Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 06, 2019 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 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 | 816-8900 | |
Entity Information, Former Legal or Registered Name | N/A | |
Entity Common Stock, Shares Outstanding | 35,374,845 | |
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 | Q3 | |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 54,792 | $ 39,161 |
Interest-bearing deposits with banks | 139,217 | 133,205 |
Cash and cash equivalents | 194,009 | 172,366 |
Securities available-for-sale | 425,849 | 412,034 |
Equity securities | 11,231 | 11,460 |
Loans held-for-sale | 33,245 | |
Loans receivable | 5,110,471 | 4,541,092 |
Less: Allowance for loan losses | 38,771 | 34,954 |
Net loans receivable | 5,071,700 | 4,506,138 |
Investment in restricted stock, at cost | 27,946 | 31,136 |
Bank premises and equipment, net | 19,754 | 19,062 |
Accrued interest receivable | 21,024 | 18,214 |
Bank owned life insurance | 137,048 | 113,820 |
Right of use operating lease assets | 15,789 | |
OREO | 907 | |
Goodwill | 162,574 | 145,909 |
Core deposit intangibles | 5,800 | 1,737 |
Other assets | 34,393 | 30,216 |
Total assets | 6,161,269 | 5,462,092 |
Deposits: | ||
Noninterest-bearing | 828,190 | 768,584 |
Interest-bearing | 3,923,044 | 3,323,508 |
Total deposits | 4,751,234 | 4,092,092 |
Borrowings | 512,456 | 600,001 |
Subordinated debentures (net of unamortized debt issuance costs of $1,353 and $1,599, respectively) | 128,802 | 128,556 |
Operating lease liabilities | 17,148 | |
Other liabilities | 31,469 | 27,516 |
Total liabilities | 5,441,109 | 4,848,165 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock: Authorized 5,000,000 shares | ||
Common stock, no par value: Authorized 50,000,000 shares; issued 37,668,785 shares at September 30, 2019 and 34,392,464 shares at December 31, 2018; outstanding 35,364,845 shares at September 30, 2019 and 32,328,542 at December 31, 2018 | 468,571 | 412,546 |
Additional paid-in capital | 20,450 | 15,542 |
Retained earnings | 254,159 | 211,345 |
Treasury stock, at cost 2,303,940 common shares at September 30, 2019 and 2,063,922 at December 31, 2018 | (21,892) | (16,717) |
Accumulated other comprehensive loss | (1,128) | (8,789) |
Total stockholders' equity | 720,160 | 613,927 |
Total liabilities and stockholders' equity | $ 6,161,269 | $ 5,462,092 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Subordinated debentures, debt issuance costs | $ 1,353 | $ 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 | 37,668,785 | 34,392,464 |
Common stock, shares outstanding | 35,364,845 | 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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Interest income | |||||
Interest and fees on loans | $ 66,796 | $ 51,699 | $ 190,646 | $ 148,218 | |
Interest and dividends on investment securities: | |||||
Taxable | 1,916 | 2,154 | 7,431 | 6,191 | |
Tax-exempt | 897 | 785 | 3,105 | 2,377 | |
Dividends | 502 | 530 | 1,369 | 1,517 | |
Interest on federal funds sold and other short-term investments | 278 | 183 | 925 | 607 | |
Total interest income | 70,389 | 55,351 | 203,476 | 158,910 | |
Interest expense | |||||
Deposits | 17,351 | 10,681 | 49,298 | 27,538 | |
Borrowings and subordinated debentures | 4,632 | 4,708 | 15,290 | 14,318 | |
Total interest expense | 21,983 | 15,389 | 64,588 | 41,856 | |
Net interest income | 48,406 | 39,962 | 138,888 | 117,054 | |
Provision for loan losses | 2,000 | 1,100 | 7,600 | 20,000 | |
Net interest income after provision for loan losses | 46,406 | 38,862 | 131,288 | 97,054 | |
Noninterest income | |||||
Income on bank owned life insurance | [1] | 915 | 751 | 2,570 | 2,300 |
Net gains on sale of loans held-for-sale | [1] | 278 | 2 | 343 | 31 |
Deposit, loan and other income | 1,116 | 676 | 2,816 | 1,893 | |
Net gains (losses) on equity securities | 79 | (157) | 340 | (325) | |
Net losses on sales of securities available-for-sale | [1] | (279) | (280) | ||
Total noninterest income | 2,109 | 1,272 | 5,789 | 3,899 | |
Noninterest expenses | |||||
Salaries and employee benefits | 12,420 | 10,174 | 36,168 | 29,575 | |
Occupancy and equipment | 2,480 | 2,137 | 7,332 | 6,311 | |
FDIC insurance | (364) | 735 | 1,216 | 2,350 | |
Professional and consulting | 1,499 | 891 | 4,078 | 2,439 | |
Marketing and advertising | 473 | 192 | 1,080 | 736 | |
Data processing | 1,058 | 1,102 | 3,352 | 3,341 | |
Merger expenses | 191 | 375 | 8,084 | 399 | |
Loss on extinguishment of debt | 1,047 | ||||
Amortization of core deposit intangibles | 340 | 145 | 1,068 | 483 | |
Other components of net periodic pension expense | 29 | 7 | 86 | 21 | |
Other expenses | 2,253 | 2,372 | 6,520 | 6,474 | |
Total noninterest expenses | 20,379 | 18,130 | 70,031 | 52,129 | |
Income before income tax expense | 28,136 | 22,004 | 67,046 | 48,824 | |
Income tax expense | 6,440 | 2,102 | 14,434 | 7,144 | |
Net income | $ 21,696 | $ 19,902 | $ 52,612 | $ 41,680 | |
Earnings per common share: | |||||
Basic | $ 0.61 | $ 0.62 | $ 1.49 | $ 1.30 | |
Diluted | $ 0.61 | $ 0.61 | $ 1.48 | $ 1.29 | |
[1] | Not within scope of ASC 606. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,696 | $ 19,902 | $ 52,612 | $ 41,680 |
Unrealized gains and losses: | ||||
Unrealized holding gains (losses) on available-for-sale securities arising during the period | 2,236 | (2,840) | 11,821 | (9,639) |
Tax effect | (584) | 729 | (3,061) | 2,466 |
Net of tax | 1,652 | (2,111) | 8,760 | (7,173) |
Reclassification adjustment for realized losses included in net income | 279 | 280 | ||
Tax effect | (62) | (62) | ||
Net of tax | 217 | 218 | ||
Unrealized (losses) gains on cash flow hedges | (49) | 14 | (977) | 1,108 |
Tax effect | 27 | (5) | 309 | (312) |
Net of tax | (22) | 9 | (668) | 796 |
Reclassification adjustment for gains included in net income | (204) | (563) | ||
Tax effect | 46 | 125 | ||
Net of tax | (158) | (438) | ||
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 | 91 | 269 | 274 |
Tax effect | (26) | (26) | (76) | (77) |
Net of tax | 64 | 65 | 193 | 197 |
Total other comprehensive income (loss) | 1,753 | (2,037) | 7,661 | (6,011) |
Total comprehensive income | $ 23,449 | $ 17,865 | $ 60,273 | $ 35,669 |
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 | 41,680 | 41,680 | |||||
Other comprehensive income (loss), net of tax | (6,011) | (6,011) | |||||
Cash dividends declared on common stock ($0.27 per share) | (7,258) | (7,258) | |||||
Exercise of stock options (28,937 shares) | 524 | 524 | |||||
Net performance units issued (26,517 shares) | (819) | (819) | |||||
Stock-based compensation expense | 1,318 | 1,318 | |||||
Balance at Sep. 30, 2018 | 412,546 | 14,625 | 195,101 | (16,717) | (10,684) | 594,871 | |
Balance at Jun. 30, 2018 | 412,546 | 13,756 | 177,619 | (16,717) | (8,647) | 578,557 | |
Net income | 19,902 | 19,902 | |||||
Other comprehensive income (loss), net of tax | (2,037) | (2,037) | |||||
Cash dividends declared on common stock ($0.27 per share) | (2,420) | (2,420) | |||||
Exercise of stock options (28,937 shares) | 272 | 272 | |||||
Stock-based compensation expense | 597 | 597 | |||||
Balance at Sep. 30, 2018 | 412,546 | 14,625 | 195,101 | (16,717) | (10,684) | 594,871 | |
Balance at Dec. 31, 2018 | 412,546 | 15,542 | 211,345 | (16,717) | (8,789) | 613,927 | |
Net income | 52,612 | 52,612 | |||||
Other comprehensive income (loss), net of tax | 7,661 | 7,661 | |||||
Cash dividends declared on common stock ($0.27 per share) | (9,798) | (9,798) | |||||
Exercise of stock options (28,937 shares) | 265 | 265 | |||||
Repurchase of 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 | 1,947 | 1,947 | |||||
Balance at Sep. 30, 2019 | 468,571 | 20,450 | 254,159 | (21,892) | (1,128) | 720,160 | |
Balance at Jun. 30, 2019 | 468,571 | 19,777 | 235,649 | (21,892) | (2,881) | 699,224 | |
Net income | 21,696 | 21,696 | |||||
Other comprehensive income (loss), net of tax | 1,753 | 1,753 | |||||
Cash dividends declared on common stock ($0.27 per share) | (3,186) | (3,186) | |||||
Stock-based compensation expense | 673 | 673 | |||||
Balance at Sep. 30, 2019 | $ 468,571 | $ 20,450 | $ 254,159 | $ (21,892) | $ (1,128) | $ 720,160 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash dividends declared on common stock (in Dollars per share) | $ 0.09 | $ 0.075 | $ 0.27 | $ 0.225 |
Exercise of stock options, shares | 55,881 | 28,937 | 102,378 | |
Restricted stock and performance units grants, shares | 11,979 | 64,459 | 23,018 | |
Restricted stock units, shares | $ 4,904 | |||
Net performance units issued | 26,517 | 42,672 | ||
Repurchase of treasury stock | 240,018 | |||
Greater Hudson Bank [Member] | ||||
Stock issued in acquisition | 3,032,496 | |||
Boefly [Member] | ||||
Stock issued in acquisition | 119,008 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Cash flows from operating activities | |||
Net income | $ 52,612 | $ 41,680 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of premises and equipment | 2,333 | 2,336 | |
Provision for loan losses | 7,600 | 20,000 | |
Amortization of intangibles | 1,068 | 483 | |
Net accretion of loans | (3,790) | (969) | |
Accretion on bank premises | (65) | (46) | |
Accretion on deposits | (917) | (46) | |
Amortization (accretion) on borrowings | 166 | (98) | |
Stock-based compensation expense | 2,143 | 499 | |
Losses on sales of investment securities, net | [1] | 280 | |
(Gains) losses on equity securities, net | (340) | 325 | |
Gains on sales of loans held-for-sale, net | (343) | (31) | |
Loans originated for resale | (11,807) | (2,206) | |
Proceeds from sale of loans held-for sale | 10,552 | 2,337 | |
Net loss on sale of other real estate owned | 192 | ||
Loss on extinguishment of debt | 1,047 | ||
Increase in cash surrender value of bank owned life insurance | (2,570) | (1,715) | |
Amortization of premiums and accretion of discounts on investments securities, net | 3,069 | 2,577 | |
Amortization of subordinated debt issuance costs | 246 | 250 | |
Increase in accrued interest receivable | (376) | (2,220) | |
Net change in operating leases | 1,359 | ||
Decrease in other assets | 2,483 | 42 | |
(Decrease) increase in other liabilities | (1,396) | 3,945 | |
Net cash provided by operating activities | 63,354 | 67,335 | |
Investment securities available-for-sale: | |||
Purchases | (203,494) | (114,457) | |
Sales | 183,728 | ||
Maturities, calls and principal repayments | 136,375 | 115,757 | |
Sales of equity securities | 569 | ||
Net redemptions of restricted investment in bank stocks | 3,190 | 1,011 | |
Payments on loans held-for-sale | 159 | ||
Net increase in loans | (239,012) | (283,283) | |
Purchases of premises and equipment | (1,336) | (1,629) | |
Purchases of bank owned life insurance | (10,000) | ||
Proceeds from sale of other real estate owned | 884 | ||
Cash and cash equivalents acquired in acquisition | 13,741 | ||
Cash consideration paid in acquisition | (2,530) | ||
Net cash used in investing activities | (118,769) | (281,558) | |
Cash flows from financing activities | |||
Net increase in deposits | 243,949 | 193,683 | |
Increase in subordinated debentures | 73,525 | ||
Advances of Federal Home Loan Bank ("FHLB") borrowings | 1,576,000 | 1,256,000 | |
Repayments of FHLB borrowings | (1,728,944) | (1,296,000) | |
Repurchase of stock | (5,175) | ||
Cash dividends paid on common stock | (9,037) | (7,243) | |
Proceeds from exercise of stock options | 265 | 524 | |
Net cash provided by financing activities | 77,058 | 220,489 | |
Net change in cash and cash equivalents | 21,643 | 6,266 | |
Cash and cash equivalents at beginning of period | 172,366 | 149,582 | |
Cash and cash equivalents at end of period | 194,009 | 155,848 | |
Cash payments for: | |||
Interest paid on deposits and borrowings | 67,443 | 40,200 | |
Income taxes | 13,199 | 2,507 | |
Supplemental disclosures of noncash investing activities | |||
Transfer of loans to other real estate owned | 907 | 538 | |
Transfer of loans held-for-investment to loans held-for-sale | 31,647 | 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 | 9 Months Ended |
Sep. 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 marketplace). 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 nine months ended September 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 | 9 Months Ended |
Sep. 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.” ( by ASU 2018-19, ASU 2019-04 and ASU 2019-05). ASU 2016- As previously disclosed, 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 recently completed reconciliation, testing and validation of our historical data, including balances, charge-offs and recoveries for the last 5 years. We have identified distinct loan segments and are in the process of evaluating and reviewing loss drivers, data fits and modeling. 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. 9 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1a. Authoritative Accounting Guidance – (continued) ASU No. 2017-08, “ Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities 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. ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” |
Business Combination
Business Combination | 9 Months Ended |
Sep. 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. As of September 30, 2019 there were no changes to the provisional fair value adjustments recorded on January 2, 2019. 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. 11 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 2. Business Combination – (continued) 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 nine months ended September 30, 2019, merger expenses related to the GHB acquisition were $-0- and $7.6 million, respectively. BoeFly, LLC On May 31, 2019, ConnectOne Bank, through a wholly owned subsidiary, completed the acquisition of certain assets of New York/Boston-based BoeFly, LLC, which operates an online business lending marketplace connecting small- to medium-sized businesses, largely related to the franchise business sector, 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 the assets of BoeFly, LLC were 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 nine months ended September 30, 2019. Pending Acquisition with Bancorp of New Jersey, Inc. On August 15, 2019, Parent Corporation and Bancorp of New Jersey, Inc., a New Jersey corporation (“BKJ”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which BKJ will merge with and into Parent Corporation (the “Merger”). The Merger Agreement was approved by the Boards of Directors of each of Parent Corporation and BKJ at meetings held on August 15, 2019. Following the Merger, BKJ’s wholly owned bank subsidiary, Bank of New Jersey, will merge with and into the Bank, with the Bank as the surviving bank (the “Bank Merger” and, together with the Merger, the “Transaction”). Under the terms of the Merger Agreement, shareholders of BKJ will have the opportunity to elect to receive either $16.25 or 0.780 of a share of Parent Corporation’s common stock for each share of BKJ common stock, subject to proration and allocation procedures set forth in the Merger Agreement. Closing of the Merger is subject to customary conditions, including, among others, approval of the Merger Agreement by shareholders of BKJ and Parent Corporation, receipt of required regulatory approvals, and approval for listing on NASDAQ with respect to the Parent Corporation common stock to be issued in the Merger. The Merger is expected to close in the first quarter of 2020. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, (in thousands, except for per share data) 2019 2018 2019 2018 Net income $ 21,696 $ 19,902 $ 52,612 $ 41,680 Earnings allocated to participating securities (117 ) (42 ) (176 ) (98 ) Income attributable to common stock $ 21,579 $ 19,860 $ 52,436 $ 41,582 Weighted average common shares outstanding, including participating securities 35,307 32,167 35,317 32,127 Weighted average participating securities (141 ) (25 ) (65 ) (34 ) Weighted average common shares outstanding 35,166 32,142 35,252 32,093 Incremental shares from assumed conversions of options, performance units and non-participating restricted shares 97 82 220 Weighted average common and equivalent shares outstanding 35,263 32,319 35,334 32,313 Earnings per common share: Basic $ 0.61 $ 0.62 $ 1.49 $ 1.30 Diluted 0.61 0.61 1.48 1.29 There were no antidilutive share equivalents as of September 30, 2019 and September 30, 2018. |
Securities Available-for-Sale
Securities Available-for-Sale | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available-for-Sale | Note 4. Securities Available-for-Sale – (continued) The following table summarizes the amortized cost and fair value of securities available-for-sale at September 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2019 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 23,712 $ 824 $ (1 ) $ 24,535 Residential mortgage pass-through securities 215,378 1,286 (859 ) 215,805 Commercial mortgage pass-through securities 5,017 73 - 5,090 Obligations of U.S. states and political subdivisions 140,870 3,222 (436 ) 143,656 Corporate bonds and notes 28,135 308 (193 ) 28,250 Asset-backed securities 6,132 3 (41 ) 6,094 Certificates of deposit 148 2 - 150 Other securities 2,269 - - 2,269 Total securities available-for-sale $ 421,661 $ 5,718 $ (1,530 ) $ 425,849 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair 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 $119.6 million and $151.5 million at September 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 September 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. 14 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 4. Securities Available-for-Sale – (continued) The following table presents information for investments in securities available-for-sale at September 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. September 30, 2019 Amortized Cost Fair Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 4,309 $ 4,333 Due after one year through five years 28,344 28,503 Due after five years through ten years 24,060 24,757 Due after ten years 142,284 145,092 Residential mortgage pass-through securities 215,378 215,804 Commercial mortgage pass-through securities 5,017 5,091 Other securities 2,269 2,269 Total securities available-for-sale $ 421,661 $ 425,849 Gross gains and losses from the sales of securities for periods presented were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in thousands) 2019 2018 2019 2018 Proceeds $ 33,432 $ - $ 183,728 $ - Gross gains on sales of securities 1 - 401 - Gross losses on sales of securities (280 ) - (681 ) - Net losses on sales of securities (279 ) - (280 ) - Tax provision on net losses 62 - 62 - Net losses on sales of securities, after tax $ (217 ) $ - $ (218 ) $ - 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. 15 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 4. Securities Available-For-Sale – (continued) Temporarily Impaired Securities The Company does not believe that any of the unrealized losses, which were comprised of 49 and 148 securities as of September 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 are 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 September 30, 2019 and at December 31, 2018. 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. 16 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 4. Securities Available-For-Sale – (continued) 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 September 30, 2019 and December 31, 2018: September 30, 2019 Total Less than 12 Months 12 Months or Longer Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 95 $ (1 ) $ - $ - $ 95 $ (1 ) Residential mortgage pass-through securities 110,586 (859 ) 47,169 (210 ) 63,417 (649 ) Obligations of U.S. states and political subdivisions 31,550 (436 ) 4,054 - 27,496 (436 ) Corporate bonds and notes 5,286 (193 ) 2,462 (38 ) 2,824 (155 ) Asset-backed securities 5,316 (41 ) 2,427 (7 ) 2,889 (34 ) Total temporarily impaired securities $ 152,833 $ (1,530 ) $ 56,112 $ (255 ) $ 96,721 $ (1,275 ) December 31, 2018 Total Less than 12 Months 12 Months or Longer Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized 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 | 9 Months Ended |
Sep. 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. 17 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 5. Derivatives – (continued) Interest rate swaps were entered into on June 4, 2019 and August 6, 2019 each with a notional amount of $50 million and in April 13, 2017, August 24, 2015, and December 30, 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 September 30, 2019, December 31, 2018 and September 30, 2018 are presented in the following table. September 30, 2019 December 31, 2018 September 30, 2018 (dollars in thousands) Notional amount $ 175,000 $ 75,000 $ 100,000 Weighted average pay rates 1.83 % 1.70 % 1.68 % Weighted average receive rates 2.53 % 2.19 % 2.12 % Weighted average maturity 1.5 years 2.0 years 1.7 years Fair value $ (380 ) $ 1,159 $ 1,906 Interest expense recorded on these swap transactions totaled approximately $(204,000) and $(563,000) for the three and nine months ended September 30, 2019, respectively, and $(173,000) and $(326,000) for the three and nine months ended September 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: Nine Months Ended September 30, 2019 Amount of gain (loss) recognized in OCI (Effective Portion) Amount of (gain) loss reclassified from OCI to interest income Amount of gain recognized in other Noninterest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ (976) $ (563) $ - Nine Months Ended September 30, 2018 Amount of gain (loss) recognized in OCI (Effective Portion) Amount of (gain) loss reclassified from OCI to interest income Amount of gain recognized in other Noninterest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 796 $ - $ - 18 The following table reflects the cash flow hedges included in the consolidated statements of condition as of September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Notional Amount Fair Value Notional Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 175,000 $ (380) $ 75,000 $ 1,159 |
Loans and the Allowance for Loa
Loans and the Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans and the Allowance for Loan Losses | Note 6. Loans and the Allowance for Loan Losses Loans receivable September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 1,113,743 $ 988,758 Commercial real estate 3,030,816 2,778,167 Commercial construction 646,172 465,389 Residential real estate 322,307 309,991 Consumer 2,435 2,594 Gross loans 5,115,473 4,544,899 Net deferred loan fees (5,002 ) (3,807 ) Total loans receivable $ 5,110,471 $ 4,541,092 At September 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. Loans held-for-sale - September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 2,294 $ - Commercial real estate 29,353 - Residential real estate 1,598 - Total carrying amount $ 33,245 $ - Purchased Credit-Impaired Loans - September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 5,459 $ 2,509 Commercial real estate 1,123 - $ 6,582 $ 2,509 For those purchased loans disclosed above, the Company did not increase the allowance for loan losses during either the three and nine months ended September 30, 2019 and September 30, 2018. There were no reversals from the allowance for loan losses during the three and nine months ended September 30, 2019 and September 30, 2018. 20 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) The following table presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for three and nine months ended September 30, 2019 and September 30, 2018: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (dollars in thousands) Balance at June 30 $ 1,637 $ 1,259 Accretion of income (167 ) (63 ) Balance at September 30 $ 1,470 $ 1,196 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (dollars in thousands) Balance at January 1 $ 1,134 $ 1,387 New loans purchased 1,286 - Accretion of income (950 ) (191 ) Balance at September 30 $ 1,470 $ 1,196 Loans Receivable on Nonaccrual Status - September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 33,781 $ 29,340 Commercial real estate 7,529 15,135 Commercial construction 7,101 2,934 Residential real estate 2,910 4,446 Total nonaccrual loans $ 51,321 $ 51,855 Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and loans individually evaluated for impairment. 21 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) Credit Quality Indicators September 30, 2019 Pass Special Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 1,040,210 $ 23,219 $ 50,314 $ - $ 1,113,743 Commercial real estate 3,007,226 6,418 17,172 - 3,030,816 Commercial construction 629,778 1,918 14,475 - 646,172 Residential real estate 318,754 - 3,553 - 322,307 Consumer 2,434 - - 2,435 Gross loans $ 4,998,403 $ 31,555 $ 85,515 $ - $ 5,115,473 December 31, 2018 Pass Special 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 - - 2,594 Gross loans $ 4,456,187 $ 21,460 $ 67,252 $ - $ 4,544,899 22 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) The following table provides an analysis of the impaired loans by segment as of September 30, 2019 and December 31, 2018: September 30, 2019 Recorded Investment Unpaid Principal Balance Related Allowance No related allowance recorded (dollars in thousands) Commercial $ 41,030 $ 87,716 Commercial real estate 12,136 12,301 Commercial construction 6,079 6,085 Residential real estate 1,533 1,897 Total (no related allowance) $ 60,778 $ 107,999 With an allowance recorded Commercial real estate $ 388 $ 388 $ 23 Commercial construction 6,467 6,467 1,339 Residential real estate Total (with allowance) $ 7,119 $ 7,119 $ 1,386 Total Commercial $ 41,030 $ 87,716 $ - Commercial real estate 12,524 12,689 23 Commercial construction 12,546 12,552 1,339 Residential real estate 1,797 2,161 Total $ 67,897 $ 115,118 $ 1,386 December 31, 2018 Recorded Investment Unpaid Principal Balance Related 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 $ 1,748 $ 1,754 $ 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 Total $ 59,932 $ 115,046 $ 23 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) 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 nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Impaired loans (no allowance) Commercial $ 41,332 $ 570 $ 31,769 $ 36 $ 41,731 $ 733 $ 39,132 $ 102 Commercial real estate 12,178 79 21,557 105 12,213 221 21,714 475 Commercial construction 6,044 58 10,297 92 6,047 138 11,718 387 Residential real estate 1,552 - 2,249 - 1,579 19 2,304 - Total $ 61,106 $ $ 65,872 $ $ 61,570 $ 1,111 $ 74,868 $ 964 Impaired loans (allowance): Commercial real estate $ 392 $ - $ 8,534 $ 11 $ 393 $ - $ 8,544 $ 34 Commercial construction 6,439 220 - - 6,378 220 - - Residential real estate - 255 9 267 - Total $ 7,083 $ $ 8,798 $ $ 7,026 $ 229 $ 8,811 $ 34 Total impaired loans: Commercial $ 41,332 $ 570 $ 31,769 $ 36 $ 41,731 $ 733 $ 39,132 $ 102 Commercial real estate 12,570 79 30,091 116 12,606 221 30,258 509 Commercial construction 12,483 278 10,297 92 12,425 358 11,718 387 Residential real estate 1,804 2,513 - 1,834 28 2,571 - Total $ 68,189 $ $ 74,760 $ $ 68,596 $ 1,340 $ 83,679 $ 998 Included in impaired loans at September 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. 24 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) Aging Analysis - September 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 5,812 $ 1,438 $ 3,098 $ 33,781 $ 44,129 $ 1,069,614 $ 1,113,743 Commercial real estate - 689 - 7,529 8,218 3,022,598 3,030,816 Commercial construction - - - 7,101 7,101 639,071 646,172 Residential real estate 698 - - 2,910 3,608 318,699 322,307 Consumer - - - - - 2,435 2,435 Total $ 6,510 $ 2,127 $ 3,098 $ 51,321 $ 63,056 $ 5,052,417 $ 5,115,473 Included in the 90 days or greater past due and still accruing category as of September 30, 2019 are purchased credit-impaired loans, net of fair value marks, which accretes income per the valuation at date of acquisition. December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Gross Loans (dollars in thousands) 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 Included in the 90 days or greater past due and still accruing category as of December 31, 2018 are purchased credit-impaired loans, net of fair value marks, which accretes income per the valuation at date of acquisition. 25 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) 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: September 30, 2019 Commercial Commercial real estate Commercial construction Residential real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 23 $ 1,339 $ 24 $ - $ - $ 1,386 Collectively evaluated for impairment 8,125 19,987 5,836 1,737 4 496 36,185 Acquired portfolio 200 1,000 - - - - 1,200 Acquired with deteriorated credit quality - - - - - - - Total $ 8,325 $ 21,010 $ 7,175 $ 1,761 $ $ $ 38,771 Gross loans Individually evaluated for impairment $ 41,030 $ 12,524 $ 12,545 $ 1,797 $ $ 67,896 Collectively evaluated for impairment 977,895 2,645,903 597,352 276,457 2,162 4,499,769 Acquired portfolio 89,359 371,266 36,275 44,053 273 541,226 Acquired with deteriorated credit quality 5,459 1,123 - - - 6,582 Total $ 1,113,743 $ 3,030,816 $ 646,172 $ 322,307 $ 2,435 $ 5,115,473 December 31, 2018 Commercial Commercial real estate Commercial construction Residential 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 $ $ $ 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 26 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) 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 September 30, 2019 Commercial Commercial real estate Commercial construction Residential real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2019 $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Charge-offs - (387 ) - (557 ) (20 ) - (964 ) Recoveries 28 - - - 9 - 37 Provision (424 ) (88 ) 1,633 1,110 (244 ) 2,000 Balance at September 30, 2019 $ 8,325 $ 21,010 $ 7,175 $ 1,761 $ $ $ 38,771 Three Months Ended September 30, 2018 Commercial Commercial real estate Commercial construction Residential real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 Charge-offs - - - - (6 ) - (6 ) Recoveries 56 - - - 5 - 61 Provision for loan losses (22 ) 1,100 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ $ $ 34,749 27 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) Nine Months Ended September 30, 2019 Commercial Commercial real estate Commercial construction Residential 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 - (3,469 ) - (557 ) (20 ) - (4,046 ) Recoveries 214 30 - 3 16 - 263 Provision (1,764) 5,602 2,656 1,049 7,600 Balance at September 30, 2019 $ 8,325 $ 21,010 $ 7,175 $ 1,761 $ $ $ 38,771 Nine Months Ended September 30, 2018 Commercial Commercial real estate Commercial construction Residential 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 ) (7 ) - (17,091 ) Recoveries 87 - - - 5 - 92 Provision 18,695 1,116 (41 ) 20,000 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ $ $ 34,749 28 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 6. Loans and the Allowance for Loan Losses – (continued) 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, longer amortization of principal payments, maturity extension, 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. At September 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 September 30, 2019, TDRs totaled $51.5 million, of which $31.8 million were on nonaccrual status and $19.7 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 $1.4 million and $0.1 million of specific allowance as of September 30, 2019 and September 30, 2018, respectively. There were no charge-offs in connection with a loan modification at the time of modification during the three and nine months ended September 30, 2019. There were no TDRs for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2019. The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2019: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: (dollars in thousands) Commercial 8 $ 13,753 $ 13,753 Commercial real estate 2 2,635 2,635 Commercial construction 5,630 5,630 Total $ 22,018 $ 22,018 These 13 loan modifications included were maturity extensions. The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2018: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment TDRs (dollars in thousands) Commercial 31 $ 15,737 $ 15,737 Commercial real estate 2 209 209 Commercial construction 2 1,839 1,839 Residential real estate 2 454 454 Total $ 18,239 $ 18,239 Included in the commercial loan segment of the troubled debt restructurings are 27 taxi medallion loans totaling $11.2 million. All 27 taxi medallion loans included above were on nonaccrual status prior to modification, and remain on nonaccrual status post-modification. All loan modifications during the nine months ended September 30, 2018 included interest rate reductions and maturity extensions. |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments | 9 Months Ended |
Sep. 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: Level 2: Level 3: 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 September 30, 2019 and December 31, 2018: Securities Available-for-Sale and Equity Securities Derivatives 30 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) 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 September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities: Available-for-sale: Federal agency obligations $ 24,535 $ - $ 24,535 $ - Residential mortgage pass-through securities 215,805 - 215,805 - Commercial mortgage pass-through securities 5,090 - 5,090 - Obligations of U.S. states and political subdivision 143,656 - 134,475 9,181 Corporate bonds and notes 28,250 - 28,250 - Asset-backed securities 6,094 - 6,094 - Certificates of deposit 150 - 150 - Other securities 2,269 2,269 - - Total available-for-sale $ 425,849 $ 2,269 $ 414,399 $ 9,181 Equity securities 11,231 11,231 - - Total assets $ 437,080 $ 13,500 $ 414,399 $ 9,181 Liabilities Derivatives 380 - 380 - Total liabilities $ 380 $ - $ 380 $ - 31 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) December 31, 2018 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (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 nine months ended September 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 September 30, 2019 and December 31, 2018: Loans Held-for-Sale Other loans held-for-sale are carried at the lower of aggregate cost or estimated fair value. Fair value of these loans is determined based on the terms of the loan, such as interest rate, maturity date, reset term, as well as sales of similar assets (Level 3). 32 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) Impaired Loans For assets measured at fair value on a nonrecurring basis, the fair value measurements at September 30, 2019 and December 31, 2018 are as follows: Fair Value Measurements at Reporting Date Using Assets measured at fair value on a nonrecurring basis: Carrying Value at September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 365 $ - $ - $ 365 Commercial construction 5,128 - - 5,128 Residential real estate 240 - - 240 Fair Value Measurements at Reporting Date Using Assets measured at fair value on a nonrecurring basis: Carrying Value at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 1,481 $ - $ - $ 1,481 Residential real estate 231 - - 231 Impaired loans – 33 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) 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 nine months ended September 30, 2019 and for the year ended December 31, 2018: Municipal Securities (dollars in thousands) Beginning balance, January 1, 2019 $ 9,377 Principal paydowns (196 ) Ending balance, September 30, 2019 $ 9,181 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 September 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. September 30, 2019 Fair Value Valuation Techniques Unobservable Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,181 Discounted cash flows Discount rate 2.9 % December 31, 2018 Fair Value Valuation Techniques Unobservable Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,377 Discounted cash flows Discount rate 2.9 % 34 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) Nonrecurring basis : September 30, 2019 Fair Value Valuation Techniques Unobservable Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 365 Sales comparison approach Adjustment for differences between the comparable sales 0% to 20% [10%] Commercial construction 5,128 Sales comparison approach Adjustment for differences between the comparable sales -10% to 13% [2%] Residential real estate 240 Sales comparison approach Adjustment for differences between the comparable sales 0% to 7% [2%] December 31, 2018 Fair Value Valuation Techniques Unobservable Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 1,481 Sales comparison approach Adjustment for differences between the comparable sales 6% to 9% [8%] Residential real estate 231 Sales comparison approach Adjustment for differences between the comparable sales 0% to 10% [5%] 35 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) As of September 30, 2019 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement Fair Value Measurements Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) September 30, 2019 Financial assets: Cash and due from banks $ 194,009 $ 194,009 $ 194,009 $ - $ - Securities available-for-sale 425,849 425,849 2,269 414,399 9,181 Investment in restricted stocks 27,946 n/a n/a n/a n/a Equity securities 11,231 11,231 11,231 - - Net loans 5,071,700 5,087,076 - - 5,087,076 Loans held-for-sale 33,245 33,245 - 1,598 31,647 Accrued interest receivable 21,024 21,024 - 2,262 18,762 Financial liabilities: Noninterest-bearing deposits 828,190 828,190 828,190 - - Interest-bearing deposits 3,923,044 3,935,294 2,349,308 1,585,986 - Borrowings 512,456 514,331 - 514,331 - Subordinated debentures 128,802 137,790 - 137,790 - Derivatives 380 380 - 380 - Accrued interest payable 4,509 4,509 - 4,509 - 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 - 36 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) 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 | 9 Months Ended |
Sep. 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 non-owner 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, each net of taxes. The following table represents the reclassification out of accumulated other comprehensive (loss) income for the periods presented: Details about Accumulated Other Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Income Affected Line item in the Statement Where Net Income is Presented Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Sale of investment securities available for sale $ (279 ) $ - $ (280 ) $ - Net losses on sale of securities available-for-sale - 62 - Income tax benefit (217 ) - (218 ) - Net interest income on swaps 204 - 563 - Borrowings (46 ) - (125 ) - Income tax expense 158 - 438 - Amortization of pension plan net actuarial losses (90 ) (91 ) (269 ) (274 ) Other components of net periodic pension expense 76 77 Income tax benefit (64 ) (65 ) (193 ) (197 ) Total reclassification $ (123 ) $ (65 ) $ (27 ) $ (197 ) 37 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 8. Comprehensive Income – (continued) Accumulated other comprehensive loss at September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 December 31, 2018 (dollars in thousands) Investment securities available-for-sale, net of tax $ 3,138 $ (5,841 ) Cash flow hedge, net of tax (270 ) 837 Defined benefit pension and post-retirement plans, net of tax (3,996 ) (3,785 ) Total $ (1,128 ) $ (8,789 ) |
Premises and Equipment
Premises and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Lessee Disclosure [Abstract] | |
Premises and Equipment | Note 9. Premises and Equipment The Company leases certain premises and equipment under operating leases. At September 30, 2019, the Company had lease liabilities totaling $17.1 million and right-of-use assets totaling $15.8 million. As of September 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 nine months ended September 30, 2019 was $0.7 million and $2.3 million, respectively. Rent expense for the three and nine months ended September 30, 2018 prior to adoption of ASU 2016-02, was $0.6 million and $1.6 million, respectively. There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the nine months ended September 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: September 30, 2019 (dollars in thousands) Lease payments due: Less than 1 year $ 3,265 1 year through less than 2 years 2,887 2 years through less than 3 years 2,479 3 years through less than 4 years 2,133 4 years through 5 years 1,870 After 5 years 6,709 Total undiscounted cash flows 19,343 Impact of discounting (2,195 ) Total lease liability $ 17,148 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 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 September 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 September 30, 2019 are approximately 400,593. 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 recorded as incurred. Stock-based compensation expense was $0.7 million and $1.9 million for the three and nine months ended September 30, 2019, respectively, and $0.6 million and $1.3 million for the three and nine months ended September 30, 2018, respectively. Activity under the Company’s options for the nine months ended September 30, 2019 was as follows: Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 108,463 $ 8.35 Granted - - Exercised (28,937 ) 8.96 Forfeited/cancelled/expired - - Outstanding at September 30, 2019 79,526 8.13 2.3 $ 1,119,313 Exercisable at September 30, 2019 79,526 $ 8.13 2.3 $ 1,119,313 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 September 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 September 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 nine months ended September 30, 2019 was as follows: Nonvested Shares Weighted- Average Grant Date Fair Value Nonvested at December 31, 2018 68,428 $ 23.04 Granted 183,467 21.40 Vested (52,629 ) 21.98 Forfeited/cancelled/expired - - Nonvested September 30, 2019 199,266 $ 21.81 39 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 10. Stock Based Compensation – (continued) As of September 30, 2019, there was approximately $1,233,743 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 11,979 restricted shares were granted during the three months ended September 30, 2019. A summary of the status of unearned performance unit awards and the change during the period is presented in the table below: Units (expected) Units (maximum) Weighted Average Grant Date Fair 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 September 30, 2019 92,512 120,212 $ 24.27 At September 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 September 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 nine months ended September 30, 2019 were 26,517 shares. At September 30, 2019, compensation cost of approximately $0.8 million related to non-vested performance units not yet recognized is expected to be recognized over a weighted-average period of 1.7 years. A total of 35,636 performance units were awarded during the nine months ended September 30, 2019. A summary of the status of unearned restricted stock units and the changes in restricted stock units during the period is presented in the table below: Units (expected) Weighted Average Grant Date Fair Value Unearned at December 31, 2018 29,423 $ 31.35 Awarded 53,454 20.79 Vested (9,808 ) 21.28 Unearned at September 30, 2019 73,069 $ 24.98 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 nine months ended September 30, 2019, a total of 4,904 shares were netted out to satisfy tax obligations, resulting in net issuance of 4,904 shares. At September 30, 2019, compensation cost of approximately $1.4 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 nine months ended September 30, 2019. |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost | 9 Months Ended |
Sep. 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 Ended September 30, 2019 Three Months Ended September 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 113 106 Expected return on plan assets (174 ) (190 ) Net amortization 91 Total periodic pension cost $ $ 7 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 339 320 Expected return on plan assets (522 ) (573 ) Net amortization 274 Total periodic pension cost $ $ 21 Contributions The Company did not make a contribution to the Pension Trust during the nine months ended September 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 | 9 Months Ended |
Sep. 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: September 30, 2019 December 31, 2018 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 512,456 2.25 % $ 600,001 2.59 % By remaining period to maturity: Less than 1 year $ 392,169 2.21 % $ 405,000 2.57 % 1 year through less than 2 years 57,000 2.27 % 110,000 2.75 % 2 years through less than 3 years 28,338 2.15 % 60,000 2.27 % 3 years through less than 4 years 32,421 2.82 % - - 4 years through less than 5 years - - - - After 5 years 2,898 2.43 % 25,000 2.92 % Total FHLB borrowings 512,826 2.25 % 600,000 2.59 % Fair value (discount) premium (370 ) FHLB borrowings, net $ 512,456 $ 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 September 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 September 30, 2019 the Company had remaining borrowing capacity of approximately $1.1 billion at FHLB. In June of 2019, the Corporation extinguished $65 million of FHLBNY advances with a weighted average rate of 3.29 percent and a weighted average maturity of 1.1 years. Of that total $40 million of those extinguished advances were putable at the option of the FHLBNY. A pre-tax prepayment penalty of $1.0 million associated with the extinguishment was recorded to noninterest expense. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 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 The Company, using a modified retrospective transition approach, determined that there will neither be a 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. 42 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 13. Revenue Recognition – (continued) 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 nine months ended September 30, 2019 and 2018. Items outside of ASC 606 are noted as such. Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 354 $ 222 Other 184 186 Interchange income 199 152 Net gains on sales of loans (1) 278 2 Net gains (losses) on equity securities (1) 79 (157 ) Net losses on sale of securities available-for-sale (1) (279 ) - Wire transfer fees (1) 128 73 Loan servicing fees (1) 216 16 Bank owned life insurance (1) 915 751 Other Total noninterest income $ 2,109 $ 1,272 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 947 $ 590 Other 556 482 Interchange income 558 465 Net gains on sales of loans (1) 343 31 Net gains (losses) on equity securities (1) 340 (325 ) Net losses on sale of securities available-for-sale (1) (280 ) - Wire transfer fees (1) 353 222 Loan servicing fees (1) 313 64 Bank owned life insurance (1) 2,570 2,300 Other Total noninterest income $ 5,789 $ 3,899 (1) Not within scope of ASC 606. 43 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 13. Revenue Recognition – (continued) A description of the Company’s revenue streams accounted for under ASC 606 is as follows: Service Charges on Deposit Accounts Interchange Income Gains/Losses on Sales of OREO |
Subordinated Debentures
Subordinated Debentures | 9 Months Ended |
Sep. 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 September 30, 2019 was 5.12%. 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 September 30, 2019 and December 31, 2018. Issuance Date Securities Issued Liquidation Value Coupon Rate Maturity Redeemable by 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 September 30, 2019, unamortized costs related to this debt issuance were approximately $136,000. 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 September 30, 2019, unamortized costs related to this debt issuance were approximately $1,217,000. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Note 15. Offsetting Assets and Liabilities Certain financial instrument-related assets and liabilities may, under GAAP, be offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements, although the Company has elected to disclose such arrangements on a gross basis on its 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 September 30, 2019 and December 31, 2018: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Recognized Cash or Financial Instrument Collateral Net Amount (dollars in thousands) September 30, 2019 Liabilities: Interest rate swaps $ $ - $ $ - $ $ - 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) | 9 Months Ended |
Sep. 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.” ( by ASU 2018-19, ASU 2019-04 and ASU 2019-05). ASU 2016- As previously disclosed, 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 recently completed reconciliation, testing and validation of our historical data, including balances, charge-offs and recoveries for the last 5 years. We have identified distinct loan segments and are in the process of evaluating and reviewing loss drivers, data fits and modeling. 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. 9 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 1a. Authoritative Accounting Guidance – (continued) ASU No. 2017-08, “ Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities 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. ASU 2018-14, “ Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 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] | 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 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, (in thousands, except for per share data) 2019 2018 2019 2018 Net income $ 21,696 $ 19,902 $ 52,612 $ 41,680 Earnings allocated to participating securities (117 ) (42 ) (176 ) (98 ) Income attributable to common stock $ 21,579 $ 19,860 $ 52,436 $ 41,582 Weighted average common shares outstanding, including participating securities 35,307 32,167 35,317 32,127 Weighted average participating securities (141 ) (25 ) (65 ) (34 ) Weighted average common shares outstanding 35,166 32,142 35,252 32,093 Incremental shares from assumed conversions of options, performance units and non-participating restricted shares 97 82 220 Weighted average common and equivalent shares outstanding 35,263 32,319 35,334 32,313 Earnings per common share: Basic $ 0.61 $ 0.62 $ 1.49 $ 1.30 Diluted 0.61 0.61 1.48 1.29 |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2019 (dollars in thousands) Securities available-for-sale Federal agency obligations $ 23,712 $ 824 $ (1 ) $ 24,535 Residential mortgage pass-through securities 215,378 1,286 (859 ) 215,805 Commercial mortgage pass-through securities 5,017 73 - 5,090 Obligations of U.S. states and political subdivisions 140,870 3,222 (436 ) 143,656 Corporate bonds and notes 28,135 308 (193 ) 28,250 Asset-backed securities 6,132 3 (41 ) 6,094 Certificates of deposit 148 2 - 150 Other securities 2,269 - - 2,269 Total securities available-for-sale $ 421,661 $ 5,718 $ (1,530 ) $ 425,849 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair 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 September 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. September 30, 2019 Amortized Cost Fair Value (dollars in thousands) Securities available-for-sale: Due in one year or less $ 4,309 $ 4,333 Due after one year through five years 28,344 28,503 Due after five years through ten years 24,060 24,757 Due after ten years 142,284 145,092 Residential mortgage pass-through securities 215,378 215,804 Commercial mortgage pass-through securities 5,017 5,091 Other securities 2,269 2,269 Total securities available-for-sale $ 421,661 $ 425,849 |
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 September 30, Nine Months Ended September 30, (dollars in thousands) 2019 2018 2019 2018 Proceeds $ 33,432 $ - $ 183,728 $ - Gross gains on sales of securities 1 - 401 - Gross losses on sales of securities (280 ) - (681 ) - Net losses on sales of securities (279 ) - (280 ) - Tax provision on net losses 62 - 62 - Net losses on sales of securities, after tax $ (217 ) $ - $ (218 ) $ - |
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 September 30, 2019 and December 31, 2018: September 30, 2019 Total Less than 12 Months 12 Months or Longer Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Investment Securities Available-for-Sale: Federal agency obligation $ 95 $ (1 ) $ - $ - $ 95 $ (1 ) Residential mortgage pass-through securities 110,586 (859 ) 47,169 (210 ) 63,417 (649 ) Obligations of U.S. states and political subdivisions 31,550 (436 ) 4,054 - 27,496 (436 ) Corporate bonds and notes 5,286 (193 ) 2,462 (38 ) 2,824 (155 ) Asset-backed securities 5,316 (41 ) 2,427 (7 ) 2,889 (34 ) Total temporarily impaired securities $ 152,833 $ (1,530 ) $ 56,112 $ (255 ) $ 96,721 $ (1,275 ) December 31, 2018 Total Less than 12 Months 12 Months or Longer Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized 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) | 9 Months Ended |
Sep. 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 September 30, 2019, December 31, 2018 and September 30, 2018 are presented in the following table. September 30, 2019 December 31, 2018 September 30, 2018 (dollars in thousands) Notional amount $ 175,000 $ 75,000 $ 100,000 Weighted average pay rates 1.83 % 1.70 % 1.68 % Weighted average receive rates 2.53 % 2.19 % 2.12 % Weighted average maturity 1.5 years 2.0 years 1.7 years Fair value $ (380 ) $ 1,159 $ 1,906 |
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: Nine Months Ended September 30, 2019 Amount of gain (loss) recognized in OCI (Effective Portion) Amount of (gain) loss reclassified from OCI to interest income Amount of gain recognized in other Noninterest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ (976) $ (563) $ - Nine Months Ended September 30, 2018 Amount of gain (loss) recognized in OCI (Effective Portion) Amount of (gain) loss reclassified from OCI to interest income Amount of gain recognized in other Noninterest income (Ineffective Portion) (dollars in thousands) Interest rate contracts $ 796 $ - $ - |
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 September 30, 2019 and December 31, 2018: September 30, 2019 December 31, 2018 Notional Amount Fair Value Notional Amount Fair Value (dollars in thousands) Interest rate swaps related to FHLB advances included in assets $ 175,000 $ (380) $ 75,000 $ 1,159 |
Loans and the Allowance for L_2
Loans and the Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans receivable September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 1,113,743 $ 988,758 Commercial real estate 3,030,816 2,778,167 Commercial construction 646,172 465,389 Residential real estate 322,307 309,991 Consumer 2,435 2,594 Gross loans 5,115,473 4,544,899 Net deferred loan fees (5,002 ) (3,807 ) Total loans receivable $ 5,110,471 $ 4,541,092 |
Loans held for sale [Table Text Block] | Loans held-for-sale - September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 2,294 $ - Commercial real estate 29,353 - Residential real estate 1,598 - Total carrying amount $ 33,245 $ - |
Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block] | Purchased Credit-Impaired Loans - September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 5,459 $ 2,509 Commercial real estate 1,123 - $ 6,582 $ 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 nine months ended September 30, 2019 and September 30, 2018: Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (dollars in thousands) Balance at June 30 $ 1,637 $ 1,259 Accretion of income (167 ) (63 ) Balance at September 30 $ 1,470 $ 1,196 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (dollars in thousands) Balance at January 1 $ 1,134 $ 1,387 New loans purchased 1,286 - Accretion of income (950 ) (191 ) Balance at September 30 $ 1,470 $ 1,196 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | Loans Receivable on Nonaccrual Status - September 30, 2019 December 31, 2018 (dollars in thousands) Commercial $ 33,781 $ 29,340 Commercial real estate 7,529 15,135 Commercial construction 7,101 2,934 Residential real estate 2,910 4,446 Total nonaccrual loans $ 51,321 $ 51,855 |
Financing Receivable Credit Quality Indicators [Table Text Block] | September 30, 2019 Pass Special Mention Substandard Doubtful Total (dollars in thousands) Commercial $ 1,040,210 $ 23,219 $ 50,314 $ - $ 1,113,743 Commercial real estate 3,007,226 6,418 17,172 - 3,030,816 Commercial construction 629,778 1,918 14,475 - 646,172 Residential real estate 318,754 - 3,553 - 322,307 Consumer 2,434 - - 2,435 Gross loans $ 4,998,403 $ 31,555 $ 85,515 $ - $ 5,115,473 December 31, 2018 Pass Special 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 - - 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 September 30, 2019 and December 31, 2018: September 30, 2019 Recorded Investment Unpaid Principal Balance Related Allowance No related allowance recorded (dollars in thousands) Commercial $ 41,030 $ 87,716 Commercial real estate 12,136 12,301 Commercial construction 6,079 6,085 Residential real estate 1,533 1,897 Total (no related allowance) $ 60,778 $ 107,999 With an allowance recorded Commercial real estate $ 388 $ 388 $ 23 Commercial construction 6,467 6,467 1,339 Residential real estate Total (with allowance) $ 7,119 $ 7,119 $ 1,386 Total Commercial $ 41,030 $ 87,716 $ - Commercial real estate 12,524 12,689 23 Commercial construction 12,546 12,552 1,339 Residential real estate 1,797 2,161 Total $ 67,897 $ 115,118 $ 1,386 December 31, 2018 Recorded Investment Unpaid Principal Balance Related 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 $ 1,748 $ 1,754 $ 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 Total $ 59,932 $ 115,046 $ |
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 nine months ended September 30, 2019 and 2018: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (dollars in thousands) Impaired loans (no allowance) Commercial $ 41,332 $ 570 $ 31,769 $ 36 $ 41,731 $ 733 $ 39,132 $ 102 Commercial real estate 12,178 79 21,557 105 12,213 221 21,714 475 Commercial construction 6,044 58 10,297 92 6,047 138 11,718 387 Residential real estate 1,552 - 2,249 - 1,579 19 2,304 - Total $ 61,106 $ $ 65,872 $ $ 61,570 $ 1,111 $ 74,868 $ 964 Impaired loans (allowance): Commercial real estate $ 392 $ - $ 8,534 $ 11 $ 393 $ - $ 8,544 $ 34 Commercial construction 6,439 220 - - 6,378 220 - - Residential real estate - 255 9 267 - Total $ 7,083 $ $ 8,798 $ $ 7,026 $ 229 $ 8,811 $ 34 Total impaired loans: Commercial $ 41,332 $ 570 $ 31,769 $ 36 $ 41,731 $ 733 $ 39,132 $ 102 Commercial real estate 12,570 79 30,091 116 12,606 221 30,258 509 Commercial construction 12,483 278 10,297 92 12,425 358 11,718 387 Residential real estate 1,804 2,513 - 1,834 28 2,571 - Total $ 68,189 $ $ 74,760 $ $ 68,596 $ 1,340 $ 83,679 $ 998 |
Past Due Financing Receivables [Table Text Block] | Aging Analysis - September 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Gross Loans (dollars in thousands) Commercial $ 5,812 $ 1,438 $ 3,098 $ 33,781 $ 44,129 $ 1,069,614 $ 1,113,743 Commercial real estate - 689 - 7,529 8,218 3,022,598 3,030,816 Commercial construction - - - 7,101 7,101 639,071 646,172 Residential real estate 698 - - 2,910 3,608 318,699 322,307 Consumer - - - - - 2,435 2,435 Total $ 6,510 $ 2,127 $ 3,098 $ 51,321 $ 63,056 $ 5,052,417 $ 5,115,473 Included in the 90 days or greater past due and still accruing category as of September 30, 2019 are purchased credit-impaired loans, net of fair value marks, which accretes income per the valuation at date of acquisition. December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due and Still Accruing Nonaccrual Total Past Due and Nonaccrual Current Gross Loans (dollars in thousands) 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: September 30, 2019 Commercial Commercial real estate Commercial construction Residential real estate Consumer Unallocated Total (dollars in thousands) ALLL Individually evaluated for impairment $ - $ 23 $ 1,339 $ 24 $ - $ - $ 1,386 Collectively evaluated for impairment 8,125 19,987 5,836 1,737 4 496 36,185 Acquired portfolio 200 1,000 - - - - 1,200 Acquired with deteriorated credit quality - - - - - - - Total $ 8,325 $ 21,010 $ 7,175 $ 1,761 $ $ $ 38,771 Gross loans Individually evaluated for impairment $ 41,030 $ 12,524 $ 12,545 $ 1,797 $ $ 67,896 Collectively evaluated for impairment 977,895 2,645,903 597,352 276,457 2,162 4,499,769 Acquired portfolio 89,359 371,266 36,275 44,053 273 541,226 Acquired with deteriorated credit quality 5,459 1,123 - - - 6,582 Total $ 1,113,743 $ 3,030,816 $ 646,172 $ 322,307 $ 2,435 $ 5,115,473 December 31, 2018 Commercial Commercial real estate Commercial construction Residential 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 $ $ $ 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 September 30, 2019 Commercial Commercial real estate Commercial construction Residential real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2019 $ 8,721 $ 21,485 $ 5,542 $ 1,208 $ 2 $ 740 $ 37,698 Charge-offs - (387 ) - (557 ) (20 ) - (964 ) Recoveries 28 - - - 9 - 37 Provision (424 ) (88 ) 1,633 1,110 (244 ) 2,000 Balance at September 30, 2019 $ 8,325 $ 21,010 $ 7,175 $ 1,761 $ $ $ 38,771 Three Months Ended September 30, 2018 Commercial Commercial real estate Commercial construction Residential real estate Consumer Unallocated Total (dollars in thousands) Balance at June 30, 2018 $ 8,960 $ 18,221 $ 4,812 $ 1,167 $ 3 $ 431 $ 33,594 Charge-offs - - - - (6 ) - (6 ) Recoveries 56 - - - 5 - 61 Provision for loan losses (22 ) 1,100 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ $ $ 34,749 Nine Months Ended September 30, 2019 Commercial Commercial real estate Commercial construction Residential 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 - (3,469 ) - (557 ) (20 ) - (4,046 ) Recoveries 214 30 - 3 16 - 263 Provision (1,764) 5,602 2,656 1,049 7,600 Balance at September 30, 2019 $ 8,325 $ 21,010 $ 7,175 $ 1,761 $ $ $ 38,771 Nine Months Ended September 30, 2018 Commercial Commercial real estate Commercial construction Residential 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 ) (7 ) - (17,091 ) Recoveries 87 - - - 5 - 92 Provision 18,695 1,116 (41 ) 20,000 Balance at September 30, 2018 $ 9,949 $ 18,228 $ 4,790 $ 1,215 $ $ $ 34,749 |
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 nine months ended September 30, 2019: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled debt restructurings: (dollars in thousands) Commercial 8 $ 13,753 $ 13,753 Commercial real estate 2 2,635 2,635 Commercial construction 5,630 5,630 Total $ 22,018 $ 22,018 These 13 loan modifications included were maturity extensions. The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2018: Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment TDRs (dollars in thousands) Commercial 31 $ 15,737 $ 15,737 Commercial real estate 2 209 209 Commercial construction 2 1,839 1,839 Residential real estate 2 454 454 Total $ 18,239 $ 18,239 |
Fair Value Measurements and F_2
Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Recurring fair value measurements: Assets Investment securities: Available-for-sale: Federal agency obligations $ 24,535 $ - $ 24,535 $ - Residential mortgage pass-through securities 215,805 - 215,805 - Commercial mortgage pass-through securities 5,090 - 5,090 - Obligations of U.S. states and political subdivision 143,656 - 134,475 9,181 Corporate bonds and notes 28,250 - 28,250 - Asset-backed securities 6,094 - 6,094 - Certificates of deposit 150 - 150 - Other securities 2,269 2,269 - - Total available-for-sale $ 425,849 $ 2,269 $ 414,399 $ 9,181 Equity securities 11,231 11,231 - - Total assets $ 437,080 $ 13,500 $ 414,399 $ 9,181 Liabilities Derivatives 380 - 380 - Total liabilities $ 380 $ - $ 380 $ - 31 CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) Note 7. Fair Value Measurements and Fair Value of Financial Instruments – (continued) December 31, 2018 Fair Value Measurements at Reporting Date Using Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (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 September 30, 2019 and December 31, 2018 are as follows: Fair Value Measurements at Reporting Date Using Assets measured at fair value on a nonrecurring basis: Carrying Value at September 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: (dollars in thousands) Commercial real estate $ 365 $ - $ - $ 365 Commercial construction 5,128 - - 5,128 Residential real estate 240 - - 240 Fair Value Measurements at Reporting Date Using Assets measured at fair value on a nonrecurring basis: Carrying Value at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 nine months ended September 30, 2019 and for the year ended December 31, 2018: Municipal Securities (dollars in thousands) Beginning balance, January 1, 2019 $ 9,377 Principal paydowns (196 ) Ending balance, September 30, 2019 $ 9,181 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 September 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. September 30, 2019 Fair Value Valuation Techniques Unobservable Input Range Securities available-for-sale: (dollars in thousands) Municipal securities $ 9,181 Discounted cash flows Discount rate 2.9 % December 31, 2018 Fair Value Valuation Techniques Unobservable Input 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 : September 30, 2019 Fair Value Valuation Techniques Unobservable Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 365 Sales comparison approach Adjustment for differences between the comparable sales 0% to 20% [10%] Commercial construction 5,128 Sales comparison approach Adjustment for differences between the comparable sales -10% to 13% [2%] Residential real estate 240 Sales comparison approach Adjustment for differences between the comparable sales 0% to 7% [2%] December 31, 2018 Fair Value Valuation Techniques Unobservable Input Range Impaired loans: (dollars in thousands) Commercial real estate $ 1,481 Sales comparison approach Adjustment for differences between the comparable sales 6% to 9% [8%] Residential real estate 231 Sales comparison approach Adjustment for differences between the comparable sales 0% to 10% [5%] |
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of September 30, 2019 the fair value measurements presented are consistent with Topic 820, Fair Value Measurement Fair Value Measurements Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) September 30, 2019 Financial assets: Cash and due from banks $ 194,009 $ 194,009 $ 194,009 $ - $ - Securities available-for-sale 425,849 425,849 2,269 414,399 9,181 Investment in restricted stocks 27,946 n/a n/a n/a n/a Equity securities 11,231 11,231 11,231 - - Net loans 5,071,700 5,087,076 - - 5,087,076 Loans held-for-sale 33,245 33,245 - 1,598 31,647 Accrued interest receivable 21,024 21,024 - 2,262 18,762 Financial liabilities: Noninterest-bearing deposits 828,190 828,190 828,190 - - Interest-bearing deposits 3,923,044 3,935,294 2,349,308 1,585,986 - Borrowings 512,456 514,331 - 514,331 - Subordinated debentures 128,802 137,790 - 137,790 - Derivatives 380 380 - 380 - Accrued interest payable 4,509 4,509 - 4,509 - 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) | 9 Months Ended |
Sep. 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 Comprehensive Loss Components Amounts Reclassified from Accumulated Other Comprehensive Income Affected Line item in the Statement Where Net Income is Presented Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (dollars in thousands) Sale of investment securities available for sale $ (279 ) $ - $ (280 ) $ - Net losses on sale of securities available-for-sale - 62 - Income tax benefit (217 ) - (218 ) - Net interest income on swaps 204 - 563 - Borrowings (46 ) - (125 ) - Income tax expense 158 - 438 - Amortization of pension plan net actuarial losses (90 ) (91 ) (269 ) (274 ) Other components of net periodic pension expense 76 77 Income tax benefit (64 ) (65 ) (193 ) (197 ) Total reclassification $ (123 ) $ (65 ) $ (27 ) $ (197 ) |
Comprehensive Income (Loss) [Table Text Block] | September 30, 2019 December 31, 2018 (dollars in thousands) Investment securities available-for-sale, net of tax $ 3,138 $ (5,841 ) Cash flow hedge, net of tax (270 ) 837 Defined benefit pension and post-retirement plans, net of tax (3,996 ) (3,785 ) Total $ (1,128 ) $ (8,789 ) |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 9 Months Ended |
Sep. 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: September 30, 2019 (dollars in thousands) Lease payments due: Less than 1 year $ 3,265 1 year through less than 2 years 2,887 2 years through less than 3 years 2,479 3 years through less than 4 years 2,133 4 years through 5 years 1,870 After 5 years 6,709 Total undiscounted cash flows 19,343 Impact of discounting (2,195 ) Total lease liability $ 17,148 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 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 for the nine months ended September 30, 2019 was as follows: Number of Stock Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 108,463 $ 8.35 Granted - - Exercised (28,937 ) 8.96 Forfeited/cancelled/expired - - Outstanding at September 30, 2019 79,526 8.13 2.3 $ 1,119,313 Exercisable at September 30, 2019 79,526 $ 8.13 2.3 $ 1,119,313 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Activity under the Company’s restricted shares for the nine months ended September 30, 2019 was as follows: Nonvested Shares Weighted- Average Grant Date Fair Value Nonvested at December 31, 2018 68,428 $ 23.04 Granted 183,467 21.40 Vested (52,629 ) 21.98 Forfeited/cancelled/expired - - Nonvested September 30, 2019 199,266 $ 21.81 |
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: Units (expected) Units (maximum) Weighted Average Grant Date Fair 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 September 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 changes in restricted stock units during the period is presented in the table below: Units (expected) Weighted Average Grant Date Fair Value Unearned at December 31, 2018 29,423 $ 31.35 Awarded 53,454 20.79 Vested (9,808 ) 21.28 Unearned at September 30, 2019 73,069 $ 24.98 |
Components of Net Periodic Pe_2
Components of Net Periodic Pension Cost (Tables) | 9 Months Ended |
Sep. 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 Ended September 30, 2019 Three Months Ended September 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 113 106 Expected return on plan assets (174 ) (190 ) Net amortization 91 Total periodic pension cost $ $ 7 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (dollars in thousands) Service cost $ - $ - Interest cost 339 320 Expected return on plan assets (522 ) (573 ) Net amortization 274 Total periodic pension cost $ $ 21 |
FHLB Borrowings (Tables)
FHLB Borrowings (Tables) | 9 Months Ended |
Sep. 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: September 30, 2019 December 31, 2018 Amount Rate Amount Rate (dollars in thousands) Total FHLB borrowings $ 512,456 2.25 % $ 600,001 2.59 % By remaining period to maturity: Less than 1 year $ 392,169 2.21 % $ 405,000 2.57 % 1 year through less than 2 years 57,000 2.27 % 110,000 2.75 % 2 years through less than 3 years 28,338 2.15 % 60,000 2.27 % 3 years through less than 4 years 32,421 2.82 % - - 4 years through less than 5 years - - - - After 5 years 2,898 2.43 % 25,000 2.92 % Total FHLB borrowings 512,826 2.25 % 600,000 2.59 % Fair value (discount) premium (370 ) FHLB borrowings, net $ 512,456 $ 600,001 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2019 and 2018. Items outside of ASC 606 are noted as such. Three Months Ended September 30, 2019 Three Months Ended September 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 354 $ 222 Other 184 186 Interchange income 199 152 Net gains on sales of loans (1) 278 2 Net gains (losses) on equity securities (1) 79 (157 ) Net losses on sale of securities available-for-sale (1) (279 ) - Wire transfer fees (1) 128 73 Loan servicing fees (1) 216 16 Bank owned life insurance (1) 915 751 Other Total noninterest income $ 2,109 $ 1,272 Nine Months Ended September 30, 2019 Nine Months Ended September 30, 2018 (dollars in thousands) Noninterest income Service charges on deposits Overdraft fees $ 947 $ 590 Other 556 482 Interchange income 558 465 Net gains on sales of loans (1) 343 31 Net gains (losses) on equity securities (1) 340 (325 ) Net losses on sale of securities available-for-sale (1) (280 ) - Wire transfer fees (1) 353 222 Loan servicing fees (1) 313 64 Bank owned life insurance (1) 2,570 2,300 Other Total noninterest income $ 5,789 $ 3,899 (1) Not within scope of ASC 606. |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018. Issuance Date Securities Issued Liquidation Value Coupon Rate Maturity Redeemable by 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) | 9 Months Ended |
Sep. 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, under GAAP, be offset on the consolidated statements of condition because they are subject to master netting agreements or similar agreements, although the Company has elected to disclose such arrangements on a gross basis on its 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 September 30, 2019 and December 31, 2018: Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Recognized Cash or Financial Instrument Collateral Net Amount (dollars in thousands) September 30, 2019 Liabilities: Interest rate swaps $ $ - $ $ - $ $ - 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 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 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 | 191 | $ 375 | 8,084 | $ 399 | |||
Cash consideration | $ 2,530 | ||||||
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 | |||||
BKJ acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Per share value of stock shareholders can elect to receive per merger agreement | $ 16.25 | $ 16.25 | |||||
Number of shares of stock shareholders can elect to receive per merger agreement | 0.780 | 0.780 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per common share: | ||||
Net income | $ 21,696 | $ 19,902 | $ 52,612 | $ 41,680 |
Earnings allocated to participating securities | (117) | (42) | (176) | (98) |
Income attributable to common stock | $ 21,579 | $ 19,860 | $ 52,436 | $ 41,582 |
Weighted average common shares outstanding, including participating securities | 35,307 | 32,167 | 35,317 | 32,127 |
Weighted average participating securities | (141) | (25) | (65) | (34) |
Weighted average common shares outstanding | 35,166 | 32,142 | 35,252 | 32,093 |
Incremental shares from assumed conversions of options, performance units and non-participating restricted shares | 97 | 177 | 82 | 220 |
Weighted average common and equivalent shares outstanding | 35,263 | 32,319 | 35,334 | 32,313 |
Earnings per common share: | ||||
Basic | $ 0.61 | $ 0.62 | $ 1.49 | $ 1.30 |
Diluted | $ 0.61 | $ 0.61 | $ 1.48 | $ 1.29 |
Securities Available-for-Sale_2
Securities Available-for-Sale (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)Integer | Dec. 31, 2018USD ($)Integer | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities Pledged as Collateral | $ | $ 119.6 | $ 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 | 49 | 148 |
Securities Available-for-Sale_3
Securities Available-for-Sale (Details) - Unrealized gains on investment securities - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities available-for-sale | ||
Securities, Amortized Cost | $ 421,661 | $ 419,947 |
Securities, Gross Unrealized Gains | 5,718 | 1,297 |
Securities, Gross Unrealized Losses | (1,530) | (9,210) |
Securities, Fair Value | 425,849 | 412,034 |
Federal agency obligations [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 23,712 | 45,509 |
Securities, Gross Unrealized Gains | 824 | 51 |
Securities, Gross Unrealized Losses | (1) | (605) |
Securities, Fair Value | 24,535 | 44,955 |
Residential mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 215,378 | 189,721 |
Securities, Gross Unrealized Gains | 1,286 | 85 |
Securities, Gross Unrealized Losses | (859) | (4,602) |
Securities, Fair Value | 215,805 | 185,204 |
Commercial mortgage pass-through securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 5,017 | 3,919 |
Securities, Gross Unrealized Gains | 73 | |
Securities, Gross Unrealized Losses | (45) | |
Securities, Fair Value | 5,090 | 3,874 |
Obligations of U.S. states and political subdivisions [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 140,870 | 141,496 |
Securities, Gross Unrealized Gains | 3,222 | 1,091 |
Securities, Gross Unrealized Losses | (436) | (3,402) |
Securities, Fair Value | 143,656 | 139,185 |
Corporate bonds and notes [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 28,135 | 26,308 |
Securities, Gross Unrealized Gains | 308 | 45 |
Securities, Gross Unrealized Losses | (193) | (540) |
Securities, Fair Value | 28,250 | 25,813 |
Asset-backed securities [Member] | ||
Securities available-for-sale | ||
Securities, Amortized Cost | 6,132 | 9,685 |
Securities, Gross Unrealized Gains | 3 | 22 |
Securities, Gross Unrealized Losses | (41) | (16) |
Securities, Fair Value | 6,094 | 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 | 2,269 | 2,990 |
Securities, Gross Unrealized Gains | ||
Securities, Gross Unrealized Losses | ||
Securities, Fair Value | $ 2,269 | $ 2,990 |
Securities Available-for-Sale_4
Securities Available-for-Sale (Details) - Investments classified by maturity date - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities Available-for-Sale: | ||
Due in one year or less, amortized cost | $ 4,309 | |
Due in one year or less, fair value | 4,333 | |
Due after one year through five years, amortized cost | 28,344 | |
Due after one year through five years, fair value | 28,503 | |
Due after five years through ten years, amortized cost | 24,060 | |
Due after five years through ten years, fair value | 24,757 | |
Due after ten years, amortized cost | 142,284 | |
Due after ten years, fair value | 145,092 | |
Total, amortized cost | 421,661 | $ 419,947 |
Total, fair value | 425,849 | |
Residential mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 215,378 | 189,721 |
Total, fair value | 215,804 | |
Commercial mortgage pass-through securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 5,017 | 3,919 |
Total, fair value | 5,091 | |
Other securities [Member] | ||
Securities Available-for-Sale: | ||
Total, amortized cost | 2,269 | $ 2,990 |
Total, fair value | $ 2,269 |
Securities Available-for-Sale_5
Securities Available-for-Sale (Details) - Schedule of realized gains and losses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of realized gains and losses [Abstract] | ||||
Proceeds | $ 33,432 | $ 183,728 | ||
Gross gains on sales of securities | 1 | 401 | ||
Gross losses on sales of securities | (280) | (681) | ||
Net losses on sales of securities | (279) | (280) | ||
Less: tax provision on net losses | 62 | 62 | ||
Net losses on sales of securities, after tax | $ (217) | $ (218) |
Securities Available-for-Sale_6
Securities Available-for-Sale (Details) - Schedule of unrealized losses not recognized in income - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | $ 152,833 | $ 301,569 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (1,530) | (9,210) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 56,112 | 60,601 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (255) | (559) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 96,721 | 240,968 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (1,275) | (8,651) |
Federal agency obligations [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 95 | 35,472 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (1) | (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 | 95 | 34,662 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (1) | (604) |
Residential mortgage pass-through securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 110,586 | 178,365 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (859) | (4,602) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 47,169 | 42,040 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (210) | (393) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 63,417 | 136,325 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (649) | (4,209) |
Obligations of U.S. states and political subdivisions [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 31,550 | 64,367 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (436) | (3,402) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 4,054 | 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 | 27,496 | 56,602 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (436) | (3,381) |
Corporate bonds and notes [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 5,286 | 15,534 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (193) | (540) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 2,462 | 7,767 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (38) | (133) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 2,824 | 7,767 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | (155) | (407) |
Asset-backed securities [Member] | ||
Investment Securities Available-for-Sale: | ||
Investment Securities Available-for-Sale: Total, Fair Value | 5,316 | 3,957 |
Investment Securities Available-for-Sale: Total, Unrealized Losses | (41) | (16) |
Investment Securities Available-for-Sale: Less than 12 Months, Fair Value | 2,427 | 2,219 |
Investment Securities Available-for-Sale: Less than 12 Months, Unrealized Losses | (7) | (11) |
Investment Securities Available-for-Sale: 12 Months or Longer, Fair Value | 2,889 | 1,738 |
Investment Securities Available-for-Sale: 12 Months or Longer, Unrealized Losses | $ (34) | (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 | 9 Months Ended | |||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 06, 2019 | Jun. 04, 2019 | Apr. 13, 2017 | Aug. 24, 2015 | Dec. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 50,000 | $ 50,000 | $ 25,000 | $ 25,000 | $ 25,000 | ||||
Interest expense on derivatives | $ 204 | $ 173 | $ 563 | $ 326 |
Derivatives (Details) - Summary
Derivatives (Details) - Summary of interest rate swap designated as a cash flow hedges - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Summary of interest rate swap designated as a cash flow hedges [Abstract] | |||
Notional amount | $ 175,000 | $ 100,000 | $ 75,000 |
Weighted average pay rates | 1.83% | 1.68% | 1.70% |
Weighted average receive rates | 2.53% | 2.12% | 2.19% |
Weighted average maturity | 1 year 6 months | 1 year 8 months 12 days | 2 years |
Fair value | $ (380) | $ 1,906 | $ 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 | 9 Months Ended | |
Sep. 30, 2019 | Sep. 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) | $ (976) | $ 796 |
Amount of gain (loss) reclassified from OCI to interest income | (563) | |
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 | Sep. 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 | $ 175,000 | 75,000 |
Interest rate swaps related to FHLB advances included in assets, Fair Value | $ (380) | $ 1,159 |
Loans and the Allowance for L_3
Loans and the Allowance for Loan Losses (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Receivables [Abstract] | |||
Loans Pledged as Collateral | $ 2,500 | $ 2,300 | |
Loans performing under the restructured terms | 19.7 | 11.2 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 31.8 | 23.3 | |
Troubled debt restructurings | 51.5 | $ 34.5 | |
Specific allowance | 1.4 | $ 0.1 | |
Value of taxi medallion loans Included in the commercial loan segment of the troubled debt restructurings | $ 11.2 |
Loans and the Allowance for L_4
Loans and the Allowance for Loan Losses (Details) - Composition of loan portfolio - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 5,115,473 | $ 4,544,899 |
Net deferred loan fees | (5,002) | (3,807) |
Total loans receivable | 5,110,471 | 4,541,092 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,113,743 | 988,758 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 3,030,816 | 2,778,167 |
Commercial Construction Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 646,172 | 465,389 |
Residential Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 322,307 | 309,991 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 2,435 | $ 2,594 |
Loans and the Allowance for L_5
Loans and the Allowance for Loan Losses (Details) - Loans held-for-sale - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 33,245 | |
Commercial Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | 2,294 | |
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 | 29,353 | |
Residential Real Estate Portfolio Segment [Member] | ||
Loans and the Allowance for Loan and Lease Losses (Details) - Purchase credit impaired loans [Line Items] | ||
Total carrying amount | $ 1,598 |
Loans and the Allowance for L_6
Loans and the Allowance for Loan Losses (Details) - Purchase credit impaired loans - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Total carrying amount | $ 6,582 | $ 2,509 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total carrying amount | 5,459 | 2,509 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total carrying amount | $ 1,123 |
Loans and the Allowance for L_7
Loans and the Allowance for Loan Losses (Details) - Schedule of accretable yield, or income expected to be collected - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of accretable yield, or income expected to be collected [Abstract] | ||||
Balance at beginning of period | $ 1,637 | $ 1,259 | $ 1,134 | $ 1,387 |
New loans purchased | 1,286 | |||
Accretion of income | (167) | (63) | (950) | (191) |
Balance at end of period | $ 1,470 | $ 1,196 | $ 1,470 | $ 1,196 |
Loans and the Allowance for L_8
Loans and the Allowance for Loan Losses (Details) - Loans receivable on nonaccrual status - USD ($) $ in Thousands | Sep. 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 | $ 51,321 | $ 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 | 33,781 | 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 | 7,529 | 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 | 7,101 | 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 | $ 2,910 | $ 4,446 |
Loans and the Allowance for L_9
Loans and the Allowance for Loan Losses (Details) - Credit quality indicators - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 5,115,473 | $ 4,544,899 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,113,743 | 988,758 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,030,816 | 2,778,167 |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 646,172 | 465,389 |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 322,307 | 309,991 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 2,435 | 2,594 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,998,403 | 4,456,187 |
Pass [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,040,210 | 951,610 |
Pass [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,007,226 | 2,742,989 |
Pass [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 629,778 | 453,598 |
Pass [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 318,754 | 305,414 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 2,434 | 2,576 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 31,555 | 21,460 |
Special Mention [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 23,219 | 3,371 |
Special Mention [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 6,418 | 12,574 |
Special Mention [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,918 | 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 | 85,515 | 67,252 |
Substandard [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 50,314 | 33,777 |
Substandard [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 17,172 | 22,604 |
Substandard [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 14,475 | 6,276 |
Substandard [Member] | Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,553 | 4,577 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1 | 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 _10
Loans and the Allowance for Loan Losses (Details) - Schedule of analysis of impaired loans, by class - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | $ 60,778 | $ 60,778 | $ 58,184 | ||
No related allowance recorded, Unpaid Principal Balance | 107,999 | 107,999 | 113,292 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 61,106 | $ 65,872 | 61,570 | $ 74,868 | |
Impaired loans with No Related Allowance Interest Income Recognized | 707 | 233 | 1,111 | 964 | |
With an allowance recorded, Recorded Investment | 7,119 | 7,119 | 1,748 | ||
With an allowance recorded, Unpaid Principal Balance | 7,119 | 7,119 | 1,754 | ||
With an allowance recorded, Related Allowance | 1,386 | 1,386 | 36 | ||
Impaired loans With An Allowance Recorded Average Recorded Investment | 7,083 | 8,798 | 7,026 | 8,811 | |
Impaired loans With An Allowance Recorded Interest Income Recognized | 936 | 11 | 229 | 34 | |
Total, Recorded Investment | 67,897 | 67,897 | 59,932 | ||
Total, Unpaid Principal Balance | 115,118 | 115,118 | 115,046 | ||
Total, Related Allowance | 1,386 | 1,386 | 36 | ||
Total Impaired Loans Average Recorded Investment | 68,189 | 74,760 | 68,596 | 83,679 | |
Total Impaired Loans Interest Income Recognized | 936 | 244 | 1,340 | 998 | |
Commercial Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 41,030 | 41,030 | 29,896 | ||
No related allowance recorded, Unpaid Principal Balance | 87,716 | 87,716 | 83,596 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 41,731 | 31,769 | 41,332 | 39,132 | |
Impaired loans with No Related Allowance Interest Income Recognized | 570 | 36 | 733 | 102 | |
Total, Recorded Investment | 41,030 | 41,030 | 29,896 | ||
Total, Unpaid Principal Balance | 87,716 | 87,716 | 83,596 | ||
Total, Related Allowance | |||||
Total Impaired Loans Average Recorded Investment | 41,332 | 31,769 | 41,731 | 39,132 | |
Total Impaired Loans Interest Income Recognized | 570 | 36 | 733 | 102 | |
Commercial Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 12,136 | 12,136 | 16,839 | ||
No related allowance recorded, Unpaid Principal Balance | 12,301 | 12,301 | 17,935 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 12,178 | 21,557 | 12,213 | 21,714 | |
Impaired loans with No Related Allowance Interest Income Recognized | 79 | 105 | 221 | 475 | |
With an allowance recorded, Recorded Investment | 388 | 388 | 1,488 | ||
With an allowance recorded, Unpaid Principal Balance | 388 | 388 | 1,488 | ||
With an allowance recorded, Related Allowance | 23 | 23 | 7 | ||
Impaired loans With An Allowance Recorded Average Recorded Investment | 392 | 8,534 | 393 | 8,544 | |
Impaired loans With An Allowance Recorded Interest Income Recognized | 11 | 34 | |||
Total, Recorded Investment | 12,524 | 12,524 | 18,327 | ||
Total, Unpaid Principal Balance | 12,689 | 12,689 | 19,423 | ||
Total, Related Allowance | 23 | 23 | 7 | ||
Total Impaired Loans Average Recorded Investment | 12,570 | 30,091 | 12,606 | 30,258 | |
Total Impaired Loans Interest Income Recognized | 79 | 116 | 221 | 509 | |
Commercial Construction Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 6,079 | 6,079 | 9,240 | ||
No related allowance recorded, Unpaid Principal Balance | 6,085 | 6,085 | 9,240 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 6,044 | 10,297 | 6,047 | 11,718 | |
Impaired loans with No Related Allowance Interest Income Recognized | 58 | 92 | 138 | 387 | |
With an allowance recorded, Recorded Investment | 6,467 | 6,467 | |||
With an allowance recorded, Unpaid Principal Balance | 6,467 | 6,467 | |||
With an allowance recorded, Related Allowance | 1,339 | 1,339 | |||
Impaired loans With An Allowance Recorded Average Recorded Investment | 6,439 | 6,378 | |||
Impaired loans With An Allowance Recorded Interest Income Recognized | 220 | 220 | |||
Total, Recorded Investment | 12,546 | 12,546 | 9,240 | ||
Total, Unpaid Principal Balance | 12,552 | 12,552 | 9,240 | ||
Total, Related Allowance | 1,339 | 1,339 | |||
Total Impaired Loans Average Recorded Investment | 12,483 | 12,425 | |||
Total Impaired Loans Interest Income Recognized | 278 | 92 | 358 | 387 | |
Residential Real Estate Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
No related allowance recorded, Recorded Investment | 1,533 | 1,533 | 2,209 | ||
No related allowance recorded, Unpaid Principal Balance | 1,897 | 1,897 | 2,521 | ||
Impaired loans with No Related Allowance Average Recorded Investment | 1,552 | 2,249 | 1,579 | 2,304 | |
Impaired loans with No Related Allowance Interest Income Recognized | 19 | ||||
With an allowance recorded, Recorded Investment | 264 | 264 | 260 | ||
With an allowance recorded, Unpaid Principal Balance | 264 | 264 | 266 | ||
With an allowance recorded, Related Allowance | 24 | 24 | 29 | ||
Impaired loans With An Allowance Recorded Average Recorded Investment | 252 | 264 | 255 | 267 | |
Impaired loans With An Allowance Recorded Interest Income Recognized | 9 | 9 | |||
Total, Recorded Investment | 1,797 | 1,797 | 2,469 | ||
Total, Unpaid Principal Balance | 2,161 | 2,161 | 2,787 | ||
Total, Related Allowance | 24 | 24 | $ 29 | ||
Total Impaired Loans Average Recorded Investment | 1,804 | 2,513 | 1,834 | 2,571 | |
Total Impaired Loans Interest Income Recognized | $ 9 | $ 28 |
Loans and the Allowance for _11
Loans and the Allowance for Loan Losses (Details) - Aging analysis - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 51,321 | $ 51,855 |
Total Past Due and Nonaccrual | 63,056 | 69,811 |
Current | 5,052,417 | 4,475,088 |
Gross Loans | 5,115,473 | 4,544,899 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 33,781 | 29,340 |
Total Past Due and Nonaccrual | 44,129 | 32,660 |
Current | 1,069,614 | 956,098 |
Gross Loans | 1,113,743 | 988,758 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 7,529 | 15,135 |
Total Past Due and Nonaccrual | 8,218 | 23,137 |
Current | 3,022,598 | 2,755,030 |
Gross Loans | 3,030,816 | 2,778,167 |
Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 7,101 | 2,934 |
Total Past Due and Nonaccrual | 7,101 | 5,994 |
Current | 639,071 | 459,395 |
Gross Loans | 646,172 | 465,389 |
Residential Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 2,910 | 4,446 |
Total Past Due and Nonaccrual | 3,608 | 8,020 |
Current | 318,699 | 301,971 |
Gross Loans | 322,307 | 309,991 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | ||
Total Past Due and Nonaccrual | ||
Current | 2,435 | 2,594 |
Gross Loans | 2,435 | 2,594 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 6,510 | 13,786 |
30 - 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 5,812 | 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 | 698 | 3,455 |
30 - 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | ||
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 2,127 | 2,523 |
60 - 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 1,438 | |
60 - 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 689 | 1,840 |
60 - 89 Days Past Due [Member] | Commercial Construction Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 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 | ||
90 Days or Greater Past Due and Still Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Nonaccrual | 3,098 | 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 | 3,098 | 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 _12
Loans and the Allowance for Loan Losses (Details) - Allowance for loan and lease losses - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
ALLL | ||||||
ALLL, Individually evaluated for impairment | $ 1,386 | $ 36 | ||||
ALLL, Collectively evaluated for impairment | 36,185 | 33,718 | ||||
ALLL, Acquired portfolio | 1,200 | 1,200 | ||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 38,771 | $ 37,698 | 34,954 | $ 34,749 | $ 33,594 | $ 31,748 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 67,896 | 59,932 | ||||
Loans Receivable, Collectively evaluated for impairment | 4,499,769 | 4,171,343 | ||||
Loans Receivable, Acquired portfolio | 541,226 | 311,115 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 6,582 | 2,509 | ||||
Total | 5,115,473 | 4,544,899 | ||||
Commercial Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | ||||||
ALLL, Collectively evaluated for impairment | 8,125 | 9,675 | ||||
ALLL, Acquired portfolio | 200 | 200 | ||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 8,325 | 8,721 | 9,875 | 9,949 | 8,960 | 8,233 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 41,030 | 29,896 | ||||
Loans Receivable, Collectively evaluated for impairment | 977,895 | 949,129 | ||||
Loans Receivable, Acquired portfolio | 89,359 | 7,224 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 5,459 | 2,509 | ||||
Total | 1,113,743 | 988,758 | ||||
Commercial Real Estate Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | 23 | 7 | ||||
ALLL, Collectively evaluated for impairment | 19,987 | 17,840 | ||||
ALLL, Acquired portfolio | 1,000 | 1,000 | ||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 21,010 | 21,485 | 18,847 | 18,228 | 18,221 | 17,112 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 12,524 | 18,327 | ||||
Loans Receivable, Collectively evaluated for impairment | 2,645,903 | 2,500,132 | ||||
Loans Receivable, Acquired portfolio | 371,266 | 259,708 | ||||
Loans Receivables, Acquired with deteriorated credit quality | 1,123 | |||||
Total | 3,030,816 | 2,778,167 | ||||
Commercial Construction Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | 1,339 | |||||
ALLL, Collectively evaluated for impairment | 5,836 | 4,519 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 7,175 | 5,542 | 4,519 | 4,790 | 4,812 | 4,747 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 12,545 | 9,240 | ||||
Loans Receivable, Collectively evaluated for impairment | 597,352 | 456,149 | ||||
Loans Receivable, Acquired portfolio | 36,275 | |||||
Loans Receivables, Acquired with deteriorated credit quality | ||||||
Total | 646,172 | 465,389 | ||||
Residential Real Estate Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | 24 | 29 | ||||
ALLL, Collectively evaluated for impairment | 1,737 | 1,237 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 1,761 | 1,208 | 1,266 | 1,215 | 1,167 | 1,050 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | 1,797 | 2,469 | ||||
Loans Receivable, Collectively evaluated for impairment | 276,457 | 263,449 | ||||
Loans Receivable, Acquired portfolio | 44,053 | 44,073 | ||||
Loans Receivables, Acquired with deteriorated credit quality | ||||||
Total | 322,307 | 309,991 | ||||
Consumer Portfolio Segment [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | ||||||
ALLL, Collectively evaluated for impairment | 4 | 2 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | 4 | 2 | 2 | 3 | 3 | 1 |
Gross loans | ||||||
Loans Receivable, Individually evaluated for impairment | ||||||
Loans Receivable, Collectively evaluated for impairment | 2,162 | 2,484 | ||||
Loans Receivable, Acquired portfolio | 273 | 110 | ||||
Loans Receivables, Acquired with deteriorated credit quality | ||||||
Total | 2,435 | 2,594 | ||||
Unallocated [Member] | ||||||
ALLL | ||||||
ALLL, Individually evaluated for impairment | ||||||
ALLL, Collectively evaluated for impairment | 496 | 445 | ||||
ALLL, Acquired portfolio | ||||||
ALLL, Acquired with deteriorated credit quality | ||||||
Total | $ 496 | $ 740 | $ 445 | $ 564 | $ 431 | $ 605 |
Loans and the Allowance for _13
Loans and the Allowance for Loan Losses (Details) - Schedule of allowance for loan losses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 37,698 | $ 33,594 | $ 34,954 | $ 31,748 |
Charge-offs | (964) | (6) | (4,046) | (17,091) |
Recoveries | 37 | 61 | 263 | 92 |
Provision for loan losses | 2,000 | 1,100 | 7,600 | 20,000 |
Balance | 38,771 | 34,749 | 38,771 | 34,749 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 8,721 | 8,960 | 9,875 | 8,233 |
Charge-offs | (17,066) | |||
Recoveries | 28 | 56 | 214 | 87 |
Provision for loan losses | (424) | 933 | (1,764) | 18,695 |
Balance | 8,325 | 9,949 | 8,325 | 9,949 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 21,485 | 18,221 | 18,847 | 17,112 |
Charge-offs | (387) | (3,469) | ||
Recoveries | 30 | |||
Provision for loan losses | (88) | 7 | 5,602 | 1,116 |
Balance | 21,010 | 18,228 | 21,010 | 18,228 |
Commercial Construction Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 5,542 | 4,812 | 4,519 | 4,747 |
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | 1,633 | (22) | 2,656 | 43 |
Balance | 7,175 | 4,790 | 7,175 | 4,790 |
Residential Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 1,208 | 1,167 | 1,266 | 1,050 |
Charge-offs | (557) | (557) | (18) | |
Recoveries | 3 | |||
Provision for loan losses | 1,110 | 48 | 1,049 | 183 |
Balance | 1,761 | 1,215 | 1,761 | 1,215 |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 2 | 3 | 2 | 1 |
Charge-offs | (20) | (6) | (20) | (7) |
Recoveries | 9 | 5 | 16 | 5 |
Provision for loan losses | 13 | 1 | 6 | 4 |
Balance | 4 | 3 | 4 | 3 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | 740 | 431 | 445 | 605 |
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | (244) | 133 | 51 | (41) |
Balance | $ 496 | $ 564 | $ 496 | $ 564 |
Loans and the Allowance for _14
Loans and the Allowance for Loan Losses (Details) - Schedule of troubled debt restructuring by class $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)Integer | Sep. 30, 2018USD ($)Integer | |
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 13 | 37 |
Pre-Modification Outstanding Recorded Investment | $ 22,018 | $ 18,239 |
Post-Modification Outstanding Recorded Investment | $ 22,018 | $ 18,239 |
Commercial Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 8 | 31 |
Pre-Modification Outstanding Recorded Investment | $ 13,753 | $ 15,737 |
Post-Modification Outstanding Recorded Investment | $ 13,753 | $ 15,737 |
Commercial Real Estate Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 2,635 | $ 209 |
Post-Modification Outstanding Recorded Investment | $ 2,635 | $ 209 |
Commercial Construction Portfolio Segment [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
Number of Loans | Integer | 3 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 5,630 | $ 1,839 |
Post-Modification Outstanding Recorded Investment | $ 5,630 | $ 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 7,119 | $ 1,748 |
Impaired Financing Receivable, Related Allowance | 1,386 | 36 |
Impaired Loans [Member] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 7,100 | 1,700 |
Impaired Financing Receivable, Related Allowance | $ 1,400 | $ 36 |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale: | ||
Securities available-for-sale | $ 425,849 | $ 412,034 |
Derivatives | 1,159 | |
LIABILITIES | ||
Derivatives | 380 | |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,269 | 2,990 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 414,399 | 399,667 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 9,181 | 9,377 |
Federal agency obligations [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 24,535 | 44,955 |
Residential mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 215,805 | 185,204 |
Commercial mortgage pass-through securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 5,090 | 3,874 |
Obligations of U.S. states and political subdivisions [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 143,656 | 139,185 |
Corporate bonds and notes [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 28,250 | 25,813 |
Asset-backed securities [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 6,094 | 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 | 2,269 | 2,990 |
Recurring [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 425,849 | 412,034 |
Equity securities | 11,231 | 11,460 |
Derivatives | 1,159 | |
Total assets | 437,080 | 424,653 |
LIABILITIES | ||
Derivatives | 380 | |
Total liabilities | 380 | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,269 | 2,990 |
Equity securities | 11,231 | 11,460 |
Derivatives | ||
Total assets | 13,500 | 14,450 |
LIABILITIES | ||
Derivatives | ||
Total liabilities | ||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 414,399 | 399,667 |
Equity securities | ||
Derivatives | 1,159 | |
Total assets | 414,399 | 400,826 |
LIABILITIES | ||
Derivatives | 380 | |
Total liabilities | 380 | |
Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 9,181 | 9,377 |
Equity securities | ||
Derivatives | ||
Total assets | 9,181 | 9,377 |
LIABILITIES | ||
Derivatives | ||
Total liabilities | ||
Recurring [Member] | Federal agency obligations [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 24,535 | 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 | 24,535 | 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 | 215,805 | 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 | 215,805 | 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 | 5,090 | 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 | 5,090 | 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 | 143,656 | 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 | 134,475 | 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 | 9,181 | 9,377 |
Recurring [Member] | Corporate bonds and notes [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 28,250 | 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 | 28,250 | 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 | 6,094 | 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 | 6,094 | 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 | 2,269 | 2,990 |
Recurring [Member] | Other securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale: | ||
Securities available-for-sale | 2,269 | 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Commercial Real Estate [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | $ 365 | $ 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 | 365 | 1,481 |
Commercial construction [Member] | ||
Assets Measured at Fair Value on a Non-Recurring Basis: | ||
Fair value | 5,128 | |
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 | 5,128 | |
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 | $ 240 | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Balance of recurring Level 3 assets at January 1 | $ 9,377 | $ 9,632 |
Principal paydowns | (196) | (255) |
Balance of recurring Level 3 assets at December 31 | $ 9,181 | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair value | $ 437,080 | $ 424,653 |
Municipal Securities [Member] | ||
Fair value | $ 9,181 | $ 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 | 9 Months Ended | 12 Months Ended |
Sep. 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 | $ 365 | $ 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 | 5,128 | |
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 | $ 365 | $ 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 | $ 240 | $ 240 |
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 | $ 5,128 | |
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 | (2.00%) | |
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 | (10.00%) | |
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 | 13.00% |
Fair Value Measurements and F_9
Fair Value Measurements and Fair Value of Financial Instruments (Details) - Schedule of fair value hierarchy - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets | ||||
Cash and cash equivalents, Carrying Amount | $ 194,009 | $ 172,366 | $ 155,848 | $ 149,582 |
Cash and cash equivalents, Fair Value | 194,009 | 172,366 | ||
Securities available-for-sale, Carrying Amount | 425,849 | 412,034 | ||
Securities available-for-sale, Fair Value | 425,849 | 412,034 | ||
Investment in restricted stocks, Carrying Amount | 27,946 | 31,136 | ||
Equity securities, Carrying Amount | 11,231 | 11,460 | ||
Equity securities, Fair Value | 11,231 | 11,460 | ||
Net loans, Carrying Amount | 5,071,700 | 4,506,138 | ||
Net loans, Fair Value | 5,087,076 | 4,402,878 | ||
Loans held-for-sale, Carrying Amount | 33,245 | |||
Loans held-for-sale, Fair Value | 33,245 | |||
Derivatives, Carrying Amount | 1,159 | |||
Derivatives, Fair Value | 1,159 | |||
Accrued interest receivable, Carrying Amount | 21,024 | 18,214 | ||
Accrued interest receivable, Fair Value | 21,024 | 18,214 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Carrying Amount | 828,190 | 768,584 | ||
Noninterest-bearing deposits, Fair Value | 828,190 | 768,584 | ||
Interest-bearing deposits, Carrying Amount | 3,923,044 | 3,323,508 | ||
Interest-bearing deposits, Fair Value | 3,935,294 | 3,320,640 | ||
Borrowings, Carrying Amount | 512,456 | 600,001 | ||
Borrowings, Fair Value | 514,331 | 598,598 | ||
Subordinated debentures, Carrying Amount | 128,802 | 128,556 | ||
Subordinated debentures, Fair Value | 137,790 | 132,426 | ||
Derivatives, Carrying Amount | 380 | |||
Derivatives, Fair Value | 380 | |||
Accrued interest payable, Carrying Amount | 4,509 | 6,764 | ||
Accrued interest payable, Fair Value | 4,509 | 6,764 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | 194,009 | 172,366 | ||
Securities available-for-sale, Fair Value | 2,269 | 2,990 | ||
Equity securities, Fair Value | 11,231 | 11,460 | ||
Net loans, Fair Value | ||||
Loans held-for-sale, Fair Value | ||||
Derivatives, Fair Value | ||||
Accrued interest receivable, Fair Value | ||||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | 828,190 | 768,584 | ||
Interest-bearing deposits, Fair Value | 2,349,308 | 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 | 414,399 | 399,667 | ||
Equity securities, Fair Value | ||||
Net loans, Fair Value | ||||
Loans held-for-sale, Fair Value | 1,598 | |||
Derivatives, Fair Value | 1,159 | |||
Accrued interest receivable, Fair Value | 2,262 | 2,064 | ||
Financial liabilities | ||||
Noninterest-bearing deposits, Fair Value | ||||
Interest-bearing deposits, Fair Value | 1,585,986 | 1,363,137 | ||
Borrowings, Fair Value | 514,331 | 598,598 | ||
Subordinated debentures, Fair Value | 137,790 | 132,426 | ||
Derivatives, Fair Value | 380 | |||
Accrued interest payable, Fair Value | 4,509 | 6,764 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents, Fair Value | ||||
Securities available-for-sale, Fair Value | 9,181 | 9,377 | ||
Equity securities, Fair Value | ||||
Net loans, Fair Value | 5,087,076 | 4,402,878 | ||
Loans held-for-sale, Fair Value | 31,647 | |||
Derivatives, Fair Value | ||||
Accrued interest receivable, Fair Value | 18,762 | 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 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 | $ 2,236 | $ (2,840) | $ 11,821 | $ (9,639) |
Sale of securities available-for-sale Income tax expense | (584) | 729 | (3,061) | 2,466 |
Net interest income on swaps - Borrowings | 204 | 173 | 563 | 326 |
Net interest income on swaps Income tax expense | (46) | (125) | ||
Net interest income on swaps | (158) | (438) | ||
Total reclassification | 1,753 | (2,037) | 7,661 | (6,011) |
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 | (279) | (280) | ||
Sale of securities available-for-sale Income tax expense | 62 | 62 | ||
Sale of securities available-for-sale | (217) | (218) | ||
Net interest income on swaps - Borrowings | 204 | 563 | ||
Net interest income on swaps Income tax expense | (46) | (125) | ||
Net interest income on swaps | 158 | 438 | ||
Amortization of pension plan net actuarial losses - other components of net periodic pension expense | (90) | (91) | (269) | (274) |
Amortization of pension plan net actuarial losses Income tax benefit | 26 | 26 | 76 | 77 |
Amortization of pension plan net actuarial losses | (64) | (65) | (193) | (197) |
Total reclassification | $ (123) | $ (65) | $ (27) | $ (197) |
Comprehensive Income (Details_2
Comprehensive Income (Details) - Schedule of Accumulated Other Comprehensive Income (Loss) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Investment securities available-for-sale, net of tax | $ 3,138 | $ (5,841) |
Cash flow hedge, net of tax | (270) | 837 |
Defined benefit pension and post-retirement plans, net of tax | (3,996) | (3,785) |
Total accumulated other comprehensive loss | $ (1,128) | $ (8,789) |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Lessee Disclosure [Abstract] | |||
Lease liabilities | $ 17,100 | $ 17,100 | |
Right-of-use assets | $ 15,789 | $ 15,789 | |
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 | $ 700 | $ 2,300 | |
Rent expense | $ 6 | $ 16 |
Premises and Equipment (Detai_2
Premises and Equipment (Details) - Schedule of Operating Lease Liabilities and Reconciliation - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Lease payments due: | ||
Less than 1 year | $ 3,265 | |
1 year through less than 2 years | 2,887 | |
2 years through less than 3 years | 2,479 | |
3 years through less than 4 years | 2,133 | |
4 years through 5 years | 1,870 | |
After 5 years | 6,709 | |
Total undiscounted cash flows | 19,343 | |
Impact of discounting | (2,195) | |
Total lease liability | $ 17,148 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based compensation expense | $ 700,000 | $ 600,000 | $ 1,900,000 | $ 1,300,000 | ||
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 | |||||
Maximum amount of performance units that could vest if performance targets were exceeded | 120,212 | 120,212 | ||||
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 | 11,979 | |||||
Unrecognized compensation cost related to nonvested shares | $ 1,233,743 | $ 1,233,743 | ||||
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 | $ 1,400,000 | $ 1,400,000 | ||||
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 | $ 800,000 | $ 800,000 | ||||
Weighted average period related to compesation cost | 1 year 8 months 12 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) | 400,593 |
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 | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Outstanding Beginning Balance | 108,463 | ||
Granted | |||
Exercised | (55,881) | (28,937) | (102,378) |
Forfeited/cancelled/expired | |||
Outstanding Ending Balance | 79,526 | ||
Exercisable Ending Balance | 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 | ||
Exercisable Ending Balance, Weighted-Average Exercise Price | $ 8.13 | ||
Outstanding Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 2 years 3 months 18 days | ||
Exercisable Ending Balance - Weighted-Average Remaining Contractual Term (In Years) | 2 years 3 months 18 days | ||
Outstanding Ending Balance - Aggregate Intrinsic Value | $ 1,119,313 | ||
Exercisable Ending Balance - Aggregate Intrinsic Value | $ 1,119,313 |
Stock Based Compensation (Det_3
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Nonvested Shares | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Granted | |
Nonvested [Member] | |
Nonvested at December 31, 2018 | 68,428 |
Granted | 183,467 |
Vested | (52,629) |
Forfeited/cancelled/expired | |
Nonvested September 30, 2019 | 199,266 |
Outstanding, beginning balance | $ / shares | $ 23.04 |
Granted | $ / shares | 21.40 |
Vested | $ / shares | 21.98 |
Forfeited/cancelled/expired | $ / shares | |
Outstanding, ending balance | $ / shares | $ 21.81 |
Stock Based Compensation (Det_4
Stock Based Compensation (Details) - Schedule of Share-based Payment Award, Unearned Shares | 9 Months Ended |
Sep. 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Average daily balance during the year | ||||
Service cost | ||||
Interest cost | 113 | 106 | 339 | 320 |
Expected return on plan assets | (174) | (190) | (522) | (573) |
Net amortization | 90 | 91 | 269 | 274 |
Total periodic pension cost | $ 29 | $ 7 | $ 86 | $ 21 |
FHLB Borrowings (Details)
FHLB Borrowings (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract] | |||
Extinguishment of Debt, Amount | $ 65 | ||
Long-term Line of Credit | $ 1,900 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,100 | ||
Weighted average interest rates | 3.29% | 2.25% | 2.59% |
Weighted average maturity | 1 year 1 month 6 days | ||
Amount of putable option | $ 40 | ||
Prepayment Penalty | $ 10 |
FHLB Borrowings (Details) - Sch
FHLB Borrowings (Details) - Schedule of components of FHLB borrowings and weighted average interest rates - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
By type of borrowing: | |||
FHLB borrowings (in Dollars) | $ 512,456 | $ 600,001 | |
Weighted average interest rates | 2.25% | 3.29% | 2.59% |
By remaining period to maturity: | |||
Less than 1 year (in Dollars) | $ 392,169 | $ 405,000 | |
Less than 1 year | 2.21% | 2.57% | |
1 year through less than 2 years (in Dollars) | $ 57,000 | $ 110,000 | |
1 year through less than 2 years | 2.27% | 2.75% | |
2 years through less than 3 years (in Dollars) | $ 28,338 | $ 60,000 | |
2 years through less than 3 years | 2.15% | 2.27% | |
3 years through less than 4 years (in Dollars) | $ 32,421 | ||
3 years through less than 4 years | 2.82% | ||
4 years through less than 5 years (in Dollars) | |||
4 years through less than 5 years | |||
After 5 years (in Dollars) | $ 2,898 | $ 25,000 | |
After 5 years | 2.43% | 2.92% | |
Total FHLB borrowings (in Dollars) | $ 512,826 | $ 600,000 | |
Fair value (discount) premium | (370) | 1 | |
FHLB borrowings, net | $ 512,456 | $ 600,001 |
Revenue Recognition (Schedule o
Revenue Recognition (Schedule of Revenue from Contracts with Customers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Service charges on deposits | |||||
Overdraft fees | $ 354 | $ 222 | $ 947 | $ 590 | |
Other | 184 | 186 | 556 | 482 | |
Interchange income | 199 | 152 | 558 | 465 | |
Net gains on sales of loans | [1] | 278 | 2 | 343 | 31 |
Net gains (losses) on equity securities | [1] | 79 | (157) | 340 | (325) |
Net losses on sale of securities available-for-sale | [1] | (279) | (280) | ||
Wire transfer fees | [1] | 128 | 73 | 353 | 222 |
Loan servicing fees | [1] | 216 | 16 | 313 | 64 |
Bank owned life insurance | [1] | 915 | 751 | 2,570 | 2,300 |
Other | 35 | 27 | 89 | 70 | |
Total noninterest income | $ 2,109 | $ 1,272 | $ 5,789 | $ 3,899 | |
[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 | Sep. 30, 2019 | Sep. 30, 2018 |
Subordinated Debentures (Details) [Line Items] | |||||
Proceeds from Issuance of Debt | $ 1,286 | ||||
Debt Instrument, Term | 1 year 1 month 6 days | ||||
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 | $ 1,217 | 136 | |||
Subordinated Debt from Trust [Member] | |||||
Subordinated Debentures (Details) [Line Items] | |||||
Value of subordinated debentures received by Trust | $ 50,000 | ||||
Percentage Rate Added to Libor | 2.85% | ||||
Floating interest rate on subordinated debentures | 5.12% | ||||
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 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 | $1,000 per Capital Security |
Coupon Rate | Floating 3-month LIBOR + 285 Basis Points | Floating 3-month LIBOR + 285 Basis Points |
Maturity | Jan. 23, 2034 | Jan. 23, 2034 |
Redeemable by Issuer Beginning | Jan. 23, 2009 | Jan. 23, 2009 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Gross Amounts Recognized, Liabilities | $ 380 | |
Interest Rate Swap [Member] | ||
Gross Amounts Recognized, Assets | $ 1,159 | |
Gross Amounts Recognized, Liabilities | 380 | |
Gross Amounts Offset in the Statement of Financial Position, Assets | ||
Gross Amounts Offset in the Statement of Financial Position, Liabilities | ||
Net Amounts of Assets Presented in the Statement of Financial Position, Assets | 1,159 | |
Net Amounts of Assets Presented in the Statement of Financial Position, Liabilities | 380 | |
Financial Instruments Recognized, Assets | ||
Financial Instruments Recognized, Liabilities | ||
Cash or Financial Instrument Collateral, Assets | ||
Cash or Financial Instrument Collateral, Liabilities | 380 | |
Net Amount, Assets | $ 1,159 | |
Net Amount, Liabilities |