x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
INDIANA
|
35-1546989
|
(State of Incorporation)
|
(I.R.S. Employer Identification Number)
|
One First Financial Plaza
Terre Haute, Indiana
|
47807
|
(Address of Registrant’s Principal Executive Offices)
|
(Zip Code)
|
Title of each class
|
Name of Exchange on Which Registered
|
Common Stock, no par value
|
The NASDAQ Stock Market LLC
(NASDAQ Global Select Market)
|
|
PAGE
|
PART I
|
|
Item 1. Business
|
|
Item 1A. Risk Factors
|
|
Item 1B. Unresolved Staff Comments
|
|
Item 2. Properties
|
|
Item 3. Legal Proceedings
|
|
Item 4. Mine Safety Disclosures
|
|
PART II
|
|
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
Item 6. Selected Financial Data
|
|
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
|
|
Item 8. Financial Statements and Supplementary Data
|
|
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures
|
|
Item 9A. Controls and Procedures
|
|
Item 9B. Other Information
|
|
PART III
|
|
Item 10. Directors, Executive Officers and Corporate Governance
|
|
Item 11. Executive Compensation
|
|
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
|
Item 13. Certain Relationships and Related Transactions and Director Independence
|
|
Item 14. Principal Accountant Fees and Services
|
|
PART IV
|
|
Item 15. Exhibits and Financial Statement Schedules
|
|
Signatures
|
|
Exhibit 21
|
|
Exhibit 31.1
|
|
Exhibit 31.2
|
|
Exhibit 32.1
|
|
Exhibit 32.2
|
|
ITEM 1.
|
BUSINESS
|
(1)
|
materially interfere with a consumer’s ability to understand a term or condition of a consumer financial product or service, or
|
(2)
|
take unreasonable advantage of a consumer’s:
|
•
|
lack of financial savvy,
|
•
|
inability to protect himself in the selection or use of consumer financial products or services,
|
•
|
reasonable reliance on a covered entity to act in the consumer’s interests.
|
•
|
Applying a 150% risk weight instead of a 100% risk weight for certain high volatility commercial real estate acquisition, development and construction loans;
|
•
|
Assigning a 150% risk weight to exposures (other than residential mortgage exposures) that are 90 days past due;
|
•
|
Providing for a 20% credit conversion factor for the unused portion of a commitment with an original maturity of one year or less that is not unconditionally cancellable (currently set at 0%); and
|
•
|
Providing for a risk weight, generally not less than 20% with certain exceptions, for securities lending transactions based on the risk weight category of the underlying collateral securing the transaction.
|
•
|
a minimum ratio of CET1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% CET1 ratio as that buffer is phased in, effectively resulting in a minimum ratio of CET1 to risk-weighted assets of at least 7% upon full implementation);
|
•
|
a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio as that buffer is phased in, effectively resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation);
|
•
|
a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio as that buffer is phased in, effectively resulting in a minimum total capital ratio of 10.5% upon full implementation), and
|
•
|
a minimum leverage ratio of 4%, calculated as the ratio of Tier 1 capital to average assets.
|
•
|
6.375% CET1 to risk-weighted assets;
|
•
|
7.875% Tier 1 capital to risk-weighted assets; and
|
•
|
9.875% Total capital to risk-weighted assets.
|
•
|
18.48% CET1 to risk-weighted assets;
|
•
|
18.48% Tier 1 capital to risk-weighted assets;
|
•
|
19.36% Total capital to risk-weighted assets; and
|
•
|
14.59% leverage ratio.
|
•
|
17.99% CET1 to risk-weighted assets;
|
•
|
17.99% Tier 1 capital to risk-weighted assets;
|
•
|
18.71% Total capital to risk-weighted assets; and
|
•
|
14.19% leverage ratio.
|
•
|
34.20% CET1 to risk-weighted assets;
|
•
|
34.20% Tier 1 capital to risk-weighted assets;
|
•
|
35.51% Total capital to risk-weighted assets; and
|
•
|
31.13% leverage ratio.
|
|
|
·
|
|
it allows bank holding companies that qualify as “financial holding companies” to engage in a broad range of financial and related activities;
|
|
|
·
|
|
it allows insurers and other financial services companies to acquire banks;
|
|
|
·
|
|
it removes various restrictions that applied to bank holding company ownership of securities firms and mutual fund advisory companies; and
|
|
|
·
|
|
it establishes the overall regulatory structure applicable to bank holding companies that also engage in insurance and securities operations.
|
•
|
be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with third parties; and
|
•
|
not involve more than the normal risk of repayment or present other unfavorable features.
|
•
|
Truth-In-Lending Act and state consumer protection laws governing disclosures of credit terms and prohibiting certain practices with regard to consumer borrowers;
|
•
|
Home Mortgage Disclosure Act of 1975, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
|
•
|
Equal Credit Opportunity Act and other fair lending laws, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
|
•
|
Fair Credit Reporting Act of 1978 and Fair and Accurate Credit Transactions Act of 2003, governing the use and provision of information to credit reporting agencies;
|
•
|
Fair Debt Collection Practices Act, governing the manner in which consumer debts may be collected by collection agencies; and rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
|
•
|
Customer Information Security Guidelines. The federal bank regulatory agencies have adopted final guidelines (the “Guidelines”) for safeguarding confidential customer information. The Guidelines require each financial institution, under the supervision and ongoing oversight of its Board of Directors, to create a comprehensive written information security program designed to ensure the security and confidentiality of customer information, protect against any anticipated threats or hazards to the security or integrity of such information; protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to any customer; and implement response programs for security breaches.
|
•
|
Electronic Funds Transfer Act and Regulation E. The Electronic Funds Transfer Act, which is implemented by Regulation E, governs automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities arising from the use of automated teller machines and other electronic banking service.
|
•
|
Gramm-Leach-Bliley Act, Fair and Accurate Credit Transactions Act. The Gramm-Leach-Bliley Act, the Fair and Accurate Credit Transactions Act, and the implementing regulations govern consumer financial privacy, provide disclosure requirements and restrict the sharing of certain consumer financial information with other parties.
|
ITEM 1A.
|
RISK FACTORS
|
•
|
an increase in loan delinquencies;
|
•
|
an increase in problem assets and foreclosures;
|
•
|
a decrease in the demand for the Corporation’s products and services; and
|
•
|
a decrease in the value of collateral for loans, especially real estate, in turn reducing customers’ borrowing power, the value of assets associated with problem loans and collateral coverage.
|
•
|
the ability to develop, maintain and build upon long-term customer relationships based on top quality service, and safe, sound assets;
|
•
|
the ability to expand the Corporation's market position;
|
•
|
the scope, relevance and pricing of products and services offered to meet customer needs and demands;
|
•
|
the rate at which the Corporation introduces new products and services relative to its competitors;
|
•
|
customer satisfaction with the Corporation's level of service; and
|
•
|
industry and general economic trends.
|
•
|
the time and costs of associated with identifying and evaluating potential new markets, hiring experienced local management, and opening new offices, and the time lags between these activities and the generation of sufficient assets and deposits to support the costs of the expansion;
|
•
|
the time and costs associated with identifying potential acquisition and merger targets;
|
•
|
the accuracy of the estimates and judgments used to evaluate credit, operations, management, and market risks with respect to a target company;
|
•
|
the diversion of our management’s attention to the negotiation of a transaction, and the integration of the operations and personnel of the combined businesses;
|
•
|
our ability to finance an acquisition and possible dilution to our existing shareholders;
|
•
|
closing delays and expenses related to the resolution of lawsuits filed by shareholders of targets;
|
•
|
entry into new markets where we lack experience;
|
•
|
introduction of new products and services into our business;
|
•
|
potential exposure to unknown or contingent liabilities of the target company;
|
•
|
exposure to potential asset quality issues of the target company;
|
•
|
the risk of loss of key employees and customers; and
|
•
|
incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations.
|
•
|
announcements and news reports relating to the Corporation’s business and trends, concerns, and other issues in the financial services industry generally;
|
•
|
fluctuations in the Corporation’s results of operations;
|
•
|
sales or purchases of substantial amounts of the Corporation’s securities in the marketplace;
|
•
|
a shortfall or excess in revenues or earnings compared to securities analysts’ expectations;
|
•
|
changes in analysts’ recommendations or projections;
|
•
|
actual or expected economic conditions that are perceived to affect the Corporation, such as changes in real estate values or interest rates;
|
•
|
perceptions in the marketplace regarding the Corporation and/or our competitors;
|
•
|
new technology used, or services offered, by competitors;
|
•
|
changes in applicable government regulation; and
|
•
|
the Corporation’s announcement of new acquisitions or other projects.
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
|
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
|
|
|
|
|
Cash
|
|
|
|
|
|
Cash
|
||||||||||||
|
|
Trade Price
|
|
Dividends
|
|
Trade Price
|
|
Dividends
|
||||||||||||||||
Quarter ended
|
|
High
|
|
Low
|
|
Declared
|
|
High
|
|
Low
|
|
Declared
|
||||||||||||
March 31
|
|
$
|
47.70
|
|
|
$
|
41.60
|
|
|
|
|
|
$
|
51.18
|
|
|
$
|
43.92
|
|
|
|
|
||
June 30
|
|
$
|
46.25
|
|
|
$
|
41.35
|
|
|
$
|
0.51
|
|
|
$
|
49.29
|
|
|
$
|
44.02
|
|
|
$
|
0.50
|
|
September 30
|
|
$
|
52.45
|
|
|
$
|
45.35
|
|
|
|
|
|
$
|
47.02
|
|
|
$
|
40.38
|
|
|
|
|
||
December 31
|
|
$
|
52.26
|
|
|
$
|
38.60
|
|
|
$
|
0.51
|
|
|
$
|
49.80
|
|
|
$
|
44.60
|
|
|
$
|
2.01
|
|
|
|
|
|
Period Ending
|
|
|
||||||||||||
Index
|
|
12/31/2013
|
|
|
12/31/2014
|
|
|
12/31/2015
|
|
|
12/31/2016
|
|
|
12/31/2017
|
|
|
12/31/2018
|
|
First Financial Corporation
|
|
100.00
|
|
|
100.25
|
|
|
98.38
|
|
|
157.28
|
|
|
142.26
|
|
|
128.84
|
|
Russell 2000
|
|
100.00
|
|
|
104.89
|
|
|
100.26
|
|
|
121.63
|
|
|
139.44
|
|
|
124.09
|
|
SNL Bank $1B-$5B
|
|
100.00
|
|
|
104.56
|
|
|
117.04
|
|
|
168.38
|
|
|
179.51
|
|
|
157.27
|
|
6.
|
SELECTED FINANCIAL DATA
|
(Dollar amounts in thousands, except per share amounts)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
|
|
$
|
3,008,718
|
|
|
$
|
3,000,668
|
|
|
$
|
2,988,527
|
|
|
$
|
2,979,585
|
|
|
$
|
3,002,485
|
|
Securities
|
|
784,916
|
|
|
814,931
|
|
|
853,725
|
|
|
891,082
|
|
|
897,053
|
|
|||||
Loans
|
|
1,953,988
|
|
|
1,906,761
|
|
|
1,839,180
|
|
|
1,763,808
|
|
|
1,781,428
|
|
|||||
Deposits
|
|
2,436,727
|
|
|
2,458,653
|
|
|
2,428,526
|
|
|
2,442,369
|
|
|
2,457,197
|
|
|||||
Borrowings
|
|
69,656
|
|
|
57,686
|
|
|
81,121
|
|
|
46,508
|
|
|
60,901
|
|
|||||
Shareholders’ equity
|
|
442,701
|
|
|
413,569
|
|
|
414,395
|
|
|
410,316
|
|
|
394,214
|
|
|||||
INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income
|
|
126,224
|
|
|
114,195
|
|
|
109,380
|
|
|
108,676
|
|
|
113,358
|
|
|||||
Interest expense
|
|
9,645
|
|
|
6,338
|
|
|
4,407
|
|
|
4,169
|
|
|
5,526
|
|
|||||
Net interest income
|
|
116,579
|
|
|
107,857
|
|
|
104,973
|
|
|
104,507
|
|
|
107,832
|
|
|||||
Provision for loan losses
|
|
5,768
|
|
|
5,295
|
|
|
3,300
|
|
|
4,700
|
|
|
5,072
|
|
|||||
Other income
|
|
38,206
|
|
|
35,938
|
|
|
46,931
|
|
|
39,179
|
|
|
40,785
|
|
|||||
Other expenses
|
|
91,289
|
|
|
88,747
|
|
|
90,308
|
|
|
98,398
|
|
|
95,584
|
|
|||||
Net income
|
|
46,583
|
|
|
29,131
|
|
|
38,413
|
|
|
30,196
|
|
|
33,772
|
|
|||||
PER SHARE DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Income
|
|
3.80
|
|
|
2.38
|
|
|
3.12
|
|
|
2.35
|
|
|
2.55
|
|
|||||
Cash dividends
|
|
1.02
|
|
|
2.51
|
|
|
1.00
|
|
|
0.98
|
|
|
0.98
|
|
|||||
PERFORMANCE RATIOS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets
|
|
1.57
|
%
|
|
0.98
|
%
|
|
1.30
|
%
|
|
1.01
|
%
|
|
1.12
|
%
|
|||||
Return on average shareholders’ equity
|
|
10.98
|
|
|
6.69
|
|
|
9.26
|
|
|
7.46
|
|
|
8.37
|
|
|||||
Average total capital to average assets
|
|
14.93
|
|
|
15.24
|
|
|
14.67
|
|
|
14.26
|
|
|
13.99
|
|
|||||
Average shareholders’ equity to average assets
|
|
14.25
|
|
|
14.58
|
|
|
14.01
|
|
|
13.60
|
|
|
13.36
|
|
|||||
Dividend payout
|
|
26.85
|
|
|
105.32
|
|
|
31.81
|
|
|
41.51
|
|
|
38.16
|
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
|
|
|
2018 Compared to 2017 Increase
(Decrease) Due to
|
|
2017 Compared to 2016 Increase
(Decrease) Due to
|
||||||||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Volume
|
|
Rate
|
|
Volume/
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Volume/
Rate
|
|
Total
|
||||||||||||||||
Interest earned on interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans (1) (2)
|
|
$
|
3,375
|
|
|
$
|
5,346
|
|
|
$
|
195
|
|
|
$
|
8,916
|
|
|
$
|
3,055
|
|
|
$
|
1,991
|
|
|
$
|
69
|
|
|
$
|
5,115
|
|
Taxable investment securities
|
|
(1,271
|
)
|
|
4,266
|
|
|
(378
|
)
|
|
2,617
|
|
|
(862
|
)
|
|
724
|
|
|
(43
|
)
|
|
(181
|
)
|
||||||||
Tax-exempt investment securities (2)
|
|
317
|
|
|
(2,104
|
)
|
|
(50
|
)
|
|
(1,837
|
)
|
|
571
|
|
|
(568
|
)
|
|
(24
|
)
|
|
(21
|
)
|
||||||||
Federal funds sold
|
|
(72
|
)
|
|
297
|
|
|
(210
|
)
|
|
15
|
|
|
(10
|
)
|
|
57
|
|
|
(9
|
)
|
|
38
|
|
||||||||
Total interest income
|
|
$
|
2,349
|
|
|
$
|
7,805
|
|
|
$
|
(443
|
)
|
|
$
|
9,711
|
|
|
$
|
2,754
|
|
|
$
|
2,204
|
|
|
$
|
(7
|
)
|
|
$
|
4,951
|
|
Interest paid on interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Transaction accounts
|
|
136
|
|
|
2,463
|
|
|
89
|
|
|
2,688
|
|
|
222
|
|
|
1,428
|
|
|
159
|
|
|
1,809
|
|
||||||||
Time deposits
|
|
(240
|
)
|
|
643
|
|
|
(70
|
)
|
|
333
|
|
|
(204
|
)
|
|
273
|
|
|
(26
|
)
|
|
43
|
|
||||||||
Short-term borrowings
|
|
10
|
|
|
236
|
|
|
10
|
|
|
256
|
|
|
6
|
|
|
100
|
|
|
5
|
|
|
111
|
|
||||||||
Other borrowings
|
|
(19
|
)
|
|
63
|
|
|
(14
|
)
|
|
30
|
|
|
(17
|
)
|
|
(18
|
)
|
|
3
|
|
|
(32
|
)
|
||||||||
Total interest expense
|
|
(113
|
)
|
|
3,405
|
|
|
15
|
|
|
3,307
|
|
|
7
|
|
|
1,783
|
|
|
141
|
|
|
1,931
|
|
||||||||
Net interest income
|
|
$
|
2,462
|
|
|
$
|
4,400
|
|
|
$
|
(458
|
)
|
|
$
|
6,404
|
|
|
$
|
2,747
|
|
|
$
|
421
|
|
|
$
|
(148
|
)
|
|
$
|
3,020
|
|
|
|
1 year and less
|
|
1 to 5 years
|
|
5 to 10 years
|
|
Over 10 Years
|
|
2018
|
||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Total
|
||||||||||||||
U.S. government sponsored entity mortgage-backed securities and agencies (1)
|
|
$
|
56
|
|
|
4.61
|
%
|
|
$
|
4,186
|
|
|
5.33
|
%
|
|
$
|
52,699
|
|
|
5.83
|
%
|
|
$
|
147,166
|
|
|
3.95
|
%
|
|
$
|
204,107
|
|
Collateralized mortgage obligations (1)
|
|
3
|
|
|
7.59
|
%
|
|
278
|
|
|
4.30
|
%
|
|
9,326
|
|
|
2.88
|
%
|
|
334,009
|
|
|
2.62
|
%
|
|
343,616
|
|
|||||
States and political subdivisions
|
|
6,509
|
|
|
3.24
|
%
|
|
33,582
|
|
|
3.28
|
%
|
|
70,314
|
|
|
3.41
|
%
|
|
123,530
|
|
|
3.14
|
%
|
|
233,935
|
|
|||||
Collateralized debt obligations
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
3,258
|
|
|
—
|
%
|
|
3,258
|
|
|||||
TOTAL
|
|
$
|
6,568
|
|
|
3.25
|
%
|
|
$
|
38,046
|
|
|
3.51
|
%
|
|
$
|
132,339
|
|
|
4.34
|
%
|
|
$
|
607,963
|
|
|
3.03
|
%
|
|
$
|
784,916
|
|
|
|
1 year and less
|
|
1 to 5 years
|
|
5 to 10 years
|
|
Over 10 Years
|
|
2017
|
||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Total
|
||||||||||||||
U.S. government sponsored entity mortgage-backed securities and agencies (1)
|
|
$
|
439
|
|
|
4.78
|
%
|
|
$
|
4,277
|
|
|
4.89
|
%
|
|
$
|
55,887
|
|
|
5.72
|
%
|
|
$
|
168,432
|
|
|
4.52
|
%
|
|
$
|
229,035
|
|
Collateralized mortgage obligations (1)
|
|
130
|
|
|
4.22
|
%
|
|
440
|
|
|
6.32
|
%
|
|
5,175
|
|
|
3.57
|
%
|
|
333,924
|
|
|
2.47
|
%
|
|
339,669
|
|
|||||
States and political subdivisions
|
|
4,701
|
|
|
3.93
|
%
|
|
31,338
|
|
|
3.38
|
%
|
|
85,726
|
|
|
3.51
|
%
|
|
109,857
|
|
|
3.12
|
%
|
|
231,622
|
|
|||||
Collateralized debt obligations
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
14,605
|
|
|
—
|
%
|
|
14,605
|
|
|||||
TOTAL
|
|
5,270
|
|
|
4.01
|
%
|
|
36,055
|
|
|
3.60
|
%
|
|
146,788
|
|
|
4.35
|
%
|
|
626,818
|
|
|
3.08
|
%
|
|
814,931
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Loan Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
$
|
1,166,352
|
|
|
$
|
1,139,490
|
|
|
$
|
1,106,182
|
|
|
$
|
1,043,980
|
|
|
$
|
1,044,522
|
|
Residential
|
|
443,670
|
|
|
436,143
|
|
|
423,911
|
|
|
444,447
|
|
|
469,172
|
|
|||||
Consumer
|
|
341,041
|
|
|
327,976
|
|
|
305,881
|
|
|
272,896
|
|
|
266,656
|
|
|||||
TOTAL
|
|
$
|
1,951,063
|
|
|
$
|
1,903,609
|
|
|
$
|
1,835,974
|
|
|
$
|
1,761,323
|
|
|
$
|
1,780,350
|
|
|
|
Within
|
|
After One
But Within
|
|
After Five
|
|
|
||||||||
(Dollar amounts in thousands)
|
|
One Year
|
|
Five Years
|
|
Years
|
|
Total
|
||||||||
MATURITY DISTRIBUTION
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial, financial and agricultural
|
|
$
|
427,527
|
|
|
$
|
592,124
|
|
|
$
|
146,701
|
|
|
$
|
1,166,352
|
|
TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Residential
|
|
|
|
|
|
|
|
|
|
|
443,670
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
341,041
|
|
||||
TOTAL
|
|
|
|
|
|
|
|
|
|
|
$
|
1,951,063
|
|
|||
Loans maturing after one year with:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fixed interest rates
|
|
|
|
|
$
|
170,269
|
|
|
$
|
136,183
|
|
|
|
|
||
Variable interest rates
|
|
|
|
|
421,855
|
|
|
10,518
|
|
|
|
|
||||
TOTAL
|
|
|
|
|
$
|
592,124
|
|
|
$
|
146,701
|
|
|
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Amount of loans outstanding at December 31,
|
|
$
|
1,951,063
|
|
|
$
|
1,903,609
|
|
|
$
|
1,835,974
|
|
|
$
|
1,761,323
|
|
|
$
|
1,780,350
|
|
Average amount of loans by year
|
|
$
|
1,922,588
|
|
|
$
|
1,855,092
|
|
|
$
|
1,792,609
|
|
|
$
|
1,761,888
|
|
|
$
|
1,795,235
|
|
Allowance for loan losses at beginning of year
|
|
$
|
19,909
|
|
|
$
|
18,773
|
|
|
$
|
19,946
|
|
|
$
|
18,839
|
|
|
$
|
20,068
|
|
Loans charged off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
1,122
|
|
|
1,572
|
|
|
2,659
|
|
|
2,852
|
|
|
3,522
|
|
|||||
Residential
|
|
841
|
|
|
761
|
|
|
1,011
|
|
|
866
|
|
|
1,143
|
|
|||||
Consumer
|
|
6,868
|
|
|
6,429
|
|
|
5,279
|
|
|
4,810
|
|
|
4,785
|
|
|||||
Total loans charged off
|
|
8,831
|
|
|
8,762
|
|
|
8,949
|
|
|
8,528
|
|
|
9,450
|
|
|||||
Recoveries of loans previously charged off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
606
|
|
|
1,377
|
|
|
1,663
|
|
|
2,429
|
|
|
934
|
|
|||||
Residential
|
|
639
|
|
|
842
|
|
|
676
|
|
|
452
|
|
|
798
|
|
|||||
Consumer
|
|
2,345
|
|
|
2,384
|
|
|
2,137
|
|
|
2,054
|
|
|
2,104
|
|
|||||
Total recoveries
|
|
3,590
|
|
|
4,603
|
|
|
4,476
|
|
|
4,935
|
|
|
3,836
|
|
|||||
Net loans charged off
|
|
5,241
|
|
|
4,159
|
|
|
4,473
|
|
|
3,593
|
|
|
5,614
|
|
|||||
Provision charged to expense *
|
|
5,768
|
|
|
5,295
|
|
|
3,300
|
|
|
4,700
|
|
|
4,385
|
|
|||||
Balance at end of year
|
|
$
|
20,436
|
|
|
$
|
19,909
|
|
|
$
|
18,773
|
|
|
$
|
19,946
|
|
|
$
|
18,839
|
|
Ratio of net charge-offs during period to average loans outstanding
|
|
0.27
|
%
|
|
0.22
|
%
|
|
0.25
|
%
|
|
0.20
|
%
|
|
0.31
|
%
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Commercial
|
|
$
|
9,848
|
|
|
$
|
10,281
|
|
|
$
|
9,731
|
|
|
$
|
11,482
|
|
|
$
|
10,915
|
|
Residential
|
|
1,313
|
|
|
1,455
|
|
|
1,553
|
|
|
1,834
|
|
|
1,374
|
|
|||||
Consumer
|
|
7,481
|
|
|
6,709
|
|
|
5,767
|
|
|
4,945
|
|
|
4,370
|
|
|||||
Unallocated
|
|
1,794
|
|
|
1,464
|
|
|
1,722
|
|
|
1,685
|
|
|
2,180
|
|
|||||
TOTAL ALLOWANCE FOR LOAN LOSSES
|
|
$
|
20,436
|
|
|
$
|
19,909
|
|
|
$
|
18,773
|
|
|
$
|
19,946
|
|
|
$
|
18,839
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Non-accrual loans
|
|
$
|
10,974
|
|
|
$
|
13,245
|
|
|
$
|
13,492
|
|
|
$
|
14,634
|
|
|
$
|
15,034
|
|
Accruing restructured loans
|
|
3,702
|
|
|
3,280
|
|
|
3,729
|
|
|
4,851
|
|
|
4,616
|
|
|||||
Non-accrual restructured loans
|
|
1,104
|
|
|
3,754
|
|
|
4,836
|
|
|
5,009
|
|
|
10,142
|
|
|||||
Accruing loans past due over 90 days
|
|
798
|
|
|
1,403
|
|
|
610
|
|
|
964
|
|
|
780
|
|
|||||
|
|
$
|
16,578
|
|
|
$
|
21,682
|
|
|
$
|
22,667
|
|
|
$
|
25,458
|
|
|
$
|
30,572
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial loans
|
|
$
|
6,851
|
|
|
62
|
%
|
|
$
|
7,935
|
|
|
60
|
%
|
Residential loans
|
|
3,618
|
|
|
33
|
%
|
|
4,445
|
|
|
34
|
%
|
||
Consumer loans
|
|
505
|
|
|
5
|
%
|
|
865
|
|
|
6
|
%
|
||
|
|
$
|
10,974
|
|
|
100
|
%
|
|
$
|
13,245
|
|
|
100
|
%
|
Past due 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial loans
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
57
|
|
|
4
|
%
|
Residential loans
|
|
630
|
|
|
79
|
%
|
|
1,088
|
|
|
78
|
%
|
||
Consumer loans
|
|
168
|
|
|
21
|
%
|
|
258
|
|
|
18
|
%
|
||
|
|
$
|
798
|
|
|
100
|
%
|
|
$
|
1,403
|
|
|
100
|
%
|
|
|
Covered Loans (also included above)
|
||||||||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial loans
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
2
|
|
|
3
|
%
|
Residential loans
|
|
91
|
|
|
100
|
%
|
|
60
|
|
|
97
|
%
|
||
Consumer loans
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
|
|
$
|
91
|
|
|
100
|
%
|
|
$
|
62
|
|
|
100
|
%
|
Past due 90 days or more:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial loans
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Residential loans
|
|
19
|
|
|
100
|
%
|
|
88
|
|
|
100
|
%
|
||
Consumer loans
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||
|
|
$
|
19
|
|
|
100
|
%
|
|
$
|
88
|
|
|
100
|
%
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
(Dollar amounts in thousands)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||||
Non-interest-bearing demand deposits
|
|
$
|
425,639
|
|
|
|
|
|
$
|
438,234
|
|
|
|
|
|
$
|
550,977
|
|
|
|
|
Interest-bearing demand deposits
|
|
805,689
|
|
|
0.50
|
%
|
|
719,728
|
|
|
0.30
|
%
|
|
592,832
|
|
|
0.18
|
%
|
|||
Savings deposits
|
|
901,157
|
|
|
0.27
|
%
|
|
927,894
|
|
|
0.19
|
%
|
|
889,214
|
|
|
0.11
|
%
|
|||
Time deposits: $100,000 or more
|
|
92,657
|
|
|
1.06
|
%
|
|
100,432
|
|
|
0.69
|
%
|
|
108,739
|
|
|
0.58
|
%
|
|||
Other time deposits
|
|
225,082
|
|
|
0.70
|
%
|
|
255,849
|
|
|
0.59
|
%
|
|
284,441
|
|
|
0.54
|
%
|
|||
TOTAL
|
|
$
|
2,450,224
|
|
|
|
|
|
$
|
2,442,137
|
|
|
|
|
|
$
|
2,426,203
|
|
|
|
|
Basis Point
|
|
Percentage Change in Net Interest Income
|
|||||||
Interest Rate Change
|
|
12 months
|
|
24 months
|
|
36 months
|
|||
Down 200
|
|
-7.81
|
%
|
|
-14.08
|
%
|
|
-19.19
|
%
|
Down 100
|
|
-2.94
|
%
|
|
-6.63
|
%
|
|
-9.53
|
%
|
Up 100
|
|
2.06
|
%
|
|
5.30
|
%
|
|
8.52
|
%
|
Up 200
|
|
1.31
|
%
|
|
7.48
|
%
|
|
13.86
|
%
|
|
|
Payments Due in
|
|||||||||||||||||||||
|
|
Note
|
|
One year
|
|
One year to
|
|
Three to
|
|
Over Five
|
|
|
|||||||||||
(Dollar amounts in thousands)
|
|
Reference
|
|
or less
|
|
Three Years
|
|
Five Years
|
|
Years
|
|
Total
|
|||||||||||
Deposits without a stated maturity
|
|
|
|
|
$
|
2,136,101
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,136,101
|
|
Consumer certificates of deposit
|
|
|
|
|
172,270
|
|
|
85,269
|
|
|
43,044
|
|
|
43
|
|
|
300,626
|
|
|||||
Short-term borrowings
|
|
11
|
|
|
69,656
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69,656
|
|
|||||
Other borrowings
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total Amount
|
|
One year
|
|
Over One
|
||||||
(Dollar amounts in thousands)
|
|
Committed
|
|
or less
|
|
Year
|
||||||
Commitments to extend credit:
|
|
|
|
|
|
|
|
|
|
|||
Unused loan commitments
|
|
$
|
424,458
|
|
|
$
|
190,709
|
|
|
$
|
233,749
|
|
Commercial letters of credit
|
|
4,673
|
|
|
2,444
|
|
|
2,229
|
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
|
December 31,
|
||||||
(Dollar amounts in thousands, except per share data)
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
74,388
|
|
|
$
|
74,107
|
|
Securities available-for-sale
|
|
784,916
|
|
|
814,931
|
|
||
Loans, net of allowance of $20,436 in 2018 and $19,909 in 2017
|
|
1,933,552
|
|
|
1,886,852
|
|
||
Restricted stock
|
|
10,390
|
|
|
10,379
|
|
||
Accrued interest receivable
|
|
13,970
|
|
|
12,913
|
|
||
Premises and equipment, net
|
|
46,554
|
|
|
48,272
|
|
||
Bank-owned life insurance
|
|
86,186
|
|
|
85,016
|
|
||
Goodwill
|
|
34,355
|
|
|
34,355
|
|
||
Other intangible assets
|
|
1,197
|
|
|
1,630
|
|
||
Other real estate owned
|
|
603
|
|
|
1,880
|
|
||
Other assets
|
|
22,607
|
|
|
30,333
|
|
||
TOTAL ASSETS
|
|
$
|
3,008,718
|
|
|
$
|
3,000,668
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Non-interest-bearing
|
|
$
|
431,923
|
|
|
$
|
425,001
|
|
Interest-bearing:
|
|
|
|
|
|
|
||
Certificates of deposit that meet or exceed the FDIC insurance limit
|
|
42,284
|
|
|
43,178
|
|
||
Other interest-bearing deposits
|
|
1,962,520
|
|
|
1,990,474
|
|
||
|
|
2,436,727
|
|
|
2,458,653
|
|
||
Short-term borrowings
|
|
69,656
|
|
|
57,686
|
|
||
Other liabilities
|
|
59,634
|
|
|
70,760
|
|
||
TOTAL LIABILITIES
|
|
2,566,017
|
|
|
2,587,099
|
|
||
Shareholders’ equity
|
|
|
|
|
|
|
||
Common stock, $.125 stated value per share;
|
|
|
|
|
|
|
||
Authorized shares-40,000,000
|
|
|
|
|
|
|
||
Issued shares-14,612,540 in 2018 and 14,595,320 in 2017
|
|
|
|
|
|
|
||
Outstanding shares-12,278,295 in 2018 and 12,246,464 in 2017
|
|
1,824
|
|
|
1,822
|
|
||
Additional paid-in capital
|
|
76,774
|
|
|
75,624
|
|
||
Retained earnings
|
|
456,716
|
|
|
420,275
|
|
||
Accumulated other comprehensive income (loss)
|
|
(23,454
|
)
|
|
(14,704
|
)
|
||
Less: Treasury shares at cost-2,334,245 in 2018 and 2,348,856 in 2017
|
|
(69,159
|
)
|
|
(69,448
|
)
|
||
TOTAL SHAREHOLDERS’ EQUITY
|
|
442,701
|
|
|
413,569
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
3,008,718
|
|
|
$
|
3,000,668
|
|
|
|
Years Ended December 31,
|
||||||||||
(Dollar amounts in thousands, except per share data)
|
|
2018
|
|
2017
|
|
2016
|
||||||
INTEREST AND DIVIDEND INCOME:
|
|
|
|
|
|
|
|
|
|
|||
Loans, including related fees
|
|
$
|
100,541
|
|
|
$
|
91,100
|
|
|
$
|
86,128
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|||
Taxable
|
|
16,942
|
|
|
14,325
|
|
|
14,506
|
|
|||
Tax-exempt
|
|
7,455
|
|
|
7,391
|
|
|
7,269
|
|
|||
Other
|
|
1,286
|
|
|
1,379
|
|
|
1,477
|
|
|||
TOTAL INTEREST AND DIVIDEND INCOME
|
|
126,224
|
|
|
114,195
|
|
|
109,380
|
|
|||
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
9,032
|
|
|
6,011
|
|
|
4,159
|
|
|||
Short-term borrowings
|
|
501
|
|
|
245
|
|
|
134
|
|
|||
Other borrowings
|
|
112
|
|
|
82
|
|
|
114
|
|
|||
TOTAL INTEREST EXPENSE
|
|
9,645
|
|
|
6,338
|
|
|
4,407
|
|
|||
NET INTEREST INCOME
|
|
116,579
|
|
|
107,857
|
|
|
104,973
|
|
|||
Provision for loan losses
|
|
5,768
|
|
|
5,295
|
|
|
3,300
|
|
|||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
110,811
|
|
|
102,562
|
|
|
101,673
|
|
|||
NON-INTEREST INCOME:
|
|
|
|
|
|
|
|
|
|
|||
Trust and financial services
|
|
5,286
|
|
|
5,001
|
|
|
5,208
|
|
|||
Service charges and fees on deposit accounts
|
|
11,733
|
|
|
11,895
|
|
|
10,530
|
|
|||
Other service charges and fees
|
|
13,012
|
|
|
12,499
|
|
|
12,307
|
|
|||
Securities gain (loss), net
|
|
2
|
|
|
59
|
|
|
34
|
|
|||
Insurance commissions
|
|
144
|
|
|
74
|
|
|
2,346
|
|
|||
Gain on sale of certain assets and liabilities of insurance brokerage operation
|
|
—
|
|
|
—
|
|
|
12,822
|
|
|||
Gain on sale of mortgage loans
|
|
1,829
|
|
|
1,688
|
|
|
1,842
|
|
|||
Other
|
|
6,200
|
|
|
4,722
|
|
|
1,842
|
|
|||
TOTAL NON-INTEREST INCOME
|
|
38,206
|
|
|
35,938
|
|
|
46,931
|
|
|||
NON-INTEREST EXPENSES:
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
50,658
|
|
|
50,116
|
|
|
50,091
|
|
|||
Occupancy expense
|
|
7,030
|
|
|
6,897
|
|
|
6,865
|
|
|||
Equipment expense
|
|
6,827
|
|
|
7,186
|
|
|
7,300
|
|
|||
Federal Deposit Insurance
|
|
929
|
|
|
915
|
|
|
1,300
|
|
|||
Other
|
|
25,845
|
|
|
23,633
|
|
|
24,752
|
|
|||
TOTAL NON-INTEREST EXPENSE
|
|
91,289
|
|
|
88,747
|
|
|
90,308
|
|
|||
INCOME BEFORE INCOME TAXES
|
|
57,728
|
|
|
49,753
|
|
|
58,296
|
|
|||
Provision for income taxes
|
|
11,145
|
|
|
20,622
|
|
|
19,883
|
|
|||
NET INCOME
|
|
46,583
|
|
|
29,131
|
|
|
38,413
|
|
|||
OTHER COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|||
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes
|
|
(8,861
|
)
|
|
3,335
|
|
|
(10,130
|
)
|
|||
Change in funded status of post-retirement benefits, net of taxes
|
|
2,477
|
|
|
(3,875
|
)
|
|
5,367
|
|
|||
COMPREHENSIVE INCOME
|
|
$
|
40,199
|
|
|
$
|
28,591
|
|
|
$
|
33,650
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|||
BASIC AND DILUTED
|
|
$
|
3.80
|
|
|
$
|
2.38
|
|
|
$
|
3.12
|
|
Weighted average number of shares outstanding (in thousands)
|
|
12,256
|
|
|
12,225
|
|
|
12,317
|
|
|
|
Common
|
|
Additional
|
|
Retained
|
|
Accumulated
Other
Comprehensive
|
|
Treasury
|
|
|
||||||||||||
(Dollar amounts in thousands, except per share data)
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Income/(Loss)
|
|
Stock
|
|
Total
|
||||||||||||
Balance, January 1, 2016
|
|
$
|
1,817
|
|
|
$
|
73,396
|
|
|
$
|
395,633
|
|
|
$
|
(9,401
|
)
|
|
$
|
(51,129
|
)
|
|
$
|
410,316
|
|
Net income
|
|
—
|
|
|
—
|
|
|
38,413
|
|
|
—
|
|
|
—
|
|
|
38,413
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,763
|
)
|
|
—
|
|
|
(4,763
|
)
|
||||||
Omnibus Equity Incentive Plan, net
|
|
3
|
|
|
681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
684
|
|
||||||
Treasury stock purchases (575,224 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,396
|
)
|
|
(19,396
|
)
|
||||||
Contribution of 30,975 shares to ESOP
|
|
—
|
|
|
448
|
|
|
—
|
|
|
—
|
|
|
913
|
|
|
1,361
|
|
||||||
Cash Dividends, $1.00 per share
|
|
—
|
|
|
—
|
|
|
(12,220
|
)
|
|
—
|
|
|
—
|
|
|
(12,220
|
)
|
||||||
Balance, December 31, 2016
|
|
1,820
|
|
|
74,525
|
|
|
421,826
|
|
|
(14,164
|
)
|
|
(69,612
|
)
|
|
414,395
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
29,131
|
|
|
—
|
|
|
—
|
|
|
29,131
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(540
|
)
|
|
—
|
|
|
(540
|
)
|
||||||
Omnibus Equity Incentive Plan, net
|
|
2
|
|
|
704
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
706
|
|
||||||
Treasury stock purchases (9,524 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(503
|
)
|
|
(503
|
)
|
||||||
Contribution of 22,714 shares to ESOP
|
|
—
|
|
|
395
|
|
|
—
|
|
|
—
|
|
|
667
|
|
|
1,062
|
|
||||||
Cash Dividends, $2.51 per share
|
|
—
|
|
|
—
|
|
|
(30,682
|
)
|
|
—
|
|
|
—
|
|
|
(30,682
|
)
|
||||||
Balance, December 31, 2017
|
|
1,822
|
|
|
75,624
|
|
|
420,275
|
|
|
(14,704
|
)
|
|
(69,448
|
)
|
|
413,569
|
|
||||||
Net income
|
|
—
|
|
|
—
|
|
|
46,583
|
|
|
—
|
|
|
—
|
|
|
46,583
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,384
|
)
|
|
—
|
|
|
(6,384
|
)
|
||||||
Omnibus Equity Incentive Plan, net
|
|
2
|
|
|
743
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
745
|
|
||||||
Treasury stock purchases (8,639 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(391
|
)
|
|
(391
|
)
|
||||||
Contribution of 23,250 shares to ESOP
|
|
—
|
|
|
407
|
|
|
—
|
|
|
—
|
|
|
680
|
|
|
1,087
|
|
||||||
ASU 2018-02 adjustment
|
|
—
|
|
|
—
|
|
|
2,366
|
|
|
(2,366
|
)
|
|
—
|
|
|
—
|
|
||||||
Cash Dividends, $1.02 per share
|
|
—
|
|
|
—
|
|
|
(12,508
|
)
|
|
—
|
|
|
—
|
|
|
(12,508
|
)
|
||||||
Balance, December 31, 2018
|
|
$
|
1,824
|
|
|
$
|
76,774
|
|
|
$
|
456,716
|
|
|
$
|
(23,454
|
)
|
|
$
|
(69,159
|
)
|
|
$
|
442,701
|
|
|
|
Years Ended December 31,
|
||||||||||
(Dollar amounts in thousands, except per share data)
|
|
2018
|
|
2017
|
|
2016
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Net Income
|
|
$
|
46,583
|
|
|
$
|
29,131
|
|
|
$
|
38,413
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net (accretion) amortization on securities
|
|
3,622
|
|
|
3,786
|
|
|
3,695
|
|
|||
Provision for loan losses
|
|
5,768
|
|
|
5,295
|
|
|
3,300
|
|
|||
Securities (gains) losses
|
|
(2
|
)
|
|
(59
|
)
|
|
(34
|
)
|
|||
Depreciation and amortization
|
|
4,164
|
|
|
4,426
|
|
|
4,968
|
|
|||
Provision for deferred income taxes
|
|
(2,428
|
)
|
|
(4,241
|
)
|
|
(1,512
|
)
|
|||
Net change in accrued interest receivable
|
|
(1,057
|
)
|
|
(602
|
)
|
|
(578
|
)
|
|||
Contribution of shares to ESOP
|
|
1,087
|
|
|
1,062
|
|
|
1,361
|
|
|||
Gain on sale of certain assets and liabilities of insurance brokerage operation
|
|
—
|
|
|
—
|
|
|
(12,822
|
)
|
|||
Stock compensation expense
|
|
745
|
|
|
706
|
|
|
684
|
|
|||
Gain on sale of mortgage loans
|
|
(1,829
|
)
|
|
(1,688
|
)
|
|
(1,842
|
)
|
|||
Loss (gain) on sales of other real estate
|
|
86
|
|
|
108
|
|
|
93
|
|
|||
Origination of loans held for sale
|
|
(57,418
|
)
|
|
(62,712
|
)
|
|
(68,945
|
)
|
|||
Proceeds from loans held for sale
|
|
62,098
|
|
|
66,265
|
|
|
71,010
|
|
|||
Other, net
|
|
(3,971
|
)
|
|
8,658
|
|
|
3,401
|
|
|||
NET CASH FROM OPERATING ACTIVITIES
|
|
57,448
|
|
|
50,135
|
|
|
41,192
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Sales of securities available-for-sale
|
|
—
|
|
|
9,743
|
|
|
—
|
|
|||
Calls, maturities and principal reductions on securities available-for-sale
|
|
143,157
|
|
|
141,819
|
|
|
168,506
|
|
|||
Purchases of securities available-for-sale
|
|
(124,333
|
)
|
|
(111,138
|
)
|
|
(150,893
|
)
|
|||
Loans made to customers, net of payments
|
|
(52,905
|
)
|
|
(72,463
|
)
|
|
(80,434
|
)
|
|||
Net change in federal funds sold
|
|
—
|
|
|
6,952
|
|
|
2,863
|
|
|||
Redemption of restricted stock
|
|
—
|
|
|
—
|
|
|
500
|
|
|||
Purchase of restricted stock
|
|
(11
|
)
|
|
(20
|
)
|
|
(21
|
)
|
|||
Proceeds from sale of certain assets and liabilities of insurance brokerage operation
|
|
—
|
|
|
—
|
|
|
16,895
|
|
|||
Sale of other real estate
|
|
1,781
|
|
|
1,419
|
|
|
1,583
|
|
|||
Additions to premises and equipment
|
|
(2,013
|
)
|
|
(2,979
|
)
|
|
(3,049
|
)
|
|||
NET CASH FROM INVESTING ACTIVITIES
|
|
(34,324
|
)
|
|
(26,667
|
)
|
|
(44,050
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Net change in deposits
|
|
(21,926
|
)
|
|
30,121
|
|
|
(13,906
|
)
|
|||
Net change in short-term borrowings
|
|
11,970
|
|
|
(23,303
|
)
|
|
47,158
|
|
|||
Dividends paid
|
|
(12,496
|
)
|
|
(30,556
|
)
|
|
(12,359
|
)
|
|||
Purchases of treasury stock
|
|
(391
|
)
|
|
(503
|
)
|
|
(19,396
|
)
|
|||
Proceeds from other borrowings
|
|
115,600
|
|
|
170,000
|
|
|
54,350
|
|
|||
Repayments on other borrowings
|
|
(115,600
|
)
|
|
(170,132
|
)
|
|
(66,672
|
)
|
|||
NET CASH FROM FINANCING ACTIVITIES
|
|
(22,843
|
)
|
|
(24,373
|
)
|
|
(10,825
|
)
|
|||
|
|
|
|
|
|
|
||||||
Continued
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
|
281
|
|
|
(905
|
)
|
|
(13,683
|
)
|
|||
CASH AND DUE FROM BANKS, BEGINNING OF YEAR
|
|
74,107
|
|
|
75,012
|
|
|
88,695
|
|
|||
CASH AND DUE FROM BANKS, END OF YEAR
|
|
$
|
74,388
|
|
|
$
|
74,107
|
|
|
$
|
75,012
|
|
|
|
|
|
|
|
|
||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NONCASH INFORMATION:
|
|
|
|
|
|
|
|
|
|
|||
Cash paid for the year for:
|
|
|
|
|
|
|
|
|
|
|||
Interest
|
|
$
|
9,408
|
|
|
$
|
6,337
|
|
|
$
|
4,432
|
|
Income Taxes
|
|
$
|
7,185
|
|
|
$
|
11,158
|
|
|
$
|
18,739
|
|
1.
|
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES:
|
2.
|
FAIR VALUES OF FINANCIAL INSTRUMENTS:
|
|
|
December 31, 2018
Fair Value Measurement Using
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Carrying Value
|
||||||||
U.S. Government entity mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
25,364
|
|
|
$
|
—
|
|
|
$
|
25,364
|
|
Mortgage-backed securities, residential
|
|
—
|
|
|
178,743
|
|
|
—
|
|
|
178,743
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
343,616
|
|
|
—
|
|
|
343,616
|
|
||||
State and municipal obligations
|
|
—
|
|
|
230,800
|
|
|
3,135
|
|
|
233,935
|
|
||||
Collateralized debt obligations
|
|
—
|
|
|
—
|
|
|
3,258
|
|
|
3,258
|
|
||||
TOTAL
|
|
$
|
—
|
|
|
$
|
778,523
|
|
|
$
|
6,393
|
|
|
$
|
784,916
|
|
Derivative Assets
|
|
|
|
|
$
|
218
|
|
|
|
|
|
|
|
|||
Derivative Liabilities
|
|
|
|
|
(218
|
)
|
|
|
|
|
|
|
|
|
December 31, 2017
Fair Value Measurement Using
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Carrying Value
|
||||||||
U.S. Government entity mortgage-backed securities
|
|
$
|
—
|
|
|
$
|
13,695
|
|
|
$
|
—
|
|
|
$
|
13,695
|
|
Mortgage-backed securities, residential
|
|
—
|
|
|
215,338
|
|
|
—
|
|
|
215,338
|
|
||||
Mortgage-backed securities, commercial
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
339,670
|
|
|
—
|
|
|
339,670
|
|
||||
State and municipal obligations
|
|
—
|
|
|
227,942
|
|
|
3,680
|
|
|
231,622
|
|
||||
Collateralized debt obligations
|
|
—
|
|
|
—
|
|
|
14,605
|
|
|
14,605
|
|
||||
TOTAL
|
|
$
|
—
|
|
|
$
|
796,646
|
|
|
$
|
18,285
|
|
|
$
|
814,931
|
|
Derivative Assets
|
|
|
|
|
$
|
298
|
|
|
|
|
|
|
|
|||
Derivative Liabilities
|
|
|
|
|
(298
|
)
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2018
|
||||||||||
|
|
State and municipal obligations
|
|
Collateralized debt obligations
|
|
Total
|
||||||
Beginning balance, January 1
|
|
$
|
3,680
|
|
|
$
|
14,605
|
|
|
$
|
18,285
|
|
Total realized/unrealized gains or losses
|
|
|
|
|
|
|
|
|
|
|||
Included in earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Included in other comprehensive income
|
|
—
|
|
|
(2,840
|
)
|
|
(2,840
|
)
|
|||
Purchases
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
|
(545
|
)
|
|
(8,507
|
)
|
|
(9,052
|
)
|
|||
Ending balance, December 31
|
|
$
|
3,135
|
|
|
$
|
3,258
|
|
|
$
|
6,393
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
December 31, 2017
|
||||||||||
|
|
State and
municipal
obligations
|
|
Collateralized
debt obligations
|
|
Total
|
||||||
Beginning balance, January 1
|
|
$
|
4,210
|
|
|
$
|
12,368
|
|
|
$
|
16,578
|
|
Total realized/unrealized gains or losses
|
|
|
|
|
|
|
|
|
|
|||
Included in earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Included in other comprehensive income
|
|
—
|
|
|
2,773
|
|
|
2,773
|
|
|||
Transfers
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
|
(530
|
)
|
|
(536
|
)
|
|
(1,066
|
)
|
|||
Ending balance, December 31
|
|
$
|
3,680
|
|
|
$
|
14,605
|
|
|
$
|
18,285
|
|
2018
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
|
|||
State and municipal obligations
|
|
$
|
3,135
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.64%-4.80%
|
|
|
|
|
|
|
|
|
Probability of default
|
|
—
|
%
|
|
Other real estate
|
|
$
|
603
|
|
|
Sales comparison/income approach
|
|
Discount rate for age of appraisal and market conditions
|
|
5.00%-20.00%
|
|
Impaired Loans
|
|
$
|
1,639
|
|
|
Sales comparison/income approach
|
|
Discount rate for age of appraisal and market conditions
|
|
0.00%-50.00%
|
|
2017
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
|
|||
State and municipal obligations
|
|
$
|
3,680
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.30%-5.45%
|
|
|
|
|
|
|
|
|
Probability of default
|
|
—
|
%
|
|
Other real estate
|
|
$
|
1,880
|
|
|
Sales comparison/income approach
|
|
Discount rate for age of appraisal and market conditions
|
|
5.00%-20.00%
|
|
Impaired Loans
|
|
$
|
3,882
|
|
|
Sales comparison/income approach
|
|
Discount rate for age of appraisal and market conditions
|
|
0.00%-50.00%
|
|
|
|
December 31, 2018
|
||||||||||
(Dollar amounts in thousands)
|
|
Carrying Value
|
|
Allowance
for Loan
Losses
Allocated
|
|
Fair Value
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|||
Commercial & Industrial
|
|
$
|
1,819
|
|
|
$
|
593
|
|
|
$
|
1,226
|
|
Farmland
|
|
211
|
|
|
44
|
|
|
167
|
|
|||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Agriculture
|
|
346
|
|
|
100
|
|
|
246
|
|
|||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|||
First Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
|
|
|
|||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
TOTAL
|
|
$
|
2,376
|
|
|
$
|
737
|
|
|
$
|
1,639
|
|
|
|
December 31, 2017
|
||||||||||
(Dollar amounts in thousands)
|
|
Carrying Value
|
|
Allowance
for Loan
Losses
Allocated
|
|
Fair Value
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|||
Commercial & Industrial
|
|
$
|
493
|
|
|
$
|
146
|
|
|
$
|
347
|
|
Farmland
|
|
3,035
|
|
|
268
|
|
|
2,767
|
|
|||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Agriculture
|
|
537
|
|
|
205
|
|
|
332
|
|
|||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|||
First Liens
|
|
442
|
|
|
6
|
|
|
436
|
|
|||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
|
|
|
|||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
TOTAL
|
|
$
|
4,507
|
|
|
$
|
625
|
|
|
$
|
3,882
|
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Carrying
|
|
Fair Value
|
||||||||||||||||
(Dollar amounts in thousands)
|
|
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Cash and due from banks
|
|
$
|
74,388
|
|
|
$
|
23,418
|
|
|
$
|
50,970
|
|
|
$
|
—
|
|
|
$
|
74,388
|
|
Securities available-for-sale
|
|
784,916
|
|
|
—
|
|
|
778,523
|
|
|
6,393
|
|
|
784,916
|
|
|||||
Restricted stock
|
|
10,390
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
Loans, net
|
|
1,933,552
|
|
|
—
|
|
|
—
|
|
|
1,889,795
|
|
|
1,889,795
|
|
|||||
Accrued interest receivable
|
|
13,970
|
|
|
—
|
|
|
3,005
|
|
|
10,965
|
|
|
13,970
|
|
|||||
Deposits
|
|
(2,436,727
|
)
|
|
—
|
|
|
(2,426,128
|
)
|
|
—
|
|
|
(2,426,128
|
)
|
|||||
Short-term borrowings
|
|
(69,656
|
)
|
|
—
|
|
|
(69,656
|
)
|
|
—
|
|
|
(69,656
|
)
|
|||||
Accrued interest payable
|
|
(609
|
)
|
|
—
|
|
|
(609
|
)
|
|
—
|
|
|
(609
|
)
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Carrying
|
|
Fair Value
|
||||||||||||||||
(Dollar amounts in thousands)
|
|
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Cash and due from banks
|
|
$
|
74,107
|
|
|
$
|
20,682
|
|
|
$
|
53,425
|
|
|
$
|
—
|
|
|
$
|
74,107
|
|
Securities available-for-sale
|
|
814,931
|
|
|
—
|
|
|
796,646
|
|
|
18,285
|
|
|
814,931
|
|
|||||
Restricted stock
|
|
10,379
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
Loans, net
|
|
1,886,852
|
|
|
—
|
|
|
—
|
|
|
1,878,166
|
|
|
1,878,166
|
|
|||||
Accrued interest receivable
|
|
12,913
|
|
|
—
|
|
|
3,596
|
|
|
9,317
|
|
|
12,913
|
|
|||||
Deposits
|
|
(2,458,653
|
)
|
|
—
|
|
|
(2,456,900
|
)
|
|
—
|
|
|
(2,456,900
|
)
|
|||||
Short-term borrowings
|
|
(57,686
|
)
|
|
—
|
|
|
(57,686
|
)
|
|
—
|
|
|
(57,686
|
)
|
|||||
Accrued interest payable
|
|
(372
|
)
|
|
—
|
|
|
(372
|
)
|
|
—
|
|
|
(372
|
)
|
3.
|
RESTRICTIONS ON CASH AND DUE FROM BANKS:
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Amortized
|
|
Unrealized
|
|
|
||||||||||
(Dollar amounts in thousands)
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
U.S. Government entity mortgage-backed securities
|
|
$
|
25,617
|
|
|
$
|
218
|
|
|
$
|
(471
|
)
|
|
$
|
25,364
|
|
Mortgage-backed securities, residential
|
|
182,050
|
|
|
723
|
|
|
(4,030
|
)
|
|
178,743
|
|
||||
Collateralized mortgage obligations
|
|
352,823
|
|
|
217
|
|
|
(9,424
|
)
|
|
343,616
|
|
||||
State and municipal obligations
|
|
232,457
|
|
|
2,767
|
|
|
(1,289
|
)
|
|
233,935
|
|
||||
Collateralized debt obligations
|
|
137
|
|
|
3,121
|
|
|
—
|
|
|
3,258
|
|
||||
TOTAL
|
|
$
|
793,084
|
|
|
$
|
7,046
|
|
|
$
|
(15,214
|
)
|
|
$
|
784,916
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Amortized
|
|
Unrealized
|
|
|
||||||||||
(Dollar amounts in thousands)
|
|
Cost
|
|
Gains
|
|
Losses
|
|
Fair Value
|
||||||||
U.S. Government entity mortgage-backed securities
|
|
$
|
13,989
|
|
|
$
|
24
|
|
|
$
|
(318
|
)
|
|
$
|
13,695
|
|
Mortgage-backed securities, residential
|
|
215,079
|
|
|
2,071
|
|
|
(1,812
|
)
|
|
215,338
|
|
||||
Mortgage-backed securities, commercial
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Collateralized mortgage obligations
|
|
346,005
|
|
|
370
|
|
|
(6,705
|
)
|
|
339,670
|
|
||||
State and municipal obligations
|
|
227,651
|
|
|
4,671
|
|
|
(700
|
)
|
|
231,622
|
|
||||
Collateralized debt obligations
|
|
8,644
|
|
|
5,961
|
|
|
—
|
|
|
14,605
|
|
||||
TOTAL
|
|
$
|
811,369
|
|
|
$
|
13,097
|
|
|
$
|
(9,535
|
)
|
|
$
|
814,931
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds
|
|
$
|
2,418
|
|
|
$
|
15,348
|
|
|
$
|
8,160
|
|
Gross gains
|
|
5
|
|
|
185
|
|
|
39
|
|
|||
Gross losses
|
|
(3
|
)
|
|
(126
|
)
|
|
(5
|
)
|
|
|
Available-for-Sale
|
||||||
|
|
Amortized
|
|
Fair
|
||||
(Dollar amounts in thousands)
|
|
Cost
|
|
Value
|
||||
Due in one year or less
|
|
$
|
6,490
|
|
|
$
|
6,509
|
|
Due after one but within five years
|
|
33,133
|
|
|
33,582
|
|
||
Due after five but within ten years
|
|
69,397
|
|
|
70,314
|
|
||
Due after ten years
|
|
149,191
|
|
|
152,152
|
|
||
|
|
258,211
|
|
|
262,557
|
|
||
Mortgage-backed securities and collateralized mortgage obligations
|
|
534,873
|
|
|
522,359
|
|
||
TOTAL
|
|
$
|
793,084
|
|
|
$
|
784,916
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
More Than 12 Months
|
|
Total
|
||||||||||||||||||
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
||||||||||||
(Dollar amounts in thousands)
|
|
Fair Value
|
|
Losses
|
|
Fair Value
|
|
Losses
|
|
Fair Value
|
|
Losses
|
||||||||||||
U.S. Government entity mortgage-backed securities
|
|
$
|
3,052
|
|
|
$
|
(4
|
)
|
|
11,356
|
|
|
(467
|
)
|
|
$
|
14,408
|
|
|
$
|
(471
|
)
|
||
Mortgage-backed securities, residential
|
|
39,997
|
|
|
(553
|
)
|
|
111,423
|
|
|
(3,477
|
)
|
|
151,420
|
|
|
(4,030
|
)
|
||||||
Collateralized mortgage obligations
|
|
52,838
|
|
|
(455
|
)
|
|
241,373
|
|
|
(8,969
|
)
|
|
294,211
|
|
|
(9,424
|
)
|
||||||
State and municipal obligations
|
|
34,229
|
|
|
(276
|
)
|
|
41,742
|
|
|
(1,013
|
)
|
|
75,971
|
|
|
(1,289
|
)
|
||||||
Total temporarily impaired securities
|
|
$
|
130,116
|
|
|
$
|
(1,288
|
)
|
|
$
|
405,894
|
|
|
$
|
(13,926
|
)
|
|
$
|
536,010
|
|
|
$
|
(15,214
|
)
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Less Than 12 Months
|
|
More Than 12 Months
|
|
Total
|
||||||||||||||||||
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
|
|
|
Unrealized
|
||||||||||||
(Dollar amounts in thousands)
|
|
Fair Value
|
|
Losses
|
|
Fair Value
|
|
Losses
|
|
Fair Value
|
|
Losses
|
||||||||||||
U.S. Government entity mortgage-backed securities
|
|
$
|
9,321
|
|
|
$
|
(86
|
)
|
|
$
|
3,538
|
|
|
$
|
(232
|
)
|
|
$
|
12,859
|
|
|
$
|
(318
|
)
|
Mortgage-backed securities, residential
|
|
79,918
|
|
|
(425
|
)
|
|
53,815
|
|
|
(1,387
|
)
|
|
133,733
|
|
|
(1,812
|
)
|
||||||
Collateralized mortgage obligations
|
|
150,182
|
|
|
(1,418
|
)
|
|
146,750
|
|
|
(5,287
|
)
|
|
296,932
|
|
|
(6,705
|
)
|
||||||
State and municipal obligations
|
|
27,347
|
|
|
(183
|
)
|
|
18,660
|
|
|
(517
|
)
|
|
46,007
|
|
|
(700
|
)
|
||||||
Total temporarily impaired securities
|
|
$
|
266,768
|
|
|
$
|
(2,112
|
)
|
|
$
|
222,763
|
|
|
$
|
(7,423
|
)
|
|
$
|
489,531
|
|
|
$
|
(9,535
|
)
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Beginning balance, January 1,
|
|
$
|
7,132
|
|
|
$
|
13,974
|
|
|
$
|
13,995
|
|
Amounts related to credit loss for which other-than-
|
|
|
|
|
|
|
|
|
|
|||
temporary impairment was not previously recognized
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reductions for securities called during the period
|
|
(4,158
|
)
|
|
(6,842
|
)
|
|
|
|
|||
Reductions for increase in cash flows expected to be collected
|
|
|
|
|
|
|
|
|
|
|||
that are recognized over the remaining life of the security
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
|||
Increases to the amount related to the credit loss for which other-
|
|
|
|
|
|
|
|
|
|
|||
than-temporary impairment was previously recognized
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Ending balance, December 31,
|
|
$
|
2,974
|
|
|
$
|
7,132
|
|
|
$
|
13,974
|
|
|
|
December 31,
|
||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Commercial
|
|
$
|
1,166,352
|
|
|
$
|
1,139,490
|
|
Residential
|
|
443,670
|
|
|
436,143
|
|
||
Consumer
|
|
341,041
|
|
|
327,976
|
|
||
Total gross loans
|
|
1,951,063
|
|
|
1,903,609
|
|
||
Deferred costs, net
|
|
2,925
|
|
|
3,152
|
|
||
Allowance for loan losses
|
|
(20,436
|
)
|
|
(19,909
|
)
|
||
TOTAL
|
|
$
|
1,933,552
|
|
|
$
|
1,886,852
|
|
|
|
December 31,
|
||||||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Servicing rights:
|
|
|
|
|
|
|
|
|
|
|||
Beginning of year
|
|
$
|
1,434
|
|
|
$
|
1,549
|
|
|
$
|
1,746
|
|
Additions
|
|
513
|
|
|
477
|
|
|
480
|
|
|||
Amortized to expense
|
|
(516
|
)
|
|
(592
|
)
|
|
(677
|
)
|
|||
End of year
|
|
$
|
1,431
|
|
|
$
|
1,434
|
|
|
$
|
1,549
|
|
6.
|
ACQUISITIONS, DIVESTITURES AND FDIC INDEMNIFICATION ASSET:
|
|
|
|
|
|
|
2018
|
||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Beginning balance
|
|
$
|
1,896
|
|
|
$
|
—
|
|
|
$
|
1,896
|
|
Discount accretion
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Disposals
|
|
(366
|
)
|
|
—
|
|
|
(366
|
)
|
|||
ASC 310-30 Loans
|
|
$
|
1,530
|
|
|
$
|
—
|
|
|
$
|
1,530
|
|
|
|
|
|
|
|
2017
|
||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Beginning balance
|
|
$
|
3,451
|
|
|
$
|
1,430
|
|
|
$
|
4,881
|
|
Discount accretion
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Disposals
|
|
(1,555
|
)
|
|
(1,430
|
)
|
|
(2,985
|
)
|
|||
ASC 310-30 Loans
|
|
$
|
1,896
|
|
|
$
|
—
|
|
|
$
|
1,896
|
|
Allowance for Loan Losses:
|
|
|
|
December 31, 2018
|
|
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
10,281
|
|
|
$
|
1,455
|
|
|
$
|
6,709
|
|
|
$
|
1,464
|
|
|
$
|
19,909
|
|
Provision for loan losses
|
|
83
|
|
|
60
|
|
|
5,295
|
|
|
330
|
|
|
5,768
|
|
|||||
Loans charged -off
|
|
(1,122
|
)
|
|
(841
|
)
|
|
(6,868
|
)
|
|
—
|
|
|
(8,831
|
)
|
|||||
Recoveries
|
|
606
|
|
|
639
|
|
|
2,345
|
|
|
—
|
|
|
3,590
|
|
|||||
Ending Balance
|
|
$
|
9,848
|
|
|
$
|
1,313
|
|
|
$
|
7,481
|
|
|
$
|
1,794
|
|
|
$
|
20,436
|
|
Allowance for Loan Losses:
|
|
|
|
December 31, 2017
|
|
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
9,731
|
|
|
$
|
1,553
|
|
|
$
|
5,767
|
|
|
$
|
1,722
|
|
|
$
|
18,773
|
|
Provision for loan losses
|
|
745
|
|
|
(179
|
)
|
|
4,987
|
|
|
(258
|
)
|
|
5,295
|
|
|||||
Loans charged -off
|
|
(1,572
|
)
|
|
(761
|
)
|
|
(6,429
|
)
|
|
—
|
|
|
(8,762
|
)
|
|||||
Recoveries
|
|
1,377
|
|
|
842
|
|
|
2,384
|
|
|
—
|
|
|
4,603
|
|
|||||
Ending Balance
|
|
$
|
10,281
|
|
|
$
|
1,455
|
|
|
$
|
6,709
|
|
|
$
|
1,464
|
|
|
$
|
19,909
|
|
Allowance for Loan Losses:
|
|
|
|
December 31, 2016
|
|
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
11,482
|
|
|
$
|
1,834
|
|
|
$
|
4,945
|
|
|
$
|
1,685
|
|
|
$
|
19,946
|
|
Provision for loan losses
|
|
(755
|
)
|
|
54
|
|
|
3,964
|
|
|
37
|
|
|
3,300
|
|
|||||
Loans charged -off
|
|
(2,659
|
)
|
|
(1,011
|
)
|
|
(5,279
|
)
|
|
—
|
|
|
(8,949
|
)
|
|||||
Recoveries
|
|
1,663
|
|
|
676
|
|
|
2,137
|
|
|
—
|
|
|
4,476
|
|
|||||
Ending Balance
|
|
$
|
9,731
|
|
|
$
|
1,553
|
|
|
$
|
5,767
|
|
|
$
|
1,722
|
|
|
$
|
18,773
|
|
Allowance for Loan Losses:
|
|
|
|
December 31, 2018
|
|
|
|
|
||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Individually evaluated for impairment
|
|
$
|
737
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
737
|
|
Collectively evaluated for impairment
|
|
9,111
|
|
|
1,313
|
|
|
7,481
|
|
|
1,794
|
|
|
19,699
|
|
|||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
BALANCE AT END OF YEAR
|
|
$
|
9,848
|
|
|
$
|
1,313
|
|
|
$
|
7,481
|
|
|
$
|
1,794
|
|
|
$
|
20,436
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
|
|
Total
|
||||||||||
Individually evaluated for impairment
|
|
$
|
6,101
|
|
|
$
|
4,415
|
|
|
$
|
—
|
|
|
|
|
|
$
|
10,516
|
|
|
Collectively evaluated for impairment
|
|
1,166,227
|
|
|
440,497
|
|
|
342,473
|
|
|
|
|
|
1,949,197
|
|
|||||
Acquired with deteriorated credit quality
|
|
1,495
|
|
|
—
|
|
|
—
|
|
|
|
|
|
1,495
|
|
|||||
BALANCE AT END OF YEAR
|
|
$
|
1,173,823
|
|
|
$
|
444,912
|
|
|
$
|
342,473
|
|
|
|
|
|
$
|
1,961,208
|
|
Allowance for Loan Losses:
|
|
|
|
December 31, 2017
|
|
|
|
|
||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Individually evaluated for impairment
|
|
$
|
619
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
625
|
|
Collectively evaluated for impairment
|
|
9,662
|
|
|
1,449
|
|
|
6,709
|
|
|
1,464
|
|
|
19,284
|
|
|||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
BALANCE AT END OF YEAR
|
|
$
|
10,281
|
|
|
$
|
1,455
|
|
|
$
|
6,709
|
|
|
$
|
1,464
|
|
|
$
|
19,909
|
|
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
|
Residential
|
|
|
Consumer
|
|
|
|
|
|
Total
|
|
|||||
Individually evaluated for impairment
|
|
$
|
9,619
|
|
|
$
|
463
|
|
|
$
|
—
|
|
|
|
|
|
$
|
10,082
|
|
|
Collectively evaluated for impairment
|
|
1,134,701
|
|
|
436,944
|
|
|
329,435
|
|
|
|
|
|
1,901,080
|
|
|||||
Acquired with deteriorated credit quality
|
|
1,860
|
|
|
—
|
|
|
—
|
|
|
|
|
|
1,860
|
|
|||||
BALANCE AT END OF YEAR
|
|
$
|
1,146,180
|
|
|
$
|
437,407
|
|
|
$
|
329,435
|
|
|
|
|
|
$
|
1,913,022
|
|
December 31, 2018
|
|
|
|
|
|
Allowance
|
|
|
|
|
|
Cash Basis
|
||||||||||||
|
|
Unpaid
|
|
|
|
for Loan
|
|
Average
|
|
Interest
|
|
Interest
|
||||||||||||
|
|
Principal
|
|
Recorded
|
|
Losses
|
|
Recorded
|
|
Income
|
|
Income
|
||||||||||||
|
|
Balance
|
|
Investment
|
|
Allocated
|
|
Investment
|
|
Recognized
|
|
Recognized
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
589
|
|
|
$
|
589
|
|
|
$
|
—
|
|
|
$
|
698
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
2,022
|
|
|
2,022
|
|
|
—
|
|
|
1,579
|
|
|
—
|
|
|
—
|
|
||||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,443
|
|
|
—
|
|
|
—
|
|
||||||
Agriculture
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
||||||
All Other Commercial
|
|
1,114
|
|
|
1,114
|
|
|
—
|
|
|
1,172
|
|
|
—
|
|
|
—
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
4,415
|
|
|
4,415
|
|
|
—
|
|
|
3,371
|
|
|
—
|
|
|
—
|
|
||||||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
1,819
|
|
|
1,819
|
|
|
593
|
|
|
688
|
|
|
—
|
|
|
—
|
|
||||||
Farmland
|
|
211
|
|
|
211
|
|
|
44
|
|
|
1,691
|
|
|
—
|
|
|
—
|
|
||||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
||||||
Agriculture
|
|
346
|
|
|
346
|
|
|
100
|
|
|
316
|
|
|
—
|
|
|
—
|
|
||||||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
—
|
|
||||||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
TOTAL
|
|
$
|
10,516
|
|
|
$
|
10,516
|
|
|
$
|
737
|
|
|
$
|
11,118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2017
|
|
|
|
|
|
Allowance
|
|
|
|
|
|
Cash Basis
|
||||||||||||
|
|
Unpaid
|
|
|
|
for Loan
|
|
Average
|
|
Interest
|
|
Interest
|
||||||||||||
|
|
Principal
|
|
Recorded
|
|
Losses
|
|
Recorded
|
|
Income
|
|
Income
|
||||||||||||
|
|
Balance
|
|
Investment
|
|
Allocated
|
|
Investment
|
|
Recognized
|
|
Recognized
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
802
|
|
|
$
|
802
|
|
|
$
|
—
|
|
|
$
|
971
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
930
|
|
|
930
|
|
|
—
|
|
|
1,265
|
|
|
—
|
|
|
—
|
|
||||||
Non Farm, Non Residential
|
|
2,461
|
|
|
2,461
|
|
|
—
|
|
|
2,781
|
|
|
—
|
|
|
—
|
|
||||||
Agriculture
|
|
123
|
|
|
123
|
|
|
—
|
|
|
239
|
|
|
—
|
|
|
—
|
|
||||||
All Other Commercial
|
|
1,238
|
|
|
1,238
|
|
|
—
|
|
|
1,308
|
|
|
—
|
|
|
—
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
21
|
|
|
21
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
||||||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
493
|
|
|
493
|
|
|
146
|
|
|
514
|
|
|
—
|
|
|
—
|
|
||||||
Farmland
|
|
3,035
|
|
|
3,035
|
|
|
268
|
|
|
669
|
|
|
—
|
|
|
—
|
|
||||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
131
|
|
|
|
|
|
—
|
|
||||||
Agriculture
|
|
738
|
|
|
537
|
|
|
205
|
|
|
279
|
|
|
—
|
|
|
—
|
|
||||||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
442
|
|
|
442
|
|
|
6
|
|
|
483
|
|
|
—
|
|
|
—
|
|
||||||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
TOTAL
|
|
$
|
10,283
|
|
|
$
|
10,082
|
|
|
$
|
625
|
|
|
$
|
8,663
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2016
|
|
|
|
|
|
Cash Basis
|
||||||
|
|
Average
|
|
Interest
|
|
Interest
|
||||||
|
|
Recorded
|
|
Income
|
|
Income
|
||||||
|
|
Investment
|
|
Recognized
|
|
Recognized
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
|
|
|
|
|
|
|
|
|||
Commercial & Industrial
|
|
$
|
981
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
770
|
|
|
—
|
|
|
—
|
|
|||
Non Farm, Non Residential
|
|
3,096
|
|
|
—
|
|
|
—
|
|
|||
Agriculture
|
|
351
|
|
|
—
|
|
|
—
|
|
|||
All Other Commercial
|
|
1,477
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|||
First Liens
|
|
27
|
|
|
—
|
|
|
—
|
|
|||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
|
|
|
|||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
|
|
|
|
|
|
|
|
|||
Commercial & Industrial
|
|
819
|
|
|
—
|
|
|
—
|
|
|||
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Non Farm, Non Residential
|
|
1,016
|
|
|
|
|
|
—
|
|
|||
Agriculture
|
|
114
|
|
|
—
|
|
|
—
|
|
|||
All Other Commercial
|
|
45
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|||
First Liens
|
|
647
|
|
|
—
|
|
|
—
|
|
|||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
|
|
|
|||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
TOTAL
|
|
$
|
9,343
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Loans Past
|
|
Troubled Debt
|
|
|
||||||||||
|
|
Due Over
90 Day Still
|
|
Restructured
|
|
|
||||||||||
(Dollar amounts in thousands)
|
|
Accruing
|
|
Accrual
|
|
Non-accrual
|
|
Non-accrual
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial & Industrial
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
144
|
|
|
$
|
2,902
|
|
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,391
|
|
||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||||
Agriculture
|
|
—
|
|
|
—
|
|
|
—
|
|
|
355
|
|
||||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,122
|
|
||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|||||
First Liens
|
|
581
|
|
|
3,327
|
|
|
531
|
|
|
3,393
|
|
||||
Home Equity
|
|
41
|
|
|
—
|
|
|
—
|
|
|
75
|
|
||||
Junior Liens
|
|
53
|
|
|
55
|
|
|
—
|
|
|
86
|
|
||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Motor Vehicle
|
|
177
|
|
|
1
|
|
|
—
|
|
|
125
|
|
||||
All Other Consumer
|
|
—
|
|
|
268
|
|
|
349
|
|
|
380
|
|
||||
TOTAL
|
|
$
|
852
|
|
|
$
|
3,652
|
|
|
$
|
1,024
|
|
|
$
|
10,974
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Loans Past
|
|
Troubled Debt
|
|
|
||||||||||
|
|
Due Over
90 Day Still
|
|
Restructured
|
|
|
||||||||||
(Dollar amounts in thousands)
|
|
Accruing
|
|
Accrual
|
|
Non-accrual
|
|
Non-accrual
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial & Industrial
|
|
$
|
41
|
|
|
$
|
2
|
|
|
$
|
212
|
|
|
$
|
1,679
|
|
Farmland
|
|
19
|
|
|
—
|
|
|
—
|
|
|
4,141
|
|
||||
Non Farm, Non Residential
|
|
—
|
|
|
56
|
|
|
2,440
|
|
|
172
|
|
||||
Agriculture
|
|
—
|
|
|
—
|
|
|
—
|
|
|
707
|
|
||||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,236
|
|
||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|||||
First Liens
|
|
1,011
|
|
|
3,105
|
|
|
575
|
|
|
3,972
|
|
||||
Home Equity
|
|
8
|
|
|
—
|
|
|
—
|
|
|
249
|
|
||||
Junior Liens
|
|
137
|
|
|
—
|
|
|
—
|
|
|
134
|
|
||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Motor Vehicle
|
|
268
|
|
|
9
|
|
|
—
|
|
|
242
|
|
||||
All Other Consumer
|
|
—
|
|
|
177
|
|
|
527
|
|
|
623
|
|
||||
TOTAL
|
|
$
|
1,484
|
|
|
$
|
3,349
|
|
|
$
|
3,754
|
|
|
$
|
13,245
|
|
|
|
|
|
|
|
|
|
2018
|
||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
January 1,
|
|
$
|
2,709
|
|
|
$
|
3,611
|
|
|
$
|
714
|
|
|
$
|
7,034
|
|
Added
|
|
—
|
|
|
984
|
|
|
295
|
|
|
1,279
|
|
||||
Charged Off
|
|
—
|
|
|
(16
|
)
|
|
(137
|
)
|
|
(153
|
)
|
||||
Payments
|
|
(2,564
|
)
|
|
(536
|
)
|
|
(254
|
)
|
|
(3,354
|
)
|
||||
December 31,
|
|
$
|
145
|
|
|
$
|
4,043
|
|
|
$
|
618
|
|
|
$
|
4,806
|
|
|
|
|
|
|
|
|
|
2017
|
||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
January 1,
|
|
$
|
3,386
|
|
|
$
|
4,447
|
|
|
$
|
732
|
|
|
$
|
8,565
|
|
Added
|
|
—
|
|
|
227
|
|
|
386
|
|
|
613
|
|
||||
Charged Off
|
|
—
|
|
|
(289
|
)
|
|
(141
|
)
|
|
(430
|
)
|
||||
Payments
|
|
(677
|
)
|
|
(774
|
)
|
|
(263
|
)
|
|
(1,714
|
)
|
||||
December 31,
|
|
$
|
2,709
|
|
|
$
|
3,611
|
|
|
$
|
714
|
|
|
$
|
7,034
|
|
|
|
|
|
|
|
|
|
2016
|
||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
January 1,
|
|
$
|
3,584
|
|
|
$
|
5,593
|
|
|
$
|
683
|
|
|
$
|
9,860
|
|
Added
|
|
—
|
|
|
123
|
|
|
369
|
|
|
492
|
|
||||
Charged Off
|
|
—
|
|
|
(321
|
)
|
|
(70
|
)
|
|
(391
|
)
|
||||
Payments
|
|
(198
|
)
|
|
(948
|
)
|
|
(250
|
)
|
|
(1,396
|
)
|
||||
December 31,
|
|
$
|
3,386
|
|
|
$
|
4,447
|
|
|
$
|
732
|
|
|
$
|
8,565
|
|
|
|
|
|
|
|
Greater
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
30-59 Days
|
|
60-89 Days
|
|
than 90 days
|
|
Total
|
|
|
|
|
||||||||||||
(Dollar amounts in thousands)
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
1,017
|
|
|
$
|
420
|
|
|
$
|
345
|
|
|
$
|
1,782
|
|
|
$
|
518,239
|
|
|
$
|
520,021
|
|
Farmland
|
|
515
|
|
|
8
|
|
|
2,136
|
|
|
2,659
|
|
|
104,981
|
|
|
107,640
|
|
||||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
57
|
|
|
57
|
|
|
188,706
|
|
|
188,763
|
|
||||||
Agriculture
|
|
41
|
|
|
—
|
|
|
347
|
|
|
388
|
|
|
148,345
|
|
|
148,733
|
|
||||||
All Other Commercial
|
|
30
|
|
|
3
|
|
|
—
|
|
|
33
|
|
|
208,633
|
|
|
208,666
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
3,365
|
|
|
429
|
|
|
1,473
|
|
|
5,267
|
|
|
231,684
|
|
|
236,951
|
|
||||||
Home Equity
|
|
155
|
|
|
8
|
|
|
110
|
|
|
273
|
|
|
39,378
|
|
|
39,651
|
|
||||||
Junior Liens
|
|
132
|
|
|
225
|
|
|
63
|
|
|
420
|
|
|
49,111
|
|
|
49,531
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109,609
|
|
|
109,609
|
|
||||||
All Other Residential
|
|
—
|
|
|
9
|
|
|
15
|
|
|
24
|
|
|
9,146
|
|
|
9,170
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
4,766
|
|
|
609
|
|
|
177
|
|
|
5,552
|
|
|
309,238
|
|
|
314,790
|
|
||||||
All Other Consumer
|
|
208
|
|
|
7
|
|
|
12
|
|
|
227
|
|
|
27,456
|
|
|
27,683
|
|
||||||
TOTAL
|
|
$
|
10,229
|
|
|
$
|
1,718
|
|
|
$
|
4,735
|
|
|
$
|
16,682
|
|
|
$
|
1,944,526
|
|
|
$
|
1,961,208
|
|
|
|
|
|
|
|
Greater
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
30-59 Days
|
|
60-89 Days
|
|
than 90 days
|
|
Total
|
|
|
|
|
||||||||||||
(Dollar amounts in thousands)
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
372
|
|
|
$
|
80
|
|
|
$
|
640
|
|
|
$
|
1,092
|
|
|
$
|
474,709
|
|
|
$
|
475,801
|
|
Farmland
|
|
341
|
|
|
—
|
|
|
3,671
|
|
|
4,012
|
|
|
104,457
|
|
|
108,469
|
|
||||||
Non Farm, Non Residential
|
|
141
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
200,804
|
|
|
200,945
|
|
||||||
Agriculture
|
|
141
|
|
|
—
|
|
|
561
|
|
|
702
|
|
|
152,388
|
|
|
153,090
|
|
||||||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
207,875
|
|
|
207,875
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
5,467
|
|
|
1,317
|
|
|
1,434
|
|
|
8,218
|
|
|
247,029
|
|
|
255,247
|
|
||||||
Home Equity
|
|
310
|
|
|
46
|
|
|
8
|
|
|
364
|
|
|
35,752
|
|
|
36,116
|
|
||||||
Junior Liens
|
|
274
|
|
|
106
|
|
|
194
|
|
|
574
|
|
|
41,688
|
|
|
42,262
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90,141
|
|
|
90,141
|
|
||||||
All Other Residential
|
|
300
|
|
|
—
|
|
|
12
|
|
|
312
|
|
|
13,329
|
|
|
13,641
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
4,770
|
|
|
697
|
|
|
294
|
|
|
5,761
|
|
|
298,211
|
|
|
303,972
|
|
||||||
All Other Consumer
|
|
107
|
|
|
22
|
|
|
—
|
|
|
129
|
|
|
25,334
|
|
|
25,463
|
|
||||||
TOTAL
|
|
$
|
12,223
|
|
|
$
|
2,268
|
|
|
$
|
6,814
|
|
|
$
|
21,305
|
|
|
$
|
1,891,717
|
|
|
$
|
1,913,022
|
|
December 31, 2018
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
||||||||||||
(Dollar amounts in thousands)
|
|
Pass
|
|
Mention
|
|
Substandard
|
|
Doubtful
|
|
Not Rated
|
|
Total
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
472,008
|
|
|
$
|
20,600
|
|
|
$
|
18,374
|
|
|
$
|
—
|
|
|
$
|
7,428
|
|
|
$
|
518,410
|
|
Farmland
|
|
90,367
|
|
|
7,587
|
|
|
7,783
|
|
|
—
|
|
|
19
|
|
|
105,756
|
|
||||||
Non Farm, Non Residential
|
|
170,757
|
|
|
5,442
|
|
|
10,439
|
|
|
—
|
|
|
1,695
|
|
|
188,333
|
|
||||||
Agriculture
|
|
118,952
|
|
|
10,010
|
|
|
16,637
|
|
|
—
|
|
|
457
|
|
|
146,056
|
|
||||||
All Other Commercial
|
|
198,302
|
|
|
43
|
|
|
6,777
|
|
|
—
|
|
|
2,675
|
|
|
207,797
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
43,915
|
|
|
1,043
|
|
|
3,504
|
|
|
—
|
|
|
187,685
|
|
|
236,147
|
|
||||||
Home Equity
|
|
963
|
|
|
—
|
|
|
148
|
|
|
—
|
|
|
38,471
|
|
|
39,582
|
|
||||||
Junior Liens
|
|
1,983
|
|
|
74
|
|
|
224
|
|
|
76
|
|
|
47,060
|
|
|
49,417
|
|
||||||
Multifamily
|
|
109,361
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
109,378
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
9,131
|
|
|
9,146
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
627
|
|
|
—
|
|
|
312,863
|
|
|
313,490
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
27,517
|
|
|
27,551
|
|
||||||
TOTAL
|
|
$
|
1,206,608
|
|
|
$
|
44,799
|
|
|
$
|
64,562
|
|
|
$
|
76
|
|
|
$
|
635,018
|
|
|
$
|
1,951,063
|
|
December 31, 2017
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
||||||||||||
(Dollar amounts in thousands)
|
|
Pass
|
|
Mention
|
|
Substandard
|
|
Doubtful
|
|
Not Rated
|
|
Total
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
430,015
|
|
|
$
|
19,889
|
|
|
$
|
18,611
|
|
|
$
|
38
|
|
|
$
|
5,947
|
|
|
$
|
474,500
|
|
Farmland
|
|
88,338
|
|
|
10,782
|
|
|
7,466
|
|
|
—
|
|
|
10
|
|
|
106,596
|
|
||||||
Non Farm, Non Residential
|
|
179,181
|
|
|
7,689
|
|
|
13,632
|
|
|
—
|
|
|
—
|
|
|
200,502
|
|
||||||
Agriculture
|
|
111,724
|
|
|
17,482
|
|
|
21,388
|
|
|
—
|
|
|
342
|
|
|
150,936
|
|
||||||
All Other Commercial
|
|
194,170
|
|
|
2,723
|
|
|
7,459
|
|
|
—
|
|
|
2,604
|
|
|
206,956
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
45,320
|
|
|
750
|
|
|
3,980
|
|
|
5
|
|
|
204,329
|
|
|
254,384
|
|
||||||
Home Equity
|
|
319
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
35,653
|
|
|
36,036
|
|
||||||
Junior Liens
|
|
1,882
|
|
|
76
|
|
|
342
|
|
|
100
|
|
|
39,755
|
|
|
42,155
|
|
||||||
Multifamily
|
|
89,936
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
89,972
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
13,529
|
|
|
13,596
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
731
|
|
|
—
|
|
|
301,900
|
|
|
302,631
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
25,301
|
|
|
25,345
|
|
||||||
TOTAL
|
|
$
|
1,140,885
|
|
|
$
|
59,391
|
|
|
$
|
73,784
|
|
|
$
|
143
|
|
|
$
|
629,406
|
|
|
$
|
1,903,609
|
|
8.
|
PREMISES AND EQUIPMENT:
|
|
|
December 31,
|
||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Land
|
|
$
|
11,975
|
|
|
$
|
12,118
|
|
Building and leasehold improvements
|
|
56,061
|
|
|
55,854
|
|
||
Furniture and equipment
|
|
44,772
|
|
|
46,399
|
|
||
|
|
112,808
|
|
|
114,371
|
|
||
Less accumulated depreciation
|
|
(66,254
|
)
|
|
(66,099
|
)
|
||
TOTAL
|
|
$
|
46,554
|
|
|
$
|
48,272
|
|
2019
|
$
|
839
|
|
2020
|
671
|
|
|
2021
|
572
|
|
|
2022
|
446
|
|
|
2023
|
398
|
|
|
Thereafter
|
944
|
|
|
|
$
|
3,870
|
|
9.
|
GOODWILL AND INTANGIBLE ASSETS:
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
Gross
|
|
Accumulated
|
|
Gross
|
|
Accumulated
|
||||||||
(Dollar amounts in thousands)
|
|
Amount
|
|
Amortization
|
|
Amount
|
|
Amortization
|
||||||||
Core deposit intangible
|
|
$
|
10,836
|
|
|
$
|
9,639
|
|
|
$
|
10,836
|
|
|
$
|
9,206
|
|
|
|
$
|
10,836
|
|
|
$
|
9,639
|
|
|
$
|
10,836
|
|
|
$
|
9,206
|
|
|
In thousands
|
|
|
2019
|
$
|
350
|
|
2020
|
252
|
|
|
2021
|
232
|
|
|
2022
|
224
|
|
|
2023
|
139
|
|
10.
|
DEPOSITS:
|
(dollar amounts in thousands)
|
|
||
2019
|
$
|
172,270
|
|
2020
|
55,804
|
|
|
2021
|
29,465
|
|
|
2022
|
29,084
|
|
|
2023
|
13,960
|
|
11.
|
SHORT-TERM BORROWINGS:
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Federal funds purchased
|
|
$
|
43,250
|
|
|
$
|
30,165
|
|
Repurchase-agreements
|
|
26,406
|
|
|
27,521
|
|
||
|
|
$
|
69,656
|
|
|
$
|
57,686
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Average amount outstanding
|
|
$
|
41,557
|
|
|
$
|
39,704
|
|
Maximum amount outstanding at a month end
|
|
69,656
|
|
|
85,714
|
|
||
Average interest rate during year
|
|
1.24
|
%
|
|
0.62
|
%
|
||
Interest rate at year-end
|
|
1.86
|
%
|
|
0.96
|
%
|
|
|
December 31, 2018
|
||||||||||||||||||
Repurchase Agreements and Repurchase to Maturity Transactions
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
(Dollar amounts in thousands)
|
|
Overnight and continuous
|
|
Up to 30 days
|
|
30 - 90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations
|
|
$
|
10,870
|
|
|
$
|
6,307
|
|
|
$
|
8,683
|
|
|
$
|
546
|
|
|
$
|
26,406
|
|
|
|
December 31, 2017
|
||||||||||||||||||
Repurchase Agreements and Repurchase to Maturity Transactions
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
(Dollar amounts in thousands)
|
|
Overnight and continuous
|
|
Up to 30 days
|
|
30 - 90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
Mortgage Backed Securities - Residential and Collateralized Mortgage Obligations
|
|
$
|
11,929
|
|
|
$
|
6,282
|
|
|
$
|
8,552
|
|
|
$
|
758
|
|
|
$
|
27,521
|
|
12.
|
OTHER BORROWINGS:
|
|
|
|
|
|
|
|
13.
|
REVENUE FROM CONTRACTS WITH CUSTOMERS:
|
|
|
Years Ended December 31,
|
||||||
(Dollar amounts in thousands)
|
2018
|
|
2017
(c)
|
|||||
Non-interest income
|
|
|
|
|||||
|
Service charges on deposits
|
$
|
13,263
|
|
|
$
|
13,285
|
|
|
Asset management fees
|
4,720
|
|
|
4,682
|
|
||
|
Interchange income
|
296
|
|
|
225
|
|
||
|
Net gains on sales of loans
(a)
|
1,829
|
|
|
1,688
|
|
||
|
Loan servicing fees
(a)
|
1,609
|
|
|
1,467
|
|
||
|
Net gains on sales of securities
(a)
|
2
|
|
|
59
|
|
||
|
Other service charges and fees
(a)
|
9,422
|
|
|
9,251
|
|
||
|
Other
(b)
|
7,065
|
|
|
5,281
|
|
||
|
Total non-interest income
|
$
|
38,206
|
|
|
$
|
35,938
|
|
14.
|
INCOME TAXES:
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Federal:
|
|
|
|
|
|
|
|
|
|
|||
Currently payable
|
|
$
|
7,018
|
|
|
$
|
8,303
|
|
|
$
|
15,514
|
|
Deferred
|
|
1,793
|
|
|
3,756
|
|
|
1,326
|
|
|||
Expense due to enactment of federal tax reform
|
|
—
|
|
|
6,282
|
|
|
—
|
|
|||
|
|
8,811
|
|
|
18,341
|
|
|
16,840
|
|
|||
State:
|
|
|
|
|
|
|
|
|
|
|||
Currently payable
|
|
1,699
|
|
|
1,818
|
|
|
2,857
|
|
|||
Deferred
|
|
635
|
|
|
463
|
|
|
186
|
|
|||
|
|
2,334
|
|
|
2,281
|
|
|
3,043
|
|
|||
TOTAL
|
|
$
|
11,145
|
|
|
$
|
20,622
|
|
|
$
|
19,883
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Federal income taxes computed at the statutory rate
|
|
$
|
12,122
|
|
|
$
|
17,414
|
|
|
$
|
20,403
|
|
Add (deduct) tax effect of:
|
|
|
|
|
|
|
|
|
|
|||
Tax exempt income
|
|
(2,495
|
)
|
|
(4,102
|
)
|
|
(3,992
|
)
|
|||
Non-deductible insurance brokerage goodwill
|
|
—
|
|
|
—
|
|
|
1,797
|
|
|||
ESOP dividend deduction
|
|
(103
|
)
|
|
(102
|
)
|
|
(47
|
)
|
|||
State tax, net of federal benefit
|
|
1,846
|
|
|
1,483
|
|
|
1,978
|
|
|||
Affordable housing credits
|
|
(148
|
)
|
|
(148
|
)
|
|
(148
|
)
|
|||
Expense due to enactment of federal tax reform
|
|
—
|
|
|
6,282
|
|
|
—
|
|
|||
Other, net
|
|
(77
|
)
|
|
(205
|
)
|
|
(108
|
)
|
|||
TOTAL
|
|
$
|
11,145
|
|
|
$
|
20,622
|
|
|
$
|
19,883
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
|
|
|
||
Other than temporary impairment
|
|
$
|
761
|
|
|
$
|
1,829
|
|
Net unrealized losses on retirement plans
|
|
5,783
|
|
|
6,609
|
|
||
Net unrealized losses on securities available for sale
|
|
2,063
|
|
|
—
|
|
||
Loan loss provisions
|
|
5,463
|
|
|
5,195
|
|
||
Deferred compensation
|
|
2,883
|
|
|
3,661
|
|
||
Compensated absences
|
|
576
|
|
|
563
|
|
||
Post-retirement benefits
|
|
1,338
|
|
|
1,359
|
|
||
Deferred loss on acquisition
|
|
577
|
|
|
663
|
|
||
Other
|
|
2,140
|
|
|
2,123
|
|
||
GROSS DEFERRED ASSETS
|
|
21,584
|
|
|
22,002
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
|||
Net unrealized gains on securities available-for-sale
|
|
—
|
|
|
(804
|
)
|
||
Depreciation
|
|
(2,004
|
)
|
|
(1,989
|
)
|
||
Mortgage servicing rights
|
|
(319
|
)
|
|
(308
|
)
|
||
Pensions
|
|
(335
|
)
|
|
(201
|
)
|
||
Intangibles
|
|
(2,852
|
)
|
|
(2,446
|
)
|
||
Other
|
|
(2,614
|
)
|
|
(2,408
|
)
|
||
GROSS DEFERRED LIABILITIES
|
|
(8,124
|
)
|
|
(8,156
|
)
|
||
NET DEFERRED TAX ASSETS
|
|
$
|
13,460
|
|
|
$
|
13,846
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Balance at January 1
|
|
$
|
825
|
|
|
$
|
698
|
|
|
$
|
513
|
|
Additions based on tax positions related to the current year
|
|
174
|
|
|
257
|
|
|
288
|
|
|||
Additions based on tax positions related to prior years
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reductions due to the statute of limitations
|
|
(77
|
)
|
|
(130
|
)
|
|
(103
|
)
|
|||
Balance at December 31
|
|
$
|
922
|
|
|
$
|
825
|
|
|
$
|
698
|
|
15.
|
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK:
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Home Equity
|
|
$
|
57,341
|
|
|
$
|
57,060
|
|
Commercial Operating Lines
|
|
285,524
|
|
|
246,855
|
|
||
Other Commitments
|
|
81,593
|
|
|
83,786
|
|
||
TOTAL
|
|
$
|
424,458
|
|
|
$
|
387,701
|
|
Commercial letters of credit
|
|
$
|
4,673
|
|
|
$
|
5,012
|
|
16.
|
RETIREMENT PLANS:
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Service cost - benefits earned
|
|
$
|
1,388
|
|
|
$
|
1,432
|
|
|
$
|
1,882
|
|
Interest cost on projected benefit obligation
|
|
3,194
|
|
|
3,621
|
|
|
3,729
|
|
|||
Expected return on plan assets
|
|
(3,962
|
)
|
|
(3,940
|
)
|
|
(3,429
|
)
|
|||
Net amortization and deferral
|
|
1,448
|
|
|
1,205
|
|
|
1,936
|
|
|||
Net periodic pension cost
|
|
2,068
|
|
|
2,318
|
|
|
4,118
|
|
|||
Net loss (gain) during the period
|
|
(1,192
|
)
|
|
5,366
|
|
|
(6,150
|
)
|
|||
Amortization of prior service cost
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|||
Amortization of unrecognized gain (loss)
|
|
(1,447
|
)
|
|
(1,204
|
)
|
|
(1,935
|
)
|
|||
Total recognized in other comprehensive (income) loss
|
|
(2,640
|
)
|
|
4,161
|
|
|
(8,086
|
)
|
|||
Total recognized net periodic pension cost and other comprehensive income
|
|
$
|
(572
|
)
|
|
$
|
6,479
|
|
|
$
|
(3,968
|
)
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Change in benefit obligation:
|
|
|
|
|
|
|
||
Benefit obligation at January 1
|
|
$
|
98,096
|
|
|
$
|
93,233
|
|
Service cost
|
|
1,388
|
|
|
1,432
|
|
||
Interest cost
|
|
3,194
|
|
|
3,621
|
|
||
Actuarial (gain) loss
|
|
(10,618
|
)
|
|
5,305
|
|
||
Benefits paid
|
|
(4,264
|
)
|
|
(5,495
|
)
|
||
Benefit obligation at December 31
|
|
87,796
|
|
|
98,096
|
|
||
Reconciliation of fair value of plan assets:
|
|
|
|
|
|
|
||
Fair value of plan assets at January 1
|
|
71,449
|
|
|
70,132
|
|
||
Actual return on plan assets
|
|
(5,464
|
)
|
|
3,879
|
|
||
Employer contributions
|
|
2,614
|
|
|
2,933
|
|
||
Benefits paid
|
|
(4,264
|
)
|
|
(5,495
|
)
|
||
Fair value of plan assets at December 31
|
|
64,335
|
|
|
71,449
|
|
||
Funded status at December 31 (plan assets less benefit obligation)
|
|
$
|
(23,461
|
)
|
|
$
|
(26,647
|
)
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Net loss (gain)
|
|
$
|
22,982
|
|
|
$
|
25,621
|
|
Prior service cost (credit)
|
|
2
|
|
|
3
|
|
||
|
|
$
|
22,984
|
|
|
$
|
25,624
|
|
Principal assumptions used to determine pension benefit obligation at year end:
|
|
2018
|
|
2017
|
||
Discount rate
|
|
4.22
|
%
|
|
3.60
|
%
|
Rate of increase in compensation levels
|
|
3.00
|
|
|
3.00
|
|
Principal assumptions used to determine net periodic pension cost:
|
|
2018
|
|
2017
|
||
Discount rate
|
|
3.60
|
%
|
|
4.14
|
%
|
Rate of increase in compensation levels
|
|
3.00
|
|
|
3.00
|
|
Expected long-term rate of return on plan assets
|
|
6.00
|
|
|
6.00
|
|
|
|
Pension Plan
Target Allocation
|
|
ESOP
Target Allocation
|
|
Pension
Percentage of Plan
Assets at December 31,
|
|
ESOP
Percentage of Plan
Assets at December 31,
|
||||||||
ASSET CATEGORY
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Equity securities
|
|
25-75%
|
|
95-99%
|
|
65
|
%
|
|
72
|
%
|
|
99
|
%
|
|
98
|
%
|
Debt securities
|
|
0-50%
|
|
0-0%
|
|
31
|
%
|
|
25
|
%
|
|
—
|
%
|
|
—
|
%
|
Other
|
|
0-20%
|
|
0-5%
|
|
4
|
%
|
|
3
|
%
|
|
1
|
%
|
|
2
|
%
|
TOTAL
|
|
|
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
Fair Value Measurements at
December 31, 2018 Using:
|
||||||||||||
|
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Observable
Inputs
|
||||||||
(Dollar amounts in thousands)
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Plan assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities
|
|
$
|
43,931
|
|
|
$
|
43,931
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt securities
|
|
10,652
|
|
|
—
|
|
|
10,652
|
|
|
—
|
|
||||
Investment Funds
|
|
9,752
|
|
|
9,752
|
|
|
—
|
|
|
—
|
|
||||
Total plan assets
|
|
$
|
64,335
|
|
|
$
|
53,683
|
|
|
$
|
10,652
|
|
|
$
|
—
|
|
|
|
|
|
Fair Value Measurements at
December 31, 2017 Using:
|
||||||||||||
|
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Observable
Inputs
|
||||||||
(Dollar amounts in thousands)
|
|
Total
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Plan assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities
|
|
$
|
48,152
|
|
|
$
|
48,152
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Debt securities
|
|
10,717
|
|
|
—
|
|
|
10,717
|
|
|
—
|
|
||||
Investment Funds
|
|
12,580
|
|
|
12,580
|
|
|
—
|
|
|
—
|
|
||||
Total plan assets
|
|
$
|
71,449
|
|
|
$
|
60,732
|
|
|
$
|
10,717
|
|
|
$
|
—
|
|
PENSION BENEFITS
|
|||
(Dollar amounts in thousands)
|
|||
2019
|
$
|
4,692
|
|
2020
|
4,843
|
|
|
2021
|
5,034
|
|
|
2022
|
5,221
|
|
|
2023
|
5,391
|
|
|
2024-2028
|
28,701
|
|
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net loss (gain) during the period
|
|
$
|
260
|
|
|
$
|
527
|
|
|
$
|
(511
|
)
|
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amortization of unrecognized gain (loss)
|
|
(51
|
)
|
|
—
|
|
|
(57
|
)
|
|||
Total recognized in other comprehensive (income) loss
|
|
$
|
209
|
|
|
$
|
527
|
|
|
$
|
(568
|
)
|
|
|
December 31,
|
||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
Change in benefit obligation:
|
|
|
|
|
|
|
||
Benefit obligation at January 1
|
|
$
|
4,361
|
|
|
$
|
4,276
|
|
Service cost
|
|
42
|
|
|
53
|
|
||
Interest cost
|
|
131
|
|
|
172
|
|
||
Plan participants' contributions
|
|
83
|
|
|
75
|
|
||
Actuarial (gain) loss
|
|
(872
|
)
|
|
83
|
|
||
Benefits paid
|
|
(325
|
)
|
|
(298
|
)
|
||
Benefit obligation at December 31
|
|
$
|
3,420
|
|
|
$
|
4,361
|
|
Funded status at December 31
|
|
$
|
3,420
|
|
|
$
|
4,361
|
|
|
|
December 31,
|
||||
|
|
2018
|
|
2017
|
||
Discount rate
|
|
4.22
|
%
|
|
3.60
|
%
|
Initial weighted health care cost trend rate
|
|
5.00
|
%
|
|
5.00
|
%
|
Ultimate health care cost trend rate
|
|
5.00
|
|
|
5.00
|
|
Year that the rate is assumed to stabilize and remain unchanged
|
|
2019
|
|
|
2018
|
|
|
|
Years Ended December 31,
|
||||||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Service cost
|
|
$
|
42
|
|
|
$
|
53
|
|
|
$
|
55
|
|
Interest cost
|
|
131
|
|
|
172
|
|
|
186
|
|
|||
Net periodic benefit cost
|
|
173
|
|
|
225
|
|
|
241
|
|
|||
Net loss (gain) during the period
|
|
(872
|
)
|
|
83
|
|
|
(144
|
)
|
|||
Total recognized in other comprehensive income (loss)
|
|
(872
|
)
|
|
83
|
|
|
(144
|
)
|
|||
Total recognized net periodic benefit cost and other comprehensive income
|
|
$
|
(699
|
)
|
|
$
|
308
|
|
|
$
|
97
|
|
|
|
1% Point
|
|
1% Point
|
||||
(Dollar amounts in thousands)
|
|
Increase
|
|
Decrease
|
||||
Effect on total of service and interest cost components
|
|
$
|
1
|
|
|
$
|
1
|
|
Effect on post-retirement benefit obligation
|
|
16
|
|
|
15
|
|
17.
|
STOCK BASED COMPENSATION:
|
|
|
|
|
2018
|
|
|
|
2017
|
||||
|
|
Number
|
|
Weighted Average
Grant Date
|
|
Number
|
|
Weighted Average
Grant Date
|
||||
(shares in thousands)
|
|
Outstanding
|
|
Fair Value
|
|
Outstanding
|
|
Fair Value
|
||||
Nonvested balance at January 1,
|
|
18,019
|
|
|
41.14
|
|
|
20,524
|
|
|
32.83
|
|
Granted during the year
|
|
17,220
|
|
|
45.55
|
|
|
16,562
|
|
|
46.70
|
|
Vested during the year
|
|
(18,240
|
)
|
|
40.85
|
|
|
(19,067
|
)
|
|
37.03
|
|
Forfeited during the year
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Nonvested balance at December 31,
|
|
16,999
|
|
|
45.92
|
|
|
18,019
|
|
|
41.14
|
|
|
|
Unrealized
|
|
|
|
|
||||||
|
|
gains and
|
|
2018
|
||||||||
|
|
Losses on
available- for-sale |
|
Retirement
|
|
|
||||||
(Dollar amounts in thousands)
|
|
Securities
|
|
plans
|
|
Total
|
||||||
Beginning balance, January 1
|
|
$
|
2,258
|
|
|
$
|
(16,962
|
)
|
|
$
|
(14,704
|
)
|
Change in other comprehensive income before reclassification
|
|
(8,859
|
)
|
|
1,392
|
|
|
(7,467
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income
|
|
(2
|
)
|
|
1,085
|
|
|
1,083
|
|
|||
Net current period other comprehensive income (loss)
|
|
(8,861
|
)
|
|
2,477
|
|
|
(6,384
|
)
|
|||
ASU 2018-02 adjustment
|
|
$
|
498
|
|
|
$
|
(2,864
|
)
|
|
$
|
(2,366
|
)
|
Ending balance, December 31
|
|
$
|
(6,105
|
)
|
|
$
|
(17,349
|
)
|
|
$
|
(23,454
|
)
|
|
|
Unrealized
|
|
|
|
|
||||||
|
|
gains and
|
|
2017
|
||||||||
|
|
Losses on
available- for-sale |
|
Retirement
|
|
|
||||||
(Dollar amounts in thousands)
|
|
Securities
|
|
plans
|
|
Total
|
||||||
Beginning balance, January 1
|
|
$
|
(1,077
|
)
|
|
$
|
(13,087
|
)
|
|
$
|
(14,164
|
)
|
Change in other comprehensive income before reclassification
|
|
3,371
|
|
|
(4,609
|
)
|
|
(1,238
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income
|
|
(36
|
)
|
|
734
|
|
|
698
|
|
|||
Net current period other comprehensive income (loss)
|
|
3,335
|
|
|
(3,875
|
)
|
|
(540
|
)
|
|||
Ending balance, December 31
|
|
$
|
2,258
|
|
|
$
|
(16,962
|
)
|
|
$
|
(14,704
|
)
|
|
|
Balance
at |
|
Current
Period |
|
Balance
at |
||||||
(Dollar amounts in thousands)
|
|
1/1/2018
|
|
Change
|
|
12/31/2018
|
||||||
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
||||||
without other than temporary impairment
|
|
$
|
(1,371
|
)
|
|
$
|
(7,075
|
)
|
|
$
|
(8,446
|
)
|
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|||
with other than temporary impairment
|
|
3,629
|
|
|
(1,288
|
)
|
|
2,341
|
|
|||
Total unrealized gain (loss) on securities available-for-sale
|
|
$
|
2,258
|
|
|
$
|
(8,363
|
)
|
|
$
|
(6,105
|
)
|
Unrealized loss on retirement plans
|
|
(16,962
|
)
|
|
(387
|
)
|
|
(17,349
|
)
|
|||
TOTAL
|
|
$
|
(14,704
|
)
|
|
$
|
(8,750
|
)
|
|
$
|
(23,454
|
)
|
|
|
Balance
at
|
|
Current
Period
|
|
Balance
at
|
||||||
(Dollar amounts in thousands)
|
|
1/1/2017
|
|
Change
|
|
12/31/2017
|
||||||
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|||
without other than temporary impairment
|
|
$
|
(3,018
|
)
|
|
$
|
1,647
|
|
|
$
|
(1,371
|
)
|
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|||
with other than temporary impairment
|
|
1,941
|
|
|
1,688
|
|
|
3,629
|
|
|||
Total unrealized gain (loss) on securities available-for-sale
|
|
$
|
(1,077
|
)
|
|
$
|
3,335
|
|
|
$
|
2,258
|
|
Unrealized loss on retirement plans
|
|
(13,087
|
)
|
|
(3,875
|
)
|
|
(16,962
|
)
|
|||
TOTAL
|
|
$
|
(14,164
|
)
|
|
$
|
(540
|
)
|
|
$
|
(14,704
|
)
|
|
|
Balance at December 31, 2018
|
|
|
||
Details about accumulated
|
|
Amount reclassified from
|
|
Affected line item in
|
||
other comprehensive
|
|
accumulated other
|
|
the statement where
|
||
income components
|
|
comprehensive income
|
|
net income is presented
|
||
|
|
(in thousands)
|
|
|
||
Unrealized gains and losses
|
|
$
|
2
|
|
|
Net securities gains (losses)
|
on available-for-sale
|
|
—
|
|
|
Income tax expense
|
|
securities
|
|
$
|
2
|
|
|
Net of tax
|
|
|
|
|
|
||
Amortization of
|
|
$
|
(1,447
|
)
|
|
(a)
|
retirement plan items
|
|
362
|
|
|
Income tax expense
|
|
|
|
$
|
(1,085
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(1,083
|
)
|
|
Net of tax
|
|
|
Balance at December 31, 2017
|
|
|
||
Details about accumulated
|
|
Amount reclassified from
|
|
Affected line item in
|
||
other comprehensive
|
|
accumulated other
|
|
the statement where
|
||
income components
|
|
comprehensive income
|
|
net income is presented
|
||
|
|
(in thousands)
|
|
|
||
Unrealized gains and losses
|
|
$
|
59
|
|
|
Net securities gains (losses)
|
on available-for-sale
|
|
(23
|
)
|
|
Income tax expense
|
|
securities
|
|
$
|
36
|
|
|
Net of tax
|
|
|
|
|
|
||
Amortization of
|
|
$
|
(1,204
|
)
|
|
(a)
|
retirement plan items
|
|
470
|
|
|
Income tax expense
|
|
|
|
$
|
(734
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(698
|
)
|
|
Net of tax
|
|
|
Balance at December 31, 2016
|
|
|
||
Details about accumulated
|
|
Amount reclassified from
|
|
Affected line item in
|
||
other comprehensive
|
|
accumulated other
|
|
the statement where
|
||
income components
|
|
comprehensive income
|
|
net income is presented
|
||
|
|
(in thousands)
|
|
|
||
Unrealized gains and losses
|
|
$
|
34
|
|
|
Net securities gains (losses)
|
on available-for-sale
|
|
(13
|
)
|
|
Income tax expense
|
|
securities
|
|
$
|
21
|
|
|
Net of tax
|
|
|
|
|
|
||
Amortization of
|
|
$
|
(1,992
|
)
|
|
(a)
|
retirement plan items
|
|
776
|
|
|
Income tax expense
|
|
|
|
$
|
(1,216
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(1,195
|
)
|
|
Net of tax
|
19.
|
REGULATORY MATTERS:
|
|
|
|
|
|
|
|
|
|
|
To Be Well Capitalized
|
||||||||||
|
|
|
|
|
|
For Capital
|
|
Under Prompt Corrective
|
||||||||||||
|
|
Actual
|
|
Adequacy Purposes
|
|
Action Provisions
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||
Total risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Corporation – 2018
|
|
$
|
451,036
|
|
|
19.36
|
%
|
|
$
|
230,091
|
|
|
9.875
|
%
|
|
N/A
|
|
|
N/A
|
|
Corporation – 2017
|
|
$
|
412,525
|
|
|
17.88
|
%
|
|
$
|
213,446
|
|
|
9.250
|
%
|
|
N/A
|
|
|
N/A
|
|
First Financial Bank – 2018
|
|
421,553
|
|
|
18.71
|
%
|
|
222,453
|
|
|
9.875
|
%
|
|
225,268
|
|
|
10.00
|
%
|
||
First Financial Bank – 2017
|
|
386,593
|
|
|
17.30
|
%
|
|
206,745
|
|
|
9.250
|
%
|
|
223,508
|
|
|
10.00
|
%
|
||
Common equity tier I capital
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Corporation – 2018
|
|
$
|
430,600
|
|
|
18.48
|
%
|
|
$
|
148,540
|
|
|
6.375
|
%
|
|
N/A
|
|
|
N/A
|
|
Corporation – 2017
|
|
$
|
392,615
|
|
|
17.01
|
%
|
|
$
|
132,682
|
|
|
5.750
|
%
|
|
N/A
|
|
|
N/A
|
|
First Financial Bank – 2018
|
|
405,181
|
|
|
17.99
|
%
|
|
143,609
|
|
|
6.375
|
%
|
|
146,424
|
|
|
6.50
|
%
|
||
First Financial Bank – 2017
|
|
370,061
|
|
|
16.56
|
%
|
|
128,517
|
|
|
5.750
|
%
|
|
145,280
|
|
|
6.50
|
%
|
||
Tier I risk-based capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Corporation – 2018
|
|
$
|
430,600
|
|
|
18.48
|
%
|
|
$
|
183,490
|
|
|
7.875
|
%
|
|
N/A
|
|
|
N/A
|
|
Corporation – 2017
|
|
$
|
392,615
|
|
|
17.01
|
%
|
|
$
|
167,295
|
|
|
7.250
|
%
|
|
N/A
|
|
|
N/A
|
|
First Financial Bank – 2018
|
|
405,181
|
|
|
17.99
|
%
|
|
177,399
|
|
|
7.875
|
%
|
|
180,215
|
|
|
8.00
|
%
|
||
First Financial Bank – 2017
|
|
370,061
|
|
|
16.56
|
%
|
|
162,044
|
|
|
7.250
|
%
|
|
178,807
|
|
|
8.00
|
%
|
||
Tier I leverage capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Corporation – 2018
|
|
$
|
430,600
|
|
|
14.59
|
%
|
|
$
|
118,072
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
Corporation – 2017
|
|
$
|
392,615
|
|
|
13.31
|
%
|
|
$
|
117,956
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
First Financial Bank – 2018
|
|
405,181
|
|
|
14.19
|
%
|
|
114,213
|
|
|
4.00
|
%
|
|
142,767
|
|
|
5.00
|
%
|
||
First Financial Bank – 2017
|
|
370,061
|
|
|
12.81
|
%
|
|
115,553
|
|
|
4.00
|
%
|
|
144,441
|
|
|
5.00
|
%
|
20.
|
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS:
|
CONDENSED BALANCE SHEETS
|
|
|
|
|
||||
|
|
December 31,
|
||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash deposits in affiliated banks
|
|
$
|
3,342
|
|
|
$
|
3,198
|
|
Investments in subsidiaries
|
|
442,547
|
|
|
414,839
|
|
||
Land and headquarters building, net
|
|
5,000
|
|
|
5,193
|
|
||
Other
|
|
900
|
|
|
—
|
|
||
Total Assets
|
|
$
|
451,789
|
|
|
$
|
423,230
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Dividends payable
|
|
$
|
6,258
|
|
|
$
|
6,234
|
|
Other liabilities
|
|
2,830
|
|
|
3,427
|
|
||
TOTAL LIABILITIES
|
|
9,088
|
|
|
9,661
|
|
||
Shareholders' Equity
|
|
442,701
|
|
|
413,569
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
451,789
|
|
|
$
|
423,230
|
|
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
|
|
|
|
||||||||
|
|
Years Ended December 31,
|
||||||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Dividends from subsidiaries
|
|
$
|
13,651
|
|
|
$
|
30,814
|
|
|
$
|
31,781
|
|
Other income
|
|
720
|
|
|
720
|
|
|
722
|
|
|||
Other operating expenses
|
|
(2,814
|
)
|
|
(2,647
|
)
|
|
(2,581
|
)
|
|||
Income before income taxes and equity in undistributed earnings of subsidiaries
|
|
11,557
|
|
|
28,887
|
|
|
29,922
|
|
|||
Income tax benefit
|
|
934
|
|
|
889
|
|
|
821
|
|
|||
Income before equity in undistributed earnings of subsidiaries
|
|
12,491
|
|
|
29,776
|
|
|
30,743
|
|
|||
Equity in undistributed earnings of subsidiaries
|
|
34,092
|
|
|
(645
|
)
|
|
7,670
|
|
|||
Net income
|
|
$
|
46,583
|
|
|
$
|
29,131
|
|
|
$
|
38,413
|
|
|
|
|
|
|
|
|
||||||
Comprehensive income
|
|
$
|
40,199
|
|
|
$
|
28,591
|
|
|
$
|
33,650
|
|
CONDENSED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
||||||
|
|
Years Ended December 31,
|
||||||||||
(Dollar amounts in thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Net Income
|
|
$
|
46,583
|
|
|
$
|
29,131
|
|
|
$
|
38,413
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization
|
|
193
|
|
|
195
|
|
|
200
|
|
|||
Equity in undistributed earnings
|
|
(34,092
|
)
|
|
645
|
|
|
(7,670
|
)
|
|||
Contribution of shares to ESOP
|
|
1,087
|
|
|
1,062
|
|
|
1,361
|
|
|||
Restricted stock compensation
|
|
745
|
|
|
706
|
|
|
684
|
|
|||
Increase (decrease) in other liabilities
|
|
(585
|
)
|
|
(247
|
)
|
|
(262
|
)
|
|||
(Increase) decrease in other assets
|
|
(900
|
)
|
|
—
|
|
|
12
|
|
|||
NET CASH FROM OPERATING ACTIVITIES
|
|
13,031
|
|
|
31,492
|
|
|
32,738
|
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|||
Purchase of treasury stock
|
|
(391
|
)
|
|
(503
|
)
|
|
(19,396
|
)
|
|||
Dividends paid
|
|
(12,496
|
)
|
|
(30,556
|
)
|
|
(12,359
|
)
|
|||
NET CASH FROM FINANCING ACTIVITES
|
|
(12,887
|
)
|
|
(31,059
|
)
|
|
(31,755
|
)
|
|||
NET (DECREASE) INCREASE IN CASH
|
|
144
|
|
|
433
|
|
|
983
|
|
|||
CASH, BEGINNING OF YEAR
|
|
3,198
|
|
|
2,765
|
|
|
1,782
|
|
|||
CASH, END OF YEAR
|
|
$
|
3,342
|
|
|
$
|
3,198
|
|
|
$
|
2,765
|
|
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
|
|
|
|
|||
Cash paid during the year for:
|
|
|
|
|
|
|
|
|
|
|||
Interest
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Income taxes
|
|
$
|
7,185
|
|
|
$
|
11,158
|
|
|
$
|
18,739
|
|
21.
|
SELECTED QUARTERLY DATA (UNAUDITED):
|
|
|
2018
|
||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Interest
Income |
|
Interest
Expense |
|
Net Interest
Income |
|
Provision
For Loan Losses |
|
Net Income (a)
|
|
Net Income
Per Share |
||||||||||||
March 31
|
|
$
|
29,377
|
|
|
$
|
1,904
|
|
|
$
|
27,473
|
|
|
$
|
1,473
|
|
|
$
|
8,953
|
|
|
$
|
0.73
|
|
June 30
|
|
$
|
32,903
|
|
|
$
|
2,219
|
|
|
$
|
30,684
|
|
|
$
|
1,355
|
|
|
$
|
15,261
|
|
|
$
|
1.25
|
|
September 30
|
|
$
|
31,375
|
|
|
$
|
2,548
|
|
|
$
|
28,827
|
|
|
$
|
1,470
|
|
|
$
|
11,313
|
|
|
$
|
0.92
|
|
December 31
|
|
$
|
32,569
|
|
|
$
|
2,974
|
|
|
$
|
29,595
|
|
|
$
|
1,470
|
|
|
$
|
11,056
|
|
|
$
|
0.90
|
|
|
|
2017
|
||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Interest
Income |
|
Interest
Expense |
|
Net
Interest Income |
|
Provision
For Loan Losses |
|
Net Income (b)
|
|
Net Income
Per Share |
||||||||||||
March 31
|
|
$
|
27,846
|
|
|
$
|
1,339
|
|
|
$
|
26,507
|
|
|
$
|
1,596
|
|
|
$
|
9,369
|
|
|
$
|
0.77
|
|
June 30
|
|
$
|
28,128
|
|
|
$
|
1,568
|
|
|
$
|
26,560
|
|
|
$
|
1,040
|
|
|
$
|
8,352
|
|
|
$
|
0.68
|
|
September 30
|
|
$
|
28,805
|
|
|
$
|
1,697
|
|
|
$
|
27,108
|
|
|
$
|
1,185
|
|
|
$
|
8,794
|
|
|
$
|
0.72
|
|
December 31
|
|
$
|
29,416
|
|
|
$
|
1,734
|
|
|
$
|
27,682
|
|
|
$
|
1,474
|
|
|
$
|
2,616
|
|
|
$
|
0.21
|
|
22.
|
SUBSEQUENT EVENTS:
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS
|
Plan Category
|
|
Number of Securities to be
issued upon exercise of
outstanding options, warrants
and rights
|
|
Weighted average exercise price
of outstanding options, warrants
and rights
|
|
Number of securities
remaining (1)
|
|||
Equity compensation plans approved by security holders (2)
|
|
—
|
|
|
—
|
|
|
533,711
|
|
Equity compensation plans not approved by security holders (3)
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
|
—
|
|
|
—
|
|
|
533,711
|
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
Exhibit Number
|
Description
|
Amended and Restated Articles of Incorporation of First Financial Corporation, incorporated by reference to Exhibit 3(i) of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
|
|
Code of By-Laws of First Financial Corporation, incorporated by reference to Exhibit 3(ii) of the Corporation’s Form 8-K filed August 24, 2012.
|
|
Employment Agreement for Norman L. Lowery, effective July 1, 2018, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed April 9, 2018.
|
|
2001 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 10-Q filed for the quarter ended September 30, 2002.
|
|
2005 Long-Term Incentive Plan of First Financial Corporation, incorporated by reference to Exhibit 10.7 of the Corporation’s Form 8-K filed September 4, 2007.
|
|
2005 Executives Deferred Compensation Plan, incorporated by reference to Exhibit 10.5 of the Corporation’s Form 8-K filed September 4, 2007.
|
|
2005 Executives Supplemental Retirement Plan, incorporated by reference to Exhibit 10.6 of the Corporation’s Form 8-K filed September 4, 2007.
|
|
First Financial Corporation 2010 Long-Term Incentive Compensation Plan, incorporated by reference to Exhibit 10.9 to the Corporation’s Form 10-K filed March 15, 2011.
|
|
First Financial Corporation 2011 Short Term Incentive Compensation Plan, incorporated by reference to Exhibit 10.10 to the Corporation’s Form 10-K filed March 15, 2011.
|
|
First Financial Corporation 2011 Omnibus Equity Incentive Plan, incorporated by reference to exhibit 10.11 to the Corporation’s Form 10-Q for the quarter ended March 31, 2011 filed May 9, 2011.
|
|
Form of Restricted Stock Award Agreement, incorporated by reference to exhibit 10.12 to the Corporations 10-Q for the quarter ended March 31, 2012 filed May 10, 2012.
|
|
|
continued
|
Exhibit Number
|
Description
|
Employment Agreement for Norman D. Lowery, dated April 2, 2018, incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed April 4, 2018.
|
|
Employment Agreement for Rodger A. McHargue, dated April 2, 2018, incorporated by reference to Exhibit 10.2 of the Corporation’s Form 8-K filed April 4, 2018.
|
|
Employment Agreement for Steven H. Holliday, dated April 2, 2018, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 8-K filed April 4, 2018.
|
|
Employment Agreement for Karen L. Stinson-Milienu, dated April 2, 2018, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 8-K filed April 4, 2018.
|
|
Subsidiaries
|
|
Certification pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal Executive Officer
|
|
Certification pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal Financial Officer
|
|
Certification pursuant to 18 U.S.C. Section 1350 of Principal Executive Officer
|
|
Certification pursuant to 18 U.S.C. Section 1350 of Principal Financial Officer
|
|
101.
|
The following material from First Financial Corporation’s Form 10-K Report for the annual period ended December 31, 2018, formatted in XBRL pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, and (v) the Notes to Consolidated Financial Statements**
|
|
|
First Financial Corporation
|
|
|
|
Date:
|
March 6, 2019
|
/s/ Rodger A. McHargue
|
|
|
Rodger A. McHargue, Chief Financial Officer
|
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
NAME
|
DATE
|
|
|
/s/ Rodger A. McHargue
|
March 6, 2019
|
Rodger A. McHargue, Chief Financial Officer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
|
|
|
/s/ W. Curtis Brighton
|
March 6, 2019
|
W. Curtis Brighton, Director
|
|
|
|
/s/ B. Guille Cox, Jr.
|
March 6, 2019
|
B. Guille Cox, Jr., Director
|
|
|
|
/s/ Thomas T. Dinkel
|
March 6, 2019
|
Thomas T. Dinkel, Director
|
|
|
|
/s/ Anton H. George
|
March 6, 2019
|
Anton H. George, Director
|
|
|
|
/s/ Gregory L. Gibson
|
March 6, 2019
|
Gregory L. Gibson, Director
|
|
|
|
/s/ Norman L. Lowery
|
March 6, 2019
|
Norman L. Lowery, Vice Chairman, President, CEO & Director
|
|
(Principal Executive Officer)
|
|
|
|
/s/ Ronald K. Rich
|
March 6, 2019
|
Ronald K. Rich, Director
|
|
|
|
/s/ William J. Voges
|
March 6, 2019
|
William J. Voges, Director
|
|
|
|
/s/ William R. Krieble
|
March 6, 2019
|
William R. Krieble, Director
|
|
Exhibit
|
|
Number
|
Description
|
|
|
21
|
Subsidiaries
|
|
|
31.1
|
Certification Pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal Executive Officer
|
|
|
31.2
|
Certification Pursuant to Rule 13a-14(a) for Annual Report of Form 10-K by Principal Financial Officer
|
|
|
32.1
|
Certification Pursuant to Rule 18 U.S.C. Section 1350 of Principal Executive Officer
|
|
|
32.2
|
Certification Pursuant to Rule 18 U.S.C. Section 1350 of Principal Financial Officer
|
|
|
101.
|
The following material from First Financial Corporation’s Form 10-K Report for the annual period ended December 31, 2018, formatted in XBRL pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Comprehensive Income, (iii) the Consolidated Statements of Cash Flows, (iv) the Consolidated Statements of Changes in Shareholders’ Equity, and (v) the Notes to Consolidated Financial Statements.*
|
1.
|
I have reviewed this annual report on Form 10-K of First Financial Corporation;
|
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(s) 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 l5d—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 purpose 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(s) 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.
|
By
|
/s/ Norman L. Lowery
|
|
Norman L. Lowery,
|
|
Vice Chairman, President and CEO
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this annual report on Form 10-K of First Financial Corporation;
|
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(s) 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 l5d—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 purpose 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(s) 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.
|
By
|
/s/ Rodger A. McHargue
|
|
Rodger A. McHargue,
|
|
Chief Financial Officer
|
|
(Principal Financial Officer and Principal Accounting Officer)
|
(1)
|
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 Corporation.
|
/s/ Norman L. Lowery
|
Norman L. Lowery
|
Vice Chairman, President and CEO
|
(Principal Executive Officer)
|
(1)
|
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 Corporation.
|
/s/ Rodger A. McHargue
|
Rodger A. McHargue
|
Chief Financial Officer
|
(Principal Financial Officer and Principal Accounting Officer)
|