x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Large accelerated
filer
o
|
Accelerated filer
x
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Emerging growth company
o
|
Table of Contents
|
|
|
|
|
September 30,
2018 |
December 31,
2017 |
||||
|
||||||
(Dollars in thousands)
|
(Unaudited)
|
|
||||
Assets
|
|
|
||||
Cash and due from banks
|
$
|
60,567
|
|
$
|
58,121
|
|
Interest-bearing deposits in other banks
|
34,606
|
|
14,073
|
|
||
Total cash and cash equivalents
|
95,173
|
|
72,194
|
|
||
Available-for-sale investment securities, at fair value (amortized cost of $819,431 at September 30, 2018 and $797,732 at December 31, 2017) (a)
|
793,325
|
|
795,187
|
|
||
Held-to-maturity investment securities, at amortized cost (fair value of $37,095 at September 30, 2018 and $41,213 at December 31, 2017)
|
37,790
|
|
40,928
|
|
||
Other investment securities (a)
|
43,044
|
|
38,371
|
|
||
Total investment securities
|
874,159
|
|
874,486
|
|
||
Loans, net of deferred fees and costs
|
2,707,727
|
|
2,357,137
|
|
||
Allowance for loan losses
|
(19,879
|
)
|
(18,793
|
)
|
||
Net loans
|
2,687,848
|
|
2,338,344
|
|
||
Loans held for sale
|
4,776
|
|
2,510
|
|
||
Bank premises and equipment, net of accumulated depreciation
|
57,527
|
|
52,510
|
|
||
Bank owned life insurance
|
68,439
|
|
62,176
|
|
||
Goodwill
|
151,673
|
|
133,111
|
|
||
Other intangible assets
|
11,728
|
|
11,465
|
|
||
Other assets
|
51,766
|
|
34,890
|
|
||
Total assets
|
$
|
4,003,089
|
|
$
|
3,581,686
|
|
Liabilities
|
|
|
||||
Deposits:
|
|
|
||||
Non-interest-bearing
|
$
|
617,447
|
|
$
|
556,010
|
|
Interest-bearing
|
2,423,676
|
|
2,174,320
|
|
||
Total deposits
|
3,041,123
|
|
2,730,330
|
|
||
Short-term borrowings
|
296,830
|
|
209,491
|
|
||
Long-term borrowings
|
111,099
|
|
144,019
|
|
||
Accrued expenses and other liabilities
|
49,747
|
|
39,254
|
|
||
Total liabilities
|
3,498,799
|
|
3,123,094
|
|
||
Stockholders’ equity
|
|
|
||||
Preferred stock, no par value, 50,000 shares authorized, no shares issued at September 30, 2018 and December 31, 2017
|
—
|
|
—
|
|
||
Common stock, no par value, 24,000,000 shares authorized, 20,119,194 shares issued at September 30, 2018 and 18,952,385 shares issued at December 31, 2017, including shares in treasury
|
386,142
|
|
345,412
|
|
||
Retained earnings (b)
|
152,976
|
|
134,362
|
|
||
Accumulated other comprehensive loss, net of deferred income taxes (b)
|
(20,590
|
)
|
(5,215
|
)
|
||
Treasury stock, at cost, 609,250 shares at September 30, 2018 and 702,449 shares at December 31, 2017
|
(14,238
|
)
|
(15,967
|
)
|
||
Total stockholders’ equity
|
504,290
|
|
458,592
|
|
||
Total liabilities and stockholders’ equity
|
$
|
4,003,089
|
|
$
|
3,581,686
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
(Dollars in thousands, except per share data)
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Interest income:
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
33,355
|
|
$
|
26,370
|
|
|
$
|
91,486
|
|
$
|
76,133
|
|
Interest and dividends on taxable investment securities
|
5,577
|
|
5,615
|
|
|
17,057
|
|
15,280
|
|
||||
Interest on tax-exempt investment securities
|
613
|
|
701
|
|
|
1,891
|
|
2,257
|
|
||||
Other interest income
|
86
|
|
42
|
|
|
192
|
|
83
|
|
||||
Total interest income
|
39,631
|
|
32,728
|
|
|
110,626
|
|
93,753
|
|
||||
Interest expense:
|
|
|
|
|
|
||||||||
Interest on deposits
|
4,018
|
|
1,865
|
|
|
9,332
|
|
5,081
|
|
||||
Interest on short-term borrowings
|
1,617
|
|
369
|
|
|
3,760
|
|
853
|
|
||||
Interest on long-term borrowings
|
672
|
|
1,274
|
|
|
2,043
|
|
3,564
|
|
||||
Total interest expense
|
6,307
|
|
3,508
|
|
|
15,135
|
|
9,498
|
|
||||
Net interest income
|
33,324
|
|
29,220
|
|
|
95,491
|
|
84,255
|
|
||||
Provision for loan losses
|
1,302
|
|
1,086
|
|
|
4,473
|
|
2,657
|
|
||||
Net interest income after provision for loan losses
|
32,022
|
|
28,134
|
|
|
91,018
|
|
81,598
|
|
||||
Non-interest income:
|
|
|
|
|
|
||||||||
Insurance income
|
3,388
|
|
3,345
|
|
|
11,412
|
|
10,861
|
|
||||
Trust and investment income
|
3,110
|
|
2,838
|
|
|
9,410
|
|
8,497
|
|
||||
Electronic banking income
|
2,890
|
|
2,544
|
|
|
8,460
|
|
7,692
|
|
||||
Deposit account service charges
|
2,652
|
|
2,407
|
|
|
7,160
|
|
7,130
|
|
||||
Mortgage banking income
|
1,060
|
|
535
|
|
|
2,380
|
|
1,389
|
|
||||
Bank owned life insurance income
|
495
|
|
482
|
|
|
1,460
|
|
1,471
|
|
||||
Commercial loan swap fees
|
355
|
|
76
|
|
|
617
|
|
995
|
|
||||
Net gain (loss) on asset disposals and other transactions
|
12
|
|
(25
|
)
|
|
(319
|
)
|
81
|
|
||||
Net gain (loss) on investment securities
|
—
|
|
1,861
|
|
|
(146
|
)
|
2,219
|
|
||||
Other non-interest income (a)
|
391
|
|
383
|
|
|
2,143
|
|
1,499
|
|
||||
Total non-interest income
|
14,353
|
|
14,446
|
|
|
42,577
|
|
41,834
|
|
||||
Non-interest expense:
|
|
|
|
|
|
||||||||
Salaries and employee benefit costs
|
17,908
|
|
15,141
|
|
|
51,923
|
|
45,686
|
|
||||
Net occupancy and equipment expense
|
2,850
|
|
2,619
|
|
|
8,519
|
|
7,980
|
|
||||
Electronic banking expense
|
1,552
|
|
1,403
|
|
|
4,409
|
|
4,293
|
|
||||
Data processing and software expense
|
1,408
|
|
1,092
|
|
|
4,089
|
|
3,330
|
|
||||
Professional fees
|
1,395
|
|
1,393
|
|
|
6,135
|
|
4,532
|
|
||||
Amortization of other intangible assets
|
862
|
|
869
|
|
|
2,477
|
|
2,603
|
|
||||
Franchise tax expense
|
616
|
|
583
|
|
|
1,874
|
|
1,750
|
|
||||
Marketing expense
|
456
|
|
488
|
|
|
1,437
|
|
1,122
|
|
||||
FDIC insurance expense
|
391
|
|
449
|
|
|
1,173
|
|
1,339
|
|
||||
Foreclosed real estate and other loan expenses
|
373
|
|
214
|
|
|
923
|
|
589
|
|
||||
Communication expense
|
305
|
|
334
|
|
|
949
|
|
1,134
|
|
||||
Other non-interest expense
|
2,713
|
|
1,973
|
|
|
11,113
|
|
6,211
|
|
||||
Total non-interest expense
|
30,829
|
|
26,558
|
|
|
95,021
|
|
80,569
|
|
||||
Income before income taxes
|
15,546
|
|
16,022
|
|
|
38,574
|
|
42,863
|
|
||||
Income tax expense
|
2,821
|
|
5,127
|
|
|
6,216
|
|
13,393
|
|
||||
Net income
|
$
|
12,725
|
|
$
|
10,895
|
|
|
$
|
32,358
|
|
$
|
29,470
|
|
Earnings per common share - basic
|
$
|
0.65
|
|
$
|
0.60
|
|
|
$
|
1.70
|
|
$
|
1.62
|
|
Earnings per common share - diluted
|
$
|
0.65
|
|
$
|
0.60
|
|
|
$
|
1.69
|
|
$
|
1.61
|
|
Weighted-average number of common shares outstanding - basic
|
19,325,457
|
|
18,056,202
|
|
|
18,875,290
|
|
18,043,692
|
|
||||
Weighted-average number of common shares outstanding - diluted
|
19,466,865
|
|
18,213,533
|
|
|
19,004,087
|
|
18,199,959
|
|
||||
Cash dividends declared
|
$
|
5,472
|
|
$
|
4,020
|
|
|
$
|
15,709
|
|
$
|
11,299
|
|
Cash dividends declared per common share
|
$
|
0.28
|
|
$
|
0.22
|
|
|
$
|
0.82
|
|
$
|
0.62
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
(Dollars in thousands)
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Net income
|
$
|
12,725
|
|
$
|
10,895
|
|
|
$
|
32,358
|
|
$
|
29,470
|
|
Other comprehensive income:
|
|
|
|
|
|
||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
||||||||
Gross unrealized holding (loss) gain arising during the period
|
(5,813
|
)
|
(236
|
)
|
|
(18,587
|
)
|
5,448
|
|
||||
Related tax benefit (expense)
|
1,221
|
|
83
|
|
|
3,904
|
|
(1,906
|
)
|
||||
Less: reclassification adjustment for net gain (loss) included in net income
|
—
|
|
1,861
|
|
|
(146
|
)
|
2,219
|
|
||||
Related tax (expense) benefit
|
—
|
|
(652
|
)
|
|
31
|
|
(777
|
)
|
||||
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01 (a)
|
—
|
|
—
|
|
|
(5,020
|
)
|
—
|
|
||||
Related tax benefit
|
—
|
|
—
|
|
|
1,054
|
|
—
|
|
||||
Net effect on other comprehensive (loss) income
|
(4,592
|
)
|
(1,362
|
)
|
|
(18,534
|
)
|
2,100
|
|
||||
Defined benefit plans:
|
|
|
|
|
|
||||||||
Net gain (loss) arising during the period
|
1,177
|
|
(1
|
)
|
|
1,177
|
|
(1
|
)
|
||||
Related tax expense
|
(247
|
)
|
—
|
|
|
(247
|
)
|
—
|
|
||||
Amortization of unrecognized loss and service cost on benefit plans
|
28
|
|
25
|
|
|
80
|
|
72
|
|
||||
Related tax expense
|
(6
|
)
|
(9
|
)
|
|
(17
|
)
|
(25
|
)
|
||||
Recognition of loss due to settlement and curtailment
|
176
|
|
—
|
|
|
176
|
|
—
|
|
||||
Related tax expense
|
(37
|
)
|
—
|
|
|
(37
|
)
|
—
|
|
||||
Net effect on other comprehensive income
|
1,091
|
|
15
|
|
|
1,132
|
|
46
|
|
||||
Cash flow hedges:
|
|
|
|
|
|
||||||||
Net gain (loss) arising during the period
|
651
|
|
(63
|
)
|
|
2,566
|
|
(832
|
)
|
||||
Related tax (expense) benefit
|
(137
|
)
|
22
|
|
|
(539
|
)
|
291
|
|
||||
Net effect on other comprehensive income (loss)
|
514
|
|
(41
|
)
|
|
2,027
|
|
(541
|
)
|
||||
Total other comprehensive (loss) income, net of tax expense
|
(2,987
|
)
|
(1,388
|
)
|
|
(15,375
|
)
|
1,605
|
|
||||
Total comprehensive income
|
$
|
9,738
|
|
$
|
9,507
|
|
|
$
|
16,983
|
|
$
|
31,075
|
|
|
|
|
Accumulated Other Comprehensive Loss
|
|
Total Stockholders' Equity
|
||||||||||
|
Common Stock
|
Retained Earnings
|
Treasury Stock
|
||||||||||||
(Dollars in thousands)
|
|||||||||||||||
Balance, December 31, 2017
|
$
|
345,412
|
|
$
|
134,362
|
|
$
|
(5,215
|
)
|
$
|
(15,967
|
)
|
$
|
458,592
|
|
Amounts reclassified out of retained earnings, net of tax, per ASU 2014-09
|
—
|
|
(3,055
|
)
|
—
|
|
—
|
|
(3,055
|
)
|
|||||
Net income
|
—
|
|
32,358
|
|
—
|
|
—
|
|
32,358
|
|
|||||
Other comprehensive income (loss), net of tax
|
—
|
|
5,020
|
|
(15,375
|
)
|
—
|
|
(10,355
|
)
|
|||||
Cash dividends declared
|
—
|
|
(15,709
|
)
|
—
|
|
—
|
|
(15,709
|
)
|
|||||
Exercise of stock appreciation rights
|
(2
|
)
|
—
|
|
—
|
|
2
|
|
—
|
|
|||||
Reissuance of treasury stock for common share awards
|
(2,674
|
)
|
—
|
|
—
|
|
2,674
|
|
—
|
|
|||||
Reissuance of treasury stock for deferred compensation plan for Boards of Directors
|
—
|
|
—
|
|
—
|
|
46
|
|
46
|
|
|||||
Repurchase of treasury stock in connection with employee incentive plan and under compensation plan for Boards of Directors
|
—
|
|
—
|
|
—
|
|
(1,271
|
)
|
(1,271
|
)
|
|||||
Common shares issued under dividend reinvestment plan
|
497
|
|
—
|
|
—
|
|
—
|
|
497
|
|
|||||
Common shares issued under compensation plan for Boards of Directors
|
85
|
|
—
|
|
—
|
|
157
|
|
242
|
|
|||||
Common shares issued under employee stock purchase plan
|
68
|
|
—
|
|
—
|
|
121
|
|
189
|
|
|||||
Stock-based compensation expense
|
1,858
|
|
—
|
|
—
|
|
—
|
|
1,858
|
|
|||||
Issuance of common shares related to acquisition of ASB Financial Corp. ("ASB")
|
40,898
|
|
—
|
|
—
|
|
—
|
|
40,898
|
|
|||||
Balance, September 30, 2018
|
$
|
386,142
|
|
$
|
152,976
|
|
$
|
(20,590
|
)
|
$
|
(14,238
|
)
|
$
|
504,290
|
|
|
Nine Months Ended
|
|||||
|
September 30,
|
|||||
(Dollars in thousands)
|
2018
|
2017
|
||||
Net cash provided by operating activities
|
$
|
50,263
|
|
$
|
45,852
|
|
Investing activities:
|
|
|
||||
Available-for-sale investment securities:
|
|
|
||||
Purchases
|
(120,492
|
)
|
(140,791
|
)
|
||
Proceeds from sales
|
14,489
|
|
7,381
|
|
||
Proceeds from principal payments, calls and prepayments
|
93,336
|
|
111,315
|
|
||
Held-to-maturity investment securities:
|
|
|
||||
Purchases
|
—
|
|
(1,310
|
)
|
||
Proceeds from principal payments
|
3,521
|
|
1,997
|
|
||
Other investment securities:
|
|
|
||||
Purchases
|
(2,547
|
)
|
—
|
|
||
Proceeds from sales
|
7,544
|
|
—
|
|
||
Net increase in loans held for investment
|
(113,433
|
)
|
(99,829
|
)
|
||
Net expenditures for bank premises and equipment
|
(3,660
|
)
|
(3,016
|
)
|
||
Proceeds from sales of other real estate owned
|
265
|
|
494
|
|
||
Business acquisitions, net of cash received
|
4,695
|
|
(450
|
)
|
||
(Investment in) return of limited partnership and tax credit funds
|
(5,399
|
)
|
6
|
|
||
Net cash used in investing activities
|
(121,681
|
)
|
(124,203
|
)
|
||
Financing activities:
|
|
|
|
|
||
Net increase (decrease) in non-interest-bearing deposits
|
31,950
|
|
(9,575
|
)
|
||
Net increase in interest-bearing deposits
|
79,761
|
|
164,513
|
|
||
Net increase (decrease) in short-term borrowings
|
2,515
|
|
(111,890
|
)
|
||
Proceeds from long-term borrowings
|
—
|
|
54,403
|
|
||
Payments on long-term borrowings
|
(3,092
|
)
|
(3,823
|
)
|
||
Cash dividends paid
|
(15,266
|
)
|
(10,855
|
)
|
||
Repurchase of treasury stock in connection with employee incentive plan and compensation plan for Boards of Directors to be held as treasury stock
|
(1,271
|
)
|
(411
|
)
|
||
Proceeds from issuance of common shares
|
24
|
|
8
|
|
||
Contingent consideration payments made after a business combination
|
(224
|
)
|
(122
|
)
|
||
Net cash provided by financing activities
|
94,397
|
|
82,248
|
|
||
Net increase in cash and cash equivalents
|
22,979
|
|
3,897
|
|
||
Cash and cash equivalents at beginning of period
|
72,194
|
|
66,146
|
|
||
Cash and cash equivalents at end of period
|
$
|
95,173
|
|
$
|
70,043
|
|
•
|
optional practical expedient that affects entities with land easements that existed or expired before the adoption,
|
•
|
a rate implicit in the lease of zero should be used when applying the definition,
|
•
|
requirements about lease classification reassessments related to modified terms and conditions,
|
•
|
accounting for the exercise by a lessee of an option to extend or terminate the lease or to purchase,
|
•
|
re-measurement of variable lease payments using the index or rate at the measurement date,
|
•
|
period covered by a lessor-only option to terminate the lease is included in the lease term,
|
•
|
operating leases acquired as part of a previous business combination classified as direct financing leases or sales-type leases,
|
•
|
adjustments to earnings rather than equity when applying retrospectively to prior reporting period, and
|
•
|
determining loss allowance of the net investment in the lease, including cash flow.
|
|
Recurring Fair Value Measurements at Reporting Date
|
||||||||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
|
|||||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
||||||||||||
Obligations of:
|
|
|
|
|
|
|
|
||||||||||||
States and political subdivisions
|
$
|
—
|
|
$
|
93,790
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
101,569
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
—
|
|
688,656
|
|
—
|
|
|
—
|
|
673,664
|
|
—
|
|
||||||
Commercial mortgage-backed securities
|
—
|
|
6,713
|
|
—
|
|
|
—
|
|
6,976
|
|
—
|
|
||||||
Bank-issued trust preferred securities
|
—
|
|
4,166
|
|
—
|
|
|
—
|
|
5,129
|
|
—
|
|
||||||
Equity investment securities (a)
|
—
|
|
—
|
|
—
|
|
|
7,694
|
|
155
|
|
—
|
|
||||||
Total available-for-sale securities
|
—
|
|
793,325
|
|
—
|
|
|
7,694
|
|
787,493
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Held-to-maturity investment securities:
|
|
|
|
|
|
|
|
||||||||||||
Obligations of:
|
|
|
|
|
|
|
|
||||||||||||
States and political subdivisions
|
$
|
—
|
|
$
|
4,889
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
4,417
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
—
|
|
28,718
|
|
—
|
|
|
—
|
|
32,227
|
|
—
|
|
||||||
Commercial mortgage-backed securities
|
—
|
|
3,488
|
|
—
|
|
|
—
|
|
4,569
|
|
—
|
|
||||||
Total held-to-maturity securities
|
—
|
|
37,095
|
|
—
|
|
|
—
|
|
41,213
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Equity investment securities (a)
|
104
|
|
174
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
||||||
Loans held for sale
|
—
|
|
4,776
|
|
—
|
|
|
—
|
|
2,510
|
|
—
|
|
||||||
Derivative assets (b)
|
—
|
|
8,766
|
|
—
|
|
|
—
|
|
4,594
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities (c)
|
$
|
—
|
|
$
|
4,871
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
3,241
|
|
$
|
—
|
|
|
Non-Recurring Fair Value Measurements at Reporting Date
|
||||||||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||
(Dollars in thousands)
|
Level 1
|
Level 2
|
Level 3
|
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
|
|||||||||||||||||||
Impaired loans
|
$
|
—
|
|
$
|
—
|
|
$
|
25,038
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
20,602
|
|
Other real estate owned (OREO)
|
—
|
|
—
|
|
106
|
|
|
—
|
|
—
|
|
208
|
|
|
Fair Value Measurements of Other Financial Instruments
|
|||||||||||||
(Dollars in thousands)
|
Fair Value Hierarchy Level
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
Carrying Amount
|
Fair Value
|
|
Carrying Amount
|
Fair Value
|
||||||||||
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
1
|
$
|
95,173
|
|
$
|
95,173
|
|
|
$
|
72,194
|
|
$
|
72,194
|
|
Other investment securities:
|
|
|
|
|
|
|
||||||||
Federal Home Loan Bank ("FHLB") stock
|
2
|
29,368
|
|
29,368
|
|
|
28,132
|
|
28,132
|
|
||||
Federal Reserve Bank ("FRB") stock
|
2
|
12,294
|
|
12,294
|
|
|
10,179
|
|
10,179
|
|
||||
Nonqualified deferred compensation (a)
|
2
|
1,044
|
|
1,044
|
|
|
—
|
|
—
|
|
||||
Federal Home Loan Mortgage Corp ("FHLMC") stock
|
2
|
60
|
|
60
|
|
|
60
|
|
60
|
|
||||
Total other investment securities
|
|
42,766
|
|
42,766
|
|
|
38,371
|
|
38,371
|
|
||||
Loans, net of deferred fees and costs
|
3
|
2,687,848
|
|
2,780,292
|
|
|
2,338,344
|
|
2,274,194
|
|
||||
Bank owned life insurance
|
3
|
68,439
|
|
68,439
|
|
|
62,176
|
|
62,176
|
|
||||
Bank premises and equipment, net of accumulated depreciation
|
3
|
57,527
|
|
57,527
|
|
|
52,510
|
|
52,510
|
|
||||
Servicing rights (b)
|
3
|
2,682
|
|
2,682
|
|
|
2,305
|
|
2,305
|
|
||||
Liabilities:
|
|
|
|
|
|
|
||||||||
Deposits
|
2
|
$
|
3,041,123
|
|
$
|
3,029,072
|
|
|
$
|
2,730,330
|
|
$
|
2,730,071
|
|
Short-term borrowings
|
2
|
296,830
|
|
295,542
|
|
|
209,491
|
|
209,628
|
|
||||
Long-term borrowings
|
2
|
111,099
|
|
101,779
|
|
|
144,019
|
|
142,108
|
|
(Dollars in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||
September 30, 2018
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
States and political subdivisions
|
$
|
94,014
|
|
$
|
585
|
|
$
|
(809
|
)
|
$
|
93,790
|
|
Residential mortgage-backed securities
|
714,360
|
|
1,558
|
|
(27,262
|
)
|
688,656
|
|
||||
Commercial mortgage-backed securities
|
6,861
|
|
—
|
|
(148
|
)
|
6,713
|
|
||||
Bank-issued trust preferred securities
|
4,196
|
|
132
|
|
(162
|
)
|
4,166
|
|
||||
Total available-for-sale securities
|
$
|
819,431
|
|
$
|
2,275
|
|
$
|
(28,381
|
)
|
$
|
793,325
|
|
December 31, 2017
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
States and political subdivisions
|
$
|
100,039
|
|
$
|
1,786
|
|
$
|
(256
|
)
|
$
|
101,569
|
|
Residential mortgage-backed securities
|
684,100
|
|
2,582
|
|
(13,018
|
)
|
673,664
|
|
||||
Commercial mortgage-backed securities
|
7,004
|
|
11
|
|
(39
|
)
|
6,976
|
|
||||
Bank-issued trust preferred securities
|
5,195
|
|
141
|
|
(207
|
)
|
5,129
|
|
||||
Equity investment securities (a)
|
1,394
|
|
6,520
|
|
(65
|
)
|
7,849
|
|
||||
Total available-for-sale securities
|
$
|
797,732
|
|
$
|
11,040
|
|
$
|
(13,585
|
)
|
$
|
795,187
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
(Dollars in thousands)
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Gross gains realized
|
$
|
—
|
|
$
|
1,877
|
|
|
$
|
5
|
|
$
|
2,235
|
|
Gross losses realized
|
—
|
|
16
|
|
|
151
|
|
16
|
|
||||
Net gain (loss) realized
|
$
|
—
|
|
$
|
1,861
|
|
|
$
|
(146
|
)
|
$
|
2,219
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
Fair
Value
|
Unrealized Loss
|
No. of Securities
|
|
Fair
Value
|
Unrealized Loss
|
No. of Securities
|
|
Fair
Value
|
Unrealized Loss
|
||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Obligations of:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
States and political subdivisions
|
$
|
30,112
|
|
$
|
224
|
|
52
|
|
|
$
|
9,480
|
|
$
|
585
|
|
6
|
|
|
$
|
39,592
|
|
$
|
809
|
|
Residential mortgage-backed securities
|
224,049
|
|
5,503
|
|
113
|
|
|
405,124
|
|
21,759
|
|
128
|
|
|
629,173
|
|
27,262
|
|
||||||
Commercial mortgage-backed securities
|
3,127
|
|
44
|
|
1
|
|
|
3,587
|
|
104
|
|
2
|
|
|
6,714
|
|
148
|
|
||||||
Bank-issued trust preferred securities
|
—
|
|
—
|
|
—
|
|
|
1,838
|
|
162
|
|
2
|
|
|
1,838
|
|
162
|
|
||||||
Total
|
$
|
257,288
|
|
$
|
5,771
|
|
166
|
|
|
$
|
420,029
|
|
$
|
22,610
|
|
138
|
|
|
$
|
677,317
|
|
$
|
28,381
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Obligations of:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
States and political subdivisions
|
$
|
16,985
|
|
$
|
89
|
|
18
|
|
|
$
|
5,308
|
|
$
|
167
|
|
1
|
|
|
$
|
22,293
|
|
$
|
256
|
|
Residential mortgage-backed securities
|
274,998
|
|
3,462
|
|
77
|
|
|
291,812
|
|
9,556
|
|
88
|
|
|
566,810
|
|
13,018
|
|
||||||
Commercial mortgage-backed securities
|
2,487
|
|
23
|
|
1
|
|
|
1,274
|
|
16
|
|
1
|
|
|
3,761
|
|
39
|
|
||||||
Bank-issued trust preferred securities
|
—
|
|
—
|
|
—
|
|
|
2,792
|
|
207
|
|
3
|
|
|
2,792
|
|
207
|
|
||||||
Equity investment securities (a)
|
276
|
|
1
|
|
1
|
|
|
112
|
|
64
|
|
1
|
|
|
388
|
|
65
|
|
||||||
Total
|
$
|
294,746
|
|
$
|
3,575
|
|
97
|
|
|
$
|
301,298
|
|
$
|
10,010
|
|
94
|
|
|
$
|
596,044
|
|
$
|
13,585
|
|
(Dollars in thousands)
|
Within 1 Year
|
1 to 5 Years
|
5 to 10 Years
|
Over 10 Years
|
Total
|
||||||||||
Amortized cost
|
|
|
|
|
|
||||||||||
Obligations of:
|
|
|
|
|
|
||||||||||
States and political subdivisions
|
$
|
714
|
|
$
|
12,538
|
|
$
|
26,289
|
|
$
|
54,473
|
|
$
|
94,014
|
|
Residential mortgage-backed securities
|
994
|
|
12,898
|
|
46,292
|
|
654,176
|
|
714,360
|
|
|||||
Commercial mortgage-backed securities
|
—
|
|
5,678
|
|
—
|
|
1,183
|
|
6,861
|
|
|||||
Bank-issued trust preferred securities
|
—
|
|
—
|
|
4,196
|
|
—
|
|
4,196
|
|
|||||
Total available-for-sale securities
|
$
|
1,708
|
|
$
|
31,114
|
|
$
|
76,777
|
|
$
|
709,832
|
|
$
|
819,431
|
|
Fair value
|
|
|
|
|
|
||||||||||
Obligations of:
|
|
|
|
|
|
||||||||||
States and political subdivisions
|
$
|
713
|
|
$
|
12,489
|
|
$
|
26,184
|
|
$
|
54,404
|
|
$
|
93,790
|
|
Residential mortgage-backed securities
|
990
|
|
12,590
|
|
44,656
|
|
630,420
|
|
688,656
|
|
|||||
Commercial mortgage-backed securities
|
—
|
|
5,548
|
|
—
|
|
1,165
|
|
6,713
|
|
|||||
Bank-issued trust preferred securities
|
—
|
|
—
|
|
4,166
|
|
—
|
|
4,166
|
|
|||||
Total available-for-sale securities
|
$
|
1,703
|
|
$
|
30,627
|
|
$
|
75,006
|
|
$
|
685,989
|
|
$
|
793,325
|
|
Total weighted-average yield
|
2.52
|
%
|
2.78
|
%
|
3.38
|
%
|
2.84
|
%
|
2.88
|
%
|
(Dollars in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||
September 30, 2018
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
States and political subdivisions
|
$
|
4,451
|
|
$
|
438
|
|
$
|
—
|
|
$
|
4,889
|
|
Residential mortgage-backed securities
|
29,765
|
|
79
|
|
(1,126
|
)
|
28,718
|
|
||||
Commercial mortgage-backed securities
|
3,574
|
|
—
|
|
(86
|
)
|
3,488
|
|
||||
Total held-to-maturity securities
|
$
|
37,790
|
|
$
|
517
|
|
$
|
(1,212
|
)
|
$
|
37,095
|
|
December 31, 2017
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
States and political subdivisions
|
$
|
3,810
|
|
$
|
607
|
|
$
|
—
|
|
$
|
4,417
|
|
Residential mortgage-backed securities
|
32,487
|
|
269
|
|
(529
|
)
|
32,227
|
|
||||
Commercial mortgage-backed securities
|
4,631
|
|
—
|
|
(62
|
)
|
4,569
|
|
||||
Total held-to-maturity securities
|
$
|
40,928
|
|
$
|
876
|
|
$
|
(591
|
)
|
$
|
41,213
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
Fair
Value
|
Unrealized Loss
|
No. of Securities
|
|
Fair
Value
|
Unrealized Loss
|
No. of Securities
|
|
Fair
Value
|
Unrealized Loss
|
||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage-backed securities
|
$
|
11,826
|
|
$
|
182
|
|
6
|
|
|
$
|
11,260
|
|
$
|
944
|
|
3
|
|
|
$
|
23,086
|
|
$
|
1,126
|
|
Commercial mortgage-backed securities
|
—
|
|
—
|
|
—
|
|
|
3,488
|
|
86
|
|
1
|
|
|
3,488
|
|
86
|
|
||||||
Total
|
$
|
11,826
|
|
$
|
182
|
|
6
|
|
|
$
|
14,748
|
|
$
|
1,030
|
|
4
|
|
|
$
|
26,574
|
|
$
|
1,212
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage-backed securities
|
$
|
1,476
|
|
$
|
4
|
|
2
|
|
|
$
|
12,098
|
|
$
|
525
|
|
3
|
|
|
$
|
13,574
|
|
$
|
529
|
|
Commercial mortgage-backed securities
|
—
|
|
—
|
|
—
|
|
|
4,569
|
|
62
|
|
1
|
|
|
4,569
|
|
62
|
|
||||||
Total
|
$
|
1,476
|
|
$
|
4
|
|
2
|
|
|
$
|
16,667
|
|
$
|
587
|
|
4
|
|
|
$
|
18,143
|
|
$
|
591
|
|
(Dollars in thousands)
|
Within 1 Year
|
1 to 5 Years
|
5 to 10 Years
|
Over 10 Years
|
Total
|
||||||||||
Amortized cost
|
|
|
|
|
|
||||||||||
Obligations of:
|
|
|
|
|
|
||||||||||
States and political subdivisions
|
$
|
—
|
|
$
|
309
|
|
$
|
2,982
|
|
$
|
1,160
|
|
$
|
4,451
|
|
Residential mortgage-backed securities
|
—
|
|
428
|
|
8,060
|
|
21,277
|
|
29,765
|
|
|||||
Commercial mortgage-backed securities
|
—
|
|
—
|
|
—
|
|
3,574
|
|
3,574
|
|
|||||
Total held-to-maturity securities
|
$
|
—
|
|
$
|
737
|
|
$
|
11,042
|
|
$
|
26,011
|
|
$
|
37,790
|
|
Fair value
|
|
|
|
|
|
||||||||||
Obligations of:
|
|
|
|
|
|
||||||||||
States and political subdivisions
|
$
|
—
|
|
$
|
309
|
|
$
|
3,410
|
|
$
|
1,170
|
|
$
|
4,889
|
|
Residential mortgage-backed securities
|
—
|
|
415
|
|
8,028
|
|
20,275
|
|
28,718
|
|
|||||
Commercial mortgage-backed securities
|
—
|
|
—
|
|
—
|
|
3,488
|
|
3,488
|
|
|||||
Total held-to-maturity securities
|
$
|
—
|
|
$
|
724
|
|
$
|
11,438
|
|
$
|
24,933
|
|
$
|
37,095
|
|
Total weighted-average yield
|
—
|
%
|
2.97
|
%
|
3.08
|
%
|
2.70
|
%
|
2.82
|
%
|
(Dollars in thousands)
|
September 30, 2018
|
December 31, 2017
|
||||
FHLB stock
|
$
|
29,368
|
|
$
|
28,132
|
|
FRB stock
|
12,294
|
|
10,179
|
|
||
Equity investment securities (a)
|
278
|
|
—
|
|
||
Other
|
1,104
|
|
60
|
|
||
Total other investment securities
|
$
|
43,044
|
|
$
|
38,371
|
|
(Dollars in thousands)
|
September 30,
2018 |
December 31, 2017
|
||||
Originated loans:
|
|
|
||||
Commercial real estate, construction
|
$
|
103,562
|
|
$
|
107,118
|
|
Commercial real estate, other
|
630,720
|
|
595,447
|
|
||
Commercial real estate
|
734,282
|
|
702,565
|
|
||
Commercial and industrial
|
510,591
|
|
438,051
|
|
||
Residential real estate
|
299,768
|
|
304,523
|
|
||
Home equity lines of credit
|
92,892
|
|
88,902
|
|
||
Consumer, indirect
|
396,701
|
|
340,390
|
|
||
Consumer, direct
|
72,601
|
|
67,010
|
|
||
Consumer
|
469,302
|
|
407,400
|
|
||
Deposit account overdrafts
|
649
|
|
849
|
|
||
Total originated loans
|
$
|
2,107,484
|
|
$
|
1,942,290
|
|
Acquired loans:
|
|
|
||||
Commercial real estate, construction
|
$
|
13,050
|
|
$
|
8,319
|
|
Commercial real estate, other
|
191,993
|
|
165,120
|
|
||
Commercial real estate
|
205,043
|
|
173,439
|
|
||
Commercial and industrial
|
41,188
|
|
34,493
|
|
||
Residential real estate
|
308,178
|
|
184,864
|
|
||
Home equity lines of credit
|
42,961
|
|
20,575
|
|
||
Consumer, indirect
|
161
|
|
329
|
|
||
Consumer, direct
|
2,712
|
|
1,147
|
|
||
Consumer
|
2,873
|
|
1,476
|
|
||
Total acquired loans
|
$
|
600,243
|
|
$
|
414,847
|
|
Loans, net of deferred fees and costs
|
$
|
2,707,727
|
|
$
|
2,357,137
|
|
(Dollars in thousands)
|
September 30,
2018 |
December 31,
2017 |
||||
Commercial real estate, other
|
$
|
12,812
|
|
$
|
8,117
|
|
Commercial and industrial
|
1,343
|
|
767
|
|
||
Residential real estate
|
20,488
|
|
19,532
|
|
||
Consumer
|
61
|
|
33
|
|
||
Total outstanding balance
|
$
|
34,704
|
|
$
|
28,449
|
|
Net carrying amount
|
$
|
23,639
|
|
$
|
19,564
|
|
(Dollars in thousands)
|
September 30,
2018 |
September 30,
2017 |
||||
Balance, beginning of period
|
$
|
6,704
|
|
$
|
7,132
|
|
Reclassification from nonaccretable to accretable
|
2,019
|
|
1,285
|
|
||
Additions:
|
|
|
||||
ASB Financial Corp. (preliminary)
|
2,047
|
|
—
|
|
||
Accretion
|
(1,392
|
)
|
(1,279
|
)
|
||
Balance, September 30
|
$
|
9,378
|
|
$
|
7,138
|
|
|
Nonaccrual Loans
|
|
Loans 90+ Days Past Due and Accruing
|
||||||||||
(Dollars in thousands)
|
September 30,
2018 |
December 31,
2017 |
|
September 30,
2018 |
December 31,
2017 |
||||||||
Originated loans:
|
|
|
|
|
|
||||||||
Commercial real estate, construction
|
$
|
725
|
|
$
|
754
|
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate, other
|
6,712
|
|
6,877
|
|
|
—
|
|
—
|
|
||||
Commercial real estate
|
7,437
|
|
7,631
|
|
|
—
|
|
—
|
|
||||
Commercial and industrial
|
1,308
|
|
739
|
|
|
—
|
|
—
|
|
||||
Residential real estate
|
3,842
|
|
3,546
|
|
|
373
|
|
548
|
|
||||
Home equity lines of credit
|
582
|
|
550
|
|
|
84
|
|
50
|
|
||||
Consumer, indirect
|
405
|
|
256
|
|
|
—
|
|
—
|
|
||||
Consumer, direct
|
31
|
|
39
|
|
|
—
|
|
16
|
|
||||
Consumer
|
436
|
|
295
|
|
|
—
|
|
16
|
|
||||
Total originated loans
|
$
|
13,605
|
|
$
|
12,761
|
|
|
$
|
457
|
|
$
|
614
|
|
Acquired loans:
|
|
|
|
|
|
||||||||
Commercial real estate, construction
|
$
|
—
|
|
$
|
—
|
|
|
$
|
401
|
|
$
|
—
|
|
Commercial real estate, other
|
225
|
|
192
|
|
|
60
|
|
215
|
|
||||
Commercial real estate
|
225
|
|
192
|
|
|
461
|
|
215
|
|
||||
Commercial and industrial
|
61
|
|
259
|
|
|
—
|
|
45
|
|
||||
Residential real estate
|
1,970
|
|
2,168
|
|
|
965
|
|
730
|
|
||||
Home equity lines of credit
|
374
|
|
312
|
|
|
—
|
|
22
|
|
||||
Consumer, indirect
|
—
|
|
—
|
|
|
2
|
|
—
|
|
||||
Total acquired loans
|
$
|
2,630
|
|
$
|
2,931
|
|
|
$
|
1,428
|
|
$
|
1,012
|
|
Total loans
|
$
|
16,235
|
|
$
|
15,692
|
|
|
$
|
1,885
|
|
$
|
1,626
|
|
|
Loans Past Due
|
|
Current
Loans
|
Total
Loans
|
|||||||||||||||
(Dollars in thousands)
|
30 - 59 days
|
60 - 89 days
|
90 + Days
|
Total
|
|
||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
||||||||||||
Originated loans:
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
—
|
|
$
|
—
|
|
$
|
725
|
|
$
|
725
|
|
|
$
|
102,837
|
|
$
|
103,562
|
|
Commercial real estate, other
|
521
|
|
601
|
|
6,418
|
|
7,540
|
|
|
623,180
|
|
630,720
|
|
||||||
Commercial real estate
|
521
|
|
601
|
|
7,143
|
|
8,265
|
|
|
726,017
|
|
734,282
|
|
||||||
Commercial and industrial
|
624
|
|
865
|
|
988
|
|
2,477
|
|
|
508,114
|
|
510,591
|
|
||||||
Residential real estate
|
826
|
|
2,544
|
|
2,126
|
|
5,496
|
|
|
294,272
|
|
299,768
|
|
||||||
Home equity lines of credit
|
320
|
|
62
|
|
410
|
|
792
|
|
|
92,100
|
|
92,892
|
|
||||||
Consumer, indirect
|
2,308
|
|
222
|
|
220
|
|
2,750
|
|
|
393,951
|
|
396,701
|
|
||||||
Consumer, direct
|
289
|
|
5
|
|
20
|
|
314
|
|
|
72,287
|
|
72,601
|
|
||||||
Consumer
|
2,597
|
|
227
|
|
240
|
|
3,064
|
|
|
466,238
|
|
469,302
|
|
||||||
Deposit account overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
|
649
|
|
649
|
|
||||||
Total originated loans
|
$
|
4,888
|
|
$
|
4,299
|
|
$
|
10,907
|
|
$
|
20,094
|
|
|
$
|
2,087,390
|
|
$
|
2,107,484
|
|
Acquired loans:
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
9
|
|
$
|
—
|
|
$
|
401
|
|
$
|
410
|
|
|
$
|
12,640
|
|
$
|
13,050
|
|
Commercial real estate, other
|
1,318
|
|
136
|
|
140
|
|
1,594
|
|
|
190,399
|
|
191,993
|
|
||||||
Commercial real estate
|
1,327
|
|
136
|
|
541
|
|
2,004
|
|
|
203,039
|
|
205,043
|
|
||||||
Commercial and industrial
|
1,263
|
|
15
|
|
20
|
|
1,298
|
|
|
39,890
|
|
41,188
|
|
||||||
Residential real estate
|
1,382
|
|
1,215
|
|
1,963
|
|
4,560
|
|
|
303,618
|
|
308,178
|
|
||||||
Home equity lines of credit
|
572
|
|
107
|
|
210
|
|
889
|
|
|
42,072
|
|
42,961
|
|
||||||
Consumer, indirect
|
5
|
|
—
|
|
2
|
|
7
|
|
|
154
|
|
161
|
|
||||||
Consumer, direct
|
19
|
|
12
|
|
—
|
|
31
|
|
|
2,681
|
|
2,712
|
|
||||||
Consumer
|
24
|
|
12
|
|
2
|
|
38
|
|
|
2,835
|
|
2,873
|
|
||||||
Total acquired loans
|
$
|
4,568
|
|
$
|
1,485
|
|
$
|
2,736
|
|
$
|
8,789
|
|
|
$
|
591,454
|
|
$
|
600,243
|
|
Total loans
|
$
|
9,456
|
|
$
|
5,784
|
|
$
|
13,643
|
|
$
|
28,883
|
|
|
$
|
2,678,844
|
|
$
|
2,707,727
|
|
|
Loans Past Due
|
|
Current
Loans
|
Total
Loans
|
|||||||||||||||
(Dollars in thousands)
|
30 - 59 days
|
60 - 89 days
|
90 + Days
|
Total
|
|
||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||||||
Originated loans:
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
107,118
|
|
$
|
107,118
|
|
Commercial real estate, other
|
990
|
|
—
|
|
6,492
|
|
7,482
|
|
|
587,965
|
|
595,447
|
|
||||||
Commercial real estate
|
990
|
|
—
|
|
6,492
|
|
7,482
|
|
|
695,083
|
|
702,565
|
|
||||||
Commercial and industrial
|
1,423
|
|
92
|
|
706
|
|
2,221
|
|
|
435,830
|
|
438,051
|
|
||||||
Residential real estate
|
4,562
|
|
1,234
|
|
2,408
|
|
8,204
|
|
|
296,319
|
|
304,523
|
|
||||||
Home equity lines of credit
|
502
|
|
80
|
|
395
|
|
977
|
|
|
87,925
|
|
88,902
|
|
||||||
Consumer, indirect
|
2,153
|
|
648
|
|
105
|
|
2,906
|
|
|
337,484
|
|
340,390
|
|
||||||
Consumer, direct
|
417
|
|
46
|
|
48
|
|
511
|
|
|
66,499
|
|
67,010
|
|
||||||
Consumer
|
2,570
|
|
694
|
|
153
|
|
3,417
|
|
|
403,983
|
|
407,400
|
|
||||||
Deposit account overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
|
849
|
|
849
|
|
||||||
Total originated loans
|
$
|
10,047
|
|
$
|
2,100
|
|
$
|
10,154
|
|
$
|
22,301
|
|
|
$
|
1,919,989
|
|
$
|
1,942,290
|
|
Acquired loans:
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
8,319
|
|
$
|
8,319
|
|
Commercial real estate, other
|
775
|
|
948
|
|
312
|
|
2,035
|
|
|
163,085
|
|
165,120
|
|
||||||
Commercial real estate
|
775
|
|
948
|
|
312
|
|
2,035
|
|
|
171,404
|
|
173,439
|
|
||||||
Commercial and industrial
|
—
|
|
1
|
|
171
|
|
172
|
|
|
34,321
|
|
34,493
|
|
||||||
Residential real estate
|
4,656
|
|
1,391
|
|
1,910
|
|
7,957
|
|
|
176,907
|
|
184,864
|
|
||||||
Home equity lines of credit
|
126
|
|
—
|
|
301
|
|
427
|
|
|
20,148
|
|
20,575
|
|
||||||
Consumer, indirect
|
3
|
|
—
|
|
—
|
|
3
|
|
|
326
|
|
329
|
|
||||||
Consumer, direct
|
10
|
|
11
|
|
—
|
|
21
|
|
|
1,126
|
|
1,147
|
|
||||||
Consumer
|
13
|
|
11
|
|
—
|
|
24
|
|
|
1,452
|
|
1,476
|
|
||||||
Total acquired loans
|
$
|
5,570
|
|
$
|
2,351
|
|
$
|
2,694
|
|
$
|
10,615
|
|
|
$
|
404,232
|
|
$
|
414,847
|
|
Total loans
|
$
|
15,617
|
|
$
|
4,451
|
|
$
|
12,848
|
|
$
|
32,916
|
|
|
$
|
2,324,221
|
|
$
|
2,357,137
|
|
|
Pass Rated
(Grades 1 - 4)
|
Special Mention
(Grade 5)
|
Substandard
(Grade 6)
|
Doubtful (Grade 7)
|
Not
Rated
|
Total
Loans
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
||||||||||||
Originated loans:
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
101,274
|
|
$
|
—
|
|
$
|
1,496
|
|
$
|
—
|
|
$
|
792
|
|
$
|
103,562
|
|
Commercial real estate, other
|
603,723
|
|
13,992
|
|
13,005
|
|
—
|
|
—
|
|
630,720
|
|
||||||
Commercial real estate
|
704,997
|
|
13,992
|
|
14,501
|
|
—
|
|
792
|
|
734,282
|
|
||||||
Commercial and industrial
|
459,927
|
|
42,036
|
|
8,628
|
|
—
|
|
—
|
|
510,591
|
|
||||||
Residential real estate
|
14,483
|
|
537
|
|
12,506
|
|
294
|
|
271,948
|
|
299,768
|
|
||||||
Home equity lines of credit
|
453
|
|
—
|
|
—
|
|
—
|
|
92,439
|
|
92,892
|
|
||||||
Consumer, indirect
|
45
|
|
—
|
|
—
|
|
—
|
|
396,656
|
|
396,701
|
|
||||||
Consumer, direct
|
39
|
|
—
|
|
—
|
|
—
|
|
72,562
|
|
72,601
|
|
||||||
Consumer
|
84
|
|
—
|
|
—
|
|
—
|
|
469,218
|
|
469,302
|
|
||||||
Deposit account overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
649
|
|
649
|
|
||||||
Total originated loans
|
$
|
1,179,944
|
|
$
|
56,565
|
|
$
|
35,635
|
|
$
|
294
|
|
$
|
835,046
|
|
$
|
2,107,484
|
|
Acquired loans:
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
10,138
|
|
$
|
1,280
|
|
$
|
1,632
|
|
$
|
—
|
|
$
|
—
|
|
$
|
13,050
|
|
Commercial real estate, other
|
175,375
|
|
8,450
|
|
8,070
|
|
98
|
|
—
|
|
191,993
|
|
||||||
Commercial real estate
|
185,513
|
|
9,730
|
|
9,702
|
|
98
|
|
—
|
|
205,043
|
|
||||||
Commercial and industrial
|
38,424
|
|
1,400
|
|
1,364
|
|
—
|
|
—
|
|
41,188
|
|
||||||
Residential real estate
|
18,477
|
|
1,950
|
|
1,825
|
|
140
|
|
285,786
|
|
308,178
|
|
||||||
Home equity lines of credit
|
34
|
|
—
|
|
—
|
|
—
|
|
42,927
|
|
42,961
|
|
||||||
Consumer, indirect
|
4
|
|
—
|
|
—
|
|
—
|
|
157
|
|
161
|
|
||||||
Consumer, direct
|
39
|
|
—
|
|
—
|
|
—
|
|
2,673
|
|
2,712
|
|
||||||
Consumer
|
43
|
|
—
|
|
—
|
|
—
|
|
2,830
|
|
2,873
|
|
||||||
Total acquired loans
|
$
|
242,491
|
|
$
|
13,080
|
|
$
|
12,891
|
|
$
|
238
|
|
$
|
331,543
|
|
$
|
600,243
|
|
Total loans
|
$
|
1,422,435
|
|
$
|
69,645
|
|
$
|
48,526
|
|
$
|
532
|
|
$
|
1,166,589
|
|
$
|
2,707,727
|
|
|
Pass Rated
(Grades 1 - 4)
|
Special Mention
(Grade 5)
|
Substandard
(Grade 6)
|
Doubtful (Grade 7)
|
Not
Rated
|
Total
Loans
|
||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
||||||||||||
Originated loans:
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
100,409
|
|
$
|
5,502
|
|
$
|
754
|
|
$
|
—
|
|
$
|
453
|
|
$
|
107,118
|
|
Commercial real estate, other
|
561,320
|
|
17,189
|
|
16,938
|
|
—
|
|
—
|
|
595,447
|
|
||||||
Commercial real estate
|
661,729
|
|
22,691
|
|
17,692
|
|
—
|
|
453
|
|
702,565
|
|
||||||
Commercial and industrial
|
420,477
|
|
13,062
|
|
4,512
|
|
—
|
|
—
|
|
438,051
|
|
||||||
Residential real estate
|
17,896
|
|
1,000
|
|
11,371
|
|
216
|
|
274,040
|
|
304,523
|
|
||||||
Home equity lines of credit
|
454
|
|
—
|
|
—
|
|
—
|
|
88,448
|
|
88,902
|
|
||||||
Consumer, indirect
|
55
|
|
8
|
|
—
|
|
—
|
|
340,327
|
|
340,390
|
|
||||||
Consumer, direct
|
33
|
|
—
|
|
—
|
|
—
|
|
66,977
|
|
67,010
|
|
||||||
Consumer
|
88
|
|
8
|
|
—
|
|
—
|
|
407,304
|
|
407,400
|
|
||||||
Deposit account overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
849
|
|
849
|
|
||||||
Total originated loans
|
$
|
1,100,644
|
|
$
|
36,761
|
|
$
|
33,575
|
|
$
|
216
|
|
$
|
771,094
|
|
$
|
1,942,290
|
|
Acquired loans:
|
|
|
|
|
|
|
||||||||||||
Commercial real estate, construction
|
$
|
8,267
|
|
$
|
—
|
|
$
|
52
|
|
$
|
—
|
|
$
|
—
|
|
$
|
8,319
|
|
Commercial real estate, other
|
149,486
|
|
6,527
|
|
9,107
|
|
—
|
|
—
|
|
165,120
|
|
||||||
Commercial real estate
|
157,753
|
|
6,527
|
|
9,159
|
|
—
|
|
—
|
|
173,439
|
|
||||||
Commercial and industrial
|
32,011
|
|
157
|
|
2,325
|
|
—
|
|
—
|
|
34,493
|
|
||||||
Residential real estate
|
12,543
|
|
593
|
|
1,105
|
|
—
|
|
170,623
|
|
184,864
|
|
||||||
Home equity lines of credit
|
124
|
|
—
|
|
—
|
|
—
|
|
20,451
|
|
20,575
|
|
||||||
Consumer, indirect
|
12
|
|
—
|
|
—
|
|
—
|
|
317
|
|
329
|
|
||||||
Consumer, direct
|
35
|
|
—
|
|
—
|
|
—
|
|
1,112
|
|
1,147
|
|
||||||
Consumer
|
47
|
|
—
|
|
—
|
|
—
|
|
1,429
|
|
1,476
|
|
||||||
Total acquired loans
|
$
|
202,478
|
|
$
|
7,277
|
|
$
|
12,589
|
|
$
|
—
|
|
$
|
192,503
|
|
$
|
414,847
|
|
Total loans
|
$
|
1,303,122
|
|
$
|
44,038
|
|
$
|
46,164
|
|
$
|
216
|
|
$
|
963,597
|
|
$
|
2,357,137
|
|
|
Unpaid
Principal
Balance
|
Recorded Investment
|
Total
Recorded
Investment
|
|
Average
Recorded
Investment
|
Interest
Income
Recognized
|
|||||||||||||||
|
With
Allowance
|
Without
Allowance
|
Related
Allowance
|
||||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||
September 30, 2018
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate, construction
|
$
|
2,483
|
|
$
|
—
|
|
$
|
2,396
|
|
$
|
2,396
|
|
$
|
—
|
|
$
|
1,571
|
|
$
|
46
|
|
Commercial real estate, other
|
17,119
|
|
269
|
|
15,710
|
|
15,979
|
|
91
|
|
13,795
|
|
349
|
|
|||||||
Commercial real estate
|
19,602
|
|
269
|
|
18,106
|
|
18,375
|
|
91
|
|
15,366
|
|
395
|
|
|||||||
Commercial and industrial
|
2,395
|
|
899
|
|
1,286
|
|
2,185
|
|
191
|
|
2,068
|
|
53
|
|
|||||||
Residential real estate
|
26,732
|
|
234
|
|
24,913
|
|
25,147
|
|
40
|
|
22,724
|
|
898
|
|
|||||||
Home equity lines of credit
|
2,298
|
|
486
|
|
1,784
|
|
2,270
|
|
83
|
|
1,801
|
|
84
|
|
|||||||
Consumer, indirect
|
518
|
|
242
|
|
285
|
|
527
|
|
140
|
|
242
|
|
16
|
|
|||||||
Consumer, direct
|
77
|
|
32
|
|
45
|
|
77
|
|
32
|
|
66
|
|
11
|
|
|||||||
Consumer
|
595
|
|
274
|
|
330
|
|
604
|
|
172
|
|
308
|
|
27
|
|
|||||||
Total
|
$
|
51,622
|
|
$
|
2,162
|
|
$
|
46,419
|
|
$
|
48,581
|
|
$
|
577
|
|
$
|
42,267
|
|
$
|
1,457
|
|
December 31, 2017
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate, construction
|
$
|
821
|
|
$
|
—
|
|
$
|
754
|
|
$
|
754
|
|
$
|
—
|
|
$
|
788
|
|
$
|
—
|
|
Commercial real estate, other
|
14,909
|
|
14
|
|
13,606
|
|
13,620
|
|
1
|
|
14,392
|
|
503
|
|
|||||||
Commercial real estate
|
15,730
|
|
14
|
|
14,360
|
|
14,374
|
|
1
|
|
15,180
|
|
503
|
|
|||||||
Commercial and industrial
|
1,690
|
|
951
|
|
572
|
|
1,523
|
|
199
|
|
1,668
|
|
65
|
|
|||||||
Residential real estate
|
24,743
|
|
477
|
|
22,626
|
|
23,103
|
|
58
|
|
23,195
|
|
1,246
|
|
|||||||
Home equity lines of credit
|
1,707
|
|
81
|
|
1,624
|
|
1,705
|
|
18
|
|
1,505
|
|
85
|
|
|||||||
Consumer, indirect
|
273
|
|
70
|
|
206
|
|
276
|
|
26
|
|
184
|
|
20
|
|
|||||||
Consumer, direct
|
87
|
|
56
|
|
28
|
|
84
|
|
37
|
|
79
|
|
7
|
|
|||||||
Consumer
|
360
|
|
126
|
|
234
|
|
360
|
|
63
|
|
263
|
|
27
|
|
|||||||
Total
|
$
|
44,230
|
|
$
|
1,649
|
|
$
|
39,416
|
|
$
|
41,065
|
|
$
|
339
|
|
$
|
41,811
|
|
$
|
1,926
|
|
(Dollars in thousands)
|
Commercial Real Estate
|
Commercial and Industrial
|
Residential Real Estate
|
Home Equity Lines of Credit
|
Consumer Indirect
|
Consumer Direct
|
Deposit Account Overdrafts
|
Total
|
||||||||||||||||
Balance, January 1, 2018
|
$
|
7,797
|
|
$
|
5,813
|
|
$
|
904
|
|
$
|
693
|
|
$
|
2,944
|
|
$
|
464
|
|
$
|
70
|
|
$
|
18,685
|
|
Charge-offs
|
(849
|
)
|
(38
|
)
|
(293
|
)
|
(67
|
)
|
(1,967
|
)
|
(297
|
)
|
(731
|
)
|
(4,242
|
)
|
||||||||
Recoveries
|
58
|
|
10
|
|
98
|
|
12
|
|
403
|
|
114
|
|
160
|
|
855
|
|
||||||||
Net charge-offs
|
(791
|
)
|
(28
|
)
|
(195
|
)
|
(55
|
)
|
(1,564
|
)
|
(183
|
)
|
(571
|
)
|
(3,387
|
)
|
||||||||
Provision for loan losses
|
960
|
|
353
|
|
290
|
|
70
|
|
2,043
|
|
114
|
|
596
|
|
4,426
|
|
||||||||
Balance, September 30, 2018
|
$
|
7,966
|
|
$
|
6,138
|
|
$
|
999
|
|
$
|
708
|
|
$
|
3,423
|
|
$
|
395
|
|
$
|
95
|
|
$
|
19,724
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans individually evaluated for impairment
|
$
|
91
|
|
$
|
191
|
|
$
|
40
|
|
$
|
83
|
|
$
|
140
|
|
$
|
32
|
|
$
|
—
|
|
$
|
577
|
|
Loans collectively evaluated for impairment
|
7,875
|
|
5,947
|
|
959
|
|
625
|
|
3,283
|
|
363
|
|
95
|
|
19,147
|
|
||||||||
Ending balance
|
$
|
7,966
|
|
$
|
6,138
|
|
$
|
999
|
|
$
|
708
|
|
$
|
3,423
|
|
$
|
395
|
|
$
|
95
|
|
$
|
19,724
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, January 1, 2017
|
$
|
7,172
|
|
$
|
6,353
|
|
$
|
982
|
|
$
|
688
|
|
$
|
2,312
|
|
$
|
518
|
|
$
|
171
|
|
$
|
18,196
|
|
Charge-offs
|
(25
|
)
|
(165
|
)
|
(451
|
)
|
(100
|
)
|
(1,493
|
)
|
(275
|
)
|
(767
|
)
|
(3,276
|
)
|
||||||||
Recoveries
|
135
|
|
1
|
|
128
|
|
9
|
|
598
|
|
152
|
|
159
|
|
1,182
|
|
||||||||
Net recoveries (charge-offs)
|
110
|
|
(164
|
)
|
(323
|
)
|
(91
|
)
|
(895
|
)
|
(123
|
)
|
(608
|
)
|
(2,094
|
)
|
||||||||
Provision for loan losses
|
252
|
|
226
|
|
265
|
|
82
|
|
1,397
|
|
46
|
|
507
|
|
2,775
|
|
||||||||
Balance, September 30, 2017
|
$
|
7,534
|
|
$
|
6,415
|
|
$
|
924
|
|
$
|
679
|
|
$
|
2,814
|
|
$
|
441
|
|
$
|
70
|
|
$
|
18,877
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans individually evaluated for impairment
|
$
|
136
|
|
$
|
424
|
|
$
|
151
|
|
$
|
13
|
|
$
|
2
|
|
$
|
21
|
|
$
|
—
|
|
$
|
747
|
|
Loans collectively evaluated for impairment
|
7,398
|
|
5,991
|
|
773
|
|
666
|
|
2,812
|
|
420
|
|
70
|
|
18,130
|
|
||||||||
Ending balance
|
$
|
7,534
|
|
$
|
6,415
|
|
$
|
924
|
|
$
|
679
|
|
$
|
2,814
|
|
$
|
441
|
|
$
|
70
|
|
$
|
18,877
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(Dollars in thousands)
|
September 30, 2018
|
September 30, 2017
|
|
September 30, 2018
|
September 30, 2017
|
||||||||
Purchased credit impaired loans:
|
|
|
|
|
|
||||||||
Balance, beginning of period
|
$
|
108
|
|
$
|
90
|
|
|
$
|
108
|
|
$
|
233
|
|
Provision for (recovery of) loan losses
|
47
|
|
25
|
|
|
47
|
|
(118
|
)
|
||||
Balance, September 30
|
$
|
155
|
|
$
|
115
|
|
|
$
|
155
|
|
$
|
115
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||
(Dollars in thousands)
|
Balance
|
Weighted-
Average Rate |
|
Balance
|
Weighted-
Average Rate |
||||||
FHLB putable, non-amortizing, fixed-rate advances
|
$
|
85,000
|
|
2.05
|
%
|
|
$
|
115,000
|
|
1.86
|
%
|
FHLB amortizing, fixed-rate advances
|
18,860
|
|
2.09
|
%
|
|
21,939
|
|
2.02
|
%
|
||
Junior subordinated debt securities
|
7,239
|
|
7.34
|
%
|
|
7,107
|
|
6.51
|
%
|
||
Unamortized debt issuance costs
|
—
|
|
—
|
%
|
|
(27
|
)
|
—
|
%
|
||
Total long-term borrowings
|
$
|
111,099
|
|
2.40
|
%
|
|
$
|
144,019
|
|
2.11
|
%
|
(Dollars in thousands)
|
Balance
|
Weighted-Average Rate
|
|||
Three months ending December 31, 2018
|
$
|
1,455
|
|
1.97
|
%
|
Year ending December 31, 2019
|
3,512
|
|
1.56
|
%
|
|
Year ending December 31, 2020
|
25,564
|
|
1.83
|
%
|
|
Year ending December 31, 2021
|
21,979
|
|
1.74
|
%
|
|
Year ending December 31, 2022
|
16,521
|
|
1.95
|
%
|
|
Thereafter
|
42,068
|
|
3.35
|
%
|
|
Total long-term borrowings
|
$
|
111,099
|
|
2.40
|
%
|
|
Common Shares
|
Treasury
Stock
|
||
Shares at December 31, 2017
|
18,952,385
|
|
702,449
|
|
Changes related to stock-based compensation awards:
|
|
|
||
Release of restricted common shares
|
—
|
|
30,808
|
|
Cancellation of restricted common shares
|
—
|
|
1,961
|
|
Exercise of stock appreciation rights
|
—
|
|
(102
|
)
|
Grant of restricted common shares
|
—
|
|
(103,605
|
)
|
Grant of common shares
|
—
|
|
(16,544
|
)
|
Changes related to deferred compensation plan for Boards of Directors:
|
|
|
||
Purchase of treasury stock
|
—
|
|
4,646
|
|
Disbursed out of treasury stock
|
—
|
|
(2,089
|
)
|
Common shares issued under dividend reinvestment plan
|
14,098
|
|
—
|
|
Common shares issued under compensation plan for Boards of Directors
|
—
|
|
(3,088
|
)
|
Common shares issued under employee stock purchase plan
|
—
|
|
(5,186
|
)
|
Issuance of common shares related to the acquisition of ASB Financial Corp.
|
1,152,711
|
|
—
|
|
Shares at September 30, 2018
|
20,119,194
|
|
609,250
|
|
|
2018
|
2017
|
||||
First Quarter
|
$
|
0.26
|
|
$
|
0.20
|
|
Second Quarter
|
0.28
|
|
0.20
|
|
||
Third Quarter
|
0.28
|
|
0.22
|
|
||
Total dividends declared
|
$
|
0.82
|
|
$
|
0.62
|
|
(Dollars in thousands)
|
Unrealized Loss on Securities
|
Unrecognized Net Pension and Postretirement Costs
|
Unrealized Gain on Cash Flow Hedge
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance, December 31, 2017
|
$
|
(2,088
|
)
|
$
|
(4,256
|
)
|
$
|
1,129
|
|
$
|
(5,215
|
)
|
Reclassification adjustments to net income:
|
|
|
|
|
|
|||||||
Realized gain on sale of securities, net of tax
|
115
|
|
—
|
|
—
|
|
115
|
|
||||
Realized loss due to settlement and curtailment, net of tax
|
—
|
|
139
|
|
—
|
|
139
|
|
||||
Amounts reclassified out of accumulated other comprehensive loss per ASU 2016-01
|
(5,020
|
)
|
—
|
|
—
|
|
(5,020
|
)
|
||||
Other comprehensive (loss) income, net of reclassifications and tax
|
(13,629
|
)
|
993
|
|
2,027
|
|
(10,609
|
)
|
||||
Balance, September 30, 2018
|
$
|
(20,622
|
)
|
$
|
(3,124
|
)
|
$
|
3,156
|
|
$
|
(20,590
|
)
|
|
Pension Benefits
|
||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
(Dollars in thousands)
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Interest cost
|
$
|
104
|
|
$
|
112
|
|
|
$
|
314
|
|
$
|
338
|
|
Expected return on plan assets
|
(147
|
)
|
(138
|
)
|
|
(440
|
)
|
(415
|
)
|
||||
Amortization of net loss
|
29
|
|
26
|
|
|
84
|
|
77
|
|
||||
Settlement of benefit obligation
|
176
|
|
—
|
|
|
—
|
|
—
|
|
||||
Net periodic cost
|
$
|
162
|
|
$
|
—
|
|
|
$
|
(42
|
)
|
$
|
—
|
|
|
Postretirement Benefits
|
||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
(Dollars in thousands)
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Interest cost
|
$
|
—
|
|
$
|
1
|
|
|
$
|
2
|
|
$
|
3
|
|
Amortization of net gain
|
(1
|
)
|
(1
|
)
|
|
(4
|
)
|
(5
|
)
|
||||
Net periodic cost
|
$
|
(1
|
)
|
$
|
—
|
|
|
$
|
(2
|
)
|
$
|
(2
|
)
|
|
As of
|
September 30, 2018
|
||||||||||
(Dollars in thousands)
|
December 31,
|
Before
|
Impact of
|
After
|
||||||||
Funded status:
|
2017
|
Settlements
|
Settlement
|
Settlement
|
||||||||
Projected benefit obligation
|
$
|
12,991
|
|
$
|
12,006
|
|
$
|
(510
|
)
|
$
|
11,496
|
|
Fair value of plan assets
|
8,493
|
|
12,006
|
|
(510
|
)
|
11,496
|
|
||||
Funded status
|
$
|
(4,498
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Gross unrealized loss
|
$
|
5,458
|
|
$
|
4,196
|
|
$
|
176
|
|
$
|
4,020
|
|
Assumptions:
|
|
|
|
|
||||||||
Discount rate
|
3.40
|
%
|
4.00
|
%
|
|
4.00
|
%
|
|||||
Expected return on plan assets
|
7.50
|
%
|
7.50
|
%
|
|
7.50
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
(Dollars in thousands, except per common share data)
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Distributed earnings allocated to common shareholders
|
$
|
5,409
|
|
$
|
3,972
|
|
|
$
|
15,532
|
|
$
|
11,184
|
|
Undistributed earnings allocated to common shareholders
|
7,246
|
|
6,865
|
|
|
16,638
|
|
18,134
|
|
||||
Net earnings allocated to common shareholders
|
$
|
12,655
|
|
$
|
10,837
|
|
|
$
|
32,170
|
|
$
|
29,318
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding
|
19,325,457
|
|
18,056,202
|
|
|
18,875,290
|
|
18,043,692
|
|
||||
Effect of potentially dilutive common shares
|
141,408
|
|
157,331
|
|
|
128,797
|
|
156,267
|
|
||||
Total weighted-average diluted common shares outstanding
|
19,466,865
|
|
18,213,533
|
|
|
19,004,087
|
|
18,199,959
|
|
||||
|
|
|
|
|
|
||||||||
Earnings per common share:
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.65
|
|
$
|
0.60
|
|
|
$
|
1.70
|
|
$
|
1.62
|
|
Diluted
|
$
|
0.65
|
|
$
|
0.60
|
|
|
$
|
1.69
|
|
$
|
1.61
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive shares excluded from calculation:
|
|
|
|
|
|
||||||||
Restricted shares, stock options and stock appreciation rights
|
5,541
|
|
163
|
|
|
2,193
|
|
270
|
|
|
|
Number of Common Shares Subject to SARs
|
|
Weighted-
Average
Exercise
Price
|
|
Weighted-Average Remaining Contractual Life
|
|
Aggregate Intrinsic
Value
|
||||||
Outstanding at January 1
|
|
314
|
|
|
$
|
23.77
|
|
|
|
|
|
|||
Exercised
|
|
314
|
|
|
23.77
|
|
|
|
|
|
||||
Outstanding at September 30
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Exercisable at September 30
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
Time-Based Vesting
|
|
Performance-Based Vesting
|
||||||||
|
Number of Common Shares
|
Weighted-Average Grant Date Fair Value
|
|
Number of Common Shares
|
Weighted-Average Grant Date Fair Value
|
||||||
Outstanding at January 1
|
33,082
|
|
$
|
22.85
|
|
|
176,218
|
|
$
|
25.50
|
|
Awarded
|
18,729
|
|
36.70
|
|
|
84,876
|
|
35.43
|
|
||
Released
|
7,000
|
|
24.49
|
|
|
83,311
|
|
23.62
|
|
||
Forfeited
|
—
|
|
—
|
|
|
1,961
|
|
34.39
|
|
||
Outstanding at September 30
|
44,811
|
|
$
|
28.38
|
|
|
175,822
|
|
$
|
31.09
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
(Dollars in thousands)
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Total stock-based compensation expense
|
$
|
564
|
|
$
|
351
|
|
|
$
|
2,174
|
|
$
|
1,362
|
|
Recognized tax benefit
|
(119
|
)
|
(123
|
)
|
|
(457
|
)
|
(477
|
)
|
||||
Net expense recognized
|
$
|
445
|
|
$
|
228
|
|
|
$
|
1,717
|
|
$
|
885
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(Dollars in thousands)
|
September 30, 2018
|
|
September 30, 2018
|
||||
Insurance income:
|
|
|
|
||||
Commission and fees from sale of insurance policies (a)
|
$
|
3,159
|
|
|
$
|
9,541
|
|
Fees related to third-party administration services (a)
|
131
|
|
|
423
|
|
||
Performance-based commissions (b)
|
98
|
|
|
1,448
|
|
||
Trust and investment income (a)
|
3,110
|
|
|
9,410
|
|
||
Electronic banking income:
|
|
|
|
||||
Interchange income (a)
|
2,464
|
|
|
7,248
|
|
||
Promotional and usage income (a)
|
426
|
|
|
1,212
|
|
||
Deposit account service charges:
|
|
|
|
||||
Ongoing maintenance fees for deposit accounts (a)
|
691
|
|
|
2,012
|
|
||
Transactional-based fees (b)
|
1,961
|
|
|
5,148
|
|
||
Commercial loan swap fees (b)
|
355
|
|
|
617
|
|
||
Other non-interest income transactional-based fees (b)
|
228
|
|
|
772
|
|
||
Total
|
$
|
12,623
|
|
|
$
|
37,831
|
|
|
|
|
|
||||
Timing of revenue recognition:
|
|
|
|
||||
Services transferred over time
|
$
|
9,981
|
|
|
$
|
29,846
|
|
Services transferred at a point in time
|
2,642
|
|
|
7,985
|
|
||
Total
|
$
|
12,623
|
|
|
$
|
37,831
|
|
|
At or For the Three Months Ended
|
|
At or For the Nine Months Ended
|
||||||||||||||||
|
September 30, 2018
|
|
September 30, 2018
|
||||||||||||||||
(Dollars in thousands)
|
As Reported
|
Impact of ASC 606
|
Amounts Recognized Under Previous Guidance
|
|
As Reported
|
Impact of ASC 606
|
Amounts Recognized Under Previous Guidance
|
||||||||||||
Non-interest income:
|
|
|
|
|
|
|
|
||||||||||||
Insurance income
|
$
|
3,388
|
|
$
|
101
|
|
$
|
3,287
|
|
|
$
|
11,412
|
|
$
|
146
|
|
$
|
11,266
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||||||
Accrued expenses and other liabilities
|
49,747
|
|
2,940
|
|
46,807
|
|
|
49,747
|
|
2,940
|
|
46,807
|
|
||||||
Stockholders' equity:
|
|
|
|
|
|
|
|
||||||||||||
Retained earnings
|
152,976
|
|
(2,940
|
)
|
155,916
|
|
|
152,976
|
|
(2,940
|
)
|
155,916
|
|
(Dollars in thousands, except per share data)
|
ASB
|
||
Purchase Price
|
|
||
Common shares electing cash consideration
|
31,763
|
|
|
Cash purchase price per share
|
$
|
20.00
|
|
Cash consideration
|
$
|
635
|
|
Common shares electing stock consideration
|
1,947,271
|
|
|
Number of common shares of Peoples issued for each common share of acquired company
|
0.592
|
|
|
Price per Peoples common share, based on closing date
|
$
|
35.48
|
|
Common share consideration
|
$
|
40,898
|
|
Cash in lieu of fractional common shares of Peoples
|
$
|
2
|
|
Total consideration
|
$
|
41,535
|
|
|
|
||
Net Assets at Fair Value
|
|
||
Assets
|
|
||
Total cash and cash equivalents
|
$
|
5,332
|
|
Available-for-sale investment securities
|
18,155
|
|
|
Held-to-maturity investment securities
|
649
|
|
|
Other investment securities
|
1,596
|
|
|
Total investment securities
|
20,400
|
|
|
Loans, net of deferred fees and costs
|
236,628
|
|
|
Loans held for sale
|
2,539
|
|
|
Net loans
|
239,167
|
|
|
Bank premises and equipment, net of accumulated depreciation
|
3,320
|
|
|
Bank owned life insurance
|
4,803
|
|
|
Other intangible assets
|
2,639
|
|
|
Other assets
|
3,481
|
|
|
Total assets
|
$
|
279,142
|
|
Liabilities
|
|
||
Deposits:
|
|
||
Non-interest-bearing
|
$
|
29,487
|
|
Interest-bearing
|
169,142
|
|
|
Total deposits
|
198,629
|
|
|
Short-term borrowings
|
54,824
|
|
|
Accrued expenses and other liabilities
|
2,716
|
|
|
Total liabilities
|
$
|
256,169
|
|
Net assets
|
$
|
22,973
|
|
Goodwill
|
$
|
18,562
|
|
(Dollars in thousands, except per share data)
|
ASB
|
||
Nonimpaired Loans
|
|
||
Contractual cash flows
|
$
|
342,087
|
|
Nonaccretable difference
|
59,967
|
|
|
Expected cash flows
|
282,120
|
|
|
Accretable yield
|
54,029
|
|
|
Fair value
|
$
|
228,091
|
|
Credit Impaired Loans
|
|
||
Contractual cash flows
|
$
|
19,031
|
|
Nonaccretable difference
|
5,908
|
|
|
Expected cash flows
|
13,123
|
|
|
Accretable yield
|
2,047
|
|
|
Fair value
|
$
|
11,076
|
|
|
At or For the Three Months Ended
|
|
At or For the Nine Months Ended
|
||||||||||
|
September 30,
|
|
September 30,
|
||||||||||
|
2018
|
2017
|
|
2018
|
2017
|
||||||||
Per Common Share Data (a)
|
|
|
|
|
|
||||||||
Earnings per common share – basic
|
$
|
0.65
|
|
$
|
0.60
|
|
|
$
|
1.70
|
|
$
|
1.62
|
|
Earnings per common share – diluted
|
0.65
|
|
0.60
|
|
|
1.69
|
|
1.61
|
|
||||
Cash dividends declared per common share
|
0.28
|
|
0.22
|
|
|
0.82
|
|
0.62
|
|
||||
Book value per common share (b)
|
25.79
|
|
25.02
|
|
|
25.79
|
|
25.02
|
|
||||
Tangible book value per common share (b)(c)
|
$
|
17.44
|
|
$
|
17.15
|
|
|
$
|
17.44
|
|
$
|
17.15
|
|
Weighted-average number of common shares outstanding – basic
|
19,325,457
|
|
18,056,202
|
|
|
18,875,290
|
|
18,043,692
|
|
||||
Weighted-average number of common shares outstanding – diluted
|
19,466,865
|
|
18,213,533
|
|
|
19,004,087
|
|
18,199,959
|
|
||||
Common shares outstanding at end of period
|
19,550,014
|
|
18,281,194
|
|
|
19,550,014
|
|
18,281,194
|
|
||||
Closing stock price at end of period
|
$
|
35.03
|
|
$
|
33.59
|
|
|
$
|
35.03
|
|
$
|
33.59
|
|
Significant Ratios (a)
|
|
|
|
|
|
||||||||
Return on average stockholders' equity (d)
|
10.06
|
%
|
9.47
|
%
|
|
8.97
|
%
|
8.80
|
%
|
||||
Return on average tangible stockholders' equity (d)(e)
|
15.73
|
%
|
14.58
|
%
|
|
14.09
|
%
|
13.77
|
%
|
||||
Return on average assets (d)
|
1.26
|
%
|
1.22
|
%
|
|
1.13
|
%
|
1.13
|
%
|
||||
Average stockholders' equity to average assets
|
12.55
|
%
|
12.88
|
%
|
|
12.58
|
%
|
12.81
|
%
|
||||
Average loans to average deposits
|
90.47
|
%
|
86.69
|
%
|
|
89.11
|
%
|
86.09
|
%
|
||||
Net interest margin (d)(f)
|
3.68
|
%
|
3.67
|
%
|
|
3.69
|
%
|
3.61
|
%
|
||||
Efficiency ratio (g)
|
62.58
|
%
|
60.74
|
%
|
|
66.48
|
%
|
62.24
|
%
|
||||
Pre-provision net revenue to total average assets (d)(h)
|
1.67
|
%
|
1.71
|
%
|
|
1.52
|
%
|
1.65
|
%
|
||||
Dividend payout ratio
|
43.00
|
%
|
36.90
|
%
|
|
48.55
|
%
|
38.34
|
%
|
||||
Total investment securities as percentage of total assets (b)
|
21.84
|
%
|
24.70
|
%
|
|
21.84
|
%
|
24.70
|
%
|
||||
Asset Quality Ratios (a)
|
|
|
|
|
|
||||||||
Nonperforming loans as a percent of total loans (b)(i)
|
0.67
|
%
|
0.85
|
%
|
|
0.67
|
%
|
0.85
|
%
|
||||
Nonperforming assets as a percent of total assets (b)(i)
|
0.46
|
%
|
0.56
|
%
|
|
0.46
|
%
|
0.56
|
%
|
||||
Nonperforming assets as a percent of total loans and other real estate owned ("OREO") (b)(i)
|
0.67
|
%
|
0.86
|
%
|
|
0.67
|
%
|
0.86
|
%
|
||||
Criticized loans as a percent of total loans (b)(j)
|
4.38
|
%
|
4.15
|
%
|
|
4.38
|
%
|
4.15
|
%
|
||||
Classified loans as a percent of total loans (b)(k)
|
1.81
|
%
|
1.77
|
%
|
|
1.81
|
%
|
1.77
|
%
|
||||
Allowance for loan losses as a percent of total loans (b)
|
0.73
|
%
|
0.82
|
%
|
|
0.73
|
%
|
0.82
|
%
|
||||
Allowance for loan losses as a percent of nonperforming loans (b)(i)
|
109.71
|
%
|
96.11
|
%
|
|
109.71
|
%
|
96.11
|
%
|
||||
Provision for loan losses as a percent of average total loans
|
0.19
|
%
|
0.19
|
%
|
|
0.23
|
%
|
0.16
|
%
|
||||
Net charge-offs as a percentage of average total loans (d)
|
0.10
|
%
|
0.16
|
%
|
|
0.18
|
%
|
0.12
|
%
|
||||
Capital Information (b)
|
|
|
|
|
|
|
|||||||
Common equity tier 1 capital ratio (l)
|
13.31
|
%
|
13.31
|
%
|
|
13.31
|
%
|
13.31
|
%
|
||||
Tier 1 risk-based capital ratio
|
13.58
|
%
|
13.60
|
%
|
|
13.58
|
%
|
13.60
|
%
|
||||
Total risk-based capital ratio (tier 1 and tier 2)
|
14.30
|
%
|
14.49
|
%
|
|
14.30
|
%
|
14.49
|
%
|
||||
Leverage ratio
|
9.71
|
%
|
9.81
|
%
|
|
9.71
|
%
|
9.81
|
%
|
||||
Common equity tier 1 capital
|
$
|
368,195
|
|
$
|
326,966
|
|
|
$
|
368,195
|
|
$
|
326,966
|
|
Tier 1 capital
|
375,433
|
|
334,027
|
|
|
375,433
|
|
334,027
|
|
||||
Total capital (tier 1 and tier 2)
|
395,313
|
|
355,951
|
|
|
395,313
|
|
355,951
|
|
||||
Total risk-weighted assets
|
$
|
2,765,328
|
|
$
|
2,456,797
|
|
|
$
|
2,765,328
|
|
$
|
2,456,797
|
|
Tangible equity to tangible assets (c)
|
8.88
|
%
|
9.20
|
%
|
|
8.88
|
%
|
9.20
|
%
|
(a)
|
Reflects the impact of the acquisition of ASB beginning April 13, 2018.
|
(b)
|
Data presented as of the end of the period indicated.
|
(c)
|
These amounts represent non-GAAP financial measures since they exclude goodwill and other intangible assets. Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Capital/Stockholders’ Equity.”
|
(d)
|
Ratios are presented on an annualized basis.
|
(e)
|
These amounts represent non-GAAP financial measures since they exclude the after-tax impact of amortization of other intangible assets from earnings and exclude the balance sheet impact of goodwill and other intangible assets acquired through acquisitions on stockholders' equity.
Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Return on Average Tangible Stockholders' Equity Ratio.”
|
(f)
|
Information presented on a fully tax-equivalent basis.
|
(g)
|
These amounts represent non-GAAP financial measures and include total non-interest expense (less amortization of other intangible assets) as a percentage of fully tax-equivalent net interest income plus total non-interest income (excluding all gains and all losses). Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Efficiency Ratio.”
|
(h)
|
These amounts represent non-GAAP financial measures since they exclude the provision for (recovery of) loan losses and all gains and losses included in earnings. Additional information regarding the calculation of these non-GAAP financial measures can be found under the caption “Pre-Provision Net Revenue.”
|
(i)
|
Nonperforming loans include loans 90 days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and other real estate owned.
|
(j)
|
Includes loans categorized as special mention, substandard and doubtful.
|
(k)
|
Includes loans categorized as substandard and doubtful.
|
(l)
|
Peoples' capital conservation buffer was
6.30%
at
September 30, 2018
and 6.49% at
September 30, 2017
, compared to 2.50% for the fully phased-in capital conservation buffer required by January 1, 2019.
|
(1)
|
the success, impact, and timing of the implementation of Peoples' business strategies, including the successful integration of the recently completed acquisition of ASB and the expansion of consumer lending activity;
|
(2)
|
Peoples' ability to integrate future acquisitions, including the pending merger with First Prestonsburg, which may be unsuccessful, or may be more difficult, time-consuming or costly than expected;
|
(3)
|
competitive pressures among financial institutions, or from non-financial institutions, which may increase significantly, including product and pricing pressures, changes to third-party relationships and revenues, and Peoples' ability to attract, develop and retain qualified professionals;
|
(4)
|
changes in the interest rate environment due to economic conditions and/or the fiscal policies of the United States ("U.S.") government and the Board of Governors of the Federal Reserve System (the "Federal Reserve Board"), which may adversely impact interest rates, interest margins, loan demand and interest rate sensitivity;
|
(5)
|
uncertainty regarding the nature, timing, cost and effect of legislative or regulatory changes or actions, promulgated and to be promulgated by governmental and regulatory agencies in the State of Ohio, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the Consumer Financial Protection Bureau, which may subject Peoples, its subsidiaries, or one or more acquired companies to a variety of new and more stringent legal and regulatory requirements which adversely affect their respective businesses, including in particular the rules and regulations promulgated and to be promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and the Basel III regulatory capital reform;
|
(6)
|
the effects of easing restrictions on participants in the financial services industry;
|
(7)
|
uncertainties in Peoples' preliminary review of, and additional analysis of, the impact of the Tax Cuts and Jobs Act;
|
(8)
|
local, regional, national and international economic conditions (including the impact of tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations) and the impact these conditions may have on Peoples, its customers and its counterparties, and Peoples' assessment of the impact, which may be different than anticipated;
|
(9)
|
the existence or exacerbation of general geopolitical instability and uncertainty;
|
(10)
|
changes in policy, other regulatory and legal developments, including the Tax Cuts and Jobs Act, and uncertainty or speculation pending the enactment of such changes;
|
(11)
|
Peoples may issue equity investment securities in connection with future acquisitions, which could cause ownership and economic dilution to Peoples' current shareholders;
|
(12)
|
changes in prepayment speeds, loan originations, levels of nonperforming assets, delinquent loans and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated;
|
(13)
|
adverse changes in economic conditions and/or activities, including, but not limited to, potential or imposed tariffs, continued economic uncertainty in the U.S., the European Union (including the uncertainty surrounding the actions to be taken to implement the referendum by British voters to exit the European Union), Asia and other areas, which could decrease sales volumes, add volatility to the global stock markets and increase loan delinquencies and defaults;
|
(14)
|
slowing or reversal of the current U.S. economic expansion;
|
(15)
|
deterioration in the credit quality of Peoples' loan portfolio, which may adversely impact the provision for loan losses;
|
(16)
|
changes in accounting standards, policies, estimates or procedures which may adversely affect Peoples' reported financial condition or results of operations;
|
(17)
|
Peoples' assumptions and estimates used in applying critical accounting policies, which may prove unreliable, inaccurate or not predictive of actual results;
|
(18)
|
adverse changes in the conditions and trends in the financial markets, including political developments, which may adversely affect the fair value of securities within Peoples' investment portfolio, the interest rate sensitivity of Peoples' consolidated balance sheet, and the income generated by Peoples' trust and investment activities;
|
(19)
|
Peoples' ability to receive dividends from its subsidiaries;
|
(20)
|
Peoples' ability to maintain required capital levels and adequate sources of funding and liquidity;
|
(21)
|
the impact of minimum capital thresholds established as a part of the implementation of Basel III;
|
(22)
|
the impact of larger or similar-sized financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples' business generation and retention, funding and liquidity;
|
(23)
|
the costs and effects of new federal and state laws, and other regulatory and legal developments, including the outcome of potential regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations;
|
(24)
|
Peoples' ability to secure confidential information through the use of computer systems and telecommunications networks, including those of Peoples' third-party vendors and other service providers, which may prove inadequate, and could adversely affect customer confidence in Peoples and/or result in Peoples incurring a financial loss;
|
(25)
|
Peoples' reliance on, and the potential failure of, a number of third-party vendors to perform as expected, including its primary core banking system provider;
|
(26)
|
Peoples' ability to anticipate and respond to technological changes which can impact Peoples' ability to respond to customer needs and meet competitive demands;
|
(27)
|
operational issues stemming from and/or capital spending necessitated by the potential need to adapt to industry changes in information technology systems on which Peoples and its subsidiaries are highly dependent;
|
(28)
|
changes in consumer spending, borrowing and saving habits, whether due to tax reform legislation, changes in business and economic conditions, legislative or regulatory initiatives, or other factors, which may be different than anticipated;
|
(29)
|
the adequacy of Peoples' risk management program in the event of changes in market, economic, operational, asset/liability repricing, liquidity, credit and interest rate risks associated with Peoples' business;
|
(30)
|
the impact on Peoples' businesses, as well as on the risks described above, of various domestic or international widespread natural or other disasters, pandemics, cyber attacks, civil unrest, military or terrorist activities or international conflicts;
|
(31)
|
significant changes in the tax laws, which may adversely affect the fair values of deferred tax assets and obligations of states and political subdivisions held in Peoples' investment securities portfolio;
|
(32)
|
Peoples' continued ability to grow deposits; and
|
(33)
|
other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (the "SEC"), including those risk factors included in the disclosures under the heading "ITEM 1A. RISK FACTORS" of Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31,
2017
and under the heading "ITEM 1A. RISK FACTORS" in Part II of this Form 10-Q.
|
◦
|
On October 29, 2018, Peoples entered into a merger agreement with First Prestonsburg Bancshares Inc. ("First Prestonsburg"), which calls for First Prestonsburg to merge into Peoples. First Prestonsburg is the parent company of The First Commonwealth Bank of Prestonsburg, Inc. ("First Commonwealth"), which operates eight full service branches located in eastern Kentucky, with an additional branch to open by the end of this year. Following the merger of First Prestonsburg into Peoples, First Commonwealth will merge into Peoples Bank. This transaction is expected to close during the second quarter of 2019, subject to the satisfaction of customary closing conditions, including receipt of applicable regulatory approvals and the approval of the shareholders of First Prestonsburg. Refer to Note 12 of the Notes to the Unaudited Consolidated Financial Statements for additional information.
|
◦
|
On July 31, 2018, Peoples entered into five $10.0 million interest rate swaps, which will mature between 2021 and 2028, with interest rates ranging from 2.94% to 3.03%. Additionally, the three interest rate swaps acquired with the ASB acquisition matured in July of 2018. For additional information regarding Peoples' interest rate swaps, refer to Note 9 of the Notes to the Unaudited Consolidated Financial Statements.
|
◦
|
In 2018, Peoples contributed $3.2 million to Peoples' defined benefit pension plan. This contribution was reported in the 2017 federal income tax return. In accordance with the Tax Cuts and Jobs Act, Peoples recognized the contribution as a deduction for tax purposes at the 35% statutory federal corporate income tax rate for 2017.
|
◦
|
In the third quarter of 2018, Peoples incurred $674,000 of acquisition-related costs, which include gains and losses, compared to $6.3 million in the second quarter of 2018, $149,000 in the first quarter of 2018 and none in the third quarter of 2017. For the nine months ended September 30, 2018, Peoples incurred $6.9 million of acquisition-related costs compared to none for the same period in 2017. The acquisition-related costs incurred in 2018 were primarily related to fees associated with early termination of contracts, severance costs and write-offs associated with assets acquired.
|
◦
|
At the close of business on April 13, 2018, Peoples completed the acquisition of ASB Financial Corp. ("ASB"). ASB merged into Peoples, and ASB's wholly-owned subsidiary, American Savings Bank, fsb, which operated seven full-service bank branches and two loan production offices in southern Ohio and northern Kentucky, merged into Peoples Bank. Under the terms of the merger agreement, Peoples paid total consideration of $41.5 million. The acquisition added $239.2 million of net loans and $198.6 million of total deposits at the acquisition date, after preliminary acquisition accounting adjustments. Refer to Note 12 of the Notes to the Unaudited Consolidated Financial Statements for additional information.
|
◦
|
In the second quarter of 2018, Peoples released a valuation allowance which reduced income tax expense by $0.8 million. The valuation allowance was related to a historical tax credit that Peoples had invested in during 2015. Peoples sold $6.7 million of equity investment securities in the second quarter of 2018, which resulted in a capital gain for tax purposes. This capital gain was large enough to offset an anticipated future capital loss, which is expected to be recognized due to the structure of the historical tax credit investment, resulting in the release of the valuation allowance.
|
◦
|
During the second half of 2017, Peoples reduced its position in certain equity investment securities. This action was taken as a result of the high appreciation in the market value of these securities. The sales completed resulted in a net gain on investment securities of $1.9 million in the second half of 2017. On January 1, 2018, Peoples adopted ASU 2016-01, resulting in the reclassification of equity investment securities from available-for-sale investment securities to other investment securities which also resulted in changes in the fair value of the equity investment securities being recorded in non-interest income.
|
◦
|
As of December 31, 2017, Peoples recorded a revaluation of its deferred tax assets and liabilities in light of the applicable provisions of the Tax Cuts and Jobs Act. Previously, Peoples had recognized its deferred tax assets and deferred tax liabilities at a federal corporate income tax rate of 35%, and the new law required the use of a 21% federal corporate income tax rate. As a result, Peoples wrote down its net deferred tax assets by $0.9 million in the fourth quarter of 2017, which had a direct impact on income tax expense recorded during that period. Beginning on January 1, 2018, in accordance with the Tax Cuts and Jobs Act, Peoples began recognizing income tax expense at the 21% statutory federal corporate income tax rate, which has resulted in lower income tax expense for 2018, compared to the 35% statutory federal corporate income tax rate for 2017.
|
◦
|
On October 2, 2017, Peoples Insurance acquired a property and casualty focused independent insurance agency with annual net revenue of $0.8 million located in the Cleveland, Ohio area. The acquisition did not materially impact Peoples' financial position, results of operations, or cash flows.
|
◦
|
During the second quarter of 2017, Peoples borrowed an additional $45.0 million of long-term FHLB non-amortizing advances, which have interest rates ranging from 1.74% to 2.03% and mature between 2020 and 2022.
|
◦
|
During the first quarter of 2017, Peoples borrowed an additional $30.0 million of long-term FHLB non-amortizing advances, which have interest rates ranging from 1.20% to 1.46% and mature between 2018 and 2019.
|
◦
|
During 2017, Peoples closed six full-service bank branches, four located in Ohio, and two located in West Virginia. Peoples continues to evaluate its bank branch network in an effort to optimize efficiency.
|
◦
|
On January 31, 2017, Peoples Insurance acquired a third-party insurance administration company located in Piketon, Ohio for total cash consideration of $0.5 million, and recorded $0.5 million of customer relationship intangibles. The acquisition did not materially impact Peoples' financial position, results of operations or cash flows.
|
◦
|
On January 27, 2017, Peoples entered into two $10.0 million forward starting interest rate swaps, which became effective in January and April of 2018 and mature between 2025 and 2027, with interest rates ranging from 2.47% to 2.53%. For additional information regarding Peoples' interest rate swaps, refer to Note 9 of the Notes to the Unaudited Consolidated Financial Statements.
|
◦
|
The Federal Reserve Board began tightening monetary policy in December 2015 by raising the benchmark Federal Funds Target Rate. Since then, the rate has increased seven times from a range of 0.25% - 0.50% to its current range of 2.00% - 2.25%. Expectations are for one more rate hike in 2018 and three in 2019. The Federal Reserve Board has also begun to reduce the size of its $4.5 trillion balance sheet, which could result in higher interest rates as well. However, there has been no indication that the Federal Reserve Board would alter its current posture of tightening monetary policy at future meetings. Peoples is closely monitoring interest rates, both foreign and domestic; and potential impacts of changes in interest rates to Peoples Bank's operations.
|
|
For the Three Months Ended
|
|||||||||||||||||||||||||
|
September 30, 2018
|
|
June 30, 2018
|
|
September 30, 2017
|
|||||||||||||||||||||
(
Dollars in thousands)
|
Average Balance
|
Income/ Expense
|
Yield/Cost
|
|
Average Balance
|
Income/ Expense
|
Yield/Cost
|
|
Average Balance
|
Income/ Expense
|
Yield/Cost
|
|||||||||||||||
Short-term investments
|
$
|
23,057
|
|
$
|
86
|
|
1.48
|
%
|
|
$
|
10,815
|
|
$
|
54
|
|
2.00
|
%
|
|
$
|
12,812
|
|
$
|
42
|
|
1.30
|
%
|
Investment securities (a)(b):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
787,081
|
|
5,615
|
|
2.85
|
%
|
|
793,497
|
|
5,868
|
|
2.96
|
%
|
|
780,667
|
|
5,661
|
|
2.90
|
%
|
||||||
Nontaxable
|
93,958
|
|
777
|
|
3.31
|
%
|
|
96,991
|
|
804
|
|
3.32
|
%
|
|
105,077
|
|
1,078
|
|
4.10
|
%
|
||||||
Total investment securities
|
881,039
|
|
6,392
|
|
2.90
|
%
|
|
890,488
|
|
6,672
|
|
3.00
|
%
|
|
885,744
|
|
6,739
|
|
3.04
|
%
|
||||||
Loans (b)(c):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial real estate, construction
|
123,939
|
|
1,573
|
|
4.97
|
%
|
|
118,206
|
|
1,438
|
|
4.81
|
%
|
|
118,208
|
|
1,337
|
|
4.43
|
%
|
||||||
Commercial real estate, other
|
852,675
|
|
10,934
|
|
5.02
|
%
|
|
840,677
|
|
10,434
|
|
4.91
|
%
|
|
750,260
|
|
8,890
|
|
4.64
|
%
|
||||||
Commercial and industrial
|
526,316
|
|
6,844
|
|
5.09
|
%
|
|
503,364
|
|
6,216
|
|
4.89
|
%
|
|
438,524
|
|
5,196
|
|
4.64
|
%
|
||||||
Residential real estate (d)
|
614,914
|
|
7,010
|
|
4.56
|
%
|
|
600,799
|
|
6,749
|
|
4.49
|
%
|
|
507,906
|
|
5,468
|
|
4.31
|
%
|
||||||
Home equity lines of credit
|
135,626
|
|
1,860
|
|
5.44
|
%
|
|
131,970
|
|
1,701
|
|
5.17
|
%
|
|
110,741
|
|
1,291
|
|
4.63
|
%
|
||||||
Consumer, indirect
|
387,559
|
|
3,872
|
|
3.96
|
%
|
|
359,941
|
|
3,498
|
|
3.90
|
%
|
|
322,072
|
|
2,955
|
|
3.64
|
%
|
||||||
Consumer, direct
|
76,171
|
|
1,281
|
|
6.67
|
%
|
|
72,820
|
|
1,230
|
|
6.77
|
%
|
|
70,204
|
|
1,270
|
|
7.18
|
%
|
||||||
Total loans
|
2,717,200
|
|
33,374
|
|
4.84
|
%
|
|
2,627,777
|
|
31,266
|
|
4.73
|
%
|
|
2,317,915
|
|
26,407
|
|
4.49
|
%
|
||||||
Less: Allowance for loan losses
|
(19,584
|
)
|
|
|
|
(19,071
|
)
|
|
|
|
(18,869
|
)
|
|
|
||||||||||||
Net loans
|
2,697,616
|
|
33,374
|
|
4.88
|
%
|
|
2,608,706
|
|
31,266
|
|
4.77
|
%
|
|
2,299,046
|
|
26,407
|
|
4.53
|
%
|
||||||
Total earning assets
|
3,601,712
|
|
39,852
|
|
4.37
|
%
|
|
3,510,009
|
|
37,992
|
|
4.31
|
%
|
|
3,197,602
|
|
33,188
|
|
4.10
|
%
|
||||||
Intangible assets
|
163,615
|
|
|
|
|
161,600
|
|
|
|
|
144,267
|
|
|
|
||||||||||||
Other assets
|
232,927
|
|
|
|
|
226,348
|
|
|
|
|
199,351
|
|
|
|
||||||||||||
Total assets
|
$
|
3,998,254
|
|
|
|
|
$
|
3,897,957
|
|
|
|
|
$
|
3,541,220
|
|
|
|
|||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings accounts
|
$
|
476,127
|
|
$
|
84
|
|
0.07
|
%
|
|
$
|
477,167
|
|
$
|
69
|
|
0.06
|
%
|
|
$
|
443,599
|
|
$
|
65
|
|
0.06
|
%
|
Governmental deposit accounts
|
328,806
|
|
507
|
|
0.61
|
%
|
|
312,999
|
|
273
|
|
0.35
|
%
|
|
309,623
|
|
200
|
|
0.26
|
%
|
||||||
Interest-bearing demand accounts
|
551,291
|
|
157
|
|
0.11
|
%
|
|
581,600
|
|
202
|
|
0.14
|
%
|
|
320,788
|
|
133
|
|
0.16
|
%
|
||||||
Money market accounts
|
395,477
|
|
365
|
|
0.37
|
%
|
|
393,580
|
|
323
|
|
0.33
|
%
|
|
389,292
|
|
253
|
|
0.26
|
%
|
||||||
Retail certificates of deposit
|
402,379
|
|
1,372
|
|
1.35
|
%
|
|
395,304
|
|
1,242
|
|
1.26
|
%
|
|
348,047
|
|
760
|
|
0.87
|
%
|
||||||
Brokered certificates of deposit
|
256,780
|
|
1,533
|
|
2.37
|
%
|
|
187,387
|
|
992
|
|
2.13
|
%
|
|
106,448
|
|
454
|
|
1.69
|
%
|
||||||
Total interest-bearing deposits
|
2,410,860
|
|
4,018
|
|
0.66
|
%
|
|
2,348,037
|
|
3,101
|
|
0.53
|
%
|
|
1,917,797
|
|
1,865
|
|
0.39
|
%
|
||||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Short-term FHLB advances
|
258,742
|
|
1,475
|
|
2.26
|
%
|
|
225,635
|
|
966
|
|
1.72
|
%
|
|
96,760
|
|
336
|
|
1.38
|
%
|
||||||
Retail repurchase agreements
|
74,174
|
|
142
|
|
0.77
|
%
|
|
85,188
|
|
209
|
|
0.98
|
%
|
|
77,706
|
|
33
|
|
0.17
|
%
|
||||||
Total short-term borrowings
|
332,916
|
|
1,617
|
|
1.93
|
%
|
|
310,823
|
|
1,175
|
|
1.52
|
%
|
|
174,466
|
|
369
|
|
0.84
|
%
|
||||||
Long-term FHLB advances
|
104,026
|
|
537
|
|
2.05
|
%
|
|
114,287
|
|
559
|
|
1.96
|
%
|
|
153,070
|
|
788
|
|
2.04
|
%
|
||||||
Wholesale repurchase agreements
|
—
|
|
—
|
|
—
|
%
|
|
—
|
|
—
|
|
—
|
%
|
|
40,000
|
|
371
|
|
3.71
|
%
|
||||||
Other borrowings
|
7,217
|
|
135
|
|
7.48
|
%
|
|
7,766
|
|
126
|
|
6.49
|
%
|
|
7,003
|
|
115
|
|
6.57
|
%
|
||||||
Total long-term borrowings
|
111,243
|
|
672
|
|
2.40
|
%
|
|
122,053
|
|
685
|
|
2.25
|
%
|
|
200,073
|
|
1,274
|
|
2.53
|
%
|
||||||
Total borrowed funds
|
444,159
|
|
2,289
|
|
2.05
|
%
|
|
432,876
|
|
1,860
|
|
1.72
|
%
|
|
374,539
|
|
1,643
|
|
1.74
|
%
|
||||||
Total interest-bearing liabilities
|
2,855,019
|
|
6,307
|
|
0.88
|
%
|
|
2,780,913
|
|
4,961
|
|
0.71
|
%
|
|
2,292,336
|
|
3,508
|
|
0.61
|
%
|
||||||
Non-interest-bearing deposits
|
592,709
|
|
|
|
|
585,800
|
|
|
|
|
756,098
|
|
|
|
||||||||||||
Other liabilities
|
48,741
|
|
|
|
|
|
41,368
|
|
|
|
|
|
36,588
|
|
|
|
|
|||||||||
Total liabilities
|
3,496,469
|
|
|
|
|
3,408,081
|
|
|
|
|
3,085,022
|
|
|
|
||||||||||||
Total stockholders’ equity
|
501,785
|
|
|
|
|
|
489,876
|
|
|
|
|
|
456,198
|
|
|
|
|
|||||||||
Total liabilities and stockholders’ equity
|
$
|
3,998,254
|
|
|
|
|
|
$
|
3,897,957
|
|
|
|
|
|
$
|
3,541,220
|
|
|
|
|
||||||
Interest rate spread (b)
|
|
$
|
33,545
|
|
3.49
|
%
|
|
|
$
|
33,031
|
|
3.60
|
%
|
|
|
$
|
29,680
|
|
3.49
|
%
|
||||||
Net interest margin (b)
|
3.68
|
%
|
|
|
|
3.74
|
%
|
|
|
|
3.67
|
%
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
For the Nine Months Ended
|
||||||||||||||||
|
September 30, 2018
|
|
September 30, 2017
|
||||||||||||||
(
Dollars in thousands)
|
Average Balance
|
Income/ Expense
|
Yield/Cost
|
|
Average Balance
|
Income/ Expense
|
Yield/Cost
|
||||||||||
Short-term investments
|
$
|
15,379
|
|
$
|
192
|
|
1.67
|
%
|
|
$
|
10,854
|
|
$
|
83
|
|
1.02
|
%
|
Investment securities (a)(b):
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
785,454
|
|
17,169
|
|
2.91
|
%
|
|
766,116
|
|
15,416
|
|
2.68
|
%
|
||||
Nontaxable
|
96,016
|
|
2,395
|
|
3.33
|
%
|
|
109,921
|
|
3,473
|
|
4.21
|
%
|
||||
Total investment securities
|
881,470
|
|
19,564
|
|
2.96
|
%
|
|
876,037
|
|
18,889
|
|
2.87
|
%
|
||||
Loans (b)(c):
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate, construction
|
120,264
|
|
4,344
|
|
4.76
|
%
|
|
106,637
|
|
3,488
|
|
4.31
|
%
|
||||
Commercial real estate, other
|
819,797
|
|
30,492
|
|
4.90
|
%
|
|
740,263
|
|
26,205
|
|
4.67
|
%
|
||||
Commercial and industrial
|
503,328
|
|
18,631
|
|
4.88
|
%
|
|
434,976
|
|
14,599
|
|
4.43
|
%
|
||||
Residential real estate (d)
|
569,593
|
|
19,068
|
|
4.46
|
%
|
|
519,989
|
|
16,801
|
|
4.31
|
%
|
||||
Home equity lines of credit
|
125,505
|
|
4,832
|
|
5.15
|
%
|
|
111,012
|
|
3,683
|
|
4.44
|
%
|
||||
Consumer, indirect
|
363,705
|
|
10,500
|
|
3.86
|
%
|
|
295,461
|
|
7,758
|
|
3.51
|
%
|
||||
Consumer, other
|
72,499
|
|
3,673
|
|
6.77
|
%
|
|
69,914
|
|
3,718
|
|
7.11
|
%
|
||||
Total loans
|
2,574,691
|
|
91,540
|
|
4.70
|
%
|
|
2,278,252
|
|
76,252
|
|
4.46
|
%
|
||||
Less: Allowance for loan losses
|
(19,116
|
)
|
|
|
|
(18,671
|
)
|
|
|
||||||||
Net loans
|
2,555,575
|
|
91,540
|
|
4.75
|
%
|
|
2,259,581
|
|
76,252
|
|
4.47
|
%
|
||||
Total earning assets
|
3,452,424
|
|
111,296
|
|
4.28
|
%
|
|
3,146,472
|
|
95,224
|
|
4.02
|
%
|
||||
Intangible assets
|
156,540
|
|
|
|
|
144,950
|
|
|
|
||||||||
Other assets
|
223,590
|
|
|
|
|
201,350
|
|
|
|
||||||||
Total assets
|
$
|
3,832,554
|
|
|
|
|
$
|
3,492,772
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
||||||||||
Savings accounts
|
$
|
468,810
|
|
$
|
217
|
|
0.06
|
%
|
|
$
|
442,559
|
|
$
|
184
|
|
0.06
|
%
|
Governmental deposit accounts
|
311,223
|
|
997
|
|
0.43
|
%
|
|
298,321
|
|
499
|
|
0.22
|
%
|
||||
Interest-bearing demand accounts
|
566,656
|
|
580
|
|
0.14
|
%
|
|
300,911
|
|
310
|
|
0.14
|
%
|
||||
Money market accounts
|
385,768
|
|
914
|
|
0.32
|
%
|
|
393,944
|
|
637
|
|
0.22
|
%
|
||||
Retail certificates of deposit
|
378,871
|
|
3,379
|
|
1.19
|
%
|
|
363,747
|
|
2,233
|
|
0.82
|
%
|
||||
Brokered certificates of deposit
|
200,637
|
|
3,245
|
|
2.16
|
%
|
|
85,576
|
|
1,218
|
|
1.90
|
%
|
||||
Total interest-bearing deposits
|
2,311,965
|
|
9,332
|
|
0.54
|
%
|
|
1,885,058
|
|
5,081
|
|
0.36
|
%
|
||||
Borrowed funds:
|
|
|
|
|
|
|
|
||||||||||
Short-term FHLB advances
|
209,980
|
|
3,104
|
|
1.98
|
%
|
|
104,703
|
|
757
|
|
0.97
|
%
|
||||
Retail repurchase agreements
|
87,076
|
|
656
|
|
1.00
|
%
|
|
74,940
|
|
96
|
|
0.17
|
%
|
||||
Total short-term borrowings
|
297,056
|
|
3,760
|
|
1.69
|
%
|
|
179,643
|
|
853
|
|
0.64
|
%
|
||||
Long-term FHLB advances
|
112,381
|
|
1,660
|
|
1.97
|
%
|
|
136,570
|
|
2,140
|
|
2.10
|
%
|
||||
Wholesale repurchase agreements
|
—
|
|
—
|
|
—
|
%
|
|
40,000
|
|
1,100
|
|
3.67
|
%
|
||||
Other borrowings
|
7,364
|
|
383
|
|
6.93
|
%
|
|
6,951
|
|
324
|
|
6.21
|
%
|
||||
Total long-term borrowings
|
119,745
|
|
2,043
|
|
2.28
|
%
|
|
183,521
|
|
3,564
|
|
2.59
|
%
|
||||
Total borrowed funds
|
416,801
|
|
5,803
|
|
1.86
|
%
|
|
363,164
|
|
4,417
|
|
1.62
|
%
|
||||
Total interest-bearing liabilities
|
2,728,766
|
|
15,135
|
|
0.74
|
%
|
|
2,248,222
|
|
9,498
|
|
0.56
|
%
|
||||
Non-interest-bearing deposits
|
577,461
|
|
|
|
|
761,308
|
|
|
|
||||||||
Other liabilities
|
44,189
|
|
|
|
|
|
35,650
|
|
|
|
|
||||||
Total liabilities
|
3,350,416
|
|
|
|
|
3,045,180
|
|
|
|
|
|
||||||
Total stockholders’ equity
|
482,138
|
|
|
|
|
|
447,592
|
|
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,832,554
|
|
|
|
|
|
$
|
3,492,772
|
|
|
|
|
||||
Interest rate spread (b)
|
|
$
|
96,161
|
|
3.54
|
%
|
|
|
$
|
85,726
|
|
3.46
|
%
|
||||
Net interest margin (b)
|
|
|
3.69
|
%
|
|
|
|
3.61
|
%
|
(a)
|
Average balances are based on carrying value.
|
(b)
|
Interest income and yields are presented on a fully tax-equivalent basis using a 21% federal corporate income tax rate for the 2018 reported periods and a 35% federal corporate income tax rate for the 2017 reported periods.
|
(c)
|
Average balances include nonaccrual, impaired loans and loans held for sale. Interest income includes interest earned and received on nonaccrual loans prior to the loans being placed on nonaccrual status. Loan fees included in interest income were immaterial for all periods presented.
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
September 30, 2018
|
||||||||||||||||||||
|
Three Months Ended September 30, 2018 Compared to
|
|
Compared to
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
June 30, 2018
|
|
September 30, 2017
|
|
September 30, 2017
|
||||||||||||||||||||||||
Increase (decrease) in:
|
Rate
|
Volume
|
Total
(a)
|
|
Rate
|
Volume
|
Total
(a)
|
|
Rate
|
Volume
|
Total
(a)
|
||||||||||||||||||
INTEREST INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Short-term investments
|
$
|
(71
|
)
|
$
|
103
|
|
$
|
32
|
|
|
$
|
5
|
|
$
|
39
|
|
$
|
44
|
|
|
$
|
64
|
|
$
|
45
|
|
$
|
109
|
|
Investment Securities (b):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Taxable
|
(230
|
)
|
(23
|
)
|
(253
|
)
|
|
(282
|
)
|
236
|
|
(46
|
)
|
|
1,660
|
|
93
|
|
1,753
|
|
|||||||||
Nontaxable
|
(2
|
)
|
(25
|
)
|
(27
|
)
|
|
(195
|
)
|
(106
|
)
|
(301
|
)
|
|
(59
|
)
|
(1,019
|
)
|
(1,078
|
)
|
|||||||||
Total investment income
|
(232
|
)
|
(48
|
)
|
(280
|
)
|
|
(477
|
)
|
130
|
|
(347
|
)
|
|
1,601
|
|
(926
|
)
|
675
|
|
|||||||||
Loans (b)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate, construction
|
54
|
|
81
|
|
135
|
|
|
169
|
|
67
|
|
236
|
|
|
385
|
|
471
|
|
856
|
|
|||||||||
Commercial real estate, other
|
303
|
|
197
|
|
500
|
|
|
768
|
|
1,276
|
|
2,044
|
|
|
1,374
|
|
2,913
|
|
4,287
|
|
|||||||||
Commercial and industrial
|
298
|
|
330
|
|
628
|
|
|
540
|
|
1,108
|
|
1,648
|
|
|
1,596
|
|
2,436
|
|
4,032
|
|
|||||||||
Residential real estate
|
101
|
|
160
|
|
261
|
|
|
337
|
|
1,205
|
|
1,542
|
|
|
623
|
|
1,644
|
|
2,267
|
|
|||||||||
Home equity lines of credit
|
103
|
|
56
|
|
159
|
|
|
250
|
|
319
|
|
569
|
|
|
633
|
|
516
|
|
1,149
|
|
|||||||||
Consumer, indirect
|
68
|
|
306
|
|
374
|
|
|
279
|
|
638
|
|
917
|
|
|
825
|
|
1,917
|
|
2,742
|
|
|||||||||
Consumer, direct
|
(103
|
)
|
154
|
|
51
|
|
|
(410
|
)
|
421
|
|
11
|
|
|
(40
|
)
|
(5
|
)
|
(45
|
)
|
|||||||||
Total loan income
|
824
|
|
1,284
|
|
2,108
|
|
|
1,933
|
|
5,034
|
|
6,967
|
|
|
5,396
|
|
9,892
|
|
15,288
|
|
|||||||||
Total interest income
|
521
|
|
1,339
|
|
1,860
|
|
|
1,461
|
|
5,203
|
|
6,664
|
|
|
7,061
|
|
9,011
|
|
16,072
|
|
|||||||||
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Savings accounts
|
16
|
|
(1
|
)
|
15
|
|
|
14
|
|
5
|
|
19
|
|
|
21
|
|
12
|
|
33
|
|
|||||||||
Governmental deposit accounts
|
219
|
|
15
|
|
234
|
|
|
294
|
|
13
|
|
307
|
|
|
475
|
|
23
|
|
498
|
|
|||||||||
Interest-bearing demand accounts
|
(35
|
)
|
(10
|
)
|
(45
|
)
|
|
(223
|
)
|
247
|
|
24
|
|
|
(4
|
)
|
274
|
|
270
|
|
|||||||||
Money market accounts
|
40
|
|
2
|
|
42
|
|
|
108
|
|
4
|
|
112
|
|
|
299
|
|
(22
|
)
|
277
|
|
|||||||||
Brokered certificates of deposit
|
127
|
|
414
|
|
541
|
|
|
238
|
|
841
|
|
1,079
|
|
|
187
|
|
1,840
|
|
2,027
|
|
|||||||||
Retail certificates of deposit
|
106
|
|
24
|
|
130
|
|
|
479
|
|
133
|
|
612
|
|
|
1,050
|
|
96
|
|
1,146
|
|
|||||||||
Total deposit cost
|
473
|
|
444
|
|
917
|
|
|
910
|
|
1,243
|
|
2,153
|
|
|
2,028
|
|
2,223
|
|
4,251
|
|
|||||||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Short-term borrowings
|
308
|
|
134
|
|
442
|
|
|
434
|
|
814
|
|
1,248
|
|
|
635
|
|
2,272
|
|
2,907
|
|
|||||||||
Long-term borrowings
|
184
|
|
(197
|
)
|
(13
|
)
|
|
126
|
|
(728
|
)
|
(602
|
)
|
|
(614
|
)
|
(907
|
)
|
(1,521
|
)
|
|||||||||
Total borrowed funds cost
|
492
|
|
(63
|
)
|
429
|
|
|
560
|
|
86
|
|
646
|
|
|
21
|
|
1,365
|
|
1,386
|
|
|||||||||
Total interest expense
|
965
|
|
381
|
|
1,346
|
|
|
1,470
|
|
1,329
|
|
2,799
|
|
|
2,049
|
|
3,588
|
|
5,637
|
|
|||||||||
Net interest income
|
$
|
(444
|
)
|
$
|
958
|
|
$
|
514
|
|
|
$
|
(9
|
)
|
$
|
3,874
|
|
$
|
3,865
|
|
|
$
|
5,012
|
|
$
|
5,423
|
|
$
|
10,435
|
|
(a)
|
The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the dollar amounts of the changes in each.
|
(b)
|
Interest income and yields are presented on a fully tax-equivalent basis using a 21% federal corporate income tax rate for the 2018 periods and a 35% federal corporate income tax rate for the 2017 periods
.
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Net interest income, as reported
|
$
|
33,324
|
|
$
|
32,808
|
|
$
|
29,220
|
|
|
$
|
95,491
|
|
$
|
84,255
|
|
Taxable equivalent adjustments
|
221
|
|
223
|
|
460
|
|
|
670
|
|
1,471
|
|
|||||
Fully tax-equivalent net interest income
|
$
|
33,545
|
|
$
|
33,031
|
|
$
|
29,680
|
|
|
$
|
96,161
|
|
$
|
85,726
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Loan losses
|
$
|
1,035
|
|
$
|
1,000
|
|
$
|
900
|
|
|
$
|
3,877
|
|
$
|
2,150
|
|
Checking account overdrafts
|
267
|
|
188
|
|
186
|
|
|
596
|
|
507
|
|
|||||
Provision for loan losses
|
$
|
1,302
|
|
$
|
1,188
|
|
$
|
1,086
|
|
|
$
|
4,473
|
|
$
|
2,657
|
|
As a percentage of average total loans (a)
|
0.19
|
%
|
0.18
|
%
|
0.19
|
%
|
|
0.23
|
%
|
0.16
|
%
|
|||||
(a) Presented on an annualized basis.
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Net gain (loss) on other assets
|
$
|
12
|
|
$
|
(330
|
)
|
$
|
(38
|
)
|
|
$
|
(239
|
)
|
$
|
92
|
|
Net gain (loss) on other real estate owned ("OREO")
|
—
|
|
14
|
|
13
|
|
|
9
|
|
(11
|
)
|
|||||
Net loss on debt extinguishment
|
—
|
|
(13
|
)
|
—
|
|
|
(13
|
)
|
—
|
|
|||||
Net loss on other transactions
|
—
|
|
(76
|
)
|
—
|
|
|
(76
|
)
|
—
|
|
|||||
Net gain (loss) on asset disposals and other transactions
|
$
|
12
|
|
$
|
(405
|
)
|
$
|
(25
|
)
|
|
$
|
(319
|
)
|
$
|
81
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Property and casualty insurance commissions
|
$
|
2,614
|
|
$
|
2,597
|
|
$
|
2,638
|
|
|
$
|
7,856
|
|
$
|
7,633
|
|
Life and health insurance commissions
|
545
|
|
596
|
|
433
|
|
|
1,685
|
|
1,310
|
|
|||||
Performance-based commissions
|
98
|
|
3
|
|
99
|
|
|
1,448
|
|
1,407
|
|
|||||
Credit life and A&H insurance commissions
|
5
|
|
4
|
|
2
|
|
|
14
|
|
27
|
|
|||||
Other fees and charges
|
126
|
|
169
|
|
173
|
|
|
409
|
|
484
|
|
|||||
Insurance income
|
$
|
3,388
|
|
$
|
3,369
|
|
$
|
3,345
|
|
|
$
|
11,412
|
|
$
|
10,861
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Fiduciary
|
$
|
1,626
|
|
$
|
1,767
|
|
$
|
1,548
|
|
|
$
|
5,000
|
|
$
|
4,764
|
|
Brokerage
|
999
|
|
989
|
|
882
|
|
|
2,951
|
|
2,575
|
|
|||||
Employee benefits
|
485
|
|
476
|
|
408
|
|
|
1,459
|
|
1,158
|
|
|||||
Trust and investment income
|
$
|
3,110
|
|
$
|
3,232
|
|
$
|
2,838
|
|
|
$
|
9,410
|
|
$
|
8,497
|
|
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
(Dollars in thousands)
|
|||||||||||||||
Trust assets under administration and management
|
$
|
1,489,810
|
|
$
|
1,454,009
|
|
$
|
1,447,636
|
|
$
|
1,452,959
|
|
$
|
1,418,360
|
|
Brokerage assets under administration and management
|
914,172
|
|
881,839
|
|
882,018
|
|
887,303
|
|
862,530
|
|
|||||
Total assets under administration and management
|
$
|
2,403,982
|
|
$
|
2,335,848
|
|
$
|
2,329,654
|
|
$
|
2,340,262
|
|
$
|
2,280,890
|
|
Quarterly average
|
$
|
2,378,676
|
|
$
|
2,331,529
|
|
$
|
2,352,798
|
|
$
|
2,314,015
|
|
$
|
2,254,997
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Overdraft and non-sufficient funds fees
|
$
|
1,800
|
|
$
|
1,584
|
|
$
|
1,765
|
|
|
$
|
4,823
|
|
$
|
5,021
|
|
Account maintenance fees
|
691
|
|
646
|
|
543
|
|
|
2,012
|
|
1,624
|
|
|||||
Other fees and charges
|
161
|
|
158
|
|
99
|
|
|
325
|
|
485
|
|
|||||
Deposit account service charges
|
$
|
2,652
|
|
$
|
2,388
|
|
$
|
2,407
|
|
|
$
|
7,160
|
|
$
|
7,130
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Electronic banking income
|
$
|
2,890
|
|
$
|
2,785
|
|
$
|
2,544
|
|
|
$
|
8,460
|
|
$
|
7,692
|
|
Mortgage banking income
|
1,060
|
|
969
|
|
535
|
|
|
2,380
|
|
1,389
|
|
|||||
Bank owned life insurance income
|
495
|
|
497
|
|
482
|
|
|
1,460
|
|
1,471
|
|
|||||
Commercial loan swap fees
|
355
|
|
146
|
|
76
|
|
|
617
|
|
995
|
|
|||||
Other non-interest income (a)
|
391
|
|
421
|
|
383
|
|
|
2,143
|
|
1,499
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Base salaries and wages
|
$
|
11,889
|
|
$
|
12,656
|
|
$
|
10,043
|
|
|
$
|
34,917
|
|
$
|
29,860
|
|
Sales-based and incentive compensation
|
3,125
|
|
3,003
|
|
2,653
|
|
|
8,364
|
|
7,630
|
|
|||||
Employee benefits
|
1,897
|
|
1,499
|
|
1,535
|
|
|
4,953
|
|
4,971
|
|
|||||
Payroll taxes and other employment costs
|
1,036
|
|
1,036
|
|
945
|
|
|
3,255
|
|
3,056
|
|
|||||
Stock-based compensation
|
564
|
|
410
|
|
359
|
|
|
2,046
|
|
1,370
|
|
|||||
Deferred personnel costs
|
(602
|
)
|
(579
|
)
|
(394
|
)
|
|
(1,612
|
)
|
(1,201
|
)
|
|||||
Salaries and employee benefit costs
|
$
|
17,909
|
|
$
|
18,025
|
|
$
|
15,141
|
|
|
$
|
51,923
|
|
$
|
45,686
|
|
Full-time equivalent employees:
|
|
|
|
|
|
|
|
|||||||||
Actual at end of period
|
849
|
|
862
|
|
778
|
|
|
849
|
|
778
|
|
|||||
Average during the period
|
860
|
|
844
|
|
778
|
|
|
832
|
|
778
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Depreciation
|
$
|
1,237
|
|
$
|
1,248
|
|
$
|
1,206
|
|
|
$
|
3,704
|
|
$
|
3,649
|
|
Repairs and maintenance costs
|
697
|
|
659
|
|
577
|
|
|
2,203
|
|
1,930
|
|
|||||
Net rent expense
|
264
|
|
235
|
|
264
|
|
|
709
|
|
689
|
|
|||||
Property taxes, utilities and other costs
|
652
|
|
661
|
|
572
|
|
|
1,903
|
|
1,712
|
|
|||||
Net occupancy and equipment expense
|
$
|
2,850
|
|
$
|
2,803
|
|
$
|
2,619
|
|
|
$
|
8,519
|
|
$
|
7,980
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Electronic banking expense
|
$
|
1,552
|
|
$
|
1,448
|
|
$
|
1,403
|
|
|
$
|
4,409
|
|
$
|
4,293
|
|
Data processing and software expense
|
1,408
|
|
1,359
|
|
1,092
|
|
|
4,089
|
|
3,330
|
|
|||||
Professional fees
|
1,395
|
|
3,022
|
|
1,393
|
|
|
6,135
|
|
4,532
|
|
|||||
Amortization of other intangible assets
|
862
|
|
861
|
|
869
|
|
|
2,477
|
|
2,603
|
|
|||||
Franchise tax expense
|
616
|
|
614
|
|
583
|
|
|
1,874
|
|
1,750
|
|
|||||
Marketing expense
|
456
|
|
656
|
|
488
|
|
|
1,437
|
|
1,122
|
|
|||||
FDIC insurance expense
|
391
|
|
416
|
|
449
|
|
|
1,173
|
|
1,339
|
|
|||||
Foreclosed real estate and other loan expenses
|
373
|
|
338
|
|
214
|
|
|
923
|
|
589
|
|
|||||
Communication expense
|
305
|
|
300
|
|
334
|
|
|
949
|
|
1,134
|
|
|||||
Other non-interest expense
|
2,713
|
|
6,129
|
|
1,973
|
|
|
11,113
|
|
6,211
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Pre-provision net revenue:
|
|
|
|
|
|
|
||||||||||
Income before income taxes
|
$
|
15,546
|
|
$
|
8,904
|
|
$
|
16,022
|
|
|
$
|
38,574
|
|
$
|
42,863
|
|
Add: provision for loan losses
|
1,302
|
|
1,188
|
|
1,086
|
|
|
4,473
|
|
2,657
|
|
|||||
Add: loss on debt extinguishment
|
—
|
|
13
|
|
—
|
|
|
13
|
|
—
|
|
|||||
Add: net loss on OREO
|
—
|
|
—
|
|
—
|
|
|
—
|
|
24
|
|
|||||
Add: net loss on investment securities
|
—
|
|
147
|
|
—
|
|
|
146
|
|
—
|
|
|||||
Add: net loss on other assets
|
—
|
|
330
|
|
—
|
|
|
239
|
|
—
|
|
|||||
Add: net loss on other transactions
|
|
76
|
|
38
|
|
|
76
|
|
41
|
|
||||||
Less: net gain on OREO
|
—
|
|
14
|
|
13
|
|
|
9
|
|
13
|
|
|||||
Less: net gain on investment securities
|
—
|
|
—
|
|
1,861
|
|
|
—
|
|
2,219
|
|
|||||
Less: net gain on other assets
|
12
|
|
—
|
|
—
|
|
|
—
|
|
133
|
|
|||||
Pre-provision net revenue
|
$
|
16,836
|
|
$
|
10,644
|
|
$
|
15,272
|
|
|
$
|
43,512
|
|
$
|
43,220
|
|
Total average assets
|
$
|
3,998,254
|
|
$
|
3,897,957
|
|
$
|
3,541,220
|
|
|
$
|
3,832,554
|
|
$
|
3,492,772
|
|
Pre-provision net revenue to total average assets (a)
|
1.67
|
%
|
1.10
|
%
|
1.71
|
%
|
|
1.52
|
%
|
1.65
|
%
|
|||||
(a) Presented on an annualized basis.
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
Core non-interest expense:
|
|
|
|
|
|
|
||||||||||
Total non-interest expense
|
$
|
30,829
|
|
$
|
35,971
|
|
$
|
26,558
|
|
|
$
|
95,021
|
|
$
|
80,569
|
|
Less: acquisition-related expenses
|
675
|
|
6,056
|
|
—
|
|
|
6,880
|
|
—
|
|
|||||
Less: pension settlement charges
|
176
|
|
—
|
|
—
|
|
|
176
|
|
—
|
|
|||||
Core non-interest expense
|
$
|
29,978
|
|
$
|
29,915
|
|
$
|
26,558
|
|
|
$
|
87,965
|
|
$
|
80,569
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
|
September 30,
2018 |
June 30,
2018 |
September 30,
2017 |
|
September 30,
|
|||||||||||
(Dollars in thousands)
|
|
2018
|
2017
|
|||||||||||||
|
|
|
|
|
|
|
||||||||||
Efficiency ratio:
|
|
|
|
|
|
|
||||||||||
Total non-interest expense
|
$
|
30,829
|
|
$
|
35,971
|
|
$
|
26,558
|
|
|
$
|
95,021
|
|
$
|
80,569
|
|
Less: Amortization of other intangible assets
|
862
|
|
861
|
|
869
|
|
|
2,477
|
|
2,603
|
|
|||||
Adjusted total non-interest expense
|
$
|
29,967
|
|
$
|
35,110
|
|
$
|
25,689
|
|
|
$
|
92,544
|
|
$
|
77,966
|
|
Total non-interest income
|
14,353
|
|
13,255
|
|
14,446
|
|
|
42,577
|
|
41,834
|
|
|||||
Less: net (loss) gain on investment securities
|
—
|
|
(147
|
)
|
1,861
|
|
|
(146
|
)
|
2,219
|
|
|||||
Less: net gain (loss) on asset disposals and other transactions
|
12
|
|
(405
|
)
|
(25
|
)
|
|
(319
|
)
|
81
|
|
|||||
Adjusted total non-interest income
|
$
|
14,341
|
|
$
|
13,807
|
|
$
|
12,610
|
|
|
$
|
43,042
|
|
$
|
39,534
|
|
Net interest income
|
$
|
33,324
|
|
$
|
32,808
|
|
$
|
29,220
|
|
|
$
|
95,491
|
|
$
|
84,255
|
|
Add: Fully tax-equivalent adjustment (a)
|
221
|
|
223
|
|
460
|
|
|
670
|
|
1,471
|
|
|||||
Net interest income on a fully tax-equivalent basis
|
$
|
33,545
|
|
$
|
33,031
|
|
$
|
29,680
|
|
|
$
|
96,161
|
|
$
|
85,726
|
|
Adjusted revenue
|
$
|
47,886
|
|
$
|
46,838
|
|
$
|
42,290
|
|
|
$
|
139,203
|
|
$
|
125,260
|
|
Efficiency ratio
|
62.58
|
%
|
74.96
|
%
|
60.74
|
%
|
|
66.48
|
%
|
62.24
|
%
|
|||||
Core non-interest expense
|
$
|
29,978
|
|
$
|
29,915
|
|
$
|
26,558
|
|
|
$
|
87,965
|
|
$
|
80,569
|
|
Less: Amortization of other intangible assets
|
862
|
|
861
|
|
869
|
|
|
2,477
|
|
2,603
|
|
|||||
Adjusted core non-interest expense
|
$
|
29,116
|
|
$
|
29,054
|
|
$
|
25,689
|
|
|
$
|
85,488
|
|
$
|
77,966
|
|
Adjusted revenue
|
47,886
|
|
46,838
|
|
42,290
|
|
|
139,203
|
|
125,260
|
|
|||||
Efficiency ratio adjusted for non-core items
|
60.80
|
%
|
62.03
|
%
|
60.74
|
%
|
|
61.41
|
%
|
62.24
|
%
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Total fair value
|
$
|
919
|
|
$
|
1,162
|
|
$
|
1,478
|
|
$
|
1,924
|
|
$
|
2,067
|
|
Total amortized cost
|
985
|
|
1,225
|
|
1,607
|
|
2,109
|
|
2,253
|
|
|||||
Net unrealized loss
|
$
|
(66
|
)
|
$
|
(63
|
)
|
$
|
(129
|
)
|
$
|
(185
|
)
|
$
|
(186
|
)
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Gross originated loans:
|
|
|
|
|
|
||||||||||
Commercial real estate, construction
|
$
|
103,562
|
|
$
|
107,255
|
|
$
|
99,757
|
|
$
|
107,118
|
|
$
|
111,187
|
|
Commercial real estate, other
|
630,720
|
|
650,512
|
|
627,932
|
|
595,447
|
|
573,256
|
|
|||||
Commercial real estate
|
734,282
|
|
757,767
|
|
727,689
|
|
702,565
|
|
684,443
|
|
|||||
Commercial and industrial
|
510,591
|
|
471,270
|
|
455,243
|
|
438,051
|
|
407,468
|
|
|||||
Residential real estate
|
299,768
|
|
299,934
|
|
302,890
|
|
304,523
|
|
304,094
|
|
|||||
Home equity lines of credit
|
92,892
|
|
89,957
|
|
87,722
|
|
88,902
|
|
88,421
|
|
|||||
Consumer, indirect
|
396,701
|
|
373,384
|
|
347,607
|
|
340,390
|
|
335,436
|
|
|||||
Consumer, direct
|
72,601
|
|
71,545
|
|
67,386
|
|
67,010
|
|
68,286
|
|
|||||
Consumer
|
469,302
|
|
444,929
|
|
414,993
|
|
407,400
|
|
403,722
|
|
|||||
Deposit account overdrafts
|
649
|
|
860
|
|
543
|
|
849
|
|
507
|
|
|||||
Total originated loans
|
$
|
2,107,484
|
|
$
|
2,064,717
|
|
$
|
1,989,080
|
|
$
|
1,942,290
|
|
$
|
1,888,655
|
|
Gross acquired loans (a):
|
|
|
|
|
|
||||||||||
Commercial real estate, construction
|
$
|
13,050
|
|
$
|
14,780
|
|
$
|
8,054
|
|
$
|
8,319
|
|
$
|
8,565
|
|
Commercial real estate, other
|
191,993
|
|
207,195
|
|
156,115
|
|
165,120
|
|
174,157
|
|
|||||
Commercial real estate
|
205,043
|
|
221,975
|
|
164,169
|
|
173,439
|
|
182,722
|
|
|||||
Commercial and industrial
|
41,188
|
|
40,938
|
|
33,815
|
|
34,493
|
|
36,462
|
|
|||||
Residential real estate
|
308,178
|
|
309,629
|
|
194,063
|
|
184,864
|
|
194,950
|
|
|||||
Home equity lines of credit
|
42,961
|
|
45,933
|
|
20,008
|
|
20,575
|
|
22,366
|
|
|||||
Consumer, indirect
|
161
|
|
198
|
|
253
|
|
329
|
|
408
|
|
|||||
Consumer, direct
|
2,712
|
|
3,101
|
|
940
|
|
1,147
|
|
1,472
|
|
|||||
Consumer
|
2,873
|
|
3,299
|
|
1,193
|
|
1,476
|
|
1,880
|
|
|||||
Total acquired loans
|
$
|
600,243
|
|
$
|
621,774
|
|
$
|
413,248
|
|
$
|
414,847
|
|
$
|
438,380
|
|
Total loans
|
$
|
2,707,727
|
|
$
|
2,686,491
|
|
$
|
2,402,328
|
|
$
|
2,357,137
|
|
$
|
2,327,035
|
|
Percent of loans to total loans:
|
|
|
|
|
|
||||||||||
Commercial real estate, construction
|
4.3
|
%
|
4.5
|
%
|
4.5
|
%
|
4.9
|
%
|
5.1
|
%
|
|||||
Commercial real estate, other
|
30.4
|
%
|
31.9
|
%
|
32.6
|
%
|
32.3
|
%
|
32.2
|
%
|
|||||
Commercial real estate
|
34.7
|
%
|
36.4
|
%
|
37.1
|
%
|
37.2
|
%
|
37.3
|
%
|
|||||
Commercial and industrial
|
20.3
|
%
|
19.1
|
%
|
20.4
|
%
|
20.0
|
%
|
19.1
|
%
|
|||||
Residential real estate
|
22.5
|
%
|
22.7
|
%
|
20.7
|
%
|
20.8
|
%
|
21.4
|
%
|
|||||
Home equity lines of credit
|
5.0
|
%
|
5.1
|
%
|
4.5
|
%
|
4.6
|
%
|
4.8
|
%
|
|||||
Consumer, indirect
|
14.7
|
%
|
13.9
|
%
|
14.5
|
%
|
14.5
|
%
|
14.4
|
%
|
|||||
Consumer, direct
|
2.8
|
%
|
2.8
|
%
|
2.8
|
%
|
2.9
|
%
|
3.0
|
%
|
|||||
Consumer
|
17.5
|
%
|
16.7
|
%
|
17.3
|
%
|
17.4
|
%
|
17.4
|
%
|
|||||
Deposit account overdrafts (b)
|
NM
|
|
NM
|
|
NM
|
|
NM
|
|
NM
|
|
|||||
Total percentage
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
Residential real estate loans being serviced for others
|
$
|
458,999
|
|
$
|
451,391
|
|
$
|
412,154
|
|
$
|
412,965
|
|
$
|
409,199
|
|
(a)
|
Includes all loans acquired, and related loan discount or premium, recorded in 2012 and thereafter. Loans that were acquired and subsequently re-underwritten, are reported as originated upon execution of such credit actions (for example, renewals and increases in lines of credit).
|
(b)
|
Not meaningful.
|
(Dollars in thousands)
|
Outstanding Balance
|
Loan Commitments
|
Total Exposure
|
% of Total
|
|||||||
Commercial real estate, construction:
|
|
|
|
|
|||||||
Apartment complexes
|
$
|
33,795
|
|
$
|
36,989
|
|
$
|
70,784
|
|
35.3
|
%
|
Office buildings
|
10,582
|
|
14,351
|
|
24,933
|
|
12.4
|
%
|
|||
Assisted living facilities and nursing homes
|
6,501
|
|
17,690
|
|
24,191
|
|
12.1
|
%
|
|||
Mixed used facility
|
14,153
|
|
8,783
|
|
22,936
|
|
11.4
|
%
|
|||
Educational services
|
8,777
|
|
—
|
|
8,777
|
|
4.4
|
%
|
|||
Light industrial
|
8,507
|
|
108
|
|
8,615
|
|
4.3
|
%
|
|||
Child care
|
3,750
|
|
2,345
|
|
6,095
|
|
3.0
|
%
|
|||
Residential Property
|
2,032
|
|
1,962
|
|
3,994
|
|
2.0
|
%
|
|||
Other (a)
|
28,515
|
|
1,482
|
|
29,997
|
|
15.1
|
%
|
|||
Total commercial real estate, construction
|
$
|
116,612
|
|
$
|
83,710
|
|
$
|
200,322
|
|
100.0
|
%
|
(a)
|
All other outstanding balances are less than 2% of the total loan portfolio.
|
(Dollars in thousands)
|
Outstanding Balance
|
Loan Commitments
|
Total Exposure
|
% of Total
|
|||||||
Commercial real estate, other:
|
|
|
|
|
|||||||
Mixed-use facilities:
|
|
|
|
|
|||||||
Owner occupied
|
35,350
|
|
726
|
|
36,076
|
|
4.2
|
%
|
|||
Non-owner occupied
|
72,255
|
|
2,334
|
|
74,589
|
|
8.7
|
%
|
|||
Total mixed-use facilities
|
107,605
|
|
3,060
|
|
110,665
|
|
12.9
|
%
|
|||
Office buildings and complexes:
|
|
|
|
|
|||||||
Owner occupied
|
$
|
44,389
|
|
$
|
2,789
|
|
$
|
47,178
|
|
5.5
|
%
|
Non-owner occupied
|
48,831
|
|
796
|
|
49,627
|
|
5.8
|
%
|
|||
Total office buildings and complexes
|
93,220
|
|
3,585
|
|
96,805
|
|
11.3
|
%
|
|||
Apartment complexes
|
92,372
|
|
662
|
|
93,034
|
|
10.9
|
%
|
|||
Light industrial facilities:
|
|
|
|
|
|||||||
Owner occupied
|
48,346
|
|
3,779
|
|
52,125
|
|
6.1
|
%
|
|||
Non-owner occupied
|
17,896
|
|
1,088
|
|
18,984
|
|
2.2
|
%
|
|||
Total light industrial facilities
|
66,242
|
|
4,867
|
|
71,109
|
|
8.3
|
%
|
|||
Retail facilities:
|
|
|
|
|
|||||||
Owner occupied
|
27,979
|
|
1,439
|
|
29,418
|
|
3.4
|
%
|
|||
Non-owner occupied
|
32,361
|
|
98
|
|
32,459
|
|
3.8
|
%
|
|||
Total retail facilities
|
60,340
|
|
1,537
|
|
61,877
|
|
7.2
|
%
|
|||
Lodging and lodging related
|
33,089
|
|
347
|
|
33,436
|
|
3.9
|
%
|
|||
Warehouse facilities
|
30,747
|
|
669
|
|
31,416
|
|
3.7
|
%
|
|||
Assisted living facilities and nursing homes
|
29,890
|
|
256
|
|
30,146
|
|
3.5
|
%
|
|||
Other
|
309,208
|
|
20,765
|
|
327,973
|
|
38.3
|
%
|
|||
Total commercial real estate, other
|
$
|
822,713
|
|
$
|
35,748
|
|
$
|
856,461
|
|
100.0
|
%
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Commercial real estate
|
$
|
7,966
|
|
$
|
8,271
|
|
$
|
8,062
|
|
$
|
7,797
|
|
$
|
7,534
|
|
Commercial and industrial
|
6,138
|
|
5,365
|
|
5,269
|
|
5,813
|
|
6,415
|
|
|||||
Total commercial
|
14,104
|
|
13,636
|
|
13,331
|
|
13,610
|
|
13,949
|
|
|||||
Residential real estate
|
999
|
|
1,005
|
|
1,086
|
|
904
|
|
924
|
|
|||||
Home equity lines of credit
|
708
|
|
618
|
|
690
|
|
693
|
|
679
|
|
|||||
Consumer, indirect
|
3,423
|
|
3,339
|
|
3,034
|
|
2,944
|
|
2,814
|
|
|||||
Consumer, direct
|
395
|
|
465
|
|
473
|
|
464
|
|
441
|
|
|||||
Consumer
|
3,818
|
|
3,804
|
|
3,507
|
|
3,408
|
|
3,255
|
|
|||||
Deposit account overdrafts
|
95
|
|
95
|
|
76
|
|
70
|
|
70
|
|
|||||
Originated allowance for loan losses
|
19,724
|
|
19,158
|
|
18,690
|
|
18,685
|
|
18,877
|
|
|||||
Acquired allowance for loan losses
|
155
|
|
108
|
|
108
|
|
108
|
|
115
|
|
|||||
Allowance for loan losses
|
$
|
19,879
|
|
$
|
19,266
|
|
$
|
18,798
|
|
$
|
18,793
|
|
$
|
18,992
|
|
As a percent of total loans, net of deferred fees and costs
|
0.73
|
%
|
0.72
|
%
|
0.78
|
%
|
0.80
|
%
|
0.82
|
%
|
|
Three Months Ended
|
||||||||||||||
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Gross charge-offs:
|
|
|
|
|
|
||||||||||
Commercial real estate, other
|
$
|
—
|
|
$
|
7
|
|
$
|
842
|
|
$
|
383
|
|
$
|
—
|
|
Commercial and industrial
|
—
|
|
7
|
|
31
|
|
10
|
|
48
|
|
|||||
Residential real estate
|
66
|
|
82
|
|
145
|
|
186
|
|
245
|
|
|||||
Home equity lines of credit
|
10
|
|
20
|
|
37
|
|
31
|
|
80
|
|
|||||
Consumer, indirect
|
488
|
|
550
|
|
929
|
|
617
|
|
494
|
|
|||||
Consumer, direct
|
78
|
|
109
|
|
110
|
|
104
|
|
106
|
|
|||||
Consumer
|
566
|
|
659
|
|
1,039
|
|
721
|
|
600
|
|
|||||
Deposit account overdrafts
|
311
|
|
215
|
|
205
|
|
271
|
|
246
|
|
|||||
Total gross charge-offs
|
$
|
953
|
|
$
|
990
|
|
$
|
2,299
|
|
$
|
1,602
|
|
$
|
1,219
|
|
Recoveries:
|
|
|
|
|
|
||||||||||
Commercial real estate, other
|
$
|
15
|
|
$
|
28
|
|
$
|
15
|
|
$
|
11
|
|
$
|
19
|
|
Commercial and industrial
|
10
|
|
—
|
|
—
|
|
—
|
|
1
|
|
|||||
Residential real estate
|
32
|
|
41
|
|
26
|
|
24
|
|
19
|
|
|||||
Home equity lines of credit
|
3
|
|
2
|
|
7
|
|
4
|
|
3
|
|
|||||
Consumer, indirect
|
131
|
|
138
|
|
134
|
|
166
|
|
175
|
|
|||||
Consumer, direct
|
31
|
|
15
|
|
69
|
|
27
|
|
46
|
|
|||||
Consumer
|
162
|
|
153
|
|
203
|
|
193
|
|
221
|
|
|||||
Deposit account overdrafts
|
44
|
|
46
|
|
70
|
|
56
|
|
47
|
|
|||||
Total recoveries
|
$
|
266
|
|
$
|
270
|
|
$
|
321
|
|
$
|
288
|
|
$
|
310
|
|
Net charge-offs (recoveries):
|
|
|
|
|
|
||||||||||
Commercial real estate, other
|
$
|
(15
|
)
|
$
|
(21
|
)
|
$
|
827
|
|
$
|
372
|
|
$
|
(19
|
)
|
Commercial and industrial
|
(10
|
)
|
7
|
|
31
|
|
10
|
|
47
|
|
|||||
Residential real estate
|
34
|
|
41
|
|
119
|
|
162
|
|
226
|
|
|||||
Home equity lines of credit
|
7
|
|
18
|
|
30
|
|
27
|
|
77
|
|
|||||
Consumer, indirect
|
357
|
|
412
|
|
795
|
|
451
|
|
319
|
|
|||||
Consumer, direct
|
47
|
|
94
|
|
41
|
|
77
|
|
60
|
|
|||||
Consumer
|
404
|
|
506
|
|
836
|
|
528
|
|
379
|
|
|||||
Deposit account overdrafts
|
267
|
|
169
|
|
135
|
|
215
|
|
199
|
|
|||||
Total net charge-offs
|
$
|
687
|
|
$
|
720
|
|
$
|
1,978
|
|
$
|
1,314
|
|
$
|
909
|
|
Ratio of net charge-offs to average total loans (annualized):
|
|
|
|||||||||||||
Commercial real estate
|
—
|
%
|
—
|
%
|
0.14
|
%
|
0.06
|
%
|
—
|
%
|
|||||
Commercial and industrial
|
—
|
%
|
—
|
%
|
0.01
|
%
|
—
|
%
|
0.01
|
%
|
|||||
Residential real estate
|
—
|
%
|
0.01
|
%
|
0.02
|
%
|
0.03
|
%
|
0.04
|
%
|
|||||
Home equity lines of credit
|
—
|
%
|
—
|
%
|
0.01
|
%
|
—
|
%
|
0.02
|
%
|
|||||
Consumer, indirect
|
0.05
|
%
|
0.06
|
%
|
0.13
|
%
|
0.08
|
%
|
0.05
|
%
|
|||||
Consumer, other
|
0.01
|
%
|
0.01
|
%
|
0.01
|
%
|
0.01
|
%
|
0.01
|
%
|
|||||
Consumer
|
0.06
|
%
|
0.07
|
%
|
0.14
|
%
|
0.09
|
%
|
0.06
|
%
|
|||||
Deposit account overdrafts
|
0.04
|
%
|
0.03
|
%
|
0.02
|
%
|
0.04
|
%
|
0.03
|
%
|
|||||
Total
|
0.10
|
%
|
0.11
|
%
|
0.34
|
%
|
0.22
|
%
|
0.16
|
%
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Loans 90+ days past due and accruing:
|
|
|
|
|
|
||||||||||
Commercial real estate, construction
|
$
|
401
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate, other
|
60
|
|
615
|
|
71
|
|
215
|
|
1,272
|
|
|||||
Commercial real estate
|
461
|
|
615
|
|
71
|
|
215
|
|
1,272
|
|
|||||
Commercial and industrial
|
—
|
|
—
|
|
—
|
|
45
|
|
832
|
|
|||||
Residential real estate
|
1,338
|
|
1,308
|
|
930
|
|
1,278
|
|
1,415
|
|
|||||
Home equity lines of credit
|
84
|
|
6
|
|
29
|
|
72
|
|
15
|
|
|||||
Consumer, indirect
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Consumer, direct
|
—
|
|
46
|
|
—
|
|
16
|
|
8
|
|
|||||
Consumer
|
2
|
|
46
|
|
—
|
|
16
|
|
8
|
|
|||||
Total loans 90+ days past due and accruing
|
$
|
1,885
|
|
$
|
1,975
|
|
$
|
1,030
|
|
$
|
1,626
|
|
$
|
3,542
|
|
Nonaccrual loans:
|
|
|
|
|
|
||||||||||
Commercial real estate, construction
|
$
|
725
|
|
$
|
725
|
|
$
|
732
|
|
$
|
754
|
|
$
|
776
|
|
Commercial real estate, other
|
6,751
|
|
6,422
|
|
6,268
|
|
6,348
|
|
7,321
|
|
|||||
Commercial real estate
|
7,476
|
|
7,147
|
|
7,000
|
|
7,102
|
|
8,097
|
|
|||||
Commercial and industrial
|
939
|
|
1,265
|
|
1,252
|
|
506
|
|
584
|
|
|||||
Residential real estate
|
3,725
|
|
3,770
|
|
3,967
|
|
4,267
|
|
4,055
|
|
|||||
Home equity lines of credit
|
796
|
|
681
|
|
656
|
|
772
|
|
589
|
|
|||||
Consumer, indirect
|
286
|
|
221
|
|
180
|
|
158
|
|
79
|
|
|||||
Consumer, direct
|
14
|
|
12
|
|
11
|
|
32
|
|
31
|
|
|||||
Consumer
|
300
|
|
233
|
|
191
|
|
190
|
|
110
|
|
|||||
Total nonaccrual loans
|
$
|
13,236
|
|
$
|
13,096
|
|
$
|
13,066
|
|
$
|
12,837
|
|
$
|
13,435
|
|
Nonaccrual troubled debt restructurings (TDRs):
|
|
|
|
|
|
||||||||||
Commercial real estate, other
|
$
|
186
|
|
$
|
236
|
|
$
|
674
|
|
$
|
721
|
|
$
|
336
|
|
Commercial and industrial
|
430
|
|
436
|
|
487
|
|
492
|
|
694
|
|
|||||
Residential real estate
|
2,087
|
|
2,132
|
|
1,761
|
|
1,447
|
|
1,592
|
|
|||||
Home equity lines of credit
|
160
|
|
71
|
|
81
|
|
90
|
|
85
|
|
|||||
Consumer, indirect
|
119
|
|
93
|
|
126
|
|
98
|
|
75
|
|
|||||
Consumer, direct
|
17
|
|
5
|
|
7
|
|
7
|
|
2
|
|
|||||
Consumer
|
136
|
|
98
|
|
133
|
|
105
|
|
77
|
|
|||||
Total nonaccrual TDRs
|
$
|
2,999
|
|
$
|
2,973
|
|
$
|
3,136
|
|
$
|
2,855
|
|
$
|
2,784
|
|
Total nonperforming loans (NPLs)
|
$
|
18,120
|
|
$
|
18,044
|
|
$
|
17,232
|
|
$
|
17,318
|
|
$
|
19,761
|
|
Other real estate owned (OREO):
|
|
|
|
|
|
||||||||||
Commercial
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
167
|
|
Residential
|
106
|
|
63
|
|
99
|
|
208
|
|
109
|
|
|||||
Total OREO
|
$
|
106
|
|
$
|
63
|
|
$
|
99
|
|
$
|
208
|
|
$
|
276
|
|
Total nonperforming assets (NPAs)
|
$
|
18,226
|
|
$
|
18,107
|
|
$
|
17,331
|
|
$
|
17,526
|
|
$
|
20,037
|
|
Criticized loans (a)
|
$
|
118,703
|
|
$
|
120,809
|
|
$
|
116,243
|
|
$
|
90,418
|
|
$
|
96,671
|
|
Classified loans (b)
|
49,058
|
|
55,596
|
|
44,661
|
|
46,380
|
|
41,233
|
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
|||||
Asset Quality Ratios:
|
|
|
|
|
|
|||||
NPLs as a percent of total loans (c)(d)
|
0.67
|
%
|
0.67
|
%
|
0.72
|
%
|
0.73
|
%
|
0.85
|
%
|
NPAs as a percent of total assets (c)(d)
|
0.46
|
%
|
0.46
|
%
|
0.48
|
%
|
0.49
|
%
|
0.56
|
%
|
NPAs as a percent of total loans and OREO (c)(d)
|
0.67
|
%
|
0.67
|
%
|
0.72
|
%
|
0.74
|
%
|
0.86
|
%
|
Allowance for loan losses as a percent of NPLs (c)
|
109.71
|
%
|
106.77
|
%
|
109.08
|
%
|
108.52
|
%
|
96.11
|
%
|
Criticized loans as a percent of total loans (c)
|
4.38
|
%
|
4.50
|
%
|
4.84
|
%
|
3.84
|
%
|
4.15
|
%
|
Classified loans as a percent of total loans (c)
|
1.81
|
%
|
2.07
|
%
|
1.86
|
%
|
1.97
|
%
|
1.77
|
%
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Non-interest-bearing deposits (a)
|
$
|
617,447
|
|
$
|
585,861
|
|
$
|
570,804
|
|
$
|
556,010
|
|
$
|
724,846
|
|
Interest-bearing deposits:
|
|
|
|
|
|
||||||||||
Interest-bearing demand accounts (a)
|
547,172
|
|
570,359
|
|
584,563
|
|
593,415
|
|
384,261
|
|
|||||
Savings accounts
|
473,240
|
|
480,615
|
|
461,440
|
|
446,714
|
|
440,633
|
|
|||||
Money market deposit accounts
|
391,377
|
|
389,893
|
|
364,232
|
|
371,376
|
|
388,876
|
|
|||||
Governmental deposit accounts
|
344,320
|
|
305,255
|
|
341,920
|
|
264,524
|
|
289,895
|
|
|||||
Retail certificates of deposit (CDs)
|
402,309
|
|
406,214
|
|
335,843
|
|
338,673
|
|
343,122
|
|
|||||
Brokered CDs
|
265,258
|
|
211,062
|
|
154,379
|
|
159,618
|
|
93,049
|
|
|||||
Total interest-bearing deposits
|
2,423,676
|
|
2,363,398
|
|
2,242,377
|
|
2,174,320
|
|
1,939,836
|
|
|||||
Total deposits
|
$
|
3,041,123
|
|
$
|
2,949,259
|
|
$
|
2,813,181
|
|
$
|
2,730,330
|
|
$
|
2,664,682
|
|
(a)
|
The sum of amounts presented is considered total demand deposits.
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Short-term borrowings:
|
|
|
|
|
|
||||||||||
FHLB advances
|
$
|
232,000
|
|
$
|
284,566
|
|
$
|
104,579
|
|
$
|
92,592
|
|
$
|
116,597
|
|
Retail repurchase agreements
|
64,840
|
|
76,177
|
|
98,896
|
|
116,899
|
|
77,120
|
|
|||||
Unamortized debt issuance cost
|
(10
|
)
|
(16
|
)
|
—
|
|
—
|
|
—
|
|
|||||
Total short-term borrowings
|
296,830
|
|
360,727
|
|
203,475
|
|
209,491
|
|
193,717
|
|
|||||
Long-term borrowings:
|
|
|
|
|
|
||||||||||
FHLB advances
|
103,860
|
|
105,890
|
|
116,352
|
|
136,939
|
|
148,862
|
|
|||||
National market repurchase agreements
|
—
|
|
—
|
|
—
|
|
—
|
|
40,000
|
|
|||||
Unamortized debt issuance costs
|
—
|
|
—
|
|
(22
|
)
|
(27
|
)
|
(33
|
)
|
|||||
Junior subordinated debt securities
|
7,239
|
|
7,195
|
|
7,151
|
|
7,107
|
|
7,061
|
|
|||||
Total long-term borrowings
|
111,099
|
|
113,085
|
|
123,481
|
|
144,019
|
|
195,890
|
|
|||||
Total borrowed funds
|
$
|
407,929
|
|
$
|
473,812
|
|
$
|
326,956
|
|
$
|
353,510
|
|
$
|
389,607
|
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Capital Amounts:
|
|
|
|
|
|
|
|||||||||
Common Equity Tier 1
|
368,195
|
|
$
|
359,645
|
|
$
|
335,393
|
|
$
|
327,172
|
|
$
|
326,966
|
|
|
Tier 1
|
375,433
|
|
366,840
|
|
342,544
|
|
334,279
|
|
334,027
|
|
|||||
Total (Tier 1 and Tier 2)
|
395,313
|
|
386,105
|
|
361,343
|
|
355,977
|
|
355,951
|
|
|||||
Net risk-weighted assets
|
$
|
2,765,328
|
|
$
|
2,765,769
|
|
$
|
2,524,970
|
|
$
|
2,473,329
|
|
$
|
2,456,797
|
|
Capital Ratios:
|
|
|
|
|
|
||||||||||
Common Equity Tier 1
|
13.31
|
%
|
13.00
|
%
|
13.28
|
%
|
13.23
|
%
|
13.31
|
%
|
|||||
Tier 1
|
13.58
|
%
|
13.26
|
%
|
13.57
|
%
|
13.52
|
%
|
13.60
|
%
|
|||||
Total (Tier 1 and Tier 2)
|
14.30
|
%
|
13.96
|
%
|
14.31
|
%
|
14.39
|
%
|
14.49
|
%
|
|||||
Leverage ratio
|
9.71
|
%
|
9.75
|
%
|
9.86
|
%
|
9.75
|
%
|
9.81
|
%
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Tangible equity:
|
|
|
|
|
|
||||||||||
Total stockholders' equity
|
$
|
504,290
|
|
$
|
499,339
|
|
$
|
456,815
|
|
$
|
458,592
|
|
$
|
457,386
|
|
Less: goodwill and other intangible assets
|
163,401
|
|
163,953
|
|
143,820
|
|
144,576
|
|
143,859
|
|
|||||
Tangible equity
|
$
|
340,889
|
|
$
|
335,386
|
|
$
|
312,995
|
|
$
|
314,016
|
|
$
|
313,527
|
|
Tangible assets:
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
4,003,089
|
|
$
|
3,972,091
|
|
$
|
3,634,929
|
|
$
|
3,581,686
|
|
$
|
3,552,412
|
|
Less: goodwill and other intangible assets
|
163,401
|
|
163,953
|
|
143,820
|
|
144,576
|
|
143,859
|
|
|||||
Tangible assets
|
$
|
3,839,688
|
|
$
|
3,808,138
|
|
$
|
3,491,109
|
|
$
|
3,437,110
|
|
$
|
3,408,553
|
|
Tangible book value per common share:
|
|
|
|
|
|||||||||||
Tangible equity
|
$
|
340,889
|
|
$
|
335,386
|
|
$
|
312,995
|
|
$
|
314,016
|
|
$
|
313,527
|
|
Common shares outstanding
|
19,550,014
|
|
19,528,952
|
|
18,365,035
|
|
18,287,449
|
|
18,281,194
|
|
|||||
Tangible book value per common share
|
$
|
17.44
|
|
$
|
17.17
|
|
$
|
17.04
|
|
$
|
17.17
|
|
$
|
17.15
|
|
Tangible equity to tangible assets ratio:
|
|
|
|
|
|||||||||||
Tangible equity
|
$
|
340,889
|
|
$
|
335,386
|
|
$
|
312,995
|
|
$
|
314,016
|
|
$
|
313,527
|
|
Tangible assets
|
$
|
3,839,688
|
|
$
|
3,808,138
|
|
$
|
3,491,109
|
|
$
|
3,437,110
|
|
$
|
3,408,553
|
|
Tangible equity to tangible assets
|
8.88
|
%
|
8.81
|
%
|
8.97
|
%
|
9.14
|
%
|
9.20
|
%
|
(Dollars in thousands)
|
September 30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
September 30,
2017 |
||||||||||
Home equity lines of credit
|
$
|
101,651
|
|
$
|
103,975
|
|
$
|
86,787
|
|
$
|
83,949
|
|
$
|
84,101
|
|
Unadvanced construction loans
|
71,836
|
|
87,477
|
|
106,410
|
|
112,475
|
|
103,732
|
|
|||||
Other loan commitments
|
324,059
|
|
319,519
|
|
267,482
|
|
260,552
|
|
280,974
|
|
|||||
Loan commitments
|
$
|
497,546
|
|
$
|
510,971
|
|
$
|
460,679
|
|
$
|
456,976
|
|
$
|
468,807
|
|
Standby letters of credit
|
$
|
9,979
|
|
$
|
20,354
|
|
$
|
20,481
|
|
$
|
20,873
|
|
$
|
21,788
|
|
(a)
|
information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be accumulated and communicated to Peoples’ management, including its President and Chief Executive Officer and its Executive Vice President, Chief Financial Officer and Treasurer, as appropriate to allow timely decisions regarding required disclosure;
|
(b)
|
information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and
|
(c)
|
Peoples’ disclosure controls and procedures were effective as of the end of the fiscal quarter covered by this Quarterly Report on Form 10-Q.
|
(1)
|
On November 3, 2015, Peoples announced that on that same date, Peoples' Board of Directors authorized a share repurchase program authorizing Peoples to purchase up to $20.0 million of its outstanding common shares. No common shares were purchased under this share repurchase program during the three months ended September 30, 2018.
|
(2)
|
Information reported includes 1,519 common shares withheld during July to pay income taxes associated with restricted common shares which vested.
|
(3)
|
Information reported includes 670 common shares and 320 common shares purchased in open market transactions during July and September, respectively, by Peoples Bank under the Rabbi Trust Agreement. The Rabbi Trust Agreement establishes a rabbi trust that holds assets to provide funds for the payment of the benefits under the Peoples Bancorp Inc. Third Amended and Restated Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries.
|
Exhibit
Number
|
|
Description
|
|
Exhibit Location
|
|
|
|
|
|
2
|
|
Agreement and Plan of Merger, dated as of October 23, 2017, between Peoples Bancorp Inc. and ASB Financial Corp.
+
|
|
Included as Annex A to the proxy statement / prospectus which forms a part of the Registration Statement on Form S-4 of Peoples Bancorp Inc. ("Peoples") (Registration No. 333-222054)
|
|
|
|
|
|
3.1(a)
|
|
Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on May 3, 1993)
|
|
Incorporated herein by reference to Exhibit 3(a) to Peoples' Registration Statement on Form 8-B filed July 20, 1993 (File No. 0-16772)
|
|
|
|
|
|
|
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 22, 1994)
|
|
Incorporated herein by reference to Exhibit 3.1(b) to Peoples' Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (File No. 0-16772) ("Peoples' September 30, 2017 Form 10-Q")
|
|
|
|
|
|
|
|
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 9, 1996)
|
|
Incorporated herein by reference to Exhibit 3.1(c) to Peoples' September 30, 2017 Form 10-Q
|
|
|
|
|
|
|
|
Certificate of Amendment to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on April 23, 2003)
|
|
Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2003 (File No. 0-16772) (“Peoples’ March 31, 2003 Form 10-Q”)
|
|
|
|
|
|
|
|
Certificate of Amendment by Shareholders to the Amended Articles of Incorporation of Peoples Bancorp Inc. (as filed with the Ohio Secretary of State on January 22, 2009)
|
|
Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on January 23, 2009 (File No. 0-16772)
|
|
|
|
|
|
|
|
Certificate of Amendment by Directors to Articles filed with the Secretary of State of the State of Ohio on January 28, 2009, evidencing adoption of amendments by the Board of Directors of Peoples Bancorp Inc. to Article FOURTH of Amended Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Peoples Bancorp Inc.
|
|
Incorporated herein by reference to Exhibit 3.1 to Peoples’ Current Report on Form 8-K dated and filed on February 2, 2009 (File No. 0-16772)
|
|
|
|
|
|
|
|
Amended Articles of Incorporation of Peoples Bancorp Inc. (This document represents the Amended Articles of Incorporation of Peoples Bancorp Inc. in compiled form incorporating all amendments. The compiled document has not been filed with the Ohio Secretary of State.)
|
|
Incorporated herein by reference to Exhibit 3.1(g) to Peoples’ Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (File No. 0-16772)
|
|
|
|
|
|
|
3.2(a)
|
|
Code of Regulations of Peoples Bancorp Inc.
|
|
Incorporated herein by reference to Exhibit 3(b) to Peoples’ Registration Statement on Form 8-B filed on July 20, 1993 (File No. 0-16772)
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Certified Resolutions Regarding Adoption of Amendments to Sections 1.03, 1.04, 1.05, 1.06, 1.08, 1.10, 2.03(C), 2.07, 2.08, 2.10 and 6.02 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 10, 2003
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Incorporated herein by reference to Exhibit 3(c) to Peoples’ March 31, 2003 Form 10-Q
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Certificate regarding adoption of amendments to Sections 3.01, 3.03, 3.04, 3.05, 3.06, 3.07, 3.08 and 3.11 of the Code of Regulations of Peoples Bancorp Inc. by shareholders on April 8, 2004
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Incorporated herein by reference to Exhibit 3(a) to Peoples’ Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2004 (File No. 0-16772)
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+Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of SEC Regulation S-K. A copy of any omitted schedules or exhibits will be furnished supplementally to the SEC upon request.
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PEOPLES BANCORP INC.
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Date:
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November 7, 2018
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By: /s/
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CHARLES W. SULERZYSKI
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Charles W. Sulerzyski
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President and Chief Executive Officer
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Date:
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November 7, 2018
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By: /s/
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JOHN C. ROGERS
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John C. Rogers
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Executive Vice President,
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Chief Financial Officer and Treasurer
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(i)
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[___] shares on the one year anniversary of the Grant Date;
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•
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The Company has net income greater than zero.
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•
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The Company maintains a “well-capitalized” status as determined in accordance with applicable regulatory standards.
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2018
, of Peoples Bancorp Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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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 registrant's board of directors (or persons performing the equivalent functions):
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a.
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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
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b.
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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.
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Date:
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November 7, 2018
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By:/s/
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CHARLES W. SULERZYSKI
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Charles W. Sulerzyski
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President and Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2018
, of Peoples Bancorp Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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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 registrant's board of directors (or persons performing the equivalent functions):
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a.
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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
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b.
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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.
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Date:
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November 7, 2018
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By:/s/
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JOHN C. ROGERS
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John C. Rogers
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Executive Vice President,
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Chief Financial Officer and Treasurer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Peoples Bancorp and its subsidiaries.
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Date:
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November 7, 2018
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By: /s/
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CHARLES W. SULERZYSKI
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Charles W. Sulerzyski
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President and Chief Executive Officer
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Date:
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November 7, 2018
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By:/s/
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JOHN C. ROGERS
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John C. Rogers
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Executive Vice President,
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Chief Financial Officer and Treasurer
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