INDIANA
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35-1546989
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(State or other jurisdiction
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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One First Financial Plaza, Terre Haute, IN
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47807
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(Address of principal executive office)
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(Zip Code)
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(812)238-6000
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(Registrant's telephone number, including area code)
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Large accelerated filer
¨
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Accelerated filer
x
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
¨
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Emerging growth company
¨
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Page No.
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Item 1.
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Financial Statements
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March 31,
2019 |
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December 31,
2018 |
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(unaudited)
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||||||
ASSETS
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|
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Cash and due from banks
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$
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54,627
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|
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$
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74,388
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Federal funds sold
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2,000
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—
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Securities available-for-sale
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786,211
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784,916
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Loans:
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Commercial
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1,180,347
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1,166,352
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Residential
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452,384
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443,670
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Consumer
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348,193
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341,041
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1,980,924
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1,951,063
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(Less) plus:
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Net deferred loan costs
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3,129
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2,925
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Allowance for loan losses
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(20,960
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)
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(20,436
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)
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1,963,093
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1,933,552
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Restricted stock
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10,412
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10,390
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Accrued interest receivable
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14,379
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13,970
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Premises and equipment, net
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45,977
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46,554
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Bank-owned life insurance
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86,471
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86,186
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Goodwill
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34,355
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34,355
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Other intangible assets
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1,083
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1,197
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Other real estate owned
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857
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603
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Other assets
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26,100
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22,607
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TOTAL ASSETS
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$
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3,025,565
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$
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3,008,718
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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Deposits:
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Non-interest-bearing
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$
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440,738
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$
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431,923
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Interest-bearing:
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Certificates of deposit exceeding the FDIC insurance limits
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50,973
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42,284
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Other interest-bearing deposits
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1,927,845
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1,962,520
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2,419,556
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2,436,727
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Short-term borrowings
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56,648
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69,656
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FHLB advances
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25,000
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—
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Other liabilities
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61,565
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59,634
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TOTAL LIABILITIES
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2,562,769
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2,566,017
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Shareholders’ equity
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Common stock, $.125 stated value per share;
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Authorized shares-40,000,000
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Issued shares-14,632,323 in 2019 and 14,612,540 in 2018
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Outstanding shares-12,290,212 in 2019 and 12,278,295 in 2018
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1,825
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1,824
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Additional paid-in capital
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76,974
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76,774
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Retained earnings
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466,398
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456,716
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Accumulated other comprehensive loss
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(12,927
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)
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(23,454
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)
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Less: Treasury shares at cost-2,342,111 in 2019 and 2,334,245 in 2018
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(69,474
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)
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(69,159
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)
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TOTAL SHAREHOLDERS’ EQUITY
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462,796
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442,701
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$
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3,025,565
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$
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3,008,718
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Three Months Ended
March 31, |
||||||
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2019
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2018
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(unaudited)
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(unaudited)
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INTEREST INCOME:
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Loans, including related fees
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$
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26,754
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$
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23,623
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Securities:
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Taxable
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3,681
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3,593
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Tax-exempt
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1,867
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1,840
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Other
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314
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321
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TOTAL INTEREST INCOME
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32,616
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29,377
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INTEREST EXPENSE:
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Deposits
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2,817
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1,764
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Short-term borrowings
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323
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99
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Other borrowings
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50
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41
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TOTAL INTEREST EXPENSE
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3,190
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1,904
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NET INTEREST INCOME
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29,426
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27,473
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Provision for loan losses
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1,470
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1,473
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NET INTEREST INCOME AFTER PROVISION
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FOR LOAN LOSSES
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27,956
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26,000
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NON-INTEREST INCOME:
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Trust and financial services
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1,204
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1,415
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Service charges and fees on deposit accounts
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2,624
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2,885
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Other service charges and fees
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3,114
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3,144
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Securities gains, net
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(4
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)
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—
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Gain on sales of mortgage loans
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420
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340
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Other
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278
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319
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TOTAL NON-INTEREST INCOME
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7,636
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8,103
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NON-INTEREST EXPENSE:
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Salaries and employee benefits
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12,755
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12,965
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Occupancy expense
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1,815
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1,781
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Equipment expense
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1,817
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1,693
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FDIC Expense
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140
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227
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Other
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7,166
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6,545
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TOTAL NON-INTEREST EXPENSE
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23,693
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23,211
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INCOME BEFORE INCOME TAXES
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11,899
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10,892
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Provision for income taxes
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2,217
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1,939
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NET INCOME
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9,682
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8,953
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OTHER COMPREHENSIVE INCOME (LOSS)
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Change in unrealized gains/(losses) on securities, net of reclassifications and taxes
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10,224
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(7,699
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)
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Change in funded status of post retirement benefits, net of taxes
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303
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281
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COMPREHENSIVE INCOME
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$
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20,209
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$
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1,535
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PER SHARE DATA
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Basic and Diluted Earnings per Share
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$
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0.79
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$
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0.73
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Weighted average number of shares outstanding (in thousands)
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12,282
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12,248
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Common
Stock
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Additional
Capital
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Retained
Earnings
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Accumulated
Other
Comprehensive
Income/(Loss)
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Treasury
Stock
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Total
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||||||||||||
Balance, January 1, 2018
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$
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1,822
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$
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75,624
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$
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420,275
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$
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(14,704
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)
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$
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(69,448
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)
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$
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413,569
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Net income
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—
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|
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—
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8,953
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—
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—
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8,953
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||||||
Other comprehensive loss
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—
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—
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|
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—
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|
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(7,418
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)
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—
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(7,418
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)
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||||||
Omnibus Equity Incentive Plan
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1
|
|
|
186
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|
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—
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—
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—
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|
|
187
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|
||||||
Treasury shares purchased (8,639 shares)
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—
|
|
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—
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|
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—
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|
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—
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|
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(391
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)
|
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(391
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)
|
||||||
ASU 2018-02 adjustment
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—
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—
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|
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2,366
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(2,366
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)
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—
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|
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—
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|
||||||
Balance, March 31, 2018
|
$
|
1,823
|
|
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$
|
75,810
|
|
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$
|
431,594
|
|
|
$
|
(24,488
|
)
|
|
$
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(69,839
|
)
|
|
$
|
414,900
|
|
|
|
|
|
|
|
|
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||||||||||||
Balance, January 1, 2019
|
$
|
1,824
|
|
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$
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76,774
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|
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$
|
456,716
|
|
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$
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(23,454
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)
|
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$
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(69,159
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)
|
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$
|
442,701
|
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Net income
|
—
|
|
|
—
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|
|
9,682
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—
|
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—
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|
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9,682
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|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
10,527
|
|
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—
|
|
|
10,527
|
|
||||||
Omnibus Equity Incentive Plan
|
1
|
|
|
200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201
|
|
||||||
Treasury shares purchased (7,866 shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(315
|
)
|
|
(315
|
)
|
||||||
Balance, March 31, 2019
|
$
|
1,825
|
|
|
$
|
76,974
|
|
|
$
|
466,398
|
|
|
$
|
(12,927
|
)
|
|
$
|
(69,474
|
)
|
|
$
|
462,796
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
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(Unaudited)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
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Net Income
|
$
|
9,682
|
|
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$
|
8,953
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Adjustments to reconcile net income to net cash provided by operating activities:
|
|
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|
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|
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Net amortization (accretion) of premiums and discounts on investments
|
900
|
|
|
885
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Provision for loan losses
|
1,470
|
|
|
1,473
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|
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Securities (gains)
|
4
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|
|
—
|
|
||
Loss on sale of other real estate
|
8
|
|
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(16
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)
|
||
Restricted stock compensation
|
201
|
|
|
187
|
|
||
Depreciation and amortization
|
1,000
|
|
|
1,036
|
|
||
Other, net
|
1,185
|
|
|
(3,488
|
)
|
||
NET CASH FROM OPERATING ACTIVITIES
|
14,450
|
|
|
9,030
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|
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CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
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|
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Calls, maturities and principal reductions on securities available-for-sale
|
27,321
|
|
|
37,679
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|
||
Purchases of securities available-for-sale
|
(16,214
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)
|
|
(39,195
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)
|
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Loans made to customers, net of repayment
|
(31,248
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)
|
|
(1,926
|
)
|
||
Purchase of restricted stock
|
(22
|
)
|
|
(11
|
)
|
||
Proceeds from sales of other real estate owned
|
13
|
|
|
113
|
|
||
Net change in federal funds sold
|
(2,000
|
)
|
|
(1,500
|
)
|
||
Additions to premises and equipment
|
(309
|
)
|
|
(432
|
)
|
||
NET CASH FROM INVESTING ACTIVITIES
|
(22,459
|
)
|
|
(5,272
|
)
|
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CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
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|
||
Net change in deposits
|
(17,171
|
)
|
|
(1,464
|
)
|
||
Net change in short-term borrowings
|
(13,008
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)
|
|
(28,608
|
)
|
||
Maturities of other borrowings
|
(92,000
|
)
|
|
(50,000
|
)
|
||
Proceeds from other borrowings
|
117,000
|
|
|
50,000
|
|
||
Purchase of treasury stock
|
(315
|
)
|
|
(391
|
)
|
||
Dividends paid
|
(6,258
|
)
|
|
(6,246
|
)
|
||
NET CASH FROM FINANCING ACTIVITIES
|
(11,752
|
)
|
|
(36,709
|
)
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(19,761
|
)
|
|
(32,951
|
)
|
||
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
|
74,388
|
|
|
74,107
|
|
||
CASH AND DUE FROM BANKS, END OF PERIOD
|
$
|
54,627
|
|
|
$
|
41,156
|
|
1.
|
Significant Accounting Policies
|
2.
|
Allowance for Loan Losses
|
Allowance for Loan Losses:
|
|
March 31, 2019
|
||||||||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
9,848
|
|
|
$
|
1,313
|
|
|
$
|
7,481
|
|
|
$
|
1,794
|
|
|
$
|
20,436
|
|
Provision for loan losses
|
|
(640
|
)
|
|
296
|
|
|
941
|
|
|
873
|
|
|
1,470
|
|
|||||
Loans charged -off
|
|
(256
|
)
|
|
(302
|
)
|
|
(1,551
|
)
|
|
—
|
|
|
(2,109
|
)
|
|||||
Recoveries
|
|
287
|
|
|
185
|
|
|
691
|
|
|
—
|
|
|
1,163
|
|
|||||
Ending Balance
|
|
$
|
9,239
|
|
|
$
|
1,492
|
|
|
$
|
7,562
|
|
|
$
|
2,667
|
|
|
$
|
20,960
|
|
Allowance for Loan Losses:
|
|
March 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
|
|
8
|
|
|
(9
|
)
|
|
1,018
|
|
|
456
|
|
|
1,473
|
|
|||||
Loans charged -off
|
|
(315
|
)
|
|
(219
|
)
|
|
(1,539
|
)
|
|
—
|
|
|
(2,073
|
)
|
|||||
Recoveries
|
|
178
|
|
|
162
|
|
|
593
|
|
|
—
|
|
|
933
|
|
|||||
Ending Balance
|
|
$
|
10,152
|
|
|
$
|
1,389
|
|
|
$
|
6,781
|
|
|
$
|
1,920
|
|
|
$
|
20,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses
|
|
March 31, 2019
|
||||||||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||
Individually evaluated for impairment
|
|
$
|
763
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
763
|
|
Collectively evaluated for impairment
|
|
8,476
|
|
|
1,492
|
|
|
7,562
|
|
|
2,667
|
|
|
20,197
|
|
|||||
Acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending Balance
|
|
$
|
9,239
|
|
|
$
|
1,492
|
|
|
$
|
7,562
|
|
|
$
|
2,667
|
|
|
$
|
20,960
|
|
Loans:
|
|
March 31, 2019
|
||||||||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
|
|
Total
|
||||||||
Individually evaluated for impairment
|
|
$
|
6,203
|
|
|
$
|
4,252
|
|
|
$
|
—
|
|
|
|
|
$
|
10,455
|
|
Collectively evaluated for impairment
|
|
1,180,108
|
|
|
449,510
|
|
|
349,673
|
|
|
|
|
1,979,291
|
|
||||
Acquired with deteriorated credit quality
|
|
1,459
|
|
|
—
|
|
|
—
|
|
|
|
|
1,459
|
|
||||
Ending Balance
|
|
$
|
1,187,770
|
|
|
$
|
453,762
|
|
|
$
|
349,673
|
|
|
|
|
$
|
1,991,205
|
|
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
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending Balance
|
|
$
|
9,848
|
|
|
$
|
1,313
|
|
|
$
|
7,481
|
|
|
$
|
1,794
|
|
|
$
|
20,436
|
|
Loans
|
|
December 31, 2018
|
||||||||||||||||
(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
|
|
||||
Ending Balance
|
|
$
|
1,173,823
|
|
|
$
|
444,912
|
|
|
$
|
342,473
|
|
|
|
|
$
|
1,961,208
|
|
|
|
|
|
|
|
March 31, 2019
|
|
|
|
|
||||||||||||||
|
|
Unpaid
Principal
|
|
Recorded
|
|
Allowance
for Loan
Losses
|
|
Average
Recorded
|
|
Interest
Income
|
|
Cash Basis
Interest
|
||||||||||||
(Dollar amounts in thousands)
|
|
Balance
|
|
Investment
|
|
Allocated
|
|
Investment
|
|
Recognized
|
|
Recognized
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
853
|
|
|
$
|
853
|
|
|
$
|
—
|
|
|
$
|
721
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
1,953
|
|
|
1,953
|
|
|
—
|
|
|
1,988
|
|
|
—
|
|
|
—
|
|
||||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Agriculture
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Commercial
|
|
1,108
|
|
|
1,108
|
|
|
—
|
|
|
1,111
|
|
|
—
|
|
|
—
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
4,252
|
|
|
4,252
|
|
|
—
|
|
|
4,334
|
|
|
—
|
|
|
—
|
|
||||||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
1,733
|
|
|
1,733
|
|
|
531
|
|
|
1,775
|
|
|
—
|
|
|
—
|
|
||||||
Farmland
|
|
210
|
|
|
210
|
|
|
40
|
|
|
211
|
|
|
—
|
|
|
—
|
|
||||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Agriculture
|
|
346
|
|
|
346
|
|
|
192
|
|
|
346
|
|
|
—
|
|
|
—
|
|
||||||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
TOTAL
|
|
$
|
10,455
|
|
|
$
|
10,455
|
|
|
$
|
763
|
|
|
$
|
10,486
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
December 31, 2018
|
|
|
|
|
||||||||||||||
|
|
Unpaid
Principal
|
|
Recorded
|
|
Allowance
for Loan
Losses
|
|
Average
Recorded
|
|
Interest
Income
|
|
Cash Basis
Interest
Income
|
||||||||||||
(Dollar amounts in thousands)
|
|
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
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018 |
||||||||||
|
|
Average
Recorded |
|
Interest
Income |
|
Cash Basis
Interest Income |
||||||
(Dollar amounts in thousands)
|
|
Investment
|
|
Recognized
|
|
Recognized
|
||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
|
|
|
|
|
|
|
|
|||
Commercial & Industrial
|
|
$
|
788
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Farmland
|
|
930
|
|
|
—
|
|
|
—
|
|
|||
Non Farm, Non Residential
|
|
2,442
|
|
|
—
|
|
|
—
|
|
|||
Agriculture
|
|
116
|
|
|
—
|
|
|
—
|
|
|||
All Other Commercial
|
|
1,218
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|||
First Liens
|
|
2,032
|
|
|
—
|
|
|
—
|
|
|||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Junior Liens
|
|
18
|
|
|
—
|
|
|
—
|
|
|||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
|
|
|
|||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial
|
|
|
|
|
|
|
|
|
|
|||
Commercial & Industrial
|
|
488
|
|
|
—
|
|
|
—
|
|
|||
Farmland
|
|
3,041
|
|
|
—
|
|
|
—
|
|
|||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Agriculture
|
|
537
|
|
|
—
|
|
|
—
|
|
|||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|||
First Liens
|
|
221
|
|
|
—
|
|
|
—
|
|
|||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
|
|
|
|||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
TOTAL
|
|
$
|
11,831
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
March 31, 2019
|
||||||||||||||
|
|
Loans Past
Due Over
90 Day Still
|
|
Troubled
Debt Restructured
|
|
Nonaccrual Excluding
|
||||||||||
(Dollar amounts in thousands)
|
|
Accruing
|
|
Accruing
|
|
Nonaccrual
|
|
TDR
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial & Industrial
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
135
|
|
|
$
|
3,204
|
|
Farmland
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,322
|
|
||||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
||||
Agriculture
|
|
—
|
|
|
—
|
|
|
—
|
|
|
353
|
|
||||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,084
|
|
||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|||||
First Liens
|
|
328
|
|
|
3,384
|
|
|
557
|
|
|
3,079
|
|
||||
Home Equity
|
|
38
|
|
|
—
|
|
|
—
|
|
|
40
|
|
||||
Junior Liens
|
|
5
|
|
|
79
|
|
|
—
|
|
|
82
|
|
||||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Motor Vehicle
|
|
171
|
|
|
—
|
|
|
—
|
|
|
159
|
|
||||
All Other Consumer
|
|
7
|
|
|
299
|
|
|
320
|
|
|
347
|
|
||||
TOTAL
|
|
$
|
549
|
|
|
$
|
3,763
|
|
|
$
|
1,012
|
|
|
$
|
10,808
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Loans Past
Due Over
90 Day Still
|
|
Troubled
Debt Restructured
|
|
Nonaccrual Excluding
|
||||||||||
(Dollar amounts in thousands)
|
|
Accruing
|
|
Accruing
|
|
Nonaccrual
|
|
TDR
|
||||||||
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
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
|
30-59 Days
|
|
60-89 Days
|
|
Greater
than 90 days
|
|
Total
|
|
|
|
|
||||||||||||
(Dollar amounts in thousands)
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Past Due
|
|
Current
|
|
Total
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
1,470
|
|
|
$
|
295
|
|
|
$
|
390
|
|
|
$
|
2,155
|
|
|
$
|
539,042
|
|
|
$
|
541,197
|
|
Farmland
|
|
7
|
|
|
210
|
|
|
2,067
|
|
|
2,284
|
|
|
102,046
|
|
|
104,330
|
|
||||||
Non Farm, Non Residential
|
|
243
|
|
|
—
|
|
|
56
|
|
|
299
|
|
|
187,202
|
|
|
187,501
|
|
||||||
Agriculture
|
|
933
|
|
|
—
|
|
|
346
|
|
|
1,279
|
|
|
136,067
|
|
|
137,346
|
|
||||||
All Other Commercial
|
|
154
|
|
|
3
|
|
|
—
|
|
|
157
|
|
|
217,239
|
|
|
217,396
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
4,243
|
|
|
418
|
|
|
972
|
|
|
5,633
|
|
|
227,340
|
|
|
232,973
|
|
||||||
Home Equity
|
|
98
|
|
|
32
|
|
|
66
|
|
|
196
|
|
|
38,896
|
|
|
39,092
|
|
||||||
Junior Liens
|
|
260
|
|
|
6
|
|
|
17
|
|
|
283
|
|
|
49,540
|
|
|
49,823
|
|
||||||
Multifamily
|
|
52
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
123,242
|
|
|
123,294
|
|
||||||
All Other Residential
|
|
105
|
|
|
—
|
|
|
—
|
|
|
105
|
|
|
8,475
|
|
|
8,580
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
3,239
|
|
|
464
|
|
|
216
|
|
|
3,919
|
|
|
319,025
|
|
|
322,944
|
|
||||||
All Other Consumer
|
|
109
|
|
|
16
|
|
|
7
|
|
|
132
|
|
|
26,597
|
|
|
26,729
|
|
||||||
TOTAL
|
|
$
|
10,913
|
|
|
$
|
1,444
|
|
|
$
|
4,137
|
|
|
$
|
16,494
|
|
|
$
|
1,974,711
|
|
|
$
|
1,991,205
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
30-59 Days
|
|
60-89 Days
|
|
Greater
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
|
|
|
|
|
|
2019
|
|
|
||||||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||||||
January 1,
|
|
$
|
145
|
|
|
$
|
4,043
|
|
|
$
|
618
|
|
|
$
|
4,806
|
|
Added
|
|
—
|
|
|
122
|
|
|
71
|
|
|
193
|
|
||||
Charged Off
|
|
—
|
|
|
(16
|
)
|
|
(16
|
)
|
|
(32
|
)
|
||||
Payments
|
|
(9
|
)
|
|
(130
|
)
|
|
(54
|
)
|
|
(193
|
)
|
||||
March 31,
|
|
$
|
136
|
|
|
$
|
4,019
|
|
|
$
|
619
|
|
|
$
|
4,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Residential
|
|
Consumer
|
|
Total
|
||||
January 1,
|
|
2,709
|
|
|
3,611
|
|
|
714
|
|
|
7,034
|
|
Added
|
|
—
|
|
|
107
|
|
|
74
|
|
|
181
|
|
Charged Off
|
|
—
|
|
|
(16
|
)
|
|
(36
|
)
|
|
(52
|
)
|
Payments
|
|
(37
|
)
|
|
(134
|
)
|
|
(73
|
)
|
|
(244
|
)
|
March 31,
|
|
2,672
|
|
|
3,568
|
|
|
679
|
|
|
6,919
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Not Rated
|
|
Total
|
||||||||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
|
$
|
487,407
|
|
|
$
|
17,636
|
|
|
$
|
24,885
|
|
|
$
|
—
|
|
|
$
|
9,299
|
|
|
$
|
539,227
|
|
Farmland
|
|
88,245
|
|
|
6,552
|
|
|
8,028
|
|
|
—
|
|
|
14
|
|
|
102,839
|
|
||||||
Non Farm, Non Residential
|
|
167,773
|
|
|
6,813
|
|
|
12,311
|
|
|
—
|
|
|
133
|
|
|
187,030
|
|
||||||
Agriculture
|
|
110,152
|
|
|
4,012
|
|
|
20,141
|
|
|
—
|
|
|
532
|
|
|
134,837
|
|
||||||
All Other Commercial
|
|
207,573
|
|
|
41
|
|
|
6,593
|
|
|
—
|
|
|
2,207
|
|
|
216,414
|
|
||||||
Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
First Liens
|
|
44,755
|
|
|
1,019
|
|
|
2,780
|
|
|
—
|
|
|
183,592
|
|
|
232,146
|
|
||||||
Home Equity
|
|
764
|
|
|
—
|
|
|
104
|
|
|
—
|
|
|
38,147
|
|
|
39,015
|
|
||||||
Junior Liens
|
|
1,973
|
|
|
73
|
|
|
157
|
|
|
76
|
|
|
47,423
|
|
|
49,702
|
|
||||||
Multifamily
|
|
122,945
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
122,971
|
|
||||||
All Other Residential
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
8,535
|
|
|
8,550
|
|
||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
619
|
|
|
—
|
|
|
320,980
|
|
|
321,599
|
|
||||||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
26,560
|
|
|
26,594
|
|
||||||
TOTAL
|
|
$
|
1,231,587
|
|
|
$
|
36,146
|
|
|
$
|
75,667
|
|
|
$
|
76
|
|
|
$
|
637,448
|
|
|
$
|
1,980,924
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Pass
|
|
Special
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
|
|
3.
|
Securities
|
|
|
March 31, 2019
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
||||||||
U.S. Government agencies
|
|
$
|
28,916
|
|
|
$
|
725
|
|
|
$
|
(191
|
)
|
|
$
|
29,450
|
|
Mortgage Backed Securities - residential
|
|
182,280
|
|
|
1,127
|
|
|
(1,554
|
)
|
|
181,853
|
|
||||
Collateralized mortgage obligations
|
|
339,477
|
|
|
858
|
|
|
(4,468
|
)
|
|
335,867
|
|
||||
State and municipal obligations
|
|
230,304
|
|
|
5,706
|
|
|
(263
|
)
|
|
235,747
|
|
||||
Collateralized debt obligations
|
|
96
|
|
|
3,198
|
|
|
—
|
|
|
3,294
|
|
||||
TOTAL
|
|
$
|
781,073
|
|
|
$
|
11,614
|
|
|
$
|
(6,476
|
)
|
|
$
|
786,211
|
|
|
|
December 31, 2018
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
||||||||
U.S. Government agencies
|
|
$
|
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
|
|
|
|
Available-for-Sale
|
||||||
|
|
Amortized
|
|
Fair
|
||||
(Dollar amounts in thousands)
|
|
Cost
|
|
Value
|
||||
Due in one year or less
|
|
$
|
4,322
|
|
|
$
|
4,344
|
|
Due after one but within five years
|
|
38,062
|
|
|
38,748
|
|
||
Due after five but within ten years
|
|
61,454
|
|
|
62,846
|
|
||
Due after ten years
|
|
155,478
|
|
|
162,553
|
|
||
|
|
259,316
|
|
|
268,491
|
|
||
Mortgage-backed securities and collateralized mortgage obligations
|
|
521,757
|
|
|
517,720
|
|
||
TOTAL
|
|
$
|
781,073
|
|
|
$
|
786,211
|
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
|
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 agencies
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,926
|
|
|
$
|
(191
|
)
|
|
$
|
4,926
|
|
|
$
|
(191
|
)
|
Mortgage Backed Securities - Residential
|
|
$
|
98
|
|
|
$
|
(1
|
)
|
|
$
|
119,293
|
|
|
$
|
(1,553
|
)
|
|
$
|
119,391
|
|
|
$
|
(1,554
|
)
|
Collateralized mortgage obligations
|
|
196
|
|
|
—
|
|
|
211,827
|
|
|
(4,468
|
)
|
|
212,023
|
|
|
(4,468
|
)
|
||||||
State and municipal obligations
|
|
1,374
|
|
|
(22
|
)
|
|
17,031
|
|
|
(241
|
)
|
|
18,405
|
|
|
(263
|
)
|
||||||
Total temporarily impaired securities
|
|
$
|
1,668
|
|
|
$
|
(23
|
)
|
|
$
|
353,077
|
|
|
$
|
(6,453
|
)
|
|
$
|
354,745
|
|
|
$
|
(6,476
|
)
|
|
|
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
|
||||||||||||
US Government Agencies
|
|
$
|
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
|
)
|
|
|
Three Months Ended March 31,
|
||||||
(Dollar amounts in thousands)
|
|
2019
|
|
2018
|
||||
Beginning balance
|
|
$
|
2,974
|
|
|
$
|
7,132
|
|
Increases to the amount related to the credit
|
|
|
|
|
|
|
||
Loss for which other-than-temporary was previously recognized
|
|
—
|
|
|
—
|
|
||
Reductions for increases in cash flows collected
|
|
—
|
|
|
—
|
|
||
Reductions for securities called during the period
|
|
—
|
|
|
—
|
|
||
Ending balance
|
|
$
|
2,974
|
|
|
$
|
7,132
|
|
4.
|
Fair Value
|
|
|
March 31, 2019
|
||||||||||||||
|
|
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
U.S. Government agencies
|
|
$
|
—
|
|
|
$
|
29,450
|
|
|
$
|
—
|
|
|
$
|
29,450
|
|
Mortgage Backed Securities-residential
|
|
—
|
|
|
181,853
|
|
|
—
|
|
|
181,853
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
335,867
|
|
|
—
|
|
|
335,867
|
|
||||
State and municipal
|
|
—
|
|
|
232,857
|
|
|
2,890
|
|
|
235,747
|
|
||||
Collateralized debt obligations
|
|
—
|
|
|
—
|
|
|
3,294
|
|
|
3,294
|
|
||||
TOTAL
|
|
$
|
—
|
|
|
$
|
780,027
|
|
|
$
|
6,184
|
|
|
$
|
786,211
|
|
Derivative Assets
|
|
|
|
|
304
|
|
|
|
|
|
|
|
||||
Derivative Liabilities
|
|
|
|
|
(304
|
)
|
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
|
||||||||||||||
(Dollar amounts in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
U.S. Government agencies
|
|
$
|
—
|
|
|
$
|
25,364
|
|
|
$
|
—
|
|
|
$
|
25,364
|
|
Mortgage Backed Securities-residential
|
|
—
|
|
|
178,743
|
|
|
—
|
|
|
178,743
|
|
||||
Mortgage Backed Securities-commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
|
—
|
|
|
343,616
|
|
|
—
|
|
|
343,616
|
|
||||
State and municipal
|
|
—
|
|
|
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
|
)
|
|
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||
|
Three Months Ended March 31, 2019
|
||||||||||
(Dollar amounts in thousands)
|
State and
municipal
obligations
|
|
Collateralized
debt
obligations
|
|
Total
|
||||||
Beginning balance, January 1
|
$
|
3,135
|
|
|
$
|
3,258
|
|
|
$
|
6,393
|
|
Total realized/unrealized gains or losses
|
|
|
|
|
|
|
|
|
|||
Included in earnings
|
—
|
|
|
—
|
|
|
—
|
|
|||
Included in other comprehensive income
|
—
|
|
|
77
|
|
|
77
|
|
|||
Transfers
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
(245
|
)
|
|
(41
|
)
|
|
(286
|
)
|
|||
Ending balance, March 31
|
$
|
2,890
|
|
|
$
|
3,294
|
|
|
$
|
6,184
|
|
|
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||
|
|
Year Ended December 31, 2018
|
||||||||||
(Dollar amounts in thousands)
|
|
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
|
|
(Dollar amounts in thousands)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
|
||
State and municipal obligations
|
|
$
|
2,890
|
|
|
Discounted cash flow
|
|
Discount rate
Probability of default |
|
2.87%-4.44% 0%
|
Other real estate
|
|
$
|
857
|
|
|
Sales comparison/income approach
|
|
Discount rate for age of appraisal and market conditions
|
|
5.00%-20.00%
|
Impaired Loans
|
|
$
|
1,525
|
|
|
Sales comparison/income approach
|
|
Discount rate for age of appraisal and market conditions
|
|
0.00%-50.00%
|
(Dollar amounts in thousands)
|
|
Fair Value
|
|
Valuation Technique(s)
|
|
Unobservable Input(s)
|
|
Range
|
||
State and municipal obligations
|
|
$
|
3,135
|
|
|
Discounted cash flow
|
|
Discount rate
Probability of default |
|
2.64%-4.80% 0%
|
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%
|
|
|
March 31, 2019
|
||||||||||
(Dollar amounts in thousands)
|
|
Carrying
Value
|
|
Allowance
for Loan
Losses
Allocated
|
|
Fair Value
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|||
Commercial & Industrial
|
|
$
|
1,733
|
|
|
$
|
531
|
|
|
$
|
1,202
|
|
Farmland
|
|
210
|
|
|
40
|
|
|
170
|
|
|||
Non Farm, Non Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Agriculture
|
|
346
|
|
|
192
|
|
|
154
|
|
|||
All Other Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential
|
|
|
|
|
|
|
|
|
|
|||
First Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Home Equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Junior Liens
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Multifamily
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
|
|
|
|
|
|
|
|
|||
Motor Vehicle
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
All Other Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
TOTAL
|
|
$
|
2,289
|
|
|
$
|
763
|
|
|
$
|
1,526
|
|
|
|
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
|
|
|
—
|
|
|||
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
|
|
|
|
March 31, 2019
|
||||||||||||||||||
|
|
Carrying
|
|
Fair Value
|
||||||||||||||||
(Dollar amounts in thousands)
|
|
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Cash and due from banks
|
|
$
|
54,627
|
|
|
$
|
19,063
|
|
|
$
|
35,564
|
|
|
$
|
—
|
|
|
$
|
54,627
|
|
Federal funds sold
|
|
2,000
|
|
|
—
|
|
|
2,000
|
|
|
—
|
|
|
2,000
|
|
|||||
Securities available-for-sale
|
|
786,211
|
|
|
—
|
|
|
780,027
|
|
|
6,184
|
|
|
786,211
|
|
|||||
Restricted stock
|
|
10,412
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
Loans, net
|
|
1,963,093
|
|
|
—
|
|
|
—
|
|
|
1,951,534
|
|
|
1,951,534
|
|
|||||
Accrued interest receivable
|
|
14,379
|
|
|
—
|
|
|
4,168
|
|
|
10,211
|
|
|
14,379
|
|
|||||
Deposits
|
|
(2,419,556
|
)
|
|
—
|
|
|
(2,411,197
|
)
|
|
—
|
|
|
(2,411,197
|
)
|
|||||
Short-term borrowings
|
|
(56,648
|
)
|
|
—
|
|
|
(56,648
|
)
|
|
—
|
|
|
(56,648
|
)
|
|||||
Federal Home Loan Bank advances
|
|
(25,000
|
)
|
|
—
|
|
|
(25,000
|
)
|
|
—
|
|
|
(25,000
|
)
|
|||||
Accrued interest payable
|
|
(584
|
)
|
|
—
|
|
|
(584
|
)
|
|
—
|
|
|
(584
|
)
|
|
|
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
|
)
|
5.
|
Short-Term Borrowings
|
|
|
March 31, 2019
|
||||||||||||||||||
Repurchase Agreements
|
|
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
|
|
$
|
9,223
|
|
|
$
|
90
|
|
|
$
|
155
|
|
|
$
|
12,530
|
|
|
$
|
21,998
|
|
|
|
December 31, 2018
|
||||||||||||||||||
Repurchase Agreements
|
|
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
|
|
6.
|
Components of Net Periodic Benefit Cost
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
|
(000's)
|
||||||||||||||
|
|
Pension Benefits
|
|
Post-Retirement
Health Benefits
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
|
$
|
304
|
|
|
$
|
347
|
|
|
$
|
9
|
|
|
$
|
10
|
|
Interest cost
|
|
866
|
|
|
798
|
|
|
36
|
|
|
33
|
|
||||
Expected return on plan assets
|
|
(896
|
)
|
|
(991
|
)
|
|
—
|
|
|
—
|
|
||||
Net amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net amortization of net (gain) loss
|
|
389
|
|
|
362
|
|
|
(4
|
)
|
|
—
|
|
||||
Net Periodic Benefit Cost
|
|
$
|
663
|
|
|
$
|
516
|
|
|
$
|
41
|
|
|
$
|
43
|
|
7.
|
New accounting standards
|
8.
|
Revenue from Contracts with Customers
|
|
|
Three Months Ended March 31,
|
||||||
(Dollar amounts in thousands)
|
2019
|
|
2018
|
|||||
Non-interest income
|
|
|
|
|||||
|
Service charges on deposits
|
$
|
2,988
|
|
|
$
|
3,233
|
|
|
Asset management fees
|
1,147
|
|
|
1,218
|
|
||
|
Interchange income
|
74
|
|
|
68
|
|
||
|
Net gains on sales of loans
(a)
|
420
|
|
|
340
|
|
||
|
Loan servicing fees
(a)
|
318
|
|
|
391
|
|
||
|
Net gains/(losses) on sales of securities
(a)
|
(4
|
)
|
|
—
|
|
||
|
Other service charges and fees
(a)
|
2,320
|
|
|
2,300
|
|
||
|
Other
(b)
|
373
|
|
|
553
|
|
||
|
Total non-interest income
|
$
|
7,636
|
|
|
$
|
8,103
|
|
9.
|
Acquisitions, Divestitures and FDIC Indemnification Asset
|
|
|
|
|
|
|
2019
|
||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Beginning balance, January 1,
|
|
$
|
1,530
|
|
|
$
|
—
|
|
|
$
|
1,530
|
|
Discount accretion
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Disposals
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|||
ASC 310-30 Loans, March 31,
|
|
$
|
1,494
|
|
|
$
|
—
|
|
|
$
|
1,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
||||||
(Dollar amounts in thousands)
|
|
Commercial
|
|
Consumer
|
|
Total
|
||||||
Beginning balance, January 1,
|
|
$
|
1,896
|
|
|
$
|
—
|
|
|
$
|
1,896
|
|
Discount accretion
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Disposals
|
|
(36
|
)
|
|
—
|
|
|
(36
|
)
|
|||
ASC 310-30 Loans, March 31,
|
|
$
|
1,860
|
|
|
$
|
—
|
|
|
$
|
1,860
|
|
|
|
|
|
|
|
|
10.
|
Accumulated Other Comprehensive Income
|
|
|
Unrealized
|
|
|
|
|
||||||
|
|
gains and
|
|
2019
|
||||||||
|
|
(Losses) on
available-
for-sale
|
|
Retirement
|
|
|
||||||
(Dollar amounts in thousands)
|
|
Securities
|
|
plans
|
|
Total
|
||||||
Beginning balance, January 1,
|
|
$
|
(6,105
|
)
|
|
$
|
(17,349
|
)
|
|
$
|
(23,454
|
)
|
Change in other comprehensive income (loss) before reclassification
|
|
10,221
|
|
|
—
|
|
|
10,221
|
|
|||
Amounts reclassified from accumulated other comprehensive income
|
|
3
|
|
|
303
|
|
|
306
|
|
|||
ASU 2018-02 adjustment
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net current period other comprehensive income (loss)
|
|
10,224
|
|
|
303
|
|
|
10,527
|
|
|||
Ending balance, March 31,
|
|
$
|
4,119
|
|
|
$
|
(17,046
|
)
|
|
$
|
(12,927
|
)
|
|
|
|
|
|
|
|
|
|
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 (loss) before reclassification
|
|
(7,699
|
)
|
|
—
|
|
|
(7,699
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income
|
|
—
|
|
|
281
|
|
|
281
|
|
|||
Net current period other comprehensive income
|
|
(7,699
|
)
|
|
281
|
|
|
(7,418
|
)
|
|||
ASU 2018-02 adjustment
|
|
498
|
|
|
(2,864
|
)
|
|
(2,366
|
)
|
|||
Ending balance, March 31,
|
|
$
|
(4,943
|
)
|
|
$
|
(19,545
|
)
|
|
$
|
(24,488
|
)
|
|
|
|
|
|
|
|
|
|
Balance
at
|
|
Current
Period
|
|
Balance
at
|
||||||
(Dollar amounts in thousands)
|
|
1/1/2019
|
|
Change
|
|
3/31/2019
|
||||||
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
||||||
without other than temporary impairment
|
|
$
|
(8,446
|
)
|
|
$
|
10,166
|
|
|
$
|
1,720
|
|
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|||
with other than temporary impairment
|
|
2,341
|
|
|
58
|
|
|
2,399
|
|
|||
Total unrealized loss on securities available-for-sale
|
|
$
|
(6,105
|
)
|
|
$
|
10,224
|
|
|
$
|
4,119
|
|
Unrealized loss on retirement plans
|
|
(17,349
|
)
|
|
303
|
|
|
(17,046
|
)
|
|||
TOTAL
|
|
$
|
(23,454
|
)
|
|
$
|
10,527
|
|
|
$
|
(12,927
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at
|
|
Current
Period
|
|
ASU 2018-02
|
|
Balance
at
|
||||||||
(Dollar amounts in thousands)
|
|
1/1/2018
|
|
Change
|
|
Adjustment
|
|
3/31/2018
|
||||||||
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|||||
without other than temporary impairment
|
|
$
|
(1,371
|
)
|
|
$
|
(4,990
|
)
|
|
$
|
(2,864
|
)
|
|
$
|
(9,225
|
)
|
Unrealized gains (losses) on securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|||||
with other than temporary impairment
|
|
3,629
|
|
|
653
|
|
|
|
|
4,282
|
|
|||||
Total unrealized loss on securities available-for-sale
|
|
$
|
2,258
|
|
|
$
|
(4,337
|
)
|
|
$
|
(2,864
|
)
|
|
$
|
(4,943
|
)
|
Unrealized loss on retirement plans
|
|
(16,962
|
)
|
|
(3,081
|
)
|
|
498
|
|
|
(19,545
|
)
|
||||
TOTAL
|
|
$
|
(14,704
|
)
|
|
$
|
(7,418
|
)
|
|
$
|
(2,366
|
)
|
|
$
|
(24,488
|
)
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
|
|
||
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
|
|
$
|
(4
|
)
|
|
Net securities gains (losses)
|
on available-for-sale
|
|
1
|
|
|
Income tax expense
|
|
securities
|
|
$
|
(3
|
)
|
|
Net of tax
|
|
|
|
|
|
||
Amortization of
|
|
$
|
(389
|
)
|
|
(a) Salary and benefits
|
retirement plan items
|
|
86
|
|
|
Income tax expense
|
|
|
|
$
|
(303
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(306
|
)
|
|
Net of tax
|
|
|
|
|
|
|
|
Three Months Ended March 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
|
|
$
|
—
|
|
|
Net securities gains (losses)
|
on available-for-sale
|
|
—
|
|
|
Income tax expense
|
|
securities
|
|
$
|
—
|
|
|
Net of tax
|
|
|
|
|
|
||
Amortization of
|
|
$
|
(362
|
)
|
|
(a) Salary and benefits
|
retirement plan items
|
|
81
|
|
|
Income tax expense
|
|
|
|
$
|
(281
|
)
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(281
|
)
|
|
Net of tax
|
|
|
|
|
|
11.
|
Leases
|
(Dollar amounts in thousands)
|
Three Months Ended March 31, 2019
|
||
Operating lease cost
|
$
|
208
|
|
Short-term lease cost
|
11
|
|
|
Variable lease cost
|
14
|
|
|
Total lease cost
|
$
|
233
|
|
|
|
||
Other information:
|
|
||
Cash paid for amounts included in the measurement of operating lease liabilities
|
223
|
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
6,613
|
|
(Dollar amounts in thousands)
|
March 31, 2019
|
|||
Twelve Months Ended March 31,
|
|
|||
|
2020
|
$
|
858
|
|
|
2021
|
780
|
|
|
|
2022
|
763
|
|
|
|
2023
|
763
|
|
|
|
2024
|
683
|
|
|
Thereafter
|
3,825
|
|
||
Total Future Minimum Lease Payments
|
7,672
|
|
||
Amounts Representing Interest
|
(1,235
|
)
|
||
Present Value of Net Future Minimum Lease Payments
|
$
|
6,437
|
|
Basis Point
|
|
Percentage Change in Net Interest Income
|
|||||||
Interest Rate Change
|
|
12 months
|
|
24 months
|
|
36 months
|
|||
Down 200
|
|
-8.01
|
%
|
|
-14.07
|
%
|
|
-19.11
|
%
|
Down 100
|
|
-3.23
|
|
|
-6.71
|
|
|
-9.56
|
|
Up 100
|
|
2.25
|
|
|
5.40
|
|
|
8.66
|
|
Up 200
|
|
1.68
|
|
|
7.64
|
|
|
14.10
|
|
|
March 31, 2019
|
|
December 31, 2018
|
|
To Be Well Capitalized
|
|||
Common equity tier 1 capital
|
|
|
|
|
|
|||
Corporation
|
18.65
|
%
|
|
18.48
|
%
|
|
N/A
|
|
First Financial Bank
|
17.94
|
%
|
|
17.99
|
%
|
|
6.50
|
%
|
Total risk-based capital
|
|
|
|
|
|
|
|
|
Corporation
|
19.54
|
%
|
|
19.36
|
%
|
|
N/A
|
|
First Financial Bank
|
18.67
|
%
|
|
18.71
|
%
|
|
10.00
|
%
|
Tier I risk-based capital
|
|
|
|
|
|
|
|
|
Corporation
|
18.65
|
%
|
|
18.48
|
%
|
|
N/A
|
|
First Financial Bank
|
17.94
|
%
|
|
17.99
|
%
|
|
8.00
|
%
|
Tier I leverage capital
|
|
|
|
|
|
|
|
|
Corporation
|
14.83
|
%
|
|
14.59
|
%
|
|
N/A
|
|
First Financial Bank
|
14.15
|
%
|
|
14.19
|
%
|
|
5.00
|
%
|
ITEM 4.
|
Controls and Procedures
|
ITEM 1.
|
Legal Proceedings.
|
ITEM 1A.
|
Risk Factors.
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
|
|
|
|
|
(c)
|
|
|
||
|
|
|
|
|
Total Number Of Shares
|
|
|
||
|
|
|
|
|
Purchased As Part Of
|
|
(c) Maximum
|
||
|
(a) Total Number Of
|
|
(b) Average Price
|
|
Publicly Announced Plans
|
|
Number of Shares That May Yet
|
||
|
Shares Purchased
|
|
Paid Per Share
|
|
Or Programs *
|
|
Be Purchased *
|
||
January 1-31, 2019
|
—
|
|
|
—
|
|
|
N/A
|
|
N/A
|
February 1-28, 2019
|
—
|
|
|
—
|
|
|
—
|
|
—
|
March 1-31, 2019
|
—
|
|
|
—
|
|
|
—
|
|
—
|
Total
|
—
|
|
|
—
|
|
|
—
|
|
71,882
|
ITEM 3.
|
Defaults upon Senior Securities.
|
ITEM 4.
|
Mine Safety Disclosures
|
ITEM 5.
|
Other Information.
|
ITEM 6.
|
Exhibits.
|
Exhibit No.:
|
Description of Exhibit:
|
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 on August 24, 2012.
|
|
Employment Agreement for Norman L. Lowery, dated and effective July 1, 2019, incorporated by reference to Exhibit 10.01 of the Corporation’s Form 8-K filed on April 3, 2019.
|
|
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 on September 4, 2007.
|
|
2005 Executives Deferred Compensation Plan, incorporated by reference to Exhibit 10.5 of the Corporation’s Form 8-K filed on September 4, 2007.
|
|
2005 Executives Supplemental Retirement Plan, incorporated by reference to Exhibit 10.6 of the Corporation’s Form 8-K filed on September 4, 2007.
|
|
First Financial Corporation 2010 Long-Term Incentive Compensation Plan incorporated by reference to Exhibit 10. 9 of 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 of 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 of the Corporation’s Form 10-Q for the quarter ended March 31, 2011 filed on May 9, 2011.
|
|
Form of Restricted Stock Award Agreement under the First Financial Corporation 2011 Omnibus Equity Incentive Plan incorporated by reference to Exhibit 10.12 of the Corporation's Form 10-Q for the quarter ended March 31, 2012 filed on May 10, 2012.
|
|
Employment Agreement for Norman D. Lowery, dated January 28, 2109, incorporated by reference to Exhibit 10.1 of the Corporation’s Form 8-K filed February 1, 2019.
|
|
Employment Agreement for Rodger A. McHargue, dated January 28, 2019, incorporated by reference to Exhibit 10.2 of the Corporation’s Form 8-K filed February 1, 2019.
|
|
Employment Agreement for Steven H. Holliday, dated January 28, 2019, incorporated by reference to Exhibit 10.3 of the Corporation’s Form 8-K filed February 1, 2019.
|
|
Employment Agreement for Karen L. Stinson-Milienu, dated January 28, 2019, incorporated by reference to Exhibit 10.4 of the Corporation’s Form 8-K filed February 1, 2019.
|
|
Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 by Principal Executive Officer, dated May 8, 2019.
|
|
Sarbanes-Oxley Act 302 Certification for Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 by Principal Financial Officer, dated May 8, 2019.
|
|
Certification, dated May 8, 2019, of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2005 on Form 10-Q for the quarter ended March 31, 2019.
|
|
101.1
|
Financial statements from the Quarterly Report on Form 10-Q of the Corporation for the quarter ended March 31, 2019, formatted in XBRL pursuant to Rule 405 : (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income and Comprehensive Income, (iii) Consolidated Statements of Cash Flows, (iv) Consolidated Statements of Shareholders’ Equity, and (v) Notes to Consolidated Financial Statements, as blocks of text and in detail**.
|
|
|
|
FIRST FINANCIAL CORPORATION
|
|
|
|
(Registrant)
|
|
|
|
|
Date:
|
May 8, 2019
|
|
By /s/ Norman L. Lowery
|
|
|
|
Norman L. Lowery, Vice Chairman, President and CEO
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
Date:
|
May 8, 2019
|
|
By /s/ Rodger A. McHargue
|
|
|
|
Rodger A. McHargue, Treasurer and CFO
|
|
|
|
(Principal Financial Officer)
|
1
|
|
I have reviewed this quarterly report on Form 10-Q 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 controls over financial reporting.
|
By /s/ Norman L. Lowery
|
Norman L. Lowery,
|
Vice Chairman, President and CEO
|
(Principal Executive Officer)
|
1
|
|
I have reviewed this quarterly report on Form 10-Q 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 controls over financial reporting.
|
By /s/ Rodger A. McHargue
|
Rodger A. McHargue
|
Treasurer and CFO
|
(Principal Financial Officer)
|
May 8, 2019
|
By /s/ Norman L. Lowery
|
|
Norman L. Lowery, Vice Chairman, President & CEO
|
|
(Principal Executive Officer)
|
|
|
May 8, 2019
|
By /s/ Rodger A. McHargue
|
|
Rodger A. McHargue, Treasurer & CFO
|
|
(Principal Financial Officer)
|