Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-12508 | ||
Entity Registrant Name | S&T BANCORP, INC. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 25-1434426 | ||
Entity Address, Address Line One | 800 Philadelphia Street | ||
Entity Address, City or Town | Indiana | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15701 | ||
City Area Code | 800 | ||
Local Phone Number | 325-2265 | ||
Title of 12(b) Security | Common Stock, par value $2.50 per share | ||
Trading Symbol | STBA | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,258,136,366 | ||
Entity Common Stock, Shares Outstanding | 39,462,857 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement of S&T Bancorp, Inc., to be filed pursuant to Regulation 14A for the 2019 annual meeting of shareholders to be held May 18, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000719220 | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks, including interest-bearing deposits of $124,491 and $82,740 at December 31, 2019 and 2018 | $ 197,823 | $ 155,489 |
Securities, at fair value | 784,283 | 684,872 |
Loans held for sale | 5,256 | 2,371 |
Portfolio loans, net of unearned income | 7,137,152 | 5,946,648 |
Allowance for loan losses | (62,224) | (60,996) |
Portfolio loans, net | 7,074,928 | 5,885,652 |
Bank owned life insurance | 80,473 | 73,900 |
Premises and equipment, net | 56,940 | 41,730 |
Federal Home Loan Bank and other restricted stock, at cost | 22,977 | 29,435 |
Goodwill | 371,621 | 287,446 |
Other intangible assets, net | 10,919 | 2,601 |
Other assets | 159,429 | 88,725 |
Total Assets | 8,764,649 | 7,252,221 |
LIABILITIES | ||
Noninterest-bearing demand | 1,698,082 | 1,421,156 |
Interest-bearing demand | 962,331 | 573,693 |
Money market | 1,949,811 | 1,482,065 |
Savings | 830,919 | 784,970 |
Certificates of deposit | 1,595,433 | 1,412,038 |
Total Deposits | 7,036,576 | 5,673,922 |
Securities sold under repurchase agreements | 19,888 | 18,383 |
Short-term borrowings | 281,319 | 470,000 |
Long-term borrowings | 50,868 | 70,314 |
Junior subordinated debt securities | 64,277 | 45,619 |
Other liabilities | 119,723 | 38,222 |
Total Liabilities | 7,572,651 | 6,316,460 |
SHAREHOLDERS’ EQUITY | ||
Common stock ($2.50 par value) Authorized—50,000,000 shares Issued—41,449,444 shares at December 31, 2019 and 36,130,480 shares at December 31, 2018 Outstanding—39,560,304 shares at December 31, 2019 and 34,683,874 shares at December 31, 2018 | 103,623 | 90,326 |
Additional paid-in capital | 399,944 | 210,345 |
Retained earnings | 761,083 | 701,819 |
Accumulated other comprehensive loss | (11,670) | (23,107) |
Treasury stock (1,889,140 shares at December 31, 2019 and 1,446,606 shares at December 31, 2019, at cost) | (60,982) | (43,622) |
Total Shareholders’ Equity | 1,191,998 | 935,761 |
Total Liabilities and Shareholders’ Equity | $ 8,764,649 | $ 7,252,221 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Cash and due from banks, interest-bearing amounts | $ 124,491 | $ 82,740 |
Common stock, par value (in USD per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 41,449,444 | 36,130,480 |
Common stock, shares outstanding (in shares) | 39,560,304 | 34,683,874 |
Treasury stock, shares (in shares) | 1,889,140 | 1,446,606 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
INTEREST INCOME | ||||
Loans, including fees | $ 300,625 | $ 269,811 | $ 243,315 | |
Investment Securities: | ||||
Taxable | 14,733 | 14,342 | 11,947 | |
Tax-exempt | 3,302 | 3,449 | 3,615 | |
Dividends | 1,824 | 2,224 | 1,765 | |
Total Interest Income | 320,484 | 289,826 | 260,642 | |
INTEREST EXPENSE | ||||
Deposits | 63,026 | 40,856 | 25,330 | |
Borrowings and junior subordinated debt securities | 10,667 | 14,532 | 9,579 | |
Total Interest Expense | 73,693 | 55,388 | 34,909 | |
NET INTEREST INCOME | 246,791 | 234,438 | 225,733 | |
Provision for loan losses | 14,873 | 14,995 | 13,883 | |
Net Interest Income After Provision for Loan Losses | 231,918 | 219,443 | 211,850 | |
NONINTEREST INCOME | ||||
Net (loss)/gain on sale of securities | (26) | 0 | 3,000 | |
Commercial loan swap income | 5,503 | 1,225 | 503 | |
Mortgage banking | 2,491 | 2,762 | 2,915 | |
Insurance | 355 | 505 | 5,371 | |
Gain on sale of a majority interest of insurance business | 0 | 1,873 | 0 | |
Other | 8,891 | 6,957 | 9,428 | |
Total Noninterest Income | 52,558 | 49,181 | 55,462 | |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 83,986 | 76,108 | 80,776 | |
Data processing and information technology | 14,468 | 10,633 | 8,801 | |
Net occupancy | 12,103 | 11,097 | 10,994 | |
Merger-related | 11,350 | 0 | 0 | |
Furniture, equipment and software | 8,958 | 8,083 | 7,946 | |
Marketing | 4,631 | 4,192 | 3,659 | |
Professional services and legal | 4,244 | 4,132 | 4,096 | |
Other taxes | 3,364 | 6,183 | 4,509 | |
FDIC insurance | 758 | 3,238 | 4,543 | |
Other | 23,254 | 21,779 | 22,583 | |
Total Noninterest Expense | 167,116 | 145,445 | 147,907 | |
Income Before Taxes | 117,360 | 123,179 | 119,405 | |
Provision for income taxes | 19,126 | 17,845 | 46,437 | |
Net Income | $ 98,234 | $ 105,334 | $ 72,968 | |
Earnings per common share—basic (in USD per share) | $ 2.84 | $ 3.03 | $ 2.10 | |
Earnings per common share—diluted (in USD per share) | 2.82 | 3.01 | 2.09 | |
Dividends declared per common share (in USD per share) | $ 1.09 | $ 0.99 | $ 0.82 | |
Debit and credit card | ||||
NONINTEREST INCOME | ||||
Revenue from contract with customer | [1] | $ 13,405 | $ 12,679 | $ 12,029 |
Service charges on deposit accounts | ||||
NONINTEREST INCOME | ||||
Revenue from contract with customer | [1] | 13,316 | 13,096 | 12,458 |
Wealth management | ||||
NONINTEREST INCOME | ||||
Revenue from contract with customer | [1] | 8,623 | 10,084 | 9,758 |
Majority Interest of Insurance Business | ||||
NONINTEREST INCOME | ||||
Gain on sale of a majority interest of insurance business | $ 0 | $ 1,873 | $ 0 | |
[1] | Refer to Note 1. Summary of Significant Accounting Policies for the types of revenue streams that are included within each category. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 98,234 | $ 105,334 | $ 72,968 | |
Other Comprehensive Income (Loss), Before Tax: | ||||
Net change in unrealized (losses) gains on equity securities | [1] | 15,793 | (6,794) | (1,275) |
Net (gains) losses on debt securities available-for-sale reclassified into net income | [2] | 26 | 0 | (3,000) |
Adjustment to funded status of employee benefit plans | (1,282) | 6,297 | (1,992) | |
Other Comprehensive Income (Loss), Before Tax | 14,537 | (497) | (6,267) | |
Income tax (expense) benefit related to items of other comprehensive income | (3,100) | 106 | 1,624 | |
Other Comprehensive Income (Loss), After Tax | 11,437 | (391) | (4,643) | |
Comprehensive Income | $ 109,671 | $ 104,943 | $ 68,325 | |
[1] | Due to the adoption of ASU No. 2016-01, net unrealized gains on marketable equity securities were reclassified from accumulated other comprehensive income to retained earnings during the three months ended March 31, 2018. The prior period data was not restated; as such, the change in unrealized gains on marketable securities is combined with the change in net unrealized gains on debt securities for the prior period ended December 31, 2017. | |||
[2] | Reclassification adjustments are comprised of realized security gains or losses. The realized gains or losses have been reclassified out of accumulated other comprehensive income/(loss) and have affected certain lines in the Consolidated Statements of Net Income as follows: the pre-tax amount is included in securities gains/losses-net, the tax expense amount is included in the provision for income taxes and the net of tax amount is included in net income. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Reclassifications Related to Funded Status of Pension | Reclassifications Related to Unrealized Gains on Available for Sale Securities | Treasury Stock | |||
Beginning balance at Dec. 31, 2016 | $ 841,956 | $ 90,326 | $ 213,098 | $ 585,891 | $ (13,784) | $ (33,575) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 72,968 | 72,968 | |||||||||
Other comprehensive income (loss), net of tax | (4,643) | (4,643) | |||||||||
Cash dividends declared | (28,569) | (28,569) | |||||||||
Treasury stock issued | (689) | (2,183) | 1,494 | ||||||||
Recognition of restricted stock compensation expense | 3,008 | 3,008 | |||||||||
Ending balance at Dec. 31, 2017 | 884,031 | 90,326 | 216,106 | 628,107 | (18,427) | (32,081) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 105,334 | 105,334 | |||||||||
Other comprehensive income (loss), net of tax | (391) | (391) | |||||||||
Reclassification of tax effects from the Tax Act | ASU No. 2018-02 | 0 | [1] | 3,427 | [1] | (3,427) | [1] | $ (3,660) | $ 233 | |||
Repurchase of warrant | (7,652) | (7,652) | |||||||||
Cash dividends declared | (34,539) | (34,539) | |||||||||
Treasury stock repurchased | (12,256) | (12,256) | |||||||||
Treasury stock issued | (657) | (1,372) | 715 | ||||||||
Recognition of restricted stock compensation expense | 1,891 | 1,891 | |||||||||
Ending balance at Dec. 31, 2018 | 935,761 | 90,326 | 210,345 | 701,819 | (23,107) | (43,622) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 98,234 | 98,234 | |||||||||
Other comprehensive income (loss), net of tax | 11,437 | 11,437 | |||||||||
Cash dividends declared | (37,360) | (37,360) | |||||||||
Common stock issuance cost | (176) | (176) | |||||||||
Common stock issued in acquisition | 200,631 | 13,297 | 187,334 | ||||||||
Treasury stock repurchased | (18,222) | (18,222) | |||||||||
Treasury stock issued | (915) | (1,777) | 862 | ||||||||
Recognition of restricted stock compensation expense | 2,441 | 2,441 | |||||||||
Ending balance at Dec. 31, 2019 | $ 1,191,998 | $ 103,623 | $ 399,944 | $ 761,083 | $ (11,670) | $ (60,982) | |||||
[1] | Reclassification of tax effects due to the adoption of ASU No. 2018-02, relating to $(3,660) relates to funded status of pension and $233 relates to net unrealized gains on available-for-sale securities. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash dividends declared, per share (in USD per share) | $ 1.09 | $ 0.99 | $ 0.82 |
Retained Earnings | |||
Cash dividends declared, per share (in USD per share) | $ 1.09 | $ 0.99 | $ 0.82 |
Treasury stock issued, net (in shares) | 28,174 | 33,676 | 58,906 |
Treasury Stock | |||
Treasury stock repurchased (in shares) | 470,708 | 321,731 | |
Common Stock | |||
Common stock issued in acquisition (in shares) | 5,318,962 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | |||
Net Income | $ 98,234 | $ 105,334 | $ 72,968 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 14,873 | 14,995 | 13,883 |
Provision (recovery) for unfunded loan commitments | 436 | (54) | (410) |
Net depreciation, amortization and accretion | 5,763 | 4,599 | 2,498 |
Net amortization of discounts and premiums on securities | 3,243 | 3,180 | 4,003 |
Stock-based compensation expense | 2,441 | 1,891 | 3,008 |
Loss (gain) on sale of securities | 26 | 0 | (3,000) |
Gain on sale of bank branch | 0 | 0 | (1,042) |
Deferred income taxes | (381) | 3,509 | 13,832 |
Loss (gain) on sale of fixed assets | 37 | (81) | 128 |
Gain on the sale of mortgage loans, net | (1,887) | (1,537) | (1,551) |
Gain on the sale of majority interest of insurance business | 0 | (1,873) | 0 |
Pension contribution | 0 | (20,420) | 0 |
Mortgage loans originated for sale | (109,624) | (90,142) | (93,382) |
Proceeds from sale of loans | 109,082 | 93,793 | 93,991 |
Net increase in interest receivable | (3,768) | (1,635) | (2,714) |
Net (decrease) increase in interest payable | (2,223) | 2,353 | 1,349 |
Net (increase) decrease in other assets | (2,325) | 9,948 | 5,634 |
Net increase in other liabilities | 24,496 | 4,157 | 5,041 |
Net Cash Provided by Operating Activities | 138,423 | 128,017 | 114,236 |
INVESTING ACTIVITIES | |||
Proceeds from maturities, prepayments and calls of securities | 92,412 | 89,833 | 80,956 |
Proceeds from sales of securities | 59,934 | 0 | 65,801 |
Purchases of securities | (129,973) | (92,597) | (156,839) |
Net sales (purchases) of Federal Home Loan Bank stock | 6,615 | 2,547 | |
Net sales (purchases) of Federal Home Loan Bank stock | (165) | ||
Net increase in loans | (298,741) | (207,233) | (211,766) |
Proceeds from the sale of loans not originated for resale | 520 | 7,695 | 6,754 |
Purchases of premises and equipment | (5,153) | (4,172) | (4,694) |
Proceeds from the sale of premises and equipment | 71 | 135 | 422 |
Net cash acquired from bank merger | 63,759 | 0 | 0 |
Net Cash Used in Investing Activities | (210,556) | (201,964) | (212,415) |
FINANCING ACTIVITIES | |||
Net increase in core deposits | 423,203 | 231,756 | 166,054 |
Net (decrease) increase in certificates of deposit | (27,632) | 14,397 | 27,132 |
Net decrease in short-term borrowings | (200,000) | (70,000) | (120,000) |
Net increase (decrease) in securities sold under repurchase agreements | 1,505 | (31,778) | (671) |
Proceeds from long-term borrowings | 10,000 | 25,000 | 35,000 |
Repayments of long-term borrowings | (35,936) | (1,987) | (2,412) |
Treasury shares issued-net | (915) | (657) | (689) |
Repurchase common stock | (18,222) | (12,256) | 0 |
Common stock issuance costs | (176) | 0 | 0 |
Cash dividends paid to common shareholders | (37,360) | (34,539) | (28,569) |
Repurchase warrant | 0 | (7,652) | 0 |
Net Cash Provided by Financing Activities | 114,467 | 112,284 | 75,845 |
Net increase (decrease) in cash and cash equivalents | 42,334 | 38,337 | (22,334) |
Cash and cash equivalents at beginning of year | 155,489 | 117,152 | 139,486 |
Cash and Cash Equivalents at End of Year | 197,823 | 155,489 | 117,152 |
Supplemental Disclosures | |||
Transfers to other real estate owned and other repossessed assets | 2,592 | 870 | 2,238 |
Interest paid | 75,278 | 53,035 | 33,591 |
Income taxes paid, net of refunds | 14,663 | 15,728 | 33,814 |
Loans transferred to held for sale | 456 | 0 | 0 |
Loans transferred to portfolio from held for sale | 0 | 7,695 | 250 |
Transfer retained assets from sale to investment in insurance company partnership | 0 | 1,917 | 0 |
Net assets from acquisitions, excluding cash and cash equivalents | 43,637 | 0 | 0 |
Decrease in cash and cash equivalents from sale of bank branch | 0 | 0 | 154 |
Branch | |||
INVESTING ACTIVITIES | |||
Proceeds from the divestiture of businesses | 0 | 0 | 4,404 |
Majority Interest of Insurance Business | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on the sale of majority interest of insurance business | 0 | (1,873) | 0 |
INVESTING ACTIVITIES | |||
Proceeds from the divestiture of businesses | $ 0 | $ 4,540 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations S&T Bancorp, Inc., or S&T, was incorporated on March 17, 1983 under the laws of the Commonwealth of Pennsylvania as a bank holding company and has five active direct wholly owned subsidiaries, S&T Bank, 9th Street Holdings, Inc., STBA Capital Trust I, DNB Capital Trust I and DNB Capital Trust II. DNB Capital Trust I and DNB Capital Trust II were acquired with the DNB merger on November 30, 2019. We own a 50 percent interest in Commonwealth Trust Credit Life Insurance Company, or CTCLIC. We are presently engaged in nonbanking activities through the following eight entities: 9th Street Holdings, Inc.; S&T Bancholdings, Inc.; CTCLIC; S&T Insurance Group, LLC; Stewart Capital Advisors, LLC.; Downco Inc.; DN Acquisition, Inc.; and DNB Financial Services, Inc. 9th Street Holdings, Inc. and S&T Bancholdings, Inc. are investment holding companies. CTCLIC, which is a joint venture with another financial institution, acts as a reinsurer of credit life, accident and health insurance policies sold by S&T Bank and the other institution. S&T Insurance Group, LLC, through its subsidiaries, offers a variety of insurance products. Stewart Capital Advisors, LLC is a registered investment advisor that manages private investment accounts for individuals and institutions. Downco Inc. and DN Acquisition Company, Inc. were acquired with the DNB merger and were incorporated for the purpose of acquiring and holding Other Real Estate Owned acquired through foreclosure or deed in-lieu-of foreclosure, as well as Bank-occupied real estate. DNB Financial Services was also acquired with the DNB merger and is a Pennsylvania licensed insurance agency, which, through a third-party marketing agreement with Cetera Investment Services, LLC, sells a variety of insurance and investment products. On June 5, 2019 we entered into an agreement to acquire DNB Financial Corporation, or DNB, and the transaction was completed on November 30, 2019. The transaction was valued at $201.0 million and added total assets of $1.1 billion , including $909.0 million in loans, $84.2 million in goodwill and $967.3 million in deposits. On January 1, 2018, we sold a 70 percent majority interest in the assets of our wholly-owned subsidiary S&T Evergreen Insurance, LLC. We transferred our remaining 30 percent ownership interest in the net assets of S&T Evergreen Insurance, LLC to a new entity for a 30 percent ownership interest in a new insurance entity (see Note 28: Sale of a Majority Interest of Insurance Business). We use the equity method of accounting to recognize our partial ownership interest in the new entity. Accounting Policies Our financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the dates of the balance sheets and revenues and expenses for the periods then ended. Actual results could differ from those estimates. Our significant accounting policies are described below. Principles of Consolidation The Consolidated Financial Statements include the accounts of S&T and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Investments of 20 percent to 50 percent of the outstanding common stock of investees are accounted for using the equity method of accounting. Reclassification Amounts in prior years' financial statements and footnotes are reclassified whenever necessary to conform to the current year’s presentation. Reclassifications had no effect on our results of operations or financial condition. Business Combinations We account for business combinations using the acquisition method of accounting. All identifiable assets acquired, liabilities assumed and any non-controlling interest in the acquiree are recognized and measured as of the acquisition date at fair value. We record goodwill for the excess of the purchase price over the fair value of net assets acquired. Results of operations of the acquired entities are included in the consolidated statement of income from the date of acquisition. Acquired loans are recorded at fair value on the date of acquisition with no carryover of the related ALL. Determining the fair value of acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. In estimating the fair value of our acquired loans, we considered a number of factors including loss rates, internal risk rating, delinquency status, loan type, loan term, prepayment rates, recovery periods and the current interest rate environment. The premium or discount estimated through the loan fair value calculation is recognized into interest income on a level yield basis over the remaining life of the loans. Subsequent to the acquisition date, the methods utilized to estimate the required ALL for these loans is similar to the method used for originated loans; however, we record a provision for credit losses only when the required allowance exceeds the remaining fair value adjustment. Acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable at time of acquisition that all contractually required payments will not be collected. Loans acquired with evidence of credit deterioration were evaluated and not considered to be significant. Fair Value Measurements We use fair value measurements when recording and disclosing certain financial assets and liabilities. Debt securities, equity securities and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans, other real estate owned, or OREO, and other repossessed assets, mortgage servicing rights, or MSRs, and certain other assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which are developed based on market data we have obtained from independent sources. Unobservable inputs reflect our estimates of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our policy is to recognize transfers between any of the fair value hierarchy levels at the end of the reporting period in which the transfer occurred. The following are descriptions of the valuation methodologies that we use for financial instruments recorded at fair value on either a recurring or nonrecurring basis. Recurring Basis Debt Securities Available-for-Sale We obtain fair values for debt securities from a third-party pricing service which utilizes several sources for valuing fixed-income securities. We validate prices received from our pricing service through comparison to a secondary pricing service and broker quotes. We review the methodologies of the pricing service which provide us with a sufficient understanding of the valuation models, assumptions, inputs and pricing to reasonably measure the fair value of our debt securities. The market valuation sources for debt securities include observable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and condition databases, and extensive quality control programs. Equity Securities Marketable equity securities with quoted prices in active markets for identical assets are classified as Level 1. Marketable equity securities in markets that are not active and are based on other observable information for comparable assets are classified as Level 2. Marketable equity securities that are not traded in active markets and use unobservable assumptions in the market are classified as Level 3. Rabbi Trust Assets We use quoted market prices to determine the fair value of our equity security assets. These securities are reported at fair value with the gains and losses included in noninterest income in our Consolidated Statements of Net Income. These assets are held in a Rabbi Trust under a deferred compensation plan and are invested in readily quoted mutual funds. Accordingly, these assets are classified as Level 1. Rabbi Trust assets are reported in other assets in the Consolidated Balance Sheets. Derivative Financial Instruments We use derivative instruments, including interest rate swaps for commercial loans with our customers, interest rate lock commitments and the sale of mortgage loans in the secondary market. We calculate the fair value for derivatives using accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Each valuation considers the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, such as interest rate curves and implied volatilities. Accordingly, derivatives are classified as Level 2. We incorporate credit valuation adjustments into the valuation models to appropriately reflect both our own nonperformance risk and the respective counterparties’ nonperformance risk in calculating fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements and collateral postings. Nonrecurring Basis Loans Held for Sale Loans held for sale consist of 1-4 family residential loans originated for sale in the secondary market and, from time to time, certain loans transferred from the loan portfolio to loans held for sale, all of which are carried at the lower of cost or fair value. The fair value of 1-4 family residential loans is based on the principal or most advantageous market currently offered for similar loans using observable market data. The fair value of the loans transferred from the loan portfolio is based on the amounts offered for these loans in currently pending sales transactions. Loans held for sale carried at fair value are classified as Level 3. Impaired Loans Impaired loans are carried at the lower of carrying value or fair value. Fair value is determined as the recorded investment balance less any specific reserve. We establish specific reserves based on the following three impairment methods: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral less estimated selling costs when the loan is collateral dependent and we expect to liquidate the collateral. However, if repayment is expected to come from the operation of the collateral, rather than liquidation, then we do not consider estimated selling costs in determining the fair value of the collateral. Collateral values are generally based upon appraisals by approved, independent state certified appraisers. Appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or our knowledge of the borrower and the borrower’s business. Impaired loans carried at fair value are classified as Level 3. OREO and Other Repossessed Assets OREO and other repossessed assets obtained in partial or total satisfaction of a loan are recorded at the lower of recorded investment in the loan or fair value less cost to sell. Subsequent to foreclosure, these assets are carried at the lower of the amount recorded at acquisition date or fair value less cost to sell. Accordingly, it may be necessary to record nonrecurring fair value adjustments. Fair value, when recorded, is generally based upon appraisals by approved, independent state certified appraisers. Like impaired loans, appraisals on OREO may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or other information available to us. OREO and other repossessed assets carried at fair value are classified as Level 3. Mortgage Servicing Rights The fair value of MSRs is determined by calculating the present value of estimated future net servicing cash flows, considering expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. The expected rate of mortgage loan prepayments is the most significant factor driving the value of MSRs. MSRs are considered impaired if the carrying value exceeds fair value. The valuation model includes significant unobservable inputs; therefore, MSRs are classified as Level 3. MSRs are reported in other assets in the Consolidated Balance Sheets and are amortized into noninterest income in the Consolidated Statements of Net Income. Other Assets We measure certain other assets at fair value on a nonrecurring basis. Fair value is based on the application of lower of cost or fair value accounting, or write-downs of individual assets. Valuation methodologies used to measure fair value are consistent with overall principles of fair value accounting and consistent with those described above. Financial Instruments In addition to financial instruments recorded at fair value in our financial statements, fair value accounting guidance requires disclosure of the fair value of all of an entity’s assets and liabilities that are considered financial instruments. The majority of our assets and liabilities are considered financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaged in an exchange transaction. Also, it is our general practice and intent to hold our financial instruments to maturity and to not engage in trading or sales activities with respect to such financial instruments. For fair value disclosure purposes, we substantially utilize the fair value measurement criteria as required and explained above. In cases where quoted fair values are not available, we use present value methods to determine the fair value of our financial instruments. Cash and Cash Equivalents The carrying amounts reported in the Consolidated Balance Sheets for cash and due from banks, including interest-bearing deposits and federal funds sold approximate fair value. Loans With the adoption of ASU No. 2016-01, Accounting for Financial Instruments - Overall: Classification and Measurement, on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio to use the exit price notion as required by the standard. The guidance was applied on a prospective basis resulting in prior periods no longer being comparable. The fair value of variable rate loans that may reprice frequently at short-term market rates is based on carrying values adjusted for liquidity and credit risk. The fair value of variable rate loans that reprice at intervals of one year or longer, such as adjustable rate mortgage products, is estimated using discounted cash flow analyses that utilize interest rates currently being offered for similar loans and adjusted for liquidity and credit risk. The fair value of fixed rate loans is estimated using a discounted cash flow analysis that utilizes interest rates currently being offered for similar loans adjusted for liquidity and credit risk. Bank Owned Life Insurance Fair value approximates net cash surrender value of bank owned life insurance, or BOLI. Federal Home Loan Bank, or FHLB, and Other Restricted Stock It is not practical to determine the fair value of our FHLB and other restricted stock due to the restrictions placed on the transferability of these stocks; it is presented at carrying value. Deposits The fair values disclosed for deposits without defined maturities (e.g., noninterest and interest-bearing demand, money market and savings accounts) are by definition equal to the amounts payable on demand. The carrying amounts for variable rate, fixed-term time deposits approximate their fair values. Estimated fair values for fixed rate and other time deposits are based on discounted cash flow analysis using interest rates currently offered for time deposits with similar terms. The carrying amount of accrued interest approximates fair value. Short-Term Borrowings The carrying amounts of securities sold under repurchase agreements, or REPOs, and other short-term borrowings approximate their fair values. Long-Term Borrowings The fair values disclosed for fixed rate long-term borrowings are determined by discounting their contractual cash flows using current interest rates for long-term borrowings of similar remaining maturities. The carrying amounts of variable rate long-term borrowings approximate their fair values. Junior Subordinated Debt Securities The interest rate on the variable rate junior subordinated debt securities is reset quarterly; therefore, the carrying values approximate their fair values. Loan Commitments and Standby Letters of Credit Off-balance sheet financial instruments consist of commitments to extend credit and letters of credit. Except for interest rate lock commitments, estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. Other Estimates of fair value are not made for items that are not defined as financial instruments, including such items as our core deposit intangibles and the value of our trust operations. Cash and Cash Equivalents We consider cash and due from banks, interest-bearing deposits with banks and federal funds sold as cash and cash equivalents. Securities We determine the appropriate classification of securities at the time of purchase. Debt securities are classified as available-for-sale with the intent to hold for an indefinite period of time, but may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Debt securities are carried at fair value with net unrealized gains and losses deemed to be temporary and reported as a component of other comprehensive loss, net of tax. On January 1, 2018, we adopted the new accounting standard for financial instruments, which requires equity securities to be measured at fair value with net unrealized gains and losses recognized in noninterest income on the Consolidated Statements of Net Income. As a result of the adoption of this guidance $0.9 million was reclassified from accumulated other comprehensive income, or AOCI, to retained earnings. Realized gains and losses on the sale of debt securities available-for-sale and other-than-temporary impairment, or OTTI, charges are recorded within noninterest income in the Consolidated Statements of Net Income. Realized gains and losses on the sale of these securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including but not limited to, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the best estimate of the impairment charge representing credit losses, the likelihood of the security’s ability to recover any decline in its estimated fair value and whether management intends to sell the security or if it is more likely than not that management will be required to sell the investment security prior to the security’s recovery of any decline in its estimated fair value. If the impairment is considered other-than-temporary based on management’s review, the impairment must be separated into credit and non-credit components. The credit component is recognized in the Consolidated Statements of Net Income and the non-credit component is recognized in other comprehensive loss, net of applicable taxes. Loans Held for Sale Loans held for sale consist of 1-4 family residential loans originated for sale in the secondary market and, from time to time, certain loans transferred from the loan portfolio to loans held for sale, all of which are carried at the lower of cost or fair value. If a loan is transferred from the loan portfolio to the held for sale category, any write-down in the carrying amount of the loan at the date of transfer is recorded as a charge-off against the allowance for loan losses, or ALL. Subsequent declines in fair value are recognized as a charge to noninterest income. When a loan is placed in the held for sale category, we stop amortizing the related deferred fees and costs. The remaining unamortized fees and costs are recognized as part of the cost basis of the loan at the time it is sold. Gains and losses on sales of loans held for sale are included in other noninterest income in the Consolidated Statements of Net Income. Loans Loans are reported at the principal amount outstanding net of unearned income, unamortized premiums or discounts and deferred origination fees and costs. We defer certain nonrefundable loan origination and commitment fees. Accretion of discounts and amortization of premiums on loans are included in interest income in the Consolidated Statements of Net Income. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of loan yield over the respective lives of the loans without consideration of anticipated prepayments. If a loan is paid off, the remaining unaccreted or unamortized net origination fees and costs are immediately recognized into income or expense. Interest is accrued and interest income is recognized on loans as earned. Acquired loans are recorded at fair value on the date of acquisition with no carryover of the related ALL. Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. In estimating the fair value of our acquired loans, we consider a number of factors including the loan term, internal risk rating, delinquency status, prepayment rates, recovery periods, estimated value of the underlying collateral and the current interest rate environment. Closed-end installment loans, amortizing loans secured by real estate and any other loans with payments scheduled monthly are reported past due when the borrower is in arrears two or more monthly payments. Other multi-payment obligations with payments scheduled other than monthly are reported past due when one scheduled payment is due and unpaid for 30 days or more. Generally, consumer loans are charged off against the ALL upon the loan reaching 90 days past due. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. Nonaccrual or Nonperforming Loans We stop accruing interest on a loan when the borrower’s payment is 90 days past due. Loans are also placed on nonaccrual status when we have doubt about the borrower’s ability to comply with contractual repayment terms, even if payment is not past due. When the interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. Interest income is recognized on nonaccrual loans on a cash basis if recovery of the remaining principal is reasonably assured. As a general rule, a nonaccrual loan may be restored to accrual status when its principal and interest is paid current and the bank expects repayment of the remaining contractual principal and interest, or when the loan otherwise becomes well secured and in the process of collection. Troubled Debt Restructurings Troubled debt restructurings, or TDRs, are loans where we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower. We strive to identify borrowers with financial difficulty early and work with them to come to a mutual resolution to modify the terms of their loan before the loan reaches nonaccrual status. These modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates or principal deferment. While unusual, there may be instances of principal forgiveness. These modifications are generally for longer term periods that would not be considered insignificant. Additionally, we classify loans where the debt obligation has been discharged through a Chapter 7 Bankruptcy and not reaffirmed as TDRs. We individually evaluate all substandard commercial loans that have experienced a forbearance or change in terms agreement, and all substandard consumer and residential mortgage loans that entered into an agreement to modify their existing loan, to determine if they should be designated as TDRs. All TDRs are considered to be impaired loans and will be reported as impaired loans for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. Further, all impaired loans are reported as nonaccrual loans unless the loan is a TDR that has met the requirements to be returned to accruing status. TDRs can be returned to accruing status if the ultimate collectability of all contractual amounts due, according to the restructured agreement, is not in doubt and there is a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring. Allowance for Loan Losses The ALL reflects our estimates of probable credit losses inherent within the loan portfolio as of the balance sheet date, and it is presented as a reserve against loans in the Consolidated Balance Sheets. Determination of an appropriate ALL is inherently subjective and may be subject to significant changes from period to period. The methodology for determining the ALL has two main components: evaluation and impairment tests of individual loans and evaluation and impairment tests of certain groups of homogeneous loans with similar risk characteristics. Loans are considered to be impaired when based upon current information and events it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all substandard and nonaccrual commercial loans greater than $0.5 million for impairment. A TDR will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is expected that the remaining principal and interest will be fully collected according to the restructured agreement. For each TDR or other impaired loan, we conduct further analysis to determine the probable loss and assign a specific reserve to the loan if deemed appropriate. Specific reserves are established based on the following three impairment methods: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral less estimated selling costs when the loan is collateral dependent and we expect to liquidate the collateral. Our impairment evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the impaired loan is less than the recorded investment in the loan balance. The ALL for homogeneous loans is calculated using a systematic methodology with both a quantitative and a qualitative analysis that is applied on a quarterly basis. The ALL model is comprised of five distinct portfolio segments: 1) Commercial Real Estate, or CRE, 2) Commercial and Industrial, or C&I, 3) Commercial Construction, 4) Consumer Real Estate and 5) Other Consumer. Each segment has a distinct set of risk characteristics monitored by management. We further assess and monitor risk and performance at a more disaggregated level which includes our internal risk rating system for the commercial segments and type of collateral, lien position and loan-to-value, or LTV, for the consumer segments. We first apply historical loss rates to pools of loans with similar risk characteristics. Loss rates are calculated by historical charge-offs that have occurred within each pool of loans over the loss emergence period, or LEP. The LEP is an estimate of the average amount of time from when an event happens that causes the borrower to be unable to pay on a loan until the loss is confirmed through a loan charge-off. In conjunction with our annual review of the ALL assumptions, we have updated our analysis of LEPs for our Commercial and Consumer loan portfolio segments using our loan charge-off history. Based on our updated analysis, we shortened our LEP over the construction portfolio from 4 years to 3 years and made no other changes. We estimate an LEP of 3 years for CRE, 3 years for construction and 1.25 years for C&I. We estimate an LEP of 2.75 years for Consumer Real Estate and 1.25 years for Other Consumer. Another key assumption is the look-back period, or LBP, which represents the historical data period utilized to calculate loss rates. We used 10.5 years for our LBP for all portfolio segments which encompasses our loss experience during the Financial Crisis, and our more recent improved loss experience. After consideration of the historic loss calculations, management applies qualitative adjustments so that the ALL is reflective of the inherent losses that |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS On November 30, 2019, we completed our acquisition of DNB Financial Corporation, or DNB, and DNB First National Association, its wholly-owned bank subsidiary, located in Downingtown, Pennsylvania. The acquisition of DNB expanded our Eastern Pennsylvania market by adding 14 banking locations, in an all-stock transaction structured as a merger of DNB with and into S&T, with S&T being the surviving entity. The related systems conversion of DNB into S&T Bank occurred on February 7, 2020. DNB shareholders received, without interest, 1.22 shares of S&T common stock for each share of DNB common stock. The total purchase price was approximately $201.0 million , which included $0.4 million of cash and 5,318,964 S&T common shares at a fair value of $37.72 per share. The fair value of $37.72 per share of S&T common stock was based on the November 30, 2019 closing price. The Merger was accounted for under the acquisition method of accounting and our Consolidated Financial Statements include all DNB Bank transactions from December 1, 2019 through December 31, 2019. Goodwill of $84.2 million was calculated as the excess of the consideration exchanged over the preliminary fair value of the identifiable net assets acquired. All of the goodwill was assigned to our Community Banking segment. The goodwill recognized will not be deductible for tax purposes. The following table provides a summary of the assets acquired and liabilities assumed by DNB, the preliminary estimates of the fair value adjustments necessary to adjust those acquired assets and assumed liabilities to estimated fair value and the preliminary estimates of the resultant fair values of those assets and liabilities by S&T. S&T intends to finalize its accounting for the acquisition of DNB within one year from the date of acquisition. The preliminary fair value adjustments shown in the following table continue to be evaluated by management and may be subject to further adjustment. November 30, 2019 (dollars in thousands) As Recorded by DNB Preliminary Fair Value Adjustments (1) As Recorded by S&T Fair Value of Assets Acquired Cash and cash equivalents $ 64,119 $ — $ 64,119 Securities and other investments 108,715 183 108,898 Loans 917,127 (8,143 ) 908,984 Allowance for loan losses (6,487 ) 6,487 — Goodwill 15,525 (15,525 ) — Premises and equipment 6,782 8,090 14,872 Accrued interest receivable 4,138 — 4,138 Deferred income taxes 2,017 (3,298 ) (1,281 ) Core deposits and other intangible assets 269 (269 ) — Other assets 24,883 (4,278 ) 20,605 Total Assets Acquired 1,137,088 (16,753 ) 1,120,335 Fair Value of Liabilities Assumed Deposits 966,263 1,002 967,265 Borrowings 37,617 (276 ) 37,341 Accrued interest payable and other liabilities 11,157 (3,184 ) 7,973 Total Liabilities Assumed 1,015,037 (2,458 ) 1,012,579 Total Net Assets Acquired $ 122,051 $ (14,295 ) $ 107,756 Core Deposit Intangible Asset $ 7,288 Wealth Management Intangible Asset 1,772 Total Fair Value of Net Assets Acquired and Identified $ 116,816 Consideration Paid Cash $ 360 Common stock 200,631 Fair Value of Total Consideration $ 200,991 Goodwill $ 84,175 (1) Management is continuing to evaluate the purchase accounting fair value adjustments related to loans, including loan classification, intangible assets, premises and equipment, deferred income taxes, other assets and borrowings until the final valuations and appraisals are complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. Loans acquired in the Merger were recorded at fair value with no carryover of the related ALL from DNB. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The preliminary fair value of the loans acquired was estimated at $909.0 million , net of a $10.5 million discount. The discount is accreted to interest income over the remaining contractual life of the loans. At December 31, 2019, acquired portfolio loans totaled $899.3 million and included $455.6 million of CRE, $85.4 million of C&I, $77.1 million of commercial construction, $219.7 million of residential mortgage, $56.4 million of home equity, $4.1 million of installment and other consumer and $1.0 million of consumer construction. Direct costs related to the DNB merger were expensed as incurred. As of December 31, 2019, we recognized $11.4 million of merger related expenses, including $4.7 million for data processing contract termination and system conversion costs, $2.8 million in legal and professional expenses, $3.4 million in severance payments and $0.5 million in other expenses. The Consolidated Statements of Net Income for 2019 include net interest income of $3.2 million and net income of $2.1 million from the DNB merger since the November 30, 2019 acquisition date. The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of S&T and DNB to give effect to the merger as if it had occurred on January 1, 2018 for the periods presented. Unaudited Pro Forma Information December 31 (dollars in thousands, except per share data) 2019 2018 Total Revenue $ 341,117 $ 325,668 Net Income (1) 120,964 116,046 Earnings Per Common Share: (1) Basic $ 3.03 $ 2.90 Diluted $ 3.03 $ 2.88 (1) Excludes non-recurring merger-related expenses of $13.6 million , net of tax at 21 percent. Total pro forma revenue is defined as net interest income plus non-interest income, excluding gains and losses on sales of investment securities available-for-sale. Pro forma adjustments include intangible amortization expense, net amortization or accretion of valuation amounts and income tax expense. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Diluted earnings per share is calculated using both the two-class and the treasury stock methods with the more dilutive method used to determine reported diluted earnings per share. The two-class method was more dilutive in 2019, 2018 and 2017 and was used to determine reported diluted earnings per share. The following table reconciles the numerators and denominators of basic and diluted EPS: Years ended December 31, (dollars in thousands, except share and per share data) 2019 2018 2017 Numerator for Earnings per Common Share—Basic: Net income $ 98,234 $ 105,334 $ 72,968 Less: Income allocated to participating shares 260 304 242 Net Income Allocated to Common Shareholders $ 97,974 $ 105,030 $ 72,726 Numerator for Earnings per Common Share—Diluted: Net income $ 98,234 $ 105,334 $ 72,968 Denominators: Weighted Average Common Shares Outstanding—Basic 34,628,191 34,775,784 34,729,376 Add: Dilutive potential common shares 94,763 199,625 225,391 Denominator for Treasury Stock Method—Diluted 34,722,954 34,975,409 34,954,767 Weighted Average Common Shares Outstanding—Basic 34,628,191 34,775,784 34,729,376 Add: Average participating shares outstanding 51,287 100,733 115,418 Denominator for Two-Class Method—Diluted 34,679,478 34,876,517 34,844,794 Earnings per common share—basic $ 2.84 $ 3.03 $ 2.10 Earnings per common share—diluted $ 2.82 $ 3.01 $ 2.09 Warrants considered anti-dilutive excluded from dilutive potential common shares - exercise price $31.53 per share, expires January 2019 (1) — 267,106 438,681 Restricted stock considered anti-dilutive excluded from dilutive potential common shares 12,686 81,587 88,578 (1) We repurchased our outstanding warrant on September 11, 2018 for $7.7 million . Prior to the repurchase, the warrant provided the holder the right to 517,012 shares of common stock at a strike price of $31.53 per share via cashless exercise. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at December 31, 2019 and 2018. There was one transfer between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented. The transfer is related to marketable equity securities with quoted prices in active markets that moved from level 2 to level 1. December 31, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total ASSETS Debt securities available-for-sale: U.S. Treasury securities $ — $ 10,040 $ — $ 10,040 Obligations of U.S. government corporations and agencies — 157,697 — 157,697 Collateralized mortgage obligations of U.S. government corporations and agencies — 189,348 — 189,348 Residential mortgage-backed securities of U.S. government corporations and agencies — 22,418 — 22,418 Commercial mortgage-backed securities of U.S. government corporations and agencies — 275,870 — 275,870 Corporate Bonds — 7,627 — 7,627 Obligations of states and political subdivisions — 116,133 — 116,133 Total Debt Securities Available-for-Sale — 779,133 — 779,133 Marketable equity securities 5,078 72 — 5,150 Total Securities 5,078 779,205 — 784,283 Securities held in a Rabbi Trust 5,987 — — 5,987 Derivative financial assets: Interest rate swaps — 25,647 — 25,647 Interest rate lock commitments — 321 — 321 Forward sale contracts — 1 — 1 Total Assets $ 11,065 $ 805,174 $ — $ 816,239 LIABILITIES Derivative financial liabilities: Interest rate swaps $ — $ 25,615 $ — $ 25,615 Total Liabilities $ — $ 25,615 $ — $ 25,615 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total ASSETS Debt securities available-for-sale: U.S. Treasury securities $ — $ 9,736 $ — $ 9,736 Obligations of U.S. government corporations and agencies — 128,261 — 128,261 Collateralized mortgage obligations of U.S. government corporations and agencies — 148,659 — 148,659 Residential mortgage-backed securities of U.S. government corporations and agencies — 24,350 — 24,350 Commercial mortgage-backed securities of U.S. government corporations and agencies — 246,784 — 246,784 Obligations of states and political subdivisions — 122,266 — 122,266 Total Debt Securities Available-for-Sale — 680,056 — 680,056 Marketable equity securities — 4,816 — 4,816 Total Securities — 684,872 — 684,872 Securities held in a Rabbi Trust 4,725 — — 4,725 Derivative financial assets: Interest rate swaps — 5,504 — 5,504 Interest rate lock commitments — 251 — 251 Forward sale contracts — 55 — 55 Total Assets $ 4,725 $ 690,682 $ — $ 695,407 LIABILITIES Derivative financial liabilities: Interest rate swaps $ — $ 5,340 $ — $ 5,340 Total Liabilities $ — $ 5,340 $ — $ 5,340 We classify financial instruments as Level 3 when valuation models are used because significant inputs are not observable in the market. We may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. Nonrecurring assets are recorded at the lower of cost or fair value in our financial statements. There were no liabilities measured at fair value on a nonrecurring basis at either December 31, 2019 or December 31, 2018. The following table presents our assets that are measured at fair value on a nonrecurring basis by the fair value hierarchy level as of the dates presented: December 31, 2019 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS (1) Loans held for sale $ — $ — $ — $ — $ — $ — $ — $ — Impaired loans — — 38,697 38,697 — — 21,441 21,441 Other real estate owned — — 3,231 3,231 — — 2,826 2,826 Mortgage servicing rights — — 1,134 1,134 — — 1,197 1,197 Total Assets $ — $ — $ 43,062 $ 43,062 $ — $ — $ 25,464 $ 25,464 (1) This table presents only the nonrecurring items that are recorded at fair value in our financial statements. The carrying values and fair values of our financial instruments at December 31, 2019 and 2018 are presented in the following tables: Fair Value Measurements at December 31, 2019 (dollars in thousands) Carrying Value (1) Total Level 1 Level 2 Level 3 ASSETS Cash and due from banks, including interest-bearing deposits $ 197,823 $ 197,823 $ 197,823 $ — $ — Securities 784,283 784,283 5,078 779,205 — Loans held for sale 5,256 5,256 — — 5,256 Portfolio loans, net 7,074,928 6,940,875 — — 6,940,875 Bank owned life insurance 80,473 80,473 — 80,473 — FHLB and other restricted stock 22,977 22,977 — — 22,977 Securities held in a Rabbi Trust 5,987 5,987 5,987 — — Mortgage servicing rights 4,662 4,650 — — 4,650 Interest rate swaps 25,647 25,647 — 25,647 — Interest rate lock commitments 321 321 — 321 — Forward sale contracts - mortgage loans 1 1 — 1 — LIABILITIES Deposits $ 7,036,576 $ 7,034,595 $ 5,441,143 $ 1,593,452 $ — Securities sold under repurchase agreements 19,888 19,888 19,888 — — Short-term borrowings 281,319 281,319 281,319 — — Long-term borrowings 50,868 51,339 4,678 46,661 — Junior subordinated debt securities 64,277 64,277 64,277 — — Interest rate swaps 25,615 25,615 — 25,615 — (1) As reported in the Consolidated Balance Sheets Fair Value Measurements at December 31, 2018 (dollars in thousands) Carrying Value (1) Total Level 1 Level 2 Level 3 ASSETS Cash and due from banks, including interest-bearing deposits $ 155,489 $ 155,489 $ 155,489 $ — $ — Securities 684,872 684,872 — 684,872 — Loans held for sale 2,371 2,469 — — 2,469 Portfolio loans, net 5,885,652 5,728,843 — — 5,728,843 Bank owned life insurance 73,900 73,900 — 73,900 — FHLB and other restricted stock 29,435 29,435 — — 29,435 Securities held in a Rabbi Trust 4,725 4,725 4,725 — — Mortgage servicing rights 4,464 5,181 — — 5,181 Interest rate swaps 5,504 5,504 — 5,504 — Interest rate lock commitments 251 251 — 251 — Forward sale contracts 55 55 — 55 — LIABILITIES Deposits $ 5,673,922 $ 5,662,193 $ 4,261,884 $ 1,400,309 $ — Securities sold under repurchase agreements 18,383 18,383 18,383 — — Short-term borrowings 470,000 470,000 470,000 — — Long-term borrowings 70,314 70,578 38,610 31,968 Junior subordinated debt securities 45,619 45,619 45,619 — — Interest rate swaps 5,340 5,340 — 5,340 — (1) As reported in the Consolidated Balance Sheets |
Restrictions on Cash and Due fr
Restrictions on Cash and Due from Bank Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS | RESTRICTIONS ON CASH AND DUE FROM BANK ACCOUNTS The Board of Governors of the Federal Reserve System, or the Federal Reserve, imposes certain reserve requirements on all depository institutions. These reserves are maintained in the form of vault cash or as an interest-bearing balance with the Federal Reserve. The required reserves averaged $43.9 million for 2019, $38.8 million for 2018 and $36.2 million for 2017. |
Dividend and Loan Restrictions
Dividend and Loan Restrictions | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
DIVIDEND AND LOAN RESTRICTIONS | DIVIDEND AND LOAN RESTRICTIONS S&T is a legal entity separate and distinct from its banking and other subsidiaries. A substantial portion of our revenues consist of dividend payments we receive from S&T Bank. S&T Bank, in turn, is subject to state laws and regulations that limit the amount of dividends it can pay to us. In addition, both S&T and S&T Bank are subject to various general regulatory policies relating to the payment of dividends, including requirements to maintain adequate capital above regulatory minimums. The Federal Reserve has indicated that banking organizations should generally pay dividends only if (i) the organization’s net income available to common shareholders over the past year has been sufficient to fully fund the dividends and (ii) the prospective rate of earnings retention appears consistent with the organization’s capital needs, asset quality and overall financial condition. Thus, under certain circumstances based upon our financial condition, our ability to declare and pay quarterly dividends may require consultation with the Federal Reserve and may be prohibited by applicable Federal Reserve Board guidance. Federal law prohibits us from borrowing from S&T Bank unless such loans are collateralized by specific obligations. Further, such loans are limited to 10 percent of S&T Bank’s capital stock and surplus. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table presents the fair values of our securities portfolio at the dates presented: December 31, (dollars in thousands) 2019 2018 Debt securities available-for-sale $ 779,133 $ 680,056 Marketable equity securities 5,150 4,816 Total Securities $ 784,283 $ 684,872 Debt Securities Available-for-Sale The following tables present the amortized cost and fair value of debt securities available-for-sale as of December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 9,969 $ 71 $ — $ 10,040 $ 9,958 $ — $ (222 ) $ 9,736 Obligations of U.S. government corporations and agencies 155,969 1,773 (45 ) 157,697 129,267 68 (1,074 ) 128,261 Collateralized mortgage obligations of U.S. government corporations and agencies 186,879 2,773 (304 ) 189,348 149,849 795 (1,985 ) 148,659 Residential mortgage-backed securities of U.S. government corporations and agencies 22,120 321 (23 ) 22,418 24,564 203 (417 ) 24,350 Commercial mortgage-backed securities of U.S. government corporations and agencies 273,771 2,680 (581 ) 275,870 251,660 — (4,876 ) 246,784 Corporate Obligations 7,603 24 — 7,627 — — — — Obligations of states and political subdivisions 112,116 4,017 — 116,133 119,872 2,448 (54 ) 122,266 Total Debt Securities Available-for-Sale $ 768,427 $ 11,659 $ (953 ) $ 779,133 $ 685,170 $ 3,514 $ (8,628 ) $ 680,056 The following table shows the composition of gross and net realized gains and losses for the periods presented: Years ended December 31, (dollars in thousands) 2019 2018 2017 Gross realized gains $ 41 $ — $ 3,986 Gross realized losses (67 ) — (986 ) Net Realized (Losses)/Gains $ (26 ) $ — $ 3,000 The following tables present the fair value and the age of gross unrealized losses on debt securities available-for-sale by investment category as of the dates presented: December 31, 2019 Less Than 12 Months 12 Months or More Total (dollars in thousands) Number of Securities Fair Unrealized Losses Number of Securities Fair Unrealized Losses Number of Securities Fair Unrealized Losses U.S. Treasury securities — $ — $ — — $ — $ — — $ — $ — Obligations of U.S. government corporations and agencies 3 22,638 (45 ) — — — 3 22,638 (45 ) Collateralized mortgage obligations of U.S. government corporations and agencies 6 23,393 (73 ) 6 25,254 (231 ) 12 48,647 (304 ) Residential mortgage-backed securities of U.S. government corporations and agencies 1 982 (2 ) 1 2,534 (21 ) 2 3,516 (23 ) Commercial mortgage-backed securities of U.S. government corporations and agencies 9 90,005 (581 ) — — — 9 90,005 (581 ) Corporate Obligations (1) 1 79 — — — — 1 79 — Obligations of states and political subdivisions — — — — — — — — — Total Temporarily Impaired Debt Securities 20 $ 137,097 $ (701 ) 7 $ 27,788 $ (252 ) 27 $ 164,885 $ (953 ) (1) Unrealized loss on Corporate Obligations rounded to less than one thousand dollars. December 31, 2018 Less Than 12 Months 12 Months or More Total (dollars in thousands) Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses U.S. Treasury securities — $ — $ — 1 $ 9,736 $ (222 ) 1 $ 9,736 $ (222 ) Obligations of U.S. government corporations and agencies 7 67,649 (613 ) 6 35,760 (461 ) 13 103,409 (1,074 ) Collateralized mortgage obligations of U.S. government corporations and agencies 2 12,495 (44 ) 14 76,179 (1,941 ) 16 88,674 (1,985 ) Residential mortgage-backed securities of U.S. government corporations and agencies 2 2,327 (45 ) 3 9,241 (372 ) 5 11,568 (417 ) Commercial mortgage-backed securities of U.S. government corporations and agencies 8 75,466 (1,032 ) 19 171,318 (3,844 ) 27 246,784 (4,876 ) Obligations of states and political subdivisions 2 9,902 (23 ) 1 5,247 (31 ) 3 15,149 (54 ) Total Temporarily Impaired Debt Securities 21 $ 167,839 $ (1,757 ) 44 $ 307,481 $ (6,871 ) 65 $ 475,320 $ (8,628 ) We do not believe any individual unrealized loss as of December 31, 2019 represents an other-than-temporary impairment, or OTTI. At December 31, 2019, there were 27 debt securities and at December 31, 2018 there were 65 debt securities in an unrealized loss position. The unrealized losses on debt securities were primarily attributable to changes in interest rates and not related to the credit quality of the issuers. All debt securities are determined to be investment grade and paying principal and interest according to the contractual terms of the security. We do not intend to sell and it is more likely than not that we will not be required to sell any of the securities in an unrealized loss position before recovery of their amortized cost. The following table presents net unrealized gains and losses, net of tax, on debt securities available-for-sale included in accumulated other comprehensive income/(loss), for the periods presented: December 31, 2019 December 31, 2018 (dollars in thousands) Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) Total unrealized gains/(losses) on debt securities available-for-sale $ 11,659 $ (953 ) $ 10,706 $ 3,514 $ (8,628 ) $ (5,114 ) Income tax (expense) benefit (2,486 ) 203 (2,283 ) (746 ) 1,832 1,086 Net Unrealized Gains/(Losses), Net of Tax Included in Accumulated Other Comprehensive Income/(Loss) $ 9,173 $ (750 ) $ 8,423 $ 2,768 $ (6,796 ) $ (4,028 ) The amortized cost and fair value of debt securities available-for-sale at December 31, 2019 by contractual maturity are included in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2019 (dollars in thousands) Amortized Cost Fair Value Obligations of the U.S. Treasury, U.S. government corporations and agencies, and obligations of states and political subdivisions Due in one year or less $ 103,008 $ 103,278 Due after one year through five years 98,401 100,527 Due after five years through ten years 69,213 71,933 Due after ten years 15,035 15,759 Debt Securities Available-for-Sale With Maturities 285,657 291,497 Collateralized mortgage obligations of U.S. government corporations and agencies 186,879 189,348 Residential mortgage-backed securities of U.S. government corporations and agencies 22,120 22,418 Commercial mortgage-backed securities of U.S. government corporations and agencies 273,771 275,870 Total Debt Securities Available-for-Sale $ 768,427 $ 779,133 At December 31, 2019 and 2018, debt securities with carrying values of $286 million and $236 million were pledged for various regulatory and legal requirements. Marketable Equity Securities The following table presents realized and unrealized net gains and losses for our marketable equity securities for the periods presented: Years ended December 31, (dollars in thousands) 2019 2018 2017 Marketable Equity Securities Unrealized Gains on Equity Securities Held at Beginning of Year $ 1,001 $ 1,329 $ 3,670 Net market gains/(losses) 334 (328 ) 1,646 Less: Net gains for equity securities sold — — 3,987 Unrealized Gains on Equity Securities Still Held $ 1,335 $ 1,001 $ 1,329 |
Loans and Loans Held for Sale
Loans and Loans Held for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS AND LOANS HELD FOR SALE | LOANS AND LOANS HELD FOR SALE Loans are presented net of unearned income of $4.6 million and $5.3 million at December 31, 2019 and 2018 and net of a discount related to purchase accounting fair value adjustments of $12.3 million and $3.3 million at December 31, 2019 and December 31, 2018. The following table summarizes the composition of originated and acquired loans as of the dates presented: December 31, (dollars in thousands) 2019 2018 Commercial Commercial real estate $ 3,416,518 $ 2,921,832 Commercial and industrial 1,720,833 1,493,416 Commercial construction 375,445 257,197 Total Commercial Loans 5,512,796 4,672,445 Consumer Residential mortgage 998,585 726,679 Home equity 538,348 471,562 Installment and other consumer 79,033 67,546 Consumer construction 8,390 8,416 Total Consumer Loans 1,624,356 1,274,203 Total Portfolio Loans 7,137,152 5,946,648 Loans held for sale 5,256 2,371 Total Loans $ 7,142,408 $ 5,949,019 As of December 31, 2019 our acquired portfolio loans from the DNB merger were $899.3 million including $455.6 million of CRE, $85.4 million of C&I, $77.1 million of commercial construction, $219.7 million of residential mortgage, $56.4 million of home equity, $4.1 million of installment and other and $1.0 million of consumer construction. We attempt to limit our exposure to credit risk by diversifying our loan portfolio by segment, geography, collateral and industry and actively managing concentrations. When concentrations exist in certain segments, we mitigate this risk by reviewing the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments. Total commercial loans represented 77 percent of total portfolio loans at December 31, 2019 and 79 percent at December 31, 2018. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $3.8 billion or 69 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2019 and comprised $3.2 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2018. Further segmentation of the CRE and Commercial Construction portfolios by collateral type reveals no concentration in excess of 11 percent of both total CRE and Commercial Construction loans at December 31, 2019 and 14 percent at December 31, 2018. We lend primarily in Pennsylvania and the contiguous states of Ohio, New York, West Virginia and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this geography, resulting in a concentration. We believe our knowledge and familiarity with customers and conditions locally outweighs this geographic concentration risk. The conditions of the local and regional economies are monitored closely through publicly available data and information supplied by our customers. We also use subscription services for additional geographic and industry specific information. Our CRE and Commercial Construction portfolios have exposure outside this geography of 5.4 percent of the combined portfolios and 2.9 percent of total portfolio loans at both December 31, 2019 and 2018. The following table summarizes our restructured loans as of the dates presented: December 31, 2019 December 31, 2018 (dollars in thousands) Performing TDRs Nonperforming TDRs Total TDRs Performing TDRs Nonperforming TDRs Total TDRs Commercial real estate $ 22,233 $ 6,713 $ 28,946 $ 2,054 $ 1,139 $ 3,193 Commercial and industrial 6,909 695 7,604 7,026 6,646 13,672 Commercial construction 1,425 — 1,425 1,912 406 2,318 Residential mortgage 2,013 822 2,835 2,214 1,543 3,757 Home equity 4,371 678 5,049 3,568 1,349 4,917 Installment and other consumer 9 4 13 12 5 17 Total $ 36,960 $ 8,912 $ 45,872 $ 16,786 $ 11,088 $ 27,874 The significant increase in performing TDRs in 2019 primarily related to a $20.2 million CRE relationship that was modified during the third quarter of 2019. The modification granted a concession to the borrower that reduced their monthly payments resulting in the TDR. The loan remains in performing status based on the strong historical repayment performance of the borrower prior to the restructure as well as recent changes occurring in the business which demonstrate the borrower’s ability to pay under the revised contractual terms. Guarantor support and sufficient collateral value further support the performing status of the loan. The following tables present the restructured loans by loan segment and by type of concession for the years ended December 31: 2019 2018 (dollars in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment (1) Post-Modification Outstanding Recorded Investment (1) Total Difference in Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment (1) Post-Modification Outstanding Recorded Investment (1) Total Difference in Recorded Investment Totals by Loan Segment Commercial Real Estate Maturity date extension — $ — $ — $ — 1 $ 256 $ 179 $ (77 ) Maturity date extension and interest rate reduction 1 150 145 (6 ) — — — — Principal deferral 3 23,517 23,059 (458 ) 1 90 90 — Principal deferral and maturity date extension 1 436 436 — — — — — Below market interest rate 2 569 1,519 950 — — — — Total Commercial Real Estate 7 24,672 25,159 486 2 346 269 (77 ) Commercial and Industrial Maturity date extension — — — — 2 768 166 (602 ) Maturity date extension and interest rate reduction 1 4,751 4,136 (616 ) — — — — Principal deferral 1 1,250 1,250 — 4 4,815 4,383 (432 ) Principal deferral and maturity date extension 1 292 275 (17 ) 6 5,355 5,341 (14 ) Total Commercial and Industrial 3 6,294 5,661 (633 ) 12 10,938 9,890 (1,048 ) Residential Mortgage Principal deferral and maturity date extension 3 183 183 — — — — — Consumer bankruptcy (2) 3 165 157 (9 ) 5 387 374 (13 ) Total Residential Mortgage 6 348 340 (9 ) 5 387 374 (13 ) Home equity Maturity date extension and interest rate reduction — — — — 2 47 46 (1 ) Principal deferral and maturity date extension 2 39 39 — — — — — Interest rate reduction 2 190 188 (2 ) 1 120 120 — Consumer bankruptcy (2) 29 886 810 (77 ) 22 811 681 (130 ) Total Home Equity 33 1,116 1,037 (79 ) 25 978 847 (131 ) Installment and Other Consumer Consumer bankruptcy (2) 4 16 11 (5 ) 2 23 4 (19 ) Total Installment and Other Consumer 4 $ 16 $ 11 $ (5 ) 2 $ 23 $ 4 $ (19 ) Totals by Concession Type Maturity date extension — $ — $ — $ — 3 $ 1,024 $ 345 $ (679 ) Maturity date extension and interest rate reduction 2 4,902 4,280 (622 ) 2 47 46 (1 ) Principal deferral 4 24,767 24,309 (458 ) 5 4,905 4,473 (432 ) Principal deferral and maturity date extension 7 950 933 (17 ) 6 5,355 5,341 $ (14 ) Interest rate reduction 2 190 188 (2 ) 1 120 120 — Below market interest rate 2 569 1,519 950 — — — — Consumer bankruptcy (2) 36 1,068 977 (91 ) 29 1,221 1,059 $ (162 ) Total 53 $ 32,446 $ 32,206 $ (240 ) 46 $ 12,672 $ 11,384 $ (1,288 ) (1) Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. (2) Consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. We had 24 commitments for $4.6 million to lend additional funds on TDRs at December 31, 2019 compared to six commitments for $11.6 million at December 31, 2018. We had six TDRs with a total loan balance of $0.5 million that were returned to accruing status during 2019. We returned no TDRs to accruing status during 2018. Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. There were no TDRs that defaulted during the year ended December 31, 2019 and four TDRs that defaulted during 2018 totaling $4.4 million that were restructured within the last 12 months prior to defaulting. The following table is a summary of nonperforming assets as of the dates presented: December 31, (dollars in thousands) 2019 2018 Nonperforming Assets Nonaccrual loans $ 45,145 $ 34,985 Nonaccrual TDRs 8,912 11,088 Total nonaccrual loans 54,057 46,073 OREO 3,525 3,092 Total Nonperforming Assets $ 57,582 $ 49,165 NPAs increased $8.4 million to $57.6 million during 2019 compared to $49.2 million for the year ended 2018. The increase is primarily related to one commercial and industrial nonperforming, impaired loan relationship of $10.0 million that experienced deterioration during the fourth quarter of 2019. The following table presents a summary of the aggregate amount of loans to certain officers, directors of S&T or any affiliates of such persons as of December 31: (dollars in thousands) 2019 2018 Balance at beginning of year $ 8,682 $ 10,070 New loans 2,442 2,841 Repayments or no longer considered a related party (2,899 ) (4,229 ) Balance at end of year $ 8,225 $ 8,682 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES We maintain an ALL at a level determined to be appropriate to absorb estimated probable credit losses inherent within the loan portfolio as of the balance sheet date. We develop and document a systematic ALL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Consumer Real Estate and 5) Other Consumer. The following are key risks within each portfolio segment: CRE —Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, strip malls and apartments. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied. C&I —Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. Commercial Construction —Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer. Consumer Real Estate —Loans secured by first and second liens such as home equity loans, home equity lines of credit and 1-4 family residential mortgages, including purchase money mortgages. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt. Other Consumer —Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines and credit cards. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values. We further assess risk within each portfolio segment by pooling loans with similar risk characteristics. For the commercial loan classes, the most important indicator of risk is the internally assigned risk rating, including pass, special mention and substandard. Consumer loans are pooled by type of collateral, lien position and loan to value, or LTV, ratio for Consumer Real Estate loans. Historical loss rates are applied to these loan pools to determine the reserve for loans collectively evaluated for impairment. The ALL methodology for groups of loans collectively evaluated for impairment is comprised of both a quantitative and qualitative analysis. A key assumption in the quantitative component of the reserve is the LEP. The LEP is an estimate of the average amount of time from the point at which a loss is incurred on a loan to the point at which the loss is confirmed. Another key assumption is the LBP which represents the historical data period utilized to calculate loss rates. Management monitors various credit quality indicators for both the commercial and consumer loan portfolios, including delinquency, nonperforming status and changes in risk ratings on a monthly basis. The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented: December 31, 2019 (dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days + Past Due (1) Non- performing Total Past Due Loans Total Loans Commercial real estate $ 3,376,156 $ 9,595 $ 716 $ 911 $ 29,140 $ 40,362 $ 3,416,518 Commercial and industrial 1,700,522 2,940 1,946 1,443 13,982 20,311 1,720,833 Commercial construction 372,589 956 1,163 — 737 2,856 375,445 Residential mortgage 986,148 2,016 1,727 1,175 7,519 12,437 998,585 Home equity 533,367 2,059 141 142 2,639 4,981 538,348 Installment and other consumer 78,189 426 292 86 40 844 79,033 Consumer construction 8,390 — — — — — 8,390 Loans held for sale 5,256 — — — — — 5,256 Total $ 7,060,617 $ 17,992 $ 5,985 $ 3,757 $ 54,057 $ 81,791 $ 7,142,408 (1) Represents acquired loans that were recorded at fair value at the acquisition date and remain performing. December 31, 2018 (dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days + Past Due Non- performing Total Past Due Loans Total Loans Commercial real estate $ 2,903,997 $ 3,638 $ 2,145 $ — $ 12,052 $ 17,835 $ 2,921,832 Commercial and industrial 1,482,473 1,000 983 — 8,960 10,943 1,493,416 Commercial construction 243,004 — — — 14,193 14,193 257,197 Residential mortgage 717,447 1,584 520 — 7,128 9,232 726,679 Home equity 465,152 2,103 609 — 3,698 6,410 471,562 Installment and other consumer 67,281 148 75 — 42 265 67,546 Consumer construction 8,416 — — — — — 8,416 Loans held for sale 2,371 — — — — — 2,371 Total $ 5,890,141 $ 8,473 $ 4,332 $ — $ 46,073 $ 58,878 $ 5,949,019 We continually monitor the commercial loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention and substandard. Our risk ratings are consistent with regulatory guidance and are as follows: Pass —The loan is currently performing and is of high quality. Special Mention —A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date. Substandard —A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable. The following tables present the recorded investment in commercial loan classes by internally assigned risk ratings as of the dates presented: December 31, 2019 (dollars in thousands) Commercial Real Estate % of Total Commercial and Industrial % of Total Commercial Construction % of Total Total % of Total Pass $ 3,270,437 95.7 % $ 1,636,314 95.1 % $ 347,324 92.5 % $ 5,254,076 95.3 % Special mention 57,285 1.7 % 36,484 2.1 % 10,109 2.7 % 103,878 1.9 % Substandard 86,772 2.5 % 47,980 2.8 % 17,899 4.8 % 152,651 2.8 % Doubtful 2,023 — % 55 — % 113 — % 2,191 — % Total $ 3,416,518 100.0 % $ 1,720,833 100.0 % $ 375,445 100.0 % $ 5,512,796 100.0 % December 31, 2018 (dollars in thousands) Commercial Real Estate % of Total Commercial and Industrial % of Total Commercial Construction % of Total Total % of Total Pass $ 2,774,997 95.0 % $ 1,394,067 93.4 % $ 233,103 90.7 % $ 4,402,167 94.3 % Special mention 54,627 1.9 % 25,368 1.7 % 7,349 2.8 % 87,344 1.8 % Substandard 90,913 3.1 % 73,621 4.9 % 16,658 6.5 % 181,192 3.9 % Doubtful 1,295 — % 360 — % 87 — % 1,742 — % Total $ 2,921,832 100.0 % $ 1,493,416 100.0 % $ 257,197 100.0 % $ 4,672,445 100.0 % Commercial substandard loans decreased $28.5 million from December 31, 2018 mainly due to loan pay-offs and upgrades of risk ratings. Special mention loans increased $16.5 million to $103.9 million at December 31, 2019 due to downgrades as a result of updated financial information. We monitor the delinquent status of the consumer portfolio on a monthly basis. Loans are considered nonperforming when interest and principal are 90 days or more past due or management has determined that a material deterioration in the borrower’s financial condition exists. The risk of loss is generally highest for nonperforming loans. Loans 90 days past due and still performing represent acquired loans that were recorded at fair value at the acquisition date. The following tables present the recorded investment in consumer loan classes by performing and nonperforming status as of the dates presented: December 31, 2019 (dollars in thousands) Residential Mortgage % of Total Home Equity % of Total Installment and other consumer % of Total Consumer Construction % of Total Total % of Total Performing $ 991,066 99.2 % $ 535,709 99.5 % $ 78,993 99.9 % $ 8,390 100.0 % $ 1,614,158 99.4 % Nonperforming 7,519 0.8 % 2,639 0.5 % 40 0.1 % — — % 10,198 0.6 % Total $ 998,585 100.0 % $ 538,348 100.0 % $ 79,033 100.0 % $ 8,390 100.0 % $ 1,624,356 100.0 % December 31, 2018 (dollars in thousands) Residential Mortgage % of Total Home Equity % of Total Installment and other consumer % of Total Consumer Construction % of Total Total % of Total Performing $ 719,551 99.0 % $ 467,864 99.2 % $ 67,504 99.9 % $ 8,416 100.0 % $ 1,263,335 99.1 % Nonperforming 7,128 1.0 % 3,698 0.8 % 42 0.1 % — — % 10,868 0.9 % Total $ 726,679 100.0 % $ 471,562 100.0 % $ 67,546 100.0 % $ 8,416 100.0 % $ 1,274,203 100.0 % We individually evaluate all substandard and nonaccrual commercial loans greater than $0.5 million for impairment. Loans are considered to be impaired when based upon current information and events it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. A TDR will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is expected that the remaining principal and interest will be fully collected according to the restructured agreement. For each TDR or other impaired loan, we conduct further analysis to determine the probable loss and assign a specific reserve to the loan if deemed appropriate. The following table summarizes investments in loans considered to be impaired and related information on those impaired loans as of the dates presented: December 31, 2019 December 31, 2018 (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With a related allowance recorded: Commercial real estate $ 13,011 $ 14,322 $ 2,023 $ 7,733 $ 7,733 $ 1,295 Commercial and industrial 10,001 10,001 55 884 893 360 Commercial construction 489 489 113 489 489 87 Consumer real estate — — — 15 14 10 Other consumer 9 9 9 11 12 11 Total with a Related Allowance Recorded 23,510 24,821 2,200 9,132 9,141 1,763 Without a related allowance recorded: Commercial real estate 34,909 40,201 — 3,636 4,046 — Commercial and industrial 7,605 10,358 — 12,788 14,452 — Commercial construction 1,425 2,935 — 15,286 19,198 — Consumer real estate 7,884 8,445 — 8,659 9,635 — Other consumer 4 11 — 5 18 — Total without a Related Allowance Recorded 51,827 61,950 — 40,374 47,349 — Total: Commercial real estate 47,920 54,523 2,023 11,369 11,779 1,295 Commercial and industrial 17,606 20,359 55 13,672 15,345 360 Commercial construction 1,914 3,424 113 15,775 19,687 87 Consumer real estate 7,884 8,445 — 8,674 9,649 10 Other consumer 13 20 9 16 30 11 Total $ 75,337 $ 86,771 $ 2,200 $ 49,506 $ 56,490 $ 1,763 Impaired loans increased $25.8 million to $75.3 million compared to $49.5 million at December 31, 2018. During 2019, we modified a $20.2 million commercial relationship. The modification granted a concession to the borrower that reduced their monthly payments resulting in a TDR. The loan remains in performing status based on the strong historical repayment performance of the borrower prior to the restructure as well as recent changes occurring in the business which demonstrate the borrower’s ability to pay under the revised contractual terms. Guarantor support and sufficient collateral value further support the performing status of the loan. The following table summarizes average recorded investment and interest income recognized on loans considered to be impaired for the years presented: For the Year Ended December 31, 2019 December 31, 2018 (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial real estate $ 14,018 $ — $ 7,780 $ 238 Commercial and industrial 10,135 576 591 38 Commercial construction 489 — 561 — Consumer real estate — — 16 1 Other consumer 13 1 19 1 Total with a Related Allowance Recorded 24,655 577 8,967 278 Without a related allowance recorded: Commercial real estate 35,739 943 3,911 172 Commercial and industrial 5,565 368 4,722 257 Commercial construction 1,831 131 17,643 217 Consumer real estate 8,190 397 9,701 483 Other consumer 7 — 24 — Total without a Related Allowance Recorded 51,332 1,839 36,001 1,129 Total: Commercial real estate 49,757 943 11,691 410 Commercial and industrial 15,700 944 5,313 295 Commercial construction 2,320 131 18,204 217 Consumer real estate 8,190 397 9,717 484 Other consumer 20 1 43 1 Total $ 75,987 $ 2,416 $ 44,968 $ 1,407 The following tables detail activity in the ALL for the periods presented: 2019 (dollars in thousands) Commercial Real Estate Commercial and Industrial Commercial Construction Consumer Real Estate Other Consumer Total Balance at beginning of year $ 33,707 $ 11,596 $ 7,983 $ 6,187 $ 1,523 $ 60,996 Charge-offs (3,664 ) (8,928 ) (406 ) (1,353 ) (1,838 ) (16,189 ) Recoveries 137 1,388 5 637 377 2,544 Net (Charge-offs) (3,527 ) (7,540 ) (401 ) (716 ) (1,461 ) (13,645 ) Provision for loan losses 397 11,625 318 866 1,667 14,873 Balance at End of Year $ 30,577 $ 15,681 $ 7,900 $ 6,337 $ 1,729 $ 62,224 2018 (dollars in thousands) Commercial Real Estate Commercial and Industrial Commercial Construction Consumer Real Estate Other Consumer Total Balance at beginning of year $ 27,235 $ 8,966 $ 13,167 $ 5,479 $ 1,543 $ 56,390 Charge-offs (372 ) (8,574 ) (2,630 ) (1,319 ) (1,694 ) (14,589 ) Recoveries 309 1,723 1,135 541 492 4,200 Net (Charge-offs) (63 ) (6,851 ) (1,495 ) (778 ) (1,202 ) (10,389 ) Provision for loan losses 6,535 9,481 (3,689 ) 1,486 1,182 14,995 Balance at End of Year $ 33,707 $ 11,596 $ 7,983 $ 6,187 $ 1,523 $ 60,996 Loans acquired in the DNB merger were recorded at fair value of $909.0 million with no carryover of the related ALL. The following tables present the ALL and recorded investments in loans by category as of December 31: 2019 Allowance for Loan Losses Portfolio Loans (dollars in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Commercial real estate $ 2,023 $ 28,554 $ 30,577 $ 47,920 $ 3,368,598 $ 3,416,518 Commercial and industrial 55 15,626 15,681 17,606 1,703,227 1,720,833 Commercial construction 113 7,787 7,900 1,914 373,531 375,445 Consumer real estate — 6,337 6,337 7,884 1,537,439 1,545,323 Other consumer 9 1,720 1,729 13 79,020 79,033 Total $ 2,200 $ 60,024 $ 62,224 $ 75,337 $ 7,061,815 $ 7,137,152 2018 Allowance for Loan Losses Portfolio Loans (dollars in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Commercial real estate $ 1,295 $ 32,412 $ 33,707 $ 11,369 $ 2,910,463 $ 2,921,832 Commercial and industrial 360 11,236 11,596 13,672 1,479,744 1,493,416 Commercial construction 87 7,896 7,983 15,775 241,422 257,197 Consumer real estate 10 6,177 6,187 8,674 1,197,983 1,206,657 Other consumer 11 1,512 1,523 16 67,530 67,546 Total $ 1,763 $ 59,233 $ 60,996 $ 49,506 $ 5,897,142 $ 5,946,648 |
Right-Of-Use Assets and Lease L
Right-Of-Use Assets and Lease Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | RIGHT-OF-USE ASSETS AND LEASE LIABILITIES We have 51 lease contracts that we have recognized under the new lease standard, ASC Topic 842. These leases are for our branch, loan production and support services facilities. We have recognized 48 operating leases and three finance leases under the new lease accounting standard. Included in the lease expense for premises are leases with one S&T director, which totaled approximately $0.2 million for each of the three years 2019, 2018 and 2017. The following table presents our lease expense for finance and operating leases for the years ended December 31: (dollars in thousands) 2019 2018 2017 Operating lease expense $ 4,221 $ 3,850 $ 3,980 Amortization of ROU assets - finance leases 101 44 43 Interest on lease liabilities - finance leases (1) 74 11 20 Total Lease Expense $ 4,396 $ 3,905 $ 4,043 (1) Included in borrowings interest expense in our Consolidated Statements of Net Income. All other lease costs in this table are included in net occupancy expense. The following table presents our ROU assets, weighted average term and the discount rates for finance and operating leases as of December 31, 2019: (dollars in thousands) Operating Leases ROU assets $ 47,686 Operating cash flows $ 5,028 Finance Leases ROU assets $ 1,513 Operating cash flows $ 47 Financing cash flows $ 57 Weighted Average Lease Term - Years Operating leases 19.18 Finance leases 12.16 Weighted Average Discount Rate Operating leases 5.94 % Finance leases 5.73 % Leases acquired from the DNB merger were remeasured at the acquisition date resulting in a ROU asset of $10.9 million at December 31, 2019. The following table presents the maturity analysis of lease liabilities for finance and operating leases as of December 31, 2019: (dollars in thousands) Maturity Analysis Finance Operating Total 2020 $ 267 $ 4,618 $ 4,885 2021 269 4,586 4,855 2022 225 4,647 4,872 2023 129 4,716 4,845 2024 130 4,760 4,890 Thereafter 1,277 69,641 70,918 Total 2,297 92,968 95,265 Less: Present value discount (719 ) (40,461 ) (41,180 ) Lease Liabilities $ 1,578 $ 52,507 $ 54,085 |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES | RIGHT-OF-USE ASSETS AND LEASE LIABILITIES We have 51 lease contracts that we have recognized under the new lease standard, ASC Topic 842. These leases are for our branch, loan production and support services facilities. We have recognized 48 operating leases and three finance leases under the new lease accounting standard. Included in the lease expense for premises are leases with one S&T director, which totaled approximately $0.2 million for each of the three years 2019, 2018 and 2017. The following table presents our lease expense for finance and operating leases for the years ended December 31: (dollars in thousands) 2019 2018 2017 Operating lease expense $ 4,221 $ 3,850 $ 3,980 Amortization of ROU assets - finance leases 101 44 43 Interest on lease liabilities - finance leases (1) 74 11 20 Total Lease Expense $ 4,396 $ 3,905 $ 4,043 (1) Included in borrowings interest expense in our Consolidated Statements of Net Income. All other lease costs in this table are included in net occupancy expense. The following table presents our ROU assets, weighted average term and the discount rates for finance and operating leases as of December 31, 2019: (dollars in thousands) Operating Leases ROU assets $ 47,686 Operating cash flows $ 5,028 Finance Leases ROU assets $ 1,513 Operating cash flows $ 47 Financing cash flows $ 57 Weighted Average Lease Term - Years Operating leases 19.18 Finance leases 12.16 Weighted Average Discount Rate Operating leases 5.94 % Finance leases 5.73 % Leases acquired from the DNB merger were remeasured at the acquisition date resulting in a ROU asset of $10.9 million at December 31, 2019. The following table presents the maturity analysis of lease liabilities for finance and operating leases as of December 31, 2019: (dollars in thousands) Maturity Analysis Finance Operating Total 2020 $ 267 $ 4,618 $ 4,885 2021 269 4,586 4,855 2022 225 4,647 4,872 2023 129 4,716 4,845 2024 130 4,760 4,890 Thereafter 1,277 69,641 70,918 Total 2,297 92,968 95,265 Less: Present value discount (719 ) (40,461 ) (41,180 ) Lease Liabilities $ 1,578 $ 52,507 $ 54,085 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT The following table is a summary of premises and equipment as of the dates presented: December 31, (dollars in thousands) 2019 2018 Land $ 9,018 $ 6,266 Premises 60,767 52,423 Furniture and equipment 41,713 36,911 Leasehold improvements 11,290 7,118 122,788 102,718 Accumulated depreciation (65,848 ) (60,988 ) Total $ 56,940 $ 41,730 Certain banking facilities are leased under finance leases and are included in total premises and equipment. We have one right-of-use asset for land in the amount of $0.4 million and two right-of use assets for buildings totaling $1.1 million . Additional information relating to leased right-of-use assets is included in Note 10. Right-of-Use Assets and Lease Liabilities. Depreciation expense related to premises and equipment was $5.4 million in 2019, $5.0 million in 2018 and $5.1 million in 2017. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table presents goodwill as of the dates presented: December 31, (dollars in thousands) 2019 2018 Balance at beginning of year $ 287,446 $ 291,670 Additions (1) 84,175 — Other adjustments — (4,224 ) Balance at End of Year $ 371,621 $ 287,446 (1) Management is continuing to evaluate the purchase accounting fair value adjustments for the DNB merger. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Additional goodwill of $84.2 million was recorded during 2019 for our acquisition of DNB. Refer to Note 2 Business Combinations for further details on the DNB merger. We sold a majority interest in our insurance business which reduced goodwill by $4.2 million in 2018. Goodwill is reviewed for impairment annually or more frequently if it is determined that a triggering event has occurred. Based upon our qualitative assessment performed for our annual impairment analysis, we concluded that it is more likely than not that the fair value of the reporting units exceeds the carrying value. In general, the overall macroeconomic conditions and more specifically the economic conditions of the banking industry have been very good. Additionally, our overall performance has been good and we did not identify any other facts and circumstances causing us to conclude that it is more likely than not that the fair value of the reporting units would be less than the carrying value. The following table presents a summary of intangible assets as of the dates presented: December 31, (dollars in thousands) 2019 2018 Gross carrying amount at beginning of year $ 21,898 $ 22,114 Additions (1) 9,154 80 Other adjustments — (296 ) Accumulated amortization (20,133 ) (19,297 ) Balance at End of Year $ 10,919 $ 2,601 (1) Management is still evaluating the intangible asset valuation due to the final independent valuation report not being complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. Intangible assets as of December 31, 2019 consisted of $10.9 million for core deposits and wealth management customer relationships resulting from acquisitions. The addition of $9.2 million during 2019 was due to $7.3 million for core deposit intangible assets and $1.9 million for wealth management customer relationships related to the DNB merger. We determined the amount of identifiable intangible assets for our core deposits based upon an independent valuation. Other intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. There were no triggering events in 2019 requiring an impairment analysis to be completed. Amortization expense on finite-lived intangible assets totaled $0.8 million , $0.9 million and $1.2 million for 2019, 2018 and 2017. The following is a summary of the expected amortization expense for finite-lived intangible assets, assuming no new additions, for each of the five years following December 31, 2019 and thereafter: (dollars in thousands) Amount 2020 $ 2,421 2021 1,738 2022 1,474 2023 1,274 2024 1,110 Thereafter 2,902 Total $ 10,919 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The following table indicates the amounts representing the value of derivative assets and derivative liabilities at December 31: Derivatives (included in Other Assets) Derivatives (included in Other Liabilities) (dollars in thousands) 2019 2018 2019 2018 Derivatives not Designated as Hedging Instruments Interest Rate Swap Contracts—Commercial Loans Fair value $ 25,647 $ 5,504 $ 25,615 $ 5,340 Notional amount 740,762 325,750 740,762 325,750 Collateral posted — 160 26,127 — Interest Rate Lock Commitments—Mortgage Loans Fair value 321 251 — — Notional amount 9,829 6,054 — — Forward Sale Contracts—Mortgage Loans Fair value 1 55 — — Notional amount 12,750 6,000 — — Presenting offsetting derivatives that are subject to legally enforceable netting arrangements with the same party is permitted. For example, we may have a derivative asset and a derivative liability with the same counterparty to a swap transaction and are permitted to offset the asset position and the liability position resulting in a net presentation. The following table indicates the gross amounts of commercial loan swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at December 31: Derivatives (included in Other Assets) Derivatives (included in Other Liabilities) (dollars in thousands) 2019 2018 2019 2018 Derivatives not Designated as Hedging Instruments Gross amounts recognized $ 26,146 $ 8,733 $ 26,114 $ 8,569 Gross amounts offset (499 ) (3,229 ) (499 ) (3,229 ) Net amounts presented in the Consolidated Balance Sheets 25,647 5,504 25,615 5,340 Gross amounts not offset (1) — (160 ) (26,127 ) — Net Amount $ 25,647 $ 5,344 $ (512 ) $ 5,340 (1) Amounts represent collateral received/posted for the periods presented. The following table indicates the gain or loss recognized in income on derivatives for the years ended December 31: (dollars in thousands) 2019 2018 2017 Derivatives not Designated as Hedging Instruments Interest rate swap contracts—commercial loans $ (132 ) $ 145 $ 17 Interest rate lock commitments—mortgage loans 70 25 (11 ) Forward sale contracts—mortgage loans (54 ) 60 52 Total Derivative (Loss)/Gain $ (116 ) $ 230 $ 58 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |
MORTGAGE SERVICING RIGHTS | MORTGAGE SERVICING RIGHTS For the years ended December 31, 2019, 2018 and 2017, the 1-4 family mortgage loans that were sold to Fannie Mae amounted to $94.5 million , $79.3 million and $78.8 million . At December 31, 2019, 2018 and 2017 our servicing portfolio totaled $509.2 million , $473.7 million and $441.0 million . The following table indicates MSRs and the net carrying values: (dollars in thousands) Servicing Rights Valuation Allowance Net Carrying Value Balance at December 31, 2017 $ 4,192 $ (59 ) $ 4,133 Additions 907 — 907 Amortization (581 ) — (581 ) Temporary recapture — 5 5 Balance at December 31, 2018 $ 4,518 $ (54 ) $ 4,464 Additions 1,086 — 1,086 Amortization (665 ) — (665 ) Temporary (impairment) — (223 ) (223 ) Balance at December 31, 2019 $ 4,939 $ (277 ) $ 4,662 |
Qualified Affordable Housing
Qualified Affordable Housing | 12 Months Ended |
Dec. 31, 2019 | |
Investments in Affordable Housing Projects [Abstract] | |
QUALIFIED AFFORDABLE HOUSING | QUALIFIED AFFORDABLE HOUSING As part of our responsibilities under the Community Reinvestment Act and due to their favorable federal income tax benefits, we invest in Low Income Housing projects. As a limited partner in these operating partnerships, we receive tax credits and tax deductions for losses incurred by the underlying properties. We use the cost method to account for these partnerships. Our total investment in qualified affordable housing projects was $4.8 million at December 31, 2019 and $6.3 million at December 31, 2018. Amortization expense, included in other noninterest expense in the Consolidated Statements of Net Income, was $2.6 million , $2.7 million and $3.0 million for December 31, 2019, 2018 and 2017. The amortization expense was offset by tax credits of $4.2 million , $3.1 million and $3.4 million for December 31, 2019, 2018 and 2017 as a reduction to our federal tax provision. On September 11, 2019, we entered into a new qualified affordable housing project and committed to an investment of $10.2 million . As of December 31, 2019, we have invested $1.5 million in this new project. We expect to recognize a $0.5 million income tax benefit in our tax provision in 2020 from tax credits related to this project. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS The following table presents the composition of deposits at December 31 and interest expense for the years ended December 31: 2019 2018 2017 (dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 1,698,082 $ — $ 1,421,156 $ — $ 1,387,712 $ — Interest-bearing demand 962,331 3,915 573,693 93 603,141 67 Money market 1,949,811 30,236 1,482,065 20,018 1,146,156 9,204 Savings 830,919 1,928 784,970 1,773 893,119 2,081 Certificates of deposit 1,595,433 26,947 1,412,038 18,972 1,397,763 13,978 Total $ 7,036,576 $ 63,026 $ 5,673,922 $ 40,856 $ 5,427,891 $ 25,330 The aggregate of all certificates of deposits over $100,000, including brokered CDs, was $754.8 million and $575.2 million at December 31, 2019 and 2018. Certificates of deposits over $250,000, including brokered CDs, were $347.5 million and $256.0 million at December 31, 2019 and 2018. The following table indicates the scheduled maturities of certificates of deposit at December 31, 2019: (dollars in thousands) Amount 2020 $ 1,272,707 2021 220,480 2022 63,915 2023 21,991 2024 12,012 Thereafter 4,328 Total $ 1,595,433 |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS Short-term borrowings are for terms under or equal to one year and are comprised of securities sold under REPOs and FHLB advances. All REPOs are overnight short-term investments and are not insured by the Federal Deposit Insurance Corporation, or FDIC. Securities pledged as collateral under these REPO financing arrangements cannot be sold or repledged by the secured party and, therefore, the REPOs are accounted for as secured borrowings. Mortgage-backed securities with amortized cost of $22.7 million and carrying value of $23.0 million at December 31, 2019 and amortized cost of $24.2 million and carrying value of $ 23.9 million at December 31, 2018 were pledged as collateral for these secured transactions. The pledged securities are held in safekeeping at the Federal Reserve. Due to the overnight short-term nature of REPOs, potential risk due to a decline in the value of the pledged collateral is low. Collateral pledging requirements with REPOs are monitored daily. FHLB advances are for various terms and are secured by a blanket lien on residential mortgages and other real estate secured loans. The following table presents the composition of short-term borrowings, the weighted average interest rate as of December 31 and interest expense for the years ended December 31: 2019 2018 2017 (dollars in thousands) Balance Weighted Average Interest Rate Interest Expense Balance Weighted Average Interest Rate Interest Expense Balance Weighted Average Interest Rate Interest Expense REPOs $ 19,888 0.74 % $ 110 $ 18,383 0.46 % $ 222 $ 50,161 0.39 % $ 54 FHLB advances 281,319 1.84 % 6,416 470,000 2.65 % 11,082 540,000 1.47 % 7,399 Total Short-term Borrowings $ 301,207 1.76 % $ 6,526 $ 488,383 2.57 % $ 11,304 $ 590,161 1.38 % $ 7,453 |
Long-Term Borrowings and Subord
Long-Term Borrowings and Subordinated Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM BORROWINGS AND SUBORDINATED DEBT | LONG-TERM BORROWINGS AND SUBORDINATED DEBT Long-term borrowings are for original terms greater than one year and are comprised of FHLB advances, capital leases and junior subordinated debt securities. Our long-term borrowings at the Pittsburgh FHLB were $49.3 million as of December 31, 2019 and $69.8 million as of December 31, 2018. Long-term FHLB advances are secured by the same loans as short-term FHLB advances. Total loans pledged as collateral at the FHLB were $4.4 billion at December 31, 2019. We were eligible to borrow up to an additional $2.6 billion based on qualifying collateral, to a maximum borrowing capacity of $3.1 billion at December 31, 2019. The following table represents the balance of long-term borrowings, the weighted average interest rate as of December 31 and interest expense for the years ended December 31: (dollars in thousand) 2019 2018 2017 Long-term borrowings $ 50,868 $ 70,314 $ 47,301 Weighted average interest rate 2.60 % 2.84 % 1.88 % Interest expense $ 1,831 $ 1,129 $ 463 Scheduled annual maturities and average interest rates for all of our long-term debt for each of the five years subsequent to December 31, 2019 and thereafter are as follows: (dollars in thousands) Balance Average Rate 2020 $ 27,058 2.91 % 2021 1,115 3.57 % 2022 7,592 2.24 % 2023 464 5.71 % 2024 13,381 1.71 % Thereafter 1,258 5.83 % Total $ 50,868 2.61 % Junior Subordinated Debt Securities The following table represents the composition of junior subordinated debt securities at December 31 and the interest expense for the years ended December 31: 2019 2018 2017 (dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Junior subordinated debt $ 34,753 $ 1,059 $ 25,000 $ 951 $ 25,000 $ 708 Junior subordinated debt—trust preferred securities 29,524 1,251 20,619 1,149 20,619 955 Total $ 64,277 $ 2,310 $ 45,619 $ 2,100 $ 45,619 $ 1,663 The following table summarizes the key terms of our junior subordinated debt securities: (dollars in thousands) 2001 Trust 2005 Trust 2015 Junior 2006 Junior Subordinated Debt 2008 Trust Preferred Securities Junior Subordinated Debt $— $— $9,750 $25,000 $— Trust Preferred Securities 5,155 4,124 — — 20,619 Stated Maturity Date 7/25/2031 5/23/2035 3/6/2025 12/15/2036 3/15/2038 Optional redemption date at par Any time after 7/25/2011 Any time after 5/23/2010 Quarterly after 4/1/2020 Any time after 9/15/2011 Any time after 3/15/2013 Regulatory Capital Tier 1 Tier 1 Tier 2 Tier 2 Tier 1 Interest Rate 6 Month LIBOR plus 375 bps 3 Month LIBOR plus 177 bps fixed at 4.25% until 4/1/2020 then prime plus 100 bps 3 month LIBOR plus 160 bps 3 month LIBOR plus 350 bps Interest Rate at December 31, 2019 6.00% 3.68% 4.25% 3.49% 5.39% We have completed three private placements of trust preferred securities to financial institutions. As a result, we own 100 percent of the common equity of STBA Capital Trust I, DNB Capital Trust I and DNB Capital Trust II, or the Trusts. The Trusts were formed to issue mandatorily redeemable capital securities to third-party investors. The proceeds from the sale of the securities and the issuance of the common equity by the Trusts were invested in junior subordinated debt securities issued by us. The third party investors are considered the primary beneficiaries of the Trusts; therefore, the Trusts qualify as variable interest entities, but are not consolidated into our financial statements. The Trusts pays dividends on the securities at the same rate as the interest paid by us on the junior subordinated debt held by the Trusts. DNB Capital Trust I and DNB Capital Trust II were acquired with the DNB merger. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments The following table sets forth our commitments and letters of credit as of the dates presented: December 31, (dollars in thousands) 2019 2018 Commitments to extend credit $ 1,910,805 $ 1,464,892 Standby letters of credit 80,040 77,134 Total $ 1,990,845 $ 1,542,026 Estimates of the fair value of these off-balance sheet items were not made because of the short-term nature of these arrangements and the credit standing of the counterparties. Our allowance for unfunded loan commitments totaled $3.0 million at December 31, 2019 and $2.1 million at December 31, 2018. The allowance for unfunded commitments is included in other liabilities in the Consolidated Balance Sheets. Litigation In the normal course of business, we are subject to various legal and administrative proceedings and claims. While any type of litigation contains a level of uncertainty, we believe that the outcome of such proceedings or claims pending will not have a material adverse effect on our consolidated financial position or results of operations. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS The information presented in the following table presents the point of revenue recognition for revenue from contracts with customers. Other revenue streams are excluded such as: interest income, net securities gains and losses, insurance, mortgage banking and other revenues that are accounted for under other GAAP. Years ended December 31, (dollars in thousands) 2019 2018 2017 Revenue Streams (1) Point of Revenue Recognition Service charges on deposit accounts Over a period of time $ 1,859 $ 1,972 $ 1,984 At a point in time 11,457 11,124 10,474 $ 13,316 $ 13,096 $ 12,458 Debit and credit card Over a period time $ 723 $ 656 $ 537 At a point in time 12,682 12,022 11,493 $ 13,405 $ 12,679 $ 12,029 Wealth management Over a period of time $ 6,939 $ 7,113 $ 7,067 At a point in time 1,684 2,971 2,691 $ 8,623 $ 10,084 $ 9,758 Other fee revenue At a point in time $ 3,836 $ 3,854 $ 3,679 (1) Refer to Note 1. Summary of Significant Accounting Policies for the types of revenue streams that are included within each category. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table presents the composition of income tax expense (benefit) for the years ended December 31: (dollars in thousands) 2019 2018 2017 Federal Current $ 18,918 $ 13,616 $ 32,282 Deferred (406 ) 3,517 13,980 Total Federal 18,512 17,133 46,262 State Current 589 720 323 Deferred 25 (8 ) (148 ) Total State 614 712 175 Total Federal and State $ 19,126 $ 17,845 $ 46,437 The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before income taxes. We ordinarily generate an annual effective tax rate that is less than the statutory rate of 21 percent primarily due to benefits resulting from certain partnership investments, such as low income housing and historic rehabilitation projects, tax-exempt interest, excludable dividend income and tax-exempt income on BOLI. The state tax provision is due to taxable business activities conducted at our loan production office in New York. On December 22, 2017, H.R.1, originally known as the Tax Cuts and Jobs Act, or Tax Act, was signed into law. The Tax Act resulted in significant changes to the U.S. corporate tax system including a federal corporate rate reduction from 35 percent to 21 percent. The Tax Act also established new tax laws that became effective January 1, 2018. GAAP requires us to record the effects of a tax law change in the period of enactment. As a result, in 2017 we re-measured our deferred tax assets and liabilities and recorded a provisional adjustment of $13.4 million . This re-measurement adjustment was recognized as an increase to our income tax expense in the fourth quarter of 2017. The calculation over the income tax effects of the Tax Act was completed in the third quarter of 2018. We recognized a $3.0 million income tax benefit as a result of finalizing the calculation. The following table presents a reconciliation of the statutory tax rate to the effective tax rate for the years ended December 31: 2019 2018 2017 Statutory tax rate 21.0 % 21.0 % 35.0 % Low income housing tax credits (3.3 )% (2.5 )% (2.9 )% Tax-exempt interest (2.1 )% (2.1 )% (4.0 )% Bank owned life insurance (0.4 )% (0.4 )% (0.8 )% Gain on sale of a majority interest of insurance business — % 0.7 % — % Merger related expenses 0.3 % — % — % Other 0.8 % 0.3 % 0.3 % Impact of the Tax Act — % (2.5 )% 11.3 % Effective Tax Rate 16.3 % 14.5 % 38.9 % The following table presents significant components of our temporary differences as of the dates presented: December 31, (dollars in thousands) 2019 2018 Deferred Tax Assets: Allowance for loan losses $ 13,798 $ 13,463 Net unrealized losses on securities available-for-sale — 1,091 Other employee benefits 3,039 2,712 Low income housing partnerships 3,494 3,249 Net adjustment to funded status of pension 5,438 5,173 Lease liabilities 11,257 — State net operating loss carryforwards 5,134 4,573 Other 1,856 2,856 Gross Deferred Tax Assets 44,016 33,117 Less: Valuation allowance (5,134 ) (4,573 ) Total Deferred Tax Assets 38,882 28,544 Deferred Tax Liabilities: Net unrealized gains on securities available-for-sale (2,570 ) — Prepaid pension (5,971 ) (6,164 ) Deferred loan income (3,555 ) (3,219 ) Purchase accounting adjustments (1,269 ) (100 ) Depreciation on premises and equipment (592 ) (477 ) Right-of-use lease assets (10,476 ) — Other (1,243 ) (1,375 ) Total Deferred Tax liabilities (25,676 ) (11,335 ) Net Deferred Tax Asset $ 13,206 $ 17,209 We establish a valuation allowance when it is more likely than not that we will not be able to realize the benefit of the deferred tax assets. Except for Pennsylvania net operating losses, or NOLs, we have determined that no valuation allowance is needed for deferred tax assets because it is more likely than not that these assets will be realized through future reversals of existing temporary differences and through future taxable income. The valuation allowance is reviewed quarterly and adjusted based on management’s assessments of realizable deferred tax assets. Gross deferred tax assets were reduced by a valuation allowance of $5.1 million in 2019 and $4.6 million in 2018 related to Pennsylvania income tax NOLs. The Pennsylvania NOL carryforwards total $51.4 million and will expire in the years 2020 - 2040 . Unrecognized Tax Benefits The following table reconciles the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31: (dollars in thousands) 2019 2018 2017 Balance at beginning of year $ 768 $ 909 $ 804 Prior period tax positions (10 ) (251 ) (37 ) Current period tax positions 293 110 142 Balance at End of Year $ 1,051 $ 768 $ 909 Amount That Would Impact the Effective Tax Rate if Recognized $ 848 $ 607 $ 770 |
Tax Effects on Other Comprehens
Tax Effects on Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
TAX EFFECTS ON OTHER COMPREHENSIVE INCOME (LOSS) | TAX EFFECTS ON OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the tax effects of the components of other comprehensive income (loss) for the years ended December 31: (dollars in thousands) Pre-Tax Amount Tax (Expense) Benefit Net of Tax Amount 2019 Net change in unrealized gains on debt securities available-for sale $ 15,793 $ (3,367 ) $ 12,426 Net available-for-sale securities losses reclassified into earnings 26 (6 ) 20 Adjustment to funded status of employee benefit plans (1,282 ) 273 (1,009 ) Other Comprehensive Income $ 14,537 $ (3,100 ) $ 11,437 2018 Net change in unrealized gains on securities available-for-sale (1) $ (6,794 ) $ 1,449 $ (5,345 ) Net available-for-sale securities losses reclassified into earnings — — — Adjustment to funded status of employee benefit plans 6,297 (1,343 ) 4,954 Other Comprehensive Loss $ (497 ) $ 106 $ (391 ) 2017 Net change in unrealized gains on securities available-for-sale $ (1,275 ) $ 448 $ (827 ) Net available-for-sale securities gains reclassified into earnings (3,000 ) 1,054 (1,946 ) Adjustment to funded status of employee benefit plans (1,992 ) 122 (1,870 ) Other Comprehensive Loss $ (6,267 ) $ 1,624 $ (4,643 ) (1) Due to the adoption of ASU No. 2016-01, net unrealized gains on marketable equity securities were reclassified from accumulated other comprehensive income to retained earnings during the three months ended March 31, 2018. The prior period data was not restated; as such, the change in unrealized gains on marketable securities is combined with the change in net unrealized gains on debt securities for the prior period ended December 31, 2017. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS We maintain a qualified defined benefit pension plan, or Plan, covering substantially all employees hired prior to January 1, 2008. The benefits are based on years of service and the employee’s compensation for the highest five consecutive years in the last ten years through March 31, 2016 when the Plan was frozen. Contributions are intended to provide for benefits attributed to employee service to date and for those benefits expected to be earned in the future. Our qualified and nonqualified defined benefit plans were amended to freeze benefit accruals for all persons entitled to benefits under the plan in 2016. We will continue recording pension expense related to these plans, primarily representing interest costs on the accumulated benefit obligation and amortization of actuarial losses accumulated in the plan, as well as income from expected investment returns on pension assets. Since the plans have been frozen, no service costs are included in net periodic pension expense. The expected long-term rate of return on plan assets is 4.80 percent . We made a $20.4 million contribution to our qualified defined benefit plan on September 7, 2018. The fair value of the plan was not re-measured for the impact of the contribution. The pension contribution was deducted on our 2017 Consolidated Federal Income Tax Return and we recognized a return to provision discrete tax benefit of $2.9 million due to the decrease in the federal statutory rate of 35 percent to 21 percent resulting from tax legislation enacted in December 2017. The following table summarizes the activity in the benefit obligation and Plan assets deriving the funded status, which is recorded in other liabilities in the Consolidated Balance Sheets: (dollars in thousands) 2019 2018 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 95,200 $ 106,664 Interest cost 3,987 3,882 Actuarial gain/(loss) 13,996 (7,371 ) Acquisitions - DNB merger 6,778 — Benefits paid (6,282 ) (7,975 ) Projected Benefit Obligation at End of Year $ 113,679 $ 95,200 Change in Plan Assets Fair value of plan assets at beginning of year $ 101,765 $ 87,154 Actual return on plan assets 16,358 2,166 Employer contributions — 20,420 Acquisitions - DNB merger 4,811 — Benefits paid (6,282 ) (7,975 ) Fair Value of Plan Assets at End of Year $ 116,652 $ 101,765 Funded Status $ 2,973 $ 6,565 The following table sets forth the amounts recognized in accumulated other comprehensive (loss) income at December 31: (dollars in thousands) 2019 2018 Net actuarial loss (23,106 ) (22,340 ) Total (Before Tax Effects) $ (23,106 ) $ (22,340 ) Below are the actuarial weighted average assumptions used in determining the benefit obligation: 2019 2018 Discount rate 3.25 % 4.31 % Rate of compensation increase (1) — % — % (1) Rate of compensation increase is not applicable for 2019 and 2018 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. The following table summarizes the components of net periodic pension cost and other changes in Plan assets and benefit obligations recognized in other comprehensive loss for the years ended December 31: (dollars in thousands) 2019 2018 2017 Components of Net Periodic Pension Cost Interest cost on projected benefit obligation 3,987 3,882 4,100 Expected return on plan assets (4,731 ) (6,266 ) (6,313 ) Amortization of prior service credit - DNB merger 7 — — Recognized net actuarial loss 1,604 2,134 1,866 Net Periodic Pension Expense $ 867 $ (250 ) $ (347 ) Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss) Net actuarial loss/(gain) $ 2,370 $ (3,271 ) $ 3,678 Recognized net actuarial loss (1,604 ) (2,134 ) (1,866 ) Recognized prior service credit — — — Total (Before Tax Effects) $ 766 $ (5,405 ) $ 1,812 Total Recognized in Net Benefit Cost and Other Comprehensive Income/(Loss) (Before Tax Effects) $ 1,633 $ (5,655 ) $ 1,465 The following table summarizes the actuarial weighted average assumptions used in determining net periodic pension cost: 2019 2018 2017 Discount rate 4.31 % 3.75 % 4.00 % Rate of compensation increase (1) — % — % — % Expected return on assets 4.80 % 7.50 % 7.50 % (1) Rate of compensation increase is not applicable for 2019, 2018 and 2017 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. The net actuarial loss included in accumulated other comprehensive loss expected to be recognized in net periodic pension cost in the following year ending December 31, 2020 is $1.5 million . There will be no prior service credit recognized due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans. The accumulated benefit obligation for the Plan was $113.7 million at December 31, 2019 and $95.2 million at December 31, 2018. We consider many factors when setting the assumed rate of return on Plan assets. As a general guideline the assumed rate of return is equal to the weighted average of the expected returns for each asset category and is estimated based on historical returns as well as expected future returns. The weighted average discount rate is derived from corporate yield curves. S&T Bank’s Retirement Plan Committee determines the investment policy for the Plan. In general, the targeted asset allocation is 5 percent to 15 percent equities and alternatives and 85 percent to 95 percent fixed income. Prior to 2018, the asset allocation was 50 percent to 70 percent equities and 30 percent to 50 percent fixed income. A strategic allocation within each asset class is based on the Plan’s duration, time horizon, risk tolerances, performance expectations, and asset class preferences. Investment managers have discretion to invest in any equity or fixed-income asset class, subject to the securities guidelines of the Plan’s Investment Policy Statement. On December 19, 2017, S&T Bank, as Plan Sponsor, entered into an agreement with an insurance company to purchase a single premium annuity contract for 124 retired Plan participants and their beneficiaries. Of these participants, 30 are receiving a $2,000 death benefit only. The total premium of $1.5 million was paid out of the Plan's assets, and the effective date of the annuity payments was January 1, 2018. The annuity purchase resulted in a reduction in the associated pension liability. At this time, S&T Bank is expected to make a $0.1 million required cash contribution to the Plan in 2020. The following table provides information regarding estimated future benefit payments to be paid in each of the next five years and in the aggregate for the five years thereafter: (dollars in thousands) Amount 2020 $ 8,211 2021 8,151 2022 7,695 2023 7,343 2024 7,164 2025 - 2029 33,640 We also have nonqualified supplemental executive pension plans, or SERPs, for certain key employees. The SERPs are unfunded. The projected benefit obligations related to the SERPs were $5.3 million and $4.4 million at December 31, 2019 and 2018. These amounts also represent the net amount recognized in the statement of financial position for the SERPs. Net periodic benefit costs for the SERPs were $0.4 million for the year ended December 31, 2019 and $0.5 million for each of the years ended December 31, 2018 and 2017. Additionally, $2.4 million , $1.9 million and $2.7 million before tax was reflected in accumulated other comprehensive income (loss) at December 31, 2019, 2018 and 2017, in relation to the SERPs. The actuarial assumptions used for the SERPs are the same as those used for the Plan. We maintain a Thrift Plan, a qualified defined contribution plan, in which substantially all employees are eligible to participate. We make matching contributions to the Thrift Plan up to 3.5 percent of participants’ eligible compensation and may make additional profit-sharing contributions as provided by the Thrift Plan. Expense related to these contributions amounted to $2.0 million in 2019, $1.7 million in 2018 and $1.8 million in 2017. Fair Value Measurements The following tables present our Plan assets measured at fair value on a recurring basis by fair value hierarchy level at December 31, 2019 and 2018. During the year ended December 31, 2019, there were no transfers between Level 1 and Level 2 for items of a recurring basis. During the year ended December 31, 2018, cash and cash equivalents of $2.2 million were transferred to Level 1 from Level 2 relating to changes in our plan asset allocation as set forth in the plan's investment policy. There were no purchases or transfers of Level 3 plan assets in 2019 or 2018. December 31, 2019 Fair Value Asset Classes (1) (dollars in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents (2) $ 1,831 $ — $ — $ 1,831 Fixed income (3) 101,320 — — 101,320 Equities: Equity index mutual funds—international (4) 3,066 — — 3,066 Domestic individual equities (5) 10,435 — — 10,435 Total Assets at Fair Value $ 116,652 $ — $ — $ 116,652 (1) Refer to Note 1 Summary of Significant Accounting Policies, Fair Value Measurements for a description of levels within the fair value hierarchy. (2) This asset class includes FDIC insured money market instruments. (3) This asset class includes a variety of fixed income mutual funds which primarily invest in investment grade rated securities. Investment managers have discretion to invest in fixed income related securities including futures, options and other derivatives. Investments may be made in currencies other than the U.S. dollar. (4) The sole investment within this asset class is the Vanguard Total International Stock Index Fund Admiral Shares. (5) This asset class includes individual domestic equities invested in an active all-cap strategy. It may also include convertible bonds. December 31, 2018 Fair Value Asset Classes (1) (dollars in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents (2) $ 2,164 $ — $ — $ 2,164 Fixed income (3) 91,830 — — 91,830 Equities: Equity index mutual funds—international (4) 2,604 — — 2,604 Domestic individual equities (5) 4,884 — — 4,884 Total Assets at Fair Value $ 101,482 $ — $ — $ 101,482 (1) Refer to Note 1 Summary of Significant Accounting Policies, Fair Value Measurements for a description of levels within the fair value hierarchy. (2) This asset class includes FDIC insured money market instruments. (3) This asset class includes a variety of fixed income mutual funds which primarily invest in investment grade rated securities. Investment managers have discretion to invest in fixed income related securities including futures, options and other derivatives. Investments may be made in currencies other than the U.S. dollar. (4) The sole investment within this asset class is Harbor International Institutional Fund. (5) This asset class includes individual domestic equities invested in an active all-cap strategy. It may also include convertible bonds. |
Incentive and Restricted Stock
Incentive and Restricted Stock Plan and Dividend Reinvestment Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
INCENTIVE AND RESTRICTED STOCK PLAN AND DIVIDEND REINVESTMENT PLAN | INCENTIVE AND RESTRICTED STOCK PLAN AND DIVIDEND REINVESTMENT PLAN We adopted an Incentive Stock Plan in 2014 that provides for cash performance awards and for granting incentive stock options, nonstatutory stock options, restricted stock, restricted stock units and appreciation rights. A maximum of 750,000 shares of our common stock are available for awards granted under the 2014 Incentive Plan and the plan expires ten years from the date of board approval. As of December 31, 2019, no nonstatutory stock options were outstanding under the 2014 Stock Plan. Restricted Stock We periodically issue restricted stock to employees and directors, pursuant to our 2014 Stock Plan. As of December 31, 2019, 529,933 restricted shares have been granted under the 2014 Stock Plan. During 2019, 2018 and 2017, we granted 11,231 , 9,264 and 12,728 restricted shares of common stock to outside directors under the 2014 Stock Plan. The grants are part of the compensation arrangement approved by the Compensation and Benefits Committee whereby the directors receive compensation in the form of both cash and restricted shares of common stock. These shares fully vest one year after the date of grant. The closing price of our stock is used to determine the fair value on the date of grant. During 2019, 2018 and 2017, we granted 73,651 , 66,733 and 77,387 restricted shares of common stock to senior management under our Long Term Incentive Plan, or LTIP, within the 2014 Stock Plan. The restricted shares granted under the LTIP consist of both time and performance-based awards. The awards were granted in accordance with performance levels set by the Compensation and Benefits Committee. Vesting for the time-based awards is 50 percent after two years and the remaining 50 percent at the end of the third year. The performance-based awards vest at the end of the three -year period. During the vesting period, if the recipient leaves S&T before the end of the vesting period, shares will be forfeited except in the case of retirement, disability or death where accelerated vesting provisions are defined within the awards agreement. The closing price of our stock is used to determine the fair value on the date of grant. During 2019, 2018 and 2017, we recognized compensation expense of $2.4 million , $1.9 million and $3.0 million and realized a tax benefit of $0.5 million , $0.4 million and $1.1 million related to restricted stock grants. The following table provides information about restricted stock granted under the 2014 Stock Plan for the years ended December 31: Restricted Stock Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 220,568 $ 30.19 Granted 75,997 42.43 Vested 63,323 29.19 Forfeited 26,847 30.18 Non-vested at December 31, 2018 206,395 $ 30.70 Granted 84,882 38.67 Vested 76,014 30.75 Forfeited 33,228 32.50 Non-vested at December 31, 2019 182,035 $ 34.06 As of December 31, 2019, there was $3.6 million of total unrecognized compensation cost related to restricted stock that will be recognized as compensation expense over a weighted average period of 1.77 years. Dividend Reinvestment Plan We also sponsor a Dividend Reinvestment and Stock Purchase Plan, or Dividend Plan, where shareholders may purchase shares of S&T common stock at the average fair value with reinvested dividends and voluntary cash contributions. The plan administrator and transfer agent may purchase shares directly from us from shares held in treasury or purchase shares in the open market to fulfill the Dividend Plan’s needs. |
Parent Company Condensed Financ
Parent Company Condensed Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY CONDENSED FINANCIAL INFORMATION | PARENT COMPANY CONDENSED FINANCIAL INFORMATION The following condensed financial statements summarize the financial position of S&T Bancorp, Inc. as of December 31, 2019 and 2018 and the results of its operations and cash flows for each of the three years ended December 31, 2019, 2018 and 2017. BALANCE SHEETS December 31, (dollars in thousands) 2019 2018 ASSETS Cash $ 7,509 $ 8,869 Investments in: Bank subsidiary 1,198,964 925,286 Nonbank subsidiaries 16,393 15,479 Other assets 9,741 8,458 Total Assets $ 1,232,607 $ 958,092 LIABILITIES Long-term debt $ 39,277 $ 20,619 Other liabilities 1,332 1,712 Total Liabilities 40,609 22,331 Total Shareholders’ Equity 1,191,998 935,761 Total Liabilities and Shareholders’ Equity $ 1,232,607 $ 958,092 STATEMENTS OF NET INCOME Years ended December 31, (dollars in thousands) 2019 2018 2017 Dividends from subsidiaries $ 59,490 $ 44,988 $ 36,169 Investment income 1 24 22 Total Income 59,491 45,012 36,191 Interest expense on long-term debt 1,285 1,149 955 Other expenses 4,325 3,988 3,801 Total Expense 5,610 5,137 4,756 Income before income tax and undistributed net income of subsidiaries 53,881 39,875 31,435 Income tax benefit (1,189 ) (1,093 ) (1,596 ) Income before undistributed net income of subsidiaries 55,070 40,968 33,031 Equity in undistributed net income (distribution in excess of net income) of: Bank subsidiary 42,683 68,385 40,877 Nonbank subsidiaries 481 (4,019 ) (940 ) Net Income $ 98,234 $ 105,334 $ 72,968 STATEMENTS OF CASH FLOWS Years ended December 31, (dollars in thousands) 2019 2018 2017 OPERATING ACTIVITIES Net Income $ 98,234 $ 105,334 $ 72,968 Equity in undistributed (earnings) losses of subsidiaries (43,164 ) (64,366 ) (39,937 ) Other (99 ) 1,695 480 Net Cash Provided by Operating Activities 54,971 42,663 33,511 INVESTING ACTIVITIES Net investments in subsidiaries 176 — — Acquisitions (10 ) — — Net Cash Used in Investing Activities 166 — — FINANCING ACTIVITIES Sale of treasury shares, net (915 ) (657 ) (689 ) Purchase of treasury shares (18,222 ) (12,256 ) — Cash dividends paid to common shareholders (37,360 ) (34,539 ) (28,569 ) Payment to repurchase of warrant — (7,652 ) — Net Cash Used in Financing Activities (56,497 ) (55,104 ) (29,258 ) Net (decrease) increase in cash (1,360 ) (12,441 ) 4,253 Cash at beginning of year 8,869 21,310 17,057 Cash at End of Year $ 7,509 $ 8,869 $ 21,310 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our Consolidated Financial Statements. Under capital guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Our capital amounts and classification are also subject to qualitative judgments by the regulators about risk weightings and other factors. The most recent notifications from the Federal Reserve and the FDIC categorized S&T and S&T Bank as well capitalized under the regulatory framework for corrective action. There have been no conditions or events that we believe have changed S&T's or S&T Bank’s status during 2019 and 2018. Common equity tier 1 capital includes common stock and related surplus plus retained earnings, less goodwill and intangible assets subject to a limitation and certain deferred tax assets subject to a limitation. In addition, we made a one-time permanent election to exclude accumulated other comprehensive income from capital. For regulatory purposes, trust preferred securities totaling $29.0 million , issued by an unconsolidated trust subsidiary of S&T underlying junior subordinated debt, are included in Tier 1 capital for S&T. Total capital consists of Tier 1 capital plus junior subordinated debt and the ALL subject to limitation. We currently have $34.8 million in junior subordinated debt which is included in Tier 2 capital for S&T in accordance with current regulatory reporting requirements. Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios of Total, Tier 1 and Common Equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. As of December 31, 2019 and 2018, we met all capital adequacy requirements to which we are subject. The following table summarizes risk-based capital amounts and ratios for S&T and S&T Bank: Actual Minimum Regulatory Capital Requirements To be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Leverage Ratio S&T $ 854,146 10.29 % $ 331,925 4.00 % $ 414,907 5.00 % S&T Bank 832,113 10.04 % 331,355 4.00 % 414,194 5.00 % Common Equity Tier 1 (to Risk-Weighted Assets) S&T 825,146 11.43 % 324,745 4.50 % 469,077 6.50 % S&T Bank 832,113 11.56 % 324,048 4.50 % 468,069 6.50 % Tier 1 Capital (to Risk-Weighted Assets) S&T 854,146 11.84 % 432,994 6.00 % 577,325 8.00 % S&T Bank 832,113 11.56 % 432,064 6.00 % 576,085 8.00 % Total Capital (to Risk-Weighted Assets) S&T 954,094 13.22 % 577,325 8.00 % 721,656 10.00 % S&T Bank 922,310 12.81 % 576,085 8.00 % 720,106 10.00 % As of December 31, 2018 Leverage Ratio S&T $ 689,778 10.05 % $ 274,497 4.00 % $ 343,121 5.00 % S&T Bank 659,304 9.63 % 273,820 4.00 % 342,275 5.00 % Common Equity Tier 1 (to Risk-Weighted Assets) S&T 669,778 11.38 % 264,933 4.50 % 382,681 6.50 % S&T Bank 659,304 11.23 % 264,127 4.50 % 381,517 6.50 % Tier 1 Capital (to Risk-Weighted Assets) S&T 689,778 11.72 % 353,244 6.00 % 470,992 8.00 % S&T Bank 659,304 11.23 % 352,170 6.00 % 469,560 8.00 % Total Capital (to Risk-Weighted Assets) S&T 777,913 13.21 % 470,992 8.00 % 588,741 10.00 % S&T Bank 747,438 12.73 % 469,560 8.00 % 586,950 10.00 % |
Selected Financial Data
Selected Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED FINANCIAL DATA | SELECTED FINANCIAL DATA The following table presents selected financial data for the most recent eight quarters. 2019 2018 (dollars in thousands, except per share data) (unaudited) Fourth Quarter (1) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter SUMMARY OF OPERATIONS Interest income $ 82,457 $ 79,813 $ 79,624 $ 78,590 $ 76,589 $ 73,627 $ 71,581 $ 68,029 Interest expense 18,045 18,617 18,797 18,234 16,747 14,365 13,178 11,097 Provision for loan losses 2,105 4,913 2,205 5,649 2,716 462 9,345 2,472 Net Interest Income After Provision For Loan Losses 62,307 56,283 58,622 54,707 57,126 58,800 49,058 54,460 Security (losses) gains, net (26 ) — — — — — — — Noninterest income 15,257 13,063 12,901 11,362 11,095 12,042 12,251 13,792 Noninterest expense 50,178 37,667 40,352 38,919 36,415 37,085 35,863 36,082 Income Before Taxes 27,360 31,679 31,171 27,150 31,806 33,757 25,446 32,170 Provision for income taxes 5,091 4,743 5,070 4,222 4,952 2,876 4,010 6,007 Net Income $ 22,269 $ 26,936 $ 26,101 $ 22,928 $ 26,854 $ 30,881 $ 21,436 $ 26,163 Per Share Data Common earnings per share—diluted $ 0.62 $ 0.79 $ 0.76 $ 0.66 $ 0.77 $ 0.88 $ 0.61 $ 0.75 Dividends declared per common share 0.28 0.27 0.27 0.27 0.27 0.25 0.25 0.22 Common book value 30.13 28.69 28.11 27.47 26.98 26.27 25.91 25.58 (1) The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. |
Sale of a Majority Interest of
Sale of a Majority Interest of Insurance Business | 12 Months Ended |
Dec. 31, 2019 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
SALE OF A MAJORITY INTEREST OF INSURANCE BUSINESS | SALE OF A MAJORITY INTEREST OF INSURANCE BUSINESS On November 9, 2017, we entered into an asset purchase agreement to sell a 70 percent ownership interest in the assets of our subsidiary, S&T Evergreen Insurance, LLC. The partial sale was accounted for as the sale of a business. At the date of the sale, January 1, 2018, we ceased to have a controlling financial interest, deconsolidated the subsidiary and recognized a gain of $1.9 million . We transferred our remaining 30 percent share of net assets from S&T Evergreen Insurance, LLC to a new entity for a 30 percent partnership interest in a new insurance entity. We use the equity method of accounting to recognize changes in the value of our investment in the new insurance entity for our proportional share of income and losses of the new insurance entity. |
Share Repurchase Plan
Share Repurchase Plan | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
SHARE REPURCHASE PLAN | SHARE REPURCHASE PLAN On March 19, 2018, our Board of Directors authorized a $50 million share repurchase plan. This repurchase authorization, which was effective through August 31, 2019, permitted us to repurchase from time to time up to $50 million in aggregate value of shares of our common stock through a combination of open market and privately negotiated repurchases. Under the March 19, 2018 plan, we repurchased 792,439 common shares at a total cost of $30.5 million , or an average of $38.46 per share. On September 16, 2019, our Board of Directors authorized a new $50 million share repurchase plan. This new repurchase authorization, which is effective through March 31, 2021, permits S&T to repurchase from time to time up to $50 million in aggregate value of shares of S&T's common stock through a combination of open market and privately negotiated repurchases. The specific timing, price and quantity of repurchases will be at the discretion of S&T and will depend on a variety of factors, including general market conditions, the trading price of common stock, legal and contractual requirements, applicable securities laws and S&T's financial performance. The repurchase plan does not obligate us to repurchase any particular number of shares. We expect to fund any repurchases from cash on hand and internally generated funds. Since its approval no common shares have been repurchased under the new repurchase plan. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations S&T Bancorp, Inc., or S&T, was incorporated on March 17, 1983 under the laws of the Commonwealth of Pennsylvania as a bank holding company and has five active direct wholly owned subsidiaries, S&T Bank, 9th Street Holdings, Inc., STBA Capital Trust I, DNB Capital Trust I and DNB Capital Trust II. DNB Capital Trust I and DNB Capital Trust II were acquired with the DNB merger on November 30, 2019. We own a 50 percent interest in Commonwealth Trust Credit Life Insurance Company, or CTCLIC. We are presently engaged in nonbanking activities through the following eight entities: 9th Street Holdings, Inc.; S&T Bancholdings, Inc.; CTCLIC; S&T Insurance Group, LLC; Stewart Capital Advisors, LLC.; Downco Inc.; DN Acquisition, Inc.; and DNB Financial Services, Inc. 9th Street Holdings, Inc. and S&T Bancholdings, Inc. are investment holding companies. CTCLIC, which is a joint venture with another financial institution, acts as a reinsurer of credit life, accident and health insurance policies sold by S&T Bank and the other institution. S&T Insurance Group, LLC, through its subsidiaries, offers a variety of insurance products. Stewart Capital Advisors, LLC is a registered investment advisor that manages private investment accounts for individuals and institutions. Downco Inc. and DN Acquisition Company, Inc. were acquired with the DNB merger and were incorporated for the purpose of acquiring and holding Other Real Estate Owned acquired through foreclosure or deed in-lieu-of foreclosure, as well as Bank-occupied real estate. DNB Financial Services was also acquired with the DNB merger and is a Pennsylvania licensed insurance agency, which, through a third-party marketing agreement with Cetera Investment Services, LLC, sells a variety of insurance and investment products. On June 5, 2019 we entered into an agreement to acquire DNB Financial Corporation, or DNB, and the transaction was completed on November 30, 2019. The transaction was valued at $201.0 million and added total assets of $1.1 billion , including $909.0 million in loans, $84.2 million in goodwill and $967.3 million in deposits. On January 1, 2018, we sold a 70 percent majority interest in the assets of our wholly-owned subsidiary S&T Evergreen Insurance, LLC. We transferred our remaining 30 percent ownership interest in the net assets of S&T Evergreen Insurance, LLC to a new entity for a 30 percent ownership interest in a new insurance entity (see Note 28: Sale of a Majority Interest of Insurance Business). We use the equity method of accounting to recognize our partial ownership interest in the new entity. |
Accounting Policies | Accounting Policies |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of S&T and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Investments of 20 percent to 50 percent of the outstanding common stock of investees are accounted for using the equity method of accounting. |
Reclassification | Reclassification Amounts in prior years' financial statements and footnotes are reclassified whenever necessary to conform to the current year’s presentation. Reclassifications had no effect on our results of operations or financial condition. |
Business Combinations | Business Combinations We account for business combinations using the acquisition method of accounting. All identifiable assets acquired, liabilities assumed and any non-controlling interest in the acquiree are recognized and measured as of the acquisition date at fair value. We record goodwill for the excess of the purchase price over the fair value of net assets acquired. Results of operations of the acquired entities are included in the consolidated statement of income from the date of acquisition. Acquired loans are recorded at fair value on the date of acquisition with no carryover of the related ALL. Determining the fair value of acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. In estimating the fair value of our acquired loans, we considered a number of factors including loss rates, internal risk rating, delinquency status, loan type, loan term, prepayment rates, recovery periods and the current interest rate environment. The premium or discount estimated through the loan fair value calculation is recognized into interest income on a level yield basis over the remaining life of the loans. Subsequent to the acquisition date, the methods utilized to estimate the required ALL for these loans is similar to the method used for originated loans; however, we record a provision for credit losses only when the required allowance exceeds the remaining fair value adjustment. |
Fair Value Measurements | Fair Value Measurements We use fair value measurements when recording and disclosing certain financial assets and liabilities. Debt securities, equity securities and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans, other real estate owned, or OREO, and other repossessed assets, mortgage servicing rights, or MSRs, and certain other assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which are developed based on market data we have obtained from independent sources. Unobservable inputs reflect our estimates of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our policy is to recognize transfers between any of the fair value hierarchy levels at the end of the reporting period in which the transfer occurred. The following are descriptions of the valuation methodologies that we use for financial instruments recorded at fair value on either a recurring or nonrecurring basis. Recurring Basis Debt Securities Available-for-Sale We obtain fair values for debt securities from a third-party pricing service which utilizes several sources for valuing fixed-income securities. We validate prices received from our pricing service through comparison to a secondary pricing service and broker quotes. We review the methodologies of the pricing service which provide us with a sufficient understanding of the valuation models, assumptions, inputs and pricing to reasonably measure the fair value of our debt securities. The market valuation sources for debt securities include observable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and condition databases, and extensive quality control programs. Equity Securities Marketable equity securities with quoted prices in active markets for identical assets are classified as Level 1. Marketable equity securities in markets that are not active and are based on other observable information for comparable assets are classified as Level 2. Marketable equity securities that are not traded in active markets and use unobservable assumptions in the market are classified as Level 3. Rabbi Trust Assets We use quoted market prices to determine the fair value of our equity security assets. These securities are reported at fair value with the gains and losses included in noninterest income in our Consolidated Statements of Net Income. These assets are held in a Rabbi Trust under a deferred compensation plan and are invested in readily quoted mutual funds. Accordingly, these assets are classified as Level 1. Rabbi Trust assets are reported in other assets in the Consolidated Balance Sheets. Derivative Financial Instruments We use derivative instruments, including interest rate swaps for commercial loans with our customers, interest rate lock commitments and the sale of mortgage loans in the secondary market. We calculate the fair value for derivatives using accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. Each valuation considers the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs, such as interest rate curves and implied volatilities. Accordingly, derivatives are classified as Level 2. We incorporate credit valuation adjustments into the valuation models to appropriately reflect both our own nonperformance risk and the respective counterparties’ nonperformance risk in calculating fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements and collateral postings. Nonrecurring Basis Loans Held for Sale Loans held for sale consist of 1-4 family residential loans originated for sale in the secondary market and, from time to time, certain loans transferred from the loan portfolio to loans held for sale, all of which are carried at the lower of cost or fair value. The fair value of 1-4 family residential loans is based on the principal or most advantageous market currently offered for similar loans using observable market data. The fair value of the loans transferred from the loan portfolio is based on the amounts offered for these loans in currently pending sales transactions. Loans held for sale carried at fair value are classified as Level 3. Impaired Loans Impaired loans are carried at the lower of carrying value or fair value. Fair value is determined as the recorded investment balance less any specific reserve. We establish specific reserves based on the following three impairment methods: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral less estimated selling costs when the loan is collateral dependent and we expect to liquidate the collateral. However, if repayment is expected to come from the operation of the collateral, rather than liquidation, then we do not consider estimated selling costs in determining the fair value of the collateral. Collateral values are generally based upon appraisals by approved, independent state certified appraisers. Appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or our knowledge of the borrower and the borrower’s business. Impaired loans carried at fair value are classified as Level 3. OREO and Other Repossessed Assets OREO and other repossessed assets obtained in partial or total satisfaction of a loan are recorded at the lower of recorded investment in the loan or fair value less cost to sell. Subsequent to foreclosure, these assets are carried at the lower of the amount recorded at acquisition date or fair value less cost to sell. Accordingly, it may be necessary to record nonrecurring fair value adjustments. Fair value, when recorded, is generally based upon appraisals by approved, independent state certified appraisers. Like impaired loans, appraisals on OREO may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or other information available to us. OREO and other repossessed assets carried at fair value are classified as Level 3. Mortgage Servicing Rights The fair value of MSRs is determined by calculating the present value of estimated future net servicing cash flows, considering expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. The expected rate of mortgage loan prepayments is the most significant factor driving the value of MSRs. MSRs are considered impaired if the carrying value exceeds fair value. The valuation model includes significant unobservable inputs; therefore, MSRs are classified as Level 3. MSRs are reported in other assets in the Consolidated Balance Sheets and are amortized into noninterest income in the Consolidated Statements of Net Income. Other Assets We measure certain other assets at fair value on a nonrecurring basis. Fair value is based on the application of lower of cost or fair value accounting, or write-downs of individual assets. Valuation methodologies used to measure fair value are consistent with overall principles of fair value accounting and consistent with those described above. Financial Instruments In addition to financial instruments recorded at fair value in our financial statements, fair value accounting guidance requires disclosure of the fair value of all of an entity’s assets and liabilities that are considered financial instruments. The majority of our assets and liabilities are considered financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaged in an exchange transaction. Also, it is our general practice and intent to hold our financial instruments to maturity and to not engage in trading or sales activities with respect to such financial instruments. For fair value disclosure purposes, we substantially utilize the fair value measurement criteria as required and explained above. In cases where quoted fair values are not available, we use present value methods to determine the fair value of our financial instruments. Cash and Cash Equivalents The carrying amounts reported in the Consolidated Balance Sheets for cash and due from banks, including interest-bearing deposits and federal funds sold approximate fair value. Loans With the adoption of ASU No. 2016-01, Accounting for Financial Instruments - Overall: Classification and Measurement, on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio to use the exit price notion as required by the standard. The guidance was applied on a prospective basis resulting in prior periods no longer being comparable. The fair value of variable rate loans that may reprice frequently at short-term market rates is based on carrying values adjusted for liquidity and credit risk. The fair value of variable rate loans that reprice at intervals of one year or longer, such as adjustable rate mortgage products, is estimated using discounted cash flow analyses that utilize interest rates currently being offered for similar loans and adjusted for liquidity and credit risk. The fair value of fixed rate loans is estimated using a discounted cash flow analysis that utilizes interest rates currently being offered for similar loans adjusted for liquidity and credit risk. Bank Owned Life Insurance Fair value approximates net cash surrender value of bank owned life insurance, or BOLI. Federal Home Loan Bank, or FHLB, and Other Restricted Stock It is not practical to determine the fair value of our FHLB and other restricted stock due to the restrictions placed on the transferability of these stocks; it is presented at carrying value. Deposits The fair values disclosed for deposits without defined maturities (e.g., noninterest and interest-bearing demand, money market and savings accounts) are by definition equal to the amounts payable on demand. The carrying amounts for variable rate, fixed-term time deposits approximate their fair values. Estimated fair values for fixed rate and other time deposits are based on discounted cash flow analysis using interest rates currently offered for time deposits with similar terms. The carrying amount of accrued interest approximates fair value. Short-Term Borrowings The carrying amounts of securities sold under repurchase agreements, or REPOs, and other short-term borrowings approximate their fair values. Long-Term Borrowings The fair values disclosed for fixed rate long-term borrowings are determined by discounting their contractual cash flows using current interest rates for long-term borrowings of similar remaining maturities. The carrying amounts of variable rate long-term borrowings approximate their fair values. Junior Subordinated Debt Securities The interest rate on the variable rate junior subordinated debt securities is reset quarterly; therefore, the carrying values approximate their fair values. Loan Commitments and Standby Letters of Credit Off-balance sheet financial instruments consist of commitments to extend credit and letters of credit. Except for interest rate lock commitments, estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. Other Estimates of fair value are not made for items that are not defined as financial instruments, including such items as our core deposit intangibles and the value of our trust operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider cash and due from banks, interest-bearing deposits with banks and federal funds sold as cash and cash equivalents. |
Securities | Securities We determine the appropriate classification of securities at the time of purchase. Debt securities are classified as available-for-sale with the intent to hold for an indefinite period of time, but may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Debt securities are carried at fair value with net unrealized gains and losses deemed to be temporary and reported as a component of other comprehensive loss, net of tax. On January 1, 2018, we adopted the new accounting standard for financial instruments, which requires equity securities to be measured at fair value with net unrealized gains and losses recognized in noninterest income on the Consolidated Statements of Net Income. As a result of the adoption of this guidance $0.9 million was reclassified from accumulated other comprehensive income, or AOCI, to retained earnings. Realized gains and losses on the sale of debt securities available-for-sale and other-than-temporary impairment, or OTTI, charges are recorded within noninterest income in the Consolidated Statements of Net Income. Realized gains and losses on the sale of these securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including but not limited to, the financial condition of the underlying issuer, the ability of the issuer to meet contractual obligations, the best estimate of the impairment charge representing credit losses, the likelihood of the security’s ability to recover any decline in its estimated fair value and whether management intends to sell the security or if it is more likely than not that management will be required to sell the investment security prior to the security’s recovery of any decline in its estimated fair value. If the impairment is considered other-than-temporary based on management’s review, the impairment must be separated into credit and non-credit components. The credit component is recognized in the Consolidated Statements of Net Income and the non-credit component is recognized in other comprehensive loss, net of applicable taxes. |
Loans Held for Sale | Loans Held for Sale Loans held for sale consist of 1-4 family residential loans originated for sale in the secondary market and, from time to time, certain loans transferred from the loan portfolio to loans held for sale, all of which are carried at the lower of cost or fair value. If a loan is transferred from the loan portfolio to the held for sale category, any write-down in the carrying amount of the loan at the date of transfer is recorded as a charge-off against the allowance for loan losses, or ALL. Subsequent declines in fair value are recognized as a charge to noninterest income. When a loan is placed in the held for sale category, we stop amortizing the related deferred fees and costs. The remaining unamortized fees and costs are recognized as part of the cost basis of the loan at the time it is sold. Gains and losses on sales of loans held for sale are included in other noninterest income in the Consolidated Statements of Net Income. |
Loans | Loans Loans are reported at the principal amount outstanding net of unearned income, unamortized premiums or discounts and deferred origination fees and costs. We defer certain nonrefundable loan origination and commitment fees. Accretion of discounts and amortization of premiums on loans are included in interest income in the Consolidated Statements of Net Income. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of loan yield over the respective lives of the loans without consideration of anticipated prepayments. If a loan is paid off, the remaining unaccreted or unamortized net origination fees and costs are immediately recognized into income or expense. Interest is accrued and interest income is recognized on loans as earned. Acquired loans are recorded at fair value on the date of acquisition with no carryover of the related ALL. Determining the fair value of the acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. In estimating the fair value of our acquired loans, we consider a number of factors including the loan term, internal risk rating, delinquency status, prepayment rates, recovery periods, estimated value of the underlying collateral and the current interest rate environment. Closed-end installment loans, amortizing loans secured by real estate and any other loans with payments scheduled monthly are reported past due when the borrower is in arrears two or more monthly payments. Other multi-payment obligations with payments scheduled other than monthly are reported past due when one scheduled payment is due and unpaid for 30 days or more. Generally, consumer loans are charged off against the ALL upon the loan reaching 90 days past due. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. |
Nonaccrual or Nonperforming Loans | Nonaccrual or Nonperforming Loans We stop accruing interest on a loan when the borrower’s payment is 90 days past due. Loans are also placed on nonaccrual status when we have doubt about the borrower’s ability to comply with contractual repayment terms, even if payment is not past due. When the interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. Interest income is recognized on nonaccrual loans on a cash basis if recovery of the remaining principal is reasonably assured. As a general rule, a nonaccrual loan may be restored to accrual status when its principal and interest is paid current and the bank expects repayment of the remaining contractual principal and interest, or when the loan otherwise becomes well secured and in the process of collection. |
Troubled Debt Restructurings | Troubled Debt Restructurings Troubled debt restructurings, or TDRs, are loans where we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower. We strive to identify borrowers with financial difficulty early and work with them to come to a mutual resolution to modify the terms of their loan before the loan reaches nonaccrual status. These modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates or principal deferment. While unusual, there may be instances of principal forgiveness. These modifications are generally for longer term periods that would not be considered insignificant. Additionally, we classify loans where the debt obligation has been discharged through a Chapter 7 Bankruptcy and not reaffirmed as TDRs. We individually evaluate all substandard commercial loans that have experienced a forbearance or change in terms agreement, and all substandard consumer and residential mortgage loans that entered into an agreement to modify their existing loan, to determine if they should be designated as TDRs. All TDRs are considered to be impaired loans and will be reported as impaired loans for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. Further, all impaired loans are reported as nonaccrual loans unless the loan is a TDR that has met the requirements to be returned to accruing status. TDRs can be returned to accruing status if the ultimate collectability of all contractual amounts due, according to the restructured agreement, is not in doubt and there is a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring. |
Allowance for Loan Losses by Portfolio | Allowance for Loan Losses The ALL reflects our estimates of probable credit losses inherent within the loan portfolio as of the balance sheet date, and it is presented as a reserve against loans in the Consolidated Balance Sheets. Determination of an appropriate ALL is inherently subjective and may be subject to significant changes from period to period. The methodology for determining the ALL has two main components: evaluation and impairment tests of individual loans and evaluation and impairment tests of certain groups of homogeneous loans with similar risk characteristics. Loans are considered to be impaired when based upon current information and events it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all substandard and nonaccrual commercial loans greater than $0.5 million for impairment. A TDR will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is expected that the remaining principal and interest will be fully collected according to the restructured agreement. For each TDR or other impaired loan, we conduct further analysis to determine the probable loss and assign a specific reserve to the loan if deemed appropriate. Specific reserves are established based on the following three impairment methods: 1) the present value of expected future cash flows discounted at the loan’s original effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral less estimated selling costs when the loan is collateral dependent and we expect to liquidate the collateral. Our impairment evaluations consist primarily of the fair value of collateral method because most of our loans are collateral dependent. Collateral values are discounted to consider disposition costs when appropriate. A specific reserve is established or a charge-off is taken if the fair value of the impaired loan is less than the recorded investment in the loan balance. The ALL for homogeneous loans is calculated using a systematic methodology with both a quantitative and a qualitative analysis that is applied on a quarterly basis. The ALL model is comprised of five distinct portfolio segments: 1) Commercial Real Estate, or CRE, 2) Commercial and Industrial, or C&I, 3) Commercial Construction, 4) Consumer Real Estate and 5) Other Consumer. Each segment has a distinct set of risk characteristics monitored by management. We further assess and monitor risk and performance at a more disaggregated level which includes our internal risk rating system for the commercial segments and type of collateral, lien position and loan-to-value, or LTV, for the consumer segments. We first apply historical loss rates to pools of loans with similar risk characteristics. Loss rates are calculated by historical charge-offs that have occurred within each pool of loans over the loss emergence period, or LEP. The LEP is an estimate of the average amount of time from when an event happens that causes the borrower to be unable to pay on a loan until the loss is confirmed through a loan charge-off. In conjunction with our annual review of the ALL assumptions, we have updated our analysis of LEPs for our Commercial and Consumer loan portfolio segments using our loan charge-off history. Based on our updated analysis, we shortened our LEP over the construction portfolio from 4 years to 3 years and made no other changes. We estimate an LEP of 3 years for CRE, 3 years for construction and 1.25 years for C&I. We estimate an LEP of 2.75 years for Consumer Real Estate and 1.25 years for Other Consumer. Another key assumption is the look-back period, or LBP, which represents the historical data period utilized to calculate loss rates. We used 10.5 years for our LBP for all portfolio segments which encompasses our loss experience during the Financial Crisis, and our more recent improved loss experience. After consideration of the historic loss calculations, management applies qualitative adjustments so that the ALL is reflective of the inherent losses that exist in the loan portfolio at the balance sheet date. Qualitative adjustments are made based upon changes in lending policies and practices, economic conditions, changes in the loan portfolio, changes in lending management, results of internal loan reviews, asset quality trends, collateral values, concentrations of credit risk and other external factors. The evaluation of the various components of the ALL requires considerable judgment in order to estimate inherent loss exposures. Acquired loans are recorded at fair value on the date of acquisition with no carryover of the related ALL. Determining the fair value of acquired loans involves estimating the principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. In estimating the fair value of our acquired loans, we considered a number of factors including the loan term, internal risk rating, delinquency status, prepayment rates, recovery periods, estimated value of the underlying collateral and the current interest rate environment. Loans acquired with evidence of credit deterioration were evaluated and not considered to be significant. The premium or discount estimated through the loan fair value calculation is recognized into interest income on a level yield or straight-line basis over the remaining contractual life of the loans. Additional credit deterioration on acquired loans, in excess of the original credit discount embedded in the fair value determination on the date of acquisition, will be recognized in the ALL through the provision for loan losses. Our ALL Committee meets quarterly to verify the overall appropriateness of the ALL. Additionally, on an annual basis, the ALL Committee meets to validate our ALL methodology. This validation includes reviewing the loan segmentation, LEP, LBP and the qualitative framework. As a result of this ongoing monitoring process, we may make changes to our ALL to be responsive to the economic environment. Although we believe our process for determining the ALL appropriately considers all of the factors that would likely result in credit losses, the process includes subjective elements and may be susceptible to significant change. To the extent actual losses are higher than management estimates, additional provisions for loan losses could be required and could adversely affect our earnings or financial position in future periods. We maintain an ALL at a level determined to be appropriate to absorb estimated probable credit losses inherent within the loan portfolio as of the balance sheet date. We develop and document a systematic ALL methodology based on the following portfolio segments: 1) CRE, 2) C&I, 3) Commercial Construction, 4) Consumer Real Estate and 5) Other Consumer. The following are key risks within each portfolio segment: CRE —Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, strip malls and apartments. Operations of the individual projects and global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and the business prospects of the lessee, if the project is not owner-occupied. C&I —Loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the company is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. Commercial Construction —Loans made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer. Consumer Real Estate —Loans secured by first and second liens such as home equity loans, home equity lines of credit and 1-4 family residential mortgages, including purchase money mortgages. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt. Other Consumer —Loans made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, unsecured loans and lines and credit cards. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values. We further assess risk within each portfolio segment by pooling loans with similar risk characteristics. For the commercial loan classes, the most important indicator of risk is the internally assigned risk rating, including pass, special mention and substandard. Consumer loans are pooled by type of collateral, lien position and loan to value, or LTV, ratio for Consumer Real Estate loans. Historical loss rates are applied to these loan pools to determine the reserve for loans collectively evaluated for impairment. The ALL methodology for groups of loans collectively evaluated for impairment is comprised of both a quantitative and qualitative analysis. A key assumption in the quantitative component of the reserve is the LEP. The LEP is an estimate of the average amount of time from the point at which a loss is incurred on a loan to the point at which the loss is confirmed. Another key assumption is the LBP which represents the historical data period utilized to calculate loss rates. Management monitors various credit quality indicators for both the commercial and consumer loan portfolios, including delinquency, nonperforming status and changes in risk ratings on a monthly basis. |
Bank Owned Life Insurance | Bank Owned Life Insurance We have purchased life insurance policies on certain executive officers and employees. We receive the cash surrender value of each policy upon its termination or benefits are payable to us upon the death of the insured. Changes in net cash surrender value are recognized in noninterest income or expense in the Consolidated Statements of Net Income. |
Premises and Equipment | Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred, while improvements that extend an asset’s useful life are capitalized and depreciated over the estimated remaining life of the asset. Depreciation expense is computed by the straight-line method for financial reporting purposes and accelerated methods for income tax purposes over the estimated useful lives of the particular assets. Management reviews long-lived assets using events and circumstances to determine if and when an asset is evaluated for recoverability. The estimated useful lives for the various asset categories are as follows: 1) Land and Land Improvements Non-depreciating assets 2) Buildings 25 years 3) Furniture and Fixtures 5 years 4) Computer Equipment and Software 5 years or term of license 5) Other Equipment 5 years 6) Vehicles 5 years 7) Leasehold Improvements Lesser of estimated useful life of the asset (generally 15 years unless established otherwise) or the remaining term of the lease, including renewal options in the lease that are reasonably assured of exercise |
Right-of-Use Assets and Lease Liabilities | Right-of-Use Assets and Lease Liabilities We determine if a contract is or contains a lease at inception. Leases are classified as either finance or operating leases. We recognize leases on our Consolidated Balance Sheets as ROU assets and related lease liabilities. Finance ROU assets are included in property and equipment and related finance lease liabilities are included in long-term borrowings. Operating lease ROU assets are included in other assets and related operating lease liabilities are included in other liabilities. Our lease liability is calculated as the present value of the lease payments over the lease term discounted using our estimated incremental borrowing rate with similar terms at commencement date. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term for operating leases. Interest and amortization expenses are recognized for finance leases over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term in Net Occupancy on our Consolidated Statements of Net Income. Refer to Note 10 Right-of-Use Assets and Lease Liabilities for more details. |
Restricted Investment in Bank Stock | Restricted Investment in Bank Stock FHLB stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. We hold FHLB stock because we are a member of the FHLB of Pittsburgh. The FHLB requires members to purchase and hold a specified level of FHLB stock based upon on the member's asset value, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the low-cost products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. Both cash and stock dividends are reported as income in taxable investment securities in the Consolidated Statements of Net Income. FHLB stock is evaluated for OTTI on a quarterly basis. Atlantic Community Bankers’ Bank, or ACBB, stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the carrying value. We do not currently use their membership products and services. We acquired ACBB stock through various mergers of banks that were ACBB members. ACBB stock is evaluated for OTTI on a quarterly basis. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets As a result of acquisitions, we have recorded goodwill and identifiable intangible assets in our Consolidated Balance Sheets. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. We account for business combinations using the acquisition method of accounting. We have one reporting unit: Community Bank. Existing goodwill relates to value inherent in the Community Banking reporting unit and that value is dependent upon our ability to provide quality, cost-effective services in the face of competition from other market participants. This ability relies upon continuing investments in processing systems, the development of value-added service features and the ease of use of our services. As such, goodwill value is supported ultimately by profitability that is driven by the volume of business transacted. A decline in earnings as a result of a lack of growth or the inability to deliver cost-effective services over sustained periods can lead to impairment of goodwill, which could adversely impact our earnings in future periods. The carrying value of goodwill is tested annually for impairment each October 1st or more frequently if it is determined that a triggering event has occurred. We first assess qualitatively whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. Our qualitative assessment considers such factors as macroeconomic conditions, market conditions specifically related to the banking industry, our overall financial performance and various other factors. If we determine that it is more likely than not that the fair value is less than the carrying amount, we proceed to test for impairment. The evaluation for impairment involves comparing the current estimated fair value of each reporting unit to its carrying value, including goodwill. If the current estimated fair value of the reporting unit exceeds its carrying value, no additional testing is required and an impairment loss is not recorded. If the estimated fair value of a reporting unit is less than the carrying value, further valuation procedures are performed that could result in impairment of goodwill being recorded. Further valuation procedures would include allocating the estimated fair value to all assets and liabilities of the reporting unit to determine an implied goodwill value. If the implied value of goodwill of a reporting unit is less than the carrying amount of that goodwill, an impairment loss is recognized in an amount equal to that excess. We completed the annual goodwill impairment assessment as required in 2019, 2018 and 2017; the results indicated that the fair value each reporting unit exceeded the carrying value. We determine the amount of identifiable intangible assets based upon independent valuations for core deposit and wealth management customer relationships. The core deposit intangible asset represents the value of the core deposit relationship, which is based primarily on the expected future benefits or earnings capacity attributable to those deposits. The valuation is based upon the present value of the future benefits over the expected life of the customer deposits and considers customer attrition, deposit interest rates, service charge income, overhead expense and costs of alternative funding. Intangible assets with finite lives are amortized using straight-line or accelerated methods over their estimated weighted average useful lives, ranging from 10 to 20 years. Intangible assets with finite useful lives are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. No such events or changes in circumstances occurred during the years ended December 31, 2019, 2018 and 2017. The financial services industry and securities markets can be adversely affected by declining values. If economic conditions result in a prolonged period of economic weakness in the future, our operating segments, including the Community Banking segment, may be adversely affected. In the event that we determine that either our goodwill or finite lived intangible assets are impaired, recognition of an impairment charge could have a significant adverse impact on our financial position or results of operations in the period in which the impairment occurs. |
Variable Interest Entities | Variable Interest Entities Variable interest entities, or VIEs, are legal entities that generally either do not have equity investors with voting rights or that have equity investors that do not provide sufficient financial resources for the entity to support its activities. When an enterprise has both the power to direct the economic activities of the VIE and the obligation to absorb losses of the VIE or the right to receive benefits of the VIE, the entity has a controlling financial interest in the VIE. A VIE often holds financial assets, including loans, receivables, or other property. The company with a controlling financial interest, the primary beneficiary, is required to consolidate the VIE into its Consolidated Balance Sheets. S&T has three wholly-owned trust subsidiaries, STBA Capital Trust I, DNB Capital Trust I and DNB Capital Trust II, or the Trusts, for which it does not absorb a majority of expected losses or receive a majority of the expected residual returns. The DNB Capital Trust I and DNB Capital Trust II were acquired with the DNB merger. At inception, these Trusts issued floating rate trust preferred securities to the Trustees and used the proceeds from the sale to invest in junior subordinated debt securities issued by us. The Trusts pay dividends on the trust preferred securities at the same rate as the interest we pay on the junior subordinated debt held by the Trusts. The Trusts are VIEs with the third-party investors as their primary beneficiaries, and accordingly, the Trusts and their net assets are not included in our Consolidated Financial Statements. However, the junior subordinated debt securities issued by S&T are included in our Consolidated Balance Sheets. |
Joint Ventures | Joint Ventures We have made investments directly in Low Income Housing Tax Credit, or LIHTC, partnerships formed with third parties. As a limited partner in these operating partnerships, we receive tax credits and tax deductions for losses incurred by the underlying properties. These investments are amortized over a maximum of 10 years , which represents the period over which the tax credits will be utilized. We have determined that we are not the primary beneficiary of these investments because the general partners have the power to direct the activities that most significantly impact the economic performance of the partnership and have both the obligation to absorb expected losses and the right to receive benefits. |
OREO and Other Repossessed Assets | OREO and Other Repossessed Assets OREO and other repossessed assets are included in other assets in the Consolidated Balance Sheets and are comprised of properties acquired through foreclosure proceedings or acceptance of a deed in lieu of a foreclosure. At the time of foreclosure or acceptance of a deed in lieu of foreclosure, these properties are recorded at the lower of the recorded investment in the loan or fair value less cost to sell. Loan losses arising from the acquisition of any such property initially are charged against the ALL. Subsequently, these assets are carried at the lower of carrying value or current fair value less cost to sell. Gains or losses realized upon disposition of these assets are recorded in other expenses in the Consolidated Statements of Net Income. |
Mortgage Servicing Rights | Mortgage Servicing Rights MSRs are recognized as separate assets when commitments to fund a loan to be sold are made. Upon commitment, the MSR is established, which represents the then current estimated fair value of future net cash flows expected to be realized for performing the servicing activities. The estimated fair value of the MSRs is estimated by calculating the present value of estimated future net servicing cash flows, considering expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on current market conditions. The expected rate of mortgage loan prepayments is the most significant factor driving the value of MSRs. Increases in mortgage loan prepayments reduce estimated future net servicing cash flows because the life of the underlying loan is reduced. In determining the estimated fair value of MSRs, mortgage interest rates, which are used to determine prepayment rates, are held constant over the estimated life of the portfolio. MSRs are reported in other assets in the Consolidated Balance Sheets and are amortized into noninterest income in the Consolidated Statements of Net Income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. MSRs are regularly evaluated for impairment based on the estimated fair value of those rights. MSRs are stratified by certain risk characteristics, primarily loan term and note rate. If temporary impairment exists within a risk stratification tranche, a valuation allowance is established through a charge to income equal to the amount by which the carrying value exceeds the estimated fair value. If it is later determined that all or a portion of the temporary impairment no longer exists for a particular tranche, the valuation allowance is reduced. MSRs are also reviewed for OTTI. OTTI exists when the recoverability of a recorded valuation allowance is determined to be remote, taking into consideration historical and projected interest rates and loan pay-off activity. When this situation occurs, the unrecoverable portion of the valuation allowance is applied as a direct write-down to the carrying value of the MSR. Unlike a valuation allowance, a direct write-down permanently reduces the carrying value of the MSR and the valuation allowance, precluding subsequent recoveries. |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Swaps In accordance with applicable accounting guidance for derivatives and hedging, all derivatives are recognized as either assets or liabilities on the balance sheet at fair value. Interest rate swaps are contracts in which a series of interest rate flows (fixed and variable) are exchanged over a prescribed period. The notional amounts on which the interest payments are based are not exchanged. These derivative positions relate to transactions in which we enter into an interest rate swap with a commercial customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each transaction, we agree to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed rate. At the same time, we agree to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows our customer to effectively convert a variable rate loan to a fixed rate loan with us receiving a variable rate. These agreements could have floors or caps on the contracted interest rates. Pursuant to our agreements with various financial institutions, we may receive collateral or may be required to post collateral based upon mark-to-market positions. Beyond unsecured threshold levels, collateral in the form of cash or securities may be made available to counterparties of interest rate swap transactions. Based upon our current positions and related future collateral requirements relating to them, we believe any effect on our cash flow or liquidity position to be immaterial. Derivatives contain an element of credit risk, the possibility that we will incur a loss because a counterparty, which may be a financial institution or a customer, fails to meet its contractual obligations. All derivative contracts with financial institutions may be executed only with counterparties approved by our Asset and Liability Committee, or ALCO, and derivatives with customers may only be executed with customers within credit exposure limits approved in accordance with our credit policy. Interest rate swaps are considered derivatives, but are not accounted for using hedge accounting. As such, changes in the estimated fair value of the derivatives are recorded in current earnings and included in other noninterest income in the Consolidated Statements of Net Income. Interest Rate Lock Commitments and Forward Sale Contracts In the normal course of business, we sell originated mortgage loans into the secondary mortgage loan market. We also offer interest rate lock commitments to potential borrowers. The commitments are generally for a period of 60 days and guarantee a specified interest rate for a loan if underwriting standards are met, but the commitment does not obligate the potential borrower to close on the loan. Accordingly, some commitments expire prior to becoming loans. We may encounter pricing risks if interest rates increase significantly before the loan can be closed and sold. We may utilize forward sale contracts in order to mitigate this pricing risk. Whenever a customer desires these products, a mortgage originator quotes a secondary market rate guaranteed for that day by the investor. The rate lock is executed between the mortgagee and us and in turn a forward sale contract may be executed between us and the investor. Both the rate lock commitment and the corresponding forward sale contract for each customer are considered derivatives but are not accounted for using hedge accounting. As such, changes in the estimated fair value of the derivatives during the commitment period are recorded in current earnings and included in mortgage banking in the Consolidated Statements of Net Income. |
Allowance for Unfunded Commitments | Allowance for Unfunded Commitments In the normal course of business, we offer off-balance sheet credit arrangements to enable our customers to meet their financing objectives. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss, in the event the customer does not satisfy the terms of the agreement, equals the contractual amount of the obligation less the value of any collateral. We apply the same credit policies in making commitments and standby letters of credit that are used for the underwriting of loans to customers. Commitments generally have fixed expiration dates, annual renewals or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The allowance for unfunded commitments is included in other liabilities in the Consolidated Balance Sheets. The allowance for unfunded commitments is determined using a similar methodology as our ALL methodology. The reserve is calculated by applying historical loss rates and qualitative adjustments to our unfunded commitments. |
Treasury Stock | Treasury Stock The repurchase of our common stock is recorded at cost. At the time of reissuance, the treasury stock account is reduced using the average cost method. Gains and losses on the reissuance of common stock are recorded in additional paid-in capital, to the extent additional paid-in capital from previous treasury share transactions exists. Any deficiency is charged to retained earnings. |
Revenue Recognition - Contracts with Customers | Revenue Recognition - Contracts with Customers We earn revenue from contracts with our customers when we have completed our performance obligations and recognize that revenue when services are provided to our customers. Our contracts with customers are primarily in the form of account agreements. Generally, our services are transferred at a point in time in response to transactions initiated and controlled by our customers under service agreements with an expected duration of one year or less. Our customers have the right to terminate their services agreements at any time. We do not defer incremental direct costs to obtain contracts with customers that would be amortized in one year or less. These costs are primarily salaries and employee benefits recognized as expense in the period incurred. Service charges on deposit accounts - We recognize monthly service charges for both commercial and personal banking customers based on account fee schedules. Our performance obligation is generally satisfied and the related revenue recognized at a point in time or over time when the services are provided. Other fees are earned based on specific transactions or customer activity within the customers' deposit accounts. These are earned at the time the transaction or customer activity occurs. Debit and credit card services - Interchange fees are earned whenever debit and credit cards are processed through third-party card payment networks. ATM fees are based on transactions by our customers' and other customers' use of our ATMs or other ATMs. Debit and credit card revenue is recognized at a point in time when the transaction is settled. Our performance obligation to our customers is generally satisfied and the related revenue is recognized at a point in time when the service is provided. Third-party service contracts include annual volume and marketing incentives which are recognized over a period of twelve months when we meet thresholds as stated in the service contract. Wealth management services - Wealth management services are primarily comprised of fees earned from the management and administration of trusts, assets under administration and other financial advisory services. Generally, wealth management fees are earned over a period of time between monthly and annually, per the related fee schedules. Our performance obligations with our customers are generally satisfied when we provide the services as stated in the customers' agreements. The fees are based on a fixed amount or a scale based on the level of services provided or amount of assets under management. Other fee revenue - Other fee revenue includes a variety of other traditional banking services such as, electronic banking fees, letters of credit origination fees, wire transfer fees, money orders, treasury checks, checksale fees and transfer fees. Our performance obligations are generally satisfied at a point in time, fee revenue is recognized when the services are provided or the transaction is settled. |
Wealth Management Fees | Wealth Management Fees Assets held in a fiduciary capacity by our subsidiary bank, S&T Bank, are not our assets and are therefore not included in our Consolidated Financial Statements. Wealth management fee income is reported in the Consolidated Statements of Net Income on an accrual basis. |
Stock-Based Compensation | Stock-Based Compensation |
Pensions | Pensions The expense for S&T Bank’s qualified and nonqualified defined benefit pension plans is actuarially determined using the projected unit credit actuarial cost method. It requires us to make economic assumptions regarding future interest rates and asset returns and various demographic assumptions. We estimate the discount rate used to measure benefit obligations by applying the projected cash flow for future benefit payments to a yield curve of high-quality corporate bonds available in the marketplace and by employing a model that matches bonds to our pension cash flows. The expected return on plan assets is an estimate of the long-term rate of return on plan assets, which is determined based on the current asset mix and estimates of return by asset class. We recognize in the Consolidated Balance Sheets an asset for the plan’s overfunded status or a liability for the plan’s underfunded status. Gains or losses related to changes in benefit obligations or plan assets resulting from experience different from that assumed are recognized as other comprehensive income (loss) in the period in which they occur. To the extent that such gains or losses exceed ten percent of the greater of the projected benefit obligation or plan assets, they are recognized as a component of pension costs over the future service periods of actively employed plan participants. The funding policy for the qualified plan is to contribute an amount each year that is at least equal to the minimum required contribution as determined under the Pension Protection Act of 2006 and the Bipartisan Budget Act of 2015, but not more than the maximum amount permissible for taxable plan sponsors. Our nonqualified plans are unfunded. On January 25, 2016, the Board of Directors approved an amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. As a result, no additional benefits are earned by participants in those plans based on service or pay after March 31, 2016. The plan was previously closed to new participants effective December 31, 2007. |
Marketing Costs | Marketing Costs We expense all marketing-related costs, including advertising costs, as incurred. |
Income Taxes | Income Taxes We estimate income tax expense based on amounts expected to be owed to the tax jurisdictions where we conduct business. On a quarterly basis, management assesses the reasonableness of our effective tax rate based upon our current estimate of the amount and components of net income, tax credits and the applicable statutory tax rates expected for the full year. We classify interest and penalties as an element of tax expense. Deferred income tax assets and liabilities are determined using the asset and liability method and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and recognizes enacted changes in tax rate and laws. When deferred tax assets are recognized, they are subject to a valuation allowance based on management’s judgment as to whether realization is more likely than not. Accrued taxes represent the net estimated amount due to taxing jurisdictions and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. We evaluate and assess the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintain tax accruals consistent with the evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, and the current period’s income tax expense and can be significant to our operating results. In the fourth quarter 2017, H.R.1, known as the Tax Cuts and Jobs Act, or Tax Act, was signed into law which requires the deferred tax assets and liabilities to be revalued using the 21 percent federal tax rate enacted. The effect was recorded in our fourth quarter tax provision in 2017. In the first quarter 2018, we elected to reclassify the income tax effects of the Tax Act from accumulated other comprehensive income to retained earnings. Tax positions are recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. |
Earnings Per Share | Earnings Per Share Basic earnings per share, or EPS, is calculated using the two-class method to determine income allocated to common shareholders. Unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities under the two-class method. Income allocated to common shareholders is then divided by the weighted average number of common shares outstanding during the period. Potentially dilutive securities are excluded from the basic EPS calculation. Diluted EPS is calculated under the more dilutive of either the treasury stock method or the two-class method. Under the treasury stock method, the weighted average number of common shares outstanding is increased by the potentially dilutive common shares. For the two-class method, diluted EPS is calculated for each class of shareholders using the weighted average number of shares attributed to each class. Potentially dilutive common shares are related to our outstanding warrants, stock options and restricted stock. |
Recently Adopted Accounting Standards Updates, or ASU | Recently Adopted Accounting Standards Updates, or ASU Leases - Section A-Amendments to the FASB Accounting Standards Codification, Section B-Conforming Amendments Related to Leases and Section C-Background Information and Basis for Conclusions In February 2016, the Financial Accounting Standards Board, or FASB, established ASC Topic 842, by issuing ASU No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use, or ROU, model that requires a lessee to recognize ROU assets and lease liabilities on the balance sheet. Leases will be classified as finance or operating leases, with classification affecting the pattern and classification of expense recognition in the statement of operations. We adopted the new standard on January 1, 2019 (see Note 7: Right-of-use Assets and Lease Liabilities). The new standard provides several optional practical expedients to elect in transition to the new lease guidance. We have elected the "package of practical expedients," which permit us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We elected the "use-of-hindsight" practical expedient which allows us to use hindsight in judgments that impact the lease term. We have also elected an accounting policy not to restate comparative periods upon adoption. The most significant effects of adopting the new standard relate to the recognition of ROU assets and lease liabilities on our balance sheet for our real estate leases and providing significant new disclosures about our leasing activities. The carrying value of our ROU assets will be tested annually for impairment or more frequently if events or changes in circumstances indicate that an impairment might exist. Upon adoption, we recognized additional finance lease liabilities of approximately $1.2 million and operating lease liabilities, net of deferred rent, of approximately $33.7 million based on the present value of the remaining minimum rental payments under current leasing standards for existing leases. We also recognized corresponding finance ROU assets of $1.2 million and operating ROU assets of approximately $33.4 million . The adoption had no material impact on the Consolidated Statements of Net Income. The new standard also provides practical expedients for our ongoing lease accounting. We elected the short-term lease recognition exemption for all leases with terms of 12 months or less. This means that we will not recognize ROU assets or lease liabilities for existing short-term leases of those assets in transition. Beginning in 2019, we made changes to our disclosed lease recognition policies and practices, as well as to other related financial statement disclosures due to the adoption of this standard (See Note 7: Right-of-use Assets and Lease Liabilities). Leases - Land Easement Practical Expedient for Transition to Topic 842 In January 2018, the FASB issued ASU No. 2018-01, Leases - Land Easement Practical Expedient for Transition to Topic 842. The amendments in this ASU permit an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that existed or expired before the entity's adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. We have one land easement lease that we previously accounted for under Topic 840; as such, this lease has been recognized as an operating lease under Topic 842. We adopted the amendments in this ASU in conjunction with the adoption of the new lease standard, ASU 2016-02. |
Loan Credit Risk Rating | We continually monitor the commercial loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans within the pass rating generally have a lower risk of loss than loans risk rated as special mention and substandard. Our risk ratings are consistent with regulatory guidance and are as follows: Pass —The loan is currently performing and is of high quality. Special Mention —A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date. Substandard —A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives for Various Asset | The estimated useful lives for the various asset categories are as follows: 1) Land and Land Improvements Non-depreciating assets 2) Buildings 25 years 3) Furniture and Fixtures 5 years 4) Computer Equipment and Software 5 years or term of license 5) Other Equipment 5 years 6) Vehicles 5 years 7) Leasehold Improvements Lesser of estimated useful life of the asset (generally 15 years unless established otherwise) or the remaining term of the lease, including renewal options in the lease that are reasonably assured of exercise |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Consideration, Assets Acquired and Liabilities Assumed | The following table provides a summary of the assets acquired and liabilities assumed by DNB, the preliminary estimates of the fair value adjustments necessary to adjust those acquired assets and assumed liabilities to estimated fair value and the preliminary estimates of the resultant fair values of those assets and liabilities by S&T. S&T intends to finalize its accounting for the acquisition of DNB within one year from the date of acquisition. The preliminary fair value adjustments shown in the following table continue to be evaluated by management and may be subject to further adjustment. November 30, 2019 (dollars in thousands) As Recorded by DNB Preliminary Fair Value Adjustments (1) As Recorded by S&T Fair Value of Assets Acquired Cash and cash equivalents $ 64,119 $ — $ 64,119 Securities and other investments 108,715 183 108,898 Loans 917,127 (8,143 ) 908,984 Allowance for loan losses (6,487 ) 6,487 — Goodwill 15,525 (15,525 ) — Premises and equipment 6,782 8,090 14,872 Accrued interest receivable 4,138 — 4,138 Deferred income taxes 2,017 (3,298 ) (1,281 ) Core deposits and other intangible assets 269 (269 ) — Other assets 24,883 (4,278 ) 20,605 Total Assets Acquired 1,137,088 (16,753 ) 1,120,335 Fair Value of Liabilities Assumed Deposits 966,263 1,002 967,265 Borrowings 37,617 (276 ) 37,341 Accrued interest payable and other liabilities 11,157 (3,184 ) 7,973 Total Liabilities Assumed 1,015,037 (2,458 ) 1,012,579 Total Net Assets Acquired $ 122,051 $ (14,295 ) $ 107,756 Core Deposit Intangible Asset $ 7,288 Wealth Management Intangible Asset 1,772 Total Fair Value of Net Assets Acquired and Identified $ 116,816 Consideration Paid Cash $ 360 Common stock 200,631 Fair Value of Total Consideration $ 200,991 Goodwill $ 84,175 (1) Management is continuing to evaluate the purchase accounting fair value adjustments related to loans, including loan classification, intangible assets, premises and equipment, deferred income taxes, other assets and borrowings until the final valuations and appraisals are complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. |
Schedule of Pro Forma Information | The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of S&T and DNB to give effect to the merger as if it had occurred on January 1, 2018 for the periods presented. Unaudited Pro Forma Information December 31 (dollars in thousands, except per share data) 2019 2018 Total Revenue $ 341,117 $ 325,668 Net Income (1) 120,964 116,046 Earnings Per Common Share: (1) Basic $ 3.03 $ 2.90 Diluted $ 3.03 $ 2.88 (1) Excludes non-recurring merger-related expenses of $13.6 million , net of tax at 21 percent. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciles Numerators and Denominators of Basic Earnings Per Share and Diluted Earnings Per Share | The following table reconciles the numerators and denominators of basic and diluted EPS: Years ended December 31, (dollars in thousands, except share and per share data) 2019 2018 2017 Numerator for Earnings per Common Share—Basic: Net income $ 98,234 $ 105,334 $ 72,968 Less: Income allocated to participating shares 260 304 242 Net Income Allocated to Common Shareholders $ 97,974 $ 105,030 $ 72,726 Numerator for Earnings per Common Share—Diluted: Net income $ 98,234 $ 105,334 $ 72,968 Denominators: Weighted Average Common Shares Outstanding—Basic 34,628,191 34,775,784 34,729,376 Add: Dilutive potential common shares 94,763 199,625 225,391 Denominator for Treasury Stock Method—Diluted 34,722,954 34,975,409 34,954,767 Weighted Average Common Shares Outstanding—Basic 34,628,191 34,775,784 34,729,376 Add: Average participating shares outstanding 51,287 100,733 115,418 Denominator for Two-Class Method—Diluted 34,679,478 34,876,517 34,844,794 Earnings per common share—basic $ 2.84 $ 3.03 $ 2.10 Earnings per common share—diluted $ 2.82 $ 3.01 $ 2.09 Warrants considered anti-dilutive excluded from dilutive potential common shares - exercise price $31.53 per share, expires January 2019 (1) — 267,106 438,681 Restricted stock considered anti-dilutive excluded from dilutive potential common shares 12,686 81,587 88,578 (1) We repurchased our outstanding warrant on September 11, 2018 for $7.7 million . Prior to the repurchase, the warrant provided the holder the right to 517,012 shares of common stock at a strike price of $31.53 per share via cashless exercise. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at December 31, 2019 and 2018. There was one transfer between Level 1 and Level 2 for items measured at fair value on a recurring basis during the periods presented. The transfer is related to marketable equity securities with quoted prices in active markets that moved from level 2 to level 1. December 31, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total ASSETS Debt securities available-for-sale: U.S. Treasury securities $ — $ 10,040 $ — $ 10,040 Obligations of U.S. government corporations and agencies — 157,697 — 157,697 Collateralized mortgage obligations of U.S. government corporations and agencies — 189,348 — 189,348 Residential mortgage-backed securities of U.S. government corporations and agencies — 22,418 — 22,418 Commercial mortgage-backed securities of U.S. government corporations and agencies — 275,870 — 275,870 Corporate Bonds — 7,627 — 7,627 Obligations of states and political subdivisions — 116,133 — 116,133 Total Debt Securities Available-for-Sale — 779,133 — 779,133 Marketable equity securities 5,078 72 — 5,150 Total Securities 5,078 779,205 — 784,283 Securities held in a Rabbi Trust 5,987 — — 5,987 Derivative financial assets: Interest rate swaps — 25,647 — 25,647 Interest rate lock commitments — 321 — 321 Forward sale contracts — 1 — 1 Total Assets $ 11,065 $ 805,174 $ — $ 816,239 LIABILITIES Derivative financial liabilities: Interest rate swaps $ — $ 25,615 $ — $ 25,615 Total Liabilities $ — $ 25,615 $ — $ 25,615 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total ASSETS Debt securities available-for-sale: U.S. Treasury securities $ — $ 9,736 $ — $ 9,736 Obligations of U.S. government corporations and agencies — 128,261 — 128,261 Collateralized mortgage obligations of U.S. government corporations and agencies — 148,659 — 148,659 Residential mortgage-backed securities of U.S. government corporations and agencies — 24,350 — 24,350 Commercial mortgage-backed securities of U.S. government corporations and agencies — 246,784 — 246,784 Obligations of states and political subdivisions — 122,266 — 122,266 Total Debt Securities Available-for-Sale — 680,056 — 680,056 Marketable equity securities — 4,816 — 4,816 Total Securities — 684,872 — 684,872 Securities held in a Rabbi Trust 4,725 — — 4,725 Derivative financial assets: Interest rate swaps — 5,504 — 5,504 Interest rate lock commitments — 251 — 251 Forward sale contracts — 55 — 55 Total Assets $ 4,725 $ 690,682 $ — $ 695,407 LIABILITIES Derivative financial liabilities: Interest rate swaps $ — $ 5,340 $ — $ 5,340 Total Liabilities $ — $ 5,340 $ — $ 5,340 |
Assets Measured at Fair Value on Nonrecurring Basis by Fair Value Hierarchy | The following table presents our assets that are measured at fair value on a nonrecurring basis by the fair value hierarchy level as of the dates presented: December 31, 2019 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total ASSETS (1) Loans held for sale $ — $ — $ — $ — $ — $ — $ — $ — Impaired loans — — 38,697 38,697 — — 21,441 21,441 Other real estate owned — — 3,231 3,231 — — 2,826 2,826 Mortgage servicing rights — — 1,134 1,134 — — 1,197 1,197 Total Assets $ — $ — $ 43,062 $ 43,062 $ — $ — $ 25,464 $ 25,464 (1) This table presents only the nonrecurring items that are recorded at fair value in our financial statements. |
Carrying Values and Fair Values of Financial Instruments | The carrying values and fair values of our financial instruments at December 31, 2019 and 2018 are presented in the following tables: Fair Value Measurements at December 31, 2019 (dollars in thousands) Carrying Value (1) Total Level 1 Level 2 Level 3 ASSETS Cash and due from banks, including interest-bearing deposits $ 197,823 $ 197,823 $ 197,823 $ — $ — Securities 784,283 784,283 5,078 779,205 — Loans held for sale 5,256 5,256 — — 5,256 Portfolio loans, net 7,074,928 6,940,875 — — 6,940,875 Bank owned life insurance 80,473 80,473 — 80,473 — FHLB and other restricted stock 22,977 22,977 — — 22,977 Securities held in a Rabbi Trust 5,987 5,987 5,987 — — Mortgage servicing rights 4,662 4,650 — — 4,650 Interest rate swaps 25,647 25,647 — 25,647 — Interest rate lock commitments 321 321 — 321 — Forward sale contracts - mortgage loans 1 1 — 1 — LIABILITIES Deposits $ 7,036,576 $ 7,034,595 $ 5,441,143 $ 1,593,452 $ — Securities sold under repurchase agreements 19,888 19,888 19,888 — — Short-term borrowings 281,319 281,319 281,319 — — Long-term borrowings 50,868 51,339 4,678 46,661 — Junior subordinated debt securities 64,277 64,277 64,277 — — Interest rate swaps 25,615 25,615 — 25,615 — (1) As reported in the Consolidated Balance Sheets Fair Value Measurements at December 31, 2018 (dollars in thousands) Carrying Value (1) Total Level 1 Level 2 Level 3 ASSETS Cash and due from banks, including interest-bearing deposits $ 155,489 $ 155,489 $ 155,489 $ — $ — Securities 684,872 684,872 — 684,872 — Loans held for sale 2,371 2,469 — — 2,469 Portfolio loans, net 5,885,652 5,728,843 — — 5,728,843 Bank owned life insurance 73,900 73,900 — 73,900 — FHLB and other restricted stock 29,435 29,435 — — 29,435 Securities held in a Rabbi Trust 4,725 4,725 4,725 — — Mortgage servicing rights 4,464 5,181 — — 5,181 Interest rate swaps 5,504 5,504 — 5,504 — Interest rate lock commitments 251 251 — 251 — Forward sale contracts 55 55 — 55 — LIABILITIES Deposits $ 5,673,922 $ 5,662,193 $ 4,261,884 $ 1,400,309 $ — Securities sold under repurchase agreements 18,383 18,383 18,383 — — Short-term borrowings 470,000 470,000 470,000 — — Long-term borrowings 70,314 70,578 38,610 31,968 Junior subordinated debt securities 45,619 45,619 45,619 — — Interest rate swaps 5,340 5,340 — 5,340 — (1) As reported in the Consolidated Balance Sheets |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | The following table presents the fair values of our securities portfolio at the dates presented: December 31, (dollars in thousands) 2019 2018 Debt securities available-for-sale $ 779,133 $ 680,056 Marketable equity securities 5,150 4,816 Total Securities $ 784,283 $ 684,872 |
Schedule of Composition of Securities | The following tables present the amortized cost and fair value of debt securities available-for-sale as of December 31, 2019 and December 31, 2018: December 31, 2019 December 31, 2018 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities $ 9,969 $ 71 $ — $ 10,040 $ 9,958 $ — $ (222 ) $ 9,736 Obligations of U.S. government corporations and agencies 155,969 1,773 (45 ) 157,697 129,267 68 (1,074 ) 128,261 Collateralized mortgage obligations of U.S. government corporations and agencies 186,879 2,773 (304 ) 189,348 149,849 795 (1,985 ) 148,659 Residential mortgage-backed securities of U.S. government corporations and agencies 22,120 321 (23 ) 22,418 24,564 203 (417 ) 24,350 Commercial mortgage-backed securities of U.S. government corporations and agencies 273,771 2,680 (581 ) 275,870 251,660 — (4,876 ) 246,784 Corporate Obligations 7,603 24 — 7,627 — — — — Obligations of states and political subdivisions 112,116 4,017 — 116,133 119,872 2,448 (54 ) 122,266 Total Debt Securities Available-for-Sale $ 768,427 $ 11,659 $ (953 ) $ 779,133 $ 685,170 $ 3,514 $ (8,628 ) $ 680,056 |
Schedule of Gross and Net Realized Gains and Losses on Sale of Securities | The following table shows the composition of gross and net realized gains and losses for the periods presented: Years ended December 31, (dollars in thousands) 2019 2018 2017 Gross realized gains $ 41 $ — $ 3,986 Gross realized losses (67 ) — (986 ) Net Realized (Losses)/Gains $ (26 ) $ — $ 3,000 |
Schedule of Temporally Impaired Debt Securities | The following tables present the fair value and the age of gross unrealized losses on debt securities available-for-sale by investment category as of the dates presented: December 31, 2019 Less Than 12 Months 12 Months or More Total (dollars in thousands) Number of Securities Fair Unrealized Losses Number of Securities Fair Unrealized Losses Number of Securities Fair Unrealized Losses U.S. Treasury securities — $ — $ — — $ — $ — — $ — $ — Obligations of U.S. government corporations and agencies 3 22,638 (45 ) — — — 3 22,638 (45 ) Collateralized mortgage obligations of U.S. government corporations and agencies 6 23,393 (73 ) 6 25,254 (231 ) 12 48,647 (304 ) Residential mortgage-backed securities of U.S. government corporations and agencies 1 982 (2 ) 1 2,534 (21 ) 2 3,516 (23 ) Commercial mortgage-backed securities of U.S. government corporations and agencies 9 90,005 (581 ) — — — 9 90,005 (581 ) Corporate Obligations (1) 1 79 — — — — 1 79 — Obligations of states and political subdivisions — — — — — — — — — Total Temporarily Impaired Debt Securities 20 $ 137,097 $ (701 ) 7 $ 27,788 $ (252 ) 27 $ 164,885 $ (953 ) (1) Unrealized loss on Corporate Obligations rounded to less than one thousand dollars. December 31, 2018 Less Than 12 Months 12 Months or More Total (dollars in thousands) Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses U.S. Treasury securities — $ — $ — 1 $ 9,736 $ (222 ) 1 $ 9,736 $ (222 ) Obligations of U.S. government corporations and agencies 7 67,649 (613 ) 6 35,760 (461 ) 13 103,409 (1,074 ) Collateralized mortgage obligations of U.S. government corporations and agencies 2 12,495 (44 ) 14 76,179 (1,941 ) 16 88,674 (1,985 ) Residential mortgage-backed securities of U.S. government corporations and agencies 2 2,327 (45 ) 3 9,241 (372 ) 5 11,568 (417 ) Commercial mortgage-backed securities of U.S. government corporations and agencies 8 75,466 (1,032 ) 19 171,318 (3,844 ) 27 246,784 (4,876 ) Obligations of states and political subdivisions 2 9,902 (23 ) 1 5,247 (31 ) 3 15,149 (54 ) Total Temporarily Impaired Debt Securities 21 $ 167,839 $ (1,757 ) 44 $ 307,481 $ (6,871 ) 65 $ 475,320 $ (8,628 ) |
Unrealized Gain (Loss) on Investments | The following table presents net unrealized gains and losses, net of tax, on debt securities available-for-sale included in accumulated other comprehensive income/(loss), for the periods presented: December 31, 2019 December 31, 2018 (dollars in thousands) Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) Total unrealized gains/(losses) on debt securities available-for-sale $ 11,659 $ (953 ) $ 10,706 $ 3,514 $ (8,628 ) $ (5,114 ) Income tax (expense) benefit (2,486 ) 203 (2,283 ) (746 ) 1,832 1,086 Net Unrealized Gains/(Losses), Net of Tax Included in Accumulated Other Comprehensive Income/(Loss) $ 9,173 $ (750 ) $ 8,423 $ 2,768 $ (6,796 ) $ (4,028 ) |
Amortized Cost and Fair Value of Available-for-Sale Securities | The amortized cost and fair value of debt securities available-for-sale at December 31, 2019 by contractual maturity are included in the table below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2019 (dollars in thousands) Amortized Cost Fair Value Obligations of the U.S. Treasury, U.S. government corporations and agencies, and obligations of states and political subdivisions Due in one year or less $ 103,008 $ 103,278 Due after one year through five years 98,401 100,527 Due after five years through ten years 69,213 71,933 Due after ten years 15,035 15,759 Debt Securities Available-for-Sale With Maturities 285,657 291,497 Collateralized mortgage obligations of U.S. government corporations and agencies 186,879 189,348 Residential mortgage-backed securities of U.S. government corporations and agencies 22,120 22,418 Commercial mortgage-backed securities of U.S. government corporations and agencies 273,771 275,870 Total Debt Securities Available-for-Sale $ 768,427 $ 779,133 |
Schedule of Unrealized Gains and Losses on Marketable Equity Securities | The following table presents realized and unrealized net gains and losses for our marketable equity securities for the periods presented: Years ended December 31, (dollars in thousands) 2019 2018 2017 Marketable Equity Securities Unrealized Gains on Equity Securities Held at Beginning of Year $ 1,001 $ 1,329 $ 3,670 Net market gains/(losses) 334 (328 ) 1,646 Less: Net gains for equity securities sold — — 3,987 Unrealized Gains on Equity Securities Still Held $ 1,335 $ 1,001 $ 1,329 |
Loans and Loans Held for Sale (
Loans and Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Composition of Loans | The following table summarizes the composition of originated and acquired loans as of the dates presented: December 31, (dollars in thousands) 2019 2018 Commercial Commercial real estate $ 3,416,518 $ 2,921,832 Commercial and industrial 1,720,833 1,493,416 Commercial construction 375,445 257,197 Total Commercial Loans 5,512,796 4,672,445 Consumer Residential mortgage 998,585 726,679 Home equity 538,348 471,562 Installment and other consumer 79,033 67,546 Consumer construction 8,390 8,416 Total Consumer Loans 1,624,356 1,274,203 Total Portfolio Loans 7,137,152 5,946,648 Loans held for sale 5,256 2,371 Total Loans $ 7,142,408 $ 5,949,019 |
Restructured Loans for Periods Presented and Type of Concession | The following table summarizes our restructured loans as of the dates presented: December 31, 2019 December 31, 2018 (dollars in thousands) Performing TDRs Nonperforming TDRs Total TDRs Performing TDRs Nonperforming TDRs Total TDRs Commercial real estate $ 22,233 $ 6,713 $ 28,946 $ 2,054 $ 1,139 $ 3,193 Commercial and industrial 6,909 695 7,604 7,026 6,646 13,672 Commercial construction 1,425 — 1,425 1,912 406 2,318 Residential mortgage 2,013 822 2,835 2,214 1,543 3,757 Home equity 4,371 678 5,049 3,568 1,349 4,917 Installment and other consumer 9 4 13 12 5 17 Total $ 36,960 $ 8,912 $ 45,872 $ 16,786 $ 11,088 $ 27,874 The following tables present the restructured loans by loan segment and by type of concession for the years ended December 31: 2019 2018 (dollars in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment (1) Post-Modification Outstanding Recorded Investment (1) Total Difference in Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment (1) Post-Modification Outstanding Recorded Investment (1) Total Difference in Recorded Investment Totals by Loan Segment Commercial Real Estate Maturity date extension — $ — $ — $ — 1 $ 256 $ 179 $ (77 ) Maturity date extension and interest rate reduction 1 150 145 (6 ) — — — — Principal deferral 3 23,517 23,059 (458 ) 1 90 90 — Principal deferral and maturity date extension 1 436 436 — — — — — Below market interest rate 2 569 1,519 950 — — — — Total Commercial Real Estate 7 24,672 25,159 486 2 346 269 (77 ) Commercial and Industrial Maturity date extension — — — — 2 768 166 (602 ) Maturity date extension and interest rate reduction 1 4,751 4,136 (616 ) — — — — Principal deferral 1 1,250 1,250 — 4 4,815 4,383 (432 ) Principal deferral and maturity date extension 1 292 275 (17 ) 6 5,355 5,341 (14 ) Total Commercial and Industrial 3 6,294 5,661 (633 ) 12 10,938 9,890 (1,048 ) Residential Mortgage Principal deferral and maturity date extension 3 183 183 — — — — — Consumer bankruptcy (2) 3 165 157 (9 ) 5 387 374 (13 ) Total Residential Mortgage 6 348 340 (9 ) 5 387 374 (13 ) Home equity Maturity date extension and interest rate reduction — — — — 2 47 46 (1 ) Principal deferral and maturity date extension 2 39 39 — — — — — Interest rate reduction 2 190 188 (2 ) 1 120 120 — Consumer bankruptcy (2) 29 886 810 (77 ) 22 811 681 (130 ) Total Home Equity 33 1,116 1,037 (79 ) 25 978 847 (131 ) Installment and Other Consumer Consumer bankruptcy (2) 4 16 11 (5 ) 2 23 4 (19 ) Total Installment and Other Consumer 4 $ 16 $ 11 $ (5 ) 2 $ 23 $ 4 $ (19 ) Totals by Concession Type Maturity date extension — $ — $ — $ — 3 $ 1,024 $ 345 $ (679 ) Maturity date extension and interest rate reduction 2 4,902 4,280 (622 ) 2 47 46 (1 ) Principal deferral 4 24,767 24,309 (458 ) 5 4,905 4,473 (432 ) Principal deferral and maturity date extension 7 950 933 (17 ) 6 5,355 5,341 $ (14 ) Interest rate reduction 2 190 188 (2 ) 1 120 120 — Below market interest rate 2 569 1,519 950 — — — — Consumer bankruptcy (2) 36 1,068 977 (91 ) 29 1,221 1,059 $ (162 ) Total 53 $ 32,446 $ 32,206 $ (240 ) 46 $ 12,672 $ 11,384 $ (1,288 ) (1) Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. (2) Consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. |
Schedule of Nonperforming Assets | The following table is a summary of nonperforming assets as of the dates presented: December 31, (dollars in thousands) 2019 2018 Nonperforming Assets Nonaccrual loans $ 45,145 $ 34,985 Nonaccrual TDRs 8,912 11,088 Total nonaccrual loans 54,057 46,073 OREO 3,525 3,092 Total Nonperforming Assets $ 57,582 $ 49,165 |
Summary of Aggregate Amount of Loans to Officers and Directors | The following table presents a summary of the aggregate amount of loans to certain officers, directors of S&T or any affiliates of such persons as of December 31: (dollars in thousands) 2019 2018 Balance at beginning of year $ 8,682 $ 10,070 New loans 2,442 2,841 Repayments or no longer considered a related party (2,899 ) (4,229 ) Balance at end of year $ 8,225 $ 8,682 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Age Analysis of Past Due Loans Segregated by Class of Loans | The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented: December 31, 2019 (dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days + Past Due (1) Non- performing Total Past Due Loans Total Loans Commercial real estate $ 3,376,156 $ 9,595 $ 716 $ 911 $ 29,140 $ 40,362 $ 3,416,518 Commercial and industrial 1,700,522 2,940 1,946 1,443 13,982 20,311 1,720,833 Commercial construction 372,589 956 1,163 — 737 2,856 375,445 Residential mortgage 986,148 2,016 1,727 1,175 7,519 12,437 998,585 Home equity 533,367 2,059 141 142 2,639 4,981 538,348 Installment and other consumer 78,189 426 292 86 40 844 79,033 Consumer construction 8,390 — — — — — 8,390 Loans held for sale 5,256 — — — — — 5,256 Total $ 7,060,617 $ 17,992 $ 5,985 $ 3,757 $ 54,057 $ 81,791 $ 7,142,408 (1) Represents acquired loans that were recorded at fair value at the acquisition date and remain performing. December 31, 2018 (dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days + Past Due Non- performing Total Past Due Loans Total Loans Commercial real estate $ 2,903,997 $ 3,638 $ 2,145 $ — $ 12,052 $ 17,835 $ 2,921,832 Commercial and industrial 1,482,473 1,000 983 — 8,960 10,943 1,493,416 Commercial construction 243,004 — — — 14,193 14,193 257,197 Residential mortgage 717,447 1,584 520 — 7,128 9,232 726,679 Home equity 465,152 2,103 609 — 3,698 6,410 471,562 Installment and other consumer 67,281 148 75 — 42 265 67,546 Consumer construction 8,416 — — — — — 8,416 Loans held for sale 2,371 — — — — — 2,371 Total $ 5,890,141 $ 8,473 $ 4,332 $ — $ 46,073 $ 58,878 $ 5,949,019 |
Recorded Investment in Commercial Loan Classes by Internally Assigned Risk Ratings | The following tables present the recorded investment in commercial loan classes by internally assigned risk ratings as of the dates presented: December 31, 2019 (dollars in thousands) Commercial Real Estate % of Total Commercial and Industrial % of Total Commercial Construction % of Total Total % of Total Pass $ 3,270,437 95.7 % $ 1,636,314 95.1 % $ 347,324 92.5 % $ 5,254,076 95.3 % Special mention 57,285 1.7 % 36,484 2.1 % 10,109 2.7 % 103,878 1.9 % Substandard 86,772 2.5 % 47,980 2.8 % 17,899 4.8 % 152,651 2.8 % Doubtful 2,023 — % 55 — % 113 — % 2,191 — % Total $ 3,416,518 100.0 % $ 1,720,833 100.0 % $ 375,445 100.0 % $ 5,512,796 100.0 % December 31, 2018 (dollars in thousands) Commercial Real Estate % of Total Commercial and Industrial % of Total Commercial Construction % of Total Total % of Total Pass $ 2,774,997 95.0 % $ 1,394,067 93.4 % $ 233,103 90.7 % $ 4,402,167 94.3 % Special mention 54,627 1.9 % 25,368 1.7 % 7,349 2.8 % 87,344 1.8 % Substandard 90,913 3.1 % 73,621 4.9 % 16,658 6.5 % 181,192 3.9 % Doubtful 1,295 — % 360 — % 87 — % 1,742 — % Total $ 2,921,832 100.0 % $ 1,493,416 100.0 % $ 257,197 100.0 % $ 4,672,445 100.0 % |
Recorded Investment in Consumer Loan Classes by Performing and Nonperforming Status | The following tables present the recorded investment in consumer loan classes by performing and nonperforming status as of the dates presented: December 31, 2019 (dollars in thousands) Residential Mortgage % of Total Home Equity % of Total Installment and other consumer % of Total Consumer Construction % of Total Total % of Total Performing $ 991,066 99.2 % $ 535,709 99.5 % $ 78,993 99.9 % $ 8,390 100.0 % $ 1,614,158 99.4 % Nonperforming 7,519 0.8 % 2,639 0.5 % 40 0.1 % — — % 10,198 0.6 % Total $ 998,585 100.0 % $ 538,348 100.0 % $ 79,033 100.0 % $ 8,390 100.0 % $ 1,624,356 100.0 % December 31, 2018 (dollars in thousands) Residential Mortgage % of Total Home Equity % of Total Installment and other consumer % of Total Consumer Construction % of Total Total % of Total Performing $ 719,551 99.0 % $ 467,864 99.2 % $ 67,504 99.9 % $ 8,416 100.0 % $ 1,263,335 99.1 % Nonperforming 7,128 1.0 % 3,698 0.8 % 42 0.1 % — — % 10,868 0.9 % Total $ 726,679 100.0 % $ 471,562 100.0 % $ 67,546 100.0 % $ 8,416 100.0 % $ 1,274,203 100.0 % |
Investments in Loans Considered to be Impaired and Related Information on Impaired Loans | The following table summarizes average recorded investment and interest income recognized on loans considered to be impaired for the years presented: For the Year Ended December 31, 2019 December 31, 2018 (dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With a related allowance recorded: Commercial real estate $ 14,018 $ — $ 7,780 $ 238 Commercial and industrial 10,135 576 591 38 Commercial construction 489 — 561 — Consumer real estate — — 16 1 Other consumer 13 1 19 1 Total with a Related Allowance Recorded 24,655 577 8,967 278 Without a related allowance recorded: Commercial real estate 35,739 943 3,911 172 Commercial and industrial 5,565 368 4,722 257 Commercial construction 1,831 131 17,643 217 Consumer real estate 8,190 397 9,701 483 Other consumer 7 — 24 — Total without a Related Allowance Recorded 51,332 1,839 36,001 1,129 Total: Commercial real estate 49,757 943 11,691 410 Commercial and industrial 15,700 944 5,313 295 Commercial construction 2,320 131 18,204 217 Consumer real estate 8,190 397 9,717 484 Other consumer 20 1 43 1 Total $ 75,987 $ 2,416 $ 44,968 $ 1,407 The following table summarizes investments in loans considered to be impaired and related information on those impaired loans as of the dates presented: December 31, 2019 December 31, 2018 (dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With a related allowance recorded: Commercial real estate $ 13,011 $ 14,322 $ 2,023 $ 7,733 $ 7,733 $ 1,295 Commercial and industrial 10,001 10,001 55 884 893 360 Commercial construction 489 489 113 489 489 87 Consumer real estate — — — 15 14 10 Other consumer 9 9 9 11 12 11 Total with a Related Allowance Recorded 23,510 24,821 2,200 9,132 9,141 1,763 Without a related allowance recorded: Commercial real estate 34,909 40,201 — 3,636 4,046 — Commercial and industrial 7,605 10,358 — 12,788 14,452 — Commercial construction 1,425 2,935 — 15,286 19,198 — Consumer real estate 7,884 8,445 — 8,659 9,635 — Other consumer 4 11 — 5 18 — Total without a Related Allowance Recorded 51,827 61,950 — 40,374 47,349 — Total: Commercial real estate 47,920 54,523 2,023 11,369 11,779 1,295 Commercial and industrial 17,606 20,359 55 13,672 15,345 360 Commercial construction 1,914 3,424 113 15,775 19,687 87 Consumer real estate 7,884 8,445 — 8,674 9,649 10 Other consumer 13 20 9 16 30 11 Total $ 75,337 $ 86,771 $ 2,200 $ 49,506 $ 56,490 $ 1,763 |
Summary of Allowance for Loan Losses | The following tables detail activity in the ALL for the periods presented: 2019 (dollars in thousands) Commercial Real Estate Commercial and Industrial Commercial Construction Consumer Real Estate Other Consumer Total Balance at beginning of year $ 33,707 $ 11,596 $ 7,983 $ 6,187 $ 1,523 $ 60,996 Charge-offs (3,664 ) (8,928 ) (406 ) (1,353 ) (1,838 ) (16,189 ) Recoveries 137 1,388 5 637 377 2,544 Net (Charge-offs) (3,527 ) (7,540 ) (401 ) (716 ) (1,461 ) (13,645 ) Provision for loan losses 397 11,625 318 866 1,667 14,873 Balance at End of Year $ 30,577 $ 15,681 $ 7,900 $ 6,337 $ 1,729 $ 62,224 2018 (dollars in thousands) Commercial Real Estate Commercial and Industrial Commercial Construction Consumer Real Estate Other Consumer Total Balance at beginning of year $ 27,235 $ 8,966 $ 13,167 $ 5,479 $ 1,543 $ 56,390 Charge-offs (372 ) (8,574 ) (2,630 ) (1,319 ) (1,694 ) (14,589 ) Recoveries 309 1,723 1,135 541 492 4,200 Net (Charge-offs) (63 ) (6,851 ) (1,495 ) (778 ) (1,202 ) (10,389 ) Provision for loan losses 6,535 9,481 (3,689 ) 1,486 1,182 14,995 Balance at End of Year $ 33,707 $ 11,596 $ 7,983 $ 6,187 $ 1,523 $ 60,996 |
Summary of Allowance for Loan Losses and Recorded Investments | The following tables present the ALL and recorded investments in loans by category as of December 31: 2019 Allowance for Loan Losses Portfolio Loans (dollars in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Commercial real estate $ 2,023 $ 28,554 $ 30,577 $ 47,920 $ 3,368,598 $ 3,416,518 Commercial and industrial 55 15,626 15,681 17,606 1,703,227 1,720,833 Commercial construction 113 7,787 7,900 1,914 373,531 375,445 Consumer real estate — 6,337 6,337 7,884 1,537,439 1,545,323 Other consumer 9 1,720 1,729 13 79,020 79,033 Total $ 2,200 $ 60,024 $ 62,224 $ 75,337 $ 7,061,815 $ 7,137,152 2018 Allowance for Loan Losses Portfolio Loans (dollars in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Commercial real estate $ 1,295 $ 32,412 $ 33,707 $ 11,369 $ 2,910,463 $ 2,921,832 Commercial and industrial 360 11,236 11,596 13,672 1,479,744 1,493,416 Commercial construction 87 7,896 7,983 15,775 241,422 257,197 Consumer real estate 10 6,177 6,187 8,674 1,197,983 1,206,657 Other consumer 11 1,512 1,523 16 67,530 67,546 Total $ 1,763 $ 59,233 $ 60,996 $ 49,506 $ 5,897,142 $ 5,946,648 |
Right-Of-Use Assets and Lease_2
Right-Of-Use Assets and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Finance and Operating Lease Details | The following table presents our lease expense for finance and operating leases for the years ended December 31: (dollars in thousands) 2019 2018 2017 Operating lease expense $ 4,221 $ 3,850 $ 3,980 Amortization of ROU assets - finance leases 101 44 43 Interest on lease liabilities - finance leases (1) 74 11 20 Total Lease Expense $ 4,396 $ 3,905 $ 4,043 (1) Included in borrowings interest expense in our Consolidated Statements of Net Income. All other lease costs in this table are included in net occupancy expense. The following table presents our ROU assets, weighted average term and the discount rates for finance and operating leases as of December 31, 2019: (dollars in thousands) Operating Leases ROU assets $ 47,686 Operating cash flows $ 5,028 Finance Leases ROU assets $ 1,513 Operating cash flows $ 47 Financing cash flows $ 57 Weighted Average Lease Term - Years Operating leases 19.18 Finance leases 12.16 Weighted Average Discount Rate Operating leases 5.94 % Finance leases 5.73 % |
Finance and Operating Lease Details | The following table presents our lease expense for finance and operating leases for the years ended December 31: (dollars in thousands) 2019 2018 2017 Operating lease expense $ 4,221 $ 3,850 $ 3,980 Amortization of ROU assets - finance leases 101 44 43 Interest on lease liabilities - finance leases (1) 74 11 20 Total Lease Expense $ 4,396 $ 3,905 $ 4,043 (1) Included in borrowings interest expense in our Consolidated Statements of Net Income. All other lease costs in this table are included in net occupancy expense. The following table presents our ROU assets, weighted average term and the discount rates for finance and operating leases as of December 31, 2019: (dollars in thousands) Operating Leases ROU assets $ 47,686 Operating cash flows $ 5,028 Finance Leases ROU assets $ 1,513 Operating cash flows $ 47 Financing cash flows $ 57 Weighted Average Lease Term - Years Operating leases 19.18 Finance leases 12.16 Weighted Average Discount Rate Operating leases 5.94 % Finance leases 5.73 % |
Maturity Analysis of Lease Liabilities for Operating Leases | The following table presents the maturity analysis of lease liabilities for finance and operating leases as of December 31, 2019: (dollars in thousands) Maturity Analysis Finance Operating Total 2020 $ 267 $ 4,618 $ 4,885 2021 269 4,586 4,855 2022 225 4,647 4,872 2023 129 4,716 4,845 2024 130 4,760 4,890 Thereafter 1,277 69,641 70,918 Total 2,297 92,968 95,265 Less: Present value discount (719 ) (40,461 ) (41,180 ) Lease Liabilities $ 1,578 $ 52,507 $ 54,085 |
Maturity Analysis of Lease Liabilities for Finance Leases | The following table presents the maturity analysis of lease liabilities for finance and operating leases as of December 31, 2019: (dollars in thousands) Maturity Analysis Finance Operating Total 2020 $ 267 $ 4,618 $ 4,885 2021 269 4,586 4,855 2022 225 4,647 4,872 2023 129 4,716 4,845 2024 130 4,760 4,890 Thereafter 1,277 69,641 70,918 Total 2,297 92,968 95,265 Less: Present value discount (719 ) (40,461 ) (41,180 ) Lease Liabilities $ 1,578 $ 52,507 $ 54,085 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | The following table is a summary of premises and equipment as of the dates presented: December 31, (dollars in thousands) 2019 2018 Land $ 9,018 $ 6,266 Premises 60,767 52,423 Furniture and equipment 41,713 36,911 Leasehold improvements 11,290 7,118 122,788 102,718 Accumulated depreciation (65,848 ) (60,988 ) Total $ 56,940 $ 41,730 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents goodwill as of the dates presented: December 31, (dollars in thousands) 2019 2018 Balance at beginning of year $ 287,446 $ 291,670 Additions (1) 84,175 — Other adjustments — (4,224 ) Balance at End of Year $ 371,621 $ 287,446 (1) Management is continuing to evaluate the purchase accounting fair value adjustments for the DNB merger. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. |
Summary of Intangible Assets | The following table presents a summary of intangible assets as of the dates presented: December 31, (dollars in thousands) 2019 2018 Gross carrying amount at beginning of year $ 21,898 $ 22,114 Additions (1) 9,154 80 Other adjustments — (296 ) Accumulated amortization (20,133 ) (19,297 ) Balance at End of Year $ 10,919 $ 2,601 (1) Management is still evaluating the intangible asset valuation due to the final independent valuation report not being complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. |
Summary of Expected Amortization Expense for Finite-Lived Intangibles Assets | The following is a summary of the expected amortization expense for finite-lived intangible assets, assuming no new additions, for each of the five years following December 31, 2019 and thereafter: (dollars in thousands) Amount 2020 $ 2,421 2021 1,738 2022 1,474 2023 1,274 2024 1,110 Thereafter 2,902 Total $ 10,919 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Value of Derivative Assets and Derivative Liabilities | The following table indicates the amounts representing the value of derivative assets and derivative liabilities at December 31: Derivatives (included in Other Assets) Derivatives (included in Other Liabilities) (dollars in thousands) 2019 2018 2019 2018 Derivatives not Designated as Hedging Instruments Interest Rate Swap Contracts—Commercial Loans Fair value $ 25,647 $ 5,504 $ 25,615 $ 5,340 Notional amount 740,762 325,750 740,762 325,750 Collateral posted — 160 26,127 — Interest Rate Lock Commitments—Mortgage Loans Fair value 321 251 — — Notional amount 9,829 6,054 — — Forward Sale Contracts—Mortgage Loans Fair value 1 55 — — Notional amount 12,750 6,000 — — |
Schedule of Gross Amounts of Derivative Assets | The following table indicates the gross amounts of commercial loan swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at December 31: Derivatives (included in Other Assets) Derivatives (included in Other Liabilities) (dollars in thousands) 2019 2018 2019 2018 Derivatives not Designated as Hedging Instruments Gross amounts recognized $ 26,146 $ 8,733 $ 26,114 $ 8,569 Gross amounts offset (499 ) (3,229 ) (499 ) (3,229 ) Net amounts presented in the Consolidated Balance Sheets 25,647 5,504 25,615 5,340 Gross amounts not offset (1) — (160 ) (26,127 ) — Net Amount $ 25,647 $ 5,344 $ (512 ) $ 5,340 (1) Amounts represent collateral received/posted for the periods presented. |
Schedule of Gross Amounts of Derivative Liabilities | The following table indicates the gross amounts of commercial loan swap derivative assets and derivative liabilities, the amounts offset and the carrying values in the Consolidated Balance Sheets at December 31: Derivatives (included in Other Assets) Derivatives (included in Other Liabilities) (dollars in thousands) 2019 2018 2019 2018 Derivatives not Designated as Hedging Instruments Gross amounts recognized $ 26,146 $ 8,733 $ 26,114 $ 8,569 Gross amounts offset (499 ) (3,229 ) (499 ) (3,229 ) Net amounts presented in the Consolidated Balance Sheets 25,647 5,504 25,615 5,340 Gross amounts not offset (1) — (160 ) (26,127 ) — Net Amount $ 25,647 $ 5,344 $ (512 ) $ 5,340 (1) Amounts represent collateral received/posted for the periods presented. |
Amount of Gain or Loss Recognized in Income on Derivatives | The following table indicates the gain or loss recognized in income on derivatives for the years ended December 31: (dollars in thousands) 2019 2018 2017 Derivatives not Designated as Hedging Instruments Interest rate swap contracts—commercial loans $ (132 ) $ 145 $ 17 Interest rate lock commitments—mortgage loans 70 25 (11 ) Forward sale contracts—mortgage loans (54 ) 60 52 Total Derivative (Loss)/Gain $ (116 ) $ 230 $ 58 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of Mortgage Servicing Rights at Net Carrying Value | The following table indicates MSRs and the net carrying values: (dollars in thousands) Servicing Rights Valuation Allowance Net Carrying Value Balance at December 31, 2017 $ 4,192 $ (59 ) $ 4,133 Additions 907 — 907 Amortization (581 ) — (581 ) Temporary recapture — 5 5 Balance at December 31, 2018 $ 4,518 $ (54 ) $ 4,464 Additions 1,086 — 1,086 Amortization (665 ) — (665 ) Temporary (impairment) — (223 ) (223 ) Balance at December 31, 2019 $ 4,939 $ (277 ) $ 4,662 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Composition of Deposits and Interest Expenses | The following table presents the composition of deposits at December 31 and interest expense for the years ended December 31: 2019 2018 2017 (dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Noninterest-bearing demand $ 1,698,082 $ — $ 1,421,156 $ — $ 1,387,712 $ — Interest-bearing demand 962,331 3,915 573,693 93 603,141 67 Money market 1,949,811 30,236 1,482,065 20,018 1,146,156 9,204 Savings 830,919 1,928 784,970 1,773 893,119 2,081 Certificates of deposit 1,595,433 26,947 1,412,038 18,972 1,397,763 13,978 Total $ 7,036,576 $ 63,026 $ 5,673,922 $ 40,856 $ 5,427,891 $ 25,330 |
Scheduled Maturities of Certificates of Deposit | The following table indicates the scheduled maturities of certificates of deposit at December 31, 2019: (dollars in thousands) Amount 2020 $ 1,272,707 2021 220,480 2022 63,915 2023 21,991 2024 12,012 Thereafter 4,328 Total $ 1,595,433 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Composition of Short-Term Borrowings, Interest Expense and Weighted Average Interest Rate | The following table presents the composition of short-term borrowings, the weighted average interest rate as of December 31 and interest expense for the years ended December 31: 2019 2018 2017 (dollars in thousands) Balance Weighted Average Interest Rate Interest Expense Balance Weighted Average Interest Rate Interest Expense Balance Weighted Average Interest Rate Interest Expense REPOs $ 19,888 0.74 % $ 110 $ 18,383 0.46 % $ 222 $ 50,161 0.39 % $ 54 FHLB advances 281,319 1.84 % 6,416 470,000 2.65 % 11,082 540,000 1.47 % 7,399 Total Short-term Borrowings $ 301,207 1.76 % $ 6,526 $ 488,383 2.57 % $ 11,304 $ 590,161 1.38 % $ 7,453 |
Long-Term Borrowings and Subo_2
Long-Term Borrowings and Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Borrowings, Interest Expense and Weighted Average Interest Rate | The following table represents the balance of long-term borrowings, the weighted average interest rate as of December 31 and interest expense for the years ended December 31: (dollars in thousand) 2019 2018 2017 Long-term borrowings $ 50,868 $ 70,314 $ 47,301 Weighted average interest rate 2.60 % 2.84 % 1.88 % Interest expense $ 1,831 $ 1,129 $ 463 |
Schedule of Annual Maturities and Average Interest Rate of Long-Term Debt | Scheduled annual maturities and average interest rates for all of our long-term debt for each of the five years subsequent to December 31, 2019 and thereafter are as follows: (dollars in thousands) Balance Average Rate 2020 $ 27,058 2.91 % 2021 1,115 3.57 % 2022 7,592 2.24 % 2023 464 5.71 % 2024 13,381 1.71 % Thereafter 1,258 5.83 % Total $ 50,868 2.61 % |
Schedule of Junior Subordinated Debt Securities and Interest Expense | The following table represents the composition of junior subordinated debt securities at December 31 and the interest expense for the years ended December 31: 2019 2018 2017 (dollars in thousands) Balance Interest Expense Balance Interest Expense Balance Interest Expense Junior subordinated debt $ 34,753 $ 1,059 $ 25,000 $ 951 $ 25,000 $ 708 Junior subordinated debt—trust preferred securities 29,524 1,251 20,619 1,149 20,619 955 Total $ 64,277 $ 2,310 $ 45,619 $ 2,100 $ 45,619 $ 1,663 |
Schedule of Junior Subordinated Debt Securities | The following table summarizes the key terms of our junior subordinated debt securities: (dollars in thousands) 2001 Trust 2005 Trust 2015 Junior 2006 Junior Subordinated Debt 2008 Trust Preferred Securities Junior Subordinated Debt $— $— $9,750 $25,000 $— Trust Preferred Securities 5,155 4,124 — — 20,619 Stated Maturity Date 7/25/2031 5/23/2035 3/6/2025 12/15/2036 3/15/2038 Optional redemption date at par Any time after 7/25/2011 Any time after 5/23/2010 Quarterly after 4/1/2020 Any time after 9/15/2011 Any time after 3/15/2013 Regulatory Capital Tier 1 Tier 1 Tier 2 Tier 2 Tier 1 Interest Rate 6 Month LIBOR plus 375 bps 3 Month LIBOR plus 177 bps fixed at 4.25% until 4/1/2020 then prime plus 100 bps 3 month LIBOR plus 160 bps 3 month LIBOR plus 350 bps Interest Rate at December 31, 2019 6.00% 3.68% 4.25% 3.49% 5.39% |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Letters of Credit | The following table sets forth our commitments and letters of credit as of the dates presented: December 31, (dollars in thousands) 2019 2018 Commitments to extend credit $ 1,910,805 $ 1,464,892 Standby letters of credit 80,040 77,134 Total $ 1,990,845 $ 1,542,026 |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The information presented in the following table presents the point of revenue recognition for revenue from contracts with customers. Other revenue streams are excluded such as: interest income, net securities gains and losses, insurance, mortgage banking and other revenues that are accounted for under other GAAP. Years ended December 31, (dollars in thousands) 2019 2018 2017 Revenue Streams (1) Point of Revenue Recognition Service charges on deposit accounts Over a period of time $ 1,859 $ 1,972 $ 1,984 At a point in time 11,457 11,124 10,474 $ 13,316 $ 13,096 $ 12,458 Debit and credit card Over a period time $ 723 $ 656 $ 537 At a point in time 12,682 12,022 11,493 $ 13,405 $ 12,679 $ 12,029 Wealth management Over a period of time $ 6,939 $ 7,113 $ 7,067 At a point in time 1,684 2,971 2,691 $ 8,623 $ 10,084 $ 9,758 Other fee revenue At a point in time $ 3,836 $ 3,854 $ 3,679 (1) Refer to Note 1. Summary of Significant Accounting Policies for the types of revenue streams that are included within each category. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The following table presents the composition of income tax expense (benefit) for the years ended December 31: (dollars in thousands) 2019 2018 2017 Federal Current $ 18,918 $ 13,616 $ 32,282 Deferred (406 ) 3,517 13,980 Total Federal 18,512 17,133 46,262 State Current 589 720 323 Deferred 25 (8 ) (148 ) Total State 614 712 175 Total Federal and State $ 19,126 $ 17,845 $ 46,437 |
Schedule of Statutory to Effective Tax Rate Reconciliation | The following table presents a reconciliation of the statutory tax rate to the effective tax rate for the years ended December 31: 2019 2018 2017 Statutory tax rate 21.0 % 21.0 % 35.0 % Low income housing tax credits (3.3 )% (2.5 )% (2.9 )% Tax-exempt interest (2.1 )% (2.1 )% (4.0 )% Bank owned life insurance (0.4 )% (0.4 )% (0.8 )% Gain on sale of a majority interest of insurance business — % 0.7 % — % Merger related expenses 0.3 % — % — % Other 0.8 % 0.3 % 0.3 % Impact of the Tax Act — % (2.5 )% 11.3 % Effective Tax Rate 16.3 % 14.5 % 38.9 % |
Schedule of Significant Components of Temporary Differences | The following table presents significant components of our temporary differences as of the dates presented: December 31, (dollars in thousands) 2019 2018 Deferred Tax Assets: Allowance for loan losses $ 13,798 $ 13,463 Net unrealized losses on securities available-for-sale — 1,091 Other employee benefits 3,039 2,712 Low income housing partnerships 3,494 3,249 Net adjustment to funded status of pension 5,438 5,173 Lease liabilities 11,257 — State net operating loss carryforwards 5,134 4,573 Other 1,856 2,856 Gross Deferred Tax Assets 44,016 33,117 Less: Valuation allowance (5,134 ) (4,573 ) Total Deferred Tax Assets 38,882 28,544 Deferred Tax Liabilities: Net unrealized gains on securities available-for-sale (2,570 ) — Prepaid pension (5,971 ) (6,164 ) Deferred loan income (3,555 ) (3,219 ) Purchase accounting adjustments (1,269 ) (100 ) Depreciation on premises and equipment (592 ) (477 ) Right-of-use lease assets (10,476 ) — Other (1,243 ) (1,375 ) Total Deferred Tax liabilities (25,676 ) (11,335 ) Net Deferred Tax Asset $ 13,206 $ 17,209 |
Schedule of Reconciliation of Change in Federal and State Gross Unrecognized Tax Benefits | The following table reconciles the change in Federal and State gross unrecognized tax benefits, or UTB, for the years ended December 31: (dollars in thousands) 2019 2018 2017 Balance at beginning of year $ 768 $ 909 $ 804 Prior period tax positions (10 ) (251 ) (37 ) Current period tax positions 293 110 142 Balance at End of Year $ 1,051 $ 768 $ 909 Amount That Would Impact the Effective Tax Rate if Recognized $ 848 $ 607 $ 770 |
Tax Effects on Other Comprehe_2
Tax Effects on Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Tax Effects of Components of Other Comprehensive Income (Loss) | The following tables present the tax effects of the components of other comprehensive income (loss) for the years ended December 31: (dollars in thousands) Pre-Tax Amount Tax (Expense) Benefit Net of Tax Amount 2019 Net change in unrealized gains on debt securities available-for sale $ 15,793 $ (3,367 ) $ 12,426 Net available-for-sale securities losses reclassified into earnings 26 (6 ) 20 Adjustment to funded status of employee benefit plans (1,282 ) 273 (1,009 ) Other Comprehensive Income $ 14,537 $ (3,100 ) $ 11,437 2018 Net change in unrealized gains on securities available-for-sale (1) $ (6,794 ) $ 1,449 $ (5,345 ) Net available-for-sale securities losses reclassified into earnings — — — Adjustment to funded status of employee benefit plans 6,297 (1,343 ) 4,954 Other Comprehensive Loss $ (497 ) $ 106 $ (391 ) 2017 Net change in unrealized gains on securities available-for-sale $ (1,275 ) $ 448 $ (827 ) Net available-for-sale securities gains reclassified into earnings (3,000 ) 1,054 (1,946 ) Adjustment to funded status of employee benefit plans (1,992 ) 122 (1,870 ) Other Comprehensive Loss $ (6,267 ) $ 1,624 $ (4,643 ) (1) Due to the adoption of ASU No. 2016-01, net unrealized gains on marketable equity securities were reclassified from accumulated other comprehensive income to retained earnings during the three months ended March 31, 2018. The prior period data was not restated; as such, the change in unrealized gains on marketable securities is combined with the change in net unrealized gains on debt securities for the prior period ended December 31, 2017. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Obligation and Plan Assets Deriving Funded Status, in Other Liabilities | The following table summarizes the activity in the benefit obligation and Plan assets deriving the funded status, which is recorded in other liabilities in the Consolidated Balance Sheets: (dollars in thousands) 2019 2018 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 95,200 $ 106,664 Interest cost 3,987 3,882 Actuarial gain/(loss) 13,996 (7,371 ) Acquisitions - DNB merger 6,778 — Benefits paid (6,282 ) (7,975 ) Projected Benefit Obligation at End of Year $ 113,679 $ 95,200 Change in Plan Assets Fair value of plan assets at beginning of year $ 101,765 $ 87,154 Actual return on plan assets 16,358 2,166 Employer contributions — 20,420 Acquisitions - DNB merger 4,811 — Benefits paid (6,282 ) (7,975 ) Fair Value of Plan Assets at End of Year $ 116,652 $ 101,765 Funded Status $ 2,973 $ 6,565 |
Accumulated Other Comprehensive Income (Loss) | The following table sets forth the amounts recognized in accumulated other comprehensive (loss) income at December 31: (dollars in thousands) 2019 2018 Net actuarial loss (23,106 ) (22,340 ) Total (Before Tax Effects) $ (23,106 ) $ (22,340 ) |
Actuarial Weighted Average Assumptions Used in Determining Benefit Obligation | Below are the actuarial weighted average assumptions used in determining the benefit obligation: 2019 2018 Discount rate 3.25 % 4.31 % Rate of compensation increase (1) — % — % (1) Rate of compensation increase is not applicable for 2019 and 2018 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. |
Components of Net Periodic Pension Cost and Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss) | The following table summarizes the components of net periodic pension cost and other changes in Plan assets and benefit obligations recognized in other comprehensive loss for the years ended December 31: (dollars in thousands) 2019 2018 2017 Components of Net Periodic Pension Cost Interest cost on projected benefit obligation 3,987 3,882 4,100 Expected return on plan assets (4,731 ) (6,266 ) (6,313 ) Amortization of prior service credit - DNB merger 7 — — Recognized net actuarial loss 1,604 2,134 1,866 Net Periodic Pension Expense $ 867 $ (250 ) $ (347 ) Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss) Net actuarial loss/(gain) $ 2,370 $ (3,271 ) $ 3,678 Recognized net actuarial loss (1,604 ) (2,134 ) (1,866 ) Recognized prior service credit — — — Total (Before Tax Effects) $ 766 $ (5,405 ) $ 1,812 Total Recognized in Net Benefit Cost and Other Comprehensive Income/(Loss) (Before Tax Effects) $ 1,633 $ (5,655 ) $ 1,465 |
Actuarial Weighted Average Assumptions Used in Determining Net Periodic Pension Cost | The following table summarizes the actuarial weighted average assumptions used in determining net periodic pension cost: 2019 2018 2017 Discount rate 4.31 % 3.75 % 4.00 % Rate of compensation increase (1) — % — % — % Expected return on assets 4.80 % 7.50 % 7.50 % (1) Rate of compensation increase is not applicable for 2019, 2018 and 2017 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. |
Estimated Future Benefit Payments | The following table provides information regarding estimated future benefit payments to be paid in each of the next five years and in the aggregate for the five years thereafter: (dollars in thousands) Amount 2020 $ 8,211 2021 8,151 2022 7,695 2023 7,343 2024 7,164 2025 - 2029 33,640 |
Pension Plan Assets Measured at Fair Value on Recurring Basis | The following tables present our Plan assets measured at fair value on a recurring basis by fair value hierarchy level at December 31, 2019 and 2018. During the year ended December 31, 2019, there were no transfers between Level 1 and Level 2 for items of a recurring basis. During the year ended December 31, 2018, cash and cash equivalents of $2.2 million were transferred to Level 1 from Level 2 relating to changes in our plan asset allocation as set forth in the plan's investment policy. There were no purchases or transfers of Level 3 plan assets in 2019 or 2018. December 31, 2019 Fair Value Asset Classes (1) (dollars in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents (2) $ 1,831 $ — $ — $ 1,831 Fixed income (3) 101,320 — — 101,320 Equities: Equity index mutual funds—international (4) 3,066 — — 3,066 Domestic individual equities (5) 10,435 — — 10,435 Total Assets at Fair Value $ 116,652 $ — $ — $ 116,652 (1) Refer to Note 1 Summary of Significant Accounting Policies, Fair Value Measurements for a description of levels within the fair value hierarchy. (2) This asset class includes FDIC insured money market instruments. (3) This asset class includes a variety of fixed income mutual funds which primarily invest in investment grade rated securities. Investment managers have discretion to invest in fixed income related securities including futures, options and other derivatives. Investments may be made in currencies other than the U.S. dollar. (4) The sole investment within this asset class is the Vanguard Total International Stock Index Fund Admiral Shares. (5) This asset class includes individual domestic equities invested in an active all-cap strategy. It may also include convertible bonds. December 31, 2018 Fair Value Asset Classes (1) (dollars in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents (2) $ 2,164 $ — $ — $ 2,164 Fixed income (3) 91,830 — — 91,830 Equities: Equity index mutual funds—international (4) 2,604 — — 2,604 Domestic individual equities (5) 4,884 — — 4,884 Total Assets at Fair Value $ 101,482 $ — $ — $ 101,482 (1) Refer to Note 1 Summary of Significant Accounting Policies, Fair Value Measurements for a description of levels within the fair value hierarchy. (2) This asset class includes FDIC insured money market instruments. (3) This asset class includes a variety of fixed income mutual funds which primarily invest in investment grade rated securities. Investment managers have discretion to invest in fixed income related securities including futures, options and other derivatives. Investments may be made in currencies other than the U.S. dollar. (4) The sole investment within this asset class is Harbor International Institutional Fund. (5) This asset class includes individual domestic equities invested in an active all-cap strategy. It may also include convertible bonds. |
Incentive and Restricted Stoc_2
Incentive and Restricted Stock Plan and Dividend Reinvestment Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Non-Vested Restricted Stock | The following table provides information about restricted stock granted under the 2014 Stock Plan for the years ended December 31: Restricted Stock Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 220,568 $ 30.19 Granted 75,997 42.43 Vested 63,323 29.19 Forfeited 26,847 30.18 Non-vested at December 31, 2018 206,395 $ 30.70 Granted 84,882 38.67 Vested 76,014 30.75 Forfeited 33,228 32.50 Non-vested at December 31, 2019 182,035 $ 34.06 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets of S&T Bancorp, Inc. | BALANCE SHEETS December 31, (dollars in thousands) 2019 2018 ASSETS Cash $ 7,509 $ 8,869 Investments in: Bank subsidiary 1,198,964 925,286 Nonbank subsidiaries 16,393 15,479 Other assets 9,741 8,458 Total Assets $ 1,232,607 $ 958,092 LIABILITIES Long-term debt $ 39,277 $ 20,619 Other liabilities 1,332 1,712 Total Liabilities 40,609 22,331 Total Shareholders’ Equity 1,191,998 935,761 Total Liabilities and Shareholders’ Equity $ 1,232,607 $ 958,092 |
Statements of Net Income of S&T Bancorp, Inc. | STATEMENTS OF NET INCOME Years ended December 31, (dollars in thousands) 2019 2018 2017 Dividends from subsidiaries $ 59,490 $ 44,988 $ 36,169 Investment income 1 24 22 Total Income 59,491 45,012 36,191 Interest expense on long-term debt 1,285 1,149 955 Other expenses 4,325 3,988 3,801 Total Expense 5,610 5,137 4,756 Income before income tax and undistributed net income of subsidiaries 53,881 39,875 31,435 Income tax benefit (1,189 ) (1,093 ) (1,596 ) Income before undistributed net income of subsidiaries 55,070 40,968 33,031 Equity in undistributed net income (distribution in excess of net income) of: Bank subsidiary 42,683 68,385 40,877 Nonbank subsidiaries 481 (4,019 ) (940 ) Net Income $ 98,234 $ 105,334 $ 72,968 |
Statements of Cash Flows of S&T Bancorp, Inc. | STATEMENTS OF CASH FLOWS Years ended December 31, (dollars in thousands) 2019 2018 2017 OPERATING ACTIVITIES Net Income $ 98,234 $ 105,334 $ 72,968 Equity in undistributed (earnings) losses of subsidiaries (43,164 ) (64,366 ) (39,937 ) Other (99 ) 1,695 480 Net Cash Provided by Operating Activities 54,971 42,663 33,511 INVESTING ACTIVITIES Net investments in subsidiaries 176 — — Acquisitions (10 ) — — Net Cash Used in Investing Activities 166 — — FINANCING ACTIVITIES Sale of treasury shares, net (915 ) (657 ) (689 ) Purchase of treasury shares (18,222 ) (12,256 ) — Cash dividends paid to common shareholders (37,360 ) (34,539 ) (28,569 ) Payment to repurchase of warrant — (7,652 ) — Net Cash Used in Financing Activities (56,497 ) (55,104 ) (29,258 ) Net (decrease) increase in cash (1,360 ) (12,441 ) 4,253 Cash at beginning of year 8,869 21,310 17,057 Cash at End of Year $ 7,509 $ 8,869 $ 21,310 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Risk-Based Capital Amounts and Ratios | The following table summarizes risk-based capital amounts and ratios for S&T and S&T Bank: Actual Minimum Regulatory Capital Requirements To be Well Capitalized Under Prompt Corrective Action Provisions (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Leverage Ratio S&T $ 854,146 10.29 % $ 331,925 4.00 % $ 414,907 5.00 % S&T Bank 832,113 10.04 % 331,355 4.00 % 414,194 5.00 % Common Equity Tier 1 (to Risk-Weighted Assets) S&T 825,146 11.43 % 324,745 4.50 % 469,077 6.50 % S&T Bank 832,113 11.56 % 324,048 4.50 % 468,069 6.50 % Tier 1 Capital (to Risk-Weighted Assets) S&T 854,146 11.84 % 432,994 6.00 % 577,325 8.00 % S&T Bank 832,113 11.56 % 432,064 6.00 % 576,085 8.00 % Total Capital (to Risk-Weighted Assets) S&T 954,094 13.22 % 577,325 8.00 % 721,656 10.00 % S&T Bank 922,310 12.81 % 576,085 8.00 % 720,106 10.00 % As of December 31, 2018 Leverage Ratio S&T $ 689,778 10.05 % $ 274,497 4.00 % $ 343,121 5.00 % S&T Bank 659,304 9.63 % 273,820 4.00 % 342,275 5.00 % Common Equity Tier 1 (to Risk-Weighted Assets) S&T 669,778 11.38 % 264,933 4.50 % 382,681 6.50 % S&T Bank 659,304 11.23 % 264,127 4.50 % 381,517 6.50 % Tier 1 Capital (to Risk-Weighted Assets) S&T 689,778 11.72 % 353,244 6.00 % 470,992 8.00 % S&T Bank 659,304 11.23 % 352,170 6.00 % 469,560 8.00 % Total Capital (to Risk-Weighted Assets) S&T 777,913 13.21 % 470,992 8.00 % 588,741 10.00 % S&T Bank 747,438 12.73 % 469,560 8.00 % 586,950 10.00 % |
Selected Financial Data (Tables
Selected Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Financial Data | The following table presents selected financial data for the most recent eight quarters. 2019 2018 (dollars in thousands, except per share data) (unaudited) Fourth Quarter (1) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter SUMMARY OF OPERATIONS Interest income $ 82,457 $ 79,813 $ 79,624 $ 78,590 $ 76,589 $ 73,627 $ 71,581 $ 68,029 Interest expense 18,045 18,617 18,797 18,234 16,747 14,365 13,178 11,097 Provision for loan losses 2,105 4,913 2,205 5,649 2,716 462 9,345 2,472 Net Interest Income After Provision For Loan Losses 62,307 56,283 58,622 54,707 57,126 58,800 49,058 54,460 Security (losses) gains, net (26 ) — — — — — — — Noninterest income 15,257 13,063 12,901 11,362 11,095 12,042 12,251 13,792 Noninterest expense 50,178 37,667 40,352 38,919 36,415 37,085 35,863 36,082 Income Before Taxes 27,360 31,679 31,171 27,150 31,806 33,757 25,446 32,170 Provision for income taxes 5,091 4,743 5,070 4,222 4,952 2,876 4,010 6,007 Net Income $ 22,269 $ 26,936 $ 26,101 $ 22,928 $ 26,854 $ 30,881 $ 21,436 $ 26,163 Per Share Data Common earnings per share—diluted $ 0.62 $ 0.79 $ 0.76 $ 0.66 $ 0.77 $ 0.88 $ 0.61 $ 0.75 Dividends declared per common share 0.28 0.27 0.27 0.27 0.27 0.25 0.25 0.22 Common book value 30.13 28.69 28.11 27.47 26.98 26.27 25.91 25.58 (1) The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Nov. 30, 2019USD ($) | Dec. 31, 2019USD ($)entityleaseunitsubsidiary | Jan. 01, 2019USD ($)lease | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Number of wholly owned subsidiaries | subsidiary | 5 | |||||
Percentage of outstanding common stock of investees accounted for using equity method of accounting | 100.00% | |||||
Number of entities non-banking activities | entity | 8 | |||||
Goodwill | $ 371,621,000 | $ 287,446,000 | ||||
Prior period reclassification adjustment | $ 0 | |||||
Period for satisfactory payment of TDRs | 6 months | |||||
Evaluation for impairment of substandard and nonaccrual commercial loans | $ 500,000 | |||||
Look-back period used for assumptions of allowance for loans and lease losses | 10 years 6 months | |||||
Number of reporting units | unit | 1 | |||||
Number of wholly owned trust subsidiaries | subsidiary | 3 | |||||
Financing leases, lease liabilities | $ 1,578,000 | |||||
Operating leases, lease liabilities | 52,507,000 | |||||
Financing leases, ROU assets | 1,513,000 | |||||
Operating leases, ROU assets | $ 47,686,000 | |||||
Number of operating lease agreements | lease | 48 | |||||
Commercial construction | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss emergence period for used for assumptions of allowance for loans and lease losses | 3 years | |||||
Commercial real estate | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss emergence period for used for assumptions of allowance for loans and lease losses | 3 years | |||||
Commercial and industrial | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss emergence period for used for assumptions of allowance for loans and lease losses | 1 year 3 months | |||||
Consumer real estate | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss emergence period for used for assumptions of allowance for loans and lease losses | 2 years 9 months | |||||
Other consumer | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss emergence period for used for assumptions of allowance for loans and lease losses | 1 year 3 months | |||||
Minimum | Commercial construction | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss emergence period for used for assumptions of allowance for loans and lease losses | 3 years | |||||
Minimum | Core Deposits And Customers Lists | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Weighted average estimated useful of acquired intangibles | 10 years | |||||
Maximum | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Amortization period of investments in joint ventures | 10 years | |||||
Maximum | Commercial construction | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Loss emergence period for used for assumptions of allowance for loans and lease losses | 4 years | |||||
Maximum | Core Deposits And Customers Lists | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Weighted average estimated useful of acquired intangibles | 20 years | |||||
Corporate Joint Venture | Common Wealth Trust Life Insurance Company | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of outstanding common stock of investees accounted for using equity method of accounting | 50.00% | |||||
Subsidiaries | S&T Evergreen Insurance LLC | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of ownership in subsidiary sold | 70.00% | |||||
New Partnership | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Percentage of outstanding common stock of investees accounted for using equity method of accounting | 30.00% | |||||
ASU No. 2016-01 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Effect of new accounting pronouncement on Consolidated Financial Statements | [1] | $ 0 | ||||
ASU No. 2016-02 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Effect of new accounting pronouncement on Consolidated Financial Statements | $ 167,000 | |||||
Financing leases, lease liabilities | 1,200,000 | |||||
Operating leases, lease liabilities | 33,700,000 | |||||
Financing leases, ROU assets | 1,200,000 | |||||
Operating leases, ROU assets | $ 33,400,000 | |||||
Number of operating lease agreements | lease | 1 | |||||
AOCI Attributable to Parent | ASU No. 2016-01 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Effect of new accounting pronouncement on Consolidated Financial Statements | [1] | (862,000) | ||||
Retained Earnings | ASU No. 2016-01 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Effect of new accounting pronouncement on Consolidated Financial Statements | [1] | $ 862,000 | ||||
Retained Earnings | ASU No. 2016-02 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Effect of new accounting pronouncement on Consolidated Financial Statements | $ 167,000 | |||||
Interest rate lock commitments | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Period for interest rate lock commitment | 60 days | |||||
DNB | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Fair value of consideration | $ 200,991,000 | |||||
Total assets acquired | 1,100,000,000 | |||||
Loans acquired | 909,000,000 | |||||
Goodwill | 84,175,000 | $ 84,200,000 | ||||
Deposits acquired | $ 967,265,000 | |||||
[1] | Reclassification due to the adoption of ASU No. 2016-01, related to changes in fair value for equity securities reclassified out of accumulated other comprehensive income. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives for Various Asset (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 25 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Computer Equipment and Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Other Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 5 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, years | 15 years |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | Nov. 30, 2019USD ($)banking_location$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 371,621,000 | $ 287,446,000 | ||
Merger related expenses | 11,350,000 | 0 | $ 0 | |
Professional services and legal | 4,244,000 | $ 4,132,000 | $ 4,096,000 | |
DNB | ||||
Business Acquisition [Line Items] | ||||
Number of banking locations | banking_location | 14 | |||
Shares of S&T offered for each share of DNB (in shares) | shares | 1.22 | |||
Fair value of consideration | $ 200,991,000 | |||
Cash | $ 360,000 | |||
S&T common shares issued (in shares) | shares | 5,318,964 | |||
S&T common shares issued, fair value (in USD per share) | $ / shares | $ 37.72 | |||
Goodwill | $ 84,175,000 | 84,200,000 | ||
Carryover of allowance for loan losses | 0 | |||
Acquired loans | 908,984,000 | 899,300,000 | ||
Discount on loans acquired | $ 10,500,000 | |||
Merger related expenses | 11,400,000 | |||
Data processing, contract termination and conversion cost expenses | 4,700,000 | |||
Professional services and legal | 2,800,000 | |||
Severance payments | 3,400,000 | |||
Other expenses | 500,000 | |||
Net interest income | 3,200,000 | |||
Net Income | 2,100,000 | |||
DNB | Commercial real estate | ||||
Business Acquisition [Line Items] | ||||
Acquired loans | 455,600,000 | |||
DNB | Commercial and industrial | ||||
Business Acquisition [Line Items] | ||||
Acquired loans | 85,400,000 | |||
DNB | Commercial construction | ||||
Business Acquisition [Line Items] | ||||
Acquired loans | 77,100,000 | |||
DNB | Residential mortgage | ||||
Business Acquisition [Line Items] | ||||
Acquired loans | 219,700,000 | |||
DNB | Home equity | ||||
Business Acquisition [Line Items] | ||||
Acquired loans | 56,400,000 | |||
DNB | Installment and other consumer | ||||
Business Acquisition [Line Items] | ||||
Acquired loans | 4,100,000 | |||
DNB | Consumer construction | ||||
Business Acquisition [Line Items] | ||||
Acquired loans | $ 1,000,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 11, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 10, 2018 | ||
Numerator for Earnings per Common Share-Basic: | |||||||||||||||
Net Income | $ 98,234 | $ 105,334 | $ 72,968 | ||||||||||||
Less: Income allocated to participating shares | 260 | 304 | 242 | ||||||||||||
Net Income Allocated to Common Shareholders | $ 22,269 | [1] | $ 26,936 | $ 26,101 | $ 22,928 | $ 26,854 | $ 30,881 | $ 21,436 | $ 26,163 | 97,974 | 105,030 | 72,726 | |||
Numerator for Earnings per Common Share—Diluted: | |||||||||||||||
Net Income | $ 98,234 | $ 105,334 | $ 72,968 | ||||||||||||
Denominators: | |||||||||||||||
Weighted Average Common Shares Outstanding-Basic (in shares) | 34,628,191 | 34,775,784 | 34,729,376 | ||||||||||||
Add: Dilutive potential common shares (in shares) | 94,763 | 199,625 | 225,391 | ||||||||||||
Denominator for Treasury Stock Method-Diluted (in shares) | 34,722,954 | 34,975,409 | 34,954,767 | ||||||||||||
Weighted Average Common Shares Outstanding-Basic (in shares) | 34,628,191 | 34,775,784 | 34,729,376 | ||||||||||||
Add: Average participating shares outstanding (in shares) | 51,287 | 100,733 | 115,418 | ||||||||||||
Denominator for Two-Class Method-Diluted (in shares) | 34,679,478 | 34,876,517 | 34,844,794 | ||||||||||||
Earnings per common share—basic (in USD per share) | $ 2.84 | $ 3.03 | $ 2.10 | ||||||||||||
Earnings per common share—diluted (in USD per share) | $ 0.62 | [1] | $ 0.79 | $ 0.76 | $ 0.66 | $ 0.77 | $ 0.88 | $ 0.61 | $ 0.75 | $ 2.82 | $ 3.01 | $ 2.09 | |||
Repurchase of warrant | $ 7,700 | $ 0 | $ 7,652 | $ 0 | |||||||||||
Number of shares of common stock that holder of warrants have right to purchase (in shares) | 517,012 | ||||||||||||||
Warrants exercise price (in USD per share) | $ 31.53 | $ 31.53 | $ 31.53 | $ 31.53 | $ 31.53 | $ 31.53 | |||||||||
Warrants | |||||||||||||||
Denominators: | |||||||||||||||
Anti-dilutive securities excluded from dilutive potential common shares | [2] | 0 | 267,106 | 438,681 | |||||||||||
Restricted Stock | |||||||||||||||
Denominators: | |||||||||||||||
Anti-dilutive securities excluded from dilutive potential common shares | 12,686 | 81,587 | 88,578 | ||||||||||||
[1] | The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. | ||||||||||||||
[2] | We repurchased our outstanding warrant on September 11, 2018 for $7.7 million . Prior to the repurchase, the warrant provided the holder the right to 517,012 shares of common stock at a strike price of $31.53 per share via cashless exercise. |
Business Combinations - Conside
Business Combinations - Consideration, Assets Acquired and Liabilities Assumed (Details) - USD ($) | Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value of Assets Acquired | ||||
Goodwill | $ 371,621,000 | $ 287,446,000 | ||
Core deposits and other intangible assets | 10,900,000 | |||
Fair Value of Liabilities Assumed | ||||
Identifiable Intangible Assets | 10,900,000 | |||
Goodwill | 371,621,000 | $ 287,446,000 | ||
As Recorded by DNB | ||||
Fair Value of Assets Acquired | ||||
Cash and cash equivalents | $ 64,119,000 | |||
Securities and other investments | 108,715,000 | |||
Loans | 917,127,000 | |||
Allowance for loan losses | (6,487,000) | |||
Goodwill | 15,525,000 | |||
Premises and equipment | 6,782,000 | |||
Accrued interest receivable | 4,138,000 | |||
Deferred income taxes | 2,017,000 | |||
Core deposits and other intangible assets | 269,000 | |||
Other assets | 24,883,000 | |||
Total Assets Acquired | 1,137,088,000 | |||
Fair Value of Liabilities Assumed | ||||
Deposits | 966,263,000 | |||
Borrowings | 37,617,000 | |||
Accrued interest payable and other liabilities | 11,157,000 | |||
Total Liabilities Assumed | 1,015,037,000 | |||
Total Net Assets Acquired | 122,051,000 | |||
Identifiable Intangible Assets | 269,000 | |||
Goodwill | 15,525,000 | |||
DNB | ||||
Fair Value of Assets Acquired | ||||
Cash and cash equivalents | 64,119,000 | |||
Preliminary Fair Value Adjustments, Cash and cash equivalents | [1] | 0 | ||
Securities and other investments | 108,898,000 | |||
Preliminary Fair Value Adjustments, Securities and other investments | [1] | 183,000 | ||
Loans | 908,984,000 | 899,300,000 | ||
Preliminary Fair Value Adjustments, Loans | [1] | (8,143,000) | ||
Allowance for loan losses | 0 | |||
Preliminary Fair Value Adjustments, Allowance for loan losses | [1] | 6,487,000 | ||
Goodwill | 84,175,000 | 84,200,000 | ||
Preliminary Fair Value Adjustments, Goodwill | [1] | (15,525,000) | ||
Premises and equipment | 14,872,000 | |||
Preliminary Fair Value Adjustments, Premises and equipment | [1] | 8,090,000 | ||
Accrued interest receivable | 4,138,000 | |||
Preliminary Fair Value Adjustments, Accrued Interest Receivable | [1] | 0 | ||
Deferred income taxes | (1,281,000) | |||
Preliminary Fair Value Adjustments, Deferred income taxes | [1] | (3,298,000) | ||
Preliminary Fair Value Adjustments, Core deposits and other intangible assets | [1] | (269,000) | ||
Other assets | 20,605,000 | |||
Preliminary Fair Value Adjustments, Other assets | [1] | (4,278,000) | ||
Total Assets Acquired | 1,120,335,000 | |||
Preliminary Fair Value Adjustments, Total Assets Acquired | [1] | (16,753,000) | ||
Fair Value of Liabilities Assumed | ||||
Deposits | 967,265,000 | |||
Preliminary Fair Value Adjustments, Deposits | [1] | 1,002,000 | ||
Borrowings | 37,341,000 | |||
Preliminary Fair Value Adjustments, Borrowings | [1] | (276,000) | ||
Accrued interest payable and other liabilities | 7,973,000 | |||
Preliminary Fair Value Adjustments, Accrued interest payable and other liabilities | [1] | (3,184,000) | ||
Total Liabilities Assumed | 1,012,579,000 | |||
Preliminary Fair Value Adjustments, Total Liabilities Assumed | [1] | (2,458,000) | ||
Total Net Assets Acquired | 107,756,000 | |||
Preliminary Fair Value Adjustments, Total Net Assets Acquired | [1] | (14,295,000) | ||
Total Fair Value of Identifiable Net Assets | 116,816,000 | |||
Cash | 360,000 | |||
Common stock | 200,631,000 | |||
Fair Value of Total Consideration | 200,991,000 | |||
Goodwill | 84,175,000 | $ 84,200,000 | ||
Core Deposits | DNB | ||||
Fair Value of Assets Acquired | ||||
Core deposits and other intangible assets | 7,288,000 | |||
Fair Value of Liabilities Assumed | ||||
Identifiable Intangible Assets | 7,288,000 | |||
Wealth management | DNB | ||||
Fair Value of Assets Acquired | ||||
Core deposits and other intangible assets | 1,772,000 | |||
Fair Value of Liabilities Assumed | ||||
Identifiable Intangible Assets | $ 1,772,000 | |||
[1] | Management is continuing to evaluate the purchase accounting fair value adjustments related to loans, including loan classification, intangible assets, premises and equipment, deferred income taxes, other assets and borrowings until the final valuations and appraisals are complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. |
Business Combinations - Pro For
Business Combinations - Pro Forma Financial Information (Details) - DNB - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Business Acquisition [Line Items] | |||
Total Revenue | $ 341,117 | $ 325,668 | |
Net Income | [1] | $ 120,964 | $ 116,046 |
Basic (in usd per share) | [1] | $ 3.03 | $ 2.90 |
Diluted (in usd per share) | [1] | $ 3.03 | $ 2.88 |
Merger-related expenses | $ 13,600 | ||
[1] | Excludes non-recurring merger-related expenses of $13.6 million |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) $ in Thousands | Dec. 31, 2019USD ($)transfer | Dec. 31, 2018USD ($)transfer |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Transfers between Level 1 and Level 2 | transfer | 1 | 1 |
ASSETS | ||
Debt securities, available-for-sale | $ 779,133 | $ 680,056 |
Marketable equity securities | 5,150 | 4,816 |
U.S. Treasury securities | ||
ASSETS | ||
Debt securities, available-for-sale | 10,040 | 9,736 |
Obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 157,697 | 128,261 |
Collateralized mortgage obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 189,348 | 148,659 |
Residential mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 22,418 | 24,350 |
Commercial mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 275,870 | 246,784 |
Obligations of states and political subdivisions | ||
ASSETS | ||
Debt securities, available-for-sale | 116,133 | 122,266 |
Fair Value Measurements, Recurring | ||
ASSETS | ||
Debt securities, available-for-sale | 779,133 | 680,056 |
Marketable equity securities | 5,150 | 4,816 |
Total Securities | 784,283 | 684,872 |
Securities held in a Rabbi Trust | 5,987 | 4,725 |
Total Assets | 816,239 | 695,407 |
LIABILITIES | ||
Total Liabilities | 25,615 | 5,340 |
Fair Value Measurements, Recurring | U.S. Treasury securities | ||
ASSETS | ||
Debt securities, available-for-sale | 10,040 | 9,736 |
Fair Value Measurements, Recurring | Obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 157,697 | 128,261 |
Fair Value Measurements, Recurring | Collateralized mortgage obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 189,348 | 148,659 |
Fair Value Measurements, Recurring | Residential mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 22,418 | 24,350 |
Fair Value Measurements, Recurring | Commercial mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 275,870 | 246,784 |
Fair Value Measurements, Recurring | Corporate Bonds | ||
ASSETS | ||
Debt securities, available-for-sale | 7,627 | |
Fair Value Measurements, Recurring | Obligations of states and political subdivisions | ||
ASSETS | ||
Debt securities, available-for-sale | 116,133 | 122,266 |
Fair Value Measurements, Recurring | Interest rate swaps | ||
ASSETS | ||
Derivative financial assets | 25,647 | 5,504 |
LIABILITIES | ||
Derivative financial liabilities | 25,615 | 5,340 |
Fair Value Measurements, Recurring | Interest rate lock commitments | ||
ASSETS | ||
Derivative financial assets | 321 | 251 |
Fair Value Measurements, Recurring | Forward sale contracts | ||
ASSETS | ||
Derivative financial assets | 1 | 55 |
Fair Value Measurements, Recurring | Level 1 | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Marketable equity securities | 5,078 | 0 |
Total Securities | 5,078 | 0 |
Securities held in a Rabbi Trust | 5,987 | 4,725 |
Total Assets | 11,065 | 4,725 |
LIABILITIES | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | U.S. Treasury securities | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Collateralized mortgage obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Residential mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Commercial mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Corporate Bonds | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | |
Fair Value Measurements, Recurring | Level 1 | Obligations of states and political subdivisions | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Interest rate swaps | ||
ASSETS | ||
Derivative financial assets | 0 | 0 |
LIABILITIES | ||
Derivative financial liabilities | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Interest rate lock commitments | ||
ASSETS | ||
Derivative financial assets | 0 | 0 |
Fair Value Measurements, Recurring | Level 1 | Forward sale contracts | ||
ASSETS | ||
Derivative financial assets | 0 | 0 |
Fair Value Measurements, Recurring | Level 2 | ||
ASSETS | ||
Debt securities, available-for-sale | 779,133 | 680,056 |
Marketable equity securities | 72 | 4,816 |
Total Securities | 779,205 | 684,872 |
Securities held in a Rabbi Trust | 0 | 0 |
Total Assets | 805,174 | 690,682 |
LIABILITIES | ||
Total Liabilities | 25,615 | 5,340 |
Fair Value Measurements, Recurring | Level 2 | U.S. Treasury securities | ||
ASSETS | ||
Debt securities, available-for-sale | 10,040 | 9,736 |
Fair Value Measurements, Recurring | Level 2 | Obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 157,697 | 128,261 |
Fair Value Measurements, Recurring | Level 2 | Collateralized mortgage obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 189,348 | 148,659 |
Fair Value Measurements, Recurring | Level 2 | Residential mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 22,418 | 24,350 |
Fair Value Measurements, Recurring | Level 2 | Commercial mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 275,870 | 246,784 |
Fair Value Measurements, Recurring | Level 2 | Corporate Bonds | ||
ASSETS | ||
Debt securities, available-for-sale | 7,627 | |
Fair Value Measurements, Recurring | Level 2 | Obligations of states and political subdivisions | ||
ASSETS | ||
Debt securities, available-for-sale | 116,133 | 122,266 |
Fair Value Measurements, Recurring | Level 2 | Interest rate swaps | ||
ASSETS | ||
Derivative financial assets | 25,647 | 5,504 |
LIABILITIES | ||
Derivative financial liabilities | 25,615 | 5,340 |
Fair Value Measurements, Recurring | Level 2 | Interest rate lock commitments | ||
ASSETS | ||
Derivative financial assets | 321 | 251 |
Fair Value Measurements, Recurring | Level 2 | Forward sale contracts | ||
ASSETS | ||
Derivative financial assets | 1 | 55 |
Fair Value Measurements, Recurring | Level 3 | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Marketable equity securities | 0 | 0 |
Total Securities | 0 | 0 |
Securities held in a Rabbi Trust | 0 | 0 |
Total Assets | 0 | 0 |
LIABILITIES | ||
Total Liabilities | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | U.S. Treasury securities | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Collateralized mortgage obligations of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Residential mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Commercial mortgage-backed securities of U.S. government corporations and agencies | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Corporate Bonds | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | |
Fair Value Measurements, Recurring | Level 3 | Obligations of states and political subdivisions | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Interest rate swaps | ||
ASSETS | ||
Derivative financial assets | 0 | 0 |
LIABILITIES | ||
Derivative financial liabilities | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Interest rate lock commitments | ||
ASSETS | ||
Derivative financial assets | 0 | 0 |
Fair Value Measurements, Recurring | Level 3 | Forward sale contracts | ||
ASSETS | ||
Derivative financial assets | $ 0 | $ 0 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Estimated Fair Value on Nonrecurring Basis by Fair Value Hierarchy (Details) - Fair Value, Measurements, Nonrecurring - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities measured at fair value on nonrecurring basis | $ 0 | $ 0 | |
ASSETS | |||
Loans held for sale | [1] | 0 | 0 |
Impaired loans | [1] | 38,697,000 | 21,441,000 |
Other real estate owned | [1] | 3,231,000 | 2,826,000 |
Mortgage servicing rights | [1] | 1,134,000 | 1,197,000 |
Total Assets | [1] | 43,062,000 | 25,464,000 |
Level 1 | |||
ASSETS | |||
Loans held for sale | [1] | 0 | 0 |
Impaired loans | [1] | 0 | 0 |
Other real estate owned | [1] | 0 | 0 |
Mortgage servicing rights | [1] | 0 | 0 |
Total Assets | [1] | 0 | 0 |
Level 2 | |||
ASSETS | |||
Loans held for sale | [1] | 0 | 0 |
Impaired loans | [1] | 0 | 0 |
Other real estate owned | [1] | 0 | 0 |
Mortgage servicing rights | [1] | 0 | 0 |
Total Assets | [1] | 0 | 0 |
Level 3 | |||
ASSETS | |||
Loans held for sale | [1] | 0 | 0 |
Impaired loans | [1] | 38,697,000 | 21,441,000 |
Other real estate owned | [1] | 3,231,000 | 2,826,000 |
Mortgage servicing rights | [1] | 1,134,000 | 1,197,000 |
Total Assets | [1] | $ 43,062,000 | $ 25,464,000 |
[1] | This table presents only the nonrecurring items that are recorded at fair value in our financial statements. |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
ASSETS | |||||
Securities | $ 784,283 | $ 684,872 | |||
FHLB and other restricted stock | 22,977 | 29,435 | |||
LIABILITIES | |||||
Junior subordinated debt securities | 64,277 | 45,619 | $ 45,619 | ||
Carrying Value | |||||
ASSETS | |||||
Cash and due from banks, including interest-bearing deposits | [1] | 197,823 | 155,489 | ||
Securities | [1] | 784,283 | 684,872 | ||
Loans held for sale | [1] | 5,256 | 2,371 | ||
Portfolio loans, net | [1] | 7,074,928 | 5,885,652 | ||
Bank owned life insurance | [1] | 80,473 | 73,900 | ||
FHLB and other restricted stock | [1] | 22,977 | 29,435 | ||
Securities held in a Rabbi Trust | [1] | 5,987 | 4,725 | ||
Mortgage servicing rights | [1] | 4,662 | 4,464 | ||
LIABILITIES | |||||
Deposits | [1] | 7,036,576 | 5,673,922 | ||
Securities sold under repurchase agreements | [1] | 19,888 | 18,383 | ||
Short-term borrowings | [1] | 281,319 | 470,000 | ||
Long-term borrowings | [1] | 50,868 | 70,314 | ||
Junior subordinated debt securities | [1] | 64,277 | 45,619 | ||
Carrying Value | Interest rate swaps | |||||
ASSETS | |||||
Derivative financial assets | [1] | 25,647 | 5,504 | ||
LIABILITIES | |||||
Derivative financial liabilities | [1] | 25,615 | 5,340 | ||
Carrying Value | Interest rate lock commitments | |||||
ASSETS | |||||
Derivative financial assets | [1] | 321 | 251 | ||
Carrying Value | Forward sale contracts | |||||
ASSETS | |||||
Derivative financial assets | 1 | 55 | [1] | ||
Fair Value Measurements | |||||
ASSETS | |||||
Cash and due from banks, including interest-bearing deposits | 197,823 | 155,489 | |||
Securities | 784,283 | 684,872 | |||
Loans held for sale | 5,256 | 2,469 | |||
Portfolio loans, net | 6,940,875 | 5,728,843 | |||
Bank owned life insurance | 80,473 | 73,900 | |||
FHLB and other restricted stock | 22,977 | 29,435 | |||
Securities held in a Rabbi Trust | 5,987 | 4,725 | |||
Mortgage servicing rights | 4,650 | 5,181 | |||
LIABILITIES | |||||
Deposits | 7,034,595 | 5,662,193 | |||
Securities sold under repurchase agreements | 19,888 | 18,383 | |||
Short-term borrowings | 281,319 | 470,000 | |||
Long-term borrowings | 51,339 | 70,578 | |||
Junior subordinated debt securities | 64,277 | 45,619 | |||
Fair Value Measurements | Interest rate swaps | |||||
ASSETS | |||||
Derivative financial assets | 25,647 | 5,504 | |||
LIABILITIES | |||||
Derivative financial liabilities | 25,615 | 5,340 | |||
Fair Value Measurements | Interest rate lock commitments | |||||
ASSETS | |||||
Derivative financial assets | 321 | 251 | |||
Fair Value Measurements | Forward sale contracts | |||||
ASSETS | |||||
Derivative financial assets | 1 | 55 | |||
Fair Value Measurements | Level 1 | |||||
ASSETS | |||||
Cash and due from banks, including interest-bearing deposits | 197,823 | 155,489 | |||
Securities | 5,078 | 0 | |||
Loans held for sale | 0 | 0 | |||
Portfolio loans, net | 0 | 0 | |||
Bank owned life insurance | 0 | 0 | |||
FHLB and other restricted stock | 0 | 0 | |||
Securities held in a Rabbi Trust | 5,987 | 4,725 | |||
Mortgage servicing rights | 0 | 0 | |||
LIABILITIES | |||||
Deposits | 5,441,143 | 4,261,884 | |||
Securities sold under repurchase agreements | 19,888 | 18,383 | |||
Short-term borrowings | 281,319 | 470,000 | |||
Long-term borrowings | 4,678 | 38,610 | |||
Junior subordinated debt securities | 64,277 | 45,619 | |||
Fair Value Measurements | Level 1 | Interest rate swaps | |||||
ASSETS | |||||
Derivative financial assets | 0 | 0 | |||
LIABILITIES | |||||
Derivative financial liabilities | 0 | 0 | |||
Fair Value Measurements | Level 1 | Interest rate lock commitments | |||||
ASSETS | |||||
Derivative financial assets | 0 | 0 | |||
Fair Value Measurements | Level 1 | Forward sale contracts | |||||
ASSETS | |||||
Derivative financial assets | 0 | 0 | |||
Fair Value Measurements | Level 2 | |||||
ASSETS | |||||
Cash and due from banks, including interest-bearing deposits | 0 | 0 | |||
Securities | 779,205 | 684,872 | |||
Loans held for sale | 0 | 0 | |||
Portfolio loans, net | 0 | 0 | |||
Bank owned life insurance | 80,473 | 73,900 | |||
FHLB and other restricted stock | 0 | 0 | |||
Securities held in a Rabbi Trust | 0 | 0 | |||
Mortgage servicing rights | 0 | 0 | |||
LIABILITIES | |||||
Deposits | 1,593,452 | 1,400,309 | |||
Securities sold under repurchase agreements | 0 | 0 | |||
Short-term borrowings | 0 | 0 | |||
Long-term borrowings | 46,661 | 31,968 | |||
Junior subordinated debt securities | 0 | 0 | |||
Fair Value Measurements | Level 2 | Interest rate swaps | |||||
ASSETS | |||||
Derivative financial assets | 25,647 | 5,504 | |||
LIABILITIES | |||||
Derivative financial liabilities | 25,615 | 5,340 | |||
Fair Value Measurements | Level 2 | Interest rate lock commitments | |||||
ASSETS | |||||
Derivative financial assets | 321 | 251 | |||
Fair Value Measurements | Level 2 | Forward sale contracts | |||||
ASSETS | |||||
Derivative financial assets | 1 | 55 | |||
Fair Value Measurements | Level 3 | |||||
ASSETS | |||||
Cash and due from banks, including interest-bearing deposits | 0 | 0 | |||
Securities | 0 | 0 | |||
Loans held for sale | 5,256 | 2,469 | |||
Portfolio loans, net | 6,940,875 | 5,728,843 | |||
Bank owned life insurance | 0 | 0 | |||
FHLB and other restricted stock | 22,977 | 29,435 | |||
Securities held in a Rabbi Trust | 0 | 0 | |||
Mortgage servicing rights | 4,650 | 5,181 | |||
LIABILITIES | |||||
Deposits | 0 | 0 | |||
Securities sold under repurchase agreements | 0 | 0 | |||
Short-term borrowings | 0 | 0 | |||
Long-term borrowings | 0 | ||||
Junior subordinated debt securities | 0 | 0 | |||
Fair Value Measurements | Level 3 | Interest rate swaps | |||||
ASSETS | |||||
Derivative financial assets | 0 | 0 | |||
LIABILITIES | |||||
Derivative financial liabilities | 0 | 0 | |||
Fair Value Measurements | Level 3 | Interest rate lock commitments | |||||
ASSETS | |||||
Derivative financial assets | 0 | 0 | |||
Fair Value Measurements | Level 3 | Forward sale contracts | |||||
ASSETS | |||||
Derivative financial assets | $ 0 | $ 0 | |||
[1] | As reported in the Consolidated Balance Sheets |
Restrictions on Cash and Due _2
Restrictions on Cash and Due from Bank Accounts - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | |||
Reserved cash maintained at Federal Reserve | $ 43.9 | $ 38.8 | $ 36.2 |
Dividend and Loan Restrictions
Dividend and Loan Restrictions (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Percentage of collateralized loans | 10.00% |
Securities - Composition of Sec
Securities - Composition of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | $ 779,133 | $ 680,056 |
Marketable equity securities | 5,150 | 4,816 |
Total Securities | 784,283 | 684,872 |
Debt Securities, Available-for-sale, Amortized Cost | 768,427 | 685,170 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 11,659 | 3,514 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | (953) | (8,628) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 10,040 | 9,736 |
Debt Securities, Available-for-sale, Amortized Cost | 9,969 | 9,958 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 71 | 0 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | 0 | (222) |
Obligations of U.S. government corporations and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 157,697 | 128,261 |
Debt Securities, Available-for-sale, Amortized Cost | 155,969 | 129,267 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 1,773 | 68 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | (45) | (1,074) |
Collateralized mortgage obligations of U.S. government corporations and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 189,348 | 148,659 |
Debt Securities, Available-for-sale, Amortized Cost | 186,879 | 149,849 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 2,773 | 795 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | (304) | (1,985) |
Residential mortgage-backed securities of U.S. government corporations and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 22,418 | 24,350 |
Debt Securities, Available-for-sale, Amortized Cost | 22,120 | 24,564 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 321 | 203 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | (23) | (417) |
Commercial mortgage-backed securities of U.S. government corporations and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 275,870 | 246,784 |
Debt Securities, Available-for-sale, Amortized Cost | 273,771 | 251,660 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 2,680 | 0 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | (581) | (4,876) |
Corporate Obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 7,627 | 0 |
Debt Securities, Available-for-sale, Amortized Cost | 7,603 | 0 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 24 | 0 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | 0 | 0 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale | 116,133 | 122,266 |
Debt Securities, Available-for-sale, Amortized Cost | 112,116 | 119,872 |
Debt Securities, Available-for-sale, Gross Unrealized Gains | 4,017 | 2,448 |
Debt Securities, Available-for-sale, Gross Unrealized Losses | $ 0 | $ (54) |
Securities - Gross and Net Real
Securities - Gross and Net Realized Gains and Losses on Sale of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||||||||||
Gross realized gains | $ 41 | $ 0 | $ 3,986 | |||||||||
Gross realized losses | (67) | 0 | (986) | |||||||||
Net Realized (Losses)/Gains | $ (26) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ (26) | $ 0 | $ 3,000 | |
[1] | The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. |
Securities - Fair Value and Age
Securities - Fair Value and Age of Gross Unrealized Losses by Investment Category (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | 20 | 21 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | $ 137,097 | $ 167,839 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | $ (701) | $ (1,757) | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | 7 | 44 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | $ 27,788 | $ 307,481 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | $ (252) | $ (6,871) | |
Temporarily Impaired Debt Securities, Number of Securities | security | 27 | 65 | |
Temporarily Impaired Debt Securities, Fair Value, Total | $ 164,885 | $ 475,320 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (953) | $ (8,628) | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | 0 | 0 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | $ 0 | $ 0 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | $ 0 | $ 0 | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | 0 | 1 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | $ 0 | $ 9,736 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | $ 0 | $ (222) | |
Temporarily Impaired Debt Securities, Number of Securities | security | 0 | 1 | |
Temporarily Impaired Debt Securities, Fair Value, Total | $ 0 | $ 9,736 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 0 | $ (222) | |
Obligations of U.S. government corporations and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | 3 | 7 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | $ 22,638 | $ 67,649 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | $ (45) | $ (613) | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | 0 | 6 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | $ 0 | $ 35,760 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | $ 0 | $ (461) | |
Temporarily Impaired Debt Securities, Number of Securities | security | 3 | 13 | |
Temporarily Impaired Debt Securities, Fair Value, Total | $ 22,638 | $ 103,409 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (45) | $ (1,074) | |
Collateralized mortgage obligations of U.S. government corporations and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | 6 | 2 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | $ 23,393 | $ 12,495 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | $ (73) | $ (44) | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | 6 | 14 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | $ 25,254 | $ 76,179 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | $ (231) | $ (1,941) | |
Temporarily Impaired Debt Securities, Number of Securities | security | 12 | 16 | |
Temporarily Impaired Debt Securities, Fair Value, Total | $ 48,647 | $ 88,674 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (304) | $ (1,985) | |
Residential mortgage-backed securities of U.S. government corporations and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | 1 | 2 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | $ 982 | $ 2,327 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | $ (2) | $ (45) | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | 1 | 3 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | $ 2,534 | $ 9,241 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | $ (21) | $ (372) | |
Temporarily Impaired Debt Securities, Number of Securities | security | 2 | 5 | |
Temporarily Impaired Debt Securities, Fair Value, Total | $ 3,516 | $ 11,568 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (23) | $ (417) | |
Commercial mortgage-backed securities of U.S. government corporations and agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | 9 | 8 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | $ 90,005 | $ 75,466 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | $ (581) | $ (1,032) | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | 0 | 19 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | $ 0 | $ 171,318 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | $ 0 | $ (3,844) | |
Temporarily Impaired Debt Securities, Number of Securities | security | 9 | 27 | |
Temporarily Impaired Debt Securities, Fair Value, Total | $ 90,005 | $ 246,784 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (581) | $ (4,876) | |
Corporate Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | [1] | 1 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | [1] | $ 79 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | [1] | $ 0 | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | [1] | 0 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | [1] | $ 0 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | [1] | $ 0 | |
Temporarily Impaired Debt Securities, Number of Securities | security | [1] | 1 | |
Temporarily Impaired Debt Securities, Fair Value, Total | [1] | $ 79 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | [1] | $ 0 | |
Obligations of states and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Temporarily Impaired Debt Securities, Less than 12 Months, Number of Securities | security | 0 | 2 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Fair Value | $ 0 | $ 9,902 | |
Temporarily Impaired Debt Securities, Less than 12 Months, Unrealized Losses | $ 0 | $ (23) | |
Temporarily Impaired Debt Securities, 12 Months or More, Number of Securities | security | 0 | 1 | |
Temporarily Impaired Debt Securities, 12 Months or More, Fair Value | $ 0 | $ 5,247 | |
Temporarily Impaired Debt Securities, 12 Months or More, Unrealized Losses | $ 0 | $ (31) | |
Temporarily Impaired Debt Securities, Number of Securities | security | 0 | 3 | |
Temporarily Impaired Debt Securities, Fair Value, Total | $ 0 | $ 15,149 | |
Temporarily Impaired Debt Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 0 | $ (54) | |
[1] | Unrealized loss on Corporate Obligations rounded to less than one thousand dollars. |
Securities - Additional Inform
Securities - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of debt securities in unrealized loss position | security | 27 | 65 |
Securities pledged for regulatory and legal requirements | $ | $ 286 | $ 236 |
Securities - Unrealized Gains (
Securities - Unrealized Gains (Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Total unrealized gains/(losses) on debt securities available-for-sale, Gross Unrealized Gains | $ 11,659 | $ 3,514 |
Total unrealized gains/(losses) on debt securities available-for-sale, Gross Unrealized Losses | (953) | (8,628) |
Total unrealized gains/(losses) on debt securities available-for-sale, Net Unrealized (Losses)/Gains | 10,706 | (5,114) |
Income tax (expense) benefit, Gross Unrealized Gains | (2,486) | (746) |
Income tax (expense) benefit, Gross Unrealized Losses | 203 | 1,832 |
Income tax (expense) benefit, Net Unrealized (Losses)/Gains | (2,283) | 1,086 |
Net unrealized gains/(losses), net of tax included in accumulated other comprehensive income/(loss), Gross Unrealized Gains | 9,173 | 2,768 |
Net unrealized gains/(losses), net of tax included in accumulated other comprehensive income/(loss), Gross Unrealized Losses | (750) | (6,796) |
Net unrealized gains/(losses), net of tax included in accumulated other comprehensive income/(loss), Net Unrealized Gains/(Losses) | $ 8,423 | $ (4,028) |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 103,008 | |
Due after one year through five years | 98,401 | |
Due after five years through ten years | 69,213 | |
Due after ten years | 15,035 | |
Debt securities available-for-sale, maturity, amortized cost | 285,657 | |
Debt Securities, Available-for-sale, Amortized Cost | 768,427 | $ 685,170 |
Fair Value | ||
Due in one year or less | 103,278 | |
Due after one year through five years | 100,527 | |
Due after five years through ten years | 71,933 | |
Due after ten years | 15,759 | |
Debt securities available-for-sale, maturity, fair value | 291,497 | |
Debt Securities, Available-for-sale, Fair Value | 779,133 | 680,056 |
Collateralized mortgage obligations of U.S. government corporations and agencies | ||
Amortized Cost | ||
Debt Securities Available-for-Sale With Maturities | 186,879 | |
Debt Securities, Available-for-sale, Amortized Cost | 186,879 | 149,849 |
Fair Value | ||
Debt Securities Available-for-Sale With Maturities | 189,348 | |
Debt Securities, Available-for-sale, Fair Value | 189,348 | 148,659 |
Residential mortgage-backed securities of U.S. government corporations and agencies | ||
Amortized Cost | ||
Debt Securities Available-for-Sale With Maturities | 22,120 | |
Debt Securities, Available-for-sale, Amortized Cost | 22,120 | 24,564 |
Fair Value | ||
Debt Securities Available-for-Sale With Maturities | 22,418 | |
Debt Securities, Available-for-sale, Fair Value | 22,418 | 24,350 |
Commercial mortgage-backed securities of U.S. government corporations and agencies | ||
Amortized Cost | ||
Debt Securities Available-for-Sale With Maturities | 273,771 | |
Debt Securities, Available-for-sale, Amortized Cost | 273,771 | 251,660 |
Fair Value | ||
Debt Securities Available-for-Sale With Maturities | 275,870 | |
Debt Securities, Available-for-sale, Fair Value | $ 275,870 | $ 246,784 |
Securities - Unrealized Gains_2
Securities - Unrealized Gains (Losses) on Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized Gains on Equity Securities Still Held at Beginning of Year | $ 1,335 | $ 1,001 | $ 1,329 | $ 3,670 |
Net market gains/(losses) | 334 | (328) | 1,646 | |
Less: Net gains for equity securities sold | 0 | 0 | 3,987 | |
Unrealized Gains on Equity Securities Still Held | $ 1,335 | $ 1,001 | $ 1,329 | $ 3,670 |
Loans and Loans Held for Sale -
Loans and Loans Held for Sale - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unearned income on loans and leases receivable | $ 4,600 | $ 5,300 | ||
Net unamortized discount related to purchase accounting fair value adjustments | 12,300 | 3,300 | ||
Loans receivable, net | 7,142,408 | 5,949,019 | ||
Restructured loans | [1] | $ 32,206 | $ 11,384 | |
Number of commitments to lend additional funds | loan | 24 | 6 | ||
Commitment to lend additional funds | $ 4,600 | $ 11,600 | ||
Number of TDRs returned back to accruing status | loan | 6 | 0 | ||
Financial receivable trouble debt restructuring reclassified to accruing trouble debt restructuring status | $ 500 | |||
Minimum period of loan payment defaults following restructure for TDRs to be in default | 90 days | |||
Number of TDRs defaulted that were restructured within the last 12 months prior to defaulting | loan | 0 | 4 | ||
Financial receivable defaulted trouble debt restructuring loans restructured within twelve months prior to defaulting | $ 4,400 | |||
Increase in nonperforming assets | $ 8,400 | |||
Nonperforming assets | $ 57,582 | $ 49,165 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage of commercial loans in total portfolio loans | 77.00% | 79.00% | ||
Loans recorded investment | $ 5,512,796 | $ 4,672,445 | ||
Restructured loans | 20,200 | |||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 3,416,518 | 2,921,832 | ||
Restructured loans | [1] | 25,159 | 269 | |
Commercial real estate | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans recorded investment | 3,416,518 | 2,921,832 | ||
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 1,720,833 | 1,493,416 | ||
Restructured loans | [1] | $ 5,661 | 9,890 | |
Number of nonperforming, impaired loans paid off during the period | loan | 1 | |||
Balance of nonperforming, impaired loans paid off during the period | $ 10,000 | |||
Commercial and industrial | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans recorded investment | 1,720,833 | 1,493,416 | ||
Commercial construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 375,445 | 257,197 | ||
Commercial construction | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans recorded investment | 375,445 | 257,197 | ||
Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 998,585 | 726,679 | ||
Restructured loans | [1] | 340 | 374 | |
Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 538,348 | 471,562 | ||
Restructured loans | [1] | 1,037 | 847 | |
Installment and other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 79,033 | 67,546 | ||
Restructured loans | [1],[2] | 11 | 4 | |
Consumer construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 8,390 | 8,416 | ||
CRE and Commercial Construction | Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans recorded investment | $ 3,800,000 | $ 3,200,000 | ||
Combined percentage of commercial real estate and commercial construction in total commercial loans | 69.00% | 68.00% | ||
Combined percentage of commercial real estate and commercial construction in total portfolio loans | 53.00% | 53.00% | ||
Concentration risk percentage | 0.00% | 0.00% | ||
Maximum concentration of commercial real estate and commercial construction portfolio in loans | 11.00% | 14.00% | ||
Out-of-state exposure of combined portfolio | 5.40% | 5.40% | ||
Percentage of total loans out-of-state excluding contiguous states | 2.90% | 2.90% | ||
DNB | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | $ 899,300 | $ 909,000 | ||
DNB | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 455,600 | |||
DNB | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 85,400 | |||
DNB | Commercial construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 77,100 | |||
DNB | Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 219,700 | |||
DNB | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 56,400 | |||
DNB | Installment and other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 4,100 | |||
DNB | Consumer construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | 1,000 | |||
Performing TDRs | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructured loans | 36,960 | 16,786 | ||
Performing TDRs | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructured loans | $ 20,200 | 22,233 | 2,054 | |
Performing TDRs | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructured loans | 6,909 | 7,026 | ||
Performing TDRs | Commercial construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructured loans | 1,425 | 1,912 | ||
Performing TDRs | Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructured loans | 2,013 | 2,214 | ||
Performing TDRs | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructured loans | 4,371 | 3,568 | ||
Performing TDRs | Installment and other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Restructured loans | $ 9 | $ 12 | ||
[1] | Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. | |||
[2] | Consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. |
Loans and Loans Held for Sale_2
Loans and Loans Held for Sale - Composition of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Composition of Loans | ||
Portfolio loans, net of unearned income | $ 7,137,152 | $ 5,946,648 |
Loans held for sale | 5,256 | 2,371 |
Total Loans | 7,142,408 | 5,949,019 |
Commercial real estate | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 3,416,518 | 2,921,832 |
Total Loans | 3,416,518 | 2,921,832 |
Commercial and industrial | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 1,720,833 | 1,493,416 |
Total Loans | 1,720,833 | 1,493,416 |
Commercial construction | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 375,445 | 257,197 |
Total Loans | 375,445 | 257,197 |
Residential mortgage | ||
Composition of Loans | ||
Total Loans | 998,585 | 726,679 |
Home equity | ||
Composition of Loans | ||
Total Loans | 538,348 | 471,562 |
Installment and other consumer | ||
Composition of Loans | ||
Total Loans | 79,033 | 67,546 |
Consumer construction | ||
Composition of Loans | ||
Total Loans | 8,390 | 8,416 |
Commercial | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 5,512,796 | 4,672,445 |
Commercial | Commercial real estate | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 3,416,518 | 2,921,832 |
Commercial | Commercial and industrial | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 1,720,833 | 1,493,416 |
Commercial | Commercial construction | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 375,445 | 257,197 |
Consumer | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 1,624,356 | 1,274,203 |
Consumer | Residential mortgage | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 998,585 | 726,679 |
Consumer | Home equity | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 538,348 | 471,562 |
Consumer | Installment and other consumer | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | 79,033 | 67,546 |
Consumer | Consumer construction | ||
Composition of Loans | ||
Portfolio loans, net of unearned income | $ 8,390 | $ 8,416 |
Loans and Loans Held for Sale_3
Loans and Loans Held for Sale - Restructured Loans for Periods Presented (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | [1] | $ 32,206 | $ 11,384 | |
Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | [1] | 25,159 | 269 | |
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | [1] | 5,661 | 9,890 | |
Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | [1] | 340 | 374 | |
Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | [1] | 1,037 | 847 | |
Installment and other consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | [1],[2] | 11 | 4 | |
Performing TDRs | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 36,960 | 16,786 | ||
Performing TDRs | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | $ 20,200 | 22,233 | 2,054 | |
Performing TDRs | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 6,909 | 7,026 | ||
Performing TDRs | Commercial construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 1,425 | 1,912 | ||
Performing TDRs | Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 2,013 | 2,214 | ||
Performing TDRs | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 4,371 | 3,568 | ||
Performing TDRs | Installment and other consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 9 | 12 | ||
Nonperforming TDRs | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 8,912 | 11,088 | ||
Nonperforming TDRs | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 6,713 | 1,139 | ||
Nonperforming TDRs | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 695 | 6,646 | ||
Nonperforming TDRs | Commercial construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 0 | 406 | ||
Nonperforming TDRs | Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 822 | 1,543 | ||
Nonperforming TDRs | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 678 | 1,349 | ||
Nonperforming TDRs | Installment and other consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 4 | 5 | ||
Total TDRs | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 45,872 | 27,874 | ||
Total TDRs | Commercial real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 28,946 | 3,193 | ||
Total TDRs | Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 7,604 | 13,672 | ||
Total TDRs | Commercial construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 1,425 | 2,318 | ||
Total TDRs | Residential mortgage | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 2,835 | 3,757 | ||
Total TDRs | Home equity | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | 5,049 | 4,917 | ||
Total TDRs | Installment and other consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Restructured loans | $ 13 | $ 17 | ||
[1] | Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. | |||
[2] | Consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. |
Loans and Loans Held for Sale_4
Loans and Loans Held for Sale - Restructured Loans by Type of Concession (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 53 | 46 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 32,446 | $ 12,672 |
Restructured loans | [1] | 32,206 | 11,384 |
Total Difference in Recorded Investment | $ (240) | $ (1,288) | |
Maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 3 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 1,024 |
Restructured loans | [1] | 0 | 345 |
Total Difference in Recorded Investment | $ 0 | $ (679) | |
Maturity date extension and interest rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | 2 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 4,902 | $ 47 |
Restructured loans | [1] | 4,280 | 46 |
Total Difference in Recorded Investment | $ (622) | $ (1) | |
Principal deferral | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 4 | 5 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 24,767 | $ 4,905 |
Restructured loans | [1] | 24,309 | 4,473 |
Total Difference in Recorded Investment | $ (458) | $ (432) | |
Principal deferral and maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 7 | 6 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 950 | $ 5,355 |
Restructured loans | [1] | 933 | 5,341 |
Total Difference in Recorded Investment | $ (17) | $ (14) | |
Interest rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | 1 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 190 | $ 120 |
Restructured loans | [1] | 188 | 120 |
Total Difference in Recorded Investment | $ (2) | $ 0 | |
Below market interest rate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 569 | $ 0 |
Restructured loans | [1] | 1,519 | 0 |
Total Difference in Recorded Investment | $ 950 | $ 0 | |
Consumer bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | [2] | 36 | 29 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 1,068 | $ 1,221 |
Restructured loans | [1],[2] | 977 | 1,059 |
Total Difference in Recorded Investment | [2] | $ (91) | $ (162) |
Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 7 | 2 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 24,672 | $ 346 |
Restructured loans | [1] | 25,159 | 269 |
Total Difference in Recorded Investment | $ 486 | $ (77) | |
Commercial real estate | Maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 1 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 256 |
Restructured loans | [1] | 0 | 179 |
Total Difference in Recorded Investment | $ 0 | $ (77) | |
Commercial real estate | Maturity date extension and interest rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 150 | $ 0 |
Restructured loans | [1] | 145 | 0 |
Total Difference in Recorded Investment | $ (6) | $ 0 | |
Commercial real estate | Principal deferral | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 3 | 1 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 23,517 | $ 90 |
Restructured loans | [1] | 23,059 | 90 |
Total Difference in Recorded Investment | $ (458) | $ 0 | |
Commercial real estate | Principal deferral and maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 436 | $ 0 |
Restructured loans | [1] | 436 | 0 |
Total Difference in Recorded Investment | $ 0 | $ 0 | |
Commercial real estate | Below market interest rate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 569 | $ 0 |
Restructured loans | [1] | 1,519 | 0 |
Total Difference in Recorded Investment | $ 950 | $ 0 | |
Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 3 | 12 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 6,294 | $ 10,938 |
Restructured loans | [1] | 5,661 | 9,890 |
Total Difference in Recorded Investment | $ (633) | $ (1,048) | |
Commercial and industrial | Maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 2 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 768 |
Restructured loans | [1] | 0 | 166 |
Total Difference in Recorded Investment | $ 0 | $ (602) | |
Commercial and industrial | Maturity date extension and interest rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 4,751 | $ 0 |
Restructured loans | [1] | 4,136 | 0 |
Total Difference in Recorded Investment | $ (616) | $ 0 | |
Commercial and industrial | Principal deferral | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | 4 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1,250 | $ 4,815 |
Restructured loans | [1] | 1,250 | 4,383 |
Total Difference in Recorded Investment | $ 0 | $ (432) | |
Commercial and industrial | Principal deferral and maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | 6 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 292 | $ 5,355 |
Restructured loans | [1] | 275 | 5,341 |
Total Difference in Recorded Investment | $ (17) | $ (14) | |
Residential mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 6 | 5 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 348 | $ 387 |
Restructured loans | [1] | 340 | 374 |
Total Difference in Recorded Investment | $ (9) | $ (13) | |
Residential mortgage | Principal deferral and maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 3 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 183 | $ 0 |
Restructured loans | [1] | 183 | 0 |
Total Difference in Recorded Investment | $ 0 | $ 0 | |
Residential mortgage | Consumer bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | [2] | 3 | 5 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 165 | $ 387 |
Restructured loans | [1],[2] | 157 | 374 |
Total Difference in Recorded Investment | [2] | $ (9) | $ (13) |
Home equity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 33 | 25 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 1,116 | $ 978 |
Restructured loans | [1] | 1,037 | 847 |
Total Difference in Recorded Investment | $ (79) | $ (131) | |
Home equity | Maturity date extension and interest rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 2 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 0 | $ 47 |
Restructured loans | [1] | 0 | 46 |
Total Difference in Recorded Investment | $ 0 | $ (1) | |
Home equity | Principal deferral and maturity date extension | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | 0 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 39 | $ 0 |
Restructured loans | [1] | 39 | 0 |
Total Difference in Recorded Investment | $ 0 | $ 0 | |
Home equity | Interest rate reduction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | 1 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 190 | $ 120 |
Restructured loans | [1] | 188 | 120 |
Total Difference in Recorded Investment | $ (2) | $ 0 | |
Home equity | Consumer bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | [2] | 29 | 22 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 886 | $ 811 |
Restructured loans | [1],[2] | 810 | 681 |
Total Difference in Recorded Investment | [2] | $ (77) | $ (130) |
Installment and other consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | [2] | 4 | 2 |
Pre-Modification Outstanding Recorded Investment | [1],[2] | $ 16 | $ 23 |
Restructured loans | [1],[2] | 11 | 4 |
Total Difference in Recorded Investment | [2] | $ (5) | $ (19) |
[1] | Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. | ||
[2] | Consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed. |
Loans and Loans Held for Sale_5
Loans and Loans Held for Sale - Summary of Nonperforming Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Nonperforming Assets | ||
Nonaccrual loans | $ 45,145 | $ 34,985 |
Nonaccrual TDRs | 8,912 | 11,088 |
Total nonaccrual loans | 54,057 | 46,073 |
OREO | 3,525 | 3,092 |
Total Nonperforming Assets | $ 57,582 | $ 49,165 |
Loans and Loans Held for Sale_6
Loans and Loans Held for Sale - Summary of Aggregate Amount of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans Receivable from Officers and Directors [Roll Forward] | ||
Balance at beginning of year | $ 8,682 | $ 10,070 |
New loans | 2,442 | 2,841 |
Repayments or no longer considered a related party | (2,899) | (4,229) |
Balance at end of year | $ 8,225 | $ 8,682 |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loans Segregated by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Past Due [Line Items] | |||
Current | $ 7,060,617 | $ 5,890,141 | |
Past Due | 81,791 | 58,878 | |
Non- performing | 54,057 | 46,073 | |
Total Loans | 7,142,408 | 5,949,019 | |
Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 3,376,156 | 2,903,997 | |
Past Due | 40,362 | 17,835 | |
Non- performing | 29,140 | 12,052 | |
Total Loans | 3,416,518 | 2,921,832 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 1,700,522 | 1,482,473 | |
Past Due | 20,311 | 10,943 | |
Non- performing | 13,982 | 8,960 | |
Total Loans | 1,720,833 | 1,493,416 | |
Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 372,589 | 243,004 | |
Past Due | 2,856 | 14,193 | |
Non- performing | 737 | 14,193 | |
Total Loans | 375,445 | 257,197 | |
Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 986,148 | 717,447 | |
Past Due | 12,437 | 9,232 | |
Non- performing | 7,519 | 7,128 | |
Total Loans | 998,585 | 726,679 | |
Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 533,367 | 465,152 | |
Past Due | 4,981 | 6,410 | |
Non- performing | 2,639 | 3,698 | |
Total Loans | 538,348 | 471,562 | |
Installment and other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 78,189 | 67,281 | |
Past Due | 844 | 265 | |
Non- performing | 40 | 42 | |
Total Loans | 79,033 | 67,546 | |
Consumer construction | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 8,390 | 8,416 | |
Past Due | 0 | 0 | |
Non- performing | 0 | 0 | |
Total Loans | 8,390 | 8,416 | |
Loans held for sale | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 5,256 | 2,371 | |
Past Due | 0 | 0 | |
Non- performing | 0 | 0 | |
Total Loans | 5,256 | 2,371 | |
30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 17,992 | 8,473 | |
30-59 Days Past Due | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 9,595 | 3,638 | |
30-59 Days Past Due | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,940 | 1,000 | |
30-59 Days Past Due | Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 956 | 0 | |
30-59 Days Past Due | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,016 | 1,584 | |
30-59 Days Past Due | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,059 | 2,103 | |
30-59 Days Past Due | Installment and other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 426 | 148 | |
30-59 Days Past Due | Consumer construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
30-59 Days Past Due | Loans held for sale | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 5,985 | 4,332 | |
60-89 Days Past Due | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 716 | 2,145 | |
60-89 Days Past Due | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,946 | 983 | |
60-89 Days Past Due | Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,163 | 0 | |
60-89 Days Past Due | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,727 | 520 | |
60-89 Days Past Due | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 141 | 609 | |
60-89 Days Past Due | Installment and other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 292 | 75 | |
60-89 Days Past Due | Consumer construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
60-89 Days Past Due | Loans held for sale | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
90 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 3,757 | [1] | 0 |
90 Days Past Due | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 911 | [1] | 0 |
90 Days Past Due | Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,443 | [1] | 0 |
90 Days Past Due | Commercial construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | [1] | 0 |
90 Days Past Due | Residential mortgage | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,175 | [1] | 0 |
90 Days Past Due | Home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 142 | [1] | 0 |
90 Days Past Due | Installment and other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 86 | [1] | 0 |
90 Days Past Due | Consumer construction | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | [1] | 0 |
90 Days Past Due | Loans held for sale | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | $ 0 | [1] | $ 0 |
[1] | Represents acquired loans that were recorded at fair value at the acquisition date and remain performing. |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment in Commercial Loan Classes by Internally Assigned Risk Ratings (Details) - Commercial - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 5,512,796 | $ 4,672,445 |
% of Total | 100.00% | 100.00% |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 5,254,076 | $ 4,402,167 |
% of Total | 95.30% | 94.30% |
Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 103,878 | $ 87,344 |
% of Total | 1.90% | 1.80% |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 152,651 | $ 181,192 |
% of Total | 2.80% | 3.90% |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 2,191 | $ 1,742 |
% of Total | 0.00% | 0.00% |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 3,416,518 | $ 2,921,832 |
% of Total | 100.00% | 100.00% |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 3,270,437 | $ 2,774,997 |
% of Total | 95.70% | 95.00% |
Commercial real estate | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 57,285 | $ 54,627 |
% of Total | 1.70% | 1.90% |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 86,772 | $ 90,913 |
% of Total | 2.50% | 3.10% |
Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 2,023 | $ 1,295 |
% of Total | 0.00% | 0.00% |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 1,720,833 | $ 1,493,416 |
% of Total | 100.00% | 100.00% |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 1,636,314 | $ 1,394,067 |
% of Total | 95.10% | 93.40% |
Commercial and industrial | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 36,484 | $ 25,368 |
% of Total | 2.10% | 1.70% |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 47,980 | $ 73,621 |
% of Total | 2.80% | 4.90% |
Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 55 | $ 360 |
% of Total | 0.00% | 0.00% |
Commercial construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 375,445 | $ 257,197 |
% of Total | 100.00% | 100.00% |
Commercial construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 347,324 | $ 233,103 |
% of Total | 92.50% | 90.70% |
Commercial construction | Special mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 10,109 | $ 7,349 |
% of Total | 2.70% | 2.80% |
Commercial construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 17,899 | $ 16,658 |
% of Total | 4.80% | 6.50% |
Commercial construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 113 | $ 87 |
% of Total | 0.00% | 0.00% |
Allowance for Loan Losses - R_2
Allowance for Loan Losses - Recorded Investment in Consumer Loan Classes by Performing and Nonperforming Status (Details) - Consumer - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 1,624,356 | $ 1,274,203 |
% of Total | 100.00% | 100.00% |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 1,614,158 | $ 1,263,335 |
% of Total | 99.40% | 99.10% |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 10,198 | $ 10,868 |
% of Total | 0.60% | 0.90% |
Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 998,585 | $ 726,679 |
% of Total | 100.00% | 100.00% |
Residential mortgage | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 991,066 | $ 719,551 |
% of Total | 99.20% | 99.00% |
Residential mortgage | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 7,519 | $ 7,128 |
% of Total | 0.80% | 1.00% |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 538,348 | $ 471,562 |
% of Total | 100.00% | 100.00% |
Home equity | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 535,709 | $ 467,864 |
% of Total | 99.50% | 99.20% |
Home equity | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 2,639 | $ 3,698 |
% of Total | 0.50% | 0.80% |
Installment and other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 79,033 | $ 67,546 |
% of Total | 100.00% | 100.00% |
Installment and other consumer | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 78,993 | $ 67,504 |
% of Total | 99.90% | 99.90% |
Installment and other consumer | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 40 | $ 42 |
% of Total | 0.10% | 0.10% |
Consumer construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 8,390 | $ 8,416 |
% of Total | 100.00% | 100.00% |
Consumer construction | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 8,390 | $ 8,416 |
% of Total | 100.00% | 100.00% |
Consumer construction | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans recorded investment | $ 0 | $ 0 |
% of Total | 0.00% | 0.00% |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Minimum period interest and principal of loans past due considered nonperforming (in days) | 90 days | ||
Threshold for evaluation for impairment of substandard and nonaccrual commercial loans | $ 500 | ||
Increase in impaired loans | 25,800 | ||
Impaired financing receivables | 75,337 | $ 49,506 | |
Loans receivable, net | 7,142,408 | 5,949,019 | |
Modified loan | [1] | 32,206 | 11,384 |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans recorded investment | 5,512,796 | 4,672,445 | |
Modified loan | 20,200 | ||
Commercial | Substandard | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Increase (decrease) in loans | (28,500) | ||
Loans recorded investment | 152,651 | 181,192 | |
Commercial | Special mention | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Increase (decrease) in loans | 16,500 | ||
Loans recorded investment | 103,878 | 87,344 | |
DNB | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans receivable, net | $ 899,300 | $ 909,000 | |
[1] | Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. |
Allowance for Loan Losses - Inv
Allowance for Loan Losses - Investments in Loans Considered to be Impaired and Related Information on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
With a related allowance recorded, Recorded Investment | $ 23,510 | $ 9,132 |
With a related allowance recorded, Unpaid Principal Balance | 24,821 | 9,141 |
Without a related allowance recorded, Recorded Investment | 51,827 | 40,374 |
Without a related allowance, Unpaid Principal Balance | 61,950 | 47,349 |
Impaired financing receivables | 75,337 | 49,506 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 86,771 | 56,490 |
Impaired Financing Receivable, Related Allowance, Total | 2,200 | 1,763 |
With a related allowance recorded, Average Recorded Investment | 24,655 | 8,967 |
With a related allowance recorded, Interest Income Recognized | 577 | 278 |
Without a related allowance recorded, Average Recorded Investment | 51,332 | 36,001 |
Without a related allowance recorded, Interest Income Recognized | 1,839 | 1,129 |
Impaired Financing Receivable, Average Recorded Investment, Total | 75,987 | 44,968 |
Impaired Financing Receivable, Interest Income Recognized, Total | 2,416 | 1,407 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
With a related allowance recorded, Recorded Investment | 13,011 | 7,733 |
With a related allowance recorded, Unpaid Principal Balance | 14,322 | 7,733 |
Without a related allowance recorded, Recorded Investment | 34,909 | 3,636 |
Without a related allowance, Unpaid Principal Balance | 40,201 | 4,046 |
Impaired financing receivables | 47,920 | 11,369 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 54,523 | 11,779 |
Impaired Financing Receivable, Related Allowance, Total | 2,023 | 1,295 |
With a related allowance recorded, Average Recorded Investment | 14,018 | 7,780 |
With a related allowance recorded, Interest Income Recognized | 0 | 238 |
Without a related allowance recorded, Average Recorded Investment | 35,739 | 3,911 |
Without a related allowance recorded, Interest Income Recognized | 943 | 172 |
Impaired Financing Receivable, Average Recorded Investment, Total | 49,757 | 11,691 |
Impaired Financing Receivable, Interest Income Recognized, Total | 943 | 410 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
With a related allowance recorded, Recorded Investment | 10,001 | 884 |
With a related allowance recorded, Unpaid Principal Balance | 10,001 | 893 |
Without a related allowance recorded, Recorded Investment | 7,605 | 12,788 |
Without a related allowance, Unpaid Principal Balance | 10,358 | 14,452 |
Impaired financing receivables | 17,606 | 13,672 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 20,359 | 15,345 |
Impaired Financing Receivable, Related Allowance, Total | 55 | 360 |
With a related allowance recorded, Average Recorded Investment | 10,135 | 591 |
With a related allowance recorded, Interest Income Recognized | 576 | 38 |
Without a related allowance recorded, Average Recorded Investment | 5,565 | 4,722 |
Without a related allowance recorded, Interest Income Recognized | 368 | 257 |
Impaired Financing Receivable, Average Recorded Investment, Total | 15,700 | 5,313 |
Impaired Financing Receivable, Interest Income Recognized, Total | 944 | 295 |
Commercial construction | ||
Financing Receivable, Impaired [Line Items] | ||
With a related allowance recorded, Recorded Investment | 489 | 489 |
With a related allowance recorded, Unpaid Principal Balance | 489 | 489 |
Without a related allowance recorded, Recorded Investment | 1,425 | 15,286 |
Without a related allowance, Unpaid Principal Balance | 2,935 | 19,198 |
Impaired financing receivables | 1,914 | 15,775 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 3,424 | 19,687 |
Impaired Financing Receivable, Related Allowance, Total | 113 | 87 |
With a related allowance recorded, Average Recorded Investment | 489 | 561 |
With a related allowance recorded, Interest Income Recognized | 0 | 0 |
Without a related allowance recorded, Average Recorded Investment | 1,831 | 17,643 |
Without a related allowance recorded, Interest Income Recognized | 131 | 217 |
Impaired Financing Receivable, Average Recorded Investment, Total | 2,320 | 18,204 |
Impaired Financing Receivable, Interest Income Recognized, Total | 131 | 217 |
Consumer real estate | ||
Financing Receivable, Impaired [Line Items] | ||
With a related allowance recorded, Recorded Investment | 0 | 15 |
With a related allowance recorded, Unpaid Principal Balance | 0 | 14 |
Without a related allowance recorded, Recorded Investment | 7,884 | 8,659 |
Without a related allowance, Unpaid Principal Balance | 8,445 | 9,635 |
Impaired financing receivables | 7,884 | 8,674 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 8,445 | 9,649 |
Impaired Financing Receivable, Related Allowance, Total | 0 | 10 |
With a related allowance recorded, Average Recorded Investment | 0 | 16 |
With a related allowance recorded, Interest Income Recognized | 0 | 1 |
Without a related allowance recorded, Average Recorded Investment | 8,190 | 9,701 |
Without a related allowance recorded, Interest Income Recognized | 397 | 483 |
Impaired Financing Receivable, Average Recorded Investment, Total | 8,190 | 9,717 |
Impaired Financing Receivable, Interest Income Recognized, Total | 397 | 484 |
Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
With a related allowance recorded, Recorded Investment | 9 | 11 |
With a related allowance recorded, Unpaid Principal Balance | 9 | 12 |
Without a related allowance recorded, Recorded Investment | 4 | 5 |
Without a related allowance, Unpaid Principal Balance | 11 | 18 |
Impaired financing receivables | 13 | 16 |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 20 | 30 |
Impaired Financing Receivable, Related Allowance, Total | 9 | 11 |
With a related allowance recorded, Average Recorded Investment | 13 | 19 |
With a related allowance recorded, Interest Income Recognized | 1 | 1 |
Without a related allowance recorded, Average Recorded Investment | 7 | 24 |
Without a related allowance recorded, Interest Income Recognized | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment, Total | 20 | 43 |
Impaired Financing Receivable, Interest Income Recognized, Total | $ 1 | $ 1 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||||||
Balance at beginning of year | $ 60,996 | $ 56,390 | $ 60,996 | $ 56,390 | ||||||||
Charge-offs | (16,189) | (14,589) | ||||||||||
Recoveries | 2,544 | 4,200 | ||||||||||
Net (Charge-offs) | (13,645) | (10,389) | ||||||||||
Provision for loan losses | $ 2,105 | [1] | $ 4,913 | $ 2,205 | 5,649 | $ 2,716 | $ 462 | $ 9,345 | 2,472 | 14,873 | 14,995 | $ 13,883 |
Balance at End of Year | 62,224 | 60,996 | 62,224 | 60,996 | 56,390 | |||||||
Commercial real estate | ||||||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||||||
Balance at beginning of year | 33,707 | 27,235 | 33,707 | 27,235 | ||||||||
Charge-offs | (3,664) | (372) | ||||||||||
Recoveries | 137 | 309 | ||||||||||
Net (Charge-offs) | (3,527) | (63) | ||||||||||
Provision for loan losses | 397 | 6,535 | ||||||||||
Balance at End of Year | 30,577 | 33,707 | 30,577 | 33,707 | 27,235 | |||||||
Commercial and industrial | ||||||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||||||
Balance at beginning of year | 11,596 | 8,966 | 11,596 | 8,966 | ||||||||
Charge-offs | (8,928) | (8,574) | ||||||||||
Recoveries | 1,388 | 1,723 | ||||||||||
Net (Charge-offs) | (7,540) | (6,851) | ||||||||||
Provision for loan losses | 11,625 | 9,481 | ||||||||||
Balance at End of Year | 15,681 | 11,596 | 15,681 | 11,596 | 8,966 | |||||||
Commercial construction | ||||||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||||||
Balance at beginning of year | 7,983 | 13,167 | 7,983 | 13,167 | ||||||||
Charge-offs | (406) | (2,630) | ||||||||||
Recoveries | 5 | 1,135 | ||||||||||
Net (Charge-offs) | (401) | (1,495) | ||||||||||
Provision for loan losses | 318 | (3,689) | ||||||||||
Balance at End of Year | 7,900 | 7,983 | 7,900 | 7,983 | 13,167 | |||||||
Consumer real estate | ||||||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||||||
Balance at beginning of year | 6,187 | 5,479 | 6,187 | 5,479 | ||||||||
Charge-offs | (1,353) | (1,319) | ||||||||||
Recoveries | 637 | 541 | ||||||||||
Net (Charge-offs) | (716) | (778) | ||||||||||
Provision for loan losses | 866 | 1,486 | ||||||||||
Balance at End of Year | 6,337 | 6,187 | 6,337 | 6,187 | 5,479 | |||||||
Other consumer | ||||||||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||||||
Balance at beginning of year | $ 1,523 | $ 1,543 | 1,523 | 1,543 | ||||||||
Charge-offs | (1,838) | (1,694) | ||||||||||
Recoveries | 377 | 492 | ||||||||||
Net (Charge-offs) | (1,461) | (1,202) | ||||||||||
Provision for loan losses | 1,667 | 1,182 | ||||||||||
Balance at End of Year | $ 1,729 | $ 1,523 | $ 1,729 | $ 1,523 | $ 1,543 | |||||||
[1] | The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Summary of Allowance for Loan Losses and Recorded Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 2,200 | $ 1,763 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 60,024 | 59,233 | |
Total Allowance for Loan Losses | 62,224 | 60,996 | $ 56,390 |
Portfolio Loans, Individually Evaluated for Impairment | 75,337 | 49,506 | |
Portfolio Loans, Collectively Evaluated for Impairment | 7,061,815 | 5,897,142 | |
Total Portfolio Loans | 7,137,152 | 5,946,648 | |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 2,023 | 1,295 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 28,554 | 32,412 | |
Total Allowance for Loan Losses | 30,577 | 33,707 | 27,235 |
Portfolio Loans, Individually Evaluated for Impairment | 47,920 | 11,369 | |
Portfolio Loans, Collectively Evaluated for Impairment | 3,368,598 | 2,910,463 | |
Total Portfolio Loans | 3,416,518 | 2,921,832 | |
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 55 | 360 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 15,626 | 11,236 | |
Total Allowance for Loan Losses | 15,681 | 11,596 | 8,966 |
Portfolio Loans, Individually Evaluated for Impairment | 17,606 | 13,672 | |
Portfolio Loans, Collectively Evaluated for Impairment | 1,703,227 | 1,479,744 | |
Total Portfolio Loans | 1,720,833 | 1,493,416 | |
Commercial construction | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 113 | 87 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 7,787 | 7,896 | |
Total Allowance for Loan Losses | 7,900 | 7,983 | 13,167 |
Portfolio Loans, Individually Evaluated for Impairment | 1,914 | 15,775 | |
Portfolio Loans, Collectively Evaluated for Impairment | 373,531 | 241,422 | |
Total Portfolio Loans | 375,445 | 257,197 | |
Consumer real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 0 | 10 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 6,337 | 6,177 | |
Total Allowance for Loan Losses | 6,337 | 6,187 | 5,479 |
Portfolio Loans, Individually Evaluated for Impairment | 7,884 | 8,674 | |
Portfolio Loans, Collectively Evaluated for Impairment | 1,537,439 | 1,197,983 | |
Total Portfolio Loans | 1,545,323 | 1,206,657 | |
Other consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 9 | 11 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,720 | 1,512 | |
Total Allowance for Loan Losses | 1,729 | 1,523 | $ 1,543 |
Portfolio Loans, Individually Evaluated for Impairment | 13 | 16 | |
Portfolio Loans, Collectively Evaluated for Impairment | 79,020 | 67,530 | |
Total Portfolio Loans | $ 79,033 | $ 67,546 |
Right-Of-Use Assets and Lease_3
Right-Of-Use Assets and Lease Liabilities - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)leasedirector | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of lease contracts | lease | 51 | ||
Number of operating lease agreements | lease | 48 | ||
Number of financing leases | lease | 3 | ||
Operating lease expense | $ 4,221 | $ 3,850 | $ 3,980 |
Related party, lease with S&T Director | |||
Lessee, Lease, Description [Line Items] | |||
Number of directors | director | 1 | ||
Operating lease expense | $ 200 | ||
Operating lease expense | $ 200 | $ 200 | |
DNB | |||
Lessee, Lease, Description [Line Items] | |||
ROU asset acquired from DNB merger | $ 10,900 |
Right-Of-Use Assets and Lease_4
Right-Of-Use Assets and Lease Liabilities - Operating Leases and Finance Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Leases [Abstract] | ||||
Operating lease expense | $ 4,221 | $ 3,850 | $ 3,980 | |
Amortization of ROU assets - finance leases | 101 | 44 | 43 | |
Interest on lease liabilities - finance leases | [1] | 74 | 11 | 20 |
Total Lease Expense | 4,396 | $ 3,905 | $ 4,043 | |
Operating Lease, Assets And Liabilities, Lessee [Abstract] | ||||
ROU assets | 47,686 | |||
Operating cash flows | 5,028 | |||
Finance Leases | ||||
ROU assets | 1,513 | |||
Operating cash flows | 47 | |||
Financing cash flows | $ 57 | |||
Weighted Average Lease Term - Years | ||||
Operating leases | 19 years 2 months 4 days | |||
Finance leases | 12 years 1 month 28 days | |||
Weighted Average Discount Rate | ||||
Operating leases | 5.94% | |||
Finance leases | 5.73% | |||
[1] | Included in borrowings interest expense in our Consolidated Statements of Net Income. All other lease costs in this table are included in net occupancy expense. |
Right-Of-Use Assets and Lease_5
Right-Of-Use Assets and Lease Liabilities - Maturity Analysis of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 267 |
2021 | 269 |
2022 | 225 |
2023 | 129 |
2024 | 130 |
Thereafter | 1,277 |
Total | 2,297 |
Less: Present value discount | (719) |
Lease Liabilities | 1,578 |
Operating | |
2020 | 4,618 |
2021 | 4,586 |
2022 | 4,647 |
2023 | 4,716 |
2024 | 4,760 |
Thereafter | 69,641 |
Total | 92,968 |
Less: Present value discount | (40,461) |
Lease Liabilities | 52,507 |
Total | |
2020 | 4,885 |
2021 | 4,855 |
2022 | 4,872 |
2023 | 4,845 |
2024 | 4,890 |
Thereafter | 70,918 |
Total | 95,265 |
Less: Present value discount | (41,180) |
Lease Liabilities | $ 54,085 |
Premises and Equipment - Summar
Premises and Equipment - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 122,788 | $ 102,718 |
Accumulated depreciation | (65,848) | (60,988) |
Total | 56,940 | 41,730 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 9,018 | 6,266 |
Premises | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 60,767 | 52,423 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 41,713 | 36,911 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 11,290 | $ 7,118 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)right_of_use_asset | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Financing leases, ROU assets | $ 1,513 | ||
Depreciation expense | $ 5,400 | $ 5,000 | $ 5,100 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Number of right of use assets | right_of_use_asset | 1 | ||
Financing leases, ROU assets | $ 400 | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Number of right of use assets | right_of_use_asset | 2 | ||
Financing leases, ROU assets | $ 1,100 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Roll Forward of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Goodwill [Roll Forward] | |||
Balance at beginning of year | $ 287,446 | $ 291,670 | |
Additions | [1] | 84,175 | 0 |
Other adjustments | 0 | (4,224) | |
Balance at End of Year | $ 371,621 | $ 287,446 | |
[1] | Management is continuing to evaluate the purchase accounting fair value adjustments for the DNB merger. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2019 | ||
Goodwill [Line Items] | |||||
Goodwill acquired | [1] | $ 84,175 | $ 0 | ||
Goodwill, written off related to sale of business unit | 0 | 4,224 | |||
Core deposits and other intangible assets | 10,900 | ||||
Finite-lived intangible assets acquired | [2] | 9,154 | 80 | ||
Amortization expense on finite-lived intangible assets | 800 | $ 900 | $ 1,200 | ||
DNB | |||||
Goodwill [Line Items] | |||||
Goodwill acquired | 84,200 | ||||
Core Deposits | |||||
Goodwill [Line Items] | |||||
Finite-lived intangible assets acquired | 7,300 | ||||
Core Deposits | DNB | |||||
Goodwill [Line Items] | |||||
Core deposits and other intangible assets | $ 7,288 | ||||
Wealth Management | |||||
Goodwill [Line Items] | |||||
Finite-lived intangible assets acquired | $ 1,900 | ||||
Wealth Management | DNB | |||||
Goodwill [Line Items] | |||||
Core deposits and other intangible assets | $ 1,772 | ||||
[1] | Management is continuing to evaluate the purchase accounting fair value adjustments for the DNB merger. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. | ||||
[2] | Management is still evaluating the intangible asset valuation due to the final independent valuation report not being complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Gross carrying amount at beginning of year | $ 21,898 | $ 22,114 | |
Additions | [1] | 9,154 | 80 |
Other adjustments | 0 | (296) | |
Accumulated amortization | (20,133) | (19,297) | |
Balance at End of Year | $ 10,919 | $ 2,601 | |
[1] | Management is still evaluating the intangible asset valuation due to the final independent valuation report not being complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition. |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Expected Amortization Expense for Finite-Lived Intangibles Assets (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 2,421 |
2021 | 1,738 |
2022 | 1,474 |
2023 | 1,274 |
2024 | 1,110 |
Thereafter | 2,902 |
Total | $ 10,919 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Value of Derivative Assets and Derivative Liabilities (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Assets) | $ 25,647 | $ 5,504 |
Other Assets | Interest Rate Swap Contracts—Commercial Loans | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Assets) | 25,647 | 5,504 |
Notional amount, Derivatives (included in Other Assets) | 740,762 | 325,750 |
Collateral posted, Derivatives (included in Other Assets) | 0 | 160 |
Other Assets | Interest Rate Lock Commitments—Mortgage Loans | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Assets) | 321 | 251 |
Notional amount, Derivatives (included in Other Assets) | 9,829 | 6,054 |
Other Assets | Forward Sale Contracts—Mortgage Loans | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Assets) | 1 | 55 |
Notional amount, Derivatives (included in Other Assets) | 12,750 | 6,000 |
Other Liabilities | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Liabilities) | 25,615 | 5,340 |
Other Liabilities | Interest Rate Swap Contracts—Commercial Loans | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Liabilities) | 25,615 | 5,340 |
Notional amount, Derivatives (included in Other Liabilities) | 740,762 | 325,750 |
Collateral posted, Derivatives (included in Other Liabilities) | 26,127 | 0 |
Other Liabilities | Interest Rate Lock Commitments—Mortgage Loans | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Liabilities) | 0 | 0 |
Notional amount, Derivatives (included in Other Liabilities) | 0 | 0 |
Other Liabilities | Forward Sale Contracts—Mortgage Loans | ||
Derivatives not Designated as Hedging Instruments | ||
Fair value, Derivatives (included in Other Liabilities) | 0 | 0 |
Notional amount, Derivatives (included in Other Liabilities) | $ 0 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Gross Amounts of Derivative Assets and Derivative Liabilities (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Assets | |||
Derivatives (included in Other Assets) | |||
Gross amounts recognized | $ 26,146 | $ 8,733 | |
Gross amounts offset | (499) | (3,229) | |
Net amounts presented in the Consolidated Balance Sheets | 25,647 | 5,504 | |
Gross amounts not offset | [1] | 0 | (160) |
Net Amount | 25,647 | 5,344 | |
Other Liabilities | |||
Derivatives (included in Other Liabilities) | |||
Gross amounts recognized | 26,114 | 8,569 | |
Gross amounts offset | (499) | (3,229) | |
Net amounts presented in the Consolidated Balance Sheets | 25,615 | 5,340 | |
Gross amounts not offset | [1] | (26,127) | 0 |
Net Amount | $ (512) | $ 5,340 | |
[1] | Amounts represent collateral received/posted for the periods presented. |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Amount of Gain or Loss Recognized in Income on Derivatives (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Derivative (Loss)/Gain | $ (116) | $ 230 | $ 58 |
Interest Rate Swap Contracts—Commercial Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Derivative (Loss)/Gain | (132) | 145 | 17 |
Interest Rate Lock Commitments—Mortgage Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Derivative (Loss)/Gain | 70 | 25 | (11) |
Forward Sale Contracts—Mortgage Loans | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total Derivative (Loss)/Gain | $ (54) | $ 60 | $ 52 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loan Activity [Line Items] | |||
Sale of 1-4 family mortgage loans | $ 109,082 | $ 93,793 | $ 93,991 |
Total servicing portfolio | 509,200 | 473,700 | 441,000 |
Fannie Mae | |||
Mortgage Loan Activity [Line Items] | |||
Sale of 1-4 family mortgage loans | $ 94,500 | $ 79,300 | $ 78,800 |
Mortgage Servicing Rights - Net
Mortgage Servicing Rights - Net Carrying Values (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Rights | ||
Beginning Balance | $ 4,518 | $ 4,192 |
Additions | 1,086 | 907 |
Amortization | (665) | (581) |
Ending Balance | 4,939 | 4,518 |
Valuation Allowance | ||
Beginning Balance | (54) | (59) |
Temporary recapture (impairment) | (223) | 5 |
Ending Balance | (277) | (54) |
Net Carrying Value | ||
Beginning balance | 4,464 | 4,133 |
Additions | 1,086 | 907 |
Amortization | (665) | (581) |
Temporary recapture (impairment) | (223) | 5 |
Ending balance | $ 4,662 | $ 4,464 |
Qualified Affordable Housing (D
Qualified Affordable Housing (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 11, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in qualified affordable housing projects | $ 4.8 | $ 6.3 | |||
Tax credits to offset amortization expense of investments in affordable housing projects | 4.2 | 3.1 | $ 3.4 | ||
Noninterest Expense | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Amortization expense of investments in qualified affordable housing projects | 2.6 | $ 2.7 | $ 3 | ||
New Qualified Affordable Housing Project | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in qualified affordable housing projects | $ 1.5 | ||||
New qualified affordable housing project commitments | $ 10.2 | ||||
New Qualified Affordable Housing Project | Forecast | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Tax credits to offset amortization expense of investments in affordable housing projects | $ 0.5 |
Deposits - Composition of Depos
Deposits - Composition of Deposits and Interest Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Deposits And Borrowings Maturities [Line Items] | |||
Balance | $ 7,036,576 | $ 5,673,922 | $ 5,427,891 |
Interest Expense | 63,026 | 40,856 | 25,330 |
Noninterest-bearing demand | |||
Schedule Of Deposits And Borrowings Maturities [Line Items] | |||
Balance | 1,698,082 | 1,421,156 | 1,387,712 |
Interest Expense | 0 | 0 | 0 |
Interest-bearing demand | |||
Schedule Of Deposits And Borrowings Maturities [Line Items] | |||
Balance | 962,331 | 573,693 | 603,141 |
Interest Expense | 3,915 | 93 | 67 |
Money market | |||
Schedule Of Deposits And Borrowings Maturities [Line Items] | |||
Balance | 1,949,811 | 1,482,065 | 1,146,156 |
Interest Expense | 30,236 | 20,018 | 9,204 |
Savings | |||
Schedule Of Deposits And Borrowings Maturities [Line Items] | |||
Balance | 830,919 | 784,970 | 893,119 |
Interest Expense | 1,928 | 1,773 | 2,081 |
Certificates of deposit | |||
Schedule Of Deposits And Borrowings Maturities [Line Items] | |||
Balance | 1,595,433 | 1,412,038 | 1,397,763 |
Interest Expense | $ 26,947 | $ 18,972 | $ 13,978 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Certificates of deposits over $100,000, including brokered CDs | $ 754.8 | $ 575.2 |
Certificates of deposits over $250,000, including brokered CDs | $ 347.5 | $ 256 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 1,272,707 | |
2021 | 220,480 | |
2022 | 63,915 | |
2023 | 21,991 | |
2024 | 12,012 | |
Thereafter | 4,328 | |
Total | $ 1,595,433 | $ 1,412,038 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) - Mortgage Backed Securities - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Amortized cost of securities pledged as collateral | $ 22.7 | $ 24.2 |
Carrying value of securities pledged as collateral | $ 23 | $ 23.9 |
Short-Term Borrowings - Balance
Short-Term Borrowings - Balance, Weighted Average and Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | |||
Balance | $ 301,207 | $ 488,383 | $ 590,161 |
Weighted Average Interest Rate | 1.76% | 2.57% | 1.38% |
Interest Expense | $ 6,526 | $ 11,304 | $ 7,453 |
REPOs | |||
Short-term Debt [Line Items] | |||
Balance | $ 19,888 | $ 18,383 | $ 50,161 |
Weighted Average Interest Rate | 0.74% | 0.46% | 0.39% |
Interest Expense | $ 110 | $ 222 | $ 54 |
FHLB advances | |||
Short-term Debt [Line Items] | |||
Balance | $ 281,319 | $ 470,000 | $ 540,000 |
Weighted Average Interest Rate | 1.84% | 2.65% | 1.47% |
Interest Expense | $ 6,416 | $ 11,082 | $ 7,399 |
Long-Term Borrowings and Subo_3
Long-Term Borrowings and Subordinated Debt - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Long-term borrowings at FHLB | $ 49,300,000 | $ 69,800,000 |
Loans pledged as collateral at FHLB | 4,400,000,000 | |
Maximum eligible borrowing based on qualifying collateral at FHLB | 2,600,000,000 | |
Maximum borrowing capacity at FHLB | $ 3,100,000,000 | |
Percentage of equity owned | 100.00% |
Long-Term Borrowings and Subo_4
Long-Term Borrowings and Subordinated Debt - Interest Expense and Weighted Average Interest Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Long-term borrowings | $ 50,868 | $ 70,314 | $ 47,301 |
Weighted average interest rate | 2.60% | 2.84% | 1.88% |
Interest expense | $ 1,831 | $ 1,129 | $ 463 |
Long-Term Borrowings and Subo_5
Long-Term Borrowings and Subordinated Debt - Scheduled Annual Maturities and Average Interest Rates (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | |||
2020 Balance | $ 27,058 | ||
2021 Balance | 1,115 | ||
2022 Balance | 7,592 | ||
2023 Balance | 464 | ||
2024 Balance | 13,381 | ||
Thereafter Balance | 1,258 | ||
Total Long-term Balance | $ 50,868 | $ 70,314 | $ 47,301 |
2021 Average Rate | 2.91% | ||
2020 Average Rate | 3.57% | ||
2022 Average Rate | 2.24% | ||
2023 Average Rate | 5.71% | ||
2024 Average Rate | 1.71% | ||
Thereafter Average Rate | 5.83% | ||
Total Average Rate | 2.61% |
Long-Term Borrowings and Subo_6
Long-Term Borrowings and Subordinated Debt - Junior Subordinated Debt Securities and Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Junior Subordinated Debentures [Line Items] | |||
Balance | $ 64,277 | $ 45,619 | $ 45,619 |
Interest Expense | 2,310 | 2,100 | 1,663 |
Junior Subordinated Debt | |||
Junior Subordinated Debentures [Line Items] | |||
Balance | 34,753 | 25,000 | 25,000 |
Interest Expense | 1,059 | 951 | 708 |
Junior subordinated debt—trust preferred securities | |||
Junior Subordinated Debentures [Line Items] | |||
Balance | 29,524 | 20,619 | 20,619 |
Interest Expense | $ 1,251 | $ 1,149 | $ 955 |
Long-Term Borrowings and Subo_7
Long-Term Borrowings and Subordinated Debt - Key Terms of Junior Subordinated Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | $ 64,277 | $ 45,619 | $ 45,619 |
Interest Rate at December 31, 2019 | 2.60% | 2.84% | 1.88% |
Junior Subordinated Debt | |||
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | $ 34,753 | $ 25,000 | $ 25,000 |
Trust Preferred Securities | |||
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | 29,524 | $ 20,619 | $ 20,619 |
2001 Trust Preferred Securities | Trust Preferred Securities | |||
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | $ 5,155 | ||
Stated Maturity Date | Jul. 25, 2031 | ||
Optional redemption date at par | Any time after 7/25/2011 | ||
Regulatory Capital | Tier 1 | ||
Interest Rate at December 31, 2019 | 6.00% | ||
2001 Trust Preferred Securities | Trust Preferred Securities | LIBOR | |||
Junior Subordinated Debentures [Line Items] | |||
Interest Rate | 3.75% | ||
2005 Trust Preferred Securities | Trust Preferred Securities | |||
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | $ 4,124 | ||
Stated Maturity Date | May 23, 2035 | ||
Optional redemption date at par | Any time after 5/23/2010 | ||
Regulatory Capital | Tier 1 | ||
Interest Rate at December 31, 2019 | 3.68% | ||
2005 Trust Preferred Securities | Trust Preferred Securities | LIBOR | |||
Junior Subordinated Debentures [Line Items] | |||
Interest Rate | 1.77% | ||
2015 Junior Subordinated Debt | Junior Subordinated Debt | |||
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | $ 9,750 | ||
Stated Maturity Date | Mar. 6, 2025 | ||
Optional redemption date at par | Quarterly after 4/1/2020 | ||
Regulatory Capital | Tier 2 | ||
Interest Rate at December 31, 2019 | 4.25% | ||
2015 Junior Subordinated Debt | Junior Subordinated Debt | Prime Rate | |||
Junior Subordinated Debentures [Line Items] | |||
Interest Rate | 1.00% | ||
2006 Junior Subordinated Debt | Junior Subordinated Debt | |||
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | $ 25,000 | ||
Stated Maturity Date | Dec. 15, 2036 | ||
Optional redemption date at par | Any time after 9/15/2011 | ||
Regulatory Capital | Tier 2 | ||
Interest Rate at December 31, 2019 | 3.49% | ||
2006 Junior Subordinated Debt | Junior Subordinated Debt | LIBOR | |||
Junior Subordinated Debentures [Line Items] | |||
Interest Rate | 1.60% | ||
2008 Trust Preferred Securities | Trust Preferred Securities | |||
Junior Subordinated Debentures [Line Items] | |||
Junior subordinated debt securities | $ 20,619 | ||
Stated Maturity Date | Mar. 15, 2038 | ||
Optional redemption date at par | Any time after 3/15/2013 | ||
Regulatory Capital | Tier 1 | ||
Interest Rate at December 31, 2019 | 5.39% | ||
2008 Trust Preferred Securities | Trust Preferred Securities | LIBOR | |||
Junior Subordinated Debentures [Line Items] | |||
Interest Rate | 3.50% |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Letters of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitment And Contingencies [Line Items] | ||
Total Commitments | $ 1,990,845 | $ 1,542,026 |
Standby letters of credit | ||
Commitment And Contingencies [Line Items] | ||
Total Commitments | 80,040 | 77,134 |
Commitments to extend credit | ||
Commitment And Contingencies [Line Items] | ||
Total Commitments | $ 1,910,805 | $ 1,464,892 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Unfunded Loan Commitment | ||
Other Commitments [Line Items] | ||
Allowance for unfunded commitments | $ 3 | $ 2.1 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Service charges on deposit accounts | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | $ 13,316 | $ 13,096 | $ 12,458 |
Service charges on deposit accounts | Over a period of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 1,859 | 1,972 | 1,984 |
Service charges on deposit accounts | At a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 11,457 | 11,124 | 10,474 |
Debit and credit card | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 13,405 | 12,679 | 12,029 |
Debit and credit card | Over a period of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 723 | 656 | 537 |
Debit and credit card | At a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 12,682 | 12,022 | 11,493 |
Wealth management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 8,623 | 10,084 | 9,758 |
Wealth management | Over a period of time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 6,939 | 7,113 | 7,067 |
Wealth management | At a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | 1,684 | 2,971 | 2,691 |
Other fee revenue | At a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | [1] | $ 3,836 | $ 3,854 | $ 3,679 |
[1] | Refer to Note 1. Summary of Significant Accounting Policies for the types of revenue streams that are included within each category. |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal | ||||||||||||
Current | $ 18,918 | $ 13,616 | $ 32,282 | |||||||||
Deferred | (406) | 3,517 | 13,980 | |||||||||
Total Federal | 18,512 | 17,133 | 46,262 | |||||||||
State | ||||||||||||
Current | 589 | 720 | 323 | |||||||||
Deferred | 25 | (8) | (148) | |||||||||
Total State | 614 | 712 | 175 | |||||||||
Total Federal and State | $ 5,091 | $ 4,743 | $ 5,070 | $ 4,222 | $ 4,952 | $ 2,876 | $ 4,010 | $ 6,007 | $ 19,126 | $ 17,845 | $ 46,437 | |
[1] | The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Income Taxes [Line Items] | ||||
Income tax expense due to re-measurement of deferred tax assets and liabilities as result of changes in federal tax rate | $ 13,400 | |||
Income tax benefit | $ 3,000 | |||
Valuation allowance related to gross deferred tax assets | $ 5,134 | $ 4,573 | ||
Deferred tax assets, net operating loss carry forwards | $ 51,400 | |||
Minimum | ||||
Schedule Of Income Taxes [Line Items] | ||||
Deferred tax assets, net operating loss carry forwards, expiration date | 2020 | |||
Maximum | ||||
Schedule Of Income Taxes [Line Items] | ||||
Deferred tax assets, net operating loss carry forwards, expiration date | 2040 | |||
PENNSYLVANIA | ||||
Schedule Of Income Taxes [Line Items] | ||||
Valuation allowance related to gross deferred tax assets | $ 5,100 | $ 4,600 |
Income Taxes - Statutory to Eff
Income Taxes - Statutory to Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 21.00% | 21.00% | 35.00% |
Low income housing tax credits | (3.30%) | (2.50%) | (2.90%) |
Tax-exempt interest | (2.10%) | (2.10%) | (4.00%) |
Bank owned life insurance | (0.40%) | (0.40%) | (0.80%) |
Gain on sale of a majority interest of insurance business | 0.00% | 0.70% | 0.00% |
Merger related expenses | 0.30% | 0.00% | 0.00% |
Other | 0.80% | 0.30% | 0.30% |
Impact of the Tax Act | 0.00% | (2.50%) | 11.30% |
Effective Tax Rate | 16.30% | 14.50% | 38.90% |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets: | ||
Allowance for loan losses | $ 13,798 | $ 13,463 |
Net unrealized losses on securities available-for-sale | 0 | 1,091 |
Other employee benefits | 3,039 | 2,712 |
Low income housing partnerships | 3,494 | 3,249 |
Net adjustment to funded status of pension | 5,438 | 5,173 |
Lease liabilities | 11,257 | |
State net operating loss carryforwards | 5,134 | 4,573 |
Other | 1,856 | 2,856 |
Gross Deferred Tax Assets | 44,016 | 33,117 |
Less: Valuation allowance | (5,134) | (4,573) |
Total Deferred Tax Assets | 38,882 | 28,544 |
Deferred Tax Liabilities: | ||
Net unrealized gains on securities available-for-sale | (2,570) | 0 |
Prepaid pension | (5,971) | (6,164) |
Deferred loan income | (3,555) | (3,219) |
Purchase accounting adjustments | (1,269) | (100) |
Depreciation on premises and equipment | (592) | (477) |
Right-of-use lease assets | (10,476) | |
Other | (1,243) | (1,375) |
Total Deferred Tax liabilities | (25,676) | (11,335) |
Net Deferred Tax Asset | $ 13,206 | $ 17,209 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Change in Federal and State Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 768 | $ 909 | $ 804 |
Prior period tax positions | (10) | (251) | (37) |
Current period tax positions | 293 | 110 | 142 |
Balance at End of Year | 1,051 | 768 | 909 |
Amount That Would Impact the Effective Tax Rate if Recognized | $ 848 | $ 607 | $ 770 |
Tax Effects on Other Comprehe_3
Tax Effects on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Pre-Tax Amount | ||||
Other Comprehensive Income | $ 14,537 | $ (497) | $ (6,267) | |
Tax (Expense) Benefit | ||||
Other Comprehensive Loss | (3,100) | 106 | 1,624 | |
Net of Tax Amount | ||||
Other comprehensive income (loss) | 11,437 | (391) | (4,643) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Pre-Tax Amount | ||||
Net change in unrealized (losses)/gains on debt securities available-for sale | 15,793 | (6,794) | [1] | (1,275) |
Net available-for-sale securities losses reclassified into earnings | 26 | 0 | (3,000) | |
Tax (Expense) Benefit | ||||
Net change in unrealized (losses)/gains on debt securities available-for sale | (3,367) | 1,449 | [1] | 448 |
Net available-for-sale securities losses reclassified into earnings | (6) | 0 | 1,054 | |
Net of Tax Amount | ||||
Net change in unrealized (losses)/gains on debt securities available-for sale | 12,426 | (5,345) | [1] | (827) |
Net available-for-sale securities losses reclassified into earnings | 20 | 0 | (1,946) | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||
Pre-Tax Amount | ||||
Other Comprehensive Income | (1,282) | 6,297 | (1,992) | |
Tax (Expense) Benefit | ||||
Other Comprehensive Loss | 273 | (1,343) | 122 | |
Net of Tax Amount | ||||
Other comprehensive income (loss) | $ (1,009) | $ 4,954 | $ (1,870) | |
[1] | Due to the adoption of ASU No. 2016-01, net unrealized gains on marketable equity securities were reclassified from accumulated other comprehensive income to retained earnings during the three months ended March 31, 2018. The prior period data was not restated; as such, the change in unrealized gains on marketable securities is combined with the change in net unrealized gains on debt securities for the prior period ended December 31, 2017. |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) | Sep. 07, 2018USD ($) | Dec. 19, 2017USD ($)retiree | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)transfer | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of consecutive years of employee's compensation | 5 years | |||||
Number of total years of employee's compensation | 10 years | |||||
Service cost | $ 0 | |||||
Expected long-term rate of return on plan assets | 4.80% | 7.50% | 7.50% | |||
Employer contributions | $ 20,400,000 | $ 0 | $ 20,420,000 | |||
Return to provision discrete tax benefit | $ 2,900,000 | |||||
Net actuarial loss included in accumulated other comprehensive losses expected to be recognized | 1,500,000 | |||||
Future prior service credit to be recognized due to freeze of accrual benefits | 0 | |||||
Accumulated benefit obligation | 113,700,000 | 95,200,000 | ||||
Number of retirees covered by annuity contract | retiree | 124 | |||||
Number of retirees covered by annuity contract receiving death benefits | retiree | 30 | |||||
Defined benefit obligations, death benefits | $ 2,000 | |||||
Total premium paid out of plan's assets | $ 1,500,000 | 6,282,000 | 7,975,000 | |||
Projected benefit obligation | 106,664,000 | 113,679,000 | 95,200,000 | $ 106,664,000 | ||
Net periodic benefit cost | $ 867,000 | (250,000) | (347,000) | |||
Transfers of plan assets between levels 1 and 2 on recurring basis | 2,200,000 | |||||
Number of transfers | transfer | 0 | |||||
Purchases of level 3 plan assets | $ 0 | 0 | ||||
Transfers of level 3 plan assets | 0 | 0 | ||||
Required cash contributions to the plan | 100,000 | |||||
Supplemental Executive Retirement Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Projected benefit obligation | 5,300,000 | 4,400,000 | ||||
Net periodic benefit cost | 400,000 | 500,000 | 500,000 | |||
Amounts before tax reflected in accumulated other comprehensive income (loss) | $ 2,700,000 | $ 2,400,000 | 1,900,000 | 2,700,000 | ||
Thrift Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Contributions to the Thrift Plan | 3.50% | |||||
Compensation expense | $ 2,000,000 | $ 1,700,000 | $ 1,800,000 | |||
Total equity securities | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Targeted asset allocation percentage | 5.00% | 50.00% | ||||
Total equity securities | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Targeted asset allocation percentage | 15.00% | 70.00% | ||||
Fixed income | Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Targeted asset allocation percentage | 85.00% | 30.00% | ||||
Fixed income | Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Targeted asset allocation percentage | 95.00% | 50.00% |
Employee Benefits - Benefit Obl
Employee Benefits - Benefit Obligation and Plan Assets Deriving Funded Status (Details) - USD ($) $ in Thousands | Sep. 07, 2018 | Dec. 19, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | $ 95,200 | $ 106,664 | |||
Interest cost | 3,987 | 3,882 | $ 4,100 | ||
Actuarial gain/(loss) | 13,996 | (7,371) | |||
Acquisitions - DNB merger | 6,778 | 0 | |||
Benefits paid | (6,282) | (7,975) | |||
Projected Benefit Obligation at End of Year | 113,679 | 95,200 | 106,664 | ||
Change in Plan Assets | |||||
Fair value of plan assets at beginning of year | 101,765 | 87,154 | |||
Actual return on plan assets | 16,358 | 2,166 | |||
Employer contributions | $ 20,400 | 0 | 20,420 | ||
Acquisitions - DNB merger | 4,811 | 0 | |||
Benefits paid | $ (1,500) | (6,282) | (7,975) | ||
Fair Value of Plan Assets at End of Year | 116,652 | 101,765 | $ 87,154 | ||
Funded Status | $ 2,973 | $ 6,565 |
Employee Benefits - Accumulated
Employee Benefits - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ (23,106) | $ (22,340) |
Total (Before Tax Effects) | $ (23,106) | $ (22,340) |
Employee Benefits - Actuarial W
Employee Benefits - Actuarial Weighted Average Assumptions Used in Determining Benefit Obligation (Details) | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.25% | 4.31% | |
Rate of compensation increase | [1] | 0.00% | 0.00% |
[1] | Rate of compensation increase is not applicable for 2019 and 2018 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Pension Cost and Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Net Periodic Pension Cost | |||
Interest cost on projected benefit obligation | $ 3,987 | $ 3,882 | $ 4,100 |
Expected return on plan assets | (4,731) | (6,266) | (6,313) |
Amortization of prior service credit - DNB merger | 7 | 0 | 0 |
Recognized net actuarial loss | 1,604 | 2,134 | 1,866 |
Net Periodic Pension Expense | 867 | (250) | (347) |
Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss) | |||
Net actuarial loss/(gain) | 2,370 | (3,271) | 3,678 |
Recognized net actuarial loss | (1,604) | (2,134) | (1,866) |
Recognized prior service credit | 0 | 0 | 0 |
Total (Before Tax Effects) | 766 | (5,405) | 1,812 |
Total Recognized in Net Benefit Cost and Other Comprehensive Income/(Loss) (Before Tax Effects) | $ 1,633 | $ (5,655) | $ 1,465 |
- Actuarial Weighted Average As
- Actuarial Weighted Average Assumptions Used in Determining Net Periodic Pension Cost (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Retirement Benefits [Abstract] | ||||
Discount rate | 4.31% | 3.75% | 4.00% | |
Rate of compensation increase | [1] | 0.00% | 0.00% | 0.00% |
Expected return on assets | 4.80% | 7.50% | 7.50% | |
[1] | Rate of compensation increase is not applicable for 2019, 2018 and 2017 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. |
Employee Benefits - Estimated F
Employee Benefits - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 8,211 |
2021 | 8,151 |
2022 | 7,695 |
2023 | 7,343 |
2024 | 7,164 |
2025-2029 | $ 33,640 |
Employee Benefits - Pension Pla
Employee Benefits - Pension Plan Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | $ 116,652 | $ 101,482 | ||
Cash and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [2] | 1,831 | [1] | 2,164 | [3] |
Fixed income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[4] | 101,320 | 91,830 | ||
Equity index mutual funds—international | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | 3,066 | [5] | 2,604 | [6] |
Domestic individual equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[7] | 10,435 | 4,884 | ||
Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | 116,652 | 101,482 | ||
Level 1 | Cash and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [2] | 1,831 | [1] | 2,164 | [3] |
Level 1 | Fixed income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[4] | 101,320 | 91,830 | ||
Level 1 | Equity index mutual funds—international | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | 3,066 | [5] | 2,604 | [6] |
Level 1 | Domestic individual equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[7] | 10,435 | 4,884 | ||
Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | 0 | 0 | ||
Level 2 | Cash and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [2] | 0 | [1] | 0 | [3] |
Level 2 | Fixed income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[4] | 0 | 0 | ||
Level 2 | Equity index mutual funds—international | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | 0 | [5] | 0 | [6] |
Level 2 | Domestic individual equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[7] | 0 | 0 | ||
Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | 0 | 0 | ||
Level 3 | Cash and cash equivalents | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [2] | 0 | [1] | 0 | [3] |
Level 3 | Fixed income | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[4] | 0 | 0 | ||
Level 3 | Equity index mutual funds—international | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1] | 0 | [5] | 0 | [6] |
Level 3 | Domestic individual equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total Assets at Fair Value | [1],[7] | $ 0 | $ 0 | ||
[1] | Refer to Note 1 Summary of Significant Accounting Policies, Fair Value Measurements for a description of levels within the fair value hierarchy. | ||||
[2] | This asset class includes FDIC insured money market instruments. | ||||
[3] | Rate of compensation increase is not applicable for 2019 and 2018 due to the amendment to freeze benefit accruals under the qualified and nonqualified defined benefit pension plans effective March 31, 2016. | ||||
[4] | This asset class includes a variety of fixed income mutual funds which primarily invest in investment grade rated securities. Investment managers have discretion to invest in fixed income related securities including futures, options and other derivatives. Investments may be made in currencies other than the U.S. dollar. | ||||
[5] | ) The sole investment within this asset class is the Vanguard Total International Stock Index Fund Admiral Shares. | ||||
[6] | The sole investment within this asset class is Harbor International Institutional Fund. | ||||
[7] | This asset class includes individual domestic equities invested in an active all-cap strategy. It may also include convertible bonds. |
Incentive and Restricted Stoc_3
Incentive and Restricted Stock Plan and Dividend Reinvestment Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense to be recognized | $ 3.6 | ||
Weighted average compensation expense recognize period | 1 year 9 months 7 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 2.4 | $ 1.9 | $ 3 |
Tax benefit realized on compensation expense | $ 0.5 | $ 0.4 | $ 1.1 |
2014 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of common stock authorized (in shares) | 750,000 | ||
Stock plan expiration period | 10 years | ||
Number of nonstatutory stock options outstanding (in shares) | 0 | ||
2014 Stock Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 84,882 | 75,997 | |
2014 Stock Plan | Restricted Stock | Employees and Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 529,933 | ||
2014 Stock Plan | Restricted Stock | Outside Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 11,231 | 9,264 | 12,728 |
Awards vesting period | 1 year | ||
LTIP | Time-based and Performance-based Restricted Stocks | Senior Management | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted shares granted (in shares) | 73,651 | 66,733 | 77,387 |
LTIP | Time-based Restricted Shares | Senior Management | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock award vesting after year two, percent | 50.00% | ||
Restricted stock award vesting after year three, percent | 50.00% | ||
LTIP | Performance-based Restricted Shares | Senior Management | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards vesting period | 3 years |
Incentive and Restricted Stoc_4
Incentive and Restricted Stock Plan and Dividend Reinvestment Plan - Non-vested Restricted Stock Granted (Details) - 2014 Stock Plan - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Non-vested at beginning of the year (in shares) | 206,395 | 220,568 | |
Granted (in shares) | 84,882 | 75,997 | |
Vested (in shares) | 76,014 | 63,323 | |
Forfeited (in shares) | 33,228 | 26,847 | |
Non-vested at end of the year (in shares) | 182,035 | 206,395 | 220,568 |
Weighted Average Grant Date Fair Value | |||
Non-vested at beginning of the year (in USD per share) | $ 34.06 | $ 30.70 | $ 30.19 |
Granted (in USD per share) | 38.67 | 42.43 | |
Vested (in USD per share) | 30.75 | 29.19 | |
Forfeited (in USD per share) | 32.50 | 30.18 | |
Non-vested at end of the year (in USD per share) | $ 34.06 | $ 30.70 | $ 30.19 |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash | $ 197,823 | $ 155,489 | ||
Other assets | 159,429 | 88,725 | ||
Total Assets | 8,764,649 | 7,252,221 | ||
LIABILITIES | ||||
Other liabilities | 119,723 | 38,222 | ||
Total Liabilities | 7,572,651 | 6,316,460 | ||
Total Shareholders’ Equity | 1,191,998 | 935,761 | $ 884,031 | $ 841,956 |
Total Liabilities and Shareholders’ Equity | 8,764,649 | 7,252,221 | ||
Parent Company | ||||
ASSETS | ||||
Cash | 7,509 | 8,869 | ||
Investments in bank subsidiary | 1,198,964 | 925,286 | ||
Investments in nonbank subsidiaries | 16,393 | 15,479 | ||
Other assets | 9,741 | 8,458 | ||
Total Assets | 1,232,607 | 958,092 | ||
LIABILITIES | ||||
Long-term debt | 39,277 | 20,619 | ||
Other liabilities | 1,332 | 1,712 | ||
Total Liabilities | 40,609 | 22,331 | ||
Total Shareholders’ Equity | 1,191,998 | 935,761 | ||
Total Liabilities and Shareholders’ Equity | $ 1,232,607 | $ 958,092 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Information - Statements of Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Total Interest Income | $ 82,457 | $ 79,813 | $ 79,624 | $ 78,590 | $ 76,589 | $ 73,627 | $ 71,581 | $ 68,029 | $ 320,484 | $ 289,826 | $ 260,642 | |
Interest expense on long-term debt | 1,831 | 1,129 | 463 | |||||||||
Income tax benefit | $ 5,091 | $ 4,743 | $ 5,070 | $ 4,222 | $ 4,952 | $ 2,876 | $ 4,010 | $ 6,007 | 19,126 | 17,845 | 46,437 | |
Net Income | 98,234 | 105,334 | 72,968 | |||||||||
Parent Company | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Dividends from subsidiaries | 59,490 | 44,988 | 36,169 | |||||||||
Investment income | 1 | 24 | 22 | |||||||||
Total Interest Income | 59,491 | 45,012 | 36,191 | |||||||||
Interest expense on long-term debt | 1,285 | 1,149 | 955 | |||||||||
Other expenses | 4,325 | 3,988 | 3,801 | |||||||||
Total Expense | 5,610 | 5,137 | 4,756 | |||||||||
Income before income tax and undistributed net income of subsidiaries | 53,881 | 39,875 | 31,435 | |||||||||
Income tax benefit | (1,189) | (1,093) | (1,596) | |||||||||
Income before undistributed net income of subsidiaries | 55,070 | 40,968 | 33,031 | |||||||||
Equity in undistributed net income (distribution in excess of net income) of bank subsidiary | 42,683 | 68,385 | 40,877 | |||||||||
Equity in undistributed net income (distribution in excess of net income) of nonbank subsidiaries | 481 | (4,019) | (940) | |||||||||
Net Income | $ 98,234 | $ 105,334 | $ 72,968 | |||||||||
[1] | The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | Sep. 11, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
OPERATING ACTIVITIES | ||||
Net Income | $ 98,234 | $ 105,334 | $ 72,968 | |
Net Cash Provided by Operating Activities | 138,423 | 128,017 | 114,236 | |
INVESTING ACTIVITIES | ||||
Net Cash Used in Investing Activities | (210,556) | (201,964) | (212,415) | |
FINANCING ACTIVITIES | ||||
Sale of treasury shares, net | (915) | (657) | (689) | |
Purchase of treasury shares | (18,222) | (12,256) | 0 | |
Cash dividends paid to common shareholders | (37,360) | (34,539) | (28,569) | |
Payment to repurchase of warrant | $ (7,700) | 0 | (7,652) | 0 |
Net Cash Provided by Financing Activities | 114,467 | 112,284 | 75,845 | |
Net increase (decrease) in cash and cash equivalents | 42,334 | 38,337 | (22,334) | |
Cash and cash equivalents at beginning of year | 155,489 | 117,152 | 139,486 | |
Cash and Cash Equivalents at End of Year | 197,823 | 155,489 | 117,152 | |
Parent Company | ||||
OPERATING ACTIVITIES | ||||
Net Income | 98,234 | 105,334 | 72,968 | |
Equity in undistributed (earnings) losses of subsidiaries | (43,164) | (64,366) | (39,937) | |
Other | (99) | 1,695 | 480 | |
Net Cash Provided by Operating Activities | 54,971 | 42,663 | 33,511 | |
INVESTING ACTIVITIES | ||||
Net investments in subsidiaries | 176 | 0 | 0 | |
Acquisitions | (10) | 0 | 0 | |
Net Cash Used in Investing Activities | 166 | 0 | 0 | |
FINANCING ACTIVITIES | ||||
Sale of treasury shares, net | (915) | (657) | (689) | |
Purchase of treasury shares | (18,222) | (12,256) | 0 | |
Cash dividends paid to common shareholders | (37,360) | (34,539) | (28,569) | |
Payment to repurchase of warrant | 0 | (7,652) | 0 | |
Net Cash Provided by Financing Activities | (56,497) | (55,104) | (29,258) | |
Net increase (decrease) in cash and cash equivalents | (1,360) | (12,441) | 4,253 | |
Cash and cash equivalents at beginning of year | 8,869 | 21,310 | 17,057 | |
Cash and Cash Equivalents at End of Year | $ 7,509 | $ 8,869 | $ 21,310 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Banking and Thrift [Abstract] | |
Total trust preferred securities | $ 29 |
Junior subordinated debt, included in Tier 2 capital | $ 34.8 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Risk-Based Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
S&T | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Leverage Ratio, Actual Amount | $ 854,146 | $ 689,778 |
Leverage Ratio, Actual Ratio | 10.29% | 10.05% |
Leverage Ratio, Minimum Regulatory Capital Requirements Amount | $ 331,925 | $ 274,497 |
Leverage Ratio, Minimum Regulatory Capital Requirements Ratio | 4.00% | 4.00% |
Leverage Ratio, To be Well Capitalized Amount | $ 414,907 | $ 343,121 |
Leverage Ratio, To be Well Capitalized Ratio | 5.00% | 5.00% |
Tier One Common Equity Capital | $ 825,146 | $ 669,778 |
Tier One Common Equity Capital to Risk Weighted Assets | 11.43% | 11.38% |
Tier One Common Equity Capital Required for Capital Adequacy | $ 324,745 | $ 264,933 |
Tier One Common Equity Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Tier One Common Equity Capital Required to be Well Capitalized | $ 469,077 | $ 382,681 |
Tier One Common Equity Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | $ 854,146 | $ 689,778 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio | 11.84% | 11.72% |
Tier 1 Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Amount | $ 432,994 | $ 353,244 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk-Weighted Assets), To be Well Capitalized Amount | $ 577,325 | $ 470,992 |
Tier 1 Capital (to Risk-Weighted Assets), To be Well Capitalized Ratio | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets), Actual Amount | $ 954,094 | $ 777,913 |
Total Capital (to Risk-Weighted Assets), Actual Ratio | 13.22% | 13.21% |
Total Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Amount | $ 577,325 | $ 470,992 |
Total Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Ratio | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets), To be Well Capitalized Amount | $ 721,656 | $ 588,741 |
Total Capital (to Risk-Weighted Assets), To be Well Capitalized Ratio | 10.00% | 10.00% |
S&T Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Leverage Ratio, Actual Amount | $ 832,113 | $ 659,304 |
Leverage Ratio, Actual Ratio | 10.04% | 9.63% |
Leverage Ratio, Minimum Regulatory Capital Requirements Amount | $ 331,355 | $ 273,820 |
Leverage Ratio, Minimum Regulatory Capital Requirements Ratio | 4.00% | 4.00% |
Leverage Ratio, To be Well Capitalized Amount | $ 414,194 | $ 342,275 |
Leverage Ratio, To be Well Capitalized Ratio | 5.00% | 5.00% |
Tier One Common Equity Capital | $ 832,113 | $ 659,304 |
Tier One Common Equity Capital to Risk Weighted Assets | 11.56% | 11.23% |
Tier One Common Equity Capital Required for Capital Adequacy | $ 324,048 | $ 264,127 |
Tier One Common Equity Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Tier One Common Equity Capital Required to be Well Capitalized | $ 468,069 | $ 381,517 |
Tier One Common Equity Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount | $ 832,113 | $ 659,304 |
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio | 11.56% | 11.23% |
Tier 1 Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Amount | $ 432,064 | $ 352,170 |
Tier 1 Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk-Weighted Assets), To be Well Capitalized Amount | $ 576,085 | $ 469,560 |
Tier 1 Capital (to Risk-Weighted Assets), To be Well Capitalized Ratio | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets), Actual Amount | $ 922,310 | $ 747,438 |
Total Capital (to Risk-Weighted Assets), Actual Ratio | 12.81% | 12.73% |
Total Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Amount | $ 576,085 | $ 469,560 |
Total Capital (to Risk-Weighted Assets), Minimum Regulatory Capital Requirements Ratio | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets), To be Well Capitalized Amount | $ 720,106 | $ 586,950 |
Total Capital (to Risk-Weighted Assets), To be Well Capitalized Ratio | 10.00% | 10.00% |
Selected Financial Data (Detail
Selected Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | [1] | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Interest income | $ 82,457 | $ 79,813 | $ 79,624 | $ 78,590 | $ 76,589 | $ 73,627 | $ 71,581 | $ 68,029 | $ 320,484 | $ 289,826 | $ 260,642 | |
Interest expense | 18,045 | 18,617 | 18,797 | 18,234 | 16,747 | 14,365 | 13,178 | 11,097 | 73,693 | 55,388 | 34,909 | |
Provision for loan losses | 2,105 | 4,913 | 2,205 | 5,649 | 2,716 | 462 | 9,345 | 2,472 | 14,873 | 14,995 | 13,883 | |
Net Interest Income After Provision for Loan Losses | 62,307 | 56,283 | 58,622 | 54,707 | 57,126 | 58,800 | 49,058 | 54,460 | 231,918 | 219,443 | 211,850 | |
Security (losses) gains, net | (26) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (26) | 0 | 3,000 | |
Noninterest income | 15,257 | 13,063 | 12,901 | 11,362 | 11,095 | 12,042 | 12,251 | 13,792 | 52,558 | 49,181 | 55,462 | |
Noninterest expense | 50,178 | 37,667 | 40,352 | 38,919 | 36,415 | 37,085 | 35,863 | 36,082 | 167,116 | 145,445 | 147,907 | |
Income Before Taxes | 27,360 | 31,679 | 31,171 | 27,150 | 31,806 | 33,757 | 25,446 | 32,170 | ||||
Provision for income taxes | 5,091 | 4,743 | 5,070 | 4,222 | 4,952 | 2,876 | 4,010 | 6,007 | 19,126 | 17,845 | 46,437 | |
Net Income Allocated to Common Shareholders | $ 22,269 | $ 26,936 | $ 26,101 | $ 22,928 | $ 26,854 | $ 30,881 | $ 21,436 | $ 26,163 | $ 97,974 | $ 105,030 | $ 72,726 | |
Per Share Data | ||||||||||||
Common earnings per share-diluted (in USD per share) | $ 0.62 | $ 0.79 | $ 0.76 | $ 0.66 | $ 0.77 | $ 0.88 | $ 0.61 | $ 0.75 | $ 2.82 | $ 3.01 | $ 2.09 | |
Dividends declared per common share (in USD per share) | 0.28 | 0.27 | 0.27 | 0.27 | 0.27 | 0.25 | 0.25 | 0.22 | $ 1.09 | $ 0.99 | $ 0.82 | |
Common book value (in USD per share) | $ 30.13 | $ 28.69 | $ 28.11 | $ 27.47 | $ 26.98 | $ 26.27 | $ 25.91 | $ 25.58 | ||||
[1] | The DNB Merger is included in our consolidated financial statements beginning on December 1, 2019. |
Sale of a Majority Interest o_2
Sale of a Majority Interest of Insurance Business (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on sale of a majority interest of insurance business | $ 0 | $ 1,873 | $ 0 | |
Percentage of equity owned | 100.00% | |||
New Partnership | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Percentage of equity owned | 30.00% | |||
S&T Evergreen Insurance LLC | Subsidiaries | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Percentage of ownership in subsidiary sold | 70.00% | |||
Gain on sale of a majority interest of insurance business | $ 1,900 |
Share Repurchase Plan (Details)
Share Repurchase Plan (Details) - USD ($) | 5 Months Ended | 12 Months Ended | 17 Months Ended | |||
Feb. 28, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2019 | Sep. 16, 2019 | Mar. 19, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Cost to repurchase common shares | $ 18,222,000 | $ 12,256,000 | ||||
March 19, 2018 Plan | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 50,000,000 | |||||
Repurchased common shares (in shares) | 792,439 | |||||
Cost to repurchase common shares | $ 30,500,000 | |||||
Cost to repurchase common shares (in dollars per share) | $ 38.46 | |||||
September 16, 2019 Plan | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 50,000,000 | |||||
Subsequent Event | September 16, 2019 Plan | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchased common shares (in shares) | 0 |