Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 000-13396 | |
Entity Registrant Name | CNB FINANCIAL CORP/PA | |
Entity Central Index Key | 0000736772 | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 25-1450605 | |
Entity Address, Address Line One | 1 South Second Street | |
Entity Address, Address Line Two | P.O. Box 42 | |
Entity Address, City or Town | Clearfield | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 16830 | |
City Area Code | 814 | |
Local Phone Number | 765-9621 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | CCNE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 15,196,501 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 47,089 | $ 43,327 |
Interest bearing deposits with other banks | 5,072 | 2,236 |
Total cash and cash equivalents | 52,161 | 45,563 |
Securities available for sale | 529,867 | 516,863 |
Trading securities | 9,088 | 7,786 |
Loans held for sale | 1,279 | 367 |
Loans | 2,754,569 | 2,479,348 |
Less: unearned discount | (5,067) | (4,791) |
Less: allowance for loan losses | (20,207) | (19,704) |
Net loans | 2,729,295 | 2,454,853 |
FHLB, other equity, and restricted equity interests | 24,901 | 24,508 |
Premises and equipment, net | 53,647 | 49,920 |
Operating lease assets | 16,837 | 0 |
Bank owned life insurance | 57,445 | 56,443 |
Mortgage servicing rights | 1,504 | 1,495 |
Goodwill | 38,730 | 38,730 |
Core deposit intangible | 257 | 727 |
Accrued interest receivable and other assets | 26,159 | 24,266 |
Total Assets | 3,541,170 | 3,221,521 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Non-interest bearing deposits | 370,761 | 356,797 |
Interest bearing deposits | 2,504,834 | 2,253,989 |
Total deposits | 2,875,595 | 2,610,786 |
Short-term borrowings | 18,016 | 0 |
FHLB and other long term borrowings | 230,085 | 245,117 |
Subordinated debentures | 70,620 | 70,620 |
Operating lease liabilities | 17,696 | 0 |
Accrued interest payable and other liabilities | 32,125 | 32,168 |
Total liabilities | 3,244,137 | 2,958,691 |
Common stock, $0 par value; authorized 50,000,000 shares; issued 15,308,378 shares at September 30, 2019 and December 31, 2018 | 0 | 0 |
Additional paid in capital | 97,690 | 97,602 |
Retained earnings | 193,612 | 171,780 |
Treasury stock, at cost (112,807 shares at September 30, 2019 and 101,097 shares at December 31, 2018) | (2,799) | (2,556) |
Accumulated other comprehensive income (loss) | 8,530 | (3,996) |
Total shareholders’ equity | 297,033 | 262,830 |
Total Liabilities and Shareholders’ Equity | $ 3,541,170 | $ 3,221,521 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 15,308,378 | 15,308,378 |
Treasury stock, shares (in shares) | 112,807 | 101,097 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST AND DIVIDEND INCOME: | ||||
Loans including fees | $ 36,165 | $ 30,385 | $ 103,284 | $ 85,817 |
Securities: | ||||
Taxable | 3,093 | 2,698 | 9,226 | 6,862 |
Tax-exempt | 562 | 677 | 1,843 | 2,054 |
Dividends | 265 | 280 | 767 | 793 |
Total interest and dividend income | 40,085 | 34,040 | 115,120 | 95,526 |
INTEREST EXPENSE: | ||||
Deposits | 7,798 | 4,812 | 21,586 | 11,423 |
Borrowed funds | 1,399 | 1,334 | 4,101 | 4,426 |
Subordinated debentures (includes $11, $44, $31 and $149 accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements, respectively) | 987 | 1,016 | 2,980 | 2,873 |
Total interest expense | 10,184 | 7,162 | 28,667 | 18,722 |
NET INTEREST INCOME | 29,901 | 26,878 | 86,453 | 76,804 |
PROVISION FOR LOAN LOSSES | 2,118 | 1,095 | 5,212 | 4,631 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 27,783 | 25,783 | 81,241 | 72,173 |
NON-INTEREST INCOME: | ||||
Service charges on deposit accounts | 1,676 | 1,584 | 4,726 | 4,102 |
Other service charges and fees | 761 | 732 | 2,155 | 2,073 |
Wealth and asset management fees | 1,238 | 1,031 | 3,482 | 3,151 |
Net realized gains on available-for-sale securities (includes $0, $0, $148 and $0 accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities, respectively) | 0 | 0 | 148 | 0 |
Net realized and unrealized gains on trading securities | 197 | 421 | 1,651 | 672 |
Mortgage banking | 408 | 283 | 1,017 | 801 |
Bank owned life insurance | 315 | 335 | 1,002 | 1,074 |
Card processing and interchange income | 1,195 | 1,066 | 3,445 | 3,140 |
Other | 486 | 481 | 1,595 | 1,277 |
Total non-interest income | 6,276 | 5,933 | 19,221 | 16,290 |
NON-INTEREST EXPENSES: | ||||
Salaries and benefits | 11,633 | 11,429 | 34,040 | 31,095 |
Net occupancy expense | 2,683 | 2,650 | 8,244 | 7,780 |
Amortization of core deposit intangible | 139 | 222 | 470 | 718 |
Data processing | 1,329 | 1,149 | 3,951 | 3,370 |
State and local taxes | 956 | 808 | 2,678 | 2,494 |
Legal, professional, and examination fees | 702 | 603 | 1,825 | 1,661 |
Advertising | 626 | 554 | 1,510 | 1,732 |
FDIC insurance premiums | 107 | 361 | 902 | 1,037 |
Card processing and interchange expenses | 749 | 767 | 2,180 | 2,139 |
Other | 2,520 | 2,251 | 8,803 | 7,310 |
Total non-interest expenses | 21,444 | 20,794 | 64,603 | 59,336 |
INCOME BEFORE INCOME TAXES | 12,615 | 10,922 | 35,859 | 29,127 |
INCOME TAX EXPENSE (includes ($2), ($9), $25 and ($31) income tax expense from reclassification items, respectively) | 2,258 | 1,686 | 6,262 | 4,353 |
NET INCOME | $ 10,357 | $ 9,236 | $ 29,597 | $ 24,774 |
EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 0.68 | $ 0.60 | $ 1.94 | $ 1.62 |
Diluted (in dollars per share) | 0.68 | 0.60 | 1.94 | 1.62 |
DIVIDENDS PER SHARE: | ||||
Cash dividends per share (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.51 | $ 0.50 |
Consolidated Statements of In_2
Consolidated Statements of Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements | $ 11 | $ 31 | ||
Accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements, before 2017-12 adoption | $ 44 | $ 149 | ||
Accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities | 0 | 0 | 148 | 0 |
Income tax expense from reclassification | $ (2) | $ (9) | $ 25 | $ (31) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 10,357 | $ 9,236 | $ 29,597 | $ 24,774 |
Net change in fair value of interest rate swap agreements designated as cash flow hedges: | ||||
Unrealized gain (loss) on interest rate swaps, net of tax of $14 and $87 respectively | (54) | (326) | ||
Unrealized gain (loss) on interest rate swaps, net of tax of $0 and ($4), respectively before 2017-12 adoption | 1 | 16 | ||
Reclassification adjustment for losses recognized in earnings, net of tax of ($2) and ($7) respectively | 9 | 24 | ||
Reclassification adjustment for losses recognized in earnings, net of tax of $(9) and $(31), respectively before 2017-12 adoption | 35 | 118 | ||
Net change in fair value of interest rate swap agreements designated as cash flow hedges | (45) | (302) | ||
Net change in fair value of interest rate swap agreements designated as cash flow hedges before 2017-12 adoption | 36 | 134 | ||
Net change in unrealized gains on securities available for sale: | ||||
Unrealized holding gains (losses) arising during the period, net of tax of ($659), $653, ($3,441) and $2,010, respectively | 2,477 | (2,459) | 12,945 | (7,562) |
Reclassification adjustment for realized gains included in net income, net of tax of $0, 0$, $31 and $0, respectively | 0 | 0 | (117) | 0 |
Unrealized gain on other securities available-for-sale | 2,477 | (2,459) | 12,828 | (7,562) |
Other comprehensive income (loss) | 2,432 | (2,423) | 12,526 | (7,428) |
COMPREHENSIVE INCOME | $ 12,789 | $ 6,813 | $ 42,123 | $ 17,346 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on interest rate swaps, tax | $ 14 | $ 87 | ||
Unrealized gain (loss) on interest rate swaps, tax before 2017-12 adoption | $ 0 | $ (4) | ||
Reclassification adjustment for losses recognized in earnings, tax | (2) | (9) | (7) | (31) |
Unrealized (losses) gains on other securities available for sale arising during the period, tax | (659) | 653 | (3,441) | 2,010 |
Reclassification adjustment for realized gains included in net income, tax | $ 0 | $ 0 | $ 31 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 29,597 | $ 24,774 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Provision for loan losses | 5,212 | 4,631 |
Depreciation and amortization of premises and equipment, operating leases assets, core deposit intangible, and mortgage servicing rights | 4,156 | 3,661 |
Amortization and accretion of securities premiums and discounts, deferred loan fees and costs, net yield and credit mark on acquired loans, and unearned income | (540) | (472) |
Net realized gains on sales of available-for-sale securities | (148) | 0 |
Net realized and unrealized gains on trading securities | (1,651) | (672) |
Proceeds from sale of trading securities | 764 | 434 |
Purchase of trading securities | (415) | (1,499) |
Gain on sale of loans | (696) | (510) |
Net gains on dispositions of premises and equipment and foreclosed assets | (353) | (285) |
Proceeds from sale of loans | 29,729 | 18,811 |
Origination of loans held for sale | (30,107) | (18,404) |
Income on bank owned life insurance | (1,002) | (1,074) |
Stock-based compensation expense | 1,109 | 1,218 |
Changes in: | ||
Accrued interest receivable and other assets | (895) | (5,755) |
Accrued interest payable, lease liabilities, and other liabilities | (3,278) | 2,627 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 31,482 | 27,485 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities, prepayments and calls of available-for-sale securities | 63,835 | 44,605 |
Proceeds from sales of available-for-sale securities | 11,403 | 0 |
Purchase of available-for-sale securities | (72,542) | (167,473) |
Loan origination and payments, net | (279,901) | (241,895) |
Redemption (purchase) of FHLB, other equity, and restricted equity interests | (393) | (2,319) |
Purchase of premises and equipment | (6,720) | (1,373) |
Proceeds from the sale of premises and equipment and foreclosed assets | 725 | 597 |
NET CASH USED BY INVESTING ACTIVITIES | (283,593) | (367,858) |
Net change in: | ||
Checking, money market and savings accounts | 286,141 | 329,925 |
Certificates of deposit | (21,332) | 24,639 |
Purchase of treasury stock | (1,319) | (454) |
Cash dividends paid | (7,765) | (7,645) |
Repayment of long-term borrowings | (45,385) | (22,732) |
Proceeds from long-term borrowings | 30,353 | 50,000 |
Net change in short-term borrowings | 18,016 | (32,205) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 258,709 | 341,528 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 6,598 | 1,155 |
CASH AND CASH EQUIVALENTS, Beginning | 45,563 | 35,345 |
CASH AND CASH EQUIVALENTS, Ending | 52,161 | 36,500 |
Cash paid during the period for: | ||
Interest | 28,304 | 17,722 |
Income taxes | 5,014 | 4,250 |
SUPPLEMENTAL NONCASH DISCLOSURES: | ||
Transfers to other real estate owned | 1,473 | 228 |
Grant of restricted stock awards from treasury stock | $ 1,076 | $ 933 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Restricted Stock | Restricted StockTreasury Stock | Performance Shares | Performance SharesTreasury Stock |
Beginning balance at Dec. 31, 2017 | $ 243,910 | $ 97,042 | $ 148,298 | $ (1,087) | $ (343) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 24,774 | 24,774 | |||||||
Other comprehensive income (loss) | (7,428) | (7,428) | |||||||
Forfeiture of restricted stock award grants | (3) | 1 | (4) | ||||||
Restricted stock award grants | 0 | (933) | 933 | ||||||
Performance based restricted stock award grants (798 shares) | 1,218 | 1,218 | |||||||
Purchase of treasury stock | (286) | (286) | $ (164) | $ (164) | |||||
Cash dividends declared | (7,645) | (7,645) | |||||||
Ending balance at Sep. 30, 2018 | 254,376 | 97,328 | 165,427 | (608) | (7,771) | ||||
Beginning balance at Jun. 30, 2018 | 249,893 | 97,059 | 158,790 | (608) | (5,348) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 9,236 | 9,236 | |||||||
Other comprehensive income (loss) | (2,423) | (2,423) | |||||||
Performance based restricted stock award grants (798 shares) | 269 | 269 | |||||||
Cash dividends declared | (2,599) | (2,599) | |||||||
Ending balance at Sep. 30, 2018 | 254,376 | 97,328 | 165,427 | (608) | (7,771) | ||||
Beginning balance at Dec. 31, 2018 | 262,830 | 97,602 | 171,780 | (2,556) | (3,996) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 29,597 | 29,597 | |||||||
Other comprehensive income (loss) | 12,526 | 12,526 | |||||||
Forfeiture of restricted stock award grants | (16) | 55 | (71) | ||||||
Performance based restricted stock award grants | 0 | (21) | 21 | ||||||
Restricted stock award grants | 0 | (1,055) | 1,055 | ||||||
Performance based restricted stock award grants (798 shares) | 1,109 | 1,109 | |||||||
Purchase of treasury stock | (994) | (994) | (246) | (246) | $ (8) | $ (8) | |||
Cash dividends declared | (7,765) | (7,765) | |||||||
Ending balance at Sep. 30, 2019 | 297,033 | 97,690 | 193,612 | (2,799) | 8,530 | ||||
Beginning balance at Jun. 30, 2019 | 286,615 | 97,414 | 185,838 | (2,735) | 6,098 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 10,357 | 10,357 | |||||||
Other comprehensive income (loss) | 2,432 | 2,432 | |||||||
Forfeiture of restricted stock award grants | (16) | 55 | (71) | ||||||
Performance based restricted stock award grants | 0 | (21) | 21 | ||||||
Performance based restricted stock award grants (798 shares) | 242 | 242 | |||||||
Purchase of treasury stock | $ (6) | $ (6) | $ (8) | $ (8) | |||||
Cash dividends declared | (2,583) | (2,583) | |||||||
Ending balance at Sep. 30, 2019 | $ 297,033 | $ 97,690 | $ 193,612 | $ (2,799) | $ 8,530 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Forfeiture of restricted stock award grants (in shares) | 2,699 | 2,699 | 130 | |
Performance-based restricted stock award (in shares) | 798 | 798 | ||
Cash dividends declared (in dollars per share) | $ 0.17 | $ 0.165 | $ 0.51 | $ 0.50 |
Restricted stock award grants (in shares) | 39,790 | 37,708 | ||
Purchase of treasury stock (in shares) | 40,000 | 10,769 | ||
Restricted Stock | ||||
Purchase of treasury stock (in shares) | 217 | 9,305 | 6,119 | |
Performance Shares | ||||
Purchase of treasury stock (in shares) | 294 | 294 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared pursuant to rules and regulations of the SEC and in compliance with accounting principles generally accepted in the United States of America (“GAAP”). Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of management of the registrant, the accompanying consolidated financial statements as of September 30, 2019 and for the three and nine month periods ended September 30, 2019 and 2018 include all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial condition and the results of operations for the periods presented. The financial performance reported for CNB Financial Corporation (the “Corporation”) for the three and nine month period ended September 30, 2019 is not necessarily indicative of the results to be expected for the full year. This information should be read in conjunction with the Corporation’s Annual Report on Form 10-K for the period ended December 31, 2018 (the “ 2018 Form 10-K”). All dollar amounts are stated in thousands, except share and per share data and other amounts as indicated. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation | STOCK COMPENSATION The Corporation has a stock incentive plan, which is administered by a committee of the Board of Directors and which permits the Corporation to provide various types of stock-based compensation to its key employees, directors, and/or consultants, including time-based and performance-based shares of restricted stock. The Corporation previously maintained the CNB Financial Corporation 2009 Stock Incentive Plan, which terminated in accordance with its terms on February 10, 2019, and currently maintains the CNB Financial Corporation 2019 Omnibus Incentive Plan (the "2019 Stock Incentive Plan"), which was approved by the Corporation’s shareholders and became effective on April 16, 2019. For key employees, the vesting of time-based restricted stock is one-third, one-fourth, or one-fifth of the granted restricted shares per year, beginning one year after the grant date, with 100% vesting on the third, fourth or fifth anniversary of the grant date, respectively. Prior to 2018, for non-employee directors, the vesting schedule was one-third of the granted restricted shares per year, beginning one year after the grant date, with 100% vested on the third anniversary of the grant date. Beginning in 2018, stock compensation received by non-employee directors vests immediately. At September 30, 2019 , there was no unrecognized compensation cost related to stock-based compensation awarded under this plan and, except for the time-based and performance-based restricted stock awards disclosed below and in previous filings, no other stock-based compensation was granted during the three or nine month periods ended September 30, 2019 and 2018 . In addition to the time-based restricted stock disclosed above, the Corporation’s Board of Directors grants performance-based restricted stock awards (“PBRSAs”) to key employees. The number of PBRSAs will depend on certain performance conditions and are also subject to service-based vesting. In 2019, awards with a maximum of 16,681 shares in aggregate were granted to key employees. In 2018, awards with a maximum of 15,657 shares in aggregate were granted to key employees. In 2017, an award with a maximum of 7,109 shares was granted to a key employee. In the third quarter of 2019, a key employee retired resulting in 241 and 557 shares vesting related to their 2019 and 2018 PBRSA, respectively, in accordance with their agreement. Compensation expense for the restricted stock awards is recognized over the requisite service period noted above based on the fair value of the shares at the date of grant. Nonvested restricted stock awards are recorded as a reduction of additional paid-in-capital in shareholders’ equity until earned. Compensation expense resulting from time-based, performance-based and director restricted stock awards was $242 and $1,109 for the three and nine months ended September 30, 2019 and $269 and $1,218 for the three and nine months ended September 30, 2018 . There was $640 and $775 of total unrecognized compensation cost related to unvested restricted stock awards, as of September 30, 2019 and December 31, 2018 , respectively. The total income tax benefit related to the recognized compensation cost of vested restricted stock awards was $51 and $233 for the three and nine months ended September 30, 2019 and $56 and $256 for the three and nine months ended September 30, 2018 , respectively. A summary of changes in time-based nonvested restricted stock awards for the three months ended September 30, 2019 follows: Shares Per Share Weighted Average Grant Date Fair Value Nonvested at beginning of period 64,158 $ 24.87 Forfeited (2,699 ) 24.85 Vested (639 ) 23.53 Nonvested at end of period 60,820 $ 24.88 A summary of changes in time-based nonvested restricted stock awards for the nine months ended September 30, 2019 follows: Shares Per Share Weighted Average Grant Date Fair Value Nonvested at beginning of period 75,889 $ 23.20 Granted 25,940 25.27 Forfeited (2,699 ) 24.85 Vested (38,310 ) 21.79 Nonvested at end of period 60,820 $ 24.88 The above table excludes 13,850 shares in restricted stock awards that were granted at a weighted average fair value of $25.27 and immediately vested. Compensation expense resulting from the immediately vested shares was $0 and $350 for the three and nine months ended September 30, 2019 and is included in the previously disclosed $242 and $1,109 above, respectively. The fair value of shares vested was $18 and $1,346 during the three and nine months ended September 30, 2019 and $8 and $1,479 for the three and nine months ended September 30, 2018 . |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE Fair Value Measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy has also been established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following three levels of inputs are used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The fair values of most trading securities and securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Corporation’s derivative instruments are interest rate swaps that are similar to those that trade in liquid markets. As such, significant fair value inputs can generally be verified and do not typically involve significant management judgments (Level 2 inputs). The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals prepared by third-parties. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Management also adjusts appraised values based on the length of time that has passed since the appraisal date and other factors. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Assets and liabilities measured at fair value on a recurring basis are as follows at September 30, 2019 and December 31, 2018 : Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Securities Available For Sale: U.S. Government sponsored entities $ 138,768 $ 0 $ 138,768 $ 0 States and political subdivisions 115,064 0 115,064 0 Residential and multi-family mortgage 240,966 0 240,966 0 Corporate notes and bonds 7,003 0 7,003 0 Pooled SBA 27,101 0 27,101 0 Other 965 965 0 0 Total Securities Available For Sale $ 529,867 $ 965 $ 528,902 $ 0 Interest Rate swaps $ 2,572 $ 0 $ 2,572 $ 0 Trading Securities: Corporate equity securities $ 7,259 $ 7,259 $ 0 $ 0 Mutual funds 911 911 0 0 Certificates of deposit 210 210 0 0 Corporate notes and bonds 657 657 0 0 U.S. Government sponsored entities 51 0 51 0 Total Trading Securities $ 9,088 $ 9,037 $ 51 $ 0 Liabilities: Interest rate swaps $ (3,155 ) $ 0 $ (3,155 ) $ 0 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Securities Available For Sale: U.S. Government sponsored entities $ 132,694 $ 0 $ 132,694 $ 0 States and political subdivisions 136,031 0 136,031 0 Residential and multi-family mortgage 206,053 0 206,053 0 Corporate notes and bonds 11,777 0 11,777 0 Pooled SBA 29,374 0 29,374 0 Other 934 934 0 0 Total Securities Available For Sale $ 516,863 $ 934 $ 515,929 $ 0 Interest Rate swaps $ 485 $ 0 $ 485 $ 0 Trading Securities: Corporate equity securities $ 5,828 $ 5,828 $ 0 $ 0 Mutual funds 1,058 1,058 0 0 Certificates of deposit 268 268 0 0 Corporate notes and bonds 581 581 0 0 U.S. Government sponsored entities 51 0 51 0 Total Trading Securities $ 7,786 $ 7,735 $ 51 $ 0 Liabilities: Interest rate swaps $ (686 ) $ 0 $ (686 ) $ 0 Assets and liabilities measured at fair value on a non-recurring basis are as follows at September 30, 2019 and December 31, 2018 : Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Commercial, industrial, and agricultural $ 687 0 0 $ 687 Commercial mortgages $ 1,089 0 0 $ 1,089 Fair Value Measurements at December 31, 2018 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Commercial, industrial, and agricultural $ 2,055 0 0 $ 2,055 Commercial mortgages $ 679 0 0 $ 679 The estimated fair values of impaired collateral dependent loans, such as commercial or residential mortgages, are determined primarily through third-party appraisals. When a collateral dependent loan, such as a commercial or residential mortgage loan, becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal, and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral and a further reduction for estimated costs to sell the property is applied, which results in an amount that is considered to be the estimated fair value. If a loan becomes impaired and the appraisal of related loan collateral is outdated, management applies an appropriate adjustment factor based on its experience with current valuations of similar collateral in determining the loan’s estimated fair value and resulting allowance for loan losses. Third-party appraisals are not customarily obtained in respect of unimpaired loans, unless in management’s view changes in circumstances warrant obtaining an updated appraisal. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2019 : Fair value Valuation Technique Unobservable Inputs Range (Weighted Average) Impaired loans – commercial, industrial, and agricultural $687 Valuation of third party appraisal on underlying collateral Loss severity rates 48%-61% (54%) Impaired loans – commercial mortgages $1,089 Valuation of third party appraisal on underlying collateral Loss severity rates 25-100% (58%) The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2018 : Fair value Valuation Technique Unobservable Inputs Range (Weighted Average) Impaired loans – commercial, industrial, and agricultural $2,055 Valuation of third party appraisal on underlying collateral Loss severity rates 20%-60% (34%) Impaired loans – commercial mortgages $679 Valuation of third party appraisal on underlying collateral Loss severity rates 15%-39% (33%) Fair Value of Financial Instruments The following table presents the carrying amount and fair value of financial instruments at September 30, 2019 : Carrying Fair Value Measurement Using: Total Amount Level 1 Level 2 Level 3 Fair Value ASSETS Cash and cash equivalents $ 52,161 $ 52,161 $ 0 $ 0 $ 52,161 Securities available for sale 529,867 965 528,902 0 529,867 Trading securities 9,088 9,037 51 0 9,088 Loans held for sale 1,279 0 1,282 0 1,282 Net loans 2,729,295 0 0 2,705,463 2,705,463 FHLB and other restricted interests 24,901 n/a n/a n/a n/a Interest rate swaps 2,572 0 2,572 0 2,572 Accrued interest receivable 11,679 6 3,486 8,187 11,679 LIABILITIES Deposits $ (2,875,595 ) $ (2,501,490 ) $ (374,987 ) $ 0 $ (2,876,477 ) FHLB and other borrowings (248,101 ) 0 (252,312 ) 0 (252,312 ) Subordinated debentures (70,620 ) 0 (64,382 ) 0 (64,382 ) Interest rate swaps (3,155 ) 0 (3,155 ) 0 (3,155 ) Accrued interest payable (1,712 ) 0 (1,712 ) 0 (1,712 ) The following table presents the carrying amount and fair value of financial instruments at December 31, 2018 : Carrying Fair Value Measurement Using: Total Amount Level 1 Level 2 Level 3 Fair Value ASSETS Cash and cash equivalents $ 45,563 $ 45,563 $ 0 $ 0 $ 45,563 Securities available for sale 516,863 934 515,929 0 516,863 Trading securities 7,786 7,735 51 0 7,786 Loans held for sale 367 0 368 0 368 Net loans 2,454,853 0 0 2,433,417 2,433,417 FHLB and other restricted interests 24,508 n/a n/a n/a n/a Interest rate swaps 485 0 485 0 485 Accrued interest receivable 10,843 6 3,368 7,469 10,843 LIABILITIES Deposits $ (2,610,786 ) $ (2,215,349 ) $ (397,370 ) $ 0 $ (2,612,719 ) FHLB and other borrowings (245,117 ) 0 (242,592 ) 0 (242,592 ) Subordinated debentures (70,620 ) 0 (65,794 ) 0 (65,794 ) Interest rate swaps (686 ) 0 (686 ) 0 (686 ) Accrued interest payable (1,349 ) 0 (1,349 ) 0 (1,349 ) In accordance with our adoption of Accounting Standards Update ("ASU") 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at September 30, 2019 and December 31, 2018 represent an approximation of exit price; however, an actual exit price may differ. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES Securities available for sale at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Amortized Unrealized Fair Amortized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value U.S. Gov’t sponsored entities $ 135,215 $ 3,620 $ (67 ) $ 138,768 $ 134,010 $ 254 $ (1,570 ) $ 132,694 State & political subdivisions 111,468 3,687 (91 ) 115,064 134,662 1,942 (573 ) 136,031 Residential & multi-family mortgage 236,241 5,362 (637 ) 240,966 209,126 500 (3,573 ) 206,053 Corporate notes & bonds 7,350 14 (361 ) 7,003 12,356 22 (601 ) 11,777 Pooled SBA 26,810 361 (70 ) 27,101 30,163 135 (924 ) 29,374 Other 1,020 0 (55 ) 965 1,020 0 (86 ) 934 Total $ 518,104 $ 13,044 $ (1,281 ) $ 529,867 $ 521,337 $ 2,853 $ (7,327 ) $ 516,863 At September 30, 2019 and December 31, 2018 , there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity. The Corporation’s residential and multi-family mortgage securities are issued by government sponsored entities. Trading securities at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Corporate equity securities $ 7,259 $ 5,828 Mutual funds 911 1,058 Certificates of deposit 210 268 Corporate notes and bonds 657 581 U.S. Government sponsored entities 51 51 Total $ 9,088 $ 7,786 Securities with unrealized losses at September 30, 2019 and December 31, 2018 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: September 30, 2019 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Gov’t sponsored entities $ 9,045 $ (7 ) $ 23,954 $ (60 ) $ 32,999 $ (67 ) State & political subdivisions 0 0 714 (91 ) 714 (91 ) Residential & multi-family mortgage 15,527 (67 ) 35,984 (570 ) 51,511 (637 ) Corporate notes & bonds 0 0 4,639 (361 ) 4,639 (361 ) Pooled SBA 9,118 (20 ) 6,576 (50 ) 15,694 (70 ) Other 0 0 965 (55 ) 965 (55 ) $ 33,690 $ (94 ) $ 72,832 $ (1,187 ) $ 106,522 $ (1,281 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Gov’t sponsored entities $ 14,786 $ (41 ) $ 70,676 $ (1,529 ) $ 85,462 $ (1,570 ) State & political subdivisions 13,834 (62 ) 21,080 (511 ) 34,914 (573 ) Residential & multi-family mortgage 69,015 (656 ) 87,286 (2,917 ) 156,301 (3,573 ) Corporate notes & bonds 0 0 9,759 (601 ) 9,759 (601 ) Pooled SBA 760 (7 ) 20,795 (917 ) 21,555 (924 ) Other 0 0 934 (86 ) 934 (86 ) $ 98,395 $ (766 ) $ 210,530 $ (6,561 ) $ 308,925 $ (7,327 ) The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation. At September 30, 2019 and December 31, 2018 , management performed an assessment for possible other-than-temporary impairment of the Corporation’s debt securities, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. Based on the results of the assessment, management believes impairment of these debt securities at September 30, 2019 and December 31, 2018 to be temporary. For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed as appropriate given the following considerations; the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred, the length of time and extent to which fair value has been less than cost, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery. As of September 30, 2019 and December 31, 2018 , management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons: • There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities. • All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received. The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis. On September 30, 2019 and December 31, 2018 , securities carried at $257,233 and $290,717 , respectively, were pledged to secure public deposits and for other purposes as provided by law. Information pertaining to security sales on available for sale securities is as follows: Proceeds Gross Gains Gross Losses Three months ended September 30, 2019 $ 0 $ 0 $ 0 Three months ended September 30, 2018 $ 0 $ 0 $ 0 Nine months ended September 30, 2019 $ 11,403 $ 152 $ 4 Nine months ended September 30, 2018 $ 0 $ 0 $ 0 The tax provision related to these net realized gains was $0 and $31 during the three and nine months ended September 30, 2019 . The following is a schedule of the contractual maturity of securities available for sale at September 30, 2019 : Amortized Cost Fair Value 1 year or less $ 71,463 $ 71,468 1 year – 5 years 108,190 110,168 5 years – 10 years 68,636 73,242 After 10 years 5,744 5,957 254,033 260,835 Residential and multi-family mortgage 236,241 240,966 Pooled SBA 26,810 27,101 Other 1,020 965 Total debt securities $ 518,104 $ 529,867 Mortgage and asset backed securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans | LOANS Total net loans at September 30, 2019 and December 31, 2018 are summarized as follows: September 30, 2019 December 31, 2018 Commercial, industrial, and agricultural $ 1,033,631 $ 916,297 Commercial mortgages 788,974 697,776 Residential real estate 802,331 771,309 Consumer 121,598 86,035 Credit cards 7,393 7,623 Overdrafts 642 308 Less: unearned discount (5,067 ) (4,791 ) allowance for loan losses (20,207 ) (19,704 ) Loans, net $ 2,729,295 $ 2,454,853 At September 30, 2019 and December 31, 2018 , net unamortized loan fees of $3,447 and $3,175 , respectively, have been included in the carrying value of loans. The Corporation’s outstanding loans and related unfunded commitments are primarily concentrated within central and northwest Pennsylvania, central and northeast Ohio, and western New York. The Bank attempts to limit concentrations within specific industries by utilizing dollar limitations to single industries or customers, and by entering into participation agreements with third parties. Collateral requirements are established based on management’s assessment of the customer. The Corporation maintains lending policies to control the quality of the loan portfolio. These policies delegate the authority to extend loans under specific guidelines and underwriting standards. These policies are prepared by the Corporation’s management and reviewed and ratified annually by the Corporation’s Board of Directors. Pursuant to the Corporation’s lending policies, management considers a variety of factors when determining whether to extend credit to a customer, including loan-to-value ratios, FICO scores, quality of the borrower’s financial statements, and the ability to obtain personal guarantees. Commercial, industrial, and agricultural loans comprised 38% and 37% of the Corporation’s total loan portfolio at September 30, 2019 and December 31, 2018 , respectively. Commercial mortgage loans comprised 29% and 28% of the Corporation’s total loan portfolio at September 30, 2019 and December 31, 2018 , respectively. Management assigns a risk rating to all commercial loans at loan origination. The loan-to-value policy guidelines for commercial, industrial, and agricultural loans are generally a maximum of 80% of the value of business equipment, a maximum of 70% of the value of accounts receivable, and a maximum of 60% of the value of business inventory at loan origination. The loan-to-value policy guideline for commercial mortgage loans is generally a maximum of 85% of the appraised value of the real estate. Residential real estate loans comprised 29% and 31% of the Corporation’s total loan portfolio at September 30, 2019 and December 31, 2018 , respectively. The loan-to-value policy guidelines for residential real estate loans vary depending on the collateral position and the specific type of loan. Higher loan-to-value terms may be approved with the appropriate private mortgage insurance coverage. The Corporation also originates and prices loans for sale into the secondary market. Loans so originated are classified as loans held for sale and are excluded from residential real estate loans reported above. The rationale for these sales is to mitigate interest rate risk associated with holding lower rate, long-term residential mortgages in the loan portfolio and to generate fee revenue from sales and servicing the loan. The Corporation also offers a variety of unsecured and secured consumer loan and credit card products which represented less than 5% of the total loan portfolio at both September 30, 2019 and December 31, 2018 . Terms and collateral requirements vary depending on the size and nature of the loan. Transactions in the allowance for loan losses for the three months ended September 30, 2019 were as follows: Commercial,Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, July 1, 2019 $ 8,108 $ 9,538 $ 1,403 $ 2,141 $ 87 $ 160 $ 21,437 Charge-offs (160 ) (2,650 ) (38 ) (547 ) (3 ) (113 ) (3,511 ) Recoveries 5 65 5 58 6 24 163 Provision (benefit) for loan losses 997 30 116 693 15 267 2,118 Allowance for loan losses, September 30, 2019 $ 8,950 $ 6,983 $ 1,486 $ 2,345 $ 105 $ 338 $ 20,207 Transactions in the allowance for loan losses for the nine months ended September 30, 2019 were as follows: Commercial,Industrial, Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, January 1, 2019 $ 7,341 $ 7,490 $ 2,156 $ 2,377 $ 103 $ 237 $ 19,704 Charge-offs (160 ) (2,652 ) (282 ) (1,609 ) (55 ) (329 ) (5,087 ) Recoveries 13 66 72 132 12 83 378 Provision (benefit) for loan losses 1,756 2,079 (460 ) 1,445 45 347 5,212 Allowance for loan losses, September 30, 2019 $ 8,950 $ 6,983 $ 1,486 $ 2,345 $ 105 $ 338 $ 20,207 Transactions in the allowance for loan losses for the three months ended September 30, 2018 were as follows: Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, July 1, 2018 $ 7,143 $ 10,615 $ 1,900 $ 2,156 $ 101 $ 207 $ 22,122 Charge-offs (30 ) 0 (212 ) (469 ) (8 ) (94 ) (813 ) Recoveries 3 0 55 28 3 17 106 Provision (benefit) for loan losses (536 ) 682 235 608 11 95 1,095 Allowance for loan losses, September 30, 2018 $ 6,580 $ 11,297 $ 1,978 $ 2,323 $ 107 $ 225 $ 22,510 Transactions in the allowance for loan losses for the nine months ended September 30, 2018 were as follows: Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, January 1, 2018 $ 6,160 $ 9,007 $ 2,033 $ 2,179 $ 120 $ 194 $ 19,693 Charge-offs (61 ) 0 (289 ) (1,610 ) (53 ) (236 ) (2,249 ) Recoveries 165 0 67 112 27 64 435 Provision (benefit) for loan losses 316 2,290 167 1,642 13 203 4,631 Allowance for loan losses, September 30, 2018 $ 6,580 $ 11,297 $ 1,978 $ 2,323 $ 107 $ 225 $ 22,510 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and is based on the Corporation’s impairment method as of September 30, 2019 and December 31, 2018 . The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance. September 30, 2019 Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 766 $ 2,054 $ 29 $ 0 $ 0 $ 0 $ 2,849 Collectively evaluated for impairment 8,148 4,405 1,457 2,345 105 338 16,798 Acquired with deteriorated credit quality 0 0 0 0 0 0 0 Modified in a troubled debt restructuring 36 524 0 0 0 0 560 Total ending allowance balance $ 8,950 $ 6,983 $ 1,486 $ 2,345 $ 105 $ 338 $ 20,207 Loans: Individually evaluated for impairment $ 2,898 $ 3,110 $ 489 $ 0 $ 0 $ 0 $ 6,497 Collectively evaluated for impairment 1,027,732 780,484 801,842 121,598 7,393 642 2,739,691 Acquired with deteriorated credit quality 0 534 0 0 0 0 534 Modified in a troubled debt restructuring 3,001 4,846 0 0 0 0 7,847 Total ending loans balance $ 1,033,631 $ 788,974 $ 802,331 $ 121,598 $ 7,393 $ 642 $ 2,754,569 December 31, 2018 Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 54 $ 4 $ 100 $ 0 $ 0 $ 10 $ 168 Collectively evaluated for impairment 7,183 3,036 2,056 2,377 103 227 14,982 Acquired with deteriorated credit quality 0 0 0 0 0 0 0 Modified in a troubled debt restructuring 104 4,450 0 0 0 0 4,554 Total ending allowance balance $ 7,341 $ 7,490 $ 2,156 $ 2,377 $ 103 $ 237 $ 19,704 Loans: Individually evaluated for impairment $ 1,334 $ 1,446 $ 502 $ 0 $ 0 $ 10 $ 3,292 Collectively evaluated for impairment 910,386 685,714 770,807 86,035 7,623 298 2,460,863 Acquired with deteriorated credit quality 0 567 0 0 0 0 567 Modified in a troubled debt restructuring 4,577 10,049 0 0 0 0 14,626 Total ending loans balance $ 916,297 $ 697,776 $ 771,309 $ 86,035 $ 7,623 $ 308 $ 2,479,348 The following tables present information related to loans individually evaluated for impairment, including loans modified in troubled debt restructurings, by portfolio segment as of September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 : September 30, 2019 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With an allowance recorded: Commercial, industrial, and agricultural $ 3,021 $ 1,691 $ 802 Commercial mortgage 8,055 6,258 2,578 Residential real estate 489 489 29 With no related allowance recorded: Commercial, industrial, and agricultural 5,258 4,208 0 Commercial mortgage 1,423 1,698 0 Residential real estate 0 0 0 Total $ 18,246 $ 14,344 $ 3,409 December 31, 2018 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With an allowance recorded: Commercial, industrial, and agricultural $ 3,053 $ 3,037 $ 158 Commercial mortgage 10,799 6,709 4,454 Residential real estate 502 502 100 Overdrafts 10 10 10 With no related allowance recorded: Commercial, industrial, and agricultural 3,684 2,874 0 Commercial mortgage 5,659 4,786 0 Residential real estate 0 0 0 Overdrafts 0 0 0 Total $ 23,707 $ 17,918 $ 4,722 The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been charged off. Three months ended September 30, 2019 Three months ended September 30, 2018 Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Interest Cash Basis With an allowance recorded: Commercial, industrial, and agricultural $ 1,480 $ 32 $ 32 $ 3,460 $ 11 $ 11 Commercial mortgage 7,024 12 12 9,042 37 37 Residential real estate 245 8 8 0 0 0 With no related allowance recorded: Commercial, industrial, and agricultural 3,977 42 42 5,569 69 69 Commercial mortgage 2,435 29 29 5,153 20 20 Residential real estate 236 0 0 0 0 0 Total $ 15,397 $ 123 $ 123 $ 23,224 $ 137 $ 137 Nine months ended September 30, 2019 Nine months ended September 30, 2018 Average Interest Cash Basis Average Interest Cash Basis With an allowance recorded: Commercial, industrial, and agricultural $ 1,819 $ 74 $ 74 $ 2,672 $ 54 $ 54 Commercial mortgage 7,145 100 100 9,147 111 111 Residential real estate 122 8 8 0 0 0 With no related allowance recorded: Commercial, industrial, and agricultural 3,676 128 128 5,084 160 160 Commercial mortgage 3,250 62 62 4,511 66 66 Residential real estate 368 11 11 0 0 0 Total $ 16,380 $ 383 $ 383 $ 21,414 $ 391 $ 391 The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still accruing interest by class of loans as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Nonaccrual Past Due Over 90 Days Still on Accrual Nonaccrual Past Due Over 90 Days Still on Accrual Commercial, industrial, and agricultural $ 3,994 $ 443 $ 2,076 $ 487 Commercial mortgages 5,299 0 6,329 53 Residential real estate 4,779 62 5,187 299 Consumer 737 0 670 43 Credit cards 0 45 0 5 Total $ 14,809 $ 550 $ 14,262 $ 887 Nonaccrual loans and loans past due over 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loans. September 30, 2019 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Loans Not Past Due Total Commercial, industrial, and agricultural $ 1,508 $ 2,041 $ 4,080 $ 7,629 $ 1,026,002 $ 1,033,631 Commercial mortgages 230 0 1,868 2,098 786,876 788,974 Residential real estate 2,759 759 2,415 5,933 796,398 802,331 Consumer 472 230 317 1,019 120,579 121,598 Credit cards 53 48 45 146 7,247 7,393 Overdrafts 0 0 0 0 642 642 Total $ 5,022 $ 3,078 $ 8,725 $ 16,825 $ 2,737,744 $ 2,754,569 December 31, 2018 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Loans Not Past Due Total Commercial, industrial, and agricultural $ 2,339 $ 9 $ 2,264 $ 4,612 $ 911,685 $ 916,297 Commercial mortgages 758 3,055 283 4,096 693,680 697,776 Residential real estate 3,982 1,257 3,988 9,227 762,082 771,309 Consumer 470 282 363 1,115 84,920 86,035 Credit cards 59 15 5 79 7,544 7,623 Overdrafts 0 0 0 0 308 308 Total $ 7,608 $ 4,618 $ 6,903 $ 19,129 $ 2,460,219 $ 2,479,348 Troubled Debt Restructurings The terms of certain loans have been modified as troubled debt restructurings. The modification of the terms of such loans included either or both of the following: a reduction of the stated interest rate of the loan or an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk. The following table presents the number of loans, loan balances, and specific reserves for loans that have been restructured in a troubled debt restructuring as of September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 Number of Loans Loan Balance Specific Reserve Number of Loans Loan Balance Specific Reserve Commercial, industrial, and agricultural 10 $ 3,197 $ 38 10 $ 4,577 $ 104 Commercial mortgages 13 7,002 536 15 10,049 4,450 Residential real estate 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Credit cards 0 0 0 0 0 0 Total 23 $ 10,199 $ 574 25 $ 14,626 $ 4,554 There was one loan modified as troubled debt restructurings during the three and nine months ended September 30, 2019 and four loans modified as troubled debt restructurings during the nine months ended September 30, 2018 . There were no loans modified as troubled debt restructurings during the three months ended September 30, 2018. Three and nine months ended Nine months ended September 30, 2018 Number of Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, industrial, and agricultural 0 $ 0 $ 0 0 $ 0 $ 0 Commercial mortgages 1 383 383 4 1,091 1,091 Residential real estate 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Credit cards 0 0 0 0 0 0 Total 1 $ 383 $ 383 4 $ 1,091 $ 1,091 A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. There were no loans modified as troubled debt restructurings for which there was a payment default within a twelve-month cycle following the modification during the period ended September 30, 2019 and September 30, 2018 . There were no principal balances forgiven in connection with the loan restructurings. In order to determine whether a borrower is experiencing financial difficulty, the Corporation evaluates the probability that the borrower will default on any of its debt payments in the foreseeable future without a loan modification. This evaluation is performed using the Corporation’s internal underwriting policies. The Corporation has no further loan commitments to customers whose loans are classified as a troubled debt restructuring. Generally, nonperforming troubled debt restructurings are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Credit Quality Indicators The Corporation classifies commercial, industrial, and agricultural loans and commercial mortgage loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Corporation’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not rated as special mention, substandard, or doubtful are considered to be pass rated loans. All loans included in the following tables have been assigned a risk rating within 12 months of the balance sheet date. September 30, 2019 Pass Special Mention Substandard Doubtful Total Commercial, industrial, and agricultural $ 997,103 $ 19,197 $ 17,331 $ 0 $ 1,033,631 Commercial mortgages 770,873 9,753 8,348 0 788,974 Total $ 1,767,976 $ 28,950 $ 25,679 $ 0 $ 1,822,605 December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial, industrial, and agricultural $ 890,360 $ 10,484 $ 15,453 $ 0 $ 916,297 Commercial mortgages 684,806 3,236 9,734 0 697,776 Total $ 1,575,166 $ 13,720 $ 25,187 $ 0 $ 1,614,073 The Corporation considers the performance of the loan portfolio and its impact on the allowance for loan losses. For residential real estate, consumer, and credit card loan classes, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential, consumer, and credit card loans based on payment activity as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Residential Real Estate Consumer Credit Cards Residential Real Estate Consumer Credit Cards Performing $ 797,490 $ 120,861 $ 7,348 $ 765,823 $ 85,322 $ 7,618 Nonperforming 4,841 737 45 5,486 713 5 Total $ 802,331 $ 121,598 $ 7,393 $ 771,309 $ 86,035 $ 7,623 The Corporation’s portfolio of residential real estate and consumer loans maintained within Holiday Financial Services Corporation (“Holiday”) are considered to be subprime loans. Holiday is a subsidiary that offers small balance unsecured and secured loans, primarily collateralized by automobiles and equipment, to borrowers with higher risk characteristics than are typical in the Bank’s consumer loan portfolio. Holiday’s loan portfolio is summarized as follows at September 30, 2019 and December 31, 2018 : 9/30/2019 12/31/2018 Consumer $ 27,664 $ 26,568 Less: unearned discount (5,067 ) (4,791 ) Total $ 22,597 $ 21,777 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS Total deposits at September 30, 2019 and December 31, 2018 are summarized as follows: 9/30/2019 12/31/2018 Percentage Checking, non-interest bearing $ 370,761 $ 356,797 3.9 % Checking, interest bearing 593,057 600,046 (1.2 )% Savings accounts 1,537,672 1,258,506 22.2 % Certificates of deposit 374,105 395,437 (5.4 )% Total $ 2,875,595 $ 2,610,786 10.1 % |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income, excluding net earnings allocated to participating securities, by the weighted average number of shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per share is computed using the weighted average number of shares determined for the basic computation plus the dilutive effect of potential common shares issuable under certain stock compensation plans. For the three and nine months ended September 30, 2019 and 2018 , there were no outstanding stock options to include in the diluted earnings per share calculations and the impact of performance based shares was immaterial. Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Corporation has determined that its outstanding unvested stock awards are participating securities. The computation of basic and diluted earnings per share is shown below: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Basic earnings per common share computation: Net income per consolidated statements of income $ 10,357 $ 9,236 $ 29,597 $ 24,774 Net earnings allocated to participating securities (37 ) (40 ) (114 ) (113 ) Net earnings allocated to common stock $ 10,320 $ 9,196 $ 29,483 $ 24,661 Distributed earnings allocated to common stock $ 2,573 $ 2,586 $ 7,734 $ 7,607 Undistributed earnings allocated to common stock 7,747 6,610 21,749 17,054 Net earnings allocated to common stock $ 10,320 $ 9,196 $ 29,483 $ 24,661 Weighted average common shares outstanding, including shares considered participating securities 15,197 15,285 15,218 15,281 Less: Average participating securities (51 ) (60 ) (58 ) (67 ) Weighted average shares 15,146 15,225 15,160 15,214 Basic earnings per common share $ 0.68 $ 0.60 $ 1.94 $ 1.62 Diluted earnings per common share computation: Net earnings allocated to common stock $ 10,320 $ 9,196 $ 29,483 $ 24,661 Weighted average common shares outstanding for basic earnings per common share 15,146 15,225 15,160 15,214 Add: Dilutive effects of assumed exercises of stock options 0 0 0 0 Weighted average shares and dilutive potential common shares 15,146 15,225 15,160 15,214 Diluted earnings per common share $ 0.68 $ 0.60 $ 1.94 $ 1.62 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS On September 7, 2018, the Corporation executed an interest rate swap agreement with a 5 -year term and an effective date of September 15, 2018 in order to hedge cash flows associated with $10 million of a subordinated note that was issued by the Corporation during 2007 and elected cash flow hedge accounting for the agreement. The Corporation’s objective in using this derivative is to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involves the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2018 to September 15, 2023 without the exchange of the underlying notional amount. At September 30, 2019 , the variable rate on the subordinated debt was 3.67% (LIBOR plus 155 basis points) and the Corporation was paying 4.53% ( 2.98% fixed rate plus 155 basis points). In order to hedge cash flows associated with $10 million of the subordinated note discussed above, on May 3, 2011, the Corporation executed an interest rate swap agreement with a 5 -year term and an effective date of September 15, 2013 that expired in September 2018. The Corporation’s objective in using this derivative was to add stability to interest expense and to manage its exposure to interest rate risk. The interest rate swap involved the receipt of variable-rate amounts in exchange for fixed-rate payments from September 15, 2013 to September 15, 2018 without exchange of the underlying notional amount. As of September 30, 2019 and December 31, 2018 , no derivatives were designated as fair value hedges or hedges of net investments in foreign operations. Additionally, the Corporation does not use derivatives for trading or speculative purposes and currently does not have any derivatives that are not designated as hedges. The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 : Fair value as of Balance Sheet Location September 30, 2019 December 31, 2018 Interest rate contracts Accrued interest and other liabilities $ (583 ) $ (201 ) For the Three Months (a) (b) (c) (d) (e) Interest rate contracts $ (45 ) Interest expense – $ (11 ) Other $ 0 For the Nine Months (a) (b) (c) (d) (e) Interest rate contracts $ (302 ) Interest expense – $ (31 ) Other $ 0 For the Three Months (a) (b) (c) (d) (e) Interest rate contracts $ 36 Interest expense – $ (44 ) Other $ 0 For the Nine Months (a) (b) (c) (d) (e) Interest rate contracts $ 134 Interest expense – $ (149 ) Other $ 0 (a) Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax (b) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) (c) Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) (d) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (e) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amounts reported in accumulated other comprehensive loss related to the interest rate swap will be reclassified to interest expense as interest payments are made on the subordinated debentures. Such amounts reclassified from accumulated other comprehensive loss to interest expense in the next twelve months are expected to be $86 . As of September 30, 2019 and December 31, 2018 , a cash collateral balance in the amount of $750 and $200 , respectively, was maintained with a counterparty to the interest rate swaps. These balances are included in interest bearing deposits with other banks on the consolidated balance sheet. The Corporation entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Corporation enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Corporation agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. Concurrently, the Corporation agrees 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 the Corporation’s customers to effectively convert a variable rate loan to a fixed rate. Because the Corporation acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not impact the Corporation’s results of operations. The Corporation pledged cash collateral to another financial institution with a balance $3,000 as of September 30, 2019 and $750 as of December 31, 2018 . This balance is included in interest bearing deposits with other banks on the consolidated balance sheets. The Corporation may require its customers to post cash or securities as collateral on its program of back-to-back swaps depending upon the specific facts and circumstances surrounding each loan and individual swap. In addition, certain language is included in the International Swaps and Derivatives Association agreement and loan documents where, in default situations, the Corporation is permitted to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Corporation may be required to post additional collateral to swap counterparties in the future in proportion to potential increases in unrealized loss positions. The following table provides information about the amounts and locations of activity related to the back-to-back interest rate swaps within the Corporation’s consolidated balance sheet as of September 30, 2019 and December 31, 2018 : Notional Amount Weighted Average Maturity (in years) Weighted Average Fixed Rate Weighted Average Variable Rate Fair Value September 30, 2019 3rd Party interest rate swaps $ 35,702 8.0 4.13 % 1 month LIBOR + 2.27% $ 2,572 (a) Customer interest rate swaps (35,702 ) 8.0 4.13 % 1 month LIBOR + 2.27% (2,572 ) (b) December 31, 2018 3rd Party interest rate swaps $ 23,152 7.2 3.85 % 1 month LIBOR + 2.24% $ 485 (a) Customer interest rate swaps (23,152 ) 7.2 3.85 % 1 month LIBOR + 2.24 (485 ) (b) (a) Reported in accrued interest receivable and other assets within the consolidated balance sheets (b) Reported in accrued interest payable and other liabilities within the consolidated balance sheets |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following table presents the Corporation's non-interest income by revenue stream and reportable segment for the three and nine months ended September 30, 2019 and 2018 . Items outside the scope of ASC 606 are noted as such. Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Non-interest Income Service charges on deposit accounts $ 1,676 $ 1,584 $ 4,726 $ 4,102 Wealth and asset management fees 1,238 1,031 3,482 3,151 Mortgage banking (1) 408 283 1,017 801 Card processing and interchange income 1,195 1,066 3,445 3,140 Net gains (losses) on sales of securities (1) 0 0 148 0 Other income 1,759 1,969 6,403 5,096 Total non-interest income $ 6,276 $ 5,933 $ 19,221 $ 16,290 (1) Not within scope of ASU 2014-9 Management determined that the primary sources of revenue emanating from interest and dividend income on loans and investment securities along with non-interest revenue resulting from security gains, loan servicing, gains on the sale of loans, commitment fees, fees from financial guarantees, certain credit card fees and gains (losses) on sale of other real estate owned not financed by the Corporation, are not within the scope of ASU 2014-9. As a result, no changes were made during the period related to these sources of revenue, which comprised 89.5% and 89.7% of the total revenue of the Corporation for the three and nine months ended September 30, 2019 and 89.0% and 88.9% for the three and nine months ended September 30, 2018 , respectively. The types of non-interest income within the scope of the standard that are material to the consolidated financial statements are services charges on deposit accounts, wealth and asset management fee income, card processing and interchange income, and other income. Service charges on deposit accounts : The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed, as that is the point in time the Corporation fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Services charges on deposits are withdrawn from the customer’s account balance. Wealth and asset management fees : The Corporation earns wealth and asset management fees from its contracts with trust and brokerage customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management at month end. Fees for these services are billed to customers on a monthly or quarterly basis and are recorded as revenue at the end of the period for which the wealth and asset management services have been performed. Other performance obligations, such as the delivery of account statements to customers, are generally considered immaterial to the overall transaction price. Card processing and interchange income : The Corporation earns interchange fees from check card and credit card transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Other income : The Corporation's other income includes sources such as bank owned life insurance, certain service fees, gains (losses) on sales of fixed assets, and gains (losses) on sale of other real estate owned. The service fees are recognized in the same manner as the service charges mentioned above. While gains on the sale of other real estate owned are generally within the scope of ASU 2014-9, the Corporation does not finance the sale of transactions and as such there is no change in revenue recognition. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES As of January 1, 2019, the Corporation adopted certain accounting standard updates related to accounting for leases (Topic 842 - Leases), primarily ASU 2016-02 and subsequent updates. This guidance requires a lessee to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model. The Corporation adopted the provisions of ASU 2016-02 on January 1, 2019, and elected several practical expedients made available by the FASB. Specifically, the Corporation elected the transition practical expedient to not recast comparative periods upon the adoption of the new guidance. In addition, the Corporation elected to apply certain practical adoption expedients provided under the updates whereby we did not reassess (1) whether any expired or existing contracts are or contain leases, (2) the lease classification for any expired or existing leases and (3) initial direct costs for any existing leases. As a result, the Corporation recognized approximately $12.5 million of right of use assets, approximately $800 thousand in prepaid rent, and $13.3 million of related lease liabilities as of January 1, 2019. Operating lease assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate at the lease commencement date. Operating lease cost, which is comprised of amortization of the operating lease asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the consolidated statements of income. The Corporation leases certain full-serve branch offices, land and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet. Most leases include one or more options to renew and the exercise of the lease renewal options are at the Corporation's sole discretion. Certain lease agreements of the Corporation include rental payments adjusted periodically for changes in the consumer price index. Leases Classification September 30, 2019 Assets: Operating lease assets Operating lease assets $ 16,837 Finance lease assets Premises and equipment, net (1) 519 Total leased assets $ 17,356 Liabilities: Operating lease liabilities Operating lease liabilities $ 17,696 Finance lease liabilities Accrued interest payable and other liabilities 648 Total leased liabilities $ 18,344 (1) Finance lease assets are recorded net of accumulated amortization of $697 as of September 30, 2019 . The components of the Corporation's net lease expense for the three and nine months ended September 30, 2019 were as follows: Three months ended September 30, Nine months ended September 30, Lease Cost Classification 2019 2019 Operating lease cost Net occupancy expense $ 423 $ 1,228 Variable lease cost Net occupancy expense 33 82 Finance lease cost: Amortization of leased assets Net occupancy expense 18 54 Interest on lease liabilities Interest expense - borrowed funds 7 23 Sublease income (1) Net occupancy expense (21 ) (62 ) Net lease cost $ 460 $ 1,325 (1) Sublease income excludes rental income from owned properties. The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of September 30, 2019 : Maturity of Lease Liabilities as of September 30, 2019 Operating Leases (1) Finance Leases Total 2019 $ 339 $ 26 $ 365 2020 1,430 105 1,535 2021 1,483 105 1,588 2022 1,538 105 1,643 2023 1,458 105 1,563 After 2023 17,932 315 18,247 Total lease payments 24,180 761 24,941 Less: Interest 6,484 113 6,597 Present value of lease liabilities $ 17,696 $ 648 $ 18,344 (1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $3,173 of legally binding minimum lease payments for leases signed, but not yet commenced. Other information related to the Corporation's lease liabilities as of the nine months ended September 30, 2019 was as follows: Lease Term and Discount Rate September 30, 2019 Weighted-average remaining lease term (years) Operating leases 16.9 Finance leases 7.3 Weighted-average discount rate Operating leases 3.60 % Finance leases 4.54 % Other Information September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 557 Leased assets obtained in exchange from new operating lease liabilities 17,674 |
Contingency
Contingency | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingency | CONTINGENCY On March 28, 2018, the Corporation received a notice of assessment from the Pennsylvania Department of Revenue that reported a sales tax assessment amount of $824 plus interest and penalties of $339 resulting in a total assessed balance of $1,163 . The notice of assessment covers the period from January 1, 2013 through July 31, 2016. The Corporation has evaluated the specific items on which sales tax has been assessed in conjunction with its legal counsel and has determined that it is probable that the Corporation has some liability based on a review of the Pennsylvania tax laws that apply to the assessed items. The Corporation’s reasonable estimate of this liability and the cumulative expense that has been recorded as of September 30, 2019 is $246 , of which $96 was reported in state and local tax expense in the consolidated statement of income during the year ended December 31, 2018. The remainder of the total assessed balance of $1,163 that has not been accrued relates primarily to sales tax assessments associated with data processing and banking equipment maintenance, which the Corporation’s management and legal counsel have concluded were improperly assessed based on current Pennsylvania sales tax law. The Corporation appealed the notice of assessment to the Pennsylvania Board of Appeals and the appeal was denied. The Corporation is in the process of appealing the assessment to the Pennsylvania Board of Finance and Revenue. The ultimate resolution of this matter, which may take in excess of one year, could result in an additional expense up to the total amount assessed. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued an update (ASU 2016-13, Financial Instruments – Credit Losses) which will require recognition of an entity’s current estimate of all expected credit losses for assets measured at amortized cost. The amendments in ASU 2016-13 eliminate the probable initial recognition threshold in current GAAP. In addition, the amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually, such as loans. The update will be effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, "Codification Improvements to Topic 326, Financial Instruments – Credit Losses." The amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, "Leases." In April 2019, ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” was issued to address certain codification improvements and to provide certain accounting policy electives related to accrued interest as well as disclosure related to credit losses, among other things. In May 2019, ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief,” was issued to provide transition relief in connection with the adoption of ASU 2016-03 whereby entities would have the option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. The Corporation has formed a committee comprised of individuals from different disciplines, including credit administration, finance, commercial lending, loan servicing and information technology, to evaluate the requirements of the new standard and the impact it will have on current processes. Management continues to work through their implementation plan, including parallel testing, documentation of processes and internal controls and policy development with the assistance of third-parties. In addition, management has engaged a third-party to perform a model validation. The new guidance is expected to be heavily influenced by an assessment of the composition, characteristics and credit quality of the Corporation's loan and investment securities portfolio, as well as the economic conditions in effect at the adoption date. The impact to the financial statements is yet to be determined. In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 amends ASC 715-20, "Compensation - Retirement Benefits - Defined Benefit Plans - General." The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income ("OCI") expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The update will be effective for annual reporting periods beginning after December 15, 2020, with early adoption permitted for annual reporting periods beginning after December 15, 2019. Management is currently evaluating the impact of the adoption of ASU 2018-14 on the Corporation’s footnote disclosures included in the financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies disclosure requirements on fair value measurements based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The update will be effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. Management is currently evaluating the impact of the adoption of ASU 2018-13 on the Corporation’s footnote disclosures included in the financial statements. In March 2019, the FASB issued an amendment (ASU 2019-01, Leases (Topic 842) Codification Improvements) which provides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, ASU 2019-01 (i) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. The amendment will be effective for annual reporting periods beginning after December 15, 2019. Management does not expect the adoption of ASU 2019-01 will have any material impact on the Corporation’s financial statements. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued an update (ASU 2016-13, Financial Instruments – Credit Losses) which will require recognition of an entity’s current estimate of all expected credit losses for assets measured at amortized cost. The amendments in ASU 2016-13 eliminate the probable initial recognition threshold in current GAAP. In addition, the amendments in ASU 2016-13 broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually, such as loans. The update will be effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, "Codification Improvements to Topic 326, Financial Instruments – Credit Losses." The amendment clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20 and should be accounted for in accordance with Topic 842, "Leases." In April 2019, ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” was issued to address certain codification improvements and to provide certain accounting policy electives related to accrued interest as well as disclosure related to credit losses, among other things. In May 2019, ASU 2019-05, “Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief,” was issued to provide transition relief in connection with the adoption of ASU 2016-03 whereby entities would have the option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. The Corporation has formed a committee comprised of individuals from different disciplines, including credit administration, finance, commercial lending, loan servicing and information technology, to evaluate the requirements of the new standard and the impact it will have on current processes. Management continues to work through their implementation plan, including parallel testing, documentation of processes and internal controls and policy development with the assistance of third-parties. In addition, management has engaged a third-party to perform a model validation. The new guidance is expected to be heavily influenced by an assessment of the composition, characteristics and credit quality of the Corporation's loan and investment securities portfolio, as well as the economic conditions in effect at the adoption date. The impact to the financial statements is yet to be determined. In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 amends ASC 715-20, "Compensation - Retirement Benefits - Defined Benefit Plans - General." The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income ("OCI") expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The update will be effective for annual reporting periods beginning after December 15, 2020, with early adoption permitted for annual reporting periods beginning after December 15, 2019. Management is currently evaluating the impact of the adoption of ASU 2018-14 on the Corporation’s footnote disclosures included in the financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies disclosure requirements on fair value measurements based on the concepts in the Concepts Statement, including the consideration of costs and benefits. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The update will be effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. Management is currently evaluating the impact of the adoption of ASU 2018-13 on the Corporation’s footnote disclosures included in the financial statements. In March 2019, the FASB issued an amendment (ASU 2019-01, Leases (Topic 842) Codification Improvements) which provides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, ASU 2019-01 (i) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. The amendment will be effective for annual reporting periods beginning after December 15, 2019. Management does not expect the adoption of ASU 2019-01 will have any material impact on the Corporation’s financial statements. |
Stock Compensation (Tables)
Stock Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Changes in Nonvested Restricted Stock Awards | A summary of changes in time-based nonvested restricted stock awards for the three months ended September 30, 2019 follows: Shares Per Share Weighted Average Grant Date Fair Value Nonvested at beginning of period 64,158 $ 24.87 Forfeited (2,699 ) 24.85 Vested (639 ) 23.53 Nonvested at end of period 60,820 $ 24.88 A summary of changes in time-based nonvested restricted stock awards for the nine months ended September 30, 2019 follows: Shares Per Share Weighted Average Grant Date Fair Value Nonvested at beginning of period 75,889 $ 23.20 Granted 25,940 25.27 Forfeited (2,699 ) 24.85 Vested (38,310 ) 21.79 Nonvested at end of period 60,820 $ 24.88 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are as follows at September 30, 2019 and December 31, 2018 : Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Securities Available For Sale: U.S. Government sponsored entities $ 138,768 $ 0 $ 138,768 $ 0 States and political subdivisions 115,064 0 115,064 0 Residential and multi-family mortgage 240,966 0 240,966 0 Corporate notes and bonds 7,003 0 7,003 0 Pooled SBA 27,101 0 27,101 0 Other 965 965 0 0 Total Securities Available For Sale $ 529,867 $ 965 $ 528,902 $ 0 Interest Rate swaps $ 2,572 $ 0 $ 2,572 $ 0 Trading Securities: Corporate equity securities $ 7,259 $ 7,259 $ 0 $ 0 Mutual funds 911 911 0 0 Certificates of deposit 210 210 0 0 Corporate notes and bonds 657 657 0 0 U.S. Government sponsored entities 51 0 51 0 Total Trading Securities $ 9,088 $ 9,037 $ 51 $ 0 Liabilities: Interest rate swaps $ (3,155 ) $ 0 $ (3,155 ) $ 0 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Securities Available For Sale: U.S. Government sponsored entities $ 132,694 $ 0 $ 132,694 $ 0 States and political subdivisions 136,031 0 136,031 0 Residential and multi-family mortgage 206,053 0 206,053 0 Corporate notes and bonds 11,777 0 11,777 0 Pooled SBA 29,374 0 29,374 0 Other 934 934 0 0 Total Securities Available For Sale $ 516,863 $ 934 $ 515,929 $ 0 Interest Rate swaps $ 485 $ 0 $ 485 $ 0 Trading Securities: Corporate equity securities $ 5,828 $ 5,828 $ 0 $ 0 Mutual funds 1,058 1,058 0 0 Certificates of deposit 268 268 0 0 Corporate notes and bonds 581 581 0 0 U.S. Government sponsored entities 51 0 51 0 Total Trading Securities $ 7,786 $ 7,735 $ 51 $ 0 Liabilities: Interest rate swaps $ (686 ) $ 0 $ (686 ) $ 0 |
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | Assets and liabilities measured at fair value on a non-recurring basis are as follows at September 30, 2019 and December 31, 2018 : Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Commercial, industrial, and agricultural $ 687 0 0 $ 687 Commercial mortgages $ 1,089 0 0 $ 1,089 Fair Value Measurements at December 31, 2018 Using Quoted Prices in Significant Active Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Description Total (Level 1) (Level 2) (Level 3) Assets: Impaired loans: Commercial, industrial, and agricultural $ 2,055 0 0 $ 2,055 Commercial mortgages $ 679 0 0 $ 679 |
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2019 : Fair value Valuation Technique Unobservable Inputs Range (Weighted Average) Impaired loans – commercial, industrial, and agricultural $687 Valuation of third party appraisal on underlying collateral Loss severity rates 48%-61% (54%) Impaired loans – commercial mortgages $1,089 Valuation of third party appraisal on underlying collateral Loss severity rates 25-100% (58%) The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2018 : Fair value Valuation Technique Unobservable Inputs Range (Weighted Average) Impaired loans – commercial, industrial, and agricultural $2,055 Valuation of third party appraisal on underlying collateral Loss severity rates 20%-60% (34%) Impaired loans – commercial mortgages $679 Valuation of third party appraisal on underlying collateral Loss severity rates 15%-39% (33%) |
Carrying Amount and Fair Value of Financial Instruments | The following table presents the carrying amount and fair value of financial instruments at September 30, 2019 : Carrying Fair Value Measurement Using: Total Amount Level 1 Level 2 Level 3 Fair Value ASSETS Cash and cash equivalents $ 52,161 $ 52,161 $ 0 $ 0 $ 52,161 Securities available for sale 529,867 965 528,902 0 529,867 Trading securities 9,088 9,037 51 0 9,088 Loans held for sale 1,279 0 1,282 0 1,282 Net loans 2,729,295 0 0 2,705,463 2,705,463 FHLB and other restricted interests 24,901 n/a n/a n/a n/a Interest rate swaps 2,572 0 2,572 0 2,572 Accrued interest receivable 11,679 6 3,486 8,187 11,679 LIABILITIES Deposits $ (2,875,595 ) $ (2,501,490 ) $ (374,987 ) $ 0 $ (2,876,477 ) FHLB and other borrowings (248,101 ) 0 (252,312 ) 0 (252,312 ) Subordinated debentures (70,620 ) 0 (64,382 ) 0 (64,382 ) Interest rate swaps (3,155 ) 0 (3,155 ) 0 (3,155 ) Accrued interest payable (1,712 ) 0 (1,712 ) 0 (1,712 ) The following table presents the carrying amount and fair value of financial instruments at December 31, 2018 : Carrying Fair Value Measurement Using: Total Amount Level 1 Level 2 Level 3 Fair Value ASSETS Cash and cash equivalents $ 45,563 $ 45,563 $ 0 $ 0 $ 45,563 Securities available for sale 516,863 934 515,929 0 516,863 Trading securities 7,786 7,735 51 0 7,786 Loans held for sale 367 0 368 0 368 Net loans 2,454,853 0 0 2,433,417 2,433,417 FHLB and other restricted interests 24,508 n/a n/a n/a n/a Interest rate swaps 485 0 485 0 485 Accrued interest receivable 10,843 6 3,368 7,469 10,843 LIABILITIES Deposits $ (2,610,786 ) $ (2,215,349 ) $ (397,370 ) $ 0 $ (2,612,719 ) FHLB and other borrowings (245,117 ) 0 (242,592 ) 0 (242,592 ) Subordinated debentures (70,620 ) 0 (65,794 ) 0 (65,794 ) Interest rate swaps (686 ) 0 (686 ) 0 (686 ) Accrued interest payable (1,349 ) 0 (1,349 ) 0 (1,349 ) |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities available for sale at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Amortized Unrealized Fair Amortized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value U.S. Gov’t sponsored entities $ 135,215 $ 3,620 $ (67 ) $ 138,768 $ 134,010 $ 254 $ (1,570 ) $ 132,694 State & political subdivisions 111,468 3,687 (91 ) 115,064 134,662 1,942 (573 ) 136,031 Residential & multi-family mortgage 236,241 5,362 (637 ) 240,966 209,126 500 (3,573 ) 206,053 Corporate notes & bonds 7,350 14 (361 ) 7,003 12,356 22 (601 ) 11,777 Pooled SBA 26,810 361 (70 ) 27,101 30,163 135 (924 ) 29,374 Other 1,020 0 (55 ) 965 1,020 0 (86 ) 934 Total $ 518,104 $ 13,044 $ (1,281 ) $ 529,867 $ 521,337 $ 2,853 $ (7,327 ) $ 516,863 |
Trading Securities | Trading securities at September 30, 2019 and December 31, 2018 are as follows: September 30, 2019 December 31, 2018 Corporate equity securities $ 7,259 $ 5,828 Mutual funds 911 1,058 Certificates of deposit 210 268 Corporate notes and bonds 657 581 U.S. Government sponsored entities 51 51 Total $ 9,088 $ 7,786 |
Securities with Unrealized Losses Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position | Securities with unrealized losses at September 30, 2019 and December 31, 2018 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: September 30, 2019 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Gov’t sponsored entities $ 9,045 $ (7 ) $ 23,954 $ (60 ) $ 32,999 $ (67 ) State & political subdivisions 0 0 714 (91 ) 714 (91 ) Residential & multi-family mortgage 15,527 (67 ) 35,984 (570 ) 51,511 (637 ) Corporate notes & bonds 0 0 4,639 (361 ) 4,639 (361 ) Pooled SBA 9,118 (20 ) 6,576 (50 ) 15,694 (70 ) Other 0 0 965 (55 ) 965 (55 ) $ 33,690 $ (94 ) $ 72,832 $ (1,187 ) $ 106,522 $ (1,281 ) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Gov’t sponsored entities $ 14,786 $ (41 ) $ 70,676 $ (1,529 ) $ 85,462 $ (1,570 ) State & political subdivisions 13,834 (62 ) 21,080 (511 ) 34,914 (573 ) Residential & multi-family mortgage 69,015 (656 ) 87,286 (2,917 ) 156,301 (3,573 ) Corporate notes & bonds 0 0 9,759 (601 ) 9,759 (601 ) Pooled SBA 760 (7 ) 20,795 (917 ) 21,555 (924 ) Other 0 0 934 (86 ) 934 (86 ) $ 98,395 $ (766 ) $ 210,530 $ (6,561 ) $ 308,925 $ (7,327 ) |
Information Pertaining to Security Sales | Information pertaining to security sales on available for sale securities is as follows: Proceeds Gross Gains Gross Losses Three months ended September 30, 2019 $ 0 $ 0 $ 0 Three months ended September 30, 2018 $ 0 $ 0 $ 0 Nine months ended September 30, 2019 $ 11,403 $ 152 $ 4 Nine months ended September 30, 2018 $ 0 $ 0 $ 0 |
Schedule of Contractual Maturity of Securities Available for Sale, Excluding Equity Securities | The following is a schedule of the contractual maturity of securities available for sale at September 30, 2019 : Amortized Cost Fair Value 1 year or less $ 71,463 $ 71,468 1 year – 5 years 108,190 110,168 5 years – 10 years 68,636 73,242 After 10 years 5,744 5,957 254,033 260,835 Residential and multi-family mortgage 236,241 240,966 Pooled SBA 26,810 27,101 Other 1,020 965 Total debt securities $ 518,104 $ 529,867 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Net Loans | Total net loans at September 30, 2019 and December 31, 2018 are summarized as follows: September 30, 2019 December 31, 2018 Commercial, industrial, and agricultural $ 1,033,631 $ 916,297 Commercial mortgages 788,974 697,776 Residential real estate 802,331 771,309 Consumer 121,598 86,035 Credit cards 7,393 7,623 Overdrafts 642 308 Less: unearned discount (5,067 ) (4,791 ) allowance for loan losses (20,207 ) (19,704 ) Loans, net $ 2,729,295 $ 2,454,853 |
Allowance for Loan Losses | Transactions in the allowance for loan losses for the three months ended September 30, 2019 were as follows: Commercial,Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, July 1, 2019 $ 8,108 $ 9,538 $ 1,403 $ 2,141 $ 87 $ 160 $ 21,437 Charge-offs (160 ) (2,650 ) (38 ) (547 ) (3 ) (113 ) (3,511 ) Recoveries 5 65 5 58 6 24 163 Provision (benefit) for loan losses 997 30 116 693 15 267 2,118 Allowance for loan losses, September 30, 2019 $ 8,950 $ 6,983 $ 1,486 $ 2,345 $ 105 $ 338 $ 20,207 Transactions in the allowance for loan losses for the nine months ended September 30, 2019 were as follows: Commercial,Industrial, Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, January 1, 2019 $ 7,341 $ 7,490 $ 2,156 $ 2,377 $ 103 $ 237 $ 19,704 Charge-offs (160 ) (2,652 ) (282 ) (1,609 ) (55 ) (329 ) (5,087 ) Recoveries 13 66 72 132 12 83 378 Provision (benefit) for loan losses 1,756 2,079 (460 ) 1,445 45 347 5,212 Allowance for loan losses, September 30, 2019 $ 8,950 $ 6,983 $ 1,486 $ 2,345 $ 105 $ 338 $ 20,207 Transactions in the allowance for loan losses for the three months ended September 30, 2018 were as follows: Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, July 1, 2018 $ 7,143 $ 10,615 $ 1,900 $ 2,156 $ 101 $ 207 $ 22,122 Charge-offs (30 ) 0 (212 ) (469 ) (8 ) (94 ) (813 ) Recoveries 3 0 55 28 3 17 106 Provision (benefit) for loan losses (536 ) 682 235 608 11 95 1,095 Allowance for loan losses, September 30, 2018 $ 6,580 $ 11,297 $ 1,978 $ 2,323 $ 107 $ 225 $ 22,510 Transactions in the allowance for loan losses for the nine months ended September 30, 2018 were as follows: Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses, January 1, 2018 $ 6,160 $ 9,007 $ 2,033 $ 2,179 $ 120 $ 194 $ 19,693 Charge-offs (61 ) 0 (289 ) (1,610 ) (53 ) (236 ) (2,249 ) Recoveries 165 0 67 112 27 64 435 Provision (benefit) for loan losses 316 2,290 167 1,642 13 203 4,631 Allowance for loan losses, September 30, 2018 $ 6,580 $ 11,297 $ 1,978 $ 2,323 $ 107 $ 225 $ 22,510 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and is based on the Corporation’s impairment method as of September 30, 2019 and December 31, 2018 . The recorded investment in loans excludes accrued interest and unearned discounts due to their insignificance. September 30, 2019 Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 766 $ 2,054 $ 29 $ 0 $ 0 $ 0 $ 2,849 Collectively evaluated for impairment 8,148 4,405 1,457 2,345 105 338 16,798 Acquired with deteriorated credit quality 0 0 0 0 0 0 0 Modified in a troubled debt restructuring 36 524 0 0 0 0 560 Total ending allowance balance $ 8,950 $ 6,983 $ 1,486 $ 2,345 $ 105 $ 338 $ 20,207 Loans: Individually evaluated for impairment $ 2,898 $ 3,110 $ 489 $ 0 $ 0 $ 0 $ 6,497 Collectively evaluated for impairment 1,027,732 780,484 801,842 121,598 7,393 642 2,739,691 Acquired with deteriorated credit quality 0 534 0 0 0 0 534 Modified in a troubled debt restructuring 3,001 4,846 0 0 0 0 7,847 Total ending loans balance $ 1,033,631 $ 788,974 $ 802,331 $ 121,598 $ 7,393 $ 642 $ 2,754,569 December 31, 2018 Commercial, Industrial, and Agricultural Commercial Mortgages Residential Real Estate Consumer Credit Cards Overdrafts Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 54 $ 4 $ 100 $ 0 $ 0 $ 10 $ 168 Collectively evaluated for impairment 7,183 3,036 2,056 2,377 103 227 14,982 Acquired with deteriorated credit quality 0 0 0 0 0 0 0 Modified in a troubled debt restructuring 104 4,450 0 0 0 0 4,554 Total ending allowance balance $ 7,341 $ 7,490 $ 2,156 $ 2,377 $ 103 $ 237 $ 19,704 Loans: Individually evaluated for impairment $ 1,334 $ 1,446 $ 502 $ 0 $ 0 $ 10 $ 3,292 Collectively evaluated for impairment 910,386 685,714 770,807 86,035 7,623 298 2,460,863 Acquired with deteriorated credit quality 0 567 0 0 0 0 567 Modified in a troubled debt restructuring 4,577 10,049 0 0 0 0 14,626 Total ending loans balance $ 916,297 $ 697,776 $ 771,309 $ 86,035 $ 7,623 $ 308 $ 2,479,348 |
Loans Individually Evaluated for Impairment Including Loans Modified in Troubled Debt Restructurings by Portfolio Segment | The following tables present information related to loans individually evaluated for impairment, including loans modified in troubled debt restructurings, by portfolio segment as of September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 : September 30, 2019 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With an allowance recorded: Commercial, industrial, and agricultural $ 3,021 $ 1,691 $ 802 Commercial mortgage 8,055 6,258 2,578 Residential real estate 489 489 29 With no related allowance recorded: Commercial, industrial, and agricultural 5,258 4,208 0 Commercial mortgage 1,423 1,698 0 Residential real estate 0 0 0 Total $ 18,246 $ 14,344 $ 3,409 December 31, 2018 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With an allowance recorded: Commercial, industrial, and agricultural $ 3,053 $ 3,037 $ 158 Commercial mortgage 10,799 6,709 4,454 Residential real estate 502 502 100 Overdrafts 10 10 10 With no related allowance recorded: Commercial, industrial, and agricultural 3,684 2,874 0 Commercial mortgage 5,659 4,786 0 Residential real estate 0 0 0 Overdrafts 0 0 0 Total $ 23,707 $ 17,918 $ 4,722 |
Impaired Financing Receivables with Related and not Related Allowances | The unpaid principal balance of impaired loans includes the Corporation’s recorded investment in the loan and amounts that have been charged off. Three months ended September 30, 2019 Three months ended September 30, 2018 Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Interest Cash Basis With an allowance recorded: Commercial, industrial, and agricultural $ 1,480 $ 32 $ 32 $ 3,460 $ 11 $ 11 Commercial mortgage 7,024 12 12 9,042 37 37 Residential real estate 245 8 8 0 0 0 With no related allowance recorded: Commercial, industrial, and agricultural 3,977 42 42 5,569 69 69 Commercial mortgage 2,435 29 29 5,153 20 20 Residential real estate 236 0 0 0 0 0 Total $ 15,397 $ 123 $ 123 $ 23,224 $ 137 $ 137 Nine months ended September 30, 2019 Nine months ended September 30, 2018 Average Interest Cash Basis Average Interest Cash Basis With an allowance recorded: Commercial, industrial, and agricultural $ 1,819 $ 74 $ 74 $ 2,672 $ 54 $ 54 Commercial mortgage 7,145 100 100 9,147 111 111 Residential real estate 122 8 8 0 0 0 With no related allowance recorded: Commercial, industrial, and agricultural 3,676 128 128 5,084 160 160 Commercial mortgage 3,250 62 62 4,511 66 66 Residential real estate 368 11 11 0 0 0 Total $ 16,380 $ 383 $ 383 $ 21,414 $ 391 $ 391 |
Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans | The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still accruing interest by class of loans as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Nonaccrual Past Due Over 90 Days Still on Accrual Nonaccrual Past Due Over 90 Days Still on Accrual Commercial, industrial, and agricultural $ 3,994 $ 443 $ 2,076 $ 487 Commercial mortgages 5,299 0 6,329 53 Residential real estate 4,779 62 5,187 299 Consumer 737 0 670 43 Credit cards 0 45 0 5 Total $ 14,809 $ 550 $ 14,262 $ 887 |
Aging of Recorded Investment in Past Due Loans | The following table presents the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loans. September 30, 2019 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Loans Not Past Due Total Commercial, industrial, and agricultural $ 1,508 $ 2,041 $ 4,080 $ 7,629 $ 1,026,002 $ 1,033,631 Commercial mortgages 230 0 1,868 2,098 786,876 788,974 Residential real estate 2,759 759 2,415 5,933 796,398 802,331 Consumer 472 230 317 1,019 120,579 121,598 Credit cards 53 48 45 146 7,247 7,393 Overdrafts 0 0 0 0 642 642 Total $ 5,022 $ 3,078 $ 8,725 $ 16,825 $ 2,737,744 $ 2,754,569 December 31, 2018 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Loans Not Past Due Total Commercial, industrial, and agricultural $ 2,339 $ 9 $ 2,264 $ 4,612 $ 911,685 $ 916,297 Commercial mortgages 758 3,055 283 4,096 693,680 697,776 Residential real estate 3,982 1,257 3,988 9,227 762,082 771,309 Consumer 470 282 363 1,115 84,920 86,035 Credit cards 59 15 5 79 7,544 7,623 Overdrafts 0 0 0 0 308 308 Total $ 7,608 $ 4,618 $ 6,903 $ 19,129 $ 2,460,219 $ 2,479,348 |
Restructured in Troubled Debt | Three and nine months ended Nine months ended September 30, 2018 Number of Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial, industrial, and agricultural 0 $ 0 $ 0 0 $ 0 $ 0 Commercial mortgages 1 383 383 4 1,091 1,091 Residential real estate 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Credit cards 0 0 0 0 0 0 Total 1 $ 383 $ 383 4 $ 1,091 $ 1,091 The following table presents the number of loans, loan balances, and specific reserves for loans that have been restructured in a troubled debt restructuring as of September 30, 2019 and December 31, 2018 . September 30, 2019 December 31, 2018 Number of Loans Loan Balance Specific Reserve Number of Loans Loan Balance Specific Reserve Commercial, industrial, and agricultural 10 $ 3,197 $ 38 10 $ 4,577 $ 104 Commercial mortgages 13 7,002 536 15 10,049 4,450 Residential real estate 0 0 0 0 0 0 Consumer 0 0 0 0 0 0 Credit cards 0 0 0 0 0 0 Total 23 $ 10,199 $ 574 25 $ 14,626 $ 4,554 |
Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date | September 30, 2019 Pass Special Mention Substandard Doubtful Total Commercial, industrial, and agricultural $ 997,103 $ 19,197 $ 17,331 $ 0 $ 1,033,631 Commercial mortgages 770,873 9,753 8,348 0 788,974 Total $ 1,767,976 $ 28,950 $ 25,679 $ 0 $ 1,822,605 December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial, industrial, and agricultural $ 890,360 $ 10,484 $ 15,453 $ 0 $ 916,297 Commercial mortgages 684,806 3,236 9,734 0 697,776 Total $ 1,575,166 $ 13,720 $ 25,187 $ 0 $ 1,614,073 |
Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity | The following table presents the recorded investment in residential, consumer, and credit card loans based on payment activity as of September 30, 2019 and December 31, 2018 : September 30, 2019 December 31, 2018 Residential Real Estate Consumer Credit Cards Residential Real Estate Consumer Credit Cards Performing $ 797,490 $ 120,861 $ 7,348 $ 765,823 $ 85,322 $ 7,618 Nonperforming 4,841 737 45 5,486 713 5 Total $ 802,331 $ 121,598 $ 7,393 $ 771,309 $ 86,035 $ 7,623 |
Summary of Holiday's Loan Portfolio | Holiday’s loan portfolio is summarized as follows at September 30, 2019 and December 31, 2018 : 9/30/2019 12/31/2018 Consumer $ 27,664 $ 26,568 Less: unearned discount (5,067 ) (4,791 ) Total $ 22,597 $ 21,777 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Total Deposits | Total deposits at September 30, 2019 and December 31, 2018 are summarized as follows: 9/30/2019 12/31/2018 Percentage Checking, non-interest bearing $ 370,761 $ 356,797 3.9 % Checking, interest bearing 593,057 600,046 (1.2 )% Savings accounts 1,537,672 1,258,506 22.2 % Certificates of deposit 374,105 395,437 (5.4 )% Total $ 2,875,595 $ 2,610,786 10.1 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is shown below: Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Basic earnings per common share computation: Net income per consolidated statements of income $ 10,357 $ 9,236 $ 29,597 $ 24,774 Net earnings allocated to participating securities (37 ) (40 ) (114 ) (113 ) Net earnings allocated to common stock $ 10,320 $ 9,196 $ 29,483 $ 24,661 Distributed earnings allocated to common stock $ 2,573 $ 2,586 $ 7,734 $ 7,607 Undistributed earnings allocated to common stock 7,747 6,610 21,749 17,054 Net earnings allocated to common stock $ 10,320 $ 9,196 $ 29,483 $ 24,661 Weighted average common shares outstanding, including shares considered participating securities 15,197 15,285 15,218 15,281 Less: Average participating securities (51 ) (60 ) (58 ) (67 ) Weighted average shares 15,146 15,225 15,160 15,214 Basic earnings per common share $ 0.68 $ 0.60 $ 1.94 $ 1.62 Diluted earnings per common share computation: Net earnings allocated to common stock $ 10,320 $ 9,196 $ 29,483 $ 24,661 Weighted average common shares outstanding for basic earnings per common share 15,146 15,225 15,160 15,214 Add: Dilutive effects of assumed exercises of stock options 0 0 0 0 Weighted average shares and dilutive potential common shares 15,146 15,225 15,160 15,214 Diluted earnings per common share $ 0.68 $ 0.60 $ 1.94 $ 1.62 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amounts and Locations of Activity Related to Interest Rate Swaps Designated as Cash Flow Hedges within Corporation's Consolidated Balance Sheet and Statement of Income | The following tables provide information about the amounts and locations of activity related to the interest rate swaps designated as cash flow hedges within the Corporation’s consolidated balance sheet and statement of income as of September 30, 2019 and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 : Fair value as of Balance Sheet Location September 30, 2019 December 31, 2018 Interest rate contracts Accrued interest and other liabilities $ (583 ) $ (201 ) For the Three Months (a) (b) (c) (d) (e) Interest rate contracts $ (45 ) Interest expense – $ (11 ) Other $ 0 For the Nine Months (a) (b) (c) (d) (e) Interest rate contracts $ (302 ) Interest expense – $ (31 ) Other $ 0 For the Three Months (a) (b) (c) (d) (e) Interest rate contracts $ 36 Interest expense – $ (44 ) Other $ 0 For the Nine Months (a) (b) (c) (d) (e) Interest rate contracts $ 134 Interest expense – $ (149 ) Other $ 0 (a) Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax (b) Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) (c) Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) (d) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) (e) Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) |
Amounts and Locations of Activity Related to Back-to-Back Interest Rate Swaps within Corporation's Consolidated Balance Sheet | The following table provides information about the amounts and locations of activity related to the back-to-back interest rate swaps within the Corporation’s consolidated balance sheet as of September 30, 2019 and December 31, 2018 : Notional Amount Weighted Average Maturity (in years) Weighted Average Fixed Rate Weighted Average Variable Rate Fair Value September 30, 2019 3rd Party interest rate swaps $ 35,702 8.0 4.13 % 1 month LIBOR + 2.27% $ 2,572 (a) Customer interest rate swaps (35,702 ) 8.0 4.13 % 1 month LIBOR + 2.27% (2,572 ) (b) December 31, 2018 3rd Party interest rate swaps $ 23,152 7.2 3.85 % 1 month LIBOR + 2.24% $ 485 (a) Customer interest rate swaps (23,152 ) 7.2 3.85 % 1 month LIBOR + 2.24 (485 ) (b) (a) Reported in accrued interest receivable and other assets within the consolidated balance sheets (b) Reported in accrued interest payable and other liabilities within the consolidated balance sheets |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue Derived from Contracts with Customers | The following table presents the Corporation's non-interest income by revenue stream and reportable segment for the three and nine months ended September 30, 2019 and 2018 . Items outside the scope of ASC 606 are noted as such. Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Non-interest Income Service charges on deposit accounts $ 1,676 $ 1,584 $ 4,726 $ 4,102 Wealth and asset management fees 1,238 1,031 3,482 3,151 Mortgage banking (1) 408 283 1,017 801 Card processing and interchange income 1,195 1,066 3,445 3,140 Net gains (losses) on sales of securities (1) 0 0 148 0 Other income 1,759 1,969 6,403 5,096 Total non-interest income $ 6,276 $ 5,933 $ 19,221 $ 16,290 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule Of Operating And Finance Lease Liabilities | Leases Classification September 30, 2019 Assets: Operating lease assets Operating lease assets $ 16,837 Finance lease assets Premises and equipment, net (1) 519 Total leased assets $ 17,356 Liabilities: Operating lease liabilities Operating lease liabilities $ 17,696 Finance lease liabilities Accrued interest payable and other liabilities 648 Total leased liabilities $ 18,344 (1) Finance lease assets are recorded net of accumulated amortization of $697 as of September 30, 2019 . |
Schedule Of Lease Cost | Other Information September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 557 Leased assets obtained in exchange from new operating lease liabilities 17,674 The components of the Corporation's net lease expense for the three and nine months ended September 30, 2019 were as follows: Three months ended September 30, Nine months ended September 30, Lease Cost Classification 2019 2019 Operating lease cost Net occupancy expense $ 423 $ 1,228 Variable lease cost Net occupancy expense 33 82 Finance lease cost: Amortization of leased assets Net occupancy expense 18 54 Interest on lease liabilities Interest expense - borrowed funds 7 23 Sublease income (1) Net occupancy expense (21 ) (62 ) Net lease cost $ 460 $ 1,325 (1) Sublease income excludes rental income from owned properties. |
Finance Lease, Liability, Maturity | The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of September 30, 2019 : Maturity of Lease Liabilities as of September 30, 2019 Operating Leases (1) Finance Leases Total 2019 $ 339 $ 26 $ 365 2020 1,430 105 1,535 2021 1,483 105 1,588 2022 1,538 105 1,643 2023 1,458 105 1,563 After 2023 17,932 315 18,247 Total lease payments 24,180 761 24,941 Less: Interest 6,484 113 6,597 Present value of lease liabilities $ 17,696 $ 648 $ 18,344 (1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $3,173 of legally binding minimum lease payments for leases signed, but not yet commenced. |
Lessee, Operating Lease, Liability, Maturity | The following table sets forth future minimum rental payments under noncancelable leases with terms in excess of one year as of September 30, 2019 : Maturity of Lease Liabilities as of September 30, 2019 Operating Leases (1) Finance Leases Total 2019 $ 339 $ 26 $ 365 2020 1,430 105 1,535 2021 1,483 105 1,588 2022 1,538 105 1,643 2023 1,458 105 1,563 After 2023 17,932 315 18,247 Total lease payments 24,180 761 24,941 Less: Interest 6,484 113 6,597 Present value of lease liabilities $ 17,696 $ 648 $ 18,344 (1) Operating lease payments include payments related to options to extend lease terms that are reasonably certain of being exercised and exclude $3,173 of legally binding minimum lease payments for leases signed, but not yet commenced. |
Schedule of Weighted Average Lease Term and Discount Rate | Other information related to the Corporation's lease liabilities as of the nine months ended September 30, 2019 was as follows: Lease Term and Discount Rate September 30, 2019 Weighted-average remaining lease term (years) Operating leases 16.9 Finance leases 7.3 Weighted-average discount rate Operating leases 3.60 % Finance leases 4.54 % Other Information September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 557 Leased assets obtained in exchange from new operating lease liabilities 17,674 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to nonvested stock options granted | $ 0 | $ 0 | $ 0 | $ 0 | ||
Shares, granted (in shares) | 0 | 0 | ||||
Shares vested (in shares) | 639 | 38,310 | ||||
Compensation expense restricted stock awards | $ 242,000 | $ 269,000 | $ 1,109,000 | 1,218,000 | ||
Vested, shares (in shares) | 25,940 | |||||
Weighted average grant (in dollars per share) | $ 25.27 | |||||
Fair value of shares vesting during period | $ 18,000 | 8,000 | $ 1,346,000 | 1,479,000 | ||
Performance Based Restricted Stock Awards | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares, granted (in shares) | 16,681 | 15,657 | 7,109 | |||
2019 PBRSA | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested (in shares) | 241 | |||||
2018 PBRSA | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested (in shares) | 557 | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to nonvested restricted stock | $ 640,000 | $ 640,000 | $ 775,000 | |||
Income tax benefit related to share based compensation | 51,000 | $ 56,000 | 233,000 | $ 256,000 | ||
Restricted Stock Units (RSUs) | Vested Immediately | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense restricted stock awards | $ 0 | $ 350,000 | ||||
Key Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Starting period of vesting of stock based award | 1 year | |||||
Aggregate percentage of stock based awards to be matured | 100.00% | |||||
Key Employees | Vesting in year two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock incentive plan, vesting per year | 25.00% | |||||
Key Employees | Vesting in year three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock incentive plan, vesting per year | 20.00% | |||||
Independent Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Starting period of vesting of stock based award | 1 year | |||||
Aggregate percentage of stock based awards to be matured | 100.00% | |||||
Independent Directors | Vesting in year one | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock incentive plan, vesting per year | 33.33% | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested, shares (in shares) | 13,850 | |||||
Weighted average grant (in dollars per share) | $ 25.27 |
Stock Compensation - Summary of
Stock Compensation - Summary of Changes in Time-based Nonvested Restricted Stock Awards (Details) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Shares | ||
Nonvested at beginning of period, Shares (in shares) | 64,158 | 75,889 |
Forfeited, shares (in shares) | (2,699) | (2,699) |
Granted, shares (in shares) | 25,940 | |
Vested, Shares (in shares) | (639) | (38,310) |
Nonvested at end of period, Shares (in shares) | 60,820 | 60,820 |
Per Share Weighted Average Grant Date Fair Value | ||
Nonvested at beginning of period, Weighted-average Grant Date Fair Value (in dollars per share) | $ 24.87 | $ 23.20 |
Forfeited, Weighted-average Grant Date Fair Value (in dollars per share) | 24.85 | 24.85 |
Granted, Weighted-average Grant Date Fair Value (in dollars per share) | 25.27 | |
Vested, Weighted-average Grant Date Fair Value (in dollars per share) | 23.53 | 21.79 |
Nonvested at end of period, Weighted-average Grant Date Fair Value (in dollars per share) | $ 24.88 | $ 24.88 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities Available For Sale: | ||
Total Securities Available For Sale | $ 529,867 | $ 516,863 |
Fair Value Measurement on Recurring Basis | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 529,867 | 516,863 |
Interest Rate swaps | 2,572 | 485 |
Trading Securities: | ||
Total Trading Securities | 9,088 | 7,786 |
Liabilities: | ||
Interest rate swaps | (3,155) | (686) |
Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 965 | 934 |
Interest Rate swaps | 0 | 0 |
Trading Securities: | ||
Total Trading Securities | 9,037 | 7,735 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 528,902 | 515,929 |
Interest Rate swaps | 2,572 | 485 |
Trading Securities: | ||
Total Trading Securities | 51 | 51 |
Liabilities: | ||
Interest rate swaps | (3,155) | (686) |
Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Interest Rate swaps | 0 | 0 |
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
U.S. Government sponsored entities | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 138,768 | 132,694 |
U.S. Government sponsored entities | Fair Value Measurement on Recurring Basis | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 138,768 | 132,694 |
Trading Securities: | ||
Total Trading Securities | 51 | 51 |
U.S. Government sponsored entities | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
U.S. Government sponsored entities | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 138,768 | 132,694 |
Trading Securities: | ||
Total Trading Securities | 51 | 51 |
U.S. Government sponsored entities | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
State & political subdivisions | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 115,064 | 136,031 |
State & political subdivisions | Fair Value Measurement on Recurring Basis | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 115,064 | 136,031 |
State & political subdivisions | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
State & political subdivisions | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 115,064 | 136,031 |
State & political subdivisions | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Residential and multi-family mortgage | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 240,966 | 206,053 |
Residential and multi-family mortgage | Fair Value Measurement on Recurring Basis | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 240,966 | 206,053 |
Residential and multi-family mortgage | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Residential and multi-family mortgage | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 240,966 | 206,053 |
Residential and multi-family mortgage | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Corporate notes and bonds | Fair Value Measurement on Recurring Basis | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 7,003 | 11,777 |
Corporate notes and bonds | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Corporate notes and bonds | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 7,003 | 11,777 |
Corporate notes and bonds | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Pooled SBA | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 27,101 | 29,374 |
Pooled SBA | Fair Value Measurement on Recurring Basis | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 27,101 | 29,374 |
Pooled SBA | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Pooled SBA | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 27,101 | 29,374 |
Pooled SBA | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Other | Fair Value Measurement on Recurring Basis | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 965 | 934 |
Other | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 965 | 934 |
Other | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Other | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 0 | 0 |
Corporate equity securities | Fair Value Measurement on Recurring Basis | ||
Trading Securities: | ||
Total Trading Securities | 7,259 | 5,828 |
Corporate equity securities | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Trading Securities: | ||
Total Trading Securities | 7,259 | 5,828 |
Corporate equity securities | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Corporate equity securities | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Mutual funds | Fair Value Measurement on Recurring Basis | ||
Trading Securities: | ||
Total Trading Securities | 911 | 1,058 |
Mutual funds | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Trading Securities: | ||
Total Trading Securities | 911 | 1,058 |
Mutual funds | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Mutual funds | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Certificates of deposit | Fair Value Measurement on Recurring Basis | ||
Trading Securities: | ||
Total Trading Securities | 210 | 268 |
Certificates of deposit | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Trading Securities: | ||
Total Trading Securities | 210 | 268 |
Certificates of deposit | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Certificates of deposit | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Corporate notes & bonds | ||
Securities Available For Sale: | ||
Total Securities Available For Sale | 7,003 | 11,777 |
Corporate notes & bonds | Fair Value Measurement on Recurring Basis | ||
Trading Securities: | ||
Total Trading Securities | 657 | 581 |
Corporate notes & bonds | Fair Value Measurement on Recurring Basis | Quoted Prices in Active Markets for Identical Assets | ||
Trading Securities: | ||
Total Trading Securities | 657 | 581 |
Corporate notes & bonds | Fair Value Measurement on Recurring Basis | Significant Other Observable Inputs | ||
Trading Securities: | ||
Total Trading Securities | 0 | 0 |
Corporate notes & bonds | Fair Value Measurement on Recurring Basis | Significant Unobservable Inputs | ||
Trading Securities: | ||
Total Trading Securities | $ 0 | $ 0 |
Fair Value - Assets and Liabi_2
Fair Value - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commercial, industrial, and agricultural | ||
Impaired loans: | ||
Assets, fair value disclosure | $ 687 | $ 2,055 |
Commercial, industrial, and agricultural | Quoted Prices in Active Markets for Identical Assets | ||
Impaired loans: | ||
Assets, fair value disclosure | 0 | 0 |
Commercial, industrial, and agricultural | Significant Other Observable Inputs | ||
Impaired loans: | ||
Assets, fair value disclosure | 0 | 0 |
Commercial, industrial, and agricultural | Significant Unobservable Inputs | ||
Impaired loans: | ||
Assets, fair value disclosure | 687 | 2,055 |
Commercial mortgages | ||
Impaired loans: | ||
Assets, fair value disclosure | 1,089 | 679 |
Commercial mortgages | Quoted Prices in Active Markets for Identical Assets | ||
Impaired loans: | ||
Assets, fair value disclosure | 0 | 0 |
Commercial mortgages | Significant Other Observable Inputs | ||
Impaired loans: | ||
Assets, fair value disclosure | 0 | 0 |
Commercial mortgages | Significant Unobservable Inputs | ||
Impaired loans: | ||
Assets, fair value disclosure | $ 1,089 | $ 679 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Impaired loans, recorded investment | $ 14,344 | $ 17,918 |
Impaired loans allowance | $ 3,409 | $ 4,722 |
Fair Value - Quantitative Infor
Fair Value - Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Significant Unobservable Inputs $ in Thousands | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Commercial, industrial, and agricultural | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 687 | $ 2,055 |
Commercial mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 1,089 | $ 679 |
Measurement Input, Loss Severity | Commercial, industrial, and agricultural | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.48 | 0.20 |
Measurement Input, Loss Severity | Commercial, industrial, and agricultural | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.61 | 0.6 |
Measurement Input, Loss Severity | Commercial, industrial, and agricultural | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.54 | 0.34 |
Measurement Input, Loss Severity | Commercial mortgages | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.25 | |
Measurement Input, Loss Severity | Commercial mortgages | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.15 | |
Measurement Input, Loss Severity | Commercial mortgages | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 1 | 0.39 |
Measurement Input, Loss Severity | Commercial mortgages | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement input | 0.58 | 0.33 |
Fair Value - Carrying Amount an
Fair Value - Carrying Amount and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Securities available for sale | $ 529,867 | $ 516,863 |
Carrying Amount | ||
ASSETS | ||
Cash and cash equivalents | 52,161 | 45,563 |
Securities available for sale | 529,867 | 516,863 |
Trading securities | 9,088 | 7,786 |
Loans held for sale | 1,279 | 367 |
Net loans | 2,729,295 | 2,454,853 |
FHLB and other restricted interests | 24,901 | 24,508 |
Interest rate swaps | 2,572 | 485 |
Accrued interest receivable | 11,679 | 10,843 |
LIABILITIES | ||
Deposits | (2,875,595) | (2,610,786) |
FHLB and other borrowings | (248,101) | (245,117) |
Subordinated debentures | (70,620) | (70,620) |
Interest rate swaps | (3,155) | (686) |
Accrued interest payable | (1,712) | (1,349) |
Total Fair Value | ||
ASSETS | ||
Cash and cash equivalents | 52,161 | 45,563 |
Securities available for sale | 529,867 | 516,863 |
Trading securities | 9,088 | 7,786 |
Loans held for sale | 1,282 | 368 |
Net loans | 2,705,463 | 2,433,417 |
Interest rate swaps | 2,572 | 485 |
Accrued interest receivable | 11,679 | 10,843 |
LIABILITIES | ||
Deposits | (2,876,477) | (2,612,719) |
FHLB and other borrowings | (252,312) | (242,592) |
Subordinated debentures | (64,382) | (65,794) |
Interest rate swaps | (3,155) | (686) |
Accrued interest payable | (1,712) | (1,349) |
Quoted Prices in Active Markets for Identical Assets | Total Fair Value | ||
ASSETS | ||
Cash and cash equivalents | 52,161 | 45,563 |
Securities available for sale | 965 | 934 |
Trading securities | 9,037 | 7,735 |
Loans held for sale | 0 | 0 |
Net loans | 0 | 0 |
Interest rate swaps | 0 | 0 |
Accrued interest receivable | 6 | 6 |
LIABILITIES | ||
Deposits | (2,501,490) | (2,215,349) |
FHLB and other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Interest rate swaps | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs | Total Fair Value | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 528,902 | 515,929 |
Trading securities | 51 | 51 |
Loans held for sale | 1,282 | 368 |
Net loans | 0 | 0 |
Interest rate swaps | 2,572 | 485 |
Accrued interest receivable | 3,486 | 3,368 |
LIABILITIES | ||
Deposits | (374,987) | (397,370) |
FHLB and other borrowings | (252,312) | (242,592) |
Subordinated debentures | (64,382) | (65,794) |
Interest rate swaps | (3,155) | (686) |
Accrued interest payable | (1,712) | (1,349) |
Significant Unobservable Inputs | Total Fair Value | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Trading securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Net loans | 2,705,463 | 2,433,417 |
Interest rate swaps | 0 | 0 |
Accrued interest receivable | 8,187 | 7,469 |
LIABILITIES | ||
Deposits | 0 | 0 |
FHLB and other borrowings | 0 | 0 |
Subordinated debentures | 0 | 0 |
Interest rate swaps | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Securities - Securities Availab
Securities - Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized cost | ||
Total debt securities | $ 518,104 | $ 521,337 |
Unrealized Gains (Losses) | ||
Accumulated gross unrealized gain, before tax | 13,044 | 2,853 |
Accumulated gross unrealized loss, before tax | (1,281) | (7,327) |
Amortized Cost | ||
Securities available for sale | 529,867 | 516,863 |
U.S. Gov’t sponsored entities | ||
Amortized cost | ||
Total debt securities | 135,215 | 134,010 |
Unrealized Gains (Losses) | ||
Accumulated gross unrealized gain, before tax | 3,620 | 254 |
Accumulated gross unrealized loss, before tax | (67) | (1,570) |
Amortized Cost | ||
Securities available for sale | 138,768 | 132,694 |
State & political subdivisions | ||
Amortized cost | ||
Total debt securities | 111,468 | 134,662 |
Unrealized Gains (Losses) | ||
Accumulated gross unrealized gain, before tax | 3,687 | 1,942 |
Accumulated gross unrealized loss, before tax | (91) | (573) |
Amortized Cost | ||
Securities available for sale | 115,064 | 136,031 |
Residential & multi-family mortgage | ||
Amortized cost | ||
Total debt securities | 236,241 | 209,126 |
Unrealized Gains (Losses) | ||
Accumulated gross unrealized gain, before tax | 5,362 | 500 |
Accumulated gross unrealized loss, before tax | (637) | (3,573) |
Amortized Cost | ||
Securities available for sale | 240,966 | 206,053 |
Corporate notes & bonds | ||
Amortized cost | ||
Total debt securities | 7,350 | 12,356 |
Unrealized Gains (Losses) | ||
Accumulated gross unrealized gain, before tax | 14 | 22 |
Accumulated gross unrealized loss, before tax | (361) | (601) |
Amortized Cost | ||
Securities available for sale | 7,003 | 11,777 |
Pooled SBA | ||
Amortized cost | ||
Total debt securities | 26,810 | 30,163 |
Unrealized Gains (Losses) | ||
Accumulated gross unrealized gain, before tax | 361 | 135 |
Accumulated gross unrealized loss, before tax | (70) | (924) |
Amortized Cost | ||
Securities available for sale | 27,101 | 29,374 |
Other | ||
Amortized cost | ||
Total debt securities | 1,020 | 1,020 |
Unrealized Gains (Losses) | ||
Accumulated gross unrealized gain, before tax | 0 | 0 |
Accumulated gross unrealized loss, before tax | (55) | (86) |
Amortized Cost | ||
Securities available for sale | $ 965 | $ 934 |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019USD ($)security | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Number of securities holdings | security | 0 | 0 | 0 |
Shareholders' equity percentage (greater than) | 10.00% | 10.00% | 10.00% |
Tax provision related to net realized gains | $ 0 | $ 31 | |
Collateral Pledged | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Debt securities, trading, restricted | $ 257,233 | $ 257,233 | $ 290,717 |
Securities - Trading Securities
Securities - Trading Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 9,088 | $ 7,786 |
Corporate equity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 7,259 | 5,828 |
Mutual funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 911 | 1,058 |
Certificates of deposit | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 210 | 268 |
Corporate notes and bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | 657 | 581 |
U.S. Gov’t sponsored entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Trading securities | $ 51 | $ 51 |
Securities - Securities with Un
Securities - Securities with Unrealized Losses Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Less than 12 Months | ||
Fair Value | $ 33,690 | $ 98,395 |
Unrealized Loss | (94) | (766) |
12 Months or More | ||
Fair Value | 72,832 | 210,530 |
Unrealized Loss | (1,187) | (6,561) |
Fair Value | 106,522 | 308,925 |
Unrealized Loss | (1,281) | (7,327) |
U.S. Gov’t sponsored entities | ||
Less than 12 Months | ||
Fair Value | 9,045 | 14,786 |
Unrealized Loss | (7) | (41) |
12 Months or More | ||
Fair Value | 23,954 | 70,676 |
Unrealized Loss | (60) | (1,529) |
Fair Value | 32,999 | 85,462 |
Unrealized Loss | (67) | (1,570) |
State & political subdivisions | ||
Less than 12 Months | ||
Fair Value | 0 | 13,834 |
Unrealized Loss | 0 | (62) |
12 Months or More | ||
Fair Value | 714 | 21,080 |
Unrealized Loss | (91) | (511) |
Fair Value | 714 | 34,914 |
Unrealized Loss | (91) | (573) |
Residential & multi-family mortgage | ||
Less than 12 Months | ||
Fair Value | 15,527 | 69,015 |
Unrealized Loss | (67) | (656) |
12 Months or More | ||
Fair Value | 35,984 | 87,286 |
Unrealized Loss | (570) | (2,917) |
Fair Value | 51,511 | 156,301 |
Unrealized Loss | (637) | (3,573) |
Corporate notes & bonds | ||
Less than 12 Months | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
12 Months or More | ||
Fair Value | 4,639 | 9,759 |
Unrealized Loss | (361) | (601) |
Fair Value | 4,639 | 9,759 |
Unrealized Loss | (361) | (601) |
Pooled SBA | ||
Less than 12 Months | ||
Fair Value | 9,118 | 760 |
Unrealized Loss | (20) | (7) |
12 Months or More | ||
Fair Value | 6,576 | 20,795 |
Unrealized Loss | (50) | (917) |
Fair Value | 15,694 | 21,555 |
Unrealized Loss | (70) | (924) |
Other | ||
Less than 12 Months | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
12 Months or More | ||
Fair Value | 965 | 934 |
Unrealized Loss | (55) | (86) |
Fair Value | 965 | 934 |
Unrealized Loss | $ (55) | $ (86) |
Securities - Information Pertai
Securities - Information Pertaining to Security Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 0 | $ 0 | $ 11,403 | $ 0 |
Gross Gains | 0 | 0 | 152 | 0 |
Gross Losses | $ 0 | $ 0 | $ 4 | $ 0 |
Securities - Schedule of Contra
Securities - Schedule of Contractual Maturity of Securities Available for Sale, Excluding Equity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
1 year or less | $ 71,463 | |
1 year – 5 years | 108,190 | |
5 years – 10 years | 68,636 | |
After 10 years | 5,744 | |
Total, Amortized Cost | 254,033 | |
Total debt securities | 518,104 | $ 521,337 |
Fair Value | ||
1 year or less | 71,468 | |
1 year – 5 years | 110,168 | |
5 years – 10 years | 73,242 | |
After 10 years | 5,957 | |
Total, Fair Value | 260,835 | |
Total debt securities | 529,867 | 516,863 |
Residential and multi-family mortgage | ||
Amortized Cost | ||
Mortgage & asset backed securities, Amortized Cost | 236,241 | |
Fair Value | ||
Mortgage & asset backed securities, Fair Value | 240,966 | |
Pooled SBA | ||
Amortized Cost | ||
Mortgage & asset backed securities, Amortized Cost | 26,810 | |
Total debt securities | 26,810 | 30,163 |
Fair Value | ||
Mortgage & asset backed securities, Fair Value | 27,101 | |
Total debt securities | 27,101 | 29,374 |
Other | ||
Amortized Cost | ||
Mortgage & asset backed securities, Amortized Cost | 1,020 | |
Total debt securities | 1,020 | 1,020 |
Fair Value | ||
Mortgage & asset backed securities, Fair Value | 965 | |
Total debt securities | $ 965 | $ 934 |
Loans - Schedule of Net Loans (
Loans - Schedule of Net Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loan Portfolio By Loan Grade [Line Items] | ||
Loans and leases receivable, gross | $ 2,754,569 | $ 2,479,348 |
Less: unearned discount | (5,067) | (4,791) |
allowance for loan losses | (20,207) | (19,704) |
Net loans | 2,729,295 | 2,454,853 |
Commercial, industrial, and agricultural | ||
Loan Portfolio By Loan Grade [Line Items] | ||
Loans and leases receivable, gross | 1,033,631 | 916,297 |
Net loans | 1,033,631 | 916,297 |
Commercial mortgages | ||
Loan Portfolio By Loan Grade [Line Items] | ||
Loans and leases receivable, gross | 788,974 | 697,776 |
Net loans | 788,974 | 697,776 |
Residential real estate | ||
Loan Portfolio By Loan Grade [Line Items] | ||
Loans and leases receivable, gross | 802,331 | 771,309 |
Consumer | ||
Loan Portfolio By Loan Grade [Line Items] | ||
Loans and leases receivable, gross | 121,598 | 86,035 |
Credit cards | ||
Loan Portfolio By Loan Grade [Line Items] | ||
Loans and leases receivable, gross | 7,393 | 7,623 |
Overdrafts | ||
Loan Portfolio By Loan Grade [Line Items] | ||
Loans and leases receivable, gross | $ 642 | $ 308 |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net unamortized loan fees | $ 3,447,000 | $ 3,447,000 | $ 3,175,000 | ||
Percentage of comprised loan, commercial, industrial and agricultural loans | 38.00% | 38.00% | 37.00% | ||
Percentage of comprised loan, commercial mortgage loans | 29.00% | 29.00% | 28.00% | ||
Percentage of loan-to-value to business equipment | 80.00% | ||||
Percentage of loan-to-value to accounts receivable | 70.00% | ||||
Percentage of loan-to-value to business inventory | 60.00% | ||||
Percentage of loan-to-value to real estate | 85.00% | ||||
Percentage of residential real estate loan in portfolio | 29.00% | 29.00% | 31.00% | ||
Minimum period to be considered for loan to have defaulted | 90 days | 90 days | |||
Loans modified as troubled debt restructuring with subsequent defaults | loan | 0 | 0 | |||
Principal balances forgiven in connection with loan restructuring | $ 0 | $ 0 | $ 0 | ||
Number of loans, period of time | loan | 1 | 1 | 4 | ||
Modified in a troubled debt restructuring | $ 10,199,000 | $ 10,199,000 | $ 14,626,000 | ||
Financing receivable, allowance for credit losses, w-downs | $ 3,511,000 | $ 813,000 | $ 5,087,000 | $ 2,249,000 | |
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Maximum percentage of consumer loan and credit card in portfolio | 5.00% | 5.00% | 4.00% |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, Beginning Balance | $ 21,437 | $ 22,122 | $ 19,704 | $ 19,693 |
Charge-offs | (3,511) | (813) | (5,087) | (2,249) |
Recoveries | 163 | 106 | 378 | 435 |
Provision (benefit) for loan losses | 2,118 | 1,095 | 5,212 | 4,631 |
Allowance for loan losses, Ending Balance | 20,207 | 22,510 | 20,207 | 22,510 |
Commercial, industrial, and agricultural | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, Beginning Balance | 8,108 | 7,143 | 7,341 | 6,160 |
Charge-offs | (160) | (30) | (160) | (61) |
Recoveries | 5 | 3 | 13 | 165 |
Provision (benefit) for loan losses | 997 | (536) | 1,756 | 316 |
Allowance for loan losses, Ending Balance | 8,950 | 6,580 | 8,950 | 6,580 |
Commercial Mortgages | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, Beginning Balance | 9,538 | 10,615 | 7,490 | 9,007 |
Charge-offs | (2,650) | 0 | (2,652) | 0 |
Recoveries | 65 | 0 | 66 | 0 |
Provision (benefit) for loan losses | 30 | 682 | 2,079 | 2,290 |
Allowance for loan losses, Ending Balance | 6,983 | 11,297 | 6,983 | 11,297 |
Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, Beginning Balance | 1,403 | 1,900 | 2,156 | 2,033 |
Charge-offs | (38) | (212) | (282) | (289) |
Recoveries | 5 | 55 | 72 | 67 |
Provision (benefit) for loan losses | 116 | 235 | (460) | 167 |
Allowance for loan losses, Ending Balance | 1,486 | 1,978 | 1,486 | 1,978 |
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, Beginning Balance | 2,141 | 2,156 | 2,377 | 2,179 |
Charge-offs | (547) | (469) | (1,609) | (1,610) |
Recoveries | 58 | 28 | 132 | 112 |
Provision (benefit) for loan losses | 693 | 608 | 1,445 | 1,642 |
Allowance for loan losses, Ending Balance | 2,345 | 2,323 | 2,345 | 2,323 |
Credit cards | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, Beginning Balance | 87 | 101 | 103 | 120 |
Charge-offs | (3) | (8) | (55) | (53) |
Recoveries | 6 | 3 | 12 | 27 |
Provision (benefit) for loan losses | 15 | 11 | 45 | 13 |
Allowance for loan losses, Ending Balance | 105 | 107 | 105 | 107 |
Overdrafts | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for loan losses, Beginning Balance | 160 | 207 | 237 | 194 |
Charge-offs | (113) | (94) | (329) | (236) |
Recoveries | 24 | 17 | 83 | 64 |
Provision (benefit) for loan losses | 267 | 95 | 347 | 203 |
Allowance for loan losses, Ending Balance | $ 338 | $ 225 | $ 338 | $ 225 |
Loans - Allowance for Loan Lo_2
Loans - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | $ 2,849 | $ 168 | ||||
Collectively evaluated for impairment | 16,798 | 14,982 | ||||
Modified in a troubled debt restructuring | 560 | 4,554 | ||||
Total ending allowance balance | 20,207 | $ 21,437 | 19,704 | $ 22,510 | $ 22,122 | $ 19,693 |
Loans: | ||||||
Individually evaluated for impairment | 6,497 | 3,292 | ||||
Collectively evaluated for impairment | 2,739,691 | 2,460,863 | ||||
Modified in a troubled debt restructuring, collective pool | 7,847 | |||||
Modified in a troubled debt restructuring | 10,199 | 14,626 | ||||
Total ending loans balance | 2,754,569 | 2,479,348 | ||||
Acquired with deteriorated credit quality | ||||||
Ending allowance balance attributable to loans: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total ending loans balance | 534 | 567 | ||||
Commercial, Industrial, and Agricultural | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 766 | 54 | ||||
Collectively evaluated for impairment | 8,148 | 7,183 | ||||
Modified in a troubled debt restructuring | 36 | 104 | ||||
Total ending allowance balance | 8,950 | 8,108 | 7,341 | 6,580 | 7,143 | 6,160 |
Loans: | ||||||
Individually evaluated for impairment | 2,898 | 1,334 | ||||
Collectively evaluated for impairment | 1,027,732 | 910,386 | ||||
Modified in a troubled debt restructuring, collective pool | 3,001 | |||||
Modified in a troubled debt restructuring | 3,197 | 4,577 | ||||
Total ending loans balance | 1,033,631 | 916,297 | ||||
Commercial, Industrial, and Agricultural | Acquired with deteriorated credit quality | ||||||
Ending allowance balance attributable to loans: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total ending loans balance | 0 | 0 | ||||
Commercial mortgages | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 2,054 | 4 | ||||
Collectively evaluated for impairment | 4,405 | 3,036 | ||||
Modified in a troubled debt restructuring | 524 | 4,450 | ||||
Total ending allowance balance | 6,983 | 9,538 | 7,490 | 11,297 | 10,615 | 9,007 |
Loans: | ||||||
Individually evaluated for impairment | 3,110 | 1,446 | ||||
Collectively evaluated for impairment | 780,484 | 685,714 | ||||
Modified in a troubled debt restructuring, collective pool | 4,846 | |||||
Modified in a troubled debt restructuring | 7,002 | 10,049 | ||||
Total ending loans balance | 788,974 | 697,776 | ||||
Commercial mortgages | Acquired with deteriorated credit quality | ||||||
Ending allowance balance attributable to loans: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total ending loans balance | 534 | 567 | ||||
Residential Real Estate | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 29 | 100 | ||||
Collectively evaluated for impairment | 1,457 | 2,056 | ||||
Modified in a troubled debt restructuring | 0 | 0 | ||||
Total ending allowance balance | 1,486 | 1,403 | 2,156 | 1,978 | 1,900 | 2,033 |
Loans: | ||||||
Individually evaluated for impairment | 489 | 502 | ||||
Collectively evaluated for impairment | 801,842 | 770,807 | ||||
Modified in a troubled debt restructuring, collective pool | 0 | |||||
Modified in a troubled debt restructuring | 0 | 0 | ||||
Total ending loans balance | 802,331 | 771,309 | ||||
Residential Real Estate | Acquired with deteriorated credit quality | ||||||
Ending allowance balance attributable to loans: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total ending loans balance | 0 | 0 | ||||
Consumer | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 2,345 | 2,377 | ||||
Modified in a troubled debt restructuring | 0 | 0 | ||||
Total ending allowance balance | 2,345 | 2,141 | 2,377 | 2,323 | 2,156 | 2,179 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 121,598 | 86,035 | ||||
Modified in a troubled debt restructuring, collective pool | 0 | |||||
Modified in a troubled debt restructuring | 0 | 0 | ||||
Total ending loans balance | 121,598 | 86,035 | ||||
Consumer | Acquired with deteriorated credit quality | ||||||
Ending allowance balance attributable to loans: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total ending loans balance | 0 | 0 | ||||
Credit Cards | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 105 | 103 | ||||
Modified in a troubled debt restructuring | 0 | 0 | ||||
Total ending allowance balance | 105 | 87 | 103 | 107 | 101 | 120 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 7,393 | 7,623 | ||||
Modified in a troubled debt restructuring, collective pool | 0 | |||||
Modified in a troubled debt restructuring | 0 | 0 | ||||
Total ending loans balance | 7,393 | 7,623 | ||||
Credit Cards | Acquired with deteriorated credit quality | ||||||
Ending allowance balance attributable to loans: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total ending loans balance | 0 | 0 | ||||
Overdrafts | ||||||
Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 0 | 10 | ||||
Collectively evaluated for impairment | 338 | 227 | ||||
Modified in a troubled debt restructuring | 0 | 0 | ||||
Total ending allowance balance | 338 | $ 160 | 237 | $ 225 | $ 207 | $ 194 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 10 | ||||
Collectively evaluated for impairment | 642 | 298 | ||||
Modified in a troubled debt restructuring, collective pool | 0 | |||||
Modified in a troubled debt restructuring | 0 | |||||
Total ending loans balance | 642 | 308 | ||||
Overdrafts | Acquired with deteriorated credit quality | ||||||
Ending allowance balance attributable to loans: | ||||||
Total ending allowance balance | 0 | 0 | ||||
Loans: | ||||||
Total ending loans balance | $ 0 | $ 0 |
Loans - Loans Individually Eval
Loans - Loans Individually Evaluated for Impairment Including Loans Modified in Troubled Debt Restructurings by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
With an allowance recorded: | ||
Allowance for Loan Losses Allocated | $ 3,409 | $ 4,722 |
With no related allowance recorded: | ||
Unpaid Principal Balance, Total | 18,246 | 23,707 |
Recorded Investment, Total | 14,344 | 17,918 |
Commercial, industrial, and agricultural | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 3,021 | 3,053 |
Recorded Investment | 1,691 | 3,037 |
Allowance for Loan Losses Allocated | 802 | 158 |
With no related allowance recorded: | ||
Unpaid Principal Balance | 5,258 | 3,684 |
Recorded Investment | 4,208 | 2,874 |
Commercial mortgages | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 8,055 | 10,799 |
Recorded Investment | 6,258 | 6,709 |
Allowance for Loan Losses Allocated | 2,578 | 4,454 |
With no related allowance recorded: | ||
Unpaid Principal Balance | 1,423 | 5,659 |
Recorded Investment | 1,698 | 4,786 |
Overdrafts | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 10 | |
Recorded Investment | 10 | |
Allowance for Loan Losses Allocated | 10 | |
With no related allowance recorded: | ||
Unpaid Principal Balance | 0 | |
Recorded Investment | 0 | |
Residential Real Estate | ||
With an allowance recorded: | ||
Unpaid Principal Balance | 489 | 502 |
Recorded Investment | 489 | 502 |
Allowance for Loan Losses Allocated | 29 | 100 |
With no related allowance recorded: | ||
Unpaid Principal Balance | 0 | 0 |
Recorded Investment | $ 0 | $ 0 |
Loans - Impaired Financing Rece
Loans - Impaired Financing Receivables with Related and not Related Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
With no related allowance recorded: | ||||
Average Recorded Investment, Total | $ 15,397 | $ 23,224 | $ 16,380 | $ 21,414 |
Interest Income Recognized, Total | 123 | 137 | 383 | 391 |
Cash Basis Interest Recognized, Total | 123 | 137 | 383 | 391 |
Commercial, industrial, and agricultural | ||||
With an allowance recorded: | ||||
Average Recorded Investment | 1,480 | 3,460 | 1,819 | 2,672 |
Interest Income Recognized | 32 | 11 | 74 | 54 |
Cash Basis Interest Recognized | 32 | 11 | 74 | 54 |
With no related allowance recorded: | ||||
Average Recorded Investment | 3,977 | 5,569 | 3,676 | 5,084 |
Interest Income Recognized | 42 | 69 | 128 | 160 |
Cash Basis Interest Recognized | 42 | 69 | 128 | 160 |
Commercial mortgages | ||||
With an allowance recorded: | ||||
Average Recorded Investment | 7,024 | 9,042 | 7,145 | 9,147 |
Interest Income Recognized | 12 | 37 | 100 | 111 |
Cash Basis Interest Recognized | 12 | 37 | 100 | 111 |
With no related allowance recorded: | ||||
Average Recorded Investment | 2,435 | 5,153 | 3,250 | 4,511 |
Interest Income Recognized | 29 | 20 | 62 | 66 |
Cash Basis Interest Recognized | 29 | 20 | 62 | 66 |
Residential real estate | ||||
With an allowance recorded: | ||||
Average Recorded Investment | 245 | 0 | 122 | 0 |
Interest Income Recognized | 8 | 0 | 8 | 0 |
Cash Basis Interest Recognized | 8 | 0 | 8 | 0 |
With no related allowance recorded: | ||||
Average Recorded Investment | 236 | 0 | 368 | 0 |
Interest Income Recognized | 0 | 0 | 11 | 0 |
Cash Basis Interest Recognized | $ 0 | $ 0 | $ 11 | $ 0 |
Loans - Nonaccrual Loans and Lo
Loans - Nonaccrual Loans and Loans Past Due over 90 Days Still Accruing Interest by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | $ 14,809 | $ 14,262 |
Past Due Over 90 Days Still on Accrual | 550 | 887 |
Commercial, industrial, and agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 3,994 | 2,076 |
Past Due Over 90 Days Still on Accrual | 443 | 487 |
Commercial mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 5,299 | 6,329 |
Past Due Over 90 Days Still on Accrual | 0 | 53 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 4,779 | 5,187 |
Past Due Over 90 Days Still on Accrual | 62 | 299 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 737 | 670 |
Past Due Over 90 Days Still on Accrual | 0 | 43 |
Credit Cards | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual | 0 | 0 |
Past Due Over 90 Days Still on Accrual | $ 45 | $ 5 |
Loans - Aging of Recorded Inves
Loans - Aging of Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 16,825 | $ 19,129 |
Loans Not Past Due | 2,737,744 | 2,460,219 |
Total ending loans balance | 2,754,569 | 2,479,348 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,022 | 7,608 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,078 | 4,618 |
Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 8,725 | 6,903 |
Commercial, Industrial, and Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,629 | 4,612 |
Loans Not Past Due | 1,026,002 | 911,685 |
Total ending loans balance | 1,033,631 | 916,297 |
Commercial, Industrial, and Agricultural | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,508 | 2,339 |
Commercial, Industrial, and Agricultural | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,041 | 9 |
Commercial, Industrial, and Agricultural | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,080 | 2,264 |
Commercial mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,098 | 4,096 |
Loans Not Past Due | 786,876 | 693,680 |
Total ending loans balance | 788,974 | 697,776 |
Commercial mortgages | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 230 | 758 |
Commercial mortgages | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 3,055 |
Commercial mortgages | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,868 | 283 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,933 | 9,227 |
Loans Not Past Due | 796,398 | 762,082 |
Total ending loans balance | 802,331 | 771,309 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,759 | 3,982 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 759 | 1,257 |
Residential real estate | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,415 | 3,988 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,019 | 1,115 |
Loans Not Past Due | 120,579 | 84,920 |
Total ending loans balance | 121,598 | 86,035 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 472 | 470 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 230 | 282 |
Consumer | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 317 | 363 |
Credit cards | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 146 | 79 |
Loans Not Past Due | 7,247 | 7,544 |
Total ending loans balance | 7,393 | 7,623 |
Credit cards | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 53 | 59 |
Credit cards | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 48 | 15 |
Credit cards | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 45 | 5 |
Overdrafts | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 642 | 308 |
Total ending loans balance | 642 | 308 |
Overdrafts | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Overdrafts | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Overdrafts | Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans - Restructured in Trouble
Loans - Restructured in Troubled Debt (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans at a point in time | loan | 23 | 23 | 25 | |
Loan Balance | $ 10,199 | $ 10,199 | $ 14,626 | |
Specific Reserve | $ 574 | $ 574 | $ 4,554 | |
Number of loans, period of time | loan | 1 | 1 | 4 | |
Pre-Modification Outstanding Recorded Investment | $ 383 | $ 1,091 | ||
Post-Modification Outstanding Recorded Investment | $ 383 | $ 1,091 | ||
Commercial, industrial, and agricultural | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans at a point in time | loan | 10 | 10 | 10 | |
Loan Balance | $ 3,197 | $ 3,197 | $ 4,577 | |
Specific Reserve | $ 38 | $ 38 | $ 104 | |
Number of loans, period of time | loan | 0 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | ||
Commercial mortgages | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans at a point in time | loan | 13 | 13 | 15 | |
Loan Balance | $ 7,002 | $ 7,002 | $ 10,049 | |
Specific Reserve | $ 536 | $ 536 | $ 4,450 | |
Number of loans, period of time | loan | 1 | 4 | ||
Pre-Modification Outstanding Recorded Investment | $ 383 | $ 1,091 | ||
Post-Modification Outstanding Recorded Investment | $ 383 | $ 1,091 | ||
Residential real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans at a point in time | loan | 0 | 0 | 0 | |
Loan Balance | $ 0 | $ 0 | $ 0 | |
Specific Reserve | $ 0 | $ 0 | $ 0 | |
Number of loans, period of time | loan | 0 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | ||
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans at a point in time | loan | 0 | 0 | 0 | |
Loan Balance | $ 0 | $ 0 | $ 0 | |
Specific Reserve | $ 0 | $ 0 | $ 0 | |
Number of loans, period of time | loan | 0 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | ||
Credit cards | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans at a point in time | loan | 0 | 0 | 0 | |
Loan Balance | $ 0 | $ 0 | $ 0 | |
Specific Reserve | $ 0 | $ 0 | $ 0 | |
Number of loans, period of time | loan | 0 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Loans - Schedule of Loan Assign
Loans - Schedule of Loan Assigned Risk Rating within 12 Months of Balance Sheet Date (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | $ 2,729,295 | $ 2,454,853 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 1,767,976 | 1,575,166 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 28,950 | 13,720 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 25,679 | 25,187 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Pass, Special Mention, Substandard, Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 1,822,605 | 1,614,073 |
Commercial, industrial, and agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 1,033,631 | 916,297 |
Commercial, industrial, and agricultural | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 997,103 | 890,360 |
Commercial, industrial, and agricultural | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 19,197 | 10,484 |
Commercial, industrial, and agricultural | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 17,331 | 15,453 |
Commercial, industrial, and agricultural | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 0 | 0 |
Commercial mortgages | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 788,974 | 697,776 |
Commercial mortgages | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 770,873 | 684,806 |
Commercial mortgages | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 9,753 | 3,236 |
Commercial mortgages | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | 8,348 | 9,734 |
Commercial mortgages | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Net loans | $ 0 | $ 0 |
Loans - Recorded Investment in
Loans - Recorded Investment in Residential, Consumer and Credit Card Loans Based on Payment Activity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | $ 802,331 | $ 771,309 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 121,598 | 86,035 |
Credit cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 7,393 | 7,623 |
Performing | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 797,490 | 765,823 |
Performing | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 120,861 | 85,322 |
Performing | Credit cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 7,348 | 7,618 |
Nonperforming | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 4,841 | 5,486 |
Nonperforming | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | 737 | 713 |
Nonperforming | Credit cards | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, net | $ 45 | $ 5 |
Loans - Summary of Holiday's Lo
Loans - Summary of Holiday's Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer | $ 2,754,569 | $ 2,479,348 |
Less: unearned discount | 3,447 | 3,175 |
Net loans | 2,729,295 | 2,454,853 |
Holiday Financial Services Corporation | Residential Real Estate And Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer | 27,664 | 26,568 |
Less: unearned discount | (5,067) | (4,791) |
Net loans | $ 22,597 | $ 21,777 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Banking and Thrift [Abstract] | ||
Checking, non-interest bearing | $ 370,761 | $ 356,797 |
Checking, interest bearing | 593,057 | 600,046 |
Savings accounts | 1,537,672 | 1,258,506 |
Certificates of deposit | 374,105 | 395,437 |
Total deposits | $ 2,875,595 | $ 2,610,786 |
Percentage Change, Checking, non-interest bearing | 3.90% | |
Percentage Change, Checking, interest bearing | (1.20%) | |
Percentage Change, Savings accounts | 22.20% | |
Percentage Change, Certificates of deposit | (5.40%) | |
Percentage Change | 10.10% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Dilutive effects of assumed exercises of stock options (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per common share computation: | ||||
Net income per consolidated statements of income | $ 10,357 | $ 9,236 | $ 29,597 | $ 24,774 |
Net earnings allocated to participating securities | (37) | (40) | (114) | (113) |
Net earnings allocated to common stock | $ 10,320 | $ 9,196 | $ 29,483 | $ 24,661 |
Weighted average common shares outstanding, including shares considered participating securities (in shares) | 15,197,000 | 15,285,000 | 15,218,000 | 15,281,000 |
Less: Average participating securities (in shares) | (51,000) | (60,000) | (58,000) | (67,000) |
Weighted average shares (in shares) | 15,146,000 | 15,225,000 | 15,160,000 | 15,214,000 |
Basic earnings per common share (in dollar per share) | $ 0.68 | $ 0.60 | $ 1.94 | $ 1.62 |
Diluted earnings per common share computation: | ||||
Net earnings allocated to common stock | $ 10,320 | $ 9,196 | $ 29,483 | $ 24,661 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 15,146,000 | 15,225,000 | 15,160,000 | 15,214,000 |
Add: Dilutive effects of assumed exercises of stock options (in shares) | 0 | 0 | 0 | 0 |
Weighted average shares and dilutive potential common shares (in shares) | 15,146,000 | 15,225,000 | 15,160,000 | 15,214,000 |
Diluted earnings per common share (in dollar per share) | $ 0.68 | $ 0.60 | $ 1.94 | $ 1.62 |
Distributed earnings allocated to common stock | ||||
Basic earnings per common share computation: | ||||
Net earnings allocated to common stock | $ 2,573 | $ 2,586 | $ 7,734 | $ 7,607 |
Undistributed earnings allocated to common stock | ||||
Basic earnings per common share computation: | ||||
Net earnings allocated to common stock | $ 7,747 | $ 6,610 | $ 21,749 | $ 17,054 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) | Sep. 07, 2018 | May 03, 2011 | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Derivatives designated as fair value hedges | $ 0 | $ 0 | ||
Accumulated other comprehensive loss estimated | 86,000 | |||
Collateral amount for counterparty interest rate swap | $ 750,000 | 200,000 | ||
2.98% Fixed Rate Plus 155 Basis Points | ||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Interest rate being paid by the corporation | 4.53% | |||
Interest Rate Swaps | ||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Cash collateral pledged | $ 3,000,000 | $ 750,000 | ||
Unsecured Debt | ||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Term of contract | 5 years | 5 years | ||
Cash flow hedges | $ 10,000,000 | $ 10,000,000 | ||
Unsecured Debt | LIBOR Plus 155 Basis Points | ||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Variable interest rate on subordinate debt | 3.67% | |||
Unsecured Debt | 2.98% Fixed Rate Plus 155 Basis Points | ||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Derivative fixed interest rate rate basis | 2.98% | |||
London Interbank Offered Rate (LIBOR) | Unsecured Debt | LIBOR Plus 155 Basis Points | ||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Basis spread on variable rate | 155.00% | |||
London Interbank Offered Rate (LIBOR) | Unsecured Debt | 2.98% Fixed Rate Plus 155 Basis Points | ||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||||
Basis spread on variable rate | 155.00% |
Derivative Instruments - Amount
Derivative Instruments - Amounts and Locations of Activity Related to Interest Rate Swaps Designated as Cash Flow Hedges within Corporation's Consolidated Balance Sheet and Statement of Income (Details) - Interest Rate Swaps - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Interest rate contracts | $ (45) | $ 36 | $ (302) | $ 134 | |
Accrued interest and other liabilities | |||||
Derivative [Line Items] | |||||
Accrued interest and other liabilities | (583) | (583) | $ (201) | ||
Interest expense – subordinated debentures | |||||
Derivative [Line Items] | |||||
Other income | (11) | (44) | (31) | (149) | |
Other income | |||||
Derivative [Line Items] | |||||
Other income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Amou_2
Derivative Instruments - Amounts and Locations of Activity Related to Back-to-Back Interest Rate Swaps within Corporation's Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
3rd Party interest rate swaps | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Notional Amount | $ 35,702 | $ 23,152 |
Weighted Average Maturity (in years) | 8 years | 7 years 2 months 12 days |
Weighted Average Fixed Rate | 4.13% | 3.85% |
Fair Value | $ 2,572 | $ 485 |
Customer interest rate swaps | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative Liability, Notional Amount | $ (35,702) | $ (23,152) |
Weighted Average Maturity (in years) | 8 years | 7 years 2 months 12 days |
Weighted Average Fixed Rate | 4.13% | 3.85% |
Fair Value | $ (2,572) | $ (485) |
London Interbank Offered Rate (LIBOR) | 3rd Party interest rate swaps | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Basis spread on variable rate | 2.27% | 2.24% |
London Interbank Offered Rate (LIBOR) | Customer interest rate swaps | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Basis spread on variable rate | 2.27% | 2.24% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Non-interest Income | ||||
Service charges on deposit accounts | $ 1,676 | $ 1,584 | $ 4,726 | $ 4,102 |
Wealth and asset management fees | 1,238 | 1,031 | 3,482 | 3,151 |
Mortgage banking | 408 | 283 | 1,017 | 801 |
Card processing and interchange income | 1,195 | 1,066 | 3,445 | 3,140 |
Net gains (losses) on sales of securities | 0 | 0 | 148 | 0 |
Other income | 1,759 | 1,969 | 6,403 | 5,096 |
Total non-interest income | $ 6,276 | $ 5,933 | $ 19,221 | $ 16,290 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Percentage of primary source of revenue | 89.50% | 89.00% | 89.70% | 88.90% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Leased Assets [Line Items] | |||
Operating lease assets | $ 16,837 | $ 0 | |
Operating lease liabilities | $ 17,696 | $ 0 | |
Accounting Standards Update 2016-02 | |||
Operating Leased Assets [Line Items] | |||
Operating lease assets | $ 12,500 | ||
Prepaid rent | 800 | ||
Operating lease liabilities | $ 13,300 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Operating lease assets | $ 16,837 | $ 0 |
Finance lease assets | 519 | |
Total leased assets | 17,356 | |
Liabilities: | ||
Operating lease liabilities | 17,696 | $ 0 |
Finance lease liabilities | 648 | |
Total leased liabilities | 18,344 | |
Finance lease, net of accumulated amortization | $ 697 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 423 | $ 1,228 |
Variable lease cost | 33 | 82 |
Finance lease cost: | ||
Amortization of leased assets | 18 | 54 |
Interest on lease liabilities | 7 | 23 |
Sublease income | (21) | (62) |
Net lease cost | $ 460 | 1,325 |
Operating cash flows from operating leases | 557 | |
Leased assets obtained in exchange from new operating lease liabilities | $ 17,674 |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease payments excluding amount of legally binding lease payments | $ 3,173 | |
Operating Leases | ||
2019 | 339 | |
2020 | 1,430 | |
2021 | 1,483 | |
2022 | 1,538 | |
2023 | 1,458 | |
After 2023 | 17,932 | |
Total lease payments | 24,180 | |
Less: Interest | 6,484 | |
Operating lease liabilities | 17,696 | $ 0 |
Finance Leases | ||
2019 | 26 | |
2020 | 105 | |
2021 | 105 | |
2022 | 105 | |
2023 | 105 | |
After 2023 | 315 | |
Total lease payments | 761 | |
Less: Interest | 113 | |
Present value of lease liabilities | 648 | |
Total | ||
2019 | 365 | |
2020 | 1,535 | |
2021 | 1,588 | |
2022 | 1,643 | |
2023 | 1,563 | |
After 2023 | 18,247 | |
Total lease payments | 24,941 | |
Less: Interest | 6,597 | |
Present value of lease liabilities | $ 18,344 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Weighted-average remaining lease term (years) | |
Operating leases | 16 years 10 months 24 days |
Finance leases | 7 years 3 months 18 days |
Weighted-average discount rate | |
Operating leases | 3.60% |
Finance leases | 4.54% |
Contingency (Details)
Contingency (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Mar. 28, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||
Sales tax examination excluding penalties and interest accrued | $ 824 | ||
Sales tax examination penalties and interest accrued | 339 | ||
Sales tax examination liability refund adjustment from settlement with tax authority | $ 1,163 | ||
Sales tax contingent liabilities | $ 246 | $ 96 |