☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
MONTANA | 81-0519541 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
49 Commons Loop, Kalispell, Montana | 59901 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |
Emerging growth company | ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.01 par value | GBCI | NASDAQ |
Page | |
Part I. Financial Information | |
Item 1 – Financial Statements | |
ALCO – Asset Liability Committee |
ALLL or allowance – allowance for loan and lease losses |
ASC – Accounting Standards CodificationTM |
ATM – automated teller machine |
Bank – Glacier Bank |
CDE – Certified Development Entity |
CDFI Fund – Community Development Financial Institutions Fund |
CEO – Chief Executive Officer |
CFO – Chief Financial Officer |
Company – Glacier Bancorp, Inc. |
DDA – demand deposit account |
Fannie Mae – Federal National Mortgage Association |
FASB – Financial Accounting Standards Board |
FDIC – Federal Deposit Insurance Corporation |
FHLB – Federal Home Loan Bank |
Final Rules – final rules implemented by the federal banking agencies that established a new comprehensive regulatory capital framework |
FNB – FNB Bancorp and its subsidiary, The First National Bank of Layton |
FRB – Federal Reserve Bank |
Freddie Mac – Federal Home Loan Mortgage Corporation |
GAAP – accounting principles generally accepted in the United States of America |
Ginnie Mae – Government National Mortgage Association |
Heritage – Heritage Bancorp and its subsidiary, Heritage Bank of Nevada |
Interest rate locks - residential real estate derivatives for commitments |
LIBOR – London Interbank Offered Rate |
LIHTC – Low Income Housing Tax Credit |
NMTC – New Markets Tax Credit |
NOW – negotiable order of withdrawal |
NRSRO – Nationally Recognized Statistical Rating Organizations |
OCI – other comprehensive income |
OREO – other real estate owned |
Repurchase agreements – securities sold under agreements to repurchase |
ROU - right-of-use |
S&P – Standard and Poor’s |
SEC – United States Securities and Exchange Commission |
TBA – to-be-announced |
TDR – troubled debt restructuring |
VIE – variable interest entity |
(Dollars in thousands, except per share data) | March 31, 2019 | December 31, 2018 | ||||
Assets | ||||||
Cash on hand and in banks | $ | 139,333 | 161,782 | |||
Federal funds sold | 115 | — | ||||
Interest bearing cash deposits | 63,079 | 42,008 | ||||
Cash and cash equivalents | 202,527 | 203,790 | ||||
Debt securities, available-for-sale | 2,522,322 | 2,571,663 | ||||
Debt securities, held-to-maturity | 255,572 | 297,915 | ||||
Total debt securities | 2,777,894 | 2,869,578 | ||||
Loans held for sale, at fair value | 29,389 | 33,156 | ||||
Loans receivable | 8,326,070 | 8,287,549 | ||||
Allowance for loan and lease losses | (129,786 | ) | (131,239 | ) | ||
Loans receivable, net | 8,196,284 | 8,156,310 | ||||
Premises and equipment, net | 277,619 | 241,528 | ||||
Other real estate owned | 8,125 | 7,480 | ||||
Accrued interest receivable | 57,367 | 54,408 | ||||
Deferred tax asset | 12,554 | 23,564 | ||||
Core deposit intangible, net | 47,548 | 49,242 | ||||
Goodwill | 289,586 | 289,586 | ||||
Non-marketable equity securities | 16,435 | 27,871 | ||||
Bank-owned life insurance | 82,819 | 82,320 | ||||
Other assets | 75,632 | 76,651 | ||||
Total assets | $ | 12,073,779 | 12,115,484 | |||
Liabilities | ||||||
Non-interest bearing deposits | $ | 3,051,119 | 3,001,178 | |||
Interest bearing deposits | 6,536,996 | 6,492,589 | ||||
Securities sold under agreements to repurchase | 489,620 | 396,151 | ||||
Federal Home Loan Bank advances | 154,683 | 440,175 | ||||
Other borrowed funds | 14,738 | 14,708 | ||||
Subordinated debentures | 134,048 | 134,051 | ||||
Accrued interest payable | 4,709 | 4,252 | ||||
Other liabilities | 137,016 | 116,526 | ||||
Total liabilities | 10,522,929 | 10,599,630 | ||||
Stockholders’ Equity | ||||||
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding | — | — | ||||
Common stock, $0.01 par value per share, 117,187,500 shares authorized | 846 | 845 | ||||
Paid-in capital | 1,051,299 | 1,051,253 | ||||
Retained earnings - substantially restricted | 474,818 | 473,183 | ||||
Accumulated other comprehensive income (loss) | 23,887 | (9,427 | ) | |||
Total stockholders’ equity | 1,550,850 | 1,515,854 | ||||
Total liabilities and stockholders’ equity | $ | 12,073,779 | 12,115,484 | |||
Number of common stock shares issued and outstanding | 84,588,199 | 84,521,692 |
Three Months ended | ||||||
(Dollars in thousands, except per share data) | March 31, 2019 | March 31, 2018 | ||||
Interest Income | ||||||
Investment securities | $ | 21,351 | 20,142 | |||
Residential real estate loans | 10,779 | 8,785 | ||||
Commercial loans | 83,539 | 65,515 | ||||
Consumer and other loans | 10,447 | 8,624 | ||||
Total interest income | 126,116 | 103,066 | ||||
Interest Expense | ||||||
Deposits | 5,341 | 3,916 | ||||
Securities sold under agreements to repurchase | 802 | 485 | ||||
Federal Home Loan Bank advances | 3,055 | 2,089 | ||||
Other borrowed funds | 38 | 16 | ||||
Subordinated debentures | 1,668 | 1,268 | ||||
Total interest expense | 10,904 | 7,774 | ||||
Net Interest Income | 115,212 | 95,292 | ||||
Provision for loan losses | 57 | 795 | ||||
Net interest income after provision for loan losses | 115,155 | 94,497 | ||||
Non-Interest Income | ||||||
Service charges and other fees | 18,015 | 16,871 | ||||
Miscellaneous loan fees and charges | 967 | 1,477 | ||||
Gain on sale of loans | 5,798 | 6,097 | ||||
Gain (loss) on sale of debt securities | 213 | (333 | ) | |||
Other income | 3,481 | 1,974 | ||||
Total non-interest income | 28,474 | 26,086 | ||||
Non-Interest Expense | ||||||
Compensation and employee benefits | 52,728 | 45,721 | ||||
Occupancy and equipment | 8,437 | 7,274 | ||||
Advertising and promotions | 2,388 | 2,170 | ||||
Data processing | 3,892 | 3,967 | ||||
Other real estate owned | 139 | 72 | ||||
Regulatory assessments and insurance | 1,285 | 1,206 | ||||
Core deposit intangibles amortization | 1,694 | 1,056 | ||||
Other expenses | 12,267 | 12,161 | ||||
Total non-interest expense | 82,830 | 73,627 | ||||
Income Before Income Taxes | 60,799 | 46,956 | ||||
Federal and state income tax expense | 11,667 | 8,397 | ||||
Net Income | $ | 49,132 | 38,559 | |||
Basic earnings per share | $ | 0.58 | 0.48 | |||
Diluted earnings per share | $ | 0.58 | 0.48 | |||
Dividends declared per share | $ | 0.26 | 0.23 | |||
Average outstanding shares - basic | 84,549,974 | 80,808,904 | ||||
Average outstanding shares - diluted | 84,614,248 | 80,887,135 |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Net Income | $ | 49,132 | 38,559 | |||
Other Comprehensive Income (Loss), Net of Tax | ||||||
Unrealized gains (losses) on available-for-sale securities | 46,452 | (25,711 | ) | |||
Reclassification adjustment for (gains) losses included in net income | (221 | ) | 282 | |||
Net unrealized gains (losses) on available-for-sale securities | 46,231 | (25,429 | ) | |||
Tax effect | (11,715 | ) | 6,444 | |||
Net of tax amount | 34,516 | (18,985 | ) | |||
Unrealized (losses) gains on derivatives used for cash flow hedges | (1,834 | ) | 4,379 | |||
Reclassification adjustment for losses included in net income | 223 | 900 | ||||
Net unrealized (losses) gains on derivatives used for cash flow hedges | (1,611 | ) | 5,279 | |||
Tax effect | 409 | (1,338 | ) | |||
Net of tax amount | (1,202 | ) | 3,941 | |||
Total other comprehensive income (loss), net of tax | 33,314 | (15,044 | ) | |||
Total Comprehensive Income | $ | 82,446 | 23,515 |
(Dollars in thousands, except per share data) | Common Stock | Paid-in Capital | Retained Earnings Substantially Restricted | Accumulated Other Compre- hensive (Loss) Income | ||||||||||||||
Shares | Amount | Total | ||||||||||||||||
Balance at January 1, 2018 | 78,006,956 | $ | 780 | 797,997 | 402,259 | (1,979 | ) | 1,199,057 | ||||||||||
Net income | — | — | — | 38,559 | — | 38,559 | ||||||||||||
Other comprehensive loss | — | — | — | — | (15,044 | ) | (15,044 | ) | ||||||||||
Cash dividends declared ($0.23 per share) | — | — | — | (19,476 | ) | — | (19,476 | ) | ||||||||||
Stock issued in connection with acquisitions | 6,432,868 | 64 | 250,743 | — | — | 250,807 | ||||||||||||
Stock issuances under stock incentive plans | 71,648 | 1 | (1 | ) | — | — | — | |||||||||||
Stock-based compensation and related taxes | — | — | 121 | — | — | 121 | ||||||||||||
Balance at March 31, 2018 | 84,511,472 | $ | 845 | 1,048,860 | 421,342 | (17,023 | ) | 1,454,024 | ||||||||||
Balance at January 1, 2019 | 84,521,692 | $ | 845 | 1,051,253 | 473,183 | (9,427 | ) | 1,515,854 | ||||||||||
Net income | — | — | — | 49,132 | — | 49,132 | ||||||||||||
Other comprehensive income | — | — | — | — | 33,314 | 33,314 | ||||||||||||
Cash dividends declared ($0.26 per share) | — | — | — | (22,039 | ) | — | (22,039 | ) | ||||||||||
Stock issuances under stock incentive plans | 66,507 | 1 | (1 | ) | — | — | — | |||||||||||
Stock-based compensation and related taxes | — | — | 47 | — | — | 47 | ||||||||||||
Cumulative-effect of accounting changes | — | — | — | (25,458 | ) | — | (25,458 | ) | ||||||||||
Balance at March 31, 2019 | 84,588,199 | $ | 846 | 1,051,299 | 474,818 | 23,887 | 1,550,850 |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Operating Activities | ||||||
Net income | $ | 49,132 | 38,559 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for loan losses | 57 | 795 | ||||
Net amortization of debt securities | 5,379 | 3,465 | ||||
Net (accretion) amortization of purchase accounting adjustments | (1,788 | ) | 1,337 | |||
Amortization of debt modification costs | 412 | 412 | ||||
Origination of loans held for sale | (145,163 | ) | (175,506 | ) | ||
Proceeds from loans held for sale | 154,756 | 184,188 | ||||
Gain on sale of loans | (5,798 | ) | (6,097 | ) | ||
(Gain) loss on sale of debt securities | (213 | ) | 333 | |||
Bank-owned life insurance income, net | (497 | ) | (424 | ) | ||
Stock-based compensation, net of tax benefits | 1,197 | 1,189 | ||||
Depreciation and amortization of premises and equipment | 4,574 | 3,722 | ||||
Gain on sale and write-downs of other real estate owned, net | (416 | ) | (53 | ) | ||
Amortization of core deposit intangibles | 1,694 | 1,056 | ||||
Amortization of investments in variable interest entities | 1,644 | 1,117 | ||||
Net increase in accrued interest receivable | (2,959 | ) | (2,709 | ) | ||
Net (increase) decrease in other assets | (1,636 | ) | 289 | |||
Net increase (decrease) in accrued interest payable | 457 | (155 | ) | |||
Net decrease in other liabilities | (14,525 | ) | (3,582 | ) | ||
Net cash provided by operating activities | 46,307 | 47,936 | ||||
Investing Activities | ||||||
Sales of available-for-sale debt securities | 269,616 | 219,855 | ||||
Maturities, prepayments and calls of available-for-sale debt securities | 120,368 | 72,952 | ||||
Purchases of available-for-sale debt securities | (311,281 | ) | (383,992 | ) | ||
Maturities, prepayments and calls of held-to-maturity debt securities | 29,945 | 13,297 | ||||
Principal collected on loans | 617,236 | 552,922 | ||||
Loan originations | (656,930 | ) | (678,251 | ) | ||
Net additions to premises and equipment | (3,809 | ) | (5,558 | ) | ||
Proceeds from sale of other real estate owned | 1,208 | 755 | ||||
Proceeds from redemption of non-marketable equity securities | 39,436 | 28,986 | ||||
Purchases of non-marketable equity securities | (28,000 | ) | (18,395 | ) | ||
Investments in variable interest entities | (576 | ) | (16,129 | ) | ||
Net cash received from acquisitions | — | 101,268 | ||||
Net cash provided by (used in) investing activities | 77,213 | (112,290 | ) |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Financing Activities | ||||||
Net increase in deposits | $ | 94,322 | 524,162 | |||
Net increase in securities sold under agreements to repurchase | 93,470 | 4,041 | ||||
Net decrease in short-term Federal Home Loan Bank advances | (285,000 | ) | (200,000 | ) | ||
Repayments of long-term Federal Home Loan Bank advances | (896 | ) | (104 | ) | ||
Net increase (decrease) in other borrowed funds | 27 | (11,562 | ) | |||
Cash dividends paid | (25,562 | ) | (107 | ) | ||
Tax withholding payments for stock-based compensation | (1,144 | ) | (1,032 | ) | ||
Net cash (used in) provided by financing activities | (124,783 | ) | 315,398 | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,263 | ) | 251,044 | |||
Cash, cash equivalents and restricted cash at beginning of period | 203,790 | 200,004 | ||||
Cash, cash equivalents and restricted cash at end of period | $ | 202,527 | 451,048 | |||
Supplemental Disclosure of Cash Flow Information | ||||||
Cash paid during the period for interest | $ | 10,447 | 7,930 | |||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||||||
Transfer of loans to other real estate owned | $ | 1,437 | 378 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | 647 | — | ||||
Dividends declared but not paid | 22,039 | 19,476 | ||||
Acquisitions | ||||||
Fair value of common stock shares issued | — | 250,807 | ||||
Cash consideration for outstanding shares | — | 16,265 | ||||
Effective settlement of a pre-existing receivable | — | 10,054 | ||||
Fair value of assets acquired | — | 1,549,158 | ||||
Liabilities assumed | — | 1,383,756 |
• | reduction of the stated interest rate for the remaining term of the debt; |
• | extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and |
• | reduction of the face amount of the debt as stated in the debt agreements. |
• | analysis of global, i.e., aggregate debt service for total debt obligations; |
• | assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and |
• | loan structures and related covenants. |
• | changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; |
• | changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; |
• | changes in the nature and volume of the portfolio and in the terms of loans; |
• | changes in experience, ability, and depth of lending management and other relevant staff; |
• | changes in the volume and severity of past due and nonaccrual loans; |
• | changes in the quality of the Company’s loan review system; |
• | changes in the value of underlying collateral for collateral-dependent loans; |
• | the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and |
• | the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. |
March 31, 2019 | ||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | ||||||||||
(Dollars in thousands) | Gains | Losses | ||||||||||
Available-for-sale | ||||||||||||
U.S. government and federal agency | $ | 21,685 | 22 | (186 | ) | 21,521 | ||||||
U.S. government sponsored enterprises | 105,189 | 1,269 | (1 | ) | 106,457 | |||||||
State and local governments | 700,070 | 25,426 | (305 | ) | 725,191 | |||||||
Corporate bonds | 217,494 | 1,293 | (239 | ) | 218,548 | |||||||
Residential mortgage-backed securities | 828,103 | 3,154 | (6,209 | ) | 825,048 | |||||||
Commercial mortgage-backed securities | 612,407 | 14,235 | (1,085 | ) | 625,557 | |||||||
Total available-for-sale | 2,484,948 | 45,399 | (8,025 | ) | 2,522,322 | |||||||
Held-to-maturity | ||||||||||||
State and local governments | 255,572 | 5,842 | (6 | ) | 261,408 | |||||||
Total held-to-maturity | 255,572 | 5,842 | (6 | ) | 261,408 | |||||||
Total debt securities | $ | 2,740,520 | 51,241 | (8,031 | ) | 2,783,730 |
December 31, 2018 | ||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | ||||||||||
(Dollars in thousands) | Gains | Losses | ||||||||||
Available-for-sale | ||||||||||||
U.S. government and federal agency | $ | 23,757 | 54 | (162 | ) | 23,649 | ||||||
U.S. government sponsored enterprises | 120,670 | 52 | (514 | ) | 120,208 | |||||||
State and local governments | 844,636 | 18,936 | (11,322 | ) | 852,250 | |||||||
Corporate bonds | 292,052 | 378 | (1,613 | ) | 290,817 | |||||||
Residential mortgage-backed securities | 808,537 | 628 | (16,250 | ) | 792,915 | |||||||
Commercial mortgage-backed securities | 490,868 | 3,312 | (2,356 | ) | 491,824 | |||||||
Total available-for-sale | 2,580,520 | 23,360 | (32,217 | ) | 2,571,663 | |||||||
Held-to-maturity | ||||||||||||
State and local governments | 297,915 | 1,380 | (11,039 | ) | 288,256 | |||||||
Total held-to-maturity | 297,915 | 1,380 | (11,039 | ) | 288,256 | |||||||
Total debt securities | $ | 2,878,435 | 24,740 | (43,256 | ) | 2,859,919 |
March 31, 2019 | ||||||||||||
Available-for-Sale | Held-to-Maturity | |||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||
Due within one year | $ | 88,040 | 88,011 | — | — | |||||||
Due after one year through five years | 243,020 | 245,035 | 7,061 | 7,230 | ||||||||
Due after five years through ten years | 272,600 | 282,663 | 76,025 | 78,561 | ||||||||
Due after ten years | 440,778 | 456,008 | 172,486 | 175,617 | ||||||||
1,044,438 | 1,071,717 | 255,572 | 261,408 | |||||||||
Mortgage-backed securities 1 | 1,440,510 | 1,450,605 | — | — | ||||||||
Total | $ | 2,484,948 | 2,522,322 | 255,572 | 261,408 |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Available-for-sale | ||||||
Proceeds from sales and calls of debt securities | $ | 304,048 | 228,681 | |||
Gross realized gains 1 | 2,937 | 6 | ||||
Gross realized losses 1 | (2,716 | ) | (288 | ) | ||
Held-to-maturity | ||||||
Proceeds from calls of debt securities | 29,945 | 15,465 | ||||
Gross realized gains 1 | 2 | 54 | ||||
Gross realized losses 1 | (10 | ) | (105 | ) |
March 31, 2019 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||
Available-for-sale | ||||||||||||||||||
U.S. government and federal agency | $ | 6,553 | (71 | ) | 9,565 | (115 | ) | 16,118 | (186 | ) | ||||||||
U.S. government sponsored enterprises | — | — | 4,961 | (1 | ) | 4,961 | (1 | ) | ||||||||||
State and local governments | 3,736 | (4 | ) | 34,411 | (301 | ) | 38,147 | (305 | ) | |||||||||
Corporate bonds | 18,409 | (37 | ) | 53,314 | (202 | ) | 71,723 | (239 | ) | |||||||||
Residential mortgage-backed securities | 28,049 | (86 | ) | 441,716 | (6,123 | ) | 469,765 | (6,209 | ) | |||||||||
Commercial mortgage-backed securities | 20,363 | (254 | ) | 49,988 | (831 | ) | 70,351 | (1,085 | ) | |||||||||
Total available-for-sale | $ | 77,110 | (452 | ) | 593,955 | (7,573 | ) | 671,065 | (8,025 | ) | ||||||||
Held-to-maturity | ||||||||||||||||||
State and local governments | $ | — | — | 6,896 | (6 | ) | 6,896 | (6 | ) | |||||||||
Total held-to-maturity | $ | — | — | 6,896 | (6 | ) | 6,896 | (6 | ) |
December 31, 2018 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||
Available-for-sale | ||||||||||||||||||
U.S. government and federal agency | $ | 4,287 | (27 | ) | 10,519 | (135 | ) | 14,806 | (162 | ) | ||||||||
U.S. government sponsored enterprises | 43,400 | (103 | ) | 35,544 | (411 | ) | 78,944 | (514 | ) | |||||||||
State and local governments | 72,080 | (922 | ) | 232,244 | (10,400 | ) | 304,324 | (11,322 | ) | |||||||||
Corporate bonds | 119,111 | (937 | ) | 114,800 | (676 | ) | 233,911 | (1,613 | ) | |||||||||
Residential mortgage-backed securities | 132,405 | (833 | ) | 537,202 | (15,417 | ) | 669,607 | (16,250 | ) | |||||||||
Commercial mortgage-backed securities | 73,118 | (402 | ) | 86,504 | (1,954 | ) | 159,622 | (2,356 | ) | |||||||||
Total available-for-sale | $ | 444,401 | (3,224 | ) | 1,016,813 | (28,993 | ) | 1,461,214 | (32,217 | ) | ||||||||
Held-to-maturity | ||||||||||||||||||
State and local governments | $ | 87,392 | (2,778 | ) | 126,226 | (8,261 | ) | 213,618 | (11,039 | ) | ||||||||
Total held-to-maturity | $ | 87,392 | (2,778 | ) | 126,226 | (8,261 | ) | 213,618 | (11,039 | ) |
At or for the Three Months ended | At or for the Year ended | |||||
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | ||||
Residential real estate loans | $ | 884,732 | 887,742 | |||
Commercial loans | ||||||
Real estate | 4,686,082 | 4,657,561 | ||||
Other commercial | 1,909,452 | 1,911,171 | ||||
Total | 6,595,534 | 6,568,732 | ||||
Consumer and other loans | ||||||
Home equity | 562,381 | 544,688 | ||||
Other consumer | 283,423 | 286,387 | ||||
Total | 845,804 | 831,075 | ||||
Loans receivable | 8,326,070 | 8,287,549 | ||||
Allowance for loan and lease losses | (129,786 | ) | (131,239 | ) | ||
Loans receivable, net | $ | 8,196,284 | 8,156,310 | |||
Net deferred origination (fees) costs included in loans receivable | $ | (5,022 | ) | (5,685 | ) | |
Net purchase accounting (discounts) premiums included in loans receivable | $ | (23,681 | ) | (25,172 | ) | |
Weighted-average interest rate on loans (tax-equivalent) | 5.18 | % | 4.97 | % |
Three Months ended March 31, 2019 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Balance at beginning of period | $ | 131,239 | 10,631 | 72,448 | 38,160 | 5,811 | 4,189 | |||||||||||
Provision for loan losses | 57 | 278 | (148 | ) | (915 | ) | 64 | 778 | ||||||||||
Charge-offs | (3,341 | ) | (292 | ) | (283 | ) | (840 | ) | (8 | ) | (1,918 | ) | ||||||
Recoveries | 1,831 | 94 | 311 | 444 | 13 | 969 | ||||||||||||
Balance at end of period | $ | 129,786 | 10,711 | 72,328 | 36,849 | 5,880 | 4,018 |
Three Months ended March 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Balance at beginning of period | $ | 129,568 | 10,798 | 68,515 | 39,303 | 6,204 | 4,748 | |||||||||||
Provision for loan losses | 795 | (177 | ) | 245 | (3 | ) | (202 | ) | 932 | |||||||||
Charge-offs | (5,007 | ) | (3 | ) | (1,033 | ) | (1,788 | ) | (12 | ) | (2,171 | ) | ||||||
Recoveries | 2,252 | 16 | 615 | 596 | 50 | 975 | ||||||||||||
Balance at end of period | $ | 127,608 | 10,634 | 68,342 | 38,108 | 6,040 | 4,484 |
March 31, 2019 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Loans receivable | ||||||||||||||||||
Individually evaluated for impairment | $ | 104,411 | 10,646 | 65,104 | 22,954 | 3,057 | 2,650 | |||||||||||
Collectively evaluated for impairment | 8,221,659 | 874,086 | 4,620,978 | 1,886,498 | 559,324 | 280,773 | ||||||||||||
Total loans receivable | $ | 8,326,070 | 884,732 | 4,686,082 | 1,909,452 | 562,381 | 283,423 | |||||||||||
ALLL | ||||||||||||||||||
Individually evaluated for impairment | $ | 702 | 1 | 57 | 642 | — | 2 | |||||||||||
Collectively evaluated for impairment | 129,084 | 10,710 | 72,271 | 36,207 | 5,880 | 4,016 | ||||||||||||
Total ALLL | $ | 129,786 | 10,711 | 72,328 | 36,849 | 5,880 | 4,018 |
December 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Loans receivable | ||||||||||||||||||
Individually evaluated for impairment | $ | 108,788 | 12,685 | 68,837 | 20,975 | 3,497 | 2,794 | |||||||||||
Collectively evaluated for impairment | 8,178,761 | 875,057 | 4,588,724 | 1,890,196 | 541,191 | 283,593 | ||||||||||||
Total loans receivable | $ | 8,287,549 | 887,742 | 4,657,561 | 1,911,171 | 544,688 | 286,387 | |||||||||||
ALLL | ||||||||||||||||||
Individually evaluated for impairment | $ | 3,223 | 83 | 568 | 2,313 | 39 | 220 | |||||||||||
Collectively evaluated for impairment | 128,016 | 10,548 | 71,880 | 35,847 | 5,772 | 3,969 | ||||||||||||
Total ALLL | $ | 131,239 | 10,631 | 72,448 | 38,160 | 5,811 | 4,189 |
March 31, 2019 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Accruing loans 30-59 days past due | $ | 28,938 | 5,211 | 14,345 | 5,620 | 2,273 | 1,489 | |||||||||||
Accruing loans 60-89 days past due | 7,956 | 768 | 3,564 | 1,839 | 1,082 | 703 | ||||||||||||
Accruing loans 90 days or more past due | 2,451 | 998 | 234 | 998 | 115 | 106 | ||||||||||||
Non-accrual loans | 40,269 | 6,219 | 24,096 | 6,766 | 2,454 | 734 | ||||||||||||
Total past due and non-accrual loans | 79,614 | 13,196 | 42,239 | 15,223 | 5,924 | 3,032 | ||||||||||||
Current loans receivable | 8,246,456 | 871,536 | 4,643,843 | 1,894,229 | 556,457 | 280,391 | ||||||||||||
Total loans receivable | $ | 8,326,070 | 884,732 | 4,686,082 | 1,909,452 | 562,381 | 283,423 |
December 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Accruing loans 30-59 days past due | $ | 24,312 | 5,251 | 9,477 | 4,282 | 3,213 | 2,089 | |||||||||||
Accruing loans 60-89 days past due | 9,255 | 860 | 3,231 | 3,838 | 735 | 591 | ||||||||||||
Accruing loans 90 days or more past due | 2,018 | 788 | — | 492 | 428 | 310 | ||||||||||||
Non-accrual loans | 47,252 | 8,021 | 27,264 | 8,619 | 2,575 | 773 | ||||||||||||
Total past due and non-accrual loans | 82,837 | 14,920 | 39,972 | 17,231 | 6,951 | 3,763 | ||||||||||||
Current loans receivable | 8,204,712 | 872,822 | 4,617,589 | 1,893,940 | 537,737 | 282,624 | ||||||||||||
Total loans receivable | $ | 8,287,549 | 887,742 | 4,657,561 | 1,911,171 | 544,688 | 286,387 |
At or for the Three Months ended March 31, 2019 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Loans with a specific valuation allowance | ||||||||||||||||||
Recorded balance | $ | 16,061 | 44 | 6,004 | 10,004 | — | 9 | |||||||||||
Unpaid principal balance | 16,061 | 44 | 6,004 | 10,004 | — | 9 | ||||||||||||
Specific valuation allowance | 702 | 1 | 57 | 642 | — | 2 | ||||||||||||
Average balance | 17,629 | 1,001 | 7,674 | 8,636 | 60 | 258 | ||||||||||||
Loans without a specific valuation allowance | ||||||||||||||||||
Recorded balance | 88,350 | 10,602 | 59,100 | 12,950 | 3,057 | 2,641 | ||||||||||||
Unpaid principal balance | 105,100 | 12,009 | 69,991 | 16,516 | 3,699 | 2,885 | ||||||||||||
Average balance | 88,970 | 10,665 | 59,296 | 13,328 | 3,217 | 2,464 | ||||||||||||
Total | ||||||||||||||||||
Recorded balance | 104,411 | 10,646 | 65,104 | 22,954 | 3,057 | 2,650 | ||||||||||||
Unpaid principal balance | 121,161 | 12,053 | 75,995 | 26,520 | 3,699 | 2,894 | ||||||||||||
Specific valuation allowance | 702 | 1 | 57 | 642 | — | 2 | ||||||||||||
Average balance | 106,599 | 11,666 | 66,970 | 21,964 | 3,277 | 2,722 |
At or for the Year ended December 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
Loans with a specific valuation allowance | ||||||||||||||||||
Recorded balance | $ | 19,197 | 1,957 | 9,345 | 7,268 | 120 | 507 | |||||||||||
Unpaid principal balance | 19,491 | 2,220 | 9,345 | 7,268 | 120 | 538 | ||||||||||||
Specific valuation allowance | 3,223 | 83 | 568 | 2,313 | 39 | 220 | ||||||||||||
Average balance | 19,519 | 2,686 | 8,498 | 7,081 | 82 | 1,172 | ||||||||||||
Loans without a specific valuation allowance | ||||||||||||||||||
Recorded balance | 89,591 | 10,728 | 59,492 | 13,707 | 3,377 | 2,287 | ||||||||||||
Unpaid principal balance | 107,486 | 11,989 | 71,300 | 17,689 | 3,986 | 2,522 | ||||||||||||
Average balance | 106,747 | 10,269 | 73,889 | 17,376 | 3,465 | 1,748 | ||||||||||||
Total | ||||||||||||||||||
Recorded balance | 108,788 | 12,685 | 68,837 | 20,975 | 3,497 | 2,794 | ||||||||||||
Unpaid principal balance | 126,977 | 14,209 | 80,645 | 24,957 | 4,106 | 3,060 | ||||||||||||
Specific valuation allowance | 3,223 | 83 | 568 | 2,313 | 39 | 220 | ||||||||||||
Average balance | 126,266 | 12,955 | 82,387 | 24,457 | 3,547 | 2,920 |
Three Months ended March 31, 2019 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
TDRs that occurred during the period | ||||||||||||||||||
Number of loans | 4 | — | 1 | 2 | 1 | — | ||||||||||||
Pre-modification recorded balance | $ | 1,705 | — | 1,035 | 567 | 103 | — | |||||||||||
Post-modification recorded balance | $ | 1,705 | — | 1,035 | 567 | 103 | — | |||||||||||
TDRs that subsequently defaulted | ||||||||||||||||||
Number of loans | — | — | — | — | — | — | ||||||||||||
Recorded balance | $ | — | — | — | — | — | — |
Three Months ended March 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Total | Residential Real Estate | Commercial Real Estate | Other Commercial | Home Equity | Other Consumer | ||||||||||||
TDRs that occurred during the period | ||||||||||||||||||
Number of loans | 12 | 2 | 4 | 6 | — | — | ||||||||||||
Pre-modification recorded balance | $ | 15,997 | 439 | 8,278 | 7,280 | — | — | |||||||||||
Post-modification recorded balance | $ | 15,997 | 439 | 8,278 | 7,280 | — | — | |||||||||||
TDRs that subsequently defaulted | ||||||||||||||||||
Number of loans | 1 | 1 | — | — | — | — | ||||||||||||
Recorded balance | $ | 334 | 334 | — | — | — | — |
March 31, 2019 | ||||||
(Dollars in thousands) | Finance Leases | Operating Leases | ||||
ROU assets | $ | 951 | ||||
Accumulated depreciation | (832 | ) | ||||
Net ROU assets | $ | 119 | 36,247 | |||
Lease liabilities | $ | 163 | 38,389 | |||
Weighted-average remaining lease term | 2 years | 19 years | ||||
Weighted-average discount rate | 5.3 | % | 3.7 | % |
March 31, 2019 | ||||||
(Dollars in thousands) | Finance Leases | Operating Leases | ||||
Maturing within one year | $ | 92 | 3,286 | |||
Maturing one year through two years | 77 | 3,238 | ||||
Maturing two years through three years | 1 | 3,032 | ||||
Maturing three years through four years | 1 | 2,832 | ||||
Maturing four years through five years | — | 2,716 | ||||
Thereafter | — | 39,839 | ||||
Total lease payments | 171 | 54,943 | ||||
Present value of lease payments | ||||||
Short-term | 86 | 1,920 | ||||
Long-term | 77 | 36,469 | ||||
Total present value of lease payments | 163 | 38,389 | ||||
Difference between lease payments and present value of lease payments | $ | 8 | 16,554 |
Three Months ended | |||
(Dollars in thousands) | March 31, 2019 | ||
Finance lease cost | |||
Amortization of ROU assets | $ | 16 | |
Interest on lease liabilities | 2 | ||
Operating lease cost | 913 | ||
Short-term lease cost | 109 | ||
Variable lease cost | 199 | ||
Sublease income | (2 | ) | |
Total lease expense | $ | 1,237 |
Three Months ended | ||||||
March 31, 2019 | ||||||
(Dollars in thousands) | Finance Leases | Operating Leases | ||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||
Operating cash flows | $ | 2 | 479 | |||
Financing cash flows | 21 | N/A |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Net carrying value at beginning of period | $ | 289,586 | 177,811 | |||
Acquisitions | — | 111,724 | ||||
Net carrying value at end of period | $ | 289,586 | 289,535 |
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | ||||
Assets | ||||||
Loans receivable | $ | 80,466 | 80,123 | |||
Accrued interest receivable | 99 | 96 | ||||
Other assets | 45,808 | 45,779 | ||||
Total assets | $ | 126,373 | 125,998 | |||
Liabilities | ||||||
Other borrowed funds | $ | 14,575 | 14,527 | |||
Accrued interest payable | 3 | 1 | ||||
Other liabilities | 123 | 125 | ||||
Total liabilities | $ | 14,701 | 14,653 |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Amortization expense | $ | 1,417 | 891 | |||
Tax credits and other tax benefits recognized | 1,958 | 1,240 |
March 31, 2019 | |||||||||
Remaining Contractual Maturity of the Agreements | |||||||||
(Dollars in thousands) | Overnight and Continuous | Up to 30 Days | Total | ||||||
U.S. government and federal agency | $ | 4,402 | — | 4,402 | |||||
Residential mortgage-backed securities | 397,077 | — | 397,077 | ||||||
Commercial mortgage-backed securities | 88,141 | — | 88,141 | ||||||
Total | $ | 489,620 | — | 489,620 |
December 31, 2018 | |||||||||
Remaining Contractual Maturity of the Agreements | |||||||||
(Dollars in thousands) | Overnight and Continuous | Up to 30 Days | Total | ||||||
Residential mortgage-backed securities | $ | 328,174 | — | 328,174 | |||||
Commercial mortgage-backed securities | 66,339 | 1,638 | 67,977 | ||||||
Total | $ | 394,513 | 1,638 | 396,151 |
(Dollars in thousands) | Forecasted Notional Amount | Variable Interest Rate 1 | Fixed Interest Rate 1 | Payment Term | ||||||
Interest rate swap | $ | 160,000 | 3 month LIBOR | 3.378 | % | Oct. 21, 2014 - Oct. 21, 2021 | ||||
Interest rate swap | 100,000 | 3 month LIBOR | 2.498 | % | Nov. 30, 2015 - Nov. 30, 2022 |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Interest rate swaps | ||||||
Amount of (loss) gain recognized in OCI | $ | (1,834 | ) | 4,379 | ||
Amount of loss reclassified from OCI to interest expense | (223 | ) | (900 | ) |
March 31, 2019 | December 31, 2018 | |||||||||||||||||
(Dollars in thousands) | Gross Amount of Recognized Assets | Gross Amount Offset in the Statements of Financial Position | Net Amounts of Assets Presented in the Statements of Financial Position | Gross Amount of Recognized Assets | Gross Amount Offset in the Statements of Financial Position | Net Amounts of Assets Presented in the Statements of Financial Position | ||||||||||||
Interest rate swaps | $ | — | — | — | 139 | (139 | ) | — |
March 31, 2019 | December 31, 2018 | |||||||||||||||||
(Dollars in thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Liabilities Presented in the Statements of Financial Position | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Liabilities Presented in the Statements of Financial Position | ||||||||||||
Interest rate swaps | $ | 5,380 | — | 5,380 | 3,908 | (139 | ) | 3,769 |
Three Months ended | ||||||
(Dollars in thousands) | March 31, 2019 | March 31, 2018 | ||||
Debit card expenses | $ | 1,869 | 1,640 | |||
Consulting and outside services | 1,767 | 1,379 | ||||
Telephone | 1,175 | 1,021 | ||||
Employee expenses | 996 | 791 | ||||
Business development | 890 | 468 | ||||
Loan expenses | 859 | 804 | ||||
Postage | 833 | 779 | ||||
Printing and supplies | 725 | 691 | ||||
VIE amortization and other expenses | 545 | 474 | ||||
ATM expenses | 494 | 289 | ||||
Accounting and audit fees | 453 | 418 | ||||
Checking and operating expenses | 362 | 113 | ||||
Legal fees | 307 | 314 | ||||
Mergers and acquisition expenses | 214 | 1,836 | ||||
Other | 778 | 1,144 | ||||
Total other expenses | $ | 12,267 | 12,161 |
(Dollars in thousands) | Gains (Losses) on Available-For-Sale Debt Securities | Losses on Derivatives Used for Cash Flow Hedges | Total | ||||||
Balance at January 1, 2018 | $ | 5,031 | (7,010 | ) | (1,979 | ) | |||
Other comprehensive (loss) income before reclassifications | (19,196 | ) | 3,269 | (15,927 | ) | ||||
Reclassification adjustments for losses included in net income | 211 | 672 | 883 | ||||||
Net current period other comprehensive (loss) income | (18,985 | ) | 3,941 | (15,044 | ) | ||||
Balance at March 31, 2018 | $ | (13,954 | ) | (3,069 | ) | (17,023 | ) | ||
Balance at January 1, 2019 | $ | (6,613 | ) | (2,814 | ) | (9,427 | ) | ||
Other comprehensive income (loss) before reclassifications | 34,681 | (1,369 | ) | 33,312 | |||||
Reclassification adjustments for (gains) losses included in net income | (165 | ) | 167 | 2 | |||||
Net current period other comprehensive income (loss) | 34,516 | (1,202 | ) | 33,314 | |||||
Balance at March 31, 2019 | $ | 27,903 | (4,016 | ) | 23,887 |
Three Months ended | ||||||
(Dollars in thousands, except per share data) | March 31, 2019 | March 31, 2018 | ||||
Net income available to common stockholders, basic and diluted | $ | 49,132 | 38,559 | |||
Average outstanding shares - basic | 84,549,974 | 80,808,904 | ||||
Add: dilutive restricted stock awards and stock options | 64,274 | 78,231 | ||||
Average outstanding shares - diluted | 84,614,248 | 80,887,135 | ||||
Basic earnings per share | $ | 0.58 | 0.48 | |||
Diluted earnings per share | $ | 0.58 | 0.48 |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
Fair Value Measurements At the End of the Reporting Period Using | ||||||||||||
(Dollars in thousands) | Fair Value March 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
Debt securities, available-for-sale | ||||||||||||
U.S. government and federal agency | $ | 21,521 | — | 21,521 | — | |||||||
U.S. government sponsored enterprises | 106,457 | — | 106,457 | — | ||||||||
State and local governments | 725,191 | — | 725,191 | — | ||||||||
Corporate bonds | 218,548 | — | 218,548 | — | ||||||||
Residential mortgage-backed securities | 825,048 | — | 825,048 | — | ||||||||
Commercial mortgage-backed securities | 625,557 | — | 625,557 | — | ||||||||
Loans held for sale, at fair value | 29,389 | — | 29,389 | — | ||||||||
Total assets measured at fair value on a recurring basis | $ | 2,551,711 | — | 2,551,711 | — | |||||||
Interest rate swaps | $ | 5,380 | — | 5,380 | — | |||||||
Total liabilities measured at fair value on a recurring basis | $ | 5,380 | — | 5,380 | — |
Fair Value Measurements At the End of the Reporting Period Using | ||||||||||||
(Dollars in thousands) | Fair Value December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
Debt securities, available-for-sale | ||||||||||||
U.S. government and federal agency | $ | 23,649 | — | 23,649 | — | |||||||
U.S. government sponsored enterprises | 120,208 | — | 120,208 | — | ||||||||
State and local governments | 852,250 | — | 852,250 | — | ||||||||
Corporate bonds | 290,817 | — | 290,817 | — | ||||||||
Residential mortgage-backed securities | 792,915 | — | 792,915 | — | ||||||||
Commercial mortgage-backed securities | 491,824 | — | 491,824 | — | ||||||||
Loans held for sale, at fair value | 33,156 | — | 33,156 | — | ||||||||
Total assets measured at fair value on a recurring basis | $ | 2,604,819 | — | 2,604,819 | — | |||||||
Interest rate swaps | $ | 3,769 | — | 3,769 | — | |||||||
Total liabilities measured at fair value on a recurring basis | $ | 3,769 | — | 3,769 | — |
Fair Value Measurements At the End of the Reporting Period Using | ||||||||||||
(Dollars in thousands) | Fair Value March 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
Other real estate owned | $ | 204 | — | — | 204 | |||||||
Collateral-dependent impaired loans, net of ALLL | 8 | — | — | 8 | ||||||||
Total assets measured at fair value on a non-recurring basis | $ | 212 | — | — | 212 |
Fair Value Measurements At the End of the Reporting Period Using | ||||||||||||
(Dollars in thousands) | Fair Value December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
Other real estate owned | $ | 1,011 | — | — | 1,011 | |||||||
Collateral-dependent impaired loans, net of ALLL | 6,985 | — | — | 6,985 | ||||||||
Total assets measured at fair value on a non-recurring basis | $ | 7,996 | — | — | 7,996 |
Fair Value March 31, 2019 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||
(Dollars in thousands) | Valuation Technique | Unobservable Input | Range (Weighted-Average) 1 | ||||||
Other real estate owned | $ | 204 | Sales comparison approach | Selling costs | 8.0% - 15.0% (10.6%) | ||||
Collateral-dependent impaired loans, net of ALLL | $ | 8 | Sales comparison approach | Selling costs | 10.0% - 10.0% (10.0%) |
Fair Value December 31, 2018 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||
(Dollars in thousands) | Valuation Technique | Unobservable Input | Range (Weighted-Average) 1 | ||||||
Other real estate owned | $ | 1,011 | Sales comparison approach | Selling costs | 8.0% - 15.0% (9.2%) | ||||
Collateral-dependent impaired loans, net of ALLL | $ | 2,384 | Sales comparison approach | Selling costs | 8.0% - 20.0% (9.9%) | ||||
4,601 | Combined approach | Selling costs | 10.0% - 10.0% (10.0%) | ||||||
$ | 6,985 |
Fair Value Measurements At the End of the Reporting Period Using | ||||||||||||
(Dollars in thousands) | Carrying Amount March 31, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
Financial assets | ||||||||||||
Cash and cash equivalents | $ | 202,527 | 202,527 | — | — | |||||||
Debt securities, held-to-maturity | 255,572 | — | 261,408 | — | ||||||||
Loans receivable, net of ALLL | 8,196,284 | — | — | 8,148,954 | ||||||||
Total financial assets | $ | 8,654,383 | 202,527 | 261,408 | 8,148,954 | |||||||
Financial liabilities | ||||||||||||
Term deposits | $ | 1,089,684 | — | 1,089,785 | — | |||||||
FHLB advances | 154,683 | — | 154,915 | — | ||||||||
Repurchase agreements and other borrowed funds | 504,358 | — | 504,358 | — | ||||||||
Subordinated debentures | 134,048 | — | 121,369 | — | ||||||||
Total financial liabilities | $ | 1,882,773 | — | 1,870,427 | — |
Fair Value Measurements At the End of the Reporting Period Using | ||||||||||||
(Dollars in thousands) | Carrying Amount December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
Financial assets | ||||||||||||
Cash and cash equivalents | $ | 203,790 | 203,790 | — | — | |||||||
Debt securities, held-to-maturity | 297,915 | — | 288,256 | — | ||||||||
Loans receivable, net of ALLL | 8,156,310 | — | — | 8,079,112 | ||||||||
Total financial assets | $ | 8,658,015 | 203,790 | 288,256 | 8,079,112 | |||||||
Financial liabilities | ||||||||||||
Term deposits | $ | 1,070,208 | — | 1,069,777 | — | |||||||
FHLB advances | 440,175 | — | 439,615 | — | ||||||||
Repurchase agreements and other borrowed funds | 410,859 | — | 410,859 | — | ||||||||
Subordinated debentures | 134,051 | — | 120,302 | — | ||||||||
Total financial liabilities | $ | 2,055,293 | — | 2,040,553 | — |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | the risks associated with lending and potential adverse changes of the credit quality of loans in the Company’s portfolio; |
• | changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System or the Federal Reserve Board, which could adversely affect the Company’s net interest income and profitability; |
• | changes in the cost and scope of insurance from the Federal Deposit Insurance Corporation (“FDIC”) and other third parties; |
• | legislative or regulatory changes, including increased banking and consumer protection regulation that adversely affect the Company’s business, both generally and as a result of the Company exceeding $10 billion in total consolidated assets; |
• | ability to complete pending or prospective future acquisitions; |
• | costs or difficulties related to the completion and integration of acquisitions; |
• | the goodwill the Company has recorded in connection with acquisitions could become impaired, which may have an adverse impact on earnings and capital; |
• | reduced demand for banking products and services; |
• | the reputation of banks and the financial services industry could deteriorate, which could adversely affect the Company's ability to obtain (and maintain) customers; |
• | competition among financial institutions in the Company's markets may increase significantly; |
• | the risks presented by continued public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow the Company through acquisitions; |
• | the projected business and profitability of an expansion or the opening of a new branch could be lower than expected; |
• | consolidation in the financial services industry in the Company’s markets resulting in the creation of larger financial institutions who may have greater resources could change the competitive landscape; |
• | dependence on the Chief Executive Officer (“CEO”), the senior management team and the Presidents of Glacier Bank (“Bank”) divisions; |
• | material failure, potential interruption or breach in security of the Company’s systems and technological changes which could expose us to new risks (e.g., cybersecurity), fraud or system failures; |
• | natural disasters, including fires, floods, earthquakes, and other unexpected events; |
• | the Company’s success in managing risks involved in the foregoing; and |
• | the effects of any reputational damage to the Company resulting from any of the foregoing. |
At or for the Three Months ended | |||||||||
(Dollars in thousands, except per share and market data) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | ||||||
Operating results | |||||||||
Net income | $ | 49,132 | 49,599 | 38,559 | |||||
Basic earnings per share | $ | 0.58 | 0.59 | 0.48 | |||||
Diluted earnings per share | $ | 0.58 | 0.59 | 0.48 | |||||
Dividends declared per share 1 | $ | 0.26 | 0.56 | 0.23 | |||||
Market value per share | |||||||||
Closing | $ | 40.07 | 39.62 | 38.38 | |||||
High | $ | 45.47 | 47.67 | 41.24 | |||||
Low | $ | 37.58 | 36.84 | 36.72 | |||||
Selected ratios and other data | |||||||||
Number of common stock shares outstanding | 84,588,199 | 84,521,692 | 84,511,472 | ||||||
Average outstanding shares - basic | 84,549,974 | 54,921,640 | 80,808,904 | ||||||
Average outstanding shares - diluted | 84,614,248 | 84,610,018 | 80,887,135 | ||||||
Return on average assets (annualized) | 1.67 | % | 1.66 | % | 1.50 | % | |||
Return on average equity (annualized) | 13.02 | % | 13.08 | % | 11.90 | % | |||
Efficiency ratio | 55.37 | % | 53.93 | % | 57.80 | % | |||
Dividend payout ratio 1 | 44.83 | % | 94.92 | % | 47.92 | % | |||
Loan to deposit ratio | 87.14 | % | 87.64 | % | 81.83 | % | |||
Number of full time equivalent employees | 2,634 | 2,623 | 2,545 | ||||||
Number of locations | 169 | 167 | 166 | ||||||
Number of ATMs | 222 | 222 | 223 |
1 | Includes a special dividend declared of $0.30 per share for the three months ended December 31, 2018. |
$ Change from | |||||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Dec 31, 2018 | Mar 31, 2018 | ||||||||||
Cash and cash equivalents | $ | 202,527 | 203,790 | 451,048 | (1,263 | ) | (248,521 | ) | |||||||
Debt securities, available-for-sale | 2,522,322 | 2,571,663 | 2,154,845 | (49,341 | ) | 367,477 | |||||||||
Debt securities, held-to-maturity | 255,572 | 297,915 | 634,413 | (42,343 | ) | (378,841 | ) | ||||||||
Total debt securities | 2,777,894 | 2,869,578 | 2,789,258 | (91,684 | ) | (11,364 | ) | ||||||||
Loans receivable | |||||||||||||||
Residential real estate | 884,732 | 887,742 | 831,021 | (3,010 | ) | 53,711 | |||||||||
Commercial real estate | 4,686,082 | 4,657,561 | 4,251,003 | 28,521 | 435,079 | ||||||||||
Other commercial | 1,909,452 | 1,911,171 | 1,839,293 | (1,719 | ) | 70,159 | |||||||||
Home equity | 562,381 | 544,688 | 489,879 | 17,693 | 72,502 | ||||||||||
Other consumer | 283,423 | 286,387 | 258,834 | (2,964 | ) | 24,589 | |||||||||
Loans receivable | 8,326,070 | 8,287,549 | 7,670,030 | 38,521 | 656,040 | ||||||||||
Allowance for loan and lease losses | (129,786 | ) | (131,239 | ) | (127,608 | ) | 1,453 | (2,178 | ) | ||||||
Loans receivable, net | 8,196,284 | 8,156,310 | 7,542,422 | 39,974 | 653,862 | ||||||||||
Other assets | 897,074 | 885,806 | 876,050 | 11,268 | 21,024 | ||||||||||
Total assets | $ | 12,073,779 | 12,115,484 | 11,658,778 | (41,705 | ) | 415,001 |
$ Change from | |||||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Dec 31, 2018 | Mar 31, 2018 | ||||||||||
Deposits | |||||||||||||||
Non-interest bearing deposits | $ | 3,051,119 | 3,001,178 | 2,811,469 | 49,941 | 239,650 | |||||||||
NOW and DDA accounts | 2,383,806 | 2,391,307 | 2,400,693 | (7,501 | ) | (16,887 | ) | ||||||||
Savings accounts | 1,373,544 | 1,346,790 | 1,328,047 | 26,754 | 45,497 | ||||||||||
Money market deposit accounts | 1,689,962 | 1,684,284 | 1,778,068 | 5,678 | (88,106 | ) | |||||||||
Certificate accounts | 896,731 | 901,484 | 955,105 | (4,753 | ) | (58,374 | ) | ||||||||
Core deposits, total | 9,395,162 | 9,325,043 | 9,273,382 | 70,119 | 121,780 | ||||||||||
Wholesale deposits | 192,953 | 168,724 | 145,463 | 24,229 | 47,490 | ||||||||||
Deposits, total | 9,588,115 | 9,493,767 | 9,418,845 | 94,348 | 169,270 | ||||||||||
Securities sold under agreements to repurchase | 489,620 | 396,151 | 395,794 | 93,469 | 93,826 | ||||||||||
Federal Home Loan Bank advances | 154,683 | 440,175 | 155,057 | (285,492 | ) | (374 | ) | ||||||||
Other borrowed funds | 14,738 | 14,708 | 8,204 | 30 | 6,534 | ||||||||||
Subordinated debentures | 134,048 | 134,051 | 134,061 | (3 | ) | (13 | ) | ||||||||
Other liabilities | 141,725 | 120,778 | 92,793 | 20,947 | 48,932 | ||||||||||
Total liabilities | $ | 10,522,929 | 10,599,630 | 10,204,754 | (76,701 | ) | 318,175 |
$ Change from | |||||||||||||||
(Dollars in thousands, except per share data) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Dec 31, 2018 | Mar 31, 2018 | ||||||||||
Common equity | $ | 1,526,963 | 1,525,281 | 1,471,047 | 1,682 | 55,916 | |||||||||
Accumulated other comprehensive income (loss) | 23,887 | (9,427 | ) | (17,023 | ) | 33,314 | 40,910 | ||||||||
Total stockholders’ equity | 1,550,850 | 1,515,854 | 1,454,024 | 34,996 | 96,826 | ||||||||||
Goodwill and core deposit intangible, net | (337,134 | ) | (338,828 | ) | (343,991 | ) | 1,694 | 6,857 | |||||||
Tangible stockholders’ equity | $ | 1,213,716 | 1,177,026 | 1,110,033 | 36,690 | 103,683 |
Stockholders’ equity to total assets | 12.84 | % | 12.51 | % | 12.47 | % | |||||||||
Tangible stockholders’ equity to total tangible assets | 10.34 | % | 9.99 | % | 9.81 | % | |||||||||
Book value per common share | $ | 18.33 | 17.93 | 17.21 | 0.40 | 1.12 | |||||||||
Tangible book value per common share | $ | 14.35 | 13.93 | 13.13 | 0.42 | 1.22 |
Three Months ended | $ Change from | ||||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Dec 31, 2018 | Mar 31, 2018 | ||||||||||
Net interest income | |||||||||||||||
Interest income | $ | 126,116 | 125,310 | 103,066 | 806 | 23,050 | |||||||||
Interest expense | 10,904 | 9,436 | 7,774 | 1,468 | 3,130 | ||||||||||
Total net interest income | 115,212 | 115,874 | 95,292 | (662 | ) | 19,920 | |||||||||
Non-interest income | |||||||||||||||
Service charges and other fees | 18,015 | 19,708 | 16,871 | (1,693 | ) | 1,144 | |||||||||
Miscellaneous loan fees and charges | 967 | 1,278 | 1,477 | (311 | ) | (510 | ) | ||||||||
Gain on sale of loans | 5,798 | 5,639 | 6,097 | 159 | (299 | ) | |||||||||
Gain (loss) on sale of investments | 213 | (357 | ) | (333 | ) | 570 | 546 | ||||||||
Other income | 3,481 | 2,226 | 1,974 | 1,255 | 1,507 | ||||||||||
Total non-interest income | 28,474 | 28,494 | 26,086 | (20 | ) | 2,388 | |||||||||
Total income | $ | 143,686 | 144,368 | 121,378 | (682 | ) | 22,308 | ||||||||
Net interest margin (tax-equivalent) | 4.34 | % | 4.30 | % | 4.10 | % |
Three Months ended | $ Change from | ||||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Dec 31, 2018 | Mar 31, 2018 | ||||||||||
Compensation and employee benefits | $ | 52,728 | 50,385 | 45,721 | 2,343 | 7,007 | |||||||||
Occupancy and equipment | 8,437 | 7,884 | 7,274 | 553 | 1,163 | ||||||||||
Advertising and promotions | 2,388 | 2,434 | 2,170 | (46 | ) | 218 | |||||||||
Data processing | 3,892 | 3,951 | 3,967 | (59 | ) | (75 | ) | ||||||||
Other real estate owned | 139 | 264 | 72 | (125 | ) | 67 | |||||||||
Regulatory assessments and insurance | 1,285 | 1,263 | 1,206 | 22 | 79 | ||||||||||
Core deposit intangibles amortization | 1,694 | 1,731 | 1,056 | (37 | ) | 638 | |||||||||
Other expenses | 12,267 | 13,964 | 12,161 | (1,697 | ) | 106 | |||||||||
Total non-interest expense | $ | 82,830 | 81,876 | 73,627 | 954 | 9,203 |
(Dollars in thousands) | Provision for Loan Losses | Net Charge-Offs | Allowance for Loan and Lease Losses as a Percent of Loans | Accruing Loans 30-89 Days Past Due as a Percent of Loans | Non-Performing Assets to Total Sub-sidiary Assets | |||||||||||
First quarter 2019 | $ | 57 | $ | 1,510 | 1.56 | % | 0.44 | % | 0.42 | % | ||||||
Fourth quarter 2018 | 1,246 | 2,542 | 1.58 | % | 0.41 | % | 0.47 | % | ||||||||
Third quarter 2018 | 3,194 | 2,223 | 1.63 | % | 0.31 | % | 0.61 | % | ||||||||
Second quarter 2018 | 4,718 | 762 | 1.66 | % | 0.50 | % | 0.71 | % | ||||||||
First quarter 2018 | 795 | 2,755 | 1.66 | % | 0.59 | % | 0.64 | % | ||||||||
Fourth quarter 2017 | 2,886 | 2,894 | 1.97 | % | 0.57 | % | 0.68 | % | ||||||||
Third quarter 2017 | 3,327 | 3,628 | 1.99 | % | 0.45 | % | 0.67 | % | ||||||||
Second quarter 2017 | 3,013 | 2,362 | 2.05 | % | 0.49 | % | 0.70 | % |
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Carrying Amount | Percent | Carrying Amount | Percent | Carrying Amount | Percent | ||||||||||||||
Available-for-sale | ||||||||||||||||||||
U.S. government and federal agency | $ | 21,521 | 1 | % | $ | 23,649 | 1 | % | $ | 29,352 | 1 | % | ||||||||
U.S. government sponsored enterprises | 106,457 | 4 | % | 120,208 | 4 | % | 109,912 | 4 | % | |||||||||||
State and local governments | 725,191 | 26 | % | 852,250 | 30 | % | 643,111 | 23 | % | |||||||||||
Corporate bonds | 218,548 | 8 | % | 290,817 | 10 | % | 318,856 | 11 | % | |||||||||||
Residential mortgage-backed securities | 825,048 | 30 | % | 792,915 | 28 | % | 901,112 | 32 | % | |||||||||||
Commercial mortgage-backed securities | 625,557 | 22 | % | 491,824 | 17 | % | 152,502 | 6 | % | |||||||||||
Total available-for-sale | 2,522,322 | 91 | % | 2,571,663 | 90 | % | 2,154,845 | 77 | % | |||||||||||
Held-to-maturity | ||||||||||||||||||||
State and local governments | 255,572 | 9 | % | 297,915 | 10 | % | 634,413 | 23 | % | |||||||||||
Total held-to-maturity | 255,572 | 9 | % | 297,915 | 10 | % | 634,413 | 23 | % | |||||||||||
Total debt securities | $ | 2,777,894 | 100 | % | $ | 2,869,578 | 100 | % | $ | 2,789,258 | 100 | % |
March 31, 2019 | December 31, 2018 | |||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||
S&P: AAA / Moody’s: Aaa | $ | 229,568 | 236,943 | 299,275 | 296,027 | |||||||
S&P: AA+, AA, AA- / Moody’s: Aa1, Aa2, Aa3 | 552,595 | 568,156 | 643,023 | 640,736 | ||||||||
S&P: A+, A, A- / Moody’s: A1, A2, A3 | 149,835 | 157,097 | 163,041 | 167,779 | ||||||||
S&P: BBB+, BBB, BBB- / Moody’s: Baa1, Baa2, Baa3 | 4,208 | 4,397 | 4,208 | 4,382 | ||||||||
Not rated by either entity | 18,388 | 18,956 | 31,954 | 30,532 | ||||||||
Below investment grade | 1,048 | 1,050 | 1,050 | 1,050 | ||||||||
Total | $ | 955,642 | 986,599 | 1,142,551 | 1,140,506 |
March 31, 2019 | December 31, 2018 | |||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||
General obligation - unlimited | $ | 567,978 | 586,276 | 657,051 | 658,062 | |||||||
General obligation - limited | 147,504 | 153,660 | 173,973 | 177,275 | ||||||||
Revenue | 223,436 | 229,074 | 290,106 | 283,939 | ||||||||
Certificate of participation | 11,011 | 11,805 | 14,174 | 14,463 | ||||||||
Other | 5,713 | 5,784 | 7,247 | 6,767 | ||||||||
Total | $ | 955,642 | 986,599 | 1,142,551 | 1,140,506 |
March 31, 2019 | December 31, 2018 | |||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||
Washington | $ | 146,118 | 151,429 | 179,691 | 179,808 | |||||||
Michigan | 138,163 | 143,493 | 144,378 | 147,386 | ||||||||
Texas | 121,418 | 125,096 | 157,978 | 157,706 | ||||||||
Montana | 99,965 | 104,751 | 109,106 | 111,492 | ||||||||
California | 42,890 | 43,788 | 50,145 | 48,623 | ||||||||
All other states | 407,088 | 418,042 | 501,253 | 495,491 | ||||||||
Total | $ | 955,642 | 986,599 | 1,142,551 | 1,140,506 |
One Year or Less | After One through Five Years | After Five through Ten Years | After Ten Years | Mortgage-Backed Securities 1 | Total | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||||||||||||
U.S. government and federal agency | $ | 4 | 3.29 | % | $ | 2,873 | 2.90 | % | $ | 8,792 | 2.65 | % | $ | 9,852 | 2.65 | % | $ | — | — | % | $ | 21,521 | 2.68 | % | |||||||||||||||||
U.S. government sponsored enterprises | — | — | % | 82,447 | 2.69 | % | 24,010 | 3.21 | % | — | — | % | — | — | % | 106,457 | 2.81 | % | |||||||||||||||||||||||
State and local governments | 6,031 | 1.71 | % | 23,143 | 2.59 | % | 249,861 | 3.45 | % | 446,156 | 4.03 | % | — | — | % | 725,191 | 3.76 | % | |||||||||||||||||||||||
Corporate bonds | 81,976 | 2.56 | % | 136,572 | 3.53 | % | — | — | % | — | — | % | — | — | % | 218,548 | 3.16 | % | |||||||||||||||||||||||
Residential mortgage-backed securities | — | — | % | — | — | % | — | — | % | — | — | % | 825,048 | 2.59 | % | 825,048 | 2.59 | % | |||||||||||||||||||||||
Commercial mortgage-backed securities | — | — | % | — | — | % | — | — | % | — | — | % | 625,557 | 3.19 | % | 625,557 | 3.19 | % | |||||||||||||||||||||||
Total available- for-sale | 88,011 | 2.50 | % | 245,035 | 3.15 | % | 282,663 | 3.40 | % | 456,008 | 4.00 | % | 1,450,605 | 2.85 | % | 2,522,322 | 3.13 | % | |||||||||||||||||||||||
Held-to-maturity | |||||||||||||||||||||||||||||||||||||||||
State and local governments | — | — | % | 7,061 | 2.27 | % | 76,025 | 2.57 | % | 172,486 | 2.83 | % | — | — | % | 255,572 | 2.74 | % | |||||||||||||||||||||||
Total held-to-maturity | — | — | % | 7,061 | 2.27 | % | 76,025 | 2.57 | % | 172,486 | 2.83 | % | — | — | % | 255,572 | 2.74 | % | |||||||||||||||||||||||
Total debt securities | $ | 88,011 | 2.50 | % | $ | 252,096 | 3.13 | % | $ | 358,688 | 3.22 | % | $ | 628,494 | 3.67 | % | $ | 1,450,605 | 2.85 | % | $ | 2,777,894 | 3.09 | % |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized Loss | Unrealized Loss as a Percent of Fair Value | Fair Value | Unrealized Loss | Unrealized Loss as a Percent of Fair Value | |||||||||||||||
Temporarily impaired securities purchased prior to 2019 | |||||||||||||||||||||
U.S. government and federal agency | $ | 16,118 | $ | (186 | ) | (1 | )% | $ | 17,330 | $ | (122 | ) | (1 | )% | |||||||
U.S. government sponsored enterprises | 4,961 | (1 | ) | — | % | 4,918 | (40 | ) | (1 | )% | |||||||||||
State and local governments | 43,341 | (311 | ) | (1 | )% | 42,734 | (2,082 | ) | (5 | )% | |||||||||||
Corporate bonds | 71,723 | (239 | ) | — | % | 71,698 | (579 | ) | (1 | )% | |||||||||||
Residential mortgage-backed securities | 469,765 | (6,209 | ) | (1 | )% | 487,482 | (13,411 | ) | (3 | )% | |||||||||||
Commercial mortgage-backed securities | 70,351 | (1,085 | ) | (2 | )% | 72,273 | (1,747 | ) | (2 | )% | |||||||||||
Total | $ | 676,259 | $ | (8,031 | ) | (1 | )% | $ | 696,435 | $ | (17,981 | ) | (3 | )% | |||||||
Temporarily impaired securities purchased during 2019 | |||||||||||||||||||||
State and local governments | $ | 1,702 | $ | — | — | % | |||||||||||||||
Total | $ | 1,702 | $ | — | — | % | |||||||||||||||
Temporarily impaired securities | |||||||||||||||||||||
U.S. government and federal agency | $ | 16,118 | $ | (186 | ) | (1 | )% | ||||||||||||||
U.S. government sponsored enterprises | 4,961 | (1 | ) | — | % | ||||||||||||||||
State and local governments | 45,043 | (311 | ) | (1 | )% | ||||||||||||||||
Corporate bonds | 71,723 | (239 | ) | — | % | ||||||||||||||||
Residential mortgage-backed securities | 469,765 | (6,209 | ) | (1 | )% | ||||||||||||||||
Commercial mortgage-backed securities | 70,351 | (1,085 | ) | (2 | )% | ||||||||||||||||
Total | $ | 677,961 | $ | (8,031 | ) | (1 | )% |
(Dollars in thousands) | Number of Debt Securities | Unrealized Loss | ||||
5.1% to 10.0% | 3 | $ | (384 | ) | ||
0.1% to 5.0% | 302 | (7,647 | ) | |||
Total | 305 | $ | (8,031 | ) |
(Dollars in thousands) | Number of Debt Securities | Unrealized Loss for 12 Months Or More | Most Notable Loss | |||||||
U.S. government and federal agency | 14 | $ | (115 | ) | $ | (22 | ) | |||
U.S. government sponsored enterprises | 2 | (1 | ) | (1 | ) | |||||
State and local governments | 64 | (307 | ) | (33 | ) | |||||
Corporate bonds | 22 | (202 | ) | (80 | ) | |||||
Residential mortgage-backed securities | 134 | (6,123 | ) | (374 | ) | |||||
Commercial mortgage-backed securities | 19 | (831 | ) | (204 | ) | |||||
Total | 255 | $ | (7,579 | ) |
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Residential real estate loans | $ | 884,732 | 11 | % | $ | 887,742 | 11 | % | $ | 831,021 | 11 | % | ||||||||
Commercial loans | ||||||||||||||||||||
Real estate | 4,686,082 | 57 | % | 4,657,561 | 57 | % | 4,251,003 | 56 | % | |||||||||||
Other commercial | 1,909,452 | 23 | % | 1,911,171 | 23 | % | 1,839,293 | 24 | % | |||||||||||
Total | 6,595,534 | 80 | % | 6,568,732 | 80 | % | 6,090,296 | 80 | % | |||||||||||
Consumer and other loans | ||||||||||||||||||||
Home equity | 562,381 | 7 | % | 544,688 | 7 | % | 489,879 | 7 | % | |||||||||||
Other consumer | 283,423 | 4 | % | 286,387 | 4 | % | 258,834 | 4 | % | |||||||||||
Total | 845,804 | 11 | % | 831,075 | 11 | % | 748,713 | 11 | % | |||||||||||
Loans receivable | 8,326,070 | 102 | % | 8,287,549 | 102 | % | 7,670,030 | 102 | % | |||||||||||
ALLL | (129,786 | ) | (2 | )% | (131,239 | ) | (2 | )% | (127,608 | ) | (2 | )% | ||||||||
Loans receivable, net | $ | 8,196,284 | 100 | % | $ | 8,156,310 | 100 | % | $ | 7,542,422 | 100 | % |
At or for the Three Months ended | At or for the Year ended | At or for the Three Months ended | |||||||
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||
Other real estate owned | $ | 8,125 | 7,480 | 14,132 | |||||
Accruing loans 90 days or more past due | |||||||||
Residential real estate | 998 | 788 | 430 | ||||||
Commercial | 1,232 | 492 | 4,701 | ||||||
Consumer and other | 221 | 738 | 271 | ||||||
Total | 2,451 | 2,018 | 5,402 | ||||||
Non-accrual loans | |||||||||
Residential real estate | 6,219 | 8,021 | 7,188 | ||||||
Commercial | 30,862 | 35,883 | 43,853 | ||||||
Consumer and other | 3,188 | 3,348 | 3,408 | ||||||
Total | 40,269 | 47,252 | 54,449 | ||||||
Total non-performing assets | $ | 50,845 | 56,750 | 73,983 | |||||
Non-performing assets as a percentage of subsidiary assets | 0.42 | % | 0.47 | % | 0.64 | % | |||
ALLL as a percentage of non-performing loans | 304 | % | 266 | % | 213 | % | |||
Accruing loans 30-89 days past due | $ | 36,894 | 33,567 | 44,963 | |||||
Accruing troubled debt restructurings | $ | 24,468 | 25,833 | 41,649 | |||||
Non-accrual troubled debt restructurings | $ | 6,747 | 10,660 | 13,289 | |||||
U.S. government guarantees included in non-performing assets | $ | 2,649 | 4,811 | 4,548 | |||||
Interest income 1 | $ | 512 | 2,340 | 646 |
1 | Amounts represent estimated interest income that would have been recognized on loans accounted for on a non-accrual basis as of the end of each period had such loans performed pursuant to contractual terms. |
At or for the Three Months ended | At or for the Year ended | At or for the Three Months ended | |||||||
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||
Balance at beginning of period | $ | 7,480 | 14,269 | 14,269 | |||||
Acquisitions | — | 187 | 187 | ||||||
Additions | 1,437 | 4,924 | 378 | ||||||
Capital improvements | — | 21 | — | ||||||
Write-downs | (56 | ) | (2,727 | ) | (13 | ) | |||
Sales | (736 | ) | (9,194 | ) | (689 | ) | |||
Balance at end of period | $ | 8,125 | 7,480 | 14,132 |
March 31, 2019 | December 31, 2018 | March 31, 2018 | |||||||||||||||||||||||||||
(Dollars in thousands) | ALLL | Percent of ALLL in Category | Percent of Loans in Category | ALLL | Percent of ALLL in Category | Percent of Loans in Category | ALLL | Percent of ALLL in Category | Percent of Loans in Category | ||||||||||||||||||||
Residential real estate | $ | 10,711 | 8 | % | 11 | % | $ | 10,631 | 8 | % | 11 | % | $ | 10,634 | 8 | % | 11 | % | |||||||||||
Commercial real estate | 72,328 | 56 | % | 56 | % | 72,448 | 55 | % | 56 | % | 68,342 | 54 | % | 56 | % | ||||||||||||||
Other commercial | 36,849 | 28 | % | 23 | % | 38,160 | 29 | % | 23 | % | 38,108 | 30 | % | 24 | % | ||||||||||||||
Home equity | 5,880 | 5 | % | 7 | % | 5,811 | 5 | % | 7 | % | 6,040 | 5 | % | 6 | % | ||||||||||||||
Other consumer | 4,018 | 3 | % | 3 | % | 4,189 | 3 | % | 3 | % | 4,484 | 3 | % | 3 | % | ||||||||||||||
Total | $ | 129,786 | 100 | % | 100 | % | $ | 131,239 | 100 | % | 100 | % | $ | 127,608 | 100 | % | 100 | % |
At or for the Three Months ended | At or for the Year ended | At or for the Three Months ended | |||||||
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||
Balance at beginning of period | $ | 131,239 | 129,568 | 129,568 | |||||
Provision for loan losses | 57 | 9,953 | 795 | ||||||
Charge-offs | |||||||||
Residential real estate | (292 | ) | (728 | ) | (3 | ) | |||
Commercial loans | (1,123 | ) | (8,514 | ) | (2,821 | ) | |||
Consumer and other loans | (1,926 | ) | (8,565 | ) | (2,183 | ) | |||
Total charge-offs | (3,341 | ) | (17,807 | ) | (5,007 | ) | |||
Recoveries | |||||||||
Residential real estate | 94 | 87 | 16 | ||||||
Commercial loans | 755 | 5,045 | 1,211 | ||||||
Consumer and other loans | 982 | 4,393 | 1,025 | ||||||
Total recoveries | 1,831 | 9,525 | 2,252 | ||||||
Net charge-offs | (1,510 | ) | (8,282 | ) | (2,755 | ) | |||
Balance at end of period | $ | 129,786 | 131,239 | 127,608 | |||||
ALLL as a percentage of total loans | 1.56 | % | 1.58 | % | 1.66 | % | |||
Net charge-offs as a percentage of total loans | 0.02 | % | 0.10 | % | 0.04 | % |
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||
Specific valuation allowance | $ | 702 | 3,223 | 4,468 | |||||
General valuation allowance | 129,084 | 128,016 | 123,140 | ||||||
Total ALLL | $ | 129,786 | 131,239 | 127,608 |
Loans Receivable, by Loan Type | % Change from | ||||||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Dec 31, 2018 | Mar 31, 2018 | ||||||||||||
Custom and owner occupied construction | $ | 126,820 | $ | 126,595 | $ | 140,440 | — | % | (10 | )% | |||||||
Pre-sold and spec construction | 135,137 | 121,938 | 100,376 | 11 | % | 35 | % | ||||||||||
Total residential construction | 261,957 | 248,533 | 240,816 | 5 | % | 9 | % | ||||||||||
Land development | 126,417 | 137,814 | 76,528 | (8 | )% | 65 | % | ||||||||||
Consumer land or lots | 125,818 | 127,775 | 119,469 | (2 | )% | 5 | % | ||||||||||
Unimproved land | 75,113 | 83,579 | 68,862 | (10 | )% | 9 | % | ||||||||||
Developed lots for operative builders | 16,171 | 17,061 | 13,093 | (5 | )% | 24 | % | ||||||||||
Commercial lots | 35,511 | 34,096 | 43,232 | 4 | % | (18 | )% | ||||||||||
Other construction | 454,965 | 520,005 | 420,632 | (13 | )% | 8 | % | ||||||||||
Total land, lot, and other construction | 833,995 | 920,330 | 741,816 | (9 | )% | 12 | % | ||||||||||
Owner occupied | 1,367,530 | 1,343,563 | 1,292,206 | 2 | % | 6 | % | ||||||||||
Non-owner occupied | 1,662,390 | 1,605,960 | 1,449,166 | 4 | % | 15 | % | ||||||||||
Total commercial real estate | 3,029,920 | 2,949,523 | 2,741,372 | 3 | % | 11 | % | ||||||||||
Commercial and industrial | 922,124 | 907,340 | 865,574 | 2 | % | 7 | % | ||||||||||
Agriculture | 641,146 | 646,822 | 620,342 | (1 | )% | 3 | % | ||||||||||
1st lien | 1,102,920 | 1,108,227 | 1,014,361 | — | % | 9 | % | ||||||||||
Junior lien | 54,964 | 56,689 | 66,288 | (3 | )% | (17 | )% | ||||||||||
Total 1-4 family | 1,157,884 | 1,164,916 | 1,080,649 | (1 | )% | 7 | % | ||||||||||
Multifamily residential | 268,156 | 247,457 | 219,310 | 8 | % | 22 | % | ||||||||||
Home equity lines of credit | 557,895 | 539,938 | 481,204 | 3 | % | 16 | % | ||||||||||
Other consumer | 163,568 | 165,865 | 162,171 | (1 | )% | 1 | % | ||||||||||
Total consumer | 721,463 | 705,803 | 643,375 | 2 | % | 12 | % | ||||||||||
States and political subdivisions | 398,848 | 404,671 | 421,252 | (1 | )% | (5 | )% | ||||||||||
Other | 119,966 | 125,310 | 132,582 | (4 | )% | (10 | )% | ||||||||||
Total loans receivable, including loans held for sale | 8,355,459 | 8,320,705 | 7,707,088 | — | % | 8 | % | ||||||||||
Less loans held for sale 1 | (29,389 | ) | (33,156 | ) | (37,058 | ) | (11 | )% | (21 | )% | |||||||
Total loans receivable | $ | 8,326,070 | $ | 8,287,549 | $ | 7,670,030 | — | % | 9 | % |
Non-performing Assets, by Loan Type | Non- Accrual Loans | Accruing Loans 90 Days or More Past Due | OREO | |||||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Mar 31, 2019 | Mar 31, 2019 | Mar 31, 2019 | ||||||||||||
Custom and owner occupied construction | $ | — | — | 48 | — | — | — | |||||||||||
Pre-sold and spec construction | 456 | 463 | 492 | 456 | — | — | ||||||||||||
Total residential construction | 456 | 463 | 540 | 456 | — | — | ||||||||||||
Land development | 2,272 | 2,166 | 7,802 | 713 | — | 1,559 | ||||||||||||
Consumer land or lots | 1,126 | 1,428 | 1,622 | 635 | — | 491 | ||||||||||||
Unimproved land | 9,222 | 9,338 | 10,294 | 7,648 | 42 | 1,532 | ||||||||||||
Developed lots for operative builders | 67 | 68 | 83 | 42 | — | 25 | ||||||||||||
Commercial lots | 663 | 1,046 | 1,312 | — | — | 663 | ||||||||||||
Other construction | 111 | 120 | 319 | — | — | 111 | ||||||||||||
Total land, lot and other construction | 13,461 | 14,166 | 21,432 | 9,038 | 42 | 4,381 | ||||||||||||
Owner occupied | 7,229 | 5,940 | 12,594 | 5,953 | 42 | 1,234 | ||||||||||||
Non-owner occupied | 7,368 | 10,567 | 5,346 | 7,368 | — | — | ||||||||||||
Total commercial real estate | 14,597 | 16,507 | 17,940 | 13,321 | 42 | 1,234 | ||||||||||||
Commercial and industrial | 3,893 | 3,914 | 6,313 | 3,602 | 57 | 234 | ||||||||||||
Agriculture | 4,488 | 7,040 | 10,476 | 3,397 | 941 | 150 | ||||||||||||
1st lien | 10,279 | 10,290 | 8,717 | 7,198 | 1,193 | 1,888 | ||||||||||||
Junior lien | 582 | 565 | 4,271 | 512 | 70 | — | ||||||||||||
Total 1-4 family | 10,861 | 10,855 | 12,988 | 7,710 | 1,263 | 1,888 | ||||||||||||
Multifamily residential | — | — | 652 | — | — | — | ||||||||||||
Home equity lines of credit | 2,288 | 2,770 | 3,312 | 2,100 | — | 188 | ||||||||||||
Other consumer | 453 | 456 | 330 | 330 | 73 | 50 | ||||||||||||
Total consumer | 2,741 | 3,226 | 3,642 | 2,430 | 73 | 238 | ||||||||||||
Other | 348 | 579 | — | 315 | 33 | — | ||||||||||||
Total | $ | 50,845 | 56,750 | 73,983 | 40,269 | 2,451 | 8,125 |
Accruing 30-89 Days Delinquent Loans, by Loan Type | % Change from | ||||||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Dec 31, 2018 | Mar 31, 2018 | ||||||||||||
Custom and owner occupied construction | $ | 282 | $ | 1,661 | $ | 611 | (83 | )% | (54 | )% | |||||||
Pre-sold and spec construction | 553 | 887 | 267 | (38 | )% | 107 | % | ||||||||||
Total residential construction | 835 | 2,548 | 878 | (67 | )% | (5 | )% | ||||||||||
Land development | — | 228 | 585 | (100 | )% | (100 | )% | ||||||||||
Consumer land or lots | 510 | 200 | 485 | 155 | % | 5 | % | ||||||||||
Unimproved land | 685 | 579 | 889 | 18 | % | (23 | )% | ||||||||||
Developed lots for operative builders | 4 | 122 | 464 | (97 | )% | (99 | )% | ||||||||||
Commercial lots | 331 | 203 | 194 | 63 | % | 71 | % | ||||||||||
Other construction | 1,234 | 4,170 | 76 | (70 | )% | 1,524 | % | ||||||||||
Total land, lot and other construction | 2,764 | 5,502 | 2,693 | (50 | )% | 3 | % | ||||||||||
Owner occupied | 4,463 | 2,981 | 13,904 | 50 | % | (68 | )% | ||||||||||
Non-owner occupied | 6,604 | 1,245 | 3,842 | 430 | % | 72 | % | ||||||||||
Total commercial real estate | 11,067 | 4,226 | 17,746 | 162 | % | (38 | )% | ||||||||||
Commercial and industrial | 4,070 | 3,374 | 5,746 | 21 | % | (29 | )% | ||||||||||
Agriculture | 5,709 | 6,455 | 3,845 | (12 | )% | 48 | % | ||||||||||
1st lien | 7,179 | 5,384 | 9,597 | 33 | % | (25 | )% | ||||||||||
Junior lien | 583 | 118 | 240 | 394 | % | 143 | % | ||||||||||
Total 1-4 family | 7,762 | 5,502 | 9,837 | 41 | % | (21 | )% | ||||||||||
Home equity lines of credit | 2,925 | 3,562 | 2,316 | (18 | )% | 26 | % | ||||||||||
Other consumer | 1,357 | 1,650 | 1,849 | (18 | )% | (27 | )% | ||||||||||
Total consumer | 4,282 | 5,212 | 4,165 | (18 | )% | 3 | % | ||||||||||
States and political subdivisions | — | 229 | — | (100 | )% | n/m | |||||||||||
Other | 405 | 519 | 53 | (22 | )% | 664 | % | ||||||||||
Total | $ | 36,894 | $ | 33,567 | $ | 44,963 | 10 | % | (18 | )% |
Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type | Charge-Offs | Recoveries | |||||||||||||
(Dollars in thousands) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Mar 31, 2019 | Mar 31, 2019 | ||||||||||
Pre-sold and spec construction | $ | (4 | ) | (352 | ) | (339 | ) | — | 4 | ||||||
Land development | 23 | (116 | ) | (5 | ) | 42 | 19 | ||||||||
Consumer land or lots | (20 | ) | (146 | ) | (3 | ) | 15 | 35 | |||||||
Unimproved land | (9 | ) | (445 | ) | (73 | ) | — | 9 | |||||||
Developed lots for operative builders | — | 33 | — | — | — | ||||||||||
Commercial lots | (2 | ) | 1 | (2 | ) | — | 2 | ||||||||
Other construction | — | (19 | ) | — | 9 | 9 | |||||||||
Total land, lot and other construction | (8 | ) | (692 | ) | (83 | ) | 66 | 74 | |||||||
Owner occupied | 75 | 1,320 | 962 | 118 | 43 | ||||||||||
Non-owner occupied | 30 | 853 | (47 | ) | 130 | 100 | |||||||||
Total commercial real estate | 105 | 2,173 | 915 | 248 | 143 | ||||||||||
Commercial and industrial | (4 | ) | 2,449 | 1,430 | 244 | 248 | |||||||||
Agriculture | 14 | 16 | (2 | ) | 17 | 3 | |||||||||
1st lien | 198 | 577 | (65 | ) | 298 | 100 | |||||||||
Junior lien | (52 | ) | (371 | ) | (29 | ) | — | 52 | |||||||
Total 1-4 family | 146 | 206 | (94 | ) | 298 | 152 | |||||||||
Multifamily residential | — | (649 | ) | (6 | ) | — | — | ||||||||
Home equity lines of credit | (5 | ) | (97 | ) | (32 | ) | 7 | 12 | |||||||
Other consumer | 223 | 261 | 73 | 305 | 82 | ||||||||||
Total consumer | 218 | 164 | 41 | 312 | 94 | ||||||||||
Other | 1,043 | 4,967 | 893 | 2,156 | 1,113 | ||||||||||
Total | $ | 1,510 | 8,282 | 2,755 | 3,341 | 1,831 |
March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Non-interest bearing deposits | $ | 3,051,119 | 32 | % | $ | 3,001,178 | 32 | % | $ | 2,811,469 | 30 | % | ||||||||
NOW and DDA accounts | 2,383,806 | 25 | % | 2,391,307 | 25 | % | 2,400,693 | 25 | % | |||||||||||
Savings accounts | 1,373,544 | 14 | % | 1,346,790 | 14 | % | 1,328,047 | 14 | % | |||||||||||
Money market deposit accounts | 1,689,962 | 18 | % | 1,684,284 | 18 | % | 1,778,068 | 19 | % | |||||||||||
Certificate accounts | 896,731 | 9 | % | 901,484 | 9 | % | 955,105 | 10 | % | |||||||||||
Wholesale deposits | 192,953 | 2 | % | 168,724 | 2 | % | 145,463 | 2 | % | |||||||||||
Total interest bearing deposits | 6,536,996 | 68 | % | 6,492,589 | 68 | % | 6,607,376 | 70 | % | |||||||||||
Total deposits | $ | 9,588,115 | 100 | % | $ | 9,493,767 | 100 | % | $ | 9,418,845 | 100 | % |
At or for the Three Months ended | At or for the Year ended | |||||
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | ||||
Repurchase agreements | ||||||
Amount outstanding at end of period | $ | 489,620 | 396,151 | |||
Weighted interest rate on outstanding amount | 0.80 | % | 0.87 | % | ||
Maximum outstanding at any month-end | $ | 489,620 | 408,754 | |||
Average balance | $ | 407,556 | 383,791 | |||
Weighted-average interest rate | 0.80 | % | 0.59 | % |
1. | assessing on an ongoing basis, the current and expected future needs for funds, and ensuring that sufficient funds or access to funds exist to meet those needs at the appropriate time; |
2. | providing for an adequate cushion of liquidity to meet unanticipated cash flow needs that may arise from potential adverse circumstances ranging from high probability/low severity events to low probability/high severity; and |
3. | balancing the benefits between providing for adequate liquidity to mitigate potential adverse events and the cost of that liquidity. |
(Dollars in thousands) | March 31, 2019 | December 31, 2018 | ||||
FHLB advances | ||||||
Borrowing capacity | $ | 2,221,777 | 2,103,860 | |||
Amount utilized | (158,853 | ) | (444,749 | ) | ||
Amount available | $ | 2,062,924 | 1,659,111 | |||
FRB discount window | ||||||
Borrowing capacity | $ | 947,815 | 875,936 | |||
Amount utilized | — | — | ||||
Amount available | $ | 947,815 | 875,936 | |||
Unsecured lines of credit available | $ | 230,000 | 230,000 | |||
Unencumbered debt securities | ||||||
U.S. government and federal agency | $ | 21,521 | 23,649 | |||
U.S. government sponsored enterprises | 81,531 | 108,952 | ||||
State and local governments | 530,997 | 618,613 | ||||
Corporate bonds | 218,548 | 290,817 | ||||
Residential mortgage-backed securities | 196,543 | 220,653 | ||||
Commercial mortgage-backed securities | 308,632 | 273,439 | ||||
Total unencumbered debt securities | $ | 1,357,772 | 1,536,123 |
Total Capital (To Risk-Weighted Assets) | Tier 1 Capital (To Risk-Weighted Assets) | Common Equity Tier 1 (To Risk-Weighted Assets) | Leverage Ratio/ Tier 1 Capital (To Average Assets) | ||||||||
Glacier Bank actual regulatory ratios | 14.64 | % | 13.39 | % | 13.39 | % | 11.08 | % | |||
Minimum capital requirements | 8.00 | % | 6.00 | % | 4.50 | % | 4.00 | % | |||
Minimum capital requirements plus capital conservation buffer | 10.50 | % | 8.50 | % | 7.00 | % | N/A | ||||
Well capitalized requirements | 10.00 | % | 8.00 | % | 6.50 | % | 5.00 | % |
(Dollars in thousands) | New Markets Tax Credits | Low-Income Housing Tax Credits | Debt Securities Tax Credits | Total | ||||||||
2019 | $ | 4,153 | 6,480 | 850 | 11,483 | |||||||
2020 | 4,475 | 6,476 | 813 | 11,764 | ||||||||
2021 | 4,712 | 5,659 | 759 | 11,130 | ||||||||
2022 | 3,944 | 5,630 | 695 | 10,269 | ||||||||
2023 | 3,348 | 5,630 | 663 | 9,641 | ||||||||
Thereafter | 1,416 | 22,145 | 1,565 | 25,126 | ||||||||
$ | 22,048 | 52,020 | 5,345 | 79,413 |
Three Months ended | Three Months ended | ||||||||||||||||||||
March 31, 2019 | March 31, 2018 | ||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest and Dividends | Average Yield/ Rate | Average Balance | Interest and Dividends | Average Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Residential real estate loans | $ | 917,324 | $ | 10,779 | 4.70 | % | $ | 783,817 | $ | 8,785 | 4.48 | % | |||||||||
Commercial loans 1 | 6,524,190 | 84,613 | 5.26 | % | 5,551,619 | 66,474 | 4.86 | % | |||||||||||||
Consumer and other loans | 839,011 | 10,447 | 5.05 | % | 719,153 | 8,624 | 4.86 | % | |||||||||||||
Total loans 2 | 8,280,525 | 105,839 | 5.18 | % | 7,054,589 | 83,883 | 4.82 | % | |||||||||||||
Tax-exempt investment securities 3 | 960,569 | 9,950 | 4.14 | % | 1,093,736 | 12,795 | 4.68 | % | |||||||||||||
Taxable investment securities 4 | 1,845,677 | 13,729 | 2.98 | % | 1,654,318 | 10,273 | 2.48 | % | |||||||||||||
Total earning assets | 11,086,771 | 129,518 | 4.74 | % | 9,802,643 | 106,951 | 4.42 | % | |||||||||||||
Goodwill and intangibles | 337,963 | 219,463 | |||||||||||||||||||
Non-earning assets | 520,353 | 390,857 | |||||||||||||||||||
Total assets | $ | 11,945,087 | $ | 10,412,963 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 2,943,770 | $ | — | — | % | $ | 2,472,151 | $ | — | — | % | |||||||||
NOW and DDA accounts | 2,320,928 | 961 | 0.17 | % | 2,011,464 | 818 | 0.16 | % | |||||||||||||
Savings accounts | 1,359,807 | 234 | 0.07 | % | 1,184,807 | 193 | 0.07 | % | |||||||||||||
Money market deposit accounts | 1,690,305 | 1,010 | 0.24 | % | 1,631,863 | 719 | 0.18 | % | |||||||||||||
Certificate accounts | 905,005 | 2,014 | 0.90 | % | 876,425 | 1,319 | 0.61 | % | |||||||||||||
Total core deposits | 9,219,815 | 4,219 | 0.19 | % | 8,176,710 | 3,049 | 0.15 | % | |||||||||||||
Wholesale deposits 5 | 169,361 | 1,122 | 2.69 | % | 149,577 | 867 | 2.35 | % | |||||||||||||
FHLB advances | 352,773 | 3,055 | 3.46 | % | 224,847 | 2,089 | 3.72 | % | |||||||||||||
Repurchase agreements and other borrowed funds | 556,325 | 2,508 | 1.83 | % | 521,641 | 1,769 | 1.38 | % | |||||||||||||
Total interest bearing liabilities | 10,298,274 | 10,904 | 0.43 | % | 9,072,775 | 7,774 | 0.35 | % | |||||||||||||
Other liabilities | 116,143 | 25,973 | |||||||||||||||||||
Total liabilities | 10,414,417 | 9,098,748 | |||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||
Common stock | 846 | 808 | |||||||||||||||||||
Paid-in capital | 1,051,261 | 906,030 | |||||||||||||||||||
Retained earnings | 471,626 | 420,552 | |||||||||||||||||||
Accumulated other comprehensive income (loss) | 6,937 | (13,175 | ) | ||||||||||||||||||
Total stockholders’ equity | 1,530,670 | 1,314,215 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,945,087 | $ | 10,412,963 | |||||||||||||||||
Net interest income (tax-equivalent) | $ | 118,614 | $ | 99,177 | |||||||||||||||||
Net interest spread (tax-equivalent) | 4.31 | % | 4.07 | % | |||||||||||||||||
Net interest margin (tax-equivalent) | 4.34 | % | 4.10 | % |
1 | Includes tax effect of $1.1 million and $959 thousand on tax-exempt municipal loan and lease income for the three months ended March 31, 2019 and 2018, respectively. |
2 | Total loans are gross of the allowance for loan and lease losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period. |
3 | Includes tax effect of $2.0 million and $2.6 million on tax-exempt debt securities income for the three months ended March 31, 2019 and 2018, respectively. |
4 | Includes tax effect of $293 thousand and $304 thousand on federal income tax credits for the three months ended March 31, 2019 and 2018, respectively. |
5 | Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts. |
Year ended March 31, | |||||||||
2019 vs. 2018 | |||||||||
Increase (Decrease) Due to: | |||||||||
(Dollars in thousands) | Volume | Rate | Net | ||||||
Interest income | |||||||||
Residential real estate loans | $ | 1,497 | 497 | 1,994 | |||||
Commercial loans (tax-equivalent) | 11,645 | 6,494 | 18,139 | ||||||
Consumer and other loans | 1,438 | 385 | 1,823 | ||||||
Investment securities (tax-equivalent) | 488 | 123 | 611 | ||||||
Total interest income | 15,068 | 7,499 | 22,567 | ||||||
Interest expense | |||||||||
NOW and DDA accounts | 126 | 17 | 143 | ||||||
Savings accounts | 29 | 13 | 42 | ||||||
Money market deposit accounts | 26 | 264 | 290 | ||||||
Certificate accounts | 43 | 652 | 695 | ||||||
Wholesale deposits | 115 | 140 | 255 | ||||||
FHLB advances | 1,188 | (222 | ) | 966 | |||||
Repurchase agreements and other borrowed funds | 117 | 622 | 739 | ||||||
Total interest expense | 1,644 | 1,486 | 3,130 | ||||||
Net interest income (tax-equivalent) | $ | 13,424 | 6,013 | 19,437 |
Item 3. | Quantitative and Qualitative Disclosure about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(a) | Not Applicable |
(b) | Not Applicable |
(c) | Not Applicable |
Item 3. | Defaults upon Senior Securities |
(a) | Not Applicable |
(b) | Not Applicable |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
(a) | Not Applicable |
(b) | Not Applicable |
Exhibit 31.1 - |
Exhibit 31.2 - |
Exhibit 32 - |
Exhibit 101 - | The following financial information from Glacier Bancorp, Inc's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 is formatted in XBRL: (i) the Unaudited Condensed Consolidated Statements of Financial Condition, (ii) the Unaudited Condensed Consolidated Statements of Operations, (iii) the Unaudited Condensed Consolidated Statements of Stockholders’ Equity and Comprehensive Income, (iv) the Unaudited Condensed Consolidated Statements of Cash Flows, and (v) the Notes to Unaudited Condensed Consolidated Financial Statements. |
GLACIER BANCORP, INC. | ||
May 2, 2019 | /s/ Randall M. Chesler | |
Randall M. Chesler | ||
President and CEO | ||
May 2, 2019 | /s/ Ron J. Copher | |
Ron J. Copher | ||
Executive Vice President and CFO |
1. | I have reviewed this Quarterly Report on Form 10-Q of Glacier Bancorp, Inc. |
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 control 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. |
May 2, 2019 | /s/ Randall M. Chesler | |
Randall M. Chesler | ||
President/CEO |
1. | I have reviewed this Quarterly Report on Form 10-Q of Glacier Bancorp, Inc. |
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 control 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. |
May 2, 2019 | /s/ Ron J. Copher | |
Ron J. Copher | ||
Executive Vice President/CFO |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
May 2, 2019 | /s/ Randall M. Chesler | |
Randall M. Chesler | ||
President/CEO | ||
May 2, 2019 | /s/ Ron J. Copher | |
Ron J. Copher | ||
Executive Vice President/CFO |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 16, 2019 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GLACIER BANCORP INC | |
Trading Symbol | GBCI | |
Entity Central Index Key | 0000868671 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 84,588,574 |
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 1,000,000 | 1,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 117,187,500 | 117,187,500 |
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 49,132 | $ 38,559 |
Other Comprehensive Income (Loss), Net of Tax | ||
Unrealized gains (losses) on available-for-sale securities | 46,452 | (25,711) |
Reclassification adjustment for (gains) losses included in net income | (221) | 282 |
Net unrealized gains (losses) on available-for-sale securities | 46,231 | (25,429) |
Tax effect | (11,715) | 6,444 |
Net of tax amount | 34,516 | (18,985) |
Unrealized (losses) gains on derivatives used for cash flow hedges | (1,834) | 4,379 |
Reclassification adjustment for losses included in net income | 223 | 900 |
Net unrealized (losses) gains on derivatives used for cash flow hedges | (1,611) | 5,279 |
Tax effect | 409 | (1,338) |
Net of tax amount | (1,202) | 3,941 |
Total other comprehensive income (loss), net of tax | 33,314 | (15,044) |
Total Comprehensive Income | $ 82,446 | $ 23,515 |
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Cash dividends declared per share | $ 0.26 | $ 0.23 |
Retained Earnings Substantially Restricted | ||
Cash dividends declared per share | $ 0.26 | $ 0.23 |
Nature of Operations and Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies General Glacier Bancorp, Inc. (“Company”) is a Montana corporation headquartered in Kalispell, Montana. The Company provides a full range of banking services to individuals and businesses in Montana, Idaho, Utah, Washington, Wyoming, Colorado and Arizona through its wholly-owned bank subsidiary, Glacier Bank (“Bank”). The Company offers a wide range of banking products and services, including: 1) retail banking; 2) business banking; 3) real estate, commercial, agriculture and consumer loans; and 4) mortgage origination services. The Company serves individuals, small to medium-sized businesses, community organizations and public entities. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of March 31, 2019, the results of operations and comprehensive income for the three month periods ended March 31, 2019 and 2018, and changes in stockholders’ equity and cash flows for the three month periods ended March 31, 2019 and 2018. The condensed consolidated statement of financial condition of the Company as of December 31, 2018 has been derived from the audited consolidated statements of the Company as of that date. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results anticipated for the year ending December 31, 2019. The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the valuation of debt securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. Principles of Consolidation The consolidated financial statements of the Company include the parent holding company and the Bank. The Bank consists of fourteen bank divisions, a treasury division, an information technology division and a centralized mortgage division. The treasury division includes the Bank’s investment portfolio and wholesale borrowings, the information technology division includes the Bank’s internal data processing, and the centralized mortgage division includes mortgage loan servicing and secondary market sales. The Bank divisions operate under separate names, management teams and advisory directors. The Company considers the Bank to be its sole operating segment as the Bank 1) engages in similar bank business activity from which it earns revenues and incurs expenses; 2) the operating results of the Bank are regularly reviewed by the Chief Executive Officer (“CEO”) (i.e., the chief operating decision maker) who makes decisions about resources to be allocated to the Bank; and 3) financial information is available for the Bank. All significant inter-company transactions have been eliminated in consolidation. The Bank has subsidiary interests in variable interest entities (“VIE”) for which the Bank has both the power to direct the VIE’s significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could potentially be significant to the VIE. These subsidiary interests are included in the Company’s consolidated financial statements. The Bank also has subsidiary interests in VIEs for which the Bank does not have a controlling financial interest and is not the primary beneficiary. These subsidiary interests are not included in the Company’s consolidated financial statements. The parent holding company owns non-bank subsidiaries that have issued trust preferred securities as Tier 1 capital instruments. The trust subsidiaries are not included in the Company’s consolidated financial statements. The Company's investments in the trust subsidiaries are included in other assets on the Company's statements of financial condition. On April 30, 2019, the Company acquired the outstanding common stock of FNB Bancorp and its wholly-owned subsidiary, The First National Bank of Layton, a community bank based in Layton, Utah (collectively, “FNB”). As of March 31, 2019, FNB had total assets of $328,893,000, gross loans of $248,725,000 and total deposits of $279,674,000. For additional information relating to this subsequent event, see Note 13. Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR:
The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example:
For additional information relating to loans, see Note 3. Allowance for Loan and Lease Losses Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. Commercial Real Estate. Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and/or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. Commercial. Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity. Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 to 15 years. Other Consumer. The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following:
The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan and overdraft balances determined by management to be uncollectible are charged-off as a reduction of the ALLL and recoveries of amounts previously charged-off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged-off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as other real estate owned (“OREO”) until such time as it is sold. At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. Leases The Company leases certain land, premises and equipment from third parties. A lessee lease is classified as an operating lease unless it meets certain criteria (e.g., lease contains option to purchase that Company is reasonably certain to exercise), in which case it is classified as a finance lease. Effective January 1, 2019, operating leases are included in net premises and equipment and other liabilities on the Company’s statements of financial condition and lease expense for lease payments is recognized on a straight-line basis over the lease term. Finance leases are included in net premises and equipment and other borrowed funds on the Company’s statements of financial condition. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. The Company accounts for lease and nonlease components (e.g., common-area maintenance) together as a single combined lease component for all asset classes. Short-term leases of 12 months or less are excluded from accounting guidance; as a result, the lease payments are recognized on a straight-line basis over the lease term and the leases are not reflected on the Company’s statements of financial condition. Renewal and termination options are considered when determining short-term leases. Leases are accounted for on an individual lease level. Lease improvements incurred at the inception of the lease are recorded as an asset and depreciated over the initial term of the lease and lease improvements incurred subsequently are depreciated over the remaining term of the lease. The Company also leases certain premises and equipment to third parties. A lessor lease is classified as an operating lease unless it meets certain criteria that would classify it as either a sales-type lease or a direct financing lease. For additional information relating to leases, see Note 4. Revenue Recognition The Company recognizes revenue when services or products are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled. The Company’s principal source of revenue is interest income from debt securities and loans. Revenue from contracts with customers within the scope of Accounting Standards Codification™ (“ASC”) Topic 606 was $18,446,000 and $17,291,000 for the three months ended March 31, 2019 and 2018, respectively, and largely consisted of revenue from service charges and other fees from deposits (e.g., overdraft fees, ATM fees, debit card fees). Due to the short-term nature of the Company’s contracts with customers, an insignificant amount of receivables related to such revenue was recorded at March 31, 2019 and December 31, 2018 and there were no impairment losses recognized. Policies specific to revenue from contracts with customers include the following: Service Charges. Revenue from service charges consists of service charges and fees on deposit accounts under depository agreements with customers to provide access to deposited funds and, when applicable, pay interest on deposits. Service charges on deposit accounts may be transactional or non-transactional in nature. Transactional service charges occur in the form of a service or penalty and are charged upon the occurrence of an event (e.g., overdraft fees, ATM fees, wire transfer fees). Transactional service charges are recognized as services are delivered to and consumed by the customer, or as penalty fees are charged. Non-transactional service charges are charges that are based on a broader service, such as account maintenance fees and dormancy fees, and are recognized on a monthly basis. Debit Card Fees. Revenue from debit card fees includes interchange fee income from debit cards processed through card association networks. Interchange fees represent a portion of a transaction amount that the Company and other involved parties retain to compensate themselves for giving the cardholder immediate access to funds. Interchange rates are generally set by the card association networks and are based on purchase volumes and other factors. The Company records interchange fees as services are provided. Accounting Guidance Adopted in 2019 The ASC is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. The following paragraphs provide descriptions of recently adopted Accounting Standards Updates (“ASU”) that may have had a material effect on the Company’s financial position or results of operations. ASU 2017-08 - Receivables - Nonrefundable Fees and Other Costs. In March 2017, FASB amended ASC Subtopic 310-20 to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments required the premium to be amortized to the earliest call date instead of the maturity date. The amendments did not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments were effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018 and any adjustments were to be reflected as of the beginning of the year that includes the interim period. Entities were to apply the amendments on a modified retrospective basis; therefore, a cumulative-effect reduction to retained earnings of $24,102,000 was recognized as of the January 1, 2019 effective date. The Company’s debt securities that were effected by the amendments were primarily in the state and local governments category. The Company’s accounting policies and procedures were updated to reflect the amendments. ASU 2016-02 - Leases. In February 2016, FASB amended ASC Topic 842 to address several aspects of lease accounting with the significant change being the recognition of lease assets and lease liabilities for leases previously classified as operating leases. The amendments were effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018. The Company has lease agreements for which the amendments required the recognition of a lease liability to make lease payments and an ROU asset which represents its right to use the underlying asset for the lease term. An entity is permitted to elect not to restate its comparative periods in the period of adoption when transitioning to ASC Topic 842 and the Company made this election. In addition, the Company made the following elections related to implementation: 1) to not use hindsight in determining lease terms and in assessing impairment of ROU assets; and 2) to use the practical expedient package, which required no reassessment of whether existing contracts are or contain leases as well as no reassessment of lease classification for existing leases. At the date of adoption, the Company recognized an ROU asset and related lease liability on the Company’s statement of financial condition of $36,178,000 and $38,220,000, respectively. The Company developed new processes to comply with the accounting and disclosure requirements of such amendments and policies and procedures were updated accordingly. Accounting Guidance Pending Adoption at March 31, 2019 The following paragraphs provide descriptions of newly issued but not yet effective ASUs that could have a material effect on the Company’s financial position or results of operations. ASU 2017-04 - Intangibles - Goodwill and Other. In January 2017, FASB amended ASC Topic 350 to simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more-likely-than-not reduce the fair value of the reporting unit below its carrying value. During the third quarter of 2018, the Company performed its impairment assessment and determined the fair value of the aggregated reporting units exceeded the carrying value, such that the Company’s goodwill was not considered impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment, it is unlikely that an impairment amount would need to be calculated and, therefore, the Company does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. For additional information regarding goodwill impairment testing, see Note 5. ASU 2016-13 - Financial Instruments - Credit Losses. In June 2016, FASB amended ASC Topic 326 to replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The ALLL is a material estimate of the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALLL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALLL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company will also develop new procedures for determining an allowance for credit losses relating to held-to-maturity debt securities. In addition, the current accounting policy and procedures for other-than-temporary impairment on available-for-sale debt securities will be replaced with an allowance approach. The Company has engaged a third-party vendor solution and is currently in the implementation phase and evaluating the appropriate models, loan pools and assumptions to be utilized. The project team anticipates running parallel models during 2019 to refine its processes and procedures. For additional information on the ALLL, see Note 3. |
Debt Securities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Securities | Debt Securities The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s debt securities:
The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at March 31, 2019. Actual maturities may differ from expected or contractual maturities since issuers have the right to prepay obligations with or without prepayment penalties.
______________________________ 1 Mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Proceeds from sales and calls of debt securities and the associated gains and losses that have been included in earnings are listed below:
______________________________ 1 The gain or loss on the sale or call of each debt security is determined by the specific identification method. Debt securities with an unrealized loss position are summarized as follows:
Based on an analysis of its debt securities with unrealized losses as of March 31, 2019 and December 31, 2018, the Company determined that none of such securities had other-than-temporary impairment and the unrealized losses were primarily the result of interest rate changes and market spreads subsequent to acquisition. The fair value of the debt securities is expected to recover as payments are received and the securities approach maturity. At March 31, 2019, management determined that it did not intend to sell debt securities with unrealized losses, and there was no expected requirement to sell any of its debt securities with unrealized losses before recovery of their amortized cost. |
Loans Receivable, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable, Net | Loans Receivable, Net The Company’s loan portfolio is comprised of three segments: residential real estate, commercial, and consumer and other loans. The loan segments are further disaggregated into the following classes: residential real estate, commercial real estate, other commercial, home equity and other consumer loans. The following table presents loans receivable for each portfolio class of loans:
Allowance for Loan and Lease Losses The ALLL is a valuation allowance for probable incurred credit losses. The following tables summarize the activity in the ALLL by loan class:
The following tables disclose the recorded investment in loans and the balance in the ALLL by loan class:
Substantially all of the Company’s loans receivable are with customers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ ability to honor their obligations is dependent upon the economic performance in the Company’s market areas. Aging Analysis The following tables present an aging analysis of the recorded investment in loans by loan class:
Impaired Loans Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. The following tables disclose information related to impaired loans by loan class:
Interest income recognized on impaired loans for the three months ended March 31, 2019 and 2018 was not significant. Restructured Loans A restructured loan is considered a troubled debt restructuring if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented:
The modifications for the TDRs that occurred during the three months ended March 31, 2019 and 2018 included one or a combination of the following: an extension of the maturity date, a reduction of the interest rate or a reduction in the principal amount. In addition to the TDRs that occurred during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $1,940,000 and $431,000 for the three months ended March 31, 2019 and 2018, respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate for the three months ended March 31, 2019 and 2018. At March 31, 2019 and December 31, 2018, the Company had $1,134,000 and $350,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At March 31, 2019 and December 31, 2018, the Company had $2,076,000 and $698,000, respectively, of OREO secured by residential real estate properties. |
Leases |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases certain land, premises and equipment from third parties. Effective January 1, 2019, ROU assets for operating and finance leases are included in net premises and equipment and lease liabilities are included in other liabilities and other borrowed funds, respectively, on the Company’s statements of financial condition. The following table summarizes the Company’s leases:
Maturities of lease liabilities consist of the following:
The components of lease expense consist of the following:
Supplemental cash flow information related to leases is as follows:
The Company also leases office space to third parties through operating leases. Rent income from these leases for the three months ended March 31, 2019 was not significant. |
Goodwill |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The following schedule discloses the changes in the carrying value of goodwill:
The Company performed its annual goodwill impairment test during the third quarter of 2018 and determined the fair value of the aggregated reporting units exceeded the carrying value, such that the Company’s goodwill was not considered impaired. In recognition there were no events or circumstances that occurred during the first quarter of 2019 that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value, the Company did not perform interim testing at March 31, 2019. Changes in the economic environment, operations of the aggregated reporting units, or other factors could result in the decline in the fair value of the aggregated reporting units which could result in a goodwill impairment in the future. Accumulated impairment charges were $40,159,000 as of March 31, 2019 and December 31, 2018. |
Variable Interest Entities |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities A VIE is a partnership, limited liability company, trust or other legal entity that meets one of the following criteria: 1) the entity’s equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties; 2) the holders of the equity investment at risk, as a group, lack the characteristics of a controlling financial interest; and 3) the voting rights of some holders of the equity investment at risk are disproportionate to their obligation to absorb losses or receive returns, and substantially all of the activities are conducted on behalf of the holder of equity investment at risk with disproportionately few voting rights. A VIE must be consolidated by the Company if it is deemed to be the primary beneficiary, which is the party involved with the VIE that has both: 1) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance; and 2) the obligation to absorb the losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company’s VIEs are regularly monitored to determine if any reconsideration events have occurred that could cause the primary beneficiary status to change. A previously unconsolidated VIE is consolidated when the Company becomes the primary beneficiary. A previously consolidated VIE is deconsolidated when the Company ceases to be the primary beneficiary or the entity is no longer a VIE. Consolidated Variable Interest Entities The Company has equity investments in Certified Development Entities (“CDE”) which have received allocations of New Markets Tax Credits (“NMTC”). The NMTC program provides federal tax incentives to investors to make investments in distressed communities and promotes economic improvements through the development of successful businesses in these communities. The NMTC is available to investors over a seven-year period and is subject to recapture if certain events occur during such period. The maximum exposure to loss in the CDEs is the amount of equity invested and credit extended by the Company. However, the Company has credit protection in the form of indemnification agreements, guarantees, and collateral arrangements. The Company has evaluated the variable interests held by the Company in each CDE (NMTC) investment and determined the Company does not individually meet the characteristics of a primary beneficiary; however, the related-party group does meet the criteria as a group and substantially all of the activities of the CDEs either involve or are conducted on behalf of the Company. As a result, the Company is the primary beneficiary of the CDEs and their assets, liabilities, and results of operations are included in the Company’s consolidated financial statements. The primary activities of the CDEs are recognized in commercial loans interest income and other borrowed funds interest expense on the Company’s statements of operations and the federal income tax credit allocations from the investments are recognized in the Company’s statements of operations as a component of income tax expense. Such related cash flows are recognized in loans originated, principal collected on loans and change in other borrowed funds. The Bank is also the sole member of certain tax credit funds that make direct investments in qualified affordable housing projects (e.g., Low-Income Housing Tax Credit [“LIHTC”] partnerships). As such, the Company is the primary beneficiary of these tax credit funds and their assets, liabilities, and results of operations are included in the Company’s consolidated financial statements. The following table summarizes the carrying amounts of the consolidated VIEs’ assets and liabilities included in the Company’s statements of financial condition and are adjusted for intercompany eliminations. All assets presented can be used only to settle obligations of the consolidated VIEs and all liabilities presented consist of liabilities for which creditors and other beneficial interest holders therein have no recourse to the general credit of the Company.
Unconsolidated Variable Interest Entities The Company has equity investments in LIHTC partnerships, both directly and through tax credit funds, with carrying values of $34,272,000 and $35,112,000 as of March 31, 2019 and December 31, 2018, respectively. The LIHTCs are indirect federal subsidies to finance low-income housing and are used in connection with both newly constructed and renovated residential rental buildings. Once a project is placed in service, it is generally eligible for the tax credit for ten consecutive years. To continue generating the tax credit and to avoid tax credit recapture, a LIHTC building must satisfy specific low-income housing compliance rules for a full fifteen-year period. The maximum exposure to loss in the VIEs is the amount of equity invested and credit extended by the Company. However, the Company has credit protection in the form of indemnification agreements, guarantees, and collateral arrangements. The Company has evaluated the variable interests held by the Company in each LIHTC investment and determined that the Company does not have controlling financial interests in such investments, and is not the primary beneficiary. The Company reports the investments in the unconsolidated LIHTCs as other assets on the Company’s statements of financial condition. Total unfunded contingent commitments related to the Company’s LIHTC investments totaled $11,362,000 at March 31, 2019, and the Company expects to fulfill the majority of these commitments during 2019. There were no impairment losses on the Company’s LIHTC investments during the three months ended March 31, 2019 and 2018. The Company has elected to use the proportional amortization method, and more specifically the practical expedient method, for the amortization of all eligible LIHTC investments and amortization expense is recognized as a component of income tax expense. The following table summarizes the amortization expense and the amount of tax credits and other tax benefits recognized for qualified affordable housing project investments during the periods presented.
The Company also owns the following trust subsidiaries, each of which issued trust preferred securities as Tier 1 capital instruments: Glacier Capital Trust II, Glacier Capital Trust III, Glacier Capital Trust IV, Citizens (ID) Statutory Trust I, Bank of the San Juans Bancorporation Trust I, First Company Statutory Trust 2001, and First Company Statutory Trust 2003. The trust subsidiaries have no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the securities held by third parties. The trust subsidiaries are not included in the Company’s consolidated financial statements because the sole asset of each trust subsidiary is a receivable from the Company, even though the Company owns all of the voting equity shares of the trust subsidiaries, has fully guaranteed the obligations of the trust subsidiaries and may have the right to redeem the third party securities under certain circumstances. The Company reports the trust preferred securities issued to the trust subsidiaries as subordinated debentures on the Company’s statements of financial condition. |
Securities Sold Under Agreements to Repurchase |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase The Company’s securities sold under agreements to repurchase (“repurchase agreements”) totaled $489,620,000 and $396,151,000 at March 31, 2019 and December 31, 2018, respectively, and are secured by debt securities with carrying values of $607,780,000 and $511,294,000, respectively. Securities are pledged to customers at the time of the transaction in an amount at least equal to the outstanding balance and are held in custody accounts by third parties. The fair value of collateral is continually monitored and additional collateral is provided as deemed appropriate. The following tables summarize the carrying value of the Company’s repurchase agreements by remaining contractual maturity and category of collateral:
|
Derivatives and Hedging Activities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities Interest Rate Swap Derivatives As of March 31, 2019, the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows:
______________________________ 1 The Company pays the fixed interest rate and the counterparty pays the Company the variable interest rate. The hedging strategy converts the LIBOR-based variable interest rate on borrowings to a fixed interest rate, thereby protecting the Company from interest rate variability. The interest rate swaps with the $160,000,000 and $100,000,000 notional amounts began their payment terms in October 2014 and November 2015, respectively. The Company designated wholesale deposits and Federal Home Loan Bank (“FHLB”) advances as the cash flow hedge and these hedged items were determined to be fully effective during current and prior periods. The aggregate fair value of the interest rate swaps was recorded in other liabilities with changes recorded in OCI. The Company expects the hedges to remain highly effective during the remaining terms of the interest rate swaps. Interest expense recorded on the interest rate swaps totaled $1,976,000 for the three months ended March 31, 2019 and 2018, and is reported as a component of interest expense on deposits and FHLB advances. Unless the interest rate swaps are terminated during the next year, the Company expects $1,118,000 of the unrealized loss reported in OCI at March 31, 2019 to be reclassified to interest expense during the next twelve months. The following table presents the pre-tax gains or losses recorded in OCI and the Company’s statements of operations relating to the interest rate swap derivative financial instruments:
The following table discloses the offsetting of financial assets and interest rate swap derivative assets.
The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities.
Pursuant to the interest rate swap agreements, the Company pledged collateral to the counterparty in the form of debt securities totaling $6,402,000 at March 31, 2019. There was $0 collateral pledged from the counterparty to the Company as of March 31, 2019. There is the possibility that the Company may need to pledge additional collateral in the future if there were declines in the fair value of the interest rate swap derivative financial instruments versus the collateral pledged. Residential Real Estate Derivatives At March 31, 2019, the Company had residential real estate derivatives for commitments (“interest rate locks”) to fund certain residential real estate loans to be sold into the secondary market. At March 31, 2019 and December 31, 2018, loan commitments with interest rate lock commitments totaled $82,604,000 and $59,974,000, respectively, and the fair value of the related derivatives was included in other assets with corresponding changes recorded in gain on sale of loans. It has been the Company’s practice to enter into “best efforts” forward sales commitments for the future delivery of residential real estate loans to third party investors when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. Forward sales commitments on a “best efforts” basis are not designated in hedge relationships until the loan is funded. Due to the forward sales commitments being short-term in nature, the corresponding derivatives are not significant. The Company also enters into free-standing derivatives to mitigate the interest rate risk associated with certain residential real estate loans to be sold. These derivatives include forward commitments to sell to-be-announced securities (“TBA”) which are used to economically hedge the interest rate risk associated with certain residential real estate loans held for sale and unfunded commitments. At March 31, 2019 and December 31, 2018, TBA commitments were $52,500,000 and $40,750,000, respectively, and the fair value of the related derivatives was included in other liabilities with corresponding changes recorded in gain on sale of loans. |
Other Expenses |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Expenses | Other Expenses Other expenses consists of the following:
|
Accumulated Other Comprehensive Income (Loss) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table illustrates the activity within accumulated other comprehensive income (loss) by component, net of tax:
|
Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period presented. Diluted earnings per share is computed by including the net increase in shares as if dilutive outstanding restricted stock awards were vested and stock options were exercised, using the treasury stock method. Basic and diluted earnings per share has been computed based on the following:
There were 41,593 and 0 restricted stock awards and stock options excluded from the diluted average outstanding share calculation for the three months ended March 31, 2019 and 2018, respectively. Anti-dilution occurs when the unrecognized compensation cost per share of a restricted stock award or the exercise price of a stock option exceeds the market price of the Company’s stock. |
Fair Value of Assets and Liabilities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities
Transfers in and out of Level 1 (quoted prices in active markets), Level 2 (significant other observable inputs) and Level 3 (significant unobservable inputs) are recognized on the actual transfer date. There were no transfers between fair value hierarchy levels during the three month periods ended March 31, 2019 and 2018. Recurring Measurements The following is a description of the inputs and valuation methodologies used for assets and liabilities measured at fair value on a recurring basis, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended March 31, 2019. Debt securities, available-for-sale: fair value for available-for-sale debt securities is estimated by obtaining quoted market prices for identical assets, where available. If such prices are not available, fair value is based on independent asset pricing services and models, the inputs of which are market-based or independently sourced market parameters, including but not limited to, yield curves, interest rates, volatilities, market spreads, prepayments, defaults, recoveries, cumulative loss projections, and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. Where Level 1 or Level 2 inputs are not available, such securities are classified as Level 3 within the hierarchy. Fair value determinations of available-for-sale debt securities are the responsibility of the Company’s corporate accounting and treasury departments. The Company obtains fair value estimates from independent third party vendors on a monthly basis. The vendors’ pricing system methodologies, procedures and system controls are reviewed to ensure they are appropriately designed and operating effectively. The Company reviews the vendors’ inputs for fair value estimates and the recommended assignments of levels within the fair value hierarchy. The review includes the extent to which markets for debt securities are determined to have limited or no activity, or are judged to be active markets. The Company reviews the extent to which observable and unobservable inputs are used as well as the appropriateness of the underlying assumptions about risk that a market participant would use in active markets, with adjustments for limited or inactive markets. In considering the inputs to the fair value estimates, the Company places less reliance on quotes that are judged to not reflect orderly transactions, or are non-binding indications. In assessing credit risk, the Company reviews payment performance, collateral adequacy, third party research and analyses, credit rating histories and issuers’ financial statements. For those markets determined to be inactive or limited, the valuation techniques used are models for which management has verified that discount rates are appropriately adjusted to reflect illiquidity and credit risk. Loans held for sale, at fair value: loans held for sale measured at fair value, for which an active secondary market and readily available market prices exist, are initially valued at the transaction price and are subsequently valued by using quoted prices for similar assets, adjusted for specific attributes of that loan or other observable market data, such as outstanding commitments from third party investors. Loans held for sale measured at fair value are classified within Level 2. Included in gain on sale of loans were net losses of $1,000 and $108,000 for the three month periods ended March 31, 2019 and 2018, respectively, from the changes in fair value of loans held for sale measured at fair value. Electing to measure loans held for sale at fair value reduces certain timing differences and better matches changes in fair value of these assets with changes in the value of the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting. Interest rate swap derivative financial instruments: fair values for interest rate swap derivative financial instruments are based upon the estimated amounts to settle the contracts considering current interest rates and are calculated using discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The inputs used to determine fair value include the 3 month LIBOR forward curve to estimate variable rate cash inflows and the Fed Funds Effective Swap Rate to estimate the discount rate. The estimated variable rate cash inflows are compared to the fixed rate outflows and such difference is discounted to a present value to estimate the fair value of the interest rate swaps. The Company also obtains and compares the reasonableness of the pricing from an independent third party. The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis:
Non-recurring Measurements The following is a description of the inputs and valuation methodologies used for assets recorded at fair value on a non-recurring basis, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended March 31, 2019. Other real estate owned: OREO is initially recorded at fair value less estimated cost to sell, establishing a new cost basis. OREO is subsequently accounted for at lower of cost or fair value less estimated cost to sell. Estimated fair value of OREO is based on appraisals or evaluations (new or updated). OREO is classified within Level 3 of the fair value hierarchy. Collateral-dependent impaired loans, net of ALLL: loans included in the Company’s loan portfolio for which it is probable that the Company will not collect all principal and interest due according to contractual terms are considered impaired. Estimated fair value of collateral-dependent impaired loans is based on the fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company’s credit department reviews appraisals for OREO and collateral-dependent loans, giving consideration to the highest and best use of the collateral. The appraisal or evaluation (new or updated) is considered the starting point for determining fair value. The valuation techniques used in preparing appraisals or evaluations (new or updated) include the cost approach, income approach, sales comparison approach, or a combination of the preceding valuation techniques. The key inputs used to determine the fair value of the collateral-dependent loans and OREO include selling costs, discounted cash flow rate or capitalization rate, and adjustment to comparables. Valuations and significant inputs obtained by independent sources are reviewed by the Company for accuracy and reasonableness. The Company also considers other factors and events in the environment that may affect the fair value. The appraisals or evaluations (new or updated) are reviewed at least quarterly and more frequently based on current market conditions, including deterioration in a borrower’s financial condition and when property values may be subject to significant volatility. After review and acceptance of the collateral appraisal or evaluation (new or updated), adjustments to the impaired loan or OREO may occur. The Company generally obtains appraisals or evaluations (new or updated) annually. The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis:
Non-recurring Measurements Using Significant Unobservable Inputs (Level 3) The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
______________________________ 1 The range for selling cost inputs represents reductions to the fair value of the assets. Fair Value of Financial Instruments The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments not carried at fair value. Receivables and payables due in one year or less, equity securities without readily determinable fair values and deposits with no defined or contractual maturities are excluded.
|
Subsequent Events |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 30, 2019, the Company acquired the outstanding common stock of FNB Bancorp and its wholly-owned subsidiary, The First National Bank of Layton, a community bank based in Layton, Utah. FNB provides banking services to individuals and businesses throughout Utah with locations in Layton, Bountiful, Clearfield and Draper. The branches of FNB, along with the Bank’s branches operating in Utah, will operate as a new division of the Bank under the name “First Community Bank Utah, division of Glacier Bank.” The initial accounting for the FNB acquisition has not been completed because the fair value of financial assets, financial liabilities and goodwill has not yet been determined. On April 3, 2019, the Company announced the signing of a definitive agreement to acquire Heritage Bancorp and its wholly-owned subsidiary, Heritage Bank of Nevada, a community bank based in Reno, Nevada (collectively, “Heritage”). Heritage provides banking services to individuals and businesses throughout northern Nevada with locations in Carson City, Gardnerville, Reno and Sparks. As of March 31, 2019, Heritage had total assets of $840,769,000, gross loans of $589,458,000 and total deposits of $722,955,000. The acquisition is subject to required regulatory approvals and other customary conditions of closing and is anticipated to take place in the third quarter of 2019. Upon closing of the transaction, the branches of Heritage will operate as a new division of the Bank. |
Nature of Operations and Summary of Significant Accounting Policies (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||
General | General Glacier Bancorp, Inc. (“Company”) is a Montana corporation headquartered in Kalispell, Montana. The Company provides a full range of banking services to individuals and businesses in Montana, Idaho, Utah, Washington, Wyoming, Colorado and Arizona through its wholly-owned bank subsidiary, Glacier Bank (“Bank”). The Company offers a wide range of banking products and services, including: 1) retail banking; 2) business banking; 3) real estate, commercial, agriculture and consumer loans; and 4) mortgage origination services. The Company serves individuals, small to medium-sized businesses, community organizations and public entities. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of March 31, 2019, the results of operations and comprehensive income for the three month periods ended March 31, 2019 and 2018, and changes in stockholders’ equity and cash flows for the three month periods ended March 31, 2019 and 2018. The condensed consolidated statement of financial condition of the Company as of December 31, 2018 has been derived from the audited consolidated statements of the Company as of that date. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results anticipated for the year ending December 31, 2019. The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the valuation of debt securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. |
||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the parent holding company and the Bank. The Bank consists of fourteen bank divisions, a treasury division, an information technology division and a centralized mortgage division. The treasury division includes the Bank’s investment portfolio and wholesale borrowings, the information technology division includes the Bank’s internal data processing, and the centralized mortgage division includes mortgage loan servicing and secondary market sales. The Bank divisions operate under separate names, management teams and advisory directors. The Company considers the Bank to be its sole operating segment as the Bank 1) engages in similar bank business activity from which it earns revenues and incurs expenses; 2) the operating results of the Bank are regularly reviewed by the Chief Executive Officer (“CEO”) (i.e., the chief operating decision maker) who makes decisions about resources to be allocated to the Bank; and 3) financial information is available for the Bank. All significant inter-company transactions have been eliminated in consolidation. The Bank has subsidiary interests in variable interest entities (“VIE”) for which the Bank has both the power to direct the VIE’s significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could potentially be significant to the VIE. These subsidiary interests are included in the Company’s consolidated financial statements. The Bank also has subsidiary interests in VIEs for which the Bank does not have a controlling financial interest and is not the primary beneficiary. These subsidiary interests are not included in the Company’s consolidated financial statements. The parent holding company owns non-bank subsidiaries that have issued trust preferred securities as Tier 1 capital instruments. The trust subsidiaries are not included in the Company’s consolidated financial statements. The Company's investments in the trust subsidiaries are included in other assets on the Company's statements of financial condition. On April 30, 2019, the Company acquired the outstanding common stock of FNB Bancorp and its wholly-owned subsidiary, The First National Bank of Layton, a community bank based in Layton, Utah (collectively, “FNB”). As of March 31, 2019, FNB had total assets of $328,893,000, gross loans of $248,725,000 and total deposits of $279,674,000. For additional information relating to this subsequent event, see Note 13. |
||||||||||||||||||||||||||||||||||||
Loans Receivable | Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR:
The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example:
For additional information relating to loans, see Note 3. |
||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. Commercial Real Estate. Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and/or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. Commercial. Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity. Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 to 15 years. Other Consumer. The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following:
The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan and overdraft balances determined by management to be uncollectible are charged-off as a reduction of the ALLL and recoveries of amounts previously charged-off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged-off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as other real estate owned (“OREO”) until such time as it is sold. At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. |
||||||||||||||||||||||||||||||||||||
Lessee Leases | Leases The Company leases certain land, premises and equipment from third parties. A lessee lease is classified as an operating lease unless it meets certain criteria (e.g., lease contains option to purchase that Company is reasonably certain to exercise), in which case it is classified as a finance lease. Effective January 1, 2019, operating leases are included in net premises and equipment and other liabilities on the Company’s statements of financial condition and lease expense for lease payments is recognized on a straight-line basis over the lease term. Finance leases are included in net premises and equipment and other borrowed funds on the Company’s statements of financial condition. Right-of-use (“ROU”) assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. The Company accounts for lease and nonlease components (e.g., common-area maintenance) together as a single combined lease component for all asset classes. Short-term leases of 12 months or less are excluded from accounting guidance; as a result, the lease payments are recognized on a straight-line basis over the lease term and the leases are not reflected on the Company’s statements of financial condition. Renewal and termination options are considered when determining short-term leases. Leases are accounted for on an individual lease level. Lease improvements incurred at the inception of the lease are recorded as an asset and depreciated over the initial term of the lease and lease improvements incurred subsequently are depreciated over the remaining term of the lease. |
||||||||||||||||||||||||||||||||||||
Lessor Leases | The Company also leases certain premises and equipment to third parties. A lessor lease is classified as an operating lease unless it meets certain criteria that would classify it as either a sales-type lease or a direct financing lease. For additional information relating to leases, see Note 4. |
||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The Company recognizes revenue when services or products are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled. The Company’s principal source of revenue is interest income from debt securities and loans. Revenue from contracts with customers within the scope of Accounting Standards Codification™ (“ASC”) Topic 606 was $18,446,000 and $17,291,000 for the three months ended March 31, 2019 and 2018, respectively, and largely consisted of revenue from service charges and other fees from deposits (e.g., overdraft fees, ATM fees, debit card fees). Due to the short-term nature of the Company’s contracts with customers, an insignificant amount of receivables related to such revenue was recorded at March 31, 2019 and December 31, 2018 and there were no impairment losses recognized. Policies specific to revenue from contracts with customers include the following: Service Charges. Revenue from service charges consists of service charges and fees on deposit accounts under depository agreements with customers to provide access to deposited funds and, when applicable, pay interest on deposits. Service charges on deposit accounts may be transactional or non-transactional in nature. Transactional service charges occur in the form of a service or penalty and are charged upon the occurrence of an event (e.g., overdraft fees, ATM fees, wire transfer fees). Transactional service charges are recognized as services are delivered to and consumed by the customer, or as penalty fees are charged. Non-transactional service charges are charges that are based on a broader service, such as account maintenance fees and dormancy fees, and are recognized on a monthly basis. Debit Card Fees. Revenue from debit card fees includes interchange fee income from debit cards processed through card association networks. Interchange fees represent a portion of a transaction amount that the Company and other involved parties retain to compensate themselves for giving the cardholder immediate access to funds. Interchange rates are generally set by the card association networks and are based on purchase volumes and other factors. The Company records interchange fees as services are provided. |
||||||||||||||||||||||||||||||||||||
Accounting Guidance Adopted in 2019 and Pending Adoption at March 31, 2019 | Accounting Guidance Adopted in 2019 The ASC is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. The following paragraphs provide descriptions of recently adopted Accounting Standards Updates (“ASU”) that may have had a material effect on the Company’s financial position or results of operations. ASU 2017-08 - Receivables - Nonrefundable Fees and Other Costs. In March 2017, FASB amended ASC Subtopic 310-20 to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments required the premium to be amortized to the earliest call date instead of the maturity date. The amendments did not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments were effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018 and any adjustments were to be reflected as of the beginning of the year that includes the interim period. Entities were to apply the amendments on a modified retrospective basis; therefore, a cumulative-effect reduction to retained earnings of $24,102,000 was recognized as of the January 1, 2019 effective date. The Company’s debt securities that were effected by the amendments were primarily in the state and local governments category. The Company’s accounting policies and procedures were updated to reflect the amendments. ASU 2016-02 - Leases. In February 2016, FASB amended ASC Topic 842 to address several aspects of lease accounting with the significant change being the recognition of lease assets and lease liabilities for leases previously classified as operating leases. The amendments were effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2018. The Company has lease agreements for which the amendments required the recognition of a lease liability to make lease payments and an ROU asset which represents its right to use the underlying asset for the lease term. An entity is permitted to elect not to restate its comparative periods in the period of adoption when transitioning to ASC Topic 842 and the Company made this election. In addition, the Company made the following elections related to implementation: 1) to not use hindsight in determining lease terms and in assessing impairment of ROU assets; and 2) to use the practical expedient package, which required no reassessment of whether existing contracts are or contain leases as well as no reassessment of lease classification for existing leases. At the date of adoption, the Company recognized an ROU asset and related lease liability on the Company’s statement of financial condition of $36,178,000 and $38,220,000, respectively. The Company developed new processes to comply with the accounting and disclosure requirements of such amendments and policies and procedures were updated accordingly. Accounting Guidance Pending Adoption at March 31, 2019 The following paragraphs provide descriptions of newly issued but not yet effective ASUs that could have a material effect on the Company’s financial position or results of operations. ASU 2017-04 - Intangibles - Goodwill and Other. In January 2017, FASB amended ASC Topic 350 to simplify the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Instead, under these amendments, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more-likely-than-not reduce the fair value of the reporting unit below its carrying value. During the third quarter of 2018, the Company performed its impairment assessment and determined the fair value of the aggregated reporting units exceeded the carrying value, such that the Company’s goodwill was not considered impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment, it is unlikely that an impairment amount would need to be calculated and, therefore, the Company does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis. For additional information regarding goodwill impairment testing, see Note 5. ASU 2016-13 - Financial Instruments - Credit Losses. In June 2016, FASB amended ASC Topic 326 to replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The ALLL is a material estimate of the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALLL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALLL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company will also develop new procedures for determining an allowance for credit losses relating to held-to-maturity debt securities. In addition, the current accounting policy and procedures for other-than-temporary impairment on available-for-sale debt securities will be replaced with an allowance approach. The Company has engaged a third-party vendor solution and is currently in the implementation phase and evaluating the appropriate models, loan pools and assumptions to be utilized. The project team anticipates running parallel models during 2019 to refine its processes and procedures. For additional information on the ALLL, see Note 3. |
Debt Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost, gross unrealized gains and losses and fair value of debt securities | The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s debt securities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and fair value of securities by contractual maturity | The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at March 31, 2019. Actual maturities may differ from expected or contractual maturities since issuers have the right to prepay obligations with or without prepayment penalties.
______________________________ 1 Mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sales and calls of debt securities and the associated gains and losses | Proceeds from sales and calls of debt securities and the associated gains and losses that have been included in earnings are listed below:
______________________________ 1 The gain or loss on the sale or call of each debt security is determined by the specific identification method. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of debt securities with an unrealized loss position | Debt securities with an unrealized loss position are summarized as follows:
|
Loans Receivable, Net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of loans receivable | The following table presents loans receivable for each portfolio class of loans:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the activity in the ALLL | The following tables summarize the activity in the ALLL by loan class:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of ALLL and loans receivable | The following tables disclose the recorded investment in loans and the balance in the ALLL by loan class:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan portfolio aging analysis | The following tables present an aging analysis of the recorded investment in loans by loan class:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of impaired loans | The following tables disclose information related to impaired loans by loan class:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of TDRs | The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented:
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Summary | The following table summarizes the Company’s leases:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Lease Liabilities | Maturities of lease liabilities consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense | The components of lease expense consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental cash flow information related to leases is as follows:
|
Goodwill (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying value of goodwill | The following schedule discloses the changes in the carrying value of goodwill:
|
Variable Interest Entities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIEs' assets and liabilities | The following table summarizes the carrying amounts of the consolidated VIEs’ assets and liabilities included in the Company’s statements of financial condition and are adjusted for intercompany eliminations. All assets presented can be used only to settle obligations of the consolidated VIEs and all liabilities presented consist of liabilities for which creditors and other beneficial interest holders therein have no recourse to the general credit of the Company.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization expense and tax credits and other tax benefits recognized for qualified affordable housing project investments | The following table summarizes the amortization expense and the amount of tax credits and other tax benefits recognized for qualified affordable housing project investments during the periods presented.
|
Securities Sold Under Agreements to Repurchase (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value of Repurchase Agreements | The following tables summarize the carrying value of the Company’s repurchase agreements by remaining contractual maturity and category of collateral:
|
Derivatives and Hedging Activities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of interest rate swap derivative financial instruments | As of March 31, 2019, the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows:
______________________________ 1 The Company pays the fixed interest rate and the counterparty pays the Company the variable interest rate. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Pre-Tax Gains or Losses | The following table presents the pre-tax gains or losses recorded in OCI and the Company’s statements of operations relating to the interest rate swap derivative financial instruments:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting assets | The following table discloses the offsetting of financial assets and interest rate swap derivative assets.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting liabilities | The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities.
|
Other Expenses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Expenses | Other expenses consists of the following:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity within Accumulated Other Comprehensive Income (Loss), Net of Tax | The following table illustrates the activity within accumulated other comprehensive income (loss) by component, net of tax:
|
Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted earnings per share | Basic and diluted earnings per share has been computed based on the following:
|
Fair Value of Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurement of assets and liabilities measured at fair value on a recurring basis | The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurement of assets measured at fair value on a non-recurring basis | The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used | The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
______________________________ 1 The range for selling cost inputs represents reductions to the fair value of the assets. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying amounts and estimated fair values of financial instruments not carried at fair value | The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments not carried at fair value. Receivables and payables due in one year or less, equity securities without readily determinable fair values and deposits with no defined or contractual maturities are excluded.
|
Proceeds From Sales and Calls of Debt Securities and Associates Gains or Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||
Available-for-sale | |||||
Sales of available-for-sale debt securities | $ 304,048 | $ 228,681 | |||
Gross realized gains | [1] | 2,937 | 6 | ||
Gross realized losses | [1] | (2,716) | (288) | ||
Held-to-maturity | |||||
Proceeds from calls of debt securities | 29,945 | 15,465 | |||
Gross realized gains | [1] | 2 | 54 | ||
Gross realized losses | [1] | $ (10) | $ (105) | ||
|
Debt Securities with an Unrealized Loss Position (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Available-for-sale, Fair Value | ||
Less than 12 Months | $ 77,110 | $ 444,401 |
12 Months or More | 593,955 | 1,016,813 |
Total | 671,065 | 1,461,214 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (452) | (3,224) |
12 Months or More | (7,573) | (28,993) |
Total | (8,025) | (32,217) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 0 | 87,392 |
12 Months or More | 6,896 | 126,226 |
Total | 6,896 | 213,618 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | 0 | (2,778) |
12 Months or More | (6) | (8,261) |
Total | (6) | (11,039) |
U.S. government and federal agency | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 6,553 | 4,287 |
12 Months or More | 9,565 | 10,519 |
Total | 16,118 | 14,806 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (71) | (27) |
12 Months or More | (115) | (135) |
Total | (186) | (162) |
U.S. government sponsored enterprises | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 0 | 43,400 |
12 Months or More | 4,961 | 35,544 |
Total | 4,961 | 78,944 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | 0 | (103) |
12 Months or More | (1) | (411) |
Total | (1) | (514) |
State and local governments | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 3,736 | 72,080 |
12 Months or More | 34,411 | 232,244 |
Total | 38,147 | 304,324 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (4) | (922) |
12 Months or More | (301) | (10,400) |
Total | (305) | (11,322) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 0 | 87,392 |
12 Months or More | 6,896 | 126,226 |
Total | 6,896 | 213,618 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | 0 | (2,778) |
12 Months or More | (6) | (8,261) |
Total | (6) | (11,039) |
Corporate bonds | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 18,409 | 119,111 |
12 Months or More | 53,314 | 114,800 |
Total | 71,723 | 233,911 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (37) | (937) |
12 Months or More | (202) | (676) |
Total | (239) | (1,613) |
Residential mortgage-backed securities | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 28,049 | 132,405 |
12 Months or More | 441,716 | 537,202 |
Total | 469,765 | 669,607 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (86) | (833) |
12 Months or More | (6,123) | (15,417) |
Total | (6,209) | (16,250) |
Commercial mortgage-backed securities | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 20,363 | 73,118 |
12 Months or More | 49,988 | 86,504 |
Total | 70,351 | 159,622 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (254) | (402) |
12 Months or More | (831) | (1,954) |
Total | $ (1,085) | $ (2,356) |
Debt Securities (Details Textual) - USD ($) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Other-than-temporary impairment on debt securities | $ 0 | $ 0 |
Loans Receivable, Net Summary of Loans Receivable (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Summary of Loans Receivable | ||
Loans receivable | $ 8,326,070 | $ 8,287,549 |
Allowance for loan and lease losses | (129,786) | (131,239) |
Loans receivable, net | 8,196,284 | 8,156,310 |
Net deferred origination (fees) costs included in loans receivable | (5,022) | (5,685) |
Net purchase accounting (discounts) premiums included in loans receivable | $ (23,681) | $ (25,172) |
Weighted-average interest rate on loans (tax-equivalent) | 5.18% | 4.97% |
Residential Real Estate | Residential Real Estate | ||
Summary of Loans Receivable | ||
Loans receivable | $ 884,732 | $ 887,742 |
Allowance for loan and lease losses | (10,711) | (10,631) |
Commercial | ||
Summary of Loans Receivable | ||
Loans receivable | 6,595,534 | 6,568,732 |
Commercial | Commercial Real Estate | ||
Summary of Loans Receivable | ||
Loans receivable | 4,686,082 | 4,657,561 |
Allowance for loan and lease losses | (72,328) | (72,448) |
Commercial | Other Commercial | ||
Summary of Loans Receivable | ||
Loans receivable | 1,909,452 | 1,911,171 |
Allowance for loan and lease losses | (36,849) | (38,160) |
Consumer and Other | ||
Summary of Loans Receivable | ||
Loans receivable | 845,804 | 831,075 |
Consumer and Other | Home Equity | ||
Summary of Loans Receivable | ||
Loans receivable | 562,381 | 544,688 |
Allowance for loan and lease losses | (5,880) | (5,811) |
Consumer and Other | Other Consumer | ||
Summary of Loans Receivable | ||
Loans receivable | 283,423 | 286,387 |
Allowance for loan and lease losses | $ (4,018) | $ (4,189) |
ALLL Activity (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Allowance for loan and lease losses | ||
Balance at beginning of period | $ 131,239 | $ 129,568 |
Provision for loan losses | 57 | 795 |
Charge-offs | (3,341) | (5,007) |
Recoveries | 1,831 | 2,252 |
Balance at end of period | 129,786 | 127,608 |
Residential Real Estate | Residential Real Estate | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 10,631 | 10,798 |
Provision for loan losses | 278 | (177) |
Charge-offs | (292) | (3) |
Recoveries | 94 | 16 |
Balance at end of period | 10,711 | 10,634 |
Commercial | Commercial Real Estate | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 72,448 | 68,515 |
Provision for loan losses | (148) | 245 |
Charge-offs | (283) | (1,033) |
Recoveries | 311 | 615 |
Balance at end of period | 72,328 | 68,342 |
Commercial | Other Commercial | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 38,160 | 39,303 |
Provision for loan losses | (915) | (3) |
Charge-offs | (840) | (1,788) |
Recoveries | 444 | 596 |
Balance at end of period | 36,849 | 38,108 |
Consumer and Other | Home Equity | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 5,811 | 6,204 |
Provision for loan losses | 64 | (202) |
Charge-offs | (8) | (12) |
Recoveries | 13 | 50 |
Balance at end of period | 5,880 | 6,040 |
Consumer and Other | Other Consumer | ||
Allowance for loan and lease losses | ||
Balance at beginning of period | 4,189 | 4,748 |
Provision for loan losses | 778 | 932 |
Charge-offs | (1,918) | (2,171) |
Recoveries | 969 | 975 |
Balance at end of period | $ 4,018 | $ 4,484 |
ALLL and Loans Receivable Summary (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | $ 104,411 | $ 108,788 |
Collectively evaluated for impairment | 8,221,659 | 8,178,761 |
Total loans receivable | 8,326,070 | 8,287,549 |
Individually evaluated for impairment | 702 | 3,223 |
Collectively evaluated for impairment | 129,084 | 128,016 |
Total allowance for loan and lease losses | 129,786 | 131,239 |
Residential Real Estate | Residential Real Estate | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 10,646 | 12,685 |
Collectively evaluated for impairment | 874,086 | 875,057 |
Total loans receivable | 884,732 | 887,742 |
Individually evaluated for impairment | 1 | 83 |
Collectively evaluated for impairment | 10,710 | 10,548 |
Total allowance for loan and lease losses | 10,711 | 10,631 |
Commercial | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Total loans receivable | 6,595,534 | 6,568,732 |
Commercial | Commercial Real Estate | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 65,104 | 68,837 |
Collectively evaluated for impairment | 4,620,978 | 4,588,724 |
Total loans receivable | 4,686,082 | 4,657,561 |
Individually evaluated for impairment | 57 | 568 |
Collectively evaluated for impairment | 72,271 | 71,880 |
Total allowance for loan and lease losses | 72,328 | 72,448 |
Commercial | Other Commercial | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 22,954 | 20,975 |
Collectively evaluated for impairment | 1,886,498 | 1,890,196 |
Total loans receivable | 1,909,452 | 1,911,171 |
Individually evaluated for impairment | 642 | 2,313 |
Collectively evaluated for impairment | 36,207 | 35,847 |
Total allowance for loan and lease losses | 36,849 | 38,160 |
Consumer and Other | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Total loans receivable | 845,804 | 831,075 |
Consumer and Other | Home Equity | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 3,057 | 3,497 |
Collectively evaluated for impairment | 559,324 | 541,191 |
Total loans receivable | 562,381 | 544,688 |
Individually evaluated for impairment | 0 | 39 |
Collectively evaluated for impairment | 5,880 | 5,772 |
Total allowance for loan and lease losses | 5,880 | 5,811 |
Consumer and Other | Other Consumer | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 2,650 | 2,794 |
Collectively evaluated for impairment | 280,773 | 283,593 |
Total loans receivable | 283,423 | 286,387 |
Individually evaluated for impairment | 2 | 220 |
Collectively evaluated for impairment | 4,016 | 3,969 |
Total allowance for loan and lease losses | $ 4,018 | $ 4,189 |
Loans Receivable Aging Analysis (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Loan portfolio aging analysis | ||
Non-accrual loans | $ 40,269 | $ 47,252 |
Total past due and non-accrual loans | 79,614 | 82,837 |
Current loans receivable | 8,246,456 | 8,204,712 |
Total loans receivable | 8,326,070 | 8,287,549 |
Accruing loans 30 to 59 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 28,938 | 24,312 |
Accruing loans 60 to 89 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 7,956 | 9,255 |
Accruing loans 90 days or more past due | ||
Loan portfolio aging analysis | ||
Past due loans | 2,451 | 2,018 |
Residential Real Estate | Residential Real Estate | ||
Loan portfolio aging analysis | ||
Non-accrual loans | 6,219 | 8,021 |
Total past due and non-accrual loans | 13,196 | 14,920 |
Current loans receivable | 871,536 | 872,822 |
Total loans receivable | 884,732 | 887,742 |
Residential Real Estate | Residential Real Estate | Accruing loans 30 to 59 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 5,211 | 5,251 |
Residential Real Estate | Residential Real Estate | Accruing loans 60 to 89 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 768 | 860 |
Residential Real Estate | Residential Real Estate | Accruing loans 90 days or more past due | ||
Loan portfolio aging analysis | ||
Past due loans | 998 | 788 |
Commercial | ||
Loan portfolio aging analysis | ||
Total loans receivable | 6,595,534 | 6,568,732 |
Commercial | Commercial Real Estate | ||
Loan portfolio aging analysis | ||
Non-accrual loans | 24,096 | 27,264 |
Total past due and non-accrual loans | 42,239 | 39,972 |
Current loans receivable | 4,643,843 | 4,617,589 |
Total loans receivable | 4,686,082 | 4,657,561 |
Commercial | Commercial Real Estate | Accruing loans 30 to 59 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 14,345 | 9,477 |
Commercial | Commercial Real Estate | Accruing loans 60 to 89 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 3,564 | 3,231 |
Commercial | Commercial Real Estate | Accruing loans 90 days or more past due | ||
Loan portfolio aging analysis | ||
Past due loans | 234 | 0 |
Commercial | Other Commercial | ||
Loan portfolio aging analysis | ||
Non-accrual loans | 6,766 | 8,619 |
Total past due and non-accrual loans | 15,223 | 17,231 |
Current loans receivable | 1,894,229 | 1,893,940 |
Total loans receivable | 1,909,452 | 1,911,171 |
Commercial | Other Commercial | Accruing loans 30 to 59 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 5,620 | 4,282 |
Commercial | Other Commercial | Accruing loans 60 to 89 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 1,839 | 3,838 |
Commercial | Other Commercial | Accruing loans 90 days or more past due | ||
Loan portfolio aging analysis | ||
Past due loans | 998 | 492 |
Consumer and Other | ||
Loan portfolio aging analysis | ||
Total loans receivable | 845,804 | 831,075 |
Consumer and Other | Home Equity | ||
Loan portfolio aging analysis | ||
Non-accrual loans | 2,454 | 2,575 |
Total past due and non-accrual loans | 5,924 | 6,951 |
Current loans receivable | 556,457 | 537,737 |
Total loans receivable | 562,381 | 544,688 |
Consumer and Other | Home Equity | Accruing loans 30 to 59 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 2,273 | 3,213 |
Consumer and Other | Home Equity | Accruing loans 60 to 89 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 1,082 | 735 |
Consumer and Other | Home Equity | Accruing loans 90 days or more past due | ||
Loan portfolio aging analysis | ||
Past due loans | 115 | 428 |
Consumer and Other | Other Consumer | ||
Loan portfolio aging analysis | ||
Non-accrual loans | 734 | 773 |
Total past due and non-accrual loans | 3,032 | 3,763 |
Current loans receivable | 280,391 | 282,624 |
Total loans receivable | 283,423 | 286,387 |
Consumer and Other | Other Consumer | Accruing loans 30 to 59 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 1,489 | 2,089 |
Consumer and Other | Other Consumer | Accruing loans 60 to 89 days past due | ||
Loan portfolio aging analysis | ||
Past due loans | 703 | 591 |
Consumer and Other | Other Consumer | Accruing loans 90 days or more past due | ||
Loan portfolio aging analysis | ||
Past due loans | $ 106 | $ 310 |
Impaired Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | $ 16,061 | $ 19,197 |
Loans with a specific valuation allowance, Unpaid principal balance | 16,061 | 19,491 |
Specific valuation allowance | 702 | 3,223 |
Loans with a specific valuation allowance, Average balance | 17,629 | 19,519 |
Loans without a specific valuation allowance, Recorded balance | 88,350 | 89,591 |
Loans without a specific valuation allowance, Unpaid principal balance | 105,100 | 107,486 |
Loans without a specific valuation allowance, Average balance | 88,970 | 106,747 |
Recorded balance | 104,411 | 108,788 |
Unpaid principal balance | 121,161 | 126,977 |
Average balance | 106,599 | 126,266 |
Residential Real Estate | Residential Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 44 | 1,957 |
Loans with a specific valuation allowance, Unpaid principal balance | 44 | 2,220 |
Specific valuation allowance | 1 | 83 |
Loans with a specific valuation allowance, Average balance | 1,001 | 2,686 |
Loans without a specific valuation allowance, Recorded balance | 10,602 | 10,728 |
Loans without a specific valuation allowance, Unpaid principal balance | 12,009 | 11,989 |
Loans without a specific valuation allowance, Average balance | 10,665 | 10,269 |
Recorded balance | 10,646 | 12,685 |
Unpaid principal balance | 12,053 | 14,209 |
Average balance | 11,666 | 12,955 |
Commercial | Commercial Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 6,004 | 9,345 |
Loans with a specific valuation allowance, Unpaid principal balance | 6,004 | 9,345 |
Specific valuation allowance | 57 | 568 |
Loans with a specific valuation allowance, Average balance | 7,674 | 8,498 |
Loans without a specific valuation allowance, Recorded balance | 59,100 | 59,492 |
Loans without a specific valuation allowance, Unpaid principal balance | 69,991 | 71,300 |
Loans without a specific valuation allowance, Average balance | 59,296 | 73,889 |
Recorded balance | 65,104 | 68,837 |
Unpaid principal balance | 75,995 | 80,645 |
Average balance | 66,970 | 82,387 |
Commercial | Other Commercial | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 10,004 | 7,268 |
Loans with a specific valuation allowance, Unpaid principal balance | 10,004 | 7,268 |
Specific valuation allowance | 642 | 2,313 |
Loans with a specific valuation allowance, Average balance | 8,636 | 7,081 |
Loans without a specific valuation allowance, Recorded balance | 12,950 | 13,707 |
Loans without a specific valuation allowance, Unpaid principal balance | 16,516 | 17,689 |
Loans without a specific valuation allowance, Average balance | 13,328 | 17,376 |
Recorded balance | 22,954 | 20,975 |
Unpaid principal balance | 26,520 | 24,957 |
Average balance | 21,964 | 24,457 |
Consumer and Other | Home Equity | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 0 | 120 |
Loans with a specific valuation allowance, Unpaid principal balance | 0 | 120 |
Specific valuation allowance | 0 | 39 |
Loans with a specific valuation allowance, Average balance | 60 | 82 |
Loans without a specific valuation allowance, Recorded balance | 3,057 | 3,377 |
Loans without a specific valuation allowance, Unpaid principal balance | 3,699 | 3,986 |
Loans without a specific valuation allowance, Average balance | 3,217 | 3,465 |
Recorded balance | 3,057 | 3,497 |
Unpaid principal balance | 3,699 | 4,106 |
Average balance | 3,277 | 3,547 |
Consumer and Other | Other Consumer | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a specific valuation allowance, Recorded balance | 9 | 507 |
Loans with a specific valuation allowance, Unpaid principal balance | 9 | 538 |
Specific valuation allowance | 2 | 220 |
Loans with a specific valuation allowance, Average balance | 258 | 1,172 |
Loans without a specific valuation allowance, Recorded balance | 2,641 | 2,287 |
Loans without a specific valuation allowance, Unpaid principal balance | 2,885 | 2,522 |
Loans without a specific valuation allowance, Average balance | 2,464 | 1,748 |
Recorded balance | 2,650 | 2,794 |
Unpaid principal balance | 2,894 | 3,060 |
Average balance | $ 2,722 | $ 2,920 |
Troubled Debt Restructurings (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
Loan
|
Mar. 31, 2018
USD ($)
Loan
|
|
Troubled Debt Restructurings | ||
TDRs that Occurred During the Period, Number of Loans | Loan | 4 | 12 |
TDRs that Occurred During the Period, Pre-modification recorded balance | $ 1,705 | $ 15,997 |
TDRs that Occurred During the Period, Post-modification recorded balance | $ 1,705 | $ 15,997 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 1 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 334 |
Residential Real Estate | Residential Real Estate | ||
Troubled Debt Restructurings | ||
TDRs that Occurred During the Period, Number of Loans | Loan | 0 | 2 |
TDRs that Occurred During the Period, Pre-modification recorded balance | $ 0 | $ 439 |
TDRs that Occurred During the Period, Post-modification recorded balance | $ 0 | $ 439 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 1 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 334 |
Commercial | Commercial Real Estate | ||
Troubled Debt Restructurings | ||
TDRs that Occurred During the Period, Number of Loans | Loan | 1 | 4 |
TDRs that Occurred During the Period, Pre-modification recorded balance | $ 1,035 | $ 8,278 |
TDRs that Occurred During the Period, Post-modification recorded balance | $ 1,035 | $ 8,278 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 |
Commercial | Other Commercial | ||
Troubled Debt Restructurings | ||
TDRs that Occurred During the Period, Number of Loans | Loan | 2 | 6 |
TDRs that Occurred During the Period, Pre-modification recorded balance | $ 567 | $ 7,280 |
TDRs that Occurred During the Period, Post-modification recorded balance | $ 567 | $ 7,280 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 |
Consumer and Other | Home Equity | ||
Troubled Debt Restructurings | ||
TDRs that Occurred During the Period, Number of Loans | Loan | 1 | 0 |
TDRs that Occurred During the Period, Pre-modification recorded balance | $ 103 | $ 0 |
TDRs that Occurred During the Period, Post-modification recorded balance | $ 103 | $ 0 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 |
Consumer and Other | Other Consumer | ||
Troubled Debt Restructurings | ||
TDRs that Occurred During the Period, Number of Loans | Loan | 0 | 0 |
TDRs that Occurred During the Period, Pre-modification recorded balance | $ 0 | $ 0 |
TDRs that Occurred During the Period, Post-modification recorded balance | $ 0 | $ 0 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 |
Loans Receivable, Net (Details Textual) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019
USD ($)
portfolio_segment
|
Dec. 31, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
|
Loans and Leases Receivable Disclosure | |||
Number of segments in the Company's loan portfolio | portfolio_segment | 3 | ||
TDR With Pre Modification Loan Balance for Which Oreo Was Received | $ 1,940,000 | $ 431,000 | |
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | 1,134,000 | $ 350,000 | |
OREO Secured by Residential Real Estate | $ 2,076,000 | $ 698,000 |
Lease Summary (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Assets and Liabilities | |
Finance Lease, ROU assets | $ 951 |
Finance Lease, Accumulated depreciation | (832) |
Finance Lease, Net ROU assets | 119 |
Operating Lease, Net right-of-use assets | 36,247 |
Finance Lease, Lease liabilities | 163 |
Operating Lease, Lease liabilities | $ 38,389 |
Finance Lease, Weighted Average Remaining Lease Term | 2 years |
Operating Lease, Weighted Average Remaining Lease Term | 19 years |
Finance Lease, Weighted Average Discount Rate | 5.30% |
Operating Lease, Weighted Average Discount Rate | 3.70% |
Maturities of Lease Liabilities (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Finance Lease Liabilities, Rolling Maturity | |
Finance Lease, Maturing within one year | $ 92 |
Finance Lease, Maturing one year through two years | 77 |
Finance Lease, Maturing two years through three years | 1 |
Finance Lease, Maturing three years through four years | 1 |
Finance Lease, Maturing four years through five years | 0 |
Finance Lease, Thereafter | 0 |
Finance Lease, Total Lease Payments | 171 |
Finance Lease, Present Value of Lease Payments, Short-term | 86 |
Finance Lease, Present Value of Lease Payments, Long-term | 77 |
Finance Lease, Total present value of lease payments | 163 |
Finance Lease, Difference between lease payments and present value of lease payments | 8 |
Operating Lease Liabilities, Rolling Maturity | |
Operating Lease, Maturing within one year | 3,286 |
Operating Lease, Maturing one year through two years | 3,238 |
Operating Lease, Maturing two years through three years | 3,032 |
Operating Lease, Maturing three years through four years | 2,832 |
Operating Lease, Maturing four years through five years | 2,716 |
Operating Lease, Thereafter | 39,839 |
Operating Lease, Total Lease Payments | 54,943 |
Operating Lease, Present Value of Lease Payments, Short-term | 1,920 |
Operating Lease, Present Value of Lease Payments, Long-term | 36,469 |
Operating Lease, Total present value of lease payments | 38,389 |
Operating Lease, Difference between lease payments and present value of lease payments | $ 16,554 |
Components of Lease Expense (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Finance lease cost | |
Amortization of ROU assets | $ 16 |
Interest on lease liabilities | 2 |
Operating lease cost | 913 |
Short-term lease cost | 109 |
Variable lease cost | 199 |
Sublease income | (2) |
Total lease expense | $ 1,237 |
Supplemental Cash Flow Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Leases [Abstract] | |
Finance Lease, Operating cash flows | $ 2 |
Finance Lease, Financing cash flows | 21 |
Operating Lease, Operating cash flows | $ 479 |
Goodwill Changes in the Carrying Value of Goodwill (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Goodwill Roll Forward | ||
Net carrying value at beginning of period | $ 289,586 | $ 177,811 |
Acquisitions | 0 | 111,724 |
Net carrying value at end of period | $ 289,586 | $ 289,535 |
Goodwill (Details Textual) - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Accumulated impairment charge | $ 40,159,000 | $ 40,159,000 |
Variable Interest Entities VIE Carrying Amounts Included in Financial Statements (Details) - Consolidated VIEs - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Consolidated VIEs | ||
Assets | $ 126,373 | $ 125,998 |
Liabilities | 14,701 | 14,653 |
Loans Receivable | ||
Consolidated VIEs | ||
Assets | 80,466 | 80,123 |
Accrued Interest Receivable | ||
Consolidated VIEs | ||
Assets | 99 | 96 |
Other assets | ||
Consolidated VIEs | ||
Assets | 45,808 | 45,779 |
Other borrowed funds | ||
Consolidated VIEs | ||
Liabilities | 14,575 | 14,527 |
Accrued interest payable | ||
Consolidated VIEs | ||
Liabilities | 3 | 1 |
Other liabilities | ||
Consolidated VIEs | ||
Liabilities | $ 123 | $ 125 |
Variable Interest Entities Amortization Expense and Tax Credits and Other Tax Benefits (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Investments in Qualified Affordable Housing Projects | ||
Amortization expense | $ 1,417 | $ 891 |
Tax credits and other tax benefits recognized | $ 1,958 | $ 1,240 |
Variable Interest Entities (Details Textual) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Variable Interest Entities | |||
Unfunded contingent commitments | $ 11,362,000 | ||
Impairment losses | 0 | $ 0 | |
Other assets | |||
Variable Interest Entities | |||
Carrying value of equity investments in LIHTCs | $ 34,272,000 | $ 35,112,000 | |
CDE | |||
Variable Interest Entities | |||
Tax credit period | 7 years | ||
LIHTC | |||
Variable Interest Entities | |||
Tax credit period | 10 years | ||
Tax credit compliance period | 15 years |
Carrying Value of Repurchase Agreements (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 489,620 | $ 396,151 |
Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 489,620 | 394,513 |
Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 0 | 1,638 |
U.S. government and federal agency | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 4,402 | |
U.S. government and federal agency | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 4,402 | |
U.S. government and federal agency | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 0 | |
Residential mortgage-backed securities | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 397,077 | 328,174 |
Residential mortgage-backed securities | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 397,077 | 328,174 |
Residential mortgage-backed securities | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 0 | 0 |
Commercial mortgage-backed securities | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 88,141 | 67,977 |
Commercial mortgage-backed securities | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 88,141 | 66,339 |
Commercial mortgage-backed securities | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 0 | $ 1,638 |
Securities Sold Under Agreements to Repurchase (Details Textual) - USD ($) |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 489,620,000 | $ 396,151,000 |
Securities Pledged for Repurchase Agreements | $ 607,780,000 | $ 511,294,000 |
Interest Rate Swap Summary (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
|||
---|---|---|---|---|
Interest Rate Swap One | ||||
Derivative financial instruments | ||||
Forecasted Notional Amount | $ 160,000 | |||
Fixed Interest Rate | 3.378% | [1] | ||
Interest Rate Swap Two | ||||
Derivative financial instruments | ||||
Forecasted Notional Amount | $ 100,000 | |||
Fixed Interest Rate | 2.498% | [1] | ||
|
Derivatives and Hedging Activities Interest Rate Swap Gains or Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Pre-Tax Gains or Losses | ||
Amount of (loss) gain recognized in OCI | $ (1,834) | $ 4,379 |
Interest Rate Swaps | Interest Expense | ||
Pre-Tax Gains or Losses | ||
Amount of loss reclassified from OCI to interest expense | (223) | (900) |
Interest Rate Swaps | Other Comprehensive Income | ||
Pre-Tax Gains or Losses | ||
Amount of (loss) gain recognized in OCI | $ (1,834) | $ 4,379 |
Derivatives and Hedging Activities Offsetting Assets (Details) - Interest Rate Swaps - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 0 | $ 139 |
Gross Amounts Offset in the Statements of Financial Position | 0 | (139) |
Net Amounts of Assets Presented in the Statements of Financial Position | $ 0 | $ 0 |
Derivatives and Hedging Activities Offsetting Liabilities (Details) - Interest Rate Swaps - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | $ 5,380 | $ 3,908 |
Gross Amounts Offset in the Statements of Financial Position | 0 | (139) |
Net Amounts of Liabilities Presented in the Statements of Financial Position | $ 5,380 | $ 3,769 |
Derivatives and Hedging Activities (Details Textual) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Interest Rate Lock Commitments | |||
Derivative financial instruments | |||
Off-balance Sheet Commitments | $ 82,604,000 | $ 59,974,000 | |
Interest Rate Swap One | |||
Derivative financial instruments | |||
Forecasted Notional Amount | 160,000,000 | ||
Interest Rate Swap Two | |||
Derivative financial instruments | |||
Forecasted Notional Amount | 100,000,000 | ||
Interest Rate Swaps | |||
Derivative financial instruments | |||
Interest expense recorded on interest rate swap | 1,976,000 | $ 1,976,000 | |
Unrealized loss to be reclassified within twelve months | 1,118,000 | ||
Investment securities pledged as collateral | 6,402,000 | ||
Collateral pledged from the counterparties to the Company | 0 | ||
Forward commitments to sell TBA securities | |||
Derivative financial instruments | |||
Forecasted Notional Amount | $ 52,500,000 | $ 40,750,000 |
Other Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Other Expenses | ||
Debit card expenses | $ 1,869 | $ 1,640 |
Consulting and outside services | 1,767 | 1,379 |
Telephone | 1,175 | 1,021 |
Employee expenses | 996 | 791 |
Business development | 890 | 468 |
Loan expenses | 859 | 804 |
Postage | 833 | 779 |
Printing and supplies | 725 | 691 |
VIE amortization and other expenses | 545 | 474 |
ATM expenses | 494 | 289 |
Accounting and audit fees | 453 | 418 |
Checking and operating expenses | 362 | 113 |
Legal fees | 307 | 314 |
Mergers and acquisition expenses | 214 | 1,836 |
Other | 778 | 1,144 |
Total other expenses | $ 12,267 | $ 12,161 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Accumulated Other Comprehensive Loss | ||
Balance, beginning | $ (9,427) | $ (1,979) |
Other comprehensive income (loss) before reclassification | 33,312 | (15,927) |
Reclassification adjustments for (gains) losses included in net income | 2 | 883 |
Total other comprehensive income (loss), net of tax | 33,314 | (15,044) |
Balance, end | 23,887 | (17,023) |
Available-For-Sale Debt Securities | ||
Accumulated Other Comprehensive Loss | ||
Balance, beginning | (6,613) | 5,031 |
Other comprehensive income (loss) before reclassification | 34,681 | (19,196) |
Reclassification adjustments for (gains) losses included in net income | (165) | 211 |
Total other comprehensive income (loss), net of tax | 34,516 | (18,985) |
Balance, end | 27,903 | (13,954) |
Derivatives Used for Cash Flow Hedges | ||
Accumulated Other Comprehensive Loss | ||
Balance, beginning | (2,814) | (7,010) |
Other comprehensive income (loss) before reclassification | (1,369) | 3,269 |
Reclassification adjustments for (gains) losses included in net income | 167 | 672 |
Total other comprehensive income (loss), net of tax | (1,202) | 3,941 |
Balance, end | $ (4,016) | $ (3,069) |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Basic and Diluted Earnings Per Share | ||
Net income available to common stockholders, basic and diluted | $ 49,132 | $ 38,559 |
Average outstanding shares - basic | 84,549,974 | 80,808,904 |
Add: dilutive restricted stock awards and stock options | 64,274 | 78,231 |
Average outstanding shares - diluted | 84,614,248 | 80,887,135 |
Basic earnings per share | $ 0.58 | $ 0.48 |
Diluted earnings per share | $ 0.58 | $ 0.48 |
Earnings Per Share | ||
Restricted stock awards and stock options excluded from the diluted average outstanding share calculation | 41,593 | 0 |
Fair Value Measurements on a Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financial Assets | ||
Debt securities, available-for-sale | $ 2,522,322 | $ 2,571,663 |
Recurring Measurements | ||
Financial Assets | ||
Loans held for sale, at fair value | 29,389 | 33,156 |
Total assets measured at fair value on a recurring basis | 2,551,711 | 2,604,819 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 5,380 | 3,769 |
Interest Rate Swaps | Recurring Measurements | ||
Financial Liabilities | ||
Derivatives | 5,380 | 3,769 |
U.S. government and federal agency | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 21,521 | 23,649 |
U.S. government sponsored enterprises | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 106,457 | 120,208 |
State and local governments | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 725,191 | 852,250 |
Corporate bonds | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 218,548 | 290,817 |
Residential mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 825,048 | 792,915 |
Commercial mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 625,557 | 491,824 |
Level 1 | Recurring Measurements | ||
Financial Assets | ||
Loans held for sale, at fair value | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 1 | Interest Rate Swaps | Recurring Measurements | ||
Financial Liabilities | ||
Derivatives | 0 | 0 |
Level 1 | U.S. government and federal agency | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 1 | U.S. government sponsored enterprises | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 1 | State and local governments | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 1 | Corporate bonds | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 1 | Residential mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 2 | Recurring Measurements | ||
Financial Assets | ||
Loans held for sale, at fair value | 29,389 | 33,156 |
Total assets measured at fair value on a recurring basis | 2,551,711 | 2,604,819 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 5,380 | 3,769 |
Level 2 | Interest Rate Swaps | Recurring Measurements | ||
Financial Liabilities | ||
Derivatives | 5,380 | 3,769 |
Level 2 | U.S. government and federal agency | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 21,521 | 23,649 |
Level 2 | U.S. government sponsored enterprises | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 106,457 | 120,208 |
Level 2 | State and local governments | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 725,191 | 852,250 |
Level 2 | Corporate bonds | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 218,548 | 290,817 |
Level 2 | Residential mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 825,048 | 792,915 |
Level 2 | Commercial mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 625,557 | 491,824 |
Level 3 | Recurring Measurements | ||
Financial Assets | ||
Loans held for sale, at fair value | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 0 | 0 |
Level 3 | Interest Rate Swaps | Recurring Measurements | ||
Financial Liabilities | ||
Derivatives | 0 | 0 |
Level 3 | U.S. government and federal agency | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 3 | U.S. government sponsored enterprises | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 3 | State and local governments | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 3 | Corporate bonds | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 3 | Residential mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | Recurring Measurements | ||
Financial Assets | ||
Debt securities, available-for-sale | $ 0 | $ 0 |
Fair Value Measurements on a Non-Recurring Basis (Details) - Non-Recurring Measurements - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | $ 204 | $ 1,011 |
Collateral-dependent impaired loans, net of ALLL | 8 | 6,985 |
Total assets measured at fair value on a non-recurring basis | 212 | 7,996 |
Level 1 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 2 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 3 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 204 | 1,011 |
Collateral-dependent impaired loans, net of ALLL | 8 | 6,985 |
Total assets measured at fair value on a non-recurring basis | $ 212 | $ 7,996 |
Quantitative Information about Level 3 Fair Value Measurements (Details) - Non-Recurring Measurements $ in Thousands |
Mar. 31, 2019
USD ($)
Input
|
Dec. 31, 2018
USD ($)
Input
|
|||
---|---|---|---|---|---|
Quantitative Information About Level 3 Fair Value Measurements | |||||
Other real estate owned | $ | $ 204 | $ 1,011 | |||
Collateral-dependent impaired loans, net of ALLL | $ | 8 | 6,985 | |||
Level 3 | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Other real estate owned | $ | 204 | 1,011 | |||
Collateral-dependent impaired loans, net of ALLL | $ | 8 | 6,985 | |||
Level 3 | Sales Comparison Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Other real estate owned | $ | 204 | 1,011 | |||
Collateral-dependent impaired loans, net of ALLL | $ | $ 8 | 2,384 | |||
Level 3 | Combined Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Collateral-dependent impaired loans, net of ALLL | $ | $ 4,601 | ||||
Level 3 | Minimum Range | Sales Comparison Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Other real estate owned | [1] | 0.080 | 0.080 | ||
Collateral-dependent impaired loans, net of ALLL | [1] | 0.100 | 0.080 | ||
Level 3 | Minimum Range | Combined Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Collateral-dependent impaired loans, net of ALLL | [1] | 0.100 | |||
Level 3 | Maximum Range | Sales Comparison Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Other real estate owned | [1] | 0.150 | 0.150 | ||
Collateral-dependent impaired loans, net of ALLL | [1] | 0.100 | 0.200 | ||
Level 3 | Maximum Range | Combined Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Collateral-dependent impaired loans, net of ALLL | [1] | 0.100 | |||
Level 3 | Weighted Average Range | Sales Comparison Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Other real estate owned | [1] | 0.106 | 0.092 | ||
Collateral-dependent impaired loans, net of ALLL | [1] | 0.100 | 0.099 | ||
Level 3 | Weighted Average Range | Combined Approach | Selling costs | |||||
Quantitative Information About Level 3 Fair Value Measurements | |||||
Collateral-dependent impaired loans, net of ALLL | [1] | 0.100 | |||
|
Carrying Amount and Estimated Fair Value of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | $ 202,527 | $ 203,790 |
Debt securities, held-to-maturity | 255,572 | 297,915 |
Loans receivable, net of ALLL | 8,196,284 | 8,156,310 |
Total financial assets | 8,654,383 | 8,658,015 |
Financial liabilities | ||
Term deposits | 1,089,684 | 1,070,208 |
FHLB advances | 154,683 | 440,175 |
Repurchase agreements and other borrowed funds | 504,358 | 410,859 |
Subordinated debentures | 134,048 | 134,051 |
Total financial liabilities | 1,882,773 | 2,055,293 |
Estimated Fair Value | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 202,527 | 203,790 |
Debt securities, held-to-maturity | 0 | 0 |
Loans receivable, net of ALLL | 0 | 0 |
Total financial assets | 202,527 | 203,790 |
Financial liabilities | ||
Term deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Total financial liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Debt securities, held-to-maturity | 261,408 | 288,256 |
Loans receivable, net of ALLL | 0 | 0 |
Total financial assets | 261,408 | 288,256 |
Financial liabilities | ||
Term deposits | 1,089,785 | 1,069,777 |
FHLB advances | 154,915 | 439,615 |
Repurchase agreements and other borrowed funds | 504,358 | 410,859 |
Subordinated debentures | 121,369 | 120,302 |
Total financial liabilities | 1,870,427 | 2,040,553 |
Estimated Fair Value | Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Debt securities, held-to-maturity | 0 | 0 |
Loans receivable, net of ALLL | 8,148,954 | 8,079,112 |
Total financial assets | 8,148,954 | 8,079,112 |
Financial liabilities | ||
Term deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Fair Value Measurements (Details Textual) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Fair Value Disclosures [Abstract] | ||
Fair value measurement transfers from one level to another | $ 0 | $ 0 |
Loans Held For Sale | Gain on sale of loans | ||
Fair Value, Option, Quantitative Disclosures | ||
Changes in fair value, gain (loss) | $ (1,000) | $ (108,000) |
Subsequent Events (Details) - USD ($) |
Apr. 30, 2019 |
Apr. 03, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Subsequent Event | ||||
Total assets | $ 12,073,779,000 | $ 12,115,484,000 | ||
Gross loans | $ 8,326,070,000 | $ 8,287,549,000 | ||
Subsequent Event | ||||
Subsequent Event | ||||
Subsequent Event, Description | On April 30, 2019, the Company acquired the outstanding common stock of FNB Bancorp and its wholly-owned subsidiary, The First National Bank of Layton, a community bank based in Layton, Utah. | On April 3, 2019, the Company announced the signing of a definitive agreement to acquire Heritage Bancorp and its wholly-owned subsidiary, Heritage Bank of Nevada, a community bank based in Reno, Nevada (collectively, “Heritage”). | ||
Total assets | $ 840,769,000 | |||
Gross loans | 589,458,000 | |||
Total deposits | $ 722,955,000 |
.$20RF&_]3XB3+DHU];L&B4[24WTQ3%5[)[IWIZ(O5N7'OL>DT?^%CU_]*
M^*WNA'=F4O4KTU6NC$FJ-A0^J:U4ZJ(Q3QIZE7JX46,^=MMQ(ED_W22"^3I3
M_ %02P,$% @ 0(2B3L]10=00!0 2!D !@ !X;"]W;W)K \]IK7
M)"'3> UB,N35; ,Z-[92I=\\!K:W:A4B4V&LQXSUFK'%L*R51N?8HZI26A;/
MP^Y+/QBO7K^K*GU:R0(CT6LDDI%(]!IWUK&J$8A+8ZV/*F^K-!')2")Z3;J@
MFU>+:FV+6>@U"\E(%GJPZ2\]('S&>Q\J]DS7BBZXROK,W(%2)U0I'0E$E4KF%/A4
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MPVF-*H3%@E=EA)D5AIE25Y+:
L&V!&X*,>,C[P70XQV(^2ZPP($_NFV"'%3BK2(>
M0+JTZ$$/Q*07>-(/(*=!$J267H-\(-$@7Q& 2> RP@WR@2*.0$>X083$)(+'
M(X6@)08(C?'T%WSU$(FWQ-OQO2&
MTWK#']&; >0L;6-,Q9<;,5:WD0T$H382/S2<5!NM[>(>E^\!I$N+UB5.Z)+$
MNSE.Z)*T:RO,?T4 -9;4->6M&WLXQPTG="D6&I!8; F'/-)ZK#^T+'%"EB1>
M8@X@9WO#I:T[9GX7=Z$4?MES=]]E_DCKUZQL)B]5:[?O_2;[4%6ML3[9-UN'
MHTGWUXO<'-KN-+;G]>5[R.6BK4[#MY[P^L%I\3]02P,$% @ 0(2B3E?P
MZZ#F 0 [P0 !@ !X;"]W;W)K
S;%H7'*S(>M' 5W#?^K/Q%EM8*JFALQ([8J#.
MZ=W^>$I#? SX+F&TJS,)E5P07X+QN
G)E]W"];4C6M%":@FB'F>:TZK22LK'[U[4
M'6)JXGA\5?]DDE?);(F@.:M^E3MY7+BIZ^SHGIPJ^ EY(*T")8QK+@D'V3 (3&Y0.-(B2 8PXI+DD%&
M&,J- 1JOY8&,4<4251R5S80Q7CB^HW: \<(HA1-K169G'#D')E!%:RH-#YA5
MC%@EUHL$$;OSQ3 ;)&5VS' 5/SD,+">!)1>- RBJR,7,(B0SCK6DVV%D.2I'
MA,.4<2B7R]WN9,!SX?(1 4VRFC&85P[Q2M2, (PX5]T@%1EUCW)*#4M""[@<
M (F-J&$AM V=:3.$P>5\>2G!8=PXE,L)C\N8)]\4@.2-4H+#X'*HB"4\+M,T
MD+D#U5NE!( I;E.5E7J=P%G5T"W>/9[["L=?IOJBR
MGHEQ0GHJ_=LA^Y1L\1#:F[JMHRI='4HXC+2*H^13DFV3VVUZ!;3GJH*W3KYR
MGV[75W5Q!90*OVO=_X>BAJVMP]=:D%DU4+D4C*&ULC57;CMHP
M$/V5*!^P=JX$%"(M5*M6:B6T5=MG$P82K1UG;4.V?U_;"2D$LX('8L^<.6=F
M$H_SCHLW60$H[X/11B[]2JEV@9 L*V!$/O$6&NW9<\&(TEMQ0+(50'8VB%$4
M8IPB1NK&+W)KVX@BYT=%ZP8VPI-'QHCXNP+*NZ4?^&?#:WVHE#&@(F_) 7Z"
M^M5NA-ZAD657,VADS1M/P'[I/P>+=6 #+.)W#9V\6'NFE"WG;V;S;;?TL
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MF@0S]FR21(@["%$'H7$03AQ$5A4Z##>8RF#NTI#&5BH("M(XQ7Z_,HI*Y#XPNC;; ?*QK7G;E4N>%\;< D%!DA92!^U=C&&H$0Q_Q
MFC,N8 H(HZ8".W7Z=LAK#"^-X.5#7E\OMJ*2N1&,+(V*+1_LFK.(&8E)YD8P
MJ30B%7L>KZ]$HY*Y$4PGS>G$(*ZO%WY1R=P'1IQ&"U$?W9,HC1F)24Y&DHN]
M^N'ER1]E^[;;=XOGIN^;>MR&PO
M=V]R:W-H965T