(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
Item 1. | Financial Statements (Unaudited) | |||||||
(dollars in thousands) | September 30, 2020 | December 31, 2019 | |||||||||
Assets | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest-bearing deposits in other banks | |||||||||||
Investment securities: | |||||||||||
Available-for-sale debt securities, at fair value | |||||||||||
Equity securities, at fair value | |||||||||||
Total investment securities | |||||||||||
Loans held for sale | |||||||||||
Loans | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Loans, net of allowance for credit losses | |||||||||||
Premises and equipment, net | |||||||||||
Accrued interest receivable | |||||||||||
Investment in unconsolidated subsidiaries | |||||||||||
Other real estate owned | |||||||||||
Mortgage servicing rights | |||||||||||
Bank-owned life insurance | |||||||||||
Federal Home Loan Bank stock | |||||||||||
Right-of-use lease asset | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing demand | $ | $ | |||||||||
Interest-bearing demand | |||||||||||
Savings and money market | |||||||||||
Time | |||||||||||
Total deposits | |||||||||||
Short-term borrowings | |||||||||||
Long-term debt | |||||||||||
Lease liability | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Contingent liabilities and other commitments (see Notes 8, 15 and 16) | |||||||||||
Equity | |||||||||||
Preferred stock, | |||||||||||
Common stock, | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total shareholders' equity | |||||||||||
Non-controlling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands, except per share data) | 2019 | 2019 | |||||||||||||||||||||
Interest income: | |||||||||||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | |||||||||||||||||||
Interest and dividends on investment securities: | |||||||||||||||||||||||
Taxable interest | |||||||||||||||||||||||
Tax-exempt interest | |||||||||||||||||||||||
Dividends | |||||||||||||||||||||||
Interest on deposits in other banks | |||||||||||||||||||||||
Dividends on Federal Home Loan Bank stock | |||||||||||||||||||||||
Total interest income | |||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||
Interest on deposits: | |||||||||||||||||||||||
Demand | |||||||||||||||||||||||
Savings and money market | |||||||||||||||||||||||
Time | |||||||||||||||||||||||
Interest on short-term borrowings | |||||||||||||||||||||||
Interest on long-term debt | |||||||||||||||||||||||
Total interest expense | |||||||||||||||||||||||
Net interest income | |||||||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Net interest income after provision for credit losses | |||||||||||||||||||||||
Other operating income: | |||||||||||||||||||||||
Mortgage banking income | |||||||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Other service charges and fees | |||||||||||||||||||||||
Income from fiduciary activities | |||||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | |||||||||||||||||||||||
Investment securities gains (losses) | ( | ( | |||||||||||||||||||||
Income from bank-owned life insurance | |||||||||||||||||||||||
Net gain (loss) on sales of foreclosed assets | ( | ||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total other operating income | |||||||||||||||||||||||
Other operating expense: | |||||||||||||||||||||||
Salaries and employee benefits | |||||||||||||||||||||||
Net occupancy | |||||||||||||||||||||||
Equipment | |||||||||||||||||||||||
Communication expense | |||||||||||||||||||||||
Legal and professional services | |||||||||||||||||||||||
Computer software expense | |||||||||||||||||||||||
Advertising expense | |||||||||||||||||||||||
Foreclosed asset expense | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total other operating expense | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Per common share data: | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Cash dividends declared | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding used in computation: | |||||||||||||||||||||||
Basic shares | |||||||||||||||||||||||
Diluted shares |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(dollars in thousands) | 2019 | 2019 | ||||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Net change in unrealized gain (loss) on investment securities | ( | |||||||||||||||||||||||||
Defined benefit plans | ||||||||||||||||||||||||||
Total other comprehensive income (loss), net of tax | ( | |||||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Shares Outstanding | Preferred Stock | Common Stock | Additional Paid-In Capital | Accum. Deficit | Accum. Other Comp. Income (Loss) | Non- Controlling Interest | Total | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | — | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Impact of the adoption of new accounting standards (1) | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Adjusted balance at January 1, 2020 | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired and other related costs | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | — | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock purchased by directors' deferred compensation plan ( | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | — | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock purchased by directors' deferred compensation plan ( | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | $ | — | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Common Shares Outstanding | Preferred Stock | Common Stock | Additional Paid-In Capital | Accum. Deficit | Accum. Other Comp. Income (Loss) | Non- Controlling Interest | Total | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
Impact of the adoption of new accounting standards (2) | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Adjusted balance at January 1, 2019 | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired and other related costs | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | — | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock purchased by directors' deferred compensation plan ( | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired and other related costs | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | — | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock repurchased and retired and other related costs | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | — | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
(1) Represents the impact of the adoption of Accounting Standards Update ("ASU") ASU 2016-13. See Note 2 to the consolidated financial statements for additional information. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Represents the impact of the adoption of ASU 2017-12. | |||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||
(dollars in thousands) | 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Provision for credit losses | |||||||||||
Depreciation and amortization of premises and equipment | |||||||||||
Non-cash lease expense | |||||||||||
Cash flows from operating leases | ( | ( | |||||||||
Loss on sale of other real estate, net of write-downs | |||||||||||
Amortization of mortgage servicing rights | |||||||||||
Net amortization and accretion of premium/discounts on investment securities | |||||||||||
Share-based compensation expense | |||||||||||
Net loss (gain) on sales of investment securities | ( | ||||||||||
Net gain on sales of residential mortgage loans | ( | ( | |||||||||
Proceeds from sales of loans held for sale | |||||||||||
Originations of loans held for sale | ( | ( | |||||||||
Equity in earnings of unconsolidated subsidiaries | ( | ( | |||||||||
Distributions from unconsolidated subsidiaries | |||||||||||
Net increase in cash surrender value of bank-owned life insurance | ( | ( | |||||||||
Deferred income taxes | ( | ||||||||||
Net tax (expense) benefit from share-based compensation | ( | ||||||||||
Net change in other assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from maturities of and calls on investment securities available-for-sale | |||||||||||
Proceeds from sales of investment securities available-for-sale | |||||||||||
Purchases of investment securities available-for-sale | ( | ( | |||||||||
Proceeds from sale of MasterCard stock | |||||||||||
Net loan originations | ( | ( | |||||||||
Purchases of loan portfolios | ( | ( | |||||||||
Proceeds from sale of foreclosed loans/other real estate owned | |||||||||||
Proceeds from bank-owned life insurance | |||||||||||
Net purchases of premises, equipment and land | ( | ( | |||||||||
Net return of capital from unconsolidated subsidiaries | |||||||||||
Contributions to unconsolidated subsidiaries | ( | ||||||||||
Net proceeds from redemption of (purchases of) FHLB stock | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Net increase in deposits | |||||||||||
Proceeds from long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Net increase in short-term borrowings | |||||||||||
Cash dividends paid on common stock | ( | ( | |||||||||
Repurchases of common stock and other related costs | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes | |||||||||||
Cash received during the period for: | |||||||||||
Income taxes | |||||||||||
Supplemental disclosure of non-cash information: | |||||||||||
Net change in common stock held by directors’ deferred compensation plan | |||||||||||
Net reclassification of loans to foreclosed loans/other real estate owned | |||||||||||
Net transfer of loans to loans held for sale | |||||||||||
Net transfer of investment securities held-to-maturity to available-for-sale | ( | ||||||||||
Right-of-use lease assets obtained in exchange for lease liabilities |
Loan Segment | Historical Lifetime Loss Method | Historical Lookback Period | Economic Forecast Length | Reversion Method | ||||||||||||||||||||||
Construction | Probability of Default/Loss Given Default ("PD/LGD") | 2008-Present | One Year | One Year (straight-line basis) | ||||||||||||||||||||||
Commercial real estate | Loss-Rate Migration | 2008-Present | ||||||||||||||||||||||||
Multi-family mortgage | PD/LGD | 2008-Present | ||||||||||||||||||||||||
Commercial, financial and agricultural | Loss-Rate Migration | 2008-Present | ||||||||||||||||||||||||
Home equity lines of credit | Loss-Rate Migration | 2008-Present | ||||||||||||||||||||||||
Residential mortgage | Loss-Rate Migration | 2008-Present | ||||||||||||||||||||||||
Consumer - other revolving | Loss-Rate Migration | 2008-Present | ||||||||||||||||||||||||
Consumer - non-revolving | Loss-Rate Migration | 2008-Present | ||||||||||||||||||||||||
Purchased Mainland portfolios (Dealer, Other consumer) | Weighted-Average Remaining Maturity ("WARM") | 2008-Present | ||||||||||||||||||||||||
January 1, 2020 | |||||||||||||||||
(dollars in thousands) | As Reported Under ASC 326 | Pre-ASC 326 Adoption | Impact of ASC 326 Adoption | ||||||||||||||
Assets: | |||||||||||||||||
Allowance for credit losses on loans: | |||||||||||||||||
Commercial, financial & industrial | $ | ( | $ | ( | $ | ||||||||||||
Real estate: | |||||||||||||||||
Construction | ( | ( | ( | ||||||||||||||
Residential mortgage | ( | ( | ( | ||||||||||||||
Home equity | ( | ( | |||||||||||||||
Commercial mortgage | ( | ( | ( | ||||||||||||||
Consumer | ( | ( | ( | ||||||||||||||
Subtotal | $ | ( | $ | ( | $ | ( | |||||||||||
Net deferred tax assets (included in other assets) | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | $ | ( | $ | ( | $ | ( | |||||||||||
Equity: | |||||||||||||||||
Accumulated deficit | $ | $ | $ |
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ACL | ||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||
Corporate securities | ( | ||||||||||||||||||||||||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies | ( | ||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Residential - U.S. Government-sponsored entities | ( | ||||||||||||||||||||||||||||
Commercial - U.S. Government agencies and sponsored entities | |||||||||||||||||||||||||||||
Residential - Non-government agencies | ( | ||||||||||||||||||||||||||||
Commercial - Non-government agencies | ( | ||||||||||||||||||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | $ | $ |
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | ( | $ | ||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies | ( | ||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Residential - U.S. Government-sponsored entities | ( | ||||||||||||||||||||||
Commercial - U.S. Government agencies and sponsored entities | ( | ||||||||||||||||||||||
Residential - Non-government agencies | ( | ||||||||||||||||||||||
Commercial - Non-government agencies | |||||||||||||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | $ |
(dollars in thousands) | Amortized Cost | Fair Value | |||||||||
September 30, 2020 | |||||||||||
Equity securities | $ | $ | |||||||||
December 31, 2019 | |||||||||||
Equity securities |
September 30, 2020 | |||||||||||
(dollars in thousands) | Amortized Cost | Fair Value | |||||||||
Available-for-sale: | |||||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due after five years through ten years | |||||||||||
Due after ten years | |||||||||||
Mortgage-backed securities: | |||||||||||
Residential - U.S. Government-sponsored entities | |||||||||||
Commercial - U.S. Government agencies and sponsored entities | |||||||||||
Residential - Non-government agencies | |||||||||||
Commercial - Non-government agencies | |||||||||||
Total available-for-sale securities | $ | $ |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Corporate securities | ( | ( | |||||||||||||||||||||||||||||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Residential - U.S. Government-sponsored entities | ( | ( | |||||||||||||||||||||||||||||||||
Residential - Non-government agencies | ( | ( | |||||||||||||||||||||||||||||||||
Commercial - Non-government agencies | ( | ( | |||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||
Residential - U.S. Government-sponsored entities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Residential - Non-government agencies | ( | ( | |||||||||||||||||||||||||||||||||
Commercial - U.S. Government-sponsored entities | ( | ( | |||||||||||||||||||||||||||||||||
Total temporarily impaired securities | $ | $ | ( | $ | $ | ( | $ | $ | ( |
(dollars in thousands) | September 30, 2020 | December 31, 2019 | |||||||||
Commercial, financial and agricultural: | |||||||||||
Small Business Administration Paycheck Protection Program | $ | $ | |||||||||
Other | |||||||||||
Real estate: | |||||||||||
Construction | |||||||||||
Residential mortgage | |||||||||||
Home equity | |||||||||||
Commercial mortgage | |||||||||||
Consumer | |||||||||||
Gross loans | |||||||||||
Net deferred (fees) costs | ( | ||||||||||
Total loans, net of deferred fees and costs | |||||||||||
Allowance for credit losses | ( | ( | |||||||||
Total loans, net of allowance for credit losses | $ | $ | |||||||||
(dollars in thousands) | Consumer - Unsecured | |||||||
Three Months Ended September 30, 2020 | ||||||||
Purchases: | ||||||||
Outstanding balance | $ | |||||||
Purchase premium (discount) | ( | |||||||
Purchase price | $ | |||||||
Nine Months Ended September 30, 2020 | ||||||||
Purchases: | ||||||||
Outstanding balance | $ | |||||||
Purchase premium (discount) | ( | |||||||
Purchase price | $ | |||||||
Three Months Ended September 30, 2019 | ||||||||
Purchases: | ||||||||
Outstanding balance | $ | |||||||
Purchase premium (discount) | ( | |||||||
Purchase price | $ | |||||||
Nine Months Ended September 30, 2019 | ||||||||
Purchases: | ||||||||
Outstanding balance | $ | |||||||
Purchase premium (discount) | ( | |||||||
Purchase price | $ | |||||||
Note: Purchases of unsecured consumer loans were made under forward flow purchase agreements. |
(dollars in thousands) | Secured by 1-4 Family Residential Properties | Secured by Nonfarm Nonresidential Properties | Secured by Real Estate and Business Assets | Total | Allocated ACL | ||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||
(dollars in thousands) | Unpaid Principal Balance | Recorded Investment | ALLL Allocated | ||||||||||||||
Impaired loans: | |||||||||||||||||
Commercial, financial and agricultural | $ | $ | $ | — | |||||||||||||
Real estate: | |||||||||||||||||
Residential mortgage | — | ||||||||||||||||
Home equity | — | ||||||||||||||||
Commercial mortgage | — | ||||||||||||||||
Total | — | ||||||||||||||||
Impaired loans with an ACL recorded: | |||||||||||||||||
Commercial, financial and agricultural | |||||||||||||||||
Consumer | |||||||||||||||||
Total | |||||||||||||||||
Total impaired loans | $ | $ | $ | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2019 | September 30, 2019 | ||||||||||||||||||||||
(dollars in thousands) | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||
Commercial, financial and agricultural | $ | $ | $ | $ | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | |||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||
Home equity | |||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(dollars in thousands) | Accruing Loans 30 - 59 Days Past Due | Accruing Loans 60 - 89 Days Past Due | Accruing Loans Greater Than 90 Days Past Due | Nonaccrual Loans | Total Past Due and Nonaccrual | Loans and Leases Not Past Due | Total | Nonaccrual Loans With No ACL | |||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural - SBA PPP | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural - Other | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Accruing Loans 30 - 59 Days Past Due | Accruing Loans 60 - 89 Days Past Due | Accruing Loans Greater Than 90 Days Past Due | Nonaccrual Loans | Total Past Due and Nonaccrual | Loans and Leases Not Past Due | Total | Nonaccrual Loans With No ALLL | |||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
(dollars in thousands) | Loan Count | Balance | Accrued Interest Receivable | Total Loans | % of Total Loans | Total Loans, excl. PPP | % of Total Loans, excl. PPP | ||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | $ | $ | % | $ | % | |||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Construction | % | % | |||||||||||||||||||||||||||||||||||||||
Residential mortgage | % | % | |||||||||||||||||||||||||||||||||||||||
Home equity | % | % | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage | % | % | |||||||||||||||||||||||||||||||||||||||
Consumer | % | % | |||||||||||||||||||||||||||||||||||||||
Total loans | $ | $ | $ | % | $ | % |
(dollars in thousands) | Number of Contracts | Recorded Investment (as of Period End) | Increase in the ACL | ||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||
Consumer | — | ||||||||||||||||
Total | $ | $ | — | ||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||
Real estate: Commercial mortgage | $ | $ | — | ||||||||||||||
Consumer | — | ||||||||||||||||
Total | $ | $ | — |
Amortized Cost of Term Loans by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2019 | 2018 | 2017 | 2016 | Prior | Amortized Cost of Revolving Loans | Total | ||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural - SBA PPP: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural - Other: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Home equity: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||||||||||||||||
Risk Rating | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||
Loss | |||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Pass | Special Mention | Substandard | Loss | Subtotal | Net Deferred Costs (Income) | Total | ||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural: SBA PPP | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Commercial, financial and agricultural: Other | |||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Construction | ( | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | ( | ||||||||||||||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Pass | Special Mention | Substandard | Loss | Subtotal | Net Deferred Costs (Income) | Total | ||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural: Other | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Construction | ( | ||||||||||||||||||||||||||||||||||||||||
Residential mortgage | |||||||||||||||||||||||||||||||||||||||||
Home equity | |||||||||||||||||||||||||||||||||||||||||
Commercial mortgage | ( | ||||||||||||||||||||||||||||||||||||||||
Consumer | ( | ||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
Commercial, Financial and Agricultural | Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | SBA PPP | Other | Construction | Residential Mortgage | Home Equity | Commercial Mortgage | Consumer | Total | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses on loans [1] | |||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Provision for credit losses on loans | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Commercial, Financial and Agricultural | Real Estate | ||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | SBA PPP | Other | Construction | Residential Mortgage | Home Equity | Commercial Mortgage | Consumer | Total | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance prior to ASC 326 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Impact of adoption of ASC 326 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Balance after adoption of ASC 326 | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses on loans [1] | |||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Provision for credit losses on loans | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||
Net charge-offs (recoveries) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
[1] The Company recorded a reserve on accrued interest receivable for loans on active payment forbearance or deferral, which were granted to borrowers impacted by the COVID-19 pandemic. This reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses. The provision for credit losses presented in this table excludes the provision for credit losses on accrued interest receivable of $0.2 million. | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||
Three Months Ended September 30, 2020 | |||||
Beginning balance | $ | ||||
Provision for off-balance sheet credit exposures | |||||
Ending balance | $ | ||||
Three Months Ended September 30, 2019 | |||||
Beginning balance | $ | ||||
Provision for off-balance sheet credit exposures | ( | ||||
Ending balance | $ | ||||
Nine Months Ended September 30, 2020 | |||||
Beginning balance prior to ASC 326 | $ | ||||
Impact of adoption of ASC 326 | |||||
Balance after adoption of ASC 326 | |||||
Provision for off-balance sheet credit exposures | |||||
Ending balance | $ | ||||
Nine Months Ended September 30, 2019 | |||||
Beginning balance | $ | ||||
Provision for off-balance sheet credit exposures | |||||
Ending balance | $ |
(dollars in thousands) | September 30, 2020 | December 31, 2019 | |||||||||
Investments in low income housing tax credit partnerships | $ | $ | |||||||||
Investments in common securities of statutory trusts | |||||||||||
Investments in affiliates | |||||||||||
Other | |||||||||||
Total | $ | $ |
(dollars in thousands) | |||||
Year Ending December 31, | |||||
2020 (remainder) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total unfunded commitments | $ |
(dollars in thousands) | Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||||||
Proportional amortization method: | |||||||||||||||||||||||
Amortization expense recognized in income tax expense | $ | $ | $ | $ | |||||||||||||||||||
Tax credits recognized in income tax expense |
(dollars in thousands) | Mortgage Servicing Rights | ||||
Balance, January 1, 2019 | $ | ||||
Additions | |||||
Amortization | ( | ||||
Balance, September 30, 2019 | $ | ||||
Balance, January 1, 2020 | $ | ||||
Additions | |||||
Amortization | ( | ||||
Balance, September 30, 2020 | $ |
Nine Months Ended | Nine Months Ended | ||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | |||||||||
Fair market value, beginning of period | $ | $ | |||||||||
Fair market value, end of period | |||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
Weighted average discount rate | % | % | |||||||||
Forecasted constant prepayment rate assumption (1) | % | % | |||||||||
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||||||||||||||||
Mortgage servicing rights | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
(dollars in thousands) | |||||
Year Ending December 31, | |||||
2020 (remainder) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
Derivatives Financial Instruments Not Designated as Hedging Instruments | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||
Fair Value at | Fair Value at | |||||||||||||||||||||||||||||||
(dollars in thousands) | Balance Sheet Location | September 30, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||||||||||||||||
Interest rate lock and forward sale commitments | Other assets / other liabilities | $ | $ | $ | $ |
Derivatives Financial Instruments Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Earnings on Derivatives | Amount of Gain (Loss) Recognized in Earnings on Derivatives | ||||||||||||
(dollars in thousands) | ||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||
Interest rate lock and forward sale commitments | Mortgage banking income | $ | ||||||||||||
Risk participation agreement | Other service charges and fees | ( | ||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||
Interest rate lock and forward sale commitments | Mortgage banking income | |||||||||||||
Loans held for sale | Other income | ( | ||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||
Interest rate lock and forward sale commitments | Mortgage banking income | |||||||||||||
Risk participation agreement | Other service charges and fees | |||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||
Interest rate lock and forward sale commitments | Mortgage banking income | |||||||||||||
Loans held for sale | Other income | ( |
(dollars in thousands) | September 30, 2020 | ||||||||||
Name of Trust | Subordinated Debentures | Interest Rate | |||||||||
Trust IV | $ | Three month LIBOR + 2.45% | |||||||||
Trust V | Three month LIBOR + 1.87% | ||||||||||
Total | $ | ||||||||||
December 31, 2019 | |||||||||||
Name of Trust | Subordinated Debentures | Interest Rate | |||||||||
Trust IV | $ | Three month LIBOR + 2.45% | |||||||||
Trust V | Three month LIBOR + 1.87% | ||||||||||
Total | $ | ||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2019 | 2019 | |||||||||||||||||||||
Other operating income: | |||||||||||||||||||||||
In-scope of ASC 606 | |||||||||||||||||||||||
Mortgage banking income | $ | $ | $ | $ | |||||||||||||||||||
Service charges on deposit accounts | |||||||||||||||||||||||
Other service charges and fees | |||||||||||||||||||||||
Income on fiduciary activities | |||||||||||||||||||||||
Net gain (loss) on sales of foreclosed assets | ( | ||||||||||||||||||||||
In-scope other operating income | |||||||||||||||||||||||
Out-of-scope other operating income | |||||||||||||||||||||||
Total other operating income | $ | $ | $ | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested restricted stock units, beginning of period | $ | ||||||||||
Changes during the period: | |||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Non-vested restricted stock units, end of period |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2019 | 2019 | |||||||||||||||||||||
Lease cost: | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Less: sublease income | ( | ( | ( | ||||||||||||||||||||
Total lease cost | $ | $ | $ | $ | |||||||||||||||||||
Other information: | |||||||||||||||||||||||
Operating cash flows from operating leases | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-average remaining lease term - operating leases | |||||||||||||||||||||||
Weighted-average discount rate - operating leases | % | % | % | % |
(dollars in thousands) | |||||||||||||||||
Year Ending December 31, | Undiscounted Cash Flows | Lease Liability Expense | Lease Liability Reduction | ||||||||||||||
2020 (remainder) | $ | $ | $ | ||||||||||||||
2021 | |||||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2019 | 2019 | |||||||||||||||||||||
Total rental income recognized | $ | $ | $ | $ |
(dollars in thousands) | |||||
Year Ending December 31, | |||||
2020 (remainder) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ | ||||
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | ||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||
Net unrealized losses on investment securities: | |||||||||||||||||
Net unrealized losses arising during the period | $ | ( | $ | ( | $ | ( | |||||||||||
Less: Reclassification adjustments from AOCI realized in net income | |||||||||||||||||
Net unrealized losses on investment securities | ( | ( | ( | ||||||||||||||
Defined benefit plans: | |||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Amortization of net transition obligation | |||||||||||||||||
Amortization of prior service cost | |||||||||||||||||
Defined benefit plans, net | |||||||||||||||||
Other comprehensive loss | $ | ( | $ | ( | $ | ( |
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | ||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||
Net unrealized gains on investment securities: | |||||||||||||||||
Net unrealized gains arising during the period | $ | $ | $ | ||||||||||||||
Less: Reclassification adjustments from AOCI realized in net income | ( | ( | ( | ||||||||||||||
Net unrealized gains on investment securities | |||||||||||||||||
Defined benefit plans: | |||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Amortization of net transition obligation | |||||||||||||||||
Amortization of prior service cost | |||||||||||||||||
Defined benefit plans, net | |||||||||||||||||
Other comprehensive income | $ | $ | $ |
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | ||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||
Net unrealized gains on investment securities: | |||||||||||||||||
Net unrealized gains arising during the period | $ | $ | $ | ||||||||||||||
Less: Reclassification adjustments from AOCI realized in net income | |||||||||||||||||
Net unrealized gains on investment securities | |||||||||||||||||
Defined benefit plans: | |||||||||||||||||
Net actuarial gains arising during the period | |||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Amortization of net transition obligation | |||||||||||||||||
Amortization of prior service cost | |||||||||||||||||
Defined benefit plans, net | |||||||||||||||||
Other comprehensive income | $ | $ | $ | ||||||||||||||
(dollars in thousands) | Before Tax | Tax Effect | Net of Tax | ||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||
Net unrealized gains on investment securities: | |||||||||||||||||
Net unrealized gains arising during the period | $ | $ | $ | ||||||||||||||
Less: Reclassification adjustments from AOCI realized in net income | ( | ( | ( | ||||||||||||||
Net unrealized gains on investment securities | |||||||||||||||||
Defined benefit plans: | |||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Amortization of net transition obligation | |||||||||||||||||
Amortization of prior service cost | |||||||||||||||||
Defined benefit plans, net | |||||||||||||||||
Other comprehensive income | $ | $ | $ | ||||||||||||||
(dollars in thousands) | Investment Securities | Defined Benefit Plans | AOCI | ||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||
Balance at beginning of period | $ | $ | ( | $ | |||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||
Reclassification adjustments from AOCI | |||||||||||||||||
Total other comprehensive income (loss) | ( | ( | |||||||||||||||
Balance at end of period | $ | $ | ( | $ |
(dollars in thousands) | Investment Securities | Defined Benefit Plans | AOCI | ||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||
Balance at beginning of period | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss before reclassifications | |||||||||||||||||
Reclassification adjustments from AOCI | ( | ||||||||||||||||
Total other comprehensive income | |||||||||||||||||
Balance at end of period | $ | $ | ( | $ |
(dollars in thousands) | Investment Securities | Defined Benefit Plans | AOCI | ||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||
Balance at beginning of period | $ | $ | ( | $ | |||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||
Reclassification adjustments from AOCI | |||||||||||||||||
Total other comprehensive income | |||||||||||||||||
Balance at end of period | $ | $ | ( | $ | |||||||||||||
(dollars in thousands) | Investment Securities | Defined Benefit Plans | AOCI | ||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | |||||||||||
Impact of the adoption of new accounting standards | ( | ( | |||||||||||||||
Adjusted balance at beginning of period | ( | ( | ( | ||||||||||||||
Other comprehensive loss before reclassifications | |||||||||||||||||
Reclassification adjustments from AOCI | ( | ||||||||||||||||
Total other comprehensive income (loss) | |||||||||||||||||
Balance at end of period | $ | $ | ( | $ | |||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||||||
Details about AOCI Components | Three months ended September 30, | ||||||||||||||||
(dollars in thousands) | 2019 | ||||||||||||||||
Sale of investment securities available-for-sale: | |||||||||||||||||
Realized gains (losses) on securities available-for-sale | $ | ( | $ | Investment securities gains (losses) | |||||||||||||
Tax effect | ( | Income tax benefit (expense) | |||||||||||||||
Net of tax | $ | ( | $ | ||||||||||||||
Defined benefit retirement and supplemental executive retirement plan items: | |||||||||||||||||
Amortization of net actuarial loss | $ | ( | $ | ( | Salaries and employee benefits | ||||||||||||
Amortization of net transition obligation | ( | ( | Salaries and employee benefits | ||||||||||||||
Amortization of prior service cost | ( | ( | Salaries and employee benefits | ||||||||||||||
Total before tax | ( | ( | |||||||||||||||
Tax effect | Income tax benefit (expense) | ||||||||||||||||
Net of tax | $ | ( | $ | ( | |||||||||||||
Total reclassification adjustments from AOCI for the period, net of tax | $ | ( | $ | ( |
Amount Reclassified from AOCI | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||||||||
Details about AOCI Components | Nine months ended September 30, | ||||||||||||||||
(dollars in thousands) | 2019 | ||||||||||||||||
Sale of investment securities available-for-sale: | |||||||||||||||||
Realized gains (losses) on securities available-for-sale | $ | ( | $ | Investment securities gains (losses) | |||||||||||||
Tax effect | ( | Income tax benefit (expense) | |||||||||||||||
Net of tax | $ | ( | $ | ||||||||||||||
Defined benefit retirement and supplemental executive retirement plan items: | |||||||||||||||||
Amortization of net actuarial loss | $ | ( | $ | ( | Salaries and employee benefits | ||||||||||||
Amortization of net transition obligation | ( | ( | Salaries and employee benefits | ||||||||||||||
Amortization of prior service cost | ( | ( | Salaries and employee benefits | ||||||||||||||
Total before tax | ( | ( | |||||||||||||||
Tax effect | Income tax benefit (expense) | ||||||||||||||||
Net of tax | $ | ( | $ | ( | |||||||||||||
Total reclassification adjustments from AOCI for the period, net of tax | $ | ( | $ | ( | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands, except per share data) | 2019 | 2019 | |||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding - basic | |||||||||||||||||||||||
Dilutive effect of employee stock options and awards | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Anti-dilutive employee stock options and awards outstanding |
Fair Value Measurement Using | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest-bearing deposits in other banks | |||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Net loans | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest-bearing demand | |||||||||||||||||||||||||||||
Interest-bearing demand and savings and money market | |||||||||||||||||||||||||||||
Time | |||||||||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Accrued interest payable (included in other liabilities) | |||||||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional Amount | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Forward sale commitments | ( | ( | ( | ||||||||||||||||||||||||||||||||
Risk participation agreement | ( | ( | ( | ||||||||||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||||||||||||
Commitments to extend credit | |||||||||||||||||||||||||||||||||||
Standby letters of credit and financial guarantees written | |||||||||||||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||||||
(dollars in thousands) | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and due from banks | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest-bearing deposits in other banks | |||||||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Net loans | |||||||||||||||||||||||||||||
Accrued interest receivable | |||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest-bearing demand | |||||||||||||||||||||||||||||
Interest-bearing demand and savings and money market | |||||||||||||||||||||||||||||
Time | |||||||||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||||||||
Long-term debt | |||||||||||||||||||||||||||||
Accrued interest payable (included in other liabilities) | |||||||||||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Notional Amount | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Forward sale commitments | ( | ( | ( | ||||||||||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||||||||||||
Commitments to extend credit | |||||||||||||||||||||||||||||||||||
Standby letters of credit and financial guarantees written |
Fair Value at Reporting Date Using | |||||||||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | |||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies | |||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Residential - U.S. Government sponsored entities | |||||||||||||||||||||||
Commercial - U.S. Government agencies and sponsored entities | |||||||||||||||||||||||
Residential - Non-government agencies | |||||||||||||||||||||||
Commercial - Non-government agencies | |||||||||||||||||||||||
Total available-for-sale securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Derivatives: Interest rate lock and forward sale commitments | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value at Reporting Date Using | |||||||||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
States and political subdivisions | $ | $ | $ | $ | |||||||||||||||||||
Corporate securities | |||||||||||||||||||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies | |||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Residential - U.S. Government sponsored entities | |||||||||||||||||||||||
Commercial - U.S. Government agencies and sponsored entities | |||||||||||||||||||||||
Residential - Non-government agencies | |||||||||||||||||||||||
Commercial - Non-government agencies | |||||||||||||||||||||||
Total available-for-sale securities | |||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Derivatives: Interest rate lock and forward sale commitments | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | $ |
Available-For-Sale Debt Securities: | |||||||||||||||||
(dollars in thousands) | States and Political Subdivisions | Residential - Non-Government Agencies | Total | ||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ||||||||||||||
Principal payments received | ( | ( | |||||||||||||||
Unrealized net gain included in other comprehensive income | |||||||||||||||||
Purchases | |||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | ||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ||||||||||||||
Principal payments received | ( | ( | |||||||||||||||
Unrealized net gain included in other comprehensive income | |||||||||||||||||
Purchases | |||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ |
Fair Value Measurements Using | |||||||||||||||||||||||
(dollars in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Other real estate (1) | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||
Other real estate (1) | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Return on average assets | 0.42 | % | 0.99 | % | 0.53 | % | 1.00 | % | |||||||||||||||
Return on average shareholders’ equity | 4.99 | 11.11 | 6.17 | 11.58 | |||||||||||||||||||
Basic earnings per common share | $ | 0.24 | $ | 0.51 | $ | 0.89 | $ | 1.54 | |||||||||||||||
Diluted earnings per common share | 0.24 | 0.51 | 0.89 | 1.53 |
(dollars in thousands) | Loan Count | Balance | Accrued Interest Receivable | Total Loans | % of Total Loans | Total Loans, excl. PPP | % of Total Loans, excl. PPP | ||||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | 363 | $ | 64,298 | $ | 844 | $ | 1,056,651 | 6.1 | % | $ | 528,070 | 12.2 | % | ||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||
Construction | — | — | — | 118,247 | — | % | 118,247 | — | % | ||||||||||||||||||||||||||||||||
Residential mortgage | 216 | 103,130 | 1,803 | 1,680,060 | 6.1 | % | 1,680,060 | 6.1 | % | ||||||||||||||||||||||||||||||||
Home equity | — | — | — | 534,056 | — | % | 534,056 | — | % | ||||||||||||||||||||||||||||||||
Commercial mortgage | 25 | 69,420 | 469 | 1,141,265 | 6.1 | % | 1,141,265 | 6.1 | % | ||||||||||||||||||||||||||||||||
Consumer | 3,209 | 53,993 | 1,323 | 500,347 | 10.8 | % | 500,347 | 10.8 | % | ||||||||||||||||||||||||||||||||
Total loans | 3,813 | $ | 290,841 | $ | 4,439 | $ | 5,030,626 | 5.8 | % | $ | 4,502,045 | 6.5 | % |
(dollars in thousands) | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Average Yield/ Rate | Interest Income/ Expense | Average Balance | Average Yield/ Rate | Interest Income/ Expense | Average Balance | Average Yield/ Rate | Interest Income/ Expense | |||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in other banks | $ | 12,262 | 0.09 | % | 3 | $ | 6,295 | 2.05 | % | 33 | $ | 5,967 | (1.96) | % | (30) | ||||||||||||||||||||||||||||||||||||||
Investment securities, excluding ACL: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable (1) | 1,029,987 | 2.04 | 5,250 | 1,093,352 | 2.63 | 7,192 | (63,365) | (0.59) | (1,942) | ||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt (1) | 88,749 | 3.54 | 786 | 117,784 | 3.04 | 896 | (29,035) | 0.50 | (110) | ||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | 1,118,736 | 2.16 | 6,036 | 1,211,136 | 2.67 | 8,088 | (92,400) | (0.51) | (2,052) | ||||||||||||||||||||||||||||||||||||||||||||
Loans, including loans held for sale (2) | 5,016,955 | 3.64 | 45,751 | 4,293,455 | 4.25 | 45,861 | 723,500 | (0.61) | (110) | ||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 12,428 | 4.12 | 128 | 16,646 | 4.46 | 186 | (4,218) | (0.34) | (58) | ||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets | 6,160,381 | 3.36 | 51,918 | 5,527,532 | 3.90 | 54,168 | 632,849 | (0.54) | (2,250) | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 414,111 | 379,675 | 34,436 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 6,574,492 | $ | 5,907,207 | $ | 667,285 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,092,976 | 0.04 | % | 115 | $ | 1,002,875 | 0.08 | % | 207 | $ | 90,101 | (0.04) | % | (92) | ||||||||||||||||||||||||||||||||||||||
Savings and money market deposits | 1,910,971 | 0.09 | 417 | 1,582,795 | 0.39 | 1,549 | 328,176 | (0.30) | (1,132) | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits under $100,000 | 160,634 | 0.57 | 232 | 167,331 | 0.69 | 293 | (6,697) | (0.12) | (61) | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits $100,000 and over | 769,030 | 0.54 | 1,052 | 874,192 | 1.88 | 4,139 | (105,162) | (1.34) | (3,087) | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,933,611 | 0.18 | 1,816 | 3,627,193 | 0.68 | 6,188 | 306,418 | (0.50) | (4,372) | ||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 79,984 | 0.35 | 71 | 191,564 | 2.34 | 1,130 | (111,580) | (1.99) | (1,059) | ||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 105,131 | 2.82 | 746 | 101,547 | 3.96 | 1,013 | 3,584 | (1.14) | (267) | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,118,726 | 0.25 | 2,633 | 3,920,304 | 0.84 | 8,331 | 198,422 | (0.59) | (5,698) | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 1,794,536 | 1,360,221 | 434,315 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 111,851 | 102,599 | 9,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 6,025,113 | 5,383,124 | 641,989 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 549,378 | 524,083 | 25,295 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 549,379 | 524,083 | 25,296 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 6,574,492 | $ | 5,907,207 | $ | 667,285 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 49,285 | $ | 45,837 | $ | 3,448 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 3.11 | % | 3.06 | % | 0.05 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.19 | % | 3.30 | % | (0.11) | % | |||||||||||||||||||||||||||||||||||||||||||||||
(1) At amortized cost. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes nonaccrual loans. |
(dollars in thousands) | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance | Average Yield/ Rate | Interest Income/ Expense | Average Balance | Average Yield/ Rate | Interest Income/ Expense | Average Balance | Average Yield/ Rate | Interest Income/ Expense | |||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits in other banks | $ | 13,038 | 0.43 | % | 42 | $ | 8,540 | 2.30 | % | 147 | $ | 4,498 | (1.87) | % | (105) | ||||||||||||||||||||||||||||||||||||||
Investment securities, excluding ACL: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable investment securities (1) | 1,033,362 | 2.37 | 18,351 | 1,147,217 | 2.67 | 23,014 | (113,855) | (0.30) | (4,663) | ||||||||||||||||||||||||||||||||||||||||||||
Tax-exempt investment securities (1) | 98,153 | 3.25 | 2,390 | 137,750 | 2.93 | 3,023 | (39,597) | 0.32 | (633) | ||||||||||||||||||||||||||||||||||||||||||||
Total investment securities | 1,131,515 | 2.44 | 20,741 | 1,284,967 | 2.70 | 26,037 | (153,452) | (0.26) | (5,296) | ||||||||||||||||||||||||||||||||||||||||||||
Loans, including loans held for sale (2) | 4,794,883 | 3.84 | 137,870 | 4,183,703 | 4.32 | 135,169 | 611,180 | (0.48) | 2,701 | ||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank stock | 12,921 | 3.78 | 366 | 15,650 | 4.33 | 508 | (2,729) | (0.55) | (142) | ||||||||||||||||||||||||||||||||||||||||||||
Total interest earning assets | 5,952,357 | 3.57 | 159,019 | 5,492,860 | 3.94 | 161,861 | 459,497 | (0.37) | (2,842) | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 398,339 | 365,364 | 32,975 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 6,350,696 | $ | 5,858,224 | $ | 492,472 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,054,692 | 0.05 | % | 405 | $ | 972,316 | 0.08 | % | 598 | $ | 82,376 | (0.03) | % | (193) | ||||||||||||||||||||||||||||||||||||||
Savings and money market deposits | 1,806,829 | 0.16 | 2,102 | 1,544,759 | 0.33 | 3,847 | 262,070 | (0.17) | (1,745) | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits under $100,000 | 162,255 | 0.64 | 777 | 172,204 | 0.69 | 884 | (9,949) | (0.05) | (107) | ||||||||||||||||||||||||||||||||||||||||||||
Time deposits $100,000 and over | 807,346 | 0.98 | 5,899 | 921,003 | 1.96 | 13,507 | (113,657) | (0.98) | (7,608) | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,831,122 | 0.32 | 9,183 | 3,610,282 | 0.70 | 18,836 | 220,840 | (0.38) | (9,653) | ||||||||||||||||||||||||||||||||||||||||||||
Short-term borrowings | 94,248 | 0.93 | 653 | 168,350 | 2.50 | 3,146 | (74,102) | (1.57) | (2,493) | ||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 114,504 | 2.88 | 2,472 | 101,547 | 4.09 | 3,104 | 12,957 | (1.21) | (632) | ||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,039,874 | 0.41 | 12,308 | 3,880,179 | 0.86 | 25,086 | 159,695 | (0.45) | (12,778) | ||||||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 1,657,825 | 1,370,972 | 286,853 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 110,669 | 99,143 | 11,526 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 5,808,368 | 5,350,294 | 458,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 542,326 | 507,930 | 34,396 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-controlling interest | 2 | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 542,328 | 507,930 | 34,398 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 6,350,696 | $ | 5,858,224 | $ | 492,472 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 146,711 | $ | 136,775 | $ | 9,936 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate spread | 3.16 | % | 3.08 | % | 0.08 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.29 | % | 3.32 | % | (0.03) | % | |||||||||||||||||||||||||||||||||||||||||||||||
(1) At amortized cost. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes nonaccrual loans. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | $ Change | % Change | |||||||||||||||||||
Other operating income: | |||||||||||||||||||||||
Mortgage banking income | $ | 4,345 | $ | 1,994 | $ | 2,351 | 117.9 | % | |||||||||||||||
Service charges on deposit accounts | 1,475 | 2,125 | (650) | -30.6 | % | ||||||||||||||||||
Other service charges and fees | 3,345 | 3,894 | (549) | -14.1 | % | ||||||||||||||||||
Income from fiduciary activities | 1,149 | 1,126 | 23 | 2.0 | % | ||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 104 | 86 | 18 | 20.9 | % | ||||||||||||||||||
Investment securities gains (losses) | (352) | 36 | (388) | -1,077.8 | |||||||||||||||||||
Income from bank-owned life insurance | 1,179 | 645 | 534 | 82.8 | % | ||||||||||||||||||
Net gain (loss) on sales of foreclosed assets | — | 17 | (17) | -100.0 | |||||||||||||||||||
Other: | |||||||||||||||||||||||
Income recovered on nonaccrual loans previously charged-off | 47 | 73 | (26) | -35.6 | % | ||||||||||||||||||
Other recoveries | 22 | 42 | (20) | -47.6 | % | ||||||||||||||||||
Commissions on sale of checks | 73 | 75 | (2) | -2.7 | % | ||||||||||||||||||
Other | 176 | 153 | 23 | 15.0 | % | ||||||||||||||||||
Total other operating income | $ | 11,563 | $ | 10,266 | $ | 1,297 | 12.6 | % | |||||||||||||||
* Not meaningful ("N.M.") | |||||||||||||||||||||||
Note: Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period. |
Nine Months Ended | |||||||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | $ Change | % Change | |||||||||||||||||||
Other operating income: | |||||||||||||||||||||||
Mortgage banking income | $ | 8,248 | $ | 5,275 | $ | 2,973 | 56.4 | % | |||||||||||||||
Service charges on deposit accounts | 4,674 | 6,247 | (1,573) | -25.2 | % | ||||||||||||||||||
Other service charges and fees | 11,158 | 11,018 | 140 | 1.3 | % | ||||||||||||||||||
Income from fiduciary activities | 3,716 | 3,220 | 496 | 15.4 | % | ||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 234 | 165 | 69 | 41.8 | % | ||||||||||||||||||
Investment securities gains (losses) | (352) | 36 | (388) | -1,077.8 | |||||||||||||||||||
Income from bank-owned life insurance | 2,584 | 2,511 | 73 | 2.9 | % | ||||||||||||||||||
Net gain (loss) on sales of foreclosed assets | (6) | 17 | (23) | -135.3 | |||||||||||||||||||
Other: | |||||||||||||||||||||||
Income recovered on nonaccrual loans previously charged-off | 107 | 240 | (133) | -55.4 | % | ||||||||||||||||||
Other recoveries | 88 | 94 | (6) | -6.4 | % | ||||||||||||||||||
Commissions on sale of checks | 210 | 234 | (24) | -10.3 | % | ||||||||||||||||||
Gain on sale of MasterCard stock | — | 2,555 | (2,555) | -100.0 | % | ||||||||||||||||||
Other | 480 | 421 | 59 | 14.0 | % | ||||||||||||||||||
Total other operating income | $ | 31,141 | $ | 32,033 | $ | (892) | -2.8 | % | |||||||||||||||
Note: Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period. |
Three Months Ended | |||||||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | $ Change | % Change | |||||||||||||||||||
Other operating expense: | |||||||||||||||||||||||
Salaries and employee benefits | $ | 20,729 | $ | 20,631 | $ | 98 | 0.5 | % | |||||||||||||||
Net occupancy | 3,834 | 3,697 | 137 | 3.7 | % | ||||||||||||||||||
Equipment | 1,234 | 1,067 | 167 | 15.7 | % | ||||||||||||||||||
Communication expense | 856 | 1,008 | (152) | -15.1 | % | ||||||||||||||||||
Legal and professional services | 2,262 | 1,933 | 329 | 17.0 | % | ||||||||||||||||||
Computer software expense | 3,114 | 2,713 | 401 | 14.8 | % | ||||||||||||||||||
Advertising expense | 1,020 | 711 | 309 | 43.5 | % | ||||||||||||||||||
Foreclosed asset expense | 6 | 15 | (9) | -60.0 | % | ||||||||||||||||||
Other: | |||||||||||||||||||||||
Charitable contributions | 12 | 230 | (218) | -94.8 | % | ||||||||||||||||||
FDIC insurance assessment | 649 | 5 | 644 | 12,880.0 | % | ||||||||||||||||||
Miscellaneous loan expenses | 497 | 274 | 223 | 81.4 | % | ||||||||||||||||||
ATM and debit card expenses | 573 | 660 | (87) | -13.2 | % | ||||||||||||||||||
Armored car expenses | 192 | 220 | (28) | -12.7 | % | ||||||||||||||||||
Entertainment and promotions | 132 | 323 | (191) | -59.1 | % | ||||||||||||||||||
Stationery and supplies | 226 | 240 | (14) | -5.8 | % | ||||||||||||||||||
Directors’ fees and expenses | 213 | 242 | (29) | -12.0 | % | ||||||||||||||||||
Directors' deferred compensation plan expense | (237) | (155) | (82) | 52.9 | % | ||||||||||||||||||
Provision for off-balance sheet credit exposures | 221 | (465) | 686 | -147.5 | % | ||||||||||||||||||
Branch consolidation costs | 321 | — | 321 | N.M. | |||||||||||||||||||
Other | 1,118 | 1,585 | (467) | -29.5 | % | ||||||||||||||||||
Total other operating expense | $ | 36,972 | $ | 34,934 | $ | 2,038 | 5.8 | % | |||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
(dollars in thousands) | September 30, 2020 | September 30, 2019 | $ Change | % Change | |||||||||||||||||||
Other operating expense: | |||||||||||||||||||||||
Salaries and employee benefits | $ | 61,698 | $ | 61,083 | $ | 615 | 1.0 | % | |||||||||||||||
Net occupancy | 11,151 | 10,680 | 471 | 4.4 | % | ||||||||||||||||||
Equipment | 3,374 | 3,211 | 163 | 5.1 | % | ||||||||||||||||||
Communication expense | 2,467 | 2,645 | (178) | -6.7 | % | ||||||||||||||||||
Legal and professional services | 6,528 | 5,231 | 1,297 | 24.8 | % | ||||||||||||||||||
Computer software expense | 9,092 | 7,870 | 1,222 | 15.5 | % | ||||||||||||||||||
Advertising expense | 3,035 | 2,134 | 901 | 42.2 | % | ||||||||||||||||||
Foreclosed asset expense | 73 | 223 | (150) | -67.3 | % | ||||||||||||||||||
Other: | |||||||||||||||||||||||
Charitable contributions | 209 | 559 | (350) | -62.6 | % | ||||||||||||||||||
FDIC insurance assessment | 1,124 | 868 | 256 | 29.5 | % | ||||||||||||||||||
Miscellaneous loan expenses | 1,196 | 885 | 311 | 35.1 | % | ||||||||||||||||||
ATM and debit card expenses | 1,791 | 1,930 | (139) | -7.2 | % | ||||||||||||||||||
Armored car expenses | 715 | 629 | 86 | 13.7 | % | ||||||||||||||||||
Entertainment and promotions | 577 | 1,576 | (999) | -63.4 | % | ||||||||||||||||||
Stationery and supplies | 694 | 744 | (50) | -6.7 | % | ||||||||||||||||||
Directors’ fees and expenses | 650 | 722 | (72) | -10.0 | % | ||||||||||||||||||
Directors’ deferred compensation plan expense | (1,617) | 413 | (2,030) | -491.5 | % | ||||||||||||||||||
Provision for residential mortgage loan repurchase losses | — | (403) | 403 | -100.0 | |||||||||||||||||||
Provision for off-balance sheet credit exposures | 2,592 | 189 | 2,403 | 1,271.4 | % | ||||||||||||||||||
Branch consolidation and relocation costs | 321 | — | 321 | N.M. | |||||||||||||||||||
Other | 3,969 | 4,200 | (231) | -5.5 | % | ||||||||||||||||||
Total other operating expense | $ | 109,639 | $ | 105,389 | $ | 4,250 | 4.0 | % | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Total other operating expense | $ | 36,972 | $ | 34,934 | $ | 109,639 | $ | 105,389 | |||||||||||||||
Net interest income | $ | 49,120 | $ | 45,649 | $ | 146,209 | $ | 136,140 | |||||||||||||||
Total other operating income | 11,563 | 10,266 | 31,141 | 32,033 | |||||||||||||||||||
Total revenue before provision for credit losses | $ | 60,683 | $ | 55,915 | $ | 177,350 | $ | 168,173 | |||||||||||||||
Efficiency ratio | 60.93 | % | 62.48 | % | 61.82 | % | 62.67 | % |
(dollars in thousands) | September 30, 2020 | December 31, 2019 | $ Change | % Change | ||||||||||||||||||||||
Hawaii: | ||||||||||||||||||||||||||
Commercial, financial and agricultural: | ||||||||||||||||||||||||||
SBA Paycheck Protection Program | $ | 485,286 | $ | — | $ | 485,286 | — | % | ||||||||||||||||||
Other | 414,754 | 454,582 | (39,828) | (8.8) | ||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 118,247 | 95,854 | 22,393 | 23.4 | ||||||||||||||||||||||
Residential mortgage | 1,680,060 | 1,599,801 | 80,259 | 5.0 | ||||||||||||||||||||||
Home equity | 534,056 | 490,734 | 43,322 | 8.8 | ||||||||||||||||||||||
Commercial mortgage | 914,144 | 909,798 | 4,346 | 0.5 | ||||||||||||||||||||||
Consumer | 342,203 | 373,451 | (31,248) | (8.4) | ||||||||||||||||||||||
Leases | — | — | — | — | ||||||||||||||||||||||
Total loans | 4,488,750 | 3,924,220 | 564,530 | 14.4 | ||||||||||||||||||||||
Allowance for credit losses ("ACL") | (71,575) | (42,592) | (28,983) | 68.0 | ||||||||||||||||||||||
Loans, net of ACL | $ | 4,417,175 | $ | 3,881,628 | $ | 535,547 | 13.8 | |||||||||||||||||||
U.S. Mainland: | ||||||||||||||||||||||||||
Commercial, financial and agricultural: | ||||||||||||||||||||||||||
SBA Paycheck Protection Program | $ | 43,295 | $ | — | $ | 43,295 | — | % | ||||||||||||||||||
Other | 113,316 | 115,722 | (2,406) | (2.1) | ||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | — | — | — | — | ||||||||||||||||||||||
Residential mortgage | — | — | — | — | ||||||||||||||||||||||
Home equity | — | — | — | — | ||||||||||||||||||||||
Commercial mortgage | 227,121 | 213,617 | 13,504 | 6.3 | ||||||||||||||||||||||
Consumer | 158,144 | 195,981 | (37,837) | (19.3) | ||||||||||||||||||||||
Leases | — | — | — | — | ||||||||||||||||||||||
Total loans | 541,876 | 525,320 | 16,556 | 3.2 | ||||||||||||||||||||||
ACL | (8,967) | (5,379) | (3,588) | 66.7 | ||||||||||||||||||||||
Loans, net of ACL | $ | 532,909 | $ | 519,941 | $ | 12,968 | 2.5 | |||||||||||||||||||
Total: | ||||||||||||||||||||||||||
Commercial, financial and agricultural: | ||||||||||||||||||||||||||
SBA Paycheck Protection Program | $ | 528,581 | $ | — | $ | 528,581 | — | % | ||||||||||||||||||
Other | 528,070 | 570,304 | (42,234) | (7.4) | ||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 118,247 | 95,854 | 22,393 | 23.4 | ||||||||||||||||||||||
Residential mortgage | 1,680,060 | 1,599,801 | 80,259 | 5.0 | ||||||||||||||||||||||
Home equity | 534,056 | 490,734 | 43,322 | 8.8 | ||||||||||||||||||||||
Commercial mortgage | 1,141,265 | 1,123,415 | 17,850 | 1.6 | ||||||||||||||||||||||
Consumer | 500,347 | 569,432 | (69,085) | (12.1) | ||||||||||||||||||||||
Leases | — | — | — | — | ||||||||||||||||||||||
Total loans | 5,030,626 | 4,449,540 | 581,086 | 13.1 | ||||||||||||||||||||||
ACL | (80,542) | (47,971) | (32,571) | 67.9 | ||||||||||||||||||||||
Loans, net of ACL | $ | 4,950,084 | $ | 4,401,569 | $ | 548,515 | 12.5 |
(dollars in thousands) | September 30, 2020 | December 31, 2019 | $ Change | % Change | |||||||||||||||||||
Nonperforming Assets ("NPAs") [1] | |||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||
Commercial, financial and agricultural | $ | 1,536 | $ | 467 | $ | 1,069 | 228.9 | % | |||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | 4,032 | 979 | 3,053 | 311.8 | |||||||||||||||||||
Home equity | 533 | 92 | 441 | 479.3 | |||||||||||||||||||
Commercial mortgage | 6,889 | — | 6,889 | — | |||||||||||||||||||
Consumer | 69 | 17 | 52 | 305.9 | |||||||||||||||||||
Total nonaccrual loans | 13,059 | 1,555 | 11,504 | 739.8 | |||||||||||||||||||
Other real estate owned ("OREO"): | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | 128 | — | 128 | — | |||||||||||||||||||
Home equity | — | 164 | (164) | (100.0) | |||||||||||||||||||
Total OREO | 128 | 164 | (36) | (22.0) | |||||||||||||||||||
Total nonperforming assets | 13,187 | 1,719 | 11,468 | 667.1 | |||||||||||||||||||
Accruing Loans Delinquent for 90 Days or More [1] | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | 588 | 724 | (136) | (18.8) | |||||||||||||||||||
Consumer | 321 | 286 | 35 | 12.2 | |||||||||||||||||||
Total accruing loans delinquent for 90 days or more | 909 | 1,010 | (101) | (10.0) | |||||||||||||||||||
Restructured Loans Still Accruing Interest [1] | |||||||||||||||||||||||
Commercial, financial and agricultural | 137 | 135 | 2 | 1.5 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | 5,178 | 5,502 | (324) | (5.9) | |||||||||||||||||||
Commercial mortgage | 1,825 | 1,839 | (14) | (0.8) | |||||||||||||||||||
Consumer | 214 | — | 214 | — | |||||||||||||||||||
Total restructured loans still accruing interest | 7,354 | 7,476 | (122) | (1.6) | |||||||||||||||||||
Total NPAs, accruing loans delinquent for 90 days or more and restructured loans still accruing interest | $ | 21,450 | $ | 10,205 | $ | 11,245 | 110.2 | ||||||||||||||||
Ratio of nonaccrual loans to total loans | 0.26 | % | 0.03 | % | 0.23 | % | |||||||||||||||||
Ratio of NPAs to total loans and OREO | 0.26 | % | 0.04 | % | 0.22 | % | |||||||||||||||||
Ratio of NPAs and accruing loans delinquent for 90 days or more to total loans and OREO | 0.28 | % | 0.06 | % | 0.22 | % | |||||||||||||||||
Ratio of NPAs, accruing loans delinquent for 90 days or more, and restructured loans still accruing interest to total loans and OREO | 0.43 | % | 0.23 | % | 0.20 | % | |||||||||||||||||
Ratio of classified assets and OREO to tier 1 capital and ACL | 7.36 | % | 6.75 | % | 0.61 | % | |||||||||||||||||
[1] Section 4013 of the CARES Act and the revised Interagency Statement are being applied to loan modifications related to the COVID-19 pandemic as eligible and applicable. These loan modifications are not included in the delinquent or restructured loan balances presented above. |
(dollars in thousands) | |||||
Balance at December 31, 2019 | $ | 1,719 | |||
Additions | 12,887 | ||||
Reductions: | |||||
Payments | (820) | ||||
Return to accrual status | (123) | ||||
Sales of NPAs | (94) | ||||
Net charge-offs, valuation and other adjustments | (382) | ||||
Total reductions | (1,419) | ||||
Net increase | 11,468 | ||||
Balance at September 30, 2020 | $ | 13,187 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | 67,339 | $ | 48,267 | $ | 47,971 | $ | 47,916 | |||||||||||||||
Adoption of ASU 2016-13 | — | — | 3,566 | — | |||||||||||||||||||
Adjusted balance at beginning of period | 67,339 | 48,267 | 51,537 | 47,916 | |||||||||||||||||||
Provision for credit losses on loans [1] | 14,465 | 1,532 | 34,434 | 4,219 | |||||||||||||||||||
Charge-offs: | |||||||||||||||||||||||
Commercial, financial and agricultural | 810 | 797 | 2,350 | 2,099 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Residential mortgage | 11 | — | 63 | — | |||||||||||||||||||
Home equity | — | 5 | — | 5 | |||||||||||||||||||
Commercial mortgage | 75 | — | 75 | — | |||||||||||||||||||
Consumer | 1,492 | 1,832 | 6,335 | 5,542 | |||||||||||||||||||
Total charge-offs | 2,388 | 2,634 | 8,823 | 7,646 | |||||||||||||||||||
Recoveries: | |||||||||||||||||||||||
Commercial, financial and agricultural | 321 | 362 | 968 | 910 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | — | 6 | 131 | 604 | |||||||||||||||||||
Residential mortgage | 13 | 104 | 214 | 498 | |||||||||||||||||||
Home equity | — | 24 | 31 | 42 | |||||||||||||||||||
Commercial mortgage | 12 | — | 15 | 25 | |||||||||||||||||||
Consumer | 780 | 506 | 2,035 | 1,599 | |||||||||||||||||||
Total recoveries | 1,126 | 1,002 | 3,394 | 3,678 | |||||||||||||||||||
Net charge-offs | 1,262 | 1,632 | 5,429 | 3,968 | |||||||||||||||||||
Balance at end of period | $ | 80,542 | $ | 48,167 | $ | 80,542 | $ | 48,167 | |||||||||||||||
ACL as a percentage of total loans | 1.60 | % | 1.10 | % | 1.60 | % | 1.10 | % | |||||||||||||||
ACL as a percentage of total loans, excluding PPP loans | 1.79 | % | 1.10 | % | 1.79 | % | 1.10 | % | |||||||||||||||
ACL as a percentage of nonaccrual loans | 616.75 | % | 5387.81 | % | 616.75 | % | 5387.81 | % | |||||||||||||||
Annualized ratio of net charge-offs to average loans | 0.10 | % | 0.15 | % | 0.15 | % | 0.13 | % | |||||||||||||||
[1] The Company recorded a reserve on accrued interest receivable for loans on active payment forbearance or deferral, which were granted to borrowers impacted by the COVID-19 pandemic. This reserve was recorded as a contra-asset against accrued interest receivable with the offset to provision for credit losses. The provision for credit losses presented in this table excludes the provision for credit losses on accrued interest receivable of $0.2 million. |
(dollars in thousands) | September 30, 2020 | December 31, 2019 | $ Change | % Change | |||||||||||||||||||
Noninterest-bearing demand deposits | $ | 1,762,476 | $ | 1,450,532 | $ | 311,944 | 21.5 | % | |||||||||||||||
Interest-bearing demand deposits | 1,114,123 | 1,043,010 | 71,113 | 6.8 | |||||||||||||||||||
Savings and money market deposits | 1,881,104 | 1,600,028 | 281,076 | 17.6 | |||||||||||||||||||
Time deposits less than $100,000 | 157,051 | 165,755 | (8,704) | (5.3) | |||||||||||||||||||
Core deposits | 4,914,754 | 4,259,325 | 655,429 | 15.4 | |||||||||||||||||||
Government time deposits | 500,762 | 533,088 | (32,326) | (6.1) | |||||||||||||||||||
Other time deposits $100,000 to $250,000 | 95,918 | 107,550 | (11,632) | (10.8) | |||||||||||||||||||
Other time deposits greater than $250,000 | 167,495 | 220,060 | (52,565) | (23.9) | |||||||||||||||||||
Total time deposits $100,000 and greater | 764,175 | 860,698 | (96,523) | (11.2) | |||||||||||||||||||
Total deposits | $ | 5,678,929 | $ | 5,120,023 | $ | 558,906 | 10.9 |
Actual | Minimum Required for Capital Adequacy Purposes | Minimum Required to be Well Capitalized | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||
Company | ||||||||||||||||||||||||||||||||||||||
At September 30, 2020: | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 573,636 | 8.8 | % | $ | 261,718 | 4.0 | % | N/A | |||||||||||||||||||||||||||||
Tier 1 risk-based capital | 573,636 | 12.8 | 269,814 | 6.0 | N/A | |||||||||||||||||||||||||||||||||
Total risk-based capital | 623,157 | 13.9 | 359,752 | 8.0 | N/A | |||||||||||||||||||||||||||||||||
CET1 risk-based capital | 523,636 | 11.6 | 202,360 | 4.5 | N/A | |||||||||||||||||||||||||||||||||
At December 31, 2019: | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 568,529 | 9.5 | % | $ | 238,630 | 4.0 | % | N/A | |||||||||||||||||||||||||||||
Tier 1 risk-based capital | 568,529 | 12.6 | 271,788 | 6.0 | N/A | |||||||||||||||||||||||||||||||||
Total risk-based capital | 617,772 | 13.6 | 362,384 | 8.0 | N/A | |||||||||||||||||||||||||||||||||
CET1 risk-based capital | 518,529 | 11.5 | 203,841 | 4.5 | N/A | |||||||||||||||||||||||||||||||||
Central Pacific Bank | ||||||||||||||||||||||||||||||||||||||
At September 30, 2020: | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 559,750 | 8.6 | % | $ | 261,540 | 4.0 | % | $ | 326,925 | 5.0 | % | ||||||||||||||||||||||||||
Tier 1 risk-based capital | 559,750 | 12.5 | 269,555 | 6.0 | 359,407 | 8.0 | ||||||||||||||||||||||||||||||||
Total risk-based capital | 609,203 | 13.6 | 359,407 | 8.0 | 449,259 | 10.0 | ||||||||||||||||||||||||||||||||
CET1 risk-based capital | 559,750 | 12.5 | 202,166 | 4.5 | 292,018 | 6.5 | ||||||||||||||||||||||||||||||||
At December 31, 2019: | ||||||||||||||||||||||||||||||||||||||
Leverage capital | $ | 556,077 | 9.3 | % | $ | 238,342 | 4.0 | % | $ | 297,928 | 5.0 | % | ||||||||||||||||||||||||||
Tier 1 risk-based capital | 556,077 | 12.3 | 271,350 | 6.0 | 361,800 | 8.0 | ||||||||||||||||||||||||||||||||
Total risk-based capital | 605,320 | 13.4 | 361,800 | 8.0 | 452,250 | 10.0 | ||||||||||||||||||||||||||||||||
CET1 risk-based capital | 556,077 | 12.3 | 203,512 | 4.5 | 293,962 | 6.5 |
Rate Change | Estimated Net Interest Income Sensitivity | |||||||
+100 bp | 3.79 | % | ||||||
-100 bp | (2.92) | % |
Issuer Purchases of Equity Securities | ||||||||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Shares Purchased as Part of Publicly Announced Programs | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||||||||||||||
July 1-31, 2020 | — | $ | — | — | $ | 26,600,028 | ||||||||||||||||||||
August 1-31, 2020 | — | — | — | 26,600,028 | ||||||||||||||||||||||
September 1-30, 2020 | — | — | — | 26,600,028 | ||||||||||||||||||||||
Total | — | $ | — | — | 26,600,028 |
Exhibit No. | Document | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | XBRL Instance Document* | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document* | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document* | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document* | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document* | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document* | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and included within the Exhibit 101 attachments) | |||||||
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
CENTRAL PACIFIC FINANCIAL CORP. | ||||||||
(Registrant) | ||||||||
Date: | October 28, 2020 | /s/ Paul K. Yonamine | ||||||
Paul K. Yonamine | ||||||||
Chairman and Chief Executive Officer | ||||||||
Date: | October 28, 2020 | /s/ David S. Morimoto | ||||||
David S. Morimoto | ||||||||
Executive Vice President and Chief Financial Officer |
Date: | October 28, 2020 | /s/ Paul K. Yonamine | ||||||
Paul K. Yonamine | ||||||||
Chairman and Chief Executive Officer |
Date: | October 28, 2020 | /s/ David S. Morimoto | ||||||
David S. Morimoto | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Date: | October 28, 2020 | /s/ Paul K. Yonamine | ||||||
Paul K. Yonamine | ||||||||
Chairman and Chief Executive Officer |
Date: | October 28, 2020 | /s/ David S. Morimoto | ||||||
David S. Morimoto | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares | 185,000,000 | 185,000,000 |
Common stock, issued shares | 28,179,798 | 28,289,257 |
Common stock, outstanding shares | 28,179,798 | 28,289,257 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,859 | $ 14,554 | $ 25,102 | $ 44,125 |
Other comprehensive income (loss), net of tax: | ||||
Net change in unrealized gain (loss) on investment securities | (2,257) | 4,386 | 14,165 | 27,547 |
Defined benefit plans | 247 | 283 | 967 | 773 |
Total other comprehensive income (loss), net of tax | (2,010) | 4,669 | 15,132 | 28,320 |
Comprehensive income | $ 4,849 | $ 19,223 | $ 40,234 | $ 72,445 |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.23 |
Common stock purchased by directors' deferred compensation plan, net shares (in shares) | 4,200 | 8,800 | 14,600 |
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Cash flows from operating activities: | ||
Net income | $ 25,102 | $ 44,125 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 34,621 | 4,219 |
Depreciation and amortization of premises and equipment | 4,628 | 4,628 |
Non-cash lease expense | 176 | 220 |
Cash flows from operating leases | (4,743) | (4,663) |
Loss on sale of other real estate, net of write-downs | 70 | 138 |
Amortization of mortgage servicing rights | 4,558 | 1,727 |
Net amortization and accretion of premium/discounts on investment securities | 7,127 | 6,808 |
Share-based compensation expense | 2,725 | 1,728 |
Net gain on sales of residential mortgage loans | (9,971) | (2,836) |
Proceeds from sales of loans held for sale | 287,924 | 152,684 |
Originations of loans held for sale | (292,832) | (150,217) |
Equity in earnings of unconsolidated subsidiaries | (234) | (165) |
Distributions from unconsolidated subsidiaries | 225 | 175 |
Net increase in cash surrender value of bank-owned life insurance | (2,253) | (1,499) |
Deferred income taxes | (6,953) | 7,548 |
Net tax (expense) benefit from share-based compensation | (157) | 209 |
Net change in other assets and liabilities | (9,955) | (12,309) |
Net cash provided by operating activities | 40,410 | 52,484 |
Cash flows from investing activities: | ||
Proceeds from maturities of and calls on investment securities available-for-sale | 237,632 | 194,626 |
Proceeds from sales of investment securities available-for-sale | 86,508 | 53,935 |
Purchases of investment securities available-for-sale | (351,701) | (54,975) |
Proceeds from sale of MasterCard stock | 0 | 2,555 |
Net loan originations | (546,954) | (214,834) |
Purchases of loan portfolios | (39,876) | (78,820) |
Proceeds from sale of foreclosed loans/other real estate owned | 94 | 0 |
Proceeds from bank-owned life insurance | 166 | 0 |
Net purchases of premises, equipment and land | (19,380) | (3,438) |
Net return of capital from unconsolidated subsidiaries | 0 | 622 |
Contributions to unconsolidated subsidiaries | (2,936) | 0 |
Net proceeds from redemption of (purchases of) FHLB stock | (2,485) | (538) |
Net cash used in investing activities | (638,932) | (100,867) |
Cash flows from financing activities: | ||
Net increase in deposits | 558,906 | 91,169 |
Proceeds from long-term debt | 65,944 | 0 |
Repayments of long-term debt | (65,944) | (20,619) |
Net increase in short-term borrowings | 56,000 | 8,000 |
Cash dividends paid on common stock | (19,453) | (19,189) |
Repurchases of common stock and other related costs | (4,749) | (17,966) |
Net cash provided by financing activities | 590,704 | 41,395 |
Net decrease in cash and cash equivalents | (7,818) | (6,988) |
Cash and cash equivalents at beginning of period | 102,972 | 102,186 |
Cash and cash equivalents at end of period | 95,154 | 95,198 |
Cash paid during the period for: | ||
Interest | 14,988 | 24,735 |
Income taxes | 15,803 | 17,601 |
Cash received during the period for: | ||
Income taxes | 0 | 0 |
Net change in common stock held by directors’ deferred compensation plan | 218 | 416 |
Net reclassification of loans to foreclosed loans/other real estate owned | 128 | 190 |
Net transfer of loans to loans held for sale | 6,565 | 0 |
Net transfer of investment securities held-to-maturity to available-for-sale | 0 | (149,042) |
Right-of-use lease assets obtained in exchange for lease liabilities | $ 0 | $ 55,887 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2019. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity, proportional amortization and cost methods were $0.2 million, $28.4 million and $1.6 million, respectively, at September 30, 2020 and $0.2 million, $15.3 million and $1.6 million, respectively, at December 31, 2019. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements. Risks and Uncertainties COVID-19 Pandemic In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China, and has since spread across the globe. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely impacted the level of economic activity in the local, national and global economies and financial markets. The pandemic has resulted in temporary closures of many businesses and the institution of social distancing and sheltering in place requirements in many states and communities. The Company and its customers have been adversely affected by the COVID-19 pandemic. The full extent to which the COVID-19 pandemic negatively impacts the Company's business, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, is unknown at this time and will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. If the pandemic continues to be sustained, it may further adversely impact the Company and the State of Hawaii and impair the ability of the Company's customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on its business operations, asset valuations, financial condition, and results of operations. Material adverse effects may include all or a combination of losses in operations, higher provisions for credit losses and valuation impairments on the Company's investments, loans, mortgage servicing rights, deferred tax assets, or counter-party risk derivatives. Change in Operating Segments and Reclassifications In the first quarter of 2020, the Company reassessed the alignment of its reportable segments and combined its three reportable segments (Banking Operations, Treasury and All Others segments) into a single operating segment. We believe this change better reflects how the Company's Executive Committee, or its chief operating decision maker ("CODM"), manages, allocates resources and assesses performance of the activities of the Company. The Company also believes that this change is better aligned with how the Company's CODM manages its business. Segment results for 2019 have been reclassified to reflect the realignment of the Company’s reportable segments and be comparable to the segment results for 2020. This change in reportable segments did not have an impact on the Company's previously reported historical consolidated financial statements. Investment Securities Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines). The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-). Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums to the earliest call date. We accrete discounts associated with investment securities using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of September 30, 2020 and the Company did not reverse any accrued interest against interest income during the three and nine months ended September 30, 2020. Allowance for Credit Losses (“ACL”) for AFS Debt Securities AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of September 30, 2020, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $4.2 million as of September 30, 2020. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL for HTM Debt Securities Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. The Company did not have any HTM debt securities as of September 30, 2020. Federal Home Loan Bank Stock We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans. Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $17.3 million at September 30, 2020 and is reported together with accrued interest on AFS debt securities on the consolidated balance sheets. Upon adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. The Company believes COVID-19 modified loans have distinct risk characteristics that cause them to be monitored and assessed for credit risk differently than their unmodified counterparts. Thus, in the third quarter of 2020, the Company elected to measure a reserve on the accrued interest receivable for loans on active payment forbearance or deferral. As a result, during the third quarter of 2020, the Company recorded a reserve of $0.2 million against accrued interest receivable with the offset recorded to provision for credit losses. Nonaccrual Loans The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are generally placed on nonaccrual status when principal and/or interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectability of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured. Troubled Debt Restructuring (“TDR”) A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. Expected credit losses are estimated on a collective (pool) basis when they share similar risk characteristics. If a TDR financial asset shares similar risk characteristics with other financial assets, it is evaluated with those other financial assets on a collective basis. If it does not share similar risk characteristics with other financial assets, it is evaluated individually. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. Based on the underlying risk characteristics, TDRs performing in accordance with their modified contractual terms may be collectively evaluated. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the CARES Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. Section 4013 and the interagency guidance are being applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. ACL for Loans Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest. The ACL for loans represents management's estimate of all expected credit losses over the expected life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on a straight-line basis over one year when its forecast is no longer deemed reasonable and supportable. The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses. Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for losses in the loan portfolio that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors. The Company uses the Moody’s Analytics forecasting service for the economic forecast considered in its ACL methodology. The Moody’s Analytics forecast includes both National and Hawaii specific economic indicators. The Moody’s forecast is widely used in the industry and is reasonable and supportable. The Moody’s Analytics forecast is updated at least monthly and includes a variety of economic scenarios. Generally the Company will use the most recent consensus forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios available by Moody’s Analytics or may apply overrides to its statistical models to enhance the reasonableness of its loss estimates. The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio. The Company relies on a third-party platform which offers multiple methodologies to measure historical life-of-loan losses. The Company has also developed statistical models internally to incorporate future economic conditions and forecast expected credit losses based on various macro-economic indicators such as unemployment and income levels. The Company has identified the following portfolio segments to measure the allowance for credit losses:
Below is a description and the risk characteristics of each segment: Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Multi-family mortgage loans Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources. Commercial, financial and agricultural loans Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk. Paycheck Protection Program (“PPP”) loans are also in this category and are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Residential mortgage loans Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio. Consumer loans - other revolving This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Consumer loans - non-revolving This segment consists of consumer non-revolving loans, including dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Purchased consumer portfolios Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. Below is a description of the methodologies mentioned above: PD/LGD The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total loss rate is calculated using the formula ‘PD times LGD’. Migration Migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as risk rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure loss rates accurately. The key inputs to run a migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance. WARM Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. Other If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not included in the collective evaluation. Determining the Term Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. If such renewal options or extensions are present, these options are evaluated in determining the contractual term. Reserve for Off-Balance Sheet Credit Exposures The Company maintains a separate and distinct reserve for off-balance-sheet credit exposures which is included in other liabilities on the Company’s consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor for letters of credit, non-revolving lines of credit, and revolving lines of credit over the remaining life during which the Company is exposed to credit risk via a contractual obligation to extend credit. Letters of credit are generally unlikely to advance since they are typically in place only to ensure various forms of performance of the borrowers. Many of the letters of credit are cash secured. Non-revolving lines of credit are determined to be likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. The estimate also applies the loss factors for each loan type used in the ACL for loans methodology, which is based on historical losses, economic conditions and reasonable and supportable forecasts. The reserve for off-balance sheet credit exposures is adjusted as a provision for off-balance sheet credit exposures in other operating expense. Purchased Credit Deteriorated (“PCD”) Financial Assets The Company has purchased financial assets, none of which were credit deteriorated since origination at the time of purchase. The Company does not purchase any financial assets that are greater than 30 days delinquent at the time of purchase. PCD financial assets, if any, are recorded at the amount paid. An ACL for PCD financial assets will be determined using the same methodology as other financial assets. The initial ACL determined on a collective basis is allocated to individual financial assets. The sum of the financial asset’s purchase price and the ACL becomes its initial amortized cost. The difference between the initial amortized costs basis and the par value of the financial asset is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through the provision for credit losses.
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RECENT ACCOUNTING PRONOUNCEMENTS |
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RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2020 On January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology (Allowance for Loan and Leases Losses or "ALLL") with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to accounting for AFS debt securities. One such change is to require credit losses to be presented as an allowance rather than a write-down on AFS debt securities if management intends to sell or believes that it is more likely than not they will be required to sell the debt security before recovery of the amortized cost basis. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (“GAAP”). The Company recorded a net decrease to retained earnings (or a net increase to accumulated deficit) of $3.2 million as of January 1, 2020 for the cumulative effect of adopting ASU 2016-13. The transition adjustment includes increases of $3.6 million to the ACL for loans and $0.7 million to other liabilities, which includes the reserve for off-balance sheet credit exposures, offset by a $1.1 million increase to other assets for the related impact to net deferred tax assets. The following table illustrates the impact of ASC 326:
In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The ASU is part of the FASB's disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles. The ASU modifies disclosure requirements on fair value measurements in Topic 820. The Company adopted ASU 2018-13 effective January 1, 2020. ASU 2018-13 did not have a material impact on disclosures in our consolidated financial statements. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the novel coronavirus pandemic ("COVID-19") and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings (TDRs). The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is being applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." Like ASU 2018-13, this ASU is part of the FASB's disclosure framework project. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for the Company's reporting period beginning January 1, 2021. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on disclosures in our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU, but does not expect it to have a material impact on our consolidated financial statements.
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INVESTMENT SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, fair value and related ACL on AFS debt securities are as follows:
The amortized cost, gross unrealized gains and losses and fair value of AFS debt securities are as follows:
The amortized cost and fair value of our equity investment securities is as follows:
On January 1, 2019 in connection with the adoption of ASU 2017-12, the Company transferred all of its HTM investment securities with an amortized cost of $148.5 million and fair value of $144.3 million to its AFS investment securities portfolio. The amortized cost and estimated fair value of our AFS debt securities at September 30, 2020 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
For the three and nine months ended September 30, 2020, proceeds from the sale of available-for-sale investment securities were $86.5 million and resulted in a gross realized loss of $0.4 million. For the three and nine months ended September 30, 2019, proceeds from the sale of available-for-sale investment securities were $53.9 million and resulted in a gross realized gain of $36 thousand. Investment securities with fair value of $517.5 million and $719.8 million at September 30, 2020 and December 31, 2019, respectively, were pledged to secure public funds on deposit and other short-term borrowings. At September 30, 2020 and December 31, 2019, there were no holdings of investment securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity. There were a total of 48 and 81 AFS debt securities which were in an unrealized loss position, without an ACL, at September 30, 2020 and December 31, 2019, respectively. The following tables summarize AFS debt securities which were in an unrealized loss position at September 30, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position.
The Company has evaluated its AFS investment securities that are in an unrealized loss position and has determined that the unrealized losses on the Company's investment securities are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets since purchase. Investment securities in an unrealized loss position are evaluated on at least a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated. All of the investment securities in an unrealized loss position continue to be rated investment grade by one or more major rating agencies. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, the Company has not recorded an ACL and unrealized losses on these securities and have not been recognized into income. Visa and MasterCard Class B Common Stock As of September 30, 2020, the Company owns 34,631 shares of Class B common stock of Visa, Inc. ("Visa"). These shares were received in 2008 as part of Visa's initial public offering ("IPO"). These shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the resolution of certain litigation, which is indemnified by Visa members. Since its IPO, Visa has funded a litigation reserve to settle these litigation claims. At its discretion, Visa may continue to increase the litigation reserve based upon a change in the conversion ratio of each member bank’s restricted Class B common stock to unrestricted Class A common stock. Due to the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the Company has determined that the Visa Class B common stock does not have a readily determinable fair value and chooses to carry the shares on the Company's consolidated balance sheets at zero cost basis. During the first quarter of 2019, the Company converted the 11,170 shares of Class B common stock of MasterCard, Inc. ("MasterCard") it received during their initial public offering to an equal number of Class A common stock and sold the shares for $2.6 million. The shares were carried on the Company's consolidated balance sheets at zero cost basis and the proceeds received were recorded as a gain in other operating income - other in the Company's consolidated statements of income. The Company no longer owns any shares of MasterCard common stock.
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LOANS AND CREDIT QUALITY |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND CREDIT QUALITY | 4. LOANS AND CREDIT QUALITY Loans, excluding loans held for sale, net of ACL under ASC 326 as of September 30, 2020 and loans, excluding loans held for sale, net of ACL under previous GAAP as of December 31, 2019 consisted of the following:
The bank is a Small Business Administration ("SBA") approved lender and actively participated in assisting customers with loan applications for the SBA’s Paycheck Protection Program, or PPP, which was part of the CARES Act. PPP loans have a or -year term and earn interest at 1%. The SBA pays the originating bank a processing fee ranging from 1% to 5%, based on the size of the loan, which the Company is recognizing over the life of the loan. The Company saw tremendous interest in the PPP. From April 3, 2020, the date the SBA began accepting submissions for the initial round of PPP loans through the end of the program in August 2020, the Company funded over 7,200 PPP loans totaling over $558 million and received gross processing fees of over $21 million. Certain PPP loans paid-off shortly after funding resulting in a total outstanding balance of $545.3 million and net deferred fees of $16.7 million as of September 30, 2020. The Company has developed a PPP forgiveness portal and has begun the process of assisting our customers with applying for forgiveness from the SBA. The Company has engaged a third party to assist with this process. Although the Company believes that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program, there could be risks and liabilities by the Company that cannot be determined at this time. The Company transferred three loans totaling $6.6 million to the held-for-sale category during the nine months ended September 30, 2020, which were sold in October 2020 at a loss of less than $0.1 million. The Company did not transfer any loans to the held-for-sale category during the nine months ended September 30, 2019. The Company did not sell any loans originally held for investment during the nine months ended September 30, 2020 and 2019. The Company has purchased loan portfolios, none of which were credit deteriorated since origination at the time of purchase. The following table presents loans purchased by class for the periods presented:
Collateral-Dependent Loans In accordance with ASC 326, a loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of September 30, 2020:
The following table presents by class, information related to impaired loans as of December 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13:
The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13:
For the three and nine months ended September 30, 2019, the amount of interest income recognized on impaired loans within the period that the loans were impaired were primarily related to loans modified in a troubled debt restructuring ("TDR") that were on accrual status. For the three and nine months ended September 30, 2019, the amount of interest income recognized using a cash-based method of accounting during the period that the loans were impaired was not material. Foreclosure Proceedings The Company had $0.7 million and $0.6 million of residential mortgage loans collateralized by residential real estate property that were in the process of foreclosure at September 30, 2020 and December 31, 2019, respectively. The Company did not foreclose on any loans during the nine months ended September 30, 2020. The Company foreclosed on one loan totaling $0.2 million during the nine months ended September 30, 2019. The Company sold one foreclosed property totaling $0.1 million during the nine months ended September 30, 2020 at a loss of less than $0.1 million. The Company did not sell any foreclosed properties during the nine months ended September 30, 2019. Nonaccrual and Past Due Loans For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past due loans as of September 30, 2020 and December 31, 2019. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL under ASC 326 as of September 30, 2020 and under previous GAAP as of December 31, 2019.
In accordance with the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" issued in April 2020, loans with deferrals granted because of COVID-19 are not considered past due and/or reported as nonaccrual if deemed collectible during the deferral period. Troubled Debt Restructurings Troubled debt restructurings ("TDRs") included in nonperforming assets at September 30, 2020 consisted of two Hawaii residential mortgage loans with a principal balance of $0.3 million. There were $7.4 million of TDRs still accruing interest at September 30, 2020, none of which were more than 90 days delinquent. At December 31, 2019, there were $7.5 million of TDRs still accruing interest, none of which were more than 90 days delinquent. The Company offers various types of concessions when modifying a loan. Concessions made to the original contractual terms of the loan typically consists of the deferral of interest and/or principal payments due to deterioration in the borrowers' financial condition. In these cases, the principal balance on the TDR had matured and/or was in default at the time of restructure, and there were no commitments to lend additional funds to the borrower during the three and nine months ended September 30, 2020 and 2019. As discussed in Note 1 to these financial statements, Section 4013 of CARES Act and the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)" provided banks an optional TDR election for certain loan modifications related to COVID-19 as long as the borrowers were not more than 30 days past due as of December 31, 2019 or at the time of modification program implementation, respectively, and meets other applicable criteria. The Company has identified eleven consumer loans totaling $0.2 million, including three consumer loans totaling $0.1 million in the third quarter of 2020, that were modified and did not meet the criteria under Section 4013 of CARES Act or the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)". As a result, these loans are included in the TDRs disclosed above. The Company had active loan deferrals with outstanding balances of approximately $290.7 million resulting from the COVID-19 pandemic that were not classified as a TDR at September 30, 2020. The following table sets forth loans on active payment forbearance or deferral as of September 30, 2020:
The following table presents by class, information related to loans modified in a TDR during the three and nine months ended September 30, 2020:
No loans were modified in a TDR during the three and nine months ended September 30, 2019. No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2020 and 2019. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk rating of loans. Loans not meeting the following criteria that are analyzed individually as part of the described process are considered to be pass-rated loans. Special Mention. Loans classified as special mention, while still adequately protected by the borrower's capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management's close attention so as to avoid becoming undue or unwarranted credit exposures. Substandard. Loans classified as substandard are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. Loss. Loans classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible. The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of September 30, 2020. Revolving loans converted to term as of and during the three and nine months ended September 30, 2020 were not material to the total loan portfolio.
The following tables present the Company's loans by class and credit quality indicator as of September 30, 2020 and December 31, 2019:
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ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE |
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ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE | 5. ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES The following table presents by class, the activity in the ACL for loans under ASC 326 during the three and nine months ended September 30, 2020 and under previous GAAP during the three and nine months ended September 30, 2019:
The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, under ASC 326 during the three and nine months ended September 30, 2020 and under previous GAAP during the three and nine months ended September 30, 2019.
In accordance with GAAP, other real estate assets are not included in our assessment of the ACL. Our provision for credit losses on loans was $14.5 million and $34.4 million in the three and nine months ended September 30, 2020 under ASC 326, compared to $1.5 million and $4.2 million in the three and nine months ended September 30, 2019 under previous GAAP.
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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES |
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Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES | 6. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES The components of the Company's investments in unconsolidated subsidiaries were as follows:
The Company invests in low-income housing tax credit ("LIHTC") partnerships. As of September 30, 2020 and December 31, 2019, the Company had $22.7 million and $11.5 million, respectively, in unfunded commitments related to the LIHTC partnerships. The expected payments for the unfunded commitments as of September 30, 2020 for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:
Prior to 2018, the Company's investments in LIHTC partnerships were accounted for using the cost method. In 2018, the Company voluntarily changed its accounting policy for LIHTC partnerships from the cost method to the proportional amortization method using the practical expedient available under ASC 323, "Investments - Equity Method and Joint Ventures", which permits an investor to amortize the initial cost of the investment in proportion to only the tax credits allocated to the investor. The Company believes the proportional amortization method is preferable because it better reflects the economics of an investment that is made for the primary purpose of receiving tax credits and other tax benefits. In addition to a change in the timing of the recognition of amortization expense on LIHTC investments, amortization expense on LIHTC investments is now reflected in the income tax expense line, which provides users a better understanding of the nature of the returns of such investments, instead of in other operating expenses on the consolidated statements of income. The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three and nine months ended September 30, 2020 and September 30, 2019:
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MORTGAGE SERVICING RIGHTS |
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MORTGAGE SERVICING RIGHTS | 7. MORTGAGE SERVICING RIGHTS The following table presents changes in mortgage servicing rights for the periods presented:
Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $1.0 million and $2.3 million for the three and nine months ended September 30, 2020 compared to $0.4 million and $1.2 million for the three and nine months ended September 30, 2019. Amortization of mortgage servicing rights totaled $1.3 million and $4.6 million for the three and nine months ended September 30, 2020 compared to $0.7 million and $1.7 million for the three and nine months ended September 30, 2019. The following tables present the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights:
(1) Represents annualized loan prepayment rate assumption. The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below:
Based on the mortgage servicing rights held as of September 30, 2020, estimated amortization expense for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:
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DERIVATIVES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | 8. DERIVATIVES We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates including interest rate lock commitments and forward sale commitments. We measure all derivatives at fair value on our consolidated balance sheet. In each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as cash flow hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. At September 30, 2020 and December 31, 2019, we were not party to any derivatives designated as part of a fair value or cash flow hedge. Interest Rate Lock and Forward Sale Commitments We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate locks and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At September 30, 2020, we were a party to interest rate lock and forward sale commitments on $2.9 million and $19.3 million of mortgage loans, respectively. The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets:
Risk Participation Agreement In the first quarter of 2020, the Company entered into a credit risk participation agreement ("RPA") with a financial institution counterparty for an interest rate swap related to a loan in which we participate. The risk participation agreement entered into by us as a participant bank provides credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. The following table presents the impact of derivative instruments and their location within the consolidated statements of income:
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SHORT-TERM BORROWINGS AND LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 9. SHORT-TERM BORROWINGS AND LONG-TERM DEBT Federal Home Loan Bank Advances and Other Borrowings The bank is a member of the Federal Home Loan Bank of Des Moines (the "FHLB") and maintained a $1.79 billion line of credit as of September 30, 2020, compared to $1.84 billion at December 31, 2019. At September 30, 2020, $1.26 billion was undrawn under this arrangement, compared to $1.57 billion at December 31, 2019. Short-term borrowings under this arrangement totaled $206.0 million at September 30, 2020, compared to $150.0 million at December 31, 2019. Letters of credit under this arrangement that are used to collateralize certain government deposits totaled $267.0 million at September 30, 2020, compared to $78.9 million at December 31, 2019. Long-term borrowings under this arrangement totaled $50.0 million at September 30, 2020 and December 31, 2019. FHLB advances and standby letters of credit available at September 30, 2020 were secured by certain real estate loans with a carrying value of $2.71 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB. At September 30, 2020 and December 31, 2019, our bank had additional unused borrowings available at the Federal Reserve discount window of $59.2 million and $65.3 million, respectively. As of September 30, 2020 and December 31, 2019, certain commercial and commercial real estate loans with a carrying value totaling $125.0 million and $126.1 million, respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans. To bolster the effectiveness of the SBA's PPP the Federal Reserve is supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The PPP provides loans to small businesses so that they can keep their workers on the payroll. The Paycheck Protection Program Liquidity Facility ("PPPLF") will extend credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value. At September 30, 2020, there were no funds drawn from the Federal Reserve Bank under the PPPLF and no PPP loans were pledged to the Federal Reserve Bank. Subordinated Debentures In October 2003, we created two wholly-owned statutory trusts, CPB Capital Trust II ("Trust II") and CPB Statutory Trust III ("Trust III"). We completed the redemption of $20 million of floating rate trust preferred securities issued by Trust II in January 2019 and $20 million of floating rate trust preferred securities issued by Trust III in December 2018. In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV ("Trust IV"). Trust IV issued $30.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 2.45% and maturing on December 15, 2034. The principal assets of Trust IV are $30.9 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust IV trust preferred securities. Trust IV issued $0.9 million of common securities to the Company. In December 2004, we created a wholly-owned statutory trust, CPB Statutory Trust V ("Trust V"). Trust V issued $20.0 million in floating rate trust preferred securities bearing an interest rate of three-month LIBOR plus 1.87% and maturing on December 15, 2034. The principal assets of Trust V are $20.6 million of the Company's junior subordinated debentures with an identical interest rate and maturity as the Trust V trust preferred securities. Trust V issued $0.6 million of common securities to the Company. At September 30, 2020 and December 31, 2019, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets:
The floating trust preferred securities, the junior subordinated debentures that are the assets of Trusts IV and V and the common securities issued by Trusts IV and V are redeemable in whole or in part on any interest payment date on or after December 15, 2009 for Trust IV and V, or at any time in whole but not in part within 90 days following the occurrence of certain events. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of each trust's obligations with respect to its trust preferred securities. Subject to certain exceptions and limitations, we may elect from time to time to defer interest payments on the subordinated debentures, which would result in a deferral of distribution payments on the related trust preferred securities, for up to 20 consecutive quarterly periods without default or penalty. The subordinated debentures may be included in Tier 1 capital, with certain limitations applicable, under current regulatory guidelines and interpretations.
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REVENUE FROM CONTRACTS WITH CUSTOMERS |
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REVENUE FROM CONTRACTS WITH CUSTOMERS | 10. REVENUE FROM CONTRACTS WITH CUSTOMERS The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three and nine months ended September 30, 2020 and 2019:
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SHARE-BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Restricted Stock Units The table below presents the activity of restricted stock units for the nine months ended September 30, 2020:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:
The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter:
In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated:
Based on the Company's leases as lessor as of September 30, 2020, estimated lease payments for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:
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LEASES | 12. LEASES We lease certain land and buildings for our bank branches and ATMs. In some instances, a lease may contain renewal options to extend the term of the lease. All renewal options are likely to be exercised and therefore have been recognized as part of our right-of-use assets and lease liabilities in accordance with ASC 842, "Leases". Certain leases also contain variable payments that are primarily determined based on common area maintenance costs and Hawaii state tax rates. All leases are operating leases and we do not include any short term leases in the calculation of the right-of-use assets and lease liabilities. The most significant assumption related to the Company’s application of ASC 842 was the discount rate assumption. As most of the Company’s lease agreements do not provide for an implicit interest rate, the Company uses the collateralized interest rate that the Company would have to pay to borrow over a similar term to estimate the Company’s lease liability. Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:
The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter:
In addition, the Company, as lessor, leases certain properties that it owns. All of these leases are operating leases. The following represents lease income related to these leases that was recognized for the period indicated:
Based on the Company's leases as lessor as of September 30, 2020, estimated lease payments for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the components of other comprehensive income for the three and nine months ended September 30, 2020 and 2019, by component:
The following tables present the changes in each component of AOCI, net of tax, for the three and nine months ended September 30, 2020 and 2019:
The following table presents the amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2020 and 2019:
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | 14. EARNINGS PER SHARE The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated:
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FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 15. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Disclosures about Fair Value of Financial Instruments Fair value estimates, methods and assumptions are set forth below for our financial instruments. Short-Term Financial Instruments The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from financial institutions, interest-bearing deposits in other financial institutions, accrued interest receivable, the majority of Federal Home Loan Bank advances and other short-term borrowings, and accrued interest payable. Investment Securities The fair value of investment securities is based on market price quotations received from third-party pricing services. The third-party pricing services utilize pricing models supported with timely market data information. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Loans Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company's various loan types and are derived from available market information, as well as specific borrower information. As of September 30, 2020, the weighted average discount rate used in the valuation of loans was 4.78%. In accordance with ASU 2016-01, the fair value of loans are measured based on the notion of exit price. Loans Held for Sale The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans, if any, net of applicable selling costs on our consolidated balance sheets. Deposit Liabilities The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, are equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. As of September 30, 2020, the weighted average discount rate used in the valuation of time deposits was 0.41%. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Long-Term Debt The fair value of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. As of September 30, 2020, the weighted average discount rate used in the valuation of long-term debt was 2.83%. Derivatives The fair values of derivative financial instruments are based upon current market values, if available. If there are no relevant comparables, fair values are based on pricing models using current assumptions for interest rate swaps and options. Off-Balance Sheet Financial Instruments The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments. Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets.
Fair Value Measurements We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: •Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. •Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. •Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation. We base our fair values on the price that we would expect to receive if an asset were sold, or the price that we would expect to pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available-for-sale and equity securities and derivatives are recorded at fair value on a recurring basis. From time to time, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, impaired loans, mortgage servicing rights, and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. There was one transfer into Level 3 of the fair value hierarchy for long-term debt during the three and nine months ended September 30, 2020. There were no transfers of financial assets and liabilities out of Level 3 of the fair value hierarchy during the three and nine months ended September 30, 2020. The following tables present the fair value of assets and liabilities measured on a recurring basis as of September 30, 2020 and December 31, 2019:
For the nine months ended September 30, 2020 and 2019, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
Within the states and political subdivisions available-for-sale debt securities category, the Company holds four mortgage revenue bonds issued by the City & County of Honolulu with an aggregate fair value of $11.5 million and $11.5 million at September 30, 2020 and September 30, 2019, respectively. Within the residential non-government agency available-for-sale debt securities category, the Company purchased two mortgage backed bonds issued by Habitat for Humanity with a fair value of $1.0 million. The Company estimates the aggregate fair value of $12.5 million by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The significant unobservable input used in the fair value measurement of the Company's mortgage revenue bonds and Habitat for Humanity mortgage backed bonds is the weighted average discount rate. As of September 30, 2020, the weighted average discount rate utilized was 2.79% compared to 3.94% at September 30, 2019 and 4.08% at December 31, 2019, which was derived by incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. The following table presents the fair value of assets measured on a nonrecurring basis and the level of valuation assumptions used to determine the respective fair values as of September 30, 2020 and December 31, 2019:
(1)Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.
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LEGAL PROCEEDINGS |
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Sep. 30, 2020 | |
Legal Proceedings [Abstract] | |
LEGAL PROCEEDINGS | 16. LEGAL PROCEEDINGSWe are involved in legal actions, but do not believe the ultimate disposition of those actions will have a material adverse impact on our results of operations or consolidated financial statements. |
SUBSEQUENT EVENTS SUBSEQUENT EVENTS |
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Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS On October 20, 2020, the Company completed its private placement with registration rights of $55.0 million in -year fixed-to-floating rate subordinated notes due 2030 (the “Notes”). The Notes bear a fixed interest rate of 4.75% for the first five years and will reset quarterly thereafter for the remaining five years to the then current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York, plus 456 basis points basis points. The Company is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after November 1, 2025, or at any time, in whole but not in part, upon certain other specified events prior to the Notes’ maturity on November 1, 2030. The Notes have been structured to qualify initially as Tier 2 capital for the Company for regulatory capital purposes. The Company intends to use the net proceeds from the offering for general corporate purposes and capital flexibility.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us" or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2019. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year.
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Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In January 2020, we acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. The bank concluded that the investment meets the consolidation requirements under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, "Consolidation." The bank concluded that the entity meets the definition of a variable interest entity and that we are the primary beneficiary of the variable interest entity. Accordingly, the investment has been consolidated into our financial statements. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. Our investments in unconsolidated subsidiaries accounted for under the equity, proportional amortization and cost methods were $0.2 million, $28.4 million and $1.6 million, respectively, at September 30, 2020 and $0.2 million, $15.3 million and $1.6 million, respectively, at December 31, 2019. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. The Company sponsors the Central Pacific Bank Foundation, which is not consolidated in the Company's financial statements.
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Reclassification, Policy [Policy Text Block] | Reclassifications In the first quarter of 2020, the Company reassessed the alignment of its reportable segments and combined its three reportable segments (Banking Operations, Treasury and All Others segments) into a single operating segment. We believe this change better reflects how the Company's Executive Committee, or its chief operating decision maker ("CODM"), manages, allocates resources and assesses performance of the activities of the Company. The Company also believes that this change is better aligned with how the Company's CODM manages its business. Segment results for 2019 have been reclassified to reflect the realignment of the Company’s reportable segments and be comparable to the segment results for 2020. This change in reportable segments did not have an impact on the Company's previously reported historical consolidated financial statements. Investment Securities Investments in debt securities are designated as trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). Investments in debt securities are designated as HTM only if we have the positive intent and ability to hold these securities to maturity. HTM securities are reported at amortized cost in the consolidated balance sheets. Trading securities are reported at fair value, with changes in fair value included in net income. Debt securities not classified as HTM or trading are classified as AFS and are reported at fair value, with net unrealized gains and losses, net of applicable taxes, excluded from net income and included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities with readily determinable fair values are carried at fair value, with changes in fair value included in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. The Company classifies its investment securities portfolio into the following major security types: mortgage-backed securities ("MBS"), other debt securities and equity securities. The Company’s MBS portfolio is comprised primarily of residential MBS issued by United States of America ("U.S.") government entities and agencies. These securities are either explicitly or implicitly guaranteed by an agency of the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The remainder of the MBS portfolio are commercial MBS issued by U.S government entities and agencies (which there is no minimum credit rating), non-agency residential MBS (which shall meet a minimum credit rating of AAA) and non-agency commercial MBS (which shall meet a minimum credit rating of BBB and meet minimum internal credit guidelines). The Company’s other debt securities portfolio is comprised of obligations issued by U.S. government entities and agencies, obligations issued by states and political subdivisions (which shall meet a minimum credit rating of BBB), and corporate bonds (which shall meet a minimum credit rating of BBB-). Interest income on investment securities includes amortization of premiums and accretion of discounts. We amortize premiums to the earliest call date. We accrete discounts associated with investment securities using the effective interest method over the life of the respective security instrument. Gains and losses on the sale of investment securities are recorded on the trade date and determined using the specific identification method. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on non-accrual status is reversed against current period interest income. There were no investment securities on nonaccrual status as of September 30, 2020 and the Company did not reverse any accrued interest against interest income during the three and nine months ended September 30, 2020. Allowance for Credit Losses (“ACL”) for AFS Debt Securities AFS debt securities in an unrealized loss position are evaluated for impairment at least quarterly. For AFS debt securities in an unrealized loss position, the Company first assesses whether or not it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment security’s amortized cost basis is written down to fair value through net income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In conducting this assessment for debt securities in an unrealized loss position, management evaluates the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in AOCI. Changes in the ACL are recorded as a provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. As of September 30, 2020, the declines in market values of our AFS debt securities were primarily attributable to changes in interest rates and volatility in the financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not believe a credit loss exists and an ACL was not recorded. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of debt securities and report accrued interest receivable together with accrued interest on loans in the consolidated balance sheets. Accrued interest receivable on AFS debt securities totaled $4.2 million as of September 30, 2020. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL for HTM Debt Securities Management measures expected credit losses on HTM debt securities on a collective basis by major security type. For pools of such securities with common risk characteristics, the historical lifetime probability of default and severity of loss in the event of default is derived or obtained from external sources. Expected credit losses for these securities are estimated using a loss rate methodology which considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Expected credit loss on each security in the HTM portfolio that do not share common risk characteristics with any of the pools of debt securities is individually measured based on net realizable value, or the difference between the discounted value of the expected future cash flows, based on the original effective interest rate, and the recorded amortized cost basis of the security. Accrued interest on HTM debt securities is reported in accrued interest receivable on the consolidated balance sheets and is excluded from the estimate of credit losses. The Company did not have any HTM debt securities as of September 30, 2020. Federal Home Loan Bank Stock We are a member of the Federal Home Loan Bank of Des Moines (the "FHLB"). The bank is required to obtain and hold a specific number of shares of capital stock of the FHLB equal to the sum of a membership investment requirement and an activity-based investment requirement. The securities are reported at cost and are presented separately in the consolidated balance sheets. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the unpaid principal amount outstanding, net of unamortized purchase premiums and discounts, unamortized deferred loan origination fees and costs and cumulative principal charge-offs. Purchase premiums and discounts are generally amortized into interest income over the contractual terms of the underlying loans using the effective interest method. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the life of the related loan as an adjustment to yield and are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Deferred loan fees and costs on loans paid in full are recognized as a component of interest income on loans. Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $17.3 million at September 30, 2020 and is reported together with accrued interest on AFS debt securities on the consolidated balance sheets. Upon adoption of ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” the Company made the accounting policy election to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. The Company believes COVID-19 modified loans have distinct risk characteristics that cause them to be monitored and assessed for credit risk differently than their unmodified counterparts. Thus, in the third quarter of 2020, the Company elected to measure a reserve on the accrued interest receivable for loans on active payment forbearance or deferral. As a result, during the third quarter of 2020, the Company recorded a reserve of $0.2 million against accrued interest receivable with the offset recorded to provision for credit losses. Nonaccrual Loans The Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are generally placed on nonaccrual status when principal and/or interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectability of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition and the loan is restored to accrual status. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current for a predetermined period, normally at least six months, and full payment of principal and interest is reasonably assured. Troubled Debt Restructuring (“TDR”) A loan is accounted for and reported as a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) the Company grants a concession to the borrower experiencing financial difficulty that it would not otherwise consider for a borrower or transaction with similar credit risk characteristics. A restructuring that results in only an insignificant delay in payment is not considered a concession. A delay may be considered insignificant if the payments subject to the delay are insignificant relative to the unpaid principal or collateral value and the contractual amount due, or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the debt’s original contractual maturity or original expected duration. TDRs that are performing and on accrual status as of the date of the modification remain on accrual status. TDRs that are nonperforming as of the date of modification generally remain as nonaccrual until the prospect of future payments in accordance with the modified loan agreement is reasonably assured, generally demonstrated when the borrower maintains compliance with the restructured terms for a predetermined period, normally at least six months. TDRs with temporary below-market concessions remain designated as a TDR regardless of the accrual or performance status until the loan is paid off. Expected credit losses are estimated on a collective (pool) basis when they share similar risk characteristics. If a TDR financial asset shares similar risk characteristics with other financial assets, it is evaluated with those other financial assets on a collective basis. If it does not share similar risk characteristics with other financial assets, it is evaluated individually. The Company’s ACL reflects all effects of a TDR when an individual asset is specifically identified as a reasonably expected TDR. The Company has determined that a TDR is reasonably expected no later than the point when the lender concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession from the lender to avoid a default. Reasonably expected TDRs and executed TDRs are evaluated to determine the required ACL using the same method as all other loans held for investment, except when the value of a concession cannot be measured using a method other than the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the ACL is determined by discounting the expected future cash flows at the original interest rate of the loan. Based on the underlying risk characteristics, TDRs performing in accordance with their modified contractual terms may be collectively evaluated. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the COVID-19 pandemic and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the CARES Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as TDRs. The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. Section 4013 and the interagency guidance are being applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. ACL for Loans Under the current expected credit loss methodology, the ACL for loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Our policy is to charge off a loan in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to unaccrued interest. The ACL for loans represents management's estimate of all expected credit losses over the expected life of our existing loan portfolio. Management estimates the ACL balance using relevant available information about the collectability of cash flows, from internal and external sources, including historical information relating to past events, current conditions, and reasonable and supportable forecasts of future economic conditions. When the Company is unable to forecast future economic events, management may revert to historical information. The Company's methodologies incorporate a reasonable and supportable forecast period of one year and revert to historical loss information on a straight-line basis over one year when its forecast is no longer deemed reasonable and supportable. The Company maintains an ACL at an appropriate level as of a given balance sheet date to absorb management’s best estimate of expected life of loan credit losses. Historical credit loss experience provides the basis for the Company’s expected credit loss estimate. Adjustments to historical loss information may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated. The ACL methodology may also consider other adjustments to address changes in conditions, trends, and circumstances such as local industry changes that could have a significant impact on the risk profile of the loan portfolio and provide for losses in the loan portfolio that may not be reflected and/or captured in the historical loss data. These factors include: lending policies, imprecision in forecasting future economic conditions, loan profile, lending staff, problem loan trends, loan review, collateral, credit concentration and other internal and external factors. The Company uses the Moody’s Analytics forecasting service for the economic forecast considered in its ACL methodology. The Moody’s Analytics forecast includes both National and Hawaii specific economic indicators. The Moody’s forecast is widely used in the industry and is reasonable and supportable. The Moody’s Analytics forecast is updated at least monthly and includes a variety of economic scenarios. Generally the Company will use the most recent consensus forecast from Moody’s as of the balance sheet date. During times of economic and market volatility or instability, the Company may include a qualitative factor for forecast imprecision that factors in other potential economic scenarios available by Moody’s Analytics or may apply overrides to its statistical models to enhance the reasonableness of its loss estimates. The ACL is measured on a collective or pool basis when similar risk characteristics exist. The Company segments its portfolio generally by Federal Financial Institutions Examination Council ("FFIEC") Call Report codes. Loan pools are further segmented by risk utilizing risk ratings or bands of payment delinquency (including TDR or non-accrual status), depending on what is most appropriate for each segment. Additional sub-segmentation may be utilized to identify groups of loans with unique risk characteristics relative to the rest of the portfolio. The Company relies on a third-party platform which offers multiple methodologies to measure historical life-of-loan losses. The Company has also developed statistical models internally to incorporate future economic conditions and forecast expected credit losses based on various macro-economic indicators such as unemployment and income levels. The Company has identified the following portfolio segments to measure the allowance for credit losses:
Below is a description and the risk characteristics of each segment: Construction loans Construction loans include both residential and commercial development projects. Each construction project is evaluated for economic viability and construction loans pose higher credit risks than typical secured loans. Financial strength of the borrower, completion risk (the risk that the project will not be completed on time and within budget) and geographic location are the predominant risk characteristics of this segment. Commercial real estate loans Commercial real estate loans are secured by commercial properties. The predominant risk characteristic of this segment is operating risk, which is the risk that the borrower will be unable to generate sufficient cash flows from the operation of the property. Interest rate conditions and the commercial real estate market through economic cycles also impact risk levels. Multi-family mortgage loans Multi-family mortgage loans can comprise multi-building properties with extensive amenities to a single building with no amenities. The primary risk characteristic of this segment is operating risk or the ability to generate sufficient rental cash flows from the operation of the property within the owner’s strategy and resources. Commercial, financial and agricultural loans Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals. The predominant risk characteristics of this segment are the cash flows of the business we lend to, global cash flows including guarantor liquidity, as well as economic and market conditions. The borrower’s business is typically regarded as the principal source of repayment, though our underwriting policy and practice generally requires secondary sources of support or collateral to mitigate risk. Paycheck Protection Program (“PPP”) loans are also in this category and are considered lower risk as they are guaranteed by the Small Business Administration (“SBA”) and may be forgivable in whole or in part in accordance with the requirements of the PPP. Home equity lines of credit Home equity lines of credit include fixed or floating interest rate loans and are secured by single-family owner-occupied primary residences in Hawaii. They are underwritten based on a minimum FICO score, maximum debt-to-income ratio, and maximum combined loan-to-value ratio. Home equity lines of credit are monitored based on credit score, delinquency, end of draw period and maturity. Residential mortgage loans Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family owner-occupied primary residences in Hawaii. Economic conditions such as unemployment levels, future changes in interest rates and other market factors impact the level of credit risk inherent in the portfolio. Consumer loans - other revolving This segment consists of consumer unsecured lines of credit. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Consumer loans - non-revolving This segment consists of consumer non-revolving loans, including dealer loans. Its predominant risk characteristics relate to current and projected economic conditions as well as employment and income levels attributed to the borrower. Purchased consumer portfolios Credit risk for purchased consumer loans is managed on a pooled basis. The predominant risk characteristics of purchased consumer loans include current and projected economic conditions, employment and income levels, and the quality of purchased consumer loans. Below is a description of the methodologies mentioned above: PD/LGD The PD/LGD calculation is based on a cohort methodology whereby loans in the same cohort are tracked over time to identify defaults and corresponding losses. PD/LGD analysis requires a portfolio segmented into pools, and we elected to then further sub-segment by risk characteristics such as Risk Rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure losses accurately. PD measures the count or dollar amount of loans that defaulted in a given cohort. LGD measures the losses related to the loans that defaulted. Total loss rate is calculated using the formula ‘PD times LGD’. Migration Migration analysis is a cohort-based approach that measures cumulative net charge-offs over a defined time-horizon to calculate a loss rate that will be applied to the loan pool. Migration analysis requires the portfolio to be segmented into pools then further sub-segmented by risk characteristics such as risk rating, days past due, delinquency counters, TDR status and Nonaccrual status to measure loss rates accurately. The key inputs to run a migration analysis are the length and frequency of the migration period, the dates for the migration periods to start and the number of migration periods used for the analysis. For each migration period, the analysis will determine the outstanding balance in each segment and/or sub-segment at the start of each period. These loans will then be followed for the length of the migration period to identify the amount of associated charge-offs and recoveries. A loss rate for each migration period is calculated using the formula 'net charge-offs over the period divided by beginning loan balance. WARM Under the WARM methodology, lifetime losses are calculated by determining the remaining life of the loan pool and then applying a loss rate which includes a forecast component over this remaining life. The methodology considers historical loss experience as well as a loss forecast expectation to estimate credit losses for the remaining balance of the loan pool. The calculated loss rate is applied to the contractual term (adjusted for prepayments) to determine the loan pool’s current expected credit losses. Other If a loan ceases to share similar risk characteristics with other loans in its segment, it will be moved to a different pool sharing similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual basis based on the fair value of the collateral or other approaches such as discounted cash flow (“DCF”) techniques. Loans evaluated individually are not included in the collective evaluation. Determining the Term Expected credit losses are estimated over the contractual term of the loans and are adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. If such renewal options or extensions are present, these options are evaluated in determining the contractual term. Reserve for Off-Balance Sheet Credit Exposures The Company maintains a separate and distinct reserve for off-balance-sheet credit exposures which is included in other liabilities on the Company’s consolidated balance sheets. The Company estimates the amount of expected losses by calculating a commitment usage factor for letters of credit, non-revolving lines of credit, and revolving lines of credit over the remaining life during which the Company is exposed to credit risk via a contractual obligation to extend credit. Letters of credit are generally unlikely to advance since they are typically in place only to ensure various forms of performance of the borrowers. Many of the letters of credit are cash secured. Non-revolving lines of credit are determined to be likely to advance as these are typically construction lines. Meanwhile, the likelihood of revolving lines of credit advancing varies with each individual borrower. Therefore, the future usage of each line was estimated based on the average line utilization of the revolving line of credit portfolio as a whole. The estimate also applies the loss factors for each loan type used in the ACL for loans methodology, which is based on historical losses, economic conditions and reasonable and supportable forecasts. The reserve for off-balance sheet credit exposures is adjusted as a provision for off-balance sheet credit exposures in other operating expense. Purchased Credit Deteriorated (“PCD”) Financial Assets The Company has purchased financial assets, none of which were credit deteriorated since origination at the time of purchase. The Company does not purchase any financial assets that are greater than 30 days delinquent at the time of purchase. PCD financial assets, if any, are recorded at the amount paid. An ACL for PCD financial assets will be determined using the same methodology as other financial assets. The initial ACL determined on a collective basis is allocated to individual financial assets. The sum of the financial asset’s purchase price and the ACL becomes its initial amortized cost. The difference between the initial amortized costs basis and the par value of the financial asset is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through the provision for credit losses.
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Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2020 On January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which replaces the incurred loss methodology (Allowance for Loan and Leases Losses or "ALLL") with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, ASC 326 made changes to accounting for AFS debt securities. One such change is to require credit losses to be presented as an allowance rather than a write-down on AFS debt securities if management intends to sell or believes that it is more likely than not they will be required to sell the debt security before recovery of the amortized cost basis. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (“GAAP”). The Company recorded a net decrease to retained earnings (or a net increase to accumulated deficit) of $3.2 million as of January 1, 2020 for the cumulative effect of adopting ASU 2016-13. The transition adjustment includes increases of $3.6 million to the ACL for loans and $0.7 million to other liabilities, which includes the reserve for off-balance sheet credit exposures, offset by a $1.1 million increase to other assets for the related impact to net deferred tax assets. The following table illustrates the impact of ASC 326:
In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The ASU is part of the FASB's disclosure framework project to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by generally accepted accounting principles. The ASU modifies disclosure requirements on fair value measurements in Topic 820. The Company adopted ASU 2018-13 effective January 1, 2020. ASU 2018-13 did not have a material impact on disclosures in our consolidated financial statements. In April 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued a revised interagency statement encouraging financial institutions to work with customers affected by the novel coronavirus pandemic ("COVID-19") and providing additional information regarding loan modifications. The revised interagency statement clarifies the interaction between the interagency statement issued on March 22, 2020 and the temporary relief provided by Section 4013 of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act. Section 4013 allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings (TDRs). The revised statement also provides supervisory interpretations on past due and nonaccrual regulatory reporting of loan modification programs and regulatory capital. This interagency guidance is being applied by the Company to loan modifications made related to the COVID-19 pandemic as eligible and appropriate. The application of the guidance reduced the number of TDRs that were reported. Future TDRs are indeterminable and will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. Impact of Other Recently Issued Accounting Pronouncements on Future Filings In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." Like ASU 2018-13, this ASU is part of the FASB's disclosure framework project. This ASU modifies disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for the Company's reporting period beginning January 1, 2021. Early adoption is permitted. Based on preliminary evaluation, the ASU will not have a material impact on disclosures in our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the provisions of this ASU, but does not expect it to have a material impact on our consolidated financial statements.
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RECENT ACCOUNTING PRONOUNCEMENTS (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table illustrates the impact of ASC 326:
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INVESTMENT SECURITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of available for sale and held to maturity investment securities | are as follows:
The amortized cost, gross unrealized gains and losses and fair value of AFS debt securities are as follows:
The amortized cost and fair value of our equity investment securities is as follows:
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Schedule of amortized cost and estimated fair value of investment securities by contractual maturity | The amortized cost and estimated fair value of our AFS debt securities at September 30, 2020 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
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Schedule of investment securities in an unrealized loss position | There were a total of 48 and 81 AFS debt securities which were in an unrealized loss position, without an ACL, at September 30, 2020 and December 31, 2019, respectively. The following tables summarize AFS debt securities which were in an unrealized loss position at September 30, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position.
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LOANS AND CREDIT QUALITY (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans and leases, excluding loans held for sale | Loans, excluding loans held for sale, net of ACL under ASC 326 as of September 30, 2020 and loans, excluding loans held for sale, net of ACL under previous GAAP as of December 31, 2019 consisted of the following:
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Financing Receivable, Purchased With Credit Deterioration | The following table presents loans purchased by class for the periods presented:
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Financing Receivable, Collateral-Dependent | The following table presents the amortized cost basis of collateral-dependent loans by class, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of September 30, 2020:
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Schedule of impaired loans, by class |
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Schedule of average recorded investment and interest income recognized on impaired loans, by class | The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13:
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Schedule of aging of the recorded investment in past due loans and leases, by class | The following tables present by class, the aging of the recorded investment in past due loans as of September 30, 2020 and December 31, 2019. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL under ASC 326 as of September 30, 2020 and under previous GAAP as of December 31, 2019.
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Schedule Of Debt Instrument, Deferrals | The following table sets forth loans on active payment forbearance or deferral as of September 30, 2020:
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Schedule of information related to loans modified in a TDR, by class | The following table presents by class, information related to loans modified in a TDR during the three and nine months ended September 30, 2020:
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Schedule of recorded investment in loans and leases, by class and credit indicator | The following table presents the amortized cost basis of the Company's loans by class, credit quality indicator and origination year as of September 30, 2020. Revolving loans converted to term as of and during the three and nine months ended September 30, 2020 were not material to the total loan portfolio.
The following tables present the Company's loans by class and credit quality indicator as of September 30, 2020 and December 31, 2019:
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ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance, by class | The following table presents by class, the activity in the ACL for loans under ASC 326 during the three and nine months ended September 30, 2020 and under previous GAAP during the three and nine months ended September 30, 2019:
The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, under ASC 326 during the three and nine months ended September 30, 2020 and under previous GAAP during the three and nine months ended September 30, 2019.
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INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of investment in unconsolidated subsidiaries | The components of the Company's investments in unconsolidated subsidiaries were as follows:
The following table presents amortization and tax credits recognized associated with our investments in LIHTC partnerships for the three and nine months ended September 30, 2020 and September 30, 2019:
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Other Commitments | The expected payments for the unfunded commitments as of September 30, 2020 for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:
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MORTGAGE SERVICING RIGHTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of gross carrying value and accumulated amortization related to intangible assets | The following table presents changes in mortgage servicing rights for the periods presented:
The gross carrying value and accumulated amortization related to our mortgage servicing rights are presented below:
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Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights | The following tables present the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights:
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Schedule of estimated amortization expense | Based on the mortgage servicing rights held as of September 30, 2020, estimated amortization expense for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:
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DERIVATIVES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheets | The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets:
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Schedule of the impact of derivative instruments and their location within the consolidated statements of income | The following table presents the impact of derivative instruments and their location within the consolidated statements of income:
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SHORT-TERM BORROWINGS AND LONG-TERM DEBT - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Borrowing | At September 30, 2020 and December 31, 2019, the Company had the following junior subordinated debentures outstanding, which is recorded in long-term debt on the Company's consolidated balance sheets:
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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating income segregated by revenue streams | The following presents the Company's other operating income, segregated by revenue streams that are in-scope and out-of-scope of ASC 606, "Revenue from Contracts with Customers" for the three and nine months ended September 30, 2020 and 2019:
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SHARE-BASED COMPENSATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity of restricted stock awards and units | The table below presents the activity of restricted stock units for the nine months ended September 30, 2020:
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LEASES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] | Total lease cost, cash flow information, weighted-average remaining lease term and weighted-average discount rate is summarized below for the period indicated:
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Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following is a schedule of annual undiscounted cash flows for our operating leases and a reconciliation of those cash flows to the operating lease liabilities for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter:
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Operating Lease, Lease Income [Table Text Block] | The following represents lease income related to these leases that was recognized for the period indicated:
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Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Based on the Company's leases as lessor as of September 30, 2020, estimated lease payments for the remainder of fiscal year 2020, the next five succeeding fiscal years and all years thereafter are as follows:
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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of other comprehensive income (loss) | The following tables present the components of other comprehensive income for the three and nine months ended September 30, 2020 and 2019, by component:
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Schedule of changes in each component of AOCI, net of tax | The following tables present the changes in each component of AOCI, net of tax, for the three and nine months ended September 30, 2020 and 2019:
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Schedule of amounts reclassified out of each component of AOCI | The following table presents the amounts reclassified out of each component of AOCI for the three and nine months ended September 30, 2020 and 2019:
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EARNINGS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of information used to compute basic and diluted earnings per share | The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated:
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FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments |
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Schedule of balances of assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value of assets and liabilities measured on a recurring basis as of September 30, 2020 and December 31, 2019:
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Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | For the nine months ended September 30, 2020 and 2019, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows:
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Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis | the level of valuation assumptions used to determine the respective fair values as of September 30, 2020 and December 31, 2019:
(1)Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2019
USD ($)
segment
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
segment
|
Jan. 31, 2020 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $ 0.2 | $ 0.2 | $ 0.2 | |
Proportional Amortization Investments | 15.3 | 28.4 | 28.4 | |
Cost Method Investments | $ 1.6 | 1.6 | $ 1.6 | |
Number of operating segments | segment | 3 | 1 | ||
Available for sale accrued interest receivable | 4.2 | $ 4.2 | ||
Financing receivable accrued interest receivable | 17.3 | $ 17.3 | ||
Financing Receivable, Accrued Interest, Allowance for Credit Loss | 0.2 | |||
Provision for Loan, Lease, and Other Losses | $ 0.2 | |||
Oahu HomeLoans, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% |
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Jun. 30, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | $ (80,542) | $ (47,971) | $ (47,971) | ||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | (4,604) | (1,272) | (1,272) | $ (1,431) | $ (1,897) | $ (1,242) | |
Accumulated deficit | $ 16,609 | 19,102 | 19,102 | ||||
Other Assets | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net deferred tax assets (included in other assets) | 16,541 | ||||||
Commercial Financial And Agricultural | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (8,136) | ||||||
Real Estate | Construction | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (1,792) | ||||||
Real Estate | Residential Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (13,327) | ||||||
Real Estate | Home Equity | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (4,206) | ||||||
Real Estate | Commercial Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (11,113) | ||||||
Consumer | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (9,397) | ||||||
Adjusted balance at beginning of period | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (51,537) | ||||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | $ (4,383) | (2,012) | (2,012) | ||||
Accumulated deficit | 22,257 | ||||||
Adjusted balance at beginning of period | Other Assets | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net deferred tax assets (included in other assets) | 17,692 | ||||||
Adjusted balance at beginning of period | Commercial Financial And Agricultural | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (7,509) | ||||||
Adjusted balance at beginning of period | Real Estate | Construction | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (2,271) | ||||||
Adjusted balance at beginning of period | Real Estate | Residential Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (13,935) | ||||||
Adjusted balance at beginning of period | Real Estate | Home Equity | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (2,592) | ||||||
Adjusted balance at beginning of period | Real Estate | Commercial Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (13,737) | ||||||
Adjusted balance at beginning of period | Consumer | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (11,493) | ||||||
Impact of the adoption of new accounting standards | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (3,566) | ||||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | (740) | $ (740) | |||||
Accumulated deficit | 3,155 | ||||||
Impact of the adoption of new accounting standards | Other Assets | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Net deferred tax assets (included in other assets) | 1,151 | ||||||
Impact of the adoption of new accounting standards | Commercial Financial And Agricultural | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | 627 | ||||||
Impact of the adoption of new accounting standards | Real Estate | Construction | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (479) | ||||||
Impact of the adoption of new accounting standards | Real Estate | Residential Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (608) | ||||||
Impact of the adoption of new accounting standards | Real Estate | Home Equity | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | 1,614 | ||||||
Impact of the adoption of new accounting standards | Real Estate | Commercial Mortgage | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (2,624) | ||||||
Impact of the adoption of new accounting standards | Consumer | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (2,096) | ||||||
Accounting Standards Update 2016-13 [Member] | Impact of the adoption of new accounting standards | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing Receivable, Allowance for Credit Loss | (3,600) | ||||||
Net deferred tax assets (included in other assets) | 1,100 | ||||||
Reserve for off-balance sheet credit exposures (included in other liabilities) | $ (700) |
INVESTMENT SECURITIES (Available for Sale and Held to Maturity Investment Securities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Available for Sale | ||
Amortized cost | $ 1,136,535 | $ 1,116,545 |
Gross unrealized gains | 31,423 | 13,737 |
Gross unrealized losses | (1,639) | (3,299) |
Fair value | 1,166,319 | 1,126,983 |
Available-for-sale, allowance for credit loss | 0 | |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Available for Sale | ||
Amortized cost | 743,786 | 673,918 |
Gross unrealized gains | 20,395 | 6,003 |
Gross unrealized losses | (855) | (2,099) |
Fair value | 763,326 | 677,822 |
Available-for-sale, allowance for credit loss | 0 | |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale | ||
Amortized cost | 71,335 | 80,773 |
Gross unrealized gains | 2,451 | 1,198 |
Gross unrealized losses | 0 | (746) |
Fair value | 73,786 | 81,225 |
Available-for-sale, allowance for credit loss | 0 | |
States and political subdivisions | ||
Available for Sale | ||
Amortized cost | 163,642 | 119,755 |
Gross unrealized gains | 5,239 | 2,303 |
Gross unrealized losses | (292) | (40) |
Fair value | 168,589 | 122,018 |
Available-for-sale, allowance for credit loss | 0 | |
Corporate securities | ||
Available for Sale | ||
Amortized cost | 50,318 | 30,277 |
Gross unrealized gains | 471 | 252 |
Gross unrealized losses | (231) | 0 |
Fair value | 50,558 | 30,529 |
Available-for-sale, allowance for credit loss | 0 | |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Available for Sale | ||
Amortized cost | 35,115 | 40,769 |
Gross unrealized gains | 41 | 10 |
Gross unrealized losses | (212) | (398) |
Fair value | 34,944 | 40,381 |
Available-for-sale, allowance for credit loss | 0 | |
Residential - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 27,525 | 36,377 |
Gross unrealized gains | 1,185 | 830 |
Gross unrealized losses | (34) | (16) |
Fair value | 28,676 | 37,191 |
Available-for-sale, allowance for credit loss | 0 | |
Commercial - Non-government agencies | ||
Available for Sale | ||
Amortized cost | 44,814 | 134,676 |
Gross unrealized gains | 1,641 | 3,141 |
Gross unrealized losses | (15) | 0 |
Fair value | 46,440 | $ 137,817 |
Available-for-sale, allowance for credit loss | $ 0 |
INVESTMENT SECURITIES (Amortized Cost and Estimated Fair Value of Investment Securities) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Available for Sale, Amortized Cost | ||
Due in one year or less | $ 27,260 | |
Due after one year through five years | 40,800 | |
Due after five years through ten years | 89,879 | |
Due after ten years | 91,136 | |
Total | 1,136,535 | |
Available for Sale, Estimated Fair Value | ||
Due in one year or less | 27,378 | |
Due after one year through five years | 42,098 | |
Due after five years through ten years | 92,226 | |
Due after ten years | 92,389 | |
Available-for-sale debt securities, at fair value | 1,166,319 | $ 1,126,983 |
Equity securities, at fair value | 1,204 | 1,127 |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 743,786 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 763,326 | |
Available-for-sale debt securities, at fair value | 763,326 | 677,822 |
Commercial - U.S. Government agencies and sponsored entities | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 71,335 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 73,786 | |
Available-for-sale debt securities, at fair value | 73,786 | 81,225 |
Residential - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 27,525 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 28,676 | |
Available-for-sale debt securities, at fair value | 28,676 | 37,191 |
Commercial - Non-government agencies | ||
Available for Sale, Amortized Cost | ||
Mortgage-backed securities | 44,814 | |
Available for Sale, Estimated Fair Value | ||
Mortgage-backed securities | 46,440 | |
Available-for-sale debt securities, at fair value | 46,440 | 137,817 |
Equity securities | ||
Available for Sale, Estimated Fair Value | ||
Equity securities, at amortized cost | 1,027 | 935 |
Equity securities, at fair value | $ 1,204 | $ 1,127 |
INVESTMENT SECURITIES (Narrative) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
security
shares
|
Sep. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
shares
|
Sep. 30, 2020
USD ($)
security
shares
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
security
|
Jan. 01, 2019
USD ($)
|
|
Class of Stock [Line Items] | |||||||
Proceeds from sales of investment securities available-for-sale | $ 86,500 | $ 53,900 | $ 86,508 | $ 53,935 | |||
Investment securities gains (losses) | (352) | $ 36 | (352) | $ 36 | |||
Investment securities pledged as collateral | $ 517,500 | $ 517,500 | $ 719,800 | ||||
Number of investment securities in an unrealized loss position | security | 48 | 48 | 81 | ||||
Visa [Member] | Common Class B [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares owned (in shares) | shares | 34,631 | 34,631 | |||||
Credit Card Intermediary [Member] | Common Class B [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares owned (in shares) | shares | 11,170 | ||||||
Proceeds from sale of MasterCard stock | $ 2,600 | ||||||
Accounting Standards Update 2017-12 [Member] | |||||||
Class of Stock [Line Items] | |||||||
Debt Securities, Held-to-maturity | $ 148,500 | ||||||
Fair value | $ 144,300 |
INVESTMENT SECURITIES (Investment Securities at an Unrealized Loss Position) (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
security
|
Dec. 31, 2019
USD ($)
security
|
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Number of investment securities in an unrealized loss position | security | 48 | 81 |
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | $ 197,678 | $ 115,244 |
Less than 12 months, Unrealized Losses | (1,457) | (1,197) |
12 months or longer, Fair Value | 22,141 | 234,127 |
12 months or longer, Unrealized Losses | (182) | (2,102) |
Total, Fair Value | 219,819 | 349,371 |
Total, Unrealized Losses | (1,639) | (3,299) |
States and political subdivisions | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 39,297 | 1,754 |
Less than 12 months, Unrealized Losses | (292) | (9) |
12 months or longer, Fair Value | 0 | 801 |
12 months or longer, Unrealized Losses | 0 | (31) |
Total, Fair Value | 39,297 | 2,555 |
Total, Unrealized Losses | (292) | (40) |
Corporate securities | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 26,173 | |
Less than 12 months, Unrealized Losses | (231) | |
12 months or longer, Fair Value | 0 | |
12 months or longer, Unrealized Losses | 0 | |
Total, Fair Value | 26,173 | |
Total, Unrealized Losses | (231) | |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 4,805 | 18,882 |
Less than 12 months, Unrealized Losses | (30) | (143) |
12 months or longer, Fair Value | 22,141 | 19,031 |
12 months or longer, Unrealized Losses | (182) | (255) |
Total, Fair Value | 26,946 | 37,913 |
Total, Unrealized Losses | (212) | (398) |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 122,914 | 54,335 |
Less than 12 months, Unrealized Losses | (855) | (283) |
12 months or longer, Fair Value | 0 | 214,295 |
12 months or longer, Unrealized Losses | 0 | (1,816) |
Total, Fair Value | 122,914 | 268,630 |
Total, Unrealized Losses | (855) | (2,099) |
Residential - Non-government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 994 | 8,206 |
Less than 12 months, Unrealized Losses | (34) | (16) |
12 months or longer, Fair Value | 0 | 0 |
12 months or longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 994 | 8,206 |
Total, Unrealized Losses | (34) | (16) |
Mortgage Backed Securities Commercial U S Government Sponsored Entities [Member] | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 32,067 | |
Less than 12 months, Unrealized Losses | (746) | |
12 months or longer, Fair Value | 0 | |
12 months or longer, Unrealized Losses | 0 | |
Total, Fair Value | 32,067 | |
Total, Unrealized Losses | $ (746) | |
Commercial - Non-government agencies | ||
INVESTMENT SECURITIES | ||
Less than 12 months, Fair Value | 3,495 | |
Less than 12 months, Unrealized Losses | (15) | |
12 months or longer, Fair Value | 0 | |
12 months or longer, Unrealized Losses | 0 | |
Total, Fair Value | 3,495 | |
Total, Unrealized Losses | $ (15) |
LOANS AND CREDIT QUALITY (Loans and Leases) (Details) $ in Thousands |
1 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 27, 2020 |
Oct. 31, 2020
USD ($)
|
Sep. 30, 2020
USD ($)
segment
loan
|
Sep. 30, 2019
USD ($)
loan
|
Aug. 31, 2020
USD ($)
segment
|
Jan. 01, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
LOANS AND LEASES | |||||||
Loans and leases, gross | $ 5,043,380 | $ 4,446,695 | |||||
Net deferred (fees) costs | (12,754) | 2,845 | |||||
Total loans, net of allowance for credit losses | 5,030,626 | 4,449,540 | |||||
Financing Receivable, Allowance for Credit Loss | (80,542) | $ (47,971) | (47,971) | ||||
Loans and Leases Receivable, Net Amount | 4,950,084 | 4,401,569 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||||
Number Of Loans Issued By Financial Institutions Through The SBA | segment | 7,200 | ||||||
Loans Issued By Financial Institutions Through The SBA | $ 558,000 | ||||||
Processing fees from loans issued by financial institutions through the SBA | $ 21,000 | ||||||
Loans | $ 5,030,626 | 4,449,540 | |||||
Transfer of Portfolio Loans Transferred to Held For Sale Category Number of Nonperforming Loans | 3 | 0 | |||||
Net transfer of loans to loans held for sale | $ 6,565 | $ 0 | |||||
Loans And Leases Receivable, Number Of Loans Sold | loan | 0 | 0 | |||||
Subsequent Event | |||||||
LOANS AND LEASES | |||||||
Gain (Loss) on Sales of Loans, Net | $ 100 | ||||||
Minimum | |||||||
LOANS AND LEASES | |||||||
Debt instrument, term | 2 years | ||||||
Debt Issuance Costs, Percent | 1.00% | ||||||
Maximum | |||||||
LOANS AND LEASES | |||||||
Debt instrument, term | 5 years | ||||||
Debt Issuance Costs, Percent | 5.00% | ||||||
Commercial Financial And Agricultural | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 570,089 | ||||||
Net deferred (fees) costs | 215 | ||||||
Total loans, net of allowance for credit losses | 570,304 | ||||||
Financing Receivable, Allowance for Credit Loss | (8,136) | ||||||
Loans | 570,304 | ||||||
Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | $ 545,277 | 0 | |||||
Net deferred (fees) costs | (16,696) | ||||||
Total loans, net of allowance for credit losses | 528,581 | ||||||
Loans | 528,581 | ||||||
Commercial Financial And Agricultural | Other | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 526,363 | 570,089 | |||||
Net deferred (fees) costs | 1,707 | ||||||
Total loans, net of allowance for credit losses | 528,070 | ||||||
Loans | 528,070 | ||||||
Real Estate | Construction | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 118,519 | 96,139 | |||||
Net deferred (fees) costs | (272) | (285) | |||||
Total loans, net of allowance for credit losses | 118,247 | 95,854 | |||||
Financing Receivable, Allowance for Credit Loss | (1,792) | ||||||
Loans | 118,247 | 95,854 | |||||
Real Estate | Residential Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 1,676,457 | 1,595,801 | |||||
Net deferred (fees) costs | 3,603 | 4,000 | |||||
Total loans, net of allowance for credit losses | 1,680,060 | 1,599,801 | |||||
Financing Receivable, Allowance for Credit Loss | (13,327) | ||||||
Loans | 1,680,060 | 1,599,801 | |||||
Real Estate | Home Equity | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 533,139 | 490,239 | |||||
Net deferred (fees) costs | 917 | 495 | |||||
Total loans, net of allowance for credit losses | 534,056 | 490,734 | |||||
Financing Receivable, Allowance for Credit Loss | (4,206) | ||||||
Loans | 534,056 | 490,734 | |||||
Real Estate | Commercial Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 1,143,209 | 1,124,911 | |||||
Net deferred (fees) costs | (1,944) | (1,496) | |||||
Total loans, net of allowance for credit losses | 1,141,265 | 1,123,415 | |||||
Financing Receivable, Allowance for Credit Loss | (11,113) | ||||||
Loans | 1,141,265 | 1,123,415 | |||||
Consumer | |||||||
LOANS AND LEASES | |||||||
Financing Receivable, Allowance for Credit Loss | $ (9,397) | ||||||
Consumer | Consumer | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 500,416 | 569,516 | |||||
Net deferred (fees) costs | (69) | (84) | |||||
Total loans, net of allowance for credit losses | 500,347 | 569,432 | |||||
Loans | 500,347 | 569,432 | |||||
Special Mention | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 148,765 | 38,957 | |||||
Special Mention | Commercial Financial And Agricultural | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 20,677 | ||||||
Special Mention | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | ||||||
Special Mention | Commercial Financial And Agricultural | Other | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 73,595 | ||||||
Special Mention | Real Estate | Construction | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 945 | 0 | |||||
Special Mention | Real Estate | Residential Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 1,584 | 840 | |||||
Special Mention | Real Estate | Home Equity | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 210 | 0 | |||||
Special Mention | Real Estate | Commercial Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 72,181 | 17,440 | |||||
Special Mention | Consumer | Consumer | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 250 | 0 | |||||
Substandard | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 47,909 | 41,351 | |||||
Substandard | Commercial Financial And Agricultural | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 26,070 | ||||||
Substandard | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | ||||||
Substandard | Commercial Financial And Agricultural | Other | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 7,463 | ||||||
Substandard | Real Estate | Construction | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | 0 | |||||
Substandard | Real Estate | Residential Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 4,693 | 1,889 | |||||
Substandard | Real Estate | Home Equity | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 533 | 92 | |||||
Substandard | Real Estate | Commercial Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 34,964 | 13,107 | |||||
Substandard | Consumer | Consumer | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 256 | 193 | |||||
Loss | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 134 | 111 | |||||
Loss | Commercial Financial And Agricultural | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | ||||||
Loss | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | ||||||
Loss | Commercial Financial And Agricultural | Other | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | ||||||
Loss | Real Estate | Construction | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | 0 | |||||
Loss | Real Estate | Residential Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | 0 | |||||
Loss | Real Estate | Home Equity | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | 0 | |||||
Loss | Real Estate | Commercial Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 0 | 0 | |||||
Loss | Consumer | Consumer | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 134 | 111 | |||||
Pass | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 4,846,572 | 4,366,276 | |||||
Pass | Commercial Financial And Agricultural | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 523,342 | ||||||
Pass | Commercial Financial And Agricultural | Small Business Administration Paycheck Protection Program | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 545,277 | ||||||
Pass | Commercial Financial And Agricultural | Other | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 445,305 | ||||||
Pass | Real Estate | Construction | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 117,574 | 96,139 | |||||
Pass | Real Estate | Residential Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 1,670,180 | 1,593,072 | |||||
Pass | Real Estate | Home Equity | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 532,396 | 490,147 | |||||
Pass | Real Estate | Commercial Mortgage | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | 1,036,064 | 1,094,364 | |||||
Pass | Consumer | Consumer | |||||||
LOANS AND LEASES | |||||||
Loans and leases, gross | $ 499,776 | $ 569,212 |
LOANS AND CREDIT QUALITY (Purchases) (Details) - Consumer - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Loans and Leases Receivable Disclosure [Line Items] | ||||
Outstanding balance | $ 6,960 | $ 30,669 | $ 41,272 | $ 79,996 |
Purchase premium (discount) | (280) | (1,176) | (1,396) | (1,176) |
Purchase price | $ 6,680 | $ 29,493 | $ 39,876 | $ 78,820 |
LOANS AND CREDIT QUALITY (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | $ 18,672 |
Allocated ACL | 520 |
Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 9,743 |
Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 7,558 |
Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 1,371 |
Commercial Financial And Agricultural | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 1,371 |
Allocated ACL | 213 |
Commercial Financial And Agricultural | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Commercial Financial And Agricultural | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Commercial Financial And Agricultural | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 1,371 |
Real Estate | Residential Mortgage | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 9,210 |
Allocated ACL | 0 |
Real Estate | Residential Mortgage | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 9,210 |
Real Estate | Residential Mortgage | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Residential Mortgage | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Home Equity | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 533 |
Allocated ACL | 0 |
Real Estate | Home Equity | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 533 |
Real Estate | Home Equity | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Home Equity | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Commercial Mortgage | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 7,558 |
Allocated ACL | 307 |
Real Estate | Commercial Mortgage | Secured by 1-4 Family Residential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 0 |
Real Estate | Commercial Mortgage | Secured by Nonfarm Nonresidential Properties | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | 7,558 |
Real Estate | Commercial Mortgage | Secured by Real Estate and Business Assets | |
Loans and Leases Receivable Disclosure [Line Items] | |
Collateral-Dependent Financing Receivable | $ 0 |
LOANS AND CREDIT QUALITY(Forbearance or Deferrals) (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
loan
|
Dec. 31, 2019
USD ($)
|
|
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loan Count | loan | 3,813 | |
Balance | $ 290,841 | |
Accrued Interest Receivable | 4,439 | |
Loans | 5,030,626 | $ 4,449,540 |
Total Loans, excl. PPP | $ 4,502,045 | |
% of Total Loans | 5.80% | |
% of Total Loans, excl. PPP | 0.065 | |
Commercial Financial And Agricultural | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loans | 570,304 | |
Commercial Financial And Agricultural | Commercial Financial And Agricultural | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loan Count | loan | 363 | |
Balance | $ 64,298 | |
Accrued Interest Receivable | 844 | |
Loans | $ 1,056,651 | |
% of Total Loans | 6.10% | |
Commercial Financial And Agricultural | Other | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loans | $ 528,070 | |
% of Total Loans, excl. PPP | 0.122 | |
Real Estate | Construction | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loan Count | loan | 0 | |
Balance | $ 0 | |
Accrued Interest Receivable | 0 | |
Loans | $ 118,247 | 95,854 |
% of Total Loans | 0.00% | |
% of Total Loans, excl. PPP | 0 | |
Real Estate | Residential Mortgage | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loan Count | loan | 216 | |
Balance | $ 103,130 | |
Accrued Interest Receivable | 1,803 | |
Loans | $ 1,680,060 | 1,599,801 |
% of Total Loans | 6.10% | |
% of Total Loans, excl. PPP | 0.061 | |
Real Estate | Home Equity | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loan Count | loan | 0 | |
Balance | $ 0 | |
Accrued Interest Receivable | 0 | |
Loans | $ 534,056 | 490,734 |
% of Total Loans | 0.00% | |
% of Total Loans, excl. PPP | 0 | |
Real Estate | Commercial Mortgage | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loan Count | loan | 25 | |
Balance | $ 69,420 | |
Accrued Interest Receivable | 469 | |
Loans | $ 1,141,265 | 1,123,415 |
% of Total Loans | 6.10% | |
% of Total Loans, excl. PPP | 0.061 | |
Consumer Portfolio Segment [Member] | Consumer | ||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ||
Loan Count | loan | 3,209 | |
Balance | $ 53,993 | |
Accrued Interest Receivable | 1,323 | |
Loans | $ 500,347 | $ 569,432 |
% of Total Loans | 10.80% | |
% of Total Loans, excl. PPP | 0.108 |
LOANS AND CREDIT QUALITY (Impaired Loans) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
loan
|
Sep. 30, 2019
USD ($)
loan
|
Dec. 31, 2019
USD ($)
|
|
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | $ 9,407 | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 484 | |||
Total | 9,891 | |||
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 8,582 | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 484 | |||
Total | 9,066 | |||
Allowance Allocated | ||||
Impaired loans, allowance allocated | 235 | |||
Average recorded investment on impaired loans | ||||
Average Recorded Investment | $ 9,911 | $ 12,768 | ||
Interest income recognized on impaired loans | ||||
Interest Income Recognized | 87 | $ 926 | ||
Mortgage loans foreclosure, number | loan | 0 | 1 | ||
Mortgage Loans Foreclosure, Amount | $ 200 | |||
Mortgage Loans Foreclosure, Number Sold | loan | 1 | 0 | ||
Proceeds from sale of foreclosed loans/other real estate owned | $ 94 | $ 0 | ||
Commercial Financial And Agricultural | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 246 | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 467 | |||
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 135 | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 467 | |||
Allowance Allocated | ||||
Impaired loans, allowance allocated | 218 | |||
Average recorded investment on impaired loans | ||||
Average Recorded Investment | 164 | 188 | ||
Interest income recognized on impaired loans | ||||
Interest Income Recognized | 2 | 7 | ||
Consumer | ||||
Unpaid Principal Balance | ||||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 17 | |||
Recorded Investment | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 17 | |||
Allowance Allocated | ||||
Impaired loans, allowance allocated | 17 | |||
Construction | Real Estate | ||||
Average recorded investment on impaired loans | ||||
Average Recorded Investment | 0 | 1,323 | ||
Interest income recognized on impaired loans | ||||
Interest Income Recognized | 0 | 62 | ||
Residential Mortgage | Real Estate | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 7,230 | |||
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 6,516 | |||
Average recorded investment on impaired loans | ||||
Average Recorded Investment | 7,536 | 8,763 | ||
Interest income recognized on impaired loans | ||||
Interest Income Recognized | 63 | 776 | ||
Loans in the process of foreclosure | $ 700 | 600 | ||
Home Equity | Real Estate | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 92 | |||
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 92 | |||
Average recorded investment on impaired loans | ||||
Average Recorded Investment | 190 | 332 | ||
Interest income recognized on impaired loans | ||||
Interest Income Recognized | 0 | 13 | ||
Commercial Mortgage | Real Estate | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 1,839 | |||
Recorded Investment | ||||
Impaired loans with no related allowance recorded | $ 1,839 | |||
Average recorded investment on impaired loans | ||||
Average Recorded Investment | 2,021 | 2,162 | ||
Interest income recognized on impaired loans | ||||
Interest Income Recognized | $ 22 | $ 68 |
LOANS AND CREDIT QUALITY (Aging of Recorded Investment) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | $ 13,059 | $ 1,555 |
Total Past Due and Nonaccrual | 24,365 | 12,497 |
Loans and Leases Not Past Due | 5,006,261 | 4,437,043 |
Total loans, net of allowance for credit losses | 5,030,626 | 4,449,540 |
Nonaccrual Loans With No ACL | 9,529 | 1,071 |
Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 467 | |
Total Past Due and Nonaccrual | 1,808 | |
Loans and Leases Not Past Due | 568,496 | |
Total loans, net of allowance for credit losses | 570,304 | |
Nonaccrual Loans With No ACL | 0 | |
Accruing Loans 30 - 59 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 9,065 | 6,931 |
Accruing Loans 30 - 59 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 476 | |
Accruing Loans 60 - 89 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,332 | 3,001 |
Accruing Loans 60 - 89 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 865 | |
Accruing Loans Greater Than 90 Days Past Due | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 909 | 1,010 |
Accruing Loans Greater Than 90 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | |
Small Business Administration Paycheck Protection Program | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | |
Total Past Due and Nonaccrual | 0 | |
Loans and Leases Not Past Due | 528,581 | |
Total loans, net of allowance for credit losses | 528,581 | |
Nonaccrual Loans With No ACL | 0 | |
Small Business Administration Paycheck Protection Program | Accruing Loans 30 - 59 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | |
Small Business Administration Paycheck Protection Program | Accruing Loans 60 - 89 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | |
Small Business Administration Paycheck Protection Program | Accruing Loans Greater Than 90 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | |
Other | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 1,536 | |
Total Past Due and Nonaccrual | 6,867 | |
Loans and Leases Not Past Due | 521,203 | |
Total loans, net of allowance for credit losses | 528,070 | |
Nonaccrual Loans With No ACL | 668 | |
Other | Accruing Loans 30 - 59 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 5,246 | |
Other | Accruing Loans 60 - 89 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 85 | |
Other | Accruing Loans Greater Than 90 Days Past Due | Commercial Financial And Agricultural | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | |
Construction | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 0 | 0 |
Total Past Due and Nonaccrual | 0 | 643 |
Loans and Leases Not Past Due | 118,247 | 95,211 |
Total loans, net of allowance for credit losses | 118,247 | 95,854 |
Nonaccrual Loans With No ACL | 0 | 0 |
Construction | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 643 |
Construction | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Construction | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Residential Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 4,032 | 979 |
Total Past Due and Nonaccrual | 5,188 | 4,122 |
Loans and Leases Not Past Due | 1,674,872 | 1,595,679 |
Total loans, net of allowance for credit losses | 1,680,060 | 1,599,801 |
Nonaccrual Loans With No ACL | 4,032 | 979 |
Residential Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 12 | 1,830 |
Residential Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 556 | 589 |
Residential Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 588 | 724 |
Home Equity | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 533 | 92 |
Total Past Due and Nonaccrual | 788 | 1,058 |
Loans and Leases Not Past Due | 533,268 | 489,676 |
Total loans, net of allowance for credit losses | 534,056 | 490,734 |
Nonaccrual Loans With No ACL | 533 | 92 |
Home Equity | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 255 | 759 |
Home Equity | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 207 |
Home Equity | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Commercial Mortgage | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 6,889 | 0 |
Total Past Due and Nonaccrual | 8,667 | 397 |
Loans and Leases Not Past Due | 1,132,598 | 1,123,018 |
Total loans, net of allowance for credit losses | 1,141,265 | 1,123,415 |
Nonaccrual Loans With No ACL | 4,296 | 0 |
Commercial Mortgage | Accruing Loans 30 - 59 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,778 | 0 |
Commercial Mortgage | Accruing Loans 60 - 89 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 397 |
Commercial Mortgage | Accruing Loans Greater Than 90 Days Past Due | Real Estate | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 0 | 0 |
Consumer | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Nonaccrual Loans | 69 | 17 |
Total Past Due and Nonaccrual | 2,855 | 4,469 |
Loans and Leases Not Past Due | 497,492 | 564,963 |
Total loans, net of allowance for credit losses | 500,347 | 569,432 |
Nonaccrual Loans With No ACL | 0 | 0 |
Consumer | Accruing Loans 30 - 59 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 1,774 | 3,223 |
Consumer | Accruing Loans 60 - 89 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | 691 | 943 |
Consumer | Accruing Loans Greater Than 90 Days Past Due | Consumer | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ||
Past Due, Accuing Loans | $ 321 | $ 286 |
LOANS AND CREDIT QUALITY (Modifications) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
contract
loan
|
Sep. 30, 2019
contract
loan
|
Sep. 30, 2020
USD ($)
loan
contract
|
Sep. 30, 2019
contract
loan
|
Dec. 31, 2019
USD ($)
|
|
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | contract | 3 | 0 | 12 | 0 | |
Recorded Investment (as of Period End) | $ 495 | $ 495 | |||
Debt instrument, deferrals not classified as TDRs | 290,700 | 290,700 | |||
Debt Instrument, Deferrals, Amount | $ 290,841 | $ 290,841 | |||
Number of loans were modified as a TDR within the previous twelve months that subsequently defaulted | loan | 0 | 0 | 0 | 0 | |
Accruing Loans Greater Than 90 Days Past Due | |||||
Information related to loans modified in a TDR | |||||
Amount of TDRs still accruing interest | $ 0 | $ 0 | $ 0 | ||
Consumer | |||||
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | contract | 3 | 11 | |||
Recorded Investment (as of Period End) | $ 80 | $ 80 | |||
Real Estate | |||||
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | contract | 1 | ||||
Nonperforming Financial Instruments | |||||
Information related to loans modified in a TDR | |||||
Amount of TDRs still accruing interest | 7,400 | $ 7,400 | $ 7,500 | ||
Nonperforming Financial Instruments | Resi Mortgage | HAWAII | |||||
Information related to loans modified in a TDR | |||||
Number of TDRs included in nonperforming assets | loan | 2 | ||||
Recorded Investment (as of Period End) | 300 | $ 300 | |||
Residential Mortgage | Real Estate | |||||
Information related to loans modified in a TDR | |||||
Debt Instrument, Deferrals, Amount | 103,130 | 103,130 | |||
Commercial Mortgage | Real Estate | |||||
Information related to loans modified in a TDR | |||||
Recorded Investment (as of Period End) | 281 | 281 | |||
Debt Instrument, Deferrals, Amount | 69,420 | 69,420 | |||
Consumer | Consumer | |||||
Information related to loans modified in a TDR | |||||
Recorded Investment (as of Period End) | 214 | 214 | |||
Debt Instrument, Deferrals, Amount | $ 53,993 | $ 53,993 |
LOANS AND CREDIT QUALITY (Class and Credit Indicator) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | $ 1,216,297 | |
2019 | 705,118 | |
2018 | 523,242 | |
2017 | 476,447 | |
2016 | 394,986 | |
Prior | 1,064,810 | |
Amortized Cost of Revolving Loans | 649,726 | |
Total | 5,030,626 | |
Loans and leases, gross | 5,043,380 | $ 4,446,695 |
Net deferred (fees) costs | (12,754) | 2,845 |
Total loans, net of allowance for credit losses | 5,030,626 | 4,449,540 |
Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 570,089 | |
Net deferred (fees) costs | 215 | |
Total loans, net of allowance for credit losses | 570,304 | |
Pass | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 4,846,572 | 4,366,276 |
Pass | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 523,342 | |
Special Mention | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 148,765 | 38,957 |
Special Mention | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 20,677 | |
Substandard | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 47,909 | 41,351 |
Substandard | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 26,070 | |
Loss | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 134 | 111 |
Loss | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Small Business Administration Paycheck Protection Program | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 528,581 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 528,581 | |
Loans and leases, gross | 545,277 | 0 |
Net deferred (fees) costs | (16,696) | |
Total loans, net of allowance for credit losses | 528,581 | |
Small Business Administration Paycheck Protection Program | Pass | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 528,581 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 528,581 | |
Loans and leases, gross | 545,277 | |
Small Business Administration Paycheck Protection Program | Special Mention | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Small Business Administration Paycheck Protection Program | Substandard | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Small Business Administration Paycheck Protection Program | Loss | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Other | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 73,314 | |
2019 | 76,640 | |
2018 | 70,595 | |
2017 | 76,892 | |
2016 | 45,914 | |
Prior | 106,071 | |
Amortized Cost of Revolving Loans | 78,644 | |
Total | 528,070 | |
Loans and leases, gross | 526,363 | 570,089 |
Net deferred (fees) costs | 1,707 | |
Total loans, net of allowance for credit losses | 528,070 | |
Other | Pass | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 68,156 | |
2019 | 63,398 | |
2018 | 60,700 | |
2017 | 43,948 | |
2016 | 41,585 | |
Prior | 91,001 | |
Amortized Cost of Revolving Loans | 78,224 | |
Total | 447,012 | |
Loans and leases, gross | 445,305 | |
Other | Special Mention | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 4,958 | |
2019 | 11,714 | |
2018 | 8,784 | |
2017 | 31,839 | |
2016 | 2,123 | |
Prior | 13,757 | |
Amortized Cost of Revolving Loans | 420 | |
Total | 73,595 | |
Loans and leases, gross | 73,595 | |
Other | Substandard | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 200 | |
2019 | 1,528 | |
2018 | 1,111 | |
2017 | 1,105 | |
2016 | 2,206 | |
Prior | 1,313 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 7,463 | |
Loans and leases, gross | 7,463 | |
Other | Loss | Commercial Financial And Agricultural | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | |
Construction | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 19,436 | |
2019 | 20,931 | |
2018 | 42,838 | |
2017 | 11,201 | |
2016 | 2,202 | |
Prior | 19,238 | |
Amortized Cost of Revolving Loans | 2,401 | |
Total | 118,247 | |
Loans and leases, gross | 118,519 | 96,139 |
Net deferred (fees) costs | (272) | (285) |
Total loans, net of allowance for credit losses | 118,247 | 95,854 |
Construction | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 19,436 | |
2019 | 20,931 | |
2018 | 41,893 | |
2017 | 11,201 | |
2016 | 2,202 | |
Prior | 19,238 | |
Amortized Cost of Revolving Loans | 2,401 | |
Total | 117,302 | |
Loans and leases, gross | 117,574 | 96,139 |
Construction | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 945 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 945 | |
Loans and leases, gross | 945 | 0 |
Construction | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Construction | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Residential Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 416,073 | |
2019 | 302,683 | |
2018 | 141,696 | |
2017 | 162,573 | |
2016 | 198,696 | |
Prior | 458,339 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 1,680,060 | |
Loans and leases, gross | 1,676,457 | 1,595,801 |
Net deferred (fees) costs | 3,603 | 4,000 |
Total loans, net of allowance for credit losses | 1,680,060 | 1,599,801 |
Residential Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 416,073 | |
2019 | 302,683 | |
2018 | 141,156 | |
2017 | 159,808 | |
2016 | 197,665 | |
Prior | 456,398 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 1,673,783 | |
Loans and leases, gross | 1,670,180 | 1,593,072 |
Residential Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 1,437 | |
2016 | 147 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 1,584 | |
Loans and leases, gross | 1,584 | 840 |
Residential Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 540 | |
2017 | 1,328 | |
2016 | 884 | |
Prior | 1,941 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 4,693 | |
Loans and leases, gross | 4,693 | 1,889 |
Residential Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 0 | |
Loans and leases, gross | 0 | 0 |
Home Equity | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 13,407 | |
2019 | 16,993 | |
2018 | 16,713 | |
2017 | 778 | |
2016 | 594 | |
Prior | 5,123 | |
Amortized Cost of Revolving Loans | 480,448 | |
Total | 534,056 | |
Loans and leases, gross | 533,139 | 490,239 |
Net deferred (fees) costs | 917 | 495 |
Total loans, net of allowance for credit losses | 534,056 | 490,734 |
Home Equity | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 13,407 | |
2019 | 16,993 | |
2018 | 16,713 | |
2017 | 778 | |
2016 | 390 | |
Prior | 4,794 | |
Amortized Cost of Revolving Loans | 480,238 | |
Total | 533,313 | |
Loans and leases, gross | 532,396 | 490,147 |
Home Equity | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 210 | |
Total | 210 | |
Loans and leases, gross | 210 | 0 |
Home Equity | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 204 | |
Prior | 329 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 533 | |
Loans and leases, gross | 533 | 92 |
Home Equity | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Commercial Mortgage | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 93,195 | |
2019 | 154,375 | |
2018 | 173,520 | |
2017 | 172,795 | |
2016 | 126,252 | |
Prior | 404,202 | |
Amortized Cost of Revolving Loans | 16,926 | |
Total | 1,141,265 | |
Loans and leases, gross | 1,143,209 | 1,124,911 |
Net deferred (fees) costs | (1,944) | (1,496) |
Total loans, net of allowance for credit losses | 1,141,265 | 1,123,415 |
Commercial Mortgage | Pass | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 93,195 | |
2019 | 149,180 | |
2018 | 137,886 | |
2017 | 163,112 | |
2016 | 108,333 | |
Prior | 365,488 | |
Amortized Cost of Revolving Loans | 16,926 | |
Total | 1,034,120 | |
Loans and leases, gross | 1,036,064 | 1,094,364 |
Commercial Mortgage | Special Mention | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 2,602 | |
2018 | 24,134 | |
2017 | 7,685 | |
2016 | 13,623 | |
Prior | 24,137 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 72,181 | |
Loans and leases, gross | 72,181 | 17,440 |
Commercial Mortgage | Substandard | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 2,593 | |
2018 | 11,500 | |
2017 | 1,998 | |
2016 | 4,296 | |
Prior | 14,577 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 34,964 | |
Loans and leases, gross | 34,964 | 13,107 |
Commercial Mortgage | Loss | Real Estate | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
Loans and leases, gross | 0 | 0 |
Consumer | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 72,291 | |
2019 | 133,496 | |
2018 | 77,880 | |
2017 | 52,208 | |
2016 | 21,328 | |
Prior | 71,837 | |
Amortized Cost of Revolving Loans | 71,307 | |
Total | 500,347 | |
Loans and leases, gross | 500,416 | 569,516 |
Net deferred (fees) costs | (69) | (84) |
Total loans, net of allowance for credit losses | 500,347 | 569,432 |
Consumer | Pass | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 72,249 | |
2019 | 133,485 | |
2018 | 77,840 | |
2017 | 52,150 | |
2016 | 21,327 | |
Prior | 71,599 | |
Amortized Cost of Revolving Loans | 71,057 | |
Total | 499,707 | |
Loans and leases, gross | 499,776 | 569,212 |
Consumer | Special Mention | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized Cost of Revolving Loans | 250 | |
Total | 250 | |
Loans and leases, gross | 250 | 0 |
Consumer | Substandard | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 27 | |
2019 | 11 | |
2018 | 40 | |
2017 | 9 | |
2016 | 1 | |
Prior | 168 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 256 | |
Loans and leases, gross | 256 | 193 |
Consumer | Loss | Consumer | ||
Recorded investment in the loans and leases, by class and credit indicator | ||
2020 | 15 | |
2019 | 0 | |
2018 | 0 | |
2017 | 49 | |
2016 | 0 | |
Prior | 70 | |
Amortized Cost of Revolving Loans | 0 | |
Total | 134 | |
Loans and leases, gross | $ 134 | $ 111 |
ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURE (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Changes in the allowance | ||||
Beginning balance | $ 48,267 | $ 47,971 | $ 47,916 | |
Provision for credit losses | $ 14,652 | 1,532 | 34,621 | 4,219 |
Provision for credit losses on loans [1] | 14,465 | 34,434 | ||
Subtotal | 81,804 | 49,799 | 85,971 | 52,135 |
Charge-offs | 2,388 | 2,634 | 8,823 | 7,646 |
Recoveries | 1,126 | 1,002 | 3,394 | 3,678 |
Net charge-offs (recoveries) | 1,262 | 1,632 | 5,429 | 3,968 |
Ending balance | 80,542 | 48,167 | 80,542 | 48,167 |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Off-balance sheet, credit loss, liability, beginning balance | 1,897 | 1,272 | 1,242 | |
Provision for off-balance sheet credit exposures | 221 | (466) | 189 | |
Off-balance sheet, credit loss, liability, ending balance | 4,604 | 1,431 | 4,604 | 1,431 |
Commercial Financial And Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 0 | 0 | 0 | |
Provision for credit losses | 0 | 0 | ||
Provision for credit losses on loans [1] | 2 | 390 | ||
Subtotal | 390 | 0 | 390 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs (recoveries) | 0 | 0 | 0 | 0 |
Ending balance | 390 | 0 | 390 | 0 |
Other | ||||
Changes in the allowance | ||||
Beginning balance | 8,109 | 8,136 | 8,027 | |
Provision for credit losses | 107 | 943 | ||
Provision for credit losses on loans [1] | 2,620 | 11,511 | ||
Subtotal | 18,127 | 8,216 | 19,020 | 8,970 |
Charge-offs | 810 | 797 | 2,350 | 2,099 |
Recoveries | 321 | 362 | 968 | 910 |
Net charge-offs (recoveries) | 489 | 435 | 1,382 | 1,189 |
Ending balance | 17,638 | 7,781 | 17,638 | 7,781 |
Construction | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 1,313 | 1,792 | 1,202 | |
Provision for credit losses | 374 | (113) | ||
Provision for credit losses on loans [1] | 759 | 1,631 | ||
Subtotal | 4,033 | 1,687 | 3,902 | 1,089 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 6 | 131 | 604 |
Net charge-offs (recoveries) | 0 | (6) | (131) | (604) |
Ending balance | 4,033 | 1,693 | 4,033 | 1,693 |
Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 13,367 | 13,327 | 14,349 | |
Provision for credit losses | 75 | (1,301) | ||
Provision for credit losses on loans [1] | 3,537 | 4,478 | ||
Subtotal | 18,562 | 13,442 | 18,413 | 13,048 |
Charge-offs | 11 | 0 | 63 | 0 |
Recoveries | 13 | 104 | 214 | 498 |
Net charge-offs (recoveries) | (2) | (104) | (151) | (498) |
Ending balance | 18,564 | 13,546 | 18,564 | 13,546 |
Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 4,313 | 4,206 | 3,788 | |
Provision for credit losses | (45) | 462 | ||
Provision for credit losses on loans [1] | 2,517 | 3,545 | ||
Subtotal | 6,168 | 4,268 | 6,137 | 4,250 |
Charge-offs | 0 | 5 | 0 | 5 |
Recoveries | 0 | 24 | 31 | 42 |
Net charge-offs (recoveries) | 0 | (19) | (31) | (37) |
Ending balance | 6,168 | 4,287 | 6,168 | 4,287 |
Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 11,668 | 11,113 | 13,358 | |
Provision for credit losses | 541 | (1,174) | ||
Provision for credit losses on loans [1] | 3,304 | 5,712 | ||
Subtotal | 19,452 | 12,209 | 19,449 | 12,184 |
Charge-offs | 75 | 0 | 75 | 0 |
Recoveries | 12 | 0 | 15 | 25 |
Net charge-offs (recoveries) | 63 | 0 | 60 | (25) |
Ending balance | 19,389 | 12,209 | 19,389 | 12,209 |
Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | 9,497 | 9,397 | 7,192 | |
Provision for credit losses | 480 | 5,402 | ||
Provision for credit losses on loans [1] | 1,726 | 7,167 | ||
Subtotal | 15,072 | 9,977 | 18,660 | 12,594 |
Charge-offs | 1,492 | 1,832 | 6,335 | 5,542 |
Recoveries | 780 | 506 | 2,035 | 1,599 |
Net charge-offs (recoveries) | 712 | 1,326 | 4,300 | 3,943 |
Ending balance | 14,360 | $ 8,651 | 14,360 | $ 8,651 |
Impact of the adoption of new accounting standards | ||||
Changes in the allowance | ||||
Beginning balance | 3,566 | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Off-balance sheet, credit loss, liability, beginning balance | 740 | |||
Impact of the adoption of new accounting standards | Commercial Financial And Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 0 | |||
Impact of the adoption of new accounting standards | Other | ||||
Changes in the allowance | ||||
Beginning balance | (627) | |||
Impact of the adoption of new accounting standards | Construction | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 479 | |||
Impact of the adoption of new accounting standards | Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 608 | |||
Impact of the adoption of new accounting standards | Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | (1,614) | |||
Impact of the adoption of new accounting standards | Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 2,624 | |||
Impact of the adoption of new accounting standards | Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | 2,096 | |||
Adjusted balance at beginning of period | ||||
Changes in the allowance | ||||
Beginning balance | 67,339 | 51,537 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | ||||
Off-balance sheet, credit loss, liability, beginning balance | 4,383 | 2,012 | ||
Provision for off-balance sheet credit exposures | 2,592 | |||
Adjusted balance at beginning of period | Commercial Financial And Agricultural | ||||
Changes in the allowance | ||||
Beginning balance | 388 | 0 | ||
Adjusted balance at beginning of period | Other | ||||
Changes in the allowance | ||||
Beginning balance | 15,507 | 7,509 | ||
Adjusted balance at beginning of period | Construction | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 3,274 | 2,271 | ||
Adjusted balance at beginning of period | Residential Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 15,025 | 13,935 | ||
Adjusted balance at beginning of period | Home Equity | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 3,651 | 2,592 | ||
Adjusted balance at beginning of period | Commercial Mortgage | Real Estate | ||||
Changes in the allowance | ||||
Beginning balance | 16,148 | 13,737 | ||
Adjusted balance at beginning of period | Consumer | Consumer | ||||
Changes in the allowance | ||||
Beginning balance | $ 13,346 | $ 11,493 |
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | |||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Investments in Low Income Housing Tax Credit Partnerships | $ 28,437 | $ 28,437 | $ 15,322 | ||
Investments in common securities of statutory trusts | 1,547 | 1,547 | 1,547 | ||
Investments in affiliates | 201 | 201 | 192 | ||
Other | 54 | 54 | 54 | ||
Investment in unconsolidated subsidiaries | 30,239 | 30,239 | 17,115 | ||
Amortization expense in pretax income | 348 | $ 259 | 1,044 | $ 776 | |
Income tax credits and adjustments | 399 | $ 307 | 1,199 | $ 922 | |
Unfunded commitments, LIHTC | 22,700 | 22,700 | $ 11,500 | ||
2020 (remainder) | 12,853 | 12,853 | |||
2021 | 1,494 | 1,494 | |||
2022 | 8,253 | 8,253 | |||
2023 | 10 | 10 | |||
2024 | 26 | 26 | |||
2025 | 6 | 6 | |||
Thereafter | 43 | 43 | |||
Total unfunded commitments | $ 22,685 | $ 22,685 |
MORTGAGE SERVICING RIGHTS (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Sep. 30, 2019
USD ($)
|
|
OTHER INTANGIBLE ASSETS | |||||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | $ 9,971 | $ 2,836 | |||||
Mortgage Servicing Rights | |||||||
OTHER INTANGIBLE ASSETS | |||||||
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | $ 1,000 | $ 400 | 2,300 | 1,200 | |||
Changes in other intangible assets | |||||||
Balance, beginning of period | 14,718 | 15,596 | |||||
Additions | 2,269 | 1,189 | |||||
Amortization | (1,300) | (700) | (4,558) | (1,727) | |||
Balance, end of period | 12,429 | 15,058 | 12,429 | 15,058 | |||
Fair market value and key assumptions used in determining the fair market value | |||||||
Fair market value, beginning of period | 15,820 | 17,696 | |||||
Fair market value, end of period | 12,694 | 15,965 | 12,694 | 15,965 | |||
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | |||||||
Gross Carrying Value | $ 69,864 | $ 67,595 | |||||
Accumulated Amortization | (57,435) | (52,877) | |||||
Other intangible assets | 12,429 | 15,058 | 12,429 | 15,058 | 12,429 | 14,718 | $ 15,058 |
Estimated Amortization Expense | |||||||
2020 (remainder) | 957 | ||||||
2021 | 3,375 | ||||||
2022 | 2,682 | ||||||
2023 | 2,181 | ||||||
2024 | 1,801 | ||||||
2025 | 1,433 | ||||||
Thereafter | 0 | ||||||
Other intangible assets | $ 12,429 | $ 15,058 | $ 12,429 | $ 15,058 | $ 12,429 | $ 14,718 | $ 15,058 |
Measurement Input, Discount Rate | Mortgage Servicing Rights | |||||||
Fair market value and key assumptions used in determining the fair market value | |||||||
Forecasted constant prepayment rate assumption (1) | 0.096 | 0.095 | |||||
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights | |||||||
Fair market value and key assumptions used in determining the fair market value | |||||||
Forecasted constant prepayment rate assumption (1) | 0.243 | 0.119 |
DERIVATIVES (Details) - Derivatives Not Designated as Hedging Instruments $ in Millions |
Sep. 30, 2020
USD ($)
|
---|---|
Interest rate lock commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 2.9 |
Forward sale commitments | |
DERIVATIVES | |
Mortgage loans hedged | $ 19.3 |
DERIVATIVES (Balance Sheet) (Details) - Derivatives Not Designated as Hedging Instruments - Interest rate lock and forward sale commitments - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Asset Derivatives | ||
Fair Value | $ 111 | $ 8 |
Liability Derivatives | ||
Fair Value | $ 127 | $ 28 |
DERIVATIVES (Income Statement) (Details) - Derivatives Not Designated as Hedging Instruments - Derivatives Not in Cash Flow Hedging Relationship - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Mortgage banking income | Interest rate lock and forward sale commitments | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ 109 | $ 110 | $ 59 | $ 131 |
Other service charges and fees | Risk participation agreement | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ (54) | $ 1,234 | ||
Other income | Loans held for sale | ||||
DERIVATIVES | ||||
Unrealized gain (loss) on interest rate locks | $ (1) | $ (1) |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Narrative (Details) |
1 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2004
USD ($)
|
Sep. 30, 2004
USD ($)
|
Oct. 31, 2003
trust
|
Sep. 30, 2020
USD ($)
period
|
Dec. 31, 2019
USD ($)
|
Jan. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Debt Instrument [Line Items] | |||||||
Short-term borrowings | $ 206,000,000 | $ 150,000,000 | |||||
Long term borrowings | 101,547,000 | 101,547,000 | |||||
Number of wholly owned statutory trusts created | trust | 2 | ||||||
Federal Home Loan Bank Borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit, maximum borrowing capacity | 1,790,000,000 | 1,840,000,000 | |||||
Unused borrowings available | 1,260,000,000 | 1,570,000,000 | |||||
Short-term borrowings | 206,000,000.0 | 150,000,000.0 | |||||
Letters of Credit, outstanding | 267,000,000.0 | 78,900,000 | |||||
Commercial real estate and commercial loans pledged as collateral | 2,710,000,000 | ||||||
Federal Reserve discount window line of credit | |||||||
Debt Instrument [Line Items] | |||||||
Unused borrowings available | 59,200,000 | 65,300,000 | |||||
Commercial real estate and commercial loans pledged as collateral | 125,000,000.0 | 126,100,000 | |||||
C P B Capital Trust I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities, redemption amount | $ 20,000,000 | ||||||
C P B Capital Trust I I I [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities, redemption amount | $ 20,000,000 | ||||||
C P B Capital Trust I V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities issued value | $ 30,000,000.0 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 2.45% | ||||||
Common securities issued | $ 900,000 | ||||||
C P B Capital Trust V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Trust preferred securities issued value | $ 20,000,000.0 | ||||||
Trust preferred securities, variable rate basis | three-month LIBOR | ||||||
Trust preferred securities, basis spread on variable rate | 1.87% | ||||||
Common securities issued | $ 600,000 | ||||||
Federal Home Loan Bank Advances [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 50,000,000.0 | $ 50,000,000.0 | |||||
Subordinated Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Number of periods interest can be deferred | period | 20 | ||||||
Subordinated Debt [Member] | C P B Capital Trust I V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 30,900,000 | ||||||
Subordinated Debt [Member] | C P B Capital Trust V [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term borrowings | $ 20,600,000 | ||||||
Maximum | Subordinated Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Redemption period | 90 days |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Subordinated Debentures (Details) - Junior Subordinated Debt - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 51,547 | $ 51,547 |
Trust IV | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | 30,928 | 30,928 |
Trust V | ||
Debt Instrument [Line Items] | ||
Subordinated Debentures | $ 20,619 | $ 20,619 |
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 5,791 | $ 6,779 | $ 17,554 | $ 19,066 |
Out-of-scope other operating income | 5,772 | 3,487 | 13,587 | 12,967 |
Total other operating income | 11,563 | 10,266 | 31,141 | 32,033 |
Loan placement fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 235 | 230 | 653 | 486 |
Service charges on deposit accounts | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 1,475 | 2,125 | 4,674 | 6,247 |
Other service charges and fees | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 2,932 | 3,281 | 8,517 | 9,096 |
Income from fiduciary activities | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | 1,149 | 1,126 | 3,716 | 3,220 |
Net gain (loss) on sales of foreclosed assets | ||||
Revenue from External Customer [Line Items] | ||||
In-scope other operating income | $ 0 | $ 17 | $ (6) | $ 17 |
SHARE-BASED COMPENSATION (Details) - Restricted Stock Awards and Units |
9 Months Ended |
---|---|
Sep. 30, 2020
$ / shares
shares
| |
Activity of nonvested shares | |
Nonvested restricted stock awards and units, beginning of period (in shares) | shares | 366,467 |
Changes during the period: | |
Granted (in shares) | shares | 321,722 |
Vested (in shares) | shares | (123,179) |
Forfeited (in shares) | shares | (22,628) |
Nonvested restricted stock awards and units, end of period (in shares) | shares | 542,382 |
Weighted Average Grant Date Fair Value | |
Nonvested restricted stock awards and units, beginning of period (in dollars per share) | $ / shares | $ 28.89 |
Changes during the period: | |
Granted (in dollars per share) | $ / shares | 18.11 |
Vested (in dollars per share) | $ / shares | 29.47 |
Forfeited (in dollars per share) | $ / shares | 24.80 |
Nonvested restricted stock awards and units, end of period (in dollars per share) | $ / shares | $ 22.53 |
LEASES - Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Leases [Abstract] | ||||
Operating Lease, Cost | $ 1,613 | $ 1,627 | $ 4,919 | $ 4,883 |
Variable Lease, Cost | 732 | 699 | 2,098 | 1,950 |
Sublease Income | 0 | (11) | (15) | (33) |
Lease, Cost | 2,345 | 2,315 | 7,002 | 6,800 |
Cash flows from operating leases | $ (1,554) | $ (1,558) | $ (4,743) | $ (4,663) |
Operating Lease, Weighted Average Remaining Lease Term | 12 years 5 months 19 days | 13 years 9 months 18 days | 12 years 5 months 19 days | 13 years 9 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.91% | 3.92% | 3.91% | 3.92% |
LEASES - Lessee, Operating Lease Maturities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Undiscounted Cash Flows | |
2020 (remainder) | $ 1,451 |
2021 | 5,839 |
2022 | 5,433 |
2023 | 4,860 |
2024 | 4,539 |
2025 | 4,227 |
Thereafter | 31,700 |
Total | 58,049 |
Lease Liability Expense | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Remainder Of The Year | 437 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Two | 1,638 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Three | 1,487 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Four | 1,348 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Five | 1,222 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due Year Six | 1,096 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount, Due After Year Six | 5,466 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 12,694 |
Lease Liability Reduction | |
Lessee, Operating Lease, Lease Liability Reduction, Due Remainder Of The Year | 1,014 |
Lessee, Operating Lease, Lease Liability Reduction, Year Two | 4,201 |
Lessee, Operating Lease, Lease Liability Reduction, Year Three | 3,946 |
Lessee, Operating Lease, Lease Liability Reduction, Year Four | 3,512 |
Lessee, Operating Lease, Lease Liability Reduction, Year Five | 3,317 |
Lessee, Operating Lease, Lease Liability Reduction, Year Six | 3,131 |
Lessee, Operating Lease, Lease Liability Reduction, After Year Six | 26,234 |
Lessee, Operating Lease, Lease Liability Reduction | $ 45,355 |
LEASES - Rental Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Leases [Abstract] | ||||
Total rental income recognized | $ 492 | $ 522 | $ 1,559 | $ 1,576 |
LEASES - Lessor, Operating Lease Maturities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2020 (remainder) | $ 530 |
2021 | 2,133 |
2022 | 1,790 |
2023 | 480 |
2024 | 84 |
2025 | 72 |
Thereafter | 190 |
Total | $ 5,279 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Before Tax | ||||||||
Other comprehensive income (loss), before tax | $ (2,744) | $ 6,310 | $ 20,664 | $ 38,499 | ||||
Tax Effect | ||||||||
Other comprehensive income, tax | (734) | 1,641 | 5,532 | 10,179 | ||||
Net of Tax | ||||||||
Total other comprehensive income (loss), net of tax | (2,010) | $ 6,479 | $ 10,663 | 4,669 | $ 12,413 | $ 11,238 | 15,132 | 28,320 |
Net unrealized gains on investment securities | ||||||||
Before Tax | ||||||||
Other comprehensive income (loss) before reclassification, before tax | (3,434) | 6,027 | 18,994 | 37,671 | ||||
Reclassification from AOCI, before tax | 352 | (36) | 352 | (36) | ||||
Other comprehensive income (loss), before tax | (3,082) | 5,991 | 19,346 | 37,635 | ||||
Tax Effect | ||||||||
Other comprehensive income (loss) before reclassifications, tax | (919) | 1,615 | 5,087 | 10,098 | ||||
Reclassification from AOCI, tax | 94 | (10) | 94 | (10) | ||||
Other comprehensive income, tax | (825) | 1,605 | 5,181 | 10,088 | ||||
Net of Tax | ||||||||
Other comprehensive income (loss), before reclassifications, net of tax | (2,515) | 4,412 | 13,907 | 27,573 | ||||
Reclassification from AOCI, net of tax | 258 | (26) | 258 | (26) | ||||
Total other comprehensive income (loss), net of tax | (2,257) | 4,386 | 14,165 | 27,547 | ||||
Net actuarial losses arising during the period | ||||||||
Before Tax | ||||||||
Reclassification from AOCI, before tax | 427 | |||||||
Tax Effect | ||||||||
Reclassification from AOCI, tax | 114 | |||||||
Net of Tax | ||||||||
Reclassification from AOCI, net of tax | 313 | |||||||
Amortization of net actuarial loss | ||||||||
Before Tax | ||||||||
Reclassification from AOCI, before tax | 330 | 310 | 867 | 837 | ||||
Tax Effect | ||||||||
Reclassification from AOCI, tax | 89 | 31 | 230 | 84 | ||||
Net of Tax | ||||||||
Reclassification from AOCI, net of tax | 241 | 279 | 637 | 753 | ||||
Amortization of net transition obligation | ||||||||
Before Tax | ||||||||
Reclassification from AOCI, before tax | 5 | 5 | 14 | 14 | ||||
Tax Effect | ||||||||
Reclassification from AOCI, tax | 1 | 3 | 4 | 4 | ||||
Net of Tax | ||||||||
Reclassification from AOCI, net of tax | 4 | 2 | 10 | 10 | ||||
Amortization of prior service cost | ||||||||
Before Tax | ||||||||
Reclassification from AOCI, before tax | 3 | 4 | 10 | 13 | ||||
Tax Effect | ||||||||
Reclassification from AOCI, tax | 1 | 2 | 3 | 3 | ||||
Net of Tax | ||||||||
Reclassification from AOCI, net of tax | 2 | 2 | 7 | 10 | ||||
Defined benefit plans, net | ||||||||
Before Tax | ||||||||
Other comprehensive income (loss), before tax | (338) | (319) | (1,318) | (864) | ||||
Tax Effect | ||||||||
Other comprehensive income, tax | (91) | (36) | (351) | (91) | ||||
Net of Tax | ||||||||
Other comprehensive income (loss), before reclassifications, net of tax | 0 | 0 | 313 | 0 | ||||
Reclassification from AOCI, net of tax | 247 | 283 | 654 | 773 | ||||
Total other comprehensive income (loss), net of tax | $ 247 | $ 283 | $ 967 | $ 773 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Components of AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | $ 528,520 | $ 528,520 | ||||||
Total other comprehensive income (loss), net of tax | $ (2,010) | $ 6,479 | 10,663 | $ 4,669 | $ 12,413 | $ 11,238 | 15,132 | $ 28,320 |
Balance at end of period | 543,903 | 543,903 | ||||||
Investment Securities | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | 31,247 | 14,825 | 10,418 | (9,643) | 14,825 | (9,643) | ||
Other comprehensive income before reclassifications | (2,515) | 4,412 | 13,907 | 27,573 | ||||
Reclassification adjustments from AOCI | 258 | (26) | 258 | (26) | ||||
Total other comprehensive income (loss), net of tax | (2,257) | 4,386 | 14,165 | 27,547 | ||||
Balance at end of period | 28,990 | 31,247 | 14,804 | 10,418 | 28,990 | 14,804 | ||
Investment Securities | Impact of the adoption of new accounting standards | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | (3,100) | (3,100) | ||||||
Investment Securities | Adjusted balance at beginning of period | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | (12,743) | (12,743) | ||||||
Defined Benefit Plans | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | (5,696) | (6,416) | (5,960) | (6,450) | (6,416) | (6,450) | ||
Other comprehensive income before reclassifications | 0 | 0 | 313 | 0 | ||||
Reclassification adjustments from AOCI | 247 | 283 | 654 | 773 | ||||
Total other comprehensive income (loss), net of tax | 247 | 283 | 967 | 773 | ||||
Balance at end of period | (5,449) | (5,696) | (5,677) | (5,960) | (5,449) | (5,677) | ||
Defined Benefit Plans | Impact of the adoption of new accounting standards | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | 0 | 0 | ||||||
Defined Benefit Plans | Adjusted balance at beginning of period | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | (6,450) | (6,450) | ||||||
Accum. Other Comp. Income (Loss) | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | 25,551 | 8,409 | 4,458 | (16,093) | 8,409 | (16,093) | ||
Other comprehensive income before reclassifications | (2,515) | 4,412 | 14,220 | 27,573 | ||||
Reclassification adjustments from AOCI | 505 | 257 | 912 | 747 | ||||
Total other comprehensive income (loss), net of tax | (2,010) | 6,479 | $ 10,663 | 4,669 | 12,413 | 11,238 | 15,132 | 28,320 |
Balance at end of period | $ 23,541 | $ 25,551 | $ 9,127 | $ 4,458 | $ 23,541 | 9,127 | ||
Accum. Other Comp. Income (Loss) | Impact of the adoption of new accounting standards | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | (3,100) | (3,100) | ||||||
Accum. Other Comp. Income (Loss) | Adjusted balance at beginning of period | ||||||||
Changes in each component of AOCI, net of tax | ||||||||
Balance at beginning of period | $ (19,193) | $ (19,193) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified out of AOCI) (LOSS) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Investment securities gains (losses) | $ (352) | $ 36 | $ (352) | $ 36 | ||||
Income tax benefit (expense) | (2,200) | (4,895) | (7,988) | (14,440) | ||||
Net income | 6,859 | $ 9,917 | $ 8,326 | 14,554 | $ 13,534 | $ 16,037 | 25,102 | 44,125 |
Amount Reclassified from AOCI | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Net income | (505) | (257) | (912) | (747) | ||||
Investment Securities | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Reclassification from AOCI, net of tax | (258) | 26 | (258) | 26 | ||||
Investment Securities | Amount Reclassified from AOCI | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Investment securities gains (losses) | (352) | 36 | (352) | 36 | ||||
Income tax benefit (expense) | 94 | (10) | 94 | (10) | ||||
Net income | (258) | 26 | (258) | 26 | ||||
Defined Benefit Plans | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Reclassification from AOCI, net of tax | (247) | (283) | (654) | (773) | ||||
Defined Benefit Plans | Amount Reclassified from AOCI | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Amortization of defined benefit plan items, before tax | (338) | (319) | (891) | (864) | ||||
Amortization of defined benefit plan items, tax | 91 | 36 | 237 | 91 | ||||
Reclassification from AOCI, net of tax | (247) | (283) | (654) | (773) | ||||
Amortization of net actuarial loss | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Amortization of defined benefit plan items, before tax | (330) | (310) | (867) | (837) | ||||
Amortization of defined benefit plan items, tax | 89 | 31 | 230 | 84 | ||||
Reclassification from AOCI, net of tax | (241) | (279) | (637) | (753) | ||||
Amortization of net actuarial loss | Amount Reclassified from AOCI | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Amortization of defined benefit plan items, before tax | (330) | (310) | (867) | (837) | ||||
Amortization of net transition obligation | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Amortization of defined benefit plan items, before tax | (5) | (5) | (14) | (14) | ||||
Amortization of defined benefit plan items, tax | 1 | 3 | 4 | 4 | ||||
Reclassification from AOCI, net of tax | (4) | (2) | (10) | (10) | ||||
Amortization of net transition obligation | Amount Reclassified from AOCI | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Amortization of defined benefit plan items, before tax | (5) | (5) | (14) | (14) | ||||
Amortization of prior service cost | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Amortization of defined benefit plan items, before tax | (3) | (4) | (10) | (13) | ||||
Amortization of defined benefit plan items, tax | 1 | 2 | 3 | 3 | ||||
Reclassification from AOCI, net of tax | (2) | (2) | (7) | (10) | ||||
Amortization of prior service cost | Amount Reclassified from AOCI | ||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||||||
Amortization of defined benefit plan items, before tax | $ (3) | $ (4) | $ (10) | $ (13) |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
SHARE-BASED COMPENSATION | ||||||||
Net income | $ 6,859 | $ 9,917 | $ 8,326 | $ 14,554 | $ 13,534 | $ 16,037 | $ 25,102 | $ 44,125 |
Weighted average shares outstanding - basic | 28,060,020 | 28,424,898 | 28,075,684 | 28,575,369 | ||||
Weighted average shares outstanding - diluted | 28,111,664 | 28,602,338 | 28,172,153 | 28,762,057 | ||||
Basic earnings per common share (in dollars per share) | $ 0.24 | $ 0.51 | $ 0.89 | $ 1.54 | ||||
Diluted earnings per common share (in dollars per share) | $ 0.24 | $ 0.51 | $ 0.89 | $ 1.53 | ||||
Antidilutive securities excluded from the dilutive share calculation (in shares) | 0 | 0 | 0 | 0 | ||||
Stock Option | ||||||||
SHARE-BASED COMPENSATION | ||||||||
Dilutive effect of share-based compensation arrangements | 51,644 | 177,440 | 96,469 | 186,688 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Schedule of Carrying Amount and Estimated Fair Value of Financial Instruments) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Fair Value Disclosures [Abstract] | |||
Loans, weighted average discount rate, percent | 4.78% | 4.78% | |
Time deposits, weighted average discount rate, percent | 0.41% | 0.41% | |
Long-term debt, weighted average interest rate | 2.83% | 2.83% | |
Financial assets | |||
Cash and due from banks | $ 89,665,000 | $ 89,665,000 | $ 78,418,000 |
Interest-bearing deposits in other banks | 5,489,000 | 5,489,000 | 24,554,000 |
Loans held for sale | 23,962,000 | 23,962,000 | 9,083,000 |
Accrued interest receivable | 21,478,000 | 21,478,000 | 16,500,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,762,476,000 | 1,762,476,000 | 1,450,532,000 |
Time deposits | 921,226,000 | 921,226,000 | 1,026,453,000 |
Transfers of financial assets (liability) into Level 3 | 1 | 1 | |
Transfers of financial assets (liability) out of Level 3 | 0 | 0 | |
Interest rate lock commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 2,927,000 | 2,927,000 | 625,000 |
Forward sale commitments | |||
Deposits: | |||
Derivatives, Notional Amount | 19,341,000 | 19,341,000 | 8,968,000 |
Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments, Notional Amount | 1,195,510,000 | 1,195,510,000 | 1,089,135,000 |
Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments, Notional Amount | 10,842,000 | 10,842,000 | 10,526,000 |
Risk participation agreement | |||
Deposits: | |||
Derivatives, Notional Amount | 28,800,000 | 28,800,000 | |
Carrying Amount | |||
Financial assets | |||
Cash and due from banks | 89,665,000 | 89,665,000 | 78,418,000 |
Interest-bearing deposits in other banks | 5,489,000 | 5,489,000 | 24,554,000 |
Investment securities | 1,167,523,000 | 1,167,523,000 | 1,128,110,000 |
Loans held for sale | 23,962,000 | 23,962,000 | 9,083,000 |
Net loans and leases | 4,950,084,000 | 4,950,084,000 | 4,401,569,000 |
Accrued interest receivable | 21,478,000 | 21,478,000 | 16,500,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,762,476,000 | 1,762,476,000 | 1,450,532,000 |
Interest-bearing demand and savings deposits | 2,995,227,000 | 2,995,227,000 | 2,643,038,000 |
Time deposits | 921,226,000 | 921,226,000 | 1,026,453,000 |
Short-term debt | 206,000,000 | 206,000,000 | 150,000,000 |
Long-term debt | 101,547,000 | 101,547,000 | 101,547,000 |
Interest Payable | 1,608,000 | 1,608,000 | 4,288,000 |
Carrying Amount | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 111,000 | 111,000 | 8,000 |
Carrying Amount | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,368,000 | 1,368,000 | 1,230,000 |
Carrying Amount | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 163,000 | 163,000 | 158,000 |
Carrying Amount | Risk participation agreement | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (54,000) | (54,000) | |
Estimated Fair Value | |||
Financial assets | |||
Cash and due from banks | 89,665,000 | 89,665,000 | 78,418,000 |
Interest-bearing deposits in other banks | 5,489,000 | 5,489,000 | 24,554,000 |
Investment securities | 1,167,523,000 | 1,167,523,000 | 1,128,110,000 |
Loans held for sale | 23,962,000 | 23,962,000 | 9,083,000 |
Net loans and leases | 4,844,662,000 | 4,844,662,000 | 4,392,477,000 |
Accrued interest receivable | 21,478,000 | 21,478,000 | 16,500,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,762,476,000 | 1,762,476,000 | 1,450,532,000 |
Interest-bearing demand and savings deposits | 2,995,227,000 | 2,995,227,000 | 2,643,038,000 |
Time deposits | 922,223,000 | 922,223,000 | 1,023,362,000 |
Short-term debt | 206,000,000 | 206,000,000 | 150,000,000 |
Long-term debt | 90,690,000 | 90,690,000 | 97,827,000 |
Interest Payable | 1,608,000 | 1,608,000 | 4,288,000 |
Estimated Fair Value | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 111,000 | 111,000 | 8,000 |
Estimated Fair Value | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,368,000 | 1,368,000 | 1,230,000 |
Estimated Fair Value | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 163,000 | 163,000 | 158,000 |
Estimated Fair Value | Risk participation agreement | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (54,000) | (54,000) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets | |||
Cash and due from banks | 89,665,000 | 89,665,000 | 78,418,000 |
Interest-bearing deposits in other banks | 5,489,000 | 5,489,000 | 24,554,000 |
Investment securities | 1,204,000 | 1,204,000 | 1,127,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 0 | 0 | 0 |
Accrued interest receivable | 21,478,000 | 21,478,000 | 16,500,000 |
Deposits: | |||
Noninterest-bearing deposits | 1,762,476,000 | 1,762,476,000 | 1,450,532,000 |
Interest-bearing demand and savings deposits | 2,995,227,000 | 2,995,227,000 | 2,643,038,000 |
Time deposits | 0 | 0 | 0 |
Short-term debt | 0 | 0 | 0 |
Long-term debt | 0 | 0 | 0 |
Interest Payable | 1,608,000 | 1,608,000 | 4,288,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Risk participation agreement | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 | 0 |
Investment securities | 1,153,791,000 | 1,153,791,000 | 1,115,728,000 |
Loans held for sale | 23,962,000 | 23,962,000 | 9,083,000 |
Net loans and leases | 0 | 0 | 0 |
Accrued interest receivable | 0 | 0 | 0 |
Deposits: | |||
Noninterest-bearing deposits | 0 | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 | 0 |
Time deposits | 0 | 0 | 0 |
Short-term debt | 206,000,000 | 206,000,000 | 150,000,000 |
Long-term debt | 0 | 0 | 97,827,000 |
Interest Payable | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 111,000 | 111,000 | 8,000 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 1,368,000 | 1,368,000 | 1,230,000 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 163,000 | 163,000 | 158,000 |
Significant Other Observable Inputs (Level 2) | Risk participation agreement | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Financial assets | |||
Cash and due from banks | 0 | 0 | 0 |
Interest-bearing deposits in other banks | 0 | 0 | 0 |
Investment securities | 12,528,000 | 12,528,000 | 11,255,000 |
Loans held for sale | 0 | 0 | 0 |
Net loans and leases | 4,844,662,000 | 4,844,662,000 | 4,392,477,000 |
Accrued interest receivable | 0 | 0 | 0 |
Deposits: | |||
Noninterest-bearing deposits | 0 | 0 | 0 |
Interest-bearing demand and savings deposits | 0 | 0 | 0 |
Time deposits | 922,223,000 | 922,223,000 | 1,023,362,000 |
Short-term debt | 0 | 0 | 0 |
Long-term debt | 90,690,000 | 90,690,000 | 0 |
Interest Payable | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate lock commitments | |||
Deposits: | |||
Derivative liabilities | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commitments to extend credit | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Standby letters of credit and financial guarantees written | |||
Deposits: | |||
Off-balance sheet financial instruments | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Risk participation agreement | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (54,000) | (54,000) | |
Recurring basis | Carrying Amount | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (73,000) | (73,000) | (28,000) |
Recurring basis | Estimated Fair Value | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (73,000) | (73,000) | (28,000) |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | 0 | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | (73,000) | (73,000) | (28,000) |
Recurring basis | Significant Unobservable Inputs (Level 3) | Forward sale commitments | |||
Deposits: | |||
Assets, Fair Value Disclosure, Recurring (Deprecated 2018-01-31) | $ 0 | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | $ 1,166,319 | $ 1,126,983 |
Equity securities, at fair value | 1,204 | 1,127 |
States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 168,589 | 122,018 |
Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 50,558 | 30,529 |
U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 34,944 | 40,381 |
Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 763,326 | 677,822 |
Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 73,786 | 81,225 |
Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 28,676 | 37,191 |
Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 46,440 | 137,817 |
Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,204 | 1,127 |
Recurring basis | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,166,319 | 1,126,983 |
Total | 1,167,507 | 1,128,090 |
Recurring basis | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | (16) | (20) |
Recurring basis | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 168,589 | 122,018 |
Recurring basis | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 50,558 | 30,529 |
Recurring basis | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 34,944 | 40,381 |
Recurring basis | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 763,326 | 677,822 |
Recurring basis | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 73,786 | 81,225 |
Recurring basis | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 28,676 | 37,191 |
Recurring basis | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 46,440 | 137,817 |
Recurring basis | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,204 | 1,127 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Total | 1,204 | 1,127 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 1,204 | 1,127 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 1,153,791 | 1,115,728 |
Total | 1,153,829 | 1,115,708 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | 38 | (20) |
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 157,055 | 110,763 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 50,558 | 30,529 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 34,944 | 40,381 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 763,326 | 677,822 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 73,786 | 81,225 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 27,682 | 37,191 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 46,440 | 137,817 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 12,528 | 11,255 |
Total | 12,474 | 11,255 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Derivative - Interest Rate Contracts | ||
Assets and liabilities measured at fair value | ||
Derivatives: Interest rate lock and forward sale commitments | (54) | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 11,534 | 11,255 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | U.S. Treasury obligations and direct obligations of U.S Government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage Backed Securities Residential U S Government Sponsored Entities [Member] | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - U.S. Government agencies and sponsored entities | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Residential - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 994 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Commercial - Non-government agencies | ||
Assets and liabilities measured at fair value | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets and liabilities measured at fair value | ||
Equity securities, at fair value | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Change in Level 3 Assets and Liabilities) (Details 3) - Mortgage revenue bonds $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2020
USD ($)
security
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019 |
|
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | $ 11,255 | $ 11,169 | |
Principal payments received | (319) | (285) | |
Unrealized net gain included in other comprehensive income | 598 | 618 | |
Purchases | 994 | 0 | |
Aggregate fair value / Balance at the end of the period | 12,528 | 11,502 | |
States and political subdivisions | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | 11,255 | 11,169 | |
Principal payments received | (319) | (285) | |
Unrealized net gain included in other comprehensive income | 598 | 618 | |
Purchases | 0 | 0 | |
Aggregate fair value / Balance at the end of the period | $ 11,534 | 11,502 | |
Additional disclosures | |||
Number of investment securities held | security | 4 | ||
Residential - Non-government agencies | |||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||
Aggregate fair value / Balance at the beginning of the period | $ 0 | 0 | |
Principal payments received | 0 | 0 | |
Unrealized net gain included in other comprehensive income | 0 | 0 | |
Purchases | 994 | 0 | |
Aggregate fair value / Balance at the end of the period | $ 994 | $ 0 | |
Additional disclosures | |||
Number of investment securities held | security | 2 | ||
Measurement Input, Discount Rate | Weighted average | |||
Additional disclosures | |||
Forecasted constant prepayment rate assumption (1) | 0.0279 | 0.0394 | 0.0408 |
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 128 | $ 164 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | 128 | 164 |
Significant Unobservable Inputs (Level 3) | Nonrecurring basis | ||
Assets measured at fair value on a nonrecurring basis | ||
Other real estate owned | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions |
Oct. 20, 2020 |
Mar. 27, 2020 |
---|---|---|
Subsequent Event [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Subordinated notes | $ 55.0 | |
Subsequent Event | Notes | ||
Subsequent Event [Line Items] | ||
Debt instrument, term | 10 years | |
Debt Instrument, Interest Rate, Stated Percentage First Five Years | 4.75% | |
Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Notes | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | three-month Secured Overnight Financing Rate | |
Debt Instrument, Basis Spread on Variable Rate | (456.00%) |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2017-12 [Member] |
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