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Hawaii
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99-0212597
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, No Par Value
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CPF
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New York Stock Exchange
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Large Accelerated Filer
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x
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Accelerated Filer
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o
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Non-Accelerated Filer
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o
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Smaller Reporting Company
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☐
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Emerging Growth Company
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☐
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Page
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Part I.
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Part II.
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Part III.
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Part IV.
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•
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increase in inventory or adverse conditions in the real estate market and deterioration in the construction industry;
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•
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adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality and losses in our loan portfolio;
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•
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our ability to successfully implement and achieve the objectives of our RISE2020 initiative;
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•
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the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, earthquakes and pandemic virus and disease) on the Company’s business and operations and on tourism, the military and other major industries operating within the Hawaii market and any other markets in which the Company does business;
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•
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deterioration or malaise in domestic economic conditions, including any destabilization in the financial industry and deterioration of the real estate market, as well as the impact of declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular;
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•
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changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
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•
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the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), changes in capital standards, other regulatory reform and federal and state legislation, including but not limited to regulations promulgated by the Consumer Financial Protection Bureau (the "CFPB"), government-sponsored enterprise reform, and any related rules and regulations which affect our business operations and competitiveness;
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•
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the costs and effects of legal and regulatory developments, including legal proceedings or regulatory or other governmental inquiries and proceedings and the resolution thereof, the results of regulatory examinations or reviews and the effect of, and our ability to comply with, any regulatory orders or actions we are or may become subject to;
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•
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ability to successfully implement our initiatives to lower our efficiency ratio;
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•
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the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System (the "FRB" of the "Federal Reserve");
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•
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inflation, interest rate, securities market and monetary fluctuations, including the anticipated replacement of the London Interbank Offered Rate ("LIBOR") Index and the impact on our loans and debt which are tied to that index;
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•
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negative trends in our market capitalization and adverse changes in the price of the Company’s common stock;
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•
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political instability;
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•
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acts of war or terrorism;
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•
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changes in consumer spending, borrowings and savings habits;
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•
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failure to maintain effective internal control over financial reporting or disclosure controls and procedures;
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•
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cybersecurity and data privacy breaches and the consequences therefrom;
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•
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the ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures;
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•
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technological changes and developments;
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•
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changes in the competitive environment among financial holding companies and other financial service providers;
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•
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the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board ("FASB") and other accounting standard setters and the cost and resources required to implement such changes;
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•
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our ability to attract and retain key personnel;
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•
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changes in our organization, compensation and benefit plans; and
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•
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our success at managing any of the risks involved in the foregoing items.
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(1)
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Residential Mortgage Lending. Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family, owner-occupied residences in Hawaii and home equity lines of credit and loans. We typically require loan-to-value ratios of not more than 80%, although higher levels are permitted with accompanying mortgage insurance. First mortgage loans secured by residential properties have an average loan size of approximately $0.5 million and marketable collateral. Changes in interest rates, the economic recession and other market factors have impacted, and future changes will likely continue to impact, the marketability and value of collateral and the financial condition of our borrowers and thus the level of credit risk inherent in the portfolio. A portion of our first residential mortgage loan originations are sold in the secondary market and a portion is put into our loan portfolio.
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(2)
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Commercial, Financial and Agricultural Lending and Leasing. Loans in this category consist primarily of term loans and lines of credit to small and middle-market businesses and professionals in the state of Hawaii. The borrower's business is typically regarded as the principal source of repayment, although our underwriting policies and practices generally require additional sources of collateral, including real estate and other business assets, as well as personal guarantees where possible to mitigate risk and help to reduce credit losses.
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(3)
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Commercial Mortgage Lending. Loans in this category consist of loans secured by commercial real estate, including but not limited to, structures and facilities to support activities designated as multi-family residential properties, industrial, warehouse, general office, retail, health care and religious dwellings. Our underwriting policies and practices generally requires net cash flow from the property to cover the debt service while maintaining an appropriate amount of reserves and permits consideration of liquidation of the collateral as a secondary source of repayment.
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(4)
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Construction Lending. Construction land development and other land loans encompasses the financing of residential and commercial construction projects.
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(5)
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Consumer Lending. Loans in this category are generally either unsecured or secured by personal assets, such as automobiles, and the average loan size is generally small.
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•
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Improving regulatory efficiency and effectiveness by critically evaluating mandates and regulatory fragmentation, overlap, and duplication across regulatory agencies;
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•
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Aligning the financial system to help support the U.S. economy;
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•
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Reducing regulatory burden by decreasing unnecessary complexity;
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•
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Tailoring the regulatory approach based on size and complexity of regulated firms and requiring greater regulatory cooperation and coordination among financial regulators; and
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•
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Aligning regulations to support market liquidity, investment, and lending in the U.S. economy.
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•
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Creating a regulatory landscape that better supports nonbank financial institutions, embraces financial technology and fosters innovation.
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•
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Tier 1 Leverage Ratio, equal to the ratio of Tier 1 capital to quarterly average assets (net of goodwill, certain other intangible assets and certain other deductions).
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•
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Common Equity Tier 1 ("CET1") Risk-Based Capital Ratio, equal to the ratio of CET1 capital to risk-weighted assets. CET1 capital primarily includes common stockholders' equity subject to certain regulatory adjustments and deductions, including with respect to goodwill, intangible assets and certain deferred tax assets. Certain of these adjustments and deductions were subject to phase-in periods that began on January 1, 2015 and ended on January 1, 2018. The last phase of the Basel III Capital Rule's transition provisions relating to capital deductions for mortgage servicing assets, certain deferred tax assets and investments in the capital instruments of unconsolidated financial institutions, and the recognition of minority interests in regulatory capital was delayed for certain bank holding companies and banks, including us and the bank, but a revised rule was finalized in July 2019 that will be effective in April 2020. Hybrid securities, such as trust preferred securities, generally are excluded from being counted as Tier 1 capital. However, for bank holding companies like us that have less than $15 billion in total consolidated assets, certain trust preferred securities were grandfathered in as a component of Tier 1 capital. In addition, because we are a not an advanced approach banking organization, we were permitted to make a one-time permanent election to exclude accumulated other comprehensive income items from regulatory capital. We made this election in order to avoid s
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•
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Tier 1 Risk-Based Capital Ratio, equal to the ratio of Tier 1 capital to risk-weighted assets. Tier 1 capital is primarily comprised of CET1 capital, perpetual preferred stock and certain qualifying capital instruments.
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•
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Total Risk-Based Capital Ratio, equal to the ratio of total capital, including CET1 capital, Tier 1 capital and Tier 2 capital, to risk-weighted assets. Tier 2 capital primarily includes qualifying subordinated debt and qualifying ALLL. Tier 2 capital also includes, among other things, certain trust preferred securities.
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Minimum Basel III Regulatory Capital Ratio
Plus Capital Conservation Buffer |
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CET1 risk-based capital ratio
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7.0
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%
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Tier 1 risk-based capital ratio
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8.5
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%
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Total risk-based capital ratio
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10.5
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%
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•
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require regular periodic reports and such additional reports of information as the Federal Reserve may require;
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•
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require bank holding companies to meet or exceed minimum capital requirements (see the "Capital Adequacy Requirements" section above and the "Capital Resources" section in the MD&A);
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•
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require that bank holding companies serve as a source of financial and managerial strength to subsidiary banks and commit resources as necessary to support each subsidiary bank. The source-of-strength doctrine most directly affects bank holding companies where a bank holding company's subsidiary bank fails to maintain adequate capital levels. In such a situation, the subsidiary bank will be required by the bank's federal regulator to take "prompt corrective action" (see the "Prompt Corrective Action Provisions" section above);
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•
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limit dividends payable to shareholders and restrict the ability of bank holding companies to obtain dividends or other distributions from their subsidiary banks;
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•
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require a bank holding company to terminate an activity or terminate control of or liquidate or divest certain subsidiaries, affiliates or investments if the Federal Reserve believes the activity or the control of the subsidiary or affiliate constitutes a significant risk to the financial safety, soundness or stability of any bank subsidiary;
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•
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require the prior approval for changes in senior executive officers or directors and prohibit golden parachute payments, including change in control agreements, or new employment agreements with such payment terms, which are contingent upon termination when a bank holding company is deemed to be in troubled condition;
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•
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regulate provisions of certain bank holding company debt, including the authority to impose interest ceilings and reserve requirements on such debt and require prior approval to purchase or redeem securities in certain situations;
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•
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require prior approval for the acquisition of 5% or more of the voting stock of a bank or bank holding company by bank holding companies or other acquisitions and mergers with other banks or bank holding companies and consider certain competitive, management, financial, and anti-money laundering compliance impact on the U.S.; and
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•
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require prior notice and/or prior approval of the acquisition of control of a bank or a bank holding company by a shareholder or individuals acting in concert with ownership or control of 10% of the voting stock being a presumption of control.
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•
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require affirmative action to correct any conditions resulting from any violation or practice;
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•
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direct an increase in capital and the maintenance of higher specific minimum capital ratios, which may preclude the bank from being deemed well capitalized and restrict its ability to accept certain brokered deposits;
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•
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restrict the bank's growth geographically, by products and services, or by mergers and acquisitions, including bidding in FDIC receiverships for failed banks;
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•
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enter into or issue informal or formal enforcement actions, including required Board resolutions, memoranda of understanding, written agreements and consent or cease and desist orders or prompt corrective action orders to take corrective action and cease unsafe and unsound practices;
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•
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require prior approval of senior executive officer or director changes; remove officers and directors and assess civil monetary penalties; and
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•
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terminate FDIC insurance, revoke the charter and/or take possession of and close and liquidate the bank or appoint the FDIC as receiver, which for a Hawaii state-chartered bank would result in a revocation of its charter.
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•
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current economic conditions and their estimated effects on specific borrowers;
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•
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an evaluation of the existing relationships among loans, potential loan losses and the present level of the allowance for loan and lease losses;
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•
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results of examinations of our loan portfolios by regulatory agencies; and
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•
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management's internal review of the loan portfolio.
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•
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inflation;
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•
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recession;
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•
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market conditions;
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•
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changes in unemployment;
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•
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the money supply;
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•
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international disorder and instability in domestic and foreign financial markets; and
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•
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governmental actions.
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•
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the capital that must be maintained;
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•
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the kinds of activities that can be engaged in;
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•
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the kinds and amounts of investments that can be made;
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•
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the locations of offices;
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•
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insurance of deposits and the premiums that we must pay for this insurance;
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•
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procedures and policies we must adopt;
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•
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conditions and restrictions on our executive compensation; and
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•
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how much cash we must set aside as reserves for deposits.
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•
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the ability to develop, maintain and build upon long-term customer relationships based on top quality service, high ethical standards and safe, sound assets;
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•
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the ability to expand our market position;
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•
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the scope, relevance and pricing of products and services offered to meet customer needs and demands;
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•
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the rate at which we introduce new products and services relative to our competitors;
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•
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customer satisfaction with our level of service; and
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•
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industry and general economic trends.
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•
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failure to comply with all of the requirements of any governmental orders or agreements we may become subject to and the possibility of resulting action by the regulators;
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•
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deterioration of asset quality;
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•
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the incurrence of losses;
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•
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actual or anticipated quarterly fluctuations in our operating results and financial condition;
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•
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changes in revenue or earnings/losses estimates or publication of research reports and recommendations by financial analysts;
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•
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failure to meet analysts' revenue or earnings/losses estimates;
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•
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speculation in the press or investment community;
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•
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strategic actions by us or our competitors, such as mergers, acquisitions, restructurings, or public offerings;
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•
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additions or departures of key personnel;
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•
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actions by institutional shareholders;
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•
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fluctuations in the stock price and operating results of our competitors;
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•
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future sales of other equity or debt securities, including our common stock;
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•
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general market conditions and, in particular, developments related to market conditions for the financial services industry;
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•
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proposed or adopted regulatory changes or developments;
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•
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breaches in our security systems and loss of customer data;
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•
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anticipated or pending investigations, proceedings or litigation that involve or affect us; or
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•
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domestic and international economic factors unrelated to our performance.
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December 31,
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||||||||||||||||||||||
Index
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||||||||||
Central Pacific Financial Corp.
|
|
$
|
100.00
|
|
|
$
|
106.14
|
|
|
$
|
155.22
|
|
|
$
|
150.73
|
|
|
$
|
126.63
|
|
|
$
|
158.74
|
|
Russell 2000
|
|
100.00
|
|
|
95.59
|
|
|
115.95
|
|
|
132.94
|
|
|
118.30
|
|
|
148.49
|
|
||||||
S&P 600 Commercial Bank Index
|
|
100.00
|
|
|
106.44
|
|
|
154.13
|
|
|
150.74
|
|
|
135.89
|
|
|
163.84
|
|
|
|
Issuer Purchases of Equity Securities
|
|||||||||||||||||||
Period
|
|
Total Number
of Shares Purchased |
|
Average
Price Paid per Share |
|
Total Number
of Shares Purchased as Part of Publicly Announced Programs |
|
Maximum
Number of Shares that May Yet Be Purchased Under the Program |
|
Dollar Value
of Shares Purchased as Part of Publicly Announced Programs |
|
Maximum
Dollar Value of Shares that May Yet Be Purchased Under the Program |
|||||||||
October 1-31
|
|
71,000
|
|
|
$
|
28.53
|
|
|
71,000
|
|
|
—
|
|
|
$
|
2,025,739
|
|
|
$
|
23,901,697
|
|
November 1-30
|
|
47,535
|
|
|
29.56
|
|
|
47,535
|
|
|
—
|
|
|
1,405,354
|
|
|
22,496,343
|
|
|||
December 1-31
|
|
47,168
|
|
|
29.59
|
|
|
47,168
|
|
|
—
|
|
|
1,395,484
|
|
|
21,100,859
|
|
|||
Total
|
|
165,703
|
|
|
29.13
|
|
|
165,703
|
|
|
—
|
|
|
$
|
4,826,577
|
|
|
21,100,859
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||
Selected Financial Data
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total interest income
|
|
$
|
216,383
|
|
|
$
|
198,294
|
|
|
$
|
182,562
|
|
|
$
|
167,139
|
|
|
$
|
156,035
|
|
Total interest expense
|
|
32,309
|
|
|
25,296
|
|
|
14,859
|
|
|
9,189
|
|
|
6,507
|
|
|||||
Net interest income
|
|
184,074
|
|
|
172,998
|
|
|
167,703
|
|
|
157,950
|
|
|
149,528
|
|
|||||
Provision (credit) for loan and lease losses
|
|
6,317
|
|
|
(1,124
|
)
|
|
(2,674
|
)
|
|
(5,517
|
)
|
|
(15,671
|
)
|
|||||
Net interest income after provision for loan and lease losses
|
|
177,757
|
|
|
174,122
|
|
|
170,377
|
|
|
163,467
|
|
|
165,199
|
|
|||||
Other operating income
|
|
41,801
|
|
|
38,804
|
|
|
36,496
|
|
|
42,316
|
|
|
34,799
|
|
|||||
Other operating expense (1)
|
|
141,631
|
|
|
134,682
|
|
|
131,073
|
|
|
132,518
|
|
|
125,964
|
|
|||||
Income before income taxes
|
|
77,927
|
|
|
78,244
|
|
|
75,800
|
|
|
73,265
|
|
|
74,034
|
|
|||||
Income tax expense (1)
|
|
19,605
|
|
|
18,758
|
|
|
34,596
|
|
|
26,273
|
|
|
28,166
|
|
|||||
Net income
|
|
58,322
|
|
|
59,486
|
|
|
41,204
|
|
|
46,992
|
|
|
45,868
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet Data (as of Year-End):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest-bearing deposits in other financial institutions
|
|
$
|
24,554
|
|
|
$
|
21,617
|
|
|
$
|
6,975
|
|
|
$
|
9,069
|
|
|
$
|
8,397
|
|
Investment securities (2)
|
|
1,128,110
|
|
|
1,354,812
|
|
|
1,496,644
|
|
|
1,461,515
|
|
|
1,520,172
|
|
|||||
Loans and leases
|
|
4,449,540
|
|
|
4,078,366
|
|
|
3,770,615
|
|
|
3,524,890
|
|
|
3,211,532
|
|
|||||
Allowance for loan and lease losses
|
|
47,971
|
|
|
47,916
|
|
|
50,001
|
|
|
56,631
|
|
|
63,314
|
|
|||||
Mortgage servicing rights
|
|
14,718
|
|
|
15,596
|
|
|
15,843
|
|
|
15,779
|
|
|
17,797
|
|
|||||
Core deposit premium
|
|
—
|
|
|
—
|
|
|
2,006
|
|
|
4,680
|
|
|
7,355
|
|
|||||
Total assets
|
|
6,012,672
|
|
|
5,807,026
|
|
|
5,623,708
|
|
|
5,384,236
|
|
|
5,131,288
|
|
|||||
Core deposits (3)
|
|
4,259,325
|
|
|
4,015,942
|
|
|
3,991,234
|
|
|
3,713,567
|
|
|
3,582,178
|
|
|||||
Total deposits
|
|
5,120,023
|
|
|
4,946,490
|
|
|
4,956,354
|
|
|
4,608,201
|
|
|
4,433,439
|
|
|||||
Long-term debt
|
|
101,547
|
|
|
122,166
|
|
|
92,785
|
|
|
92,785
|
|
|
92,785
|
|
|||||
Total shareholders’ equity
|
|
528,520
|
|
|
491,725
|
|
|
500,011
|
|
|
504,650
|
|
|
494,614
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic earnings per common share
|
|
$
|
2.05
|
|
|
$
|
2.02
|
|
|
$
|
1.36
|
|
|
$
|
1.52
|
|
|
$
|
1.42
|
|
Diluted earnings per common share
|
|
2.03
|
|
|
2.01
|
|
|
1.34
|
|
|
1.50
|
|
|
1.40
|
|
|||||
Cash dividends declared per common share
|
|
0.90
|
|
|
0.82
|
|
|
0.70
|
|
|
0.60
|
|
|
0.82
|
|
|||||
Book value per common share
|
|
18.68
|
|
|
16.97
|
|
|
16.65
|
|
|
16.39
|
|
|
16.06
|
|
|||||
Diluted weighted average shares outstanding (in thousands)
|
|
28,677
|
|
|
29,610
|
|
|
30,638
|
|
|
31,225
|
|
|
32,651
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets
|
|
0.99
|
%
|
|
1.05
|
%
|
|
0.75
|
%
|
|
0.90
|
%
|
|
0.92
|
%
|
|||||
Return on average shareholders’ equity
|
|
11.36
|
|
|
12.22
|
|
|
8.03
|
|
|
9.16
|
|
|
8.91
|
|
|||||
Net income to average tangible shareholders’ equity
|
|
11.36
|
|
|
12.24
|
|
|
8.08
|
|
|
9.27
|
|
|
9.06
|
|
|||||
Average shareholders’ equity to average assets
|
|
8.72
|
|
|
8.56
|
|
|
9.32
|
|
|
9.78
|
|
|
10.37
|
|
|||||
Dividend payout ratio
|
|
44.33
|
|
|
40.80
|
|
|
52.24
|
|
|
40.00
|
|
|
58.57
|
|
|||||
Efficiency ratio (1)
|
|
62.70
|
|
|
63.59
|
|
|
64.19
|
|
|
66.17
|
|
|
68.34
|
|
|||||
Net interest margin (4)
|
|
3.35
|
|
|
3.22
|
|
|
3.28
|
|
|
3.27
|
|
|
3.30
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Regulatory Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Leverage capital
|
|
9.5
|
%
|
|
9.9
|
%
|
|
10.4
|
%
|
|
10.6
|
%
|
|
10.7
|
%
|
|||||
Tier 1 risk-based capital
|
|
12.6
|
|
|
13.5
|
|
|
14.7
|
|
|
14.2
|
|
|
14.4
|
|
|||||
Total risk-based capital
|
|
13.6
|
|
|
14.7
|
|
|
15.9
|
|
|
15.5
|
|
|
15.7
|
|
|||||
CET1 risk-based capital
|
|
11.5
|
|
|
11.9
|
|
|
12.4
|
|
|
12.3
|
|
|
12.8
|
|
|
|
Year Ended December 31,
|
|||||||||||||
Selected Financial Data
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
|
|
(Dollars in thousands, except per share data)
|
|||||||||||||
Asset Quality:
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loan charge-offs (recoveries) to average loans and leases
|
|
0.15
|
%
|
|
0.02
|
%
|
|
0.11
|
%
|
|
0.03
|
%
|
|
(0.16
|
)%
|
Nonaccrual loans to total loans and leases
|
|
0.03
|
|
|
0.06
|
|
|
0.07
|
|
|
0.24
|
|
|
0.44
|
|
Allowance for loan and lease losses to total loans and leases
|
|
1.08
|
|
|
1.17
|
|
|
1.33
|
|
|
1.61
|
|
|
1.97
|
|
Allowance for loan and lease losses to nonaccrual loans
|
|
3,084.95
|
|
|
2,062.68
|
|
|
1,801.84
|
|
|
674.50
|
|
|
443.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The efficiency ratio is a non-GAAP financial measure which should be read and used in conjunction with the Company's GAAP financial information. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may calculate the efficiency ratio differently. Our efficiency ratio is derived by dividing other operating expense by net operating revenue (net interest income plus other operating income). Prior period other operating expense, income tax expense and efficiency ratio have been revised to conform to current period, which reflects reclassifications related to the change in accounting policy for our investments in low-income housing tax credit partnerships referred to in Note 1 - Summary of Significant Accounting Policies. See Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations —Table 5 - Reconciliation of Efficiency Ratio.
|
(2)
|
Held-to-maturity securities at amortized cost, available-for-sale securities at fair value.
|
(3)
|
Noninterest-bearing demand, interest-bearing demand and savings deposits, and time deposits under $100,000.
|
(4)
|
Computed on a taxable-equivalent basis using a federal statutory tax rate of 21% for the years ended December 31, 2019 and 2018 and 35% for the previous years.
|
|
|
Year Ended December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision (credit) for loan and lease losses
|
|
$
|
6,317
|
|
|
$
|
(1,124
|
)
|
|
$
|
(2,674
|
)
|
|
$
|
(5,517
|
)
|
|
$
|
(15,671
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other operating income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage banking income
|
|
5,983
|
|
|
7,315
|
|
|
6,962
|
|
|
8,069
|
|
|
7,254
|
|
|||||
Net gain (loss) on sales of foreclosed assets
|
|
(145
|
)
|
|
—
|
|
|
205
|
|
|
607
|
|
|
568
|
|
|||||
Gain on sale of premises and equipment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,537
|
|
|
—
|
|
|||||
Investment securities gains (losses)
|
|
36
|
|
|
(279
|
)
|
|
(1,410
|
)
|
|
—
|
|
|
(1,866
|
)
|
|||||
Gain on sale of MasterCard stock (included in other)
|
|
2,555
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other operating expense:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Share-based compensation (included in salaries and employee benefits)
|
|
4,289
|
|
|
3,787
|
|
|
3,266
|
|
|
3,094
|
|
|
4,181
|
|
|||||
Pension obligation settlement (included in salaries and employee benefits)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,848
|
|
|
—
|
|
|||||
One-time reversal of an accrual for a former executive's retirement benefits that will not be paid (included in salaries and employee benefits)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,400
|
)
|
|||||
Foreclosed asset expense
|
|
251
|
|
|
574
|
|
|
151
|
|
|
152
|
|
|
486
|
|
|||||
Charitable contributions (included in other)
|
|
681
|
|
|
635
|
|
|
593
|
|
|
660
|
|
|
2,559
|
|
|||||
FDIC insurance premium (included in other)
|
|
868
|
|
|
1,732
|
|
|
1,724
|
|
|
2,052
|
|
|
2,706
|
|
|||||
Provision (credit) for residential mortgage loan repurchase losses (included in other)
|
|
(403
|
)
|
|
150
|
|
|
209
|
|
|
(387
|
)
|
|
(1,352
|
)
|
|||||
Reserve (credit) for unfunded loan commitments (included in other)
|
|
29
|
|
|
(425
|
)
|
|
94
|
|
|
141
|
|
|
(271
|
)
|
|||||
Branch consolidation and relocation costs (included in other)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
737
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense
|
|
19,605
|
|
|
18,758
|
|
|
34,596
|
|
|
26,273
|
|
|
28,166
|
|
•
|
Loans: Our loans consist of commercial, financial and agricultural, commercial mortgage, and construction loans to small and medium-sized companies, business professionals, and real estate investors and developers, as well as residential mortgage, home equity and consumer loans to local homeowners and individuals. Our lending activities contribute to a key component of our revenues reported in interest income.
|
•
|
Deposits: We offer a full range of deposit products and services including checking, savings and time deposits, cash management, and electronic banking services. We also maintain a broad branch and ATM network in the state of Hawaii. The interest paid on such deposits has a significant impact on our interest expense, an important factor in determining our earnings. In addition, fees and service charges on deposit accounts contribute to our revenues.
|
•
|
We recorded net income of $58.3 million, or $2.03 per diluted common share in 2019, compared to $59.5 million, or $2.01 per diluted common share in 2018.
|
•
|
We recorded return on average assets ("ROA") and return on average shareholders' equity ("ROE") ratios of 0.99% and 11.36%, respectively, in 2019, compared to ROA and ROE ratios of 1.05% and 12.22%, respectively, in 2018.
|
•
|
We saw continued improvement in our asset quality as our nonperforming assets declined by $1.0 million to $1.7 million at December 31, 2019 from $2.7 million at December 31, 2018.
|
•
|
With the healthy market conditions in Hawaii, together with our efforts to expand and strengthen customer relationships, we realized strong loan growth of $371.2 million, or 9.1%, as well as core deposit growth of $243.4 million, or 6.1% in 2019.
|
•
|
Our capital position remained strong, supported by nine consecutive years of profitability and the improvements in our asset quality. With consistent profitability, we were able to increase our regular cash dividends paid from $0.82 per share in 2018 to $0.90 per share in 2019.
|
•
|
In 2019, our strong capital position and consistent profitability also allowed us to execute on our stock repurchase program and repurchase 797,003 shares, or approximately 2.8% of outstanding shares as of December 31, 2018.
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
|
Average
Balance |
|
Average
Yield/ Rate |
|
Amount
of Interest |
|
Average
Balance |
|
Average
Yield/ Rate |
|
Amount
of Interest |
|
Average
Balance |
|
Average
Yield/ Rate |
|
Amount
of Interest |
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits in other financial institutions
|
$
|
9,842
|
|
|
2.04
|
%
|
|
$
|
201
|
|
|
$
|
20,104
|
|
|
1.81
|
%
|
|
$
|
365
|
|
|
$
|
33,012
|
|
|
1.08
|
%
|
|
$
|
356
|
|
Investment securities, excluding valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable (1)
|
1,120,711
|
|
|
2.63
|
|
|
29,517
|
|
|
1,304,523
|
|
|
2.65
|
|
|
34,562
|
|
|
1,351,436
|
|
|
2.51
|
|
|
33,982
|
|
||||||
Tax-exempt (1)
|
130,411
|
|
|
2.95
|
|
|
3,853
|
|
|
163,610
|
|
|
2.86
|
|
|
4,678
|
|
|
169,318
|
|
|
3.52
|
|
|
5,960
|
|
||||||
Total investment securities
|
1,251,122
|
|
|
2.67
|
|
|
33,370
|
|
|
1,468,133
|
|
|
2.67
|
|
|
39,240
|
|
|
1,520,754
|
|
|
2.63
|
|
|
39,942
|
|
||||||
Loans and leases, incl. loans-held-for-sale (2)
|
4,241,308
|
|
|
4.31
|
|
|
182,657
|
|
|
3,898,250
|
|
|
4.09
|
|
|
159,456
|
|
|
3,622,033
|
|
|
3.98
|
|
|
144,224
|
|
||||||
Federal Home Loan Bank ("FHLB") stock
|
16,369
|
|
|
5.89
|
|
|
964
|
|
|
8,990
|
|
|
2.40
|
|
|
215
|
|
|
7,033
|
|
|
1.79
|
|
|
126
|
|
||||||
Total interest-earning assets
|
5,518,641
|
|
|
3.94
|
|
|
217,192
|
|
|
5,395,477
|
|
|
3.69
|
|
|
199,276
|
|
|
5,182,832
|
|
|
3.56
|
|
|
184,648
|
|
||||||
Noninterest-earning assets
|
369,974
|
|
|
|
|
|
|
|
|
292,599
|
|
|
|
|
|
|
|
|
328,174
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
5,888,615
|
|
|
|
|
|
|
|
|
$
|
5,688,076
|
|
|
|
|
|
|
|
|
$
|
5,511,006
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits
|
$
|
984,298
|
|
|
0.08
|
%
|
|
$
|
800
|
|
|
$
|
936,034
|
|
|
0.08
|
%
|
|
$
|
734
|
|
|
$
|
901,171
|
|
|
0.07
|
%
|
|
$
|
641
|
|
Savings and money market deposits
|
1,556,766
|
|
|
0.33
|
|
|
5,100
|
|
|
1,494,658
|
|
|
0.13
|
|
|
2,000
|
|
|
1,449,379
|
|
|
0.08
|
|
|
1,099
|
|
||||||
Time deposits under $100,000
|
171,064
|
|
|
0.69
|
|
|
1,183
|
|
|
177,936
|
|
|
0.51
|
|
|
910
|
|
|
188,951
|
|
|
0.40
|
|
|
758
|
|
||||||
Time deposits of $100,000 and over
|
897,670
|
|
|
1.88
|
|
|
16,861
|
|
|
1,016,643
|
|
|
1.56
|
|
|
15,860
|
|
|
984,069
|
|
|
0.88
|
|
|
8,699
|
|
||||||
Total interest-bearing deposits
|
3,609,798
|
|
|
0.66
|
|
|
23,944
|
|
|
3,625,271
|
|
|
0.54
|
|
|
19,504
|
|
|
3,523,570
|
|
|
0.32
|
|
|
11,197
|
|
||||||
FHLB advances and other short-term borrowings
|
185,909
|
|
|
2.31
|
|
|
4,285
|
|
|
50,630
|
|
|
2.44
|
|
|
1,236
|
|
|
15,531
|
|
|
1.18
|
|
|
183
|
|
||||||
Long-term debt
|
101,547
|
|
|
4.02
|
|
|
4,080
|
|
|
97,746
|
|
|
4.66
|
|
|
4,556
|
|
|
92,785
|
|
|
3.75
|
|
|
3,479
|
|
||||||
Total interest-bearing liabilities
|
3,897,254
|
|
|
0.83
|
|
|
32,309
|
|
|
3,773,647
|
|
|
0.67
|
|
|
25,296
|
|
|
3,631,886
|
|
|
0.41
|
|
|
14,859
|
|
||||||
Noninterest-bearing deposits
|
1,375,903
|
|
|
|
|
|
|
|
|
1,385,427
|
|
|
|
|
|
|
|
|
1,325,583
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
101,848
|
|
|
|
|
|
|
|
|
42,157
|
|
|
|
|
|
|
|
|
40,097
|
|
|
|
|
|
|
|
||||||
Total liabilities
|
5,375,005
|
|
|
|
|
|
|
|
|
5,201,231
|
|
|
|
|
|
|
|
|
4,997,566
|
|
|
|
|
|
|
|
||||||
Shareholders' equity
|
513,610
|
|
|
|
|
|
|
|
|
486,841
|
|
|
|
|
|
|
|
|
513,416
|
|
|
|
|
|
|
|
||||||
Non-controlling interest
|
—
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
||||||
Total equity
|
513,610
|
|
|
|
|
|
|
|
|
486,845
|
|
|
|
|
|
|
|
|
513,440
|
|
|
|
|
|
|
|
||||||
Total liabilities and equity
|
$
|
5,888,615
|
|
|
|
|
|
|
|
|
$
|
5,688,076
|
|
|
|
|
|
|
|
|
$
|
5,511,006
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income
|
|
|
|
|
|
|
$
|
184,883
|
|
|
|
|
|
|
|
|
$
|
173,980
|
|
|
|
|
|
|
|
|
$
|
169,789
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest rate spread
|
|
|
3.11
|
%
|
|
|
|
|
|
3.02
|
%
|
|
|
|
|
|
3.15
|
%
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest margin
|
|
|
|
3.35
|
%
|
|
|
|
|
|
|
|
3.22
|
%
|
|
|
|
|
|
|
|
3.28
|
%
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) At amortized cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(2) Includes nonaccrual loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 Compared to 2018
|
|
2018 Compared to 2017
|
||||||||||||||||||||
|
Increase (Decrease)
Due to Change In: |
|
|
|
Increase (Decrease)
Due to Change In: |
|
|
||||||||||||||||
|
Volume
|
|
Rate
|
|
Net
Change |
|
Volume
|
|
Rate
|
|
Net
Change |
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits in other financial institutions
|
$
|
(187
|
)
|
|
$
|
23
|
|
|
$
|
(164
|
)
|
|
$
|
(156
|
)
|
|
$
|
165
|
|
|
$
|
9
|
|
Investment securities, excluding valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable
|
(4,823
|
)
|
|
(222
|
)
|
|
(5,045
|
)
|
|
(1,054
|
)
|
|
1,634
|
|
|
580
|
|
||||||
Tax-exempt
|
(941
|
)
|
|
116
|
|
|
(825
|
)
|
|
(201
|
)
|
|
(1,081
|
)
|
|
(1,282
|
)
|
||||||
Total investment securities
|
(5,764
|
)
|
|
(106
|
)
|
|
(5,870
|
)
|
|
(1,255
|
)
|
|
553
|
|
|
(702
|
)
|
||||||
Loans and leases, incl. loans-held-for-sale
|
13,934
|
|
|
9,267
|
|
|
23,201
|
|
|
10,958
|
|
|
4,274
|
|
|
15,232
|
|
||||||
FHLB stock
|
177
|
|
|
572
|
|
|
749
|
|
|
35
|
|
|
54
|
|
|
89
|
|
||||||
Total interest-earning assets
|
8,160
|
|
|
9,756
|
|
|
17,916
|
|
|
9,582
|
|
|
5,046
|
|
|
14,628
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing demand deposits
|
66
|
|
|
—
|
|
|
66
|
|
|
19
|
|
|
74
|
|
|
93
|
|
||||||
Savings and money market deposits
|
79
|
|
|
3,021
|
|
|
3,100
|
|
|
41
|
|
|
860
|
|
|
901
|
|
||||||
Time deposits under $100,000
|
(35
|
)
|
|
308
|
|
|
273
|
|
|
(44
|
)
|
|
196
|
|
|
152
|
|
||||||
Time deposits of $100,000 and over
|
(1,827
|
)
|
|
2,828
|
|
|
1,001
|
|
|
285
|
|
|
6,876
|
|
|
7,161
|
|
||||||
Total interest-bearing deposits
|
(1,717
|
)
|
|
6,157
|
|
|
4,440
|
|
|
301
|
|
|
8,006
|
|
|
8,307
|
|
||||||
FHLB advances and other short-term borrowings
|
3,290
|
|
|
(241
|
)
|
|
3,049
|
|
|
414
|
|
|
639
|
|
|
1,053
|
|
||||||
Long-term debt
|
178
|
|
|
(654
|
)
|
|
(476
|
)
|
|
186
|
|
|
891
|
|
|
1,077
|
|
||||||
Total interest-bearing liabilities
|
1,751
|
|
|
5,262
|
|
|
7,013
|
|
|
901
|
|
|
9,536
|
|
|
10,437
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest income
|
$
|
6,409
|
|
|
$
|
4,494
|
|
|
$
|
10,903
|
|
|
$
|
8,681
|
|
|
$
|
(4,490
|
)
|
|
$
|
4,191
|
|
|
|
|
Dollar Change
|
|
Percent Change
|
|
||||||||||||||||||||
|
Year Ended December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
to 2018
|
|
to 2017
|
|
to 2018
|
|
to 2017
|
|
||||||||||||
Mortgage banking income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loan servicing fees
|
$
|
4,252
|
|
|
$
|
5,159
|
|
|
$
|
5,337
|
|
|
$
|
(907
|
)
|
|
$
|
(178
|
)
|
|
(17.6
|
)%
|
|
(3.3
|
)%
|
|
Amortization of mortgage servicing rights
|
(2,460
|
)
|
|
(1,859
|
)
|
|
(2,288
|
)
|
|
(601
|
)
|
|
429
|
|
|
32.3
|
|
|
(18.8
|
)
|
|
|||||
Net gain on sale of residential mortgage loans
|
4,128
|
|
|
4,085
|
|
|
4,069
|
|
|
43
|
|
|
16
|
|
|
1.1
|
|
|
0.4
|
|
|
|||||
Unrealized gain (loss) on interest rate locks
|
63
|
|
|
(70
|
)
|
|
(156
|
)
|
|
133
|
|
|
86
|
|
|
(190.0
|
)
|
|
(55.1
|
)
|
|
|||||
Service charges on deposit accounts
|
8,406
|
|
|
8,406
|
|
|
8,468
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
(0.7
|
)
|
|
|||||
Other service charges and fees
|
14,358
|
|
|
13,123
|
|
|
11,518
|
|
|
1,235
|
|
|
1,605
|
|
|
9.4
|
|
|
13.9
|
|
|
|||||
Income from fiduciary activities
|
4,395
|
|
|
4,245
|
|
|
3,674
|
|
|
150
|
|
|
571
|
|
|
3.5
|
|
|
15.5
|
|
|
|||||
Income from bank-owned life insurance
|
3,105
|
|
|
2,117
|
|
|
3,388
|
|
|
988
|
|
|
(1,271
|
)
|
|
46.7
|
|
|
(37.5
|
)
|
|
|||||
Net gain (loss) on sales of foreclosed assets
|
(145
|
)
|
|
—
|
|
|
205
|
|
|
(145
|
)
|
|
(205
|
)
|
|
N.M.
|
|
|
(100.0
|
)
|
*
|
|||||
Equity in earnings of unconsolidated subsidiaries
|
257
|
|
|
233
|
|
|
602
|
|
|
24
|
|
|
(369
|
)
|
|
10.3
|
|
|
(61.3
|
)
|
|
|||||
Fees on foreign exchange
|
755
|
|
|
905
|
|
|
529
|
|
|
(150
|
)
|
|
376
|
|
|
(16.6
|
)
|
|
71.1
|
|
|
|||||
Loan placement fees
|
702
|
|
|
747
|
|
|
536
|
|
|
(45
|
)
|
|
211
|
|
|
(6.0
|
)
|
|
39.4
|
|
|
|||||
Net gains (losses) on sales of investment securities
|
36
|
|
|
(279
|
)
|
|
(1,410
|
)
|
|
315
|
|
|
1,131
|
|
|
(112.9
|
)
|
|
(80.2
|
)
|
|
|||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income recovered on nonaccrual loans previously charged-off
|
320
|
|
|
720
|
|
|
767
|
|
|
(400
|
)
|
|
(47
|
)
|
|
(55.6
|
)
|
|
(6.1
|
)
|
|
|||||
Other recoveries
|
130
|
|
|
221
|
|
|
149
|
|
|
(91
|
)
|
|
72
|
|
|
(41.2
|
)
|
|
48.3
|
|
|
|||||
Commissions on sale of checks
|
309
|
|
|
328
|
|
|
341
|
|
|
(19
|
)
|
|
(13
|
)
|
|
(5.8
|
)
|
|
(3.8
|
)
|
|
|||||
Gain on sale of MasterCard stock
|
2,555
|
|
|
—
|
|
|
—
|
|
|
2,555
|
|
|
—
|
|
|
N.M.
|
|
|
N.M.
|
|
*
|
|||||
Other
|
635
|
|
|
723
|
|
|
767
|
|
|
(88
|
)
|
|
(44
|
)
|
|
(12.2
|
)
|
|
(5.7
|
)
|
|
|||||
Total other operating income
|
$
|
41,801
|
|
|
$
|
38,804
|
|
|
$
|
36,496
|
|
|
$
|
2,997
|
|
|
$
|
2,308
|
|
|
7.7
|
|
|
6.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total other operating income as a percentage of average assets
|
0.71
|
%
|
|
0.68
|
%
|
|
0.66
|
%
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
* Not meaningful ("N.M.")
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar Change
|
|
Percent Change
|
||||||||||||||||||||
|
Year Ended December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
to 2018
|
|
to 2017
|
|
to 2018
|
|
to 2017
|
||||||||||||
Salaries and employee benefits
|
$
|
82,290
|
|
|
$
|
75,352
|
|
|
$
|
72,286
|
|
|
$
|
6,938
|
|
|
$
|
3,066
|
|
|
9.2
|
%
|
|
4.2
|
%
|
Net occupancy
|
14,299
|
|
|
13,763
|
|
|
13,571
|
|
|
536
|
|
|
192
|
|
|
3.9
|
|
|
1.4
|
|
|||||
Legal and professional services
|
7,354
|
|
|
7,330
|
|
|
7,724
|
|
|
24
|
|
|
(394
|
)
|
|
0.3
|
|
|
(5.1
|
)
|
|||||
Computer software expense
|
10,812
|
|
|
9,841
|
|
|
9,192
|
|
|
971
|
|
|
649
|
|
|
9.9
|
|
|
7.1
|
|
|||||
Amortization of core deposit premium
|
—
|
|
|
2,006
|
|
|
2,674
|
|
|
(2,006
|
)
|
|
(668
|
)
|
|
(100.0
|
)
|
|
(25.0
|
)
|
|||||
Communication expense
|
3,551
|
|
|
3,410
|
|
|
3,659
|
|
|
141
|
|
|
(249
|
)
|
|
4.1
|
|
|
(6.8
|
)
|
|||||
Equipment
|
4,353
|
|
|
4,239
|
|
|
3,785
|
|
|
114
|
|
|
454
|
|
|
2.7
|
|
|
12.0
|
|
|||||
Advertising expense
|
2,661
|
|
|
2,675
|
|
|
2,408
|
|
|
(14
|
)
|
|
267
|
|
|
(0.5
|
)
|
|
11.1
|
|
|||||
Foreclosed asset expense
|
251
|
|
|
574
|
|
|
151
|
|
|
(323
|
)
|
|
423
|
|
|
(56.3
|
)
|
|
280.1
|
|
|||||
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Charitable contributions
|
681
|
|
|
635
|
|
|
593
|
|
|
46
|
|
|
42
|
|
|
7.2
|
|
|
7.1
|
|
|||||
FDIC insurance assessment
|
868
|
|
|
1,732
|
|
|
1,724
|
|
|
(864
|
)
|
|
8
|
|
|
(49.9
|
)
|
|
0.5
|
|
|||||
Miscellaneous loan expenses
|
1,246
|
|
|
1,365
|
|
|
1,144
|
|
|
(119
|
)
|
|
221
|
|
|
(8.7
|
)
|
|
19.3
|
|
|||||
ATM and debit card expenses
|
2,602
|
|
|
2,645
|
|
|
1,961
|
|
|
(43
|
)
|
|
684
|
|
|
(1.6
|
)
|
|
34.9
|
|
|||||
Armored car expenses
|
815
|
|
|
822
|
|
|
873
|
|
|
(7
|
)
|
|
(51
|
)
|
|
(0.9
|
)
|
|
(5.8
|
)
|
|||||
Entertainment and promotions
|
2,071
|
|
|
1,062
|
|
|
1,660
|
|
|
1,009
|
|
|
(598
|
)
|
|
95.0
|
|
|
(36.0
|
)
|
|||||
Stationery and supplies
|
1,049
|
|
|
914
|
|
|
814
|
|
|
135
|
|
|
100
|
|
|
14.8
|
|
|
12.3
|
|
|||||
Directors' fees and expenses
|
968
|
|
|
1,040
|
|
|
873
|
|
|
(72
|
)
|
|
167
|
|
|
(6.9
|
)
|
|
19.1
|
|
|||||
Provision (credit) for residential mortgage loan repurchase losses
|
(403
|
)
|
|
150
|
|
|
209
|
|
|
(553
|
)
|
|
(59
|
)
|
|
(368.7
|
)
|
|
(28.2
|
)
|
|||||
Reserve (credit) for unfunded loan commitments
|
29
|
|
|
(425
|
)
|
|
94
|
|
|
454
|
|
|
(519
|
)
|
|
(106.8
|
)
|
|
(552.1
|
)
|
|||||
Other
|
6,134
|
|
|
5,552
|
|
|
5,678
|
|
|
582
|
|
|
(126
|
)
|
|
10.5
|
|
|
(2.2
|
)
|
|||||
Total other operating expense
|
$
|
141,631
|
|
|
$
|
134,682
|
|
|
$
|
131,073
|
|
|
$
|
6,949
|
|
|
$
|
3,609
|
|
|
5.2
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total other operating expense as a percentage of average assets
|
2.41
|
%
|
|
2.37
|
%
|
|
2.38
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
As Reclassified:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total other operating expenses
|
$
|
141,631
|
|
|
$
|
134,682
|
|
|
$
|
131,073
|
|
|
$
|
132,518
|
|
|
$
|
125,964
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
184,074
|
|
|
172,998
|
|
|
167,703
|
|
|
$
|
157,950
|
|
|
$
|
149,528
|
|
|||
Total other operating income
|
41,801
|
|
|
38,804
|
|
|
36,496
|
|
|
42,316
|
|
|
34,799
|
|
|||||
Total revenue
|
$
|
225,875
|
|
|
$
|
211,802
|
|
|
$
|
204,199
|
|
|
$
|
200,266
|
|
|
$
|
184,327
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio
|
62.70
|
%
|
|
63.59
|
%
|
|
64.19
|
%
|
|
66.17
|
%
|
|
68.34
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Unadjusted:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total other operating expenses
|
$
|
141,631
|
|
|
$
|
135,687
|
|
|
$
|
131,817
|
|
|
$
|
133,563
|
|
|
$
|
127,042
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
184,074
|
|
|
$
|
172,998
|
|
|
$
|
167,703
|
|
|
$
|
157,950
|
|
|
$
|
149,528
|
|
Total other operating income
|
41,801
|
|
|
38,804
|
|
|
36,496
|
|
|
42,316
|
|
|
34,799
|
|
|||||
Total revenue
|
$
|
225,875
|
|
|
$
|
211,802
|
|
|
$
|
204,199
|
|
|
$
|
200,266
|
|
|
$
|
184,327
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio
|
62.70
|
%
|
|
64.06
|
%
|
|
64.55
|
%
|
|
66.69
|
%
|
|
68.92
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of Change:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total operating expenses
|
$
|
—
|
|
|
$
|
(1,005
|
)
|
|
$
|
(744
|
)
|
|
$
|
(1,045
|
)
|
|
$
|
(1,078
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|||
Total other operating income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio
|
—
|
%
|
|
(0.47
|
)%
|
|
(0.36
|
)%
|
|
(0.52
|
)%
|
|
(0.58
|
)%
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Commercial, financial and agricultural
|
$
|
570,304
|
|
|
$
|
581,660
|
|
|
$
|
504,019
|
|
|
$
|
510,440
|
|
|
$
|
521,086
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
95,854
|
|
|
66,927
|
|
|
64,240
|
|
|
101,538
|
|
|
84,885
|
|
|||||
Residential mortgage
|
1,599,801
|
|
|
1,428,205
|
|
|
1,341,221
|
|
|
1,217,234
|
|
|
1,134,325
|
|
|||||
Home equity
|
490,734
|
|
|
468,966
|
|
|
412,230
|
|
|
361,209
|
|
|
301,980
|
|
|||||
Commercial mortgage
|
1,123,415
|
|
|
1,040,278
|
|
|
977,797
|
|
|
885,439
|
|
|
760,749
|
|
|||||
Consumer
|
569,432
|
|
|
492,206
|
|
|
470,746
|
|
|
448,353
|
|
|
407,479
|
|
|||||
Leases
|
—
|
|
|
124
|
|
|
362
|
|
|
677
|
|
|
1,028
|
|
|||||
Total loans and leases
|
4,449,540
|
|
|
4,078,366
|
|
|
3,770,615
|
|
|
3,524,890
|
|
|
3,211,532
|
|
|||||
Allowance for loan and lease losses
|
(47,971
|
)
|
|
(47,916
|
)
|
|
(50,001
|
)
|
|
(56,631
|
)
|
|
(63,314
|
)
|
|||||
Net loans and leases
|
$
|
4,401,569
|
|
|
$
|
4,030,450
|
|
|
$
|
3,720,614
|
|
|
$
|
3,468,259
|
|
|
$
|
3,148,218
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Hawaii
|
|
U.S.
Mainland |
|
Total
|
|
Hawaii
|
|
U.S.
Mainland |
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial, financial and agricultural
|
$
|
454,582
|
|
|
$
|
115,722
|
|
|
$
|
570,304
|
|
|
$
|
439,112
|
|
|
$
|
142,548
|
|
|
$
|
581,660
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
95,854
|
|
|
—
|
|
|
95,854
|
|
|
64,654
|
|
|
2,273
|
|
|
66,927
|
|
||||||
Residential mortgage
|
1,599,801
|
|
|
—
|
|
|
1,599,801
|
|
|
1,428,205
|
|
|
—
|
|
|
1,428,205
|
|
||||||
Home equity
|
490,734
|
|
|
—
|
|
|
490,734
|
|
|
468,966
|
|
|
—
|
|
|
468,966
|
|
||||||
Commercial mortgage
|
909,798
|
|
|
213,617
|
|
|
1,123,415
|
|
|
861,086
|
|
|
179,192
|
|
|
1,040,278
|
|
||||||
Consumer
|
373,451
|
|
|
195,981
|
|
|
569,432
|
|
|
357,908
|
|
|
134,298
|
|
|
492,206
|
|
||||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
124
|
|
|
—
|
|
|
124
|
|
||||||
Total loans and leases
|
3,924,220
|
|
|
525,320
|
|
|
4,449,540
|
|
|
3,620,055
|
|
|
458,311
|
|
|
4,078,366
|
|
||||||
Allowance for loan and lease losses
|
(42,592
|
)
|
|
(5,379
|
)
|
|
(47,971
|
)
|
|
(42,993
|
)
|
|
(4,923
|
)
|
|
(47,916
|
)
|
||||||
Net loans and leases
|
$
|
3,881,628
|
|
|
$
|
519,941
|
|
|
$
|
4,401,569
|
|
|
$
|
3,577,062
|
|
|
$
|
453,388
|
|
|
$
|
4,030,450
|
|
•
|
Physical inspection of the project to ensure work has progressed to the stage for which payment is being requested;
|
•
|
Verification that the work completed is in conformance with plans and specifications and items for which disbursement is requested are within budget; and
|
•
|
Determination that there continues to be satisfactory project progress.
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Closed-end loans
|
$
|
1,599,801
|
|
|
49.7
|
%
|
|
$
|
1,428,205
|
|
|
48.6
|
%
|
|
$
|
1,341,221
|
|
|
49.1
|
%
|
|
$
|
1,217,234
|
|
|
49.4
|
%
|
|
$
|
1,134,325
|
|
|
51.7
|
%
|
Home equity line-of-credit ("HELOC")
|
490,734
|
|
|
15.3
|
|
|
468,966
|
|
|
16.0
|
|
|
412,230
|
|
|
15.1
|
|
|
361,209
|
|
|
14.7
|
|
|
301,980
|
|
|
13.7
|
|
|||||
Subtotal
|
2,090,535
|
|
|
65.0
|
|
|
1,897,171
|
|
|
64.6
|
|
|
1,753,451
|
|
|
64.2
|
|
|
1,578,443
|
|
|
64.1
|
|
|
1,436,305
|
|
|
65.4
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial mortgage
|
1,123,415
|
|
|
35.0
|
|
|
1,040,278
|
|
|
35.4
|
|
|
977,797
|
|
|
35.8
|
|
|
885,439
|
|
|
35.9
|
|
|
760,749
|
|
|
34.6
|
|
|||||
Total mortgage loans
|
$
|
3,213,950
|
|
|
100.0
|
%
|
|
$
|
2,937,449
|
|
|
100.0
|
%
|
|
$
|
2,731,248
|
|
|
100.0
|
%
|
|
$
|
2,463,882
|
|
|
100.0
|
%
|
|
$
|
2,197,054
|
|
|
100.0
|
%
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Automobile
|
$
|
297,186
|
|
|
52.2
|
%
|
|
$
|
284,170
|
|
|
57.7
|
%
|
|
$
|
275,793
|
|
|
58.6
|
%
|
|
$
|
212,926
|
|
|
47.5
|
%
|
|
$
|
190,202
|
|
|
46.7
|
%
|
Other revolving credit plans
|
82,089
|
|
|
14.4
|
|
|
83,158
|
|
|
16.9
|
|
|
77,305
|
|
|
16.4
|
|
|
81,124
|
|
|
18.1
|
|
|
73,756
|
|
|
18.1
|
|
|||||
Student loans
|
5,188
|
|
|
0.9
|
|
|
8,644
|
|
|
1.8
|
|
|
14,920
|
|
|
3.2
|
|
|
25,053
|
|
|
5.6
|
|
|
38,636
|
|
|
9.5
|
|
|||||
Other
|
184,969
|
|
|
32.5
|
|
|
116,234
|
|
|
23.6
|
|
|
102,728
|
|
|
21.8
|
|
|
129,250
|
|
|
28.8
|
|
|
104,885
|
|
|
25.7
|
|
|||||
Total consumer
|
$
|
569,432
|
|
|
100.0
|
%
|
|
$
|
492,206
|
|
|
100.0
|
%
|
|
$
|
470,746
|
|
|
100.0
|
%
|
|
$
|
448,353
|
|
|
100.0
|
%
|
|
$
|
407,479
|
|
|
100.0
|
%
|
|
Maturing
|
|
|
||||||||||||
|
One Year
or Less |
|
Over One
Through Five Years |
|
Over Five
Years |
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Commercial, financial and agricultural
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
$
|
8,245
|
|
|
$
|
113,885
|
|
|
$
|
133,315
|
|
|
$
|
255,445
|
|
With variable interest rates
|
44,591
|
|
|
158,682
|
|
|
111,371
|
|
|
314,644
|
|
||||
Total commercial, financial and agricultural
|
52,836
|
|
|
272,567
|
|
|
244,686
|
|
|
570,089
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Construction
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
—
|
|
|
4,613
|
|
|
40,276
|
|
|
44,889
|
|
||||
With variable interest rates
|
14,715
|
|
|
27,763
|
|
|
8,772
|
|
|
51,250
|
|
||||
Total construction
|
14,715
|
|
|
32,376
|
|
|
49,048
|
|
|
96,139
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
87
|
|
|
13,858
|
|
|
1,057,030
|
|
|
1,070,975
|
|
||||
With variable interest rates
|
603
|
|
|
4,126
|
|
|
520,097
|
|
|
524,826
|
|
||||
Total residential mortgage
|
690
|
|
|
17,984
|
|
|
1,577,127
|
|
|
1,595,801
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Home equity
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
1,000
|
|
|
5,695
|
|
|
42,051
|
|
|
48,746
|
|
||||
With variable interest rates
|
6,012
|
|
|
9,800
|
|
|
425,681
|
|
|
441,493
|
|
||||
Total home equity
|
7,012
|
|
|
15,495
|
|
|
467,732
|
|
|
490,239
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Commercial mortgage
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
3,606
|
|
|
123,460
|
|
|
307,909
|
|
|
434,975
|
|
||||
With variable interest rates
|
6,835
|
|
|
300,189
|
|
|
382,912
|
|
|
689,936
|
|
||||
Total commercial mortgage
|
10,441
|
|
|
423,649
|
|
|
690,821
|
|
|
1,124,911
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
6,477
|
|
|
402,066
|
|
|
74,298
|
|
|
482,841
|
|
||||
With variable interest rates
|
38,265
|
|
|
22,455
|
|
|
25,955
|
|
|
86,675
|
|
||||
Total consumer
|
44,742
|
|
|
424,521
|
|
|
100,253
|
|
|
569,516
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Leases
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
With variable interest rates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total loans and leases
|
$
|
130,436
|
|
|
$
|
1,186,592
|
|
|
$
|
3,129,667
|
|
|
$
|
4,446,695
|
|
|
|
|
|
|
|
|
|
||||||||
All loans
|
|
|
|
|
|
|
|
|
|
|
|
||||
With fixed interest rates
|
$
|
19,415
|
|
|
$
|
663,577
|
|
|
$
|
1,654,879
|
|
|
$
|
2,337,871
|
|
With variable interest rates
|
111,021
|
|
|
523,015
|
|
|
1,474,788
|
|
|
2,108,824
|
|
||||
Total loans and leases
|
$
|
130,436
|
|
|
$
|
1,186,592
|
|
|
$
|
3,129,667
|
|
|
$
|
4,446,695
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Average loans and leases outstanding
|
$
|
4,241,308
|
|
|
$
|
3,898,250
|
|
|
$
|
3,622,033
|
|
|
$
|
3,385,741
|
|
|
$
|
3,038,100
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Loan and Lease Losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at beginning of year
|
$
|
47,916
|
|
|
$
|
50,001
|
|
|
$
|
56,631
|
|
|
$
|
63,314
|
|
|
$
|
74,040
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial, financial and agricultural
|
2,478
|
|
|
2,852
|
|
|
1,704
|
|
|
1,599
|
|
|
5,658
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgage
|
—
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
110
|
|
|||||
Commercial mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
209
|
|
|
838
|
|
|||||
Consumer
|
8,265
|
|
|
7,323
|
|
|
6,294
|
|
|
5,054
|
|
|
4,650
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
10,748
|
|
|
10,175
|
|
|
8,071
|
|
|
6,862
|
|
|
11,256
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial, financial and agricultural
|
1,174
|
|
|
1,203
|
|
|
1,366
|
|
|
2,114
|
|
|
4,788
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction
|
610
|
|
|
5,759
|
|
|
169
|
|
|
133
|
|
|
880
|
|
|||||
Residential mortgage
|
524
|
|
|
204
|
|
|
879
|
|
|
695
|
|
|
1,121
|
|
|||||
Home equity
|
42
|
|
|
27
|
|
|
44
|
|
|
15
|
|
|
1,056
|
|
|||||
Commercial mortgage
|
25
|
|
|
52
|
|
|
157
|
|
|
1,024
|
|
|
6,719
|
|
|||||
Consumer
|
2,111
|
|
|
1,969
|
|
|
1,500
|
|
|
1,715
|
|
|
1,610
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|||||
Total
|
4,486
|
|
|
9,214
|
|
|
4,115
|
|
|
5,696
|
|
|
16,201
|
|
|||||
Net loan charge-offs (recoveries)
|
6,262
|
|
|
961
|
|
|
3,956
|
|
|
1,166
|
|
|
(4,945
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision (credit) for loan and lease losses
|
6,317
|
|
|
(1,124
|
)
|
|
(2,674
|
)
|
|
(5,517
|
)
|
|
(15,671
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at end of year
|
$
|
47,971
|
|
|
$
|
47,916
|
|
|
$
|
50,001
|
|
|
$
|
56,631
|
|
|
$
|
63,314
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance to loans and leases outstanding
|
1.08
|
%
|
|
1.17
|
%
|
|
1.33
|
%
|
|
1.61
|
%
|
|
1.97
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loan charge-offs (recoveries) to average loans and leases outstanding
|
0.15
|
%
|
|
0.02
|
%
|
|
0.11
|
%
|
|
0.03
|
%
|
|
(0.16
|
)%
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
|
Allowance
|
|
Loan Category as a % of Total Loans
|
|
Allowance
|
|
Loan Category as a % of Total Loans
|
|
Allowance
|
|
Loan Category as a % of Total Loans
|
|
Allowance
|
|
Loan Category as a % of Total Loans
|
|
Allowance
|
|
Loan Category as a % of Total Loans
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Commercial, financial and agricultural
|
$
|
8,136
|
|
|
12.8
|
%
|
|
$
|
8,027
|
|
|
14.3
|
%
|
|
$
|
7,594
|
|
|
13.4
|
%
|
|
$
|
8,637
|
|
|
14.5
|
%
|
|
$
|
6,905
|
|
|
16.2
|
%
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Construction
|
1,792
|
|
|
2.2
|
|
|
1,202
|
|
|
1.6
|
|
|
1,835
|
|
|
1.7
|
|
|
4,224
|
|
|
2.9
|
|
|
8,454
|
|
|
2.7
|
|
|||||
Residential mortgage
|
13,327
|
|
|
36.0
|
|
|
14,349
|
|
|
35.0
|
|
|
14,328
|
|
|
35.6
|
|
|
15,055
|
|
|
34.5
|
|
|
14,642
|
|
|
35.3
|
|
|||||
Home equity
|
4,206
|
|
|
11.0
|
|
|
3,788
|
|
|
11.5
|
|
|
3,317
|
|
|
10.9
|
|
|
3,502
|
|
|
10.3
|
|
|
3,096
|
|
|
9.4
|
|
|||||
Commercial mortgage
|
11,113
|
|
|
25.2
|
|
|
13,358
|
|
|
25.5
|
|
|
16,801
|
|
|
25.9
|
|
|
19,104
|
|
|
25.1
|
|
|
21,847
|
|
|
23.7
|
|
|||||
Consumer
|
9,397
|
|
|
12.8
|
|
|
7,192
|
|
|
12.1
|
|
|
6,126
|
|
|
12.5
|
|
|
6,109
|
|
|
12.7
|
|
|
6,230
|
|
|
12.7
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Unallocated
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,140
|
|
|
—
|
|
|||||
Total
|
$
|
47,971
|
|
|
100.0
|
%
|
|
$
|
47,916
|
|
|
100.0
|
%
|
|
$
|
50,001
|
|
|
100.0
|
%
|
|
$
|
56,631
|
|
|
100.0
|
%
|
|
$
|
63,314
|
|
|
100.0
|
%
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Nonaccrual loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial, financial and agricultural
|
$
|
467
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,877
|
|
|
$
|
1,044
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
|
979
|
|
|
2,048
|
|
|
2,280
|
|
|
5,322
|
|
|
5,464
|
|
|||||
Home equity
|
92
|
|
|
275
|
|
|
416
|
|
|
333
|
|
|
666
|
|
|||||
Commercial mortgage
|
—
|
|
|
—
|
|
|
79
|
|
|
864
|
|
|
7,094
|
|
|||||
Consumer
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total nonaccrual loans
|
1,555
|
|
|
2,323
|
|
|
2,775
|
|
|
8,396
|
|
|
14,268
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential mortgage
|
—
|
|
|
414
|
|
|
851
|
|
|
791
|
|
|
1,962
|
|
|||||
Home equity
|
164
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other real estate
|
164
|
|
|
414
|
|
|
851
|
|
|
791
|
|
|
1,962
|
|
|||||
Total nonperforming assets
|
1,719
|
|
|
2,737
|
|
|
3,626
|
|
|
9,187
|
|
|
16,230
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Accruing loans delinquent for 90 days or more
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential mortgage
|
724
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
—
|
|
|
298
|
|
|
—
|
|
|
1,120
|
|
|
—
|
|
|||||
Consumer
|
286
|
|
|
238
|
|
|
515
|
|
|
271
|
|
|
273
|
|
|||||
Total accruing loans delinquent for 90 days or more
|
1,010
|
|
|
536
|
|
|
564
|
|
|
1,391
|
|
|
273
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Restructured loans still accruing interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial, financial and agricultural
|
135
|
|
|
220
|
|
|
491
|
|
|
—
|
|
|
—
|
|
|||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
809
|
|
|||||
Residential mortgage
|
5,502
|
|
|
7,330
|
|
|
10,677
|
|
|
14,292
|
|
|
16,224
|
|
|||||
Commercial mortgage
|
1,839
|
|
|
1,036
|
|
|
1,466
|
|
|
1,879
|
|
|
3,224
|
|
|||||
Total restructured loans still accruing interest
|
7,476
|
|
|
8,586
|
|
|
12,634
|
|
|
16,192
|
|
|
20,257
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming assets, accruing loans delinquent for 90 days or more and restructured loans still accruing interest
|
$
|
10,205
|
|
|
$
|
11,859
|
|
|
$
|
16,824
|
|
|
$
|
26,770
|
|
|
$
|
36,760
|
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming assets as a percentage of loans and leases and other real estate
|
0.04
|
%
|
|
0.07
|
%
|
|
0.10
|
%
|
|
0.26
|
%
|
|
0.51
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming assets and accruing loans delinquent for 90 days or more as a percentage of loans and leases and other real estate
|
0.06
|
%
|
|
0.08
|
%
|
|
0.11
|
%
|
|
0.30
|
%
|
|
0.51
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total nonperforming assets, accruing loans delinquent for 90 days or more and restructured loans still accruing interest as a percentage of loans and leases and other real estate
|
0.23
|
%
|
|
0.29
|
%
|
|
0.45
|
%
|
|
0.76
|
%
|
|
1.14
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Year-to-date changes in nonperforming assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at beginning of year
|
$
|
2,737
|
|
|
$
|
3,626
|
|
|
$
|
9,187
|
|
|
$
|
16,230
|
|
|
$
|
42,035
|
|
Additions
|
1,617
|
|
|
593
|
|
|
3,678
|
|
|
6,326
|
|
|
11,863
|
|
|||||
Reductions:
|
|
|
|
|
|
|
|
|
|
||||||||||
Payments
|
(2,211
|
)
|
|
(467
|
)
|
|
(5,522
|
)
|
|
(6,390
|
)
|
|
(9,564
|
)
|
|||||
Return to accrual status
|
(27
|
)
|
|
(538
|
)
|
|
(3,645
|
)
|
|
(4,546
|
)
|
|
(11,486
|
)
|
|||||
Sales of foreclosed assets
|
(302
|
)
|
|
(40
|
)
|
|
(165
|
)
|
|
(2,599
|
)
|
|
(13,307
|
)
|
|||||
Charge-offs, valuation and other adjustments
|
(95
|
)
|
|
(437
|
)
|
|
93
|
|
|
166
|
|
|
(3,311
|
)
|
|||||
Total reductions
|
(2,635
|
)
|
|
(1,482
|
)
|
|
(9,239
|
)
|
|
(13,369
|
)
|
|
(37,668
|
)
|
|||||
Balance at end of year
|
$
|
1,719
|
|
|
$
|
2,737
|
|
|
$
|
3,626
|
|
|
$
|
9,187
|
|
|
$
|
16,230
|
|
|
December 31,
|
|
|
||||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||
|
Held-to-
Maturity (Amortized Cost) |
|
Available-
for-Sale (Fair Value) |
|
Equity
Securities (Fair Value) |
|
Held-to-
Maturity (Amortized Cost) |
|
Available-
for-Sale (Fair Value) |
|
Equity
Securities (Fair Value) |
|
Held-to-
Maturity (Amortized Cost) |
|
Available-
for-Sale (Fair Value) |
|
Equity
Securities (Fair Value) |
||||||||||||||||||
|
(Dollars in thousands)
|
|
|
||||||||||||||||||||||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
States and political subdivisions
|
$
|
—
|
|
|
$
|
122,018
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
173,674
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
179,781
|
|
|
$
|
—
|
|
Corporate securities
|
—
|
|
|
30,529
|
|
|
—
|
|
|
—
|
|
|
54,849
|
|
|
—
|
|
|
—
|
|
|
74,278
|
|
|
—
|
|
|||||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies
|
—
|
|
|
40,381
|
|
|
—
|
|
|
—
|
|
|
32,574
|
|
|
—
|
|
|
—
|
|
|
25,510
|
|
|
—
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Residential - U.S. government-sponsored entities ("GSEs")
|
—
|
|
|
677,822
|
|
|
—
|
|
|
83,436
|
|
|
717,052
|
|
|
—
|
|
|
100,279
|
|
|
800,683
|
|
|
—
|
|
|||||||||
Residential - Non-government sponsored entities ("Non-GSEs")
|
—
|
|
|
37,191
|
|
|
—
|
|
|
—
|
|
|
41,118
|
|
|
—
|
|
|
—
|
|
|
46,763
|
|
|
—
|
|
|||||||||
Commercial - U.S. GSEs and agencies
|
—
|
|
|
81,225
|
|
|
—
|
|
|
65,072
|
|
|
51,483
|
|
|
—
|
|
|
91,474
|
|
|
39,725
|
|
|
—
|
|
|||||||||
Commercial - Non-GSEs
|
—
|
|
|
137,817
|
|
|
—
|
|
|
—
|
|
|
134,728
|
|
|
—
|
|
|
—
|
|
|
137,326
|
|
|
—
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity securities
|
—
|
|
|
—
|
|
|
1,127
|
|
|
—
|
|
|
—
|
|
|
826
|
|
|
—
|
|
|
—
|
|
|
825
|
|
|||||||||
Total
|
$
|
—
|
|
|
$
|
1,126,983
|
|
|
$
|
1,127
|
|
|
$
|
148,508
|
|
|
$
|
1,205,478
|
|
|
$
|
826
|
|
|
$
|
191,753
|
|
|
$
|
1,304,066
|
|
|
$
|
825
|
|
Portfolio Type and Maturity Grouping
|
|
Carrying
Value |
|
Weighted
Average Yield (1) |
|||
|
|
(Dollars in thousands)
|
|||||
Available-for-sale portfolio:
|
|
|
|
|
|
|
|
Debt securities - States and political subdivisions:
|
|
|
|
|
|
|
|
Within one year
|
|
$
|
30,716
|
|
|
2.89
|
%
|
After one but within five years
|
|
34,226
|
|
|
2.38
|
|
|
After five but within ten years
|
|
41,323
|
|
|
3.50
|
|
|
After ten years
|
|
15,753
|
|
|
3.58
|
|
|
Total debt securities - States and political subdivisions
|
|
122,018
|
|
|
3.04
|
|
|
|
|
|
|
|
|||
Debt securities - Corporate:
|
|
|
|
|
|
|
|
Within one year
|
|
19,966
|
|
|
2.90
|
|
|
After one but within five years
|
|
10,563
|
|
|
2.65
|
|
|
After five but within ten years
|
|
—
|
|
|
—
|
|
|
After ten years
|
|
—
|
|
|
—
|
|
|
Total debt securities - Corporate
|
|
30,529
|
|
|
2.81
|
|
|
|
|
|
|
|
|||
Debt securities - U.S. Treasury obligations and direct obligations of U.S Government agencies:
|
|
|
|
|
|
|
|
Within one year
|
|
—
|
|
|
—
|
|
|
After one but within five years
|
|
2,468
|
|
|
3.24
|
|
|
After five but within ten years
|
|
22,371
|
|
|
2.88
|
|
|
After ten years
|
|
15,542
|
|
|
3.08
|
|
|
Total debt securities - U.S. Treasury obligations and direct obligations of U.S Government agencies
|
|
40,381
|
|
|
2.98
|
|
|
|
|
|
|
|
|||
Residential mortgage-backed securities - U.S. GSEs:
|
|
|
|
|
|
|
|
Within one year
|
|
366
|
|
|
2.95
|
|
|
After one but within five years
|
|
2,346
|
|
|
2.60
|
|
|
After five but within ten years
|
|
71,715
|
|
|
2.12
|
|
|
After ten years
|
|
603,395
|
|
|
2.53
|
|
|
Total residential mortgage-backed securities - U.S. GSEs
|
|
677,822
|
|
|
2.49
|
|
|
|
|
|
|
|
|||
Residential mortgage-backed securities - Non-government sponsored entities ("Non-GSEs"):
|
|
|
|
|
|
|
|
Within one year
|
|
—
|
|
|
—
|
|
|
After one but within five years
|
|
—
|
|
|
—
|
|
|
After five but within ten years
|
|
—
|
|
|
—
|
|
|
After ten years
|
|
37,191
|
|
|
3.39
|
|
|
Total residential mortgage-backed securities - Non-GSEs
|
|
37,191
|
|
|
3.39
|
|
|
|
|
|
|
|
|||
Commercial mortgage-backed securities - U.S. GSEs and agencies:
|
|
|
|
|
|
|
|
Within one year
|
|
—
|
|
|
—
|
|
|
After one but within five years
|
|
—
|
|
|
—
|
|
|
After five but within ten years
|
|
44,918
|
|
|
2.87
|
|
|
After ten years
|
|
36,307
|
|
|
2.54
|
|
Portfolio Type and Maturity Grouping
|
|
Carrying
Value |
|
Weighted
Average Yield (1) |
|||
|
|
(Dollars in thousands)
|
|||||
Total commercial mortgage-backed securities - U.S. GSEs and agencies
|
|
81,225
|
|
|
2.72
|
|
|
|
|
|
|
|
|||
Commercial mortgage-backed securities - Non-GSEs:
|
|
|
|
|
|
|
|
Within one year
|
|
21,999
|
|
|
3.02
|
|
|
After one but within five years
|
|
95,157
|
|
|
3.11
|
|
|
After five but within ten years
|
|
20,661
|
|
|
4.10
|
|
|
After ten years
|
|
—
|
|
|
—
|
|
|
Total commercial mortgage-backed securities - Non-GSEs
|
|
137,817
|
|
|
3.24
|
|
|
|
|
|
|
|
|||
Total available-for-sale portfolio
|
|
$
|
1,126,983
|
|
|
2.71
|
%
|
|
|
|
|
|
|||
Equity securities:
|
|
|
|
|
|
|
|
No stated maturity
|
|
$
|
1,127
|
|
|
—
|
%
|
Total equity securities
|
|
$
|
1,127
|
|
|
—
|
%
|
|
|
|
|
|
|||
Total investment securities
|
|
$
|
1,128,110
|
|
|
2.71
|
%
|
(1)
|
Weighted average yields are computed on an annual basis, and yields on tax-exempt obligations are computed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Noninterest-bearing demand deposits
|
$
|
1,450,532
|
|
|
$
|
1,436,967
|
|
|
$
|
1,395,556
|
|
|
$
|
1,265,246
|
|
|
$
|
1,145,244
|
|
Interest-bearing demand deposits
|
1,043,010
|
|
|
954,011
|
|
|
933,054
|
|
|
862,991
|
|
|
824,895
|
|
|||||
Savings and money market deposits
|
1,600,028
|
|
|
1,448,257
|
|
|
1,481,876
|
|
|
1,390,600
|
|
|
1,399,093
|
|
|||||
Time deposits less than $100,000
|
165,755
|
|
|
176,707
|
|
|
180,748
|
|
|
194,730
|
|
|
212,946
|
|
|||||
Core deposits
|
4,259,325
|
|
|
4,015,942
|
|
|
3,991,234
|
|
|
3,713,567
|
|
|
3,582,178
|
|
|||||
Government time deposits
|
533,088
|
|
|
631,293
|
|
|
687,052
|
|
|
701,417
|
|
|
664,756
|
|
|||||
Other time deposits of $100,000 to $250,000
|
107,550
|
|
|
106,783
|
|
|
101,560
|
|
|
103,720
|
|
|
114,083
|
|
|||||
Other time deposits greater than $250,000
|
220,060
|
|
|
192,472
|
|
|
176,508
|
|
|
89,497
|
|
|
72,422
|
|
|||||
Total time deposits of $100,000 and greater
|
860,698
|
|
|
930,548
|
|
|
965,120
|
|
|
894,634
|
|
|
851,261
|
|
|||||
Total deposits
|
$
|
5,120,023
|
|
|
$
|
4,946,490
|
|
|
$
|
4,956,354
|
|
|
$
|
4,608,201
|
|
|
$
|
4,433,439
|
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Average
Balance |
|
Average
Rate Paid |
|
Average
Balance |
|
Average
Rate Paid |
|
Average
Balance |
|
Average
Rate Paid |
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Noninterest-bearing demand deposits
|
$
|
1,375,903
|
|
|
—
|
%
|
|
$
|
1,385,427
|
|
|
—
|
%
|
|
$
|
1,325,583
|
|
|
—
|
%
|
Interest-bearing demand deposits
|
984,298
|
|
|
0.08
|
|
|
936,034
|
|
|
0.08
|
|
|
901,171
|
|
|
0.07
|
|
|||
Savings and money market deposits
|
1,556,766
|
|
|
0.33
|
|
|
1,494,658
|
|
|
0.13
|
|
|
1,449,379
|
|
|
0.08
|
|
|||
Time deposits
|
1,068,734
|
|
|
1.69
|
|
|
1,194,579
|
|
|
1.40
|
|
|
1,173,020
|
|
|
0.81
|
|
|||
Total
|
$
|
4,985,701
|
|
|
0.48
|
|
|
$
|
5,010,698
|
|
|
0.39
|
|
|
$
|
4,849,153
|
|
|
0.23
|
|
|
Payments Due By Period
|
||||||||||||||||||
|
Less Than
One Year |
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years |
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Short-term borrowings
|
$
|
150,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150,000
|
|
Long-term debt
|
25,000
|
|
|
25,000
|
|
|
—
|
|
|
51,547
|
|
|
101,547
|
|
|||||
Pension plan and SERP obligations
|
2,098
|
|
|
4,180
|
|
|
4,461
|
|
|
22,835
|
|
|
33,574
|
|
|||||
Operating leases
|
6,216
|
|
|
11,379
|
|
|
10,122
|
|
|
40,920
|
|
|
68,637
|
|
|||||
Purchase obligations
|
27,989
|
|
|
30,537
|
|
|
20,620
|
|
|
946
|
|
|
80,092
|
|
|||||
Other long-term liabilities
|
6,873
|
|
|
4,504
|
|
|
36
|
|
|
49
|
|
|
11,462
|
|
|||||
Total
|
$
|
218,176
|
|
|
$
|
75,600
|
|
|
$
|
35,239
|
|
|
$
|
116,297
|
|
|
$
|
445,312
|
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Total shareholders’ equity
|
$
|
528,520
|
|
|
$
|
491,725
|
|
|
$
|
500,011
|
|
Less:
|
|
|
|
|
|
|
|
||||
Other intangible assets (core deposit premium)
|
—
|
|
|
—
|
|
|
(2,006
|
)
|
|||
Tangible common equity
|
$
|
528,520
|
|
|
$
|
491,725
|
|
|
$
|
498,005
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
6,012,672
|
|
|
$
|
5,807,026
|
|
|
$
|
5,623,708
|
|
Less: Other intangible assets (core deposit premium)
|
—
|
|
|
—
|
|
|
(2,006
|
)
|
|||
Tangible assets
|
$
|
6,012,672
|
|
|
$
|
5,807,026
|
|
|
$
|
5,621,702
|
|
|
|
|
|
|
|
||||||
Tangible common equity to tangible assets
|
8.79
|
%
|
|
8.47
|
%
|
|
8.86
|
%
|
|
Three
Months or Less |
|
Over
Three Through Six Months |
|
Over Six
Through Twelve Months |
|
Over One
Through Three Years |
|
Over
Three Years |
|
Non-Rate
Sensitive |
|
Total
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing deposits in other financial institutions
|
$
|
24,554
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,554
|
|
Investment securities
|
103,490
|
|
|
75,941
|
|
|
101,279
|
|
|
357,448
|
|
|
488,825
|
|
|
1,127
|
|
|
1,128,110
|
|
|||||||
Loans held for sale
|
9,071
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
9,083
|
|
|||||||
Loans and leases
|
1,036,397
|
|
|
295,631
|
|
|
544,018
|
|
|
1,386,181
|
|
|
1,184,468
|
|
|
2,845
|
|
|
4,449,540
|
|
|||||||
FHLB stock
|
14,983
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,983
|
|
|||||||
Other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
386,402
|
|
|
386,402
|
|
|||||||
Total assets
|
$
|
1,188,495
|
|
|
$
|
371,572
|
|
|
$
|
645,297
|
|
|
$
|
1,743,629
|
|
|
$
|
1,673,293
|
|
|
$
|
390,386
|
|
|
$
|
6,012,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest-bearing deposits
|
$
|
1,450,532
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,450,532
|
|
Interest-bearing deposits
|
3,041,493
|
|
|
287,600
|
|
|
262,156
|
|
|
56,044
|
|
|
22,198
|
|
|
—
|
|
|
3,669,491
|
|
|||||||
FHLB advances and other short-term borrowings
|
150,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150,000
|
|
|||||||
Long-term debt
|
51,547
|
|
|
—
|
|
|
25,000
|
|
|
25,000
|
|
|
—
|
|
|
—
|
|
|
101,547
|
|
|||||||
Lease liability
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,632
|
|
|
52,632
|
|
|||||||
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,950
|
|
|
59,950
|
|
|||||||
Equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
528,520
|
|
|
528,520
|
|
|||||||
Total liabilities and equity
|
$
|
4,693,572
|
|
|
$
|
287,600
|
|
|
$
|
287,156
|
|
|
$
|
81,044
|
|
|
$
|
22,198
|
|
|
$
|
641,102
|
|
|
$
|
6,012,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest rate sensitivity gap
|
$
|
(3,505,077
|
)
|
|
$
|
83,972
|
|
|
$
|
358,141
|
|
|
$
|
1,662,585
|
|
|
$
|
1,651,095
|
|
|
$
|
(250,716
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Cumulative interest rate sensitivity gap
|
$
|
(3,505,077
|
)
|
|
$
|
(3,421,105
|
)
|
|
$
|
(3,062,964
|
)
|
|
$
|
(1,400,379
|
)
|
|
$
|
250,716
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Rate Change
|
|
Estimated Net Interest Income Sensitivity
|
|
+100bp
|
|
2.45
|
%
|
-100bp
|
|
(5.01
|
)%
|
|
Expected Maturity Within
|
|
|
|
|
||||||||||||||||||||||||||
|
One
Year |
|
Two
Years |
|
Three
Years |
|
Four
Years |
|
Five
Years |
|
Thereafter
|
|
Total
Book Value |
|
Total
Fair Value |
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Interest-sensitive assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing deposits in other financial institutions
|
$
|
24,554
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,554
|
|
|
$
|
24,554
|
|
Weighted average yields
|
1.55
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
1.55
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate investment securities
|
$
|
239,729
|
|
|
$
|
180,231
|
|
|
$
|
177,471
|
|
|
$
|
81,652
|
|
|
$
|
90,951
|
|
|
$
|
316,568
|
|
|
$
|
1,086,602
|
|
|
$
|
1,086,602
|
|
Weighted average yields
|
2.56
|
%
|
|
2.64
|
%
|
|
2.76
|
%
|
|
2.57
|
%
|
|
2.80
|
%
|
|
2.82
|
%
|
|
2.70
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Variable-rate investment securities
|
$
|
3,634
|
|
|
$
|
3,307
|
|
|
$
|
3,010
|
|
|
$
|
2,739
|
|
|
$
|
4,012
|
|
|
$
|
23,679
|
|
|
$
|
40,381
|
|
|
$
|
40,381
|
|
Weighted average yields
|
2.98
|
%
|
|
2.98
|
%
|
|
2.98
|
%
|
|
2.98
|
%
|
|
3.08
|
%
|
|
2.96
|
%
|
|
2.98
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Equity investment securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,127
|
|
|
$
|
1,127
|
|
|
$
|
1,127
|
|
Weighted average yields
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed-rate loans and leases
|
$
|
671,390
|
|
|
$
|
528,489
|
|
|
$
|
392,882
|
|
|
$
|
270,393
|
|
|
$
|
199,572
|
|
|
$
|
481,084
|
|
|
$
|
2,543,810
|
|
|
$
|
2,512,865
|
|
Weighted average yields
|
4.39
|
%
|
|
4.39
|
%
|
|
4.21
|
%
|
|
4.15
|
%
|
|
4.10
|
%
|
|
3.87
|
%
|
|
4.22
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Variable-rate loans and leases
|
$
|
737,445
|
|
|
$
|
389,019
|
|
|
$
|
285,417
|
|
|
$
|
208,022
|
|
|
$
|
126,566
|
|
|
$
|
165,487
|
|
|
$
|
1,911,956
|
|
|
$
|
1,888,695
|
|
Weighted average yields
|
4.36
|
%
|
|
3.78
|
%
|
|
3.77
|
%
|
|
3.62
|
%
|
|
3.62
|
%
|
|
3.59
|
%
|
|
3.96
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total - December 31, 2019
|
$
|
1,676,752
|
|
|
$
|
1,101,046
|
|
|
$
|
858,780
|
|
|
$
|
562,806
|
|
|
$
|
421,101
|
|
|
$
|
987,945
|
|
|
$
|
5,608,430
|
|
|
$
|
5,554,224
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total - December 31, 2018
|
$
|
1,486,148
|
|
|
$
|
960,554
|
|
|
$
|
717,558
|
|
|
$
|
593,113
|
|
|
$
|
430,700
|
|
|
$
|
1,270,825
|
|
|
$
|
5,458,898
|
|
|
$
|
5,317,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-sensitive liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing demand and savings deposits
|
$
|
2,643,038
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,643,038
|
|
|
$
|
2,643,038
|
|
Weighted average rates paid
|
0.21
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.21
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Time deposits
|
$
|
946,738
|
|
|
$
|
35,469
|
|
|
$
|
21,690
|
|
|
$
|
9,956
|
|
|
$
|
12,239
|
|
|
$
|
361
|
|
|
$
|
1,026,453
|
|
|
$
|
1,023,362
|
|
Weighted average rates paid
|
1.41
|
%
|
|
0.75
|
%
|
|
0.89
|
%
|
|
1.28
|
%
|
|
1.07
|
%
|
|
0.33
|
%
|
|
1.37
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
FHLB advances and other short-term borrowings
|
$
|
150,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150,000
|
|
|
$
|
150,000
|
|
Weighted average rates paid
|
1.81
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
1.81
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Long-term debt
|
$
|
25,000
|
|
|
$
|
25,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,547
|
|
|
$
|
101,547
|
|
|
$
|
97,827
|
|
Weighted average rates paid
|
3.17
|
%
|
|
3.25
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
4.11
|
%
|
|
3.67
|
%
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total - December 31, 2019
|
$
|
3,764,776
|
|
|
$
|
60,469
|
|
|
$
|
21,690
|
|
|
$
|
9,956
|
|
|
$
|
12,239
|
|
|
$
|
51,908
|
|
|
$
|
3,921,038
|
|
|
$
|
3,914,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total - December 31, 2018
|
$
|
3,561,306
|
|
|
$
|
113,258
|
|
|
$
|
57,217
|
|
|
$
|
12,900
|
|
|
$
|
11,472
|
|
|
$
|
72,536
|
|
|
$
|
3,828,689
|
|
|
$
|
3,816,885
|
|
•
|
Testing the effectiveness of controls over the qualitative adjustments, including controls addressing:
|
◦
|
The completeness and accuracy of the data used as the basis for the qualitative adjustments,
|
◦
|
The mathematical accuracy of the qualitative adjustments calculation, and
|
◦
|
Management’s judgments related to the data and assumptions used in the determination of qualitative adjustments.
|
•
|
Substantively testing management’s process, including evaluating their judgments and assumptions, for determining the qualitative adjustments, including:
|
◦
|
Evaluation of the completeness and accuracy of the data used as a basis for the qualitative adjustments,
|
◦
|
Evaluation of the mathematical accuracy of the qualitative adjustments calculation,
|
◦
|
Evaluation of the reasonableness of management’s judgments related to the data and assumptions used in the determination of qualitative adjustments,
|
◦
|
Analytical evaluation of the directional consistency of the qualitative adjustments, with respect to the underlying trends, and
|
◦
|
Analytical evaluation of the overall adequacy of the allowance for loan and lease losses, including the qualitative adjustments.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Assets
|
|
|
|
|
|
||
Cash and due from financial institutions
|
$
|
78,418
|
|
|
$
|
80,569
|
|
Interest-bearing deposits in other financial institutions
|
24,554
|
|
|
21,617
|
|
||
Investment securities:
|
|
|
|
||||
Available-for-sale debt securities, at fair value
|
1,126,983
|
|
|
1,205,478
|
|
||
Held-to-maturity debt securities, fair value of: none at December 31, 2019 and $144,272 at December 31, 2018
|
—
|
|
|
148,508
|
|
||
Equity securities, at fair value
|
1,127
|
|
|
826
|
|
||
Total investment securities
|
1,128,110
|
|
|
1,354,812
|
|
||
|
|
|
|
||||
Loans held for sale
|
9,083
|
|
|
6,647
|
|
||
Loans and leases
|
4,449,540
|
|
|
4,078,366
|
|
||
Allowance for loan and lease losses
|
(47,971
|
)
|
|
(47,916
|
)
|
||
Loans and leases, net of allowance for loan and lease losses
|
4,401,569
|
|
|
4,030,450
|
|
||
|
|
|
|
||||
Premises and equipment, net
|
46,343
|
|
|
45,285
|
|
||
Accrued interest receivable
|
16,500
|
|
|
17,000
|
|
||
Investment in unconsolidated subsidiaries
|
17,115
|
|
|
14,008
|
|
||
Other real estate owned, net
|
164
|
|
|
414
|
|
||
Mortgage servicing rights
|
14,718
|
|
|
15,596
|
|
||
Bank-owned life insurance
|
159,656
|
|
|
157,440
|
|
||
Federal Home Loan Bank ("FHLB") stock
|
14,983
|
|
|
16,645
|
|
||
Right-of-use lease asset
|
52,348
|
|
|
—
|
|
||
Other assets
|
49,111
|
|
|
46,543
|
|
||
Total assets
|
$
|
6,012,672
|
|
|
$
|
5,807,026
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
||
Noninterest-bearing demand
|
$
|
1,450,532
|
|
|
$
|
1,436,967
|
|
Interest-bearing demand
|
1,043,010
|
|
|
954,011
|
|
||
Savings and money market
|
1,600,028
|
|
|
1,448,257
|
|
||
Time
|
1,026,453
|
|
|
1,107,255
|
|
||
Total deposits
|
5,120,023
|
|
|
4,946,490
|
|
||
|
|
|
|
||||
FHLB advances and other short-term borrowings
|
150,000
|
|
|
197,000
|
|
||
Long-term debt
|
101,547
|
|
|
122,166
|
|
||
Lease liability
|
52,632
|
|
|
—
|
|
||
Other liabilities
|
59,950
|
|
|
49,645
|
|
||
Total liabilities
|
5,484,152
|
|
|
5,315,301
|
|
||
|
|
|
|
||||
Contingent liabilities and other commitments (see Note 23)
|
|
|
|
||||
|
|
|
|
||||
Equity:
|
|
|
|
|
|
||
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at: December 31, 2019, and December 31, 2018
|
—
|
|
|
—
|
|
||
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 28,289,257 at December 31, 2019 and 28,967,715 at December 31, 2018
|
447,602
|
|
|
470,660
|
|
||
Additional paid-in capital
|
91,611
|
|
|
88,876
|
|
||
Accumulated deficit
|
(19,102
|
)
|
|
(51,718
|
)
|
||
Accumulated other comprehensive income (loss)
|
8,409
|
|
|
(16,093
|
)
|
||
Total equity
|
528,520
|
|
|
491,725
|
|
||
Total liabilities and equity
|
$
|
6,012,672
|
|
|
$
|
5,807,026
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands, except per share data)
|
||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|||
Interest and fees on loans and leases
|
$
|
182,657
|
|
|
$
|
159,456
|
|
|
$
|
144,224
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
||||||
Taxable investment securities
|
29,454
|
|
|
34,501
|
|
|
33,933
|
|
|||
Tax-exempt investment securities
|
3,044
|
|
|
3,696
|
|
|
3,874
|
|
|||
Dividend income on investment securities
|
63
|
|
|
61
|
|
|
49
|
|
|||
Interest on deposits in other financial institutions
|
201
|
|
|
365
|
|
|
356
|
|
|||
Dividend income on FHLB stock
|
964
|
|
|
215
|
|
|
126
|
|
|||
Total interest income
|
216,383
|
|
|
198,294
|
|
|
182,562
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest on deposits:
|
|
|
|
|
|
|
|
|
|||
Demand
|
800
|
|
|
734
|
|
|
641
|
|
|||
Savings and money market
|
5,100
|
|
|
2,000
|
|
|
1,099
|
|
|||
Time
|
18,044
|
|
|
16,770
|
|
|
9,457
|
|
|||
Interest on short-term borrowings
|
4,285
|
|
|
1,236
|
|
|
183
|
|
|||
Interest on long-term debt
|
4,080
|
|
|
4,556
|
|
|
3,479
|
|
|||
Total interest expense
|
32,309
|
|
|
25,296
|
|
|
14,859
|
|
|||
Net interest income
|
184,074
|
|
|
172,998
|
|
|
167,703
|
|
|||
Provision (credit) for loan and lease losses
|
6,317
|
|
|
(1,124
|
)
|
|
(2,674
|
)
|
|||
Net interest income after provision for loan and lease losses
|
177,757
|
|
|
174,122
|
|
|
170,377
|
|
|||
Other operating income:
|
|
|
|
|
|
|
|
|
|||
Mortgage banking income
|
5,983
|
|
|
7,315
|
|
|
6,962
|
|
|||
Service charges on deposit accounts
|
8,406
|
|
|
8,406
|
|
|
8,468
|
|
|||
Other service charges and fees
|
14,358
|
|
|
13,123
|
|
|
11,518
|
|
|||
Income from fiduciary activities
|
4,395
|
|
|
4,245
|
|
|
3,674
|
|
|||
Income from bank-owned life insurance
|
3,105
|
|
|
2,117
|
|
|
3,388
|
|
|||
Net gain (loss) on sales of foreclosed assets
|
(145
|
)
|
|
—
|
|
|
205
|
|
|||
Equity in earnings of unconsolidated subsidiaries
|
257
|
|
|
233
|
|
|
602
|
|
|||
Fees on foreign exchange
|
755
|
|
|
905
|
|
|
529
|
|
|||
Loan placement fees
|
702
|
|
|
747
|
|
|
536
|
|
|||
Net gains (losses) on sales of investment securities
|
36
|
|
|
(279
|
)
|
|
(1,410
|
)
|
|||
Other
|
3,949
|
|
|
1,992
|
|
|
2,024
|
|
|||
Total other operating income
|
41,801
|
|
|
38,804
|
|
|
36,496
|
|
|||
Other operating expense:
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
82,290
|
|
|
75,352
|
|
|
72,286
|
|
|||
Net occupancy
|
14,299
|
|
|
13,763
|
|
|
13,571
|
|
|||
Legal and professional services
|
7,354
|
|
|
7,330
|
|
|
7,724
|
|
|||
Computer software expense
|
10,812
|
|
|
9,841
|
|
|
9,192
|
|
|||
Amortization of core deposit premium
|
—
|
|
|
2,006
|
|
|
2,674
|
|
|||
Communication expense
|
3,551
|
|
|
3,410
|
|
|
3,659
|
|
|||
Equipment
|
4,353
|
|
|
4,239
|
|
|
3,785
|
|
|||
Advertising expense
|
2,661
|
|
|
2,675
|
|
|
2,408
|
|
|||
Foreclosed asset expense
|
251
|
|
|
574
|
|
|
151
|
|
|||
Other
|
16,060
|
|
|
15,492
|
|
|
15,623
|
|
|||
Total other operating expense
|
141,631
|
|
|
134,682
|
|
|
131,073
|
|
|||
Income before income taxes
|
77,927
|
|
|
78,244
|
|
|
75,800
|
|
|||
Income tax expense
|
19,605
|
|
|
18,758
|
|
|
34,596
|
|
|||
Net income
|
$
|
58,322
|
|
|
$
|
59,486
|
|
|
$
|
41,204
|
|
|
|
|
|
|
|
||||||
Per common share data:
|
|
|
|
|
|
|
|
|
|||
Basic earnings per share
|
$
|
2.05
|
|
|
$
|
2.02
|
|
|
$
|
1.36
|
|
Diluted earnings per share
|
2.03
|
|
|
2.01
|
|
|
1.34
|
|
|||
Cash dividends declared
|
0.90
|
|
|
0.82
|
|
|
0.70
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Net income
|
$
|
58,322
|
|
|
$
|
59,486
|
|
|
$
|
41,204
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||
Net change in unrealized gain (loss) on investment securities
|
27,568
|
|
|
(14,122
|
)
|
|
344
|
|
|||
Defined benefit plans
|
34
|
|
|
1,043
|
|
|
138
|
|
|||
Total other comprehensive income (loss), net of tax
|
27,602
|
|
|
(13,079
|
)
|
|
482
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive income
|
$
|
85,924
|
|
|
$
|
46,407
|
|
|
$
|
41,686
|
|
|
Common
Shares Outstanding |
|
Preferred
Stock |
|
Common
Stock |
|
Additional
Paid-In Capital |
|
Accumulated
Deficit |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Non-Controlling
Interest |
|
Total
|
|||||||||||||||
|
(Dollars in thousands, except per share data)
|
|||||||||||||||||||||||||||||
Balance at December 31, 2016
|
30,796,243
|
|
|
$
|
—
|
|
|
$
|
530,932
|
|
|
$
|
84,180
|
|
|
$
|
(108,941
|
)
|
|
$
|
(1,521
|
)
|
|
$
|
25
|
|
|
$
|
504,675
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,204
|
|
|
$
|
—
|
|
|
—
|
|
|
41,204
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
482
|
|
|
—
|
|
|
482
|
|
|||||||
Cash dividends declared ($0.70 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,299
|
)
|
|
—
|
|
|
—
|
|
|
(21,299
|
)
|
|||||||
12,020 net shares of common stock sold by directors' deferred compensation plan
|
—
|
|
|
—
|
|
|
(385
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(385
|
)
|
|||||||
864,483 shares of common stock repurchased and other related costs
|
(864,483
|
)
|
|
—
|
|
|
(26,559
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(26,559
|
)
|
|||||||
Share-based compensation expense
|
92,462
|
|
|
—
|
|
|
—
|
|
|
1,918
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,918
|
|
|||||||
Non-controlling interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||||
Balance at December 31, 2017
|
30,024,222
|
|
|
$
|
—
|
|
|
$
|
503,988
|
|
|
$
|
86,098
|
|
|
$
|
(89,036
|
)
|
|
$
|
(1,039
|
)
|
|
$
|
24
|
|
|
$
|
500,035
|
|
Impact of the adoption of new accounting standards (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
139
|
|
|
(139
|
)
|
|
—
|
|
|
—
|
|
|||||||
Adjusted balance at January 1, 2018
|
30,024,222
|
|
|
—
|
|
|
503,988
|
|
|
86,098
|
|
|
(88,897
|
)
|
|
(1,178
|
)
|
|
24
|
|
|
500,035
|
|
|||||||
Impact of the adoption of new accounting standards (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,836
|
|
|
(1,836
|
)
|
|
—
|
|
|
—
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,486
|
|
|
—
|
|
|
—
|
|
|
59,486
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,079
|
)
|
|
—
|
|
|
(13,079
|
)
|
|||||||
Cash dividends declared ($0.82 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,143
|
)
|
|
—
|
|
|
—
|
|
|
(24,143
|
)
|
|||||||
16,950 net shares of common stock sold by directors' deferred compensation plan
|
—
|
|
|
—
|
|
|
(504
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(504
|
)
|
|||||||
1,155,157 shares of common stock repurchased and other related costs
|
(1,155,157
|
)
|
|
—
|
|
|
(32,824
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(32,824
|
)
|
|||||||
Share-based compensation expense
|
98,650
|
|
|
—
|
|
|
—
|
|
|
2,778
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,778
|
|
|||||||
Non-controlling interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
|||||||
Balance at December 31, 2018
|
28,967,715
|
|
|
$
|
—
|
|
|
$
|
470,660
|
|
|
$
|
88,876
|
|
|
$
|
(51,718
|
)
|
|
$
|
(16,093
|
)
|
|
$
|
—
|
|
|
$
|
491,725
|
|
Impact of the adoption of new accounting standards (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,100
|
)
|
|
—
|
|
|
(3,100
|
)
|
|||||||
Adjusted balance at January 1, 2019
|
28,967,715
|
|
|
—
|
|
|
470,660
|
|
|
88,876
|
|
|
(51,718
|
)
|
|
(19,193
|
)
|
|
—
|
|
|
488,625
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,322
|
|
|
—
|
|
|
—
|
|
|
58,322
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,602
|
|
|
—
|
|
|
27,602
|
|
|||||||
Cash dividends declared ($0.90 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,706
|
)
|
|
—
|
|
|
—
|
|
|
(25,706
|
)
|
|||||||
14,600 net shares of common stock sold by directors' deferred compensation plan
|
—
|
|
|
—
|
|
|
(416
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(416
|
)
|
|||||||
797,003 shares of common stock repurchased and other related costs
|
(797,003
|
)
|
|
—
|
|
|
(22,793
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,793
|
)
|
|||||||
Share-based compensation expense
|
118,545
|
|
|
—
|
|
|
151
|
|
|
2,735
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,886
|
|
|||||||
Balance at December 31, 2019
|
28,289,257
|
|
|
$
|
—
|
|
|
$
|
447,602
|
|
|
$
|
91,611
|
|
|
$
|
(19,102
|
)
|
|
$
|
8,409
|
|
|
$
|
—
|
|
|
$
|
528,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
(1) Represents the impact of the adoption of Accounting Standards Update ("ASU") ASU 2016-01.
|
||||||||||||||||||||||||||||||
(2) Represents the impact of the adoption of ASU 2018-02.
|
||||||||||||||||||||||||||||||
(3) Represents the impact of the adoption of ASU 2017-12. See Note 1 to the consolidated financial statements for additional information
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
58,322
|
|
|
$
|
59,486
|
|
|
$
|
41,204
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Provision (credit) for loan and lease losses
|
6,317
|
|
|
(1,124
|
)
|
|
(2,674
|
)
|
|||
Depreciation and amortization of premises and equipment
|
6,139
|
|
|
6,288
|
|
|
6,441
|
|
|||
Non-cash lease expense
|
284
|
|
|
—
|
|
|
—
|
|
|||
Cash flows from operating leases
|
(6,230
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of mortgage servicing rights and core deposit premium
|
2,460
|
|
|
3,865
|
|
|
4,962
|
|
|||
Write down of other real estate, net of loss (gain) on sale
|
252
|
|
|
431
|
|
|
(192
|
)
|
|||
Net amortization and accretion of premium/discounts on investment securities
|
9,271
|
|
|
10,907
|
|
|
11,674
|
|
|||
Share-based compensation expense
|
2,735
|
|
|
2,778
|
|
|
1,918
|
|
|||
Net loss (gain) on sales of investment securities
|
(36
|
)
|
|
279
|
|
|
1,410
|
|
|||
Net gain on sales of residential mortgage loans
|
(4,128
|
)
|
|
(4,085
|
)
|
|
(4,069
|
)
|
|||
Proceeds from sales of loans held for sale
|
207,686
|
|
|
240,137
|
|
|
319,556
|
|
|||
Origination of loans held for sale
|
(205,994
|
)
|
|
(226,363
|
)
|
|
(299,942
|
)
|
|||
Equity in earnings of unconsolidated subsidiaries
|
(257
|
)
|
|
(233
|
)
|
|
(602
|
)
|
|||
Distributions from unconsolidated subsidiaries
|
246
|
|
|
685
|
|
|
—
|
|
|||
Net increase in cash surrender value of bank-owned life insurance
|
(3,259
|
)
|
|
(2,248
|
)
|
|
(3,940
|
)
|
|||
Deferred income tax expense (benefit)
|
(3,965
|
)
|
|
7,874
|
|
|
32,206
|
|
|||
Net tax benefits from share-based compensation
|
253
|
|
|
144
|
|
|
544
|
|
|||
Net change in other assets and liabilities
|
2,096
|
|
|
4,665
|
|
|
(11,712
|
)
|
|||
Net cash provided by operating activities
|
72,192
|
|
|
103,486
|
|
|
96,784
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Proceeds from maturities of and calls on available-for-sale investment securities
|
252,079
|
|
|
143,876
|
|
|
169,472
|
|
|||
Proceeds from sales of available-for-sale investment securities
|
53,935
|
|
|
10,014
|
|
|
114,536
|
|
|||
Purchases of available-for-sale investment securities
|
(55,011
|
)
|
|
(85,366
|
)
|
|
(356,887
|
)
|
|||
Redemption of MasterCard Class B common stock
|
2,555
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from maturities of and calls on held-to-maturity investment securities
|
—
|
|
|
42,722
|
|
|
25,237
|
|
|||
Loan (originations) and payments, net
|
(237,493
|
)
|
|
(250,188
|
)
|
|
(166,051
|
)
|
|||
Purchases of loan portfolios
|
(140,085
|
)
|
|
(58,564
|
)
|
|
(83,784
|
)
|
|||
Proceeds from sales of foreclosed loans and other real estate
|
140
|
|
|
46
|
|
|
286
|
|
|||
Proceeds from bank-owned life insurance death benefits
|
1,043
|
|
|
1,101
|
|
|
3,240
|
|
|||
Purchases of premises and equipment
|
(7,197
|
)
|
|
(3,225
|
)
|
|
(6,531
|
)
|
|||
Distributions from unconsolidated subsidiaries
|
622
|
|
|
622
|
|
|
658
|
|
|||
Contributions to unconsolidated subsidiaries
|
(1,222
|
)
|
|
(3,297
|
)
|
|
(114
|
)
|
|||
Proceeds from redemption (purchases) of FHLB stock
|
1,662
|
|
|
(8,884
|
)
|
|
3,811
|
|
|||
Net cash used in investing activities
|
(128,972
|
)
|
|
(211,143
|
)
|
|
(296,127
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Net increase (decrease) in deposits
|
173,533
|
|
|
(9,864
|
)
|
|
348,153
|
|
|||
Proceeds from long-term debt
|
—
|
|
|
50,000
|
|
|
—
|
|
|||
Repayments of long-term debt
|
(20,619
|
)
|
|
(20,619
|
)
|
|
—
|
|
|||
Net (decrease) increase in FHLB advances and other short-term borrowings
|
(47,000
|
)
|
|
165,000
|
|
|
(103,000
|
)
|
|||
Cash dividends paid on common stock
|
(25,706
|
)
|
|
(24,143
|
)
|
|
(21,299
|
)
|
|||
Repurchases of common stock
|
(22,793
|
)
|
|
(32,824
|
)
|
|
(26,559
|
)
|
|||
Net proceeds from issuance of common stock and stock option exercises
|
151
|
|
|
—
|
|
|
—
|
|
|||
Net cash provided by financing activities
|
57,566
|
|
|
127,550
|
|
|
197,295
|
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
786
|
|
|
19,893
|
|
|
(2,048
|
)
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of year
|
102,186
|
|
|
82,293
|
|
|
84,341
|
|
|||
Cash and cash equivalents at end of year
|
$
|
102,972
|
|
|
$
|
102,186
|
|
|
$
|
82,293
|
|
|
|
|
|
|
|
||||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|||
Cash paid during the year for:
|
|
|
|
|
|
|
|
|
|||
Interest
|
$
|
33,072
|
|
|
$
|
23,943
|
|
|
$
|
12,717
|
|
Income taxes
|
24,101
|
|
|
23
|
|
|
8,401
|
|
|||
|
|
|
|
|
|
||||||
Supplemental non-cash disclosures:
|
|
|
|
|
|
|
|||||
Net change in common stock held by directors' deferred compensation plan
|
$
|
416
|
|
|
$
|
504
|
|
|
$
|
385
|
|
Net reclassification of loans to foreclosed loans and other real estate
|
142
|
|
|
40
|
|
|
154
|
|
|||
Net transfer of investment securities from held-to-maturity to available-for-sale
|
(149,042
|
)
|
|
—
|
|
|
—
|
|
|||
Right-of-use lease assets obtained in exchange for lease liabilities
|
56,779
|
|
|
—
|
|
|
—
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
|
|
|
Impact of
|
|
|
|
|
|
Impact of
|
||||||||||||
(dollars in thousands)
|
Unadjusted
|
|
Adjusted
|
|
Change
|
|
Unadjusted
|
|
Adjusted
|
|
Change
|
||||||||||||
Other operating expense
|
$
|
135,687
|
|
|
$
|
134,682
|
|
|
$
|
(1,005
|
)
|
|
$
|
131,817
|
|
|
$
|
131,073
|
|
|
$
|
(744
|
)
|
Income tax expense
|
17,753
|
|
|
18,758
|
|
|
1,005
|
|
|
33,852
|
|
|
34,596
|
|
|
744
|
|
||||||
Net income
|
59,486
|
|
|
59,486
|
|
|
—
|
|
|
41,204
|
|
|
41,204
|
|
|
—
|
|
•
|
The length of time and the extent to which fair value has been less than the amortized cost basis;
|
•
|
Adverse conditions specifically related to the security, an industry, or a geographic area;
|
•
|
The historical and implied volatility of the fair value of the security;
|
•
|
The payment structure of the debt security and the likelihood of the issuer being able to make payments;
|
•
|
Failure of the issuer to make scheduled interest or principal payments;
|
•
|
Any rating changes by a rating agency; and
|
•
|
Recoveries or additional decline in fair value subsequent to the balance sheet date.
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
|
(Dollars in thousands)
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Available-for-Sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
States and political subdivisions
|
$
|
119,755
|
|
|
$
|
2,303
|
|
|
$
|
(40
|
)
|
|
$
|
122,018
|
|
Corporate securities
|
30,277
|
|
|
252
|
|
|
—
|
|
|
30,529
|
|
||||
U.S. Treasury obligations and direct obligations of U.S Government agencies
|
40,769
|
|
|
10
|
|
|
(398
|
)
|
|
40,381
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential - U.S. GSEs
|
673,918
|
|
|
6,003
|
|
|
(2,099
|
)
|
|
677,822
|
|
||||
Residential - Non-government sponsored entities ("Non-GSEs")
|
36,377
|
|
|
830
|
|
|
(16
|
)
|
|
37,191
|
|
||||
Commercial - U.S. GSEs and agencies
|
80,773
|
|
|
1,198
|
|
|
(746
|
)
|
|
81,225
|
|
||||
Commercial - Non-GSEs
|
134,676
|
|
|
3,141
|
|
|
—
|
|
|
137,817
|
|
||||
Total available-for-sale investment securities
|
$
|
1,116,545
|
|
|
$
|
13,737
|
|
|
$
|
(3,299
|
)
|
|
$
|
1,126,983
|
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||
|
(Dollars in thousands)
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Held-to-Maturity:
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential - U.S. Government-sponsored entities ("GSEs")
|
$
|
83,436
|
|
|
$
|
19
|
|
|
$
|
(3,174
|
)
|
|
$
|
80,281
|
|
Commercial - U.S. GSEs
|
65,072
|
|
|
—
|
|
|
(1,081
|
)
|
|
63,991
|
|
||||
Total held-to-maturity investment securities
|
$
|
148,508
|
|
|
$
|
19
|
|
|
$
|
(4,255
|
)
|
|
$
|
144,272
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-Sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
States and political subdivisions
|
$
|
174,114
|
|
|
$
|
1,035
|
|
|
$
|
(1,475
|
)
|
|
$
|
173,674
|
|
Corporate securities
|
55,259
|
|
|
—
|
|
|
(410
|
)
|
|
54,849
|
|
||||
U.S. Treasury obligations and direct obligations of U.S Government agencies
|
33,257
|
|
|
—
|
|
|
(683
|
)
|
|
32,574
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential - U.S. GSEs
|
736,175
|
|
|
369
|
|
|
(19,492
|
)
|
|
717,052
|
|
||||
Residential - Non-government sponsored entities ("Non-GSEs")
|
41,245
|
|
|
337
|
|
|
(464
|
)
|
|
41,118
|
|
||||
Commercial - U.S. GSEs and agencies
|
53,014
|
|
|
—
|
|
|
(1,531
|
)
|
|
51,483
|
|
||||
Commercial - Non-GSEs
|
134,867
|
|
|
1,013
|
|
|
(1,152
|
)
|
|
134,728
|
|
||||
Total available-for-sale investment securities
|
$
|
1,227,931
|
|
|
$
|
2,754
|
|
|
$
|
(25,207
|
)
|
|
$
|
1,205,478
|
|
(dollars in thousands)
|
Amortized Cost
|
|
Fair Value
|
||
December 31, 2019
|
|
|
|
||
Equity securities
|
935
|
|
|
1,127
|
|
|
|
|
|
||
December 31, 2018
|
|
|
|
||
Equity securities
|
826
|
|
|
826
|
|
|
December 31, 2019
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
|
(Dollars in thousands)
|
||||||
Available-for-Sale:
|
|
|
|
||||
Due in one year or less
|
$
|
50,356
|
|
|
$
|
50,681
|
|
Due after one year through five years
|
46,846
|
|
|
47,258
|
|
||
Due after five years through ten years
|
62,562
|
|
|
63,695
|
|
||
Due after ten years
|
31,037
|
|
|
31,294
|
|
||
Mortgage-backed securities
|
|
|
|
||||
Residential - U.S. GSEs
|
673,918
|
|
|
677,822
|
|
||
Residential - Non-government sponsored entities ("Non-GSEs")
|
36,377
|
|
|
37,191
|
|
||
Commercial - U.S. GSEs and agencies
|
80,773
|
|
|
81,225
|
|
||
Commercial - Non-GSEs
|
134,676
|
|
|
137,817
|
|
||
Total available-for-sale investment securities
|
$
|
1,116,545
|
|
|
$
|
1,126,983
|
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
Description of Securities
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
States and political subdivisions
|
$
|
1,754
|
|
|
$
|
(9
|
)
|
|
$
|
801
|
|
|
$
|
(31
|
)
|
|
$
|
2,555
|
|
|
$
|
(40
|
)
|
Corporate securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies
|
18,882
|
|
|
(143
|
)
|
|
19,031
|
|
|
(255
|
)
|
|
37,913
|
|
|
(398
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential - U.S. Government-sponsored entities ("GSEs")
|
54,335
|
|
|
(283
|
)
|
|
214,295
|
|
|
(1,816
|
)
|
|
268,630
|
|
|
(2,099
|
)
|
||||||
Residential - Non-government sponsored entities ("Non-GSEs").
|
8,206
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
8,206
|
|
|
(16
|
)
|
||||||
Commercial - U.S. GSEs and agencies
|
32,067
|
|
|
(746
|
)
|
|
—
|
|
|
—
|
|
|
32,067
|
|
|
(746
|
)
|
||||||
Total temporarily impaired securities
|
$
|
115,244
|
|
|
$
|
(1,197
|
)
|
|
$
|
234,127
|
|
|
$
|
(2,102
|
)
|
|
$
|
349,371
|
|
|
$
|
(3,299
|
)
|
|
Less Than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
Description of Securities
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
States and political subdivisions
|
$
|
38,099
|
|
|
$
|
(157
|
)
|
|
$
|
49,505
|
|
|
$
|
(1,318
|
)
|
|
$
|
87,604
|
|
|
$
|
(1,475
|
)
|
Corporate securities
|
49,729
|
|
|
(250
|
)
|
|
5,120
|
|
|
(160
|
)
|
|
54,849
|
|
|
(410
|
)
|
||||||
U.S. Treasury obligations and direct obligations of U.S Government agencies
|
30,029
|
|
|
(613
|
)
|
|
2,545
|
|
|
(70
|
)
|
|
32,574
|
|
|
(683
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential - U.S. Government-sponsored entities ("GSEs")
|
88,957
|
|
|
(1,229
|
)
|
|
666,685
|
|
|
(21,437
|
)
|
|
755,642
|
|
|
(22,666
|
)
|
||||||
Residential - Non-government sponsored entities ("Non-GSEs").
|
—
|
|
|
—
|
|
|
24,515
|
|
|
(464
|
)
|
|
24,515
|
|
|
(464
|
)
|
||||||
Commercial - U.S. GSEs and agencies
|
13,973
|
|
|
(247
|
)
|
|
101,500
|
|
|
(2,365
|
)
|
|
115,473
|
|
|
(2,612
|
)
|
||||||
Commercial - Non-GSEs
|
33,847
|
|
|
(233
|
)
|
|
46,680
|
|
|
(919
|
)
|
|
80,527
|
|
|
(1,152
|
)
|
||||||
Total temporarily impaired securities
|
$
|
254,634
|
|
|
$
|
(2,729
|
)
|
|
$
|
896,550
|
|
|
$
|
(26,733
|
)
|
|
$
|
1,151,184
|
|
|
$
|
(29,462
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Commercial, financial and agricultural
|
$
|
570,089
|
|
|
$
|
581,177
|
|
Real estate:
|
|
|
|
||||
Construction
|
96,139
|
|
|
67,269
|
|
||
Residential mortgage
|
1,595,801
|
|
|
1,424,384
|
|
||
Home equity
|
490,239
|
|
|
468,966
|
|
||
Commercial mortgage
|
1,124,911
|
|
|
1,041,685
|
|
||
Consumer
|
569,516
|
|
|
492,268
|
|
||
Leases
|
—
|
|
|
124
|
|
||
Subtotal
|
4,446,695
|
|
|
4,075,873
|
|
||
Net deferred costs
|
2,845
|
|
|
2,493
|
|
||
Total loans and leases
|
$
|
4,449,540
|
|
|
$
|
4,078,366
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Comml.,
Fin. & Ag. |
|
Constr.
|
|
Resi.
Mortgage |
|
Home
Equity |
|
Comml.
Mortgage |
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Individually evaluated for impairment
|
$
|
218
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
235
|
|
Collectively evaluated for impairment
|
7,918
|
|
|
1,792
|
|
|
13,327
|
|
|
4,206
|
|
|
11,113
|
|
|
9,380
|
|
|
—
|
|
|
47,736
|
|
||||||||
Total ending balance
|
$
|
8,136
|
|
|
$
|
1,792
|
|
|
$
|
13,327
|
|
|
$
|
4,206
|
|
|
$
|
11,113
|
|
|
$
|
9,397
|
|
|
$
|
—
|
|
|
$
|
47,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Individually evaluated for impairment
|
$
|
602
|
|
|
$
|
—
|
|
|
$
|
6,516
|
|
|
$
|
92
|
|
|
$
|
1,839
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
9,066
|
|
Collectively evaluated for impairment
|
569,487
|
|
|
96,139
|
|
|
1,589,285
|
|
|
490,147
|
|
|
1,123,072
|
|
|
569,499
|
|
|
—
|
|
|
4,437,629
|
|
||||||||
Subtotal
|
570,089
|
|
|
96,139
|
|
|
1,595,801
|
|
|
490,239
|
|
|
1,124,911
|
|
|
569,516
|
|
|
—
|
|
|
4,446,695
|
|
||||||||
Net deferred costs (income)
|
215
|
|
|
(285
|
)
|
|
4,000
|
|
|
495
|
|
|
(1,496
|
)
|
|
(84
|
)
|
|
—
|
|
|
2,845
|
|
||||||||
Total ending balance
|
$
|
570,304
|
|
|
$
|
95,854
|
|
|
$
|
1,599,801
|
|
|
$
|
490,734
|
|
|
$
|
1,123,415
|
|
|
$
|
569,432
|
|
|
$
|
—
|
|
|
$
|
4,449,540
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Comml.,
Fin. & Ag. |
|
Constr.
|
|
Resi.
Mortgage |
|
Home
Equity |
|
Comml.
Mortgage |
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Collectively evaluated for impairment
|
8,027
|
|
|
1,202
|
|
|
14,349
|
|
|
3,788
|
|
|
13,358
|
|
|
7,192
|
|
|
—
|
|
|
47,916
|
|
||||||||
Total ending balance
|
$
|
8,027
|
|
|
$
|
1,202
|
|
|
$
|
14,349
|
|
|
$
|
3,788
|
|
|
$
|
13,358
|
|
|
$
|
7,192
|
|
|
$
|
—
|
|
|
$
|
47,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Individually evaluated for impairment
|
$
|
220
|
|
|
$
|
2,273
|
|
|
$
|
10,075
|
|
|
$
|
275
|
|
|
$
|
2,348
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,191
|
|
Collectively evaluated for impairment
|
580,957
|
|
|
64,996
|
|
|
1,414,309
|
|
|
468,691
|
|
|
1,039,337
|
|
|
492,268
|
|
|
124
|
|
|
4,060,682
|
|
||||||||
Subtotal
|
581,177
|
|
|
67,269
|
|
|
1,424,384
|
|
|
468,966
|
|
|
1,041,685
|
|
|
492,268
|
|
|
124
|
|
|
4,075,873
|
|
||||||||
Net deferred costs (income)
|
483
|
|
|
(342
|
)
|
|
3,821
|
|
|
—
|
|
|
(1,407
|
)
|
|
(62
|
)
|
|
—
|
|
|
2,493
|
|
||||||||
Total ending balance
|
$
|
581,660
|
|
|
$
|
66,927
|
|
|
$
|
1,428,205
|
|
|
$
|
468,966
|
|
|
$
|
1,040,278
|
|
|
$
|
492,206
|
|
|
$
|
124
|
|
|
$
|
4,078,366
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Unpaid
Principal Balance |
|
Recorded
Investment |
|
Allowance
Allocated |
|
Unpaid
Principal Balance |
|
Recorded
Investment |
|
Allowance
Allocated |
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Impaired loans with no related Allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial, financial and agricultural
|
$
|
246
|
|
|
$
|
135
|
|
|
$
|
—
|
|
|
$
|
330
|
|
|
$
|
220
|
|
|
$
|
—
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
3,076
|
|
|
2,273
|
|
|
—
|
|
||||||
Residential mortgage
|
7,230
|
|
|
6,516
|
|
|
—
|
|
|
11,019
|
|
|
10,075
|
|
|
—
|
|
||||||
Home equity
|
92
|
|
|
92
|
|
|
—
|
|
|
275
|
|
|
275
|
|
|
—
|
|
||||||
Commercial mortgage
|
1,839
|
|
|
1,839
|
|
|
—
|
|
|
2,348
|
|
|
2,348
|
|
|
—
|
|
||||||
Total impaired loans with no related Allowance recorded
|
9,407
|
|
|
8,582
|
|
|
—
|
|
|
17,048
|
|
|
15,191
|
|
|
—
|
|
||||||
Impaired loans with an Allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial, financial and agricultural
|
467
|
|
|
467
|
|
|
218
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
17
|
|
|
17
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired loans with an Allowance recorded
|
484
|
|
|
484
|
|
|
235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total impaired loans
|
$
|
9,891
|
|
|
$
|
9,066
|
|
|
$
|
235
|
|
|
$
|
17,048
|
|
|
$
|
15,191
|
|
|
$
|
—
|
|
|
Year Ended
|
|
Year Ended
|
|
Year Ended
|
||||||||||||||||||
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
Average
Recorded Investment |
|
Interest
Income Recognized |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
|
Average
Recorded Investment |
|
Interest
Income Recognized |
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial, financial and agricultural
|
$
|
214
|
|
|
$
|
9
|
|
|
$
|
435
|
|
|
$
|
24
|
|
|
$
|
1,272
|
|
|
$
|
24
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
1,018
|
|
|
62
|
|
|
2,436
|
|
|
111
|
|
|
2,760
|
|
|
99
|
|
||||||
Residential mortgage
|
8,322
|
|
|
905
|
|
|
12,681
|
|
|
662
|
|
|
17,122
|
|
|
1,843
|
|
||||||
Home equity
|
277
|
|
|
13
|
|
|
482
|
|
|
—
|
|
|
1,213
|
|
|
69
|
|
||||||
Commercial mortgage
|
2,098
|
|
|
86
|
|
|
3,368
|
|
|
179
|
|
|
4,893
|
|
|
313
|
|
||||||
Consumer
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
$
|
11,932
|
|
|
$
|
1,075
|
|
|
$
|
19,402
|
|
|
$
|
976
|
|
|
$
|
27,260
|
|
|
$
|
2,348
|
|
|
Accruing
Loans 30 - 59 Days Past Due |
|
Accruing
Loans 60 - 89 Days Past Due |
|
Accruing
Loans 90+ Days Past Due |
|
Nonaccrual
Loans |
|
Total
Past Due and Nonaccrual |
|
Loans and
Leases Not Past Due |
|
Total
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial, financial and agricultural
|
$
|
476
|
|
|
$
|
865
|
|
|
$
|
—
|
|
|
$
|
467
|
|
|
$
|
1,808
|
|
|
$
|
568,496
|
|
|
$
|
570,304
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
643
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
643
|
|
|
95,211
|
|
|
95,854
|
|
|||||||
Residential mortgage
|
1,830
|
|
|
589
|
|
|
724
|
|
|
979
|
|
|
4,122
|
|
|
1,595,679
|
|
|
1,599,801
|
|
|||||||
Home equity
|
759
|
|
|
207
|
|
|
—
|
|
|
92
|
|
|
1,058
|
|
|
489,676
|
|
|
490,734
|
|
|||||||
Commercial mortgage
|
—
|
|
|
397
|
|
|
—
|
|
|
—
|
|
|
397
|
|
|
1,123,018
|
|
|
1,123,415
|
|
|||||||
Consumer
|
3,223
|
|
|
943
|
|
|
286
|
|
|
17
|
|
|
4,469
|
|
|
564,963
|
|
|
569,432
|
|
|||||||
Total
|
$
|
6,931
|
|
|
$
|
3,001
|
|
|
$
|
1,010
|
|
|
$
|
1,555
|
|
|
$
|
12,497
|
|
|
$
|
4,437,043
|
|
|
$
|
4,449,540
|
|
|
Accruing
Loans 30 - 59 Days Past Due |
|
Accruing
Loans 60 - 89 Days Past Due |
|
Accruing
Loans 90+ Days Past Due |
|
Nonaccrual
Loans |
|
Total
Past Due and Nonaccrual |
|
Loans and
Leases Not Past Due |
|
Total
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial, financial and agricultural
|
$
|
1,348
|
|
|
$
|
162
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,510
|
|
|
$
|
580,150
|
|
|
$
|
581,660
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,927
|
|
|
66,927
|
|
|||||||
Residential mortgage
|
3,966
|
|
|
157
|
|
|
—
|
|
|
2,048
|
|
|
6,171
|
|
|
1,422,034
|
|
|
1,428,205
|
|
|||||||
Home equity
|
433
|
|
|
104
|
|
|
298
|
|
|
275
|
|
|
1,110
|
|
|
467,856
|
|
|
468,966
|
|
|||||||
Commercial mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,040,278
|
|
|
1,040,278
|
|
|||||||
Consumer
|
2,340
|
|
|
872
|
|
|
238
|
|
|
—
|
|
|
3,450
|
|
|
488,756
|
|
|
492,206
|
|
|||||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124
|
|
|
124
|
|
|||||||
Total
|
$
|
8,087
|
|
|
$
|
1,295
|
|
|
$
|
536
|
|
|
$
|
2,323
|
|
|
$
|
12,241
|
|
|
$
|
4,066,125
|
|
|
$
|
4,078,366
|
|
|
Year Ended December 31, 2019
|
|||||||||
|
Number
of Loans |
|
Recorded
Investment (as of period end) |
|
Increase
in the Allowance |
|||||
|
(Dollars in thousands)
|
|||||||||
Real estate: Residential mortgage
|
1
|
|
|
$
|
104
|
|
|
$
|
—
|
|
Total
|
1
|
|
|
$
|
104
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|||||
|
Year Ended December 31, 2018
|
|||||||||
|
Number
of Loans |
|
Recorded
Investment (as of period end) |
|
Increase
in the Allowance |
|||||
|
(Dollars in thousands)
|
|||||||||
Real estate: Residential mortgage
|
3
|
|
|
$
|
575
|
|
|
$
|
—
|
|
Total
|
3
|
|
|
$
|
575
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|||||
|
Year Ended December 31, 2017
|
|||||||||
|
Number
of Loans |
|
Recorded
Investment (as of period end) |
|
Increase
in the Allowance |
|||||
|
(Dollars in thousands)
|
|||||||||
Real estate: Residential mortgage
|
3
|
|
|
$
|
104
|
|
|
$
|
—
|
|
Total
|
3
|
|
|
$
|
104
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Loss
|
|
Subtotal
|
|
Net
Deferred Costs (Income) |
|
Total
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial, financial and agricultural
|
$
|
523,342
|
|
|
$
|
20,677
|
|
|
$
|
26,070
|
|
|
$
|
—
|
|
|
$
|
570,089
|
|
|
$
|
215
|
|
|
$
|
570,304
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
96,139
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96,139
|
|
|
(285
|
)
|
|
95,854
|
|
|||||||
Residential mortgage
|
1,593,072
|
|
|
840
|
|
|
1,889
|
|
|
—
|
|
|
1,595,801
|
|
|
4,000
|
|
|
1,599,801
|
|
|||||||
Home equity
|
490,147
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
490,239
|
|
|
495
|
|
|
490,734
|
|
|||||||
Commercial mortgage
|
1,094,364
|
|
|
17,440
|
|
|
13,107
|
|
|
—
|
|
|
1,124,911
|
|
|
(1,496
|
)
|
|
1,123,415
|
|
|||||||
Consumer
|
569,212
|
|
|
—
|
|
|
193
|
|
|
111
|
|
|
569,516
|
|
|
(84
|
)
|
|
569,432
|
|
|||||||
Total
|
$
|
4,366,276
|
|
|
$
|
38,957
|
|
|
$
|
41,351
|
|
|
$
|
111
|
|
|
$
|
4,446,695
|
|
|
$
|
2,845
|
|
|
$
|
4,449,540
|
|
|
Pass
|
|
Special
Mention |
|
Substandard
|
|
Loss
|
|
Subtotal
|
|
Net
Deferred Costs (Income) |
|
Total
|
||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial, financial and agricultural
|
$
|
552,706
|
|
|
$
|
7,961
|
|
|
$
|
20,510
|
|
|
$
|
—
|
|
|
$
|
581,177
|
|
|
$
|
483
|
|
|
$
|
581,660
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Construction
|
67,269
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,269
|
|
|
(342
|
)
|
|
66,927
|
|
|||||||
Residential mortgage
|
1,422,240
|
|
|
—
|
|
|
2,144
|
|
|
—
|
|
|
1,424,384
|
|
|
3,821
|
|
|
1,428,205
|
|
|||||||
Home equity
|
468,394
|
|
|
—
|
|
|
572
|
|
|
—
|
|
|
468,966
|
|
|
—
|
|
|
468,966
|
|
|||||||
Commercial mortgage
|
1,029,581
|
|
|
10,412
|
|
|
1,692
|
|
|
—
|
|
|
1,041,685
|
|
|
(1,407
|
)
|
|
1,040,278
|
|
|||||||
Consumer
|
492,030
|
|
|
—
|
|
|
80
|
|
|
158
|
|
|
492,268
|
|
|
(62
|
)
|
|
492,206
|
|
|||||||
Leases
|
124
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124
|
|
|
—
|
|
|
124
|
|
|||||||
Total
|
$
|
4,032,344
|
|
|
$
|
18,373
|
|
|
$
|
24,998
|
|
|
$
|
158
|
|
|
$
|
4,075,873
|
|
|
$
|
2,493
|
|
|
$
|
4,078,366
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Commercial,
Financial & Agricultural |
|
Construction
|
|
Residential
Mortgage |
|
Home
Equity |
|
Commercial
Mortgage |
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Year ended December 31, 2019
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
8,027
|
|
|
$
|
1,202
|
|
|
$
|
14,349
|
|
|
$
|
3,788
|
|
|
$
|
13,358
|
|
|
$
|
7,192
|
|
|
$
|
—
|
|
|
$
|
47,916
|
|
Provision (credit) for loan and lease losses
|
1,413
|
|
|
(20
|
)
|
|
(1,546
|
)
|
|
381
|
|
|
(2,270
|
)
|
|
8,359
|
|
|
—
|
|
|
6,317
|
|
||||||||
|
9,440
|
|
|
1,182
|
|
|
12,803
|
|
|
4,169
|
|
|
11,088
|
|
|
15,551
|
|
|
—
|
|
|
54,233
|
|
||||||||
Charge-offs
|
2,478
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
8,265
|
|
|
—
|
|
|
10,748
|
|
||||||||
Recoveries
|
1,174
|
|
|
610
|
|
|
524
|
|
|
42
|
|
|
25
|
|
|
2,111
|
|
|
—
|
|
|
4,486
|
|
||||||||
Net charge-offs (recoveries)
|
1,304
|
|
|
(610
|
)
|
|
(524
|
)
|
|
(37
|
)
|
|
(25
|
)
|
|
6,154
|
|
|
—
|
|
|
6,262
|
|
||||||||
Ending balance
|
$
|
8,136
|
|
|
$
|
1,792
|
|
|
$
|
13,327
|
|
|
$
|
4,206
|
|
|
$
|
11,113
|
|
|
$
|
9,397
|
|
|
$
|
—
|
|
|
$
|
47,971
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Commercial,
Financial & Agricultural |
|
Construction
|
|
Residential
Mortgage |
|
Home
Equity |
|
Commercial
Mortgage |
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Year ended December 31, 2018
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
7,594
|
|
|
$
|
1,835
|
|
|
$
|
14,328
|
|
|
$
|
3,317
|
|
|
$
|
16,801
|
|
|
$
|
6,126
|
|
|
$
|
—
|
|
|
$
|
50,001
|
|
Provision (credit) for loan and lease losses
|
2,082
|
|
|
(6,392
|
)
|
|
(183
|
)
|
|
444
|
|
|
(3,495
|
)
|
|
6,420
|
|
|
—
|
|
|
(1,124
|
)
|
||||||||
|
9,676
|
|
|
(4,557
|
)
|
|
14,145
|
|
|
3,761
|
|
|
13,306
|
|
|
12,546
|
|
|
—
|
|
|
48,877
|
|
||||||||
Charge-offs
|
2,852
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,323
|
|
|
—
|
|
|
10,175
|
|
||||||||
Recoveries
|
1,203
|
|
|
5,759
|
|
|
204
|
|
|
27
|
|
|
52
|
|
|
1,969
|
|
|
—
|
|
|
9,214
|
|
||||||||
Net charge-offs (recoveries)
|
1,649
|
|
|
(5,759
|
)
|
|
(204
|
)
|
|
(27
|
)
|
|
(52
|
)
|
|
5,354
|
|
|
—
|
|
|
961
|
|
||||||||
Ending balance
|
$
|
8,027
|
|
|
$
|
1,202
|
|
|
$
|
14,349
|
|
|
$
|
3,788
|
|
|
$
|
13,358
|
|
|
$
|
7,192
|
|
|
$
|
—
|
|
|
$
|
47,916
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Commercial,
Financial & Agricultural |
|
Construction
|
|
Residential
Mortgage |
|
Home
Equity |
|
Commercial
Mortgage |
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Year ended December 31, 2017
|
|||||||||||||||||||||||||||||||
Beginning balance
|
$
|
8,637
|
|
|
$
|
4,224
|
|
|
$
|
15,055
|
|
|
$
|
3,502
|
|
|
$
|
19,104
|
|
|
$
|
6,109
|
|
|
$
|
—
|
|
|
$
|
56,631
|
|
Provision (credit) for loan and lease losses
|
(705
|
)
|
|
(2,558
|
)
|
|
(1,533
|
)
|
|
(229
|
)
|
|
(2,460
|
)
|
|
4,811
|
|
|
—
|
|
|
(2,674
|
)
|
||||||||
|
7,932
|
|
|
1,666
|
|
|
13,522
|
|
|
3,273
|
|
|
16,644
|
|
|
10,920
|
|
|
—
|
|
|
53,957
|
|
||||||||
Charge-offs
|
1,704
|
|
|
—
|
|
|
73
|
|
|
—
|
|
|
—
|
|
|
6,294
|
|
|
—
|
|
|
8,071
|
|
||||||||
Recoveries
|
1,366
|
|
|
169
|
|
|
879
|
|
|
44
|
|
|
157
|
|
|
1,500
|
|
|
—
|
|
|
4,115
|
|
||||||||
Net charge-offs
|
338
|
|
|
(169
|
)
|
|
(806
|
)
|
|
(44
|
)
|
|
(157
|
)
|
|
4,794
|
|
|
—
|
|
|
3,956
|
|
||||||||
Ending balance
|
$
|
7,594
|
|
|
$
|
1,835
|
|
|
$
|
14,328
|
|
|
$
|
3,317
|
|
|
$
|
16,801
|
|
|
$
|
6,126
|
|
|
$
|
—
|
|
|
$
|
50,001
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Balance, beginning of year
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Provision for loan and lease losses
|
235
|
|
|
—
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
235
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Land
|
$
|
8,309
|
|
|
$
|
8,309
|
|
Office buildings and improvements
|
107,840
|
|
|
102,398
|
|
||
Furniture, fixtures and equipment
|
39,066
|
|
|
37,586
|
|
||
Gross premises and equipment
|
155,215
|
|
|
148,293
|
|
||
Accumulated depreciation and amortization
|
(108,872
|
)
|
|
(103,008
|
)
|
||
Net premises and equipment
|
$
|
46,343
|
|
|
$
|
45,285
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Net occupancy
|
$
|
3,401
|
|
|
$
|
3,527
|
|
|
$
|
3,880
|
|
Equipment
|
2,738
|
|
|
2,761
|
|
|
2,561
|
|
|||
Total
|
$
|
6,139
|
|
|
$
|
6,288
|
|
|
$
|
6,441
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Investments in low income housing tax credit partnerships
|
$
|
15,322
|
|
|
$
|
11,603
|
|
Investments in common securities of statutory trusts
|
1,547
|
|
|
2,169
|
|
||
Investments in affiliates
|
192
|
|
|
182
|
|
||
Other
|
54
|
|
|
54
|
|
||
Total
|
$
|
17,115
|
|
|
$
|
14,008
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Proportional amortization method:
|
|
|
|
|
|
||||||
Amortization expense recognized in income tax expense
|
$
|
681
|
|
|
$
|
1,005
|
|
|
$
|
744
|
|
Federal and state tax credits recognized in income tax expense
|
803
|
|
|
759
|
|
|
919
|
|
|
Core
Deposit Premium |
|
Mortgage
Servicing Rights |
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||
Balance as of December 31, 2016
|
$
|
4,680
|
|
|
$
|
15,779
|
|
|
$
|
20,459
|
|
Additions
|
—
|
|
|
2,352
|
|
|
2,352
|
|
|||
Amortization
|
(2,674
|
)
|
|
(2,288
|
)
|
|
(4,962
|
)
|
|||
Balance as of December 31, 2017
|
$
|
2,006
|
|
|
$
|
15,843
|
|
|
$
|
17,849
|
|
Additions
|
—
|
|
|
1,612
|
|
|
1,612
|
|
|||
Amortization
|
(2,006
|
)
|
|
(1,859
|
)
|
|
(3,865
|
)
|
|||
Balance as of December 31, 2018
|
$
|
—
|
|
|
$
|
15,596
|
|
|
$
|
15,596
|
|
Additions
|
—
|
|
|
1,582
|
|
|
1,582
|
|
|||
Amortization
|
—
|
|
|
(2,460
|
)
|
|
(2,460
|
)
|
|||
Balance as of December 31, 2019
|
$
|
—
|
|
|
$
|
14,718
|
|
|
$
|
14,718
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Gross
Carrying Value |
|
Accumulated
Amortization |
|
Net
Carrying Value |
|
Gross
Carrying Value |
|
Accumulated
Amortization |
|
Net
Carrying Value |
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Core deposit premium
|
$
|
44,642
|
|
|
$
|
(44,642
|
)
|
|
$
|
—
|
|
|
$
|
44,642
|
|
|
$
|
(44,642
|
)
|
|
$
|
—
|
|
Mortgage servicing rights
|
67,595
|
|
|
(52,877
|
)
|
|
14,718
|
|
|
66,013
|
|
|
(50,417
|
)
|
|
15,596
|
|
||||||
Total
|
$
|
112,237
|
|
|
$
|
(97,519
|
)
|
|
$
|
14,718
|
|
|
$
|
110,655
|
|
|
$
|
(95,059
|
)
|
|
$
|
15,596
|
|
Year Ending December 31:
|
|
||
2020
|
$
|
2,407
|
|
2021
|
1,964
|
|
|
2022
|
1,635
|
|
|
2023
|
1,382
|
|
|
2024
|
1,154
|
|
|
Thereafter
|
6,176
|
|
|
Total
|
$
|
14,718
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Fair market value, beginning of period
|
$
|
17,696
|
|
|
$
|
17,161
|
|
Fair market value, end of period
|
15,820
|
|
|
17,696
|
|
||
Weighted average discount rate
|
9.5
|
%
|
|
9.5
|
%
|
||
Weighted average prepayment speed assumption
|
14.2
|
%
|
|
14.5
|
%
|
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
Derivatives not designated as
|
|
Balance Sheet
|
|
Fair Value at
|
|
Fair Value at
|
|
Fair Value at
|
|
Fair Value at
|
||||||||
hedging instruments
|
|
Location
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||
|
|
|
|
(Dollars in thousands)
|
||||||||||||||
Interest rate lock and forward sale commitments
|
|
Other assets / other liabilities
|
|
$
|
8
|
|
|
$
|
11
|
|
|
$
|
28
|
|
|
$
|
95
|
|
Derivatives not in Cash Flow
Hedging Relationship |
|
Location of Gain (Loss)
Recognized in Earnings on Derivatives |
|
Amount of Gain (Loss)
Recognized in Earnings on Derivatives |
||
|
|
(Dollars in thousands)
|
||||
Year ended December 31, 2019
|
|
|
|
|
|
|
Interest rate lock and forward sale commitments
|
|
Mortgage banking income
|
|
$
|
63
|
|
|
|
|
|
|
|
|
Year ended December 31, 2018
|
|
|
|
|
|
|
Interest rate lock and forward sale commitments
|
|
Mortgage banking income
|
|
(70
|
)
|
|
|
|
|
|
|
||
Year ended December 31, 2017
|
|
|
|
|
||
Interest rate lock and forward sale commitments
|
|
Mortgage banking income
|
|
(156
|
)
|
Year Ending December 31:
|
|
||
2020
|
$
|
946,738
|
|
2021
|
35,469
|
|
|
2022
|
21,690
|
|
|
2023
|
9,956
|
|
|
2024
|
12,239
|
|
|
Thereafter
|
361
|
|
|
Total
|
$
|
1,026,453
|
|
(Dollars in thousands)
|
|
||
Three months or less
|
$
|
336,195
|
|
Over three months through six months
|
232,713
|
|
|
Over six months through twelve months
|
177,173
|
|
|
2021
|
13,415
|
|
|
2022
|
3,713
|
|
|
2023
|
2,033
|
|
|
2024
|
1,156
|
|
|
Thereafter
|
—
|
|
|
Total
|
$
|
766,398
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Amount outstanding at December 31
|
$
|
150,000
|
|
|
$
|
197,000
|
|
|
$
|
32,000
|
|
Average amount outstanding during year
|
185,909
|
|
|
50,630
|
|
|
15,531
|
|
|||
Highest month-end balance during year
|
334,500
|
|
|
197,000
|
|
|
69,000
|
|
|||
Weighted average interest rate on balances outstanding at December 31
|
1.81
|
%
|
|
2.59
|
%
|
|
1.63
|
%
|
|||
Weighted average interest rate during year
|
2.31
|
%
|
|
2.44
|
%
|
|
1.18
|
%
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
FHLB advances
|
$
|
50,000
|
|
|
$
|
50,000
|
|
Subordinated debentures
|
51,547
|
|
|
72,166
|
|
||
Total
|
$
|
101,547
|
|
|
$
|
122,166
|
|
Year Ending December 31:
|
|
|
|
2020
|
$
|
25,000
|
|
2021
|
25,000
|
|
|
2022
|
—
|
|
|
2023
|
—
|
|
|
2024
|
—
|
|
|
Thereafter
|
51,547
|
|
|
Total
|
$
|
101,547
|
|
(dollars in thousands)
|
December 31, 2019
|
||||
Name of Trust
|
Amount of Subordinated Debentures
|
|
Interest Rate
|
||
Trust IV
|
$
|
30,928
|
|
|
Three month LIBOR + 2.45%
|
Trust V
|
20,619
|
|
|
Three month LIBOR + 1.87%
|
|
Total
|
$
|
51,547
|
|
|
|
|
|
|
|
||
|
December 31, 2018
|
||||
Name of Trust
|
Amount of Subordinated Debentures
|
|
Interest Rate
|
||
Trust II
|
$
|
20,619
|
|
|
Three month LIBOR + 2.85%
|
Trust IV
|
30,928
|
|
|
Three month LIBOR + 2.45%
|
|
Trust V
|
20,619
|
|
|
Three month LIBOR + 1.87%
|
|
Total
|
$
|
72,166
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
||||||
(dollars in thousands)
|
2019
|
|
2018
|
||||
Other operating income:
|
|
|
|
||||
In-scope of ASC 606
|
|
|
|
||||
Service charges on deposit accounts
|
$
|
8,406
|
|
|
$
|
8,406
|
|
Other service charges and fees
|
12,435
|
|
|
11,078
|
|
||
Income on fiduciary activities
|
4,395
|
|
|
4,245
|
|
||
Net gain (loss) on sales of foreclosed assets
|
(145
|
)
|
|
—
|
|
||
Fees on foreign exchange
|
101
|
|
|
110
|
|
||
Loan placement fees
|
702
|
|
|
747
|
|
||
In-scope other operating income
|
25,894
|
|
|
24,586
|
|
||
Out-of-scope other operating income
|
15,907
|
|
|
14,218
|
|
||
Total other operating income
|
$
|
41,801
|
|
|
$
|
38,804
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Mortgage banking income:
|
|
|
|
|
|
||||||
Net loan servicing fees
|
$
|
4,252
|
|
|
$
|
5,159
|
|
|
$
|
5,337
|
|
Amortization of mortgage servicing rights
|
(2,460
|
)
|
|
(1,859
|
)
|
|
(2,288
|
)
|
|||
Net gain on sale of residential mortgage loans
|
4,128
|
|
|
4,085
|
|
|
4,069
|
|
|||
Unrealized gain (loss) on interest rate locks
|
63
|
|
|
(70
|
)
|
|
(156
|
)
|
|||
Total mortgage banking income
|
$
|
5,983
|
|
|
$
|
7,315
|
|
|
$
|
6,962
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Salaries and employee benefits
|
$
|
4,289
|
|
|
$
|
3,787
|
|
|
$
|
3,266
|
|
Directors stock awards
|
96
|
|
|
255
|
|
|
150
|
|
|||
Income tax benefit
|
(1,427
|
)
|
|
(1,227
|
)
|
|
(1,903
|
)
|
|||
Net share-based compensation effect
|
$
|
2,958
|
|
|
$
|
2,815
|
|
|
$
|
1,513
|
|
|
Number
of Units |
|
Weighted
Average Exercise Price |
|
Weighted
Average Remaining Contractual Term (in years) |
|
Aggregate
Intrinsic Value (in thousands) |
|||||
Stock options outstanding as of January 1, 2019
|
147,644
|
|
|
$
|
15.77
|
|
|
|
|
|
||
Changes during the year:
|
|
|
|
|
|
|
|
|
|
|||
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
(10,553
|
)
|
|
14.31
|
|
|
|
|
|
|||
Expired
|
(3,278
|
)
|
|
80.08
|
|
|
|
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Stock options outstanding as of December 31, 2019
|
133,813
|
|
|
14.31
|
|
|
2.3
|
|
$
|
2,043
|
|
|
|
|
|
|
|
|
|
|
|||||
Vested and exercisable as of December 31, 2019
|
133,813
|
|
|
14.31
|
|
|
3.3
|
|
2,043
|
|
|
Number
of Units |
|
Weighted
Average Grant Date Fair Value |
|
Fair Value
of Restricted Stock Awards and Units That Vested During The Year (in thousands) |
|||||
Unvested as of December 31, 2016
|
437,697
|
|
|
$
|
22.01
|
|
|
|
||
|
|
|
|
|
|
|||||
Changes during the year:
|
|
|
|
|
|
|||||
Granted
|
126,204
|
|
|
31.35
|
|
|
|
|||
Forfeited
|
(31,570
|
)
|
|
24.89
|
|
|
|
|||
Vested
|
(134,780
|
)
|
|
19.81
|
|
|
$
|
4,224
|
|
|
Unvested as of December 31, 2017
|
397,551
|
|
|
25.49
|
|
|
|
|||
|
|
|
|
|
|
|||||
Changes during the year:
|
|
|
|
|
|
|||||
Granted
|
118,846
|
|
|
29.47
|
|
|
|
|||
Forfeited
|
(25,481
|
)
|
|
27.39
|
|
|
|
|||
Vested
|
(128,191
|
)
|
|
24.59
|
|
|
3,763
|
|
||
Unvested as of December 31, 2018
|
362,725
|
|
|
26.98
|
|
|
|
|||
|
|
|
|
|
|
|||||
Changes during the year:
|
|
|
|
|
|
|
|
|||
Granted
|
181,431
|
|
|
28.89
|
|
|
|
|||
Forfeited
|
(17,689
|
)
|
|
29.10
|
|
|
|
|||
Vested
|
(160,000
|
)
|
|
24.55
|
|
|
3,927
|
|
||
Unvested as of December 31, 2019
|
366,467
|
|
|
28.89
|
|
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Change in benefit obligation:
|
|
|
|
|
|
||
Benefit obligation at beginning of year
|
$
|
20,746
|
|
|
$
|
23,471
|
|
Interest cost
|
828
|
|
|
796
|
|
||
Actuarial (gains) losses
|
1,677
|
|
|
(1,714
|
)
|
||
Benefits paid
|
(1,648
|
)
|
|
(1,807
|
)
|
||
Benefit obligation at end of the year
|
21,603
|
|
|
20,746
|
|
||
|
|
|
|
||||
Change in plan assets, at fair value:
|
|
|
|
|
|
||
Fair value of plan assets at beginning of year
|
19,874
|
|
|
22,832
|
|
||
Actual return on plan assets
|
3,083
|
|
|
(1,151
|
)
|
||
Benefits paid
|
(1,648
|
)
|
|
(1,807
|
)
|
||
Fair value of plan assets at end of year
|
21,309
|
|
|
19,874
|
|
||
|
|
|
|
||||
Funded status at end of year
|
$
|
(294
|
)
|
|
$
|
(872
|
)
|
|
|
|
|
||||
Amounts recognized in AOCI:
|
|
|
|
|
|
||
Net actuarial losses
|
$
|
(6,625
|
)
|
|
$
|
(8,137
|
)
|
|
|
|
|
||||
Benefit obligation actuarial assumptions:
|
|
|
|
|
|
||
Weighted average discount rate
|
3.1
|
%
|
|
4.2
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|||
Interest cost
|
$
|
828
|
|
|
$
|
796
|
|
|
$
|
926
|
|
Expected return on plan assets
|
(996
|
)
|
|
(1,206
|
)
|
|
(1,036
|
)
|
|||
Amortization of net actuarial losses
|
1,101
|
|
|
979
|
|
|
1,191
|
|
|||
Net periodic benefit cost
|
$
|
933
|
|
|
$
|
569
|
|
|
$
|
1,081
|
|
|
|
|
|
|
|
||||||
Net periodic cost actuarial assumptions:
|
|
|
|
|
|
|
|
|
|||
Weighted average discount rate
|
4.2
|
%
|
|
3.6
|
%
|
|
4.1
|
%
|
|||
Expected long-term rate of return on plan assets
|
5.3
|
%
|
|
5.5
|
%
|
|
5.5
|
%
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||
Equity securities
|
39.1
|
%
|
|
48.4
|
%
|
Debt securities
|
57.5
|
|
|
46.9
|
|
Other
|
3.4
|
|
|
4.7
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market accounts
|
$
|
727
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
727
|
|
Mutual funds
|
13,434
|
|
|
—
|
|
|
—
|
|
|
13,434
|
|
||||
Government obligations
|
—
|
|
|
2,587
|
|
|
—
|
|
|
2,587
|
|
||||
Common stocks
|
2,475
|
|
|
—
|
|
|
—
|
|
|
2,475
|
|
||||
Preferred stocks
|
173
|
|
|
—
|
|
|
—
|
|
|
173
|
|
||||
Corporate bonds and debentures
|
—
|
|
|
1,913
|
|
|
—
|
|
|
1,913
|
|
||||
Total
|
$
|
16,809
|
|
|
$
|
4,500
|
|
|
$
|
—
|
|
|
$
|
21,309
|
|
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market accounts
|
$
|
931
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
931
|
|
Mutual funds
|
10,537
|
|
|
—
|
|
|
—
|
|
|
10,537
|
|
||||
Government obligations
|
—
|
|
|
2,192
|
|
|
—
|
|
|
2,192
|
|
||||
Common stocks
|
4,122
|
|
|
—
|
|
|
—
|
|
|
4,122
|
|
||||
Preferred stocks
|
146
|
|
|
—
|
|
|
—
|
|
|
146
|
|
||||
Corporate bonds and debentures
|
—
|
|
|
1,946
|
|
|
—
|
|
|
1,946
|
|
||||
Total
|
$
|
15,736
|
|
|
$
|
4,138
|
|
|
$
|
—
|
|
|
$
|
19,874
|
|
Year Ending December 31:
|
|
||
2020
|
$
|
1,769
|
|
2021
|
1,718
|
|
|
2022
|
1,652
|
|
|
2023
|
1,606
|
|
|
2024
|
1,541
|
|
|
2025-2029
|
6,617
|
|
|
Total
|
$
|
14,903
|
|
|
Year Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Change in benefit obligation
|
|
|
|
|
|
||
Benefit obligation at beginning of year
|
$
|
10,355
|
|
|
$
|
11,219
|
|
Interest cost
|
430
|
|
|
389
|
|
||
Actuarial (gains) losses
|
1,517
|
|
|
(907
|
)
|
||
Benefits paid
|
(331
|
)
|
|
(346
|
)
|
||
Benefit obligation at end of year
|
11,971
|
|
|
10,355
|
|
||
|
|
|
|
||||
Change in plan assets
|
|
|
|
|
|
||
Fair value of plan assets at beginning of year
|
—
|
|
|
—
|
|
||
Employer contributions
|
331
|
|
|
346
|
|
||
Benefits paid
|
(331
|
)
|
|
(346
|
)
|
||
Fair value of plan assets at end of year
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
Funded status at end of year
|
$
|
(11,971
|
)
|
|
$
|
(10,355
|
)
|
|
|
|
|
||||
Amounts recognized in AOCI
|
|
|
|
|
|||
Net transition obligation
|
$
|
(64
|
)
|
|
$
|
(82
|
)
|
Prior service cost
|
(14
|
)
|
|
(31
|
)
|
||
Net actuarial losses
|
(2,583
|
)
|
|
(1,082
|
)
|
||
Total amounts recognized in AOCI
|
$
|
(2,661
|
)
|
|
$
|
(1,195
|
)
|
|
|
|
|
||||
Benefit obligation actuarial assumptions
|
|
|
|
|
|
||
Weighted average discount rate
|
3.0
|
%
|
|
4.2
|
%
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Components of net periodic benefit cost
|
|
|
|
|
|
|
|
|
|||
Interest cost
|
$
|
430
|
|
|
$
|
389
|
|
|
$
|
429
|
|
Amortization of net actuarial (gains) losses
|
16
|
|
|
174
|
|
|
102
|
|
|||
Amortization of net transition obligation
|
18
|
|
|
18
|
|
|
18
|
|
|||
Amortization of prior service cost
|
18
|
|
|
18
|
|
|
18
|
|
|||
Settlement
|
—
|
|
|
—
|
|
|
138
|
|
|||
Net periodic benefit cost
|
$
|
482
|
|
|
$
|
599
|
|
|
$
|
705
|
|
|
|
|
|
|
|
||||||
Net periodic cost actuarial assumptions
|
|
|
|
|
|
|
|
|
|||
Weighted average discount rate
|
4.2
|
%
|
|
3.5
|
%
|
|
4.1
|
%
|
Amortization of net actuarial losses
|
$
|
16
|
|
Amortization of net transition obligation
|
18
|
|
|
Amortization of prior service cost
|
18
|
|
Year Ending December 31:
|
|
||
2020
|
$
|
329
|
|
2021
|
320
|
|
|
2022
|
490
|
|
|
2023
|
661
|
|
|
2024
|
653
|
|
|
2025-2029
|
4,051
|
|
|
Total
|
$
|
6,504
|
|
|
Year Ended December 31,
|
||
(dollars in thousands)
|
2019
|
||
Lease cost:
|
|
||
Operating lease cost
|
$
|
6,514
|
|
Variable lease cost
|
2,637
|
|
|
Less: sublease income
|
(44
|
)
|
|
Total lease cost
|
$
|
9,107
|
|
|
|
||
Other information:
|
|
||
Operating cash flows from operating leases
|
$
|
(6,230
|
)
|
Weighted-average remaining lease term - operating leases
|
13.51 years
|
|
|
Weighted-average discount rate - operating leases
|
3.92
|
%
|
Year Ending December 31,
|
Undiscounted Cash Flows
|
|
Lease Liability Expense
|
|
Lease Liability Reduction
|
||||||
2020
|
$
|
6,216
|
|
|
$
|
1,965
|
|
|
$
|
4,251
|
|
2021
|
5,907
|
|
|
1,808
|
|
|
4,099
|
|
|||
2022
|
5,472
|
|
|
1,659
|
|
|
3,813
|
|
|||
2023
|
5,175
|
|
|
1,519
|
|
|
3,656
|
|
|||
2024
|
4,947
|
|
|
1,385
|
|
|
3,562
|
|
|||
Thereafter
|
40,920
|
|
|
7,669
|
|
|
33,251
|
|
|||
Total
|
$
|
68,637
|
|
|
$
|
16,005
|
|
|
$
|
52,632
|
|
|
Year Ended December 31,
|
||
(dollars in thousands)
|
2019
|
||
Total rental income recognized
|
$
|
2,098
|
|
Year Ending December 31,
|
|
||
2020
|
$
|
2,133
|
|
2021
|
2,137
|
|
|
2022
|
1,614
|
|
|
2023
|
641
|
|
|
2024
|
165
|
|
|
Thereafter
|
262
|
|
|
Total
|
$
|
6,952
|
|
|
Year Ended December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Rent expense charged to net occupancy
|
$
|
8,578
|
|
|
$
|
8,318
|
|
Less: sublease income
|
(41
|
)
|
|
(43
|
)
|
||
Net rent expense charged to net occupancy
|
8,537
|
|
|
8,275
|
|
||
Add: rent expense charged to equipment expense
|
12
|
|
|
15
|
|
||
Total net rent expense
|
$
|
8,549
|
|
|
$
|
8,290
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Current expense:
|
|
|
|
|
|
||||||
Federal
|
$
|
23,359
|
|
|
$
|
10,812
|
|
|
$
|
2,471
|
|
State
|
211
|
|
|
72
|
|
|
(81
|
)
|
|||
Total current
|
23,570
|
|
|
10,884
|
|
|
2,390
|
|
|||
Deferred expense:
|
|
|
|
|
|
||||||
Federal
|
(8,970
|
)
|
|
2,137
|
|
|
27,263
|
|
|||
State
|
5,005
|
|
|
5,737
|
|
|
4,943
|
|
|||
Total deferred
|
(3,965
|
)
|
|
7,874
|
|
|
32,206
|
|
|||
Provision for income taxes
|
$
|
19,605
|
|
|
$
|
18,758
|
|
|
$
|
34,596
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Computed "expected" tax expense (benefit)
|
$
|
16,365
|
|
|
$
|
16,430
|
|
|
$
|
26,270
|
|
Increase (decrease) in taxes resulting from:
|
|
|
|
|
|
|
|
||||
Tax-exempt interest income
|
(675
|
)
|
|
(808
|
)
|
|
(1,387
|
)
|
|||
Other tax-exempt income
|
(652
|
)
|
|
(445
|
)
|
|
(1,186
|
)
|
|||
Low-income housing and energy tax credits
|
(182
|
)
|
|
35
|
|
|
(594
|
)
|
|||
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance
|
4,345
|
|
|
4,756
|
|
|
3,348
|
|
|||
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense
|
(41
|
)
|
|
140
|
|
|
570
|
|
|||
Impact of Tax Reform on net deferred tax assets
|
—
|
|
|
(1,542
|
)
|
|
7,440
|
|
|||
Other, net
|
445
|
|
|
192
|
|
|
135
|
|
|||
Total
|
$
|
19,605
|
|
|
$
|
18,758
|
|
|
$
|
34,596
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Deferred tax assets
|
|
|
|
|
|
||
Lease liability
|
$
|
14,095
|
|
|
$
|
—
|
|
Allowance for loan and lease losses
|
10,136
|
|
|
10,112
|
|
||
Accrued expenses
|
1,795
|
|
|
1,517
|
|
||
Employee retirement benefits
|
2,847
|
|
|
2,595
|
|
||
Federal and state tax credit carryforwards
|
1,821
|
|
|
7,728
|
|
||
State net operating loss carryforwards
|
3,181
|
|
|
3,291
|
|
||
Restricted stock and non-qualified stock options
|
954
|
|
|
1,001
|
|
||
Premises and equipment
|
3,365
|
|
|
3,157
|
|
||
Other
|
2,488
|
|
|
3,485
|
|
||
Total deferred tax assets
|
40,682
|
|
|
32,886
|
|
||
|
|
|
|
||||
Deferred tax liabilities
|
|
|
|
|
|||
Right-of-use lease asset
|
14,019
|
|
|
—
|
|
||
Intangible assets
|
3,941
|
|
|
4,189
|
|
||
Other
|
2,761
|
|
|
3,698
|
|
||
Total deferred tax liabilities
|
20,721
|
|
|
7,887
|
|
||
|
|
|
|
||||
Less: Deferred tax valuation allowance
|
3,420
|
|
|
3,461
|
|
||
|
|
|
|
||||
Net deferred tax assets
|
$
|
16,541
|
|
|
$
|
21,538
|
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
|
(Dollars in thousands)
|
||||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|||
Net unrealized gains on investment securities:
|
|
|
|
|
|
|
|
|
|||
Net unrealized gains arising during the period
|
$
|
37,696
|
|
|
$
|
10,102
|
|
|
$
|
27,594
|
|
Less: Reclassification adjustment for losses realized in net income
|
(36
|
)
|
|
(10
|
)
|
|
(26
|
)
|
|||
Net unrealized gains on investment securities
|
37,660
|
|
|
10,092
|
|
|
27,568
|
|
|||
|
|
|
|
|
|
||||||
Defined benefit plans:
|
|
|
|
|
|
|
|
|
|||
Net actuarial losses arising during the period
|
(1,106
|
)
|
|
(296
|
)
|
|
(810
|
)
|
|||
Amortization of net actuarial losses
|
1,117
|
|
|
299
|
|
|
818
|
|
|||
Amortization of net transition obligation
|
18
|
|
|
5
|
|
|
13
|
|
|||
Amortization of prior service cost
|
18
|
|
|
5
|
|
|
13
|
|
|||
Defined benefit plans, net
|
47
|
|
|
13
|
|
|
34
|
|
|||
|
|
|
|
|
|
||||||
Other comprehensive income
|
$
|
37,707
|
|
|
$
|
10,105
|
|
|
$
|
27,602
|
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
|
(Dollars in thousands)
|
||||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|||
Net unrealized losses on investment securities:
|
|
|
|
|
|
|
|
|
|||
Net unrealized losses arising during the period
|
$
|
(19,063
|
)
|
|
$
|
(5,145
|
)
|
|
$
|
(13,918
|
)
|
Less: Reclassification adjustment for losses realized in net income
|
(279
|
)
|
|
(75
|
)
|
|
(204
|
)
|
|||
Net unrealized losses on investment securities
|
(19,342
|
)
|
|
(5,220
|
)
|
|
(14,122
|
)
|
|||
|
|
|
|
|
|
||||||
Defined benefit plans:
|
|
|
|
|
|
|
|
|
|||
Net actuarial gains arising during the period
|
264
|
|
|
71
|
|
|
193
|
|
|||
Amortization of net actuarial losses
|
1,153
|
|
|
329
|
|
|
824
|
|
|||
Amortization of net transition obligation
|
18
|
|
|
5
|
|
|
13
|
|
|||
Amortization of prior service cost
|
18
|
|
|
5
|
|
|
13
|
|
|||
Defined benefit plans, net
|
1,453
|
|
|
410
|
|
|
1,043
|
|
|||
|
|
|
|
|
|
||||||
Other comprehensive loss
|
$
|
(17,889
|
)
|
|
$
|
(4,810
|
)
|
|
$
|
(13,079
|
)
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
|
(Dollars in thousands)
|
||||||||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|||
Net unrealized gains on investment securities:
|
|
|
|
|
|
|
|
|
|||
Net unrealized losses arising during the period
|
$
|
(838
|
)
|
|
$
|
(333
|
)
|
|
$
|
(505
|
)
|
Less: Reclassification adjustment for gains realized in net income
|
1,410
|
|
|
561
|
|
|
849
|
|
|||
Net unrealized gains on investment securities
|
572
|
|
|
228
|
|
|
344
|
|
|||
|
|
|
|
|
|
||||||
Defined benefit plans:
|
|
|
|
|
|
|
|
|
|||
Net actuarial losses arising during the period
|
(1,318
|
)
|
|
(518
|
)
|
|
(800
|
)
|
|||
Amortization of net actuarial losses
|
1,293
|
|
|
460
|
|
|
833
|
|
|||
Amortization of net transition obligation
|
18
|
|
|
7
|
|
|
11
|
|
|||
Amortization of prior service cost
|
18
|
|
|
7
|
|
|
11
|
|
|||
Settlement
|
138
|
|
|
55
|
|
|
83
|
|
|||
Defined benefit plans, net
|
149
|
|
|
11
|
|
|
138
|
|
|||
|
|
|
|
|
|
||||||
Other comprehensive income
|
$
|
721
|
|
|
$
|
239
|
|
|
$
|
482
|
|
|
Investment
Securities |
|
Defined
Benefit Plans |
|
Accumulated
Other Comprehensive Income (Loss) |
||||||
|
(Dollars in thousands)
|
||||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of period
|
$
|
(9,643
|
)
|
|
$
|
(6,450
|
)
|
|
$
|
(16,093
|
)
|
Impact of adoption of new accounting standards
|
(3,100
|
)
|
|
—
|
|
|
(3,100
|
)
|
|||
Adjusted balance at beginning of period
|
(12,743
|
)
|
|
(6,450
|
)
|
|
(19,193
|
)
|
|||
|
|
|
|
|
|
||||||
Other comprehensive income (loss) before reclassifications
|
27,594
|
|
|
(810
|
)
|
|
26,784
|
|
|||
Amounts reclassified from AOCI
|
(26
|
)
|
|
844
|
|
|
818
|
|
|||
Net other comprehensive income (loss)
|
27,568
|
|
|
34
|
|
|
27,602
|
|
|||
Balance at end of period
|
$
|
14,825
|
|
|
$
|
(6,416
|
)
|
|
$
|
8,409
|
|
|
Investment
Securities |
|
Defined
Benefit Plans |
|
Accumulated
Other Comprehensive Income (Loss) |
||||||
|
(Dollars in thousands)
|
||||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of period
|
$
|
5,073
|
|
|
$
|
(6,112
|
)
|
|
$
|
(1,039
|
)
|
Impact of adoption of new accounting standards
|
(139
|
)
|
|
—
|
|
|
(139
|
)
|
|||
Adjusted balance at beginning of period
|
4,934
|
|
|
(6,112
|
)
|
|
(1,178
|
)
|
|||
|
|
|
|
|
|
||||||
Impact of adoption of new accounting standards
|
(455
|
)
|
|
(1,381
|
)
|
|
(1,836
|
)
|
|||
|
|
|
|
|
|
||||||
Other comprehensive income (loss) before reclassifications
|
(13,918
|
)
|
|
193
|
|
|
(13,725
|
)
|
|||
Amounts reclassified from AOCI
|
(204
|
)
|
|
850
|
|
|
646
|
|
|||
Net other comprehensive income (loss)
|
(14,122
|
)
|
|
1,043
|
|
|
(13,079
|
)
|
|||
Balance at end of period
|
$
|
(9,643
|
)
|
|
$
|
(6,450
|
)
|
|
$
|
(16,093
|
)
|
|
Investment
Securities |
|
Defined
Benefit Plans |
|
Accumulated
Other Comprehensive Income (Loss) |
||||||
|
(Dollars in thousands)
|
||||||||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of period
|
$
|
4,729
|
|
|
$
|
(6,250
|
)
|
|
$
|
(1,521
|
)
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss) before reclassifications
|
(505
|
)
|
|
(800
|
)
|
|
(1,305
|
)
|
|||
Amounts reclassified from AOCI
|
849
|
|
|
938
|
|
|
1,787
|
|
|||
Total other comprehensive income (loss)
|
344
|
|
|
138
|
|
|
482
|
|
|||
Balance at end of period
|
$
|
5,073
|
|
|
$
|
(6,112
|
)
|
|
$
|
(1,039
|
)
|
|
Amount Reclassified from AOCI
|
|
Affected Line Item in the
|
||||||||||
|
Year ended December 31,
|
|
Statement Where Net
|
||||||||||
Details about AOCI Components
|
2019
|
|
2018
|
|
2017
|
|
Income is Presented
|
||||||
|
(Dollars in thousands)
|
|
|
||||||||||
Sale of available-for-sale investment securities:
|
|
|
|
|
|
|
|
||||||
Realized gains (losses) on available-for-sale investment securities
|
$
|
36
|
|
|
$
|
279
|
|
|
$
|
(1,410
|
)
|
|
Net gains (losses) on sales of investment securities
|
Tax effect
|
(10
|
)
|
|
(75
|
)
|
|
561
|
|
|
Income tax benefit (expense)
|
|||
Net of tax
|
$
|
26
|
|
|
$
|
204
|
|
|
$
|
(849
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||
Defined benefit plan items:
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of net actuarial losses
|
$
|
(1,117
|
)
|
|
$
|
(1,153
|
)
|
|
$
|
(1,293
|
)
|
|
Salaries and employee benefits (1)
|
Amortization of net transition obligation
|
(18
|
)
|
|
(18
|
)
|
|
(18
|
)
|
|
Salaries and employee benefits (1)
|
|||
Amortization of prior service cost
|
(18
|
)
|
|
(18
|
)
|
|
(18
|
)
|
|
Salaries and employee benefits (1)
|
|||
Settlement
|
—
|
|
|
—
|
|
|
(138
|
)
|
|
Salaries and employee benefits (1)
|
|||
Total before tax
|
(1,153
|
)
|
|
(1,189
|
)
|
|
(1,467
|
)
|
|
|
|||
Tax effect
|
309
|
|
|
339
|
|
|
529
|
|
|
Income tax expense
|
|||
Net of tax
|
$
|
(844
|
)
|
|
$
|
(850
|
)
|
|
$
|
(938
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||
Total reclassifications, net of tax
|
$
|
(818
|
)
|
|
$
|
(646
|
)
|
|
$
|
(1,787
|
)
|
|
|
|
|
(1)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17 - Pension Plans for additional details).
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(In thousands, except per share data)
|
||||||||||
Net income
|
$
|
58,322
|
|
|
$
|
59,486
|
|
|
$
|
41,204
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding for basic earnings per share
|
28,495,699
|
|
|
29,409,683
|
|
|
30,400,511
|
|
|||
Add: Dilutive effect of employee stock options and awards
|
181,401
|
|
|
200,224
|
|
|
237,629
|
|
|||
Weighted average shares outstanding for diluted earnings per share
|
28,677,100
|
|
|
29,609,907
|
|
|
30,638,140
|
|
|||
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
2.05
|
|
|
$
|
2.02
|
|
|
$
|
1.36
|
|
Diluted earnings per share
|
$
|
2.03
|
|
|
$
|
2.01
|
|
|
$
|
1.34
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Notional amount of:
|
|
|
|
||||
Financial instruments whose contract amounts represent credit risk:
|
|
|
|
|
|
||
Commitments to extend credit
|
$
|
1,089,135
|
|
|
$
|
1,030,322
|
|
Standby letters of credit and financial guarantees written
|
10,526
|
|
|
13,377
|
|
||
|
|
|
|
||||
Notional amount of:
|
|
|
|
||||
Financial instruments whose contract amounts exceed the amount of credit risk:
|
|
|
|
|
|||
Interest rate options
|
625
|
|
|
2,158
|
|
||
Forward interest rate contracts
|
8,968
|
|
|
8,530
|
|
|
|
|
|
|
Fair Value Measurement Using
|
||||||||||||||
|
Carrying
Amount |
|
Estimated
Fair Value |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from financial institutions
|
$
|
78,418
|
|
|
$
|
78,418
|
|
|
$
|
78,418
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits in other financial institutions
|
24,554
|
|
|
24,554
|
|
|
24,554
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities
|
1,128,110
|
|
|
1,128,110
|
|
|
1,127
|
|
|
1,115,728
|
|
|
11,255
|
|
|||||
Loans held for sale
|
9,083
|
|
|
9,083
|
|
|
—
|
|
|
9,083
|
|
|
—
|
|
|||||
Loans and leases, net of Allowance
|
4,401,569
|
|
|
4,392,477
|
|
|
—
|
|
|
—
|
|
|
4,392,477
|
|
|||||
FHLB stock
|
14,983
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
16,500
|
|
|
16,500
|
|
|
16,500
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
1,450,532
|
|
|
1,450,532
|
|
|
1,450,532
|
|
|
—
|
|
|
—
|
|
|||||
Interest-bearing demand and savings deposits
|
2,643,038
|
|
|
2,643,038
|
|
|
2,643,038
|
|
|
—
|
|
|
—
|
|
|||||
Time deposits
|
1,026,453
|
|
|
1,023,362
|
|
|
—
|
|
|
—
|
|
|
1,023,362
|
|
|||||
FHLB advances and other short-term borrowings
|
150,000
|
|
|
150,000
|
|
|
—
|
|
|
150,000
|
|
|
—
|
|
|||||
Long-term debt
|
101,547
|
|
|
97,827
|
|
|
—
|
|
|
97,827
|
|
|
—
|
|
|||||
Accrued interest payable (included in other liabilities)
|
4,288
|
|
|
4,288
|
|
|
4,288
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
Fair Value Measurement Using
|
||||||||||||||||
|
Notional
Amount |
|
Carrying
Amount |
|
Estimated
Fair Value |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||||
|
|
|
(Dollars in thousands)
|
||||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Off-balance sheet financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commitments to extend credit
|
$
|
1,089,135
|
|
|
$
|
1,230
|
|
|
$
|
1,230
|
|
|
$
|
—
|
|
|
$
|
1,230
|
|
|
$
|
—
|
|
Standby letters of credit and financial guarantees written
|
10,526
|
|
|
158
|
|
|
158
|
|
|
—
|
|
|
158
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments
|
625
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||||
Forward sale commitments
|
8,968
|
|
|
(28
|
)
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
|
|
|
|
Fair Value Measurement Using
|
||||||||||||||
|
Carrying
Amount |
|
Estimated
Fair Value |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from financial institutions
|
$
|
80,569
|
|
|
$
|
80,569
|
|
|
$
|
80,569
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest-bearing deposits in other financial institutions
|
21,617
|
|
|
21,617
|
|
|
21,617
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities
|
1,354,812
|
|
|
1,350,576
|
|
|
826
|
|
|
1,338,581
|
|
|
11,169
|
|
|||||
Loans held for sale
|
6,647
|
|
|
6,647
|
|
|
—
|
|
|
6,647
|
|
|
—
|
|
|||||
Loans and leases, net of Allowance
|
4,030,450
|
|
|
3,938,380
|
|
|
—
|
|
|
—
|
|
|
3,938,380
|
|
|||||
FHLB stock
|
16,645
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
17,000
|
|
|
17,000
|
|
|
17,000
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest-bearing deposits
|
1,436,967
|
|
|
1,436,967
|
|
|
1,436,967
|
|
|
—
|
|
|
—
|
|
|||||
Interest-bearing demand and savings deposits
|
2,402,268
|
|
|
2,402,268
|
|
|
2,402,268
|
|
|
—
|
|
|
—
|
|
|||||
Time deposits
|
1,107,255
|
|
|
1,099,560
|
|
|
—
|
|
|
—
|
|
|
1,099,560
|
|
|||||
FHLB advances and other short-term borrowings
|
197,000
|
|
|
197,000
|
|
|
—
|
|
|
197,000
|
|
|
—
|
|
|||||
Long-term debt
|
122,166
|
|
|
118,057
|
|
|
—
|
|
|
118,057
|
|
|
—
|
|
|||||
Accrued interest payable (included in other liabilities)
|
5,051
|
|
|
5,051
|
|
|
5,051
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
Fair Value Measurement Using
|
||||||||||||||||
|
Notional
Amount |
|
Carrying
Amount |
|
Estimated
Fair Value |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||||||
|
|
|
(Dollars in thousands)
|
||||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Off-balance sheet financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commitments to extend credit
|
$
|
1,030,322
|
|
|
$
|
1,205
|
|
|
$
|
1,205
|
|
|
$
|
—
|
|
|
$
|
1,205
|
|
|
$
|
—
|
|
Standby letters of credit and financial guarantees written
|
13,377
|
|
|
201
|
|
|
201
|
|
|
—
|
|
|
201
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate lock commitments
|
2,158
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||
Forward sale commitments
|
8,530
|
|
|
(95
|
)
|
|
(95
|
)
|
|
—
|
|
|
(95
|
)
|
|
—
|
|
•
|
Level 1 — Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.
|
•
|
Level 2 — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
|
•
|
Level 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation.
|
|
|
|
Fair Value at Reporting Date Using
|
||||||||||||
|
Fair
Value |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
|
(Dollars in thousands)
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
States and political subdivisions
|
$
|
122,018
|
|
|
$
|
—
|
|
|
$
|
110,763
|
|
|
$
|
11,255
|
|
Corporate securities
|
30,529
|
|
|
—
|
|
|
30,529
|
|
|
—
|
|
||||
U.S. Treasury obligations and direct obligations of U.S Government agencies
|
40,381
|
|
|
—
|
|
|
40,381
|
|
|
—
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
Residential - U.S. Government-sponsored entities ("GSEs")
|
677,822
|
|
|
—
|
|
|
677,822
|
|
|
—
|
|
||||
Residential - Non-government sponsored entities ("Non-GSEs")
|
37,191
|
|
|
—
|
|
|
37,191
|
|
|
—
|
|
||||
Commercial - U.S. GSEs and agencies
|
81,225
|
|
|
—
|
|
|
81,225
|
|
|
—
|
|
||||
Commercial - Non-GSEs
|
137,817
|
|
|
—
|
|
|
137,817
|
|
|
—
|
|
||||
Equity securities
|
1,127
|
|
|
1,127
|
|
|
—
|
|
|
—
|
|
||||
Derivatives: Interest rate lock and forward sale commitments
|
(20
|
)
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
||||
Total
|
$
|
1,128,090
|
|
|
$
|
1,127
|
|
|
$
|
1,115,708
|
|
|
$
|
11,255
|
|
|
|
|
Fair Value at Reporting Date Using
|
||||||||||||
|
Fair
Value |
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
|
(Dollars in thousands)
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Available-for-sale investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
States and political subdivisions
|
$
|
173,674
|
|
|
$
|
—
|
|
|
$
|
162,505
|
|
|
$
|
11,169
|
|
Corporate securities
|
54,849
|
|
|
—
|
|
|
54,849
|
|
|
—
|
|
||||
U.S. Treasury obligations and direct obligations of U.S Government agencies
|
32,574
|
|
|
—
|
|
|
32,574
|
|
|
—
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Residential - U.S. Government-sponsored entities ("GSEs")
|
717,052
|
|
|
—
|
|
|
717,052
|
|
|
—
|
|
||||
Residential - Non-government sponsored entities ("Non-GSEs")
|
41,118
|
|
|
—
|
|
|
41,118
|
|
|
—
|
|
||||
Commercial - U.S. GSEs and agencies
|
51,483
|
|
|
—
|
|
|
51,483
|
|
|
—
|
|
||||
Commercial - Non-GSEs
|
134,728
|
|
|
—
|
|
|
134,728
|
|
|
—
|
|
||||
Equity securities
|
826
|
|
|
826
|
|
|
—
|
|
|
—
|
|
||||
Derivatives: Interest rate lock and forward sale commitments
|
(84
|
)
|
|
—
|
|
|
(84
|
)
|
|
—
|
|
||||
Total
|
$
|
1,206,220
|
|
|
$
|
826
|
|
|
$
|
1,194,225
|
|
|
$
|
11,169
|
|
|
Available-for-Sale
Debt Securities - States and Political Subdivisions |
||
|
(Dollars in thousands)
|
||
Balance as of December 31, 2017
|
$
|
11,794
|
|
Principal payments received
|
(373
|
)
|
|
Purchases
|
—
|
|
|
Unrealized net loss included in other comprehensive loss
|
(252
|
)
|
|
Balance as of December 31, 2018
|
$
|
11,169
|
|
Principal payments received
|
(400
|
)
|
|
Purchases
|
—
|
|
|
Unrealized net gain included in other comprehensive loss
|
486
|
|
|
Balance as of December 31, 2019
|
$
|
11,255
|
|
|
|
|
Fair Value Measurements Using
|
|
|
||||||||||||||
|
Fair Value
|
|
Quoted Prices
in Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
Losses |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other real estate (1)
|
$
|
164
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other real estate (1)
|
$
|
414
|
|
|
$
|
—
|
|
|
$
|
414
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
(1)
|
Represents other real estate that is carried at fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.
|
|
Banking
Operations |
|
Treasury
|
|
All Others
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income
|
$
|
171,716
|
|
|
$
|
12,358
|
|
|
$
|
—
|
|
|
$
|
184,074
|
|
Intersegment net interest income (expense)
|
22,907
|
|
|
(11,448
|
)
|
|
(11,459
|
)
|
|
—
|
|
||||
Credit (provision) for loan and lease losses
|
(6,317
|
)
|
|
—
|
|
|
—
|
|
|
(6,317
|
)
|
||||
Other Operating income:
|
|
|
|
|
|
|
|
||||||||
Mortgage banking income
|
4,191
|
|
|
—
|
|
|
1,792
|
|
|
5,983
|
|
||||
Service charges on deposit accounts
|
8,406
|
|
|
—
|
|
|
—
|
|
|
8,406
|
|
||||
Other service charges and fees
|
5,685
|
|
|
—
|
|
|
8,673
|
|
|
14,358
|
|
||||
Income from fiduciary activities
|
4,395
|
|
|
—
|
|
|
—
|
|
|
4,395
|
|
||||
Equity in earnings of unconsolidated subsidiaries
|
257
|
|
|
—
|
|
|
—
|
|
|
257
|
|
||||
Fees on foreign exchange
|
91
|
|
|
664
|
|
|
—
|
|
|
755
|
|
||||
Investments securities gains (losses)
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||
Income from bank-owned life insurance
|
—
|
|
|
3,105
|
|
|
—
|
|
|
3,105
|
|
||||
Loan placement fees
|
702
|
|
|
—
|
|
|
—
|
|
|
702
|
|
||||
Net gain (loss) sale of foreclosed assets
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
(145
|
)
|
||||
Other
|
632
|
|
|
2,585
|
|
|
732
|
|
|
3,949
|
|
||||
Total other operating income
|
24,359
|
|
|
6,390
|
|
|
11,052
|
|
|
41,801
|
|
||||
Total other operating expense
|
(64,940
|
)
|
|
(1,487
|
)
|
|
(75,204
|
)
|
|
(141,631
|
)
|
||||
Administrative and overhead expense allocation
|
(69,039
|
)
|
|
(841
|
)
|
|
69,880
|
|
|
—
|
|
||||
Income before taxes
|
78,686
|
|
|
4,972
|
|
|
(5,731
|
)
|
|
77,927
|
|
||||
Income tax (expense) benefit
|
(19,796
|
)
|
|
(1,251
|
)
|
|
1,442
|
|
|
(19,605
|
)
|
||||
Net income (loss)
|
$
|
58,890
|
|
|
$
|
3,721
|
|
|
$
|
(4,289
|
)
|
|
$
|
58,322
|
|
|
Banking
Operations |
|
Treasury
|
|
All Others
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Balance as of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment securities
|
$
|
—
|
|
|
$
|
1,128,110
|
|
|
$
|
—
|
|
|
$
|
1,128,110
|
|
Loans and leases (including loans held for sale)
|
4,458,623
|
|
|
—
|
|
|
—
|
|
|
4,458,623
|
|
||||
Other
|
24,813
|
|
|
251,151
|
|
|
149,975
|
|
|
425,939
|
|
||||
Total assets
|
$
|
4,483,436
|
|
|
$
|
1,379,261
|
|
|
$
|
149,975
|
|
|
$
|
6,012,672
|
|
|
Banking
Operations |
|
Treasury
|
|
All Others
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Year ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income
|
$
|
153,314
|
|
|
$
|
19,684
|
|
|
$
|
—
|
|
|
$
|
172,998
|
|
Intersegment net interest income (expense)
|
28,691
|
|
|
(18,284
|
)
|
|
(10,407
|
)
|
|
—
|
|
||||
Credit (provision) for loan and lease losses
|
1,124
|
|
|
—
|
|
|
—
|
|
|
1,124
|
|
||||
Other operating income:
|
|
|
|
|
|
|
|
||||||||
Mortgage banking income
|
4,015
|
|
|
—
|
|
|
3,300
|
|
|
7,315
|
|
||||
Service charges on deposit accounts
|
8,406
|
|
|
—
|
|
|
—
|
|
|
8,406
|
|
||||
Other service charges and fees
|
5,154
|
|
|
23
|
|
|
7,946
|
|
|
13,123
|
|
||||
Income from fiduciary activities
|
4,245
|
|
|
—
|
|
|
—
|
|
|
4,245
|
|
||||
Equity in earnings of unconsolidated subsidiaries
|
233
|
|
|
—
|
|
|
—
|
|
|
233
|
|
||||
Fees on foreign exchange
|
98
|
|
|
807
|
|
|
—
|
|
|
905
|
|
||||
Investments securities gains (losses)
|
—
|
|
|
(279
|
)
|
|
—
|
|
|
(279
|
)
|
||||
Income from bank-owned life insurance
|
—
|
|
|
2,117
|
|
|
—
|
|
|
2,117
|
|
||||
Loan placement fees
|
747
|
|
|
—
|
|
|
—
|
|
|
747
|
|
||||
Other
|
981
|
|
|
65
|
|
|
946
|
|
|
1,992
|
|
||||
Total other operating income
|
23,879
|
|
|
2,733
|
|
|
12,192
|
|
|
38,804
|
|
||||
Total other operating expense
|
(63,649
|
)
|
|
(1,472
|
)
|
|
(69,561
|
)
|
|
(134,682
|
)
|
||||
Administrative and overhead expense allocation
|
(60,636
|
)
|
|
(874
|
)
|
|
61,510
|
|
|
—
|
|
||||
Income before taxes
|
82,723
|
|
|
1,787
|
|
|
(6,266
|
)
|
|
78,244
|
|
||||
Income tax (expense) benefit
|
(19,832
|
)
|
|
(428
|
)
|
|
1,502
|
|
|
(18,758
|
)
|
||||
Net income (loss)
|
$
|
62,891
|
|
|
$
|
1,359
|
|
|
$
|
(4,764
|
)
|
|
$
|
59,486
|
|
|
Banking
Operations |
|
Treasury
|
|
All Others
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Balance as of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment securities
|
$
|
—
|
|
|
$
|
1,354,812
|
|
|
$
|
—
|
|
|
$
|
1,354,812
|
|
Loans and leases (including loans held for sale)
|
4,085,013
|
|
|
—
|
|
|
—
|
|
|
4,085,013
|
|
||||
Other
|
36,905
|
|
|
256,652
|
|
|
73,644
|
|
|
367,201
|
|
||||
Total assets
|
$
|
4,121,918
|
|
|
$
|
1,611,464
|
|
|
$
|
73,644
|
|
|
$
|
5,807,026
|
|
|
Banking
Operations |
|
Treasury
|
|
All Others
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Year ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income
|
$
|
140,077
|
|
|
$
|
27,626
|
|
|
$
|
—
|
|
|
$
|
167,703
|
|
Intersegment net interest income (expense)
|
32,977
|
|
|
(25,000
|
)
|
|
(7,977
|
)
|
|
—
|
|
||||
Credit (provision) for loan and lease losses
|
2,674
|
|
|
—
|
|
|
—
|
|
|
2,674
|
|
||||
Total other operating income
|
22,511
|
|
|
2,448
|
|
|
11,537
|
|
|
36,496
|
|
||||
Total other operating expense
|
(60,939
|
)
|
|
(1,433
|
)
|
|
(68,701
|
)
|
|
(131,073
|
)
|
||||
Administrative and overhead expense allocation
|
(61,082
|
)
|
|
(972
|
)
|
|
62,054
|
|
|
—
|
|
||||
Income before taxes
|
76,218
|
|
|
2,669
|
|
|
(3,087
|
)
|
|
75,800
|
|
||||
Income taxes
|
(34,376
|
)
|
|
(1,204
|
)
|
|
984
|
|
|
(34,596
|
)
|
||||
Net income (loss)
|
$
|
41,842
|
|
|
$
|
1,465
|
|
|
$
|
(2,103
|
)
|
|
$
|
41,204
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Dollars in thousands)
|
||||||
Assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
10,634
|
|
|
$
|
16,743
|
|
Equity investment securities, at fair value
|
1,127
|
|
|
826
|
|
||
Investment in subsidiary bank
|
564,460
|
|
|
519,978
|
|
||
Other assets
|
8,354
|
|
|
30,312
|
|
||
Total assets
|
$
|
584,575
|
|
|
$
|
567,859
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
|
||
Long-term debt
|
$
|
51,547
|
|
|
$
|
72,166
|
|
Other liabilities
|
4,508
|
|
|
3,968
|
|
||
Total liabilities
|
56,055
|
|
|
76,134
|
|
||
|
|
|
|
||||
Total shareholders’ equity
|
528,520
|
|
|
491,725
|
|
||
Total equity
|
528,520
|
|
|
491,725
|
|
||
|
|
|
|
||||
Total liabilities and equity
|
$
|
584,575
|
|
|
$
|
567,859
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Income:
|
|
|
|
|
|
|
|
|
|||
Dividends from subsidiary bank
|
$
|
42,008
|
|
|
$
|
103,001
|
|
|
$
|
43,000
|
|
Interest income from subsidiary bank
|
5
|
|
|
5
|
|
|
6
|
|
|||
Other income
|
92
|
|
|
160
|
|
|
150
|
|
|||
Total income
|
42,105
|
|
|
103,166
|
|
|
43,156
|
|
|||
|
|
|
|
|
|
||||||
Expense:
|
|
|
|
|
|
|
|
|
|||
Interest expense on long-term debt
|
2,453
|
|
|
4,338
|
|
|
3,479
|
|
|||
Other expenses
|
2,599
|
|
|
1,617
|
|
|
2,002
|
|
|||
Total expenses
|
5,052
|
|
|
5,955
|
|
|
5,481
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes and equity in undistributed income of subsidiaries
|
37,053
|
|
|
97,211
|
|
|
37,675
|
|
|||
Income tax expense (benefit)
|
(1,289
|
)
|
|
(1,261
|
)
|
|
(1,781
|
)
|
|||
Income before equity in undistributed income of subsidiaries
|
38,342
|
|
|
98,472
|
|
|
39,456
|
|
|||
|
|
|
|
|
|
||||||
Equity in undistributed income (loss) of subsidiary bank
|
19,980
|
|
|
(38,986
|
)
|
|
1,748
|
|
|||
Net income
|
$
|
58,322
|
|
|
$
|
59,486
|
|
|
$
|
41,204
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Dollars in thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
58,322
|
|
|
$
|
59,486
|
|
|
$
|
41,204
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Deferred income tax expense (benefit)
|
3,055
|
|
|
450
|
|
|
(442
|
)
|
|||
Net change in dividends receivable from subsidiary bank
|
21,004
|
|
|
(21,004
|
)
|
|
—
|
|
|||
Equity in undistributed loss (income) of subsidiary bank
|
(19,980
|
)
|
|
38,986
|
|
|
(1,748
|
)
|
|||
Share-based compensation expense
|
2,735
|
|
|
2,778
|
|
|
1,918
|
|
|||
Net change in other assets and liabilities
|
(2,900
|
)
|
|
(920
|
)
|
|
1,357
|
|
|||
Net cash provided by operating activities
|
62,236
|
|
|
79,776
|
|
|
42,289
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|||
Distributions from unconsolidated subsidiaries
|
622
|
|
|
622
|
|
|
—
|
|
|||
Net cash provided by investing activities
|
622
|
|
|
622
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|||
Net proceeds from issuance of common stock and stock option exercises
|
151
|
|
|
—
|
|
|
—
|
|
|||
Repayments of long-term debt
|
(20,619
|
)
|
|
(20,619
|
)
|
|
—
|
|
|||
Repurchases of common stock
|
(22,793
|
)
|
|
(32,824
|
)
|
|
(26,559
|
)
|
|||
Cash dividends paid on common stock
|
(25,706
|
)
|
|
(24,143
|
)
|
|
(21,299
|
)
|
|||
Net cash used in financing activities
|
(68,967
|
)
|
|
(77,586
|
)
|
|
(47,858
|
)
|
|||
|
|
|
|
|
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(6,109
|
)
|
|
2,812
|
|
|
(5,569
|
)
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of year
|
16,743
|
|
|
13,931
|
|
|
19,500
|
|
|||
Cash and cash equivalents at end of year
|
$
|
10,634
|
|
|
$
|
16,743
|
|
|
$
|
13,931
|
|
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
|
Full Year
|
||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total interest income
|
$
|
53,141
|
|
|
$
|
54,105
|
|
|
$
|
53,980
|
|
|
$
|
55,157
|
|
|
$
|
216,383
|
|
Total interest expense
|
8,028
|
|
|
8,727
|
|
|
8,331
|
|
|
7,223
|
|
|
32,309
|
|
|||||
Net interest income
|
45,113
|
|
|
45,378
|
|
|
45,649
|
|
|
47,934
|
|
|
184,074
|
|
|||||
Provision (credit) for loan and lease losses
|
1,283
|
|
|
1,404
|
|
|
1,532
|
|
|
2,098
|
|
|
6,317
|
|
|||||
Net interest income after provision (credit) for loan and lease losses
|
43,830
|
|
|
43,974
|
|
|
44,117
|
|
|
45,836
|
|
|
177,757
|
|
|||||
Investment securities gains (losses)
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
|||||
Income before income taxes
|
21,155
|
|
|
17,961
|
|
|
19,449
|
|
|
19,362
|
|
|
77,927
|
|
|||||
Net income
|
16,037
|
|
|
13,534
|
|
|
14,554
|
|
|
14,197
|
|
|
58,322
|
|
|||||
Basic earnings per share
|
$
|
0.56
|
|
|
$
|
0.47
|
|
|
$
|
0.51
|
|
|
$
|
0.50
|
|
|
$
|
2.05
|
|
Diluted earnings per share
|
0.55
|
|
|
0.47
|
|
|
0.51
|
|
|
0.50
|
|
|
2.03
|
|
|
First
Quarter |
|
Second
Quarter |
|
Third
Quarter |
|
Fourth
Quarter |
|
Full Year
|
||||||||||
|
(Dollars in thousands, except per share data)
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total interest income
|
$
|
47,310
|
|
|
$
|
48,509
|
|
|
$
|
50,136
|
|
|
$
|
52,339
|
|
|
$
|
198,294
|
|
Total interest expense
|
4,988
|
|
|
5,837
|
|
|
6,811
|
|
|
7,660
|
|
|
25,296
|
|
|||||
Net interest income
|
42,322
|
|
|
42,672
|
|
|
43,325
|
|
|
44,679
|
|
|
172,998
|
|
|||||
Provision (credit) for loan and lease losses
|
(211
|
)
|
|
532
|
|
|
(59
|
)
|
|
(1,386
|
)
|
|
(1,124
|
)
|
|||||
Net interest income after provision (credit) for loan and lease losses
|
42,533
|
|
|
42,140
|
|
|
43,384
|
|
|
46,065
|
|
|
174,122
|
|
|||||
Investment securities gains (losses)
|
—
|
|
|
—
|
|
|
—
|
|
|
(279
|
)
|
|
(279
|
)
|
|||||
Income before income taxes
|
18,083
|
|
|
18,159
|
|
|
20,179
|
|
|
21,823
|
|
|
78,244
|
|
|||||
Net income
|
14,277
|
|
|
14,224
|
|
|
15,193
|
|
|
15,792
|
|
|
59,486
|
|
|||||
Basic earnings per share
|
$
|
0.48
|
|
|
$
|
0.48
|
|
|
$
|
0.52
|
|
|
$
|
0.54
|
|
|
$
|
2.02
|
|
Diluted earnings per share
|
0.48
|
|
|
0.48
|
|
|
0.52
|
|
|
0.54
|
|
|
2.01
|
|
Plan Category
|
(a)
Number of securities to be issued upon exercise of outstanding options, warrants and rights |
|
(b)
Weighted- average exercise price of outstanding options, warrants and rights |
|
(c)
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
||||
Equity compensation plans approved by security holders
|
133,813
|
|
|
$
|
14.31
|
|
|
1,304,773
|
|
Equity compensation plans not approved by security holders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
133,813
|
|
|
14.31
|
|
|
1,304,773
|
|
Central Pacific Financial Corp. and Subsidiaries:
|
|
|
|
|
|
|
|
Exhibit
Number |
|
Description
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.10
|
|
|
|
|
|
10.11
|
|
|
|
|
|
10.12
|
|
|
|
|
|
10.13
|
|
|
|
|
|
10.14
|
|
|
|
|
|
10.15
|
|
|
|
|
|
10.16
|
|
|
|
|
|
10.17
|
|
|
|
|
|
10.18
|
|
|
|
|
|
10.19
|
|
|
|
|
|
10.20
|
|
|
|
|
|
10.21
|
|
|
|
|
|
14.1
|
|
|
|
|
|
14.2
|
|
|
|
|
|
21
|
|
|
|
|
|
23.1
|
|
|
|
|
|
23.2
|
|
|
|
|
|
31.1
|
|
|
|
|
|
Exhibit
Number |
|
Description
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.INS
|
|
|
|
|
|
101.SCH
|
|
|
|
|
|
101.CAL
|
|
|
|
|
|
101.DEF
|
|
|
|
|
|
101.LAB
|
|
|
|
|
|
101.PRE
|
|
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and included within the Exhibit 101 attachments)
|
|
|
|
|
|
|
*
|
|
Filed herewith.
|
|
|
|
**
|
|
Furnished herewith.
|
|
|
|
|
|
All of the references to Form 8-K, Form 10-K, Form 10-Q, Form DEF 14A and Form S-1/A identified in the exhibit index have SEC file number 001-31567.
|
|
|
|
|
|
Upon request of the Securities and Exchange Commission, we will furnish any agreements relating to our long-term debt not otherwise contained herein.
|
(1)
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Incorporated herein by reference to Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, filed with the Securities and Exchange Commission on February 27, 2015.
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(2)
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Incorporated herein by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on January 27, 2012.
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(3)
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Denotes management contract or compensation plan or arrangement.
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(4)
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Incorporated herein by reference to Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 1996, filed with the Securities and Exchange Commission on March 28, 1997.
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(5)
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Incorporated herein by reference to Exhibit 10.12 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2000, filed with the Securities and Exchange Commission on March 30, 2001.
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(6)
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Incorporated herein by reference to Exhibits 10.8, 10.9 and 10.20, respectively, to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2004, filed with the Securities and Exchange Commission on March 16, 2005.
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(7)
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Incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on September 26, 2018.
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(8)
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Incorporated herein by reference to Exhibits 10.15, 10.19 and 10.21, respectively, to the Registrant’s Annual Report on Form 10-K/A for the year ended December 31, 2008, filed with the Securities and Exchange Commission on March 2, 2009.
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(9)
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Incorporated herein by reference to Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on January 31, 2006.
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(10)
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Incorporated herein by reference to Exhibits 10.19, 14.1 and 14.2, respectively, to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005, filed with the Securities and Exchange Commission on March 15, 2006.
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(11)
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Incorporated herein by reference to Appendix B to the Registrant’s Definitive Proxy Statement on Form DEF 14A filed with the Securities and Exchange Commission on March 4, 2011.
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(12)
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Incorporated herein by reference to Exhibits 10.1, 10.2 and 10.3, respectively, to the Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on April 30, 2012.
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(13)
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Incorporated herein by reference to Exhibit 10.15 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission on February 27, 2019.
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(14)
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Incorporated herein by reference to Exhibits 10.2, 10.3, 10.4, 10.5 and 10.6, respectively, to the Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 1, 2013.
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Dated:
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February 25, 2020
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CENTRAL PACIFIC FINANCIAL CORP.
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(Registrant)
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/s/ Paul K. Yonamine
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Paul K. Yonamine
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Chairman and Chief Executive Officer
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Signature
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Title
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Date
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/s/ Paul K. Yonamine
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Chairman and Chief Executive Officer
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February 25, 2020
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Paul K. Yonamine
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(Principal Executive Officer)
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/s/ David S. Morimoto
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Executive Vice President and Chief
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February 25, 2020
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David S. Morimoto
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Financial Officer (Principal Financial and Accounting Officer)
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/s/ A. Catherine Ngo
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President, Director
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February 25, 2020
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A. Catherine Ngo
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/s/ John C. Dean
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Director
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February 25, 2020
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John C. Dean
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/s/ Christine H. H. Camp
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Director
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February 25, 2020
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Christine H. H. Camp
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/s/ Earl E. Fry
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Director
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February 25, 2020
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Earl E. Fry
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/s/ Wayne K. Kamitaki
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Director
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February 25, 2020
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Wayne K. Kamitaki
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/s/ Paul J. Kosasa
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Director
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February 25, 2020
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Paul J. Kosasa
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/s/ Duane K. Kurisu
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Director
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February 25, 2020
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Duane K. Kurisu
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/s/ Colbert M. Matsumoto
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Director
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February 25, 2020
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Colbert M. Matsumoto
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/s/ Saedene K. Ota
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Director
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February 25, 2020
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Saedene K. Ota
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/s/ Crystal K. Rose
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Director
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February 25, 2020
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Crystal K. Rose
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/s/ Christopher T. Lutes
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Director
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February 25, 2020
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Christopher T. Lutes
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•
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any merger or consolidation;
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•
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any sale, lease, license, exchange, pledge, transfer or other disposition of assets (in one transaction or a series of transactions) having a fair market value of $2 million or more;
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•
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the issuance or transfer of any of our securities or any of our subsidiaries' securities by us or any of our subsidiaries to an interested shareholder or its affiliates having a fair market value of $2 million or more;
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•
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the adoption of a plan or proposal for our liquidation or dissolution proposed by or on behalf of an interested shareholder or its affiliate; and
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•
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any reclassification of securities (including any reverse stock split), recapitalization, merger or consolidation of our company with any of our subsidiaries or other transaction (whether or not involving an interested shareholder) that has the effect of increasing the proportionate share of the outstanding shares of any class of our equity or convertible securities or those of our subsidiaries owned by an interested shareholder or its affiliate.
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Name
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State or Other Jurisdiction of Incorporation
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|
Percent Owned
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Central Pacific Bank
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Hawaii
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100%
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CPB Capital Trust II
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Delaware
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100% (1)
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CPB Statutory Trust III
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Connecticut
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100% (1)
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CPB Capital Trust IV
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Delaware
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100%
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CPB Statutory Trust V
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Delaware
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100%
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Gentry HomeLoans, LLC
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Hawaii
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50%
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Haseko HomeLoans, LLC
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Hawaii
|
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50%
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Island Pacific HomeLoans, LLC
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Hawaii
|
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50%
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/s/ KPMG LLP
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Honolulu, Hawaii
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|
February 25, 2020
|
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/s/ Crowe LLP
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Sacramento, California
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|
February 25, 2020
|
|
1.
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I have reviewed this Annual Report on Form 10-K of the Company;
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
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4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 25, 2020
|
By:
|
/s/ Paul K. Yonamine
|
|
|
|
Paul K. Yonamine
|
|
|
|
Chairman and Chief Executive Officer
|
|
1.
|
I have reviewed this Annual Report on Form 10-K of the Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
February 25, 2020
|
By:
|
/s/ David S. Morimoto
|
|
|
|
David S. Morimoto
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
1.
|
The Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
February 25, 2020
|
By:
|
/s/ Paul K. Yonamine
|
|
|
|
Paul K. Yonamine
|
|
|
|
Chairman and Chief Executive Officer
|
|
1.
|
The Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
February 25, 2020
|
By:
|
/s/ David S. Morimoto
|
|
|
|
David S. Morimoto
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|