Maryland | 27-0950358 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
100 Liberty Street, Warren, Pennsylvania | 16365 | |
(Address of principal executive offices) | (Zip Code) |
PAGE | ||||
PART I | FINANCIAL INFORMATION | |||
Certifications |
June 30, 2018 | December 31, 2017 | |||||
Assets | ||||||
Cash and due from banks | $ | 133,045 | 77,710 | |||
Marketable securities available-for-sale (amortized cost of $814,848 and $800,094) | 799,878 | 792,535 | ||||
Marketable securities held-to-maturity (fair value of $25,212 and $29,667) | 25,747 | 29,678 | ||||
Total cash and cash equivalents and marketable securities | 958,670 | 899,923 | ||||
Personal Banking loans: | ||||||
Residential mortgage loans held-for-sale | — | 3,128 | ||||
Residential mortgage loans | 2,800,668 | 2,773,075 | ||||
Home equity loans | 1,276,181 | 1,310,355 | ||||
Consumer loans | 700,925 | 671,389 | ||||
Total Personal Banking loans | 4,777,774 | 4,757,947 | ||||
Commercial Banking loans: | ||||||
Commercial real estate loans | 2,553,223 | 2,454,726 | ||||
Commercial loans | 611,373 | 580,736 | ||||
Total Commercial Banking loans | 3,164,596 | 3,035,462 | ||||
Total loans | 7,942,370 | 7,793,409 | ||||
Allowance for loan losses | (57,332 | ) | (56,795 | ) | ||
Total loans, net | 7,885,038 | 7,736,614 | ||||
Federal Home Loan Bank stock, at cost | 7,887 | 11,733 | ||||
Accrued interest receivable | 24,959 | 23,352 | ||||
Real estate owned, net | 2,722 | 5,666 | ||||
Premises and equipment, net | 146,276 | 151,944 | ||||
Bank owned life insurance | 170,791 | 171,547 | ||||
Goodwill | 307,420 | 307,420 | ||||
Other intangible assets | 22,629 | 25,669 | ||||
Other assets | 35,917 | 30,066 | ||||
Total assets | $ | 9,562,309 | 9,363,934 | |||
Liabilities and Shareholders’ Equity | ||||||
Liabilities: | ||||||
Noninterest-bearing checking deposits | $ | 1,732,664 | 1,610,409 | |||
Interest-bearing checking deposits | 1,485,938 | 1,442,928 | ||||
Money market deposit accounts | 1,686,052 | 1,707,450 | ||||
Savings deposits | 1,697,396 | 1,653,579 | ||||
Time deposits | 1,405,328 | 1,412,623 | ||||
Total deposits | 8,007,378 | 7,826,989 | ||||
Borrowed funds | 99,889 | 108,238 | ||||
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities | 111,213 | 111,213 | ||||
Advances by borrowers for taxes and insurance | 51,640 | 40,825 | ||||
Accrued interest payable | 568 | 460 | ||||
Other liabilities | 62,741 | 68,485 | ||||
Total liabilities | 8,333,429 | 8,156,210 | ||||
Shareholders’ equity: | ||||||
Preferred stock, $0.01 par value: 50,000,000 authorized, no shares issued | — | — | ||||
Common stock, $0.01 par value: 500,000,000 shares authorized, 103,122,890 and 102,394,828 shares issued, respectively | 1,031 | 1,027 | ||||
Paid-in capital | 739,673 | 730,719 | ||||
Retained earnings | 531,269 | 508,058 | ||||
Accumulated other comprehensive loss | (43,093 | ) | (32,080 | ) | ||
Total shareholders’ equity | 1,228,880 | 1,207,724 | ||||
Total liabilities and shareholders’ equity | $ | 9,562,309 | 9,363,934 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Interest income: | ||||||||||||
Loans receivable | $ | 88,106 | 84,714 | 173,326 | 167,465 | |||||||
Mortgage-backed securities | 3,254 | 2,987 | 6,267 | 5,209 | ||||||||
Taxable investment securities | 648 | 981 | 1,326 | 1,987 | ||||||||
Tax-free investment securities | 313 | 529 | 703 | 1,098 | ||||||||
FHLB dividends | 85 | 50 | 182 | 109 | ||||||||
Interest-earning deposits | 469 | 536 | 604 | 1,196 | ||||||||
Total interest income | 92,875 | 89,797 | 182,408 | 177,064 | ||||||||
Interest expense: | ||||||||||||
Deposits | 7,309 | 5,826 | 13,767 | 11,291 | ||||||||
Borrowed funds | 1,340 | 1,240 | 2,648 | 2,465 | ||||||||
Total interest expense | 8,649 | 7,066 | 16,415 | 13,756 | ||||||||
Net interest income | 84,226 | 82,731 | 165,993 | 163,308 | ||||||||
Provision for loan losses | 5,349 | 5,562 | 9,558 | 10,199 | ||||||||
Net interest income after provision for loan losses | 78,877 | 77,169 | 156,435 | 153,109 | ||||||||
Noninterest income: | ||||||||||||
Gain on sale of investments | — | 3 | 153 | 20 | ||||||||
Service charges and fees | 12,908 | 12,749 | 24,807 | 24,466 | ||||||||
Trust and other financial services income | 4,050 | 4,600 | 8,081 | 8,904 | ||||||||
Insurance commission income | 2,090 | 2,353 | 4,839 | 5,147 | ||||||||
Gain/ (loss) on real estate owned, net | 176 | (230 | ) | (370 | ) | (297 | ) | |||||
Income from bank owned life insurance | 2,333 | 1,652 | 3,323 | 2,720 | ||||||||
Mortgage banking income | 77 | 434 | 301 | 674 | ||||||||
Gain on sale of offices | — | 17,186 | — | 17,186 | ||||||||
Other operating income | 2,475 | 2,730 | 4,763 | 4,161 | ||||||||
Total noninterest income | 24,109 | 41,477 | 45,897 | 62,981 | ||||||||
Noninterest expense: | ||||||||||||
Compensation and employee benefits | 39,031 | 38,175 | 75,541 | 76,447 | ||||||||
Premises and occupancy costs | 6,824 | 7,103 | 14,131 | 14,619 | ||||||||
Office operations | 3,768 | 4,170 | 7,176 | 8,392 | ||||||||
Collections expense | 434 | 553 | 946 | 1,102 | ||||||||
Processing expenses | 9,560 | 9,639 | 19,266 | 19,548 | ||||||||
Marketing expenses | 2,014 | 2,846 | 4,154 | 4,994 | ||||||||
Federal deposit insurance premiums | 671 | 856 | 1,388 | 2,023 | ||||||||
Professional services | 2,819 | 2,452 | 5,096 | 5,027 | ||||||||
Amortization of intangible assets | 1,520 | 1,749 | 3,040 | 3,498 | ||||||||
Real estate owned expense | 133 | 217 | 425 | 499 | ||||||||
Restructuring/ acquisition expense | 393 | 2,634 | 393 | 2,857 | ||||||||
Other expenses | 2,620 | 2,868 | 5,652 | 5,902 | ||||||||
Total noninterest expense | 69,787 | 73,262 | 137,208 | 144,908 | ||||||||
Income before income taxes | 33,199 | 45,384 | 65,124 | 71,182 | ||||||||
Federal and state income taxes expense | 6,900 | 14,402 | 13,840 | 22,454 | ||||||||
Net income | $ | 26,299 | 30,982 | 51,284 | 48,728 | |||||||
Basic earnings per share | $ | 0.26 | 0.31 | 0.50 | 0.48 | |||||||
Diluted earnings per share | $ | 0.25 | 0.30 | 0.50 | 0.48 |
Quarter ended June 30, | Six months ended June 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Net income | $ | 26,299 | 30,982 | 51,284 | 48,728 | |||||||
Other comprehensive income net of tax: | ||||||||||||
Net unrealized holding gains/ (losses) on marketable securities: | ||||||||||||
Unrealized holding gains/ (losses) net of tax of $494, $(845), $2,081, and $(1,159), respectively | (1,237 | ) | 1,290 | (5,199 | ) | 1,948 | ||||||
Reclassification adjustment for gains included in net income, net of tax of $30, $39, $37 and $47, respectively | (75 | ) | (56 | ) | (94 | ) | (67 | ) | ||||
Net unrealized holding gains/ (losses) on marketable securities | (1,312 | ) | 1,234 | (5,293 | ) | 1,881 | ||||||
Change in fair value of interest rate swaps, net of tax of $(58), $(118), $(153), and $(281), respectively | 214 | 218 | 574 | 521 | ||||||||
Defined benefit plan: | ||||||||||||
Reclassification adjustments for prior period service costs and net losses included in net income, net of tax of $(91), $(154), $(181) and $(307), respectively | 226 | 221 | 452 | 441 | ||||||||
Other comprehensive income/ (loss) | (872 | ) | 1,673 | (4,267 | ) | 2,843 | ||||||
Total comprehensive income | $ | 25,427 | 32,655 | 47,017 | 51,571 |
Accumulated Other | Total | |||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Shareholders’ | ||||||||||||||
Shares | Amount | Capital | Earnings | Loss | Equity | |||||||||||||
Balance at March 31, 2017 | 101,987,942 | $ | 1,020 | 723,055 | 480,309 | (26,821 | ) | 1,177,563 | ||||||||||
Comprehensive income: | ||||||||||||||||||
Net income | — | — | — | 30,982 | — | 30,982 | ||||||||||||
Other comprehensive income, net of tax of $(1,078) | — | — | — | — | 1,673 | 1,673 | ||||||||||||
Total comprehensive income | — | — | — | 30,982 | 1,673 | 32,655 | ||||||||||||
Exercise of stock options | 112,154 | 1 | 1,275 | — | — | 1,276 | ||||||||||||
Stock-based compensation expense | 378,050 | 4 | 1,706 | — | — | 1,710 | ||||||||||||
Dividends paid ($0.16 per share) | — | — | — | (16,274 | ) | — | (16,274 | ) | ||||||||||
Balance at June 30, 2017 | 102,478,146 | $ | 1,025 | 726,036 | 495,017 | (25,148 | ) | 1,196,930 |
Accumulated Other | Total | |||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Shareholders’ | ||||||||||||||
Shares | Amount | Capital | Earnings | Loss | Equity | |||||||||||||
Balance at March 31, 2018 | 102,599,662 | $ | 1,026 | 734,065 | 522,384 | (42,221 | ) | 1,215,254 | ||||||||||
Comprehensive income: | ||||||||||||||||||
Net income | — | — | — | 26,299 | — | 26,299 | ||||||||||||
Other comprehensive loss, net of tax of $375 | — | — | — | — | (872 | ) | (872 | ) | ||||||||||
Total comprehensive income/ (loss) | — | — | — | 26,299 | (872 | ) | 25,427 | |||||||||||
Exercise of stock options | 291,595 | 3 | 3,312 | — | — | 3,315 | ||||||||||||
Stock-based compensation expense | 414,330 | 4 | 2,294 | — | — | 2,298 | ||||||||||||
Stock-based compensation forfeited | (182,697 | ) | (2 | ) | 2 | — | — | — | ||||||||||
Dividends paid ($0.17 per share) | — | — | — | (17,414 | ) | — | (17,414 | ) | ||||||||||
Balance at June 30, 2018 | 103,122,890 | $ | 1,031 | 739,673 | 531,269 | (43,093 | ) | 1,228,880 |
Accumulated Other | Total | |||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Shareholders’ | ||||||||||||||
Shares | Amount | Capital | Earnings | Loss | Equity | |||||||||||||
Beginning balance at December 31, 2016 | 101,699,406 | $ | 1,017 | 718,834 | 478,803 | (27,991 | ) | 1,170,663 | ||||||||||
Comprehensive income: | ||||||||||||||||||
Net income | — | — | — | 48,728 | — | 48,728 | ||||||||||||
Other comprehensive income, net of tax of $(1,700) | — | — | — | — | 2,843 | 2,843 | ||||||||||||
Total comprehensive income | — | — | — | 48,728 | 2,843 | 51,571 | ||||||||||||
Exercise of stock options | 400,690 | 4 | 4,578 | — | — | 4,582 | ||||||||||||
Stock-based compensation expense | 378,050 | 4 | 2,624 | — | — | 2,628 | ||||||||||||
Share repurchases | — | — | — | — | — | — | ||||||||||||
Dividends paid ($0.32 per share) | — | — | — | (32,514 | ) | — | (32,514 | ) | ||||||||||
Ending balance at June 30, 2017 | 102,478,146 | $ | 1,025 | 726,036 | 495,017 | (25,148 | ) | 1,196,930 |
Accumulated Other | Total | |||||||||||||||||
Common Stock | Paid-in | Retained | Comprehensive | Shareholders’ | ||||||||||||||
Shares | Amount | Capital | Earnings | Loss | Equity | |||||||||||||
Beginning balance at December 31, 2017 | 102,394,828 | $ | 1,027 | 730,719 | 508,058 | (32,080 | ) | 1,207,724 | ||||||||||
Reclassification due to adoption of ASU No. 2018-02 | — | — | — | 6,746 | (6,746 | ) | — | |||||||||||
Comprehensive income: | ||||||||||||||||||
Net income | — | — | — | 51,284 | — | 51,284 | ||||||||||||
Other comprehensive loss, net of tax of $1,784 | — | — | — | — | (4,267 | ) | (4,267 | ) | ||||||||||
Total comprehensive income/ (loss) | — | — | — | 58,030 | (11,013 | ) | 47,017 | |||||||||||
Exercise of stock options | 496,429 | 5 | 5,677 | — | — | 5,682 | ||||||||||||
Stock-based compensation expense | 414,330 | 4 | 3,272 | — | — | 3,276 | ||||||||||||
Stock-based compensation forfeited | (182,697 | ) | (5 | ) | 5 | — | — | — | ||||||||||
Dividends paid ($0.34 per share) | — | — | (34,819 | ) | — | (34,819 | ) | |||||||||||
Ending balance at June 30, 2018 | 103,122,890 | $ | 1,031 | 739,673 | 531,269 | (43,093 | ) | 1,228,880 |
Six months ended June 30, | ||||||
2018 | 2017 | |||||
OPERATING ACTIVITIES: | ||||||
Net Income | $ | 51,284 | 48,728 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for loan losses | 9,558 | 10,199 | ||||
Net (gain)/ loss on sale of assets | 1,115 | (361 | ) | |||
Net gain on sale of offices | — | (17,186 | ) | |||
Net depreciation, amortization and accretion | 6,708 | 8,115 | ||||
(Increase)/ decrease in other assets | (5,987 | ) | 19,372 | |||
Decrease in other liabilities | (4,276 | ) | (1,734 | ) | ||
Net amortization on marketable securities | 898 | 1,050 | ||||
Noncash write-down of real estate owned | 940 | 719 | ||||
Deferred income tax expense | 22 | — | ||||
Origination of loans held for sale | (1,297 | ) | (37,613 | ) | ||
Proceeds from sale of loans held for sale | 4,501 | 37,199 | ||||
Noncash compensation expense related to stock benefit plans | 3,276 | 2,628 | ||||
Net cash provided by operating activities | 66,742 | 71,116 | ||||
INVESTING ACTIVITIES: | ||||||
Purchase of marketable securities held-to-maturity | — | (23,621 | ) | |||
Purchase of marketable securities available-for-sale | (108,879 | ) | (208,850 | ) | ||
Proceeds from maturities and principal reductions of marketable securities held-to-maturity | 3,923 | 7,385 | ||||
Proceeds from maturities and principal reductions of marketable securities available-for-sale | 88,183 | 64,741 | ||||
Proceeds from sale of marketable securities available-for-sale | 5,206 | 19,478 | ||||
Proceeds from bank-owed life insurance | — | 1,550 | ||||
Loan originations | (1,483,080 | ) | (1,337,829 | ) | ||
Proceeds from loan maturities and principal reductions | 1,322,618 | 1,346,050 | ||||
Net (purchase)/ sale of Federal Home Loan Bank stock | 3,846 | (752 | ) | |||
Proceeds from sale of real estate owned | 4,415 | 2,372 | ||||
Sale of real estate owned for investment, net | 304 | 304 | ||||
(Purchase)/ sale of premises and equipment | (1,661 | ) | 502 | |||
Net cash used in investing activities | (165,125 | ) | (128,670 | ) |
Six months ended June 30, | ||||||
2018 | 2017 | |||||
FINANCING ACTIVITIES: | ||||||
Increase/ (decrease) in deposits, net | $ | 180,389 | (126,723 | ) | ||
Net decrease in short-term borrowings | (8,349 | ) | (32,458 | ) | ||
Increase in advances by borrowers for taxes and insurance | 10,815 | 11,567 | ||||
Cash dividends paid | (34,819 | ) | (32,514 | ) | ||
Proceeds from stock options exercised | 5,682 | 4,582 | ||||
Net cash provided by/ (used in) financing activities | 153,718 | (175,546 | ) | |||
Net increase/ (decrease) in cash and cash equivalents | $ | 55,335 | (233,100 | ) | ||
Cash and cash equivalents at beginning of period | $ | 77,710 | 389,867 | |||
Net increase/ (decrease) in cash and cash equivalents | 55,335 | (233,100 | ) | |||
Cash and cash equivalents at end of period | $ | 133,045 | 156,767 | |||
Cash paid during the period for: | ||||||
Interest on deposits and borrowings (including interest credited to deposit accounts of $13,115 and $11,028, respectively) | $ | 16,307 | 13,869 | |||
Income taxes | $ | 9,149 | 9,805 | |||
Non-cash activities: | ||||||
Loans foreclosures and repossessions | $ | 3,599 | 5,062 | |||
Sale of real estate owned financed by the Company | $ | 183 | 168 |
(1) | Basis of Presentation and Informational Disclosures |
Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||
Debt issued by the U.S. government and agencies: | ||||||||||||
Due in one year or less | $ | 1 | — | — | 1 | |||||||
Debt issued by government sponsored enterprises: | ||||||||||||
Due in one year or less | 71,103 | — | (238 | ) | 70,865 | |||||||
Due after one year through five years | 130,850 | 6 | (3,136 | ) | 127,720 | |||||||
Due after ten years | 4,119 | — | (75 | ) | 4,044 | |||||||
Municipal securities: | ||||||||||||
Due in one year or less | 1,809 | 5 | — | 1,814 | ||||||||
Due after one year through five years | 4,620 | 57 | (8 | ) | 4,669 | |||||||
Due after five years through ten years | 12,604 | 75 | (14 | ) | 12,665 | |||||||
Due after ten years | 10,650 | 51 | (12 | ) | 10,689 | |||||||
Corporate debt issues: | ||||||||||||
Due after ten years | 911 | — | — | 911 | ||||||||
Residential mortgage-backed securities: | ||||||||||||
Fixed rate pass-through | 136,114 | 663 | (5,162 | ) | 131,615 | |||||||
Variable rate pass-through | 28,640 | 1,175 | (7 | ) | 29,808 | |||||||
Fixed rate non-agency CMOs | 1 | — | — | 1 | ||||||||
Fixed rate agency CMOs | 344,427 | 14 | (8,917 | ) | 335,524 | |||||||
Variable rate agency CMOs | 68,999 | 578 | (25 | ) | 69,552 | |||||||
Total residential mortgage-backed securities | 578,181 | 2,430 | (14,111 | ) | 566,500 | |||||||
Total marketable securities available-for-sale | $ | 814,848 | 2,624 | (17,594 | ) | 799,878 |
Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||
Debt issued by the U.S. government and agencies: | ||||||||||||
Due in one year or less | $ | 1 | — | — | 1 | |||||||
Debt issued by government sponsored enterprises: | ||||||||||||
Due in one year or less | 66,566 | 14 | (289 | ) | 66,291 | |||||||
Due after one year through five years | 140,624 | — | (2,402 | ) | 138,222 | |||||||
Due after ten years | 4,833 | — | (77 | ) | 4,756 | |||||||
Equity securities | 551 | 29 | (6 | ) | 574 | |||||||
Municipal securities: | ||||||||||||
Due in one year or less | 2,492 | 7 | (1 | ) | 2,498 | |||||||
Due after one year through five years | 7,072 | 82 | (6 | ) | 7,148 | |||||||
Due after five years through ten years | 14,576 | 171 | — | 14,747 | ||||||||
Due after ten years | 26,371 | 292 | — | 26,663 | ||||||||
Corporate debt issues: | ||||||||||||
Due after ten years | 909 | — | — | 909 | ||||||||
Residential mortgage-backed securities: | ||||||||||||
Fixed rate pass-through | 144,411 | 1,108 | (2,817 | ) | 142,702 | |||||||
Variable rate pass-through | 33,079 | 1,464 | (6 | ) | 34,537 | |||||||
Fixed rate non-agency CMOs | 15 | — | — | 15 | ||||||||
Fixed rate agency CMOs | 284,320 | 37 | (5,271 | ) | 279,086 | |||||||
Variable rate agency CMOs | 74,274 | 249 | (137 | ) | 74,386 | |||||||
Total residential mortgage-backed securities | 536,099 | 2,858 | (8,231 | ) | 530,726 | |||||||
Total marketable securities available-for-sale | $ | 800,094 | 3,453 | (11,012 | ) | 792,535 |
Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||
Residential mortgage-backed securities: | ||||||||||||
Fixed rate pass-through | $ | 3,278 | 71 | — | 3,349 | |||||||
Variable rate pass-through | 1,970 | 45 | — | 2,015 | ||||||||
Fixed rate agency CMOs | 19,828 | 1 | (663 | ) | 19,166 | |||||||
Variable rate agency CMOs | 671 | 11 | — | 682 | ||||||||
Total residential mortgage-backed securities | 25,747 | 128 | (663 | ) | 25,212 | |||||||
Total marketable securities held-to-maturity | $ | 25,747 | 128 | (663 | ) | 25,212 |
Amortized cost | Gross unrealized holding gains | Gross unrealized holding losses | Fair value | |||||||||
Residential mortgage-backed securities: | ||||||||||||
Fixed rate pass-through | $ | 3,760 | 140 | — | 3,900 | |||||||
Variable rate pass-through | 2,283 | 64 | — | 2,347 | ||||||||
Fixed rate agency CMOs | 22,906 | 20 | (248 | ) | 22,678 | |||||||
Variable rate agency CMOs | 729 | 13 | — | 742 | ||||||||
Total residential mortgage-backed securities | 29,678 | 237 | (248 | ) | 29,667 | |||||||
Total marketable securities held-to-maturity | $ | 29,678 | 237 | (248 | ) | 29,667 |
Less than 12 months | 12 months or more | Total | ||||||||||||||||
Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | |||||||||||||
U.S. government sponsored enterprises | $ | 10,972 | (36 | ) | 181,046 | (3,413 | ) | 192,018 | (3,449 | ) | ||||||||
Municipal securities | 6,251 | (34 | ) | — | — | 6,251 | (34 | ) | ||||||||||
Residential mortgage-backed securities - agency | 262,539 | (5,540 | ) | 208,728 | (9,234 | ) | 471,267 | (14,774 | ) | |||||||||
Total temporarily impaired securities | $ | 279,762 | (5,610 | ) | 389,774 | (12,647 | ) | 669,536 | (18,257 | ) |
Less than 12 months | 12 months or more | Total | ||||||||||||||||
Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | |||||||||||||
U.S. government sponsored enterprises | $ | 5,006 | (7 | ) | 197,695 | (2,761 | ) | 202,701 | (2,768 | ) | ||||||||
Equity Securities | — | — | 544 | (6 | ) | 544 | (6 | ) | ||||||||||
Municipal Securities | 4,563 | (7 | ) | — | — | 4,563 | (7 | ) | ||||||||||
Residential mortgage-backed securities - agency | 239,703 | (2,522 | ) | 202,344 | (5,957 | ) | 442,047 | (8,479 | ) | |||||||||
Total temporarily impaired securities | $ | 249,272 | (2,536 | ) | 400,583 | (8,724 | ) | 649,855 | (11,260 | ) |
2018 | 2017 | |||||
Beginning balance at April 1, (1) | $ | — | 7,942 | |||
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized | — | — | ||||
Reduction for securities sold/ called realized during the quarter | — | — | ||||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | — | — | ||||
Ending balance at June 30, | $ | — | 7,942 |
2018 | 2017 | |||||
Beginning balance at January 1, (1) | $ | 352 | 7,942 | |||
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized | — | — | ||||
Reduction for losses realized during the quarter | (352 | ) | — | |||
Reduction for securities sold/ called realized during the six months | — | — | ||||
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | — | — | ||||
Ending balance at June 30, | $ | — | 7,942 |
June 30, 2018 | December 31, 2017 | |||||||||||||||||
Originated | Acquired | Total | Originated | Acquired | Total | |||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans (1) | $ | 2,690,904 | 104,008 | 2,794,912 | 2,658,726 | 113,823 | 2,772,549 | |||||||||||
Home equity loans | 1,040,988 | 235,193 | 1,276,181 | 1,051,558 | 258,797 | 1,310,355 | ||||||||||||
Consumer finance loans (2) | 8,724 | — | 8,724 | 18,619 | — | 18,619 | ||||||||||||
Consumer loans | 602,021 | 74,037 | 676,058 | 540,832 | 97,877 | 638,709 | ||||||||||||
Total Personal Banking | 4,342,637 | 413,238 | 4,755,875 | 4,269,735 | 470,497 | 4,740,232 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 2,490,263 | 263,515 | 2,753,778 | 2,303,179 | 296,161 | 2,599,340 | ||||||||||||
Commercial loans | 617,377 | 56,906 | 674,283 | 572,341 | 60,822 | 633,163 | ||||||||||||
Total Commercial Banking | 3,107,640 | 320,421 | 3,428,061 | 2,875,520 | 356,983 | 3,232,503 | ||||||||||||
Total loans receivable, gross | 7,450,277 | 733,659 | 8,183,936 | 7,145,255 | 827,480 | 7,972,735 | ||||||||||||
Deferred loan costs | 29,097 | 1,090 | 30,187 | 26,255 | 1,527 | 27,782 | ||||||||||||
Allowance for loan losses | (51,138 | ) | (6,194 | ) | (57,332 | ) | (50,572 | ) | (6,223 | ) | (56,795 | ) | ||||||
Undisbursed loan proceeds: | ||||||||||||||||||
Residential mortgage loans | (8,288 | ) | — | (8,288 | ) | (10,067 | ) | — | (10,067 | ) | ||||||||
Commercial real estate loans | (199,236 | ) | (1,319 | ) | (200,555 | ) | (141,967 | ) | (2,647 | ) | (144,614 | ) | ||||||
Commercial loans | (61,750 | ) | (1,160 | ) | (62,910 | ) | (51,143 | ) | (1,284 | ) | (52,427 | ) | ||||||
Total loans receivable, net | $ | 7,158,962 | 726,076 | 7,885,038 | 6,917,761 | 818,853 | 7,736,614 |
June 30, 2018 | December 31, 2017 | |||||
Acquired loans evaluated individually for future credit losses: | ||||||
Outstanding principal balance | $ | 8,674 | 9,735 | |||
Carrying value | 6,050 | 6,875 | ||||
Acquired loans evaluated collectively for future credit losses: | ||||||
Outstanding principal balance | 731,270 | 824,205 | ||||
Carrying value | 726,220 | 818,201 | ||||
Total acquired loans: | ||||||
Outstanding principal balance | 739,944 | 833,940 | ||||
Carrying value | 732,270 | 825,076 |
Total | |||
Balance at December 31, 2016 | $ | 2,187 | |
Accretion | (1,318 | ) | |
Net reclassification from nonaccretable yield | 671 | ||
Balance at December 31, 2017 | 1,540 | ||
Accretion | (423 | ) | |
Net reclassification from nonaccretable yield | — | ||
Balance at June 30, 2018 | $ | 1,117 |
Carrying value | Outstanding principal balance | Related impairment reserve | Average recorded investment in impaired loans | Interest income recognized | |||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 1,112 | 1,765 | 13 | 1,147 | 91 | |||||||||
Home equity loans | 1,031 | 1,994 | 8 | 1,087 | 98 | ||||||||||
Consumer loans | 37 | 109 | 4 | 48 | 24 | ||||||||||
Total Personal Banking | 2,180 | 3,868 | 25 | 2,282 | 213 | ||||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 3,792 | 4,721 | 1 | 4,090 | 204 | ||||||||||
Commercial loans | 78 | 85 | — | 90 | 6 | ||||||||||
Total Commercial Banking | 3,870 | 4,806 | 1 | 4,180 | 210 | ||||||||||
Total | $ | 6,050 | 8,674 | 26 | 6,462 | 423 |
Carrying value | Outstanding principal balance | Related impairment reserve | Average recorded investment in impaired loans | Interest income recognized | |||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 1,182 | 1,880 | 24 | 1,251 | 181 | |||||||||
Home equity loans | 1,143 | 2,219 | 21 | 1,253 | 157 | ||||||||||
Consumer loans | 59 | 160 | 4 | 97 | 51 | ||||||||||
Total Personal Banking | 2,384 | 4,259 | 49 | 2,601 | 389 | ||||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 4,388 | 5,363 | 39 | 6,992 | 914 | ||||||||||
Commercial loans | 103 | 113 | — | 177 | 15 | ||||||||||
Total Commercial Banking | 4,491 | 5,476 | 39 | 7,169 | 929 | ||||||||||
Total | $ | 6,875 | 9,735 | 88 | 9,770 | 1,318 |
Balance June 30, 2018 | Current period provision | Charge-offs | Recoveries | Balance March 31, 2018 | |||||||||||
Originated loans: | |||||||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 3,657 | 157 | (310 | ) | 86 | 3,724 | ||||||||
Home equity loans | 3,839 | 272 | (241 | ) | 91 | 3,717 | |||||||||
Consumer finance loans | 2,354 | (370 | ) | (486 | ) | 179 | 3,031 | ||||||||
Consumer loans | 9,760 | 2,543 | (2,623 | ) | 700 | 9,140 | |||||||||
Total Personal Banking | 19,610 | 2,602 | (3,660 | ) | 1,056 | 19,612 | |||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 21,019 | 991 | (343 | ) | 153 | 20,218 | |||||||||
Commercial loans | 10,509 | 1,373 | (311 | ) | 154 | 9,293 | |||||||||
Total Commercial Banking | 31,528 | 2,364 | (654 | ) | 307 | 29,511 | |||||||||
Total originated loans | 51,138 | 4,966 | (4,314 | ) | 1,363 | 49,123 | |||||||||
Acquired loans: | |||||||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | 170 | 74 | (79 | ) | 86 | 89 | |||||||||
Home equity loans | 662 | 56 | (165 | ) | 43 | 728 | |||||||||
Consumer loans | 915 | 139 | (59 | ) | 28 | 807 | |||||||||
Total Personal Banking | 1,747 | 269 | (303 | ) | 157 | 1,624 | |||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 3,422 | (27 | ) | (96 | ) | 115 | 3,430 | ||||||||
Commercial loans | 1,025 | 141 | (180 | ) | 30 | 1,034 | |||||||||
Total Commercial Banking | 4,447 | 114 | (276 | ) | 145 | 4,464 | |||||||||
Total acquired loans | 6,194 | 383 | (579 | ) | 302 | 6,088 | |||||||||
Total | $ | 57,332 | 5,349 | (4,893 | ) | 1,665 | 55,211 |
Balance June 30, 2017 | Current period provision | Charge-offs | Recoveries | Balance March 31, 2017 | |||||||||||
Originated loans: | |||||||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 4,635 | 217 | (314 | ) | 94 | 4,638 | ||||||||
Home equity loans | 2,957 | 295 | (343 | ) | 16 | 2,989 | |||||||||
Consumer finance loans | 3,957 | 679 | (782 | ) | 103 | 3,957 | |||||||||
Consumer loans | 5,790 | 1,508 | (2,611 | ) | 421 | 6,472 | |||||||||
Total Personal Banking | 17,339 | 2,699 | (4,050 | ) | 634 | 18,056 | |||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 22,584 | 1,488 | (72 | ) | 533 | 20,635 | |||||||||
Commercial loans | 16,704 | 1,519 | (708 | ) | 494 | 15,399 | |||||||||
Total Commercial Banking | 39,288 | 3,007 | (780 | ) | 1,027 | 36,034 | |||||||||
Total originated loans | 56,627 | 5,706 | (4,830 | ) | 1,661 | 54,090 | |||||||||
Acquired loans: | |||||||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | 85 | 26 | (58 | ) | 39 | 78 | |||||||||
Home equity loans | 623 | 7 | (346 | ) | 30 | 932 | |||||||||
Consumer loans | 628 | (103 | ) | (124 | ) | 24 | 831 | ||||||||
Total Personal Banking | 1,336 | (70 | ) | (528 | ) | 93 | 1,841 | ||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 2,446 | (1,266 | ) | (257 | ) | 256 | 3,713 | ||||||||
Commercial loans | 2,476 | 1,192 | (221 | ) | 45 | 1,460 | |||||||||
Total Commercial Banking | 4,922 | (74 | ) | (478 | ) | 301 | 5,173 | ||||||||
Total acquired loans | 6,258 | (144 | ) | (1,006 | ) | 394 | 7,014 | ||||||||
Total | $ | 62,885 | 5,562 | (5,836 | ) | 2,055 | 61,104 |
Balance June 30, 2018 | Current period provision | Charge-offs | Recoveries | Balance December 31, 2017 | |||||||||||
Originated loans: | |||||||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 3,657 | 187 | (506 | ) | 152 | 3,824 | ||||||||
Home equity loans | 3,839 | 187 | (542 | ) | 122 | 4,072 | |||||||||
Consumer finance loans | 2,354 | (32 | ) | (2,039 | ) | 457 | 3,968 | ||||||||
Other consumer loans | 9,760 | 5,822 | (5,799 | ) | 1,262 | 8,475 | |||||||||
Total Personal Banking | 19,610 | 6,164 | (8,886 | ) | 1,993 | 20,339 | |||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 21,019 | 1,694 | (883 | ) | 297 | 19,911 | |||||||||
Commercial loans | 10,509 | 1,035 | (1,140 | ) | 292 | 10,322 | |||||||||
Total Commercial Banking | 31,528 | 2,729 | (2,023 | ) | 589 | 30,233 | |||||||||
Total originated loans | 51,138 | 8,893 | (10,909 | ) | 2,582 | 50,572 | |||||||||
Acquired loans: | |||||||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | 170 | 32 | (84 | ) | 91 | 131 | |||||||||
Home equity loans | 662 | 258 | (475 | ) | 117 | 762 | |||||||||
Other consumer loans | 915 | 85 | (132 | ) | 72 | 890 | |||||||||
Total Personal Banking | 1,747 | 375 | (691 | ) | 280 | 1,783 | |||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 3,422 | (157 | ) | (107 | ) | 137 | 3,549 | ||||||||
Commercial loans | 1,025 | 447 | (376 | ) | 63 | 891 | |||||||||
Total Commercial Banking | 4,447 | 290 | (483 | ) | 200 | 4,440 | |||||||||
Total acquired loans | 6,194 | 665 | (1,174 | ) | 480 | 6,223 | |||||||||
Total | $ | 57,332 | 9,558 | (12,083 | ) | 3,062 | 56,795 |
Balance June 30, 2017 | Current period provision | Charge-offs | Recoveries | Balance December 31, 2016 | |||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 4,635 | 184 | (467 | ) | 262 | 4,656 | ||||||||
Home equity loans | 2,957 | (112 | ) | (518 | ) | 101 | 3,486 | ||||||||
Consumer finance loans | 3,957 | 1,369 | (1,578 | ) | 209 | 3,445 | |||||||||
Other consumer loans | 5,790 | 6,168 | (5,068 | ) | 673 | 4,529 | |||||||||
Total Personal Banking | 17,339 | 7,609 | (7,631 | ) | 1,245 | 16,116 | |||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 22,584 | (1,459 | ) | (335 | ) | 711 | 23,667 | ||||||||
Commercial loans | 16,704 | 1,928 | (1,654 | ) | 920 | 15,510 | |||||||||
Total Commercial Banking | 39,288 | 469 | (1,989 | ) | 1,631 | 39,177 | |||||||||
Total | $ | 56,627 | 8,078 | (9,620 | ) | 2,876 | 55,293 | ||||||||
Acquired loans: | |||||||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 85 | 141 | (195 | ) | 68 | 71 | ||||||||
Home equity loans | 623 | 188 | (820 | ) | 208 | 1,047 | |||||||||
Other consumer loans | 628 | 299 | (531 | ) | 207 | 653 | |||||||||
Total Personal Banking | 1,336 | 628 | (1,546 | ) | 483 | 1,771 | |||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 2,446 | (601 | ) | (468 | ) | 507 | 3,008 | ||||||||
Commercial loans | 2,476 | 2,094 | (542 | ) | 57 | 867 | |||||||||
Total Commercial Banking | 4,922 | 1,493 | (1,010 | ) | 564 | 3,875 | |||||||||
Total acquired loans | 6,258 | 2,121 | (2,556 | ) | 1,047 | 5,646 | |||||||||
Total | $ | 62,885 | 10,199 | (12,176 | ) | 3,923 | 60,939 |
Total loans receivable | Allowance for loan losses | Nonaccrual loans (1) | Loans past due 90 days or more and still accruing (2) | TDRs | Allowance related to TDRs | Additional commitments to customers with loans classified as TDRs | |||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | $ | 2,800,668 | 3,827 | 13,248 | — | 7,595 | 743 | — | |||||||||||||
Home equity loans | 1,276,181 | 4,501 | 7,670 | 59 | 1,901 | 501 | 6 | ||||||||||||||
Consumer finance loans | 8,724 | 2,354 | 15 | — | — | — | — | ||||||||||||||
Consumer loans | 692,201 | 10,675 | 3,230 | 35 | — | — | — | ||||||||||||||
Total Personal Banking | 4,777,774 | 21,357 | 24,163 | 94 | 9,496 | 1,244 | 6 | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 2,553,223 | 24,441 | 32,635 | — | 16,251 | 1,066 | 180 | ||||||||||||||
Commercial loans | 611,373 | 11,534 | 5,915 | — | 4,915 | 569 | 19 | ||||||||||||||
Total Commercial Banking | 3,164,596 | 35,975 | 38,550 | — | 21,166 | 1,635 | 199 | ||||||||||||||
Total | $ | 7,942,370 | 57,332 | 62,713 | 94 | 30,662 | 2,879 | 205 |
(1) | Includes $10.9 million of nonaccrual TDRs. |
(2) | Represents loans 90 days or more past maturity and still accruing. |
Total loans receivable | Allowance for loan losses | Nonaccrual loans (1) | Loans past due 90 days or more and still accruing (2) | TDRs | Allowance related to TDRs | Additional commitments to customers with loans classified as TDRs | |||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | $ | 2,776,203 | 3,955 | 14,791 | — | 8,000 | 815 | — | |||||||||||||
Home equity loans | 1,310,355 | 4,834 | 8,907 | 120 | 1,716 | 462 | 4 | ||||||||||||||
Consumer finance loans | 18,619 | 3,968 | 199 | 3 | — | — | — | ||||||||||||||
Consumer loans | 652,770 | 9,365 | 4,673 | 379 | — | — | — | ||||||||||||||
Total Personal Banking | 4,757,947 | 22,122 | 28,570 | 502 | 9,716 | 1,277 | 4 | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 2,454,726 | 23,460 | 28,473 | — | 15,691 | 1,125 | 235 | ||||||||||||||
Commercial loans | 580,736 | 11,213 | 7,412 | — | 6,697 | 742 | 8 | ||||||||||||||
Total Commercial Banking | 3,035,462 | 34,673 | 35,885 | — | 22,388 | 1,867 | 243 | ||||||||||||||
Total | $ | 7,793,409 | 56,795 | 64,455 | 502 | 32,104 | 3,144 | 247 |
(1) | Includes $12.3 million of nonaccrual TDRs. |
(2) | Represents loans 90 days or more past maturity and still accruing. |
Nonaccrual loans 90 or more days delinquent | Nonaccrual loans less than 90 days delinquent | Loans less than 90 days delinquent reviewed for impairment | TDRs less than 90 days delinquent not included elsewhere | Total impaired loans | Average recorded investment in impaired loans | Interest income recognized on impaired loans | |||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | $ | 11,822 | 1,426 | 505 | 6,482 | 20,235 | 19,964 | 442 | |||||||||||||
Home equity loans | 6,729 | 941 | — | 1,538 | 9,208 | 9,558 | 257 | ||||||||||||||
Consumer finance loan | 15 | — | — | — | 15 | 28 | 3 | ||||||||||||||
Consumer loans | 2,626 | 604 | — | — | 3,230 | 3,729 | 103 | ||||||||||||||
Total Personal Banking | 21,192 | 2,971 | 505 | 8,020 | 32,688 | 33,279 | 805 | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 15,617 | 17,018 | 3,331 | 5,191 | 41,157 | 38,348 | 756 | ||||||||||||||
Commercial loans | 2,925 | 2,990 | 200 | 2,775 | 8,890 | 9,233 | 236 | ||||||||||||||
Total Commercial Banking | 18,542 | 20,008 | 3,531 | 7,966 | 50,047 | 47,581 | 992 | ||||||||||||||
Total | $ | 39,734 | 22,979 | 4,036 | 15,986 | 82,735 | 80,860 | 1,797 |
Nonaccrual loans 90 or more days delinquent | Nonaccrual loans less than 90 days delinquent | Loans less than 90 days delinquent reviewed for impairment | TDRs less than 90 days delinquent not included elsewhere | Total impaired loans | Average recorded investment in impaired loans | Interest income recognized on impaired loans | |||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | $ | 13,509 | 1,282 | — | 6,814 | 21,605 | 21,531 | 892 | |||||||||||||
Home equity loans | 7,251 | 1,656 | — | 1,449 | 10,356 | 9,150 | 452 | ||||||||||||||
Consumer finance loans | 199 | — | — | — | 199 | 379 | 20 | ||||||||||||||
Consumer loans | 3,617 | 1,056 | — | — | 4,673 | 4,042 | 188 | ||||||||||||||
Total Personal Banking | 24,576 | 3,994 | — | 8,263 | 36,833 | 35,102 | 1,552 | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 15,361 | 13,112 | 4,431 | 4,123 | 37,027 | 49,981 | 1,758 | ||||||||||||||
Commercial loans | 3,140 | 4,272 | 906 | 2,447 | 10,765 | 12,110 | 672 | ||||||||||||||
Total Commercial Banking | 18,501 | 17,384 | 5,337 | 6,570 | 47,792 | 62,091 | 2,430 | ||||||||||||||
Total | $ | 43,077 | 21,378 | 5,337 | 14,833 | 84,625 | 97,193 | 3,982 |
Loans collectively evaluated for impairment | Loans individually evaluated for impairment | Loans individually evaluated for impairment for which there is a related impairment reserve | Related impairment reserve | Loans individually evaluated for impairment for which there is no related reserve | |||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 2,792,506 | 8,162 | 8,162 | 760 | — | |||||||||
Home equity loans | 1,274,280 | 1,901 | 1,901 | 502 | — | ||||||||||
Consumer finance loans | 8,724 | — | — | — | — | ||||||||||
Consumer loans | 692,157 | 44 | 44 | 8 | — | ||||||||||
Total Personal Banking | 4,767,667 | 10,107 | 10,107 | 1,270 | — | ||||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 2,531,376 | 21,847 | 18,807 | 1,799 | 3,040 | ||||||||||
Commercial loans | 604,769 | 6,604 | 4,982 | 587 | 1,622 | ||||||||||
Total Commercial Banking | 3,136,145 | 28,451 | 23,789 | 2,386 | 4,662 | ||||||||||
Total | $ | 7,903,812 | 38,558 | 33,896 | 3,656 | 4,662 |
Loans collectively evaluated for impairment | Loans individually evaluated for impairment | Loans individually evaluated for impairment for which there is a related impairment reserve | Related impairment reserve | Loans individually evaluated for impairment for which there is no related reserve | |||||||||||
Personal Banking: | |||||||||||||||
Residential mortgage loans | $ | 2,767,635 | 8,568 | 8,568 | 816 | — | |||||||||
Home equity loans | 1,308,639 | 1,716 | 1,716 | 461 | — | ||||||||||
Consumer finance loans | 18,619 | — | — | — | — | ||||||||||
Consumer loans | 652,685 | 85 | 85 | 25 | — | ||||||||||
Total Personal Banking | 4,747,578 | 10,369 | 10,369 | 1,302 | — | ||||||||||
Commercial Banking: | |||||||||||||||
Commercial real estate loans | 2,433,755 | 20,971 | 18,470 | 1,859 | 2,501 | ||||||||||
Commercial loans | 571,412 | 9,324 | 8,572 | 829 | 752 | ||||||||||
Total Commercial Banking | 3,005,167 | 30,295 | 27,042 | 2,688 | 3,253 | ||||||||||
Total | $ | 7,752,745 | 40,664 | 37,411 | 3,990 | 3,253 |
For the quarter ended June 30, | |||||||||||||
2018 | 2017 | ||||||||||||
Number of contracts | Amount | Number of contracts | Amount | ||||||||||
Beginning TDR balance: | 200 | $ | 30,966 | 224 | $ | 43,578 | |||||||
New TDRs | 10 | 861 | 1 | 348 | |||||||||
Re-modified TDRs | — | — | 1 | 445 | |||||||||
Net paydowns | (875 | ) | (1,458 | ) | |||||||||
Charge-offs: | |||||||||||||
Residential mortgage loans | — | — | — | — | |||||||||
Home equity loans | — | — | — | — | |||||||||
Commercial real estate loans | — | — | — | — | |||||||||
Commercial loans | — | — | 5 | (158 | ) | ||||||||
Paid-off loans: | |||||||||||||
Residential mortgage loans | 1 | (6 | ) | — | — | ||||||||
Home equity loans | 1 | (35 | ) | 4 | (32 | ) | |||||||
Commercial real estate loans | 3 | (249 | ) | 8 | (480 | ) | |||||||
Commercial loans | — | — | 5 | (383 | ) | ||||||||
Ending TDR balance: | 205 | $ | 30,662 | 203 | $ | 41,860 | |||||||
Accruing TDRs | $ | 19,802 | $ | 23,987 | |||||||||
Non-accrual TDRs | 10,860 | 17,873 |
For the six months ended June 30, | |||||||||||||
2018 | 2017 | ||||||||||||
Number of contracts | Amount | Number of contracts | Amount | ||||||||||
Beginning TDR balance: | 205 | $ | 32,104 | 225 | $ | 42,926 | |||||||
New TDRs | 19 | 5,796 | 7 | 4,139 | |||||||||
Re-modified TDRs | — | — | 1 | 445 | |||||||||
Net paydowns | (1,822 | ) | (2,681 | ) | |||||||||
Charge-offs: | |||||||||||||
Residential mortgage loans | 1 | (135 | ) | — | — | ||||||||
Home equity loans | — | — | — | — | |||||||||
Commercial real estate loans | 1 | (203 | ) | — | — | ||||||||
Commercial loans | 1 | (721 | ) | 6 | (259 | ) | |||||||
Paid-off loans: | |||||||||||||
Residential mortgage loans | 2 | (255 | ) | — | — | ||||||||
Home equity loans | 2 | (47 | ) | 5 | (32 | ) | |||||||
Commercial real estate loans | 7 | (1,823 | ) | 10 | (545 | ) | |||||||
Commercial loans | 5 | (2,232 | ) | 8 | (2,133 | ) | |||||||
Ending TDR balance: | 205 | $ | 30,662 | 203 | $ | 41,860 | |||||||
Accruing TDRs | $ | 19,802 | $ | 23,987 | |||||||||
Non-accrual TDRs | 10,860 | 17,873 |
For the quarter ended June 30, 2018 | For the six months ended June 30, 2018 | ||||||||||||||||||||||||
Number of contracts | Recorded investment at the time of modification | Current recorded investment | Current allowance | Number of contracts | Recorded investment at the time of modification | Current recorded investment | Current allowance | ||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||
Personal Banking: | |||||||||||||||||||||||||
Residential mortgage loans | 2 | $ | 60 | 59 | 6 | 4 | $ | 273 | 272 | 27 | |||||||||||||||
Home equity loans | 5 | 177 | 137 | 37 | 8 | 317 | 275 | 74 | |||||||||||||||||
Total Personal Banking | 7 | 237 | 196 | 43 | 12 | 590 | 547 | 101 | |||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||
Commercial real estate loans | 1 | 481 | 481 | 33 | 2 | 2,883 | 2,852 | 33 | |||||||||||||||||
Commercial loans | 2 | 143 | 142 | 10 | 5 | 2,323 | 1,508 | 10 | |||||||||||||||||
Total Commercial Banking | 3 | 624 | 623 | 43 | 7 | 5,206 | 4,360 | 43 | |||||||||||||||||
Total | 10 | $ | 861 | 819 | 86 | 19 | $ | 5,796 | 4,907 | 144 |
For the quarter ended June 30, 2017 | For the six months ended June 30, 2017 | ||||||||||||||||||||||||
Number of contracts | Recorded investment at the time of modification | Current recorded investment | Current allowance | Number of contracts | Recorded investment at the time of modification | Current recorded investment | Current allowance | ||||||||||||||||||
Troubled debt restructurings: | |||||||||||||||||||||||||
Personal Banking: | |||||||||||||||||||||||||
Residential mortgage loans | 1 | $ | 445 | 431 | 45 | 3 | $ | 894 | 877 | 92 | |||||||||||||||
Home equity loans | — | — | — | — | — | — | — | — | |||||||||||||||||
Total Personal Banking | 1 | 445 | 431 | 45 | 3 | 894 | 877 | 92 | |||||||||||||||||
Commercial Banking: | |||||||||||||||||||||||||
Commercial real estate loans | 1 | 348 | 343 | 25 | 4 | 3,486 | 3,198 | 294 | |||||||||||||||||
Commercial loans | — | — | — | — | 1 | 204 | 192 | 14 | |||||||||||||||||
Total Commercial Banking | 1 | 348 | 343 | 25 | 5 | 3,690 | 3,390 | 308 | |||||||||||||||||
Total | 2 | $ | 793 | 774 | 70 | 8 | $ | 4,584 | 4,267 | 400 |
Type of modification | ||||||||||||||||||
Number of contracts | Rate | Payment | Maturity date | Other | Total | |||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | 2 | $ | 7 | — | — | 52 | 59 | |||||||||||
Home equity loans | 5 | — | — | 51 | 86 | 137 | ||||||||||||
Total Personal Banking | 7 | 7 | — | 51 | 138 | 196 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 1 | — | 481 | — | — | 481 | ||||||||||||
Commercial loans | 2 | — | — | 142 | — | 142 | ||||||||||||
Total Commercial Banking | 3 | — | 481 | 142 | — | 623 | ||||||||||||
Total | 10 | $ | 7 | 481 | 193 | 138 | 819 |
Type of modification | ||||||||||||||||||
Number of contracts | Rate | Payment | Maturity date | Other | Total | |||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | 1 | $ | — | — | — | 431 | 431 | |||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||
Total Personal Banking | 1 | — | — | — | 431 | 431 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 1 | — | — | 343 | — | 343 | ||||||||||||
Commercial loans | — | — | — | — | — | — | ||||||||||||
Total Commercial Banking | 1 | — | — | 343 | — | 343 | ||||||||||||
Total | 2 | $ | — | — | 343 | 431 | 774 |
Type of modification | ||||||||||||||||||
Number of contracts | Rate | Payment | Maturity date | Other | Total | |||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | 4 | $ | 7 | — | 178 | 87 | 272 | |||||||||||
Home equity loans | 8 | 29 | — | 51 | 195 | 275 | ||||||||||||
Total Personal Banking | 12 | 36 | — | 229 | 282 | 547 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 2 | — | 481 | — | 2,371 | 2,852 | ||||||||||||
Commercial loans | 5 | — | — | 142 | 1,366 | 1,508 | ||||||||||||
Total Commercial Banking | 7 | — | 481 | 142 | 3,737 | 4,360 | ||||||||||||
Total | 19 | $ | 36 | 481 | 371 | 4,019 | 4,907 |
Type of modification | ||||||||||||||||||
Number of contracts | Rate | Payment | Maturity date | Other | Total | |||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | 3 | $ | 111 | — | — | 766 | 877 | |||||||||||
Home equity loans | — | — | — | — | — | — | ||||||||||||
Total Personal Banking | 3 | 111 | — | — | 766 | 877 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 4 | — | 2,732 | 466 | — | 3,198 | ||||||||||||
Commercial loans | 1 | — | — | 192 | — | 192 | ||||||||||||
Total Commercial Banking | 5 | — | 2,732 | 658 | — | 3,390 | ||||||||||||
Total | 8 | $ | 111 | 2,732 | 658 | 766 | 4,267 |
30-59 Days delinquent | 60-89 Days delinquent | 90 Days or greater delinquent | Total delinquency | Current | Total loans receivable | 90 Days or greater delinquent and accruing (1) | |||||||||||||||
Originated loans: | |||||||||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | $ | 1,519 | 5,539 | 10,544 | 17,602 | 2,679,058 | 2,696,660 | — | |||||||||||||
Home equity loans | 5,223 | 1,757 | 5,890 | 12,870 | 1,028,118 | 1,040,988 | — | ||||||||||||||
Consumer finance loans | 711 | 277 | 15 | 1,003 | 7,721 | 8,724 | — | ||||||||||||||
Consumer loans | 8,117 | 2,421 | 2,287 | 12,825 | 604,249 | 617,074 | — | ||||||||||||||
Total Personal Banking | 15,570 | 9,994 | 18,736 | 44,300 | 4,319,146 | 4,363,446 | — | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 2,854 | 2,318 | 12,550 | 17,722 | 2,273,305 | 2,291,027 | — | ||||||||||||||
Commercial loans | 892 | 337 | 2,734 | 3,963 | 551,664 | 555,627 | — | ||||||||||||||
Total Commercial Banking | 3,746 | 2,655 | 15,284 | 21,685 | 2,824,969 | 2,846,654 | — | ||||||||||||||
Total originated loans | 19,316 | 12,649 | 34,020 | 65,985 | 7,144,115 | 7,210,100 | — | ||||||||||||||
Acquired loans: | |||||||||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | 42 | 308 | 1,749 | 2,099 | 101,909 | 104,008 | 471 | ||||||||||||||
Home equity loans | 1,160 | 738 | 878 | 2,776 | 232,417 | 235,193 | 39 | ||||||||||||||
Consumer loans | 738 | 233 | 346 | 1,317 | 73,810 | 75,127 | 7 | ||||||||||||||
Total Personal Banking | 1,940 | 1,279 | 2,973 | 6,192 | 408,136 | 414,328 | 517 | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 3,044 | 1,371 | 3,222 | 7,637 | 254,559 | 262,196 | 155 | ||||||||||||||
Commercial loans | 108 | 589 | 191 | 888 | 54,858 | 55,746 | — | ||||||||||||||
Total Commercial Banking | 3,152 | 1,960 | 3,413 | 8,525 | 309,417 | 317,942 | 155 | ||||||||||||||
Total acquired loans | 5,092 | 3,239 | 6,386 | 14,717 | 717,553 | 732,270 | 672 | ||||||||||||||
Total loans | $ | 24,408 | 15,888 | 40,406 | 80,702 | 7,861,668 | 7,942,370 | 672 |
(1) | Represents acquired loans that were originally recorded at fair value upon acquisition. These loans are considered to be accruing because we can reasonably estimate future cash flows on and expect to fully collect the carrying value of these loans. Therefore, we are accreting the difference between the carrying value and their expected cash flows into interest income. |
30-59 Days delinquent | 60-89 Days delinquent | 90 Days or greater delinquent | Total delinquency | Current | Total loans receivable | 90 Days or greater delinquent and accruing (1) | |||||||||||||||
Originated loans: | |||||||||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | $ | 23,786 | 6,030 | 12,613 | 42,429 | 2,619,951 | 2,662,380 | — | |||||||||||||
Home equity loans | 6,094 | 2,333 | 6,043 | 14,470 | 1,037,088 | 1,051,558 | — | ||||||||||||||
Consumer finance loans | 2,128 | 1,113 | 199 | 3,440 | 15,179 | 18,619 | — | ||||||||||||||
Consumer loans | 9,762 | 2,834 | 3,274 | 15,870 | 537,496 | 553,366 | — | ||||||||||||||
Total Personal Banking | 41,770 | 12,310 | 22,129 | 76,209 | 4,209,714 | 4,285,923 | — | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 5,520 | 2,133 | 10,629 | 18,282 | 2,142,930 | 2,161,212 | — | ||||||||||||||
Commercial loans | 1,469 | 204 | 2,806 | 4,479 | 516,719 | 521,198 | — | ||||||||||||||
Total Commercial Banking | 6,989 | 2,337 | 13,435 | 22,761 | 2,659,649 | 2,682,410 | — | ||||||||||||||
Total originated loan | 48,759 | 14,647 | 35,564 | 98,970 | 6,869,363 | 6,968,333 | — | ||||||||||||||
Acquired loans: | |||||||||||||||||||||
Personal Banking: | |||||||||||||||||||||
Residential mortgage loans | 1,998 | 205 | 1,277 | 3,480 | 110,343 | 113,823 | 381 | ||||||||||||||
Home equity loans | 1,367 | 538 | 1,306 | 3,211 | 255,586 | 258,797 | 98 | ||||||||||||||
Consumer loans | 1,150 | 517 | 353 | 2,020 | 97,384 | 99,404 | 10 | ||||||||||||||
Total Personal Banking | 4,515 | 1,260 | 2,936 | 8,711 | 463,313 | 472,024 | 489 | ||||||||||||||
Commercial Banking: | |||||||||||||||||||||
Commercial real estate loans | 2,795 | 406 | 5,655 | 8,856 | 284,658 | 293,514 | 923 | ||||||||||||||
Commercial loans | 396 | 237 | 334 | 967 | 58,571 | 59,538 | — | ||||||||||||||
Total Commercial Banking | 3,191 | 643 | 5,989 | 9,823 | 343,229 | 353,052 | 923 | ||||||||||||||
Total acquired loan | 7,706 | 1,903 | 8,925 | 18,534 | 806,542 | 825,076 | 1,412 | ||||||||||||||
Total | $ | 56,465 | 16,550 | 44,489 | 117,504 | 7,675,905 | 7,793,409 | 1,412 |
Pass | Special mention | Substandard | Doubtful | Loss | Total loans receivable | |||||||||||||
Originated loans: | ||||||||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | $ | 2,688,199 | — | 8,461 | — | — | 2,696,660 | |||||||||||
Home equity loans | 1,034,815 | — | 6,173 | — | — | 1,040,988 | ||||||||||||
Consumer finance loans | 8,709 | — | 15 | — | — | 8,724 | ||||||||||||
Consumer loans | 614,373 | — | 2,701 | — | — | 617,074 | ||||||||||||
Total Personal Banking | 4,346,096 | — | 17,350 | — | — | 4,363,446 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 2,071,907 | 59,944 | 159,176 | — | — | 2,291,027 | ||||||||||||
Commercial loans | 509,937 | 14,352 | 31,338 | — | — | 555,627 | ||||||||||||
Total Commercial Banking | 2,581,844 | 74,296 | 190,514 | — | — | 2,846,654 | ||||||||||||
Total originated loans | 6,927,940 | 74,296 | 207,864 | — | — | 7,210,100 | ||||||||||||
Acquired loans: | ||||||||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | 102,707 | — | 1,301 | — | — | 104,008 | ||||||||||||
Home equity loans | 234,069 | — | 1,124 | — | — | 235,193 | ||||||||||||
Consumer loans | 74,479 | — | 648 | — | — | 75,127 | ||||||||||||
Total Personal Banking | 411,255 | — | 3,073 | — | — | 414,328 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 222,420 | 5,754 | 34,022 | — | — | 262,196 | ||||||||||||
Commercial loans | 44,558 | 3,788 | 7,400 | — | — | 55,746 | ||||||||||||
Total Commercial Banking | 266,978 | 9,542 | 41,422 | — | — | 317,942 | ||||||||||||
Total acquired loans | 678,233 | 9,542 | 44,495 | — | — | 732,270 | ||||||||||||
Total loans | $ | 7,606,173 | 83,838 | 252,359 | — | — | 7,942,370 |
Pass | Special mention | Substandard | Doubtful | Loss | Total loans receivable | |||||||||||||
Originated loans: | ||||||||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | $ | 2,645,475 | — | 16,905 | — | — | 2,662,380 | |||||||||||
Home equity loans | 1,042,965 | — | 8,593 | — | — | 1,051,558 | ||||||||||||
Consumer finance loans | 18,420 | — | 199 | — | — | 18,619 | ||||||||||||
Consumer loans | 549,550 | — | 3,816 | — | — | 553,366 | ||||||||||||
Total Personal Banking | 4,256,410 | — | 29,513 | — | — | 4,285,923 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 1,964,565 | 78,699 | 117,948 | — | — | 2,161,212 | ||||||||||||
Commercial loans | 461,962 | 15,510 | 43,726 | — | — | 521,198 | ||||||||||||
Total Commercial Banking | 2,426,527 | 94,209 | 161,674 | — | — | 2,682,410 | ||||||||||||
Total originated loans | 6,682,937 | 94,209 | 191,187 | — | — | 6,968,333 | ||||||||||||
Acquired loans: | ||||||||||||||||||
Personal Banking: | ||||||||||||||||||
Residential mortgage loans | 112,990 | — | 833 | — | — | 113,823 | ||||||||||||
Home equity loans | 257,312 | — | 1,485 | — | — | 258,797 | ||||||||||||
Consumer loans | 98,659 | — | 745 | — | — | 99,404 | ||||||||||||
Total Personal Banking | 468,961 | — | 3,063 | — | — | 472,024 | ||||||||||||
Commercial Banking: | ||||||||||||||||||
Commercial real estate loans | 251,761 | 4,838 | 36,915 | — | — | 293,514 | ||||||||||||
Commercial loans | 49,073 | 3,787 | 6,678 | — | — | 59,538 | ||||||||||||
Total Commercial Banking | 300,834 | 8,625 | 43,593 | — | — | 353,052 | ||||||||||||
Total acquired loans | 769,795 | 8,625 | 46,656 | — | — | 825,076 | ||||||||||||
Total | $ | 7,452,732 | 102,834 | 237,843 | — | — | 7,793,409 |
(4) | Goodwill and Other Intangible Assets |
June 30, 2018 | December 31, 2017 | |||||
Amortizable intangible assets: | ||||||
Core deposit intangibles — gross | $ | 63,685 | 63,685 | |||
Less: accumulated amortization | (42,637 | ) | (40,029 | ) | ||
Core deposit intangibles — net | 21,048 | 23,656 | ||||
Customer and Contract intangible assets — gross | 10,474 | 10,474 | ||||
Less: accumulated amortization | (8,893 | ) | (8,461 | ) | ||
Customer and Contract intangible assets — net | $ | 1,581 | 2,013 |
For the quarter ended June 30, 2018 | $ | 1,520 | |
For the quarter ended June 30, 2017 | 1,749 | ||
For the six months ended June 30, 2018 | 3,040 | ||
For the six months ended June 30, 2017 | 3,498 | ||
For the year ending December 31, 2018 | 5,848 | ||
For the year ending December 31, 2019 | 4,933 | ||
For the year ending December 31, 2020 | 4,017 | ||
For the year ending December 31, 2021 | 3,188 | ||
For the year ending December 31, 2022 | 2,456 | ||
For the year ending December 31, 2023 | 1,847 |
Total | |||
Balance at December 31, 2016 | $ | 307,420 | |
Goodwill from acquisition | — | ||
Balance at December 31, 2017 | 307,420 | ||
Goodwill from acquisition | — | ||
Balance at June 30, 2018 | $ | 307,420 |
• | the interest on the debentures to no longer be deductible by the Company for federal income tax purposes; |
• | the trust to become subject to federal income tax or to certain other taxes or governmental charges; |
• | the trust to register as an investment company; or |
• | the preferred securities do not qualify as Tier I capital. |
(6) | Guarantees |
(7) | Earnings Per Share |
Quarter ended June 30, | Six months ended June 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Reported net income | $ | 26,299 | 30,982 | 51,284 | 48,728 | |||||||
Weighted average common shares outstanding | 101,870,043 | 100,950,772 | 101,735,235 | 100,798,209 | ||||||||
Dilutive potential shares due to effect of stock options | 1,554,111 | 1,498,921 | 1,545,885 | 1,726,849 | ||||||||
Total weighted average common shares and dilutive potential shares | 103,424,154 | 102,449,693 | 103,281,120 | 102,525,058 | ||||||||
Basic earnings per share: | $ | 0.26 | 0.31 | 0.50 | 0.48 | |||||||
Diluted earnings per share: | $ | 0.25 | 0.30 | 0.50 | 0.48 |
(8) | Pension and Other Post-retirement Benefits |
Quarter ended June 30, | ||||||||||||
Pension benefits | Other post-retirement benefits | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Service cost | $ | 1,716 | 1,537 | — | — | |||||||
Interest cost | 1,678 | 1,719 | 13 | 18 | ||||||||
Expected return on plan assets | (2,992 | ) | (2,628 | ) | — | — | ||||||
Amortization of prior service cost | (580 | ) | (581 | ) | — | — | ||||||
Amortization of the net loss | 872 | 928 | 25 | 27 | ||||||||
Net periodic cost | $ | 694 | 975 | 38 | 45 |
Six months ended June 30, | ||||||||||||
Pension benefits | Other post-retirement benefits | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Service cost | $ | 3,432 | 3,075 | — | — | |||||||
Interest cost | 3,356 | 3,440 | 27 | 35 | ||||||||
Expected return on plan assets | (5,984 | ) | (5,256 | ) | — | — | ||||||
Amortization of prior service cost | (1,161 | ) | (1,162 | ) | — | — | ||||||
Amortization of the net loss | 1,745 | 1,855 | 49 | 54 | ||||||||
Net periodic cost | $ | 1,388 | 1,952 | 76 | 89 |
(9) | Disclosures About Fair Value of Financial Instruments |
• | Level 1 - Financial assets and liabilities for which inputs are observable and are obtained from reliable quoted prices for identical assets or liabilities in actively traded markets. This is the most reliable fair value measurement and includes, for example, active exchange-traded equity securities. |
• | Level 2 - Financial assets and liabilities for which values are based on quoted prices in markets that are not active or for which values are based on similar assets or liabilities that are actively traded. Level 2 also includes pricing models in which the inputs are corroborated by market data, for example, matrix pricing. |
• | Level 3 - Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Level 3 inputs include the following: |
• | Quotes from brokers or other external sources that are not considered binding; |
• | Quotes from brokers or other external sources where it cannot be determined that market participants would in fact transact for the asset or liability at the quoted price; |
• | Quotes and other information from brokers or other external sources where the inputs are not deemed observable. |
Carrying amount | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 133,045 | 133,045 | 133,045 | — | — | |||||||||
Securities available-for-sale | 799,878 | 799,878 | — | 799,878 | — | ||||||||||
Securities held-to-maturity | 25,747 | 25,212 | — | 25,212 | — | ||||||||||
Loans receivable, net | 7,885,038 | 7,699,045 | — | — | 7,699,045 | ||||||||||
Accrued interest receivable | 24,959 | 24,959 | 24,959 | — | — | ||||||||||
Interest rate swaps | 4,249 | 4,249 | — | 4,249 | — | ||||||||||
FHLB Stock | 7,887 | 7,887 | — | — | 7,887 | ||||||||||
Total financial assets | $ | 8,880,803 | 8,694,275 | 158,004 | 829,339 | 7,706,932 | |||||||||
Financial liabilities: | |||||||||||||||
Savings and checking deposits | $ | 6,602,050 | 6,602,050 | 6,602,050 | — | — | |||||||||
Time deposits | 1,405,328 | 1,432,439 | — | — | 1,432,439 | ||||||||||
Borrowed funds | 99,889 | 99,889 | 99,889 | — | — | ||||||||||
Junior subordinated debentures | 111,213 | 106,746 | — | — | 106,746 | ||||||||||
Interest rate swaps | 4,585 | 4,585 | — | 4,585 | — | ||||||||||
Accrued interest payable | 568 | 568 | 568 | — | — | ||||||||||
Total financial liabilities | $ | 8,223,633 | 8,246,277 | 6,702,507 | 4,585 | 1,539,185 |
Carrying amount | Estimated fair value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 77,710 | 77,710 | 77,710 | — | — | |||||||||
Securities available-for-sale | 792,535 | 792,535 | 574 | 791,961 | — | ||||||||||
Securities held-to-maturity | 29,678 | 29,667 | — | 29,667 | — | ||||||||||
Loans receivable, net | 7,736,614 | 7,762,562 | 3,128 | — | 7,759,434 | ||||||||||
Accrued Interest Receivable | 23,352 | 23,352 | 23,352 | — | — | ||||||||||
Interest rate swaps | 214 | 214 | — | 214 | — | ||||||||||
FHLB Stock | 11,733 | 11,733 | — | — | 11,733 | ||||||||||
Total financial assets | $ | 8,671,836 | 8,697,773 | 104,764 | 821,842 | 7,771,167 | |||||||||
Financial liabilities: | |||||||||||||||
Savings and checking accounts | $ | 6,414,366 | 6,414,366 | 6,414,366 | — | — | |||||||||
Time deposits | 1,412,623 | 1,433,380 | — | — | 1,433,380 | ||||||||||
Borrowed funds | 108,238 | 108,238 | 108,238 | — | — | ||||||||||
Junior subordinated debentures | 111,213 | 110,954 | — | — | 110,954 | ||||||||||
Interest rate swaps | 1,278 | 1,278 | — | 1,278 | — | ||||||||||
Foreign exchange swaps | 61 | 61 | — | 61 | — | ||||||||||
Accrued interest payable | 460 | 460 | 460 | — | — | ||||||||||
Total financial liabilities | $ | 8,048,239 | 8,068,737 | 6,523,064 | 1,339 | 1,544,334 |
Level 1 | Level 2 | Level 3 | Total assets at fair value | |||||||||
Equity securities | $ | — | — | — | — | |||||||
Debt securities: | ||||||||||||
U.S. government and agencies | — | 1 | — | 1 | ||||||||
Government sponsored enterprises | — | 202,629 | — | 202,629 | ||||||||
States and political subdivisions | — | 29,837 | — | 29,837 | ||||||||
Corporate | — | 911 | 911 | |||||||||
Total debt securities | — | 233,378 | — | 233,378 | ||||||||
Residential mortgage-backed securities: | ||||||||||||
GNMA | — | 29,144 | — | 29,144 | ||||||||
FNMA | — | 74,021 | — | 74,021 | ||||||||
FHLMC | — | 57,717 | — | 57,717 | ||||||||
Non-agency | — | 541 | — | 541 | ||||||||
Collateralized mortgage obligations: | ||||||||||||
GNMA | — | 41,727 | — | 41,727 | ||||||||
FNMA | — | 201,032 | — | 201,032 | ||||||||
FHLMC | — | 162,317 | — | 162,317 | ||||||||
Non-agency | — | 1 | — | 1 | ||||||||
Total mortgage-backed securities | — | 566,500 | — | 566,500 | ||||||||
Interest rate swaps | — | 4,249 | — | 4,249 | ||||||||
Total Assets | $ | — | 804,127 | — | 804,127 | |||||||
Interest rate swaps | $ | — | 4,585 | — | 4,585 | |||||||
Total Liabilities | $ | — | 4,585 | — | 4,585 |
Level 1 | Level 2 | Level 3 | Total assets at fair value | |||||||||
Equity securities | $ | 574 | — | — | 574 | |||||||
Debt securities: | ||||||||||||
U.S. government and agencies | — | 1 | — | 1 | ||||||||
Government sponsored enterprises | — | 209,269 | — | 209,269 | ||||||||
States and political subdivisions | — | 51,056 | — | 51,056 | ||||||||
Corporate | — | 909 | — | 909 | ||||||||
Total debt securities | — | 261,235 | — | 261,235 | ||||||||
Residential mortgage-backed securities: | ||||||||||||
GNMA | — | 29,695 | — | 29,695 | ||||||||
FNMA | — | 82,969 | — | 82,969 | ||||||||
FHLMC | — | 64,021 | — | 64,021 | ||||||||
Non-agency | — | 555 | — | 555 | ||||||||
Collateralized mortgage obligations: | ||||||||||||
GNMA | — | 4,769 | — | 4,769 | ||||||||
FNMA | — | 191,512 | — | 191,512 | ||||||||
FHLMC | — | 157,190 | — | 157,190 | ||||||||
Non-agency | — | 15 | — | 15 | ||||||||
Total mortgage-backed securities | — | 530,726 | — | 530,726 | ||||||||
Interest rate swaps | — | 214 | — | 214 | ||||||||
Total Assets | $ | 574 | 792,175 | — | 792,749 | |||||||
Interest rate swaps | $ | — | 1,278 | — | 1,278 | |||||||
Foreign exchange swaps | — | 61 | — | 61 | ||||||||
Total Liabilities | $ | — | 1,339 | — | 1,339 |
Quarter ended | Six months ended | |||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||
Beginning balance January 1, | $ | — | 9,877 | — | 9,366 | |||||||
Total net realized investment gains/ (losses) and net change in unrealized appreciation/ (depreciation): | ||||||||||||
Included in net income as OTTI | — | — | — | — | ||||||||
Included in other comprehensive income | — | 761 | — | 1,272 | ||||||||
Purchases | — | — | — | — | ||||||||
Sales | — | — | — | — | ||||||||
Transfers in to Level 3 | — | — | — | — | ||||||||
Transfers out of Level 3 | — | — | — | — | ||||||||
Ending balance June 30, | $ | — | 10,638 | — | 10,638 |
Level 1 | Level 2 | Level 3 | Total assets at fair value | |||||||||
Loans measured for impairment | $ | — | — | 30,240 | 30,240 | |||||||
Real estate owned | — | — | 2,722 | 2,722 | ||||||||
Total assets | $ | — | — | 32,962 | 32,962 |
Level 1 | Level 2 | Level 3 | Total assets at fair value | |||||||||
Loans measured for impairment | $ | — | — | 33,421 | 33,421 | |||||||
Real estate owned | — | — | 5,666 | 5,666 | ||||||||
Total assets | $ | — | — | 39,087 | 39,087 |
Fair value | Valuation techniques | Significant unobservable inputs | Range (weighted average) | |||||
Loans measured for impairment | 30,240 | Appraisal value (1) | Estimated cost to sell | 10.0% | ||||
Discounted cash flow | Discount rate | 4.25% to 10.0% (7.50%) | ||||||
Real estate owned | 2,722 | Appraisal value (1) | Estimated cost to sell | 10.0% |
(1) | Fair value is generally determined through independent appraisals of the underlying collateral, which may include Level 3 inputs that are not identifiable, or by using the discounted cash flow method if the loan is not collateral dependent. |
(10) | Derivative Financial Instruments |
Asset Derivatives | Liability Derivatives | |||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||
At June 30, 2018 | ||||||||||||
Derivatives designed as hedging instruments: | ||||||||||||
Interest rate swap agreements | $ | — | — | 50,000 | 336 | |||||||
Derivatives not designed as hedging instruments: | ||||||||||||
Interest rate swap agreements | 175,711 | 4,249 | 175,711 | 4,249 | ||||||||
Foreign exchange swap agreements | — | — | — | — | ||||||||
Total derivatives | $ | 175,711 | 4,249 | 225,711 | 4,585 | |||||||
At December 31, 2017 | ||||||||||||
Derivatives designed as hedging instruments: | ||||||||||||
Interest rate swap agreements | $ | — | — | 50,000 | 1,064 | |||||||
Derivatives not designed as hedging instruments: | ||||||||||||
Interest rate swap agreements | 92,631 | 214 | 92,631 | 214 | ||||||||
Foreign exchange swap agreements | — | — | 12,344 | 61 | ||||||||
Total derivatives | $ | 92,631 | 214 | 154,975 | 1,339 |
For the quarter ended June 30, | For the six months ended June 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Hedging interest rate derivatives: | |||||||||||
Increase in interest expense | 267 | 404 | 600 | 823 | |||||||
Non-hedging swap derivatives: | |||||||||||
Increase/ (decrease) in other income | (417 | ) | 268 | (288 | ) | 234 |
(11) | Legal Proceedings |
For the quarter ended June 30, 2018 | ||||||||||||
Unrealized gains and (losses) on securities available- for-sale | Change in fair value of interest rate swaps | Change in defined benefit pension plans | Total | |||||||||
Balance as of March 31, 2018 | $ | (9,381 | ) | (480 | ) | (32,360 | ) | (42,221 | ) | |||
Other comprehensive income/ (loss) before reclassification adjustments | (1,237 | ) | 214 | — | (1,023 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (1), (2) | (75 | ) | — | 226 | 151 | |||||||
Net other comprehensive income/ (loss) | (1,312 | ) | 214 | 226 | (872 | ) | ||||||
Balance as of June 30, 2018 | $ | (10,693 | ) | (266 | ) | (32,134 | ) | (43,093 | ) |
For the quarter ended June 30, 2017 | ||||||||||||
Unrealized gains and (losses) on securities available- for-sale | Change in fair value of interest rate swaps | Change in defined benefit pension plans | Total | |||||||||
Balance as of March 31, 2017 | $ | 1,042 | (1,475 | ) | (26,388 | ) | (26,821 | ) | ||||
Other comprehensive income before reclassification adjustments | 1,290 | 218 | — | 1,508 | ||||||||
Amounts reclassified from accumulated other comprehensive income (3), (4) | (56 | ) | — | 221 | 165 | |||||||
Net other comprehensive income | 1,234 | 218 | 221 | 1,673 | ||||||||
Balance as of June 30, 2017 | $ | 2,276 | (1,257 | ) | (26,167 | ) | (25,148 | ) |
(1) | Consists of realized gain on securities (gain on sales of investments, net) of $105, net of tax (income tax expense) of $(30). |
(2) | Consists of amortization of prior service cost (compensation and employee benefits) of $580 and amortization of net loss (compensation and employee benefits) of $(897), net of tax (income tax expense) of $91. |
(3) | Consists of realized loss on securities (gain on sales of investments, net) of $95, net of tax (income tax expense) of $(39). |
(4) | Consists of amortization of prior service cost (compensation and employee benefits) of $581 and amortization of net loss (compensation and employee benefits) of $(956), net of tax (income tax expense) of $154. |
For the six months ended June 30, 2018 | ||||||||||||
Unrealized gains and (losses) on securities available- for-sale | Change in fair value of interest rate swaps | Change in defined benefit pension plans | Total | |||||||||
Balance as of December 31, 2017 | $ | (4,409 | ) | (691 | ) | (26,980 | ) | (32,080 | ) | |||
Reclassification due to adoption of ASU No. 2018-02 | (991 | ) | (149 | ) | (5,606 | ) | (6,746 | ) | ||||
Other comprehensive income/ (loss) before reclassification adjustments | (5,199 | ) | 574 | — | (4,625 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income (1), (2) | (94 | ) | — | 452 | 358 | |||||||
Net other comprehensive income/ (loss) | (5,293 | ) | 574 | 452 | (4,267 | ) | ||||||
Balance as of June 30, 2018 | $ | (10,693 | ) | (266 | ) | (32,134 | ) | (43,093 | ) |
For the six months ended June 30, 2017 | ||||||||||||
Unrealized gains and (losses) on securities available- for-sale | Change in fair value of interest rate swaps | Change in defined benefit pension plans | Total | |||||||||
Balance as of December 31, 2016 | $ | 395 | (1,778 | ) | (26,608 | ) | (27,991 | ) | ||||
Other comprehensive income before reclassification adjustments | 1,948 | 521 | — | 2,469 | ||||||||
Amounts reclassified from accumulated other comprehensive income (3), (4) | (67 | ) | — | 441 | 374 | |||||||
Net other comprehensive income | 1,881 | 521 | 441 | 2,843 | ||||||||
Balance as of June 30, 2017 | $ | 2,276 | (1,257 | ) | (26,167 | ) | (25,148 | ) |
(1) | Consists of realized gains on securities (loss on sales of investments, net) of $131, net of tax (income tax expense) of $(37). |
(2) | Consists of amortization of prior service cost (compensation and employee benefits) of $1,161 and amortization of net loss (compensation and employee benefits) of $(1,794), net of tax (income tax expense) of $181. |
(3) | Consists of realized gains on securities (gain on sales of investments, net) of $114, net of tax (income tax expense) of $(47). |
(4) | Consists of amortization of prior service cost (compensation and employee benefits) of $1,162 and amortization of net loss (compensation and employee benefits) of $(1,910), net of tax (income tax expense) of $307. |
At June 30, 2018 | ||||||||||||||||||||
Minimum capital | Well capitalized | |||||||||||||||||||
Actual | requirements (1) | requirements | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | $ | 1,166,683 | 15.923 | % | $ | 723,467 | 9.875 | % | $ | 732,625 | 10.000 | % | ||||||||
Northwest Bank | 1,079,133 | 14.741 | % | 722,908 | 9.875 | % | 732,059 | 10.000 | % | |||||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | 1,109,351 | 15.142 | % | 576,942 | 7.875 | % | 586,100 | 8.000 | % | |||||||||||
Northwest Bank | 1,021,801 | 13.958 | % | 576,496 | 7.875 | % | 585,647 | 8.000 | % | |||||||||||
CET1 capital (to risk weighted assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | 1,001,476 | 13.670 | % | 467,048 | 6.375 | % | 476,206 | 6.500 | % | |||||||||||
Northwest Bank | 1,021,801 | 13.958 | % | 466,687 | 6.375 | % | 475,838 | 6.500 | % | |||||||||||
Tier 1 capital (leverage) (to average assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | 1,109,351 | 11.897 | % | 372,986 | 4.000 | % | 466,232 | 5.000 | % | |||||||||||
Northwest Bank | 1,021,801 | 10.962 | % | 372,868 | 4.000 | % | 466,085 | 5.000 | % |
At December 31, 2017 | ||||||||||||||||||||
Minimum capital | Well capitalized | |||||||||||||||||||
Actual | requirements (1) | requirements | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | $ | 1,136,076 | 15.831 | % | $ | 663,823 | 9.250 | % | $ | 717,647 | 10.000 | % | ||||||||
Northwest Bank | 1,017,251 | 14.189 | % | 663,179 | 9.250 | % | 716,951 | 10.000 | % | |||||||||||
Tier I capital (to risk weighted assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | 1,079,270 | 15.039 | % | 520,294 | 7.250 | % | 574,117 | 8.000 | % | |||||||||||
Northwest Bank | 960,443 | 13.396 | % | 519,789 | 7.250 | % | 573,560 | 8.000 | % | |||||||||||
CET1 capital (to risk weighted assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | 971,395 | 13.536 | % | 412,647 | 5.750 | % | 466,470 | 6.500 | % | |||||||||||
Northwest Bank | 960,443 | 13.396 | % | 412,247 | 5.750 | % | 430,170 | 6.000 | % | |||||||||||
Tier I capital (leverage) (to average assets) | ||||||||||||||||||||
Northwest Bancshares, Inc. | 1,079,270 | 11.676 | % | 369,735 | 4.000 | % | 462,169 | 5.000 | % | |||||||||||
Northwest Bank | 960,443 | 10.400 | % | 369,482 | 4.000 | % | 461,853 | 5.000 | % |
June 30, 2018 | December 31, 2017 | |||||
(Dollars in thousands) | ||||||
Loans 90 days or more past due | ||||||
Residential mortgage loans | $ | 12,293 | 13,890 | |||
Home equity loans | 6,827 | 7,469 | ||||
Consumer legacy finance loans | 15 | 202 | ||||
Consumer loans | 2,668 | 4,006 | ||||
Commercial real estate loans | 15,772 | 16,284 | ||||
Commercial loans | 2,925 | 3,140 | ||||
Total loans 90 days or more past due | $ | 40,500 | 44,991 | |||
Total real estate owned (REO) | 2,722 | 5,666 | ||||
Total loans 90 days or more past due and REO | 43,222 | 50,657 | ||||
Total loans 90 days or more past due to net loans receivable | 0.51 | % | 0.58 | % | ||
Total loans 90 days or more past due and REO to total assets | 0.45 | % | 0.54 | % | ||
Nonperforming loans: | ||||||
Nonaccrual loans - loans 90 days or more delinquent | 39,734 | 43,077 | ||||
Nonaccrual loans - loans less than 90 days delinquent | 22,979 | 21,378 | ||||
Loans 90 days or more past maturity and still accruing | 94 | 502 | ||||
Total nonperforming loans | 62,807 | 64,957 | ||||
Total nonperforming assets | $ | 65,529 | 70,623 | |||
Nonaccrual troubled debt restructured loans (1) | $ | 10,860 | 12,285 | |||
Accruing troubled debt restructured loans | 19,802 | 19,819 | ||||
Total troubled debt restructured loans | $ | 30,662 | 32,104 |
(1) | Included in nonaccurual loans above. |
Quarter ended June 30, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (g) | Average balance | Interest | Avg. yield/ cost (g) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Residential mortgage loans | $ | 2,761,528 | 27,893 | 4.04 | % | $ | 2,721,445 | 28,245 | 4.15 | % | |||||||||
Home equity loans | 1,281,001 | 15,384 | 4.82 | % | 1,311,274 | 14,344 | 4.39 | % | |||||||||||
Consumer loans | 655,541 | 7,949 | 4.86 | % | 595,170 | 7,405 | 4.99 | % | |||||||||||
Legacy consumer finance loans | 10,428 | 516 | 19.79 | % | 40,945 | 2,110 | 20.61 | % | |||||||||||
Commercial real estate loans | 2,518,170 | 29,034 | 4.56 | % | 2,430,594 | 27,071 | 4.41 | % | |||||||||||
Commercial loans | 624,087 | 7,703 | 4.88 | % | 554,506 | 6,087 | 4.34 | % | |||||||||||
Loans receivable (a) (b) (includes FTE adjustments of $373 and $548, respectively) | 7,850,755 | 88,479 | 4.52 | % | 7,653,934 | 85,262 | 4.47 | % | |||||||||||
Mortgage-backed securities (c) | 569,893 | 3,254 | 2.28 | % | 592,917 | 2,987 | 2.02 | % | |||||||||||
Investment securities (c) (includes FTE adjustments of $83 and $286, respectively) | 235,784 | 1,044 | 1.77 | % | 372,398 | 1,796 | 1.93 | % | |||||||||||
FHLB stock | 7,819 | 85 | 4.36 | % | 7,602 | 50 | 2.64 | % | |||||||||||
Other interest-earning deposits | 103,739 | 469 | 1.79 | % | 208,141 | 536 | 1.02 | % | |||||||||||
Total interest-earning assets (includes FTE adjustments of $457 and $834, respectively) | 8,767,990 | 93,331 | 4.27 | % | 8,834,992 | 90,631 | 4.11 | % | |||||||||||
Noninterest earning assets (d) | 732,065 | 716,913 | |||||||||||||||||
Total assets | $ | 9,500,055 | $ | 9,551,905 | |||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,699,168 | 773 | 0.18 | % | $ | 1,714,290 | 768 | 0.18 | % | |||||||||
Interest-bearing checking deposits | 1,468,228 | 875 | 0.24 | % | 1,451,787 | 283 | 0.08 | % | |||||||||||
Money market deposit accounts | 1,691,652 | 1,211 | 0.29 | % | 1,839,693 | 1,064 | 0.23 | % | |||||||||||
Time deposits | 1,440,457 | 4,450 | 1.24 | % | 1,518,650 | 3,711 | 0.98 | % | |||||||||||
Borrowed funds (e) | 104,415 | 50 | 0.19 | % | 126,685 | 55 | 0.17 | % | |||||||||||
Junior subordinated debentures | 111,213 | 1,290 | 4.59 | % | 111,213 | 1,185 | 4.22 | % | |||||||||||
Total interest-bearing liabilities | 6,515,133 | 8,649 | 0.53 | % | 6,762,318 | 7,066 | 0.42 | % | |||||||||||
Noninterest-bearing checking deposits (f) | 1,676,344 | 1,544,953 | |||||||||||||||||
Noninterest-bearing liabilities | 92,252 | 59,277 | |||||||||||||||||
Total liabilities | 8,283,729 | 8,366,548 | |||||||||||||||||
Shareholders’ equity | 1,216,326 | 1,185,357 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 9,500,055 | $ | 9,551,905 | |||||||||||||||
Net interest income/ Interest rate spread | 84,682 | 3.74 | % | 83,565 | 3.69 | % | |||||||||||||
Net interest-earning assets/ Net interest margin | $ | 2,252,857 | 3.86 | % | $ | 2,072,674 | 3.78 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.35 | X | 1.31 | X |
(a) | Average gross loans includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) | Interest income includes accretion/ amortization of deferred loan fees/ expenses, which were not material. |
(c) | Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) | Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(e) | Average balances include FHLB borrowings and collateralized borrowings. |
(f) | Average cost of deposits including noninterest-bearing checking were 0.37% and 0.29%, respectively. |
(g) | Annualized. Shown on a fully tax-equivalent basis (“FTE”). The FTE basis adjusts for the tax benefit of income on certain tax exempt loans and investments using the federal statutory rate applicable to each period presented. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. GAAP basis yields were: loans — 4.50% and 4.44%, respectively; investment securities — 1.63% and 1.62%, respectively; interest-earning assets — 4.25% and 4.08%, respectively. GAAP basis net interest rate spreads were 3.72% and 3.66%, respectively; and GAAP basis net interest margins were 3.84% and 3.75%, respectively. |
Rate | Volume | Net Change | |||||||
Interest earning assets: | |||||||||
Loans receivable | $ | 999 | 2,218 | 3,217 | |||||
Mortgage-backed securities | 383 | (116 | ) | 267 | |||||
Investment securities | (120 | ) | (632 | ) | (752 | ) | |||
FHLB stock | 34 | 1 | 35 | ||||||
Other interest-earning deposits | 202 | (269 | ) | (67 | ) | ||||
Total interest-earning assets | 1,498 | 1,202 | 2,700 | ||||||
Interest-bearing liabilities: | |||||||||
Savings deposits | 12 | (7 | ) | 5 | |||||
Interest-bearing checking deposits | 589 | 3 | 592 | ||||||
Money market deposit accounts | 233 | (86 | ) | 147 | |||||
Time deposits | 930 | (191 | ) | 739 | |||||
Borrowed funds | 5 | (10 | ) | (5 | ) | ||||
Junior subordinated debentures | 105 | — | 105 | ||||||
Total interest-bearing liabilities | 1,874 | (291 | ) | 1,583 | |||||
Net change in net interest income | $ | (376 | ) | 1,493 | 1,117 |
Six months ended June 30, | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
Average balance | Interest | Avg. yield/ cost (g) | Average balance | Interest | Avg. yield/ cost (g) | ||||||||||||||
Assets: | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Residential mortgage loans | $ | 2,758,849 | 55,612 | 4.03 | % | $ | 2,720,180 | 55,554 | 4.08 | % | |||||||||
Home equity loans | 1,289,842 | 30,369 | 4.75 | % | 1,321,902 | 28,545 | 4.35 | % | |||||||||||
Consumer loans | 646,666 | 15,451 | 4.82 | % | 588,043 | 14,623 | 5.01 | % | |||||||||||
Legacy consumer finance loans | 12,828 | 1,284 | 20.02 | % | 43,683 | 4,593 | 21.03 | % | |||||||||||
Commercial real estate loans | 2,494,925 | 56,214 | 4.48 | % | 2,443,262 | 53,633 | 4.37 | % | |||||||||||
Commercial loans | 609,752 | 15,070 | 4.92 | % | 538,760 | 11,602 | 4.28 | % | |||||||||||
Loans receivable (a) (b) (includes FTE adjustments of $674 and $1,085, respectively) | 7,812,862 | 174,000 | 4.49 | % | 7,655,830 | 168,550 | 4.44 | % | |||||||||||
Mortgage-backed securities (c) | 564,007 | 6,267 | 2.22 | % | 532,631 | 5,209 | 1.96 | % | |||||||||||
Investment securities (c) (includes FTE adjustments of $187 and $592, respectively) | 245,979 | 2,216 | 1.80 | % | 375,093 | 3,677 | 1.96 | % | |||||||||||
FHLB stock | 8,582 | 182 | 4.28 | % | 7,454 | 109 | 2.95 | % | |||||||||||
Other interest-earning deposits | 68,970 | 604 | 1.74 | % | 257,427 | 1,196 | 0.92 | % | |||||||||||
Total interest-earning assets (includes FTE adjustments of $862 and $1,677, respectively) | 8,700,400 | 183,269 | 4.25 | % | 8,828,435 | 178,741 | 4.08 | % | |||||||||||
Noninterest earning assets (d) | 755,764 | 751,774 | |||||||||||||||||
Total assets | $ | 9,456,164 | $ | 9,580,209 | |||||||||||||||
Liabilities and shareholders’ equity: | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||
Savings deposits | $ | 1,684,909 | 1,522 | 0.18 | % | $ | 1,708,441 | 1,524 | 0.18 | % | |||||||||
Interest-bearing checking deposits | 1,443,981 | 1,477 | 0.21 | % | 1,437,112 | 399 | 0.06 | % | |||||||||||
Money market deposit accounts | 1,699,222 | 2,264 | 0.27 | % | 1,859,383 | 2,138 | 0.23 | % | |||||||||||
Time deposits | 1,427,921 | 8,504 | 1.20 | % | 1,545,959 | 7,230 | 0.94 | % | |||||||||||
Borrowed funds (e) | 118,743 | 173 | 0.29 | % | 131,750 | 112 | 0.17 | % | |||||||||||
Junior subordinated debentures | 111,213 | 2,475 | 4.43 | % | 111,213 | 2,353 | 4.21 | % | |||||||||||
Total interest-bearing liabilities | 6,485,989 | 16,415 | 0.51 | % | 6,793,858 | 13,756 | 0.41 | % | |||||||||||
Noninterest-bearing checking deposits | 1,641,493 | 1,525,723 | |||||||||||||||||
Noninterest-bearing liabilities | 117,530 | 82,997 | |||||||||||||||||
Total liabilities | 8,245,012 | 8,402,578 | |||||||||||||||||
Shareholders’ equity | 1,211,152 | 1,177,631 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 9,456,164 | $ | 9,580,209 | |||||||||||||||
Net interest income/ Interest rate spread | 166,854 | 3.74 | % | 164,985 | 3.67 | % | |||||||||||||
Net interest-earning assets/ Net interest margin | $ | 2,214,411 | 3.84 | % | $ | 2,034,577 | 3.74 | % | |||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.34 | X | 1.30 | X |
(a) | Average gross loans includes loans held as available-for-sale and loans placed on nonaccrual status. |
(b) | Interest income includes accretion/ amortization of deferred loan fees/ expenses, which were not material. |
(c) | Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale. |
(d) | Average balances include the effect of unrealized gains or losses on securities held as available-for-sale. |
(e) | Average balances include FHLB borrowings and collateralized borrowings. |
(f) | Average cost of deposits were 0.35% and 0.28%, respectively. |
(g) | Annualized. Shown on a fully tax-equivalent basis (“FTE”). The FTE basis adjusts for the tax benefit of income on certain tax exempt loans and investments using the federal statutory rate applicable to each period presented. We believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts. GAAP basis yields were: loans – 4.47% and 4.41%, respectively; investment securities – 1.65% and 1.64%, respectively; interest-earning assets – 4.23% and 4.04%, respectively. GAAP basis net interest rate spreads were 3.72% and 3.64%, respectively; and GAAP basis net interest margins were 3.82% and 3.70%, respectively. |
Rate | Volume | Net Change | |||||||
Interest earning assets: | |||||||||
Loans receivable | $ | 1,953 | 3,497 | 5,450 | |||||
Mortgage-backed securities | 751 | 307 | 1,058 | ||||||
Investment securities | (298 | ) | (1,163 | ) | (1,461 | ) | |||
FHLB stock | 56 | 17 | 73 | ||||||
Other interest-earning deposits | 584 | (1,176 | ) | (592 | ) | ||||
Total interest-earning assets | 3,046 | 1,482 | 4,528 | ||||||
Interest-bearing liabilities: | |||||||||
Savings deposits | 19 | (21 | ) | (2 | ) | ||||
Interest-bearing checking deposits | 1,071 | 7 | 1,078 | ||||||
Money market deposit accounts | 310 | (184 | ) | 126 | |||||
Time deposits | 1,826 | (552 | ) | 1,274 | |||||
Borrowed funds | 72 | (11 | ) | 61 | |||||
Junior subordinated debentures | 122 | — | 122 | ||||||
Total interest-bearing liabilities | 3,420 | (761 | ) | 2,659 | |||||
Net change in net interest income | $ | (374 | ) | 2,243 | 1,869 |
Increase | Decrease | |||||||||||||||
Parallel shift in interest rates over the next 12 months | 100 bps | 200 bps | 300 bps | 100 bps | ||||||||||||
Projected percentage increase/ (decrease) in net interest income | 0.3 | % | 1.3 | % | 1.5 | % | (5.8 | )% | ||||||||
Projected percentage increase/ (decrease) in net income | 2.2 | % | 5.9 | % | 7.7 | % | (13.9 | )% | ||||||||
Projected increase/ (decrease) in return on average equity | 2.1 | % | 5.6 | % | 7.3 | % | (13.3 | )% | ||||||||
Projected increase/ (decrease) in earnings per share | $ | 0.03 | $ | 0.08 | $ | 0.10 | $ | (0.16 | ) | |||||||
Projected percentage increase/ (decrease) in market value of equity | (3.8 | )% | (6.7 | )% | (10.2 | )% | 0.7 | % |
Month | Number of shares purchased | Average price paid per share | Total number of shares purchased as part of a publicly announced repurchase plan (1) | Maximum number of shares yet to be purchased under the plan (1) | |||||||||
April | — | $ | — | — | 4,834,089 | ||||||||
May | — | — | — | 4,834,089 | |||||||||
June | — | — | — | 4,834,089 | |||||||||
— | $ | — |
(1) | Reflects the program for 5,000,000 shares announced December 13, 2012. This program does not have an expiration date. |
Employment agreement between Northwest Bank, a wholly-owned subsidiary of Northwest Bancshares, Inc. and Ronald J. Seiffert (incorporated by reference to the 8-K filed with the Securities and Exchange Commission on July18, 2018 (file 001-34582)) | |
Certification of the Chief Executive Officer pursuant to Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of the Chief Financial Officer pursuant to Rule 13a-15 or 15d-15 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
NORTHWEST BANCSHARES, INC. | |||
(Registrant) | |||
Date: | August 8, 2018 | By: | /s/ Ronald J. Seiffert |
Ronald J. Seiffert | |||
President and Chief Executive Officer | |||
(Duly Authorized Officer) | |||
Date: | August 8, 2018 | By: | /s/ William W. Harvey, Jr. |
William W. Harvey, Jr. | |||
Senior Executive Vice President, Finance and | |||
Chief Financial Officer | |||
(Principal Accounting Officer) |
August 8, 2018 | /s/ Ronald J. Seiffert | |
Date | Ronald J. Seiffert | |
President and Chief Executive Officer |
August 8, 2018 | /s/ William W. Harvey, Jr. | |
Date | William W. Harvey, Jr. | |
Chief Financial Officer |
August 8, 2018 | /s/ Ronald J. Seiffert | |
Date | Ronald J. Seiffert | |
President and Chief Executive Officer | ||
August 8, 2018 | /s/ William W. Harvey, Jr. | |
Date | William W. Harvey, Jr. | |
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
|
Document and Entity Information | ||
Entity Registrant Name | Northwest Bancshares, Inc. | |
Entity Central Index Key | 0001471265 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 103,161,338 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Marketable securities available-for-sale, amortized cost | $ 814,848 | $ 800,094 |
Marketable securities held-to-maturity, fair value | $ 25,212 | $ 29,667 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 103,122,890 | 102,394,828 |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Interest income: | ||||
Loans receivable | $ 88,106 | $ 84,714 | $ 173,326 | $ 167,465 |
Mortgage-backed securities | 3,254 | 2,987 | 6,267 | 5,209 |
Taxable investment securities | 648 | 981 | 1,326 | 1,987 |
Tax-free investment securities | 313 | 529 | 703 | 1,098 |
FHLB dividends | 85 | 50 | 182 | 109 |
Interest-earning deposits | 469 | 536 | 604 | 1,196 |
Total interest income | 92,875 | 89,797 | 182,408 | 177,064 |
Interest expense: | ||||
Deposits | 7,309 | 5,826 | 13,767 | 11,291 |
Borrowed funds | 1,340 | 1,240 | 2,648 | 2,465 |
Total interest expense | 8,649 | 7,066 | 16,415 | 13,756 |
Net interest income | 84,226 | 82,731 | 165,993 | 163,308 |
Provision for loan losses | 5,349 | 5,562 | 9,558 | 10,199 |
Net interest income after provision for loan losses | 78,877 | 77,169 | 156,435 | 153,109 |
Noninterest income: | ||||
Gain on sale of investments | 0 | 3 | 153 | 20 |
Service charges and fees | 12,908 | 12,749 | 24,807 | 24,466 |
Trust and other financial services income | 4,050 | 4,600 | 8,081 | 8,904 |
Insurance commission income | 2,090 | 2,353 | 4,839 | 5,147 |
Gain/ (loss) on real estate owned, net | 176 | (230) | (370) | (297) |
Income from bank owned life insurance | 2,333 | 1,652 | 3,323 | 2,720 |
Mortgage banking income | 77 | 434 | 301 | 674 |
Gain on sale of offices | 0 | 17,186 | 0 | 17,186 |
Other operating income | 2,475 | 2,730 | 4,763 | 4,161 |
Total noninterest income | 24,109 | 41,477 | 45,897 | 62,981 |
Noninterest expense: | ||||
Compensation and employee benefits | 39,031 | 38,175 | 75,541 | 76,447 |
Premises and occupancy costs | 6,824 | 7,103 | 14,131 | 14,619 |
Office operations | 3,768 | 4,170 | 7,176 | 8,392 |
Collections expense | 434 | 553 | 946 | 1,102 |
Processing expenses | 9,560 | 9,639 | 19,266 | 19,548 |
Marketing expenses | 2,014 | 2,846 | 4,154 | 4,994 |
Federal deposit insurance premiums | 671 | 856 | 1,388 | 2,023 |
Professional services | 2,819 | 2,452 | 5,096 | 5,027 |
Amortization of intangible assets | 1,520 | 1,749 | 3,040 | 3,498 |
Real estate owned expense | 133 | 217 | 425 | 499 |
Restructuring/ acquisition expense | 393 | 2,634 | 393 | 2,857 |
Other expenses | 2,620 | 2,868 | 5,652 | 5,902 |
Total noninterest expense | 69,787 | 73,262 | 137,208 | 144,908 |
Income before income taxes | 33,199 | 45,384 | 65,124 | 71,182 |
Federal and state income taxes expense | 6,900 | 14,402 | 13,840 | 22,454 |
Net income | $ 26,299 | $ 30,982 | $ 51,284 | $ 48,728 |
Basic earnings per share (in dollars per share) | $ 0.26 | $ 0.31 | $ 0.50 | $ 0.48 |
Diluted earnings per share (in dollars per share) | $ 0.25 | $ 0.30 | $ 0.50 | $ 0.48 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding losses, tax | $ 494 | $ (845) | $ 2,081 | $ (1,159) |
Reclassification adjustment for gains included in net income, tax | 30 | 39 | 37 | 47 |
Change in fair value of interest rate swaps, tax | (58) | (118) | (153) | (281) |
Reclassification adjustments for prior period service costs and net losses included in net income, tax | $ (91) | $ (154) | $ (181) | $ (307) |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Other comprehensive income, tax | $ 375 | $ (1,078) | $ 1,784 | $ (1,700) |
Dividends paid, per share (in dollars per share) | $ 0.17 | $ 0.16 | $ 0.34 | $ 0.32 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Cash Flows [Abstract] | ||
Interest on deposits and borrowings, interest credited to deposit accounts | $ 13,115 | $ 11,028 |
Basis of Presentation and Informational Disclosures |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Informational Disclosures | Basis of Presentation and Informational Disclosures Northwest Bancshares, Inc. (the “Company”) or (“NWBI”), a Maryland corporation headquartered in Warren, Pennsylvania, is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. The primary activity of the Company is the ownership of all of the issued and outstanding common stock of Northwest Bank, a Pennsylvania-chartered savings bank (“Northwest”). Northwest is regulated by the FDIC and the Pennsylvania Department of Banking. Northwest operates 172 community-banking offices throughout Pennsylvania, western New York, and eastern Ohio. The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiary, Northwest, and Northwest’s subsidiaries Northwest Capital Group, Inc., Allegheny Services, Inc., Great Northwest Corporation, and The Bert Company. The unaudited consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or footnotes required for complete annual financial statements. In the opinion of management, all adjustments necessary for the fair presentation of the Company’s financial position and results of operations have been included. The consolidated statements have been prepared using the accounting policies described in the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 updated, as required, for any new pronouncements or changes. Certain items previously reported have been reclassified to conform to the current year's reporting format. The results of operations for the quarter and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018, or any other period. Stock-Based Compensation On May 14, 2018, the Company awarded employees 831,160 stock options and directors 64,800 stock options with an exercise price of $16.59 and grant date fair value of $1.49 per stock option, and the Company awarded employees 390,030 restricted common shares and directors 24,300 restricted common shares with a grant date fair value of $16.59. Awarded stock options and common shares vest over a seven-year period with the first vesting occurring on the grant date. Stock-based compensation expense of $2.3 million and $1.7 million for the quarters ended June 30, 2018 and 2017, and $3.3 million million and $2.6 million for the six months ended June 30, 2018 and 2017, respectively, was recognized in compensation expense relating to our stock benefit plans. At June 30, 2018 there was compensation expense of $4.6 million to be recognized for awarded but unvested stock options and $19.6 million for unvested common shares. Income Taxes- Uncertain Tax Positions Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. At June 30, 2018 we had no liability for unrecognized tax benefits. We recognize interest accrued related to: (1) unrecognized tax benefits in other expenses and (2) refund claims in other operating income. We recognize penalties (if any) in other expenses. We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2017, 2016, 2015 and 2014. Recently Adopted Accounting Standards In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”. Effective January 1, 2018, we adopted the ASU and all related amendments to all contracts using the modified retrospective approach, with the cumulative effect recorded as an adjustment to opening retained earnings. Due to immateriality, we had no cumulative effect to record. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. Our revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The services that fall within the scope of ASC 606 include service charges and fees, trust and other financial services income, insurance commission income, sale of OREO and other operating income. Revenue is recognized when performance obligations under the terms of a contract with our customers are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The majority of our revenue continues to be recognized at the point in time when the services are provided to our customers. Service charges and fees represents income earned on both loan and deposit accounts as well as interchange income. Service charges on deposit accounts primarily consist of overdraft, non-sufficient funds, ATM transaction fees and account management fees. Revenue is recognized at the point in time the transaction occurs or the service is provided to the customer. We earn interchange income from debit and credit cardholder transactions processed through payment networks. Interchange fees represent a percentage of the underlying transaction value and are generally set by the credit card associations. Interchange fees are recognized as transactions occur. We provide trust management services and investment management services to our customers and recognize revenue as these management services are provided. Trust and investment management services are billed and paid on a monthly or quarterly basis. Additionally, we earn commissions on investment products that are sold to our customers. These commissions are recognized at the time of the sale of the third party’s product or services to our customers. Our insurance subsidiary is an employee benefits and property and casualty insurance agency specializing in commercial and personal insurance as well as retirement benefit plans. Insurance commission income is earned at the time of sale of the third party’s product or service to our customers. Loss on real estate owned represents gains and losses on real estate acquired by Northwest through the foreclosure process. Proceeds from the sale of these properties are recognized when control of the property transfers to the buyer. In certain instances the Bank may finance a portion of the purchase price paid by the buyer and an additional evaluation of whether all of the contract criteria are met is required. If it is not probable that we will collect substantially all of the consideration expected, the transaction would not be accounted for as a sale until the concerns about collectability are resolved. Other operating income consists primarily of revenues earned for providing transaction services to our deposit customers. The revenue is earned at the point in time the transaction occurs. We have evaluated the nature of our contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. In January 2016 the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10)”. This guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this guidance as of January 1, 2018 which did not have a material impact on our results of operations and financial position. Additionally, this guidance requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation did not have a significant impact on our fair value disclosures. Refer to note 9, "Disclosures About Fair Value of Financial Instruments". In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments”. The main objective of this ASU is to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in this Update provide guidance on the following eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance (BOLI) policies, distributions received from equity method investments, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This guidance is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this guidance on January 1, 2018 and applied it on a retrospective basis. No material reclassifications were made for the six months ended and we do not expect the reclassifications to be material for the full year. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". This guidance eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under this guidance goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. This guidance is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017.We have elected to early adopt this standard as of January 1, 2018 and the amendments were applied on a prospective basis. The adoption did not have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. This guidance provides a more robust framework to use in determining when a set of assets and activities (“set”) is a business and to address stakeholder feedback that the definition of a business in current GAAP is applied too broadly. The primary amendments in the ASU provide a screen to exclude transactions where substantially all of the fair value of the transferred set is concentrated in a single asset, or group of similar assets, from being evaluated as a business. We adopted this standard on January 1, 2018 and will apply the guidance to future transactions. In March 2017, the FASB issued ASU No. 2017-07, “Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Costs". This guidance provides financial statement users with clearer and disaggregated information related to the components of net periodic benefit cost and improve transparency of the presentation of net periodic benefit cost in the financial statements. Employers will present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Employers will present the other components of the net periodic benefit cost separately from the line items that includes the service cost outside of any subtotal of operating income, if one is presented. This guidance is effective for annual and interim periods beginning after December 15, 2017 and should be applied retrospectively. We adopted this standard as of January 1, 2018. The other components of the net periodic benefit cost for the quarter and six months ended June 30, 2017 totaled $517,000 and $1.0 million, respectivey, and were reclassified from compensation and employee benefits to other expense. In March 2017, the FASB issued ASU 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities". This guidance shortens the amortization period for certain callable debt securities held at a premium to the earliest call date from the maturity date. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted in any interim period. We have elected to early adopt this standard as of January 1, 2018. The adoption did not have a material impact on our results of operations or financial position. In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting”. This guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award's fair value, (ii) the award's vesting conditions and (iii) the award's classification as an equity or liability instrument. This guidance is effective for annual and interim periods beginning after December 15, 2017 and should be applied on a prospective basis to an award modified on or after the adoption date. We adopted this standard as of January 1, 2018 and will apply the guidance to future modifications. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance permits a reclassification from accumulated other comprehensive income to retained earnings of the stranded tax effects resulting from the Tax Cuts and Jobs Act. This guidance is effective for annual or interim reporting periods beginning after December 15, 2018 but permits early adoption in a period for which financial statements have not been issued. We have elected to early adopt the ASU as of January 1, 2018. The reclassification from accumulated other comprehensive income to retained earnings was $6.7 million for the release of stranded income tax benefits relating to the unrealized net gains and losses on available for sale securities and the change in fair value of our interest rate swaps and our pension plan. Our policy for releasing income tax effects from accumulated other comprehensive income is to release them when investments are sold or matured and liabilities are extinguished. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-2, “Leases”. This guidance requires a lessee to recognize in the statement of financial condition a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the term of the lease. Optional periods should only be recognized if the lessee is reasonably certain to exercise the option. For leases with a term of twelve months or less, the lessee is permitted not to recognize lease assets and lease liabilities and should recognize lease expense for such leases generally on a straight-line basis over the term of the lease. This guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those years and early adoption is permitted. We lease certain branch and office facilities or land under operating leases. While we are currently evaluating the impact this guidance will have on our results of operations and financial position, we expect the primary impact on the consolidated statement of financial position will be the recognition of right-of-use assets and lease obligations under the ASU as a result of our minimum commitments under non-cancellable operating lease. Our current minimum commitments under non-cancellable operating leases are disclosed in Note 7, “Premises and Equipment” in our Annual Report on Form 10-K for the year ended December 31, 2017. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments", which eliminates the probable initial recognition threshold for credit losses requiring, instead, that all financial assets (or group of financial assets) measured at amortized cost be presented at the net amount expected to be collected inclusive of the entity’s current estimate of all lifetime expected credit losses. This guidance also applies to certain off-balance-sheet credit exposures such as unfunded commitments and non-derivative financial guarantees. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) in order to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The income statement under this guidance will reflect the initial recognition of current expected credit losses for newly recognized assets, as well as any increases or decreases of expected credit losses that have occurred during the period. This guidance retains many currently-existing disclosures related to the credit quality of an entity’s assets and the related allowance for credit losses amended to reflect the change to an expected credit loss methodology, as well as enhanced disclosures to provide information to users at a more disaggregated level. Upon adoption, ASU 2016-13 provides for a modified retrospective transition by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is effective, except for debt securities for which other-than-temporary impairment has previously been recognized. For these debt securities, a prospective transition is provided in order to maintain the same amortized cost prior to and subsequent to the effective date of the ASU. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods with early adoption permitted for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. Management created a formal working group to govern the implementation of these amendments consisting of key stakeholders from finance, risk, credit and accounting. We are currently in the process of designing current expected credit loss estimation methodologies and systems, and collecting data to be able to comply with the standard. We are also evaluating the effect this guidance will have on our results of operations, financial position and related disclosures. The impact of the ASU will depend upon the state of the economy and the nature of our portfolios, among other items, at the date of adoption. |
Investment securities and impairment of investment securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities and impairment of investment securities | Investment securities and impairment of investment securities The following table shows the portfolio of investment securities available-for-sale at June 30, 2018 (in thousands):
The following table shows the portfolio of investment securities available-for-sale at December 31, 2017 (in thousands):
The following table shows the portfolio of investment securities held-to-maturity at June 30, 2018 (in thousands):
The following table shows the portfolio of investment securities held-to-maturity at December 31, 2017 (in thousands):
The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2018 (in thousands):
The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2017 (in thousands):
We review our investment portfolio for indications of impairment. This review includes analyzing the length of time and the extent to which amortized costs have exceeded fair values, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer, and the intent and ability to hold the investments for a period of time sufficient to allow for a recovery in value. We do not have the intent to sell these securities and it is more likely than not that we will not have to sell these securities before a recovery of our cost basis. For these reasons, we consider the unrealized losses to be temporary impairment losses. Credit related impairment on all debt securities is recognized in earnings while noncredit related impairment on available-for-sale debt securities, not expected to be sold, is recognized in other comprehensive income. The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the quarter and six months ended June 30,:
(1) The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.
(1) The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods. |
Loans receivable |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | Loans receivable The following table shows a summary of our loans receivable at June 30, 2018 and December 31, 2017 (in thousands):
(1) Includes $0 and $3.1 million of loans held for sale at June 30, 2018 and December 31, 2017, respectively. (2) Represents loans from our consumer finance subsidiary that was closed in 2017, which are no longer being originated. Acquired loans were initially measured at fair value and subsequently accounted for under either Accounting Standards Codification (“ASC”) Topic 310-30 or ASC Topic 310-20. The following table provides information related to the outstanding principal balance and related carrying value of acquired loans for the dates indicated (in thousands):
The following table provides information related to the changes in the accretable discount, which includes income recognized from contractual cash flows for the dates indicated (in thousands):
The following table provides information related to acquired impaired loans by portfolio segment and by class of financing receivable at and for the six months ended June 30, 2018 (in thousands):
The following table provides information related to acquired impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2017 (in thousands):
The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2018 (in thousands):
The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2017 (in thousands):
The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2018 (in thousands):
The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2017 (in thousands):
The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at June 30, 2018 (in thousands):
The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2017 (in thousands):
The following table provides information related to the composition of originated impaired loans by portfolio segment and by class of financing receivable at and for the six months ended June 30, 2018 (in thousands):
The following table provides information related to the composition of originated impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2017 (in thousands):
At June 30, 2018, we expect to fully collect the carrying value of our purchased credit impaired loans and have determined that we can reasonably estimate their future cash flows including those loans that are 90 days or more delinquent. As a result, we do not consider our purchased credit impaired loans that are 90 days or more delinquent to be nonaccrual or impaired and continue to recognize interest income on these loans, including the loans’ accretable discount. The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at June 30, 2018 (in thousands):
The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at December 31, 2017 (in thousands):
Our loan portfolios include loans that have been modified in a troubled debt restructuring ("TDR"), where concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include: extending the note’s maturity date, permitting interest only payments, reducing the interest rate to a rate lower than current market rates for new debt with similar risk, reducing the principal payment, principal forbearance or other actions. These concessions are applicable to all loan segments and classes. Certain TDRs are classified as nonperforming at the time of restructuring and may be returned to performing status after considering the borrower’s sustained repayment performance for a period of at least six months. When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, the loan’s observable market price or the current fair value of the collateral, less selling costs, for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment, using ASC 310-10. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, we evaluate the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, partial charge-offs may be taken to further write-down the carrying value of the loan, or the loan may be charged-off completely. The following table provides a roll forward of troubled debt restructurings for the periods indicated (dollars in thousands):
The following table provides a roll forward of troubled debt restructurings for the periods indicated (dollars in thousands):
The following tables provide information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):
During the quarter and six months ended June 30, 2018 and 2017, no TDRs modified within the previous twelve months have subsequently defaulted. The following table provides information as of June 30, 2018 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2018 (dollars in thousands):
The following table provides information as of June 30, 2017 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2017 (dollars in thousands):
The following table provides information as of June 30, 2018 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2018 (dollars in thousands):
The following table provides information as of June 30, 2017 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2017 (dollars in thousands):
During the six month ended ended June 30, 2018, no TDRs were re-modified. During the six months ended June 30, 2017, one residential mortgage TDR was re-modified. The following table provides information related to loan payment delinquencies at June 30, 2018 (in thousands):
The following table provides information related to loan payment delinquencies at December 31, 2017 (in thousands):
(1) Represents acquired loans that were originally recorded at fair value upon acquisition. These loans are considered to be accruing because we can reasonably estimate future cash flows and expect to fully collect the carrying value of these loans. Therefore, we are accreting the difference between the carrying value and their expected cash flows into interest income. Credit quality indicators: We categorize 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. We analyze loans individually by classifying the loans by credit risk. Credit relationships greater than or equal to $1.0 million classified as special mention or substandard are reviewed quarterly for deterioration or improvement to determine if the loan is appropriately classified. We use the following definitions for risk ratings other than pass: Special mention — Loans designated as special mention have specific, well-defined risk issues, which create a high level of uncertainty regarding the long-term viability of the business. Loans in this class are considered to have high-risk characteristics. A special mention loan exhibits material negative financial trends due to company-specific or systemic conditions. If these potential weaknesses are not mitigated, they threaten the borrower’s capacity to meet its debt obligations. Special mention loans still demonstrate sufficient financial flexibility to react to and positively address the root cause of the adverse financial trends without significant deviations from their current business strategy. Their potential weaknesses deserve our close attention and warrant enhanced monitoring. Substandard — Loans classified as substandard are inadequately protected by the current net worth and payment 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 we 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. In addition, those weaknesses make collection or liquidation in full highly questionable and improbable. A loan classified as doubtful exhibits discernible loss potential, but a complete loss seems very unlikely. The possibility of a loss on a doubtful loan is high, but because of certain important and reasonably specific pending factors that may strengthen the loan, its classification as an estimated loss is deferred until a more exact status can be determined. Loss — Loans classified as loss are considered uncollectible and of such value that the continuance as a loan is not warranted. A loss classification does not mean that the loan has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off all or a portion of a basically worthless loan even though partial recovery may be possible in the future. The following table sets forth information about credit quality indicators updated during the quarter ended June 30, 2018 (in thousands):
The following table sets forth information about credit quality indicators, which were updated during the year ended December 31, 2017 (in thousands):
|
Goodwill and Other Intangible Assets |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):
The following table shows the actual aggregate amortization expense for the quarters ended June 30, 2018 and 2017, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):
The following table provides information for the changes in the carrying amount of goodwill (in thousands):
We performed our annual goodwill impairment test as of June 30, 2018 using Accounting Standard Codification 350, ("Step 0"), as updated by ASU 2017-04 and concluded that goodwill was not impaired. |
Borrowed Funds |
6 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Borrowed Funds | Borrowed Funds Borrowings Borrowings from the Federal Home Loan Bank of Pittsburgh ("FHLB"), if any, are secured by our residential first mortgage and other qualifying loans. Certain of these borrowings are subject to restrictions or penalties in the event of prepayment. The revolving line of credit with the FHLB carries a commitment of $150.0 million. The rate is adjusted daily by the FHLB, and any borrowings on this line may be repaid at any time without penalty. At June 30, 2018 and December 31, 2017 the revolving line of credit was undrawn. At June 30, 2018 and December 31, 2017 collateralized borrowings, due within one year, were $99.9 million, and $108.2 million, respectively. These borrowings are collateralized by cash or various securities held in safekeeping by the FHLB. Trust Preferred Securities We have 3 statutory business trusts: Northwest Bancorp Capital Trust III, a Delaware statutory business trust, Northwest Bancorp Statutory Trust IV, a Connecticut statutory business trust and LNB Trust II, a Delaware statutory business trust (the Trusts). The trusts exist solely to issue preferred securities to third parties for cash, issue common securities to the Company in exchange for capitalization of the Trusts, invest the proceeds from the sale of trust securities in an equivalent amount of debentures of the Company, and engage in other activities that are incidental to those previously listed. Northwest Bancorp Capital Trust III issued 50,000 cumulative trust preferred securities in a private transaction to a pooled investment vehicle on December 5, 2005 (liquidation value of $1,000 per preferred security or $50,000,000) with a stated maturity of December 30, 2035 and a floating rate of interest, which is reset quarterly, equal to three-month LIBOR plus 1.38%. Northwest Bancorp Statutory Trust IV issued 50,000 cumulative trust preferred securities in a private transaction to a pooled investment vehicle on December 15, 2005 (liquidation value of $1,000 per preferred security or $50,000,000) with a stated maturity of December 15, 2035 and a floating rate of interest, which is reset quarterly, equal to three-month LIBOR plus 1.38%. LNB Trust II has 7,875 cumulative trust preferred securities outstanding (liquidation value of $1,000 per preferred security or $7,875,000) with a stated maturity of June 15, 2037 and a floating rate of interest, which resets quarterly, equal to three-month LIBOR plus 1.48%. As the shareholders of the trust preferred securities are the primary beneficiaries of the Trusts, the Trusts are not consolidated in our financial statements. The Trusts have invested the proceeds of the offerings in junior subordinated deferrable interest debentures issued by the Company. The structure of these debentures mirrors the structure of the trust-preferred securities. Northwest Bancorp Capital Trust III holds $51,547,000 of the Company’s junior subordinated debentures due December 30, 2035 with a floating rate of interest, reset quarterly, of three-month LIBOR plus 1.38%. The rate in effect at June 30, 2018 was 3.72%. Northwest Bancorp Statutory Trust IV holds $51,547,000 of the Company’s junior subordinated debentures due December 15, 2035 with a floating rate of interest, reset quarterly, of three-month LIBOR plus 1.38%. The rate in effect at June 30, 2018 was 3.72%. LNB Trust II holds $8,119,000 of the Company's junior subordinated debentures due June 15, 2037, with a floating rate of interest, reset quarterly, of three-month LIBOR plus 1.48%. The rate in effect at June 30, 2018 was 3.82%. Cash distributions on the trust securities are made on a quarterly basis to the extent interest on the debentures is received by the Trusts. We have the right to defer payment of interest on the subordinated debentures at any time, or from time-to-time, for periods not exceeding 5 years. If interest payments on the subordinated debentures are deferred, the distributions on the trust securities also are deferred. To date there have been no interest deferrals. Interest on the subordinated debentures and distributions on the trust securities is cumulative. Our obligation constitutes a full, irrevocable, and unconditional guarantee on a subordinated basis of the obligations of the trust under the preferred securities. The Trusts must redeem the preferred securities when the debentures are paid at maturity or upon an earlier redemption of the debentures to the extent the debentures are redeemed. All or part of the debentures may be redeemed at any time. Also, the debentures may be redeemed at any time if existing laws or regulations, or the interpretation or application of these laws or regulations, change causing:
We may, at any time, dissolve any of the Trusts and distribute the debentures to the trust security holders, subject to receipt of any required regulatory approval. |
Guarantees |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Guarantees [Abstract] | |
Guarantees | Guarantees We issue standby letters of credit in the normal course of business. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party. We are required to perform under a standby letter of credit when drawn upon by the guaranteed third party in the case of nonperformance by our customer. The credit risk associated with standby letters of credit is essentially the same as that involved in extending loans to customers and is subject to normal loan underwriting procedures. Collateral may be obtained based on management’s credit assessment of the customer. At June 30, 2018, the maximum potential amount of future payments we could be required to make under these non-recourse standby letters of credit was $30.2 million, of which $15.8 million is fully collateralized. At June 30, 2018, we had a liability, which represents deferred income, of $99,000 related to the standby letters of credit. |
Earnings Per Share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per common share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period, without considering any dilutive items. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. All stock options outstanding during the quarter ended June 30, 2018 and 2017, were included in the computation of diluted earnings per share because the options’ exercise price was less than the average market price of the common shares of $17.07 and $15.97, respectively. All stock options outstanding during the six months ended June 30, 2018 and 2017, were included in the computation of diluted earnings per share because the options’ exercise price was less than the average market price of the common shares of $16.95 and $16.75, respectively. The computation of basic and diluted earnings per share follows (in thousands, except share data and per share amounts):
|
Pension and Other Post-retirement Benefits |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-retirement Benefits | Pension and Other Post-retirement Benefits The following table sets forth the net periodic costs for the defined benefit pension plans and post retirement healthcare plans for the periods indicated (in thousands):
We anticipate making a contribution to our defined benefit pension plan of $4.0 million to $6.0 million during the year ending December 31, 2018. |
Disclosures About Fair Value of Financial Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Financial Instruments | Disclosures About Fair Value of Financial Instruments We are required to disclose fair value information about financial instruments whether or not recognized in the consolidated statement of financial condition. Fair value information of certain financial instruments and all nonfinancial instruments is not required to be disclosed. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. Financial assets and liabilities recognized or disclosed at fair value on a recurring basis and certain financial assets and liabilities on a non-recurring basis are accounted for using a three-level hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. This hierarchy gives the highest priority to quoted prices with readily available independent data in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable market inputs (Level 3). When various inputs for measurement fall within different levels of the fair value hierarchy, the lowest level input that has a significant impact on fair value measurement is used. Financial assets and liabilities are categorized based upon the following characteristics or inputs to the valuation techniques:
We are responsible for the valuation process and as part of this process may use data from outside sources in establishing fair value. We perform due diligence to understand the inputs used or how the data was calculated or derived. We also corroborate the reasonableness of external inputs in the valuation process. The carrying amounts reported in the consolidated statement of financial condition approximate fair value for the following financial instruments: cash on hand, interest-earning deposits in other institutions, federal funds sold and other short term investments, accrued interest receivable, accrued interest payable, and marketable securities available-for-sale. Marketable Securities Where available, market values are based on quoted market prices, dealer quotes, and prices obtained from independent pricing services. Debt securities - available for sale - Generally, debt securities are valued using pricing for similar securities, recently executed transactions and other pricing models utilizing observable inputs. The valuation for most debt securities is classified as Level 2. Securities within Level 2 include corporate bonds, municipal bonds, mortgage-backed securities and US government obligations. Equity securities - available for sale - Publicly traded securities valued using quoted market prices are classified as Level 1. We consider the financial condition of the issuer to determine if the securities have indicators of impairment. Debt securities - held to maturity - The fair value of debt securities held to maturity is determined in the same manner as debt securities available for sale. Loans Held for Sale The estimated fair value of loans held for sale is based on market bids obtained from potential buyers. Loans Held for Investment With the adoption of ASU 2016-01 on January 1, 2018, we refined our methodology to estimate the fair value of our loan portfolio to use the exit price notion as required by the guidance, which was applied on a prospective basis resulting in prior-periods no longer being comparable. The fair value of the loans is estimated using a discounted cash flow analysis that utilizes interest rates currently being offered for similar loans adjusted for liquidity and credit risk. Federal Home Loan Bank (“FHLB”) Stock Due to the restrictions placed on the transferability of FHLB stock is classified as Level 3. Borrowed Funds Fixed rate advances are valued by comparing their contractual cost to the prevailing market cost. The carrying amount of collateralized borrowings approximates the fair value. Junior Subordinated Debentures The fair value of junior subordinated debentures is calculated using the discounted cash flows at the prevailing rate of interest. Cash Flow Hedges — Interest Rate and Foreign Exchange Swap Agreements ("swaps") The fair value of the interest rate swaps is based upon the present value of the expected future cash flows using the LIBOR swap curve, the basis for the underlying interest rate. To price interest rate swaps, cash flows are first projected for each payment date using the fixed rate for the fixed side of the swap and the forward rates for the floating side of the swap. These swap cash flows are then discounted to time zero using LIBOR zero-coupon interest rates. The sum of the present value of both legs is the fair market value of the interest rate swap. These valuations have been derived from our third party vendor’s proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions that we believe to be reasonable. The fair value of the foreign exchange swap is derived from proprietary models rather than actual market quotations. The proprietary models are based upon financial principles and assumptions we believe to be reasonable. Off-Balance Sheet Financial Instruments These financial instruments generally are not sold or traded, and estimated fair values are not readily available. However, the fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements. Commitments to extend credit are generally short-term in nature and, if drawn upon, are issued under current market terms. At June 30, 2018 and December 31, 2017, there was no significant unrealized appreciation or depreciation on these financial instruments. The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at June 30, 2018 (in thousands):
The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at December 31, 2017 (in thousands):
Fair value estimates are made at a point-in-time, based on relevant market data and information about the instrument. The methods and assumptions detailed above were used in estimating the fair value of financial instruments at both June 30, 2018 and December 31, 2017. There were no transfers of financial instruments between Level 1 and Level 2 during the quarter ended June 30, 2018. The following table represents assets and liabilities measured at fair value on a recurring basis at June 30, 2018 (in thousands):
The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2017 (in thousands):
The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands):
Certain assets and liabilities are measured at fair value on a nonrecurring basis after initial recognition such as loans held for sale, loans measured for impairment, real estate owned, and mortgage servicing rights. The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of June 30, 2018 (in thousands):
The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of December 31, 2017 (in thousands):
Impaired loans — A loan is considered to be impaired as described in Note 1 of the Notes to Consolidated Financial Statements in Item 8 of Part II of our 2017 Annual Report on Form 10-K. We classify loans individually evaluated for impairment that require a specific reserve as nonrecurring Level 3. Real Estate Owned — Real estate owned is comprised of property acquired through foreclosure or voluntarily conveyed by borrowers. These assets are recorded on the date acquired at the lower of the related loan balance or fair value, less estimated disposition costs, with the fair value being determined by appraisal. Subsequently, foreclosed assets are valued at the lower of the amount recorded at acquisition date or fair value, less estimated disposition costs. We classify real estate owned as nonrecurring Level 3. The table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2018 (dollar amounts in thousands):
|
Derivative Financial Instruments |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We are a party to derivative financial instruments in the normal course of business to manage our own exposure to fluctuations in interest rates and to meet the needs of our customers. The primary derivatives that we use are interest rate swaps and caps and foreign exchange contracts, which are entered into with counterparties that meet established credit standards. We believe that the credit risk inherent in all of our derivative contracts is minimal based on our credit standards and the netting and collateral provisions of the interest rate swap agreements. Derivatives Designated as Hedging Instruments We are currently a counterparty to two interest rate swap agreements (swaps), designating the swaps as cash flow hedges. The swaps are intended to protect against the variability of cash flows associated with Northwest Bancorp Capital Trust III and Northwest Bancorp Capital Trust IV. The first swap modifies the re-pricing characteristics of Northwest Bancorp Capital Trust III, wherein for 10 years expiring in September 2018, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 4.61% to the same counterparty calculated on a notional amount of $25.0 million. The second swap modifies the re-pricing characteristics of Northwest Bancorp Trust IV, wherein for ten years expiring in December 2018, the Company receives interest of three-month LIBOR from a counterparty and pays a fixed rate of 4.09% to the same counterparty calculated on a notional amount of $25.0 million. The swap agreements were entered into with a counterparty that met our credit standards and the agreements contain collateral provisions protecting the at-risk party. We believe that the credit risk inherent in the contracts is not significant. At June 30, 2018, $805,000 of cash was pledged as collateral to the counterparty. These cash flow hedges are recorded within other liabilities on the consolidated statement of financial condition at their estimated fair value. At June 30, 2018, the fair value of the swap agreements was $336,000. There was no material hedge ineffectiveness for any of the swaps discussed above. Derivatives Not Designated as Hedging Instruments In addition to our derivatives designated in hedge relationships, we act as an interest rate or foreign exchange swap counterparty for certain commercial borrowers in the normal course of servicing our customers, which are accounted for at fair value. We manage our exposure to such interest rate or foreign exchange swaps by entering into corresponding and offsetting interest rate swaps with third parties that mirror the terms of the swaps we have with the commercial borrowers. These positions (referred to as “customer swaps”) directly offset each other and our exposure is the fair value of the derivatives due to changes in credit risk of our commercial borrowers and third parties. Customer swaps are recorded within other assets or other liabilities on the consolidated statement of financial condition at their estimated fair value. Changes to the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statement of income. The following table presents information regarding our derivative financial instruments for the periods indicated:
The following table presents income or expense recognized on derivatives for the periods indicated:
|
Legal Proceedings |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings We establish accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated. As of June 30, 2018 we have not accrued for any legal proceedings based on our analysis of currently available information which is subject to significant judgment and a variety of assumptions and uncertainties. Any such accruals are adjusted thereafter as appropriate to reflect changes in circumstances. Due to the inherent subjectivity of assessments and unpredictability of outcomes of legal proceedings, any amounts accrued may not represent the ultimate loss to us from legal proceedings. |
Changes in Accumulated Other Comprehensive Income/ (Loss) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income/ (Loss) | Changes in Accumulated Other Comprehensive Income/ (Loss) The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):
|
Basis of Presentation and Informational Disclosures (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Income Taxes - Uncertain Tax Positions | Income Taxes- Uncertain Tax Positions Accounting standards prescribe a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. A tax benefit from an uncertain position may be recognized only if it is “more likely than not” that the position is sustainable, based on its technical merits. The tax benefit of a qualifying position is the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all relevant information. At June 30, 2018 we had no liability for unrecognized tax benefits. We recognize interest accrued related to: (1) unrecognized tax benefits in other expenses and (2) refund claims in other operating income. We recognize penalties (if any) in other expenses. We are subject to audit by the Internal Revenue Service and any state in which we conduct business for the tax periods ended December 31, 2017, 2016, 2015 and 2014. |
Recently Adopted Accounting Standards and Impact of New Accounting Standards | Recently Adopted Accounting Standards In May 2014 the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)”. Effective January 1, 2018, we adopted the ASU and all related amendments to all contracts using the modified retrospective approach, with the cumulative effect recorded as an adjustment to opening retained earnings. Due to immateriality, we had no cumulative effect to record. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new standard to be immaterial to our net income on an ongoing basis. Our revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The services that fall within the scope of ASC 606 include service charges and fees, trust and other financial services income, insurance commission income, sale of OREO and other operating income. Revenue is recognized when performance obligations under the terms of a contract with our customers are satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. The majority of our revenue continues to be recognized at the point in time when the services are provided to our customers. Service charges and fees represents income earned on both loan and deposit accounts as well as interchange income. Service charges on deposit accounts primarily consist of overdraft, non-sufficient funds, ATM transaction fees and account management fees. Revenue is recognized at the point in time the transaction occurs or the service is provided to the customer. We earn interchange income from debit and credit cardholder transactions processed through payment networks. Interchange fees represent a percentage of the underlying transaction value and are generally set by the credit card associations. Interchange fees are recognized as transactions occur. We provide trust management services and investment management services to our customers and recognize revenue as these management services are provided. Trust and investment management services are billed and paid on a monthly or quarterly basis. Additionally, we earn commissions on investment products that are sold to our customers. These commissions are recognized at the time of the sale of the third party’s product or services to our customers. Our insurance subsidiary is an employee benefits and property and casualty insurance agency specializing in commercial and personal insurance as well as retirement benefit plans. Insurance commission income is earned at the time of sale of the third party’s product or service to our customers. Loss on real estate owned represents gains and losses on real estate acquired by Northwest through the foreclosure process. Proceeds from the sale of these properties are recognized when control of the property transfers to the buyer. In certain instances the Bank may finance a portion of the purchase price paid by the buyer and an additional evaluation of whether all of the contract criteria are met is required. If it is not probable that we will collect substantially all of the consideration expected, the transaction would not be accounted for as a sale until the concerns about collectability are resolved. Other operating income consists primarily of revenues earned for providing transaction services to our deposit customers. The revenue is earned at the point in time the transaction occurs. We have evaluated the nature of our contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. In January 2016 the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10)”. This guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted this guidance as of January 1, 2018 which did not have a material impact on our results of operations and financial position. Additionally, this guidance requires entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation did not have a significant impact on our fair value disclosures. Refer to note 9, "Disclosures About Fair Value of Financial Instruments". In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments”. The main objective of this ASU is to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The amendments in this Update provide guidance on the following eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance (BOLI) policies, distributions received from equity method investments, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This guidance is effective for interim and annual reporting periods in fiscal years beginning after December 15, 2017. We adopted this guidance on January 1, 2018 and applied it on a retrospective basis. No material reclassifications were made for the six months ended and we do not expect the reclassifications to be material for the full year. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". This guidance eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under this guidance goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. This guidance is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017.We have elected to early adopt this standard as of January 1, 2018 and the amendments were applied on a prospective basis. The adoption did not have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business”. This guidance provides a more robust framework to use in determining when a set of assets and activities (“set”) is a business and to address stakeholder feedback that the definition of a business in current GAAP is applied too broadly. The primary amendments in the ASU provide a screen to exclude transactions where substantially all of the fair value of the transferred set is concentrated in a single asset, or group of similar assets, from being evaluated as a business. We adopted this standard on January 1, 2018 and will apply the guidance to future transactions. In March 2017, the FASB issued ASU No. 2017-07, “Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Costs and Net Periodic Postretirement Benefit Costs". This guidance provides financial statement users with clearer and disaggregated information related to the components of net periodic benefit cost and improve transparency of the presentation of net periodic benefit cost in the financial statements. Employers will present the service cost component of net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Employers will present the other components of the net periodic benefit cost separately from the line items that includes the service cost outside of any subtotal of operating income, if one is presented. This guidance is effective for annual and interim periods beginning after December 15, 2017 and should be applied retrospectively. We adopted this standard as of January 1, 2018. The other components of the net periodic benefit cost for the quarter and six months ended June 30, 2017 totaled $517,000 and $1.0 million, respectivey, and were reclassified from compensation and employee benefits to other expense. In March 2017, the FASB issued ASU 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities". This guidance shortens the amortization period for certain callable debt securities held at a premium to the earliest call date from the maturity date. This guidance is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted in any interim period. We have elected to early adopt this standard as of January 1, 2018. The adoption did not have a material impact on our results of operations or financial position. In May 2017, the FASB issued ASU 2017-09, “Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting”. This guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as a modification. Under ASU 2017-09, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the award's fair value, (ii) the award's vesting conditions and (iii) the award's classification as an equity or liability instrument. This guidance is effective for annual and interim periods beginning after December 15, 2017 and should be applied on a prospective basis to an award modified on or after the adoption date. We adopted this standard as of January 1, 2018 and will apply the guidance to future modifications. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." This guidance permits a reclassification from accumulated other comprehensive income to retained earnings of the stranded tax effects resulting from the Tax Cuts and Jobs Act. This guidance is effective for annual or interim reporting periods beginning after December 15, 2018 but permits early adoption in a period for which financial statements have not been issued. We have elected to early adopt the ASU as of January 1, 2018. The reclassification from accumulated other comprehensive income to retained earnings was $6.7 million for the release of stranded income tax benefits relating to the unrealized net gains and losses on available for sale securities and the change in fair value of our interest rate swaps and our pension plan. Our policy for releasing income tax effects from accumulated other comprehensive income is to release them when investments are sold or matured and liabilities are extinguished. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-2, “Leases”. This guidance requires a lessee to recognize in the statement of financial condition a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the term of the lease. Optional periods should only be recognized if the lessee is reasonably certain to exercise the option. For leases with a term of twelve months or less, the lessee is permitted not to recognize lease assets and lease liabilities and should recognize lease expense for such leases generally on a straight-line basis over the term of the lease. This guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those years and early adoption is permitted. We lease certain branch and office facilities or land under operating leases. While we are currently evaluating the impact this guidance will have on our results of operations and financial position, we expect the primary impact on the consolidated statement of financial position will be the recognition of right-of-use assets and lease obligations under the ASU as a result of our minimum commitments under non-cancellable operating lease. Our current minimum commitments under non-cancellable operating leases are disclosed in Note 7, “Premises and Equipment” in our Annual Report on Form 10-K for the year ended December 31, 2017. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments", which eliminates the probable initial recognition threshold for credit losses requiring, instead, that all financial assets (or group of financial assets) measured at amortized cost be presented at the net amount expected to be collected inclusive of the entity’s current estimate of all lifetime expected credit losses. This guidance also applies to certain off-balance-sheet credit exposures such as unfunded commitments and non-derivative financial guarantees. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) in order to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The income statement under this guidance will reflect the initial recognition of current expected credit losses for newly recognized assets, as well as any increases or decreases of expected credit losses that have occurred during the period. This guidance retains many currently-existing disclosures related to the credit quality of an entity’s assets and the related allowance for credit losses amended to reflect the change to an expected credit loss methodology, as well as enhanced disclosures to provide information to users at a more disaggregated level. Upon adoption, ASU 2016-13 provides for a modified retrospective transition by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is effective, except for debt securities for which other-than-temporary impairment has previously been recognized. For these debt securities, a prospective transition is provided in order to maintain the same amortized cost prior to and subsequent to the effective date of the ASU. This guidance is effective for annual reporting periods beginning after December 15, 2019, and interim periods within those annual periods with early adoption permitted for fiscal years beginning after December 15, 2018, and interim periods within those annual periods. Management created a formal working group to govern the implementation of these amendments consisting of key stakeholders from finance, risk, credit and accounting. We are currently in the process of designing current expected credit loss estimation methodologies and systems, and collecting data to be able to comply with the standard. We are also evaluating the effect this guidance will have on our results of operations, financial position and related disclosures. The impact of the ASU will depend upon the state of the economy and the nature of our portfolios, among other items, at the date of adoption. |
Investment securities and impairment of investment securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the portfolio of investment securities available-for-sale | The following table shows the portfolio of investment securities available-for-sale at June 30, 2018 (in thousands):
The following table shows the portfolio of investment securities available-for-sale at December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the portfolio of investment securities held-to-maturity | The following table shows the portfolio of investment securities held-to-maturity at June 30, 2018 (in thousands):
The following table shows the portfolio of investment securities held-to-maturity at December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the fair value and gross unrealized losses on investment securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position | The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2018 (in thousands):
The following table shows the fair value of and gross unrealized losses on investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold | The table below shows a cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold for the quarter and six months ended June 30,:
(1) The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods.
(1) The beginning balance represents credit losses included in other-than-temporary impairment charges recognized on debt securities in prior periods. |
Loans receivable (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loans receivable | The following table shows a summary of our loans receivable at June 30, 2018 and December 31, 2017 (in thousands):
(1) Includes $0 and $3.1 million of loans held for sale at June 30, 2018 and December 31, 2017, respectively. (2) Represents loans from our consumer finance subsidiary that was closed in 2017, which are no longer being originated. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information related to the outstanding principal balance and related carrying value of acquired loans | The following table provides information related to the outstanding principal balance and related carrying value of acquired loans for the dates indicated (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the changes in the accretable discount | The following table provides information related to the changes in the accretable discount, which includes income recognized from contractual cash flows for the dates indicated (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the composition of impaired loans by portfolio segment and by class of financing receivable | The following table provides information related to the composition of originated impaired loans by portfolio segment and by class of financing receivable at and for the six months ended June 30, 2018 (in thousands):
The following table provides information related to the composition of originated impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2017 (in thousands):
The following table provides information related to acquired impaired loans by portfolio segment and by class of financing receivable at and for the six months ended June 30, 2018 (in thousands):
The following table provides information related to acquired impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the changes in the allowance for losses on loans receivable | The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2018 (in thousands):
The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended June 30, 2017 (in thousands):
The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2018 (in thousands):
The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the six months ended June 30, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loan portfolio by portfolio segment and by class of financing receivable | The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at June 30, 2018 (in thousands):
The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the evaluation of impaired loans by portfolio segment and by class of financing receivable | The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at June 30, 2018 (in thousands):
The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of roll forward of troubled debt restructurings | The following table provides a roll forward of troubled debt restructurings for the periods indicated (dollars in thousands):
The following table provides a roll forward of troubled debt restructurings for the periods indicated (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable | The following tables provide information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of troubled debt restructurings (including re-modified TDRs) by type of modification by portfolio segment and by class of financing receivable | The following table provides information as of June 30, 2018 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2018 (dollars in thousands):
The following table provides information as of June 30, 2017 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the quarter ended June 30, 2017 (dollars in thousands):
The following table provides information as of June 30, 2018 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2018 (dollars in thousands):
The following table provides information as of June 30, 2017 for troubled debt restructurings (including re-modified TDRs) by type of modification, by portfolio segment and class of financing receivable for modifications during the six months ended June 30, 2017 (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of re-modified troubled debt restructurings by portfolio segment and by class of financing receivable | The following table provides information related to loan payment delinquencies at June 30, 2018 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loan delinquencies | The following table provides information related to loan payment delinquencies at June 30, 2018 (in thousands):
The following table provides information related to loan payment delinquencies at December 31, 2017 (in thousands):
(1) Represents acquired loans that were originally recorded at fair value upon acquisition. These loans are considered to be accruing because we can reasonably estimate future cash flows and expect to fully collect the carrying value of these loans. Therefore, we are accreting the difference between the carrying value and their expected cash flows into interest income. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of credit quality indicators | The following table sets forth information about credit quality indicators updated during the quarter ended June 30, 2018 (in thousands):
The following table sets forth information about credit quality indicators, which were updated during the year ended December 31, 2017 (in thousands):
|
Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets subject to amortization | The following table provides information for intangible assets subject to amortization at the dates indicated (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the actual aggregate amortization expense as well as estimated aggregate amortization expense, based upon current levels of intangible assets | The following table shows the actual aggregate amortization expense for the quarters ended June 30, 2018 and 2017, as well as the estimated aggregate amortization expense, based upon current levels of intangible assets, for the current fiscal year and each of the five succeeding fiscal years (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the changes in carrying amount of goodwill | The following table provides information for the changes in the carrying amount of goodwill (in thousands):
|
Earnings Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | The computation of basic and diluted earnings per share follows (in thousands, except share data and per share amounts):
|
Pension and Other Post-retirement Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net periodic costs for the defined benefit pension plans and the post retirement healthcare plans | The following table sets forth the net periodic costs for the defined benefit pension plans and post retirement healthcare plans for the periods indicated (in thousands):
|
Disclosures About Fair Value of Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the carrying amount and estimated fair value of the entity's financial instruments included in the consolidated statement of financial condition | The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at June 30, 2018 (in thousands):
The following table sets forth the carrying amount and estimated fair value of our financial instruments included in the consolidated statement of financial condition at December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table represents assets and liabilities measured at fair value on a recurring basis at June 30, 2018 (in thousands):
The following table represents assets and liabilities measured at fair value on a recurring basis at December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of debt securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The table below presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods indicated (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value measurement for nonrecurring assets | The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of June 30, 2018 (in thousands):
The following table represents the fair market measurement for only those nonrecurring assets that had a fair market value below the carrying amount as of December 31, 2017 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of quantitative information about assets measured at fair value on a recurring and nonrecurring basis for Level 3 fair value measurements | The table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at June 30, 2018 (dollar amounts in thousands):
|
Derivative Financial Instruments - (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial instruments | The following table presents information regarding our derivative financial instruments for the periods indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments gain (loss) | The following table presents income or expense recognized on derivatives for the periods indicated:
|
Changes in Accumulated Other Comprehensive Income/ (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income by component | The following table shows the changes in accumulated other comprehensive income by component for the periods indicated (in thousands):
|
Investment securities and impairment of investment securities - Cumulative roll forward of credit losses recognized in earnings for debt securities held and not intended to be sold (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Cumulative roll forward of credit related impairment losses recognized in earnings for debt securities held and not intended to be sold: | ||||
Beginning balance | $ 0 | $ 7,942 | $ 352 | $ 7,942 |
Credit losses on debt securities for which other-than-temporary impairment was not previously recognized | 0 | 0 | 0 | 0 |
Reduction for losses realized during the quarter | (352) | 0 | ||
Reduction for securities sold/ called realized during the six months | 0 | 0 | 0 | 0 |
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | 0 | 0 | 0 | 0 |
Ending balance | $ 0 | $ 7,942 | $ 0 | $ 7,942 |
Loans receivable - Outstanding Principal Balance and Related Carrying Value of Acquired Loans (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Acquired | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding principal balance | $ 739,944 | $ 833,940 |
Carrying value | 732,270 | 825,076 |
Acquired loans evaluated individually for future credit losses | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding principal balance | 8,674 | 9,735 |
Carrying value | 6,050 | 6,875 |
Acquired loans evaluated collectively for future credit losses | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding principal balance | 731,270 | 824,205 |
Carrying value | $ 726,220 | $ 818,201 |
Loans receivable - Changes in the Accretable Discount (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Changes in accretable yield | ||
Beginning balance | $ 1,540 | $ 2,187 |
Accretion | (423) | (1,318) |
Net reclassification from nonaccretable yield | 0 | 671 |
Ending balance | $ 1,117 | $ 1,540 |
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | $ 307,420 | $ 307,420 |
Goodwill from acquisition | 0 | 0 |
Balance at the end of the period | $ 307,420 | $ 307,420 |
Guarantees (Details) - Letter of Credit $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Guarantor Obligations [Line Items] | |
Maximum potential amount of future payments | $ 30,200 |
Maximum exposure collateralized | 15,800 |
Liability recognized for the obligations | $ 99 |
Earnings Per Share - Narrative (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Stock options | ||||
Antidilutive securities excluded from the calculation of earnings per share | ||||
Average share price during the reporting period (in dollars per share) | $ 17.07 | $ 15.97 | $ 16.95 | $ 16.75 |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Reported net income | $ 26,299 | $ 30,982 | $ 51,284 | $ 48,728 |
Weighted average common shares outstanding (in shares) | 101,870,043 | 100,950,772 | 101,735,235 | 100,798,209 |
Dilutive potential shares due to effect of stock options (in shares) | 1,554,111 | 1,498,921 | 1,545,885 | 1,726,849 |
Total weighted average common shares and dilutive potential shares (in shares) | 103,424,154 | 102,449,693 | 103,281,120 | 102,525,058 |
Basic earnings per share (in dollars per share) | $ 0.26 | $ 0.31 | $ 0.50 | $ 0.48 |
Diluted earnings per share (in dollars per share) | $ 0.25 | $ 0.30 | $ 0.50 | $ 0.48 |
Disclosures About Fair Value of Financial Instruments - Reconciliation of all Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Level 3 - Debt securities - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||||
Beginning balance January 1, | $ 0 | $ 9,877 | $ 0 | $ 9,366 |
Total net realized investment gains/ (losses) and net change in unrealized appreciation/ (depreciation): | ||||
Included in net income as OTTI | 0 | 0 | 0 | 0 |
Included in other comprehensive income | 0 | 761 | 0 | 1,272 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers in to Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
June 30, | $ 0 | $ 10,638 | $ 0 | $ 10,638 |
Derivative Financial Instruments - Narrative (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2018
USD ($)
derivative
|
Dec. 31, 2017
USD ($)
|
|
Derivative [Line Items] | ||
Cash flow hedges | $ 4,585,000 | $ 1,339,000 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Number of agreements | derivative | 2 | |
Cash pledged as collateral to the counterparty | $ 805,000 | |
Cash flow hedges | $ 336,000 | |
Trust preferred investments | Northwest Bancorp Capital Trust III | Interest rate swaps | ||
Derivative [Line Items] | ||
Original term of swaps | 10 years | |
Fixed rate (as a percent) | 4.61% | |
Trust preferred investments | Northwest Bancorp Statutory Trust IV | Interest rate swaps | ||
Derivative [Line Items] | ||
Original term of swaps | 10 years | |
Fixed rate (as a percent) | 4.09% | |
Notional amount | $ 25,000,000 |
Derivative Financial Instruments - Gain (Loss) on Derivative Financial Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Hedging interest rate derivatives: | ||||
Increase in interest expense | $ 267 | $ 404 | $ 600 | $ 823 |
Non-hedging swap derivatives: | ||||
Increase/ (decrease) in other income | $ (417) | $ 268 | $ (288) | $ 234 |
JO[
M#E ^L%0' @#OU:@$[FXH%?R#L+^3-G@R:L8!:ZZJ&*4X@$629M,"C'QP5@U-
MQ-FB01+V>ZK4>IM;J5 %-EG2+DM&!@VDO4\M21JQLFV @WHUJ#7$!BMB;+*L
M399DK%4S\#M.TA8;B$4Y\EN L:N,=!&(N5!8CQA[+!.0)X.(";H(C(R,XAI$
M!3E!6D!51H;L':*2*80/C,V?M?F3\5*:MN*\D5'2 &7E8&L!Y2J;I#0029 K
M[#08>S]K[U?;V)J!K4=I(@#ZCJWJ-$#9:*0R5% &PO=V]R:W-H965T
M 8^!DV5"W_!D@2P-1Q9(;/B90Z+8;F9A-;.PF#$*FR]F
M:SS Q'!CP0!@@+8V$#3.P\X""I*__%VQU5-L\63\/'D\/P=+XZQL+!@ C9W>
MVD"S4V"
MMD/3]<;.G_T!4$L#!!0 ( &MA"$W]^"L(V@8 *TF 8 >&PO=V]R
M:W-H965T <_:Z.JMSXJ>\=Z8E ';H4A2A8FQCW@0#Q U4:1'<[&L4(+9"6
MNA2F*( S)# Y=,TH$/IAG+/*=",@Y9(NMTF+(.4%9ND4JG\5E8A7VD"B:QD7*8L2Z
M+DXPT6$F.L!$F0R43M..O=S55D#E399@HL=,]("))!$]BY:?^_7&$(DRN:9N
M%@
:
$CP
MPQ\*LVV";),@2P39?TO
+/G$VV=P"<"GPEW,0X; \7,/PLG\M3@0,S8^TZ$)]X
KNG9?EL@VQ3(HD#V
M3N#N0XF?,6F2?0A"5CV58-HX3195>E!QDE?>96#O:7R3-_@T[;^8:;FRZ*R=
M?]G8_T9K!SZ5W8T?H
,TKYF K,YH[1?4C&_?TIQ$=)W!&M"'G'S
MFI6^+I3L!0LOG1L<8QE\M$!&Z^A"B5[KE3%*3Y=!-Z4E T^HB^TR"*/VJ"GM
M80;H05*-**U=!M7N6I^:49J[#$C-@H GU'G,MLUV7!ZB(B G9UF=Z^+76:SL.W/M"H>3QK
M:**A:\4**.Q%$G8)7+(@F 4-X_4TBUCC !H&T$, Z0!F7DKR
MB/P^,Y_F(?E]AK9G+<2I+P_0D*SS>H,T*X>S!F3W&7+A6DP86>UJ@H4R-"8R--\,$HR$61EF-O$)D-/@(AH12?(3)"0,]9)BP:"Y;94PB*
M,MHB,-OBO=+W$V4B1>R(#3)19E+$#MDB>T6=;&-8XVF/#+$AEMQG)H6B:-RE
M=3/:5?*8LS(T4LZJ2$5/PV.UT"M<(-1U!LTZIE&(E\9MO#J>J1#OF($;429N
MA$9N;&.C=F_KPGI/>3U!79(>]U&F;H3&;KPVHJG,W