Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 000-11486 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | CONNECTONE BANCORP, INC. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Address, City or Town | Englewood Cliffs | |
Entity Address, State or Province | NJ | |
Entity Tax Identification Number | 52-1273725 | |
Entity Address, Address Line One | 301 Sylvan Avenue | |
Entity Address, Postal Zip Code | 07632 | |
Local Phone Number | 201-816-8900 | |
Entity Information, Former Legal or Registered Name | N/A | |
Entity Common Stock, Shares Outstanding | 35,352,866 | |
Entity Central Index Key | 0000712771 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
City Area Code | 201 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock | |
Trading Symbol | CNOB | |
Name of Exchange on which Security is Registered | NASDAQ |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 51,950 | $ 39,161 |
Interest-bearing deposits with banks | 133,700 | 133,205 |
Cash and cash equivalents | 185,650 | 172,366 |
Securities available-for-sale | 441,911 | 412,034 |
Equity securities | 11,152 | 11,460 |
Loans receivable | 5,090,492 | 4,541,092 |
Less: Allowance for loan losses | 37,698 | 34,954 |
Net loans receivable | 5,052,794 | 4,506,138 |
Investment in restricted stock, at cost | 31,767 | 31,136 |
Bank premises and equipment, net | 19,781 | 19,062 |
Accrued interest receivable | 21,272 | 18,214 |
Bank owned life insurance | 126,132 | 113,820 |
Right of use operating lease assets | 16,397 | |
Goodwill | 162,574 | 145,909 |
Core deposit intangibles | 6,140 | 1,737 |
Other assets | 33,496 | 30,216 |
Total assets | 6,109,066 | 5,462,092 |
Deposits: | ||
Noninterest-bearing | 813,635 | 768,584 |
Interest-bearing | 3,827,508 | 3,323,508 |
Total deposits | 4,641,143 | 4,092,092 |
Borrowings | 597,317 | 600,001 |
Operating lease liabilities | 17,787 | |
Subordinated debentures (net of debt issuance costs of $1,435 and $1,599, respectively) | 128,720 | 128,556 |
Other liabilities | 24,875 | 27,516 |
Total liabilities | 5,409,842 | 4,848,165 |
STOCKHOLDERS' EQUITY | ||
Preferred stock: Authorized 5,000,000 shares | ||
Common stock, no par value: Authorized 50,000,000 shares; issued 37,656,806 shares at June 30, 2019 and 34,392,464 shares at December 31, 2018; outstanding 35,352,866 shares at June 30, 2019 and 32,328,542 at December 31, 2018 | 468,571 | 412,546 |
Additional paid-in capital | 19,777 | 15,542 |
Retained earnings | 235,649 | 211,345 |
Treasury stock, at cost (2,303,940 common shares at June 30, 2019 and 2,063,922 at December 31, 2018) | (21,892) | (16,717) |
Accumulated other comprehensive loss | (2,881) | (8,789) |
Total stockholders' equity | 699,224 | 613,927 |
Total liabilities and stockholders' equity | $ 6,109,066 | $ 5,462,092 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Subordinated debentures, debt issuance costs | $ 1,435 | $ 1,599 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 37,656,806 | 34,392,464 |
Common stock, shares outstanding | 35,352,866 | 32,328,542 |
Treasury Stock, Shares | 2,303,940 | 2,063,922 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Interest income | |||||
Interest and fees on loans | $ 63,524 | $ 49,494 | $ 123,850 | $ 96,519 | |
Interest and dividends on investment securities: | |||||
Taxable | 2,573 | 2,150 | 5,515 | 4,037 | |
Tax-exempt | 1,081 | 778 | 2,208 | 1,592 | |
Dividends | 410 | 502 | 867 | 987 | |
Interest on federal funds sold and other short-term investments | 290 | 160 | 647 | 424 | |
Total interest income | 67,878 | 53,084 | 133,087 | 103,559 | |
Interest expense | |||||
Deposits | 16,596 | 9,169 | 31,947 | 16,857 | |
Borrowings | 5,752 | 4,970 | 10,658 | 9,610 | |
Total interest expense | 22,348 | 14,139 | 42,605 | 26,467 | |
Net interest income | 45,530 | 38,945 | 90,482 | 77,092 | |
Provision for loan losses | 1,100 | 1,100 | 5,600 | 18,900 | |
Net interest income after provision for loan losses | 44,430 | 37,845 | 84,882 | 58,192 | |
Noninterest income | |||||
Income on bank owned life insurance | [1] | 833 | 775 | 1,655 | 1,549 |
Net gains on sale of loans held-for-sale | [1] | 46 | 12 | 65 | 29 |
Deposit, loan and other income | 914 | 601 | 1,700 | 1,217 | |
Net gains (losses) on equity securities | 158 | (47) | 261 | (168) | |
Net losses on sales of securities available-for-sale | [1] | (9) | (1) | ||
Total noninterest income | 1,942 | 1,341 | 3,680 | 2,627 | |
Noninterest expenses | |||||
Salaries and employee benefits | 11,793 | 9,729 | 23,748 | 19,401 | |
Occupancy and equipment | 2,357 | 2,031 | 4,852 | 4,174 | |
FDIC insurance | 825 | 765 | 1,580 | 1,615 | |
Professional and consulting | 1,370 | 825 | 2,579 | 1,548 | |
Marketing and advertising | 397 | 337 | 607 | 544 | |
Data processing | 1,139 | 1,091 | 2,294 | 2,239 | |
Merger expenses | 331 | 7,893 | |||
Loss on extinguishment of debt | 1,047 | 1,047 | |||
Amortization of core deposit intangibles | 364 | 169 | 728 | 338 | |
Other components of net periodic pension expense | 29 | 7 | 57 | 14 | |
Other expenses | 1,938 | 2,107 | 4,267 | 4,126 | |
Total noninterest expenses | 21,590 | 17,061 | 49,652 | 33,999 | |
Income before income tax expense | 24,782 | 22,125 | 38,910 | 26,820 | |
Income tax expense | 5,501 | 4,598 | 7,994 | 5,042 | |
Net income | $ 19,281 | $ 17,527 | $ 30,916 | $ 21,778 | |
Earnings per common share: | |||||
Basic | $ 0.54 | $ 0.54 | $ 0.87 | $ 0.68 | |
Diluted | $ 0.54 | $ 0.54 | $ 0.87 | $ 0.67 | |
[1] | Not within scope of ASC 606. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 19,281 | $ 17,527 | $ 30,916 | $ 21,778 |
Unrealized gains and losses: | ||||
Unrealized holding gains (losses) on available-for-sale securities arising during the period | 4,027 | (1,780) | 9,585 | (6,799) |
Tax effect | (1,055) | 445 | (2,477) | 1,737 |
Net of tax | 2,972 | (1,335) | 7,108 | (5,062) |
Reclassification adjustment for realized losses included in net income | 9 | 1 | ||
Tax effect | (2) | |||
Net of tax | 7 | 1 | ||
Unrealized (losses) gains on cash flow hedges | (897) | 178 | (1,287) | 1,094 |
Tax effect | 252 | (49) | 361 | (307) |
Net of tax | (645) | 129 | (926) | 787 |
Unrealized pension plan gains and losses: | ||||
Unrealized pension plan (losses) gains before reclassifications | (562) | 236 | ||
Tax effect | 158 | (67) | ||
Net of tax | (404) | 169 | ||
Reclassification adjustment for amortization included in net income | 90 | 92 | 179 | 183 |
Tax effect | (25) | (26) | (50) | (51) |
Net of tax | 65 | 66 | 129 | 132 |
Total other comprehensive (loss) income | 2,399 | (1,140) | 5,908 | (3,974) |
Total comprehensive income | $ 21,680 | $ 16,387 | $ 36,824 | $ 17,804 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total |
Balance at Dec. 31, 2017 | $ 412,546 | $ 13,602 | $ 160,025 | $ (16,717) | $ (4,019) | $ 565,437 | |
Reclassification of stranded tax effects (ASU 2018-02) (see Note 8) | 709 | (709) | |||||
Cumulative effect of adopting ASU 2016-01 (see Note 8) | (55) | 55 | |||||
Net income | 21,778 | 21,778 | |||||
Other comprehensive income, net of tax | (3,974) | (3,974) | |||||
Cash dividends declared on common stock ($0.18 per share) | (4,838) | (4,838) | |||||
Exercise of stock options | 252 | 252 | |||||
Restricted stock grants | |||||||
Net performance units issued (26,517 shares) | (819) | (819) | |||||
Stock-based compensation expense | 721 | 721 | |||||
Balance at Jun. 30, 2018 | 412,546 | 13,756 | 177,619 | (16,717) | (8,647) | 578,557 | |
Balance at Mar. 31, 2018 | 412,546 | 13,434 | 162,510 | (16,717) | (7,507) | 564,266 | |
Net income | 17,108 | 17,527 | |||||
Other comprehensive income, net of tax | (1,140) | (1,140) | |||||
Cash dividends declared on common stock ($0.18 per share) | (1,999) | (1,999) | |||||
Exercise of stock options | 50 | 50 | |||||
Restricted stock grants | |||||||
Stock-based compensation expense | 272 | 272 | |||||
Balance at Jun. 30, 2018 | 412,546 | 13,756 | 177,619 | (16,717) | (8,647) | 578,557 | |
Balance at Dec. 31, 2018 | 412,546 | 15,542 | 211,345 | (16,717) | (8,789) | 613,927 | |
Net income | 30,916 | 30,916 | |||||
Other comprehensive income, net of tax | 5,908 | 5,908 | |||||
Cash dividends declared on common stock ($0.18 per share) | (6,612) | (6,612) | |||||
Exercise of stock options | 265 | 265 | |||||
Restricted stock grants | |||||||
Repurchase of treasury stock (240,018 shares) | (5,175) | (5,175) | |||||
Net performance units issued (26,517 shares) | 196 | 196 | |||||
Stock issued (3,032,496 shares) in acquisition of Greater Hudson Bank | 56,025 | 56,025 | |||||
Restricted stock issued (119,008 shares) in acquisition of BoeFly LLC | 2,500 | 2,500 | |||||
Stock-based compensation expense | 1,274 | 1,274 | |||||
Balance at Jun. 30, 2019 | 468,571 | 19,777 | 235,649 | (21,892) | (2,881) | 699,224 | |
Balance at Mar. 31, 2019 | 468,571 | 16,513 | 219,558 | (16,967) | (5,280) | 682,395 | |
Net income | 19,281 | 19,281 | |||||
Other comprehensive income, net of tax | 2,399 | 2,399 | |||||
Cash dividends declared on common stock ($0.18 per share) | (3,190) | (3,190) | |||||
Exercise of stock options | 122 | 122 | |||||
Restricted stock grants | |||||||
Repurchase of treasury stock (240,018 shares) | (4,925) | (4,925) | |||||
Stock issued (119,008 shares) in acquisition of BoeFly LLC | 2,500 | 2,500 | |||||
Stock-based compensation expense | 642 | 642 | |||||
Balance at Jun. 30, 2019 | $ 468,571 | $ 19,777 | $ 235,649 | $ (21,892) | $ (2,881) | $ 699,224 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash dividends declared on common stock (in Dollars per share) | $ 0.09 | $ 0.075 | $ 0.18 | $ 0.15 |
Exercise of stock options, shares | 6,946 | 7,800 | 28,937 | 46,497 |
Restricted stock and performance units grants, shares | 8,997 | 1,014 | 52,480 | 23,018 |
Restricted stock units, shares | $ 4,904 | |||
Net performance units issued | 26,517 | 42,672 | ||
Repurchase of treasury stock | 227,018 | 240,018 | ||
Greater Hudson Bank [Member] | ||||
Stock issued in acquisition | 3,032,496 | |||
Boefly [Member] | ||||
Stock issued in acquisition | 119,008 | 119,008 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Cash flows from operating activities | |||
Net income | $ 30,916 | $ 21,778 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of premises and equipment | 1,597 | 1,536 | |
Provision for loan losses | 5,600 | 18,900 | |
Amortization of intangibles | 728 | 338 | |
Net accretion of loans | (2,450) | (806) | |
Accretion on bank premises | (43) | (33) | |
Accretion on deposits | (639) | (31) | |
Amortization (accretion) on borrowings | 114 | (82) | |
Stock-based compensation expense | 1,470 | (98) | |
Losses on sales of investment securities, net | [1] | 1 | |
(Gains) losses on equity securities, net | (261) | 168 | |
Gains on sales of loans held-for-sale, net | (65) | (29) | |
Loans originated for resale | (4,044) | (1,498) | |
Proceeds from sale of loans held-for-sale | 4,109 | 1,897 | |
Loss on extinguishment of debt | 1,047 | ||
Increase in cash surrender value of bank owned life insurance | (1,655) | (964) | |
Amortization of premiums and accretion of discounts on investments securities, net | 1,759 | 1,832 | |
Amortization of subordinated debt issuance costs | 164 | 168 | |
Increase in accrued interest receivable | (624) | (1,284) | |
Net change in operating leases | 1,390 | ||
Decrease (increase) in other assets | 4,231 | (126) | |
(Decrease) increase in other liabilities | (8,078) | 12,633 | |
Net cash provided by operating activities | 35,267 | 54,299 | |
Investment securities available-for-sale: | |||
Purchases | (141,739) | (60,595) | |
Sales | 150,332 | ||
Maturities, calls and principal repayments | 91,028 | 75,506 | |
Sales of equity securities | 569 | ||
Net (purchases) redemptions of restricted investment in bank stocks | (631) | 1,056 | |
Payments on loans held-for-sale | 159 | ||
Net increase in loans | (186,892) | (181,868) | |
Purchases of premises and equipment | (649) | (233) | |
Cash and cash equivalents acquired in acquisition | 13,741 | ||
Cash consideration paid in acquisition | (2,530) | ||
Net cash used in investing activities | (76,771) | (165,975) | |
Cash flows from financing activities | |||
Net increase in deposits | 133,580 | 110,313 | |
Increase in subordinated debentures | 73,525 | ||
Advances of Federal Home Loan Bank ("FHLB") borrowings | 892,000 | 863,000 | |
Repayments of FHLB borrowings | (960,031) | (904,000) | |
Repurchase of treasury stock | (5,175) | ||
Cash dividends paid on common stock | (5,851) | (4,827) | |
Proceeds from exercise of stock options | 265 | 252 | |
Net cash provided by financing activities | 54,788 | 138,263 | |
Net change in cash and cash equivalents | 13,284 | 26,587 | |
Cash and cash equivalents at beginning of period | 172,366 | 149,582 | |
Cash and cash equivalents at end of period | 185,650 | 176,169 | |
Cash payments for: | |||
Interest paid on deposits and borrowings | 44,169 | 25,055 | |
Income taxes | 7,816 | 1,497 | |
Supplemental disclosures of noncash investing activities | |||
Transfer of loans to other real estate owned | 538 | ||
Transfer of loans held-for-investment to loans held-for-sale | 21,236 | ||
Transfer of loans held-for-sale to held-for-investment | 45,552 | ||
Business combinations: | |||
Fair value of net assets acquired, net of cash and cash equivalents | 534,146 | ||
Fair value of liabilities assumed | $ 488,475 | ||
[1] | Not within scope of ASC 606. |
Nature of Operations and Princi
Nature of Operations and Principles of Consolidation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Principles of Consolidation | Note 1. Nature of Operations and Principles of Consolidation ConnectOne Bancorp, Inc. (the “Parent Corporation”) is incorporated under the laws of the State of New Jersey and is a registered bank holding company. The Parent Corporation’s business currently consists of the operation of its wholly-owned subsidiary, ConnectOne Bank (the “Bank” and, collectively with the Parent Corporation and the Parent Corporation’s subsidiaries, the “Company”). The Bank’s subsidiaries include Union Investment Co. (a New Jersey investment company), Twin Bridge Investment Co. (a Delaware investment company), ConnectOne Preferred Funding Corp. (a New Jersey real estate investment trust), Center Financial Group, LLC (a New Jersey financial services company), Center Advertising, Inc. (a New Jersey advertising company), Morris Property Company, LLC, (a New Jersey limited liability company), Volosin Holdings, LLC, (a New Jersey limited liability company), NJCB Spec-1, LLC (a New Jersey limited liability company) and BoeFly, Inc. (a New Jersey online business lending place). The Bank is a community-based, full-service New Jersey-chartered commercial bank that was founded in 2005. The Bank operates from its headquarters located at 301 Sylvan Avenue in the Borough of Englewood Cliffs, Bergen County, New Jersey and through its twenty-eight other banking offices. Substantially all loans are secured with various types of collateral, including business assets, consumer assets and commercial/residential real estate. Each borrower’s ability to repay its loans is dependent on the conversion of assets, cash flows generated from the borrower’s business, real estate rental and consumer wages. The preceding unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X, and, accordingly, do not include all of the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019, or for any other interim period. The Company’s 2018 Annual Report on Form 10-K should be read in conjunction with these consolidated financial statements. In preparing the consolidated financial statements, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the consolidated statements of condition and that affect the results of operations for the periods presented. Actual results could differ significantly from those estimates. The consolidated financial statements have been prepared in conformity with GAAP. Some items in the prior year consolidated financial statements were reclassified to conform to current presentation. Reclassifications had no effect on prior year net income or stockholders’ equity. |
Authoritative Accounting Guidan
Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Authoritative Accounting Guidance | Note 1a. Authoritative Accounting Guidance Newly Issued, But Not Yet Effective Accounting Standards ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” ( modified by ASU 2018-19, ASU 2019-04 and ASU 2019-05). ASU 2016- 13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee which has assessed our data and system needs. The Company has engaged third-party vendors to assist in analyzing our data and developing a CECL model. The Company, in conjunction with these vendors, has researched and analyzed modeling standards, loan segmentation, as well as potential external inputs to supplement our loss history. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements. ASU No. 2017-08, “ Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities .” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating this ASU to determine the impact on our consolidated financial statements. ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ” These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. ASU 2018-15 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. ” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement .” The amendments in this update modify disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. The amendments primarily pertain to Level 3 fair value measurements and depending on the amendment are applied either prospectively or retrospectively. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact on our consolidated financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2019 | |
Business combinations: | |
Business Combination | Note 2. Business Combination Greater Hudson Bank On July 11, 2018, the Company entered into an Agreement and Plan of Merger with Greater Hudson Bank (“GHB”), under which GHB would merge with and into ConnectOne Bank, with ConnectOne Bank as the surviving bank. This transaction was completed effective January 2, 2019 (“Merger date”). As part of this merger, the Company acquired seven branch offices located in Rockland, Orange and Westchester Counties, New York. Pursuant to the merger agreement, holders of GHB common stock received 0.245 shares of common stock of ConnectOne with cash paid in lieu of fractional shares. The acquisition of GHB was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration paid were recorded at their estimated fair values as of the acquisition date. The application of the acquisition method of accounting resulted in the recognition of goodwill of $10.3 million and a core deposit intangible of $5.1 million. The assets acquired and liabilities assumed and consideration paid in the acquisition of GHB were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition and are subject to adjustment for up to one year after the closing date of the acquisition. While the fair values are not expected to be materially different from the estimates, accounting guidance provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period, which runs through January 2, 2020, in the measurement period in which the adjustment amounts are determined. The acquirer must record in the financial statements, the effect on earnings of changes in depreciation, amortization or other income effects, if any, as a result of the changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The items most susceptible to adjustment are the credit fair value adjustments on loans, core deposit intangible and the deferred income tax assets resulting from the acquisition. In connection with the acquisition, the consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: Estimated Fair Value at January 2, 2019 (in thousands) Consideration paid: Common stock issued in acquisition $ 56,025 Assets acquired: Cash and cash equivalents 13,741 Securities available-for-sale 121,672 Loans, net 362,914 Premises and equipment, net 1,624 Accrued interest receivable 2,434 Core deposit intangibles 5,131 Other assets 26,650 Total assets acquired 534,166 Liabilities assumed: Deposits 416,110 Borrowings 64,186 Other liabilities 8,179 Total liabilities assumed 488,475 Net assets acquired 45,691 Goodwill recorded in acquisition $ 10,334 The amount of goodwill recorded represents the excess purchase price over the estimated fair value of the net assets acquired by ConnectOne and reflects the economies of scale, increased market share and lending capabilities, greater access to best-in-class banking technology, and related synergies that are expected to result from the acquisition. Loans acquired in the GHB acquisition were recorded at fair value, and there was no carryover related allowance for loan losses. The fair values of loans acquired from GHB were estimated based on the value of the expected cash flows, which were projected based on the contractual terms of the loans, including both maturity and contractual amortization. The monthly principal and interest cash flows were adjusted for expected losses and prepayments, where appropriate. Projected cash flows were then discounted to present value using a discount rate developed based on the relative risk of the cash flows, considering the loan type, liquidity risk, the maturity of the loans, servicing costs and a required return on capital. As of June 30, 2019 there were no changes to the provisional fair value adjustments recorded on January 2, 2019. The following is a summary of the loans accounted for in accordance with ASC 310-30 that were acquired in the GHB acquisition as of the Merger date: Estimated Fair Value at January 2, 2019 (in thousands) Contractually required principal and interest acquisition $ 19,874 Contractual cash flows not expected to be collected (non-accretable discount) (12,167 ) Expected cash flows at acquisition 7,707 Interest component of expected cash flows (accretable discount) (1,286 ) Fair value of acquired loans $ 6,421 Goodwill related to GHB is not amortized for book purposes; however, it is reviewed at least annually for impairment and is not deductible for tax purposes. The fair value of retail demand and interest-bearing deposit accounts was assumed to approximate the carrying value as those accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities. The fair value of borrowed funds was estimated by discounting the future cash flows using market rates for similar borrowings. Direct acquisition and integration costs of the GHB acquisition were expensed as incurred. These items were recorded as merger-related expenses on the consolidated statement of income. During the three months and six months ended June 30, 2019, merger expenses related to the GHB acquisition were $-0- and $7.6 million, respectively. BoeFly, LLC On May 31, 2019, ConnectOne Bank completed the acquisition of New York/Boston-based BoeFly, LLC, which operates an online business lending marketplace connecting small- to medium-sized businesses with lenders and professional loan brokers across the United States. The business will operate as BoeFly, Inc., a wholly owned subsidiary of ConnectOne Bank, and is expected to generate fee income and small business lending opportunities for the Bank. The consideration exchanged was a combination of cash, restricted stock and a potential cash earn-out based on predefined business origination targets. The Company recorded $6.3 million as goodwill on its consolidated statement of condition as of the acquisition date. The acquisition of BoeFly, LLC was not material to the results of operations or financial condition of the Company. Direct acquisition and integration costs of the BoeFly, LLC acquisition were expensed as incurred. These items were recorded as merger-related expenses on the consolidated statement of income. Merger expenses related to the BoeFly, LLC acquisition were $0.3 million for both the three and six months ended June 30, 2019. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings per common share: | |
Earnings per Common Share | Note 3. Earnings per Common Share Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 260-10-45 addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share (“EPS”). The restricted stock awards previously granted by the Company contain non-forfeitable rights to dividends and therefore are considered participating securities. The two-class method for calculating basic EPS excludes dividends paid to participating securities and any undistributed earnings attributable to participating securities. Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except for per share data) 2019 2018 2019 2018 Net income $ 19,281 $ 17,527 $ 30,916 $ 21,778 Earnings allocated to participating securities (58 ) (37 ) (140 ) (54 ) Income attributable to common stock $ 19,223 $ 17,490 $ 30,776 $ 21,724 Weighted average common shares outstanding, including participating securities 35,365 32,134 35,322 32,106 Weighted average participating securities (49 ) (20 ) (26 ) (38 ) Weighted average common shares outstanding 35,316 32,114 35,296 32,068 Incremental shares from assumed conversions of options, performance units and non-participating restricted shares 79 207 74 208 Weighted average common and equivalent shares outstanding 35,395 32,321 35,370 32,276 Earnings per common share: Basic $ 0.54 $ 0.54 $ 0.87 $ 0.68 Diluted 0.54 0.54 0.87 0.67 There were no antidilutive share equivalents as of June 30, 2019 and June 30, 2018. |
Securities Available-for-Sale
Securities Available-for-Sale | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | Note 4. Securities Available-for-Sale Securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of June 30, 2019 and December 31, 2018. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 7 of the Notes to Consolidated Financial Statements for a further discussion. The following table summarizes the amortized cost and fair value of securities available-for-sale at June 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2019 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 24,877 $ 599 $ (15 ) $ 25,461 Residential mortgage pass-through securities 230,064 881 (1,403 ) 229,542 Commercial mortgage pass-through securities 5,748 78 - 5,826 Obligations of U.S. states and political subdivisions 142,521 2,417 (819 ) 144,119 Corporate bonds and notes 28,128 267 (278 ) 28,117 Asset-backed securities 7,802 2 (58 ) 7,746 Certificates of deposit 148 2 - 150 Other securities 950 - - 950 Total securities available-for-sale $ 440,238 $ 4,246 $ (2,573 ) $ 441,911 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2018 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 45,509 $ 51 $ (605 ) $ 44,955 Residential mortgage pass-through securities 189,721 85 (4,602 ) 185,204 Commercial mortgage pass-through securities 3,919 - (45 ) 3,874 Obligations of U.S. states and political subdivisions 141,496 1,091 (3,402 ) 139,185 Corporate bonds and notes 26,308 45 (540 ) 25,813 Asset-backed securities 9,685 22 (16 ) 9,691 Certificates of deposit 319 3 - 322 Other securities 2,990 - - 2,990 Total securities available-for-sale $ 419,947 $ 1,297 $ (9,210 ) $ 412,034 Investment securities having a carrying value of approximately $125.4 million and $151.5 million at June 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits, borrowings, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of June 30, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. The following table presents information for investments in securities available-for-sale at June 30, 2019, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately. June 30, 2019 Amortized Fair Cost Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 4,166 $ 4,192 Due after one year through five years 29,411 29,449 Due after five years through ten years 22,538 23,126 Due after ten years 147,361 148,826 Residential mortgage pass-through securities 230,064 229,542 Commercial mortgage pass-through securities 5,748 5,826 Other securities 950 950 Total securities available-for-sale $ 440,238 $ 441,911 Gross gains and losses from the sales of securities for periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2018 2019 2018 Proceeds $ 47,664 $ - $ 141,739 $ - Gross gains on sales of securities 263 - 400 - Gross losses on sales of securities (272 ) - (401 ) - Net losses on sales of securities (9 ) - (1 ) - Less: tax provision on net losses (2 ) - - - Net losses on sales of securities, after tax $ (7 ) $ - $ (1 ) $ - The Company reviews all securities for potential recognition of other-than-temporary impairment. The Company maintains a watch list for the identification and monitoring of securities experiencing problems that require a heightened level of review. This could include credit rating downgrades. The Company’s assessment of whether an impairment in the portfolio is other-than-temporary includes factors such as whether the issuer has defaulted on scheduled payments, announced restructuring and/or filed for bankruptcy, has disclosed severe liquidity problems that cannot be resolved, disclosed deteriorating financial condition or sustained significant losses. Temporarily Impaired Securities The Company does not believe that any of the unrealized losses, which were comprised of 69 and 148 securities as of June 30, 2019 and December 31, 2018, respectively, represent an other-than-temporary impairment (“OTTI”). The gross unrealized losses associated with U.S. Treasury and agency securities, federal agency obligations, mortgage-backed securities, corporate bonds, tax-exempt securities, and asset-backed securities are not considered to be other-than-temporary because these unrealized losses are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issuer. Factors which may contribute to unrealized losses include credit risk, market risk, changes in interest rates, economic cycles, and liquidity risk. The magnitude of any unrealized loss may be affected by the relative concentration of the Company’s investment in any one issuer or industry. The Company has established policies to reduce exposure through diversification of the securities portfolio including limits on concentrations to any one issuer. The Company believes the securities portfolio is prudently diversified. The unrealized losses included in the tables below are primarily related to changes in interest rates and credit spreads. All of the Company’s securities are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. These are largely intermediate duration holdings and, in certain cases, monthly principal payments can further reduce loss exposure resulting from an increase in rates. The Company evaluates all securities with unrealized losses quarterly to determine whether the loss is other-than-temporary. Unrealized losses in the corporate debt securities category consist primarily of senior unsecured corporate debt securities issued by large financial institutions, insurance companies and other corporate issuers. No corporate issuers have defaulted on interest payments. The declines in fair value is due in large part to the lack of an active trading market for these securities, changes in market credit spreads and rating agency downgrades. Management concluded that these securities were not OTTI at June 30, 2019. In determining whether or not securities are OTTI, the Company must exercise considerable judgment. Accordingly, there can be no assurance that the actual results will not differ from the Company’s judgments and that such differences may not require the future recognition of OTTI charges that could have a material effect on the Company’s financial position and results of operations. In addition, the value of, and the realization of any loss on, a security is subject to numerous risks as cited above. The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018: June 30, 2019 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 4,260 $ (15 ) $ - $ - $ 4,260 $ (15 ) Residential mortgage pass-through securities 147,392 (1,403 ) 42,750 (73 ) 104,642 (1,330 ) Obligations of U.S. states and political subdivisions 41,825 (819 ) - - 41,825 (819 ) Corporate bonds and notes 8,696 (278 ) 2,000 - 6,696 (278 ) Asset-backed securities 6,397 (58 ) 4,406 (47 ) 1,991 (11 ) Total temporarily impaired securities $ 208,570 $ (2,573 ) $ 49,156 $ (120 ) $ 159,414 $ (2,453 ) December 31, 2018 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 35,472 $ (605 ) $ 810 $ (1 ) $ 34,662 $ (604 ) Residential mortgage pass-through securities 178,365 (4,602 ) 42,040 (393 ) 136,325 (4,209 ) Commercial mortgage pass-through securities 3,874 (45 ) - - 3,874 (45 ) Obligations of U.S. states and political subdivisions 64,367 (3,402 ) 7,765 (21 ) 56,602 (3,381 ) Corporate bonds and notes 15,534 (540 ) 7,767 (133 ) 7,767 (407 ) Asset-backed securities 3,957 (16 ) 2,219 (11 ) 1,738 (5 ) Total Temporarily Impaired Securities $ 301,569 $ (9,210 ) $ 60,601 $ (559 ) $ 240,968 $ (8,651 ) |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 5. Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Interest rate swaps were entered into on June 4, 2019 with a notional amount of $50 million and in April 13, 2017, August 24, 2015, December 30, 2014 and October 15, 2014, each with a respective notional amount of $25 million and were designated as cash flow hedges of an FHLB advance. The swaps were determined to be fully effective during the period presented and therefore no amount of ineffectiveness has been included in net income while the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining term of the swaps. Summary information about the interest rate swaps designated as cash flow hedges as of June 30, 2019, December 31, 2018 and June 30, 2018 are presented in the following table. June 30, December 31, June 30, 2019 2018 2018 (dollars in thousands) Notional amount $ 125,000 $ 75,000 $ 100,000 Weighted average pay rates 1.81 % 1.70 % 1.68 % Weighted average receive rates 2.69 % 2.19 % 1.99 % Weighted average maturity 1.7 years 2.0 years 1.9 years Fair value $ (128 ) $ 1,159 $ 1,893 Interest expense recorded on these swap transactions totaled approximately $(176,000) and $(358,000) for the three and six months ended June 30, 2019, respectively, and $(148,000) and $(152,000) for the three and six months ended June 30, 2018, respectively. Cash Flow Hedge The following table presents the net gains/losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods: Six Months Ended June 30, 2019 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ (929 ) $ (358 ) $ - Six Months Ended June 30, 2018 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 1,246 $ (152 ) $ - The following table reflects the cash flow hedges included in the consolidated statements of condition as of June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Notional Notional Amount Fair Value Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 125,000 $ (128 ) $ 75,000 $ 1,159 |
Loans and the Allowance for Loa
Loans and the Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and the Allowance for Loan Losses | Note 6. Loans and the Allowance for Loan Losses Loans receivable - The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (dollars in thousands) Commercial $ 1,052,559 $ 988,758 Commercial real estate 3,111,274 2,778,167 Commercial construction 602,213 465,389 Residential real estate 326,661 309,991 Consumer 2,041 2,594 Gross loans 5,094,748 4,544,899 Net deferred loan fees (4,256 ) (3,807 ) Total loans receivable $ 5,090,492 $ 4,541,092 At June 30, 2019 and December 31, 2018, loan balances of approximately $2.5 billion and $2.3 billion, respectively, were pledged to secure borrowings from the FHLB of New York. Purchased Credit-Impaired Loans - The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment in those loans is as follows at June 30, 2019 and December 31, 2018. June 30, December 31, 2019 2018 (dollars in thousands) Commercial $ 5,399 $ 2,509 Commercial real estate 1,305 - $ 6,704 $ 2,509 For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during either the three and six months ended June 30, 2019 and June 30, 2018. There were no reversals from the allowance for loan losses during the three and six months ended June 30, 2019 and June 30, 2018. The following table presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for three and six months ended June 30, 2019 and June 30, 2018: Three Months Three Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Balance at April 1 $ 2,213 $ 1,322 Accretion of income (575 ) (63 ) Balance at June 30 $ 1,638 $ 1,259 Six Months Six Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Balance at January 1 $ 1,134 $ 1,387 New loans purchased 1,286 Accretion of income (782 ) (128 ) Balance at June 30 $ 1,638 $ 1,259 Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans included in loans receivable by loan class as of June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (dollars in thousands) Commercial $ 28,433 $ 29,340 Commercial real estate 12,686 15,135 Commercial construction 3,579 2,934 Residential real estate 5,219 4,446 Total nonaccrual loans $ 49,917 $ 51,855 Nonaccrual loans and loans 90 days or greater past due and still accruing include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment. Credit Quality Indicators - The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected. All loans past due 90 days or greater and all impaired loans are included in the appropriate category below. The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) at June 30, 2019 and December 31, 2018: June 30, 2019 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 997,503 $ 19,269 $ 35,787 $ - $ 1,052,559 Commercial real estate 3,084,014 7,622 19,638 - 3,111,274 Commercial construction 589,165 4,106 8,942 - 602,213 Residential real estate 321,316 - 5,345 - 326,661 Consumer 2,034 - 7 - 2,041 Gross loans $ 4,994,032 $ 30,997 $ 69,719 $ - $ 5,094,748 December 31, 2018 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 951,610 $ 3,371 $ 33,777 $ - $ 988,758 Commercial real estate 2,742,989 12,574 22,604 - 2,778,167 Commercial construction 453,598 5,515 6,276 - 465,389 Residential real estate 305,414 - 4,577 - 309,991 Consumer 2,576 - 18 - 2,594 Gross loans $ 4,456,187 $ 21,460 $ 67,252 $ - $ 4,544,899 The following table provides an analysis of the impaired loans by segment as of June 30, 2019 and December 31, 2018: June 30, 2019 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 32,559 $ 79,328 Commercial real estate 17,162 17,317 Commercial construction 6,047 6,047 Residential real estate 3,175 3,519 Total (no related allowance) $ 58,943 $ 106,211 With an allowance recorded Commercial real estate $ 393 $ 393 $ 29 Commercial construction 2,894 2,895 162 Residential real estate 253 265 22 Total (with allowance) $ 3,540 $ 3,553 $ 213 Total Commercial $ 32,559 $ 79,328 $ - Commercial real estate 17,555 17,710 29 Commercial construction 8,941 8,942 162 Residential real estate 3,428 3,784 22 Total $ 62,483 $ 109,764 $ 213 December 31, 2018 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 29,896 $ 83,596 Commercial real estate 16,839 17,935 Commercial construction 9,240 9,240 Residential real estate 2,209 2,521 Total (no related allowance) $ 58,184 $ 113,292 With an allowance recorded Commercial real estate $ 1,488 $ 1,488 $ 7 Residential real estate 260 266 29 $ 1,748 $ 1,754 $ 36 Total Commercial $ 29,896 $ 83,596 $ - Commercial real estate 18,327 19,423 7 Commercial construction 9,240 9,240 - Residential real estate 2,469 2,787 29 Total $ 59,932 $ 115,046 $ 36 The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by segment as of and for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (dollars in thousands) Impaired loans Commercial $ 33,663 $ 82 $ 38,770 $ 35 $ 33,066 $ 164 $ 42,056 $ 66 Commercial real estate 17,205 68 23,422 127 17,170 143 23,504 370 Commercial construction 6,048 25 9,225 176 6,049 80 9,845 295 Residential real estate 3,198 - 2,569 - 3,195 - 2,599 - Total $ 60,114 $ 175 $ 73,986 $ 338 $ 59,480 $ 387 $ 78,004 $ 731 Impaired loans (allowance): Commercial real estate $ 393 $ - $ 8,544 $ 11 $ 393 $ - $ 8,548 $ 23 Commercial construction 2,850 42 - - 2,818 85 - - Residential real estate 255 - - - 256 - - - Total $ 3,498 $ 42 $ 8,544 $ 11 $ 3,467 $ 85 $ 8,548 $ 23 Total impaired loans: Commercial $ 33,663 $ 82 $ 38,770 $ 35 $ 33,066 $ 164 $ 42,056 $ 66 Commercial real estate 17,598 68 31,966 138 17,563 143 32,052 393 Commercial construction 8,898 67 9,225 176 8,867 165 9,845 295 Residential mortgage 3,453 - 2,569 - 3,451 - 2,599 - Total $ 63,612 $ 217 $ 82,530 $ 349 $ 62,947 $ 472 $ 86,552 $ 754 Included in impaired loans at June 30, 2019 and December 31, 2018 are loans that are deemed troubled debt restructurings. The recorded investment in loans include accrued interest receivable and other capitalized costs such as real estate taxes paid on behalf of the borrower and loan origination fees, net, when applicable. Cash basis interest and interest income recognized on accrual basis approximate each other. Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due at June 30, 2019 and December 31, 2018: June 30, 2019 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 1,130 $ 3,035 $ 3,006 $ 28,433 $ 35,604 $ 1,016,955 $ 1,052,559 Commercial real estate - 1,148 - 12,686 13,834 3,097,440 3,111,274 Commercial construction - 3,530 - 3,579 7,109 595,104 602,213 Residential real estate 681 - - 5,219 5,900 320,761 326,661 Consumer 3 20 - - 23 2,018 2,041 Total $ 1,814 $ 7,733 $ 3,006 $ 49,917 $ 62,470 $ 5,032,278 $ 5,094,748 The amount reported 90 days or greater past due and still accruing as of June 30, 2019 are comprised of PCI loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition. December 31, 2018 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans Commercial $ 1,673 $ - $ 1,647 $ 29,340 $ 32,660 $ 956,098 $ 988,758 Commercial real estate 6,162 1,840 - 15,135 23,137 2,755,030 2,778,167 Commercial construction 2,496 564 - 2,934 5,994 459,395 465,389 Residential real estate 3,455 119 - 4,446 8,020 301,971 309,991 Consumer - - - - - 2,594 2,594 Total $ 13,786 $ 2,523 $ 1,647 $ 51,855 $ 69,811 $ 4,475,088 $ 4,544,899 The amount reported 90 days or greater past due and still accruing as of December 31, 2018 are comprised of PCI loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition. The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for loan losses that are allocated to each loan portfolio segment: June 30, 2019 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 29 $ 162 $ 22 $ - $ - $ 213 Collectively evaluated for impairment 8,521 20,456 5,380 1,186 2 740 36,285 Acquired portfolio 200 1,000 - - - - 1,200 Acquired with deteriorated credit quality - - - - - - - Total $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Gross loans Individually evaluated for impairment $ 32,559 $ 17,555 $ 8,941 $ 3,428 $ - $ 62,483 Collectively evaluated for impairment 901,858 2,694,372 552,712 277,490 1,716 4,428,148 Acquired portfolio 112,743 398,042 40,560 45,743 325 597,413 Acquired with deteriorated credit quality 5,399 1,305 - - - 6,704 Total $ 1,052,559 $ 3,111,274 $ 602,213 $ 326,661 $ 2,041 $ 5,094,748 Decem ber 31, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ - $ 7 $ - $ 29 $ - $ - $ 36 Collectively evaluated for impairment 9,675 17,840 4,519 1,237 2 445 33,718 Acquired portfolio 200 1,000 - - - - 1,200 Acquired with deteriorated credit quality - - - - - - - Total $ 9,875 $ 18,847 $ 4,519 $ 1,266 $ 2 $ 445 $ 34,954 Gross loans Individually evaluated for impairment $ 29,896 $ 18,327 $ 9,240 $ 2,469 $ - $ 59,932 Collectively evaluated for impairment 949,129 2,500,132 456,149 263,449 2,484 4,171,343 Acquired portfolio 7,224 259,708 - 44,073 110 311,115 Acquired with deteriorated credit quality 2,509 - - - - 2,509 Total $ 988,758 $ 2,778,167 $ 465,389 $ 309,991 $ 2,594 $ 4,544,899 The Company’s allowance for loan losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit. There have been no material changes to the allowance for loan losses (“ALLL”) methodology as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. A summary of the activity in the ALLL is as follows: Three Months Ended June 30, 2019 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at March 31, 2019 $ 8,660 $ 21,561 $ 4,982 $ 1,166 $ 1 $ 488 $ 36,858 Charge-offs - (406 ) - - - - (406 ) Recoveries 115 30 - 1 - - 146 Provision (54 ) 300 560 41 1 252 1,100 Balance at June 30, 2019 $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Three Months Ended June 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at March 31, 2018 $ 8,550 $ 17,435 $ 4,772 $ 1,109 $ 2 $ 661 $ 32,529 Charge-offs (46 ) - - - (1 ) - (47 ) Recoveries 12 - - - - - 12 Provision for loan losses 444 786 40 58 2 (230 ) 1,100 Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 Six Months Ended June 30, 2019 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2018 $ 9,875 $ 18,847 $ 4,519 $ 1,266 $ 2 $ 445 $ 34,954 Charge-offs - (3,082 ) - - - - (3,082 ) Recoveries 186 30 - 3 7 - 226 Provision (1,340 ) 5,690 1,023 (61 ) (7 ) 295 5,600 Balance at June 30, 2019 $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Six Months Ended June 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2017 $ 8,233 $ 17,112 $ 4,747 $ 1,050 $ 1 $ 605 $ 31,748 Charge-offs (17,066 ) - - (18 ) (1 ) - (17,085 ) Recoveries 31 - - - - - 31 Provision 17,762 1,109 65 135 3 (174 ) 18,900 Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 Troubled Debt Restructurings Loans are considered to have been modified in a troubled debt restructuring (“TDRs”) when due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a nonaccrual loan that has been modified in a troubled debt restructuring remains on nonaccrual status for a period of six months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual status. At June 30, 2019, there were no commitments to lend additional funds to borrowers whose loans were on nonaccrual status or were contractually past due 90 days or greater and still accruing interest, or whose terms have been modified in troubled debt restructurings. As of June 30, 2019, TDRs totaled $39.1 million, of which $22.8 million were on nonaccrual status and $16.3 million were performing under their restructured terms. As of December 31, 2018, TDRs totaled $34.5 million, of which $23.3 million were on nonaccrual status and $11.2 million were performing under their restructured terms. The Company has allocated $162 thousand and $147 thousand of specific allowance for the six months ended June 30, 2019 and June 30, 2018, respectively. There were no charge-offs in connection with a loan modification at the time of modification during the three and six months ended June 30, 2019. There were no TDRs for which there was a payment default within twelve months following the modification during the three and six months ended June 30, 2019. The following table presents loans by class modified as TDRs that occurred during the six months ended June 30, 2019: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment Troubled debt restructurings: (dollars in thousands) Commercial 4 $ 4,186 $ 4,186 Commercial real estate 2 2,635 2,635 Commercial construction 2 2,101 2,101 Total 8 $ 8,922 $ 8,922 These eight loan modifications included interest rate reductions and maturity extensions. The following table presents loans by class modified as TDRs that occurred during the six months ended June 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment Troubled debt restructurings: (dollars in thousands) Commercial 30 $ 15,613 $ 15,613 Commercial real estate 1 60 60 Commercial construction 2 1,839 1,839 Residential 2 454 454 Total 35 $ 17,966 $ 17,966 Included in the commercial loan segment of the troubled debt restructurings are 27 taxi medallion loans totaling $11.2 million. These loan modifications included interest rate reductions and maturity extensions. All 27 taxi medallion loans included above were on nonaccrual status prior to modification, and remain on nonaccrual status post-modification. |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Value of Financial Instruments | Note 7. Fair Value Measurements and Fair Value of Financial Instruments Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (for example, supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018: Securities Available-for-Sale and Equity Securities : Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of instruments which would generally be classified within Level 2 of the valuation hierarchy include municipal bonds and certain agency collateralized mortgage obligations. In certain cases where there is limited activity in the market for a particular instrument, assumptions must be made to determine the fair value of the instruments and these are classified as Level 3. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class. Derivatives : The fair value of derivatives is based on valuation models using observable market data as of the measurement date (level 2). Our derivatives are traded in an over-the-counter market where quoted market prices are not always available. Therefore, the fair values of derivatives are determined using quantitative models that utilize multiple market inputs. The inputs will vary based on the type of derivative, but could include interest rates, prices and indices to generate continuous yield or pricing curves, prepayment rate, and volatility factors to value the position. The majority of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions and third-party pricing services. For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 Fair Value Measu rements at Repor ting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale : Federal agency obligations $ 25,461 $ - $ 25,461 $ - Residential mortgage pass-through securities 229,542 - 229,542 - Commercial mortgage pass-through securities 5,826 - 5,826 - Obligations of U.S. states and political subdivision 144,119 - 134,873 9,246 Corporate bonds and notes 28,117 - 28,117 - Asset-backed securities 7,746 - 7,746 - Certificates of deposit 150 - 150 - Other securities 950 950 - - Total available-for-sale $ 441,911 $ 950 $ 431,715 $ 9,246 Equity securities 11,152 11,152 - - Total assets $ 453,063 $ 12,102 $ 431,715 $ 9,246 Liabilities Derivatives 128 - 128 - Total liabilities $ 128 $ - $ 128 $ - December 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale : Federal agency obligations $ 44,955 $ - $ 44,955 $ - Residential mortgage pass-through securities 185,204 - 185,204 - Commercial mortgage pass-through securities 3,874 - 3,874 - Obligations of U.S. states and political subdivision 139,185 - 129,808 9,377 Corporate bonds and notes 25,813 - 25,813 - Asset-backed securities 9,691 - 9,691 - Certificates of deposit 322 - 322 - Other securities 2,990 2,990 - - Total available-for-sale $ 412,034 $ 2,990 $ 399,667 $ 9,377 Equity securities 11,460 11,460 - - Derivatives 1,159 - 1,159 - Total assets $ 424,653 $ 14,450 $ 400,826 $ 9,377 There were no transfers between Level 1 and Level 2 during the six months ended June 30, 2019 and during the year ended December 31, 2018. Assets Measured at Fair Value on a Nonrecurring Basis The Company may be required periodically to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or impairment write-downs of individual assets. The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018: Loans Held-for-Sale : Residential mortgage loans, originated and intended for sale in the secondary market, are carried at the lower of aggregate cost or estimated fair value as determined by outstanding commitments from investors. For these loans originated and intended for sale, gains and losses on loan sales (sale proceeds minus carrying value) are recorded in other income and direct loan origination costs and fees are deferred at origination of the loan and are recognized in other income upon sale of the loan. Management obtains quotes or bids on all or parts of these loans directly from the purchasing financial institutions (Level 2). Impaired Loans : The Company may record adjustments to the carrying value of loans based on fair value measurements, generally as partial charge-offs of the uncollectible portions of these loans. These adjustments also include certain impairment amounts for collateral dependent loans calculated in accordance with GAAP. Impairment amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated impairment amount applicable to that loan does not necessarily represent the fair value of the loan. Real estate collateral is valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable by market participants. However, due to the substantial judgment applied and limited volume of activity as compared to other assets, fair value is based on Level 3 inputs. Estimates of fair value used for collateral supporting commercial loans generally are based on assumptions not observable in the market place and are also based on Level 3 inputs. For assets measured at fair value on a nonrecurring basis, the fair value measurements at June 30, 2019 and December 31, 2018 are as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Assets measured at fair value on a nonrecurring basis: June 30, 2019 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 364 $ - $ - $ 364 Commercial construction 2,732 - - 2,732 Residential real estate 231 - - 231 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets measured at fair value on a nonrecurring basis: December 31, Assets Inputs Inputs Impaired loans: (dollars in thousands) Commercial real estate $ 1,481 $ - $ - $ 1,481 Residential real estate 231 - - 231 Impaired loans – Collateral dependent impaired loans at June 30, 2019 that required a valuation allowance were $3.5 million with a related valuation allowance of $0.2 million compared to $1.7 million with a related valuation allowance of $-0- at December 31, 2018. Assets Measured With Significant Unobservable Level 3 Inputs Recurring basis The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2019 and for the year ended December 31, 2018: Municipal Securities (dollars in thousands) Beginning balance, January 1, 2019 $ 9,377 Principal paydowns (131 ) Ending balance, June 30, 2019 $ 9,246 Municipal Securities (dollars in thousands) Beginning balance, January 1, 2018 $ 9,632 Principal paydowns (255 ) Ending balance, December 31, 2018 $ 9,377 The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. June 30, 2019 Valuation Unobservable Fair Value Techniques Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,246 Discounted cash flows Discount rate 2.9% December 31, 2018 Fair Value Valuation Unobservable Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,377 Discounted cash flows Discount rate 2.9% Nonrecurring basis : The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. Valuation Unobservable June 30, 2019 Fair Value Techniques Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 364 Sales comparison approach Adjustment for differences between the comparable sales 0% - 20% [10%] Commercial construction $ 2,732 Sales comparison approach Adjustment for differences between the comparable sales 0% - 20% [10%] Residential real estate $ 231 Sales comparison approach Adjustment for differences between the comparable sales 0% - 7% [2%] December 31, 2018 Fair Value Valuation Unobservable Range Impaired loans: (dollars in thousands) Commercial real estate $ 1,481 Sales comparison approach Adjustment for differences between the comparable sales 6% - 9% [8%] Residential real estate $ 231 Sales comparison approach Adjustment for differences between the comparable sales 0% - 10% [5%] As of June 30, 2019 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement , in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2019 and December 31, 2018: Fair Value Measurements Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2019 Financial assets: Cash and due from banks $ 185,650 $ 185,650 $ 185,650 $ - $ - Securities available-for-sale 441,911 441,911 950 431,715 9,246 Investment in restricted stocks 31,767 n/a n/a n/a n/a Equity securities 11,152 11,152 11,152 - - Net loans 5,052,794 5,041,283 - - 5,041,283 Accrued interest receivable 21,272 21,272 - 2,447 18,825 Financial liabilities: Noninterest-bearing deposits 813,635 813,635 813,635 - - Interest-bearing deposits 3,827,508 3,839,549 2,203,560 1,635,989 - Borrowings 597,317 598,821 - 598,821 - Subordinated debentures 128,720 137,269 - 137,269 - Derivatives 128 128 - 128 - Accrued interest payable 5,561 5,561 - 5,561 - December 31, 2018 Financial assets: Cash and due from banks $ 172,366 $ 172,366 $ 172,366 $ - $ - Securities available-for-sale 412,034 412,034 2,990 399,667 9,377 Investment in restricted stocks 31,136 n/a n/a n/a n/a Equity securities 11,460 11,460 11,460 - - Net loans 4,506,138 4,402,878 - - 4,402,878 Derivatives 1,159 1,159 - 1,159 - Accrued interest receivable 18,214 18,214 - 2,064 16,150 Financial liabilities: Noninterest-bearing deposits 768,584 768,584 768,584 - - Interest-bearing deposits 3,323,508 3,320,640 1,957,503 1,363,137 - Borrowings 600,001 598,598 - 598,598 - Subordinated debentures 128,556 132,426 - 132,426 - Accrued interest payable 6,764 6,764 - 6,764 - The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to originate loans is immaterial and not included in the tables above. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. Fair value estimates are based on existing balance sheet financial instruments, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, there are certain significant assets and liabilities that are not considered financial assets or liabilities, such as deferred taxes, premises and equipment, and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. Management believes that reasonable comparability between financial institutions may not be likely, due to the wide range of permitted valuation techniques and numerous estimates which must be made, given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income | Note 8. Comprehensive Income Total comprehensive income includes all changes in equity during a period from transactions and other events and circumstances from nonowner sources. The Company’s other comprehensive income (loss) is comprised of unrealized holding gains and losses on securities available-for-sale, unrealized gains (losses) on cash flow hedges, obligations for defined benefit pension plan and an adjustment to reflect the curtailment of the Company’s defined benefit pension plan, net of taxes. The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented: Details about Accumulated Other Amounts Reclassified from Accumulated Affected Line item in the Comprehensive Loss Components Other Comprehensive Income Statement Where Net Income is Presented Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (dollars in thousands) Sale of investment securities available for sale $ (9 ) $ - $ (1 ) $ - Net losses on sale of securities available-for-sale 2 - - - Income tax benefit (7 ) - (1 ) - Amortization of pension plan net actuarial losses (90 ) (92 ) (179 ) (183 ) Other components of net periodic pension expense. 25 26 50 51 Income tax benefit (65 ) (66 ) (129 ) (132 ) Total reclassification $ (72 ) $ (66 ) $ (130 ) $ (132 ) Accumulated other comprehensive loss at June 30, 2019 and December 31, 2018 consisted of the following: June 30, December 31, 2019 2018 (dollars in thousands) Investment securities available-for-sale, net of tax $ 1,268 $ (5,841 ) Cash flow hedge, net of tax (89 ) 837 Defined benefit pension and post-retirement plans, net of tax (4,060 ) (3,785 ) Total $ (2,881 ) $ ) |
Premises and Equipment
Premises and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Premises and Equipment | Note 9. Premises and Equipment The Company leases certain premises and equipment under operating leases. At June 30, 2019, the Company had lease liabilities totaling $17.8 million and right-of-use assets totaling $16.4 million. As of June 30, 2019, the weighted average remaining lease term for operating leases was 7.4 years and the weighted average discount rate used in the measurement of operating lease liabilities was 3.0%. Total lease costs for the three and six months ended June 30, 2019 was $0.8 million and $1.6 million, respectively. Rent expense for the three and six months ended June 30, 2018 prior to adoption of ASU 2016-02, was $0.5 million and $1.0 million, respectively. There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the six months ended June 30, 2019. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: June 30, 2019 (dollars in thousands) Lease payments due: Less than 1 year $ 2,704 2,497 2,418 2,372 2,093 7,965 20,049 (2,262 ) $ 17,787 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 10. Stock Based Compensation The Company’s stockholders approved the 2017 Equity Compensation Plan (“the Plan”) on May 23, 2017. The Plan eliminates all remaining issuable shares under previous plans and is the only outstanding plan as of June 30, 2019. The maximum number of shares of common stock or equivalents which may be issued under the Plan, is 750,000. Grants under the Plan can be in the form of stock options (qualified or non-qualified), restricted shares, restricted share units or performance units. Shares available for grant and issuance under the Plan as of June 30, 2019 are approximately 412,572. The Company intends to issue all shares under the Plan in the form of newly issued shares. Restricted stock, options and restricted stock units typically have a three-year vesting period starting one year after the date of grant with one-third vesting each year. The options generally expire ten years from the date of grant. Restricted stock granted to new employees and board members may be granted with shorter vesting periods. Grants of performance units typically have a cliff vesting after three years or upon a change of control. All issuances are subject to forfeiture if the recipient leaves or is terminated prior to the awards vesting. Restricted shares have the same dividend and voting rights as common stock, while options, performance units and restricted stock units do not. All awards are issued at the fair value of the underlying shares at the grant date. The Company expenses the cost of the awards, which is determined to be the fair market value of the awards at the date of grant, ratably over the vesting period. Forfeiture rates are not estimated but are handled on a case-by-case basis. Stock-based compensation expense was $0.7 million and $1.5 million for the three and six months ended June 30, 2019, respectively, and $0.3 million and $0.7 million for the three and six months ended June 30, 2018, respectively. Activity under the Company’s options as of and for the six months ended June 30, 2019 was as follows: Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2018 108,463 $ 8.35 Granted - - Exercised (28,937 ) 8.96 Forfeited/cancelled/expired - - Outstanding at June 30, 2019 79,526 8.13 2.6 $ 1,155,895 Exercisable at June 30, 2019 79,526 $ 8.13 2.6 $ 1,155,895 The aggregate intrinsic value of outstanding and exercisable options above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on June 30, 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 options on June 30, 2019. This amount changes based on the fair market value of the Company’s stock. Activity under the Company’s restricted shares for the six months ended June 30, 2019 was as follows: Weighted- Average Nonvested Grant Date Shares Fair Value Nonvested at December 31, 2018 68,428 $ 23.04 Granted 171,488 20.70 Vested (52,629 ) 21.98 Forfeited/cancelled/expired - - Nonvested June 30, 2019 187,287 $ 21.20 As of June 30, 2019, there was approximately $997,285 of total unrecognized compensation cost related to nonvested restricted shares granted. The cost is expected to be recognized over a weighted average period of 2.3 years. A total of 129,005 restricted shares were granted during the three months ended June 30, 2019. Note 10. Stock Based Compensation A summary of the status of unearned performance unit awards and the change during the period is presented in the table below: Weighted Average Grant Units Units Date Fair (expected) (maximum) Value Unearned at December 31, 2018 86,009 $ 22.06 Awarded 35,636 20.79 Change in estimate 23,375 30.95 Vested (52,508 ) 21.26 Unearned at June 30, 2019 92,512 120,212 $ 24.27 At June 30, 2019, the specific number of shares related to performance units that were expected to vest was 92,512, determined by actual performance in consideration of the established range of the performance targets, which is consistent with the level of expense currently being recognized over the vesting period. Should this expectation change, additional compensation expense could be recorded in future periods or previously recognized expense could be reversed. At June 30, 2019 the maximum amount of performance units that ultimately could vest if performance targets were exceeded is 120,212. A total of 25,991 shares were netted from the vested shares to satisfy tax obligations. The net shares issued from vesting of performance units during the six months ended June 30, 2019 were 26,517 shares. At June 30, 2019, compensation cost of approximately $1.0 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.8 years. A total of 35,636 performance units were awarded during the six months ended June 30, 2019. A summary of the status of unearned restricted stock units and the change in restricted stock units during the period is presented in the table below: Weighted Average Grant Units Date Fair (expected) Value Unearned at December 31, 2018 29,423 $ 31.35 Awarded 53,454 20.79 Vested (9,808 ) 21.28 Unearned at June 30, 2019 $ 24.98 At June 30, 2019, the specific number of shares related to restricted stock units that were expected to vest was approximately 73,069. Any forfeitures would result in previously recognized expense being reversed. A portion of the shares that vest will be netted out to satisfy the tax obligations of the recipient. During the six months ended June 30, 2019, a total of 4,904 shares were netted out to satisfy tax obligations, resulting in net issuance of 4,904 shares. At June 30, 2019, compensation cost of approximately $1.5 million related to non-vested restricted stock units, not yet recognized, is expected to be recognized over a weighted-average period of 2.4 years. A total of 53,454 restricted stock units were awarded during the six months ended June 30, 2019. |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | Note 11. Components of Net Periodic Pension Cost The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until June 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated. Three Months Three Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 113 107 Expected return on plan assets (174 ) (192 ) Net amortization 90 92 Total periodic pension cost $ 29 $ 7 Six Months Six Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 226 214 Expected return on plan assets (348 ) (383 ) Net amortization 179 183 Total periodic pension cost $ 57 $ 14 Contributions The Company did not make a contribution to the Pension Trust during the six months ended June 30, 2019. The Company does not plan on contributing amounts to the Pension Trust for the remainder of 2019. The trust is established to provide retirement and other benefits for eligible employees and their beneficiaries. No part of the trust assets may be applied to any purpose other than providing benefits under the plan and for defraying expenses of administering the plan and the trust. |
FHLB Borrowings
FHLB Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] | |
FHLB Borrowings | Note 12. FHLB Borrowings The Company’s FHLB borrowings and weighted average interest rates are summarized below: June 30, 2019 December 31, 2018 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 597,317 2.51 % $ 600,001 2.59 % By remaining period to maturity: Less than 1 year $ 474,105 2.54 % $ 405,000 2.57 % 1 year through less than 2 years 61,000 2.25 % 110,000 2.75 % 2 years through less than 3 years 27,353 2.15 % 60,000 2.27 % 3 years through less than 4 years 32,428 2.82 % - - 4 years through 5 years 2,852 2.43 % 25,000 2.92 % Total FHLB borrowings 597,738 2.51 % 600,000 2.59 % Fair value (discount) premium (421 ) 1 FHLB borrowings, net $ 597,317 $ 600,001 The FHLB borrowings are secured by pledges of certain collateral including, but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgages and commercial real estate loans. Advances are payable at stated maturity, with a prepayment penalty for fixed rate advances. All FHLB advances are fixed rates. The advances at June 30, 2019 were primarily collateralized by approximately $1.9 billion of commercial mortgage loans, net of required over collateralization amounts, under a blanket lien arrangement. At June 30, 2019 the Company had remaining borrowing capacity of approximately $1.0 billion at FHLB. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 13. Revenue Recognition Effective January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities, and derivatives that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, and the sale of OREO. The Company, using a modified retrospective transition approach, determined that there will be no cumulative effect adjustment to retained earnings as a result of adopting the new standard, nor will the standard have a material impact on our consolidated financial statements including the timing or amounts of revenue recognized. All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three months and six months ended June 30, 2019 and 2018. Items outside of ASC 606 are noted as such. Three Months Three Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 319 $ 166 Other 192 141 Interchange income 203 170 Net gains on sales of loans (1) 46 12 Net gains (losses) on equity securities (1) 158 (47 ) Net losses on sale of securities available-for-sale (1) (9 ) - Wire transfer fees (1) 108 77 Loan servicing fees (1) 65 25 Bank owned life insurance (1) 833 775 Other 27 22 Total noninterest income $ 1,942 $ 1,341 Six Months Six Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 593 $ 368 Other 372 296 Interchange income 359 313 Net gains on sales of loans (1) 65 29 Net gains (losses) on equity securities (1) 261 (168 ) Net losses on sale of securities available-for-sale (1) (1 ) - Wire transfer fees (1) 225 149 Loan servicing fees (1) 97 48 Bank owned life insurance (1) 1,655 1,549 Other 54 43 Total noninterest income $ 3,680 $ 2,627 (1) Not within scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts : The Company earns fees from 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 at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company 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. Interchange Income : The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided by the cardholder. Gains/Losses on Sales of OREO : The Company 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 Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction prices 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 Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. |
Subordinated Debentures
Subordinated Debentures | 6 Months Ended |
Jun. 30, 2019 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | Note 14. Subordinated Debentures During 2003, the Company formed a statutory business trust, which exists for the exclusive purpose of (i) issuing Trust Securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the Trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of the Company; and (iii) engaging in only those activities necessary or incidental thereto. On December 19, 2003, Center Bancorp Statutory Trust II, a statutory business trust and wholly-owned subsidiary of the Parent Corporation issued $5.0 million of MMCapS capital securities to investors due on January 23, 2034. The capital securities presently qualify as Tier I capital. The trust loaned the proceeds of this offering to the Company and received in exchange $5.2 million of the Parent Corporation’s subordinated debentures. The subordinated debentures are redeemable in whole or in part prior to maturity. The floating interest rate on the subordinate debentures is three month LIBOR plus 2.85% and reprices quarterly. The rate at June 30, 2019 was 5.43%. These subordinated debentures and the related income effects are not eliminated in the consolidated financial statements as the statutory business trust is not consolidated in accordance with FASB ASC 810-10. Distributions on the subordinated debentures owned by the subsidiary trust have been classified as interest expense in the Consolidated Statements of Income. The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at June 30, 2019 and December 31, 2018. Securities Redeemable by Issuance Date Issued Liquidation Value Coupon Rate Maturity Issuer Beginning 12/19/2003 $ 5,000,000 $1,000 per Capital Security Floating 3-month LIBOR + 285 Basis Points 01/23/2034 01/23/2009 During June 2015, the Parent Corporation issued $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes are non-callable for five years, have a stated maturity of July 1, 2025, and bear interest at a fixed rate of 5.75% per year, from and including June 30, 2015 to, but excluding July 1, 2020. From and including July 1, 2020 to the maturity date or early redemption date, the interest rate will reset quarterly to a level equal to the then current three month LIBOR rate plus 393 basis points. As of June 30, 2019, unamortized costs related to this debt issuance were approximately $185,000. On January 11, 2018, the Parent Corporation issued $75 million in aggregate principal amount of fixed-to-floating rate subordinated notes (the “Notes”). The Notes bear interest at 5.20% annually from, and including, the date of initial issuance to, but excluding, February 1, 2023, payable semi-annually in arrears. From and including February 1, 2023 through maturity or earlier redemption, the interest rate shall reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 284 basis points (2.84%) payable quarterly in arrears. If three-month LIBOR is not available for any reason, then the rate for that interest period will be determined by such alternate method as provided in the Supplemental Indenture. Interest on the Notes will be paid on February 1, and August 1, commencing August 1, 2018 to but not including February 1, 2023, and from and including February 1, 2023, on February 1, May 1, August 1, and November 1, of each year to but excluding the stated maturity date, unless in any case previously redeemed. As of June 30, 2019, unamortized costs related to this debt issuance were approximately $1,254,000. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Note 15. Offsetting Assets and Liabilities Certain financial instrument-related assets and liabilities may be eligible for offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements. However, the Company does not elect to offset such arrangements on the consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 5 within this section. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions. The following table presents information about financial instruments that are eligible for offset as of June 30, 2019 and December 31, 2018: Gross Amounts Not Offset Net Amounts Gross Amounts of Assets Offset in the Presented in the Cash or Statement of Statement of Financial Financial Gross Amounts Financial Financial Instruments Instrument Net Recognized Condition Condition Recognized Collateral Amount (dollars in thousands) June 30, 2019 Liabilities: Interest rate swaps $ 128 $ - $ 128 $ - $ 128 $ - December 31, 2018 Assets: Interest rate swaps $ 1,159 $ - $ 1,159 $ - $ - $ 1,159 As of December 31, 2018, there was no financial collateral pledged to our interest rate swaps. As these swap positions were not within the contractually agreed upon collateral requirement there was no collateral pledged to, or from, the respective counterparties. |
Authoritative Accounting Guid_2
Authoritative Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Newly Issued, But Not Yet Effective Accounting Standards | Newly Issued, But Not Yet Effective Accounting Standards ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Assets Measured at Amortized Cost.” ( modified by ASU 2018-19, ASU 2019-04 and ASU 2019-05). ASU 2016- 13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates and affects loans, debt securities, trade receivables, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has formed a CECL committee which has assessed our data and system needs. The Company has engaged third-party vendors to assist in analyzing our data and developing a CECL model. The Company, in conjunction with these vendors, has researched and analyzed modeling standards, loan segmentation, as well as potential external inputs to supplement our loss history. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the ASU is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the ASU on our consolidated financial statements. ASU No. 2017-08, “ Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities .” ASU No. 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 will be effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. We are currently evaluating this ASU to determine the impact on our consolidated financial statements. ASU 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ” These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. ASU 2018-15 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. ” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement .” The amendments in this update modify disclosure requirements on fair value measurements by removing, modifying and adding certain disclosure requirements. The amendments primarily pertain to Level 3 fair value measurements and depending on the amendment are applied either prospectively or retrospectively. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. We believe the adoption of this standard will not have a significant impact on our consolidated financial statements. ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” ASU 2017-04 aims to simplify the subsequent measurement of goodwill. Under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets and still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2019. Although management continues to evaluate the potential impact of ASU 2017-04 on our consolidated financial statements, at this time, we believe the adoption of this standard will not have a significant impact on our consolidated financial statements. |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business combinations: | |
Schedule of Fair Value of Identifiable Assets Acquired and Liabilities [Table Text Block] | In connection with the acquisition, the consideration paid and the fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition are summarized in the following table: Estimated Fair Value at January 2, 2019 (in thousands) Consideration paid: Common stock issued in acquisition $ 56,025 Assets acquired: Cash and cash equivalents 13,741 Securities available-for-sale 121,672 Loans, net 362,914 Premises and equipment, net 1,624 Accrued interest receivable 2,434 Core deposit intangibles 5,131 Other assets 26,650 Total assets acquired 534,166 Liabilities assumed: Deposits 416,110 Borrowings 64,186 Other liabilities 8,179 Total liabilities assumed 488,475 Net assets acquired 45,691 Goodwill recorded in acquisition $ 10,334 |
Schedule of GHB Acquisition [Table Text Block] | Estimated Fair Value at January 2, 2019 (in thousands) Contractually required principal and interest acquisition $ 19,874 Contractual cash flows not expected to be collected (non-accretable discount) (12,167 ) Expected cash flows at acquisition 7,707 Interest component of expected cash flows (accretable discount) (1,286 ) Fair value of acquired loans $ 6,421 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings per common share: | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Earnings per common share have been computed based on the following: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except for per share data) 2019 2018 2019 2018 Net income $ 19,281 $ 17,527 $ 30,916 $ 21,778 Earnings allocated to participating securities (58 ) (37 ) (140 ) (54 ) Income attributable to common stock $ 19,223 $ 17,490 $ 30,776 $ 21,724 Weighted average common shares outstanding, including participating securities 35,365 32,134 35,322 32,106 Weighted average participating securities (49 ) (20 ) (26 ) (38 ) Weighted average common shares outstanding 35,316 32,114 35,296 32,068 Incremental shares from assumed conversions of options, performance units and non-participating restricted shares 79 207 74 208 Weighted average common and equivalent shares outstanding 35,395 32,321 35,370 32,276 Earnings per common share: Basic $ 0.54 $ 0.54 $ 0.87 $ 0.68 Diluted 0.54 0.54 0.87 0.67 |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The following table summarizes the amortized cost and fair value of securities available-for-sale at June 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2019 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 24,877 $ 599 $ (15 ) $ 25,461 Residential mortgage pass-through securities 230,064 881 (1,403 ) 229,542 Commercial mortgage pass-through securities 5,748 78 - 5,826 Obligations of U.S. states and political subdivisions 142,521 2,417 (819 ) 144,119 Corporate bonds and notes 28,128 267 (278 ) 28,117 Asset-backed securities 7,802 2 (58 ) 7,746 Certificates of deposit 148 2 - 150 Other securities 950 - - 950 Total securities available-for-sale $ 440,238 $ 4,246 $ (2,573 ) $ 441,911 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value December 31, 2018 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 45,509 $ 51 $ (605 ) $ 44,955 Residential mortgage pass-through securities 189,721 85 (4,602 ) 185,204 Commercial mortgage pass-through securities 3,919 - (45 ) 3,874 Obligations of U.S. states and political subdivisions 141,496 1,091 (3,402 ) 139,185 Corporate bonds and notes 26,308 45 (540 ) 25,813 Asset-backed securities 9,685 22 (16 ) 9,691 Certificates of deposit 319 3 - 322 Other securities 2,990 - - 2,990 Total securities available-for-sale $ 419,947 $ 1,297 $ (9,210 ) $ 412,034 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The following table presents information for investments in securities available-for-sale at June 30, 2019, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately. June 30, 2019 Amortized Fair Cost Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 4,166 $ 4,192 Due after one year through five years 29,411 29,449 Due after five years through ten years 22,538 23,126 Due after ten years 147,361 148,826 Residential mortgage pass-through securities 230,064 229,542 Commercial mortgage pass-through securities 5,748 5,826 Other securities 950 950 Total securities available-for-sale $ 440,238 $ 441,911 |
Schedule of Realized Gain (Loss) [Table Text Block] | Gross gains and losses from the sales of securities for periods presented were as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2019 2018 2019 2018 Proceeds $ 47,664 $ - $ 141,739 $ - Gross gains on sales of securities 263 - 400 - Gross losses on sales of securities (272 ) - (401 ) - Net losses on sales of securities (9 ) - (1 ) - Less: tax provision on net losses (2 ) - - - Net losses on sales of securities, after tax $ (7 ) $ - $ (1 ) $ - |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018: June 30, 2019 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 4,260 $ (15 ) $ - $ - $ 4,260 $ (15 ) Residential mortgage pass-through securities 147,392 (1,403 ) 42,750 (73 ) 104,642 (1,330 ) Obligations of U.S. states and political subdivisions 41,825 (819 ) - - 41,825 (819 ) Corporate bonds and notes 8,696 (278 ) 2,000 - 6,696 (278 ) Asset-backed securities 6,397 (58 ) 4,406 (47 ) 1,991 (11 ) Total temporarily impaired securities $ 208,570 $ (2,573 ) $ 49,156 $ (120 ) $ 159,414 $ (2,453 ) December 31, 2018 Total Less than 12 Months 12 Months or Longer Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 35,472 $ (605 ) $ 810 $ (1 ) $ 34,662 $ (604 ) Residential mortgage pass-through securities 178,365 (4,602 ) 42,040 (393 ) 136,325 (4,209 ) Commercial mortgage pass-through securities 3,874 (45 ) - - 3,874 (45 ) Obligations of U.S. states and political subdivisions 64,367 (3,402 ) 7,765 (21 ) 56,602 (3,381 ) Corporate bonds and notes 15,534 (540 ) 7,767 (133 ) 7,767 (407 ) Asset-backed securities 3,957 (16 ) 2,219 (11 ) 1,738 (5 ) Total Temporarily Impaired Securities $ 301,569 $ (9,210 ) $ 60,601 $ (559 ) $ 240,968 $ (8,651 ) |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives [Table Text Block] | Summary information about the interest rate swaps designated as cash flow hedges as of June 30, 2019, December 31, 2018 and June 30, 2018 are presented in the following table. June 30, December 31, June 30, 2019 2018 2018 (dollars in thousands) Notional amount $ 125,000 $ 75,000 $ 100,000 Weighted average pay rates 1.81 % 1.70 % 1.68 % Weighted average receive rates 2.69 % 2.19 % 1.99 % Weighted average maturity 1.7 years 2.0 years 1.9 years Fair value $ (128 ) $ 1,159 $ 1,893 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the net gains/losses recorded in other comprehensive income and the Consolidated Statements of Income relating to the cash flow derivative instruments for the following periods: Six Months Ended June 30, 2019 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ (929 ) $ (358 ) $ - Six Months Ended June 30, 2018 Amount of gain Amount of (gain) Amount of gain (loss) recognized loss reclassified recognized in other in OCI (Effective from OCI to Noninterest income Portion) interest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 1,246 $ (152 ) $ - |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table reflects the cash flow hedges included in the consolidated statements of condition as of June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Notional Notional Amount Fair Value Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 125,000 $ (128 ) $ 75,000 $ 1,159 |
Loans and the Allowance for L_2
Loans and the Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans receivable - The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (dollars in thousands) Commercial $ 1,052,559 $ 988,758 Commercial real estate 3,111,274 2,778,167 Commercial construction 602,213 465,389 Residential real estate 326,661 309,991 Consumer 2,041 2,594 Gross loans 5,094,748 4,544,899 Net deferred loan fees (4,256 ) (3,807 ) Total loans receivable $ 5,090,492 $ 4,541,092 |
Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block] | Purchased Credit-Impaired Loans - The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment in those loans is as follows at June 30, 2019 and December 31, 2018. June 30, December 31, 2019 2018 (dollars in thousands) Commercial $ 5,399 $ 2,509 Commercial real estate 1,305 - $ 6,704 $ 2,509 |
Loans and Leases Receivable Purchased Loans [Table Text Block] | The following table presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for three and six months ended June 30, 2019 and June 30, 2018: Three Months Three Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Balance at April 1 $ 2,213 $ 1,322 Accretion of income (575 ) (63 ) Balance at June 30 $ 1,638 $ 1,259 Six Months Six Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Balance at January 1 $ 1,134 $ 1,387 New loans purchased 1,286 Accretion of income (782 ) (128 ) Balance at June 30 $ 1,638 $ 1,259 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans included in loans receivable by loan class as of June 30, 2019 and December 31, 2018: June 30, December 31, 2019 2018 (dollars in thousands) Commercial $ 28,433 $ 29,340 Commercial real estate 12,686 15,135 Commercial construction 3,579 2,934 Residential real estate 5,219 4,446 Total nonaccrual loans $ 49,917 $ 51,855 |
Financing Receivable Credit Quality Indicators [Table Text Block] | June 30, 2019 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 997,503 $ 19,269 $ 35,787 $ - $ 1,052,559 Commercial real estate 3,084,014 7,622 19,638 - 3,111,274 Commercial construction 589,165 4,106 8,942 - 602,213 Residential real estate 321,316 - 5,345 - 326,661 Consumer 2,034 - 7 - 2,041 Gross loans $ 4,994,032 $ 30,997 $ 69,719 $ - $ 5,094,748 December 31, 2018 Special Pass Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 951,610 $ 3,371 $ 33,777 $ - $ 988,758 Commercial real estate 2,742,989 12,574 22,604 - 2,778,167 Commercial construction 453,598 5,515 6,276 - 465,389 Residential real estate 305,414 - 4,577 - 309,991 Consumer 2,576 - 18 - 2,594 Gross loans $ 4,456,187 $ 21,460 $ 67,252 $ - $ 4,544,899 |
Impaired Financing Receivables [Table Text Block] | The following table provides an analysis of the impaired loans by segment as of June 30, 2019 and December 31, 2018: June 30, 2019 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 32,559 $ 79,328 Commercial real estate 17,162 17,317 Commercial construction 6,047 6,047 Residential real estate 3,175 3,519 Total (no related allowance) $ 58,943 $ 106,211 With an allowance recorded Commercial real estate $ 393 $ 393 $ 29 Commercial construction 2,894 2,895 162 Residential real estate 253 265 22 Total (with allowance) $ 3,540 $ 3,553 $ 213 Total Commercial $ 32,559 $ 79,328 $ - Commercial real estate 17,555 17,710 29 Commercial construction 8,941 8,942 162 Residential real estate 3,428 3,784 22 Total $ 62,483 $ 109,764 $ 213 December 31, 2018 Unpaid Recorded Principal Related Investment Balance Allowance No related allowance recorded (dollars in thousands) Commercial $ 29,896 $ 83,596 Commercial real estate 16,839 17,935 Commercial construction 9,240 9,240 Residential real estate 2,209 2,521 Total (no related allowance) $ 58,184 $ 113,292 With an allowance recorded Commercial real estate $ 1,488 $ 1,488 $ 7 Residential real estate 260 266 29 $ 1,748 $ 1,754 $ 36 Total Commercial $ 29,896 $ 83,596 $ - Commercial real estate 18,327 19,423 7 Commercial construction 9,240 9,240 - Residential real estate 2,469 2,787 29 Total $ 59,932 $ 115,046 $ 36 |
Schedule of Average Balance and Interest Income Recognized on Impaired Loans [Table Text Block] | The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by segment as of and for the three and six months ended June 30, 2019 and 2018: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (dollars in thousands) Impaired loans Commercial $ 33,663 $ 82 $ 38,770 $ 35 $ 33,066 $ 164 $ 42,056 $ 66 Commercial real estate 17,205 68 23,422 127 17,170 143 23,504 370 Commercial construction 6,048 25 9,225 176 6,049 80 9,845 295 Residential real estate 3,198 - 2,569 - 3,195 - 2,599 - Total $ 60,114 $ 175 $ 73,986 $ 338 $ 59,480 $ 387 $ 78,004 $ 731 Impaired loans (allowance): Commercial real estate $ 393 $ - $ 8,544 $ 11 $ 393 $ - $ 8,548 $ 23 Commercial construction 2,850 42 - - 2,818 85 - - Residential real estate 255 - - - 256 - - - Total $ 3,498 $ 42 $ 8,544 $ 11 $ 3,467 $ 85 $ 8,548 $ 23 Total impaired loans: Commercial $ 33,663 $ 82 $ 38,770 $ 35 $ 33,066 $ 164 $ 42,056 $ 66 Commercial real estate 17,598 68 31,966 138 17,563 143 32,052 393 Commercial construction 8,898 67 9,225 176 8,867 165 9,845 295 Residential mortgage 3,453 - 2,569 - 3,451 - 2,599 - Total $ 63,612 $ 217 $ 82,530 $ 349 $ 62,947 $ 472 $ 86,552 $ 754 |
Past Due Financing Receivables [Table Text Block] | Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due at June 30, 2019 and December 31, 2018: June 30, 2019 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 1,130 $ 3,035 $ 3,006 $ 28,433 $ 35,604 $ 1,016,955 $ 1,052,559 Commercial real estate - 1,148 - 12,686 13,834 3,097,440 3,111,274 Commercial construction - 3,530 - 3,579 7,109 595,104 602,213 Residential real estate 681 - - 5,219 5,900 320,761 326,661 Consumer 3 20 - - 23 2,018 2,041 Total $ 1,814 $ 7,733 $ 3,006 $ 49,917 $ 62,470 $ 5,032,278 $ 5,094,748 The amount reported 90 days or greater past due and still accruing as of June 30, 2019 are comprised of PCI loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition. December 31, 2018 90 Days or Greater Past Total Past 30-59 Days 60-89 Days Due and Still Due and Past Due Past Due Accruing Nonaccrual Nonaccrual Current Gross Loans Commercial $ 1,673 $ - $ 1,647 $ 29,340 $ 32,660 $ 956,098 $ 988,758 Commercial real estate 6,162 1,840 - 15,135 23,137 2,755,030 2,778,167 Commercial construction 2,496 564 - 2,934 5,994 459,395 465,389 Residential real estate 3,455 119 - 4,446 8,020 301,971 309,991 Consumer - - - - - 2,594 2,594 Total $ 13,786 $ 2,523 $ 1,647 $ 51,855 $ 69,811 $ 4,475,088 $ 4,544,899 |
Schedule of Recorded Investment in Financing Receivables [Table Text Block] | The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for loan losses that are allocated to each loan portfolio segment: June 30, 2019 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 29 $ 162 $ 22 $ - $ - $ 213 Collectively evaluated for impairment 8,521 20,456 5,380 1,186 2 740 36,285 Acquired portfolio 200 1,000 - - - - 1,200 Acquired with deteriorated credit quality - - - - - - - Total $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Gross loans Individually evaluated for impairment $ 32,559 $ 17,555 $ 8,941 $ 3,428 $ - $ 62,483 Collectively evaluated for impairment 901,858 2,694,372 552,712 277,490 1,716 4,428,148 Acquired portfolio 112,743 398,042 40,560 45,743 325 597,413 Acquired with deteriorated credit quality 5,399 1,305 - - - 6,704 Total $ 1,052,559 $ 3,111,274 $ 602,213 $ 326,661 $ 2,041 $ 5,094,748 Decem ber 31, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ - $ 7 $ - $ 29 $ - $ - $ 36 Collectively evaluated for impairment 9,675 17,840 4,519 1,237 2 445 33,718 Acquired portfolio 200 1,000 - - - - 1,200 Acquired with deteriorated credit quality - - - - - - - Total $ 9,875 $ 18,847 $ 4,519 $ 1,266 $ 2 $ 445 $ 34,954 Gross loans Individually evaluated for impairment $ 29,896 $ 18,327 $ 9,240 $ 2,469 $ - $ 59,932 Collectively evaluated for impairment 949,129 2,500,132 456,149 263,449 2,484 4,171,343 Acquired portfolio 7,224 259,708 - 44,073 110 311,115 Acquired with deteriorated credit quality 2,509 - - - - 2,509 Total $ 988,758 $ 2,778,167 $ 465,389 $ 309,991 $ 2,594 $ 4,544,899 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The Company’s allowance for loan losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit. There have been no material changes to the allowance for loan losses (“ALLL”) methodology as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. A summary of the activity in the ALLL is as follows: Three Months Ended June 30, 2019 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at March 31, 2019 $ 8,660 $ 21,561 $ 4,982 $ 1,166 $ 1 $ 488 $ 36,858 Charge-offs - (406 ) - - - - (406 ) Recoveries 115 30 - 1 - - 146 Provision (54 ) 300 560 41 1 252 1,100 Balance at June 30, 2019 $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Three Months Ended June 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at March 31, 2018 $ 8,550 $ 17,435 $ 4,772 $ 1,109 $ 2 $ 661 $ 32,529 Charge-offs (46 ) - - - (1 ) - (47 ) Recoveries 12 - - - - - 12 Provision for loan losses 444 786 40 58 2 (230 ) 1,100 Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 Six Months Ended June 30, 2019 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2018 $ 9,875 $ 18,847 $ 4,519 $ 1,266 $ 2 $ 445 $ 34,954 Charge-offs - (3,082 ) - - - - (3,082 ) Recoveries 186 30 - 3 7 - 226 Provision (1,340 ) 5,690 1,023 (61 ) (7 ) 295 5,600 Balance at June 30, 2019 $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Six Months Ended June 30, 2018 Commercial Commercial Residential Commercial real estate construction real estate Consumer Unallocated Total (dollars in thousands) Balance at December 31, 2017 $ 8,233 $ 17,112 $ 4,747 $ 1,050 $ 1 $ 605 $ 31,748 Charge-offs (17,066 ) - - (18 ) (1 ) - (17,085 ) Recoveries 31 - - - - - 31 Provision 17,762 1,109 65 135 3 (174 ) 18,900 Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 |
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block] | The following table presents loans by class modified as TDRs that occurred during the six months ended June 30, 2019: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment Troubled debt restructurings: (dollars in thousands) Commercial 4 $ 4,186 $ 4,186 Commercial real estate 2 2,635 2,635 Commercial construction 2 2,101 2,101 Total 8 $ 8,922 $ 8,922 These eight loan modifications included interest rate reductions and maturity extensions. The following table presents loans by class modified as TDRs that occurred during the six months ended June 30, 2018: Pre-Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Loans Investment Investment Troubled debt restructurings: (dollars in thousands) Commercial 30 $ 15,613 $ 15,613 Commercial real estate 1 60 60 Commercial construction 2 1,839 1,839 Residential 2 454 454 Total 35 $ 17,966 $ 17,966 |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2019 and December 31, 2018 are as follows: June 30, 2019 Fair Value Measu rements at Repor ting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale : Federal agency obligations $ 25,461 $ - $ 25,461 $ - Residential mortgage pass-through securities 229,542 - 229,542 - Commercial mortgage pass-through securities 5,826 - 5,826 - Obligations of U.S. states and political subdivision 144,119 - 134,873 9,246 Corporate bonds and notes 28,117 - 28,117 - Asset-backed securities 7,746 - 7,746 - Certificates of deposit 150 - 150 - Other securities 950 950 - - Total available-for-sale $ 441,911 $ 950 $ 431,715 $ 9,246 Equity securities 11,152 11,152 - - Total assets $ 453,063 $ 12,102 $ 431,715 $ 9,246 Liabilities Derivatives 128 - 128 - Total liabilities $ 128 $ - $ 128 $ - December 31, 2018 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities : Available-for-sale : Federal agency obligations $ 44,955 $ - $ 44,955 $ - Residential mortgage pass-through securities 185,204 - 185,204 - Commercial mortgage pass-through securities 3,874 - 3,874 - Obligations of U.S. states and political subdivision 139,185 - 129,808 9,377 Corporate bonds and notes 25,813 - 25,813 - Asset-backed securities 9,691 - 9,691 - Certificates of deposit 322 - 322 - Other securities 2,990 2,990 - - Total available-for-sale $ 412,034 $ 2,990 $ 399,667 $ 9,377 Equity securities 11,460 11,460 - - Derivatives 1,159 - 1,159 - Total assets $ 424,653 $ 14,450 $ 400,826 $ 9,377 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | For assets measured at fair value on a nonrecurring basis, the fair value measurements at June 30, 2019 and December 31, 2018 are as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Assets measured at fair value on a nonrecurring basis: June 30, 2019 (Level 1) (Level 2) (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 364 $ - $ - $ 364 Commercial construction 2,732 - - 2,732 Residential real estate 231 - - 231 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets measured at fair value on a nonrecurring basis: December 31, Assets Inputs Inputs Impaired loans: (dollars in thousands) Commercial real estate $ 1,481 $ - $ - $ 1,481 Residential real estate 231 - - 231 |
Fair Value, Recurring basis [Table Text Block] | The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2019 and for the year ended December 31, 2018: Municipal Securities (dollars in thousands) Beginning balance, January 1, 2019 $ 9,377 Principal paydowns (131 ) Ending balance, June 30, 2019 $ 9,246 Municipal Securities (dollars in thousands) Beginning balance, January 1, 2018 $ 9,632 Principal paydowns (255 ) Ending balance, December 31, 2018 $ 9,377 |
Significant unobservable inputs used in fair value measurements [Table Text Block] | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. June 30, 2019 Valuation Unobservable Fair Value Techniques Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,246 Discounted cash flows Discount rate 2.9% December 31, 2018 Fair Value Valuation Unobservable Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,377 Discounted cash flows Discount rate 2.9% |
Fair Value Measurements, Nonrecurring [Table Text Block] | Nonrecurring basis : The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a nonrecurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. Valuation Unobservable June 30, 2019 Fair Value Techniques Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 364 Sales comparison approach Adjustment for differences between the comparable sales 0% - 20% [10%] Commercial construction $ 2,732 Sales comparison approach Adjustment for differences between the comparable sales 0% - 20% [10%] Residential real estate $ 231 Sales comparison approach Adjustment for differences between the comparable sales 0% - 7% [2%] December 31, 2018 Fair Value Valuation Unobservable Range Impaired loans: (dollars in thousands) Commercial real estate $ 1,481 Sales comparison approach Adjustment for differences between the comparable sales 6% - 9% [8%] Residential real estate $ 231 Sales comparison approach Adjustment for differences between the comparable sales 0% - 10% [5%] |
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of June 30, 2019 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement , in which fair value represents exit price. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2019 and December 31, 2018: Fair Value Measurements Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs Amount Value (Level 1) (Level 2) (Level 3) (dollars in thousands) June 30, 2019 Financial assets: Cash and due from banks $ 185,650 $ 185,650 $ 185,650 $ - $ - Securities available-for-sale 441,911 441,911 950 431,715 9,246 Investment in restricted stocks 31,767 n/a n/a n/a n/a Equity securities 11,152 11,152 11,152 - - Net loans 5,052,794 5,041,283 - - 5,041,283 Accrued interest receivable 21,272 21,272 - 2,447 18,825 Financial liabilities: Noninterest-bearing deposits 813,635 813,635 813,635 - - Interest-bearing deposits 3,827,508 3,839,549 2,203,560 1,635,989 - Borrowings 597,317 598,821 - 598,821 - Subordinated debentures 128,720 137,269 - 137,269 - Derivatives 128 128 - 128 - Accrued interest payable 5,561 5,561 - 5,561 - December 31, 2018 Financial assets: Cash and due from banks $ 172,366 $ 172,366 $ 172,366 $ - $ - Securities available-for-sale 412,034 412,034 2,990 399,667 9,377 Investment in restricted stocks 31,136 n/a n/a n/a n/a Equity securities 11,460 11,460 11,460 - - Net loans 4,506,138 4,402,878 - - 4,402,878 Derivatives 1,159 1,159 - 1,159 - Accrued interest receivable 18,214 18,214 - 2,064 16,150 Financial liabilities: Noninterest-bearing deposits 768,584 768,584 768,584 - - Interest-bearing deposits 3,323,508 3,320,640 1,957,503 1,363,137 - Borrowings 600,001 598,598 - 598,598 - Subordinated debentures 128,556 132,426 - 132,426 - Accrued interest payable 6,764 6,764 - 6,764 - |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented: Details about Accumulated Other Amounts Reclassified from Accumulated Affected Line item in the Comprehensive Loss Components Other Comprehensive Income Statement Where Net Income is Presented Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (dollars in thousands) Sale of investment securities available for sale $ (9 ) $ - $ (1 ) $ - Net losses on sale of securities available-for-sale 2 - - - Income tax benefit (7 ) - (1 ) - Amortization of pension plan net actuarial losses (90 ) (92 ) (179 ) (183 ) Other components of net periodic pension expense. 25 26 50 51 Income tax benefit (65 ) (66 ) (129 ) (132 ) Total reclassification $ (72 ) $ (66 ) $ (130 ) $ (132 ) |
Comprehensive Income (Loss) [Table Text Block] | June 30, December 31, 2019 2018 (dollars in thousands) Investment securities available-for-sale, net of tax $ 1,268 $ (5,841 ) Cash flow hedge, net of tax (89 ) 837 Defined benefit pension and post-retirement plans, net of tax (4,060 ) (3,785 ) Total $ (2,881 ) $ ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Schedule of Operating Lease Liabilities and Reconciliation | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: June 30, 2019 (dollars in thousands) Lease payments due: Less than 1 year $ 2,704 2,497 2,418 2,372 2,093 7,965 20,049 (2,262 ) $ 17,787 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Activity under the Company’s options as of and for the six months ended June 30, 2019 was as follows: Number of Weighted- Weighted- Aggregate Outstanding at December 31, 2018 108,463 $ 8.35 Granted - - Exercised (28,937 ) 8.96 Forfeited/cancelled/expired - - Outstanding at June 30, 2019 79,526 8.13 2.6 $ 1,155,895 Exercisable at June 30, 2019 79,526 $ 8.13 2.6 $ 1,155,895 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Activity under the Company’s restricted shares for the six months ended June 30, 2019 was as follows: Weighted- Average Nonvested Grant Date Shares Fair Value Nonvested at December 31, 2018 68,428 $ 23.04 Granted 171,488 20.70 Vested (52,629 ) 21.98 Forfeited/cancelled/expired - - Nonvested June 30, 2019 187,287 $ 21.20 |
Schedule of Unearned Performance Unit Awards [Table Text Block] | A summary of the status of unearned performance unit awards and the change during the period is presented in the table below: Weighted Average Grant Units Units Date Fair (expected) (maximum) Value Unearned at December 31, 2018 86,009 $ 22.06 Awarded 35,636 20.79 Change in estimate 23,375 30.95 Vested (52,508 ) 21.26 Unearned at June 30, 2019 92,512 120,212 $ 24.27 |
Schedule of Unearned Restricted Unit Awards [Table Text Block] | A summary of the status of unearned restricted stock units and the change in restricted stock units during the period is presented in the table below: Weighted Average Grant Units Date Fair (expected) Value Unearned at December 31, 2018 29,423 $ 31.35 Awarded 53,454 20.79 Vested (9,808 ) 21.28 Unearned at June 30, 2019 $ 24.98 |
Components of Net Periodic Pe_2
Components of Net Periodic Pension Cost (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The Company maintained a non-contributory defined benefit pension plan for substantially all of its employees until June 30, 2007, at which time the Company froze the plan. The following table sets forth the net periodic pension cost of the Company’s pension plan for the periods indicated. Three Months Three Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 113 107 Expected return on plan assets (174 ) (192 ) Net amortization 90 92 Total periodic pension cost $ 29 $ 7 Six Months Six Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 226 214 Expected return on plan assets (348 ) (383 ) Net amortization 179 183 Total periodic pension cost $ 57 $ 14 |
FHLB Borrowings (Tables)
FHLB Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The Company’s FHLB borrowings and weighted average interest rates are summarized below: June 30, 2019 December 31, 2018 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 597,317 2.51 % $ 600,001 2.59 % By remaining period to maturity: Less than 1 year $ 474,105 2.54 % $ 405,000 2.57 % 1 year through less than 2 years 61,000 2.25 % 110,000 2.75 % 2 years through less than 3 years 27,353 2.15 % 60,000 2.27 % 3 years through less than 4 years 32,428 2.82 % - - 4 years through 5 years 2,852 2.43 % 25,000 2.92 % Total FHLB borrowings 597,738 2.51 % 600,000 2.59 % Fair value (discount) premium (421 ) 1 FHLB borrowings, net $ 597,317 $ 600,001 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition Tables Abstract | |
Schedule of Revenue from Contracts with Customers [Table Text Block] | All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the three months and six months ended June 30, 2019 and 2018. Items outside of ASC 606 are noted as such. Three Months Three Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 319 $ 166 Other 192 141 Interchange income 203 170 Net gains on sales of loans (1) 46 12 Net gains (losses) on equity securities (1) 158 (47 ) Net losses on sale of securities available-for-sale (1) (9 ) - Wire transfer fees (1) 108 77 Loan servicing fees (1) 65 25 Bank owned life insurance (1) 833 775 Other 27 22 Total noninterest income $ 1,942 $ 1,341 Six Months Six Months Ended Ended June 30, 2019 June 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 593 $ 368 Other 372 296 Interchange income 359 313 Net gains on sales of loans (1) 65 29 Net gains (losses) on equity securities (1) 261 (168 ) Net losses on sale of securities available-for-sale (1) (1 ) - Wire transfer fees (1) 225 149 Loan servicing fees (1) 97 48 Bank owned life insurance (1) 1,655 1,549 Other 54 43 Total noninterest income $ 3,680 $ 2,627 (1) Not within scope of ASC 606. |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Debentures [Table Text Block] | The following table summarizes the mandatory redeemable trust preferred securities of the Company’s Statutory Trust II at June 30, 2019 and December 31, 2018. Securities Redeemable by Issuance Date Issued Liquidation Value Coupon Rate Maturity Issuer Beginning 12/19/2003 $ 5,000,000 $1,000 per Capital Security Floating 3-month LIBOR + 285 Basis Points 01/23/2034 01/23/2009 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting Assets And Liabilities Tables | |
Schedule of financial instruments that are eligible for offset [Table Text Block] | Certain financial instrument-related assets and liabilities may be eligible for offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements. However, the Company does not elect to offset such arrangements on the consolidated financial statements. The Company enters into interest rate swap agreements with financial institution counterparties. For additional detail regarding interest rate swap agreements refer to Note 5 within this section. In the event of default on, or termination of, any one contract, both parties have the right to net settle multiple contracts. Also, certain interest rate swap agreements may require the Company to receive or pledge cash or financial instrument collateral based on the contract provisions. The following table presents information about financial instruments that are eligible for offset as of June 30, 2019 and December 31, 2018: Gross Amounts Not Offset Net Amounts Gross Amounts of Assets Offset in the Presented in the Cash or Statement of Statement of Financial Financial Gross Amounts Financial Financial Instruments Instrument Net Recognized Condition Condition Recognized Collateral Amount (dollars in thousands) June 30, 2019 Liabilities: Interest rate swaps $ 128 $ - $ 128 $ - $ 128 $ - December 31, 2018 Assets: Interest rate swaps $ 1,159 $ - $ 1,159 $ - $ - $ 1,159 |
Business Combination (Details)
Business Combination (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 02, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 162,574 | $ 162,574 | $ 145,909 | ||||
Intangible assets | $ 5,131 | ||||||
Merger expenses | 331 | $ 7,893 | |||||
Restricted stock issued | $ 56,025 | ||||||
GHB acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Common stock received | $ 0.245 | ||||||
Goodwill | 10,300 | $ 10,300 | |||||
Intangible assets | 5,100 | 5,100 | |||||
Merger expenses | 0 | 7,600 | |||||
Boefly [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 6,300 | ||||||
Merger expenses | $ 300 | $ 300 |
Business Combination (Details)
Business Combination (Details) Schedule of Fair Value of Identifiable Assets Acquired and Liabilities $ in Thousands | Jan. 02, 2019USD ($) |
Consideration paid: | |
Common stock issued in acquisition | $ 56,025 |
Assets acquired: | |
Cash and cash equivalents | 13,741 |
Securities available-for-sale | 121,672 |
Loans, net | 362,914 |
Premises and equipment, net | 1,624 |
Accrued interest receivable | 2,434 |
Core deposit intangibles | 5,131 |
Other assets | 26,650 |
Total assets acquired | 534,166 |
Liabilities assumed: | |
Deposits | 416,110 |
Borrowings | 64,186 |
Other liabilities | 8,179 |
Total liabilities assumed | 488,475 |
Net assets acquired | 45,691 |
Goodwill recorded in acquisition | $ 10,334 |
Business Combination (Details_2
Business Combination (Details) Schedule of GHB Acquisition - GHB acquisition [Member] $ in Thousands | Jan. 02, 2019USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest acquisition | $ 19,874 |
Contractual cash flows not expected to be collected (non-accretable discount) | (12,167) |
Expected cash flows at acquisition | 7,707 |
Interest component of expected cash flows (accretable discount) | (1,286) |
Fair value of acquired loans | $ 6,421 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - Schedule of earnings per common share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per common share: | ||||
Net income | $ 19,281 | $ 17,527 | $ 30,916 | $ 21,778 |
Earnings allocated to participating securities | (58) | (37) | (140) | (54) |
Income attributable to common stock | $ 19,223 | $ 17,490 | $ 30,776 | $ 21,724 |
Weighted average common shares outstanding, including participating securities | 35,365 | 32,134 | 35,322 | 32,106 |
Weighted average participating securities | (49) | (20) | (26) | (38) |
Weighted average common shares outstanding | 35,316 | 32,114 | 35,296 | 32,068 |
Incremental shares from assumed conversions of options, performance units and non-participating restricted shares | 79 | 207 | 74 | 208 |
Weighted average common and equivalent shares outstanding | 35,395 | 32,321 | 35,370 | 32,276 |
Earnings per common share: | ||||
Basic | $ 0.54 | $ 0.54 | $ 0.87 | $ 0.68 |
Diluted | $ 0.54 | $ 0.54 | $ 0.87 | $ 0.67 |
Securities Available-for-Sale_2
Securities Available-for-Sale (Details) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)Integer | Dec. 31, 2018USD ($)Integer | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities Pledged as Collateral | $ | $ 125.4 | $ 151.5 |
Description of Holding Securities | there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. | there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. |
Number of Investment Securities Sold | Integer | 69 | 148 |
Securities Available-for-Sale_3
Securities Available-for-Sale (Details) - Unrealized gains on investment securities - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale | ||
Securities, Amortized Cost | $ 440,238 | $ 419,947 |
Securities, Gross Unrealized Gains | 4,246 | 1,297 |
Securities, Gross Unrealized Losses | (2,573) | (9,210) |
Securities, Fair Value | 441,911 | 412,034 |
Federal agency obligations [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 24,877 | 45,509 |
Securities, Gross Unrealized Gains | 599 | 51 |
Securities, Gross Unrealized Losses | (15) | (605) |
Securities, Fair Value | 25,461 | 44,955 |
Residential mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 230,064 | 189,721 |
Securities, Gross Unrealized Gains | 881 | 85 |
Securities, Gross Unrealized Losses | (1,403) | (4,602) |
Securities, Fair Value | 229,542 | 185,204 |
Commercial mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 5,748 | 3,919 |
Securities, Gross Unrealized Gains | 78 | |
Securities, Gross Unrealized Losses | (45) | |
Securities, Fair Value | 5,826 | 3,874 |
Obligations of U.S. states and political subdivisions [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 142,521 | 141,496 |
Securities, Gross Unrealized Gains | 2,417 | 1,091 |
Securities, Gross Unrealized Losses | (819) | (3,402) |
Securities, Fair Value | 144,119 | 139,185 |
Corporate bonds and notes [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 28,128 | 26,308 |
Securities, Gross Unrealized Gains | 267 | 45 |
Securities, Gross Unrealized Losses | (278) | (540) |
Securities, Fair Value | 28,117 | 25,813 |
Asset-backed securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 7,802 | 9,685 |
Securities, Gross Unrealized Gains | 2 | 22 |
Securities, Gross Unrealized Losses | (58) | (16) |
Securities, Fair Value | 7,746 | 9,691 |
Certificates of deposit [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 148 | 319 |
Securities, Gross Unrealized Gains | 2 | 3 |
Securities, Gross Unrealized Losses | ||
Securities, Fair Value | 150 | 322 |
Other securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 950 | 2,990 |
Securities, Gross Unrealized Gains | ||
Securities, Gross Unrealized Losses | ||
Securities, Fair Value | $ 950 | $ 2,990 |
Securities Available-for-Sale_4
Securities Available-for-Sale (Details) - Investments classified by maturity date - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Available-for-Sale: | ||
Due in one year or less, amortized cost | $ 4,166 | |
Due in one year or less, fair value | 4,192 | |
Due after one year through five years, amortized cost | 29,411 | |
Due after one year through five years, fair value | 29,449 | |
Due after five years through ten years, amortized cost | 22,538 | |
Due after five years through ten years, fair value | 23,126 | |
Due after ten years, amortized cost | 147,361 | |
Due after ten years, fair value | 148,826 | |
Total, amortized cost | 440,238 | $ 419,947 |
Total, fair value | 441,911 | |
Residential mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 230,064 | 189,721 |
Total, fair value | 229,542 | |
Commercial mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 5,748 | 3,919 |
Total, fair value | 5,826 | |
Other securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 950 | $ 2,990 |
Total, fair value | $ 950 |
Securities Available-for-Sale_5
Securities Available-for-Sale (Details) - Schedule of realized gains and losses - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of realized gains and losses [Abstract] | ||||
Proceeds | $ 47,664 | $ 141,739 | ||
Gross gains on sales of securities | 263 | 400 | ||
Gross losses on sales of securities | (272) | (401) | ||
Net losses on sales of securities | (9) | (1) | ||
Less: tax provision on net losses | (2) | |||
Net losses on sales of securities, after tax | $ (7) | $ (1) |
Securities Available-for-Sale_6
Securities Available-for-Sale (Details) - Schedule of unrealized losses not recognized in income - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | $ 208,570 | $ 301,569 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (2,573) | (9,210) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 49,156 | 60,601 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (120) | (559) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 159,414 | 240,968 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (2,453) | (8,651) |
Federal agency obligations [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 4,260 | 35,472 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (15) | (605) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 810 | |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (1) | |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 4,260 | 34,662 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (15) | (604) |
Residential mortgage pass-through securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 147,392 | 178,365 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (1,403) | (4,602) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 42,750 | 42,040 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (73) | (393) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 104,642 | 136,325 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (1,330) | (4,209) |
Obligations of U.S. states and political subdivisions [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 41,825 | 64,367 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (819) | (3,402) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 7,765 | |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (21) | |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 41,825 | 56,602 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (819) | (3,381) |
Corporate bonds and notes [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 8,696 | 15,534 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (278) | (540) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 2,000 | 7,767 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (133) | |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 6,696 | 7,767 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (278) | (407) |
Asset-backed securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 6,397 | 3,957 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (58) | (16) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 4,406 | 2,219 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (47) | (11) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 1,991 | 1,738 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | $ (11) | (5) |
Commercial mortgage pass-through securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 3,874 | |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (45) | |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | ||
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | ||
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 3,874 | |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | $ (45) |
Derivatives (Details)
Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 04, 2019 | Apr. 13, 2017 | Aug. 24, 2015 | Dec. 30, 2014 | Oct. 15, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 50,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | ||||
Interest expense on derivatives | $ 176 | $ 148 | $ 358 | $ 152 |
Derivatives (Details) - Summary
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Summary of interest rate swap designated as a cash flow hedges [Abstract] | |||
Notional amount | $ 125,000 | $ 100,000 | $ 75,000 |
Weighted average pay rates | 1.81% | 1.68% | 1.70% |
Weighted average receive rates | 2.69% | 1.99% | 2.19% |
Weighted average maturity | 1 year 8 months 12 days | 1 year 10 months 24 days | 2 years |
Fair value | $ (128) | $ 1,893 | $ 1,159 |
Derivatives (Details) - Summa_2
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income - Interest Rate Contracts [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Derivatives (Details) - Summary of net gains (losses) recorded in accumulated other comprehensive income and statements of income relating to cash flow derivative instruments [Line Items] | ||
Amount of gain (loss) recognized in OCI (Effective Portion) | $ (929) | $ 1,246 |
Amount of gain (loss) reclassified from OCI to interest income | (358) | (152) |
Amount of gain recognized in other Noninterest income (Ineffective Portion) |
Derivatives (Details) - Summa_3
Derivatives (Details) - Summary of cash flow hedges included in the consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
DERIVATIVES (Details) - Summary of cash flow hedges included in the consolidated balance sheets [Line Items] | ||
Interest rate swaps related to FHLB advances included in assets, Fair Value | $ 1,159 | |
Interest Rate Swap [Member] | ||
DERIVATIVES (Details) - Summary of cash flow hedges included in the consolidated balance sheets [Line Items] | ||
Interest rate swaps related to FHLB advances included in assets, Notional Amount | $ 125,000 | 75,000 |
Interest rate swaps related to FHLB advances included in assets, Fair Value | $ (128) | $ 1,159 |
Loans and the Allowance for L_3
Loans and the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Non Accrual Contractual Due | 90 days | ||
Loans Pledged as Collateral | $ 2,500,000 | $ 2,300,000 | |
Loans performing under the restructured terms | 16,300 | 11,200 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 22,800 | 23,300 | |
Troubled debt restructurings | 39,100 | $ 34,500 | |
Specific allowance | 162 | $ 147 | |
Value of taxi medallion loans Included in the commercial loan segment of the troubled debt restructurings | $ 11,200 |
Loans and the Allowance for L_4
Loans and the Allowance for Loan Losses (Details) - Composition of loan portfolio - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 5,094,748 | $ 4,544,899 |
Net deferred loan fees | (4,256) | (3,807) |
Total loans receivable | 5,090,492 | 4,541,092 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,052,559 | 988,758 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 3,111,274 | 2,778,167 |
Commercial Construction Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 602,213 | 465,389 |
Residential Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 326,661 | 309,991 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 2,041 | $ 2,594 |
Loans and the Allowance for L_5
Loans and the Allowance for Loan Losses (Details) - Loans held-for-sale - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 6,704 | $ 2,509 |
Commercial Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | 5,399 | 2,509 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 1,305 |
Loans and the Allowance for L_6
Loans and the Allowance for Loan Losses (Details) - Schedule of accretable yield, or income expected to be collected - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of accretable yield, or income expected to be collected [Abstract] | ||||
Balance at beginning of period | $ 2,213 | $ 1,322 | $ 1,134 | $ 1,387 |
New loans purchased | 1,286 | |||
Accretion of income | (575) | (63) | (782) | (128) |
Balance at end of period | $ 1,638 | $ 1,259 | $ 1,638 | $ 1,259 |
Loans and the Allowance for L_7
Loans and the Allowance for Loan Losses (Details) - Loans receivable on nonaccrual status - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 49,917 | $ 51,855 |
Commercial Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 28,433 | 29,340 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 12,686 | 15,135 |
Commercial Construction Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 3,579 | 2,934 |
Residential Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Loans receivable on nonaccrual status [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 5,219 | $ 4,446 |
Loans and the Allowance for L_8
Loans and the Allowance for Loan Losses (Details) - Credit quality indicators - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 5,094,748 | $ 4,544,899 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,052,559 | 988,758 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,111,274 | 2,778,167 |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 602,213 | 465,389 |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 326,661 | 309,991 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 2,041 | 2,594 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,994,032 | 4,456,187 |
Pass [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 997,503 | 951,610 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,084,014 | 2,742,989 |
Pass [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 589,165 | 453,598 |
Pass [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 321,316 | 305,414 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 2,034 | 2,576 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 30,997 | 21,460 |
Special Mention [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 19,269 | 3,371 |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 7,622 | 12,574 |
Special Mention [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,106 | 5,515 |
Special Mention [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | ||
Special Mention [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | ||
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 69,719 | 67,252 |
Substandard [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 35,787 | 33,777 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 19,638 | 22,604 |
Substandard [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 8,942 | 6,276 |
Substandard [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 5,345 | 4,577 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 7 | 18 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | ||
Doubtful [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | ||
Doubtful [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | ||
Doubtful [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | ||
Doubtful [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | ||
Doubtful [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans |
Loans and the Allowance for L_9
Loans and the Allowance for Loan Losses (Details) - Schedule of analysis of impaired loans, by class - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | $ 58,943 | $ 58,943 | $ 58,184 | ||
No related allowance recorded, Unpaid Principal Balance | 106,211 | 106,211 | 113,292 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 60,114 | $ 73,986 | 59,480 | $ 78,004 | |
Impaired loans with No Related Allowance Interest Income Recognized | 175 | 338 | 387 | 731 | |
With an allowance recorded, Recorded Investment | 3,540 | 3,540 | 1,748 | ||
With an allowance recorded, Unpaid Principal Balance | 3,553 | 3,553 | 1,754 | ||
With an allowance recorded, Related Allowance | 213 | 213 | 36 | ||
Impaired loans With An Allowance Recorded Average Recorded Investment | 3,498 | 8,544 | 3,467 | ||
Impaired loans With An Allowance Recorded Interest Income Recognized | 42 | 11 | 85 | ||
Total, Recorded Investment | 62,483 | 62,483 | 59,932 | ||
Total, Unpaid Principal Balance | 109,764 | 109,764 | 115,046 | ||
Total, Related Allowance | 213 | 213 | 36 | ||
Total Impaired Loans Average Recorded Investment | 63,612 | 82,530 | 62,947 | 86,552 | |
Total Impaired Loans Interest Income Recognized | 217 | 349 | 472 | 754 | |
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 32,559 | 32,559 | 29,896 | ||
No related allowance recorded, Unpaid Principal Balance | 79,328 | 79,328 | 83,596 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 33,663 | 38,770 | 33,066 | 42,056 | |
Impaired loans with No Related Allowance Interest Income Recognized | 82 | 35 | 164 | 66 | |
Total, Recorded Investment | 32,559 | 32,559 | 29,896 | ||
Total, Unpaid Principal Balance | 79,328 | 79,328 | 83,596 | ||
Total, Related Allowance | |||||
Total Impaired Loans Average Recorded Investment | 33,663 | 38,770 | 33,066 | 42,056 | |
Total Impaired Loans Interest Income Recognized | 82 | 35 | 164 | 66 | |
Commercial Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 17,162 | 17,162 | 16,839 | ||
No related allowance recorded, Unpaid Principal Balance | 17,317 | 17,317 | 17,935 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 17,205 | 23,422 | 17,170 | 23,504 | |
Impaired loans with No Related Allowance Interest Income Recognized | 68 | 127 | 143 | 370 | |
With an allowance recorded, Recorded Investment | 393 | 393 | 1,488 | ||
With an allowance recorded, Unpaid Principal Balance | 393 | 393 | 1,488 | ||
With an allowance recorded, Related Allowance | 29 | 29 | 7 | ||
Impaired loans With An Allowance Recorded Average Recorded Investment | 393 | 8,544 | 393 | 8,548 | |
Impaired loans With An Allowance Recorded Interest Income Recognized | 11 | 23 | |||
Total, Recorded Investment | 17,555 | 17,555 | 18,327 | ||
Total, Unpaid Principal Balance | 17,710 | 17,710 | 19,423 | ||
Total, Related Allowance | 29 | 29 | 7 | ||
Total Impaired Loans Average Recorded Investment | 17,598 | 31,966 | 17,563 | 32,052 | |
Total Impaired Loans Interest Income Recognized | 68 | 138 | 143 | 393 | |
Commercial Construction Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 6,047 | 6,047 | 9,240 | ||
No related allowance recorded, Unpaid Principal Balance | 6,047 | 6,047 | 9,240 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 6,048 | 9,225 | 6,049 | 9,845 | |
Impaired loans with No Related Allowance Interest Income Recognized | 25 | 176 | 80 | 295 | |
With an allowance recorded, Recorded Investment | 2,894 | 2,894 | |||
With an allowance recorded, Unpaid Principal Balance | 2,895 | 2,895 | |||
With an allowance recorded, Related Allowance | 162 | 162 | |||
Impaired loans With An Allowance Recorded Average Recorded Investment | 2,850 | 2,818 | |||
Impaired loans With An Allowance Recorded Interest Income Recognized | 42 | 85 | |||
Total, Recorded Investment | 8,941 | 8,941 | 9,240 | ||
Total, Unpaid Principal Balance | 8,942 | 8,942 | 9,240 | ||
Total, Related Allowance | 162 | 162 | |||
Total Impaired Loans Average Recorded Investment | 8,898 | 9,225 | 8,867 | 9,845 | |
Total Impaired Loans Interest Income Recognized | 67 | 176 | 165 | 295 | |
Residential Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 3,175 | 3,175 | 2,209 | ||
No related allowance recorded, Unpaid Principal Balance | 3,519 | 3,519 | 2,521 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 3,198 | 2,569 | 3,195 | 2,599 | |
Impaired loans with No Related Allowance Interest Income Recognized | |||||
With an allowance recorded, Recorded Investment | 253 | 253 | 260 | ||
With an allowance recorded, Unpaid Principal Balance | 265 | 265 | 266 | ||
With an allowance recorded, Related Allowance | 22 | 22 | 29 | ||
Impaired loans With An Allowance Recorded Average Recorded Investment | 255 | 256 | |||
Impaired loans With An Allowance Recorded Interest Income Recognized | |||||
Total, Recorded Investment | 3,428 | 3,428 | 2,469 | ||
Total, Unpaid Principal Balance | 3,784 | 3,784 | 2,787 | ||
Total, Related Allowance | 22 | 22 | $ 29 | ||
Total Impaired Loans Average Recorded Investment | 3,453 | 2,569 | 3,451 | 2,599 | |
Total Impaired Loans Interest Income Recognized |
Loans and the Allowance for _10
Loans and the Allowance for Loan Losses (Details) - Aging analysis - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 49,917 | $ 51,855 |
Total Past Due and Nonaccrual | 62,470 | 69,811 |
Current | 5,032,278 | 4,475,088 |
Gross Loans | 5,094,748 | 4,544,899 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 28,433 | 29,340 |
Total Past Due and Nonaccrual | 35,604 | 32,660 |
Current | 1,016,955 | 956,098 |
Gross Loans | 1,052,559 | 988,758 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 12,686 | 15,135 |
Total Past Due and Nonaccrual | 13,834 | 23,137 |
Current | 3,097,440 | 2,755,030 |
Gross Loans | 3,111,274 | 2,778,167 |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 3,579 | 2,934 |
Total Past Due and Nonaccrual | 7,109 | 5,994 |
Current | 595,104 | 459,395 |
Gross Loans | 602,213 | 465,389 |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 5,219 | 4,446 |
Total Past Due and Nonaccrual | 5,900 | 8,020 |
Current | 320,761 | 301,971 |
Gross Loans | 326,661 | 309,991 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | ||
Total Past Due and Nonaccrual | 23 | |
Current | 2,018 | 2,594 |
Gross Loans | 2,041 | 2,594 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,814 | 13,786 |
30 - 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,130 | 1,673 |
30 - 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 6,162 | |
30 - 59 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 2,496 | |
30 - 59 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 681 | 3,455 |
30 - 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3 | |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 7,733 | 2,523 |
60 - 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,035 | |
60 - 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,148 | 1,840 |
60 - 89 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,530 | 564 |
60 - 89 Days Past Due [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 119 | |
60 - 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 20 | |
90 Days or Greater Past Due and Still Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,006 | 1,647 |
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,006 | 1,647 |
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
90 Days or Greater Past Due and Still Accruing [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual |
Loans and the Allowance for _11
Loans and the Allowance for Loan Losses (Details) - Allowance for loan and lease losses - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
ALLL | ||||||
ALLL, Individually evaluated for impairment | $ 213 | $ 36 | ||||
ALLL, Collectively evaluated for impairment | 36,285 | 33,718 | ||||
ALLL, Acquired portfolio | 1,200 | 1,200 | ||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 37,698 | $ 36,858 | 34,954 | $ 33,594 | $ 32,529 | $ 31,748 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 62,483 | 59,932 | ||||
Loans Receivable, Collectively evaluated for impairment | 4,428,148 | 4,171,343 | ||||
Loans Receivable, Acquired portfolio | 597,413 | 311,115 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 6,704 | 2,509 | ||||
Total | 5,094,748 | 4,544,899 | ||||
Commercial Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | ||||||
ALLL, Collectively evaluated for impairment | 8,521 | 9,675 | ||||
ALLL, Acquired portfolio | 200 | 200 | ||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 8,721 | 8,660 | 9,875 | 8,960 | 8,550 | 8,233 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 32,559 | 29,896 | ||||
Loans Receivable, Collectively evaluated for impairment | 901,858 | 949,129 | ||||
Loans Receivable, Acquired portfolio | 112,743 | 7,224 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 5,399 | 2,509 | ||||
Total | 1,052,559 | 988,758 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | 29 | 7 | ||||
ALLL, Collectively evaluated for impairment | 20,456 | 17,840 | ||||
ALLL, Acquired portfolio | 1,000 | 1,000 | ||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 21,485 | 21,561 | 18,847 | 18,221 | 17,435 | 17,112 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 17,555 | 18,327 | ||||
Loans Receivable, Collectively evaluated for impairment | 2,694,372 | 2,500,132 | ||||
Loans Receivable, Acquired portfolio | 398,042 | 259,708 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 1,305 | |||||
Total | 3,111,274 | 2,778,167 | ||||
Commercial Construction Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | 162 | |||||
ALLL, Collectively evaluated for impairment | 5,380 | 4,519 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 5,542 | 4,982 | 4,519 | 4,812 | 4,772 | 4,747 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 8,941 | 9,240 | ||||
Loans Receivable, Collectively evaluated for impairment | 552,712 | 456,149 | ||||
Loans Receivable, Acquired portfolio | 40,560 | |||||
Loans Receivables, Acquired with deteriorated credit quality | ||||||
Total | 602,213 | 465,389 | ||||
Residential Real Estate Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | 22 | 29 | ||||
ALLL, Collectively evaluated for impairment | 1,186 | 1,237 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 1,208 | 1,166 | 1,266 | 1,167 | 1,109 | 1,050 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 3,428 | 2,469 | ||||
Loans Receivable, Collectively evaluated for impairment | 277,490 | 263,449 | ||||
Loans Receivable, Acquired portfolio | 45,743 | 44,073 | ||||
Loans Receivables, Acquired with deteriorated credit quality | ||||||
Total | 326,661 | 309,991 | ||||
Consumer Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | ||||||
ALLL, Collectively evaluated for impairment | 2 | 2 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 2 | 1 | 2 | 3 | 2 | 1 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | ||||||
Loans Receivable, Collectively evaluated for impairment | 1,716 | 2,484 | ||||
Loans Receivable, Acquired portfolio | 325 | 110 | ||||
Loans Receivables, Acquired with deteriorated credit quality | ||||||
Total | 2,041 | 2,594 | ||||
Unallocated [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | ||||||
ALLL, Collectively evaluated for impairment | 740 | 445 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | $ 740 | $ 488 | $ 445 | $ 431 | $ 661 | $ 605 |
Loans and the Allowance for _12
Loans and the Allowance for Loan Losses (Details) - Schedule of allowance for loan losses - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 36,858 | $ 32,529 | $ 34,954 | $ 31,748 |
Charge-offs | (406) | (47) | (3,082) | (17,085) |
Recoveries | 146 | 12 | 226 | 31 |
Provision for loan losses | 1,100 | 1,100 | 5,600 | 18,900 |
Balance | 37,698 | 33,594 | 37,698 | 33,594 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 8,660 | 8,550 | 9,875 | 8,233 |
Charge-offs | (46) | (17,066) | ||
Recoveries | 115 | 12 | 186 | 31 |
Provision for loan losses | (54) | 444 | (1,340) | 17,762 |
Balance | 8,721 | 8,960 | 8,721 | 8,960 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 21,561 | 17,435 | 18,847 | 17,112 |
Charge-offs | (406) | (3,082) | ||
Recoveries | 30 | 30 | ||
Provision for loan losses | 300 | 786 | 5,690 | 1,109 |
Balance | 21,485 | 18,221 | 21,485 | 18,221 |
Commercial Construction Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 4,982 | 4,772 | 4,519 | 4,747 |
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | 560 | 40 | 1,023 | 65 |
Balance | 5,542 | 4,812 | 5,542 | 4,812 |
Residential Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 1,166 | 1,109 | 1,266 | 1,050 |
Charge-offs | (18) | |||
Recoveries | 1 | 3 | ||
Provision for loan losses | 41 | 58 | (61) | 135 |
Balance | 1,208 | 1,167 | 1,208 | 1,167 |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 1 | 2 | 2 | 1 |
Charge-offs | (1) | (1) | ||
Recoveries | 7 | |||
Provision for loan losses | 1 | 2 | (7) | 3 |
Balance | 2 | 3 | 2 | 3 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 488 | 661 | 445 | 605 |
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | 252 | (230) | 295 | (174) |
Balance | $ 740 | $ 431 | $ 740 | $ 431 |
Loans and the Allowance for _13
Loans and the Allowance for Loan Losses (Details) - Schedule of troubled debt restructuring by class $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)Integer | Jun. 30, 2018USD ($)Integer | |
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 8 | 35 |
Pre-Modification Outstanding Recorded Investment | $ 8,922 | $ 17,966 |
Post-Modification Outstanding Recorded Investment | $ 8,922 | $ 17,966 |
Commercial Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 4 | 30 |
Pre-Modification Outstanding Recorded Investment | $ 4,186 | $ 15,613 |
Post-Modification Outstanding Recorded Investment | $ 4,186 | $ 15,613 |
Commercial Real Estate Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 2,635 | $ 60 |
Post-Modification Outstanding Recorded Investment | $ 2,635 | $ 60 |
Commercial Construction Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 2,101 | $ 1,839 |
Post-Modification Outstanding Recorded Investment | $ 2,101 | $ 1,839 |
Residential [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 454 | |
Post-Modification Outstanding Recorded Investment | $ 454 |
Fair Value Measurements and F_3
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 3,540 | $ 1,748 |
Impaired Financing Receivable, Related Allowance | 213 | 36 |
Impaired Loans [Member] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,500 | 1,700 |
Impaired Financing Receivable, Related Allowance | $ 200 | $ 0 |
Fair Value Measurements and F_4
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a recurring basis - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale: | ||
Securities available-for-sale | $ 441,911 | $ 412,034 |
Derivatives | 1,159 | |
LIABILITIES | ||
Derivatives | 128 | |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 950 | 2,990 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 431,715 | 399,667 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 9,246 | 9,377 |
Federal agency obligations [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 25,461 | 44,955 |
Residential mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 229,542 | 185,204 |
Commercial mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 5,826 | 3,874 |
Obligations of U.S. states and political subdivisions [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 144,119 | 139,185 |
Corporate bonds and notes [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 28,117 | 25,813 |
Asset-backed securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 7,746 | 9,691 |
Certificates of deposit [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 150 | 322 |
Other securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 950 | 2,990 |
Recurring [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 441,911 | 412,034 |
Equity securities | 11,152 | 11,460 |
Derivatives | 1,159 | |
Total assets | 453,063 | 424,653 |
LIABILITIES | ||
Derivatives | 128 | |
Total liabilities | 128 | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 950 | 2,990 |
Equity securities | 11,152 | 11,460 |
Derivatives | ||
Total assets | 12,102 | 14,450 |
LIABILITIES | ||
Derivatives | ||
Total liabilities | ||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 431,715 | 399,667 |
Equity securities | ||
Derivatives | 1,159 | |
Total assets | 431,715 | 400,826 |
LIABILITIES | ||
Derivatives | 128 | |
Total liabilities | 128 | |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 9,246 | 9,377 |
Equity securities | ||
Derivatives | ||
Total assets | 9,246 | 9,377 |
LIABILITIES | ||
Derivatives | ||
Total liabilities | ||
Recurring [Member] | Federal agency obligations [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 25,461 | 44,955 |
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 25,461 | 44,955 |
Recurring [Member] | Federal agency obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Residential mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 229,542 | 185,204 |
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 229,542 | 185,204 |
Recurring [Member] | Residential mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Commercial mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 5,826 | 3,874 |
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 5,826 | 3,874 |
Recurring [Member] | Commercial mortgage pass-through securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 144,119 | 139,185 |
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 134,873 | 129,808 |
Recurring [Member] | Obligations of U.S. states and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 9,246 | 9,377 |
Recurring [Member] | Corporate bonds and notes [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 28,117 | 25,813 |
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 28,117 | 25,813 |
Recurring [Member] | Corporate bonds and notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Asset-backed securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 7,746 | 9,691 |
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 7,746 | 9,691 |
Recurring [Member] | Asset-backed securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Certificates of deposit [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 150 | 322 |
Recurring [Member] | Other securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 950 | 2,990 |
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 950 | 2,990 |
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | ||
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 150 | 322 |
Recurring [Member] | Certificate Of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale |
Fair Value Measurements and F_5
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Assets at Fair Value on Non-Recurring - Impaired Loans [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Commercial Real Estate [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | $ 364 | $ 1,481 |
Commercial Real Estate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial Real Estate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial Real Estate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 364 | 1,481 |
Commercial construction [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 2,732 | |
Commercial construction [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial construction [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Commercial construction [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 2,732 | |
Residential [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 231 | 231 |
Residential [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Residential [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | ||
Residential [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | $ 231 | $ 231 |
Fair Value Measurements and F_6
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value recurring basis - Municipal Securities [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Balance of recurring Level 3 assets at January 1 | $ 9,377 | $ 9,632 |
Principal paydowns | (131) | (255) |
Balance of recurring Level 3 assets at December 31 | $ 9,246 | $ 9,377 |
Fair Value Measurements and F_7
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value on recurring item basis - Recurring [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair value | $ 453,063 | $ 424,653 |
Municipal Securities [Member] | ||
Fair value | $ 9,246 | $ 9,377 |
Valuation Techniques | Discounted cash flows | Discounted cash flows |
Unobservable Input | Discount rate | Discount rate |
Range | 2.90% | 2.90% |
Fair Value Measurements and F_8
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of Fair Value on a non-recurring basis - Impaired Loans [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Commercial Real Estate [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Fair value | $ 364 | $ 1,481 |
Commercial construction [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Fair value | 2,732 | |
Non-recurring [Member] | Commercial Real Estate [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Fair value | $ 364 | $ 1,481 |
Valuation Techniques | Sales comparison approach | Sales comparison approach |
Unobservable Input | Adjustment for differences between the comparable sales | Adjustment for differences between the comparable sales |
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | (10.00%) | (8.00%) |
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | Minimum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 0.00% | 6.00% |
Non-recurring [Member] | Commercial Real Estate [Member] | Sales comparison approach [Member] | Maximum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 20.00% | 9.00% |
Non-recurring [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Fair value | $ 231 | $ 231 |
Valuation Techniques | Sales comparison approach | Sales comparison approach |
Unobservable Input | Adjustment for differences between the comparable sales | Adjustment for differences between the comparable sales |
Non-recurring [Member] | Residential Real Estate Portfolio Segment [Member] | Sales comparison approach [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | (2.00%) | (5.00%) |
Non-recurring [Member] | Residential Real Estate Portfolio Segment [Member] | Sales comparison approach [Member] | Minimum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 0.00% | 0.00% |
Non-recurring [Member] | Residential Real Estate Portfolio Segment [Member] | Sales comparison approach [Member] | Maximum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 7.00% | 10.00% |
Non-recurring [Member] | Commercial construction [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Fair value | $ 2,732 | |
Valuation Techniques | Sales comparison approach | |
Unobservable Input | Adjustment for differences between the comparable sales | |
Non-recurring [Member] | Commercial construction [Member] | Sales comparison approach [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | (10.00%) | |
Non-recurring [Member] | Commercial construction [Member] | Sales comparison approach [Member] | Minimum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 0.00% | |
Non-recurring [Member] | Commercial construction [Member] | Sales comparison approach [Member] | Maximum [Member] | ||
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Fair value, assets and liabilities measured on nonrecurring basis, valuation techniques [Line Items] | ||
Capitalization rate | 20.00% |
Fair Value Measurements and F_9
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets | ||||
Cash and cash equivalents, Carrying Amount | $ 185,650 | $ 172,366 | $ 176,169 | $ 149,582 |
Cash and cash equivalents, Fair Value | 185,650 | 172,366 | ||
Securities available-for-sale, Carrying Amount | 441,911 | 412,034 | ||
Securities available-for-sale, Fair Value | 441,911 | 412,034 | ||
Investment in restricted stocks, Carrying Amount | 31,767 | 31,136 | ||
Equity securities, Carrying Amount | 11,152 | 11,460 | ||
Equity securities, Fair Value | 11,152 | 11,460 | ||
Net loans, Carrying Amount | 5,052,794 | 4,506,138 | ||
Net loans, Fair Value | 5,041,283 | 4,402,878 | ||
Derivatives, Carrying Amount | 1,159 | |||
Derivatives, Fair Value | 1,159 | |||
Accrued interest receivable, Carrying Amount | 21,272 | 18,214 | ||
Accrued interest receivable, Fair Value | 21,272 | 18,214 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Carrying Amount | 813,635 | 768,584 | ||
Noninterest-bearing deposits, Fair Value | 813,635 | 768,584 | ||
Interest-bearing deposits, Carrying Amount | 3,827,508 | 3,323,508 | ||
Interest-bearing deposits, Fair Value | 3,839,549 | 3,320,640 | ||
Borrowings, Carrying Amount | 597,317 | 600,001 | ||
Borrowings, Fair Value | 598,821 | 598,598 | ||
Subordinated debentures, Carrying Amount | 128,720 | 128,556 | ||
Subordinated debentures, Fair Value | 137,269 | 132,426 | ||
Derivatives, Carrying Amount | 128 | |||
Derivatives, Fair Value | 128 | |||
Accrued interest payable, Carrying Amount | 5,561 | 6,764 | ||
Accrued interest payable, Fair Value | 5,561 | 6,764 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | 185,650 | 172,366 | ||
Securities available-for-sale, Fair Value | 950 | 2,990 | ||
Equity securities, Fair Value | 11,152 | 11,460 | ||
Net loans, Fair Value | ||||
Derivatives, Fair Value | ||||
Accrued interest receivable, Fair Value | ||||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | 813,635 | 768,584 | ||
Interest-bearing deposits, Fair Value | 2,203,560 | 1,957,503 | ||
Borrowings, Fair Value | ||||
Subordinated debentures, Fair Value | ||||
Derivatives, Fair Value | ||||
Accrued interest payable, Fair Value | ||||
Fair Value, Inputs, Level 2 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | ||||
Securities available-for-sale, Fair Value | 431,715 | 399,667 | ||
Equity securities, Fair Value | ||||
Net loans, Fair Value | ||||
Derivatives, Fair Value | 1,159 | |||
Accrued interest receivable, Fair Value | 2,447 | 2,064 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | ||||
Interest-bearing deposits, Fair Value | 1,635,989 | 1,363,137 | ||
Borrowings, Fair Value | 598,821 | 598,598 | ||
Subordinated debentures, Fair Value | 137,269 | 132,426 | ||
Derivatives, Fair Value | 128 | |||
Accrued interest payable, Fair Value | 5,561 | 6,764 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | ||||
Securities available-for-sale, Fair Value | 9,246 | 9,377 | ||
Equity securities, Fair Value | ||||
Net loans, Fair Value | 5,041,283 | 4,402,878 | ||
Derivatives, Fair Value | ||||
Accrued interest receivable, Fair Value | 18,825 | 16,150 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | ||||
Interest-bearing deposits, Fair Value | ||||
Borrowings, Fair Value | ||||
Subordinated debentures, Fair Value | ||||
Derivatives, Fair Value | ||||
Accrued interest payable, Fair Value |
Comprehensive Income (Details)
Comprehensive Income (Details) - Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items] | ||||
Sale of securities available-for-sale Net gains on sale of securities available-for-sale | $ 4,027 | $ (1,780) | $ 9,585 | $ (6,799) |
Sale of securities available-for-sale Income tax expense | (1,055) | 445 | (2,477) | 1,737 |
Total reclassification | 2,399 | (1,140) | 5,908 | (3,974) |
Amounts Reclassified from Accumulated Other Comprehensive Income/(Loss) [Member] | ||||
COMPREHENSIVE INCOME (Details) - Comprehensive Income (Loss) [Line Items] | ||||
Sale of securities available-for-sale Net gains on sale of securities available-for-sale | (9) | (1) | ||
Sale of securities available-for-sale Income tax expense | 2 | |||
Sale of securities available-for-sale | (7) | (1) | ||
Amortization of pension plan net actuarial losses Salaries and employee benefits | (90) | (92) | (179) | (183) |
Amortization of pension plan net actuarial losses Income tax benefit | 25 | 26 | 50 | 51 |
Amortization of pension plan net actuarial losses | (65) | (66) | (129) | (132) |
Total reclassification | $ (72) | $ (66) | $ (130) | $ (132) |
Comprehensive Income (Details_2
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Investment securities available-for-sale, net of tax | $ 1,268 | $ (5,841) |
Cash flow hedge, net of tax | (89) | 837 |
Defined benefit pension and post-retirement plans, net of tax | (4,060) | (3,785) |
Total accumulated other comprehensive loss | $ (2,881) | $ (8,789) |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee Disclosure [Abstract] | |||
Lease liabilities | $ 17,800 | $ 17,800 | |
Right-of-use assets | $ 16,397 | $ 16,397 | |
Lease term for operating leases | 7 years 4 months 24 days | 7 years 4 months 24 days | |
Weighted average discount rate | 3.00% | 3.00% | |
Lease costs | $ 800 | $ 1,600 | |
Rent expense | $ 500 | $ 1,000 |
Premises and Equipment (Detai_2
Premises and Equipment (Details) - Schedule of Operating Lease Liabilities and Reconciliation - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Lease payments due: | ||
Less than 1 year | $ 2,704 | |
1 year through less than 2 years | 2,497 | |
2 years through less than 3 years | 2,418 | |
3 years through less than 4 years | 2,372 | |
4 years through 5 years | 2,093 | |
After 5 years | 7,965 | |
Total undiscounted cash flows | 20,049 | |
Discounted cash flows | (2,262) | |
Total lease liability | $ 17,787 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based compensation expense | $ 700,000 | $ 300,000 | $ 1,500,000 | $ 700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award expiration Period | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 79,526 | 79,526 | 108,463 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 53,454 | |||||
Restricted shares granted | 129,005 | |||||
Unrecognized compensation cost related to nonvested shares | $ 997,285 | $ 997,285 | ||||
Weighted average period related to compesation cost | 2 years 3 months 18 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 73,069 | 73,069 | 29,423 | |||
Performance unit shares to satisfy tax obligation created from vesting, net | 4,904 | |||||
Shares issued as a result of net performance share issued to satisfy tax obligation | 4,904 | |||||
Restricted Stock [Member] | ||||||
Unrecognized compensation cost related to nonvested shares | $ 1,500,000 | $ 1,500,000 | ||||
Weighted average period related to compesation cost | 2 years 4 months 24 days | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 35,636 | |||||
Unrecognized compensation cost related to nonvested shares | $ 1,000,000 | $ 1,000,000 | ||||
Weighted average period related to compesation cost | 1 year 9 months 18 days | |||||
Performance unit shares to satisfy tax obligation created from vesting, net | 25,991 | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 26,517 | |||||
2017 Equity Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in Shares) | 750,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 412,572 |
Stock Based Compensation (Det_2
Stock Based Compensation (Details) - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Outstanding Beginning Balance | 108,463 | |||
Granted | ||||
Exercised | (6,946) | (7,800) | (28,937) | (46,497) |
Forfeited/cancelled/expired | ||||
Outstanding Ending Balance | 79,526 | 79,526 | ||
Exercisable Ending Balance | 79,526 | 79,526 | ||
Outstanding Beginning Balance, Weighted-Average Exercise Price | $ 8.35 | |||
Exercised, Weighted-Average Granted Price | ||||
Exercised, Weighted-Average Exercise Price | 8.96 | |||
Forfeited/cancelled/expired, Weighted-Average Exercise Price | ||||
Outstanding Ending Balance, Weighted-Average Exercise Price | $ 8.13 | 8.13 | ||
Exercisable Ending Balance, Weighted-Average Exercise Price | $ 8.13 | $ 8.13 | ||
Outstanding Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 2 years 7 months 6 days | |||
Exercisable Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 2 years 7 months 6 days | |||
Outstanding Ending Balance - Aggregate Intrinsic Value | $ 1,155,895 | $ 1,155,895 | ||
Exercisable Ending Balance - Aggregate Intrinsic Value | $ 1,155,895 | $ 1,155,895 |
Stock Based Compensation (Det_3
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Granted | |
Nonvested [Member] | |
Nonvested at December 31, 2018 | 68,428 |
Granted | 171,488 |
Vested | (52,629) |
Forfeited/cancelled/expired | |
Nonvested June 30, 2019 | 187,287 |
Outstanding, beginning balance | $ / shares | $ 23.04 |
Granted | $ / shares | 20.70 |
Vested | $ / shares | 21.98 |
Forfeited/cancelled/expired | $ / shares | |
Outstanding, ending balance | $ / shares | $ 21.20 |
Stock Based Compensation (Det_4
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Outstanding Beginning Balance | 108,463 |
Awarded | |
Outstanding Ending Balance | 79,526 |
Unearned [Member] | |
Outstanding Beginning Balance | 86,009 |
Awarded | 35,636 |
Change in estimate | 23,375 |
Vested | (52,508) |
Outstanding Ending Balance | 92,512 |
Outstanding, beginning balance | $ / shares | $ 22.06 |
Awarded | $ / shares | 20.79 |
Change in estimate | $ / shares | 30.95 |
Vested | $ / shares | 21.26 |
Outstanding, ending balance | $ / shares | $ 24.27 |
Unearned [Member] | Maximum [Member] | |
Outstanding Ending Balance | 120,212 |
Restricted Stock [Member] | |
Outstanding Beginning Balance | 29,423 |
Awarded | 53,454 |
Vested | (9,808) |
Outstanding Ending Balance | 73,069 |
Outstanding, beginning balance | $ / shares | $ 31.35 |
Awarded | $ / shares | 20.79 |
Vested | $ / shares | 21.28 |
Outstanding, ending balance | $ / shares | $ 24.98 |
Components of Net Periodic Pe_3
Components of Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Average daily balance during the year | ||||
Service cost | ||||
Interest cost | 113 | 107 | 226 | 214 |
Expected return on plan assets | (174) | (192) | (348) | (383) |
Net amortization | 90 | 92 | 179 | 183 |
Total periodic pension cost | $ 29 | $ 7 | $ 57 | $ 14 |
FHLB Borrowings (Details)
FHLB Borrowings (Details) $ in Billions | Jun. 30, 2019USD ($) |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] | |
Long-term Line of Credit | $ 1.9 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1 |
FHLB Borrowings (Details) - Sch
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
By type of borrowing: | ||
FHLB borrowings (in Dollars) | $ 597,317 | $ 600,001 |
Weighted average interest rates | 2.51% | 2.59% |
By remaining period to maturity: | ||
Less than 1 year (in Dollars) | $ 474,105 | $ 405,000 |
Less than 1 year | 2.54% | 2.57% |
1 year through less than 2 years (in Dollars) | $ 61,000 | $ 110,000 |
1 year through less than 2 years | 2.25% | 2.75% |
2 years through less than 3 years (in Dollars) | $ 27,353 | $ 60,000 |
2 years through less than 3 years | 2.15% | 2.27% |
3 years through less than 4 years (in Dollars) | $ 32,428 | |
3 years through less than 4 years | 2.82% | |
4 years through 5 years (in Dollars) | $ 2,852 | $ 25,000 |
4 years through 5 years | 2.43% | 2.92% |
Total FHLB borrowings (in Dollars) | $ 597,738 | $ 600,000 |
Fair value (discount) premium | (421) | 1 |
FHLB borrowings, net | $ 597,317 | $ 600,001 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Service charges on deposits | |||||
Overdraft fees | $ 319 | $ 166 | $ 593 | $ 368 | |
Other | 192 | 141 | 372 | 296 | |
Interchange income | 203 | 170 | 359 | 313 | |
Net gains on sales of loans | [1] | 46 | 12 | 65 | 29 |
Net gains (losses) on equity securities | [1] | 158 | (47) | 261 | (168) |
Net losses on sale of securities available-for-sale | [1] | (9) | (1) | ||
Wire transfer fees | [1] | 108 | 77 | 225 | 149 |
Loan servicing fees | [1] | 65 | 25 | 97 | 48 |
Bank owned life insurance | [1] | 833 | 775 | 1,655 | 1,549 |
Other | 27 | 22 | 54 | 43 | |
Total noninterest income | $ 1,942 | $ 1,341 | $ 3,680 | $ 2,627 | |
[1] | Not within scope of ASC 606. |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ in Thousands | Jan. 11, 2018 | Jun. 30, 2015 | Jun. 30, 2019 |
Subordinated Debentures (Details) [Line Items] | |||
Proceeds from Issuance of Debt | $ 1,286 | ||
Fixed-to-floating Rate Subordinated Notes [Member] | |||
Subordinated Debentures (Details) [Line Items] | |||
Percentage Rate Added to Libor | 2.84% | ||
Proceeds from Issuance of Debt | $ 75,000 | $ 50,000 | |
Debt Instrument, Term | 5 years | ||
Debt Instrument, Maturity Date | Feb. 1, 2023 | Jul. 1, 2025 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.20% | 5.75% | |
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR rate plus 284 basis points | three month LIBOR rate plus 393 basis points | |
Debt Issuance Cost | $ 1,254 | 185 | |
Subordinated Debt from Trust [Member] | |||
Subordinated Debentures (Details) [Line Items] | |||
Value of subordinated debentures received by Trust | $ 5,000 | ||
Percentage Rate Added to Libor | 2.85% | ||
Floating interest rate on subordinated debentures | 5.43% | ||
Proceeds from Issuance of Debt | $ 5,200 | ||
Debt Instrument, Maturity Date | Jan. 23, 2034 |
Subordinated Debentures (Deta_2
Subordinated Debentures (Details) - Schedule of Subordinated Borrowing - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Subordinated Borrowing [Abstract] | ||
Issuance Date | Dec. 19, 2003 | Dec. 19, 2003 |
Securities Issued | $ 5,000 | $ 5,000 |
Liquidation Value | $1,000 per Capital Security | $1,000 per Capital Security |
Coupon Rate | Floating 3-month LIBOR + 285 Basis Points | Floating 3-month LIBOR + 285 Basis Points |
Maturity | Jan. 23, 2034 | Jan. 23, 2034 |
Redeemable by Issuer Beginning | Jan. 23, 2009 | Jan. 23, 2009 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Gross Amounts Recognized, Assets | $ 128 | $ 1,159 |
Gross Amounts Offset in the Statement of Financial Position, Assets | ||
Net Amounts of Assets Presented in the Statement of Financial Position, Assets | 128 | 1,159 |
Financial Instruments Recognized, Assets | ||
Cash or Financial Instrument Collateral, Assets | 128 | |
Net Amount, Assets | $ 1,159 |