919 |
Schedule of Amounts in Accumulated Other Comprehensive Income to be Recognized over Next Fiscal Year | The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic pension benefit cost over the next fiscal year are: December 31, 2019 December 31, 2018 December 31, 2017 Amortization of net loss $ (208 ) $ (432 ) $ (830 ) Amortization of prior service cost (87 ) (87 ) (87 ) Total $ (295 ) $ (519 ) $ (917 ) |
Schedule of Assumptions Used | Significant assumptions include: December 31, 2019 December 31, 2018 December 31, 2017 Weighted-average Assumptions Used to Determine Benefit Obligation: Discount rate 3.20 % 4.30 % 3.60 % Rate of compensation increase for accruing active participants n/a n/a n/a Weighted-average Assumptions Used to Determine Cost: Discount rate 4.30 % 3.60 % 4.20 % Expected return on plan assets 6.00 % 6.00 % 6.00 % Rate of compensation increase for accruing active participants n/a n/a n/a |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2019 . The minimum contribution required in 2020 will likely be zero , but the Corporation may decide to make a discretionary contribution during the year. 2020 $ 5,662 2021 5,549 2022 5,547 2023 5,418 2024 5,241 After 2024 24,435 $ 51,852 |
Schedule of Allocation of Plan Assets | Following is a description of the valuation methodologies used for pension plan assets measured at fair value on a recurring basis, as well as the general classification of pension plan assets pursuant to the valuation hierarchy. Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets total $80,689,000 and $71,277,000 as of December 31, 2019 and 2018 , respectively, and include cash and cash equivalents, common stocks, mutual funds and corporate bonds and notes. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. Level 2 plan assets total $4,432,000 and $5,459,000 as of December 31, 2019 and 2018 , respectively, and include governmental agencies, taxable municipal bonds and notes, and certificates of deposit. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. There are no assets classified within Level 3 of the hierarchy at December 31, 2019 and 2018 . Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Fair Value (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 2,578 $ 2,578 $ — $ — Corporate Bonds and Notes 17,629 17,629 — — Government Agency and Municipal Bonds and Notes 3,660 — 3,660 — Certificates of Deposit 772 — 772 — Party-in-Interest Investments Common Stock 2,516 2,516 — — Mutual Funds Taxable Bond 13,938 13,938 — — Large Cap Equity 21,958 21,958 — — Mid Cap Equity 10,407 10,407 — — Small Cap Equity 5,753 5,753 — — International Equity 3,898 3,898 — — Specialty Alternative Equity 2,012 2,012 — — $ 85,121 $ 80,689 $ 4,432 $ — Fair Value Measurements Using Quoted Prices in Significant Other Observable Inputs Significant December 31, 2018 Fair Value (Level 1) (Level 2) (Level 3) Cash & Cash Equivalents $ 3,026 $ 3,026 $ — $ — Corporate Bonds and Notes 16,691 16,691 — — Government Agency and Municipal Bonds and Notes 4,479 — 4,479 — Certificates of Deposit 980 — 980 — Party-in-Interest Investments Common Stock 2,073 2,073 — — Mutual Funds Taxable Bond 12,817 12,817 — — Large Cap Equity 18,269 18,269 — — Mid Cap Equity 8,735 8,735 — — Small Cap Equity 4,713 4,713 — — International Equity 3,336 3,336 — — Specialty Alternative Equity 1,617 1,617 — — $ 76,736 $ 71,277 $ 5,459 $ — Plan assets are re-balanced quarterly. At December 31, 2019 and 2018 , plan assets by category are as follows: December 31, 2019 December 31, 2018 Actual Target Actual Target Cash and cash equivalents 3.0 % 3.0 % 3.9 % 3.0 % Equity securities 52.3 50.0 48.4 50.0 Debt securities 42.3 45.0 45.6 45.0 Alternative investments 2.4 2.0 2.1 2.0 100.0 % 100.0 % 100.0 % 100.0 % |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Federal Statutory to Actual Tax Expense | The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 Reconciliation of Federal Statutory to Actual Tax Expense: Federal Statutory Income Tax at 21% for 2019 and 2018 and 35% for 2017 $ 40,695 $ 39,509 $ 46,758 Tax-exempt Interest Income (10,124 ) (8,347 ) (11,127 ) Stock Compensation (459 ) (622 ) (893 ) Earnings on Life Insurance (953 ) (868 ) (2,302 ) Tax Credits (263 ) (615 ) (811 ) Tax Cuts and Jobs Act - Rate Reform Impact — — 5,120 Other 429 (58 ) 779 Income Tax Expense $ 29,325 $ 28,999 $ 37,524 Effective Tax Rate 15.1 % 15.4 % 28.1 % |
Components of Income Tax Expense (Benefit) | Income tax expense consists of the following components for the years ended December 31, 2019 , 2018 , 2017 : 2019 2018 2017 Income Tax Expense for the Year Ended December 31: Currently Payable: Federal $ 23,938 $ 23,633 $ 22,001 State 422 1,842 — Deferred: Federal 4,726 6,723 9,969 Tax Cuts and Jobs Act - Rate Reform Impact — — 5,120 State 239 (3,199 ) 434 Income Tax Expense $ 29,325 $ 28,999 $ 37,524 |
Deferred Tax Assets and Liabilities | Significant components of the net deferred tax assets (liabilities) resulting from temporary differences were as follows at December 31, 2019 and 2018 : 2019 2018 Deferred Tax Asset at December 31: Assets: Differences in Accounting for Loan Losses $ 19,717 $ 19,785 Differences in Accounting for Loan Fees 442 749 Differences in Accounting for Loans and Securities — 710 Deferred Compensation 4,436 2,101 Federal & State Income Tax Loss Carryforward and Credits 6,205 6,954 Net Unrealized Loss on Securities Available for Sale — 1,686 Other 3,499 2,028 Total Assets 34,299 34,013 Liabilities: Differences in Depreciation Methods 5,240 6,496 Differences in Accounting for Loans and Securities 1,192 — Difference in Accounting for Pensions and Other Employee Benefits 1,556 566 State Income Tax 778 791 Net Unrealized Gain on Securities Available for Sale 10,333 — Gain on FDIC Modified Whole Bank Transaction 413 487 Other 6,506 4,271 Total Liabilities 26,018 12,611 Net Deferred Tax Asset Before Valuation Allowance 8,281 21,402 Valuation allowance: Beginning Balance — (6,966 ) Decrease/(Increase) During the Year — 6,966 Ending Balance — — Net Deferred Tax Asset $ 8,281 $ 21,402 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income Per Share | The following table reconciles basic and diluted net income per share for the years indicated: 2019 2018 2017 Weighted-Average Shares Weighted-Average Shares Weighted-Average Shares Basic net income per share: Net income available to common stockholders $ 164,460 51,412,133 $ 3.20 $ 159,139 49,262,015 $ 3.23 $ 96,070 45,181,221 $ 2.13 Effect of dilutive stock options and restricted stock awards 149,105 208,908 221,757 Diluted net income per share: Net income available to common stockholders $ 164,460 51,561,238 $ 3.19 $ 159,139 49,470,923 $ 3.22 $ 96,070 45,402,978 $ 2.12 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations (Unaudited) | The following table sets forth certain quarterly results for the years ended December 31, 2019 and 2018 : 2019 2018 First Second Third Fourth First Second Third Fourth Interest income $ 108,813 $ 112,639 $ 118,132 $ 125,821 $ 93,620 $ 100,871 $ 104,800 $ 108,653 Interest expense 23,947 27,361 29,200 28,237 13,704 16,300 18,314 20,769 Net interest income 84,866 85,278 88,932 97,584 79,916 84,571 86,486 87,884 Provision for loan losses 1,200 500 600 500 2,500 1,663 1,400 1,664 Net interest income after provision for loan losses 83,666 84,778 88,332 97,084 77,416 82,908 85,086 86,220 Non-interest income 18,713 21,614 22,116 24,245 19,561 18,191 19,527 19,180 Non-interest expense 56,621 57,587 67,354 65,201 53,687 53,504 55,022 57,738 Income before income tax expense 45,758 48,805 43,094 56,128 43,290 47,595 49,591 47,662 Income tax expense 6,941 7,749 6,337 8,298 6,611 7,961 8,478 5,949 Net income available to common stockholders $ 38,817 $ 41,056 $ 36,757 $ 47,830 $ 36,679 $ 39,634 $ 41,113 $ 41,713 Basic EPS $ 0.79 $ 0.83 $ 0.71 $ 0.87 $ 0.75 $ 0.80 $ 0.83 $ 0.85 Diluted EPS $ 0.78 $ 0.83 $ 0.71 $ 0.87 $ 0.74 $ 0.80 $ 0.83 $ 0.85 Average Shares Outstanding: Basic 49,369,024 49,432,167 51,433,227 55,348,176 49,192,647 49,252,580 49,286,945 49,314,276 Diluted 49,540,844 49,549,887 51,569,557 55,519,953 49,427,972 49,451,406 49,492,019 49,511,233 |
Condensed Financial Informati_2
Condensed Financial Information (parent company only) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Parent Company Information, Condensed Balance Sheets | Condensed Balance Sheets December 31, 2019 December 31, 2018 Assets Cash $ 127,723 $ 87,435 Investment in subsidiaries 1,791,070 1,459,036 Premises and equipment 153 1,158 Interest receivable 6 6 Goodwill 448 448 Cash surrender value of life insurance 837 810 Other assets 16,803 5,240 Total assets $ 1,937,040 $ 1,554,133 Liabilities Subordinated debentures and term loans $ 138,685 $ 138,463 Interest payable 977 994 Other liabilities 10,941 6,416 Total liabilities 150,603 145,873 Stockholders' equity 1,786,437 1,408,260 Total liabilities and stockholders' equity $ 1,937,040 $ 1,554,133 |
Schedule of Parent Company Information, Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income December 31, 2019 December 31, 2018 December 31, 2017 Income Dividends from subsidiaries $ 125,775 $ 100,954 $ 33,014 Loss on sale of available for sale securities — — (50 ) Other income 172 572 350 Total income 125,947 101,526 33,314 Expenses Interest expense 8,309 8,233 7,572 Salaries and employee benefits 3,540 3,729 4,118 Net occupancy and equipment expenses 802 851 797 Other outside services 1,889 489 1,810 Professional services 303 270 442 Other expenses 1,587 442 (385 ) Total expenses 16,430 14,014 14,354 Income before income tax benefit and equity in undistributed income of subsidiaries 109,517 87,512 18,960 Income tax benefit 3,575 3,298 5,946 Income before equity in undistributed income of subsidiaries 113,092 90,810 24,906 Equity in undistributed income of subsidiaries 51,368 68,329 71,164 Net income available to common stockholders $ 164,460 $ 159,139 $ 96,070 Net income $ 164,460 $ 159,139 $ 96,070 Other comprehensive income (loss) 49,296 (17,888 ) 10,673 Comprehensive income $ 213,756 $ 141,251 $ 106,743 |
Schedule of Parent Company Information, Condensed Statement of Cash Flows | Condensed Statements of Cash Flows December 31, 2019 December 31, 2018 December 31, 2017 Cash Flow From Operating Activities: Net income $ 164,460 $ 159,139 $ 96,070 Adjustments to Reconcile Net Income to Net Cash: Share-based compensation 1,339 1,256 1,215 Distributions in excess of (equity in undistributed) income of subsidiaries (51,368 ) (68,329 ) (71,164 ) Loss on sale of available for sale securities — — 50 Net Change in: Other assets (8,944 ) 584 3,358 Other liabilities 4,611 274 (1,900 ) Investment in subsidiaries - operating activities (268 ) 841 1,112 Net cash provided by operating activities 109,830 93,765 28,741 Cash Flow From Investing Activities: Net cash received in acquisition 78 — 37 Other — 2,189 — Net cash provided by investing activities 78 2,189 37 Cash Flow From Financing Activities: Cash dividends (51,276 ) (41,660 ) (31,820 ) Stock issued under employee benefit plans 702 707 519 Stock issued under dividend reinvestment and stock purchase plan 1,531 1,211 991 Stock options exercised 144 1,598 2,398 Restricted shares withheld for taxes (1,680 ) (1,902 ) (1,283 ) Repurchases of common stock (19,041 ) — — Net cash used by financing activities (69,620 ) (40,046 ) (29,195 ) Net change in cash 40,288 55,908 (417 ) Cash, beginning of the year 87,435 31,527 31,944 Cash, end of year $ 127,723 $ 87,435 $ 31,527 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies - Allowance for Loan Losses (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)key_element | |
Accounting Policies [Abstract] | |
Number of key element used in assessing the appropriateness of the allowance for loan losses | key_element | 3 |
Commercial relationships threshold that exhibit credit weaknesses | $ | $ 500,000 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Premises and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Maximum | |
Premises and Equipment [Line Items] | |
Estimated useful lives of assets | 40 years |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Intangible Assets [Abstract] | |
Estimated useful lives of intangible assets | 2 years |
Maximum | |
Intangible Assets [Abstract] | |
Estimated useful lives of intangible assets | 10 years |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies - Stock Option and Restricted Stock Award Plans (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Schedule of Stock Options and Restricted Stock Award Plans [Line Items] | |
Requisite service period | 2 years |
Maximum | |
Schedule of Stock Options and Restricted Stock Award Plans [Line Items] | |
Requisite service period | 3 years |
Nature of Operations and Summ_7
Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Changes (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 20,747 | ||
Operating lease liabilities | $ 21,421 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease assets | $ 23,300 | ||
Operating lease liabilities | $ 23,800 | ||
Minimum | Forecast | ASU 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in Allowance, Percent | 55.00% | ||
Maximum | Forecast | ASU 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in Allowance, Percent | 65.00% | ||
Unfunded dommitment | Forecast | ASU 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reserve for potential losses from unfunded commitments | $ 18,000 |
Acquisition - Acquisitions Narr
Acquisition - Acquisitions Narrative (Details) | Sep. 01, 2019USD ($)bank_branchshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)shares |
Business Acquisition [Line Items] | ||||
Issuance of common stock related to acquisitions | $ 229,926,000 | $ 0 | $ 321,431,000 | |
Common Stock | ||||
Business Acquisition [Line Items] | ||||
Number of shares of common stock | 0.275 | |||
Stock issued as a part of acquisition (in shares) | shares | 6,383,806 | 8,044,446 | ||
Issuance of common stock related to acquisitions | $ 798,000 | $ 1,006,000 | ||
MBT | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
Number of banking centers acquired | bank_branch | 20 | |||
Other intangible assets | $ 16,527,000 | |||
Operating revenue | 19,700,000 | |||
Non-recurring expenses | $ 19,700,000 | $ 877,000 | ||
MBT | Core deposit intangible acquired | ||||
Business Acquisition [Line Items] | ||||
Other intangible assets | $ 16,527,000 | |||
Acquired intangible asset, expected useful life | 10 years | |||
MBT | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Number of shares of common stock | 0.275 | |||
Stock issued as a part of acquisition (in shares) | shares | 6,400,000 | |||
Issuance of common stock related to acquisitions | $ 229,900,000 |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 543,918 | $ 445,355 | $ 445,355 | |
MBT | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 10,222 | |||
Interest-bearing time deposits | 281,228 | |||
Investment securities | 212,235 | |||
Loans | 732,578 | |||
Premises and equipment | 21,664 | |||
Federal Home Loan Bank stock | 4,148 | |||
Cash surrender value of life insurance | 3,361 | |||
Tax asset, deferred and receivable | 59,545 | |||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 5,205 | |||
Other assets | 6,011 | |||
Deposits | (1,105,926) | |||
Securities sold under repurchase agreements | (94,760) | |||
Federal Home Loan Bank advances | (10,853) | |||
Other liabilities | (9,807) | |||
Net tangible assets acquired | 114,851 | |||
Core deposit intangible | 16,527 | |||
Goodwill | 98,563 | |||
Purchase price | $ 229,941 |
Acquisition - Schedule of Acqui
Acquisition - Schedule of Acquired Loan Data (Details) (Details) - MBT - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 01, 2019 |
Business Acquisition [Line Items] | ||
Fair Value of Acquired Loans at Acquisition Date, subject to ASC 310-30 | $ 3,531 | $ 3,531 |
Gross Contractual Amounts Receivable at Acquisition Date, subject to ASC 310-30 | $ 6,840 | 6,840 |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, subject to ASC 310-30 | 2,733 | |
Fair Value of Acquired Loans at Acquisition Date, not subject to ASC 310-30 | 729,047 | |
Gross Contractual Amounts Receivable at Acquisition Date, not subject to ASC 310-30 | 907,210 | |
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, not subject to ASC 310-30 | $ 14,722 |
Acquisition - Pro Forma Informa
Acquisition - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||
Total revenue (net interest income plus other income) | $ 474,891 | $ 476,878 |
Net income available to common shareholders | $ 161,228 | $ 177,906 |
Earnings per share: | ||
Basic (in dollars per share) | $ 2.89 | $ 3.19 |
Diluted (in dollars per share) | $ 2.88 | $ 3.18 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Cash balance, Federal Home Loan Bank And Federal Reserve Bank | $ 39,844 |
Cash reserve with Federal Reserve Bank | 78,934 |
Interest-bearing Deposits | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Cash amount that exceeded federally insured limits | $ 190,378 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Approximate Fair Values of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total available for sale | ||
Amortized Cost | $ 1,740,420 | $ 1,149,727 |
Gross Unrealized Gains | 51,816 | 6,721 |
Gross Unrealized Losses | 2,211 | 14,253 |
Fair Value | 1,790,025 | 1,142,195 |
Total held to maturity | ||
Amortized Cost | 806,038 | 490,387 |
Gross Unrealized Gains | 22,073 | 3,571 |
Gross Unrealized Losses | 545 | 4,741 |
Fair Value | 827,566 | 489,217 |
Total Investment Securities | ||
Amortized Cost | 2,546,458 | 1,640,114 |
Gross Unrealized Gains | 73,889 | 10,292 |
Gross Unrealized Losses | 2,756 | 18,994 |
Fair Value | 2,617,591 | 1,631,412 |
U.S. Government-sponsored agency securities | ||
Total available for sale | ||
Amortized Cost | 38,529 | 13,493 |
Gross Unrealized Gains | 346 | 92 |
Gross Unrealized Losses | 0 | 3 |
Fair Value | 38,875 | 13,582 |
Total held to maturity | ||
Amortized Cost | 15,619 | 22,618 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 37 | 545 |
Fair Value | 15,583 | 22,073 |
State and municipal | ||
Total available for sale | ||
Amortized Cost | 859,511 | 605,994 |
Gross Unrealized Gains | 41,092 | 5,995 |
Gross Unrealized Losses | 807 | 5,854 |
Fair Value | 899,796 | 606,135 |
Total held to maturity | ||
Amortized Cost | 354,115 | 197,909 |
Gross Unrealized Gains | 15,151 | 2,858 |
Gross Unrealized Losses | 107 | 872 |
Fair Value | 369,159 | 199,895 |
U.S. Government-sponsored mortgage-backed securities | ||
Total available for sale | ||
Amortized Cost | 842,349 | 530,209 |
Gross Unrealized Gains | 10,378 | 634 |
Gross Unrealized Losses | 1,404 | 8,396 |
Fair Value | 851,323 | 522,447 |
Total held to maturity | ||
Amortized Cost | 434,804 | 268,860 |
Gross Unrealized Gains | 6,921 | 713 |
Gross Unrealized Losses | 401 | 3,323 |
Fair Value | 441,324 | 266,250 |
Corporate obligations | ||
Total available for sale | ||
Amortized Cost | 31 | 31 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 31 | 31 |
Foreign investment | ||
Total held to maturity | ||
Amortized Cost | 1,500 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | $ 1,500 | $ 999 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Fair value of investments | $ 395,416 | $ 932,577 | |
Unrealized losses on available for sale securities | 2,211 | 14,253 | |
Unrealized losses in held to maturity portfolios | 545 | 4,741 | |
Carrying value of securities pledged as collateral | 503,427 | 416,155 | $ 475,999 |
Securities sold under repurchase agreements | 182,856 | 116,691 | |
Investments in Debt and Equity Securities, Reported at Less than Historical Cost | |||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Historical cost | 398,172 | 951,571 | |
Fair value of investments | $ 395,416 | $ 932,577 | |
Percent of the Corporation's available for sale and held to maturity portfolio | 15.20% | 57.10% | |
U.S. Government-Sponsored Mortgage-backed Securities | |||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Unrealized losses on available for sale securities | $ 1,404 | $ 8,396 | |
Available-for-sale number of securities in unrealized loss positions | security | 27 | ||
Unrealized losses in held to maturity portfolios | $ 401 | 3,323 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 15 | ||
State and municipal securities | |||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Unrealized losses on available for sale securities | $ 807 | 5,854 | |
Available-for-sale number of securities in unrealized loss positions | security | 38 | ||
Unrealized losses in held to maturity portfolios | $ 107 | 872 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 18 | ||
U.S. Government-sponsored agency securities | |||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Unrealized losses on available for sale securities | $ 0 | 3 | |
Unrealized losses in held to maturity portfolios | $ 37 | $ 545 | |
Held-to-maturity, number of securities in unrealized loss positions | security | 3 |
Investment Securities - Investm
Investment Securities - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | $ 203,946 | $ 432,522 |
Less than 12 Months, Gross Unrealized Losses | 2,133 | 6,361 |
12 Months or Longer, Fair Value | 20,796 | 255,149 |
12 Months or Longer, Gross Unrealized Losses | 78 | 7,892 |
Total, Fair Value | 224,742 | 687,671 |
Total, Gross Unrealized Losses | 2,211 | 14,253 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 150,216 | 117,780 |
Less than 12 Months, Gross Unrealized Losses | 475 | 1,245 |
12 Months or Longer, Fair Value | 20,458 | 127,126 |
12 Months or Longer, Gross Unrealized Losses | 70 | 3,496 |
Total, Fair Value | 170,674 | 244,906 |
Total, Gross Unrealized Losses | 545 | 4,741 |
Less than 12 Months, Fair Value | 354,162 | 550,302 |
Less than 12 Months, Gross Unrealized Losses | 2,608 | 7,606 |
12 Months or Longer, Fair Value | 41,254 | 382,275 |
12 Months or Longer, Gross Unrealized Losses | 148 | 11,388 |
Total, Fair Value | 395,416 | 932,577 |
Total, Gross Unrealized Losses | 2,756 | 18,994 |
Government Agency and Municipal Bonds and Notes | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 1,490 | |
Less than 12 Months, Gross Unrealized Losses | 3 | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Losses | 0 | |
Total, Fair Value | 1,490 | |
Total, Gross Unrealized Losses | 3 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 3,016 | 0 |
Less than 12 Months, Gross Unrealized Losses | 4 | 0 |
12 Months or Longer, Fair Value | 12,467 | 22,073 |
12 Months or Longer, Gross Unrealized Losses | 33 | 545 |
Total, Fair Value | 15,483 | 22,073 |
Total, Gross Unrealized Losses | 37 | 545 |
State and municipal | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 76,273 | 234,431 |
Less than 12 Months, Gross Unrealized Losses | 807 | 3,958 |
12 Months or Longer, Fair Value | 0 | 38,028 |
12 Months or Longer, Gross Unrealized Losses | 0 | 1,896 |
Total, Fair Value | 76,273 | 272,459 |
Total, Gross Unrealized Losses | 807 | 5,854 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 22,947 | 14,952 |
Less than 12 Months, Gross Unrealized Losses | 107 | 369 |
12 Months or Longer, Fair Value | 0 | 16,786 |
12 Months or Longer, Gross Unrealized Losses | 0 | 503 |
Total, Fair Value | 22,947 | 31,738 |
Total, Gross Unrealized Losses | 107 | 872 |
U.S. Government-sponsored mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 127,673 | 196,601 |
Less than 12 Months, Gross Unrealized Losses | 1,326 | 2,400 |
12 Months or Longer, Fair Value | 20,796 | 217,121 |
12 Months or Longer, Gross Unrealized Losses | 78 | 5,996 |
Total, Fair Value | 148,469 | 413,722 |
Total, Gross Unrealized Losses | 1,404 | 8,396 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 124,253 | 102,828 |
Less than 12 Months, Gross Unrealized Losses | 364 | 876 |
12 Months or Longer, Fair Value | 7,991 | 87,268 |
12 Months or Longer, Gross Unrealized Losses | 37 | 2,447 |
Total, Fair Value | 132,244 | 190,096 |
Total, Gross Unrealized Losses | $ 401 | 3,323 |
Foreign investment | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 0 | |
Less than 12 Months, Gross Unrealized Losses | 0 | |
12 Months or Longer, Fair Value | 999 | |
12 Months or Longer, Gross Unrealized Losses | 1 | |
Total, Fair Value | 999 | |
Total, Gross Unrealized Losses | $ 1 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 1,134 | |
Due after one through five years | 5,031 | |
Due after five through ten years | 74,745 | |
Due after ten years | 817,161 | |
Amortized Cost | 898,071 | |
Amortized Cost | 1,740,420 | $ 1,149,727 |
Available for Sale, Fair Value | ||
Due in one year or less | 1,136 | |
Due after one through five years | 5,141 | |
Due after five through ten years | 76,920 | |
Due after ten years | 855,505 | |
Fair Value | 938,702 | |
Total Investment Securities | 1,790,025 | 1,142,195 |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 9,920 | |
Due after one through five years | 45,197 | |
Due after five through ten years | 84,153 | |
Due after ten years | 231,964 | |
Amortized Cost | 371,234 | |
Amortized Cost | 806,038 | 490,387 |
Held to Maturity, Fair Value | ||
Due in one year or less | 10,105 | |
Due after one through five years | 45,654 | |
Due after five through ten years | 88,844 | |
Due after ten years | 241,639 | |
Fair Value | 386,242 | |
Total Investment Securities | 827,566 | $ 489,217 |
U.S. Government-sponsored mortgage-backed securities | ||
Available for Sale, Amortized Cost | ||
U.S. Government-sponsored mortgage-backed securities | 842,349 | |
Available for Sale, Fair Value | ||
Without single maturity date | 851,323 | |
Held to Maturity, Amortized Cost | ||
Without single maturity date | 434,804 | |
Held to Maturity, Fair Value | ||
Without single maturity date | $ 441,324 |
Investment Securities - Gross G
Investment Securities - Gross Gains on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains | $ 4,415,000 | $ 4,269,000 | $ 2,681,000 |
Gross losses | $ 0 | $ 0 | $ 50,000 |
Loans and Allowance - Narrative
Loans and Allowance - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||||||||||||
Loans held for sale | $ 9,037,000 | $ 4,778,000 | $ 9,037,000 | $ 4,778,000 | ||||||||
Loans - allowance for loan losses | 80,284,000 | 80,552,000 | 80,284,000 | 80,552,000 | $ 75,032,000 | $ 66,037,000 | ||||||
Increase in allowance for loan losses | 268,000 | |||||||||||
Net charge offs | 3,068,000 | |||||||||||
Increase in net charge offs | 1,361,000 | |||||||||||
Provision for loan losses | 500,000 | $ 600,000 | $ 500,000 | $ 1,200,000 | 1,664,000 | $ 1,400,000 | $ 1,663,000 | $ 2,500,000 | 2,800,000 | 7,227,000 | 9,143,000 | |
Increase in provision for loan losses | 4,427,000 | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Loans | 8,459,310,000 | 7,224,467,000 | 8,459,310,000 | 7,224,467,000 | ||||||||
Loans - allowance for loan losses | 80,284,000 | 80,552,000 | 80,284,000 | 80,552,000 | 75,032,000 | 66,037,000 | ||||||
Loans acquired with deteriorated credit quality | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Loans | 13,309,000 | 15,784,000 | 13,309,000 | 15,784,000 | ||||||||
Commercial and consumer loan | Loans acquired with deteriorated credit quality | ||||||||||||
Receivables [Abstract] | ||||||||||||
Loans - allowance for loan losses | 124,000 | 0 | 124,000 | 0 | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Loans | 2,819,000 | 1,541,000 | 2,819,000 | 1,541,000 | ||||||||
Loans - allowance for loan losses | 124,000 | 0 | 124,000 | 0 | ||||||||
Residential | ||||||||||||
Receivables [Abstract] | ||||||||||||
Loans - allowance for loan losses | 14,569,000 | 14,322,000 | 14,569,000 | 14,322,000 | 13,537,000 | 11,755,000 | ||||||
Provision for loan losses | 273,000 | 1,969,000 | 2,391,000 | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Loans | 1,732,201,000 | 1,494,578,000 | 1,732,201,000 | 1,494,578,000 | ||||||||
Loans - allowance for loan losses | 14,569,000 | 14,322,000 | $ 14,569,000 | $ 14,322,000 | $ 13,537,000 | $ 11,755,000 | ||||||
Percentage of troubled debt restructured loans | 100.00% | 79.00% | ||||||||||
Mortgage loans for which formal foreclosure proceedings are in process | 1,033,000 | 800,000 | $ 1,033,000 | $ 800,000 | ||||||||
Residential | Loans acquired with deteriorated credit quality | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Loans | $ 1,715,000 | $ 1,293,000 | $ 1,715,000 | $ 1,293,000 |
Loans and Allowance - Compositi
Loans and Allowance - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 8,459,310 | $ 7,224,467 | ||
Allowance for loan losses | (80,284) | (80,552) | $ (75,032) | $ (66,037) |
Net Loans | 8,379,026 | 7,143,915 | ||
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 2,109,879 | 1,726,664 | ||
Agricultural production financing and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 93,861 | 92,404 | ||
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 787,568 | 545,729 | ||
Commercial and farmland | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 3,052,698 | 2,832,102 | ||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,143,217 | 966,421 | ||
Allowance for loan losses | (14,569) | (14,322) | (13,537) | (11,755) |
Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 588,984 | 528,157 | ||
Individuals' loans for household and other personal expenditures | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 135,989 | 99,788 | ||
Allowance for loan losses | (4,035) | (3,964) | $ (3,732) | $ (2,923) |
Public finance and other commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 547,114 | $ 433,202 |
Loans and Allowance - Changes i
Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||||||||||
Beginning balance | $ 80,552 | $ 75,032 | $ 80,552 | $ 75,032 | $ 66,037 | ||||||
Provision for losses | $ 500 | $ 600 | $ 500 | 1,200 | $ 1,664 | $ 1,400 | $ 1,663 | 2,500 | 2,800 | 7,227 | 9,143 |
Recoveries on loans | 3,553 | 6,276 | 4,880 | ||||||||
Loans charged off | (6,621) | (7,983) | (5,028) | ||||||||
Ending balance | 80,284 | 80,552 | 80,284 | 80,552 | 75,032 | ||||||
Commercial | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 32,657 | 30,420 | 32,657 | 30,420 | 27,698 | ||||||
Provision for losses | 733 | 2,097 | 2,515 | ||||||||
Recoveries on loans | 1,244 | 2,456 | 1,590 | ||||||||
Loans charged off | (1,732) | (2,316) | (1,383) | ||||||||
Ending balance | 32,902 | 32,657 | 32,902 | 32,657 | 30,420 | ||||||
Commercial Real Estate | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 29,609 | 27,343 | 29,609 | 27,343 | 23,661 | ||||||
Provision for losses | 1,555 | 2,482 | 3,159 | ||||||||
Recoveries on loans | 1,289 | 2,525 | 2,260 | ||||||||
Loans charged off | (3,675) | (2,741) | (1,737) | ||||||||
Ending balance | 28,778 | 29,609 | 28,778 | 29,609 | 27,343 | ||||||
Consumer | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 3,964 | 3,732 | 3,964 | 3,732 | 2,923 | ||||||
Provision for losses | 239 | 679 | 1,078 | ||||||||
Recoveries on loans | 401 | 302 | 324 | ||||||||
Loans charged off | (569) | (749) | (593) | ||||||||
Ending balance | 4,035 | 3,964 | 4,035 | 3,964 | 3,732 | ||||||
Residential | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | $ 14,322 | $ 13,537 | 14,322 | 13,537 | 11,755 | ||||||
Provision for losses | 273 | 1,969 | 2,391 | ||||||||
Recoveries on loans | 619 | 993 | 706 | ||||||||
Loans charged off | (645) | (2,177) | (1,315) | ||||||||
Ending balance | $ 14,569 | $ 14,322 | $ 14,569 | $ 14,322 | $ 13,537 |
Loans and Allowance - Allowance
Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | $ 689 | $ 1,872 | ||
Allowance balances - Collectively evaluated for impairment | 79,595 | 78,680 | ||
Total allowance for loan losses | 80,284 | 80,552 | $ 75,032 | $ 66,037 |
Loan balances - Individually evaluated for impairment | 11,709 | 22,025 | ||
Loan balances - Collectively evaluated for impairment | 8,434,292 | 7,186,658 | ||
Loans | 8,459,310 | 7,224,467 | ||
Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans | 13,309 | 15,784 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 0 | 0 | ||
Allowance balances - Collectively evaluated for impairment | 32,902 | 32,657 | ||
Total allowance for loan losses | 32,902 | 32,657 | 30,420 | 27,698 |
Loan balances - Individually evaluated for impairment | 457 | 1,838 | ||
Loan balances - Collectively evaluated for impairment | 2,748,681 | 2,248,330 | ||
Loans | 2,750,854 | 2,252,270 | ||
Commercial | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans | 1,716 | 2,102 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 231 | 1,435 | ||
Allowance balances - Collectively evaluated for impairment | 28,547 | 28,174 | ||
Total allowance for loan losses | 28,778 | 29,609 | 27,343 | 23,661 |
Loan balances - Individually evaluated for impairment | 8,728 | 17,756 | ||
Loan balances - Collectively evaluated for impairment | 3,821,660 | 3,347,686 | ||
Loans | 3,840,266 | 3,377,831 | ||
Commercial Real Estate | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans | 9,878 | 12,389 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 0 | 1 | ||
Allowance balances - Collectively evaluated for impairment | 4,035 | 3,963 | ||
Total allowance for loan losses | 4,035 | 3,964 | 3,732 | 2,923 |
Loan balances - Individually evaluated for impairment | 4 | 18 | ||
Loan balances - Collectively evaluated for impairment | 135,985 | 99,770 | ||
Loans | 135,989 | 99,788 | ||
Consumer | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans | 0 | 0 | ||
Residential | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 458 | 436 | ||
Allowance balances - Collectively evaluated for impairment | 14,111 | 13,886 | ||
Total allowance for loan losses | 14,569 | 14,322 | $ 13,537 | $ 11,755 |
Loan balances - Individually evaluated for impairment | 2,520 | 2,413 | ||
Loan balances - Collectively evaluated for impairment | 1,727,966 | 1,490,872 | ||
Loans | 1,732,201 | 1,494,578 | ||
Residential | Loans acquired with deteriorated credit quality | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loans | $ 1,715 | $ 1,293 |
Loans and Allowance - Summary o
Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 15,949 | $ 26,148 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 1,255 | 1,803 |
Agriculture production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 183 | 679 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 977 | 8,667 |
Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 7,007 | 8,156 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 5,062 | 4,966 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 1,421 | 1,481 |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 44 | 42 |
Public finance and other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 0 | $ 354 |
Loans and Allowance - Composi_2
Loans and Allowance - Composition of Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 9,955 | $ 14,555 | $ 25,979 |
Impaired loans with related allowance | 5,139 | 10,501 | 6,123 |
Total Impaired Loans | 15,094 | 25,056 | 32,102 |
Recorded Investment | |||
Impaired loans with no related allowance | 7,352 | 11,594 | 17,931 |
Impaired loans with related allowance | 4,357 | 10,431 | 5,280 |
Total Impaired Loans | 11,709 | 22,025 | 23,211 |
Related Allowance | 689 | 1,872 | 1,637 |
Average Recorded Investment | |||
Impaired loans with no related allowance | 7,924 | 15,824 | 22,752 |
Impaired loans with related allowance | 4,405 | 10,448 | 6,135 |
Total Impaired Loans | 12,329 | 26,272 | 28,887 |
Interest Income Recognized | |||
Impaired loans with no related allowance | 159 | 168 | 360 |
Impaired loans with related allowance | 75 | 68 | 39 |
Total Impaired Loans | 234 | 236 | 399 |
Commercial and industrial loans | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 320 | 828 | 7,611 |
Impaired loans with related allowance | 812 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 320 | 806 | 1,536 |
Impaired loans with related allowance | 782 | ||
Related Allowance | 552 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 320 | 833 | 3,839 |
Impaired loans with related allowance | 1,517 | ||
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | 0 |
Impaired loans with related allowance | 0 | ||
Agriculture production financing and other loans to farmers | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 299 | 679 | 732 |
Impaired loans with related allowance | 357 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 137 | 679 | 700 |
Impaired loans with related allowance | 327 | ||
Related Allowance | 114 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 298 | 679 | 762 |
Impaired loans with related allowance | 327 | ||
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | 0 |
Impaired loans with related allowance | 0 | ||
Construction | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 1,206 | 1,352 | |
Impaired loans with related allowance | 7,978 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 970 | 614 | |
Impaired loans with related allowance | 7,977 | ||
Related Allowance | 1,429 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 1,229 | 835 | |
Impaired loans with related allowance | 7,977 | ||
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | |
Impaired loans with related allowance | 0 | ||
Commercial and farmland | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 8,037 | 11,176 | 16,758 |
Impaired loans with related allowance | 2,648 | 171 | 2,988 |
Recorded Investment | |||
Impaired loans with no related allowance | 5,849 | 8,994 | 15,163 |
Impaired loans with related allowance | 1,909 | 171 | 2,269 |
Related Allowance | 231 | 6 | 567 |
Average Recorded Investment | |||
Impaired loans with no related allowance | 6,000 | 12,975 | 17,495 |
Impaired loans with related allowance | 1,909 | 171 | 2,379 |
Interest Income Recognized | |||
Impaired loans with no related allowance | 156 | 165 | 360 |
Impaired loans with related allowance | 0 | 0 | 0 |
Residential | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 93 | 118 | 833 |
Impaired loans with related allowance | 2,070 | 1,958 | 1,616 |
Recorded Investment | |||
Impaired loans with no related allowance | 76 | 100 | 519 |
Impaired loans with related allowance | 2,044 | 1,907 | 1,572 |
Related Allowance | 383 | 362 | 327 |
Average Recorded Investment | |||
Impaired loans with no related allowance | 77 | 101 | 635 |
Impaired loans with related allowance | 2,083 | 1,915 | 1,580 |
Interest Income Recognized | |||
Impaired loans with no related allowance | 3 | 3 | 0 |
Impaired loans with related allowance | 63 | 57 | 28 |
Home equity | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 49 | 40 | |
Impaired loans with related allowance | 417 | 376 | 350 |
Recorded Investment | |||
Impaired loans with no related allowance | 48 | 8 | |
Impaired loans with related allowance | 400 | 358 | 330 |
Related Allowance | 75 | 74 | 77 |
Average Recorded Investment | |||
Impaired loans with no related allowance | 48 | 14 | |
Impaired loans with related allowance | 409 | 365 | 332 |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | |
Impaired loans with related allowance | 12 | 10 | 11 |
Individuals' loans for household and other personal expenditures | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 5 | ||
Impaired loans with related allowance | 4 | 18 | |
Recorded Investment | |||
Impaired loans with no related allowance | 5 | ||
Impaired loans with related allowance | 4 | 18 | |
Related Allowance | 0 | 1 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 7 | ||
Impaired loans with related allowance | 4 | 20 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | $ 0 | ||
Impaired loans with related allowance | $ 0 | 1 | |
Public finance and other commercial loans | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 353 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 353 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 353 | ||
Interest Income Recognized | |||
Impaired loans with no related allowance | $ 0 |
Loans and Allowance - Credit Qu
Loans and Allowance - Credit Quality of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 8,459,310 | $ 7,224,467 |
Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,109,879 | 1,726,664 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 93,861 | 92,404 |
Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 787,568 | 545,729 |
Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,052,698 | 2,832,102 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,143,217 | 966,421 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 588,984 | 528,157 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 135,989 | 99,788 |
Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 547,114 | 433,202 |
Commercial Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,447,193 | 5,528,751 |
Commercial Pass | Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,956,985 | 1,660,879 |
Commercial Pass | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 78,558 | 78,446 |
Commercial Pass | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 749,249 | 492,358 |
Commercial Pass | Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,894,366 | 2,669,491 |
Commercial Pass | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 196,710 | 170,075 |
Commercial Pass | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 24,211 | 24,653 |
Commercial Pass | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Pass | Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 547,114 | 432,849 |
Commercial Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 147,328 | 115,342 |
Commercial Special Mention | Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 81,179 | 23,246 |
Commercial Special Mention | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 5,626 | 5,966 |
Commercial Special Mention | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,613 | 2,185 |
Commercial Special Mention | Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 57,776 | 76,037 |
Commercial Special Mention | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 877 | 7,373 |
Commercial Special Mention | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 257 | 535 |
Commercial Special Mention | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Special Mention | Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 190,358 | 161,929 |
Commercial Substandard | Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 71,715 | 42,539 |
Commercial Substandard | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,677 | 7,992 |
Commercial Substandard | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,634 | 24,224 |
Commercial Substandard | Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 98,575 | 84,288 |
Commercial Substandard | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,075 | 2,076 |
Commercial Substandard | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 682 | 457 |
Commercial Substandard | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Substandard | Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 353 |
Commercial Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Doubtful | Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial Loss | Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,668,247 | 1,410,521 |
Consumer Performing | Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer Performing | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer Performing | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 35,072 | 25,419 |
Consumer Performing | Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,981 | 2,285 |
Consumer Performing | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 932,743 | 782,080 |
Consumer Performing | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 562,507 | 500,996 |
Consumer Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 135,944 | 99,741 |
Consumer Performing | Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer Non Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,184 | 7,924 |
Consumer Non Performing | Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer Non Performing | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer Non Performing | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 1,543 |
Consumer Non Performing | Commercial and farmland | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 1 |
Consumer Non Performing | Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,812 | 4,817 |
Consumer Non Performing | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,327 | 1,516 |
Consumer Non Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 45 | 47 |
Consumer Non Performing | Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance - Past Due
Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 8,427,414 | $ 7,186,609 |
Loans 90 Days or More Past Due And Accruing | 69 | 1,855 |
Non-Accrual | 15,949 | 26,148 |
Total Past Due & Non-Accrual | 31,896 | 37,858 |
Total | 8,459,310 | 7,224,467 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 14,683 | 8,794 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,195 | 1,061 |
Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 2,105,445 | 1,723,337 |
Loans 90 Days or More Past Due And Accruing | 4 | 249 |
Non-Accrual | 1,255 | 1,803 |
Total Past Due & Non-Accrual | 4,434 | 3,327 |
Total | 2,109,879 | 1,726,664 |
Commercial and industrial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 3,039 | 1,093 |
Commercial and industrial loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 136 | 182 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 93,678 | 89,440 |
Loans 90 Days or More Past Due And Accruing | 0 | 0 |
Non-Accrual | 183 | 679 |
Total Past Due & Non-Accrual | 183 | 2,964 |
Total | 93,861 | 92,404 |
Agricultural production financing and other loans to farmers | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 2,285 |
Agricultural production financing and other loans to farmers | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 784,961 | 535,520 |
Loans 90 Days or More Past Due And Accruing | 0 | 1,478 |
Non-Accrual | 977 | 8,667 |
Total Past Due & Non-Accrual | 2,607 | 10,209 |
Total | 787,568 | 545,729 |
Construction | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,630 | 64 |
Construction | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial and farmland | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 3,043,318 | 2,822,515 |
Loans 90 Days or More Past Due And Accruing | 0 | 0 |
Non-Accrual | 7,007 | 8,156 |
Total Past Due & Non-Accrual | 9,380 | 9,587 |
Total | 3,052,698 | 2,832,102 |
Commercial and farmland | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2,324 | 1,253 |
Commercial and farmland | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 49 | 178 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,133,476 | 959,252 |
Loans 90 Days or More Past Due And Accruing | 22 | 17 |
Non-Accrual | 5,062 | 4,966 |
Total Past Due & Non-Accrual | 9,741 | 7,169 |
Total | 1,143,217 | 966,421 |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 4,290 | 1,756 |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 367 | 430 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 584,023 | 524,198 |
Loans 90 Days or More Past Due And Accruing | 42 | 107 |
Non-Accrual | 1,421 | 1,481 |
Total Past Due & Non-Accrual | 4,961 | 3,959 |
Total | 588,984 | 528,157 |
Home equity | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 2,960 | 2,164 |
Home equity | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 538 | 207 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 135,399 | 99,499 |
Loans 90 Days or More Past Due And Accruing | 1 | 4 |
Non-Accrual | 44 | 42 |
Total Past Due & Non-Accrual | 590 | 289 |
Total | 135,989 | 99,788 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 440 | 179 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 105 | 64 |
Public finance and other commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 547,114 | 432,848 |
Loans 90 Days or More Past Due And Accruing | 0 | 0 |
Non-Accrual | 0 | 354 |
Total Past Due & Non-Accrual | 0 | 354 |
Total | 547,114 | 433,202 |
Public finance and other commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Public finance and other commercial loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Loans and Allowance - Summary_2
Loans and Allowance - Summary of Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Pre-Modification Recorded Balance | $ 692 | $ 721 |
Post-Modification Recorded Balance | $ 690 | $ 719 |
Number of Loans | loan | 13 | 18 |
Commercial and farmland | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Pre-Modification Recorded Balance | $ 85 | |
Post-Modification Recorded Balance | $ 85 | |
Number of Loans | loan | 1 | |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Pre-Modification Recorded Balance | $ 636 | $ 490 |
Post-Modification Recorded Balance | $ 629 | $ 487 |
Number of Loans | loan | 11 | 11 |
Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Pre-Modification Recorded Balance | $ 56 | $ 81 |
Post-Modification Recorded Balance | $ 61 | $ 81 |
Number of Loans | loan | 2 | 3 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Pre-Modification Recorded Balance | $ 65 | |
Post-Modification Recorded Balance | $ 66 | |
Number of Loans | loan | 3 |
Loans and Allowance - Summary_3
Loans and Allowance - Summary of Troubled Debt Restructurings by Modification (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | $ 675 | $ 777 |
Term Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 95 | 249 |
Rate Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 87 | 289 |
Combination | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 493 | 239 |
Commercial and farmland | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 85 | |
Commercial and farmland | Term Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 85 | |
Commercial and farmland | Rate Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 0 | |
Commercial and farmland | Combination | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 0 | |
Residential | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 614 | 448 |
Residential | Term Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 95 | 0 |
Residential | Rate Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 87 | 209 |
Residential | Combination | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 432 | 239 |
Home equity | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 61 | 180 |
Home equity | Term Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 0 | 106 |
Home equity | Rate Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 0 | 74 |
Home equity | Combination | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | $ 61 | 0 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 64 | |
Individuals' loans for household and other personal expenditures | Term Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 58 | |
Individuals' loans for household and other personal expenditures | Rate Modification | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | 6 | |
Individuals' loans for household and other personal expenditures | Combination | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total Modification | $ 0 |
Loans and Allowance - Subsequen
Loans and Allowance - Subsequent Default (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | loan | 1 | 2 |
Recorded Balance | $ | $ 37 | $ 75 |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | loan | 1 | 2 |
Recorded Balance | $ | $ 37 | $ 75 |
Accounting for Certain Loans _3
Accounting for Certain Loans Acquired in a Purchase - Narrative (Details) - Loans acquired with deteriorated credit quality - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance amount of loans acquired | $ 25,300,000 | $ 26,300,000 |
Carrying amount of loans acquired | 16,100,000 | 17,300,000 |
Loans acquired and accounted for under ASC 310-30, allowance amount | $ 124,000 | $ 0 |
Accounting for Certain Loans _4
Accounting for Certain Loans Acquired in a Purchase - Accretable Yield or Income Expected to be Collected (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | $ 2,143 | $ 2,890 | $ 3,950 |
Additions | 576 | 0 | 1,608 |
Accretion | (2,387) | (4,118) | (6,749) |
Reclassification from nonaccretable | 1,965 | 3,387 | 4,748 |
Disposals | (165) | (16) | (667) |
Ending balance | $ 2,132 | $ 2,143 | $ 2,890 |
Accounting for Certain Loans _5
Accounting for Certain Loans Acquired in a Purchase - Contractually Required Payments (Details) - MBT - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 01, 2019 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ||
Contractually required payments receivable at acquisition date | $ 6,840 | $ 6,840 |
Nonaccretable difference | 2,733 | |
Expected cash flows at acquisition date | 4,107 | |
Accretable difference | 576 | |
Basis in loans at acquisition date | $ 3,531 | $ 3,531 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Premises and Equipment [Line Items] | ||
Total Cost | $ 311,945 | $ 233,626 |
Accumulated Depreciation and Amortization | (198,890) | (140,206) |
Net | 113,055 | 93,420 |
Land | ||
Premises and Equipment [Line Items] | ||
Total Cost | 25,227 | 21,762 |
Buildings and Leasehold Improvements | ||
Premises and Equipment [Line Items] | ||
Total Cost | 162,391 | 125,366 |
Equipment | ||
Premises and Equipment [Line Items] | ||
Total Cost | $ 124,327 | $ 86,498 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) $ in Thousands | Sep. 01, 2019USD ($) |
MBT | |
Premises and Equipment [Line Items] | |
Premises and equipment acquired | $ 21,664 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) | Sep. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 543,918,000 | $ 445,355,000 | $ 445,355,000 | |
Measurement period adjustment | 719,000 | 0 | ||
Goodwill impairment loss | $ 0 | $ 0 | ||
MBT | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 98,563,000 | |||
Measurement period adjustment | $ 719,000 |
Goodwill - Rollforward (Details
Goodwill - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 445,355 | $ 445,355 |
Goodwill acquired | 97,844 | 0 |
Measurement period adjustment | 719 | 0 |
Ending balance | $ 543,918 | $ 445,355 |
Other Intangibles - Narrative (
Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 01, 2019 | |
Business Acquisition [Line Items] | ||||
Intangible asset amortization | $ 5,994 | $ 6,719 | $ 5,647 | |
Minimum | ||||
Business Acquisition [Line Items] | ||||
Useful life of core deposit intangibles and other intangibles | 2 years | |||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Useful life of core deposit intangibles and other intangibles | 10 years | |||
MBT | ||||
Business Acquisition [Line Items] | ||||
Core deposit intangible | $ 16,527 |
Other Intangibles - Schedule of
Other Intangibles - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 85,869 | $ 85,869 |
Accumulated amortization | (67,434) | (61,440) |
Core Deposit and Other Intangibles | 34,962 | 24,429 |
Core deposit intangible acquired | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangibles acquired | $ 16,527 | $ 0 |
Other Intangibles - Schedule _2
Other Intangibles - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortization Expense | ||
2020 | $ 5,987 | |
2021 | 5,429 | |
2022 | 5,027 | |
2023 | 4,827 | |
2024 | 4,241 | |
After 2024 | 9,451 | |
Total other intangibles | $ 34,962 | $ 24,429 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease assets | $ 20,747 |
Total lease assets | 20,747 |
Operating lease liabilities | 21,421 |
Total Lease liabilities | $ 21,421 |
Weighted average remaining lease term (years) | |
Operating leases | 8 years 10 months 24 days |
Weighted average discount rate | |
Operating leases | 3.40% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost: | |
Operating lease cost | $ 3,617 |
Short-term lease cost | 204 |
Variable lease cost | 948 |
Sublease income | (13) |
Total lease cost | $ 4,756 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Maturity of lease liabilities | |||
2020 | $ 3,434 | ||
2021 | 3,157 | ||
2022 | 3,033 | ||
2023 | 2,654 | ||
2024 | 2,585 | ||
2025 and after | 10,198 | ||
Total lease payments | 25,061 | ||
Less: Present value discount | 3,640 | ||
Present value of lease liabilities | 21,421 | ||
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from operating leases | 3,422 | ||
ROU assets obtained in exchange for new operating lease liabilities | $ 23,529 | $ 0 | $ 0 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Demand deposits | $ 5,250,568 | $ 3,985,178 |
Savings deposits | 2,896,177 | 2,282,701 |
Certificates and other time deposits of $100,000 or more | 736,843 | 593,592 |
Other certificates and time deposits | 741,759 | 646,682 |
Brokered deposits | 214,609 | 246,440 |
Total Deposits | 9,839,956 | 7,754,593 |
Cash amount that exceeded federally insured limits | $ 5,100,000 | $ 3,800,000 |
Deposits - Schedule of Contract
Deposits - Schedule of Contractual Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Certificates and Other Time Deposits | |
2020 | $ 1,489,274 |
2021 | 118,919 |
2022 | 47,731 |
2023 | 24,636 |
2024 | 11,934 |
After 2024 | 717 |
Total | $ 1,693,211 |
Transfers Accounted for as Se_3
Transfers Accounted for as Secured Borrowings (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 187,946 | $ 113,512 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 178,732 | 104,883 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 0 | 1,014 |
30-90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 7,672 | 7,615 |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 1,542 | $ 0 |
Borrowings - Schedule of Debt (
Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Federal funds purchased | $ 55,000 | $ 104,000 |
Securities sold under repurchase agreements | 187,946 | 113,512 |
Federal Home Loan Bank advances | 351,072 | 314,986 |
Subordinated debentures and term loans | 138,685 | 138,463 |
Total Borrowings | $ 732,703 | $ 670,961 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) | Jul. 14, 2017USD ($) | Aug. 10, 2015USD ($) | Nov. 01, 2013USD ($)investor | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Sep. 15, 2012 | Jul. 02, 2007USD ($) |
Debt Instrument [Line Items] | ||||||||
Total available remaining borrowing capacity from FHLB | $ 638,668,000 | |||||||
Putable advances with the FHLB | $ 351,072,000 | $ 314,986,000 | ||||||
Debt face amount | $ 70,000,000 | |||||||
Private debt issuance, number of institutional investors | investor | 4 | |||||||
5.00% Senior Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price (percent) | 100.00% | |||||||
5% Senior Notes Due 2028 and 6.75% Subordinated Notes due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt term with fixed interest rate | 10 years | |||||||
Putable Advances | ||||||||
Debt Instrument [Line Items] | ||||||||
Putable advances with the FHLB | $ 55,000,000 | |||||||
Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Required value of assets pledged as collateral as a percentage to outstanding advances | 145.00% | |||||||
Interest rate, minimum (as a percent) | 1.07% | |||||||
Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, minimum (as a percent) | 5.09% | |||||||
Securities Sold Under Repurchase Agreements | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount of outstanding agreements | $ 191,603,000 | 143,016,000 | ||||||
Total of average agreements | 136,274,000 | 124,762,000 | ||||||
Debt outstanding | 187,946,000 | |||||||
Subordinated Debentures and Term Loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 138,685,000 | $ 138,463,000 | ||||||
Subordinated Debenture | 6.75% Subordinated Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 65,000,000 | |||||||
Interest rate on notes (as a percent) | 6.75% | |||||||
Redemption price (percent) | 100.00% | |||||||
Subordinated Debenture | Three-Month LIBOR | 6.75% Subordinated Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 4.095% | |||||||
Subordinated Debenture | First Merchant Capital Trust II | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt outstanding | $ 51,702,000 | |||||||
Debt face amount | $ 56,702,000 | |||||||
Cancellation of debt, amount | $ 5,000,000 | |||||||
Gain from cancellation of debt | $ 1,250,000 | |||||||
Interest rate on notes (as a percent) | 3.45% | 4.35% | 6.495% | |||||
Subordinated Debenture | First Merchant Capital Trust II | Three-Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 1.56% | |||||||
Subordinated Debenture | Ameriana Capital Trust I | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 10,310,000 | |||||||
Interest rate on notes (as a percent) | 3.39% | 4.29% | ||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||
Subordinated Debenture | Grabill Capital Trust I | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 10,310,000 | |||||||
Interest rate on notes (as a percent) | 4.53% | 5.08% | ||||||
Basis spread on variable rate (as a percent) | 2.60% | |||||||
Senior Notes | 5.00% Senior Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 5,000,000 | |||||||
Interest rate on notes (as a percent) | 5.00% | |||||||
Senior Notes | Three-Month LIBOR | 5.00% Senior Notes Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 2.345% |
Borrowings - Schedule of Maturi
Borrowings - Schedule of Maturities of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Funds Purchased | ||
Maturities in Years Ending December 31: | ||
2020 | $ 55,000 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
After 2024 | 0 | |
ASC 805 fair value adjustments at acquisition | 0 | |
Total | 55,000 | |
Securities Sold Under Repurchase Agreements | ||
Maturities in Years Ending December 31: | ||
2020 | 187,946 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
After 2024 | 0 | |
ASC 805 fair value adjustments at acquisition | 0 | |
Total | 187,946 | |
Federal Home Loan Bank Advances | ||
Maturities in Years Ending December 31: | ||
2020 | 41,370 | |
2021 | 55,097 | |
2022 | 95,097 | |
2023 | 115,097 | |
2024 | 97 | |
After 2024 | 44,314 | |
ASC 805 fair value adjustments at acquisition | 0 | |
Total | 351,072 | |
Subordinated Debentures and Term Loans | ||
Maturities in Years Ending December 31: | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
After 2024 | 142,322 | |
ASC 805 fair value adjustments at acquisition | (3,637) | |
Total | $ 138,685 | $ 138,463 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)interest_rate_swap | Dec. 31, 2018USD ($)interest_rate_swapinterest_rate_cap | |
Derivative [Line Items] | ||
Termination value of derivatives in a net liability position | $ 28,734 | |
Derivative collateral posted | 42,255 | |
Not Designated as Hedging Instruments | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | 692,287 | |
Cash Flow Hedging | ||
Derivative [Line Items] | ||
Estimated amount to be transferred from OCI to earnings | $ 490 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | interest_rate_swap | 4 | 4 |
Notional amount of interest rate derivatives | $ 46,000 | $ 46,000 |
Interest Rate Swap | Cash Flow Hedging | Trust Preferred Debt | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | 26,000 | |
Interest Rate Swap | Cash Flow Hedging | Federal Home Loan Bank Advances | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 20,000 | |
Interest Rate Cap | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | interest_rate_cap | 1 | |
Notional amount of interest rate derivatives | $ 13,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - Interest Rate Contracts - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 | $ 135 |
Derivatives Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,444 | 688 |
Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 27,855 | 11,948 |
Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 27,855 | $ 11,948 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effect of Derivative Financial Instruments on Income Statement (Details) - Derivatives Designated as Hedging Instruments - Interest Rate Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expense | |||
Derivative [Line Items] | |||
Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion) | $ (334) | $ (470) | |
Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion) | $ (985) | ||
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ (1,072) | $ 247 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | $ 1,790,025 | $ 1,142,195 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,787,132 | 1,138,867 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,893 | 3,328 |
Fair Value, Measurements, Recurring | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 29,299 | 12,636 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 38,875 | 13,582 |
Fair Value, Measurements, Recurring | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 899,796 | 606,135 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 851,323 | 522,447 |
Fair Value, Measurements, Recurring | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Fair Value, Measurements, Recurring | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 27,855 | 11,948 |
Fair Value, Measurements, Recurring | Interest rate cap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 135 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate cap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 29,299 | 12,636 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 38,875 | 13,582 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 896,938 | 602,842 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 851,319 | 522,443 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 27,855 | 11,948 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate cap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 135 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,858 | 3,293 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 4 | 4 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | $ 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate cap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | $ 0 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Fair Value, Measurements, Recurring - Available for Sale Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available for Sale Securities | ||
Beginning Balance | $ 3,328 | $ 3,978 |
Included in other comprehensive income | 80 | (49) |
Principal payments | (515) | (601) |
Ending balance | $ 2,893 | $ 3,328 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Transfer Between Levels 1, 2 and 3 and Reasons for Transfers (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Transfer between in or out of Level 3 | $ 0 | $ 0 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired Loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 0 | $ 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Impaired Loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired Loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 5,653 | 11,866 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 194 | 657 |
Fair Value | Impaired Loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 5,653 | 11,866 |
Fair Value | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 194 | $ 657 |
Fair Values of Financial Inst_7
Fair Values of Financial Instruments - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Discounted cash flow | State and municipal securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 2,858 | $ 3,293 |
Discounted cash flow | State and municipal securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity Call Date | 1 month | 1 month |
US Muni BQ curve | A- | A- |
Discounted cash flow | State and municipal securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity Call Date | 15 years | 20 years |
US Muni BQ curve | BBB- | BBB- |
Discounted cash flow | State and municipal securities | Maturity Call Date US Muni BQ curve Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.02 | 0.0069 |
Discounted cash flow | State and municipal securities | Maturity Call Date US Muni BQ curve Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.05 | 0.05 |
Discounted cash flow | Corporate obligations and U.S. Government-sponsored mortgage backed securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 35 | $ 35 |
Discounted cash flow | Corporate obligations and U.S. Government-sponsored mortgage backed securities | Risk free rate plus Premium for illiquidity | Three-Month LIBOR | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.0200 | 0.0200 |
Collateral based measurements | Impaired loans (collateral dependent) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 5,653 | $ 11,866 |
Collateral based measurements | Impaired loans (collateral dependent) | Discount to reflect current market conditions and ultimate collectability | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0 | 0 |
Collateral based measurements | Impaired loans (collateral dependent) | Discount to reflect current market conditions and ultimate collectability | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.10 | 0.10 |
Collateral based measurements | Impaired loans (collateral dependent) | Discount to reflect current market conditions and ultimate collectability | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.01 | 0.06 |
Appraisals | Other real estate owned | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 194 | $ 657 |
Appraisals | Other real estate owned | Discount to reflect current market conditions | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions (percent) | 0 | 0 |
Appraisals | Other real estate owned | Discount to reflect current market conditions | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions (percent) | 0.10 | 0.10 |
Appraisals | Other real estate owned | Discount to reflect current market conditions | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions (percent) | 0.37 | 0.04 |
Fair Values of Financial Inst_8
Fair Values of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities available for sale | $ 1,790,025 | $ 1,142,195 |
Investment securities held to maturity | 827,566 | 489,217 |
Loans held for sale | 9,037 | 4,778 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 177,201 | 139,247 |
Interest-bearing time deposits | 118,263 | 36,963 |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities at December 31: | ||
Deposits | 8,146,745 | 6,267,879 |
Borrowings: | ||
Federal funds purchased | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and term loans | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing time deposits | 0 | 0 |
Investment securities available for sale | 1,787,132 | 1,138,867 |
Investment securities held to maturity | 799,884 | 481,377 |
Loans held for sale | 9,037 | 4,778 |
Loans | 0 | 0 |
Federal Home Loan Bank stock | 28,736 | 24,588 |
Interest rate swap asset | 27,855 | 12,083 |
Interest receivable | 48,901 | 40,881 |
Liabilities at December 31: | ||
Deposits | 1,675,202 | 1,464,129 |
Borrowings: | ||
Federal funds purchased | 55,000 | 104,000 |
Securities sold under repurchase agreements | 187,801 | 113,437 |
Federal Home Loan Bank advances | 352,581 | 318,728 |
Subordinated debentures and term loans | 123,571 | 127,298 |
Interest rate swap liability | 29,299 | 12,636 |
Interest payable | 6,754 | 5,607 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing time deposits | 0 | 0 |
Investment securities available for sale | 2,893 | 3,328 |
Investment securities held to maturity | 27,682 | 7,840 |
Loans held for sale | 0 | 0 |
Loans | 8,335,340 | 7,004,193 |
Federal Home Loan Bank stock | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities at December 31: | ||
Deposits | 0 | 0 |
Borrowings: | ||
Federal funds purchased | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and term loans | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 177,201 | 139,247 |
Interest-bearing time deposits | 118,263 | 36,963 |
Investment securities available for sale | 1,790,025 | 1,142,195 |
Investment securities held to maturity | 806,038 | 490,387 |
Loans held for sale | 9,037 | 4,778 |
Loans | 8,379,026 | 7,143,915 |
Federal Home Loan Bank stock | 28,736 | 24,588 |
Interest rate swap asset | 27,855 | 12,083 |
Interest receivable | 48,901 | 40,881 |
Liabilities at December 31: | ||
Deposits | 9,839,956 | 7,754,593 |
Borrowings: | ||
Federal funds purchased | 55,000 | 104,000 |
Securities sold under repurchase agreements | 187,946 | 113,512 |
Federal Home Loan Bank advances | 351,072 | 314,986 |
Subordinated debentures and term loans | 138,685 | 138,463 |
Interest rate swap liability | 29,299 | 12,636 |
Interest payable | $ 6,754 | $ 5,607 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loan commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $ 3,005,064 | $ 2,684,806 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $ 30,200 | $ 32,862 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | $ 1,408,260 | $ 1,303,463 | $ 901,657 |
Other comprehensive income before reclassifications | 52,436 | (14,870) | |
Amounts reclassified from accumulated other comprehensive income | (3,140) | (3,018) | |
Period change | 49,296 | (17,888) | 10,673 |
Reclassification adjustment under ASU 2018-02 | (626) | ||
Ending balance | 1,786,437 | 1,408,260 | 1,303,463 |
Total | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (21,422) | (2,908) | (13,581) |
Period change | 49,296 | (17,888) | 10,673 |
Reclassification adjustment under ASU 2018-02 | (626) | ||
Ending balance | 27,874 | (21,422) | (2,908) |
Unrealized Gains (Losses) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (6,343) | 8,970 | |
Other comprehensive income before reclassifications | 48,703 | (13,872) | |
Amounts reclassified from accumulated other comprehensive income | (3,488) | (3,373) | |
Period change | 45,215 | (17,245) | |
Reclassification adjustment under ASU 2018-02 | 1,932 | ||
Ending balance | 38,872 | (6,343) | 8,970 |
Unrealized Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (559) | (1,125) | |
Other comprehensive income before reclassifications | (846) | 437 | |
Amounts reclassified from accumulated other comprehensive income | 264 | 371 | |
Period change | (582) | 808 | |
Reclassification adjustment under ASU 2018-02 | (242) | ||
Ending balance | (1,141) | (559) | (1,125) |
Unrealized Gains (Losses) on Defined Benefit Plans | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning balance | (14,520) | (10,753) | |
Other comprehensive income before reclassifications | 4,579 | (1,435) | |
Amounts reclassified from accumulated other comprehensive income | 84 | (16) | |
Period change | 4,663 | (1,451) | |
Reclassification adjustment under ASU 2018-02 | (2,316) | ||
Ending balance | $ (9,857) | $ (14,520) | $ (10,753) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on sales of available for sale securities | $ 4,415 | $ 4,269 | $ 2,631 | ||||||||
Income tax expense | $ (8,298) | $ (6,337) | $ (7,749) | $ (6,941) | $ (5,949) | $ (8,478) | $ (7,961) | $ (6,611) | (29,325) | (28,999) | (37,524) |
Subordinated debentures and term loans | 8,309 | 8,233 | 7,572 | ||||||||
Salaries and employee benefits | 144,037 | 131,704 | 119,812 | ||||||||
Total reclassifications for the period, net of tax | 3,140 | 3,018 | 1,667 | ||||||||
Unrealized gains (losses) on available for sale securities | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period, net of tax | 3,488 | 3,373 | 1,710 | ||||||||
Unrealized gains (losses) on cash flow hedges | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period, net of tax | (264) | (371) | |||||||||
Unrealized gains (losses) on cash flow hedges | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total reclassifications for the period, net of tax | (640) | ||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on available for sale securities | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains on sales of available for sale securities | 4,415 | 4,269 | 2,631 | ||||||||
Income tax expense | (927) | (896) | (921) | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on cash flow hedges | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense | 70 | 99 | |||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on cash flow hedges | Interest Rate Contracts | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Subordinated debentures and term loans | (334) | (470) | |||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on cash flow hedges | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense | 345 | ||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on cash flow hedges | Interest Rate Contracts | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Subordinated debentures and term loans | (985) | ||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on defined benefit plans | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income tax expense | 22 | (4) | (209) | ||||||||
Salaries and employee benefits | (106) | 20 | 806 | ||||||||
Total reclassifications for the period, net of tax | $ (84) | $ 16 | $ 597 |
Regulatory Capital and Divide_3
Regulatory Capital and Dividends - Schedule of Actual and Required Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total Risk-Based Capital | ||
Actual | $ 1,400,617 | $ 1,177,725 |
Prompt Corrective Action Thresholds, Adequate Capital | 783,946 | 644,871 |
Tier 1 Capital to Risk-weighted Assets, Amount | ||
Actual | 1,255,333 | 1,032,173 |
Prompt Corrective Action Thresholds, Adequate Capital | 587,960 | 483,653 |
Common Equity Tier One Capital to Risk-weighted Assets, Amount | ||
Actual | 1,188,970 | 966,032 |
Prompt Corrective Action Thresholds, Adequate Capital | 440,970 | 362,740 |
Tier I Capital to Average Assets, Amount | ||
Actual | 1,255,333 | 1,032,173 |
Prompt Corrective Action Thresholds, Adequate Capital | $ 476,383 | $ 378,379 |
Risk Based Ratios | ||
Total Capital to Risk-weighted Assets, Actual Ratio | 14.29% | 14.61% |
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio | 8.00% | 8.00% |
Tier 1 Capital to Risk-Weighted Assets | 12.81% | 12.80% |
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio | 6.00% | 6.00% |
Common Equity Tier 1 Capital Ratio (Regulatory) | 12.13% | 11.98% |
Common Equity Tier 1 Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequately Capitalized Ratio | 4.50% | 4.50% |
Leverage Ratios | ||
Tier 1 Capital to Average Assets | 10.54% | 10.91% |
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio | 4.00% | 4.00% |
First Merchants Bank | ||
Total Risk-Based Capital | ||
Actual | $ 1,267,649 | $ 1,092,602 |
Prompt Corrective Action Thresholds, Adequate Capital | 787,753 | 649,531 |
Prompt Corrective Action Thresholds, Well Capitalized | 984,691 | 811,914 |
Tier 1 Capital to Risk-weighted Assets, Amount | ||
Actual | 1,187,365 | 1,012,050 |
Prompt Corrective Action Thresholds, Adequate Capital | 590,815 | 487,148 |
Prompt Corrective Action Thresholds, Well Capitalized | 787,753 | 649,531 |
Common Equity Tier One Capital to Risk-weighted Assets, Amount | ||
Actual | 1,187,365 | 1,012,050 |
Prompt Corrective Action Thresholds, Adequate Capital | 443,111 | 365,361 |
Prompt Corrective Action Thresholds, Well Capitalized | 640,049 | 527,744 |
Tier I Capital to Average Assets, Amount | ||
Actual | 1,187,365 | 1,012,050 |
Prompt Corrective Action Thresholds, Adequate Capital | 475,564 | 379,397 |
Prompt Corrective Action Thresholds, Well Capitalized | $ 594,455 | $ 472,996 |
Risk Based Ratios | ||
Total Capital to Risk-weighted Assets, Actual Ratio | 12.87% | 13.46% |
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio | 8.00% | 8.00% |
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio | 10.00% | 10.00% |
Tier 1 Capital to Risk-Weighted Assets | 12.06% | 12.47% |
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio | 6.00% | 6.00% |
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital Ratio (Regulatory) | 12.06% | 12.47% |
Common Equity Tier 1 Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequately Capitalized Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio | 6.50% | 6.50% |
Leverage Ratios | ||
Tier 1 Capital to Average Assets | 9.99% | 10.70% |
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio | 4.00% | 4.00% |
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio | 5.00% | 5.00% |
Regulatory Capital and Divide_4
Regulatory Capital and Dividends - Narrative (Details) - USD ($) | Sep. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 03, 2019 |
Restructuring Cost and Reserve [Line Items] | ||||||
Dividends available | $ 189,371,000 | |||||
Dividend reinvestment and stock purchase plan, stockholder's maximum amount of cash payments per quarter in purchase of common stock | 5,000 | |||||
Issuance of common stock related to acquisitions | 229,926,000 | $ 0 | $ 321,431,000 | |||
Repurchases of common stock | $ 19,041,000 | |||||
Stock Repurchase Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Stock authorized to be repurchased (in shares) | 3,000,000 | |||||
Stock authorized to be repurchased | $ 75,000,000 | |||||
Percent of outstanding shares | 5.00% | |||||
Repurchases of common stock (in shares) | 516,016 | |||||
Repurchases of common stock | $ 19,000,000 | |||||
Average price (in usd per share) | $ 36.90 | |||||
MBT | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Percentage of interest acquired | 100.00% | |||||
Common Stock | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of shares of common stock | 0.275 | |||||
Stock issued as a part of acquisition (in shares) | 6,383,806 | 8,044,446 | ||||
Issuance of common stock related to acquisitions | $ 798,000 | $ 1,006,000 | ||||
Repurchases of common stock (in shares) | 516,016 | |||||
Repurchases of common stock | $ 65,000 | |||||
Common Stock | MBT | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of shares of common stock | 0.275 | |||||
Stock issued as a part of acquisition (in shares) | 6,400,000 | |||||
Issuance of common stock related to acquisitions | $ 229,900,000 |
Loan Servicing (Details)
Loan Servicing (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | |||
Unpaid balance of loans serviced for others | $ 514,294 | $ 533,386 | $ 549,618 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of average closing price to be paid by employees | 85.00% | |||
Share-based compensation | $ 4,115,000 | $ 3,592,000 | $ 2,827,000 | |
Estimated pre-vesting forfeiture rate (as a percent) | 1.70% | |||
Income tax benefit related to adoption of ASU 2016-09 | $ 433,000 | 644,000 | 935,000 | |
Aggregate intrinsic value of stock options exercised | 495,000 | 1,685,000 | ||
Stock options exercised | 144,000 | $ 1,598,000 | $ 2,398,000 | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock purchases through advance payroll deductions in a calendar year | $ 25,000 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option term | 10 years | |||
Stock options vesting percentage | 100.00% | |||
Unrecognized compensation expense | $ 0 | $ 0 | ||
Stock Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested period | 1 year | |||
Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested period | 2 years | |||
RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested period | 3 years | |||
Unrecognized compensation expense | 7,422,000 | $ 7,422,000 | ||
Unrecognized compensation expense expected recognition period | 1 year 7 months 6 days | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | 0 | $ 0 | ||
Grant date fair value of ESPP options | $ 29,000 |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Awards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | $ 4,115 | $ 3,592 | $ 2,827 |
Income tax expense (benefit) | (1,276) | (1,276) | (1,883) |
Total share-based compensation expense, net of income taxes | 2,839 | 2,316 | 944 |
Stock and ESPP Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 101 | 109 | 121 |
Income tax expense (benefit) | (70) | (97) | (322) |
Total share-based compensation expense, net of income taxes | 31 | 12 | (201) |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 4,014 | 3,483 | 2,706 |
Income tax expense (benefit) | (1,206) | (1,179) | (1,561) |
Total share-based compensation expense, net of income taxes | $ 2,808 | $ 2,304 | $ 1,145 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 76,300 |
Exercised (in shares) | shares | (16,950) |
Ending balance (in shares) | shares | 59,350 |
Vested and Expected to Vest, Number of Shares | shares | 59,350 |
Exercisable, Number of Shares | shares | 59,350 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 12.40 |
Exercised (in dollars per share) | $ / shares | 8.51 |
Ending balance (in dollars per share) | $ / shares | 13.51 |
Vested and Expected to Vest, Weighted-Average Exercise Price (in dollars per share) | $ / shares | 13.51 |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 13.51 |
Weighted Average Remaining Contractual Term | |
Outstanding | 2 years 5 months 12 days |
Vested and Expected to Vest | 2 years 5 months 12 days |
Exercisable | 2 years 5 months 12 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 1,666,694 |
Vested and Expected to Vest | $ | 1,666,694 |
Exercisable | $ | $ 1,666,694 |
Share-Based Compensation - Unve
Share-Based Compensation - Unvested RSAs Outstanding (Details) - RSAs | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Shares | |
Unvested RSAs, Beginning Balance (in shares) | shares | 344,362 |
Granted (in shares) | shares | 125,846 |
Forfeited (in shares) | shares | (2,588) |
Vested (in shares) | shares | (116,572) |
Unvested RSAs, Ending Balance (in shares) | shares | 351,048 |
Weighted-Average Grant Date Fair Value | |
Unvested RSAs, Beginning Balance (in dollars per share) | $ / shares | $ 36.80 |
Granted (in dollars per share) | $ / shares | 35.84 |
Forfeited (in dollars per share) | $ / shares | 40.53 |
Vested (in dollars per share) | $ / shares | 24.03 |
Unvested RSAs, Ending Balance (in dollars per share) | $ / shares | $ 40.67 |
Pension and Other Post Retire_3
Pension and Other Post Retirement Benefit Plans - Narrative (Details) - USD ($) | Mar. 01, 2005 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employees covered by plan | 10.00% | |||
Minimum participant attained age | 55 years | |||
Requisite service period (at least) | 10 years | |||
Accumulated benefit obligation | $ 76,770,000 | $ 73,193,000 | ||
Minimum required contribution in next fiscal year | $ 0 | |||
Requisite service period | 1000 hours | |||
Employer percentage contribution | 2.00% | |||
Vesting period | 5 years | |||
Expense recognized in the period | $ 4,560,000 | 5,114,000 | $ 3,691,000 | |
Fair value of plan assets | 85,121,000 | 76,736,000 | 85,213,000 | |
Net periodic pension benefit cost | (909,000) | (1,693,000) | 654,000 | |
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 80,689,000 | 71,277,000 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 4,432,000 | $ 5,459,000 | ||
Contribution for first 3% | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amount of discretionary contributions made by employer to defined contribution plan, percent | 100.00% | |||
Maximum annual contribution percentage per employee | 3.00% | |||
Contribution after first 3% | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amount of discretionary contributions made by employer to defined contribution plan, percent | 50.00% | |||
Maximum annual contribution percentage per employee | 3.00% | |||
Minimum | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Maturities of debt securities | 15 days | 15 days | ||
Maximum | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Maturities of debt securities | 7 years 8 months 1 day | 8 years 2 months 26 days | ||
Weighted Average | Debt securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Maturities of debt securities | 4 years | 4 years 3 months 14 days | ||
MBT | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Post retirement plan expense | $ (43,000) | |||
Defined Benefit Plan, Benefit Obligation | $ 4,000,000 | |||
MBT | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Age of plan participants | 55 years | |||
Requisite service period (at least) | 5 years | |||
MBT | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Age of plan participants | 65 years | |||
Non-qualified plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic pension benefit cost | $ 192,000 | $ 161,000 | $ 213,000 |
Pension and Other Post Retire_4
Pension and Other Post Retirement Benefit Plans - Schedule of Changes in Benefit Obligation, and Plan Assets, Funded Status of the Plan, Assets and Liabilities Recognized in the Balance Sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | $ 73,193 | $ 82,157 | |
Service cost | 39 | 8 | $ 10 |
Interest cost | 2,975 | 2,816 | 3,353 |
Actuarial (gain) loss | 4,007 | (6,129) | |
Benefits paid | (5,145) | (5,659) | |
Net transfer in from MBT acquisition | (1,701) | 0 | |
Benefit obligation at end of year | 76,770 | 73,193 | 82,157 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 76,736 | 85,213 | |
Actual return on plan assets | 12,972 | (3,427) | |
Employer contributions | 558 | 609 | |
Benefits paid | (5,145) | (5,659) | |
End of year | 85,121 | 76,736 | $ 85,213 |
Funded status at end of year | 8,351 | 3,543 | |
Assets and Liabilities Recognized in the Balance Sheets: | |||
Deferred tax asset | 3,278 | 3,855 | |
Assets | 13,291 | 7,024 | |
Liabilities | 4,940 | 3,481 | |
Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic Cost, net of tax, consist of: | |||
Accumulated loss | (9,712) | (14,111) | |
Prior service cost | (325) | (409) | |
Total | $ (10,037) | $ (14,520) |
Pension and Other Post Retire_5
Pension and Other Post Retirement Benefit Plans - Schedule of Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 4,940 | $ 3,481 |
Accumulated benefit obligation | 4,940 | 3,481 |
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Post Retire_6
Pension and Other Post Retirement Benefit Plans - Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 39 | $ 8 | $ 10 |
Interest cost | 2,975 | 2,816 | 3,353 |
Expected return on plan assets | (4,414) | (4,891) | (4,778) |
Amortization of prior service cost | 87 | 87 | 90 |
Amortization of net loss | 404 | 287 | 1,218 |
Settlement loss recognized | 0 | 0 | 761 |
Net periodic pension benefit cost | $ (909) | $ (1,693) | $ 654 |
Pension and Other Post Retire_7
Pension and Other Post Retirement Benefit Plans - Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Net periodic pension benefit cost | $ (909) | $ (1,693) | $ 654 |
Net gain (loss) | 4,552 | (2,189) | 1,504 |
Amortization of net loss | 404 | 287 | 1,979 |
Amortization of prior service cost | 87 | 87 | 90 |
Total recognized in other comprehensive income (loss) | 5,043 | (1,815) | 3,573 |
Total recognized in net periodic pension benefit cost and other comprehensive income (loss) | $ 5,952 | $ (122) | $ 2,919 |
Pension and Other Post Retire_8
Pension and Other Post Retirement Benefit Plans - Amount To Be Amortized From Accumulated Other Comprehensive Income, Next Fiscal Year (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Amortization of net loss | $ (208) | $ (432) | $ (830) |
Amortization of prior service cost | (87) | (87) | (87) |
Total | $ (295) | $ (519) | $ (917) |
Pension and Other Post Retire_9
Pension and Other Post Retirement Benefit Plans - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligation and Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted-average Assumptions Used to Determine Benefit Obligation: | |||
Discount rate | 3.20% | 4.30% | 3.60% |
Weighted-average Assumptions Used to Determine Cost: | |||
Discount rate | 4.30% | 3.60% | 4.20% |
Expected return on plan assets | 6.00% | 6.00% | 6.00% |
Pension and Other Post Retir_10
Pension and Other Post Retirement Benefit Plans - Schedule of Expected Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 5,662 |
2021 | 5,549 |
2022 | 5,547 |
2023 | 5,418 |
2024 | 5,241 |
After 2024 | 24,435 |
Total | $ 51,852 |
Pension and Other Post Retir_11
Pension and Other Post Retirement Benefit Plans - Schedule of Plan Assets by Category (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual (as a percent) | 100.00% | 100.00% |
Target (as a percent) | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual (as a percent) | 3.00% | 3.90% |
Target (as a percent) | 3.00% | 3.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual (as a percent) | 52.30% | 48.40% |
Target (as a percent) | 50.00% | 50.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual (as a percent) | 42.30% | 45.60% |
Target (as a percent) | 45.00% | 45.00% |
Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual (as a percent) | 2.40% | 2.10% |
Target (as a percent) | 2.00% | 2.00% |
Pension and Other Post Retir_12
Pension and Other Post Retirement Benefit Plans - Schedule of Plan Assets by Level (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 85,121 | $ 76,736 | $ 85,213 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 80,689 | 71,277 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash & Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,578 | 3,026 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 17,629 | 16,691 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government Agency and Municipal Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of Deposit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,516 | 2,073 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Taxable Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 13,938 | 12,817 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Large Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 21,958 | 18,269 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mid Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 10,407 | 8,735 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Small Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 5,753 | 4,713 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,898 | 3,336 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Specialty Alternative Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,012 | 1,617 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 4,432 | 5,459 | |
Significant Other Observable Inputs (Level 2) | Cash & Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Government Agency and Municipal Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,660 | 4,479 | |
Significant Other Observable Inputs (Level 2) | Certificates of Deposit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 772 | 980 | |
Significant Other Observable Inputs (Level 2) | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Taxable Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Large Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Mid Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Small Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Specialty Alternative Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Cash & Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Government Agency and Municipal Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Certificates of Deposit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Taxable Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Large Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Mid Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Small Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Specialty Alternative Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 85,121 | 76,736 | |
Fair Value | Cash & Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,578 | 3,026 | |
Fair Value | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 17,629 | 16,691 | |
Fair Value | Government Agency and Municipal Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,660 | 4,479 | |
Fair Value | Certificates of Deposit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 772 | 980 | |
Fair Value | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,516 | 2,073 | |
Fair Value | Taxable Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 13,938 | 12,817 | |
Fair Value | Large Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 21,958 | 18,269 | |
Fair Value | Mid Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 10,407 | 8,735 | |
Fair Value | Small Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 5,753 | 4,713 | |
Fair Value | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,898 | 3,336 | |
Fair Value | Specialty Alternative Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 2,012 | $ 1,617 |
Income Tax - Reconciliation of
Income Tax - Reconciliation of Federal Statutory to Actual Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Federal Statutory to Actual Tax Expense: | |||||||||||
Federal Statutory Income Tax at 21% for 2019 and 2018 and 35% for 2017 | $ 40,695 | $ 39,509 | $ 46,758 | ||||||||
Tax-exempt Interest Income | (10,124) | (8,347) | (11,127) | ||||||||
Stock Compensation | (459) | (622) | (893) | ||||||||
Earnings on Life Insurance | (953) | (868) | (2,302) | ||||||||
Tax Credits | (263) | (615) | (811) | ||||||||
Tax Cuts and Jobs Act - Rate Reform Impact | 0 | 0 | 5,120 | ||||||||
Other | 429 | (58) | 779 | ||||||||
Income Tax Expense | $ 8,298 | $ 6,337 | $ 7,749 | $ 6,941 | $ 5,949 | $ 8,478 | $ 7,961 | $ 6,611 | $ 29,325 | $ 28,999 | $ 37,524 |
Effective Tax Rate | 15.10% | 15.40% | 28.10% |
Income Tax - Components of Inco
Income Tax - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Currently Payable: | |||||||||||
Federal | $ 23,938 | $ 23,633 | $ 22,001 | ||||||||
State | 422 | 1,842 | 0 | ||||||||
Deferred: | |||||||||||
Federal | 4,726 | 6,723 | 9,969 | ||||||||
Tax Cuts and Jobs Act - Rate Reform Impact | 0 | 0 | 5,120 | ||||||||
State | 239 | (3,199) | 434 | ||||||||
Income Tax Expense | $ 8,298 | $ 6,337 | $ 7,749 | $ 6,941 | $ 5,949 | $ 8,478 | $ 7,961 | $ 6,611 | $ 29,325 | $ 28,999 | $ 37,524 |
Income Tax - Deferred Tax Asset
Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | ||
Differences in Accounting for Loan Losses | $ 19,717 | $ 19,785 |
Differences in Accounting for Loan Fees | 442 | 749 |
Differences in Accounting for Loans and Securities | 0 | 710 |
Deferred Compensation | 4,436 | 2,101 |
Federal & State Income Tax Loss Carryforward and Credits | 6,205 | 6,954 |
Net Unrealized Loss on Securities Available for Sale | 0 | 1,686 |
Other | 3,499 | 2,028 |
Total Assets | 34,299 | 34,013 |
Liabilities: | ||
Differences in Depreciation Methods | 5,240 | 6,496 |
Differences in Accounting for Loans and Securities | 1,192 | 0 |
Difference in Accounting for Pensions and Other Employee Benefits | 1,556 | 566 |
State Income Tax | 778 | 791 |
Net Unrealized Gain on Securities Available for Sale | 10,333 | 0 |
Gain on FDIC Modified Whole Bank Transaction | 413 | 487 |
Other | 6,506 | 4,271 |
Total Liabilities | 26,018 | 12,611 |
Net Deferred Tax Asset Before Valuation Allowance | 8,281 | 21,402 |
Valuation allowance: | ||
Beginning Balance | 0 | (6,966) |
Decrease/(Increase) During the Year | 0 | 6,966 |
Ending Balance | 0 | 0 |
Net Deferred Tax Asset | $ 8,281 | $ 21,402 |
Income Tax - Narrative (Details
Income Tax - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Valuation Allowance [Line Items] | ||
Decrease in net deferred tax assets | $ 13,121,000 | |
Increase in net deferred tax liability for unrealized gains (losses) on available for sale securities | 12,019,000 | |
Increase due to accounting for loans | 1,902,000 | |
Deferred tax asset increase from deferred compensation | 2,336,000 | |
Additional paid-in capital | 1,054,997,000 | $ 840,052,000 |
Unrecorded deferred tax liability | 5,308,000 | |
CFS | ||
Valuation Allowance [Line Items] | ||
Additional paid-in capital | 13,393,000 | |
Ameriana | ||
Valuation Allowance [Line Items] | ||
Additional paid-in capital | 11,883,000 | |
State and Local Jurisdiction | ||
Valuation Allowance [Line Items] | ||
State tax loss carryforward | 28,354,000 | |
State deferred tax assets | $ 3,719,000 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common stockholders | $ 164,460 | $ 159,139 | $ 96,070 | ||||||||
Net income available to common stockholders | $ 164,460 | $ 159,139 | $ 96,070 | ||||||||
Weighted-Average Shares | |||||||||||
Net income available to common stockholders (in shares) | 55,348,176 | 51,433,227 | 49,432,167 | 49,369,024 | 49,314,276 | 49,286,945 | 49,252,580 | 49,192,647 | 51,412,133 | 49,262,015 | 45,181,221 |
Effect of dilutive stock options and warrants (in shares) | 149,105 | 208,908 | 221,757 | ||||||||
Net income available to common stockholders (in shares) | 55,519,953 | 51,569,557 | 49,549,887 | 49,540,844 | 49,511,233 | 49,492,019 | 49,451,406 | 49,427,972 | 51,561,238 | 49,470,923 | 45,402,978 |
Basic net income per share: | |||||||||||
Net income available to common stockholders (in dollars per share) | $ 0.87 | $ 0.71 | $ 0.83 | $ 0.79 | $ 0.85 | $ 0.83 | $ 0.80 | $ 0.75 | $ 3.20 | $ 3.23 | $ 2.13 |
Diluted net income per share: | |||||||||||
Net income available to common stockholders (in dollars per share) | $ 0.87 | $ 0.71 | $ 0.83 | $ 0.78 | $ 0.85 | $ 0.83 | $ 0.80 | $ 0.74 | $ 3.19 | $ 3.22 | $ 2.12 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Stock options not included in the earnings per share calculation (in shares) | 0 | 0 | 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 125,821 | $ 118,132 | $ 112,639 | $ 108,813 | $ 108,653 | $ 104,800 | $ 100,871 | $ 93,620 | $ 465,405 | $ 407,944 | $ 314,896 |
Interest expense | 28,237 | 29,200 | 27,361 | 23,947 | 20,769 | 18,314 | 16,300 | 13,704 | 108,745 | 69,087 | 37,612 |
NET INTEREST INCOME | 97,584 | 88,932 | 85,278 | 84,866 | 87,884 | 86,486 | 84,571 | 79,916 | 356,660 | 338,857 | 277,284 |
Provision for loan losses | 500 | 600 | 500 | 1,200 | 1,664 | 1,400 | 1,663 | 2,500 | 2,800 | 7,227 | 9,143 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 97,084 | 88,332 | 84,778 | 83,666 | 86,220 | 85,086 | 82,908 | 77,416 | 353,860 | 331,630 | 268,141 |
Non-interest income | 24,245 | 22,116 | 21,614 | 18,713 | 19,180 | 19,527 | 18,191 | 19,561 | 86,688 | 76,459 | 71,009 |
Non-interest expense | 65,201 | 67,354 | 57,587 | 56,621 | 57,738 | 55,022 | 53,504 | 53,687 | 246,763 | 219,951 | 205,556 |
Income before income tax expense | 56,128 | 43,094 | 48,805 | 45,758 | 47,662 | 49,591 | 47,595 | 43,290 | |||
Income tax expense | 8,298 | 6,337 | 7,749 | 6,941 | 5,949 | 8,478 | 7,961 | 6,611 | 29,325 | 28,999 | 37,524 |
Net income available to common stockholders | $ 47,830 | $ 36,757 | $ 41,056 | $ 38,817 | $ 41,713 | $ 41,113 | $ 39,634 | $ 36,679 | $ 164,460 | $ 159,139 | $ 96,070 |
Basic EPS (in dollars per share) | $ 0.87 | $ 0.71 | $ 0.83 | $ 0.79 | $ 0.85 | $ 0.83 | $ 0.80 | $ 0.75 | $ 3.20 | $ 3.23 | $ 2.13 |
Diluted EPS (in dollars per share) | $ 0.87 | $ 0.71 | $ 0.83 | $ 0.78 | $ 0.85 | $ 0.83 | $ 0.80 | $ 0.74 | $ 3.19 | $ 3.22 | $ 2.12 |
Average Shares Outstanding: | |||||||||||
Basic (in shares) | 55,348,176 | 51,433,227 | 49,432,167 | 49,369,024 | 49,314,276 | 49,286,945 | 49,252,580 | 49,192,647 | 51,412,133 | 49,262,015 | 45,181,221 |
Diluted (in shares) | 55,519,953 | 51,569,557 | 49,549,887 | 49,540,844 | 49,511,233 | 49,492,019 | 49,451,406 | 49,427,972 | 51,561,238 | 49,470,923 | 45,402,978 |
Condensed Financial Informati_3
Condensed Financial Information (parent company only) - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Premises and equipment | $ 113,055 | $ 93,420 | ||
Interest receivable | 48,901 | 40,881 | ||
Goodwill | 543,918 | 445,355 | $ 445,355 | |
Cash surrender value of life insurance | 288,206 | 224,939 | ||
Other assets | 100,194 | 47,772 | ||
TOTAL ASSETS | 12,457,254 | 9,884,716 | ||
Liabilities | ||||
Subordinated debentures and term loans | 138,685 | 138,463 | ||
Interest payable | 6,754 | 5,607 | ||
Other liabilities | 91,404 | 45,295 | ||
Total Liabilities | 10,670,817 | 8,476,456 | ||
Stockholders' equity | 1,786,437 | 1,408,260 | $ 1,303,463 | $ 901,657 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 12,457,254 | 9,884,716 | ||
Parent | ||||
Assets | ||||
Cash | 127,723 | 87,435 | ||
Investment in subsidiaries | 1,791,070 | 1,459,036 | ||
Premises and equipment | 153 | 1,158 | ||
Interest receivable | 6 | 6 | ||
Goodwill | 448 | 448 | ||
Cash surrender value of life insurance | 837 | 810 | ||
Other assets | 16,803 | 5,240 | ||
TOTAL ASSETS | 1,937,040 | 1,554,133 | ||
Liabilities | ||||
Subordinated debentures and term loans | 138,685 | 138,463 | ||
Interest payable | 977 | 994 | ||
Other liabilities | 10,941 | 6,416 | ||
Total Liabilities | 150,603 | 145,873 | ||
Stockholders' equity | 1,786,437 | 1,408,260 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,937,040 | $ 1,554,133 |
Condensed Financial Informati_4
Condensed Financial Information (parent company only) - Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income | |||||||||||
Other income | $ 2,068 | $ 2,699 | $ 992 | ||||||||
Expenses | |||||||||||
Interest expense | $ 28,237 | $ 29,200 | $ 27,361 | $ 23,947 | $ 20,769 | $ 18,314 | $ 16,300 | $ 13,704 | 108,745 | 69,087 | 37,612 |
Salaries and employee benefits | 144,037 | 131,704 | 119,812 | ||||||||
Other expenses | 17,804 | 16,966 | 15,543 | ||||||||
Income before income tax expense | 56,128 | 43,094 | 48,805 | 45,758 | 47,662 | 49,591 | 47,595 | 43,290 | |||
Income tax benefit | (8,298) | (6,337) | (7,749) | (6,941) | (5,949) | (8,478) | (7,961) | (6,611) | (29,325) | (28,999) | (37,524) |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | 164,460 | 159,139 | 96,070 | ||||||||
Net income | $ 47,830 | $ 36,757 | $ 41,056 | $ 38,817 | $ 41,713 | $ 41,113 | $ 39,634 | $ 36,679 | 164,460 | 159,139 | 96,070 |
Other comprehensive income (loss) | 49,296 | (17,888) | 10,673 | ||||||||
Comprehensive income | 213,756 | 141,251 | 106,743 | ||||||||
Parent | |||||||||||
Income | |||||||||||
Dividends from subsidiaries | 125,775 | 100,954 | 33,014 | ||||||||
Loss on sale of available for sale securities | 0 | 0 | (50) | ||||||||
Other income | 172 | 572 | 350 | ||||||||
Total income | 125,947 | 101,526 | 33,314 | ||||||||
Expenses | |||||||||||
Interest expense | 8,309 | 8,233 | 7,572 | ||||||||
Salaries and employee benefits | 3,540 | 3,729 | 4,118 | ||||||||
Net occupancy and equipment expenses | 802 | 851 | 797 | ||||||||
Other outside services | 1,889 | 489 | 1,810 | ||||||||
Professional services | 303 | 270 | 442 | ||||||||
Other expenses | 1,587 | 442 | (385) | ||||||||
Total expenses | 16,430 | 14,014 | 14,354 | ||||||||
Income before income tax expense | 109,517 | 87,512 | 18,960 | ||||||||
Income tax benefit | 3,575 | 3,298 | 5,946 | ||||||||
Income before equity in undistributed income of subsidiaries | 113,092 | 90,810 | 24,906 | ||||||||
Equity in undistributed income of subsidiaries | 51,368 | 68,329 | 71,164 | ||||||||
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | 164,460 | 159,139 | 96,070 | ||||||||
Net income | 164,460 | 159,139 | 96,070 | ||||||||
Other comprehensive income (loss) | 49,296 | (17,888) | 10,673 | ||||||||
Comprehensive income | $ 213,756 | $ 141,251 | $ 106,743 |
Condensed Financial Informati_5
Condensed Financial Information (parent company only) - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flow From Operating Activities: | |||||||||||
Net income | $ 47,830 | $ 36,757 | $ 41,056 | $ 38,817 | $ 41,713 | $ 41,113 | $ 39,634 | $ 36,679 | $ 164,460 | $ 159,139 | $ 96,070 |
Adjustments to Reconcile Net Income to Net Cash: | |||||||||||
Share-based compensation | 4,115 | 3,592 | 2,827 | ||||||||
Net Change in: | |||||||||||
Net cash provided by operating activities | 178,407 | 180,235 | 126,502 | ||||||||
Cash Flow From Investing Activities: | |||||||||||
Net cash received in acquisition | 10,207 | 0 | 54,536 | ||||||||
Other | (8,564) | 804 | (4,047) | ||||||||
Net cash used in investing activities | (1,006,399) | (575,576) | (635,330) | ||||||||
Cash Flows from Financing Activities: | |||||||||||
Stock issued under employee benefit plans | 702 | 707 | 519 | ||||||||
Stock issued under dividend reinvestment and stock purchase plan | 1,531 | 1,211 | 991 | ||||||||
Stock options exercised | 144 | 1,598 | 2,398 | ||||||||
Restricted shares withheld for taxes | (1,680) | (1,902) | (1,283) | ||||||||
Repurchase of common stock | (19,041) | 0 | 0 | ||||||||
Net cash provided by financing activities | 865,946 | 379,683 | 535,806 | ||||||||
Net Change in Cash and Cash Equivalents | 37,954 | (15,658) | 26,978 | ||||||||
Cash and Cash Equivalents, January 1 | 139,247 | 154,905 | 139,247 | 154,905 | 127,927 | ||||||
Cash and Cash Equivalents, December 31 | 177,201 | 139,247 | 177,201 | 139,247 | 154,905 | ||||||
Parent | |||||||||||
Cash Flow From Operating Activities: | |||||||||||
Net income | 164,460 | 159,139 | 96,070 | ||||||||
Adjustments to Reconcile Net Income to Net Cash: | |||||||||||
Share-based compensation | 1,339 | 1,256 | 1,215 | ||||||||
Distributions in excess of (equity in undistributed) income of subsidiaries | (51,368) | (68,329) | (71,164) | ||||||||
Loss on sale of available for sale securities | 0 | 0 | 50 | ||||||||
Net Change in: | |||||||||||
Other assets | (8,944) | 584 | 3,358 | ||||||||
Other liabilities | 4,611 | 274 | (1,900) | ||||||||
Investment in subsidiaries - operating activities | (268) | 841 | 1,112 | ||||||||
Net cash provided by operating activities | 109,830 | 93,765 | 28,741 | ||||||||
Cash Flow From Investing Activities: | |||||||||||
Net cash received in acquisition | 78 | 0 | 37 | ||||||||
Other | 0 | 2,189 | 0 | ||||||||
Net cash used in investing activities | 78 | 2,189 | 37 | ||||||||
Cash Flows from Financing Activities: | |||||||||||
Cash dividends | (51,276) | (41,660) | (31,820) | ||||||||
Stock issued under employee benefit plans | 702 | 707 | 519 | ||||||||
Stock issued under dividend reinvestment and stock purchase plan | 1,531 | 1,211 | 991 | ||||||||
Stock options exercised | 144 | 1,598 | 2,398 | ||||||||
Restricted shares withheld for taxes | (1,680) | (1,902) | (1,283) | ||||||||
Repurchase of common stock | (19,041) | 0 | 0 | ||||||||
Net cash provided by financing activities | (69,620) | (40,046) | (29,195) | ||||||||
Net Change in Cash and Cash Equivalents | 40,288 | 55,908 | (417) | ||||||||
Cash and Cash Equivalents, January 1 | $ 87,435 | $ 31,527 | 87,435 | 31,527 | 31,944 | ||||||
Cash and Cash Equivalents, December 31 | $ 127,723 | $ 87,435 | $ 127,723 | $ 87,435 | $ 31,527 |