QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of Incorporation) |
(I.R.S. Employer Identification No.) |
Title of class |
Trading Symbol(s) |
Name of exchange on which registered |
||
Accelerated filer ☐ |
Non-accelerated filer ☐ |
Smaller reporting company |
Emerging growth company |
PART I | FINANCIAL INFORMATION |
Item 1 |
Financial Statements |
|
3 |
||
4 |
||
5 |
||
6 |
||
7 |
||
9 |
||
Item 2 |
40 |
|
Item 3 |
56 |
|
Item 4 |
56 |
|
PART II |
OTHER INFORMATION |
|
Item 1 |
57 |
|
Item 1A |
57 |
|
Item 2 |
58 |
|
Item 3 |
58 |
|
Item 4 |
58 |
|
Item 5 |
58 |
|
Item 6 |
59 |
|
60 |
September 30, |
December 31, |
|||||||
2020 |
2019 |
|||||||
(In thousands, except share and per share data) |
||||||||
Assets |
||||||||
Cash and due from banks |
$ |
$ |
||||||
Short-term interest-bearing accounts |
||||||||
Equity securities, at fair value |
||||||||
Securities available for sale, at fair value |
||||||||
Securities held to maturity (fair value $ |
||||||||
Federal Reserve and Federal Home Loan Bank stock |
||||||||
Loans held for sale |
||||||||
Loans |
||||||||
Less allowance for loan losses (1) |
||||||||
Net loans |
$ |
$ |
||||||
Premises and equipment, net |
||||||||
Goodwill |
||||||||
Intangible assets, net |
||||||||
Bank owned life insurance |
||||||||
Other assets |
||||||||
Total assets |
$ |
$ |
||||||
Liabilities |
||||||||
Demand (noninterest bearing) |
$ |
$ |
||||||
Savings, NOW and money market |
||||||||
Time |
||||||||
Total deposits |
$ |
$ |
||||||
Short-term borrowings |
||||||||
Long-term debt |
||||||||
Subordinated debt, net |
||||||||
Junior subordinated debt |
||||||||
Other liabilities |
||||||||
Total liabilities |
$ |
$ |
||||||
Stockholders’ equity |
||||||||
Preferred stock, $ |
$ |
$ |
||||||
Common stock, $ |
||||||||
Additional paid-in-capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive income (loss) |
( |
) |
||||||
Common stock in treasury, at cost, |
( |
) |
( |
) |
||||
Total stockholders’ equity |
$ |
$ |
||||||
Total liabilities and stockholders’ equity |
$ |
$ |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
(In thousands, except per share data) |
||||||||||||||||
Interest, fee and dividend income |
||||||||||||||||
Interest and fees on loans |
$ |
$ |
$ |
$ |
||||||||||||
Securities available for sale |
||||||||||||||||
Securities held to maturity |
||||||||||||||||
Other |
||||||||||||||||
Total interest, fee and dividend income |
$ |
$ |
$ |
$ |
||||||||||||
Interest expense |
||||||||||||||||
Deposits |
$ |
$ |
$ |
$ |
||||||||||||
Short-term borrowings |
||||||||||||||||
Long-term debt |
||||||||||||||||
Subordinated debt |
||||||||||||||||
Junior subordinated debt |
||||||||||||||||
Total interest expense |
$ |
$ |
$ |
$ |
||||||||||||
Net interest income |
$ |
$ |
$ |
$ |
||||||||||||
Provision for loan losses (1) |
||||||||||||||||
Net interest income after provision for loan losses |
$ |
$ |
$ |
$ |
||||||||||||
Noninterest income |
||||||||||||||||
Service charges on deposit accounts |
$ |
$ |
$ |
$ |
||||||||||||
ATM and debit card fees |
||||||||||||||||
Retirement plan administration fees |
||||||||||||||||
Wealth management |
||||||||||||||||
Insurance |
||||||||||||||||
Bank owned life insurance income |
||||||||||||||||
Net securities gains (losses) |
( |
) |
||||||||||||||
Other |
||||||||||||||||
Total noninterest income |
$ |
$ |
$ |
$ |
||||||||||||
Noninterest expense |
||||||||||||||||
Salaries and employee benefits |
$ |
$ |
$ |
$ |
||||||||||||
Occupancy |
||||||||||||||||
Data processing and communications |
||||||||||||||||
Professional fees and outside services |
||||||||||||||||
Equipment |
||||||||||||||||
Office supplies and postage |
||||||||||||||||
FDIC expense (credit) |
( |
) |
||||||||||||||
Advertising |
||||||||||||||||
Amortization of intangible assets |
||||||||||||||||
Loan collection and other real estate owned, net |
||||||||||||||||
Other |
||||||||||||||||
Total noninterest expense |
$ |
$ |
$ |
$ |
||||||||||||
Income before income tax expense |
$ |
$ |
$ |
$ |
||||||||||||
Income tax expense |
||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Earnings per share |
||||||||||||||||
Basic |
$ |
$ |
$ |
$ |
||||||||||||
Diluted |
$ |
$ |
$ |
$ |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
(In thousands) |
||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
Securities available for sale: |
||||||||||||||||
Unrealized net holding (losses) gains arising during the period, gross |
$ |
( |
) |
$ |
$ |
$ |
||||||||||
Tax effect |
( |
) |
( |
) |
( |
) |
||||||||||
Unrealized net holding (losses) gains arising during the period, net |
$ |
( |
) |
$ |
$ |
$ |
||||||||||
Reclassification adjustment for net (gains) losses in net income, gross |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||
Tax effect |
( |
) |
||||||||||||||
Reclassification adjustment for net (gains) losses in net income, net |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross |
$ |
$ |
$ |
$ |
||||||||||||
Tax effect |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net |
$ |
$ |
$ |
$ |
||||||||||||
Total securities available for sale, net |
$ |
( |
) |
$ |
$ |
$ |
||||||||||
Cash flow hedges: |
||||||||||||||||
Unrealized gains (losses) on derivatives (cash flow hedges), gross |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
||||||||
Tax effect |
( |
) |
||||||||||||||
Unrealized gains (losses) on derivatives (cash flow hedges), net |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
||||||||
Reclassification of net unrealized losses (gains) on cash flow hedges to interest (income), gross |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||
Tax effect |
( |
) |
( |
) |
||||||||||||
Reclassification of net unrealized losses (gains) on cash flow hedges to interest (income), net |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||
Total cash flow hedges, net |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||||
Pension and other benefits: |
||||||||||||||||
Amortization of prior service cost and actuarial losses, gross |
$ |
$ |
$ |
$ |
||||||||||||
Tax effect |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Amortization of prior service cost and actuarial losses, net |
$ |
$ |
$ |
$ |
||||||||||||
Total pension and other benefits, net |
$ |
$ |
$ |
$ |
||||||||||||
Total other comprehensive income |
$ |
( |
) |
$ |
$ |
$ |
||||||||||
Comprehensive income |
$ |
$ |
$ |
$ |
Common Stock |
Additional Paid-in- Capital |
Retained Earnings |
Accumulated Other Comprehensive (Loss) Income |
Common Stock in Treasury |
Total |
|||||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||||||||||
Balance at June 30, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Net income |
||||||||||||||||||||||||
Cash dividends - $ |
( |
) |
( |
) |
||||||||||||||||||||
Net issuance of |
( |
) |
( |
) |
||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||
Other comprehensive (loss) |
( |
) |
( |
) |
||||||||||||||||||||
Balance at September 30, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Balance at June 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||
Net income |
||||||||||||||||||||||||
Cash dividends - $ |
( |
) |
( |
) |
||||||||||||||||||||
Net issuance of |
( |
) |
||||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||
Balance at September 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
Common Stock |
Additional Paid-in- Capital |
Retained Earnings |
Accumulated Other Comprehensive (Loss) Income |
Common Stock in Treasury |
Total |
|||||||||||||||||||
(In thousands, except share and per share data) |
||||||||||||||||||||||||
Balance at December 31, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||
Net income |
||||||||||||||||||||||||
Cumulative effect adjustment for ASU 2016-13 implementation |
( |
) |
( |
) |
||||||||||||||||||||
Cash dividends - $ |
( |
) |
( |
) |
||||||||||||||||||||
Purchase of |
( |
) |
( |
) |
||||||||||||||||||||
Net issuance of |
( |
) |
( |
) |
||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||
Balance at September 30, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
Balance at December 31, 2018 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
||||||||||||||
Net income |
||||||||||||||||||||||||
Cash dividends - $ |
( |
) |
( |
) |
||||||||||||||||||||
Net issuance of |
( |
) |
( |
) |
||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||
Other comprehensive income |
||||||||||||||||||||||||
Balance at September 30, 2019 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
Nine Months Ended September 30, |
||||||||
2020 |
2019 |
|||||||
(In thousands) |
||||||||
Operating activities |
||||||||
Net income |
$ |
$ |
||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Provision for loan losses |
||||||||
Depreciation and amortization of premises and equipment |
||||||||
Net amortization on securities |
||||||||
Amortization of intangible assets |
||||||||
Amortization of operating lease right-of-use assets |
||||||||
Excess tax benefit on stock-based compensation |
( |
) |
( |
) |
||||
Stock-based compensation expense |
||||||||
Bank owned life insurance income |
( |
) |
( |
) |
||||
Amortization of subordinated debt issuance costs |
||||||||
Proceeds from sale of loans held for sale |
||||||||
Originations of loans held for sale |
( |
) |
( |
) |
||||
Net gains on sale of loans held for sale |
( |
) |
( |
) |
||||
Net security losses (gains) |
( |
) |
||||||
Net gains on sale of other real estate owned |
( |
) |
( |
) |
||||
Net change in other assets and other liabilities |
( |
) |
( |
) |
||||
Net cash provided by operating activities |
$ |
$ |
||||||
Investing activities |
||||||||
Net cash used in acquisitions |
$ |
( |
) |
$ |
||||
Securities available for sale: |
||||||||
Proceeds from maturities, calls and principal paydowns |
||||||||
Proceeds from sales |
||||||||
Purchases |
( |
) |
( |
) |
||||
Securities held to maturity: |
||||||||
Proceeds from maturities, calls and principal paydowns |
||||||||
Proceeds from sales |
||||||||
Purchases |
( |
) |
( |
) |
||||
Equity securities: |
||||||||
Proceeds from sales |
||||||||
Purchases |
( |
) |
||||||
Other: |
||||||||
Net increase in loans |
( |
) |
( |
) |
||||
Proceeds from Federal Home Loan Bank stock redemption |
||||||||
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock |
( |
) |
( |
) |
||||
Proceeds from settlement of bank owned life insurance |
||||||||
Purchases of premises and equipment, net |
( |
) |
( |
) |
||||
Proceeds from sales of other real estate owned |
||||||||
Net cash (used in) provided by investing activities |
$ |
( |
) |
$ |
||||
Financing activities |
||||||||
Net increase in deposits |
$ |
$ |
||||||
Net decrease in short-term borrowings |
( |
) |
( |
) |
||||
Proceeds from issuance of subordinated debt |
||||||||
Payment of subordinated debt issuance costs |
( |
) |
||||||
Proceeds from issuance of long-term debt |
||||||||
Repayments of long-term debt |
( |
) |
( |
) |
||||
Proceeds from the issuance of shares to employee and other stock plans |
||||||||
Cash paid by employer for tax-withholdings on stock issuance |
( |
) |
( |
) |
||||
Purchase of treasury stock |
( |
) |
||||||
Cash dividends |
( |
) |
( |
) |
||||
Net cash provided by (used in) financing activities |
$ |
$ |
( |
) |
||||
Net increase in cash and cash equivalents |
$ |
$ |
||||||
Cash and cash equivalents at beginning of period |
||||||||
Cash and cash equivalents at end of period |
$ |
$ |
Nine Months Ended September 30, |
||||||||
2020 |
2019 |
|||||||
Supplemental disclosure of cash flow information |
||||||||
Cash paid during the period for: |
||||||||
Interest expense |
$ |
$ |
||||||
Income taxes paid, net of refund |
||||||||
Noncash investing activities: |
||||||||
Loans transferred to other real estate owned |
$ |
$ |
||||||
Acquisitions: |
||||||||
Fair value of assets acquired |
$ |
$ |
1. | Description of Business |
2. | Summary of Significant Accounting Policies |
Portfolio Segment |
Class |
Commercial Loans |
Commercial & Industrial Paycheck Protection Program Commercial Real Estate |
Consumer Loans |
Auto Other Consumer |
Residential Loans |
3. | Recent Accounting Pronouncements |
4. | Securities |
(In thousands) |
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Estimated Fair Value |
||||||||||||
As of September 30, 2020 |
||||||||||||||||
Federal agency |
$ |
$ |
$ |
$ |
||||||||||||
State & municipal |
||||||||||||||||
Mortgage-backed: |
||||||||||||||||
Government-sponsored enterprises |
||||||||||||||||
U.S. government agency securities |
||||||||||||||||
Collateralized mortgage obligations: |
||||||||||||||||
Government-sponsored enterprises |
||||||||||||||||
U.S. government agency securities |
||||||||||||||||
Corporate |
||||||||||||||||
Total AFS securities |
$ |
$ |
$ |
$ |
||||||||||||
As of December 31, 2019 |
||||||||||||||||
Federal agency |
$ |
$ |
$ |
$ |
||||||||||||
State & municipal |
||||||||||||||||
Mortgage-backed: |
||||||||||||||||
Government-sponsored enterprises |
||||||||||||||||
U.S. government agency securities |
||||||||||||||||
Collateralized mortgage obligations: |
||||||||||||||||
Government-sponsored enterprises |
||||||||||||||||
U.S. government agency securities |
||||||||||||||||
Total AFS securities |
$ |
$ |
$ |
$ |
Three Months Ended September 30, |
||||||||
(In thousands) |
2020 |
2019 |
||||||
Gross realized gains |
$ |
$ |
||||||
Gross realized (losses) |
||||||||
Net AFS realized gains (losses) |
$ |
$ |
Nine Months Ended September 30, |
||||||||
(In thousands) |
2020 |
2019 |
||||||
Gross realized gains |
$ |
$ |
||||||
Gross realized (losses) |
( |
) |
||||||
Net AFS realized gains (losses) |
$ |
$ |
( |
) |
(In thousands) |
Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Estimated Fair Value |
||||||||||||
As of September 30, 2020 |
||||||||||||||||
Federal agency |
$ |
$ |
$ |
$ |
||||||||||||
Mortgage-backed: |
||||||||||||||||
Government-sponsored enterprises |
||||||||||||||||
U.S. government agency securities |
||||||||||||||||
Collateralized mortgage obligations: |
||||||||||||||||
Government-sponsored enterprises |
||||||||||||||||
U.S. government agency securities |
||||||||||||||||
State & municipal |
||||||||||||||||
Total HTM securities |
$ |
$ |
$ |
$ |
||||||||||||
As of December 31, 2019 |
||||||||||||||||
Mortgage-backed: |
||||||||||||||||
Government-sponsored enterprises |
$ |
$ |
$ |
$ |
||||||||||||
U.S. government agency securities |
||||||||||||||||
Collateralized mortgage obligations: |
||||||||||||||||
Government-sponsored enterprises |
||||||||||||||||
U.S. government agency securities |
||||||||||||||||
State & municipal |
||||||||||||||||
Total HTM securities |
$ |
$ |
$ |
$ |
Three Months Ended September 30, |
||||||||
(In thousands) |
2020 |
2019 |
||||||
Net gains and (losses) recognized on equity securities |
$ |
$ |
||||||
Less: Net gains and (losses) recognized during the period on equity securities sold during the period |
||||||||
Unrealized gains and (losses) recognized on equity securities still held |
$ |
$ |
Nine Months Ended September 30, |
||||||||
(In thousands) |
2020 |
2019 |
||||||
Net gains and (losses) recognized on equity securities |
$ |
( |
) |
$ |
||||
Less: Net gains and (losses) recognized during the period on equity securities sold during the period |
||||||||
Unrealized gains and (losses) recognized on equity securities still held |
$ |
( |
) |
$ |
(In thousands) |
Amortized Cost |
Estimated Fair Value |
||||||
AFS debt securities: |
||||||||
Within one year |
$ |
$ |
||||||
From one to five years |
||||||||
From five to ten years |
||||||||
After ten years |
||||||||
Total AFS debt securities |
$ |
$ |
||||||
HTM debt securities: |
||||||||
Within one year |
$ |
$ |
||||||
From one to five years |
||||||||
From five to ten years |
||||||||
After ten years |
||||||||
Total HTM debt securities |
$ |
$ |
Less Than 12 Months |
12 Months or Longer |
Total |
||||||||||||||||||||||||||||||||||
(In thousands) |
Fair Value |
Unrealized Losses |
Number of Positions |
Fair Value |
Unrealized Losses |
Number of Positions |
Fair Value |
Unrealized Losses |
Number of Positions |
|||||||||||||||||||||||||||
As of September 30, 2020 |
||||||||||||||||||||||||||||||||||||
AFS securities: |
||||||||||||||||||||||||||||||||||||
Federal agency |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
( |
) |
||||||||||||||||||||||||||
State & municipal |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Mortgage-backed |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Collateralized mortgage obligations |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Corporate |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Total securities with unrealized losses |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||||||||||||||||||
HTM securities: |
||||||||||||||||||||||||||||||||||||
Federal agency |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
( |
) |
||||||||||||||||||||||||||
State & municipal |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Total securities with unrealized losses |
$ |
$ |
( |
) |
$ |
$ |
$ |
$ |
( |
) |
||||||||||||||||||||||||||
As of December 31, 2019 |
||||||||||||||||||||||||||||||||||||
AFS securities: |
||||||||||||||||||||||||||||||||||||
Federal agency |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||||||||||||||||||
State & municipal |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Mortgage-backed |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Collateralized mortgage obligations |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
Total securities with unrealized losses |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||||||||||||||||||
HTM securities: |
||||||||||||||||||||||||||||||||||||
Mortgage-backed |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||||||||||||||||||||
Collateralized mortgage obligations |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||||||
State & municipal |
( |
) |
( |
) |
||||||||||||||||||||||||||||||||
Total securities with unrealized losses |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
5. | Allowance for Credit Losses and Credit Quality of Loans |
(In thousands) |
Commercial Loans |
Consumer Loans |
Residential |
Total |
||||||||||||
Balance as of June 30, 2020 |
$ |
$ |
$ |
$ |
||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Recoveries |
||||||||||||||||
Provision |
||||||||||||||||
Ending Balance as of September 30, 2020 |
$ |
$ |
$ |
$ |
(In thousands) |
Commercial Loans |
Consumer Loans |
Residential |
Total |
||||||||||||
Balance as of January 1, 2020 (after adoption of ASC 326) |
$ |
$ |
$ |
$ |
||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Recoveries |
||||||||||||||||
Provision |
||||||||||||||||
Ending Balance as of September 30, 2020 |
$ |
$ |
$ |
$ |
(In thousands) |
31-60 Days Past Due Accruing |
61-90 Days Past Due Accruing |
Greater Than 90 Days Past Due Accruing |
Total Past Due Accruing |
Nonaccrual |
Current |
Recorded Total Loans |
|||||||||||||||||||||
As of September 30, 2020 |
||||||||||||||||||||||||||||
Commercial Loans: |
||||||||||||||||||||||||||||
C&I |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
CRE |
||||||||||||||||||||||||||||
PPP |
||||||||||||||||||||||||||||
Total Commercial Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||||||
Auto |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Other Consumer |
||||||||||||||||||||||||||||
Total Consumer Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Residential |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Total Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
(In thousands) |
2020 |
2019 |
2018 |
2017 |
2016 |
Prior |
Revolving Loans Amortized Cost Basis |
Revolving Loans Converted to Term |
Total |
|||||||||||||||||||||||||||
C&I |
||||||||||||||||||||||||||||||||||||
By Internally Assigned Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total C&I |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
CRE |
||||||||||||||||||||||||||||||||||||
By Internally Assigned Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Special Mention |
||||||||||||||||||||||||||||||||||||
Substandard |
||||||||||||||||||||||||||||||||||||
Doubtful |
||||||||||||||||||||||||||||||||||||
Total CRE |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
PPP |
||||||||||||||||||||||||||||||||||||
By Internally Assigned Grade: |
||||||||||||||||||||||||||||||||||||
Pass |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Total PPP |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Auto |
||||||||||||||||||||||||||||||||||||
By Payment Activity: |
||||||||||||||||||||||||||||||||||||
Performing |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Nonperforming |
||||||||||||||||||||||||||||||||||||
Total Auto |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Other Consumer |
||||||||||||||||||||||||||||||||||||
By Payment Activity: |
||||||||||||||||||||||||||||||||||||
Performing |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Nonperforming |
||||||||||||||||||||||||||||||||||||
Total Other Consumer |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Residential |
||||||||||||||||||||||||||||||||||||
By Payment Activity: |
||||||||||||||||||||||||||||||||||||
Performing |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Nonperforming |
||||||||||||||||||||||||||||||||||||
Total Residential |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||||||
Total Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
Three Months Ended September 30, 2020 |
Nine Months Ended September 30, 2020 |
|||||||||||||||||||||||
(Dollars in thousands) |
Number of Contracts |
Pre-Modification Outstanding Recorded Investment |
Post-Modification Outstanding Recorded Investment |
Number of Contracts |
Pre-Modification Outstanding Recorded Investment |
Post-Modification Outstanding Recorded Investment |
||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Auto |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Total Consumer Loans |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Residential |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Total Troubled Debt Restructurings |
$ |
$ |
$ |
$ |
Three Months Ended September 30, 2020 |
Nine Months Ended September 30, 2020 |
|||||||||||||||
(Dollars in thousands) |
Number of Contracts |
Recorded Investment |
Number of Contracts |
Recorded Investment |
||||||||||||
Commercial Loans: |
||||||||||||||||
C&I |
$ |
$ |
||||||||||||||
CRE |
||||||||||||||||
Total Commercial Loans |
$ |
$ |
||||||||||||||
Residential |
$ |
$ |
||||||||||||||
Total Troubled Debt Restructurings |
$ |
$ |
(In thousands) |
Commercial Loans |
Consumer Loans |
Residential Real Estate |
Total |
||||||||||||
Balance as of June 30, 2019 |
$ |
$ |
$ |
$ |
||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Recoveries |
||||||||||||||||
Provision |
||||||||||||||||
Ending Balance as of September 30, 2019 |
$ |
$ |
$ |
$ |
(In thousands) |
Commercial Loans |
Consumer Loans |
Residential Real Estate |
Total |
||||||||||||
Balance as of December 31, 2018 |
$ |
$ |
$ |
$ |
||||||||||||
Charge-offs |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Recoveries |
||||||||||||||||
Provision |
||||||||||||||||
Ending Balance as of September 30, 2019 |
$ |
$ |
$ |
$ |
(In thousands) |
Commercial Loans |
Consumer Loans |
Residential Real Estate |
Total |
||||||||||||
As of December 31, 2019 |
||||||||||||||||
Allowance for loan losses |
$ |
$ |
$ |
$ |
||||||||||||
Allowance for loans individually evaluated for impairment |
||||||||||||||||
Allowance for loans collectively evaluated for impairment |
$ |
$ |
$ |
$ |
||||||||||||
Ending balance of loans |
$ |
$ |
$ |
$ |
||||||||||||
Ending balance of originated loans individually evaluated for impairment |
||||||||||||||||
Ending balance of acquired loans collectively evaluated for impairment |
||||||||||||||||
Ending balance of originated loans collectively evaluated for impairment |
$ |
$ |
$ |
$ |
(In thousands) |
31-60 Days Past Due Accruing |
61-90 Days Past Due Accruing |
Greater Than 90 Days Past Due Accruing |
Total Past Due Accruing |
Nonaccrual |
Current |
Recorded Total Loans |
|||||||||||||||||||||
As of December 31, 2019 |
||||||||||||||||||||||||||||
Originated |
||||||||||||||||||||||||||||
Commercial Loans: |
||||||||||||||||||||||||||||
C&I |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
CRE |
||||||||||||||||||||||||||||
Business Banking |
||||||||||||||||||||||||||||
Total Commercial Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||||||
Indirect Auto |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Specialty Lending |
||||||||||||||||||||||||||||
Direct |
||||||||||||||||||||||||||||
Total Consumer Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Residential Real Estate |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Total Originated Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Acquired |
||||||||||||||||||||||||||||
Commercial Loans: |
||||||||||||||||||||||||||||
C&I |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
CRE |
||||||||||||||||||||||||||||
Business Banking |
||||||||||||||||||||||||||||
Total Commercial Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||||||
Direct |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Total Consumer Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Residential Real Estate |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Total Acquired Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||
Total Loans |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
December 31, 2019 |
||||||||||||
(In thousands) |
Recorded Investment Balance (Book) |
Unpaid Principal Balance (Legal) |
Related Allowance |
|||||||||
Originated |
||||||||||||
With no related allowance recorded: |
||||||||||||
Commercial Loans: |
||||||||||||
C&I |
$ |
$ |
$ |
|||||||||
CRE |
||||||||||||
Business Banking |
||||||||||||
Total Commercial Loans |
$ |
$ |
||||||||||
Consumer Loans: |
||||||||||||
Indirect Auto |
$ |
$ |
||||||||||
Direct |
||||||||||||
Specialty Lending |
||||||||||||
Total Consumer Loans |
$ |
$ |
||||||||||
Residential Real Estate |
$ |
$ |
||||||||||
Total |
$ |
$ |
||||||||||
Total Loans |
$ |
$ |
$ |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, 2019 |
September 30, 2019 |
|||||||||||||||
(In thousands) |
Average Recorded Investment |
Interest Income Recognized |
Average Recorded Investment |
Interest Income Recognized |
||||||||||||
Originated |
||||||||||||||||
Commercial Loans: |
||||||||||||||||
C&I |
$ |
$ |
$ |
$ |
||||||||||||
CRE |
||||||||||||||||
Business Banking |
||||||||||||||||
Total Commercial Loans |
$ |
$ |
$ |
$ |
||||||||||||
Consumer Loans: |
||||||||||||||||
Indirect Auto |
$ |
$ |
$ |
$ |
||||||||||||
Direct |
||||||||||||||||
Total Consumer Loans |
$ |
$ |
$ |
$ |
||||||||||||
Residential Real Estate |
$ |
$ |
$ |
$ |
||||||||||||
Total Originated |
$ |
$ |
$ |
$ |
||||||||||||
Total Loans |
$ |
$ |
$ |
$ |
(In thousands) |
As of December 31, 2019 |
|||||||||||
Originated |
||||||||||||
Commercial Credit Exposure By Internally Assigned Grade: |
C&I |
CRE |
Total |
|||||||||
Pass |
$ |
$ |
$ |
|||||||||
Special Mention |
||||||||||||
Substandard |
||||||||||||
Doubtful |
||||||||||||
Total |
$ |
$ |
$ |
Business Banking Credit Exposure By Internally Assigned Grade: |
Business Banking |
Total |
||||||
Non-classified |
$ |
$ |
||||||
Classified |
||||||||
Total |
$ |
$ |
Consumer Credit Exposure By Payment Activity: |
Indirect Auto |
Specialty Lending |
Direct |
Total |
||||||||||||
Performing |
$ |
$ |
$ |
$ |
||||||||||||
Nonperforming |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
Residential Real Estate Credit Exposure By Payment Activity: |
Residential Real Estate |
Total |
||||||
Performing |
$ |
$ |
||||||
Nonperforming |
||||||||
Total |
$ |
$ |
Acquired |
||||||||||||
Commercial Credit Exposure |
||||||||||||
By Internally Assigned Grade: |
C&I |
CRE |
Total |
|||||||||
Pass |
$ |
$ |
$ |
|||||||||
Special Mention |
||||||||||||
Substandard |
||||||||||||
Total |
$ |
$ |
$ |
Business Banking Credit Exposure By Internally Assigned Grade: |
Business Banking |
Total |
||||||
Non-classified |
$ |
$ |
||||||
Classified |
||||||||
Total |
$ |
$ |
Consumer Credit Exposure |
||||||||
By Payment Activity: |
Direct |
Total |
||||||
Performing |
$ |
$ |
||||||
Nonperforming |
||||||||
Total |
$ |
$ |
Residential Real Estate Credit Exposure By Payment Activity: |
Residential Real Estate |
Total |
||||||
Performing |
$ |
$ |
||||||
Nonperforming |
||||||||
Total |
$ |
$ |
Three Months Ended September 30, 2019 |
Nine Months Ended September 30, 2019 |
|||||||||||||||||||||||
(Dollars in thousands) |
Number of Contracts |
Pre-Modification Outstanding Recorded Investment |
Post-Modification Outstanding Recorded Investment |
Number of Contracts |
Pre-Modification Outstanding Recorded Investment |
Post-Modification Outstanding Recorded Investment |
||||||||||||||||||
Commercial Loans: |
||||||||||||||||||||||||
C&I |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Business Banking |
||||||||||||||||||||||||
Total Commercial Loans |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Consumer Loans: |
||||||||||||||||||||||||
Indirect Auto |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Direct |
||||||||||||||||||||||||
Total Consumer Loans |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Residential Real Estate |
$ |
$ |
$ |
$ |
||||||||||||||||||||
Total Troubled Debt Restructurings |
$ |
$ |
$ |
$ |
Three Months Ended September 30, 2019 |
Nine Months Ended September 30, 2019 |
|||||||||||||||
(Dollars in thousands) |
Number of Contracts |
Recorded Investment |
Number of Contracts |
Recorded Investment |
||||||||||||
Consumer Loans: |
||||||||||||||||
Indirect Auto |
$ |
$ |
||||||||||||||
Direct |
||||||||||||||||
Total Consumer Loans |
$ |
$ |
||||||||||||||
Residential Real Estate |
$ |
$ |
||||||||||||||
Total Troubled Debt Restructurings |
$ |
$ |
6. | Subordinated Debt |
(Dollars in thousands) |
September 30, 2020 |
|||
Subordinated notes issued June 2020 – fixed interest rate of |
$ |
|||
Unamortized debt issuance costs |
( |
) |
||
Total subordinated debt, net |
$ |
7. | Defined Benefit Post-Retirement Plans |
Pension Benefits |
Other Benefits |
|||||||||||||||
Three Months Ended September 30, |
Three Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Components of net periodic (benefit) cost: |
||||||||||||||||
Service cost |
$ |
$ |
$ |
$ |
||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) |
( |
) |
||||||||||||
Net amortization |
||||||||||||||||
Total net periodic (benefit) cost |
$ |
( |
) |
$ |
$ |
$ |
Pension Benefits |
Other Benefits |
|||||||||||||||
Nine Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Components of net periodic (benefit) cost: |
||||||||||||||||
Service cost |
$ |
$ |
$ |
$ |
||||||||||||
Interest cost |
||||||||||||||||
Expected return on plan assets |
( |
) |
( |
) |
||||||||||||
Net amortization |
||||||||||||||||
Total net periodic (benefit) cost |
$ |
( |
) |
$ |
$ |
$ |
8. | Earnings Per Share |
Three Months Ended September 30, |
||||||||
(In thousands, except per share data) |
2020 |
2019 |
||||||
Basic EPS: |
||||||||
Weighted average common shares outstanding |
||||||||
Net income available to common stockholders |
$ |
$ |
||||||
Basic EPS |
$ |
$ |
||||||
Diluted EPS: |
||||||||
Weighted average common shares outstanding |
||||||||
Dilutive effect of common stock options and restricted stock |
||||||||
Weighted average common shares and common share equivalents |
||||||||
Net income available to common stockholders |
$ |
$ |
||||||
Diluted EPS |
$ |
$ |
Nine Months Ended September 30, |
||||||||
(In thousands, except per share data) |
2020 |
2019 |
||||||
Basic EPS: |
||||||||
Weighted average common shares outstanding |
||||||||
Net income available to common stockholders |
$ |
$ |
||||||
Basic EPS |
$ |
$ |
||||||
Diluted EPS: |
||||||||
Weighted average common shares outstanding |
||||||||
Dilutive effect of common stock options and restricted stock |
||||||||
Weighted average common shares and common share equivalents |
||||||||
Net income available to common stockholders |
$ |
$ |
||||||
Diluted EPS |
$ |
$ |
9. | Reclassification Adjustments Out of Other Comprehensive Income (Loss) |
Detail About AOCI Components |
Amount Reclassified From AOCI |
Affected Line Item in the Consolidated Statement of Comprehensive Income (Loss) |
|||||||
Three Months Ended |
|||||||||
(In thousands) |
September 30, 2020 |
September 30, 2019 |
|||||||
AFS securities: |
|||||||||
(Gains) on AFS securities |
$ |
$ |
( |
) |
Net securities (gains) |
||||
Amortization of unrealized gains related to securities transfer |
$ |
$ |
Interest income |
||||||
Tax effect |
$ |
( |
) |
$ |
( |
) |
Income tax (benefit) |
||
Net of tax |
$ |
$ |
|||||||
Cash flow hedges: |
|||||||||
Net unrealized losses (gains) on cash flow hedges reclassified to interest expense |
$ |
$ |
( |
) |
Interest expense |
||||
Tax effect |
$ |
( |
) |
$ |
Income tax (benefit) expense |
||||
Net of tax |
$ |
$ |
( |
) |
|||||
Pension and other benefits: |
|||||||||
Amortization of net losses |
$ |
$ |
Other noninterest expense |
||||||
Amortization of prior service costs |
Other noninterest expense |
||||||||
Tax effect |
$ |
( |
) |
$ |
( |
) |
Income tax (benefit) |
||
Net of tax |
$ |
$ |
|||||||
Total reclassifications, net of tax |
$ |
$ |
Detail About AOCI Components |
Amount Reclassified From AOCI |
Affected Line item in the Consolidated Statement of Comprehensive Income (Loss) |
|||||||
Nine Months Ended |
|||||||||
(In thousands) |
September 30, 2020 |
September 30, 2019 |
|||||||
AFS securities: |
|||||||||
(Gains) losses on AFS securities |
$ |
( |
) |
$ |
Net securities (gains) losses |
||||
Amortization of unrealized gains related to securities transfer |
Interest income |
||||||||
Tax effect |
$ |
( |
) |
$ |
( |
) |
Income tax (benefit) |
||
Net of tax |
$ |
$ |
|||||||
Cash flow hedges: |
|||||||||
Net unrealized losses (gains) on cash flow hedges reclassified to interest expense |
$ |
$ |
( |
) |
Interest expense |
||||
Tax effect |
$ |
( |
) |
$ |
Income tax (benefit) expense |
||||
Net of tax |
$ |
$ |
( |
) |
|||||
Pension and other benefits: |
|||||||||
Amortization of net losses |
$ |
$ |
Other noninterest expense |
||||||
Amortization of prior service costs |
Other noninterest expense |
||||||||
Tax effect |
$ |
( |
) |
$ |
( |
) |
Income tax (benefit) |
||
Net of tax |
$ |
$ |
|||||||
Total reclassifications, net of tax |
$ |
$ |
10. | Derivative Instruments and Hedging Activities |
September 30, |
December 31, |
|||||||
(In thousands) |
2020 |
2019 |
||||||
Derivatives Not Designated as Hedging Instruments: |
||||||||
Fair value adjustment included in other assets and other liabilities |
||||||||
Interest rate derivatives |
$ |
$ |
||||||
Notional amount: |
||||||||
Interest rate derivatives |
||||||||
Risk participation agreements |
||||||||
Derivatives Designated as Hedging Instruments: |
||||||||
Fair value adjustment included in other assets |
||||||||
Interest rate derivatives |
||||||||
Fair value adjustment included in other liabilities |
||||||||
Interest rate derivatives |
||||||||
Notional amount: |
||||||||
Interest rate derivatives |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Derivatives Designated as Hedging Instruments: |
||||||||||||||||
Interest rate derivatives - included component |
||||||||||||||||
Amount of gain (loss) recognized in other comprehensive income |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
||||||||
Amount of loss (gain) reclassified from AOCI into interest expense |
( |
) |
( |
) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Derivatives Not Designated as Hedging Instruments: |
||||||||||||||||
(Decrease) increase in other income |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
11. | Fair Value Measurements and Fair Value of Financial Instruments |
(In thousands) |
Level 1 |
Level 2 |
Level 3 |
September 30, 2020 |
||||||||||||
Assets: |
||||||||||||||||
AFS securities |
||||||||||||||||
Federal agency |
$ |
$ |
$ |
$ |
||||||||||||
State & municipal |
||||||||||||||||
Mortgage-backed |
||||||||||||||||
Collateralized mortgage obligations |
||||||||||||||||
Corporate |
||||||||||||||||
Total AFS securities |
$ |
$ |
$ |
$ |
||||||||||||
Equity securities |
||||||||||||||||
Derivatives |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Liabilities: |
||||||||||||||||
Derivatives |
$ |
$ |
$ |
$ |
||||||||||||
Total |
$ |
$ |
$ |
$ |
(In thousands) |
Level 1 |
Level 2 |
Level 3 |
December 31, 2019 |
||||||||||||
Assets: |
||||||||||||||||
AFS securities |
||||||||||||||||
Federal agency |
$ |
$ |
$ |
$ |
||||||||||||
State & municipal |
||||||||||||||||
Mortgage-backed |
||||||||||||||||
Collateralized mortgage obligations |
||||||||||||||||
Total AFS securities |
$ |
$ |
$ |
$ |
||||||||||||
Equity securities |
||||||||||||||||
Derivatives |
||||||||||||||||
Total |
$ |
$ |
$ |
$ |
||||||||||||
Liabilities: |
||||||||||||||||
Derivatives |
$ |
$ |
$ |
$ |
||||||||||||
Total |
$ |
$ |
$ |
$ |
September 30, 2020 |
December 31, 2019 |
||||||||||||
(In thousands) |
Fair Value Hierarchy |
Carrying Amount |
Estimated Fair Value |
Carrying Amount |
Estimated Fair Value |
||||||||
Financial assets: |
|||||||||||||
HTM securities |
2 |
$ |
$ |
$ |
$ |
||||||||
Net loans |
3 |
||||||||||||
Financial liabilities: |
|||||||||||||
Time deposits |
2 |
$ |
$ |
$ |
$ |
||||||||
Long-term debt |
2 |
||||||||||||
Subordinated debt |
1 |
||||||||||||
Junior subordinated debt |
2 |
12. | Commitments and Contingencies |
• | Net income up $10.4 million from the second quarter of 2020 and up $2.7 million from the third quarter of 2019. |
• | Diluted earnings per share up $0.24 from the second quarter of 2020 and up $0.07 from the third quarter of 2019. |
• | Provision expense for the three months ended September 30, 2020 was $3.3 million, with an increase from the second quarter of 2020 in allowance to total loans due to $3.0 million in specific reserves for two nonperforming commercial relationships and a change in loan mix while net charge-offs of $2.3 million were down compared with the prior quarter. |
• | The net interest margin on a fully table equivalent (“FTE”) basis for the third quarter of 2020 was 3.17%, down 21 basis points (“bps”) from the second quarter of 2020 and down 40 bps from the third quarter of 2019. |
• | Pre-provision net revenue (“PPNR”)(1) for the third quarter of 2020 was $49.6 million compared to $50.7 million in the previous quarter and $48.2 million in the third quarter of 2019. The 2% decline in PPNR from the previous quarter reflected lower net interest income, slightly higher operating expenses, partly offset by higher noninterest income. |
• | Book value per share of $26.74 at September 30, 2020; tangible book value per share grew 3% for the quarter and 8% from prior year to $20.02(2) at September 30, 2020. |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Net income before income tax expense |
$ |
46,101 |
$ |
41,701 |
$ |
89,461 |
$ |
118,306 |
||||||||
FTE adjustment |
325 |
374 |
983 |
1,318 |
||||||||||||
Provision for loan losses |
3,261 |
6,324 |
51,741 |
19,408 |
||||||||||||
Net securities (gains) losses |
(84 |
) |
(4,036 |
) |
548 |
(4,024 |
) |
|||||||||
Nonrecurring expense |
- |
3,800 |
650 |
3,800 |
||||||||||||
Unfunded loan commitments reserve |
- |
- |
1,800 |
- |
||||||||||||
PPNR |
$ |
49,603 |
$ |
48,163 |
$ |
145,183 |
$ |
138,808 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Net income |
$ |
35,113 |
$ |
32,379 |
$ |
70,194 |
$ |
92,061 |
||||||||
Amortization of intangible assets (net of tax) |
642 |
656 |
1,930 |
2,051 |
||||||||||||
Net income, excluding intangible amortization |
$ |
35,755 |
$ |
33,035 |
$ |
72,124 |
$ |
94,112 |
||||||||
Average stockholders’ equity |
$ |
1,155,056 |
$ |
1,085,961 |
$ |
1,139,871 |
$ |
1,055,375 |
||||||||
Less: average goodwill and other intangibles |
293,572 |
288,077 |
291,472 |
288,967 |
||||||||||||
Average tangible common equity |
$ |
861,484 |
$ |
797,884 |
$ |
848,399 |
$ |
766,408 |
Three Months Ended |
September 30, 2020 |
September 30, 2019 |
||||||||||||||||||||||
(Dollars in thousands) |
Average Balance |
Interest |
Yield/ Rates |
Average Balance |
Interest |
Yield/ Rates |
||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Short-term interest-bearing accounts |
$ |
477,946 |
$ |
130 |
0.11 |
% |
$ |
57,530 |
$ |
283 |
1.95 |
% |
||||||||||||
Securities available for sale (1) (3) |
1,137,604 |
5,603 |
1.96 |
% |
940,256 |
5,711 |
2.41 |
% |
||||||||||||||||
Securities held to maturity (1) (3) |
621,812 |
4,008 |
2.56 |
% |
698,617 |
4,879 |
2.77 |
% |
||||||||||||||||
Federal Reserve Bank and FHLB stock |
29,720 |
529 |
7.08 |
% |
40,525 |
719 |
7.04 |
% |
||||||||||||||||
Loans (2) (3) |
7,559,218 |
75,049 |
3.95 |
% |
6,987,476 |
81,163 |
4.61 |
% |
||||||||||||||||
Total interest-earning assets |
$ |
9,826,300 |
$ |
85,319 |
3.45 |
% |
$ |
8,724,404 |
$ |
92,755 |
4.22 |
% |
||||||||||||
Other assets |
967,194 |
852,616 |
||||||||||||||||||||||
Total assets |
$ |
10,793,494 |
$ |
9,577,020 |
||||||||||||||||||||
Liabilities and stockholders’ equity: |
||||||||||||||||||||||||
Money market deposit accounts |
$ |
2,364,606 |
$ |
1,680 |
0.28 |
% |
$ |
2,015,297 |
$ |
6,281 |
1.24 |
% |
||||||||||||
NOW deposit accounts |
1,207,064 |
144 |
0.05 |
% |
1,056,001 |
340 |
0.13 |
% |
||||||||||||||||
Savings deposits |
1,447,021 |
192 |
0.05 |
% |
1,274,793 |
188 |
0.06 |
% |
||||||||||||||||
Time deposits |
684,708 |
2,251 |
1.31 |
% |
893,837 |
3,936 |
1.75 |
% |
||||||||||||||||
Total interest-bearing deposits |
$ |
5,703,399 |
$ |
4,267 |
0.30 |
% |
$ |
5,239,928 |
$ |
10,745 |
0.81 |
% |
||||||||||||
Short-term borrowings |
277,890 |
446 |
0.64 |
% |
490,694 |
1,989 |
1.61 |
% |
||||||||||||||||
Long-term debt |
64,137 |
398 |
2.47 |
% |
84,250 |
498 |
2.35 |
% |
||||||||||||||||
Subordinated debt |
97,934 |
1,375 |
5.59 |
% |
- |
- |
- |
|||||||||||||||||
Junior subordinated debt |
101,196 |
565 |
2.22 |
% |
101,196 |
1,095 |
4.29 |
% |
||||||||||||||||
Total interest-bearing liabilities |
$ |
6,244,556 |
$ |
7,051 |
0.45 |
% |
$ |
5,916,068 |
$ |
14,327 |
0.96 |
% |
||||||||||||
Demand deposits |
$ |
3,111,617 |
$ |
2,389,617 |
||||||||||||||||||||
Other liabilities |
282,265 |
185,374 |
||||||||||||||||||||||
Stockholders’ equity |
1,155,056 |
1,085,961 |
||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ |
10,793,494 |
$ |
9,577,020 |
||||||||||||||||||||
Net interest income (FTE) |
$ |
78,268 |
$ |
78,428 |
||||||||||||||||||||
Interest rate spread |
3.00 |
% |
3.26 |
% |
||||||||||||||||||||
Net interest margin (FTE) |
3.17 |
% |
3.57 |
% |
||||||||||||||||||||
Taxable equivalent adjustment |
$ |
325 |
$ |
374 |
||||||||||||||||||||
Net interest income |
$ |
77,943 |
$ |
78,054 |
(1) | Securities are shown at average amortized cost. |
(2) | For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. |
(3) | Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. |
Nine Months Ended |
September 30, 2020 |
September 30, 2019 |
||||||||||||||||||||||
(Dollars in thousands) |
Average Balance |
Interest |
Yield/ Rates |
Average Balance |
Interest |
Yield/ Rates |
||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Short-term interest-bearing accounts |
$ |
311,577 |
$ |
464 |
0.20 |
% |
$ |
30,970 |
$ |
457 |
1.97 |
% |
||||||||||||
Securities available for sale (1) (3) |
1,028,962 |
16,956 |
2.20 |
% |
968,517 |
17,695 |
2.44 |
% |
||||||||||||||||
Securities held to maturity (1) (3) |
619,379 |
12,562 |
2.71 |
% |
750,305 |
15,921 |
2.84 |
% |
||||||||||||||||
Federal Reserve Bank and FHLB stock |
35,349 |
1,674 |
6.33 |
% |
45,254 |
2,271 |
6.71 |
% |
||||||||||||||||
Loans (2) (3) |
7,437,566 |
231,168 |
4.15 |
% |
6,944,518 |
241,932 |
4.66 |
% |
||||||||||||||||
Total interest-earning assets |
$ |
9,432,833 |
$ |
262,824 |
3.72 |
% |
$ |
8,739,564 |
$ |
278,276 |
4.26 |
% |
||||||||||||
Other assets |
938,296 |
821,859 |
||||||||||||||||||||||
Total assets |
$ |
10,371,129 |
$ |
9,561,423 |
||||||||||||||||||||
Liabilities and stockholders’ equity: |
||||||||||||||||||||||||
Money market deposit accounts |
$ |
2,275,765 |
$ |
8,646 |
0.51 |
% |
$ |
1,912,572 |
$ |
16,255 |
1.14 |
% |
||||||||||||
NOW deposit accounts |
1,153,780 |
548 |
0.06 |
% |
1,105,919 |
1,157 |
0.14 |
% |
||||||||||||||||
Savings deposits |
1,369,219 |
553 |
0.05 |
% |
1,269,723 |
550 |
0.06 |
% |
||||||||||||||||
Time deposits |
762,548 |
8,436 |
1.48 |
% |
929,819 |
11,843 |
1.70 |
% |
||||||||||||||||
Total interest-bearing deposits |
$ |
5,561,312 |
$ |
18,183 |
0.44 |
% |
$ |
5,218,033 |
$ |
29,805 |
0.76 |
% |
||||||||||||
Short-term borrowings |
412,312 |
3,215 |
1.04 |
% |
607,155 |
7,986 |
1.76 |
% |
||||||||||||||||
Long-term debt |
64,165 |
1,184 |
2.46 |
% |
80,162 |
1,391 |
2.32 |
% |
||||||||||||||||
Subordinated debt |
35,750 |
1,503 |
5.62 |
% |
- |
- |
- |
|||||||||||||||||
Junior subordinated debt |
101,196 |
2,186 |
2.89 |
% |
101,196 |
3,404 |
4.50 |
% |
||||||||||||||||
Total interest-bearing liabilities |
$ |
6,174,735 |
$ |
26,271 |
0.57 |
% |
$ |
6,006,546 |
$ |
42,586 |
0.95 |
% |
||||||||||||
Demand deposits |
$ |
2,800,297 |
$ |
2,332,965 |
||||||||||||||||||||
Other liabilities |
256,226 |
166,537 |
||||||||||||||||||||||
Stockholders’ equity |
1,139,871 |
1,055,375 |
||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ |
10,371,129 |
$ |
9,561,423 |
||||||||||||||||||||
Net interest income (FTE) |
$ |
236,553 |
$ |
235,690 |
||||||||||||||||||||
Interest rate spread |
3.15 |
% |
3.31 |
% |
||||||||||||||||||||
Net interest margin (FTE) |
3.35 |
% |
3.61 |
% |
||||||||||||||||||||
Taxable equivalent adjustment |
$ |
983 |
$ |
1,318 |
||||||||||||||||||||
Net interest income |
$ |
235,570 |
$ |
234,372 |
(1) | Securities are shown at average amortized cost. |
(2) | For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding. |
(3) | Interest income for tax-exempt securities and loans have been adjusted to a FTE basis using the statutory Federal income tax rate of 21%. |
Three Months Ended September 30, |
Increase (Decrease) 2020 over 2019 |
|||||||||||
(In thousands) |
Volume |
Rate |
Total |
|||||||||
Short-term interest-bearing accounts |
$ |
337 |
$ |
(490 |
) |
$ |
(153 |
) |
||||
Securities available for sale |
1,069 |
(1,177 |
) |
(108 |
) |
|||||||
Securities held to maturity |
(519 |
) |
(352 |
) |
(871 |
) |
||||||
Federal Reserve Bank and FHLB stock |
(194 |
) |
4 |
(190 |
) |
|||||||
Loans |
6,198 |
(12,312 |
) |
(6,114 |
) |
|||||||
Total FTE interest income |
$ |
6,891 |
$ |
(14,327 |
) |
$ |
(7,436 |
) |
||||
Money market deposit accounts |
$ |
929 |
$ |
(5,530 |
) |
$ |
(4,601 |
) |
||||
NOW deposit accounts |
43 |
(239 |
) |
(196 |
) |
|||||||
Savings deposits |
24 |
(20 |
) |
4 |
||||||||
Time deposits |
(812 |
) |
(873 |
) |
(1,685 |
) |
||||||
Short-term borrowings |
(646 |
) |
(897 |
) |
(1,543 |
) |
||||||
Long-term debt |
(125 |
) |
25 |
(100 |
) |
|||||||
Subordinated debt |
1,375 |
- |
1,375 |
|||||||||
Junior subordinated debt |
- |
(530 |
) |
(530 |
) |
|||||||
Total FTE interest expense |
$ |
788 |
$ |
(8,064 |
) |
$ |
(7,276 |
) |
||||
Change in FTE net interest income |
$ |
6,103 |
$ |
(6,263 |
) |
$ |
(160 |
) |
Nine Months Ended September 30, |
Increase (Decrease) 2020 over 2019 |
|||||||||||
(In thousands) |
Volume |
Rate |
Total |
|||||||||
Short-term interest-bearing accounts |
$ |
755 |
$ |
(748 |
) |
$ |
7 |
|||||
Securities available for sale |
1,069 |
(1,808 |
) |
(739 |
) |
|||||||
Securities held to maturity |
(2,669 |
) |
(690 |
) |
(3,359 |
) |
||||||
Federal Reserve Bank and FHLB stock |
(473 |
) |
(124 |
) |
(597 |
) |
||||||
Loans |
16,542 |
(27,306 |
) |
(10,764 |
) |
|||||||
Total FTE interest income |
$ |
15,224 |
$ |
(30,676 |
) |
$ |
(15,452 |
) |
||||
Money market deposit accounts |
$ |
2,657 |
$ |
(10,266 |
) |
$ |
(7,609 |
) |
||||
NOW deposit accounts |
48 |
(657 |
) |
(609 |
) |
|||||||
Savings deposits |
42 |
(39 |
) |
3 |
||||||||
Time deposits |
(1,964 |
) |
(1,443 |
) |
(3,407 |
) |
||||||
Short-term borrowings |
(2,101 |
) |
(2,670 |
) |
(4,771 |
) |
||||||
Long-term debt |
(290 |
) |
83 |
(207 |
) |
|||||||
Subordinated debt |
1,503 |
- |
1,503 |
|||||||||
Junior subordinated debt |
- |
(1,218 |
) |
(1,218 |
) |
|||||||
Total FTE interest expense |
$ |
(105 |
) |
$ |
(16,210 |
) |
$ |
(16,315 |
) |
|||
Change in net FTE interest income |
$ |
15,329 |
$ |
(14,466 |
) |
$ |
863 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Service charges on deposit accounts |
$ |
3,087 |
$ |
4,330 |
$ |
9,613 |
$ |
12,790 |
||||||||
ATM and debit card fees |
7,194 |
6,277 |
19,184 |
17,958 |
||||||||||||
Retirement plan administration fees |
9,685 |
7,600 |
26,840 |
23,170 |
||||||||||||
Wealth management |
7,695 |
7,630 |
21,791 |
21,315 |
||||||||||||
Insurance |
3,742 |
4,000 |
11,303 |
12,291 |
||||||||||||
Bank owned life insurance |
1,255 |
1,556 |
4,010 |
4,119 |
||||||||||||
Net securities gains (losses) |
84 |
4,036 |
(548 |
) |
4,024 |
|||||||||||
Other |
4,985 |
4,291 |
15,968 |
12,115 |
||||||||||||
Total noninterest income |
$ |
37,727 |
$ |
39,720 |
$ |
108,161 |
$ |
107,782 |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In thousands) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Salaries and employee benefits |
$ |
40,451 |
$ |
39,352 |
$ |
120,918 |
$ |
117,275 |
||||||||
Occupancy |
5,294 |
5,335 |
16,354 |
17,053 |
||||||||||||
Data processing and communications |
4,058 |
4,492 |
12,370 |
13,599 |
||||||||||||
Professional fees and outside services |
3,394 |
3,535 |
10,694 |
10,562 |
||||||||||||
Equipment |
5,073 |
4,487 |
14,494 |
13,762 |
||||||||||||
Office supplies and postage |
1,530 |
1,667 |
4,621 |
4,835 |
||||||||||||
FDIC expense (credit) |
645 |
(20 |
) |
1,949 |
1,946 |
|||||||||||
Advertising |
530 |
677 |
1,461 |
1,821 |
||||||||||||
Amortization of intangible assets |
856 |
874 |
2,573 |
2,735 |
||||||||||||
Loan collection and other real estate owned, net |
620 |
976 |
2,365 |
2,722 |
||||||||||||
Other |
3,857 |
8,374 |
14,730 |
18,130 |
||||||||||||
Total noninterest expense |
$ |
66,308 |
$ |
69,749 |
$ |
202,529 |
$ |
204,440 |
September 30, 2020 |
December 31, 2019 |
|||||||
Mortgage-backed securities: |
||||||||
With maturities 15 years or less |
19 |
% |
25 |
% |
||||
With maturities greater than 15 years |
10 |
% |
12 |
% |
||||
Collateralized mortgage obligations |
38 |
% |
45 |
% |
||||
Municipal securities |
12 |
% |
10 |
% |
||||
U.S. agency notes |
19 |
% |
6 |
% |
||||
Corporate |
1 |
% |
- |
|||||
Equity securities |
1 |
% |
2 |
% |
||||
Total |
100 |
% |
100 |
% |
(In thousands) |
September 30, 2020 |
December 31, 2019 |
||||||
Commercial |
$ |
1,297,408 |
$ |
1,302,209 |
||||
Commercial real estate |
2,281,843 |
2,142,057 |
||||||
Paycheck protection program |
514,558 |
- |
||||||
Residential real estate mortgages |
1,448,530 |
1,445,156 |
||||||
Indirect auto |
989,369 |
1,193,635 |
||||||
Specialty lending |
566,973 |
542,063 |
||||||
Home equity |
404,346 |
444,082 |
||||||
Other consumer |
57,616 |
66,896 |
||||||
Total loans |
$ |
7,560,643 |
$ |
7,136,098 |
September 30, 2020 |
December 31, 2019 |
|||||||||||||||
(Dollars in thousands) |
Amount |
% |
Amount |
% |
||||||||||||
Nonaccrual loans: |
||||||||||||||||
Commercial |
$ |
20,707 |
58 |
% |
$ |
12,379 |
49 |
% |
||||||||
Residential real estate |
7,986 |
22 |
% |
5,233 |
21 |
% |
||||||||||
Consumer |
3,270 |
9 |
% |
4,046 |
16 |
% |
||||||||||
Troubled debt restructured loans |
3,933 |
11 |
% |
3,516 |
14 |
% |
||||||||||
Total nonaccrual loans |
$ |
35,896 |
100 |
% |
$ |
25,174 |
100 |
% |
||||||||
Loans 90 days or more past due and still accruing: |
||||||||||||||||
Commercial |
$ |
12 |
- |
$ |
- |
- |
||||||||||
Residential real estate |
620 |
24 |
% |
927 |
25 |
% |
||||||||||
Consumer |
1,947 |
76 |
% |
2,790 |
75 |
% |
||||||||||
Total loans 90 days or more past due and still accruing |
$ |
2,579 |
100 |
% |
$ |
3,717 |
100 |
% |
||||||||
Total nonperforming loans |
$ |
38,475 |
$ |
28,891 |
||||||||||||
OREO |
1,605 |
1,458 |
||||||||||||||
Total nonperforming assets |
$ |
40,080 |
$ |
30,349 |
||||||||||||
Total nonperforming loans to total loans |
0.51 |
% |
0.40 |
% |
||||||||||||
Total nonperforming assets to total assets |
0.37 |
% |
0.31 |
% |
||||||||||||
Allowance for loan losses to total nonperforming loans |
297.60 |
% |
252.55 |
% |
Capital Measurements |
September 30, 2020 |
December 31, 2019 |
||||||
Tier 1 leverage ratio |
9.48 |
% |
10.33 |
% |
||||
Common equity tier 1 capital ratio |
11.63 |
% |
11.29 |
% |
||||
Tier 1 capital ratio |
12.88 |
% |
12.56 |
% |
||||
Total risk-based capital ratio |
15.43 |
% |
13.52 |
% |
||||
Cash dividends as a percentage of net income |
50.46 |
% |
38.02 |
% |
||||
Per common share: |
||||||||
Book value |
$ |
26.74 |
$ |
25.58 |
||||
Tangible book value(1) |
$ |
20.02 |
$ |
19.03 |
||||
Tangible equity ratio(2) |
8.27 |
% |
8.84 |
% |
(1) | Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding. |
(2) | Non-GAAP measure - Stockholders’ equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. |
Interest Rate Sensitivity Analysis |
|
Change in interest rates |
Percent change in |
(in bps points) |
net interest income |
+200 |
0.89% |
+100 |
1.37% |
-50 |
(0.26%) |
3.1 |
Restated Certificate of Incorporation of NBT Bancorp Inc. as amended through July 1, 2015 (filed as Exhibit 3.1 to Registrant’s Form 10-Q, filed on August 10, 2015 and incorporated herein by reference). |
3.2 |
Amended and Restated Bylaws of NBT Bancorp Inc. effective May 22, 2018 (filed as Exhibit 3.1 to Registrant’s Form 8-K, filed on May 23, 2018 and incorporated herein by reference). |
3.3 |
Certificate of Designation of the Series A Junior Participating Preferred Stock (filed as Exhibit A to Exhibit 4.1 of the Registrant’s Form 8-K, filed on November 18, 2004 and incorporated herein by reference). |
Certification by the Chief Executive Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934. |
|
Certification by the Chief Financial Officer pursuant to Rules 13(a)-14(a)/15(d)-14(e) of the Securities and Exchange Act of 1934. |
|
Certification by the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
101.INS |
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
101.SCH |
Inline XBRL Taxonomy Extension Schema Document. |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
104 |
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
NBT BANCORP INC. |
|
By: |
/s/ John V. Moran |
John V. Moran |
|
Executive Vice President |
|
Chief Financial Officer |
By:
|
/s/ John H. Watt, Jr.
|
|
John H. Watt, Jr.
|
||
Chief Executive Officer
|
By:
|
/s/ John V. Moran
|
|
John V. Moran
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
/s/ John H. Watt, Jr.
|
||
John H. Watt, Jr.
|
||
Chief Executive Officer
|
||
November 6, 2020
|
/s/ John V. Moran
|
||
John V. Moran
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
||
November 6, 2020
|
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets | ||
Securities held to maturity fair value | $ 684,862 | $ 641,262 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 49,651,493 | 49,651,493 |
Common stock in treasury, at cost (in shares) | 6,040,113 | 5,854,882 |
Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Interest, fee and dividend income | ||||||
Interest and fees on loans | $ 74,998 | $ 81,082 | $ 230,996 | $ 241,674 | ||
Securities available for sale | 5,603 | 5,711 | 16,956 | 17,664 | ||
Securities held to maturity | 3,734 | 4,586 | 11,751 | 14,892 | ||
Other | 659 | 1,002 | 2,138 | 2,728 | ||
Total interest, fee and dividend income | 84,994 | 92,381 | 261,841 | 276,958 | ||
Interest expense | ||||||
Deposits | 4,267 | 10,745 | 18,183 | 29,805 | ||
Short-term borrowings | 446 | 1,989 | 3,215 | 7,986 | ||
Long-term debt | 398 | 498 | 1,184 | 1,391 | ||
Subordinated debt | 1,375 | 0 | 1,503 | 0 | ||
Junior subordinated debt | 565 | 1,095 | 2,186 | 3,404 | ||
Total interest expense | 7,051 | 14,327 | 26,271 | 42,586 | ||
Net interest income | 77,943 | 78,054 | 235,570 | 234,372 | ||
Provision for loan losses | [1] | 3,261 | 6,324 | 51,741 | 19,408 | |
Net interest income after provision for loan losses | 74,682 | 71,730 | 183,829 | 214,964 | ||
Noninterest income | ||||||
Service charges on deposit accounts | 3,087 | 4,330 | 9,613 | 12,790 | ||
ATM and debit card fees | 7,194 | 6,277 | 19,184 | 17,958 | ||
Retirement plan administration fees | 9,685 | 7,600 | 26,840 | 23,170 | ||
Wealth management | 7,695 | 7,630 | 21,791 | 21,315 | ||
Insurance | 3,742 | 4,000 | 11,303 | 12,291 | ||
Bank owned life insurance income | 1,255 | 1,556 | 4,010 | 4,119 | ||
Net securities gains (losses) | 84 | 4,036 | (548) | 4,024 | ||
Other | 4,985 | 4,291 | 15,968 | 12,115 | ||
Total noninterest income | 37,727 | 39,720 | 108,161 | 107,782 | ||
Noninterest expense | ||||||
Salaries and employee benefits | 40,451 | 39,352 | 120,918 | 117,275 | ||
Occupancy | 5,294 | 5,335 | 16,354 | 17,053 | ||
Data processing and communications | 4,058 | 4,492 | 12,370 | 13,599 | ||
Professional fees and outside services | 3,394 | 3,535 | 10,694 | 10,562 | ||
Equipment | 5,073 | 4,487 | 14,494 | 13,762 | ||
Office supplies and postage | 1,530 | 1,667 | 4,621 | 4,835 | ||
FDIC expense (credit) | 645 | (20) | 1,949 | 1,946 | ||
Advertising | 530 | 677 | 1,461 | 1,821 | ||
Amortization of intangible assets | 856 | 874 | 2,573 | 2,735 | ||
Loan collection and other real estate owned, net | 620 | 976 | 2,365 | 2,722 | ||
Other | 3,857 | 8,374 | 14,730 | 18,130 | ||
Total noninterest expense | 66,308 | 69,749 | 202,529 | 204,440 | ||
Income before income tax expense | 46,101 | 41,701 | 89,461 | 118,306 | ||
Income tax expense | 10,988 | 9,322 | 19,267 | 26,245 | ||
Net income | $ 35,113 | $ 32,379 | $ 70,194 | $ 92,061 | ||
Earnings per share | ||||||
Basic (in dollars per share) | $ 0.80 | $ 0.74 | $ 1.61 | $ 2.10 | ||
Diluted (in dollars per share) | $ 0.80 | $ 0.73 | $ 1.60 | $ 2.09 | ||
|
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||||
Net income | $ 35,113 | $ 32,379 | $ 70,194 | $ 92,061 |
Securities available for sale: | ||||
Unrealized net holding (losses) gains arising during the period, gross | (1,263) | 2,360 | 26,509 | 26,787 |
Tax effect | 316 | (590) | (6,627) | (6,697) |
Unrealized net holding (losses) gains arising during the period, net | (947) | 1,770 | 19,882 | 20,090 |
Reclassification adjustment for net (gains) losses in net income, gross | 0 | (20) | (3) | 79 |
Tax effect | 0 | 5 | 1 | (20) |
Reclassification adjustment for net (gains) losses in net income, net | 0 | (15) | (2) | 59 |
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, gross | 157 | 190 | 495 | 556 |
Tax effect | (39) | (47) | (124) | (139) |
Amortization of unrealized net gains for the reclassification of available for sale securities to held to maturity, net | 118 | 143 | 371 | 417 |
Total securities available for sale, net | (829) | 1,898 | 20,251 | 20,566 |
Cash flow hedges: | ||||
Unrealized gains (losses) on derivatives (cash flow hedges), gross | 0 | 9 | (274) | (475) |
Tax effect | 0 | (2) | 69 | 119 |
Unrealized gains (losses) on derivatives (cash flow hedges), net | 0 | 7 | (205) | (356) |
Reclassification of net unrealized losses (gains) on cash flow hedges to interest (income), gross | 101 | (395) | 192 | (1,932) |
Tax effect | (25) | 98 | (48) | 483 |
Reclassification of net unrealized losses (gains) on cash flow hedges to interest (income), net | 76 | (297) | 144 | (1,449) |
Total cash flow hedges, net | 76 | (290) | (61) | (1,805) |
Pension and other benefits: | ||||
Amortization of prior service cost and actuarial losses, gross | 381 | 672 | 1,143 | 1,985 |
Tax effect | (95) | (168) | (286) | (496) |
Amortization of prior service cost and actuarial losses, net | 286 | 504 | 857 | 1,489 |
Total pension and other benefits, net | 286 | 504 | 857 | 1,489 |
Total other comprehensive income | (467) | 2,112 | 21,047 | 20,250 |
Comprehensive income | $ 34,646 | $ 34,491 | $ 91,241 | $ 112,311 |
Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands |
Common Stock [Member] |
Additional Paid-in-Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive (Loss) Income [Member] |
Common Stock in Treasury [Member] |
Total |
Cumulative Effect Adjustment for ASU Implementation [Member]
Common Stock [Member]
|
Cumulative Effect Adjustment for ASU Implementation [Member]
Additional Paid-in-Capital [Member]
|
Cumulative Effect Adjustment for ASU Implementation [Member]
Retained Earnings [Member]
|
Cumulative Effect Adjustment for ASU Implementation [Member]
Accumulated Other Comprehensive (Loss) Income [Member]
|
Cumulative Effect Adjustment for ASU Implementation [Member]
Common Stock in Treasury [Member]
|
Cumulative Effect Adjustment for ASU Implementation [Member] |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2018 | $ 497 | $ 575,466 | $ 621,203 | $ (43,174) | $ (136,083) | $ 1,017,909 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 92,061 | 0 | 0 | 92,061 | ||||||
Cash dividends | 0 | 0 | (34,174) | 0 | 0 | (34,174) | ||||||
Net issuance of shares to employee and other stock plans | 0 | (2,916) | 0 | 0 | 1,875 | (1,041) | ||||||
Stock-based compensation | 0 | 3,596 | 0 | 0 | 0 | 3,596 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 20,250 | 0 | 20,250 | ||||||
Balance at Sep. 30, 2019 | 497 | 576,146 | 679,090 | (22,924) | (134,208) | 1,098,601 | ||||||
Balance at Jun. 30, 2019 | 497 | 575,794 | 658,107 | (25,036) | (134,539) | 1,074,823 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 32,379 | 0 | 0 | 32,379 | ||||||
Cash dividends | 0 | 0 | (11,396) | 0 | 0 | (11,396) | ||||||
Net issuance of shares to employee and other stock plans | 0 | (104) | 0 | 0 | 331 | 227 | ||||||
Stock-based compensation | 0 | 456 | 0 | 0 | 0 | 456 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 2,112 | 0 | 2,112 | ||||||
Balance at Sep. 30, 2019 | 497 | 576,146 | 679,090 | (22,924) | (134,208) | 1,098,601 | ||||||
Balance at Dec. 31, 2019 | 497 | 576,708 | 696,214 | (19,026) | (133,996) | 1,120,397 | ||||||
Balance (ASU 2016-13 [Member]) at Dec. 31, 2019 | $ 0 | $ 0 | $ (4,339) | $ 0 | $ 0 | $ (4,339) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 70,194 | 0 | 0 | 70,194 | ||||||
Cash dividends | 0 | 0 | (35,419) | 0 | 0 | (35,419) | ||||||
Purchase of treasury shares | 0 | 0 | 0 | 0 | (7,980) | (7,980) | ||||||
Net issuance of shares to employee and other stock plans | 0 | (2,928) | 0 | 0 | 1,182 | (1,746) | ||||||
Stock-based compensation | 0 | 3,957 | 0 | 0 | 0 | 3,957 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 21,047 | 0 | 21,047 | ||||||
Balance at Sep. 30, 2020 | 497 | 577,737 | 726,650 | 2,021 | (140,794) | 1,166,111 | ||||||
Balance at Jun. 30, 2020 | 497 | 577,197 | 703,322 | 2,488 | (140,852) | 1,142,652 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 0 | 0 | 35,113 | 0 | 0 | 35,113 | ||||||
Cash dividends | 0 | 0 | (11,785) | 0 | 0 | (11,785) | ||||||
Net issuance of shares to employee and other stock plans | 0 | (108) | 0 | 0 | 58 | (50) | ||||||
Stock-based compensation | 0 | 648 | 0 | 0 | 0 | 648 | ||||||
Other comprehensive income (loss) | 0 | 0 | 0 | (467) | 0 | (467) | ||||||
Balance at Sep. 30, 2020 | $ 497 | $ 577,737 | $ 726,650 | $ 2,021 | $ (140,794) | $ 1,166,111 |
Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Consolidated Statements of Stockholders' Equity (unaudited) [Abstract] | ||||
Cash dividends - per share (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.81 | $ 0.78 |
Purchase of treasury shares (in shares) | 263,507 | |||
Net issuance of shares to employee benefit plans and other stock plans (in shares) | 3,030 | 17,234 | 78,276 | 113,679 |
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|||
Operating activities | ||||
Net income | $ 70,194 | $ 92,061 | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Provision for loan losses | [1] | 51,741 | 19,408 | |
Depreciation and amortization of premises and equipment | 7,378 | 7,106 | ||
Net amortization on securities | 2,812 | 2,495 | ||
Amortization of intangible assets | 2,573 | 2,735 | ||
Amortization of operating lease right-of-use assets | 5,549 | 5,396 | ||
Excess tax benefit on stock-based compensation | (188) | (371) | ||
Stock-based compensation expense | 3,957 | 3,596 | ||
Bank owned life insurance income | (4,010) | (4,119) | ||
Amortization of subordinated debt issuance costs | 121 | 0 | ||
Proceeds from sale of loans held for sale | 153,732 | 109,661 | ||
Originations of loans held for sale | (144,105) | (119,753) | ||
Net gains on sale of loans held for sale | (1,892) | (475) | ||
Net security losses (gains) | 548 | (4,024) | ||
Net gains on sale of other real estate owned | (243) | (178) | ||
Net change in other assets and other liabilities | (40,760) | (9,579) | ||
Net cash provided by operating activities | 107,407 | 103,959 | ||
Investing activities | ||||
Net cash used in acquisitions | (3,899) | 0 | ||
Securities available for sale: | ||||
Proceeds from maturities, calls and principal paydowns | 239,622 | 226,070 | ||
Proceeds from sales | 0 | 26,203 | ||
Purchases | (437,827) | (160,781) | ||
Securities held to maturity: | ||||
Proceeds from maturities, calls and principal paydowns | 181,143 | 165,997 | ||
Proceeds from sales | 996 | 0 | ||
Purchases | (215,327) | (61,150) | ||
Equity securities: | ||||
Proceeds from sales | 0 | 3,966 | ||
Purchases | 0 | (93) | ||
Other: | ||||
Net increase in loans | (436,630) | (146,778) | ||
Proceeds from Federal Home Loan Bank stock redemption | 58,799 | 147,200 | ||
Purchases of Federal Reserve Bank and Federal Home Loan Bank stock | (42,663) | (131,461) | ||
Proceeds from settlement of bank owned life insurance | 531 | 1,085 | ||
Purchases of premises and equipment, net | (4,512) | (4,018) | ||
Proceeds from sales of other real estate owned | 1,113 | 1,129 | ||
Net cash (used in) provided by investing activities | (658,654) | 67,369 | ||
Financing activities | ||||
Net increase in deposits | 1,370,363 | 374,955 | ||
Net decrease in short-term borrowings | (471,803) | (428,430) | ||
Proceeds from issuance of subordinated debt | 100,000 | 0 | ||
Payment of subordinated debt issuance costs | (2,178) | 0 | ||
Proceeds from issuance of long-term debt | 0 | 10,598 | ||
Repayments of long-term debt | (85) | (83) | ||
Proceeds from the issuance of shares to employee and other stock plans | 184 | 543 | ||
Cash paid by employer for tax-withholdings on stock issuance | (1,218) | (1,596) | ||
Purchase of treasury stock | (7,980) | 0 | ||
Cash dividends | (35,419) | (34,174) | ||
Net cash provided by (used in) financing activities | 951,864 | (78,187) | ||
Net increase in cash and cash equivalents | 400,617 | 93,141 | ||
Cash and cash equivalents at beginning of period | 216,843 | 180,955 | ||
Cash and cash equivalents at end of period | 617,460 | 274,096 | ||
Cash paid during the period for: | ||||
Interest expense | 26,373 | 42,709 | ||
Income taxes paid, net of refund | 38,137 | 19,945 | ||
Noncash investing activities: | ||||
Loans transferred to other real estate owned | 1,017 | 654 | ||
Acquisitions: | ||||
Fair value of assets acquired | $ 3,328 | $ 0 | ||
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Description of Business |
9 Months Ended | ||
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Sep. 30, 2020 | |||
Description of Business [Abstract] | |||
Description of Business |
NBT Bancorp Inc. (the “Company”) is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in Norwich, New York. The principal assets of the Company consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings, Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The Company’s principal sources of revenue are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings.
The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to customers in its market area, which includes central and upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, the southern coastal Maine area and now entering Connecticut. The Company has been, and intends to continue to be, a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail, commercial and municipal customers.
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Summary of Significant Accounting Policies |
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Sep. 30, 2020 | |||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||
Summary of Significant Accounting Policies |
Basis of Presentation
The accompanying unaudited interim consolidated financial statements include the accounts of NBT Bancorp and its wholly-owned subsidiaries, the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp and its subsidiaries are referred to herein as (“the Company”). The interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in accordance with generally accepted accounting principles in the United States of America (“GAAP”). These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure and there were none identified.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.
Allowance for Credit Losses – Loans
Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). It replaces the incurred loss approach’s threshold that required the recognition of a credit loss when it was probable a loss event was incurred. The allowance for credit losses is a valuation account that is deducted from, or added to, the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is confirmed to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Company historical loss experience was supplemented with peer information when there was insufficient loss data for the Company. Peer selection was based on a review of institutions with comparable loss experience as well as loan yield, bank size, portfolio concentration and geography. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors. Significant management judgment is required at each point in the measurement process.
Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Upon adoption of CECL, management revised the manner in which loans were pooled for similar risk characteristics. Management developed segments for estimating loss based on type of borrower and collateral which is generally based upon federal call report segmentation and have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled.
The following table illustrates the portfolio and class segments for the Company’s loan portfolio in 2020:
Commercial Loans
The Company offers a variety of commercial loan products. The Company’s underwriting analysis for commercial loans typically includes credit verification, independent appraisals, a review of the borrower’s financial condition and a detailed analysis of the borrower’s underlying cash flows.
Commercial and Industrial (“C&I”) – The Company offers a variety of loan options to meet the specific needs of our C&I customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs and are typically collateralized by business assets such as equipment, accounts receivable and perishable agricultural products, which are exposed to industry price volatility. To reduce these risks, management also attempts to obtain personal guarantees of the owners or to obtain government loan guarantees to provide further support.
Paycheck Protection Program (“PPP”) – Section 1102 of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) created the Paycheck Protection Program, a program administered by the Small Business Administration (the “SBA”) to provide loans to small businesses for payroll and other basic expenses during the COVID-19 pandemic. The Company has participated in the PPP as a lender. These loans are eligible to be forgiven if certain conditions are satisfied and are fully guaranteed by the SBA. Additionally, loan payments will also be deferred for six months of the loan. The PPP commenced on April 3, 2020 and was available to qualified borrowers through August 8, 2020, or as long as the appropriated funding was available. No collateral or personal guarantees are required. Neither the government nor lenders are permitted to charge the recipients any fees. The Company began accepting applications from qualified borrowers on April 3, 2020 and as of September 30, 2020 processed approximately 3,000 loans totaling over $548 million in relief.
Commercial Real Estate (“CRE”) – The Company offers CRE loans to finance real estate purchases, refinancing’s, expansions and improvements to commercial and agricultural properties. CRE loans are loans that are secured by liens on the real estate, which may include both owner-occupied and nonowner-occupied properties, such as apartments, commercial structures, health care facilities and other facilities. The Company’s underwriting analysis includes credit verification, independent appraisals, a review of the borrower’s financial condition and a detailed analysis of the borrower’s underlying cash flows. These loans are typically originated in amounts of no more than 80% of the appraised value of the property. Government loan guarantees may be obtained to provide further support for agricultural property.
Consumer Loans
The Company offers a variety of Consumer loan products including Auto and Other Consumer loans.
Auto – The Company provides both direct and indirect financing of automobiles (“Auto”). The Company maintains relationships with many dealers primarily in the communities that we serve. Through these relationships, the Company primarily finances the purchases of automobiles indirectly through dealer relationships. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from to six years, based upon the nature of the collateral and the size of the loan.
Other Consumer – The Other Consumer loan segment consists primarily of specialty lending loans and direct consumer loans. The Company offers unsecured specialty lending consumer loans across a national footprint originated through our relationships with national technology-driven consumer lending companies to finance such things as dental and medical procedures, K-12 tuition, solar energy installations and other consumer purpose loans. Advances of credit through this specialty lending business line are subject to the Company’s underwriting standards including criteria such as FICO score and debt to income thresholds. The Company offers a variety of direct consumer installment loans to finance various personal expenditures. In addition to installment loans, the Company also offers personal lines of credit, overdraft protection, debt consolidation, education and other uses. Consumer installment loans carry a fixed rate of interest with principal repayment terms typically ranging from to fifteen years, based upon the nature of the collateral and the size of the loan. Consumer installment loans are often secured with collateral consisting of a perfected lien on the asset being purchased or a perfected lien on a consumer’s deposit account. Risk is reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower’s financial condition and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate.
Residential
Residential loans consist primarily of loans secured by a first or second mortgage on primary residences, home equity loans and lines of credit in first and second lien positions and residential construction loans. We originate adjustable-rate and fixed rate, one-to-four-family residential loans for the construction or purchase of a residential property or the refinancing of a mortgage. These loans are collateralized by properties located in the Company’s market area. Loans on one-to-four-family residential are generally originated in amounts of no more than 85% of the purchase price or appraised value (whichever is lower) or have private mortgage insurance. Mortgage title insurance and hazard insurance are normally required. Construction loans have a unique risk because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period. For home equity loans, consumers are able to borrow up to 85% of the equity in their homes and are generally tied to Prime with a ten-year draw followed by a fifteen-year amortization. These loans carry a higher risk than first mortgage residential loans as they are often in a second position with respect to collateral.
For the 2019 disclosures for the allowance for credit losses, the loan portfolio was segmented into the Commercial, Consumer and Residential Real Estate portfolio segments. The Commercial segment was further pooled into three classes: Commercial and Industrial, Commercial Real Estate and Business Banking. The Consumer segment was further pooled into three classes: Indirect Auto, Specialty Lending and Direct. For a description of these portfolio segments’ and classes’ risk characteristics, see Note 5 Allowance for Loan Losses and Credit Quality of Loans to the consolidated financial statements presented in our 2019 Annual Report on Form 10-K.
Historical credit loss experience for both the Company and segment-specific peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate (“PD”) curves through the use of segment-specific loss given default (“LGD”) risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each asset class, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical PDR curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.
Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using externally developed economic forecasts which are probabilistically weighted to reflect potential forecast inaccuracy and model limitations. These forecasts are applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology.
The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an econometric, discounted PD/LGD modeling methodology in which distinct, segment-specific multi-variate regression models are applied to multiple, probabilistically weighted external economic forecasts. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for modeled defaults and expected prepayments and discounted at the loan-level stated interest rate. 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 (“TDR”) 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.
After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date. Qualitative considerations include limitations inherent in the quantitative model; trends experienced in nonperforming and delinquent loans; changes in value of underlying collateral; changes in lending policies and procedures; nature and composition of loans; portfolio concentrations that may affect loss experience across one or more components of the portfolio; the experience, ability and depth of lending management and staff; the Company’s credit review system; and the effect of external factors; such as competition, legal and regulatory requirements.
Loans that do not share risk characteristics and meet materiality criteria are evaluated on an individual basis and are excluded from the pooled evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. If the loan is not collateral dependent, the allowance for credit losses related to individually assessed loans is based on discounted expected cash flows using the loan’s initial effective interest rate. Generally, individually assessed loans are collateral dependent.
A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties is considered to be a TDR. The allowance for credit losses on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
The Company estimates expected credit losses over the contractual period in which the Company has exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as an expense in other noninterest expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives. Estimating credit losses on unfunded commitments requires the Bank to consider the following categories of off-balance sheet credit exposure: unfunded commitments to extend credit, unfunded lines of credit, and standby letters of credit. Each of these unfunded commitments is then analyzed for a probability of funding to calculate a probable funding amount. The life of loan loss factor by related portfolio segment from the loan allowance for credit loss calculation is then applied to the probable funding amount to calculate a reserve on unfunded commitments.
Allowance for Credit Losses – Held-to-Maturity (“HTM”) Debt Securities
The Company’s HTM debt securities are also required to utilize the CECL approach to estimate expected credit losses. Management measures expected credit losses on HTM debt securities on a collective basis by major security types that share similar risk characteristics, such as (as applicable): internal or external (third-party) credit score or credit ratings, risk ratings or classification, financial asset type, collateral type, size, effective interest rate, term, geographical location, industry of the borrower, vintage, historical or expected credit loss patterns, and reasonable and supportable forecast periods. Management classifies the HTM portfolio into the following major security types: U.S. government agency or U.S. government sponsored mortgage-backed and collateralized mortgage obligations securities, and state and municipal debt securities.
The mortgage-backed and collateralized mortgage obligations HTM securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of no credit losses. Therefore, the Company did not record a credit loss for these securities.
State and municipal bonds carry a Moody’s rating of A to AAA. In addition, the Company has a limited amount of New York state local municipal bonds that are not rated. The estimate of expected credit losses on the HTM portfolio is based on the expected cash flows of each individual CUSIP over its contractual life and considers historical credit loss information, current conditions and reasonable and supportable forecasts. Given the rarity of municipal defaults and losses, the Company utilized Moody’s Municipal Loss Forecast Model as the sole source of municipal default and loss rates which provides decades of data across all municipal sectors and geographies. As with the loan portfolio, cash flows are forecast over a 6-quarter period under various, weighted economic conditions, with a reversion to long-term average economic conditions over a 4-quarter period on a straight-line basis. Management may exercise discretion to make adjustments based on environmental factors. As of March 31, 2020, June 30, 2020 and September 30, 2020, the Company determined that the expected credit loss on its municipal bond portfolio was de minimis, and therefore, an allowance for credit losses was not recorded.
Allowance for Credit Losses – Available-for Sales (“AFS”) Debt Securities
The impairment model for AFS debt securities differs from the CECL approach utilized by HTM debt securities because AFS debt securities are measured at fair value rather than amortized cost. For AFS debt securities in an unrealized loss position, the Bank first assesses whether 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 security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses 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 allowance for credit losses is recognized in other comprehensive income.
Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS debt security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2020, June 30, 2020 and September 30, 2020, the Company determined that the unrealized loss positions in the AFS debt securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.
Accrued Interest Receivable
Upon adoption of CECL on January 1, 2020, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due and therefore the amount of such write offs are immaterial. For loans given short-term loan modifications to assist borrowers during the COVID-19 national emergency, this accounting policy would not apply as the length of time between interest recognition and the write-off of uncollectible interest could exceed 120 days. Therefore, the Company estimated an allowance for credit losses for accrued interest receivable related to loans with short-term modifications due to the pandemic. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities.
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Recent Accounting Pronouncements |
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Sep. 30, 2020 | |||
Recent Accounting Pronouncements [Abstract] | |||
Recent Accounting Pronouncements |
Recently Adopted Accounting Standards
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all related subsequent amendments thereto. ASU 2016-13 introduces new guidance that make substantive changes to the accounting for credit losses. ASU 2016-13 introduces the CECL model, which applies to financial assets subject to credit losses and measured at amortized cost, as well as certain off-balance sheet credit exposures. This includes loans, loan commitments, standby letters of credit, net investments in leases recognized by a lessor and HTM debt securities. The CECL model requires an entity to estimate credit losses expected over the life of an exposure, considering information about historical events, current conditions and reasonable and supportable forecasts and is generally expected to result in earlier recognition of credit losses. ASU 2016-13 also modifies certain provisions of the current other-than-temporary impairment model for AFS debt securities. Credit losses on AFS debt securities will be limited to the difference between the security’s amortized cost basis and its fair value and will be recognized through an allowance for credit losses rather than as a direct reduction in amortized cost basis. ASU 2016-13 also provides for a simplified accounting model for purchased financial assets with more than insignificant credit deterioration since their origination. ASU 2016-13 requires expanded disclosures including, but not limited to, (1) information about the methods and assumptions used to estimate expected credit losses, including changes in the factors that influenced management’s estimate and the reasons for those changes, (2) financing receivables and net investment in leases measured at amortized cost, further disaggregation of information about the credit quality of those assets and (3) a rollforward of the allowance for credit losses for HTM and AFS securities. The standard also changes the accounting for purchased credit-impaired debt securities and loans. ASU 2016-13 was effective for the Company on January 1, 2020. Management expects that the CECL model may create more volatility in the level of our allowance for loan losses from quarter to quarter as changes in the level of allowance for loan losses will be dependent upon, among other things, macroeconomic forecasts and conditions, loan portfolio volumes and credit quality.
The Company adopted CECL on January 1, 2020 (“Day 1”) using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for 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 GAAP. The Company recorded a net decrease to retained earnings of $4.3 million as of January 1, 2020 for the cumulative effect of adopting ASC 326. The transition adjustment includes a $3.0 million impact due to the allowance for credit losses on loans, $2.8 million impact due to the allowance for credit losses on off-balance sheet credit exposure, and $1.5 million impact to the deferred tax asset. The Company did not record an allowance for HTM debt securities on January 1, 2020 as the amount of credit risk was deemed immaterial. The Company did not record an allowance for credit losses on its AFS debt securities under the newly codified AFS debt security impairment model, as the majority of these securities are government agency-backed securities for which the risk of loss is minimal. Refer to Note 4 Securities and Note 5 Allowance for Credit Losses and Credit Quality of Loans to the Company’s unaudited interim consolidated financial statements included in this Form 10-Q for more information.
In December 2018, the Office of Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period.
On March 22, 2020, a statement was issued by the Company’s banking regulators and titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the recent coronavirus (“COVID-19”) pandemic. Additionally, Section 4013 of the CARES Act, which was enacted on March 27, 2020, further provides that a qualified loan modification is exempt by law from classification as a troubled debt restructuring as defined by GAAP. To be eligible, each loan modification must be (1) related to the COVID-19 event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the National Emergency or (b) December 31, 2020. On August 3, 2020, the Federal Financial Institutions Examination Council (“FFIEC”) issued a joint statement on additional loan accommodations related to COVID-19. The joint statement clarifies that for loan modifications in which Section 4013 is being applied, subsequent modifications could also be eligible under Section 4013. Accordingly, the Company is offering modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment. Accordingly, the Company does not account for such loan modifications as TDRs. As of September 30, 2020, there were $233 million in loans in modification programs related to COVID-19.
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 provisions of ASU 2018-13 modify the disclosure requirements on fair value measurements in ASC 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ASU 2018-13 is effective January 1, 2020. The adoption did not have a material impact on the consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 amends existing guidance and requires a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize and which costs to expense. ASU 2018-15 is effective for the Company on January 1, 2020. The adoption did not have a material impact on the consolidated financial statements and related disclosures.
Accounting Standards Issued Not Yet Adopted
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides temporary optional expedients and exceptions to the existing guidance for applying GAAP to affected contract modifications and hedge accounting relationships in the transition away from LIBOR or other interbank offered rate on financial reporting. The guidance also allows a one-time election to sell and/or reclassify to AFS or trading HTM debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective March 12, 2020 through December 31, 2022. The Company is evaluating the impact of adopting the new guidance on the consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods. The amendments in this ASU are effective for the Company on January 1, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.
In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans - General (Subtopic 715-20), provides changes to the disclosure requirements for defined benefit plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are a result of the disclosure framework project that focuses on improvements to the effectiveness of disclosures in the notes to financial statements. The amendments remove and add certain disclosure requirements. The disclosure requirements being removed relating to public companies are: (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, (2) the amount and timing of plan assets expected to be returned to the employer, (3) the 2001 disclosure requirement relating to Japanese Welfare Pension Insurance Law, (4) related party disclosures about the amount of future annual benefits covered by insurance, and (5) the effects of a one-percentage-point change in assumed health care cost trends on the benefit cost and obligation. The disclosure requirements being added relating to public companies are (1) the weighted-average interest crediting rates for cash balance plans, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. ASU 2018-14 is effective for the Company on January 1, 2021 and early adoption is permitted. The amendments should be applied retrospectively and the Company does not expect the guidance to have a material impact on its disclosures to the consolidated financial statements.
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Securities |
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities |
The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:
There was no allowance for credit losses on AFS securities as of the quarter ending September 30, 2020.
The components of net realized gains (losses) on AFS securities are as follows. These amounts were reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings.
Included in net realized gains (losses) on AFS securities, the Company recorded gains from calls of approximately $3 thousand for the nine months ended September 30, 2020. There were no gains from calls for the three months ended September 30, 2020. The Company recorded gains from calls of approximately $20 thousand for the three months ended September 30, 2019 and $25 thousand for the nine months ended September 30, 2019.
The amortized cost, estimated fair value and unrealized gains (losses) of securities HTM are as follows:
At September 30, 2020 and December 31, 2019, all of the mortgaged-backed HTM securities were comprised of U.S. government agency and Government-sponsored enterprises securities. There was no allowance for credit losses on HTM securities as of September 30, 2020.
Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $11 thousand for the three months ended September 30, 2020 and $15 thousand for the nine months ended September 30, 2020. Included in net realized gains (losses), the Company recorded gains from calls on HTM securities of approximately $4 thousand for the three and nine month period ended September 30, 2019.
During the nine months ended September 30, 2020, the Company sold HTM securities with an amortized cost of $1.0 million and resulted in a realized loss of $1 thousand. Due to significant deterioration in the creditworthiness of the issuer of the HTM securities, the circumstances caused the Company to change its intent to hold the HTM securities sold to maturity, which did not affect the Company’s intent to hold the remainder of the HTM portfolio to maturity. There were no sales of HTM securities during the three and nine month periods ended September 30, 2019.
AFS and HTM securities with amortized costs totaling $1.4 billion at September 30, 2020 and $1.3 billion at December 31, 2019 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at September 30, 2020 and December 31, 2019, AFS and HTM securities with an amortized cost of $227.4 million and $189.8 million, respectively, were pledged as collateral for securities sold under repurchase agreements.
The following tables set forth information with regard to gains and losses on equity securities:
Included in the net realized gains and (losses) recognized on equity securities during the three and nine months ended September 30, 2019, the Company recorded a $4.0 million gain from the sale of Visa Class B common stock, which had no readily determinable fair value at the time of the sale. As of September 30, 2020 and December 31, 2019, the carrying value of equity securities without readily determinable fair values was $4.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of September 30, 2020 and 2019. There were no impairments, downward or upward adjustments recognized for equity securities without readily determinable fair values during the three and nine months ended September 30, 2020 and 2019.
The following tables set forth information with regard to contractual maturities of debt securities at September 30, 2020:
Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
Except for U.S. Government securities and Government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at September 30, 2020 and December 31, 2019.
The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded at September 30, 2020, segregated according to the length of time the securities had been in a continuous unrealized loss position:
The Company does not believe the AFS securities that were in an unrealized loss position as of September 30, 2020, which consisted of 16 individual securities, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of September 30, 2020, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. AIR on AFS debt securities totaled $2.6 million at September 30, 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets.
None of the bank’s HTM debt securities were past due or on non-accrual status as of the quarter ending September 30, 2020. There was no accrued interest reversed against interest income for the quarter ended September 30, 2020 as all securities remained on accrual status. In addition, there were no collateral dependent HTM debt securities as of September 30, 2020. 53% of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2020. The remaining HTM debt securities at September 30, 2020 were comprised of state and municipal obligations with bond ratings of A to AAA. Utilizing the CECL approach, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of September 30, 2020. AIR on HTM debt securities totaled $2.7 million at September 30, 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets.
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Allowance for Credit Losses and Credit Quality of Loans |
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Allowance for Credit Losses and Credit Quality of Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses and Credit Quality of Loans |
As previously mentioned in Note 2 Summary of Significant Accounting Policies, the Company’s January 1, 2020 adoption of CECL resulted in a significant change to our methodology for estimating the allowance for credit losses since December 31, 2019. Portfolio segmentation has been redefined under CECL and therefore prior year tables are presented separately.
The Day 1 increase in the allowance for credit loss on loans relating to adoption of ASU 2016-13 was $3.0 million, which decreased retained earnings by $2.3 million and increased the deferred tax asset by $0.7 million.
There were no new loans purchased with credit deterioration during the nine months ended September 30, 2020. During the third quarter of 2020, the Company purchased $46.4 million of consumer loans at a 1% discount. The allowance for credit losses recorded for these loans on the purchase date was $3.2 million. The Company made a policy election to report AIR in the other assets line item on the balance sheet. AIR on loans totaled $25.5 million at September 30, 2020 and was included in the allowance for loan credit losses to estimate the impact of accrued interest receivable related to loans with short-term modifications due to the pandemic as the length of time between interest recognition and the write-off of uncollectible interest could exceed 120 days which exempts these loans from our policy election for accrued interest receivable. The estimated allowance for credit losses related to AIR at September 30, 2020 was $0.5 million.
The Day 1 and September 30, 2020 allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the measurement. For periods beyond the 6-quarter forecast, the model reverted to long-term economic conditions over a 4-quarter reversion period on a straight-line basis.
The quantitative model as of June 30, 2020 incorporated a baseline economic outlook sourced from a reputable third-party that reflected continued economic deterioration from the March 31, 2020 forecasts, with unemployment peaking in the quarter of measurement but sharply improving in the third quarter 2020, while remaining elevated well above the pre-COVID-19 pandemic levels for the entire forecast period and into 2023. National GDP is forecast to rebound strongly in the third quarter 2020 followed by moderately negative growth in the fourth quarter 2020 with increasing growth through 2022 and stabilization in 2023. The June 30, 2020 allowance for credit losses calculation incorporated a 6-quarter forecast period with a 4-quarter reversion period to long-term economic conditions on a straight-line basis. A short-term reduction in prepayment and curtailment speeds was also applied to more reasonably model payment behavior during the COVID-19 national emergency. Additionally, downside and upside scenarios were incorporated and weighted, along with the baseline outlook, to accommodate other potential economic conditions in the quantitative model. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of June 30, 2020. Additional adjustments were made for COVID-19 related factors were not incorporated in the forecasts, such as the mitigating impact of unprecedented stimulus, including direct payments to individuals, increased unemployment benefits, deferral/modification initiatives and various government-sponsored loan programs. The commercial & industrial and consumer segment models were based upon percent change in unemployment, with forecast values as of June 30, 2020, well outside the observed historical experience. Therefore, adjustment was required to produce outputs more aligned with default expectations given the forecast economic environment. These factors were considered through a separate quantitative process and incorporated into the estimate for allowance for credit losses at June 30, 2020.
The quantitative model as of September 30, 2020 incorporated a baseline economic outlook sourced from a reputable third-party which reflected an unemployment rate environment well above pre-COVID-19 levels for the entire forecast period and a gradual return to low single digits by the end of 2023. Northeast U.S. GDP was expected to grow moderately over the forecast period after a strong rebound in the third quarter of 2020 with stabilization by the end of 2023. Key assumptions in the baseline economic outlook included a large and effective stimulus package by September 30, 2020 with no secondary surge in COVID-19 cases or pandemic-related business closures. A downside scenario was incorporated and equally weighted, along with the baseline outlook in the quantitative model, which assumed deteriorated economic conditions from the base model as a stimulus package was not in place by the end of the third quarter and the related impact on credit losses is not yet known. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of September 30, 2020. Additional adjustments were made for COVID-19 related factors not incorporated in the forecasts, such as the mitigating impact of unprecedented stimulus in 2020, including direct payments to individuals, increased unemployment benefits, deferral/modification initiatives and various government-sponsored loan programs. The commercial & industrial and consumer segment models were based upon percent change in unemployment, with forecast values as of September 30, 2020, well outside the observed historical experience. Therefore, adjustments were required to produce outputs more aligned with default expectations given the forecast economic environment. These factors were considered through a separate quantitative process and incorporated into the estimate for allowance for credit losses at September 30, 2020.
The following tables present the activity in the allowance for credit losses by portfolio segment:
The increase in the allowance for credit losses from June 30, 2020 to September 30, 2020 was primarily due to the specific allowance for credit losses on individually analyzed credits and a change in loan portfolio mix shift within the consumer portfolio as indirect auto balances declined and other consumer balances increased. The increase in the allowance for credit losses from Day 1 to September 30, 2020 was primarily due to the deterioration of macroeconomic factors surrounding the COVID-19 pandemic.
Individually Evaluated Loans
As of September 30, 2020, there were two relationships identified to be evaluated for loss on an individual basis which had an amortized cost basis of $10.9 million. The allowance for credit loss was $3.0 million and was determined by an estimate of the fair value of the collateral which consisted of business assets (accounts receivable, inventory and machinery, real estate and equipment). As of June 30, 2020, there were no relationships identified to be evaluated for loss on an individual basis. As of Day 1, there were no relationships identified to be evaluated for loss on an individual basis.
The following table sets forth information with regard to past due and nonperforming loans by loan segment:
As of September 30, 2020, there were no loans in non-accrual without an allowance for credit losses.
Credit Quality Indicators
The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses on, among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading system enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, enabling recognition and response to problem loans and potential problem loans.
Commercial Grading System
For C&I, PPP and CRE loans, the Company uses a grading system that relies on quantifiable and measurable characteristics when available. This includes comparison of financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to stated repayment terms and industry averages. Some grading factors are necessarily more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and Pass. The increase in non-pass credits from December 31, 2019 was primarily due to the Company’s proactive approach to downgrade loans that were both in payment deferral due to the COVID-19 pandemic and in higher risk industries such as entertainment, restaurants, retail, healthcare and accommodations.
Doubtful
A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Nonaccrual treatment is required for Doubtful assets because of the high probability of loss.
Substandard
Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by bank management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets in the aggregate will have a distinct potential for loss, an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard.
Special Mention
Special Mention loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard classification. Borrowers may be experiencing adverse operating trends (i.e., declining revenues or margins) or may be struggling with an ill-proportioned balance sheet (i.e., increasing inventory without an increase in sales, high leverage, tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a Special Mention rating. Although a Special Mention loan has a higher probability of default than a Pass asset, its default is not imminent.
Pass
Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants and payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including PPP loans.
Consumer and Residential Grading System
Consumer and Residential loans are graded as either Nonperforming or Performing.
Nonperforming
Nonperforming loans are loans that are 1) over 90 days past due and interest is still accruing or 2) on nonaccrual status.
Performing
All loans not meeting any of the above criteria are considered Performing.
The following tables illustrate the Company’s credit quality by loan class by vintage
Troubled Debt Restructuring
When the Company modifies a loan in a troubled debt restructuring, such modifications generally include one or a combination of the following: an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; temporary reduction in the interest rate; or change in scheduled payment amount. Residential and Consumer TDRs occurring during 2020 were due to the reduction in the interest rate or extension of the term.
An allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of the expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs. If management determines that the value of the modified loan is less than the recorded investment in the loan an impairment charge would be recorded.
The Company began offering loan modifications to assist borrowers during the COVID-19 national emergency. The CARES Act, along with a joint agency statement issued by banking regulatory agencies, provides that modifications made in response to COVID-19 do not need to be accounted for as a TDR. The Company evaluated the modification programs provided to its borrowers and has concluded the modifications were generally made in accordance with the CARES Act guidance to borrowers who were in good standing prior to the COVID-19 pandemic and are not required to be designated as TDRs. See Note 3 Recent Accounting Pronouncements for more information.
The following tables illustrate the recorded investment and number of modifications designated as TDRs, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:
The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:
Allowance for Loan Losses
Prior to the adoption of ASU 2016-13 on January 1, 2020, the Company’s calculated allowance for loan losses used the incurred loss methodology. The following tables are disclosures related to the allowance for loan losses in prior periods.
The following table illustrates the changes in the allowance for loan losses by our portfolio segments:
The following table illustrates the allowance for loan losses and the recorded investment by portfolio segments:
The following tables set forth information with regard to past due and nonperforming loans by loan class:
The following table provides information on impaired loans specifically evaluated for impairment:
The following table summarizes the average recorded investments on loans specifically evaluated for impairment and the interest income recognized:
The following tables illustrate the Company’s credit quality by loan class:
The following table illustrates the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:
The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:
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Subordinated Debt |
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Subordinated Debt [Abstract] | |||||||||||||||||||||||
Subordinated Debt |
On June 23, 2020, the Company issued $100.0 million aggregate principal amount of 5.00% fixed-to-floating rate subordinated notes due 2030. The subordinated notes, which qualifies as Tier 2 capital, bear interest at an annual rate of 5.00%, payable semi-annually in arrears commencing on January 1, 2021, and a floating rate of interest equivalent to the three-month Secured Overnight Financing Rate (“SOFR”) plus a spread of 4.85%, payable quarterly in arrears commencing on October 1, 2025. The subordinated notes issuance costs of $2.2 million are being amortized on a straight line basis into interest expense over five years.
The Company may redeem the subordinated notes (1) in whole or in part beginning with the interest payment date of July 1, 2025, and on any interest payment date thereafter or (2) in whole but not in part upon the occurrence of a “Tax Event”, a “Tier 2 Capital Event” or in the event the Company is required to register as an investment company pursuant to the Investment Company Act of 1940, as amended. The redemption price for any redemption is 100% of the principal amount of the subordinated notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Any redemption of the subordinated notes will be subject to the receipt of the approval of the Board of Governors of the Federal Reserve System to the extent then required under applicable laws or regulations, including capital regulations.
The following table summarizes the Company’s subordinated debt:
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Defined Benefit Post-Retirement Plans |
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Defined Benefit Post-Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Post-Retirement Plans |
The Company has a qualified, noncontributory, defined benefit pension plan (“the Plan”) covering substantially all of its employees at September 30, 2020. Benefits paid from the plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks and mutual funds.
In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. The Company also assumed supplemental retirement plans for former executives of Alliance Financial Corporation (“Alliance”) when the Company acquired Alliance.
These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits”.
In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. In addition, the Company assumed post-retirement medical life insurance benefits for certain Alliance employees, retirees and their spouses, if applicable, in the Alliance acquisition. These post-retirement benefits are referred to herein as “Other Benefits”.
The Company made no voluntary contributions to the pension and other benefits plans during the three and nine months ended September 30, 2020 and 2019.
The components of expense for Pension Benefits and Other Benefits are set forth below:
The service cost component of the net periodic (benefit) cost is included in Salaries and Employee Benefits and the interest cost, expected return on plan assets and net amortization components are included in Other Noninterest Expense on the unaudited interim consolidated statements of income.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if the securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).
The following is a reconciliation of basic and diluted EPS for the periods presented in the unaudited interim consolidated statements of income:
There were 3,250 stock options for the three and nine months ended September 30, 2020, that were not considered in the calculation of diluted EPS since the stock options’ exercise price was greater than the average market price during these periods.
There were 1,500 stock options for the three and nine months ended September 30, 2019, that were not considered in the calculation of diluted EPS since the stock options’ exercise price was greater than the average market price during these periods.
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Reclassification Adjustments Out of Other Comprehensive Income (Loss) |
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Reclassification Adjustments Out of Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Adjustments Out of Other Comprehensive Income (Loss) |
The following table summarizes the reclassification adjustments out of AOCI:
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities |
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to certain fixed rate borrowings. The Company also has interest rate derivatives that result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.
Derivatives Not Designated as Hedging Instruments
The Company enters into interest rate swaps to facilitate customer transactions and meet their financing needs. These swaps are considered derivatives, but are not designated in hedging relationships. These instruments have interest rate and credit risk associated with them. To mitigate the interest rate risk, the Company enters into offsetting interest rate swaps with counterparties. The counterparty swaps are also considered derivatives and are also not designated in hedging relationships. Interest rate swaps are recorded within other assets or other liabilities on the consolidated balance sheet at their estimated fair value. Changes to the fair value of assets and liabilities arising from these derivatives are included, net, in other operating income in the consolidated statement of income.
As of September 30, 2020, the Company had sixteen risk participation agreements with financial institution counterparties for interest rate swaps related to participated loans. The fair values included in other assets and other liabilities on the unaudited interim consolidated balance sheet applicable to these agreements amounted to $350 thousand and $152 thousand, respectively as of September 30, 2020. As of December 31, 2019, the Company had fifteen risk participation agreements with financial institution counterparties for interest rate swaps related to participated loans. The fair values included in other assets and other liabilities on the unaudited interim consolidated balance sheet applicable to these agreements amounted to $112 thousand and $82 thousand, respectively. Risk participation agreements provide credit protection to the financial institution that originated the swap transaction should the borrower fail to perform on its obligation. The Company enters into both risk participation agreements in which it purchases credit protection from other financial institutions and those in which it provides credit protection to other financial institutions.
Derivatives Designated as Hedging Instruments
The Company has entered into interest rate swaps to modify the interest rate characteristics of certain short-term Federal Home Loan Bank (“FHLB”) advances from variable rate to fixed rate in order to reduce the impact of changes in future cash flows due to market interest rate changes. These agreements are designated as cash flow hedges.
The following table depicts the fair value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of risk participation agreements:
For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s short-term rate borrowings. During the next twelve months, the Company estimates that an additional $124 thousand will be reclassified from AOCI as a reduction to interest expense.
The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income:
The following table indicates the gain or loss recognized in income on derivatives not designated as a hedging relationship:
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Fair Value Measurements and Fair Value of Financial Instruments |
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Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Fair Value of Financial Instruments |
GAAP states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, many other sovereign government obligations, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not adjust the quoted prices for such instruments.
The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid agency securities, less liquid listed equities, state, municipal and provincial obligations and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). Other investment securities are reported at fair value utilizing Level 1 and Level 2 inputs. The prices for Level 2 instruments are obtained through an independent pricing service or dealer market participants with whom the Company has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the methodologies used in pricing the securities by its third-party providers.
Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions. Valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate will be used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets and changes in financial ratios or cash flows.
The following tables set forth the Company’s financial assets and liabilities measured on a recurring basis that were accounted for at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
GAAP requires disclosure of assets and liabilities measured and recorded at fair value on a non-recurring basis such as goodwill, loans held for sale, other real estate owned, collateral-dependent impaired loans, mortgage servicing rights and HTM securities. The non-recurring fair value measurements recorded during the three and nine month periods ended September 30, 2020 and the year ended December 31, 2019 were related to impaired loans, write-downs of other real estate owned and write-down of branch assets to fair value. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated collateral dependent loans. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 10% to 50%. Based on the valuation techniques used, the fair value measurements for collateral dependent individually evaluated loans are classified as Level 3.
As of September 30, 2020 the Company had collateral dependent individually evaluated loans with a carrying value of $10.9 million, which had an estimated allowance for credit loss of $3.0 million. As of December 31, 2019 the Company had no collateral dependent loans.
During the nine months ended September 30, 2020, the Company recorded a $0.5 million write-off of branch locations due to a pending disposition of the locations. During the three and nine months ended September 30, 2019, the Company recorded a $1.0 million write-down of a branch location to fair value of $0.2 million due to a pending disposition of the location.
The following table sets forth information with regard to estimated fair values of financial instruments. This table excludes financial instruments for which the carrying amount approximates fair value. Financial instruments for which the fair value approximates carrying value include cash and cash equivalents, AFS securities, equity securities, accrued interest receivable, non-maturity deposits, short-term borrowings, accrued interest payable and derivatives.
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 the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s 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 anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, the Company has a substantial wealth operation that contributes net fee income annually. The wealth management operation is not considered a financial instrument and its value has not been incorporated into the fair value estimates. Other significant assets and liabilities include the benefits resulting from the low-cost funding of deposit liabilities as compared to the cost of borrowing funds in the market and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimate of fair value.
HTM Securities
The fair value of the Company’s HTM securities is primarily measured using information from a third-party pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.
Net Loans
Net loans include portfolio loans and loans held for sale. Loans were first segregated by type and then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments which also includes credit risk, illiquidity risk and other market factors to calculate the exit price fair value in accordance with ASC 820.
Time Deposits
The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.
Long-Term Debt
The fair value of long-term debt was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments.
Subordinated Debt
The fair value of subordinated debt has been measured using the observable market price as of the period reported.
Junior Subordinated Debt
The fair value of junior subordinated debt has been estimated using a discounted cash flow analysis.
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Commitments and Contingencies |
9 Months Ended | ||
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Sep. 30, 2020 | |||
Commitments and Contingencies [Abstract] | |||
Commitments and Contingencies |
The Company is a party to certain financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused lines of credit, standby letters of credit and certain agricultural real estate loans sold to investors with recourse, with the sold portion having a government guarantee that is assignable back to the Company upon repurchase of the loan in the event of default. The Company’s exposure to credit loss in the event of nonperformance by the other party to the commitments to extend credit, unused lines of credit, standby letters of credit and loans sold with recourse is represented by the contractual amount of those investments. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s credit worthiness. Commitments to extend credit and unused lines of credit totaled $2.1 billion at September 30, 2020 and $1.9 billion at December 31, 2019.
Since many loan commitments, standby letters of credit and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. The Company does not issue any guarantees that would require liability-recognition or disclosure, other than its standby letters of credit.
The Company guarantees the obligations or performance of customers by issuing standby letters of credit to third-parties. These standby letters of credit are frequently issued in support of third-party debt, such as corporate debt issuances, industrial revenue bonds and municipal securities. The risk involved in issuing standby letters of credit is essentially the same as the credit risk involved in extending loan facilities to customers and letters of credit are subject to the same credit origination, portfolio maintenance and management procedures in effect to monitor other credit and off-balance sheet products. Typically, these instruments have one year expirations with an option to renew upon annual review; therefore, the total amounts do not necessarily represent future cash requirements. Standby letters of credit totaled $52.3 million at September 30, 2020 and $34.5 million at December 31, 2019. As of September 30, 2020 and December 31, 2019, the fair value of the Company’s standby letters of credit was not significant.
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Description of Business (Policies) |
9 Months Ended |
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Sep. 30, 2020 | |
Description of Business [Abstract] | |
Nature of Operations |
NBT Bancorp Inc. (the “Company”) is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in Norwich, New York. The principal assets of the Company consist of all of the outstanding shares of common stock of its subsidiaries, including: NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings, Inc. (“NBT Holdings”), CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The Company’s principal sources of revenue are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings.
The Company’s business, primarily conducted through the Bank, consists of providing commercial banking, retail banking and wealth management services primarily to customers in its market area, which includes central and upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, the southern coastal Maine area and now entering Connecticut. The Company has been, and intends to continue to be, a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, providing a broad array of banking and financial services to retail, commercial and municipal customers.
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Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2020 | |||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||
Basis of Presentation |
Basis of Presentation
The accompanying unaudited interim consolidated financial statements include the accounts of NBT Bancorp and its wholly-owned subsidiaries, the Bank, NBT Financial and NBT Holdings. Collectively, NBT Bancorp and its subsidiaries are referred to herein as (“the Company”). The interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in accordance with generally accepted accounting principles in the United States of America (“GAAP”). These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. All material intercompany transactions have been eliminated in consolidation. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure and there were none identified.
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Use of Estimates in the Preparation of Financial Statements |
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ from those estimates and such differences could be material to the financial statements.
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Credit Losses on Financial Instruments |
Allowance for Credit Losses – Loans
Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”) approach requires an estimate of the credit losses expected over the life of a loan (or pool of loans). It replaces the incurred loss approach’s threshold that required the recognition of a credit loss when it was probable a loss event was incurred. The allowance for credit losses is a valuation account that is deducted from, or added to, the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes a loan balance is confirmed to be uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Company historical loss experience was supplemented with peer information when there was insufficient loss data for the Company. Peer selection was based on a review of institutions with comparable loss experience as well as loan yield, bank size, portfolio concentration and geography. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level or term as well as changes in environmental conditions, such as changes in unemployment rates, production metrics, property values, or other relevant factors. Significant management judgment is required at each point in the measurement process.
Portfolio segment is defined as the level at which an entity develops and documents a systematic methodology to determine its allowance for credit losses. Upon adoption of CECL, management revised the manner in which loans were pooled for similar risk characteristics. Management developed segments for estimating loss based on type of borrower and collateral which is generally based upon federal call report segmentation and have been combined or sub-segmented as needed to ensure loans of similar risk profiles are appropriately pooled.
The following table illustrates the portfolio and class segments for the Company’s loan portfolio in 2020:
Commercial Loans
The Company offers a variety of commercial loan products. The Company’s underwriting analysis for commercial loans typically includes credit verification, independent appraisals, a review of the borrower’s financial condition and a detailed analysis of the borrower’s underlying cash flows.
Commercial and Industrial (“C&I”) – The Company offers a variety of loan options to meet the specific needs of our C&I customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs and are typically collateralized by business assets such as equipment, accounts receivable and perishable agricultural products, which are exposed to industry price volatility. To reduce these risks, management also attempts to obtain personal guarantees of the owners or to obtain government loan guarantees to provide further support.
Paycheck Protection Program (“PPP”) – Section 1102 of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) created the Paycheck Protection Program, a program administered by the Small Business Administration (the “SBA”) to provide loans to small businesses for payroll and other basic expenses during the COVID-19 pandemic. The Company has participated in the PPP as a lender. These loans are eligible to be forgiven if certain conditions are satisfied and are fully guaranteed by the SBA. Additionally, loan payments will also be deferred for six months of the loan. The PPP commenced on April 3, 2020 and was available to qualified borrowers through August 8, 2020, or as long as the appropriated funding was available. No collateral or personal guarantees are required. Neither the government nor lenders are permitted to charge the recipients any fees. The Company began accepting applications from qualified borrowers on April 3, 2020 and as of September 30, 2020 processed approximately 3,000 loans totaling over $548 million in relief.
Commercial Real Estate (“CRE”) – The Company offers CRE loans to finance real estate purchases, refinancing’s, expansions and improvements to commercial and agricultural properties. CRE loans are loans that are secured by liens on the real estate, which may include both owner-occupied and nonowner-occupied properties, such as apartments, commercial structures, health care facilities and other facilities. The Company’s underwriting analysis includes credit verification, independent appraisals, a review of the borrower’s financial condition and a detailed analysis of the borrower’s underlying cash flows. These loans are typically originated in amounts of no more than 80% of the appraised value of the property. Government loan guarantees may be obtained to provide further support for agricultural property.
Consumer Loans
The Company offers a variety of Consumer loan products including Auto and Other Consumer loans.
Auto – The Company provides both direct and indirect financing of automobiles (“Auto”). The Company maintains relationships with many dealers primarily in the communities that we serve. Through these relationships, the Company primarily finances the purchases of automobiles indirectly through dealer relationships. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from to six years, based upon the nature of the collateral and the size of the loan.
Other Consumer – The Other Consumer loan segment consists primarily of specialty lending loans and direct consumer loans. The Company offers unsecured specialty lending consumer loans across a national footprint originated through our relationships with national technology-driven consumer lending companies to finance such things as dental and medical procedures, K-12 tuition, solar energy installations and other consumer purpose loans. Advances of credit through this specialty lending business line are subject to the Company’s underwriting standards including criteria such as FICO score and debt to income thresholds. The Company offers a variety of direct consumer installment loans to finance various personal expenditures. In addition to installment loans, the Company also offers personal lines of credit, overdraft protection, debt consolidation, education and other uses. Consumer installment loans carry a fixed rate of interest with principal repayment terms typically ranging from to fifteen years, based upon the nature of the collateral and the size of the loan. Consumer installment loans are often secured with collateral consisting of a perfected lien on the asset being purchased or a perfected lien on a consumer’s deposit account. Risk is reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower’s financial condition and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate.
Residential
Residential loans consist primarily of loans secured by a first or second mortgage on primary residences, home equity loans and lines of credit in first and second lien positions and residential construction loans. We originate adjustable-rate and fixed rate, one-to-four-family residential loans for the construction or purchase of a residential property or the refinancing of a mortgage. These loans are collateralized by properties located in the Company’s market area. Loans on one-to-four-family residential are generally originated in amounts of no more than 85% of the purchase price or appraised value (whichever is lower) or have private mortgage insurance. Mortgage title insurance and hazard insurance are normally required. Construction loans have a unique risk because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period. For home equity loans, consumers are able to borrow up to 85% of the equity in their homes and are generally tied to Prime with a ten-year draw followed by a fifteen-year amortization. These loans carry a higher risk than first mortgage residential loans as they are often in a second position with respect to collateral.
For the 2019 disclosures for the allowance for credit losses, the loan portfolio was segmented into the Commercial, Consumer and Residential Real Estate portfolio segments. The Commercial segment was further pooled into three classes: Commercial and Industrial, Commercial Real Estate and Business Banking. The Consumer segment was further pooled into three classes: Indirect Auto, Specialty Lending and Direct. For a description of these portfolio segments’ and classes’ risk characteristics, see Note 5 Allowance for Loan Losses and Credit Quality of Loans to the consolidated financial statements presented in our 2019 Annual Report on Form 10-K.
Historical credit loss experience for both the Company and segment-specific peers provides the basis for the estimation of expected credit losses, where observed credit losses are converted to probability of default rate (“PD”) curves through the use of segment-specific loss given default (“LGD”) risk factors that convert default rates to loss severity based on industry-level, observed relationships between the two variables for each asset class, primarily due to the nature of the underlying collateral. These risk factors were assessed for reasonableness against the Company’s own loss experience and adjusted in certain cases when the relationship between the Company’s historical default and loss severity deviate from that of the wider industry. The historical PDR curves, together with corresponding economic conditions, establish a quantitative relationship between economic conditions and loan performance through an economic cycle.
Using the historical relationship between economic conditions and loan performance, management’s expectation of future loan performance is incorporated using externally developed economic forecasts which are probabilistically weighted to reflect potential forecast inaccuracy and model limitations. These forecasts are applied over a period that management has determined to be reasonable and supportable. Beyond the period over which management can develop or source a reasonable and supportable forecast, the model will revert to long-term average economic conditions using a straight-line, time-based methodology.
The allowance for credit losses is measured on a collective (pool) basis, with both a quantitative and qualitative analysis that is applied on a quarterly basis, when similar risk characteristics exist. The respective quantitative allowance for each segment is measured using an econometric, discounted PD/LGD modeling methodology in which distinct, segment-specific multi-variate regression models are applied to multiple, probabilistically weighted external economic forecasts. Under the discounted cash flows methodology, expected credit losses are estimated over the effective life of the loans by measuring the difference between the net present value of modeled cash flows and amortized cost basis. Contractual cash flows over the contractual life of the loans are the basis for modeled cash flows, adjusted for modeled defaults and expected prepayments and discounted at the loan-level stated interest rate. 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 (“TDR”) 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.
After quantitative considerations, management applies additional qualitative adjustments so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date. Qualitative considerations include limitations inherent in the quantitative model; trends experienced in nonperforming and delinquent loans; changes in value of underlying collateral; changes in lending policies and procedures; nature and composition of loans; portfolio concentrations that may affect loss experience across one or more components of the portfolio; the experience, ability and depth of lending management and staff; the Company’s credit review system; and the effect of external factors; such as competition, legal and regulatory requirements.
Loans that do not share risk characteristics and meet materiality criteria are evaluated on an individual basis and are excluded from the pooled evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. If the loan is not collateral dependent, the allowance for credit losses related to individually assessed loans is based on discounted expected cash flows using the loan’s initial effective interest rate. Generally, individually assessed loans are collateral dependent.
A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties is considered to be a TDR. The allowance for credit losses on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring.
Allowance for Credit Losses on Off-Balance Sheet Credit Exposures
The Company estimates expected credit losses over the contractual period in which the Company has exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted as an expense in other noninterest expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over their estimated lives. Estimating credit losses on unfunded commitments requires the Bank to consider the following categories of off-balance sheet credit exposure: unfunded commitments to extend credit, unfunded lines of credit, and standby letters of credit. Each of these unfunded commitments is then analyzed for a probability of funding to calculate a probable funding amount. The life of loan loss factor by related portfolio segment from the loan allowance for credit loss calculation is then applied to the probable funding amount to calculate a reserve on unfunded commitments.
Allowance for Credit Losses – Held-to-Maturity (“HTM”) Debt Securities
The Company’s HTM debt securities are also required to utilize the CECL approach to estimate expected credit losses. Management measures expected credit losses on HTM debt securities on a collective basis by major security types that share similar risk characteristics, such as (as applicable): internal or external (third-party) credit score or credit ratings, risk ratings or classification, financial asset type, collateral type, size, effective interest rate, term, geographical location, industry of the borrower, vintage, historical or expected credit loss patterns, and reasonable and supportable forecast periods. Management classifies the HTM portfolio into the following major security types: U.S. government agency or U.S. government sponsored mortgage-backed and collateralized mortgage obligations securities, and state and municipal debt securities.
The mortgage-backed and collateralized mortgage obligations HTM securities are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of no credit losses. Therefore, the Company did not record a credit loss for these securities.
State and municipal bonds carry a Moody’s rating of A to AAA. In addition, the Company has a limited amount of New York state local municipal bonds that are not rated. The estimate of expected credit losses on the HTM portfolio is based on the expected cash flows of each individual CUSIP over its contractual life and considers historical credit loss information, current conditions and reasonable and supportable forecasts. Given the rarity of municipal defaults and losses, the Company utilized Moody’s Municipal Loss Forecast Model as the sole source of municipal default and loss rates which provides decades of data across all municipal sectors and geographies. As with the loan portfolio, cash flows are forecast over a 6-quarter period under various, weighted economic conditions, with a reversion to long-term average economic conditions over a 4-quarter period on a straight-line basis. Management may exercise discretion to make adjustments based on environmental factors. As of March 31, 2020, June 30, 2020 and September 30, 2020, the Company determined that the expected credit loss on its municipal bond portfolio was de minimis, and therefore, an allowance for credit losses was not recorded.
Allowance for Credit Losses – Available-for Sales (“AFS”) Debt Securities
The impairment model for AFS debt securities differs from the CECL approach utilized by HTM debt securities because AFS debt securities are measured at fair value rather than amortized cost. For AFS debt securities in an unrealized loss position, the Bank first assesses whether 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 security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, in making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, failure of the issuer of the debt security to make scheduled interest or principal payments, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. The cash flows should be estimated using information relevant to the collectability of the security, including information about past events, current conditions and reasonable and supportable forecasts. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses 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 allowance for credit losses is recognized in other comprehensive income.
Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the AFS debt security is uncollectible or when either of the criteria regarding intent or requirement to sell is met. As of March 31, 2020, June 30, 2020 and September 30, 2020, the Company determined that the unrealized loss positions in the AFS debt securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.
Accrued Interest Receivable
Upon adoption of CECL on January 1, 2020, the Company made the following elections regarding accrued interest receivable: (1) presented accrued interest receivable balances separately within other assets balance sheet line item; (2) excluded interest receivable that is included in amortized cost of financing receivables from related disclosures requirements and (3) continued our policy to write off accrued interest receivable by reversing interest income. For loans, write off typically occurs upon becoming over 90 to 120 days past due and therefore the amount of such write offs are immaterial. For loans given short-term loan modifications to assist borrowers during the COVID-19 national emergency, this accounting policy would not apply as the length of time between interest recognition and the write-off of uncollectible interest could exceed 120 days. Therefore, the Company estimated an allowance for credit losses for accrued interest receivable related to loans with short-term modifications due to the pandemic. Historically, the Company has not experienced uncollectible accrued interest receivable on investment securities.
|
Recent Accounting Pronouncements (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Recent Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Standards and Accounting Standards Issued Not Yet Adopted |
Recently Adopted Accounting Standards
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and all related subsequent amendments thereto. ASU 2016-13 introduces new guidance that make substantive changes to the accounting for credit losses. ASU 2016-13 introduces the CECL model, which applies to financial assets subject to credit losses and measured at amortized cost, as well as certain off-balance sheet credit exposures. This includes loans, loan commitments, standby letters of credit, net investments in leases recognized by a lessor and HTM debt securities. The CECL model requires an entity to estimate credit losses expected over the life of an exposure, considering information about historical events, current conditions and reasonable and supportable forecasts and is generally expected to result in earlier recognition of credit losses. ASU 2016-13 also modifies certain provisions of the current other-than-temporary impairment model for AFS debt securities. Credit losses on AFS debt securities will be limited to the difference between the security’s amortized cost basis and its fair value and will be recognized through an allowance for credit losses rather than as a direct reduction in amortized cost basis. ASU 2016-13 also provides for a simplified accounting model for purchased financial assets with more than insignificant credit deterioration since their origination. ASU 2016-13 requires expanded disclosures including, but not limited to, (1) information about the methods and assumptions used to estimate expected credit losses, including changes in the factors that influenced management’s estimate and the reasons for those changes, (2) financing receivables and net investment in leases measured at amortized cost, further disaggregation of information about the credit quality of those assets and (3) a rollforward of the allowance for credit losses for HTM and AFS securities. The standard also changes the accounting for purchased credit-impaired debt securities and loans. ASU 2016-13 was effective for the Company on January 1, 2020. Management expects that the CECL model may create more volatility in the level of our allowance for loan losses from quarter to quarter as changes in the level of allowance for loan losses will be dependent upon, among other things, macroeconomic forecasts and conditions, loan portfolio volumes and credit quality.
The Company adopted CECL on January 1, 2020 (“Day 1”) using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for 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 GAAP. The Company recorded a net decrease to retained earnings of $4.3 million as of January 1, 2020 for the cumulative effect of adopting ASC 326. The transition adjustment includes a $3.0 million impact due to the allowance for credit losses on loans, $2.8 million impact due to the allowance for credit losses on off-balance sheet credit exposure, and $1.5 million impact to the deferred tax asset. The Company did not record an allowance for HTM debt securities on January 1, 2020 as the amount of credit risk was deemed immaterial. The Company did not record an allowance for credit losses on its AFS debt securities under the newly codified AFS debt security impairment model, as the majority of these securities are government agency-backed securities for which the risk of loss is minimal. Refer to Note 4 Securities and Note 5 Allowance for Credit Losses and Credit Quality of Loans to the Company’s unaudited interim consolidated financial statements included in this Form 10-Q for more information.
In December 2018, the Office of Comptroller of the Currency (“OCC”), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period.
On March 22, 2020, a statement was issued by the Company’s banking regulators and titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the recent coronavirus (“COVID-19”) pandemic. Additionally, Section 4013 of the CARES Act, which was enacted on March 27, 2020, further provides that a qualified loan modification is exempt by law from classification as a troubled debt restructuring as defined by GAAP. To be eligible, each loan modification must be (1) related to the COVID-19 event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (a) 60 days after the date of termination of the National Emergency or (b) December 31, 2020. On August 3, 2020, the Federal Financial Institutions Examination Council (“FFIEC”) issued a joint statement on additional loan accommodations related to COVID-19. The joint statement clarifies that for loan modifications in which Section 4013 is being applied, subsequent modifications could also be eligible under Section 4013. Accordingly, the Company is offering modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment. Accordingly, the Company does not account for such loan modifications as TDRs. As of September 30, 2020, there were $233 million in loans in modification programs related to COVID-19.
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 provisions of ASU 2018-13 modify the disclosure requirements on fair value measurements in ASC 820. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. ASU 2018-13 is effective January 1, 2020. The adoption did not have a material impact on the consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 amends existing guidance and requires a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize and which costs to expense. ASU 2018-15 is effective for the Company on January 1, 2020. The adoption did not have a material impact on the consolidated financial statements and related disclosures.
Accounting Standards Issued Not Yet Adopted
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides temporary optional expedients and exceptions to the existing guidance for applying GAAP to affected contract modifications and hedge accounting relationships in the transition away from LIBOR or other interbank offered rate on financial reporting. The guidance also allows a one-time election to sell and/or reclassify to AFS or trading HTM debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective March 12, 2020 through December 31, 2022. The Company is evaluating the impact of adopting the new guidance on the consolidated financial statements.
In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods. The amendments in this ASU are effective for the Company on January 1, 2021, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.
In August 2018, the FASB issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans - General (Subtopic 715-20), provides changes to the disclosure requirements for defined benefit plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are a result of the disclosure framework project that focuses on improvements to the effectiveness of disclosures in the notes to financial statements. The amendments remove and add certain disclosure requirements. The disclosure requirements being removed relating to public companies are: (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, (2) the amount and timing of plan assets expected to be returned to the employer, (3) the 2001 disclosure requirement relating to Japanese Welfare Pension Insurance Law, (4) related party disclosures about the amount of future annual benefits covered by insurance, and (5) the effects of a one-percentage-point change in assumed health care cost trends on the benefit cost and obligation. The disclosure requirements being added relating to public companies are (1) the weighted-average interest crediting rates for cash balance plans, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. ASU 2018-14 is effective for the Company on January 1, 2021 and early adoption is permitted. The amendments should be applied retrospectively and the Company does not expect the guidance to have a material impact on its disclosures to the consolidated financial statements.
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Securities (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Securities [Abstract] | |
Investment, Policy |
The Company does not believe the AFS securities that were in an unrealized loss position as of September 30, 2020, which consisted of 16 individual securities, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of September 30, 2020, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. AIR on AFS debt securities totaled $2.6 million at September 30, 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets.
None of the bank’s HTM debt securities were past due or on non-accrual status as of the quarter ending September 30, 2020. There was no accrued interest reversed against interest income for the quarter ended September 30, 2020 as all securities remained on accrual status. In addition, there were no collateral dependent HTM debt securities as of September 30, 2020. 53% of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2020. The remaining HTM debt securities at September 30, 2020 were comprised of state and municipal obligations with bond ratings of A to AAA. Utilizing the CECL approach, the Company determined that the expected credit loss on its HTM municipal bond portfolio was immaterial and therefore no allowance for credit loss was recorded as of September 30, 2020. AIR on HTM debt securities totaled $2.7 million at September 30, 2020 and is excluded from the estimate of credit losses and reported in the financial statement line for other assets.
|
Allowance for Credit Losses and Credit Quality of Loans (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Allowance for Credit Losses and Credit Quality of Loans [Abstract] | |
Allowance for Credit Losses |
The Day 1 increase in the allowance for credit loss on loans relating to adoption of ASU 2016-13 was $3.0 million, which decreased retained earnings by $2.3 million and increased the deferred tax asset by $0.7 million.
There were no new loans purchased with credit deterioration during the nine months ended September 30, 2020. During the third quarter of 2020, the Company purchased $46.4 million of consumer loans at a 1% discount. The allowance for credit losses recorded for these loans on the purchase date was $3.2 million. The Company made a policy election to report AIR in the other assets line item on the balance sheet. AIR on loans totaled $25.5 million at September 30, 2020 and was included in the allowance for loan credit losses to estimate the impact of accrued interest receivable related to loans with short-term modifications due to the pandemic as the length of time between interest recognition and the write-off of uncollectible interest could exceed 120 days which exempts these loans from our policy election for accrued interest receivable. The estimated allowance for credit losses related to AIR at September 30, 2020 was $0.5 million.
The Day 1 and September 30, 2020 allowance for credit losses calculation incorporated a 6-quarter forecast period to account for forecast economic conditions under each scenario utilized in the measurement. For periods beyond the 6-quarter forecast, the model reverted to long-term economic conditions over a 4-quarter reversion period on a straight-line basis.
The quantitative model as of June 30, 2020 incorporated a baseline economic outlook sourced from a reputable third-party that reflected continued economic deterioration from the March 31, 2020 forecasts, with unemployment peaking in the quarter of measurement but sharply improving in the third quarter 2020, while remaining elevated well above the pre-COVID-19 pandemic levels for the entire forecast period and into 2023. National GDP is forecast to rebound strongly in the third quarter 2020 followed by moderately negative growth in the fourth quarter 2020 with increasing growth through 2022 and stabilization in 2023. The June 30, 2020 allowance for credit losses calculation incorporated a 6-quarter forecast period with a 4-quarter reversion period to long-term economic conditions on a straight-line basis. A short-term reduction in prepayment and curtailment speeds was also applied to more reasonably model payment behavior during the COVID-19 national emergency. Additionally, downside and upside scenarios were incorporated and weighted, along with the baseline outlook, to accommodate other potential economic conditions in the quantitative model. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of June 30, 2020. Additional adjustments were made for COVID-19 related factors were not incorporated in the forecasts, such as the mitigating impact of unprecedented stimulus, including direct payments to individuals, increased unemployment benefits, deferral/modification initiatives and various government-sponsored loan programs. The commercial & industrial and consumer segment models were based upon percent change in unemployment, with forecast values as of June 30, 2020, well outside the observed historical experience. Therefore, adjustment was required to produce outputs more aligned with default expectations given the forecast economic environment. These factors were considered through a separate quantitative process and incorporated into the estimate for allowance for credit losses at June 30, 2020.
The quantitative model as of September 30, 2020 incorporated a baseline economic outlook sourced from a reputable third-party which reflected an unemployment rate environment well above pre-COVID-19 levels for the entire forecast period and a gradual return to low single digits by the end of 2023. Northeast U.S. GDP was expected to grow moderately over the forecast period after a strong rebound in the third quarter of 2020 with stabilization by the end of 2023. Key assumptions in the baseline economic outlook included a large and effective stimulus package by September 30, 2020 with no secondary surge in COVID-19 cases or pandemic-related business closures. A downside scenario was incorporated and equally weighted, along with the baseline outlook in the quantitative model, which assumed deteriorated economic conditions from the base model as a stimulus package was not in place by the end of the third quarter and the related impact on credit losses is not yet known. These scenarios and their respective weightings are evaluated at each measurement date and reflect management’s expectations as of September 30, 2020. Additional adjustments were made for COVID-19 related factors not incorporated in the forecasts, such as the mitigating impact of unprecedented stimulus in 2020, including direct payments to individuals, increased unemployment benefits, deferral/modification initiatives and various government-sponsored loan programs. The commercial & industrial and consumer segment models were based upon percent change in unemployment, with forecast values as of September 30, 2020, well outside the observed historical experience. Therefore, adjustments were required to produce outputs more aligned with default expectations given the forecast economic environment. These factors were considered through a separate quantitative process and incorporated into the estimate for allowance for credit losses at September 30, 2020.
The increase in the allowance for credit losses from June 30, 2020 to September 30, 2020 was primarily due to the specific allowance for credit losses on individually analyzed credits and a change in loan portfolio mix shift within the consumer portfolio as indirect auto balances declined and other consumer balances increased. The increase in the allowance for credit losses from Day 1 to September 30, 2020 was primarily due to the deterioration of macroeconomic factors surrounding the COVID-19 pandemic.
Individually Evaluated Loans
As of September 30, 2020, there were two relationships identified to be evaluated for loss on an individual basis which had an amortized cost basis of $10.9 million. The allowance for credit loss was $3.0 million and was determined by an estimate of the fair value of the collateral which consisted of business assets (accounts receivable, inventory and machinery, real estate and equipment). As of June 30, 2020, there were no relationships identified to be evaluated for loss on an individual basis. As of Day 1, there were no relationships identified to be evaluated for loss on an individual basis.
Credit Quality Indicators
The Company has developed an internal loan grading system to evaluate and quantify the Company’s loan portfolio with respect to quality and risk. The system focuses on, among other things, financial strength of borrowers, experience and depth of borrower’s management, primary and secondary sources of repayment, payment history, nature of the business and outlook on particular industries. The internal grading system enables the Company to monitor the quality of the entire loan portfolio on a consistent basis and provide management with an early warning system, enabling recognition and response to problem loans and potential problem loans.
Commercial Grading System
For C&I, PPP and CRE loans, the Company uses a grading system that relies on quantifiable and measurable characteristics when available. This includes comparison of financial strength to available industry averages, comparison of transaction factors (loan terms and conditions) to loan policy and comparison of credit history to stated repayment terms and industry averages. Some grading factors are necessarily more subjective such as economic and industry factors, regulatory environment and management. C&I and CRE loans are graded Doubtful, Substandard, Special Mention and Pass. The increase in non-pass credits from December 31, 2019 was primarily due to the Company’s proactive approach to downgrade loans that were both in payment deferral due to the COVID-19 pandemic and in higher risk industries such as entertainment, restaurants, retail, healthcare and accommodations.
Doubtful
A Doubtful loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification as a loss is deferred. Doubtful borrowers are usually in default, lack adequate liquidity or capital and lack the resources necessary to remain an operating entity. Pending events can include mergers, acquisitions, liquidations, capital injections, the perfection of liens on additional collateral, the valuation of collateral and refinancing. Generally, pending events should be resolved within a relatively short period and the ratings will be adjusted based on the new information. Nonaccrual treatment is required for Doubtful assets because of the high probability of loss.
Substandard
Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision by bank management. Substandard loans are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. For some Substandard loans, the likelihood of full collection of interest and principal may be in doubt and those loans should be placed on nonaccrual. Although Substandard assets in the aggregate will have a distinct potential for loss, an individual asset’s loss potential does not have to be distinct for the asset to be rated Substandard.
Special Mention
Special Mention loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s position at some future date. These loans pose elevated risk, but their weakness does not yet justify a Substandard classification. Borrowers may be experiencing adverse operating trends (i.e., declining revenues or margins) or may be struggling with an ill-proportioned balance sheet (i.e., increasing inventory without an increase in sales, high leverage, tight liquidity). Adverse economic or market conditions, such as interest rate increases or the entry of a new competitor, may also support a Special Mention rating. Although a Special Mention loan has a higher probability of default than a Pass asset, its default is not imminent.
Pass
Loans graded as Pass encompass all loans not graded as Doubtful, Substandard or Special Mention. Pass loans are in compliance with loan covenants and payments are generally made as agreed. Pass loans range from superior quality to fair quality. Pass loans also include any portion of a government guaranteed loan, including PPP loans.
Consumer and Residential Grading System
Consumer and Residential loans are graded as either Nonperforming or Performing.
Nonperforming
Nonperforming loans are loans that are 1) over 90 days past due and interest is still accruing or 2) on nonaccrual status.
Performing
All loans not meeting any of the above criteria are considered Performing.
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Troubled Debt Restructuring |
Troubled Debt Restructuring
When the Company modifies a loan in a troubled debt restructuring, such modifications generally include one or a combination of the following: an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; temporary reduction in the interest rate; or change in scheduled payment amount. Residential and Consumer TDRs occurring during 2020 were due to the reduction in the interest rate or extension of the term.
An allowance for impaired commercial and consumer loans that have been modified in a TDR is measured based on the present value of the expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs. If management determines that the value of the modified loan is less than the recorded investment in the loan an impairment charge would be recorded.
The Company began offering loan modifications to assist borrowers during the COVID-19 national emergency. The CARES Act, along with a joint agency statement issued by banking regulatory agencies, provides that modifications made in response to COVID-19 do not need to be accounted for as a TDR. The Company evaluated the modification programs provided to its borrowers and has concluded the modifications were generally made in accordance with the CARES Act guidance to borrowers who were in good standing prior to the COVID-19 pandemic and are not required to be designated as TDRs. See Note 3 Recent Accounting Pronouncements for more information.
|
Defined Benefit Post-Retirement Plans (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Defined Benefit Post-Retirement Plans [Abstract] | |
Postemployment Benefit Plans, Policy |
The Company has a qualified, noncontributory, defined benefit pension plan (“the Plan”) covering substantially all of its employees at September 30, 2020. Benefits paid from the plan are based on age, years of service, compensation and social security benefits and are determined in accordance with defined formulas. The Company’s policy is to fund the Plan in accordance with Employee Retirement Income Security Act of 1974 standards. Assets of the Plan are invested in publicly traded stocks and mutual funds.
In addition to the Plan, the Company provides supplemental employee retirement plans to certain current and former executives. The Company also assumed supplemental retirement plans for former executives of Alliance Financial Corporation (“Alliance”) when the Company acquired Alliance.
These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits”.
In addition, the Company provides certain health care benefits for retired employees. Benefits were accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive post-retirement health care benefits. In addition, the Company assumed post-retirement medical life insurance benefits for certain Alliance employees, retirees and their spouses, if applicable, in the Alliance acquisition. These post-retirement benefits are referred to herein as “Other Benefits”.
The Company made no voluntary contributions to the pension and other benefits plans during the three and nine months ended September 30, 2020 and 2019.
|
Earnings Per Share (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share |
Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if the securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity (such as the Company’s dilutive stock options and restricted stock units).
|
Fair Value Measurements and Fair Value of Financial Instruments (Policies) |
9 Months Ended |
---|---|
Sep. 30, 2020 | |
Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments, Policy |
GAAP states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value measurements are not adjusted for transaction costs. A fair value hierarchy exists within GAAP that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
The types of instruments valued based on quoted market prices in active markets include most U.S. government and agency securities, many other sovereign government obligations, liquid mortgage products, active listed equities and most money market securities. Such instruments are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not adjust the quoted prices for such instruments.
The types of instruments valued based on quoted prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency include most investment-grade and high-yield corporate bonds, less liquid mortgage products, less liquid agency securities, less liquid listed equities, state, municipal and provincial obligations and certain physical commodities. Such instruments are generally classified within Level 2 of the fair value hierarchy. Certain common equity securities are reported at fair value utilizing Level 1 inputs (exchange quoted prices). Other investment securities are reported at fair value utilizing Level 1 and Level 2 inputs. The prices for Level 2 instruments are obtained through an independent pricing service or dealer market participants with whom the Company has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the methodologies used in pricing the securities by its third-party providers.
Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions. Valuations are adjusted to reflect illiquidity and/or non-transferability and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate will be used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt markets and changes in financial ratios or cash flows.
GAAP requires disclosure of assets and liabilities measured and recorded at fair value on a non-recurring basis such as goodwill, loans held for sale, other real estate owned, collateral-dependent impaired loans, mortgage servicing rights and HTM securities. The non-recurring fair value measurements recorded during the three and nine month periods ended September 30, 2020 and the year ended December 31, 2019 were related to impaired loans, write-downs of other real estate owned and write-down of branch assets to fair value. The Company uses the fair value of underlying collateral, less costs to sell, to estimate the allowance for credit losses for individually evaluated collateral dependent loans. The appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses ranging from 10% to 50%. Based on the valuation techniques used, the fair value measurements for collateral dependent individually evaluated loans are classified as Level 3.
As of September 30, 2020 the Company had collateral dependent individually evaluated loans with a carrying value of $10.9 million, which had an estimated allowance for credit loss of $3.0 million. As of December 31, 2019 the Company had no collateral dependent loans.
During the nine months ended September 30, 2020, the Company recorded a $0.5 million write-off of branch locations due to a pending disposition of the locations. During the three and nine months ended September 30, 2019, the Company recorded a $1.0 million write-down of a branch location to fair value of $0.2 million due to a pending disposition of the location.
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 the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s 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 anticipated future business and the value of assets and liabilities that are not considered financial instruments. For example, the Company has a substantial wealth operation that contributes net fee income annually. The wealth management operation is not considered a financial instrument and its value has not been incorporated into the fair value estimates. Other significant assets and liabilities include the benefits resulting from the low-cost funding of deposit liabilities as compared to the cost of borrowing funds in the market and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimate of fair value.
HTM Securities
The fair value of the Company’s HTM securities is primarily measured using information from a third-party pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.
Net Loans
Net loans include portfolio loans and loans held for sale. Loans were first segregated by type and then further segmented into fixed and variable rate and loan quality categories. Expected future cash flows were projected based on contractual cash flows, adjusted for estimated prepayments which also includes credit risk, illiquidity risk and other market factors to calculate the exit price fair value in accordance with ASC 820.
Time Deposits
The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.
Long-Term Debt
The fair value of long-term debt was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments.
Subordinated Debt
The fair value of subordinated debt has been measured using the observable market price as of the period reported.
Junior Subordinated Debt
The fair value of junior subordinated debt has been estimated using a discounted cash flow analysis.
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Summary of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||
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Sep. 30, 2020 | |||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||
Portfolio and Class Segments |
The following table illustrates the portfolio and class segments for the Company’s loan portfolio in 2020:
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Securities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Estimated Fair Value and Unrealized Gains (Losses) of AFS Securities |
The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:
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Components of Net Realized Gains (Losses) on Sale of AFS Securities |
The components of net realized gains (losses) on AFS securities are as follows. These amounts were reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings.
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Amortized Cost, Estimated Fair Value, and Unrealized Gains (Losses) of Securities HTM |
The amortized cost, estimated fair value and unrealized gains (losses) of securities HTM are as follows:
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Gains and Losses on Equity Securities |
The following tables set forth information with regard to gains and losses on equity securities:
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Contractual Maturities of Debt Securities |
The following tables set forth information with regard to contractual maturities of debt securities at September 30, 2020:
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Investment Securities with Unrealized Losses |
The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded at September 30, 2020, segregated according to the length of time the securities had been in a continuous unrealized loss position:
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Allowance for Credit Losses and Credit Quality of Loans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses and Credit Quality of Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses by Portfolio |
The following tables present the activity in the allowance for credit losses by portfolio segment:
The following table illustrates the changes in the allowance for loan losses by our portfolio segments:
The following table illustrates the allowance for loan losses and the recorded investment by portfolio segments:
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Past due and Nonperforming Loans by Loan Class |
The following table sets forth information with regard to past due and nonperforming loans by loan segment:
The following tables set forth information with regard to past due and nonperforming loans by loan class:
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Financing Receivable Credit Quality by Loan Class |
The following tables illustrate the Company’s credit quality by loan class by vintage
The following tables illustrate the Company’s credit quality by loan class:
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Troubled Debt Restructurings on Financing Receivables |
The following tables illustrate the recorded investment and number of modifications designated as TDRs, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:
The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:
The following table illustrates the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:
The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:
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Impaired Loans and Specific Reserve Allocations |
The following table provides information on impaired loans specifically evaluated for impairment:
The following table summarizes the average recorded investments on loans specifically evaluated for impairment and the interest income recognized:
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Subordinated Debt (Tables) |
9 Months Ended | ||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||
Subordinated Debt [Abstract] | |||||||||||||||||||||
Subordinated Debt |
The following table summarizes the Company’s subordinated debt:
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Defined Benefit Post-Retirement Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Post-Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Pension Benefits and Other Benefit Costs |
The components of expense for Pension Benefits and Other Benefits are set forth below:
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share |
The following is a reconciliation of basic and diluted EPS for the periods presented in the unaudited interim consolidated statements of income:
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Reclassification Adjustments Out of Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Reclassification Adjustments Out of Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Adjustments out of AOCI |
The following table summarizes the reclassification adjustments out of AOCI:
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Adjustment Recorded Related to Notional Amount of Derivatives Outstanding and Notional Amount of Risk Participation Agreements |
The following table depicts the fair value adjustment recorded related to the notional amount of derivatives outstanding as well as the notional amount of risk participation agreements:
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Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of Derivatives on AOCI and on Consolidated Statement of Income |
The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income:
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Not Designated as Hedging Instrument [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of Derivatives on AOCI and on Consolidated Statement of Income |
The following table indicates the gain or loss recognized in income on derivatives not designated as a hedging relationship:
|
Fair Value Measurements and Fair Value of Financial Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Measurements and Fair Value of Financial Instruments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis |
The following tables set forth the Company’s financial assets and liabilities measured on a recurring basis that were accounted for at fair value. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
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Information with Regard to Estimated Fair Values of Financial Instruments |
The following table sets forth information with regard to estimated fair values of financial instruments. This table excludes financial instruments for which the carrying amount approximates fair value. Financial instruments for which the fair value approximates carrying value include cash and cash equivalents, AFS securities, equity securities, accrued interest receivable, non-maturity deposits, short-term borrowings, accrued interest payable and derivatives.
|
Summary of Significant Accounting Policies (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
Loan
| |
Minimum [Member] | |
Allowance for Credit Losses [Abstract] | |
Threshold period past due for loans to be written off | 90 days |
Maximum [Member] | |
Allowance for Credit Losses [Abstract] | |
Threshold period past due for loans to be written off | 120 days |
Paycheck Protection Program [Member] | |
Allowance for Credit Losses [Abstract] | |
Number of loans processed | Loan | 3,000 |
Paycheck Protection Program [Member] | Minimum [Member] | |
Allowance for Credit Losses [Abstract] | |
Amount of loans processed | $ | $ 548 |
Commercial Loans [Member] | Commercial Real Estate [Member] | Maximum [Member] | |
Allowance for Credit Losses [Abstract] | |
Loan amount, percentage of appraised value or purchase price of the property | 80.00% |
Consumer Loans [Member] | Auto [Member] | Minimum [Member] | |
Allowance for Credit Losses [Abstract] | |
Principal repayment term of loan | 3 years |
Consumer Loans [Member] | Auto [Member] | Maximum [Member] | |
Allowance for Credit Losses [Abstract] | |
Principal repayment term of loan | 6 years |
Consumer Loans [Member] | Installment Loans [Member] | Minimum [Member] | |
Allowance for Credit Losses [Abstract] | |
Principal repayment term of loan | 1 year |
Consumer Loans [Member] | Installment Loans [Member] | Maximum [Member] | |
Allowance for Credit Losses [Abstract] | |
Principal repayment term of loan | 15 years |
Residential [Member] | Maximum [Member] | |
Allowance for Credit Losses [Abstract] | |
Loan amount, percentage of appraised value or purchase price of the property | 85.00% |
Residential [Member] | Home Equity [Member] | Maximum [Member] | |
Allowance for Credit Losses [Abstract] | |
Loan amount, percentage of equity in property | 85.00% |
Term of draw | 10 years |
Term of amortization | 15 years |
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
||
---|---|---|---|---|---|
Recent Accounting Pronouncements [Abstract] | |||||
Retained earnings | $ 726,650 | $ 696,214 | |||
Allowance for credit losses | [1] | 114,500 | |||
COVID-19 [Member] | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Loans in modification programs related to COVID-19 | 233,000 | ||||
ASU 2016-13 [Member] | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Allowance for credit losses | $ 114,500 | $ 113,500 | 75,999 | ||
ASU 2016-13 [Member] | Cumulative Effect Adjustment for ASU Implementation [Member] | |||||
Recent Accounting Pronouncements [Abstract] | |||||
Retained earnings | (4,300) | ||||
Allowance for credit losses | 3,000 | ||||
Allowance for credit losses on off-balance sheet credit exposure | 2,800 | ||||
Deferred tax asset | $ (1,500) | ||||
|
Securities, Available for Sale (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 |
|
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | $ 1,164,633 | $ 1,164,633 | $ 968,554 | ||
Unrealized gains | 33,850 | 33,850 | 8,319 | ||
Unrealized losses | 558 | 558 | 1,533 | ||
Estimated fair value | 1,197,925 | 1,197,925 | 975,340 | ||
Allowance for credit losses on AFS securities | 0 | 0 | |||
Sales transactions of securities available for sale [Abstract] | |||||
Gross realized gains | 0 | $ 20 | 3 | $ 73 | |
Gross realized (losses) | 0 | 0 | 0 | (152) | |
Net AFS realized gains (losses) | 0 | 20 | 3 | (79) | |
Gains from calls on securities available for sale | 0 | $ 20 | 3 | $ 25 | |
Federal Agency [Member] | |||||
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | 195,588 | 195,588 | 34,998 | ||
Unrealized gains | 97 | 97 | 3 | ||
Unrealized losses | 541 | 541 | 243 | ||
Estimated fair value | 195,144 | 195,144 | 34,758 | ||
State & Municipal [Member] | |||||
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | 10,712 | 10,712 | 2,533 | ||
Unrealized gains | 173 | 173 | 0 | ||
Unrealized losses | 2 | 2 | 20 | ||
Estimated fair value | 10,883 | 10,883 | 2,513 | ||
Mortgage-Backed, Government Sponsored Enterprises [Member] | |||||
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | 406,495 | 406,495 | 453,614 | ||
Unrealized gains | 18,216 | 18,216 | 4,982 | ||
Unrealized losses | 0 | 0 | 239 | ||
Estimated fair value | 424,711 | 424,711 | 458,357 | ||
Mortgage-Backed, U.S. Government Agency Securities [Member] | |||||
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | 55,259 | 55,259 | 44,758 | ||
Unrealized gains | 2,358 | 2,358 | 667 | ||
Unrealized losses | 9 | 9 | 156 | ||
Estimated fair value | 57,608 | 57,608 | 45,269 | ||
Collateralized Mortgage Obligations, Government-Sponsored Enterprises [Member] | |||||
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | 350,114 | 350,114 | 328,499 | ||
Unrealized gains | 8,539 | 8,539 | 1,949 | ||
Unrealized losses | 2 | 2 | 467 | ||
Estimated fair value | 358,651 | 358,651 | 329,981 | ||
Collateralized Mortgage Obligations, U.S. Government Agency Securities [Member] | |||||
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | 128,965 | 128,965 | 104,152 | ||
Unrealized gains | 4,136 | 4,136 | 718 | ||
Unrealized losses | 0 | 0 | 408 | ||
Estimated fair value | 133,101 | 133,101 | $ 104,462 | ||
Corporate [Member] | |||||
Debt securities, available-for-sale [Abstract] | |||||
Amortized cost | 17,500 | 17,500 | |||
Unrealized gains | 331 | 331 | |||
Unrealized losses | 4 | 4 | |||
Estimated fair value | $ 17,827 | $ 17,827 |
Securities, Held to Maturity (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 |
|
Held-to-maturity securities, fair value to amortized cost [Abstract] | |||||
Amortized cost | $ 663,088 | $ 663,088 | $ 630,074 | ||
Unrealized gains | 22,622 | 22,622 | 11,817 | ||
Unrealized losses | 848 | 848 | 629 | ||
Estimated fair value | 684,862 | 684,862 | 641,262 | ||
Allowance for credit losses on HTM securities | 0 | 0 | |||
Gains from calls on HTM securities | 11 | $ 4 | 15 | $ 4 | |
Held-to-maturity securities sold, amortized cost | $ 0 | 1,000 | $ 0 | ||
Held-to-maturity securities sold, realized loss | 1 | ||||
Amortized costs of securities available for sale and held to maturity pledged | 1,400,000 | 1,400,000 | 1,300,000 | ||
Amortized costs of securities AFS and HTM pledged as collateral for repurchase agreements | 227,400 | 227,400 | 189,800 | ||
Federal Agency [Member] | |||||
Held-to-maturity securities, fair value to amortized cost [Abstract] | |||||
Amortized cost | 100,000 | 100,000 | |||
Unrealized gains | 47 | 47 | |||
Unrealized losses | 772 | 772 | |||
Estimated fair value | 99,275 | 99,275 | |||
Mortgage-Backed, Government Sponsored Enterprises [Member] | |||||
Held-to-maturity securities, fair value to amortized cost [Abstract] | |||||
Amortized cost | 126,446 | 126,446 | 149,448 | ||
Unrealized gains | 4,847 | 4,847 | 3,184 | ||
Unrealized losses | 0 | 0 | 155 | ||
Estimated fair value | 131,293 | 131,293 | 152,477 | ||
Mortgage-Backed, U.S. Government Agency Securities [Member] | |||||
Held-to-maturity securities, fair value to amortized cost [Abstract] | |||||
Amortized cost | 11,544 | 11,544 | 13,667 | ||
Unrealized gains | 865 | 865 | 584 | ||
Unrealized losses | 0 | 0 | 0 | ||
Estimated fair value | 12,409 | 12,409 | 14,251 | ||
Collateralized Mortgage Obligations, Government-Sponsored Enterprises [Member] | |||||
Held-to-maturity securities, fair value to amortized cost [Abstract] | |||||
Amortized cost | 119,402 | 119,402 | 189,402 | ||
Unrealized gains | 5,087 | 5,087 | 2,165 | ||
Unrealized losses | 0 | 0 | 368 | ||
Estimated fair value | 124,489 | 124,489 | 191,199 | ||
Collateralized Mortgage Obligations, U.S. Government Agency Securities [Member] | |||||
Held-to-maturity securities, fair value to amortized cost [Abstract] | |||||
Amortized cost | 92,654 | 92,654 | 110,498 | ||
Unrealized gains | 4,680 | 4,680 | 3,256 | ||
Unrealized losses | 0 | 0 | 100 | ||
Estimated fair value | 97,334 | 97,334 | 113,654 | ||
State & Municipal [Member] | |||||
Held-to-maturity securities, fair value to amortized cost [Abstract] | |||||
Amortized cost | 213,042 | 213,042 | 167,059 | ||
Unrealized gains | 7,096 | 7,096 | 2,628 | ||
Unrealized losses | 76 | 76 | 6 | ||
Estimated fair value | $ 220,062 | $ 220,062 | $ 169,681 |
Securities, Unrealized Gains (Losses) Related to Equity Securities (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 |
|
Gains (losses) on equity securities [Abstract] | |||||
Net gains and (losses) recognized on equity securities | $ 73 | $ 4,012 | $ (565) | $ 4,099 | |
Less: Net gains and (losses) recognized during the period on equity securities sold during the period | 0 | 3,966 | 0 | 3,966 | |
Unrealized gains and (losses) recognized on equity securities still held | 73 | 46 | (565) | 133 | |
Carrying amount of equity securities without readily determinable fair values | 4,000 | 4,000 | $ 4,000 | ||
Impairment adjustments of equity securities without readily determinable fair values | 0 | 0 | 0 | 0 | |
Downward adjustments of equity securities without readily determinable fair values | 0 | 0 | 0 | 0 | |
Upward adjustments of equity securities without readily determinable fair values | $ 0 | 0 | $ 0 | 0 | |
Visa Class B Common Stock [Member] | |||||
Gains (losses) on equity securities [Abstract] | |||||
Gain from sale of equity securities without readily determinable fair value | $ 4,000 | $ 4,000 |
Securities, AFS Debt Securities, Contractual Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Available-for-sale Securities, Debt Maturities, Amortized Cost [Abstract] | ||
Within one year | $ 706 | |
From one to five years | 20,281 | |
From five to ten years | 356,717 | |
After ten years | 786,929 | |
Amortized cost | 1,164,633 | $ 968,554 |
Available-for-sale Securities, Debt Maturities, Estimated Fair Value [Abstract] | ||
Within one year | 731 | |
From one to five years | 21,010 | |
From five to ten years | 362,435 | |
After ten years | 813,749 | |
Fair value | $ 1,197,925 | $ 975,340 |
Securities, HTM Debt Securities, Contractual Maturities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
Issuer
|
Dec. 31, 2019
USD ($)
Issuer
|
---|---|---|
Held-to-maturity Securities, Debt Maturities, Amortized Cost [Abstract] | ||
Within one year | $ 17,239 | |
From one to five years | 60,391 | |
From five to ten years | 241,783 | |
After ten years | 343,675 | |
Amortized cost | 663,088 | $ 630,074 |
Held-to-maturity Securities, Debt Maturities, Estimated Fair Value [Abstract] | ||
Within one year | 17,257 | |
From one to five years | 61,713 | |
From five to ten years | 248,329 | |
After ten years | 357,563 | |
Fair value | $ 684,862 | $ 641,262 |
Number of issuers whose holdings exceeded 10% of consolidated stockholders' equity, excluding U.S. Government securities and Government-sponsored enterprises securities | Issuer | 0 | 0 |
Securities, AFS Securities in Continuous Unrealized Loss Position (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
Position
|
Dec. 31, 2019
USD ($)
Position
|
---|---|---|
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 161,445 | $ 198,501 |
12 months or longer | 786 | 97,243 |
Total | 162,231 | 295,744 |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (549) | (718) |
12 months or longer | (9) | (815) |
Total | $ (558) | $ (1,533) |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 13 | 48 |
12 months or longer | Position | 3 | 34 |
Total | Position | 16 | 82 |
Federal Agency [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 154,448 | $ 14,891 |
12 months or longer | 0 | 9,866 |
Total | 154,448 | 24,757 |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (541) | (109) |
12 months or longer | 0 | (134) |
Total | $ (541) | $ (243) |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 10 | 2 |
12 months or longer | Position | 0 | 1 |
Total | Position | 10 | 3 |
State & Municipal [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 1,448 | $ 2,503 |
12 months or longer | 0 | 0 |
Total | 1,448 | 2,503 |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (2) | (20) |
12 months or longer | 0 | 0 |
Total | $ (2) | $ (20) |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 1 | 1 |
12 months or longer | Position | 0 | 0 |
Total | Position | 1 | 1 |
Mortgage-Backed [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | $ 67,986 |
12 months or longer | 786 | 37,745 |
Total | 786 | 105,731 |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | 0 | (273) |
12 months or longer | (9) | (122) |
Total | $ (9) | $ (395) |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 0 | 21 |
12 months or longer | Position | 3 | 16 |
Total | Position | 3 | 37 |
Collateralized Mortgage Obligations [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 553 | $ 113,121 |
12 months or longer | 0 | 49,632 |
Total | 553 | 162,753 |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (2) | (316) |
12 months or longer | 0 | (559) |
Total | $ (2) | $ (875) |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 1 | 24 |
12 months or longer | Position | 0 | 17 |
Total | Position | 1 | 41 |
Corporate [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 4,996 | |
12 months or longer | 0 | |
Total | 4,996 | |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (4) | |
12 months or longer | 0 | |
Total | $ (4) | |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 1 | |
12 months or longer | Position | 0 | |
Total | Position | 1 |
Securities, HTM Securities in Continuous Unrealized Loss Position (Details) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020
USD ($)
Position
|
Dec. 31, 2019
USD ($)
Position
|
|
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 84,822 | $ 20,297 |
12 months or longer | 0 | 47,759 |
Total | 84,822 | 68,056 |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (848) | (187) |
12 months or longer | 0 | (442) |
Total | $ (848) | $ (629) |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 13 | 7 |
12 months or longer | Position | 0 | 7 |
Total | Position | 13 | 14 |
AIR on AFS debt securities | $ 2,600 | |
Held-to-maturity, past due | 0 | |
Accrued interest reversed against interest income | 0 | |
Collateral-dependent HTM debt securities | 0 | |
AIR on HTM debt securities | 2,700 | |
Federal Agency [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | 74,228 | |
12 months or longer | 0 | |
Total | 74,228 | |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (772) | |
12 months or longer | 0 | |
Total | $ (772) | |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 3 | |
12 months or longer | Position | 0 | |
Total | Position | 3 | |
Mortgage-Backed [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 0 | |
12 months or longer | 25,370 | |
Total | 25,370 | |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | 0 | |
12 months or longer | (155) | |
Total | $ (155) | |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 0 | |
12 months or longer | Position | 2 | |
Total | Position | 2 | |
Collateralized Mortgage Obligations [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 18,040 | |
12 months or longer | 22,389 | |
Total | 40,429 | |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (181) | |
12 months or longer | (287) | |
Total | $ (468) | |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 3 | |
12 months or longer | Position | 5 | |
Total | Position | 8 | |
State & Municipal [Member] | ||
Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months | $ 10,594 | $ 2,257 |
12 months or longer | 0 | 0 |
Total | 10,594 | 2,257 |
Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months | (76) | (6) |
12 months or longer | 0 | 0 |
Total | $ (76) | $ (6) |
Unrealized Loss Position, Number of Positions [Abstract] | ||
Less than 12 months | Position | 10 | 4 |
12 months or longer | Position | 0 | 0 |
Total | Position | 10 | 4 |
US Government Agencies Debt Securities and US Government-sponsored Enterprises Debt Securities [Member] | ||
Unrealized Loss Position, Number of Positions [Abstract] | ||
Held-to-maturity debt securities, percentage | 53.00% |
Allowance for Credit Losses and Credit Quality of Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
|||
Allowance for Credit Losses [Abstract] | ||||||
Allowance for credit losses | [1] | $ 114,500 | $ 114,500 | |||
Retained earnings | 726,650 | 726,650 | $ 696,214 | |||
Loans purchased with credit deterioration | 0 | |||||
ASU 2016-13 [Member] | ||||||
Allowance for Credit Losses [Abstract] | ||||||
Allowance for credit losses | 114,500 | 114,500 | $ 113,500 | 75,999 | ||
AIR on loans | 25,500 | $ 25,500 | ||||
ASU 2016-13 [Member] | Minimum [Member] | ||||||
Allowance for Credit Losses [Abstract] | ||||||
Write-off of uncollectible interest period | 120 days | |||||
ASU 2016-13 [Member] | Accrued Interest Receivable [Member] | ||||||
Allowance for Credit Losses [Abstract] | ||||||
Allowance for credit losses | 500 | $ 500 | ||||
ASU 2016-13 [Member] | Cumulative Effect Adjustment for ASU Implementation [Member] | ||||||
Allowance for Credit Losses [Abstract] | ||||||
Allowance for credit losses | 3,000 | |||||
Retained earnings | (4,300) | |||||
Deferred tax asset | (1,500) | |||||
ASU 2016-13 [Member] | Cumulative Effect Adjustment for ASU Implementation [Member] | Loans [Member] | ||||||
Allowance for Credit Losses [Abstract] | ||||||
Allowance for credit losses | 3,000 | |||||
Retained earnings | (2,300) | |||||
Deferred tax asset | 700 | |||||
Consumer Loans [Member] | ||||||
Allowance for Credit Losses [Abstract] | ||||||
Amount of loans purchased | $ 46,400 | |||||
Discount on loans purchased | 1.00% | |||||
Allowance for credit losses on loans purchased | $ 3,200 | 3,200 | ||||
Consumer Loans [Member] | ASU 2016-13 [Member] | ||||||
Allowance for Credit Losses [Abstract] | ||||||
Allowance for credit losses | $ 38,562 | $ 38,562 | $ 40,094 | $ 32,122 | ||
|
Allowance for Credit Losses and Credit Quality of Loans, Allowance for Credit Losses by Portfolio Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
|||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, end of period | [1] | $ 114,500 | $ 114,500 | |
ASU 2016-13 [Member] | ||||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 113,500 | 75,999 | ||
Charge-offs | (4,779) | (20,382) | ||
Recoveries | 2,518 | 7,142 | ||
Provision | 3,261 | 51,741 | ||
Balance, end of period | 114,500 | 114,500 | ||
ASU 2016-13 [Member] | Commercial Loans [Member] | ||||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 50,386 | 27,156 | ||
Charge-offs | (624) | (2,353) | ||
Recoveries | 333 | 674 | ||
Provision | 1,651 | 26,269 | ||
Balance, end of period | 51,746 | 51,746 | ||
ASU 2016-13 [Member] | Consumer Loans [Member] | ||||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 40,094 | 32,122 | ||
Charge-offs | (4,097) | (17,166) | ||
Recoveries | 2,123 | 6,168 | ||
Provision | 442 | 17,438 | ||
Balance, end of period | 38,562 | 38,562 | ||
ASU 2016-13 [Member] | Residential [Member] | ||||
Activity in allowance for credit losses by portfolio segment [Roll Forward] | ||||
Balance, beginning of period | 23,020 | 16,721 | ||
Charge-offs | (58) | (863) | ||
Recoveries | 62 | 300 | ||
Provision | 1,168 | 8,034 | ||
Balance, end of period | $ 24,192 | $ 24,192 | ||
|
Allowance for Credit Losses and Credit Quality of Loans, Past Due Loans (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
Relationship
|
Jun. 30, 2020
Relationship
|
Dec. 31, 2019
USD ($)
|
---|---|---|---|
Allowance for Credit Losses and Credit Quality of Loans [Abstract] | |||
Individually evaluated loans, number of relationships | Relationship | 2 | 0 | |
Individually evaluated loans, amortized cost | $ 10,900 | ||
Individually evaluated loans, allowance for credit losses | 3,000 | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 19,533 | $ 34,803 | |
Nonaccrual | 35,896 | 25,174 | |
Current | 7,505,214 | 7,076,121 | |
Recorded total loans | 7,560,643 | 7,136,098 | |
Loans in non-accrual without an allowance for credit losses | 0 | ||
31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 13,587 | 25,610 | |
61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 3,367 | 5,476 | |
Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,579 | 3,717 | |
Commercial Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,212 | ||
Nonaccrual | 21,414 | ||
Current | 3,955,562 | ||
Recorded total loans | 3,978,188 | ||
Commercial Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,070 | ||
Commercial Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 130 | ||
Commercial Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 12 | ||
Commercial Loans [Member] | C&I [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 794 | ||
Nonaccrual | 4,172 | ||
Current | 1,116,189 | ||
Recorded total loans | 1,121,155 | ||
Commercial Loans [Member] | C&I [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 703 | ||
Commercial Loans [Member] | C&I [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 79 | ||
Commercial Loans [Member] | C&I [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 12 | ||
Commercial Loans [Member] | CRE [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 418 | ||
Nonaccrual | 17,242 | ||
Current | 2,324,815 | ||
Recorded total loans | 2,342,475 | ||
Commercial Loans [Member] | CRE [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 367 | ||
Commercial Loans [Member] | CRE [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 51 | ||
Commercial Loans [Member] | CRE [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Commercial Loans [Member] | PPP [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Nonaccrual | 0 | ||
Current | 514,558 | ||
Recorded total loans | 514,558 | ||
Commercial Loans [Member] | PPP [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Commercial Loans [Member] | PPP [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Commercial Loans [Member] | PPP [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Consumer Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 15,940 | ||
Nonaccrual | 3,271 | ||
Current | 1,572,444 | ||
Recorded total loans | 1,591,655 | ||
Consumer Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 11,012 | ||
Consumer Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,981 | ||
Consumer Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,947 | ||
Consumer Loans [Member] | Auto [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 9,999 | ||
Nonaccrual | 2,901 | ||
Current | 938,433 | ||
Recorded total loans | 951,333 | ||
Consumer Loans [Member] | Auto [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 7,639 | ||
Consumer Loans [Member] | Auto [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,534 | ||
Consumer Loans [Member] | Auto [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 826 | ||
Consumer Loans [Member] | Other Consumer [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 5,941 | ||
Nonaccrual | 370 | ||
Current | 634,011 | ||
Recorded total loans | 640,322 | ||
Consumer Loans [Member] | Other Consumer [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 3,373 | ||
Consumer Loans [Member] | Other Consumer [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,447 | ||
Consumer Loans [Member] | Other Consumer [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,121 | ||
Residential [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,381 | ||
Nonaccrual | 11,211 | ||
Current | 1,977,208 | ||
Recorded total loans | 1,990,800 | ||
Residential [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,505 | ||
Residential [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 256 | ||
Residential [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | $ 620 | ||
Originated Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 32,917 | ||
Nonaccrual | 23,581 | ||
Current | 6,814,722 | ||
Recorded total loans | 6,871,220 | ||
Originated Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 24,353 | ||
Originated Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 5,111 | ||
Originated Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 3,453 | ||
Originated Loans [Member] | Commercial Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 5,759 | ||
Nonaccrual | 13,059 | ||
Current | 3,310,182 | ||
Recorded total loans | 3,329,000 | ||
Originated Loans [Member] | Commercial Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 5,597 | ||
Originated Loans [Member] | Commercial Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 162 | ||
Originated Loans [Member] | Commercial Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Originated Loans [Member] | Commercial Loans [Member] | C&I [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,227 | ||
Nonaccrual | 1,177 | ||
Current | 838,502 | ||
Recorded total loans | 840,906 | ||
Originated Loans [Member] | Commercial Loans [Member] | C&I [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,227 | ||
Originated Loans [Member] | Commercial Loans [Member] | C&I [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Originated Loans [Member] | Commercial Loans [Member] | C&I [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Originated Loans [Member] | Commercial Loans [Member] | CRE [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 3,576 | ||
Nonaccrual | 4,847 | ||
Current | 1,941,143 | ||
Recorded total loans | 1,949,566 | ||
Originated Loans [Member] | Commercial Loans [Member] | CRE [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 3,576 | ||
Originated Loans [Member] | Commercial Loans [Member] | CRE [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Originated Loans [Member] | Commercial Loans [Member] | CRE [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Originated Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 956 | ||
Nonaccrual | 7,035 | ||
Current | 530,537 | ||
Recorded total loans | 538,528 | ||
Originated Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 794 | ||
Originated Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 162 | ||
Originated Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Originated Loans [Member] | Consumer Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 25,126 | ||
Nonaccrual | 4,650 | ||
Current | 2,193,167 | ||
Recorded total loans | 2,222,943 | ||
Originated Loans [Member] | Consumer Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 17,577 | ||
Originated Loans [Member] | Consumer Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 4,759 | ||
Originated Loans [Member] | Consumer Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,790 | ||
Originated Loans [Member] | Consumer Loans [Member] | Indirect Auto [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 14,973 | ||
Nonaccrual | 2,175 | ||
Current | 1,176,487 | ||
Recorded total loans | 1,193,635 | ||
Originated Loans [Member] | Consumer Loans [Member] | Indirect Auto [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 11,860 | ||
Originated Loans [Member] | Consumer Loans [Member] | Indirect Auto [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,108 | ||
Originated Loans [Member] | Consumer Loans [Member] | Indirect Auto [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,005 | ||
Originated Loans [Member] | Consumer Loans [Member] | Specialty Lending [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 6,547 | ||
Nonaccrual | 0 | ||
Current | 535,516 | ||
Recorded total loans | 542,063 | ||
Originated Loans [Member] | Consumer Loans [Member] | Specialty Lending [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 3,153 | ||
Originated Loans [Member] | Consumer Loans [Member] | Specialty Lending [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,087 | ||
Originated Loans [Member] | Consumer Loans [Member] | Specialty Lending [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,307 | ||
Originated Loans [Member] | Consumer Loans [Member] | Direct [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 3,606 | ||
Nonaccrual | 2,475 | ||
Current | 481,164 | ||
Recorded total loans | 487,245 | ||
Originated Loans [Member] | Consumer Loans [Member] | Direct [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,564 | ||
Originated Loans [Member] | Consumer Loans [Member] | Direct [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 564 | ||
Originated Loans [Member] | Consumer Loans [Member] | Direct [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 478 | ||
Originated Loans [Member] | Residential [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 2,032 | ||
Nonaccrual | 5,872 | ||
Current | 1,311,373 | ||
Recorded total loans | 1,319,277 | ||
Originated Loans [Member] | Residential [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,179 | ||
Originated Loans [Member] | Residential [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 190 | ||
Originated Loans [Member] | Residential [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 663 | ||
Acquired Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,886 | ||
Nonaccrual | 1,593 | ||
Current | 261,399 | ||
Recorded total loans | 264,878 | ||
Acquired Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 1,257 | ||
Acquired Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 365 | ||
Acquired Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 264 | ||
Acquired Loans [Member] | Commercial Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 833 | ||
Nonaccrual | 382 | ||
Current | 114,051 | ||
Recorded total loans | 115,266 | ||
Acquired Loans [Member] | Commercial Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 546 | ||
Acquired Loans [Member] | Commercial Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 287 | ||
Acquired Loans [Member] | Commercial Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Commercial Loans [Member] | C&I [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 149 | ||
Nonaccrual | 0 | ||
Current | 19,215 | ||
Recorded total loans | 19,364 | ||
Acquired Loans [Member] | Commercial Loans [Member] | C&I [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 149 | ||
Acquired Loans [Member] | Commercial Loans [Member] | C&I [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Commercial Loans [Member] | C&I [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Commercial Loans [Member] | CRE [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Nonaccrual | 0 | ||
Current | 60,937 | ||
Recorded total loans | 60,937 | ||
Acquired Loans [Member] | Commercial Loans [Member] | CRE [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Commercial Loans [Member] | CRE [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Commercial Loans [Member] | CRE [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 684 | ||
Nonaccrual | 382 | ||
Current | 33,899 | ||
Recorded total loans | 34,965 | ||
Acquired Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 397 | ||
Acquired Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 287 | ||
Acquired Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Consumer Loans [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 194 | ||
Nonaccrual | 105 | ||
Current | 23,434 | ||
Recorded total loans | 23,733 | ||
Acquired Loans [Member] | Consumer Loans [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 136 | ||
Acquired Loans [Member] | Consumer Loans [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 58 | ||
Acquired Loans [Member] | Consumer Loans [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Consumer Loans [Member] | Direct [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 194 | ||
Nonaccrual | 105 | ||
Current | 23,434 | ||
Recorded total loans | 23,733 | ||
Acquired Loans [Member] | Consumer Loans [Member] | Direct [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 136 | ||
Acquired Loans [Member] | Consumer Loans [Member] | Direct [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 58 | ||
Acquired Loans [Member] | Consumer Loans [Member] | Direct [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 0 | ||
Acquired Loans [Member] | Residential [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 859 | ||
Nonaccrual | 1,106 | ||
Current | 123,914 | ||
Recorded total loans | 125,879 | ||
Acquired Loans [Member] | Residential [Member] | 31-60 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 575 | ||
Acquired Loans [Member] | Residential [Member] | 61-90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | 20 | ||
Acquired Loans [Member] | Residential [Member] | Greater Than 90 Days Past Due Accruing [Member] | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total past due accruing | $ 264 |
Allowance for Credit Losses and Credit Quality of Loans, Credit Quality Indicators (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Minimum number of days past due for loans to be considered nonperforming | 90 days |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | $ 1,590,321 |
2019 | 1,412,400 |
2018 | 1,012,941 |
2017 | 831,748 |
2016 | 556,395 |
Prior | 1,368,114 |
Revolving Loans Amortized Cost Basis | 759,552 |
Revolving Loans Converted to Term | 29,172 |
Total | 7,560,643 |
C&I [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 264,474 |
2019 | 222,623 |
2018 | 116,511 |
2017 | 61,386 |
2016 | 45,764 |
Prior | 45,174 |
Revolving Loans Amortized Cost Basis | 364,891 |
Revolving Loans Converted to Term | 332 |
Total | 1,121,155 |
C&I [Member] | Pass [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 249,835 |
2019 | 204,978 |
2018 | 100,664 |
2017 | 51,944 |
2016 | 41,297 |
Prior | 36,030 |
Revolving Loans Amortized Cost Basis | 335,169 |
Revolving Loans Converted to Term | 273 |
Total | 1,020,190 |
C&I [Member] | Special Mention [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 14,004 |
2019 | 10,680 |
2018 | 6,410 |
2017 | 5,684 |
2016 | 3,547 |
Prior | 3,634 |
Revolving Loans Amortized Cost Basis | 20,136 |
Revolving Loans Converted to Term | 50 |
Total | 64,145 |
C&I [Member] | Substandard [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 635 |
2019 | 5,614 |
2018 | 9,437 |
2017 | 3,574 |
2016 | 920 |
Prior | 5,510 |
Revolving Loans Amortized Cost Basis | 9,586 |
Revolving Loans Converted to Term | 9 |
Total | 35,285 |
C&I [Member] | Doubtful [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 0 |
2019 | 1,351 |
2018 | 0 |
2017 | 184 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Revolving Loans Converted to Term | 0 |
Total | 1,535 |
CRE [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 316,526 |
2019 | 422,390 |
2018 | 296,596 |
2017 | 374,480 |
2016 | 262,897 |
Prior | 549,955 |
Revolving Loans Amortized Cost Basis | 104,815 |
Revolving Loans Converted to Term | 14,816 |
Total | 2,342,475 |
CRE [Member] | Pass [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 313,029 |
2019 | 376,023 |
2018 | 250,936 |
2017 | 309,705 |
2016 | 216,756 |
Prior | 417,746 |
Revolving Loans Amortized Cost Basis | 88,356 |
Revolving Loans Converted to Term | 14,816 |
Total | 1,987,367 |
CRE [Member] | Special Mention [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 3,215 |
2019 | 41,533 |
2018 | 36,718 |
2017 | 56,202 |
2016 | 40,432 |
Prior | 67,110 |
Revolving Loans Amortized Cost Basis | 10,004 |
Revolving Loans Converted to Term | 0 |
Total | 255,214 |
CRE [Member] | Substandard [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 282 |
2019 | 2,937 |
2018 | 8,942 |
2017 | 8,573 |
2016 | 5,709 |
Prior | 57,484 |
Revolving Loans Amortized Cost Basis | 6,455 |
Revolving Loans Converted to Term | 0 |
Total | 90,382 |
CRE [Member] | Doubtful [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 0 |
2019 | 1,897 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 7,615 |
Revolving Loans Amortized Cost Basis | 0 |
Revolving Loans Converted to Term | 0 |
Total | 9,512 |
PPP [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 514,558 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Revolving Loans Converted to Term | 0 |
Total | 514,558 |
PPP [Member] | Pass [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 514,558 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Revolving Loans Converted to Term | 0 |
Total | 514,558 |
Auto [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 153,507 |
2019 | 348,425 |
2018 | 231,186 |
2017 | 139,376 |
2016 | 58,520 |
Prior | 20,296 |
Revolving Loans Amortized Cost Basis | 23 |
Revolving Loans Converted to Term | 0 |
Total | 951,333 |
Auto [Member] | Performing [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 153,299 |
2019 | 347,290 |
2018 | 229,833 |
2017 | 138,721 |
2016 | 58,144 |
Prior | 20,296 |
Revolving Loans Amortized Cost Basis | 23 |
Revolving Loans Converted to Term | 0 |
Total | 947,606 |
Auto [Member] | Nonperforming [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 208 |
2019 | 1,135 |
2018 | 1,353 |
2017 | 655 |
2016 | 376 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Revolving Loans Converted to Term | 0 |
Total | 3,727 |
Other Consumer [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 182,036 |
2019 | 195,878 |
2018 | 142,215 |
2017 | 63,932 |
2016 | 17,828 |
Prior | 19,644 |
Revolving Loans Amortized Cost Basis | 18,508 |
Revolving Loans Converted to Term | 281 |
Total | 640,322 |
Other Consumer [Member] | Performing [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 181,867 |
2019 | 195,369 |
2018 | 141,910 |
2017 | 63,712 |
2016 | 17,729 |
Prior | 19,465 |
Revolving Loans Amortized Cost Basis | 18,498 |
Revolving Loans Converted to Term | 281 |
Total | 638,831 |
Other Consumer [Member] | Nonperforming [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 169 |
2019 | 509 |
2018 | 305 |
2017 | 220 |
2016 | 99 |
Prior | 179 |
Revolving Loans Amortized Cost Basis | 10 |
Revolving Loans Converted to Term | 0 |
Total | 1,491 |
Residential [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 159,220 |
2019 | 223,084 |
2018 | 226,433 |
2017 | 192,574 |
2016 | 171,386 |
Prior | 733,045 |
Revolving Loans Amortized Cost Basis | 271,315 |
Revolving Loans Converted to Term | 13,743 |
Total | 1,990,800 |
Residential [Member] | Performing [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 158,672 |
2019 | 222,947 |
2018 | 225,715 |
2017 | 191,436 |
2016 | 171,022 |
Prior | 724,257 |
Revolving Loans Amortized Cost Basis | 271,304 |
Revolving Loans Converted to Term | 13,616 |
Total | 1,978,969 |
Residential [Member] | Nonperforming [Member] | |
Credit Quality by Loan Class by Vintage [Abstract] | |
2020 | 548 |
2019 | 137 |
2018 | 718 |
2017 | 1,138 |
2016 | 364 |
Prior | 8,788 |
Revolving Loans Amortized Cost Basis | 11 |
Revolving Loans Converted to Term | 127 |
Total | $ 11,831 |
Allowance for Credit Losses and Credit Quality of Loans, Troubled Debt Restructuring (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020
USD ($)
Contract
|
Sep. 30, 2019
USD ($)
Contract
|
Sep. 30, 2020
USD ($)
Contract
|
Sep. 30, 2019
USD ($)
Contract
|
|
Troubled Debt Restructuring [Abstract] | ||||
Number of contracts | Contract | 10 | 3 | 25 | 31 |
Pre-modification outstanding recorded investment | $ 659 | $ 216 | $ 1,663 | $ 1,947 |
Post-modification outstanding recorded investment | $ 715 | $ 240 | $ 1,789 | $ 2,011 |
Number of contracts | Contract | 9 | 19 | 47 | 45 |
Recorded Investment | $ 299 | $ 914 | $ 2,835 | $ 2,213 |
Commercial Loans [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Number of contracts | Contract | 0 | 2 | ||
Recorded Investment | $ 0 | $ 555 | ||
Commercial Loans [Member] | C&I [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Number of contracts | Contract | 0 | 1 | ||
Recorded Investment | $ 0 | $ 387 | ||
Commercial Loans [Member] | CRE [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Number of contracts | Contract | 0 | 1 | ||
Recorded Investment | $ 0 | $ 168 | ||
Consumer Loans [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Number of contracts | Contract | 0 | 1 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 44 | ||
Post-modification outstanding recorded investment | $ 0 | $ 44 | ||
Consumer Loans [Member] | Auto [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Number of contracts | Contract | 0 | 1 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 44 | ||
Post-modification outstanding recorded investment | $ 0 | $ 44 | ||
Residential [Member] | ||||
Troubled Debt Restructuring [Abstract] | ||||
Number of contracts | Contract | 10 | 24 | ||
Pre-modification outstanding recorded investment | $ 659 | $ 1,619 | ||
Post-modification outstanding recorded investment | $ 715 | $ 1,745 | ||
Number of contracts | Contract | 9 | 45 | ||
Recorded Investment | $ 299 | $ 2,280 |
Allowance for Credit Losses and Credit Quality of Loans, Changes in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
||||
Changes in allowance for loan losses by portfolio segment [Roll Forward] | |||||||
Balance, beginning of period | $ 72,165 | $ 72,965 | [1] | $ 72,505 | |||
Charge-offs | (8,015) | (24,901) | |||||
Recoveries | 1,891 | 5,353 | |||||
Provision | [1] | $ 3,261 | 6,324 | 51,741 | 19,408 | ||
Balance, end of period | 72,365 | 72,365 | |||||
Commercial Loans [Member] | |||||||
Changes in allowance for loan losses by portfolio segment [Roll Forward] | |||||||
Balance, beginning of period | 33,152 | 34,525 | 32,759 | ||||
Charge-offs | (865) | (2,783) | |||||
Recoveries | 132 | 344 | |||||
Provision | 1,021 | 3,120 | |||||
Balance, end of period | 33,440 | 33,440 | |||||
Consumer Loans [Member] | |||||||
Changes in allowance for loan losses by portfolio segment [Roll Forward] | |||||||
Balance, beginning of period | 36,534 | 35,647 | 37,178 | ||||
Charge-offs | (6,976) | (21,336) | |||||
Recoveries | 1,746 | 4,887 | |||||
Provision | 5,031 | 15,606 | |||||
Balance, end of period | 36,335 | 36,335 | |||||
Residential Real Estate [Member] | |||||||
Changes in allowance for loan losses by portfolio segment [Roll Forward] | |||||||
Balance, beginning of period | 2,479 | $ 2,793 | 2,568 | ||||
Charge-offs | (174) | (782) | |||||
Recoveries | 13 | 122 | |||||
Provision | 272 | 682 | |||||
Balance, end of period | $ 2,590 | $ 2,590 | |||||
|
Allowance for Credit Losses and Credit Quality of Loans, Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|---|---|
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Allowance for loan losses | $ 72,965 | [1] | $ 72,365 | $ 72,165 | $ 72,505 | ||
Allowance for loans individually evaluated for impairment | 0 | ||||||
Allowance for loans collectively evaluated for impairment | 72,965 | ||||||
Ending balance of loans | 7,136,098 | ||||||
Commercial Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Allowance for loan losses | 34,525 | 33,440 | 33,152 | 32,759 | |||
Allowance for loans individually evaluated for impairment | 0 | ||||||
Allowance for loans collectively evaluated for impairment | 34,525 | ||||||
Ending balance of loans | 3,444,266 | ||||||
Consumer Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Allowance for loan losses | 35,647 | 36,335 | 36,534 | 37,178 | |||
Allowance for loans individually evaluated for impairment | 0 | ||||||
Allowance for loans collectively evaluated for impairment | 35,647 | ||||||
Ending balance of loans | 2,246,676 | ||||||
Residential Real Estate [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Allowance for loan losses | 2,793 | $ 2,590 | $ 2,479 | $ 2,568 | |||
Allowance for loans individually evaluated for impairment | 0 | ||||||
Allowance for loans collectively evaluated for impairment | 2,793 | ||||||
Ending balance of loans | 1,445,156 | ||||||
Originated Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans individually evaluated for impairment | 18,253 | ||||||
Ending balance of loans collectively evaluated for impairment | 6,852,967 | ||||||
Originated Loans [Member] | Commercial Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans individually evaluated for impairment | 3,488 | ||||||
Ending balance of loans collectively evaluated for impairment | 3,325,512 | ||||||
Originated Loans [Member] | Consumer Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans individually evaluated for impairment | 7,044 | ||||||
Ending balance of loans collectively evaluated for impairment | 2,215,899 | ||||||
Originated Loans [Member] | Residential Real Estate [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans individually evaluated for impairment | 7,721 | ||||||
Ending balance of loans collectively evaluated for impairment | 1,311,556 | ||||||
Acquired Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans collectively evaluated for impairment | 264,878 | ||||||
Acquired Loans [Member] | Commercial Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans collectively evaluated for impairment | 115,266 | ||||||
Acquired Loans [Member] | Consumer Loans [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans collectively evaluated for impairment | 23,733 | ||||||
Acquired Loans [Member] | Residential Real Estate [Member] | |||||||
Allowance for loan losses and recorded investment by portfolio segment [Abstract] | |||||||
Ending balance of loans collectively evaluated for impairment | $ 125,879 | ||||||
|
Allowance for Credit Losses and Credit Quality of Loans, Impaired Loans (Details) $ in Thousands |
Dec. 31, 2019
USD ($)
|
---|---|
Total Loans [Abstract] | |
Recorded investment balance (book) | $ 18,253 |
Unpaid principal balance (legal) | 22,541 |
Related allowance | 0 |
Originated Loans [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 18,253 |
Unpaid principal balance (legal) | 22,541 |
Originated Loans [Member] | Commercial Loans [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 3,488 |
Unpaid principal balance (legal) | 4,182 |
Originated Loans [Member] | Commercial Loans [Member] | C&I [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 76 |
Unpaid principal balance (legal) | 302 |
Originated Loans [Member] | Commercial Loans [Member] | CRE [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 2,410 |
Unpaid principal balance (legal) | 2,437 |
Originated Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 1,002 |
Unpaid principal balance (legal) | 1,443 |
Originated Loans [Member] | Consumer Loans [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 7,044 |
Unpaid principal balance (legal) | 8,605 |
Originated Loans [Member] | Consumer Loans [Member] | Indirect Auto [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 154 |
Unpaid principal balance (legal) | 242 |
Originated Loans [Member] | Consumer Loans [Member] | Direct [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 6,862 |
Unpaid principal balance (legal) | 8,335 |
Originated Loans [Member] | Consumer Loans [Member] | Specialty Lending [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 28 |
Unpaid principal balance (legal) | 28 |
Originated Loans [Member] | Residential Real Estate [Member] | |
With no related allowance recorded [Abstract] | |
Recorded investment balance (book) | 7,721 |
Unpaid principal balance (legal) | $ 9,754 |
Allowance for Credit Losses and Credit Quality of Loans, Average Recorded Investments on Loans Specifically Evaluated for Impairment and Interest Income Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
|
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | $ 18,806 | $ 20,126 |
Interest income recognized | 228 | 662 |
Originated Loans [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 18,806 | 20,126 |
Interest income recognized | 228 | 662 |
Originated Loans [Member] | Commercial Loans [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 3,671 | 4,979 |
Interest income recognized | 37 | 110 |
Originated Loans [Member] | Commercial Loans [Member] | C&I [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 115 | 291 |
Interest income recognized | 0 | 1 |
Originated Loans [Member] | Commercial Loans [Member] | CRE [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 2,554 | 3,577 |
Interest income recognized | 30 | 91 |
Originated Loans [Member] | Commercial Loans [Member] | Business Banking [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 1,002 | 1,111 |
Interest income recognized | 7 | 18 |
Originated Loans [Member] | Consumer Loans [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 7,506 | 7,719 |
Interest income recognized | 98 | 300 |
Originated Loans [Member] | Consumer Loans [Member] | Indirect Auto [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 213 | 201 |
Interest income recognized | 3 | 9 |
Originated Loans [Member] | Consumer Loans [Member] | Direct [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 7,293 | 7,518 |
Interest income recognized | 95 | 291 |
Originated Loans [Member] | Residential Real Estate [Member] | ||
Average Recorded Investment and Interest Income Recognized [Abstract] | ||
Average recorded investment | 7,629 | 7,428 |
Interest income recognized | $ 93 | $ 252 |
Allowance for Credit Losses and Credit Quality of Loans, Credit Quality by Loan Class (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Credit Quality by Loan Class [Abstract] | ||
Net loans | $ 7,560,643 | $ 7,136,098 |
Originated [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 6,871,220 | |
Originated [Member] | Commercial Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 2,790,472 | |
Originated [Member] | Commercial Credit Exposure [Member] | Pass [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 2,651,441 | |
Originated [Member] | Commercial Credit Exposure [Member] | Special Mention [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 58,899 | |
Originated [Member] | Commercial Credit Exposure [Member] | Substandard [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 79,626 | |
Originated [Member] | Commercial Credit Exposure [Member] | Doubtful [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 506 | |
Originated [Member] | Commercial Credit Exposure [Member] | C&I [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 840,906 | |
Originated [Member] | Commercial Credit Exposure [Member] | C&I [Member] | Pass [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 782,763 | |
Originated [Member] | Commercial Credit Exposure [Member] | C&I [Member] | Special Mention [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 28,380 | |
Originated [Member] | Commercial Credit Exposure [Member] | C&I [Member] | Substandard [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 29,257 | |
Originated [Member] | Commercial Credit Exposure [Member] | C&I [Member] | Doubtful [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 506 | |
Originated [Member] | Commercial Credit Exposure [Member] | CRE [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,949,566 | |
Originated [Member] | Commercial Credit Exposure [Member] | CRE [Member] | Pass [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,868,678 | |
Originated [Member] | Commercial Credit Exposure [Member] | CRE [Member] | Special Mention [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 30,519 | |
Originated [Member] | Commercial Credit Exposure [Member] | CRE [Member] | Substandard [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 50,369 | |
Originated [Member] | Commercial Credit Exposure [Member] | CRE [Member] | Doubtful [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 0 | |
Originated [Member] | Business Banking Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 538,528 | |
Originated [Member] | Business Banking Credit Exposure [Member] | Non-classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 524,725 | |
Originated [Member] | Business Banking Credit Exposure [Member] | Classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 13,803 | |
Originated [Member] | Business Banking Credit Exposure [Member] | Business Banking [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 538,528 | |
Originated [Member] | Business Banking Credit Exposure [Member] | Business Banking [Member] | Non-classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 524,725 | |
Originated [Member] | Business Banking Credit Exposure [Member] | Business Banking [Member] | Classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 13,803 | |
Originated [Member] | Consumer Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 2,222,943 | |
Originated [Member] | Consumer Credit Exposure [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 2,215,503 | |
Originated [Member] | Consumer Credit Exposure [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 7,440 | |
Originated [Member] | Consumer Credit Exposure [Member] | Indirect Auto [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,193,635 | |
Originated [Member] | Consumer Credit Exposure [Member] | Indirect Auto [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,190,455 | |
Originated [Member] | Consumer Credit Exposure [Member] | Indirect Auto [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 3,180 | |
Originated [Member] | Consumer Credit Exposure [Member] | Specialty Lending [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 542,063 | |
Originated [Member] | Consumer Credit Exposure [Member] | Specialty Lending [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 540,756 | |
Originated [Member] | Consumer Credit Exposure [Member] | Specialty Lending [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,307 | |
Originated [Member] | Consumer Credit Exposure [Member] | Direct [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 487,245 | |
Originated [Member] | Consumer Credit Exposure [Member] | Direct [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 484,292 | |
Originated [Member] | Consumer Credit Exposure [Member] | Direct [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 2,953 | |
Originated [Member] | Residential Real Estate Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,319,277 | |
Originated [Member] | Residential Real Estate Credit Exposure [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,312,742 | |
Originated [Member] | Residential Real Estate Credit Exposure [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 6,535 | |
Originated [Member] | Residential Real Estate Credit Exposure [Member] | Residential Real Estate [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,319,277 | |
Originated [Member] | Residential Real Estate Credit Exposure [Member] | Residential Real Estate [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,312,742 | |
Originated [Member] | Residential Real Estate Credit Exposure [Member] | Residential Real Estate [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 6,535 | |
Acquired [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 264,878 | |
Acquired [Member] | Commercial Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 80,301 | |
Acquired [Member] | Commercial Credit Exposure [Member] | Pass [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 78,346 | |
Acquired [Member] | Commercial Credit Exposure [Member] | Special Mention [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,269 | |
Acquired [Member] | Commercial Credit Exposure [Member] | Substandard [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 686 | |
Acquired [Member] | Commercial Credit Exposure [Member] | C&I [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 19,364 | |
Acquired [Member] | Commercial Credit Exposure [Member] | C&I [Member] | Pass [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 17,801 | |
Acquired [Member] | Commercial Credit Exposure [Member] | C&I [Member] | Special Mention [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,269 | |
Acquired [Member] | Commercial Credit Exposure [Member] | C&I [Member] | Substandard [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 294 | |
Acquired [Member] | Commercial Credit Exposure [Member] | CRE [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 60,937 | |
Acquired [Member] | Commercial Credit Exposure [Member] | CRE [Member] | Pass [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 60,545 | |
Acquired [Member] | Commercial Credit Exposure [Member] | CRE [Member] | Special Mention [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 0 | |
Acquired [Member] | Commercial Credit Exposure [Member] | CRE [Member] | Substandard [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 392 | |
Acquired [Member] | Business Banking Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 34,965 | |
Acquired [Member] | Business Banking Credit Exposure [Member] | Non-classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 32,030 | |
Acquired [Member] | Business Banking Credit Exposure [Member] | Classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 2,935 | |
Acquired [Member] | Business Banking Credit Exposure [Member] | Business Banking [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 34,965 | |
Acquired [Member] | Business Banking Credit Exposure [Member] | Business Banking [Member] | Non-classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 32,030 | |
Acquired [Member] | Business Banking Credit Exposure [Member] | Business Banking [Member] | Classified [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 2,935 | |
Acquired [Member] | Consumer Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 23,733 | |
Acquired [Member] | Consumer Credit Exposure [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 23,628 | |
Acquired [Member] | Consumer Credit Exposure [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 105 | |
Acquired [Member] | Consumer Credit Exposure [Member] | Direct [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 23,733 | |
Acquired [Member] | Consumer Credit Exposure [Member] | Direct [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 23,628 | |
Acquired [Member] | Consumer Credit Exposure [Member] | Direct [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 105 | |
Acquired [Member] | Residential Real Estate Credit Exposure [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 125,879 | |
Acquired [Member] | Residential Real Estate Credit Exposure [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 124,509 | |
Acquired [Member] | Residential Real Estate Credit Exposure [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 1,370 | |
Acquired [Member] | Residential Real Estate Credit Exposure [Member] | Residential Real Estate [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 125,879 | |
Acquired [Member] | Residential Real Estate Credit Exposure [Member] | Residential Real Estate [Member] | Performing [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | 124,509 | |
Acquired [Member] | Residential Real Estate Credit Exposure [Member] | Residential Real Estate [Member] | Nonperforming [Member] | ||
Credit Quality by Loan Class [Abstract] | ||
Net loans | $ 1,370 |
Allowance for Credit Losses and Credit Quality of Loans, Troubled Debt Restructuring - Prior Segments (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020
USD ($)
Contract
|
Sep. 30, 2019
USD ($)
Contract
|
Sep. 30, 2020
USD ($)
Contract
|
Sep. 30, 2019
USD ($)
Contract
|
|
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 10 | 3 | 25 | 31 |
Pre-modification outstanding recorded investment | $ 659 | $ 216 | $ 1,663 | $ 1,947 |
Post-modification outstanding recorded investment | $ 715 | $ 240 | $ 1,789 | $ 2,011 |
Recorded investment and number of modifications for subsequently defaulted TDRs [Abstract] | ||||
Number of contracts | Contract | 9 | 19 | 47 | 45 |
Recorded Investment | $ 299 | $ 914 | $ 2,835 | $ 2,213 |
Commercial Loans [Member] | ||||
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 0 | 3 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 453 | ||
Post-modification outstanding recorded investment | $ 0 | $ 453 | ||
Commercial Loans [Member] | C&I [Member] | ||||
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 0 | 1 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 65 | ||
Post-modification outstanding recorded investment | $ 0 | $ 65 | ||
Commercial Loans [Member] | Business Banking [Member] | ||||
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 0 | 2 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 388 | ||
Post-modification outstanding recorded investment | $ 0 | $ 388 | ||
Consumer Loans [Member] | ||||
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 1 | 18 | ||
Pre-modification outstanding recorded investment | $ 30 | $ 552 | ||
Post-modification outstanding recorded investment | $ 37 | $ 568 | ||
Recorded investment and number of modifications for subsequently defaulted TDRs [Abstract] | ||||
Number of contracts | Contract | 10 | 26 | ||
Recorded Investment | $ 342 | $ 1,126 | ||
Consumer Loans [Member] | Indirect Auto [Member] | ||||
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 0 | 9 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 134 | ||
Post-modification outstanding recorded investment | $ 0 | $ 134 | ||
Recorded investment and number of modifications for subsequently defaulted TDRs [Abstract] | ||||
Number of contracts | Contract | 1 | 2 | ||
Recorded Investment | $ 10 | $ 17 | ||
Consumer Loans [Member] | Direct [Member] | ||||
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 1 | 9 | ||
Pre-modification outstanding recorded investment | $ 30 | $ 418 | ||
Post-modification outstanding recorded investment | $ 37 | $ 434 | ||
Recorded investment and number of modifications for subsequently defaulted TDRs [Abstract] | ||||
Number of contracts | Contract | 9 | 24 | ||
Recorded Investment | $ 332 | $ 1,109 | ||
Residential Real Estate [Member] | ||||
Recorded investment and number of modifications for modified loans [Abstract] | ||||
Number of contracts | Contract | 2 | 10 | ||
Pre-modification outstanding recorded investment | $ 186 | $ 942 | ||
Post-modification outstanding recorded investment | $ 203 | $ 990 | ||
Recorded investment and number of modifications for subsequently defaulted TDRs [Abstract] | ||||
Number of contracts | Contract | 9 | 19 | ||
Recorded Investment | $ 572 | $ 1,087 |
Subordinated Debt (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Summary of Subordinated Notes [Abstract] | ||
Total subordinated debt, net | $ 97,943 | $ 0 |
Subordinated Notes [Member] | ||
Subordinated Debt [Abstract] | ||
Debt instrument, rate on fixed portion | 5.00% | |
Debt issuance cost | $ 2,200 | |
Debt instrument, redemption price percentage of principal amount | 100.00% | |
Summary of Subordinated Notes [Abstract] | ||
Subordinated notes issued June 2020 - fixed interest rate of 5.00% through June 2025 and a variable interest rate equivalent to three-month SOFR plus 4.85% thereafter, maturing July 1, 2030 | $ 100,000 | |
Unamortized debt issuance costs | (2,057) | |
Total subordinated debt, net | $ 97,943 | |
Subordinated Notes [Member] | Minimum [Member] | ||
Subordinated Debt [Abstract] | ||
Debt issuance cost amortization period | 5 years | |
Subordinated Notes [Member] | SOFR [Member] | ||
Subordinated Debt [Abstract] | ||
Term of variable rate basis | 3 months | |
Basis spread on variable rate | 4.85% |
Defined Benefit Post-Retirement Plans (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Defined Benefit Post-Retirement Plans [Abstract] | ||||
Employer contributions | $ 0 | $ 0 | $ 0 | $ 0 |
Pension Benefits [Member] | ||||
Components of net periodic (benefit) cost [Abstract] | ||||
Service cost | 446 | 431 | 1,338 | 1,301 |
Interest cost | 809 | 986 | 2,427 | 2,948 |
Expected return on plan assets | (2,105) | (1,869) | (6,315) | (5,615) |
Net amortization | 368 | 658 | 1,104 | 1,936 |
Total net periodic (benefit) cost | (482) | 206 | (1,446) | 570 |
Other Benefits [Member] | ||||
Components of net periodic (benefit) cost [Abstract] | ||||
Service cost | 2 | 1 | 6 | 5 |
Interest cost | 55 | 67 | 165 | 229 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Net amortization | 13 | 14 | 39 | 49 |
Total net periodic (benefit) cost | $ 70 | $ 82 | $ 210 | $ 283 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Basic EPS [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 43,643,000 | 43,825,000 | 43,704,000 | 43,806,000 |
Net income available to common stockholders | $ 35,113 | $ 32,379 | $ 70,194 | $ 92,061 |
Basic EPS (in dollars per share) | $ 0.80 | $ 0.74 | $ 1.61 | $ 2.10 |
Diluted EPS [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 43,643,000 | 43,825,000 | 43,704,000 | 43,806,000 |
Dilutive effect of common stock options and restricted stock (in shares) | 299,000 | 313,000 | 293,000 | 302,000 |
Weighted average common shares and common share equivalents (in shares) | 43,942,000 | 44,138,000 | 43,997,000 | 44,108,000 |
Net income available to common stockholders | $ 35,113 | $ 32,379 | $ 70,194 | $ 92,061 |
Diluted EPS (in dollars per share) | $ 0.80 | $ 0.73 | $ 1.60 | $ 2.09 |
Stock Options [Member] | ||||
Earnings Per Share [Abstract] | ||||
Stock options excluded from calculation of diluted EPS (in shares) | 3,250 | 1,500 | 3,250 | 1,500 |
Reclassification Adjustments Out of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Reclassification Adjustment out of AOCI [Abstract] | ||||
Net securities (gains) losses | $ 84 | $ 4,036 | $ (548) | $ 4,024 |
Interest income (expense) | 77,943 | 78,054 | 235,570 | 234,372 |
Other noninterest expense | 3,857 | 8,374 | 14,730 | 18,130 |
Income tax (benefit) expense | 10,988 | 9,322 | 19,267 | 26,245 |
Net income | 35,113 | 32,379 | 70,194 | 92,061 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Total reclassifications during the period, net of tax | 480 | 335 | 1,370 | 516 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Income tax (benefit) expense | (39) | (42) | (123) | (159) |
Net income | 118 | 128 | 369 | 476 |
(Gains) Losses on AFS Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Net securities (gains) losses | 0 | (20) | (3) | 79 |
Amortization of Unrealized Gains Related to Securities Transfer [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Interest income (expense) | 157 | 190 | 495 | 556 |
Net Unrealized Losses (Gains) on Cash Flow hedges Reclassified to Interest Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Interest income (expense) | 101 | (395) | 192 | (1,932) |
Income tax (benefit) expense | (25) | 98 | (48) | 483 |
Net income | 76 | (297) | 144 | (1,449) |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Income tax (benefit) expense | (95) | (168) | (286) | (496) |
Net income | 286 | 504 | 857 | 1,489 |
Amortization of Net Losses [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Other noninterest expense | 359 | 649 | 1,075 | 1,916 |
Amortization of Prior Service Costs [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of AOCI [Abstract] | ||||
Other noninterest expense | $ 22 | $ 23 | $ 68 | $ 69 |
Derivative Instruments and Hedging Activities (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
Agreement
|
Sep. 30, 2019
USD ($)
|
Sep. 30, 2020
USD ($)
Agreement
|
Sep. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
Agreement
|
|
Interest rate derivatives - Included Component [Abstract] | |||||
Amount of gain (loss) recognized in other comprehensive income | $ 0 | $ 9 | $ (274) | $ (475) | |
Amount of loss (gain) reclassified from AOCI into interest expense | 101 | (395) | 192 | (1,932) | |
Derivatives Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | |||||
Fair value adjustment recorded related to notional amount of derivatives outstanding and notional amount of risk participation agreements [Abstract] | |||||
Fair value adjustment included in other assets | 0 | 0 | $ 4 | ||
Fair value adjustment included in other liabilities | 136 | 136 | 45 | ||
Notional amount | 25,000 | 25,000 | $ 50,000 | ||
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | |||||
Interest rate derivatives - Included Component [Abstract] | |||||
Amount of gain (loss) recognized in other comprehensive income | 0 | 9 | (274) | (475) | |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest (Income) Expense [Member] | |||||
Interest rate derivatives - Included Component [Abstract] | |||||
Amount of loss (gain) reclassified from AOCI into interest expense | 101 | (395) | 192 | (1,932) | |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Interest Rate Swaps [Member] | |||||
Fair value adjustment recorded related to notional amount of derivatives outstanding and notional amount of risk participation agreements [Abstract] | |||||
Amount to be reclassified from AOCI as a reduction to interest expense during next twelve months | 124 | ||||
Derivatives Not Designated as Hedging Instruments [Member] | Other Income [Member] | |||||
Gain or loss recognized in income on derivatives not designating as a hedging relationship [Abstract] | |||||
(Decrease) increase in other income | $ (20) | $ (10) | $ 127 | $ 96 | |
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | |||||
Interest rate derivatives [Abstract] | |||||
Number of risk participation agreements held | Agreement | 16 | 16 | 15 | ||
Fair value adjustment recorded related to notional amount of derivatives outstanding and notional amount of risk participation agreements [Abstract] | |||||
Fair value adjustment included in other assets and other liabilities | $ 122,546 | $ 122,546 | $ 41,650 | ||
Notional amount | 2,265,651 | 2,265,651 | 963,209 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Other Assets [Member] | |||||
Interest rate derivatives [Abstract] | |||||
Fair value of derivative asset | 350 | 350 | 112 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Swaps [Member] | Other Liabilities [Member] | |||||
Interest rate derivatives [Abstract] | |||||
Fair value of derivative liability | 152 | 152 | 82 | ||
Derivatives Not Designated as Hedging Instruments [Member] | Risk Participation Agreements [Member] | |||||
Fair value adjustment recorded related to notional amount of derivatives outstanding and notional amount of risk participation agreements [Abstract] | |||||
Notional amount | $ 109,311 | $ 109,311 | $ 97,614 |
Fair Value Measurements and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
|
AFS securities [Abstract] | |||
AFS securities | $ 1,197,925 | $ 975,340 | |
Equity securities | 30,758 | 27,771 | |
Fair Value Measurements [Abstract] | |||
Collateral dependent impaired loans with specific reserve | 10,900 | 0 | |
Reserves on collateral dependent impaired loans | $ 3,000 | ||
Minimum [Member] | |||
Fair Value Measurements [Abstract] | |||
Liquidation expense ratio on impaired collateral | 10.00% | ||
Maximum [Member] | |||
Fair Value Measurements [Abstract] | |||
Liquidation expense ratio on impaired collateral | 50.00% | ||
Changes Measurement [Member] | |||
Fair Value Measurements [Abstract] | |||
Branch location with pending disposition | $ (500) | $ (1,000) | |
Fair Value [Member] | |||
Fair Value Measurements [Abstract] | |||
Branch location with pending disposition | $ 200 | ||
Recurring Basis [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 1,197,925 | 975,340 | |
Equity securities | 30,758 | 27,771 | |
Derivatives | 122,896 | 41,766 | |
Total | 1,351,579 | 1,044,877 | |
Liabilities [Abstract] | |||
Derivatives | 122,834 | 41,777 | |
Total | 122,834 | 41,777 | |
Recurring Basis [Member] | Level 1 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Equity securities | 26,758 | 23,771 | |
Derivatives | 0 | 0 | |
Total | 26,758 | 23,771 | |
Liabilities [Abstract] | |||
Derivatives | 0 | 0 | |
Total | 0 | 0 | |
Recurring Basis [Member] | Level 2 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 1,197,925 | 975,340 | |
Equity securities | 4,000 | 4,000 | |
Derivatives | 122,896 | 41,766 | |
Total | 1,324,821 | 1,021,106 | |
Liabilities [Abstract] | |||
Derivatives | 122,834 | 41,777 | |
Total | 122,834 | 41,777 | |
Recurring Basis [Member] | Level 3 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Equity securities | 0 | 0 | |
Derivatives | 0 | 0 | |
Total | 0 | 0 | |
Liabilities [Abstract] | |||
Derivatives | 0 | 0 | |
Total | 0 | 0 | |
Recurring Basis [Member] | Federal Agency [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 195,144 | 34,758 | |
Recurring Basis [Member] | Federal Agency [Member] | Level 1 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Recurring Basis [Member] | Federal Agency [Member] | Level 2 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 195,144 | 34,758 | |
Recurring Basis [Member] | Federal Agency [Member] | Level 3 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Recurring Basis [Member] | State & Municipal [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 10,883 | 2,513 | |
Recurring Basis [Member] | State & Municipal [Member] | Level 1 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Recurring Basis [Member] | State & Municipal [Member] | Level 2 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 10,883 | 2,513 | |
Recurring Basis [Member] | State & Municipal [Member] | Level 3 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Recurring Basis [Member] | Mortgage-Backed [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 482,319 | 503,626 | |
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 1 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 2 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 482,319 | 503,626 | |
Recurring Basis [Member] | Mortgage-Backed [Member] | Level 3 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 491,752 | 434,443 | |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 1 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | 0 | |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 2 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 491,752 | 434,443 | |
Recurring Basis [Member] | Collateralized Mortgage Obligations [Member] | Level 3 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | $ 0 | |
Recurring Basis [Member] | Corporate [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 17,827 | ||
Recurring Basis [Member] | Corporate [Member] | Level 1 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 0 | ||
Recurring Basis [Member] | Corporate [Member] | Level 2 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | 17,827 | ||
Recurring Basis [Member] | Corporate [Member] | Level 3 [Member] | |||
AFS securities [Abstract] | |||
AFS securities | $ 0 |
Fair Value Measurements and Fair Value of Financial Instruments, Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Financial assets [Abstract] | ||
HTM securities | $ 684,862 | $ 641,262 |
Carrying Amount [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Subordinated debt | 100,000 | 0 |
Carrying Amount [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
HTM securities | 663,088 | 630,074 |
Financial liabilities [Abstract] | ||
Time deposits | 659,971 | 861,193 |
Long-term debt | 64,126 | 64,211 |
Junior subordinated debt | 101,196 | 101,196 |
Carrying Amount [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Net loans | 7,447,966 | 7,074,864 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Financial liabilities [Abstract] | ||
Subordinated debt | 102,781 | 0 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
HTM securities | 684,862 | 641,262 |
Financial liabilities [Abstract] | ||
Time deposits | 666,646 | 858,085 |
Long-term debt | 65,086 | 64,373 |
Junior subordinated debt | 104,447 | 105,694 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Net loans | $ 7,535,955 | $ 6,999,690 |
Commitments and Contingencies (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Guarantor Obligations [Abstract] | ||
Obligation instrument term | 1 year | |
Commitment to Extend Credits and Unused Lines of Credit [Member] | ||
Guarantor Obligations [Abstract] | ||
Commitments - maximum potential obligation | $ 2,100.0 | $ 1,900.0 |
Standby Letters of Credit [Member] | ||
Guarantor Obligations [Abstract] | ||
Commitments - maximum potential obligation | $ 52.3 | $ 34.5 |
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