For the quarterly period ended | June 30, 2018 | |
OR |
Commission file number | 000-17820 |
New Jersey | 22-2953275 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
250 Oak Ridge Road, Oak Ridge, New Jersey | 07438 |
(Address of principal executive offices) | (Zip Code) |
(973) 697-2000 | |
(Registrant’s telephone number, including area code) | |
(Former name, former address and former fiscal year, if changed since last report.) |
PAGE | ||
Consolidated Balance Sheets as of June 30, 2018 (unaudited) and December 31, 2017 | ||
Consolidated Statements of Income for the Three and Six Months Ended June 30, 2018 and 2017 (unaudited) | ||
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2018 and 2017 (unaudited) | ||
Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2018 and 2017 (unaudited) | ||
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2018 and 2017 (unaudited) | ||
June 30, 2018 | December 31, 2017 | ||||||
(unaudited) | |||||||
(dollars in thousands) | |||||||
ASSETS | |||||||
Cash | $ | 139,438 | $ | 114,138 | |||
Interest-bearing deposits due from banks | 3,374 | 28,795 | |||||
Total cash and cash equivalents | 142,812 | 142,933 | |||||
Investment securities available for sale, at fair value | 606,231 | 628,046 | |||||
Equity securities, at fair value | 16,798 | 18,089 | |||||
Investment securities held to maturity; fair value of $155,316 at June 30, 2018 and $138,688 at December 31, 2017 | 158,832 | 139,685 | |||||
Federal Home Loan Bank and other membership bank stock, at cost | 16,235 | 12,576 | |||||
Loans, net of deferred costs (fees) | 4,277,539 | 4,152,720 | |||||
Less: allowance for loan and lease losses | 36,604 | 35,455 | |||||
Net loans | 4,240,935 | 4,117,265 | |||||
Loans held for sale | 1,692 | 456 | |||||
Premises and equipment, net | 50,409 | 50,313 | |||||
Accrued interest receivable | 14,612 | 14,416 | |||||
Goodwill | 136,433 | 136,433 | |||||
Other identifiable intangible assets | 2,052 | 2,362 | |||||
Bank owned life insurance | 108,952 | 107,489 | |||||
Other assets | 38,495 | 35,576 | |||||
TOTAL ASSETS | $ | 5,534,488 | $ | 5,405,639 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 967,911 | $ | 967,335 | |||
Savings and interest-bearing transaction accounts | 2,625,325 | 2,663,985 | |||||
Time deposits $250 thousand and under | 611,777 | 556,863 | |||||
Time deposits over $250 thousand | 195,006 | 180,565 | |||||
Total deposits | 4,400,019 | 4,368,748 | |||||
Federal funds purchased and securities sold under agreements to repurchase | 197,870 | 124,936 | |||||
Other borrowings | 196,376 | 192,011 | |||||
Subordinated debentures | 104,963 | 104,902 | |||||
Other liabilities | 37,396 | 31,920 | |||||
TOTAL LIABILITIES | 4,936,624 | 4,822,517 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Common stock, no par value; authorized shares, 100,000,000 at June 30, 2018 and 70,000,000 at December 31, 2017; issued shares, 47,484,057 at June 30, 2018 and 47,353,864 at December 31, 2017 | 513,756 | 512,734 | |||||
Retained earnings | 95,586 | 72,737 | |||||
Accumulated other comprehensive income | (11,478 | ) | (2,349 | ) | |||
TOTAL STOCKHOLDERS’ EQUITY | 597,864 | 583,122 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 5,534,488 | $ | 5,405,639 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | ||||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, leases and fees | $ | 47,659 | $ | 42,740 | $ | 93,203 | $ | 83,151 | |||||||
Federal funds sold and interest-bearing deposits with banks | 145 | 132 | 311 | 408 | |||||||||||
Taxable investment securities and other | 4,027 | 3,818 | 8,019 | 7,417 | |||||||||||
Tax-exempt investment securities | 429 | 522 | 872 | 1,032 | |||||||||||
TOTAL INTEREST INCOME | 52,260 | 47,212 | 102,405 | 92,008 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 6,501 | 3,784 | 12,256 | 7,118 | |||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 233 | 98 | 367 | 108 | |||||||||||
Other borrowings | 2,033 | 1,909 | 4,053 | 4,038 | |||||||||||
TOTAL INTEREST EXPENSE | 8,767 | 5,791 | 16,676 | 11,264 | |||||||||||
NET INTEREST INCOME | 43,493 | 41,421 | 85,729 | 80,744 | |||||||||||
Provision for loan and lease losses | 1,492 | 1,827 | 2,776 | 3,045 | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 42,001 | 39,594 | 82,953 | 77,699 | |||||||||||
NONINTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 2,545 | 2,674 | 5,156 | 5,129 | |||||||||||
Commissions and fees | 1,410 | 1,135 | 2,682 | 2,291 | |||||||||||
Income on bank owned life insurance | 711 | 500 | 1,430 | 926 | |||||||||||
Gains on sales of loans | 300 | 471 | 546 | 869 | |||||||||||
Gains on sales of investment securities, net | — | (15 | ) | — | 2,524 | ||||||||||
Other income | 743 | 1,346 | 1,229 | 2,466 | |||||||||||
TOTAL NONINTEREST INCOME | 5,709 | 6,111 | 11,043 | 14,205 | |||||||||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 16,708 | 15,096 | 33,569 | 30,513 | |||||||||||
Net occupancy expense | 2,603 | 2,507 | 5,341 | 5,343 | |||||||||||
Furniture and equipment | 2,011 | 1,996 | 4,217 | 4,093 | |||||||||||
FDIC insurance expense | 400 | 425 | 825 | 743 | |||||||||||
Stationery, supplies and postage | 443 | 572 | 859 | 1,015 | |||||||||||
Marketing expense | 456 | 508 | 817 | 909 | |||||||||||
Data processing expense | 976 | 502 | 1,442 | 1,055 | |||||||||||
Telecommunications expense | 462 | 372 | 883 | 776 | |||||||||||
ATM and debit card expense | 558 | 517 | 1,068 | 958 | |||||||||||
Core deposit intangible amortization | 153 | 190 | 310 | 385 | |||||||||||
Other real estate and repossessed asset expense | 21 | 4 | 67 | 41 | |||||||||||
Long-term debt prepayment fee | — | — | — | 2,828 | |||||||||||
Other expenses | 2,783 | 2,677 | 5,313 | 5,177 | |||||||||||
TOTAL NONINTEREST EXPENSE | 27,574 | 25,366 | 54,711 | 53,836 | |||||||||||
Income before provision for income taxes | 20,136 | 20,339 | 39,285 | 38,068 | |||||||||||
Provision for income taxes | 4,298 | 6,969 | 8,192 | 12,386 | |||||||||||
NET INCOME | $ | 15,838 | $ | 13,370 | $ | 31,093 | $ | 25,682 | |||||||
PER SHARE OF COMMON STOCK | |||||||||||||||
Basic earnings | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.54 | |||||||
Diluted earnings | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.53 | |||||||
Dividends | $ | 0.115 | $ | 0.100 | $ | 0.215 | $ | 0.195 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
NET INCOME | $ | 15,838 | $ | 13,370 | $ | 31,093 | $ | 25,682 | |||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||||||||||||||
Unrealized (losses) gains on securities available for sale | (1,690 | ) | 1,029 | (7,422 | ) | 1,763 | |||||||||
Reclassification for securities losses (gains) included in net income | — | 9 | — | (1,640 | ) | ||||||||||
Unrealized gains (losses) on derivatives | 53 | (121 | ) | 336 | (107 | ) | |||||||||
Other comprehensive (loss) income | (1,637 | ) | 917 | (7,086 | ) | 16 | |||||||||
TOTAL COMPREHENSIVE INCOME | $ | 14,201 | $ | 14,287 | $ | 24,007 | $ | 25,698 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||
(in thousands) | |||||||||||||||
At January 1, 2017 | $ | 510,861 | $ | 38,590 | $ | 593 | $ | 550,044 | |||||||
Net income | — | 25,682 | — | 25,682 | |||||||||||
Other comprehensive income, net of tax | — | — | 16 | 16 | |||||||||||
Stock based compensation | 1,566 | — | — | 1,566 | |||||||||||
Exercise of stock options | 313 | — | — | 313 | |||||||||||
Retirement of restricted stock | (773 | ) | — | — | (773 | ) | |||||||||
Cash dividends, common stock | — | (9,303 | ) | — | (9,303 | ) | |||||||||
At June 30, 2017 | $ | 511,967 | $ | 54,969 | $ | 609 | $ | 567,545 | |||||||
At January 1, 2018 | $ | 512,734 | $ | 72,737 | $ | (2,349 | ) | $ | 583,122 | ||||||
Cumulative adjustment for adoption of ASU 2016-01 | — | 2,043 | (2,043 | ) | — | ||||||||||
January 1, 2018, as adjusted | 512,734 | 74,780 | (4,392 | ) | 583,122 | ||||||||||
Net income | — | 31,093 | — | 31,093 | |||||||||||
Other comprehensive loss, net of tax | — | — | (7,086 | ) | (7,086 | ) | |||||||||
Stock based compensation | 1,459 | — | — | 1,459 | |||||||||||
Exercise of stock options | 307 | — | — | 307 | |||||||||||
Retirement of restricted stock | (744 | ) | — | — | (744 | ) | |||||||||
Cash dividends, common stock | — | (10,287 | ) | — | (10,287 | ) | |||||||||
At June 30, 2018 | $ | 513,756 | $ | 95,586 | $ | (11,478 | ) | $ | 597,864 |
For the Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 31,093 | $ | 25,682 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Net amortization of premiums, discounts and deferred loan fees and costs | 2,022 | 2,413 | |||||
Depreciation and amortization | 2,693 | 2,080 | |||||
Amortization of intangible assets | 310 | 385 | |||||
Provision for loan and lease losses | 2,776 | 3,045 | |||||
Loans originated for sale | (22,018 | ) | (27,197 | ) | |||
Proceeds from sales of loans held for sale | 21,328 | 28,931 | |||||
Gains on sales of securities | — | (2,524 | ) | ||||
Change in market value of equity securities | (33 | ) | — | ||||
Gains on sales of loans held for sale | (546 | ) | (869 | ) | |||
Gains on other real estate and other repossessed assets | (46 | ) | (500 | ) | |||
Gains on sales of premises and equipment | — | (672 | ) | ||||
Long-term debt prepayment penalty | — | 2,828 | |||||
Stock-based compensation | 1,459 | 1,566 | |||||
Excess tax benefits | 313 | 582 | |||||
Increase in other assets | (1,354 | ) | (4,672 | ) | |||
Increase in other liabilities | 5,900 | 1,988 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 43,897 | 33,066 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from repayments and maturities of available for sale securities | 43,026 | 43,726 | |||||
Proceeds from repayments and maturities of held to maturity securities | 13,720 | 18,624 | |||||
Proceeds from sales of equity securities | 1,734 | — | |||||
Proceeds from sales of available for sale securities | — | 4,484 | |||||
Purchase of available for sale securities | (32,800 | ) | (113,724 | ) | |||
Purchase of held to maturity securities | (33,235 | ) | (9,754 | ) | |||
Purchase of equity securities | (409 | ) | — | ||||
Purchase of bank owned life insurance | — | (16,000 | ) | ||||
Proceeds from redemptions of Federal Home Loan Bank stock | 2,939 | 3,477 | |||||
Purchases of Federal Home Loan Bank stock | (6,598 | ) | (7,278 | ) | |||
Net increase in loans and leases | (128,718 | ) | (186,328 | ) | |||
Proceeds from sales of other real estate and repossessed assets | 918 | 3,583 | |||||
Proceeds from dispositions and sales of premises and equipment | — | 1,262 | |||||
Purchases of premises and equipment | (2,746 | ) | (1,324 | ) | |||
NET CASH USED IN INVESTING ACTIVITIES | (142,169 | ) | (259,252 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in deposits | 31,504 | 134,719 | |||||
Increase in federal funds purchased and securities sold under agreements to repurchase | 72,934 | 62,133 | |||||
Proceeds from other borrowings | 39,437 | 164,036 | |||||
Repayments of other borrowings | (35,000 | ) | (115,058 | ) | |||
Exercise of stock options | 307 | 313 | |||||
Retirement of restricted stock | (744 | ) | (773 | ) | |||
Dividends paid | (10,287 | ) | (9,303 | ) | |||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 98,151 | 236,067 | |||||
Net (decrease) increase in cash and cash equivalents | (121 | ) | 9,881 | ||||
Cash and cash equivalents, beginning of period | 142,933 | 175,801 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 142,812 | $ | 185,682 |
For the Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Supplemental schedule of non-cash investing and financing activities: | |||||||
Cash paid during the period for income taxes | $ | 2,909 | $ | 11,703 | |||
Cash paid during the period for interest | 16,153 | 11,310 | |||||
Transfer of loans and leases into other repossessed assets and other real estate owned | 2,214 | 3,425 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Deposit Related Fees and Charges | |||||||||||||||
Debit card interchange income | $ | 1,277 | $ | 1,146 | $ | 2,395 | $ | 2,136 | |||||||
Overdraft charges | 900 | 1,145 | 2,009 | 2,298 | |||||||||||
ATM service charges | 217 | 199 | 407 | 361 | |||||||||||
Demand deposit fees and charges | 121 | 158 | 279 | 294 | |||||||||||
Savings service charges | 30 | 26 | 66 | 40 | |||||||||||
Total | 2,545 | 2,674 | 5,156 | 5,129 | |||||||||||
Commissions and Fees | |||||||||||||||
Loan and lease fees | 363 | 199 | 685 | 435 | |||||||||||
Wire transfer charges | 274 | 246 | 522 | 473 | |||||||||||
Investment services income | 311 | 296 | 539 | 537 | |||||||||||
Merchant fees | 174 | 163 | 390 | 405 | |||||||||||
Commissions from sales of checks | 112 | 116 | 220 | 233 | |||||||||||
Safe deposit income | 104 | 63 | 188 | 127 | |||||||||||
Other income | 65 | 44 | 128 | 67 | |||||||||||
Total | 1,403 | 1,127 | 2,672 | 2,277 | |||||||||||
Gains on Sale of Loans | 300 | 471 | 546 | 869 | |||||||||||
Other Income | |||||||||||||||
Gains on customer swap transactions | 527 | 455 | 859 | 814 | |||||||||||
Title insurance income | 73 | 75 | 122 | 103 | |||||||||||
Other income | 58 | 377 | 155 | 415 | |||||||||||
Total | 658 | 907 | 1,136 | 1,332 | |||||||||||
Revenue not from contracts with customers | 803 | 932 | 1,533 | 4,598 | |||||||||||
Total Noninterest Income | 5,709 | 6,111 | 11,043 | 14,205 | |||||||||||
Timing of Revenue Recognition | |||||||||||||||
Products and services transferred at a point in time | 4,888 | 5,164 | 9,473 | 9,577 | |||||||||||
Products and services transferred over time | 18 | 15 | 37 | 30 | |||||||||||
Revenue not from contracts with customers | 803 | 932 | 1,533 | 4,598 | |||||||||||
Total Noninterest Income | $ | 5,709 | $ | 6,111 | $ | 11,043 | $ | 14,205 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands, except per share data) | (in thousands, except per share data) | ||||||||||||||
Net income available to common shareholders | $ | 15,838 | $ | 13,370 | $ | 31,093 | $ | 25,682 | |||||||
Less: earnings allocated to participating securities | 146 | 119 | 287 | 239 | |||||||||||
Net income allocated to common shareholders | $ | 15,692 | $ | 13,251 | $ | 30,806 | $ | 25,443 | |||||||
Weighted average number of common shares outstanding - basic | 47,600 | 47,465 | 47,552 | 47,410 | |||||||||||
Share-based plans | 170 | 209 | 201 | 236 | |||||||||||
Weighted average number of common shares outstanding - diluted | 47,770 | 47,674 | 47,753 | 47,646 | |||||||||||
Basic earnings per share | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.54 | |||||||
Diluted earnings per share | $ | 0.33 | $ | 0.28 | $ | 0.65 | $ | 0.53 |
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||
AVAILABLE FOR SALE | |||||||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 149,859 | $ | — | $ | (3,514 | ) | $ | 146,345 | $ | 148,968 | $ | 78 | $ | (1,791 | ) | $ | 147,255 | |||||||||||||
Mortgage-backed securities, residential | 404,880 | 105 | (12,270 | ) | 392,715 | 419,538 | 479 | (5,763 | ) | 414,254 | |||||||||||||||||||||
Mortgage-backed securities, multifamily | 13,181 | — | (307 | ) | 12,874 | 10,133 | 7 | (63 | ) | 10,077 | |||||||||||||||||||||
Obligations of states and political subdivisions | 49,898 | 167 | (843 | ) | 49,222 | 51,289 | 448 | (417 | ) | 51,320 | |||||||||||||||||||||
Debt securities | 5,000 | 75 | — | 5,075 | 5,000 | 140 | — | 5,140 | |||||||||||||||||||||||
$ | 622,818 | $ | 347 | $ | (16,934 | ) | $ | 606,231 | $ | 634,928 | $ | 1,152 | $ | (8,034 | ) | $ | 628,046 |
June 30, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||
HELD TO MATURITY | |||||||||||||||||||||||||||||||
U.S. government agencies | $ | 38,437 | $ | — | $ | (943 | ) | $ | 37,494 | $ | 33,415 | $ | 24 | $ | (402 | ) | $ | 33,037 | |||||||||||||
Mortgage-backed securities, residential | 73,538 | 127 | (2,355 | ) | 71,310 | 54,991 | 249 | (978 | ) | 54,262 | |||||||||||||||||||||
Mortgage-backed securities, multifamily | 1,905 | — | (56 | ) | 1,849 | 1,957 | — | (22 | ) | 1,935 | |||||||||||||||||||||
Obligations of states and political subdivisions | 39,452 | 133 | (421 | ) | 39,164 | 43,318 | 306 | (188 | ) | 43,436 | |||||||||||||||||||||
Debt securities | 5,500 | — | (1 | ) | 5,499 | 6,004 | 14 | — | 6,018 | ||||||||||||||||||||||
$ | 158,832 | $ | 260 | $ | (3,776 | ) | $ | 155,316 | $ | 139,685 | $ | 593 | $ | (1,590 | ) | $ | 138,688 |
Available for Sale | Held to Maturity | ||||||||||||||
June 30, 2018 | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Due in one year or less | $ | 21,258 | $ | 21,170 | $ | 13,063 | $ | 13,074 | |||||||
Due after one year through five years | 114,026 | 111,549 | 41,523 | 40,979 | |||||||||||
Due after five years through ten years | 41,818 | 40,686 | 25,533 | 24,926 | |||||||||||
Due after ten years | 27,655 | 27,237 | 3,270 | 3,178 | |||||||||||
204,757 | 200,642 | 83,389 | 82,157 | ||||||||||||
Mortgage-backed securities | 418,061 | 405,589 | 75,443 | 73,159 | |||||||||||
Total securities | $ | 622,818 | $ | 606,231 | $ | 158,832 | $ | 155,316 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sale proceeds | $ | — | $ | — | $ | — | $ | 4,499 | |||||||
Gross gains | — | — | — | 2,539 | |||||||||||
Gross losses | — | (15 | ) | — | (15 | ) |
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
June 30, 2018 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
AVAILABLE FOR SALE | ||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 92,272 | $ | 1,781 | $ | 54,073 | $ | 1,733 | 28 | $ | 146,345 | $ | 3,514 | |||||||||||||
Mortgage-backed securities, residential | 213,396 | 5,296 | 161,111 | 6,974 | 142 | 374,507 | 12,270 | |||||||||||||||||||
Mortgage-backed securities, multifamily | 7,872 | 189 | 5,002 | 118 | 3 | 12,874 | 307 | |||||||||||||||||||
Obligations of states and political subdivisions | 20,367 | 265 | 12,656 | 578 | 60 | 33,023 | 843 | |||||||||||||||||||
$ | 333,907 | $ | 7,531 | $ | 232,842 | $ | 9,403 | 233 | $ | 566,749 | $ | 16,934 | ||||||||||||||
HELD TO MATURITY | ||||||||||||||||||||||||||
U.S. government agencies | $ | 30,948 | $ | 464 | $ | 6,546 | $ | 479 | 7 | $ | 37,494 | $ | 943 | |||||||||||||
Mortgage-backed securities, residential | 45,533 | 1,302 | 19,894 | 1,053 | 35 | 65,427 | 2,355 | |||||||||||||||||||
Mortgage-backed securities, multifamily | 1,849 | 56 | — | — | 2 | 1,849 | 56 | |||||||||||||||||||
Obligations of states and political subdivisions | 15,394 | 199 | 5,894 | 222 | 33 | 21,288 | 421 | |||||||||||||||||||
Debt securities | 4,000 | 1 | — | — | 1 | 4,000 | 1 | |||||||||||||||||||
$ | 97,724 | $ | 2,022 | $ | 32,334 | $ | 1,754 | 78 | $ | 130,058 | $ | 3,776 |
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||||
December 31, 2017 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
AVAILABLE FOR SALE | ||||||||||||||||||||||||||
U.S. Treasury and U.S. government agencies | $ | 80,391 | $ | 646 | $ | 54,769 | $ | 1,145 | 27 | $ | 135,160 | $ | 1,791 | |||||||||||||
Mortgage-backed securities, residential | 199,387 | 1,723 | 157,739 | 4,040 | 118 | 357,126 | 5,763 | |||||||||||||||||||
Mortgage-backed securities, multifamily | — | — | 5,088 | 63 | 1 | 5,088 | 63 | |||||||||||||||||||
Obligations of states and political subdivisions | 9,612 | 77 | 12,970 | 340 | 39 | 22,582 | 417 | |||||||||||||||||||
$ | 289,390 | $ | 2,446 | $ | 230,566 | $ | 5,588 | 185 | $ | 519,956 | $ | 8,034 | ||||||||||||||
HELD TO MATURITY | ||||||||||||||||||||||||||
U.S. government agencies | $ | 15,371 | $ | 95 | $ | 6,720 | $ | 307 | 4 | $ | 22,091 | $ | 402 | |||||||||||||
Mortgage-backed securities, residential | 26,090 | 426 | 19,203 | 552 | 25 | 45,293 | 978 | |||||||||||||||||||
Mortgage-backed securities, multifamily | 1,935 | 22 | — | — | 2 | 1,935 | 22 | |||||||||||||||||||
Obligations of states and political subdivisions | 15,353 | 56 | 6,028 | 132 | 23 | 21,381 | 188 | |||||||||||||||||||
$ | 58,749 | $ | 599 | $ | 31,951 | $ | 991 | 54 | $ | 90,700 | $ | 1,590 |
• | The Company’s ability and intent to hold the securities, including an evaluation of the need to sell the security to meet certain liquidity measures, or whether the Company has sufficient levels of cash to hold the identified security in order to recover the entire amortized cost of the security; |
• | The financial condition of the underlying issuer; |
• | The credit ratings of the underlying issuer and if any changes in the credit rating have occurred; |
• | The length of time the security’s fair value has been less than amortized cost; and |
• | Adverse conditions related to the security or its issuer if the issuer has failed to make scheduled payments or other factors. |
June 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Commercial, secured by real estate | $ | 2,925,104 | $ | 2,831,184 | |||
Commercial, industrial and other | 339,974 | 340,400 | |||||
Leases | 82,006 | 75,039 | |||||
Real estate - residential mortgage | 321,717 | 322,880 | |||||
Real estate - construction | 297,357 | 264,908 | |||||
Home equity and consumer | 315,144 | 322,269 | |||||
Total loans and leases | 4,281,302 | 4,156,680 | |||||
Less: deferred fees | (3,763 | ) | (3,960 | ) | |||
Loans and leases, net of deferred fees | $ | 4,277,539 | $ | 4,152,720 |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | ||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
Balance, beginning of period | $ | 113 | $ | 180 | $ | 129 | $ | 145 | |||||||
Acquisitions | — | — | — | — | |||||||||||
Accretion | (43 | ) | (47 | ) | (87 | ) | (98 | ) | |||||||
Net reclassification non-accretable difference | 30 | — | 58 | 86 | |||||||||||
Balance, end of period | $ | 100 | $ | 133 | $ | 100 | $ | 133 |
June 30, 2018 | December 31, 2017 | ||||||
(in thousands) | |||||||
Commercial, secured by real estate | $ | 7,353 | $ | 5,890 | |||
Commercial, industrial and other | 1,171 | 184 | |||||
Leases | 834 | 144 | |||||
Real estate - residential mortgage | 2,992 | 3,860 | |||||
Real estate - construction | — | 1,472 | |||||
Home equity and consumer | 1,917 | 2,105 | |||||
Total non-accrual loans and leases | $ | 14,267 | $ | 13,655 | |||
Other real estate and other repossessed assets | 2,184 | 843 | |||||
TOTAL NON-PERFORMING ASSETS | $ | 16,451 | $ | 14,498 | |||
Troubled debt restructurings, still accruing | $ | 7,926 | $ | 11,462 |
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 89 Days Past Due | Total Past Due | Current | Total Loans and Leases | Recorded Investment Greater than 89 Days and Still Accruing | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
June 30, 2018 | |||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 3,727 | $ | 826 | $ | 3,124 | $ | 7,677 | $ | 2,917,427 | $ | 2,925,104 | $ | — | |||||||||||||
Commercial, industrial and other | 119 | — | 1,100 | 1,219 | 338,755 | 339,974 | — | ||||||||||||||||||||
Leases | 129 | 77 | 834 | 1,040 | 80,966 | 82,006 | — | ||||||||||||||||||||
Real estate - residential mortgage | 1,506 | 311 | 2,992 | 4,809 | 316,908 | 321,717 | — | ||||||||||||||||||||
Real estate - construction | — | — | — | — | 297,357 | 297,357 | — | ||||||||||||||||||||
Home equity and consumer | 1,202 | 3 | 1,918 | 3,123 | 312,021 | 315,144 | — | ||||||||||||||||||||
$ | 6,683 | $ | 1,217 | $ | 9,968 | $ | 17,868 | $ | 4,263,434 | $ | 4,281,302 | $ | — | ||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 3,663 | $ | 1,082 | $ | 3,817 | $ | 8,562 | $ | 2,822,622 | $ | 2,831,184 | $ | — | |||||||||||||
Commercial, industrial and other | 80 | 121 | 56 | 257 | 340,143 | 340,400 | — | ||||||||||||||||||||
Leases | 496 | 139 | 144 | 779 | 74,260 | 75,039 | — | ||||||||||||||||||||
Real estate - residential mortgage | 939 | 908 | 3,137 | 4,984 | 317,896 | 322,880 | — | ||||||||||||||||||||
Real estate - construction | — | — | 1,472 | 1,472 | 263,436 | 264,908 | — | ||||||||||||||||||||
Home equity and consumer | 1,258 | 310 | 1,386 | 2,954 | 319,315 | 322,269 | 200 | ||||||||||||||||||||
$ | 6,436 | $ | 2,560 | $ | 10,012 | $ | 19,008 | $ | 4,137,672 | $ | 4,156,680 | $ | 200 |
June 30, 2018 | Recorded Investment in Impaired Loans | Contractual Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||
(in thousands) | |||||||||||||||||||
Loans without specific allowance: | |||||||||||||||||||
Commercial, secured by real estate | $ | 7,398 | $ | 7,715 | $ | — | $ | 6,730 | $ | 89 | |||||||||
Commercial, industrial and other | 1,525 | 1,526 | — | 1,381 | 10 | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Real estate - residential mortgage | — | — | — | 478 | 4 | ||||||||||||||
Real estate - construction | — | — | — | 1,463 | — | ||||||||||||||
Home equity and consumer | — | — | — | — | — | ||||||||||||||
Loans with specific allowance: | |||||||||||||||||||
Commercial, secured by real estate | 7,787 | 8,129 | 452 | 8,178 | 172 | ||||||||||||||
Commercial, industrial and other | 228 | 228 | 8 | 228 | 6 | ||||||||||||||
Leases | 663 | 663 | 393 | 279 | — | ||||||||||||||
Real estate - residential mortgage | 757 | 902 | 4 | 557 | 10 | ||||||||||||||
Real estate - construction | — | — | — | — | — | ||||||||||||||
Home equity and consumer | 946 | 977 | 8 | 951 | 17 | ||||||||||||||
Total: | |||||||||||||||||||
Commercial, secured by real estate | $ | 15,185 | $ | 15,844 | $ | 452 | $ | 14,908 | $ | 261 | |||||||||
Commercial, industrial and other | 1,753 | 1,754 | 8 | 1,609 | 16 | ||||||||||||||
Leases | 663 | 663 | 393 | 279 | — | ||||||||||||||
Real estate - residential mortgage | 757 | 902 | 4 | 1,035 | 14 | ||||||||||||||
Real estate - construction | — | — | — | 1,463 | — | ||||||||||||||
Home equity and consumer | 946 | 977 | 8 | 951 | 17 | ||||||||||||||
$ | 19,304 | $ | 20,140 | $ | 865 | $ | 20,245 | $ | 308 |
December 31, 2017 | Recorded Investment in Impaired Loans | Contractual Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||
(in thousands) | |||||||||||||||||||
Loans without specific allowance: | |||||||||||||||||||
Commercial, secured by real estate | $ | 12,155 | $ | 12,497 | — | $ | 12,774 | $ | 366 | ||||||||||
Commercial, industrial and other | 618 | 618 | — | 618 | 25 | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Real estate - residential mortgage | 963 | 980 | — | 996 | 15 | ||||||||||||||
Real estate - construction | 1,471 | 1,471 | — | 1,471 | — | ||||||||||||||
Home equity and consumer | — | — | — | 6 | — | ||||||||||||||
Loans with specific allowance: | |||||||||||||||||||
Commercial, secured by real estate | 5,381 | 5,721 | 454 | 5,029 | 206 | ||||||||||||||
Commercial, industrial and other | 164 | 164 | 9 | 283 | 14 | ||||||||||||||
Leases | 65 | 65 | 30 | 29 | — | ||||||||||||||
Real estate - residential mortgage | 781 | 919 | 4 | 940 | 27 | ||||||||||||||
Real estate - construction | — | — | — | — | — | ||||||||||||||
Home equity and consumer | 993 | 1,026 | 8 | 1,090 | 52 | ||||||||||||||
Total: | |||||||||||||||||||
Commercial, secured by real estate | $ | 17,536 | $ | 18,218 | $ | 454 | $ | 17,803 | $ | 572 | |||||||||
Commercial, industrial and other | 782 | 782 | 9 | 901 | 39 | ||||||||||||||
Leases | 65 | 65 | 30 | 29 | — | ||||||||||||||
Real estate - residential mortgage | 1,744 | 1,899 | 4 | 1,936 | 42 | ||||||||||||||
Real estate - construction | 1,471 | 1,471 | — | 1,471 | — | ||||||||||||||
Home equity and consumer | 993 | 1,026 | 8 | 1,096 | 52 | ||||||||||||||
$ | 22,591 | $ | 23,461 | $ | 505 | $ | 23,236 | $ | 705 |
June 30, 2018 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Real Estate - Construction | ||||||||
RISK RATING | |||||||||||
1 | $ | — | $ | 331 | $ | — | |||||
2 | — | 16,766 | — | ||||||||
3 | 67,445 | 44,690 | — | ||||||||
4 | 907,615 | 99,290 | 23,012 | ||||||||
5 | 1,841,406 | 149,975 | 262,623 | ||||||||
5W - Watch | 43,375 | 14,796 | 10,632 | ||||||||
6 - Other assets especially mentioned | 40,607 | 5,509 | — | ||||||||
7 - Substandard | 24,656 | 8,617 | 1,090 | ||||||||
8 - Doubtful | — | — | — | ||||||||
9 - Loss | — | — | — | ||||||||
Total | $ | 2,925,104 | $ | 339,974 | $ | 297,357 |
December 31, 2017 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Real Estate - Construction | ||||||||
RISK RATING | |||||||||||
1 | $ | — | $ | 392 | $ | — | |||||
2 | — | 26,968 | — | ||||||||
3 | 76,824 | 35,950 | — | ||||||||
4 | 862,537 | 96,426 | 15,502 | ||||||||
5 | 1,779,908 | 150,928 | 246,806 | ||||||||
5W - Watch | 47,178 | 8,779 | — | ||||||||
6 - Other assets especially mentioned | 40,245 | 8,670 | — | ||||||||
7 - Substandard | 24,492 | 12,287 | 2,600 | ||||||||
8 - Doubtful | — | — | — | ||||||||
9 - Loss | — | — | — | ||||||||
Total | $ | 2,831,184 | $ | 340,400 | $ | 264,908 |
Three Months Ended June 30, 2018 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Beginning Balance | $ | 25,817 | $ | 1,768 | $ | 1,042 | $ | 1,589 | $ | 2,932 | $ | 2,496 | $ | 35,644 | |||||||||||||
Charge-offs | (210 | ) | (289 | ) | (72 | ) | — | (248 | ) | (144 | ) | (963 | ) | ||||||||||||||
Recoveries | 274 | 76 | 3 | 3 | 3 | 72 | 431 | ||||||||||||||||||||
Provision | 293 | 457 | 291 | (7 | ) | 376 | 82 | 1,492 | |||||||||||||||||||
Ending Balance | $ | 26,174 | $ | 2,012 | $ | 1,264 | $ | 1,585 | $ | 3,063 | $ | 2,506 | $ | 36,604 |
Three Months Ended June 30, 2017 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Beginning Balance | $ | 22,083 | $ | 1,792 | $ | 502 | $ | 1,825 | $ | 2,378 | $ | 3,010 | $ | 31,590 | |||||||||||||
Charge-offs | (83 | ) | (71 | ) | (120 | ) | (169 | ) | — | (427 | ) | (870 | ) | ||||||||||||||
Recoveries | 145 | 27 | 28 | — | 5 | 71 | 276 | ||||||||||||||||||||
Provision | 1,199 | (60 | ) | 119 | 98 | 213 | 258 | 1,827 | |||||||||||||||||||
Ending Balance | $ | 23,344 | $ | 1,688 | $ | 529 | $ | 1,754 | $ | 2,596 | $ | 2,912 | $ | 32,823 |
Six Months Ended June 30, 2018 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Beginning Balance | $ | 25,704 | $ | 2,313 | $ | 630 | $ | 1,557 | $ | 2,731 | $ | 2,520 | $ | 35,455 | |||||||||||||
Charge-offs | (232 | ) | (1,301 | ) | (95 | ) | (93 | ) | (248 | ) | (244 | ) | (2,213 | ) | |||||||||||||
Recoveries | 305 | 96 | 5 | 5 | 8 | 167 | 586 | ||||||||||||||||||||
Provision | 397 | 904 | 724 | 116 | 572 | 63 | 2,776 | ||||||||||||||||||||
Ending Balance | $ | 26,174 | $ | 2,012 | $ | 1,264 | $ | 1,585 | $ | 3,063 | $ | 2,506 | $ | 36,604 |
Six Months Ended June 30, 2017 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Beginning Balance | $ | 21,223 | $ | 1,723 | $ | 548 | $ | 1,964 | $ | 2,352 | $ | 3,435 | $ | 31,245 | |||||||||||||
Charge-offs | (303 | ) | (234 | ) | (163 | ) | (310 | ) | (609 | ) | (611 | ) | (2,230 | ) | |||||||||||||
Recoveries | 364 | 122 | 32 | — | 20 | 225 | 763 | ||||||||||||||||||||
Provision | 2,060 | 77 | 112 | 100 | 833 | (137 | ) | 3,045 | |||||||||||||||||||
Ending Balance | $ | 23,344 | $ | 1,688 | $ | 529 | $ | 1,754 | $ | 2,596 | $ | 2,912 | $ | 32,823 |
June 30, 2018 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 15,185 | $ | 1,753 | $ | 663 | $ | 757 | $ | — | $ | 946 | $ | 19,304 | |||||||||||||
Ending Balance: Collectively evaluated for impairment | 2,909,234 | 338,221 | 81,343 | 320,960 | 297,357 | 314,197 | 4,261,312 | ||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | 685 | — | — | — | — | 1 | 686 | ||||||||||||||||||||
Ending Balance (1) | $ | 2,925,104 | $ | 339,974 | $ | 82,006 | $ | 321,717 | $ | 297,357 | $ | 315,144 | $ | 4,281,302 |
December 31, 2017 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 17,536 | $ | 782 | $ | 65 | $ | 1,744 | $ | 1,471 | $ | 993 | $ | 22,591 | |||||||||||||
Ending Balance: Collectively evaluated for impairment | 2,812,941 | 339,618 | 74,974 | 321,136 | 263,437 | 321,273 | 4,133,379 | ||||||||||||||||||||
Ending balance: Loans acquired with deteriorated credit quality | 707 | — | — | — | — | 3 | 710 | ||||||||||||||||||||
Ending Balance (1) | $ | 2,831,184 | $ | 340,400 | $ | 75,039 | $ | 322,880 | $ | 264,908 | $ | 322,269 | $ | 4,156,680 |
(1) | Excludes deferred fees |
June 30, 2018 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 452 | $ | 8 | $ | 393 | $ | 4 | $ | — | $ | 8 | $ | 865 | |||||||||||||
Ending Balance: Collectively evaluated for impairment | 25,722 | 2,004 | 871 | 1,581 | 3,063 | 2,498 | 35,739 | ||||||||||||||||||||
Ending Balance | $ | 26,174 | $ | 2,012 | $ | 1,264 | $ | 1,585 | $ | 3,063 | $ | 2,506 | $ | 36,604 |
December 31, 2017 | Commercial, Secured by Real Estate | Commercial, Industrial and Other | Leases | Real Estate- Residential Mortgage | Real Estate- Construction | Home Equity and Consumer | Total | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 454 | $ | 9 | $ | 30 | $ | 4 | $ | — | $ | 8 | $ | 505 | |||||||||||||
Ending Balance: Collectively evaluated for impairment | 25,250 | 2,304 | 600 | 1,553 | 2,731 | 2,512 | 34,950 | ||||||||||||||||||||
Ending Balance | $ | 25,704 | $ | 2,313 | $ | 630 | $ | 1,557 | $ | 2,731 | $ | 2,520 | $ | 35,455 |
For the Three Months Ended June 30, 2018 | For the Three Months Ended June 30, 2017 | ||||||||||||||||||||
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 | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Commercial, secured by real estate | 1 | $ | 170 | $ | 170 | 2 | $ | 159 | $ | 159 | |||||||||||
Commercial, industrial and other | 1 | 950 | 950 | 2 | 124 | 124 | |||||||||||||||
2 | $ | 1,120 | $ | 1,120 | 4 | $ | 283 | $ | 283 |
For the Six Months Ended June 30, 2018 | For the Six Months Ended June 30, 2017 | ||||||||||||||||||||
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 | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Commercial, secured by real estate | 3 | $ | 1,827 | $ | 1,827 | 4 | $ | 3,038 | $ | 3,038 | |||||||||||
Commercial, industrial and other | 1 | 950 | 950 | 2 | 124 | 124 | |||||||||||||||
4 | $ | 2,777 | $ | 2,777 | 6 | $ | 3,162 | $ | 3,162 |
June 30, 2018 | June 30, 2017 | ||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||
(dollars in thousands) | |||||||||||||
Commercial, secured by real estate | 2 | $ | 1,234 | — | $ | — | |||||||
Commercial, industrial and other | 1 | 950 | — | — | |||||||||
Leases | 1 | 11 | — | — | |||||||||
Real estate - residential mortgage | — | $ | — | 1 | $ | 254 | |||||||
4 | $ | 2,195 | 1 | $ | 254 |
June 30, 2018 | Notional Amount | Average Maturity (Years) | Weighted Average Fixed Rate | Weighted Average Variable Rate | Fair Value | |||||||||
Classified in Other Assets: | ||||||||||||||
3rd Party interest rate swaps | $ | 190,679 | 9.4 | 4.25 | % | 1 Mo. LIBOR + 2.15% | $ | 8,675 | ||||||
Customer interest rate swaps | 58,754 | 10.8 | 5.15 | % | 1 Mo. LIBOR + 2.12% | 996 | ||||||||
Interest rate swap (cash flow hedge) | 30,000 | 3.0 | 1.10 | % | 3 Mo. LIBOR | 1,516 | ||||||||
Classified in Other Liabilities: | ||||||||||||||
Customer interest rate swaps | $ | 190,679 | 9.4 | 4.25 | % | 1 Mo. LIBOR + 2.15% | $ | (8,675 | ) | |||||
3rd Party interest rate swaps | 58,754 | 10.8 | 5.15 | % | 1 Mo. LIBOR + 2.12% | (996 | ) |
December 31, 2017 | Notional Amount | Average Maturity (Years) | Weighted Average Fixed Rate | Weighted Average Variable Rate | Fair Value | |||||||||
Classified in Other Assets: | ||||||||||||||
3rd Party interest rate swaps | $ | 110,076 | 8.8 | 3.87 | % | 1 Mo. LIBOR + 2.11% | $ | 3,634 | ||||||
Customer interest rate swaps | 82,760 | 11.5 | 4.74 | % | 1 Mo. LIBOR + 2.21% | 1,831 | ||||||||
Interest rate swap (cash flow hedge) | 30,000 | 3.5 | 1.10 | % | 3 Mo. LIBOR | 1,090 | ||||||||
Classified in Other Liabilities: | ||||||||||||||
Customer interest rate swaps | $ | 110,076 | 8.8 | 3.87 | % | 1 Mo. LIBOR + 2.11% | $ | (3,634 | ) | |||||
3rd party interest rate swaps | 82,760 | 11.5 | 4.74 | % | 1 Mo. LIBOR + 2.21% | (1,831 | ) |
For the Year Ended | |||
2018 | $ | 284 | |
2019 | 505 | ||
2020 | 415 | ||
2021 | 326 | ||
2022 | 236 | ||
2023 | 147 |
Number of Shares | Weighted Average Price | |||||
Outstanding, January 1, 2018 | 22,982 | $ | 14.44 | |||
Granted | 10,945 | 20.55 | ||||
Vested | (22,856 | ) | 14.46 | |||
Forfeited | — | — | ||||
Outstanding, June 30, 2018 | 11,071 | $ | 20.44 |
Number of Shares | Weighted Average Price | |||||
Outstanding, January 1, 2018 | 267,732 | $ | 13.93 | |||
Granted | 151,733 | 19.13 | ||||
Vested | (116,921 | ) | 13.80 | |||
Forfeited | (4,650 | ) | 18.61 | |||
Outstanding, June 30, 2018 | 297,894 | $ | 16.56 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
Outstanding, January 1, 2018 | 102,216 | $ | 8.49 | 4.27 | $ | 1,101,806 | ||||||
Granted | — | — | ||||||||||
Exercised | (34,728 | ) | 8.84 | |||||||||
Forfeited | — | — | ||||||||||
Expired | — | — | ||||||||||
Outstanding, June 30, 2018 | 67,488 | $ | 8.31 | 3.36 | $ | 780,627 | ||||||
Options exercisable at June 30, 2018 | 67,488 | $ | 8.31 | 3.36 | $ | 780,627 |
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||||
For the three months ended: | Before Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | Before Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | |||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Net unrealized gains (losses) on available for sale securities | |||||||||||||||||||||||
Net unrealized holding (losses) gains arising during period | $ | (2,203 | ) | $ | 513 | $ | (1,690 | ) | $ | 1,661 | $ | (632 | ) | $ | 1,029 | ||||||||
Reclassification adjustment for net gains arising during the period | — | — | — | 15 | (6 | ) | 9 | ||||||||||||||||
Net unrealized losses (income) | (2,203 | ) | 513 | (1,690 | ) | 1,676 | (638 | ) | 1,038 | ||||||||||||||
Unrealized gains (losses) on derivatives | 67 | (14 | ) | 53 | (186 | ) | 65 | (121 | ) | ||||||||||||||
Other comprehensive (loss) income, net | $ | (2,136 | ) | $ | 499 | $ | (1,637 | ) | $ | 1,490 | $ | (573 | ) | $ | 917 |
June 30, 2018 | June 30, 2017 | ||||||||||||||||||||||
For the six months ended: | Before Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | Before Tax Amount | Tax Benefit (Expense) | Net of Tax Amount | |||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||
Net unrealized gains (losses) on available for sale securities | |||||||||||||||||||||||
Net unrealized holding (losses) gains arising during period | $ | (9,705 | ) | $ | 2,283 | $ | (7,422 | ) | $ | 2,845 | $ | (1,082 | ) | $ | 1,763 | ||||||||
Reclassification adjustment for net gains arising during the period | — | — | — | (2,524 | ) | 884 | (1,640 | ) | |||||||||||||||
Net unrealized losses (gains) | (9,705 | ) | 2,283 | (7,422 | ) | 321 | (198 | ) | 123 | ||||||||||||||
Unrealized gains (losses) on derivatives | 425 | (89 | ) | 336 | (165 | ) | 58 | (107 | ) | ||||||||||||||
Other comprehensive (loss) income, net | $ | (9,280 | ) | $ | 2,194 | $ | (7,086 | ) | $ | 156 | $ | (140 | ) | $ | 16 |
For the Three Months Ended June 30, 2018 | For the Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
Unrealized Losses on Available for Sale Securities | Unrealized Gains on Derivatives | Pension Items | Total | Unrealized Gains (Losses) on Available for Sale Securities | Unrealized Gains on Derivatives | Pension Items | Total | ||||||||||||||||||||||||
Beginning balance | $ | (11,007 | ) | $ | 1,145 | $ | 21 | $ | (9,841 | ) | $ | (1,032 | ) | $ | 686 | $ | 38 | $ | (308 | ) | |||||||||||
Other comprehensive (loss) income before classifications | (1,690 | ) | 53 | — | (1,637 | ) | 1,029 | (121 | ) | — | 908 | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | 9 | — | — | 9 | |||||||||||||||||||||||
Net current period other comprehensive (loss) income | (1,690 | ) | 53 | — | (1,637 | ) | 1,038 | (121 | ) | — | 917 | ||||||||||||||||||||
Ending balance | $ | (12,697 | ) | $ | 1,198 | $ | 21 | $ | (11,478 | ) | $ | 6 | 565 | $ | 38 | $ | 609 |
For the Six Months Ended June 30, 2018 | For the Six Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
Unrealized Losses on Available for Sale Securities | Unrealized Gains on Derivatives | Pension Items | Total | Unrealized Gains (Losses) on Available for Sale Securities | Unrealized Gains on Derivatives | Pension Items | Total | ||||||||||||||||||||||||
Beginning balance | $ | (3,232 | ) | $ | 862 | $ | 21 | $ | (2,349 | ) | $ | (117 | ) | $ | 672 | $ | 38 | $ | 593 | ||||||||||||
Adjustment for implementation of ASU 2016-01 | (2,043 | ) | — | — | (2,043 | ) | — | — | — | — | |||||||||||||||||||||
Adjusted beginning balance | (5,275 | ) | 862 | 21 | (4,392 | ) | (117 | ) | 672 | 38 | 593 | ||||||||||||||||||||
Other comprehensive (loss) income before classifications | (7,422 | ) | 336 | — | (7,086 | ) | 1,763 | (107 | ) | — | 1,656 | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | — | — | — | (1,640 | ) | — | — | (1,640 | ) | |||||||||||||||||||||
Net current period other comprehensive (loss) income | (7,422 | ) | 336 | — | (7,086 | ) | 123 | (107 | ) | — | 16 | ||||||||||||||||||||
Ending balance | $ | (12,697 | ) | $ | 1,198 | $ | 21 | $ | (11,478 | ) | $ | 6 | 565 | $ | 38 | $ | 609 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
June 30, 2018 | |||||||||||||||
Assets: | |||||||||||||||
Investment securities, available for sale | |||||||||||||||
U.S. Treasury and government agencies | $ | 4,885 | $ | 141,460 | $ | — | $ | 146,345 | |||||||
Mortgage-backed securities | — | 405,589 | — | 405,589 | |||||||||||
Obligations of states and political subdivisions | — | 49,222 | — | 49,222 | |||||||||||
Other debt securities | — | 5,075 | — | 5,075 | |||||||||||
Total securities available for sale | 4,885 | 601,346 | — | 606,231 | |||||||||||
Equity securities, at fair value | 3,735 | 13,063 | — | 16,798 | |||||||||||
Derivative assets | — | 11,187 | — | 11,187 | |||||||||||
Total Assets | $ | 8,620 | $ | 625,596 | $ | — | $ | 634,216 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 9,671 | $ | — | $ | 9,671 | |||||||
Total Liabilities | $ | — | $ | 9,671 | $ | — | $ | 9,671 | |||||||
December 31, 2017 | |||||||||||||||
Assets: | |||||||||||||||
Investment securities, available for sale | |||||||||||||||
U.S. Treasury and government agencies | $ | 5,415 | $ | 141,840 | $ | — | $ | 147,255 | |||||||
Mortgage-backed securities | — | 424,331 | — | 424,331 | |||||||||||
Obligations of states and political subdivisions | — | 51,320 | — | 51,320 | |||||||||||
Other debt securities | — | 5,140 | — | 5,140 | |||||||||||
Total securities available for sale | 5,415 | 622,631 | — | 628,046 | |||||||||||
Equity securities, at fair value | 5,147 | 12,942 | — | 18,089 | |||||||||||
Derivative assets | — | 6,555 | — | 6,555 | |||||||||||
Total Assets | $ | 10,562 | $ | 642,128 | $ | — | $ | 652,690 | |||||||
Liabilities: | |||||||||||||||
Derivative liabilities | $ | — | $ | 5,465 | $ | — | $ | 5,465 | |||||||
Total Liabilities | $ | — | $ | 5,465 | $ | — | $ | 5,465 |
(Level 1) | (Level 2) | (Level 3) | Total Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
June 30, 2018 | |||||||||||||||
Assets: | |||||||||||||||
Impaired loans and leases | $ | — | $ | — | $ | 19,304 | $ | 19,304 | |||||||
Loans held for sale | — | 1,692 | — | 1,692 | |||||||||||
Other real estate owned and other repossessed assets | — | — | 2,184 | 2,184 | |||||||||||
December 31, 2017 | |||||||||||||||
Assets: | |||||||||||||||
Impaired loans and leases | $ | — | $ | — | $ | 22,591 | $ | 22,591 | |||||||
Loans held for sale | — | 456 | — | 456 | |||||||||||
Other real estate owned and other repossessed assets | — | — | 843 | 843 |
Carrying Value | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||
(in thousands) | |||||||||||||||||||
June 30, 2018 | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Investment securities held to maturity | $ | 158,832 | $ | 155,316 | $ | — | $ | 147,130 | $ | 8,186 | |||||||||
Federal Home Loan Bank and other membership bank stocks | 16,235 | 16,235 | — | 16,235 | — | ||||||||||||||
Loans and leases, net | 4,240,935 | 4,212,454 | — | — | 4,212,454 | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Certificates of deposit | 806,783 | 799,476 | — | 799,476 | — | ||||||||||||||
Other borrowings | 196,376 | 191,649 | — | 191,649 | — | ||||||||||||||
Subordinated debentures | 104,963 | 102,958 | — | — | 102,958 | ||||||||||||||
December 31, 2017 | |||||||||||||||||||
Financial Assets: | |||||||||||||||||||
Investment securities held to maturity | $ | 139,685 | $ | 138,688 | $ | — | $ | 127,901 | $ | 10,787 | |||||||||
Federal Home Loan Bank and other membership bank stocks | 12,576 | 12,576 | — | 12,576 | — | ||||||||||||||
Loans and leases, net | 4,117,265 | 4,114,516 | — | — | 4,114,516 | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Certificates of deposit | 737,428 | 732,417 | — | 732,417 | — | ||||||||||||||
Other borrowings | 192,011 | 189,080 | — | 189,080 | — | ||||||||||||||
Subordinated debentures | 104,902 | 97,244 | — | — | 97,244 |
• | For the second quarter of 2018, net income of $15.8 million increased from $13.4 million in the second quarter of 2017. Diluted earnings per share of $0.33 represents a 18% increase over $0.28 for the same period in 2017. |
• | For the second quarter of 2018, annualized return on average assets was 1.17%, annualized return on average common equity was 10.71%, and annualized return on average tangible common equity was 13.97% compared to 1.02%, 9.49%, and 12.58%, respectively, for the second quarter of 2017. |
• | For the first six months of 2018, net income of $31.1 million increased from $25.7 million in the first six months of 2017. Diluted earnings per share of $0.65 represents a 23% increase over $0.53 for the same period in 2017. |
• | For the first six months of 2018, annualized return on average assets was 1.16%, annualized return on average common equity was 10.65%, and annualized return on average tangible common equity was 13.94% compared to 1.00%, 9.26%, and 12.31%, respectively, for the first six months of 2017. |
• | Net interest margin (“NIM”) was 3.43% in the second quarter of 2018 compared to 3.41% in the second quarter of 2017. |
• | Total loans net of deferred fees grew $124.8 million, or 3%, to $4.28 billion during the first six months of 2018, with commercial loans secured by real estate and construction loans growing $93.9 million and $32.4 million, or 3% and 12%, respectively. |
• | Total deposits increased $31.3 million, or 1%, from December 31, 2017 to June 30, 2018, to $4.40 billion. |
For the Three Months Ended June 30, 2018 | For the Three Months Ended June 30, 2017 | ||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans and leases (1) | $ | 4,247,443 | $ | 47,659 | 4.50 | % | $ | 4,011,325 | $ | 42,740 | 4.27 | % | |||||||||
Taxable investment securities and other | 729,684 | 4,027 | 2.21 | % | 724,675 | 3,818 | 2.11 | % | |||||||||||||
Tax-exempt securities | 81,677 | 543 | 2.66 | % | 112,400 | 803 | 2.86 | % | |||||||||||||
Federal funds sold (2) | 35,244 | 145 | 1.65 | % | 59,088 | 132 | 0.89 | % | |||||||||||||
Total interest-earning assets | 5,094,048 | 52,374 | 4.12 | % | 4,907,488 | 47,493 | 3.88 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Allowance for loan and lease losses | (36,324 | ) | (32,234 | ) | |||||||||||||||||
Other assets | 379,816 | 365,901 | |||||||||||||||||||
TOTAL ASSETS | $ | 5,437,540 | $ | 5,241,155 | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Savings accounts | $ | 496,630 | $ | 74 | 0.06 | % | $ | 492,991 | $ | 71 | 0.06 | % | |||||||||
Interest-bearing transaction accounts | 2,195,553 | 3,772 | 0.69 | % | 2,295,256 | 2,513 | 0.44 | % | |||||||||||||
Time deposits | 792,270 | 2,655 | 1.34 | % | 559,665 | 1,200 | 0.86 | % | |||||||||||||
Borrowings | 356,511 | 2,266 | 2.54 | % | 344,833 | 2,007 | 2.30 | % | |||||||||||||
Total interest-bearing liabilities | 3,840,964 | 8,767 | 0.91 | % | 3,692,745 | 5,791 | 0.63 | % | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 969,965 | 954,966 | |||||||||||||||||||
Other liabilities | 23,223 | 28,233 | |||||||||||||||||||
Stockholders’ equity | 593,388 | 565,211 | |||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 5,427,540 | $ | 5,241,155 | |||||||||||||||||
Net interest income/spread | 43,607 | 3.21 | % | 41,702 | 3.25 | % | |||||||||||||||
Tax equivalent basis adjustment | 114 | 281 | |||||||||||||||||||
NET INTEREST INCOME | $ | 43,493 | $ | 41,421 | |||||||||||||||||
Net interest margin (3) | 3.43 | % | 3.41 | % |
(1) | Includes non-accrual loans, the effect of which is to reduce the yield earned on loans, and deferred loan fees. |
(2) | Includes interest-bearing cash accounts. |
(3) | Net interest income divided by interest-earning assets. |
For the Three Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(dollars in thousands) | |||||||
Calculation of Efficiency Ratio | |||||||
Total noninterest expense | $ | 27,574 | $ | 25,366 | |||
Amortization of core deposit intangibles | (153 | ) | (190 | ) | |||
Noninterest expense, as adjusted | $ | 27,421 | $ | 25,176 | |||
Net interest income | $ | 43,493 | $ | 41,421 | |||
Noninterest income | 5,709 | 6,111 | |||||
Total revenue | 49,202 | 47,532 | |||||
Tax-equivalent adjustment on municipal securities | 114 | 281 | |||||
(Gains) losses on sales of investment securities | — | 15 | |||||
Total revenue, as adjusted | $ | 49,316 | $ | 47,828 | |||
Efficiency ratio | 55.6 | % | 52.6 | % |
For the Six Months Ended June 30, 2018 | For the Six Months Ended June 30, 2017 | ||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | Average Balance | Interest Income/ Expense | Average Rates Earned/ Paid | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans and leases (1) | $ | 4,220,972 | $ | 93,203 | 4.45 | % | $ | 3,958,564 | $ | 83,151 | 4.24 | % | |||||||||
Taxable investment securities and other | 732,995 | 8,019 | 2.19 | % | 700,971 | 7,417 | 2.12 | % | |||||||||||||
Tax-exempt securities | 83,187 | 1,104 | 2.65 | % | 112,719 | 1,588 | 2.82 | % | |||||||||||||
Federal funds sold (2) | 41,271 | 311 | 1.51 | % | 94,643 | 408 | 0.86 | % | |||||||||||||
Total interest-earning assets | 5,078,425 | 102,637 | 4.07 | % | 4,866,897 | 92,564 | 3.83 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Allowance for loan and lease losses | (36,152 | ) | (32,063 | ) | |||||||||||||||||
Other assets | 381,279 | 362,931 | |||||||||||||||||||
TOTAL ASSETS | $ | 5,423,552 | $ | 5,197,765 | |||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Savings accounts | $ | 492,173 | $ | 143 | 0.06 | % | $ | 491,890 | $ | 139 | 0.06 | % | |||||||||
Interest-bearing transaction accounts | 2,217,676 | 7,115 | 0.65 | % | 2,268,752 | 4,631 | 0.41 | % | |||||||||||||
Time deposits | 776,929 | 4,998 | 1.29 | % | 557,479 | 2,348 | 0.84 | % | |||||||||||||
Borrowings | 347,696 | 4,420 | 2.54 | % | 352,926 | 4,146 | 2.34 | % | |||||||||||||
Total interest-bearing liabilities | 3,834,474 | 16,676 | 0.87 | % | 3,671,047 | 11,264 | 0.62 | % | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 967,246 | 938,460 | |||||||||||||||||||
Other liabilities | 33,261 | 28,730 | |||||||||||||||||||
Stockholders’ equity | 588,571 | 559,528 | |||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 5,423,552 | $ | 5,197,765 | |||||||||||||||||
Net interest income/spread | 85,961 | 3.20 | % | 81,300 | 3.22 | % | |||||||||||||||
Tax equivalent basis adjustment | 232 | 556 | |||||||||||||||||||
NET INTEREST INCOME | $ | 85,729 | $ | 80,744 | |||||||||||||||||
Net interest margin (3) | 3.41 | % | 3.37 | % |
(1) | Includes non-accrual loans, the effect of which is to reduce the yield earned on loans, and deferred loan fees. |
(2) | Includes interest-bearing cash accounts. |
(3) | Net interest income divided by interest-earning assets. |
For the Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
(dollars in thousands) | |||||||
Calculation of Efficiency Ratio | |||||||
Total noninterest expense | $ | 54,711 | $ | 53,836 | |||
Amortization of core deposit intangibles | (310 | ) | (385 | ) | |||
Long Term Debt prepayment fee | — | (2,828 | ) | ||||
Noninterest expense, as adjusted | $ | 54,401 | $ | 50,623 | |||
Net interest income | $ | 85,729 | $ | 80,744 | |||
Noninterest income | 11,043 | 14,205 | |||||
Total revenue | 96,772 | 94,949 | |||||
Tax-equivalent adjustment on municipal securities | 232 | 556 | |||||
(Gains) losses on sales of investment securities | — | (2,524 | ) | ||||
Total revenue, as adjusted | $ | 97,004 | $ | 92,981 | |||
Efficiency ratio | 56.1 | % | 54.4 | % |
(dollars in thousands) | For the Six Months Ended June 30, 2018 | For the Six Months Ended June 30, 2017 | For the Year Ended December 31, 2017 | ||||||||
Balance of the allowance at the beginning of the year | $ | 35,455 | $ | 31,245 | $ | 31,245 | |||||
Loans and leases charged off: | |||||||||||
Commercial, secured by real estate | (232 | ) | (303 | ) | (762 | ) | |||||
Commercial, industrial and other | (1,301 | ) | (234 | ) | (477 | ) | |||||
Leases | (95 | ) | (163 | ) | (305 | ) | |||||
Real estate - mortgage | (93 | ) | (310 | ) | (441 | ) | |||||
Real estate - construction | (248 | ) | (609 | ) | (609 | ) | |||||
Home equity and consumer | (244 | ) | (611 | ) | (852 | ) | |||||
Total loans charged off | (2,213 | ) | (2,230 | ) | (3,446 | ) | |||||
Recoveries: | |||||||||||
Commercial, secured by real estate | 305 | 364 | 396 | ||||||||
Commercial, industrial and other | 96 | 122 | 172 | ||||||||
Leases | 5 | 32 | 59 | ||||||||
Real estate - mortgage | 5 | — | 5 | ||||||||
Real estate - construction | 8 | 20 | 31 | ||||||||
Home equity and consumer | 167 | 225 | 903 | ||||||||
Total recoveries | 586 | 763 | 1,566 | ||||||||
Net charge-offs: | (1,627 | ) | (1,467 | ) | (1,880 | ) | |||||
Provision for loan and lease losses | 2,776 | 3,045 | 6,090 | ||||||||
Ending balance | $ | 36,604 | $ | 32,823 | $ | 35,455 | |||||
Net charge-offs as a percentage of average loans and leases outstanding | 0.08 | % | 0.07 | % | 0.05 | % | |||||
Allowance as a percentage of total loans and leases outstanding | 0.85 | % | 0.81 | % | 0.85 | % | |||||
Allowance as a percentage of non-accrual loans | 256.56 | % | 202.05 | % | 259.65 | % |
• | Net income. Cash provided by operating activities was $43.9 million for the first six months of 2018 compared to $33.1 million for the same period in 2017. |
• | Deposits. Lakeland can offer new products or change its rate structure in order to increase deposits. In the first six months of 2018, Lakeland’s deposits increased $31.3 million. |
• | Sales of securities. At June 30, 2018 the Company had $606.2 million in securities designated “available for sale.” Of these securities, $320.3 million were pledged to secure public deposits and for other purposes required by applicable laws and regulations. |
• | Repayments on loans and leases can also be a source of liquidity to fund further loan growth. |
• | Credit lines. As a member of the FHLB, Lakeland has the ability to borrow overnight based on the market value of collateral pledged. Lakeland had $50.0 million in overnight borrowings from the FHLB on June 30, 2018. Lakeland also has overnight federal funds lines available for it to borrow up to $210.0 million of which $116.3 million was outstanding at June 30, 2018. Lakeland may also borrow from the discount window of the Federal Reserve Bank of New York based on the market value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of June 30, 2018. |
• | Other borrowings. Lakeland can also generate funds by utilizing long-term debt or securities sold under agreements to repurchase that would be collateralized by security or mortgage collateral. At times the market values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call. |
Total | Within One Year | After One But Within Three Years | After Three But Within Five Years | After Five Years | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Minimum annual rentals on noncancellable operating leases | $ | 29,794 | $ | 3,235 | $ | 5,978 | $ | 4,949 | $ | 15,632 | |||||||||
Benefit plan commitments | 5,811 | 306 | 793 | 855 | 3,857 | ||||||||||||||
Remaining contractual maturities of time deposits | 806,783 | 570,881 | 194,736 | 41,166 | — | ||||||||||||||
Subordinated debentures | 104,963 | — | — | — | 104,963 | ||||||||||||||
Loan commitments | 986,829 | 681,689 | 113,716 | 40,165 | 151,259 | ||||||||||||||
Other borrowings | 196,376 | 66,082 | 81,040 | 39,817 | 9,437 | ||||||||||||||
Interest on other borrowings* | 65,751 | 8,794 | 15,142 | 12,182 | 29,633 | ||||||||||||||
Standby letters of credit | 20,228 | 18,400 | 1,748 | — | 80 | ||||||||||||||
Total | $ | 2,216,535 | $ | 1,349,387 | $ | 413,153 | $ | 139,134 | $ | 314,861 |
Tier 1 Capital to Total Average Assets Ratio | Common Equity Tier 1 to Risk-Weighted Assets Ratio | Tier 1 Capital to Risk- Weighted Assets Ratio | Total Capital to Risk- Weighted Assets Ratio | ||||||||||||||||||||
June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | ||||||||||||||||
The Company | 9.43 | % | 9.12 | % | 10.49 | % | 10.18 | % | 11.16 | % | 10.87 | % | 13.67 | % | 13.40 | % | |||||||
Lakeland Bank | 10.26 | % | 10.06 | % | 12.14 | % | 12.00 | % | 12.14 | % | 12.00 | % | 13.01 | % | 12.86 | % | |||||||
Required capital ratios including conservation buffer | 4.00 | % | 4.00 | % | 6.38 | % | 5.750 | % | 7.88 | % | 7.250 | % | 9.88 | % | 9.250 | % | |||||||
“Well capitalized” institution under FDIC Regulations | 5.00 | % | 5.00 | % | 6.50 | % | 6.50 | % | 8.00 | % | 8.00 | % | 10.00 | % | 10.00 | % |
(dollars in thousands, except per share amounts) | June 30, 2018 | December 31, 2017 | |||||
Calculation of Tangible Book Value per Common Share | |||||||
Total common stockholders’ equity at end of period - GAAP | $ | 597,864 | $ | 583,122 | |||
Less: | |||||||
Goodwill | 136,433 | 136,433 | |||||
Other identifiable intangible assets, net | 2,052 | 2,362 | |||||
Total tangible common stockholders’ equity at end of period - Non-GAAP | $ | 459,379 | $ | 444,327 | |||
Shares outstanding at end of period | 47,484 | 47,354 | |||||
Book value per share - GAAP | $ | 12.59 | $ | 12.31 | |||
Tangible book value per share - Non-GAAP | $ | 9.67 | $ | 9.38 | |||
Calculation of Tangible Common Equity to Tangible Assets | |||||||
Total tangible common stockholders’ equity at end of period - Non-GAAP | $ | 459,379 | $ | 444,327 | |||
Total assets at end of period | $ | 5,534,488 | $ | 5,405,639 | |||
Less: | |||||||
Goodwill | 136,433 | 136,433 | |||||
Other identifiable intangible assets, net | 2,052 | 2,362 | |||||
Total tangible assets at end of period - Non-GAAP | $ | 5,396,003 | $ | 5,266,844 | |||
Common equity to assets - GAAP | 10.80 | % | 10.79 | % | |||
Tangible common equity to tangible assets - Non-GAAP | 8.51 | % | 8.44 | % |
For the Three Months Ended | For the Six Months Ended | ||||||||||||||
(dollars in thousands) | June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||
Calculation of Return on Average Tangible Common Equity | |||||||||||||||
Net income - GAAP | $ | 15,838 | $ | 13,370 | $ | 31,093 | $ | 25,682 | |||||||
Total average common stockholders’ equity | $ | 593,388 | $ | 565,211 | $ | 588,571 | $ | 559,528 | |||||||
Less: | |||||||||||||||
Average goodwill | 136,433 | 135,755 | 136,433 | 135,751 | |||||||||||
Average other identifiable intangible assets, net | 2,134 | 3,069 | 2,217 | 3,172 | |||||||||||
Total average tangible common stockholders’ equity - Non-GAAP | $ | 454,821 | $ | 426,387 | $ | 449,921 | $ | 420,605 | |||||||
Return on average common stockholders’ equity - GAAP | 10.71 | % | 9.49 | % | 10.65 | % | 9.26 | % | |||||||
Return on average tangible common stockholders’ equity - Non-GAAP | 13.97 | % | 12.58 | % | 13.94 | % | 12.31 | % |
Changes in Interest Rates | |||||
Rate Ramp | +200 bp | -200 bp | |||
Asset/Liability policy limit | (5.0 | )% | (5.0 | )% | |
June 30, 2018 | (1.3 | )% | (2.0 | )% | |
December 31, 2017 | (1.1 | )% | (3.6 | )% |
Changes in Interest Rates | |||||||||||
Rate Shock | +300 bp | +200 bp | +100 bp | -100 bp | |||||||
Asset/Liability policy limit | (15.0 | )% | (10.0 | )% | (5.0 | )% | (5.0 | )% | |||
June 30, 2018 | (1.5 | )% | (1.0 | )% | (0.4 | )% | (2.5 | )% | |||
December 31, 2017 | 0.3 | % | 0.3 | % | 0.3 | % | (5.9 | )% |
Changes in Interest Rates | |||||||||||
Rate Shock | +300 bp | +200 bp | +100 bp | -100 bp | |||||||
Asset/Liability policy limit | (25.0 | )% | (20.0 | )% | (10.0 | )% | (10.0 | )% | |||
June 30, 2018 | (5.4 | )% | (3.4 | )% | (1.6 | )% | 0.3 | % | |||
December 31, 2017 | (5.0 | )% | (3.3 | )% | (1.4 | )% | (0.4 | )% |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | Not Applicable |
Item 3. Defaults Upon Senior Securities | Not Applicable |
Item 4. Mine Safety Disclosures | Not Applicable |
Item 5. Other Information | Not Applicable |
3.1 | |
31.1 | |
31.2 | |
32.1 | |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
Lakeland Bancorp, Inc. |
(Registrant) |
/s/ Thomas J. Shara |
Thomas J. Shara |
President and Chief Executive Officer |
(Principal Executive Officer) |
/s/ Thomas F. Splaine |
Thomas F. Splaine |
Executive Vice President and Chief Financial Officer |
(Principal Financial Officer) |
Name | Address |
Bruce D. Bohuny | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Mary Ann Deacon | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Brian Flynn | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Mark J. Fredericks | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
James E. Hanson II | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Janeth C. Hendershot | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Lawrence R. Inserra, Jr. | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Thomas J. Marino | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Robert E. McCracken | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Robert B. Nicholson, III | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
Thomas J. Shara | 250 Oak Ridge Road Oak Ridge, NJ 07438 |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Thomas J. Shara | |
Thomas J. Shara | |
President and Chief Executive Officer | |
(Principal Executive Officer) |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Thomas F. Splaine, Jr. | |
Thomas F. Splaine, Jr. | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial Officer) |
/s/ Thomas J. Shara | |
Thomas J. Shara, | |
President and Chief Executive Officer | |
(Principal Executive Officer) | |
/s/ Thomas F. Splaine, Jr. | |
Thomas F. Splaine, Jr. | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial Officer) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 27, 2018 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | LBAI | |
Entity Registrant Name | LAKELAND BANCORP INC | |
Entity Central Index Key | 0000846901 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 47,485,283 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity; fair value | $ 155,316 | $ 138,688 |
Common stock, par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 47,484,057 | 47,353,864 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 15,838 | $ 13,370 | $ 31,093 | $ 25,682 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | ||||
Unrealized (losses) gains on securities available for sale | (1,690) | 1,029 | (7,422) | 1,763 |
Reclassification for securities losses (gains) included in net income | 0 | 9 | 0 | (1,640) |
Unrealized gains (losses) on derivatives | 53 | (121) | 336 | (107) |
Other comprehensive (loss) income | (1,637) | 917 | (7,086) | 16 |
TOTAL COMPREHENSIVE INCOME | $ 14,201 | $ 14,287 | $ 24,007 | $ 25,698 |
Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. and its subsidiaries, including Lakeland Bank (“Lakeland”) and the Bank’s wholly owned subsidiaries (collectively, the “Company”). The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and predominant practices within the banking industry. The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are, in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the six months ended June 30, 2018 do not necessarily indicate the results that the Company will achieve for all of 2018. Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission. These unaudited interim financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. |
Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | REVENUE RECOGNITION The Company’s primary source of revenue is interest income generated from loans, leases and investment securities. Interest income is recognized according to the terms of the financial instrument agreement over the life of the loan, lease or investment security unless it is determined that the counterparty is unable to continue making interest payments. Interest income also includes prepaid interest fees from commercial customers, which approximates the interest foregone on the balance of the loan prepaid. The Company’s additional source of income, also referred to as noninterest income, is generated from deposit related fees, interchange fees, loan and lease fees, merchant fees, loan sales and other miscellaneous income and is largely based on contracts with customers. In these cases, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The Company considers a customer to be any party to which the Company will provide goods or services that are an output of the Company’s ordinary activities in exchange for consideration. There is little seasonality with regards to revenue from contracts with customers and all inter-company revenue is eliminated when the Company’s financial statements are consolidated. Generally, the Company enters into contracts with customers that are short-term in nature where the performance obligations are fulfilled and payment is processed at the same time. Such examples include revenue related to merchant fees, interchange fees and investment services income. In addition, revenue generated from existing customer relationships such as deposit accounts are also considered short-term in nature, because the relationship may be terminated at any time and payment is processed at the time performance obligations are fulfilled. As a result, the Company does not have contract assets, contract liabilities or related receivable accounts for contracts with customers. In cases where collectability is a concern, the Company does not record revenue. Generally, the pricing of transactions between the Company and each customer is either (i) established within a legally enforceable contract between the two parties, as is the case with the loan sales, or (ii) disclosed to the customer at a specific point in time, as is the case when a deposit account is opened or before a new loan is underwritten. Fees are usually fixed at a specific amount or as a percentage of a transaction amount. No judgment or estimates by management are required to record revenue related to these transactions and pricing is clearly identified within these contracts. The Company primarily operates in one geographic region, Northern and Central New Jersey and contiguous areas. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. We disaggregate our revenue from contracts with customers by contract-type and timing of revenue recognition, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Noninterest income not generated from customers during the Company’s ordinary activities primarily relates to mortgage servicing rights, gains/losses on the sale of investment securities, gains/losses on the sale of other real estate owned, gains/losses on the sale of property, plant and equipment, and income from bank owned life insurance. The following table sets forth the components of noninterest income for the three and six months ended June 30, 2018 and 2017:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE The following schedule shows the Company’s earnings per share calculations for the periods presented:
There were no antidilutive options to purchase common stock excluded from the computation for the three and six months ended June 30, 2018 and 2017. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES
The following table shows investment securities by stated maturity. Securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date (in thousands):
The following table shows proceeds from sales of securities and gross gains and losses on sales of securities for the periods indicated (in thousands):
There were no other-than-temporary impairments during the six months ended June 30, 2018 or 2017. Gains or losses on sales of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. Securities with a carrying value of approximately $363.9 million and $400.4 million at June 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits and for other purposes required by applicable laws and regulations. The following table indicates the length of time individual securities have been in a continuous unrealized loss position for the periods presented:
Management has evaluated the securities in the above table and has concluded that none of the securities are other-than-temporarily impaired. The fair values being below cost is due to interest rate movements and is deemed temporary. All investment securities are evaluated on a periodic basis to identify any factors that would require a further analysis. In evaluating the Company’s securities, management considers the following items:
If the above factors indicate that an additional analysis is required, management will perform and consider the results of a discounted cash flow analysis. Equity securities at fair value The Company has an equity securities portfolio which consists of investments in other financial institutions for market appreciation purposes, and investments in Community Reinvestment funds. The market value of these investments was $16.8 million and $18.1 million as of June 30, 2018 and December 31, 2017, respectively. Upon implementation of Accounting Standards Update 2016-01 - Financial Instruments ("ASU 2016-01"), the Company made a cumulative adjustment of $2.0 million from other comprehensive income to retained earnings as of January 1, 2018. In the first six months of 2018, the Company recorded $33,000 in market value gain on equity securities in other income. As of June 30, 2018, the equity investments in other financial institutions and Community Reinvestment funds had a market value of $3.7 million and $13.1 million, respectively. The Community Reinvestment funds include $9.5 million that are invested in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to these investments. The investment funds also include $3.5 million that are primarily invested in community development loans that are guaranteed by the Small Business Administration (“SBA”). Because the funds are primarily guaranteed by the federal government there are minimal changes in market value between accounting periods. These funds can be redeemed with 60 days notice at the net asset value less unpaid management fees with the approval of the fund manager. As of June 30, 2018, the net amortized cost equaled the market value of the investment. There are no unfunded commitments related to these investments. |
Loans, Leases and Other Real Estate |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Leases and Other Real Estate | LOANS, LEASES AND OTHER REAL ESTATE The following sets forth the composition of the Company’s loan and lease portfolio:
At June 30, 2018 and December 31, 2017, home equity and consumer loans included overdraft deposit balances of $356,000 and $966,000, respectively. At June 30, 2018 and December 31, 2017, the Company had $1.2 billion and $1.1 billion, respectively, in loans pledged for actual and potential borrowings at the Federal Home Loan Bank of New York (“FHLB”). Purchased Credit Impaired Loans The carrying value of loans acquired in the Pascack Community Bank ("Pascack") acquisition and accounted for in accordance with ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” was $175,000 at June 30, 2018, which was $642,000 less than the balance at the time of acquisition on January 7, 2016. In first quarter 2017, one of the Pascack purchased credit impaired (“PCI”) loans totaling $127,000 experienced further credit deterioration and was fully charged off. In the second quarter of 2017, a loan with a net value of $218,000 was fully paid off. The carrying value of loans acquired in the Harmony Bank ("Harmony") acquisition was $511,000 at June 30, 2018 which was $258,000 less than the balance at acquisition date on July 1, 2016. In the second quarter of 2017, a loan with a net value of $247,000 was fully paid off. The following table presents changes in the accretable yield for PCI loans:
Non-Performing Assets and Past Due Loans The following schedule sets forth certain information regarding the Company’s non-performing assets and its accruing troubled debt restructurings, excluding PCI loans:
Non-accrual loans included $4.9 million and $2.7 million of troubled debt restructurings for the periods ended June 30, 2018 and December 31, 2017, respectively. Non-accrual real estate-construction loans declined from December 31, 2017 to June 30, 2018 due to a foreclosure in a property which resulted in the property moving into other real estate at the end of June 2018. At June 30, 2018 and December 31, 2017, the Company had $2.3 million and $2.7 million, respectively, in residential mortgages and consumer home equity loans that were in the process of foreclosure. An age analysis of past due loans, segregated by class of loans as of June 30, 2018 and December 31, 2017, is as follows:
Impaired Loans The Company defines impaired loans as all non-accrual loans and leases with recorded investments of $500,000 or greater. Impaired loans also include all loans that have been modified in troubled debt restructurings. Impaired loans as of June 30, 2018 and December 31, 2017 are as follows:
Interest income recognized on impaired loans was $308,000 and $336,000 for the six months ended June 30, 2018 and 2017, respectively. Interest that would have been accrued on impaired loans during the first six months of 2018 and 2017 had the loans been performing under original terms would have been $566,000 and $813,000, respectively. Credit Quality Indicators The class of loans is determined by internal risk rating. Management closely and continually monitors the quality of its loans and leases and assesses the quantitative and qualitative risks arising from the credit quality of its loans and leases. Lakeland assigns a credit risk rating to all commercial loans and loan commitments. The credit risk rating system has been developed by management to provide a methodology to be used by loan officers, department heads and senior management in identifying various levels of credit risk that exist within Lakeland’s commercial loan portfolios. The risk rating system assists senior management in evaluating Lakeland’s commercial loan portfolio, analyzing trends, and determining the proper level of required reserves to be recommended to the Board. In assigning risk ratings, management considers, among other things, a borrower’s debt service coverage, earnings strength, loan to value ratios, industry conditions and economic conditions. Management categorizes commercial loans and commitments into a one (1) to nine (9) numerical structure with rating 1 being the strongest rating and rating 9 being the weakest. Ratings 1 through 5W are considered ‘Pass’ ratings. The following table shows the Company’s commercial loan portfolio as of June 30, 2018 and December 31, 2017, by the risk ratings discussed above (in thousands):
The risk rating tables above do not include residential mortgage loans, consumer loans, or leases because they are evaluated on their payment status. Allowance for Loan and Lease Losses The following table details activity in the allowance for loan and lease losses by portfolio segment for the three and six months ended June 30, 2018 and 2017:
Loans receivable summarized by portfolio segment and impairment method are as follows:
The allowance for loan and lease losses is summarized by portfolio segment and impairment classification as follows:
Lakeland also maintains a reserve for unfunded lending commitments which is included in other liabilities. This reserve was $2.5 million for each of the periods ended June 30, 2018 and December 31, 2017. The Company analyzes the adequacy of the reserve for unfunded lending commitments quarterly. Troubled Debt Restructurings Loans are classified as troubled debt restructured loans in cases where borrowers experience financial difficulties and Lakeland makes certain concessionary modifications to contractual terms. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, a moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate of a new loan with similar risk. The Company considers the potential losses on these loans as well as the remainder of its impaired loans while considering the adequacy of the allowance for loan and lease losses. The following table summarizes loans that have been restructured during the three and six months ended June 30, 2018 and 2017:
The following table summarizes as of June 30, 2018 and 2017, loans that were restructured within the previous twelve months that have subsequently defaulted:
Other Real Estate and Other Repossessed Assets At June 30, 2018, the Company had other real estate owned and other repossessed assets of $2.2 million and $0, respectively. At December 31, 2017, the Company had other real estate owned and other repossessed assets of $843,000 and $0, respectively. Included in other real estate owned was residential property acquired as a result of foreclosure proceedings totaling $1.9 million and $843,000 that the Company held at the periods ended June 30, 2018 and December 31, 2017, respectively. |
Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | DERIVATIVES Lakeland is a party to interest rate derivatives that are not designated as hedging instruments. Under a program, Lakeland executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Lakeland executes with a third party, such that Lakeland minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. Lakeland had $487,000 and $492,000, respectively, in available for sale securities pledged for collateral on its interest rate swaps with the financial institution for June 30, 2018 and December 31, 2017. In June 2016, the Company entered into two cash flow hedges in order to hedge the variable cash outflows associated with its subordinated debentures. The notional value of these hedges was $30.0 million. The Company’s objectives in using the cash flow hedge are to add stability to interest expense and to manage its exposure to interest rate movements. The Company used interest rate swaps designated as cash flow hedges which involved the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. In these particular hedges the Company is paying a third party an average of 1.10% in exchange for a payment at 3 month LIBOR. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the six months ended June 30, 2018, the Company did not record any hedge ineffectiveness. The Company recognized $132,000 and $(4,000) of accumulated other comprehensive income (loss) that was reclassified into interest expense for the first six months of 2018 and 2017, respectively. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s debt. During the next twelve months, the Company estimates that $371,000 will be reclassified as a decrease to interest expense should the rate environment remain the same. The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The Company had goodwill of $136.4 million for both of the periods ended June 30, 2018 and December 31, 2017. The Company reviews its goodwill and intangible assets annually, on November 30, or more frequently if conditions warrant, for impairment. In testing goodwill for impairment, the Company compares the estimated fair value of its reporting unit to its carrying amount, including goodwill. The Company has determined that it has one reporting unit, Community Banking. The Company had core deposit intangible of $2.1 million and $2.4 million for the periods ended June 30, 2018 and December 31, 2017, respectively. The estimated future amortization expense for the remainder of 2018 and for each of the succeeding five years ended December 31 is as follows (dollars in thousands):
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Borrowings |
6 Months Ended |
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Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Repurchase Agreements At June 30, 2018, the Company had federal funds purchased and securities sold under agreements to repurchase of $166.3 million and $31.6 million, respectively. The securities sold under agreements to repurchase are overnight sweep arrangement accounts with our customers. As of June 30, 2018, the Company had $35.0 million in mortgage backed securities pledged for its securities sold under agreements to repurchase. At times the market values of securities collateralizing our securities sold under agreements to repurchase may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional collateral to meet that margin call. Repayment of Borrowings In the second quarter of 2018, the Company repaid all of its $20.0 million in maturing long-term securities sold under agreements to repurchase. In the first quarter of 2017, the Company prepaid an aggregate of $20.0 million in long-term securities sold under agreements to repurchase and recorded $2.2 million in long-term debt prepayment fees. The Company also prepaid an aggregate of $34.0 million in borrowings from the Federal Home Loan Bank of New York and recorded $638,000 in long-term debt prepayment fees. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | SHARE-BASED COMPENSATION The Company grants restricted stock, restricted stock units (“RSUs”) and stock options under the 2018 Omnibus Equity Incentive Plan and previously granted such awards under the 2009 Equity Compensation Program. The Company recognized share based compensation expense on its restricted stock of $118,000 and $165,000 for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, there was unrecognized compensation cost of $113,000 related to unvested restricted stock that is expected to be recognized over a weighted average period of approximately 0.55 years. The Company recognized share based compensation expense of $1.3 million and $1.4 million on RSU's for the six months ended June 30, 2018 and 2017, respectively. Unrecognized compensation expense related to RSUs was approximately $3.2 million as of June 30, 2018, and that cost is expected to be recognized over a period of 1.63 years. There was no unrecognized compensation expense related to unvested stock options as of June 30, 2018. In the first six months of 2018, the Company granted 10,945 shares of restricted stock to non-employee directors at a grant date fair value of $20.55 per share under the 2009 Equity Compensation Program. The restricted stock vests one year from the date it was granted. Compensation expense on this restricted stock is expected to be $225,000 over a one year period. In the first six months of 2017, the Company granted 13,176 shares of restricted stock to non-employee directors at a grant date fair value of $18.20 per share under the 2009 Equity Compensation Program. The restricted stock vested one year from the date it was granted. Compensation expense on this restricted stock was $240,000 over a one year period. The following is a summary of the Company’s restricted stock activity during the six months ended June 30, 2018:
In the first six months of 2018, the Company granted 151,733 RSUs to certain officers at a weighted average grant date fair value of $19.13 per share under the Company’s 2009 Equity Compensation Program. These units vest within a range of two to three years. A portion of these RSUs will vest subject to certain performance conditions in the restricted stock unit agreement. There are also certain provisions in the compensation program which state that if a recipient of the RSUs reaches a certain age and years of service, the person has effectively earned a portion of the RSUs at that time. Compensation expense on the restricted stock units issued in the first six months of 2018 is expected to average approximately $968,000 per year over a three year period. In the first six months of 2017, the Company granted 117,673 RSUs at a weighted average grant date fair value of $19.96 per share under the Company’s 2009 Equity Compensation Program. Compensation expense on these restricted stock units is expected to average approximately $783,000 per year over a three year period. The following is a summary of the Company’s RSU activity during the six months ended June 30, 2018:
There were no grants of stock options in the first six months of 2018 or 2017. Option activity under the Company’s stock option plans is as follows:
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options). There were 34,728 and 31,769 stock options exercised during the first six months of 2018 and 2017, respectively. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2018 and 2017 was $406,000 and $318,000, respectively. Exercise of stock options during the first six months of 2018 and 2017, resulted in cash receipts of $307,000 and $313,000, respectively. |
Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | COMPREHENSIVE INCOME The components of other comprehensive income (loss) are as follows:
The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented, net of tax (in thousands):
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Estimated Fair Value of Financial Instruments and Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Value of Financial Instruments and Fair Value Measurement | ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest level priority to unobservable inputs (level 3 measurements). The following describes the three levels of fair value hierarchy: Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities; includes U.S. Treasury Notes, and other U.S. Government Agency securities that actively trade in over-the-counter markets; equity securities and mutual funds that actively trade in over-the-counter markets. Level 2 – quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability including yield curves, volatilities, and prepayment speeds. Level 3 – unobservable inputs for the asset or liability that reflect the Company’s own assumptions about assumptions that market participants would use in the pricing of the asset or liability and that are consequently not based on market activity but upon particular valuation techniques. The Company’s assets that are measured at fair value on a recurring basis are it’s available for sale investment securities and its equity securities. The Company obtains fair values on its securities using information from a third party servicer. If quoted prices for securities are available in an active market, those securities are classified as Level 1 securities. The Company has U.S. Treasury Notes and certain equity securities that are classified as Level 1 securities. Level 2 securities were primarily comprised of U.S. Agency bonds, residential mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, issuer spreads, bids and offers. On a quarterly basis, the Company reviews the pricing information received from the Company’s third party pricing service. This review includes a comparison to non-binding third-party quotes. The fair values of derivatives are based on valuation models from a third party using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter party as of the measurement date (Level 2). The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the six months ended June 30, 2018, the Company did not make any transfers between any levels within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
The following table sets forth the Company’s assets subject to fair value adjustments (impairment) on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
Impaired loans are evaluated and valued at the time the loan is identified as impaired at the lower of cost or market value of the underlying collateral. Because most of Lakeland’s impaired loans are collateral dependent, fair value is generally measured based on the value of the collateral, less estimated costs to sell, securing these loans and leases and is classified at a level 3 in the fair value hierarchy. Collateral may be real estate, accounts receivable, inventory, equipment and/or other business assets. The value of real estate is assessed based on appraisals by qualified third party licensed appraisers. The appraisers may use the sales comparison approach, the cost approach and/or the income approach to value the collateral using discount rates (with ranges of 5-11%) or capitalization rates (with ranges of 5-9%) to evaluate the property. The value of the equipment may be determined by an appraiser, if significant, inquiry through a recognized valuation resource, or by the value on the borrower’s financial statements. Field examiner reviews on business assets may be conducted based on the loan exposure and reliance on this type of collateral. Appraised and reported values may be adjusted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Loans that are not collateral dependent are evaluated based on a discounted cash flow method. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. The Company has a held for sale loan portfolio that consists of residential mortgages that are being sold in the secondary market. The Company records these mortgages at the lower of cost or market value. Fair value is generally determined by the value of purchase commitments. Other real estate owned (“OREO”) and other repossessed assets, representing property acquired through foreclosure, are recorded at fair value less estimated disposal costs of the acquired property on the date of acquisition and thereafter re-measured and carried at lower of cost or fair market value. Fair value on other real estate owned is based on the appraised value of the collateral using the sales comparison approach and/or the income approach with discount rates or capitalization rates similar to those used in impaired loan valuation. The fair value of other repossessed assets is estimated by inquiry through recognized valuation resources. Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Changes in economic conditions, locally or nationally, could impact the value of the estimated amounts of impaired loans, OREO and other repossessed assets. Fair Value of Certain Financial Instruments Estimated fair values have been determined by the Company using the best available data and an estimation methodology suitable for each category of financial instruments. There may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values. The estimation methodologies used, the estimated fair values, and recorded book balances at June 30, 2018 and December 31, 2017 are outlined below. This summary, as well as the table below, excludes financial assets and liabilities for which carrying value approximates fair value. For financial assets, these include cash and cash equivalents. For financial liabilities, these include noninterest-bearing demand deposits, savings and interest-bearing transaction accounts and federal funds sold and securities sold under agreements to repurchase. The estimated fair value of demand, savings and interest-bearing transaction accounts is the amount payable on demand at the reporting date. Carrying value is used because there is no stated maturity on these accounts, and the customer has the ability to withdraw the funds immediately. Also excluded from this summary and the following table are those financial instruments recorded at fair value on a recurring basis, as previously described. The fair value of investment securities held to maturity was measured using information from the same third-party servicer used for investment securities available for sale using the same methodologies discussed above. Investment securities held to maturity includes $7.2 million in short-term municipal bond anticipation notes and $1.0 million in subordinated debt that are non-rated and do not have an active secondary market or information readily available on standard financial systems. As a result, the securities are classified as Level 3 securities. Management performs a credit analysis before investing in these securities. FHLB stock is an equity interest that can be sold to the issuing FHLB, to other Federal Home Loan Banks, or to other member banks at its par value. Because ownership of these securities is restricted, they do not have a readily determinable fair value. As such, the Company’s FHLB stock is recorded at cost or par value and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company’s evaluation primarily includes an evaluation of liquidity, capitalization, operating performance, commitments, and regulatory or legislative events. The net loan portfolio at June 30, 2018 has been valued using an exit price approach incorporating discounts for credit and liquidity. This is not comparable with the fair values used for December 31, 2017, which are based on entrance prices. For December 31, 2017, the loan portfolio was valued using a present value discounted cash flow where market prices are not available. The discount rate used in these calculations is the estimated current market rate adjusted for credit risk. For fixed maturity certificates of deposit, fair value is estimated based on the present value of discounted cash flows using the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value. The fair value of long-term debt is based upon the discounted value of contractual cash flows. The Company estimates the discount rate using the rates currently offered for similar borrowing arrangements. The fair value of subordinated debentures is based on bid/ask prices from brokers for similar types of instruments. The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The fair value of commitments to extend credit and standby letters of credit are deemed immaterial. The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2018 and December 31, 2017:
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Recent Accounting Pronouncements |
6 Months Ended |
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Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCMENTS In June 2018, the Financial Accounting Standards Board ("FASB") issued an update expanding earlier guidance on stock compensation to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially the same. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2018. Earlier adoption is permitted. Because the Company does not have share-based payments issued to nonemployees, the adoption of this update is not expected to have a material impact on the Company's financial statements. In March 2018, the FASB issued an update regarding the accounting implications of the recently issued Tax Cuts and Jobs Act (the "Tax Act"). The update clarifies that in a company's financial statements that include the reporting period in which the Tax Act was enacted, a company must first reflect the income tax effects of the Tax Act in which the accounting under U.S. GAAP is complete. Those amounts would not be provisional amounts. The company would also report provisional amounts for those specific income tax effects for which the accounting under U.S. GAAP will be incomplete but for which a reasonable estimate can be determined. If there are income tax effects for the Tax Act for which a reasonable estimate cannot be determined, the company would not report provisional amounts and would continue to apply U.S. GAAP based on the tax laws that were in effect immediately prior to the Tax Act being enacted. This accounting update is effective immediately. The Company believes its accounting for the the income tax effects of the Tax Act is complete. Technical corrections or other forthcoming guidance could change how we interpret provisions of the Tax Act, which may impact our effective tax rate and could affect our deferred tax assets, tax positions and/or our tax liabilities. In February 2018, the FASB issued an update (ASU 2018-02) regarding the reclassification of certain tax effects from accumulated other comprehensive income. This update requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate tax rate. The amount of the reclassification would be the difference between the historical 35% corporate income tax rate and the newly enacted 21% corporate tax rate. This update eliminates the stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Act and improves the usefulness of information reported to financial statement users. The amendments are effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption of the amendments is permitted including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued and all other entities for reporting periods for which financial statements have not yet been made available for issuance. An entity may apply the amendments in the update retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company elected to adopt this update in December 2017, and recorded a $420,000 increase to retained earnings and reduction to accumulated other comprehensive income in December 2017. In August 2017, the FASB issued an update intended to improve and simplify accounting rules around hedge accounting. Amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2019. The Company is still evaluating the impact that this guidance will have on its financial statements. In July 2017, the FASB issued guidance which simplifies the accounting for certain financial instruments with down round features, a provision in an equity-linked financial instrument (or embedded feature) that provides a downward adjustment of the current exercise price based on the price of future equity offerings. The provisions of the new guidance related to down rounds are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of this update is not expected to have a material impact on the Company’s financial statements because the Company does not have any equity-linked financial instruments that have such down round features. In May 2017, the FASB issued an update which provides clarity and reduces diversity in practice when accounting for the modification of terms and conditions for share-based payment awards. Previous accounting guidance did not distinguish between modifications which were substantive from modifications that were merely administrative. The accounting standards update requires entities to account for the effects of a modification unless the following three conditions are met: the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This update will be effective for annual and interim periods beginning after December 15, 2017. The adoption of this update did not have an impact on the Company’s financial statements. In March 2017, the FASB issued an update which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. Under current GAAP, entities amortize the premium as an adjustment of yield over the contractual life of the instrument even if the holder is certain that the call will be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings. The update shortens the amortization period for certain callable debt securities held at a premium and requires the premium be amortized to the earliest call date. This update will be effective for annual and interim periods beginning after December 15, 2018. Entities are required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this update is not expected to have a material impact on the Company’s financial statements. In March 2017, the FASB issued an update which changes the presentation of net periodic pension cost and net periodic postretirement benefit cost in a company’s income statement. The amendment requires that an employer report the service cost component in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendment is effective for annual and interim periods beginning after December 15, 2017. Because the Company has minimal benefit plans that require the measurement of net periodic pension cost and net periodic post retirement benefit cost, the adoption of this update did not have an impact on the Company’s financial statements. In January 2017, the FASB issued an update to simplify the test for goodwill impairment. This amendment eliminates Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. This update will be effective for the Company’s financial statements for annual years beginning after December 15, 2019. The adoption of this update is not expected to have a material impact on the Company’s financial statements. In January 2017, the FASB issued an update that clarifies the definition of a business as it pertains to business combinations. This amendment affects all companies and other reporting organizations that must determine whether they have sold or acquired a business. This update will be effective for the Company’s financial statements for fiscal years beginning after December 15, 2017. The adoption of this update did not have an impact on the Company’s financial statements. In September 2016, the FASB issued an accounting standards update to address diversity in presentation in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017. The adoption of this update did not have an impact on the Company’s financial statements. In June 2016, the FASB issued an accounting standards update pertaining to the measurement of credit losses on financial instruments. This update requires the measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2019. The Company is currently evaluating its existing systems and data to support the new standard as well as assessing the impact that the guidance will have on the Company's consolidated financial statements. The Company has formed a working group under the direction of the chief risk officer that is comprised of individuals from the credit, risk management, finance and project management areas. In early 2018, the Company contracted with a software and advisory service provider to aid in implementation. The Company continues to work with this service provider in assessing its data and preparing for implementation. In February 2016, FASB issued accounting guidance that requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact of the new guidance on its consolidated financial statements by reviewing its existing lease contracts and service contracts that may include embedded leases. It is also considering various software providers to aid it in implementation. The Company expects to record an increase in assets and liabilities as a result of recognizing a right-of-use asset and a lease liability for its operating lease commitments. In January 2016, the FASB issued an accounting standards update intended to improve the recognition and measurement of financial instruments. Specifically, the accounting standards update requires all equity instruments, with the exception of those that are accounted for under the equity method of accounting, to be measured at fair value with changes in the fair value recognized through net income. Additionally, public business entities are required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In February 2018, the FASB issued further guidance that provided technical corrections to this update. Those technical corrections included clarification on accounting for equity securities without a readily determinable fair value, remeasurement requirements on forward contracts and purchased options, and presentation requirements for certain fair value option liabilities. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this update required an adjustment on January 1, 2018 from other comprehensive income to retained earnings for the amount of the unrealized gain on equity securities as of December 31, 2017. Thereafter, any increases or decreases to the market value on these equity securities will be recorded through the consolidated statements of income. Please see the Consolidated Statement of Changes in Stockholders' Equity, Note 4-Investment Securities and Note 10-Comprehensive Income for more information. In May 2014, the FASB issued an accounting standards update that clarifies the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In 2016, the FASB issued further implementation guidance regarding revenue recognition. This additional guidance included clarification on certain principal versus agent considerations within the implementation of the guidance as well as clarification related to identifying performance obligations and licensing. The guidance also requires new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. The guidance along with its updates is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. In evaluating this standard, management has determined that the majority of revenue earned by the Company is from revenue streams not included in the scope of this standard. The Company has assessed its revenue streams and reviewed contracts potentially affected by the guidance including deposit related fees, interchange fees, investment commissions, merchant fee income and other noninterest income sources to determine the potential impact the new guidance is expected to have on the Company’s consolidated financial statements. The Company adopted the guidance on January 1, 2018 using the modified retrospective method. The Company did not have a cumulative-effect adjustment to opening retained earnings as a result of adopting this standard. Please see Note 2 - Revenue Recognition for more information. |
Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation This quarterly report presents the consolidated financial statements of Lakeland Bancorp, Inc. and its subsidiaries, including Lakeland Bank (“Lakeland”) and the Bank’s wholly owned subsidiaries (collectively, the “Company”). The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and predominant practices within the banking industry. The Company’s unaudited interim financial statements reflect all adjustments, such as normal recurring accruals that are, in the opinion of management, necessary for the fair presentation of the results of the interim periods. The results of operations for the six months ended June 30, 2018 do not necessarily indicate the results that the Company will achieve for all of 2018. Certain information and footnote disclosures required under U.S. GAAP have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission. These unaudited interim financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Certain reclassifications have been made in the consolidated financial statements to conform with current year classifications. |
Recent Accounting Pronouncements | In June 2018, the Financial Accounting Standards Board ("FASB") issued an update expanding earlier guidance on stock compensation to include share-based payments issued to nonemployees for goods and services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially the same. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2018. Earlier adoption is permitted. Because the Company does not have share-based payments issued to nonemployees, the adoption of this update is not expected to have a material impact on the Company's financial statements. In March 2018, the FASB issued an update regarding the accounting implications of the recently issued Tax Cuts and Jobs Act (the "Tax Act"). The update clarifies that in a company's financial statements that include the reporting period in which the Tax Act was enacted, a company must first reflect the income tax effects of the Tax Act in which the accounting under U.S. GAAP is complete. Those amounts would not be provisional amounts. The company would also report provisional amounts for those specific income tax effects for which the accounting under U.S. GAAP will be incomplete but for which a reasonable estimate can be determined. If there are income tax effects for the Tax Act for which a reasonable estimate cannot be determined, the company would not report provisional amounts and would continue to apply U.S. GAAP based on the tax laws that were in effect immediately prior to the Tax Act being enacted. This accounting update is effective immediately. The Company believes its accounting for the the income tax effects of the Tax Act is complete. Technical corrections or other forthcoming guidance could change how we interpret provisions of the Tax Act, which may impact our effective tax rate and could affect our deferred tax assets, tax positions and/or our tax liabilities. In February 2018, the FASB issued an update (ASU 2018-02) regarding the reclassification of certain tax effects from accumulated other comprehensive income. This update requires a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate tax rate. The amount of the reclassification would be the difference between the historical 35% corporate income tax rate and the newly enacted 21% corporate tax rate. This update eliminates the stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Act and improves the usefulness of information reported to financial statement users. The amendments are effective for all entities for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption of the amendments is permitted including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued and all other entities for reporting periods for which financial statements have not yet been made available for issuance. An entity may apply the amendments in the update retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. The Company elected to adopt this update in December 2017, and recorded a $420,000 increase to retained earnings and reduction to accumulated other comprehensive income in December 2017. In August 2017, the FASB issued an update intended to improve and simplify accounting rules around hedge accounting. Amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2019. The Company is still evaluating the impact that this guidance will have on its financial statements. In July 2017, the FASB issued guidance which simplifies the accounting for certain financial instruments with down round features, a provision in an equity-linked financial instrument (or embedded feature) that provides a downward adjustment of the current exercise price based on the price of future equity offerings. The provisions of the new guidance related to down rounds are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of this update is not expected to have a material impact on the Company’s financial statements because the Company does not have any equity-linked financial instruments that have such down round features. In May 2017, the FASB issued an update which provides clarity and reduces diversity in practice when accounting for the modification of terms and conditions for share-based payment awards. Previous accounting guidance did not distinguish between modifications which were substantive from modifications that were merely administrative. The accounting standards update requires entities to account for the effects of a modification unless the following three conditions are met: the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This update will be effective for annual and interim periods beginning after December 15, 2017. The adoption of this update did not have an impact on the Company’s financial statements. In March 2017, the FASB issued an update which shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. Under current GAAP, entities amortize the premium as an adjustment of yield over the contractual life of the instrument even if the holder is certain that the call will be exercised. As a result, upon the exercise of a call on a callable debt security held at a premium, the unamortized premium is recorded as a loss in earnings. The update shortens the amortization period for certain callable debt securities held at a premium and requires the premium be amortized to the earliest call date. This update will be effective for annual and interim periods beginning after December 15, 2018. Entities are required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this update is not expected to have a material impact on the Company’s financial statements. In March 2017, the FASB issued an update which changes the presentation of net periodic pension cost and net periodic postretirement benefit cost in a company’s income statement. The amendment requires that an employer report the service cost component in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendment is effective for annual and interim periods beginning after December 15, 2017. Because the Company has minimal benefit plans that require the measurement of net periodic pension cost and net periodic post retirement benefit cost, the adoption of this update did not have an impact on the Company’s financial statements. In January 2017, the FASB issued an update to simplify the test for goodwill impairment. This amendment eliminates Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. This update will be effective for the Company’s financial statements for annual years beginning after December 15, 2019. The adoption of this update is not expected to have a material impact on the Company’s financial statements. In January 2017, the FASB issued an update that clarifies the definition of a business as it pertains to business combinations. This amendment affects all companies and other reporting organizations that must determine whether they have sold or acquired a business. This update will be effective for the Company’s financial statements for fiscal years beginning after December 15, 2017. The adoption of this update did not have an impact on the Company’s financial statements. In September 2016, the FASB issued an accounting standards update to address diversity in presentation in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017. The adoption of this update did not have an impact on the Company’s financial statements. In June 2016, the FASB issued an accounting standards update pertaining to the measurement of credit losses on financial instruments. This update requires the measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. This update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This update will be effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2019. The Company is currently evaluating its existing systems and data to support the new standard as well as assessing the impact that the guidance will have on the Company's consolidated financial statements. The Company has formed a working group under the direction of the chief risk officer that is comprised of individuals from the credit, risk management, finance and project management areas. In early 2018, the Company contracted with a software and advisory service provider to aid in implementation. The Company continues to work with this service provider in assessing its data and preparing for implementation. In February 2016, FASB issued accounting guidance that requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently assessing the impact of the new guidance on its consolidated financial statements by reviewing its existing lease contracts and service contracts that may include embedded leases. It is also considering various software providers to aid it in implementation. The Company expects to record an increase in assets and liabilities as a result of recognizing a right-of-use asset and a lease liability for its operating lease commitments. In January 2016, the FASB issued an accounting standards update intended to improve the recognition and measurement of financial instruments. Specifically, the accounting standards update requires all equity instruments, with the exception of those that are accounted for under the equity method of accounting, to be measured at fair value with changes in the fair value recognized through net income. Additionally, public business entities are required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In February 2018, the FASB issued further guidance that provided technical corrections to this update. Those technical corrections included clarification on accounting for equity securities without a readily determinable fair value, remeasurement requirements on forward contracts and purchased options, and presentation requirements for certain fair value option liabilities. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this update required an adjustment on January 1, 2018 from other comprehensive income to retained earnings for the amount of the unrealized gain on equity securities as of December 31, 2017. Thereafter, any increases or decreases to the market value on these equity securities will be recorded through the consolidated statements of income. Please see the Consolidated Statement of Changes in Stockholders' Equity, Note 4-Investment Securities and Note 10-Comprehensive Income for more information. In May 2014, the FASB issued an accounting standards update that clarifies the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. In 2016, the FASB issued further implementation guidance regarding revenue recognition. This additional guidance included clarification on certain principal versus agent considerations within the implementation of the guidance as well as clarification related to identifying performance obligations and licensing. The guidance also requires new qualitative and quantitative disclosures, including disaggregation of revenues and descriptions of performance obligations. The guidance along with its updates is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. In evaluating this standard, management has determined that the majority of revenue earned by the Company is from revenue streams not included in the scope of this standard. The Company has assessed its revenue streams and reviewed contracts potentially affected by the guidance including deposit related fees, interchange fees, investment commissions, merchant fee income and other noninterest income sources to determine the potential impact the new guidance is expected to have on the Company’s consolidated financial statements. The Company adopted the guidance on January 1, 2018 using the modified retrospective method. The Company did not have a cumulative-effect adjustment to opening retained earnings as a result of adopting this standard. Please see Note 2 - Revenue Recognition for more information. |
Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table sets forth the components of noninterest income for the three and six months ended June 30, 2018 and 2017:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Earnings Per Share | The following schedule shows the Company’s earnings per share calculations for the periods presented:
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Investment Securities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Available-for-Sale Securities |
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Reconciliation of Held-to-Maturity Securities |
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Summary of Investment Securities by Stated Maturity | The following table shows investment securities by stated maturity. Securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date (in thousands):
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Summary of Proceeds from Sales of Securities and Gross Gains and Losses on Sales of Securities | The following table shows proceeds from sales of securities and gross gains and losses on sales of securities for the periods indicated (in thousands):
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Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position | The following table indicates the length of time individual securities have been in a continuous unrealized loss position for the periods presented:
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Loans, Leases and Other Real Estate (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Company`s Loan and Lease Portfolio | The following sets forth the composition of the Company’s loan and lease portfolio:
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Schedule of Changes in Accretable Yield | The following table presents changes in the accretable yield for PCI loans:
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Company's Non-Performing Assets and its Accruing Troubled Debt Restructurings, Excluding PCI Loans | The following schedule sets forth certain information regarding the Company’s non-performing assets and its accruing troubled debt restructurings, excluding PCI loans:
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Age Analysis of Past Due Loans, Segregated by Class of Loans | An age analysis of past due loans, segregated by class of loans as of June 30, 2018 and December 31, 2017, is as follows:
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Impaired Loans with and without Specific Allowances | Impaired loans as of June 30, 2018 and December 31, 2017 are as follows:
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Company's Commercial Loan Portfolio | The following table shows the Company’s commercial loan portfolio as of June 30, 2018 and December 31, 2017, by the risk ratings discussed above (in thousands):
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Allowance for Loan and Lease Losses by Portfolio Segment | The following table details activity in the allowance for loan and lease losses by portfolio segment for the three and six months ended June 30, 2018 and 2017:
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Loans Receivable Summarized by Portfolio Segment and Impairment Method | Loans receivable summarized by portfolio segment and impairment method are as follows:
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Allowance for Loan Losses Summarized by Portfolio Segment and Impairment Classification | The allowance for loan and lease losses is summarized by portfolio segment and impairment classification as follows:
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Summary of Restructured Loans | The following table summarizes loans that have been restructured during the three and six months ended June 30, 2018 and 2017:
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Summary of Restructured Loans within Previous Twelve Months that have Subsequently Defaulted | The following table summarizes as of June 30, 2018 and 2017, loans that were restructured within the previous twelve months that have subsequently defaulted:
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Derivatives (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Information Regarding Derivatives | The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands):
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Estimated Future Amortization Expense | The estimated future amortization expense for the remainder of 2018 and for each of the succeeding five years ended December 31 is as follows (dollars in thousands):
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Share-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Restricted Stock Activity | The following is a summary of the Company’s restricted stock activity during the six months ended June 30, 2018:
The following is a summary of the Company’s RSU activity during the six months ended June 30, 2018:
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Option Activity under the Company's Stock Option Plans | There were no grants of stock options in the first six months of 2018 or 2017. Option activity under the Company’s stock option plans is as follows:
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Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) | The components of other comprehensive income (loss) are as follows:
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Summary of Changes in Components of Other Comprehensive Income, Net of Tax | The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented, net of tax (in thousands):
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Estimated Fair Value of Financial Instruments and Fair Value Measurement (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the six months ended June 30, 2018, the Company did not make any transfers between any levels within the fair value hierarchy. Financial 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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Fair Value of Assets Measured on Non-recurring Basis | The following table sets forth the Company’s assets subject to fair value adjustments (impairment) on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
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Carrying Values and Fair Values of Company's Financial Instruments | The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2018 and December 31, 2017:
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Revenue Recognition - Narrative (Details) |
6 Months Ended |
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Jun. 30, 2018
Region
Segment
| |
Revenue from Contract with Customer [Abstract] | |
Number of geographic regions | Region | 1 |
Number of operating segments | Segment | 1 |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
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Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 15,838 | $ 13,370 | $ 31,093 | $ 25,682 |
Less: earnings allocated to participating securities | 146 | 119 | 287 | 239 |
Net income allocated to common shareholders | $ 15,692 | $ 13,251 | $ 30,806 | $ 25,443 |
Weighted average number of common shares outstanding - basic (in shares) | 47,600 | 47,465 | 47,552 | 47,410 |
Share-based plans (in shares) | 170 | 209 | 201 | 236 |
Weighted average number of common shares outstanding - diluted (in shares) | 47,770 | 47,674 | 47,753 | 47,646 |
Basic earnings per share (in usd per share) | $ 0.33 | $ 0.28 | $ 0.65 | $ 0.54 |
Diluted earnings per share (in usd per share) | $ 0.33 | $ 0.28 | $ 0.65 | $ 0.53 |
Earnings Per Share - Additional Information (Detail) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
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Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options to purchase (in shares) | 0 | 0 | 0 | 0 |
Investment Securities - Sales of Securities and Gross Gains and Losses on Sales of Securities (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
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Investments, Debt and Equity Securities [Abstract] | ||||
Sale proceeds | $ 0 | $ 0 | $ 0 | $ 4,499 |
Gross gains | 0 | 0 | 0 | 2,539 |
Gross losses | $ 0 | $ (15) | $ 0 | $ (15) |
Investment Securities - Additional Information (Detail) - USD ($) |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
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Investment [Line Items] | |||
Other than temporary impairments | $ 0 | $ 0 | |
Securities, carrying value | 363,900,000 | $ 400,400,000 | |
Equity securities, at fair value | 16,798,000 | 18,089,000 | |
Cumulative adjustment for adoption of ASU 2016-01 | 0 | ||
Market value loss | 33,000 | ||
Investment in government guaranteed loans, mortgage-backed securities, small business loans | 9,500,000 | ||
Investment in community development loans | $ 3,500,000 | ||
Redemption of funds | 60 days | ||
Unfunded commitments | $ 0 | ||
Other financial institutions | |||
Investment [Line Items] | |||
Market value of equities | 3,700,000 | ||
Community reinvestment funds | |||
Investment [Line Items] | |||
Equity securities included in investment funds | $ 13,100,000 | ||
Retained Earnings | |||
Investment [Line Items] | |||
Cumulative adjustment for adoption of ASU 2016-01 | $ 2,043,000 |
Loans, Leases and Other Real Estate - Schedule of Changes in Accretable Yield (Detail) - Loans Acquired with Deteriorated Credit Quality - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance, beginning of period | $ 113 | $ 180 | $ 129 | $ 145 |
Acquisitions | 0 | 0 | 0 | 0 |
Accretion | (43) | (47) | (87) | (98) |
Net reclassification non-accretable difference | 30 | 0 | 58 | 86 |
Balance, end of period | $ 100 | $ 133 | $ 100 | $ 133 |
Loans, Leases and Other Real Estate - Activity in the Allowance for Loan and Lease Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | $ 35,644 | $ 31,590 | $ 35,455 | $ 31,245 |
Charge-offs | (963) | (870) | (2,213) | (2,230) |
Recoveries | 431 | 276 | 586 | 763 |
Provision | 1,492 | 1,827 | 2,776 | 3,045 |
Ending Balance | 36,604 | 32,823 | 36,604 | 32,823 |
Commercial, secured by real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 25,817 | 22,083 | 25,704 | 21,223 |
Charge-offs | (210) | (83) | (232) | (303) |
Recoveries | 274 | 145 | 305 | 364 |
Provision | 293 | 1,199 | 397 | 2,060 |
Ending Balance | 26,174 | 23,344 | 26,174 | 23,344 |
Commercial, industrial and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 1,768 | 1,792 | 2,313 | 1,723 |
Charge-offs | (289) | (71) | (1,301) | (234) |
Recoveries | 76 | 27 | 96 | 122 |
Provision | 457 | (60) | 904 | 77 |
Ending Balance | 2,012 | 1,688 | 2,012 | 1,688 |
Leases | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 1,042 | 502 | 630 | 548 |
Charge-offs | (72) | (120) | (95) | (163) |
Recoveries | 3 | 28 | 5 | 32 |
Provision | 291 | 119 | 724 | 112 |
Ending Balance | 1,264 | 529 | 1,264 | 529 |
Real estate - residential mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 1,589 | 1,825 | 1,557 | 1,964 |
Charge-offs | 0 | (169) | (93) | (310) |
Recoveries | 3 | 0 | 5 | 0 |
Provision | (7) | 98 | 116 | 100 |
Ending Balance | 1,585 | 1,754 | 1,585 | 1,754 |
Real estate - construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 2,932 | 2,378 | 2,731 | 2,352 |
Charge-offs | (248) | 0 | (248) | (609) |
Recoveries | 3 | 5 | 8 | 20 |
Provision | 376 | 213 | 572 | 833 |
Ending Balance | 3,063 | 2,596 | 3,063 | 2,596 |
Home equity and consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 2,496 | 3,010 | 2,520 | 3,435 |
Charge-offs | (144) | (427) | (244) | (611) |
Recoveries | 72 | 71 | 167 | 225 |
Provision | 82 | 258 | 63 | (137) |
Ending Balance | $ 2,506 | $ 2,912 | $ 2,506 | $ 2,912 |
Loans, Leases and Other Real Estate - Summary of Restructured Loans within Previous 12 Months that have Subsequently Defaulted (Detail) $ in Thousands |
12 Months Ended | |
---|---|---|
Jun. 30, 2018
USD ($)
Contract
|
Jun. 30, 2017
USD ($)
Contract
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 4 | 1 |
Recorded Investment | $ | $ 2,195 | $ 254 |
Commercial, secured by real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 2 | 0 |
Recorded Investment | $ | $ 1,234 | $ 0 |
Commercial, industrial and other | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 1 | 0 |
Recorded Investment | $ | $ 950 | $ 0 |
Leases | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 1 | 0 |
Recorded Investment | $ | $ 11 | $ 0 |
Real estate - residential mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | Contract | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 254 |
Derivatives - Additional Information (Detail) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
Derivative
|
|
Derivative [Line Items] | ||||||
Available for sale securities pledged for collateral | $ 487,000 | $ 487,000 | $ 492,000 | |||
Interest expense | $ 8,767,000 | $ 5,791,000 | 16,676,000 | $ 11,264,000 | ||
Reclassification Out of Accumulated Other Comprehensive Income | ||||||
Derivative [Line Items] | ||||||
Interest expense | $ 371,000 | |||||
Cash Flow Hedging | Interest Rate Swaps | ||||||
Derivative [Line Items] | ||||||
Number of derivatives | Derivative | 2 | |||||
Notional amount | $ 30,000,000 | |||||
Average interest rate | 1.10% | |||||
Variable rate basis | 3 month LIBOR | |||||
Amount of ineffective hedges | $ 0 | |||||
Cash Flow Hedging | Interest Rate Swaps | Interest Expense | ||||||
Derivative [Line Items] | ||||||
Accumulated other comprehensive income (loss) reclassified | $ 132,000 | $ (4,000) |
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 136,433 | $ 136,433 |
Core Deposits | ||
Goodwill And Intangible Assets [Line Items] | ||
Core deposit intangible | $ 2,100 | $ 2,400 |
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense (Detail) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 | $ 284 |
2019 | 505 |
2020 | 415 |
2021 | 326 |
2022 | 236 |
2023 | $ 147 |
Borrowings - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Debt Instrument [Line Items] | |||||
Federal funds purchased | $ 166,300 | $ 166,300 | |||
Securities sold under agreements to repurchase | 31,600 | 31,600 | |||
Repayment of borrowings | 20,000 | $ 20,000 | |||
Long-term debt prepayment fees | 0 | $ 0 | 0 | $ 2,828 | |
Securities Sold under Agreements to Repurchase | |||||
Debt Instrument [Line Items] | |||||
Pledged securities | $ 35,000 | $ 35,000 | |||
Federal Home Loan Bank of New York | |||||
Debt Instrument [Line Items] | |||||
Long-term debt prepayment fees | 638 | ||||
Repayment of borrowings from the Federal Home Loan Bank | 34,000 | ||||
Debt Securities Sold Under Agreement To Repurchase | |||||
Debt Instrument [Line Items] | |||||
Long-term debt prepayment fees | $ 2,200 |
Estimated Fair Value of Financial Instruments and Fair Value Measurement - Fair Value of Assets Measured on Non-recurring Basis (Detail) - Fair Value, Measurements, Non-recurring - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets: | ||
Impaired loans and leases | $ 19,304 | $ 22,591 |
Loans held for sale | 1,692 | 456 |
Other real estate owned and other repossessed assets | 2,184 | 843 |
(Level 1) | ||
Assets: | ||
Impaired loans and leases | 0 | 0 |
Loans held for sale | 0 | 0 |
Other real estate owned and other repossessed assets | 0 | 0 |
(Level 2) | ||
Assets: | ||
Impaired loans and leases | 0 | 0 |
Loans held for sale | 1,692 | 456 |
Other real estate owned and other repossessed assets | 0 | 0 |
(Level 3) | ||
Assets: | ||
Impaired loans and leases | 19,304 | 22,591 |
Loans held for sale | 0 | 0 |
Other real estate owned and other repossessed assets | $ 2,184 | $ 843 |
Estimated Fair Value of Financial Instruments and Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Subordinate debt | $ 104,963 | $ 104,902 |
Non-rated | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term municipal bond | 7,200 | |
Subordinate debt | $ 1,000 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rates | 5.00% | |
Capitalization rates | 5.00% | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rates | 11.00% | |
Capitalization rates | 9.00% |
Recent Accounting Pronouncements - Additional Information (Detail) - Accounting Standards Update 2018-02 $ in Thousands |
1 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings | $ 420 |
Accumulated Other Comprehensive Income (Loss) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings | $ (420) |
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