New York
|
|
22-2448962
|
||
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
||
250 GLEN STREET, GLENS FALLS, NEW YORK 12801
|
||||
(Address of principal executive offices) (Zip Code)
|
||||
Registrant’s telephone number, including area code: (518) 745-1000
|
Class
|
|
Outstanding as of April 30, 2018
|
Common Stock, par value $1.00 per share
|
|
13,969,371
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(Unaudited)
|
|||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
||||||
ASSETS
|
|
|
|
|
|
||||||
Cash and Due From Banks
|
$
|
29,525
|
|
|
$
|
42,562
|
|
|
$
|
50,158
|
|
Interest-Bearing Deposits at Banks
|
70,747
|
|
|
30,276
|
|
|
14,645
|
|
|||
Investment Securities:
|
|
|
|
|
|
||||||
Available-for-Sale
|
305,589
|
|
|
300,200
|
|
|
347,159
|
|
|||
Held-to-Maturity (Approximate Fair Value of $324,937 at March 31, 2018; $335,901 at December 31, 2017; and $335,105 at March 31, 2017)
|
330,124
|
|
|
335,907
|
|
|
335,211
|
|
|||
Equity Securities
|
1,579
|
|
|
—
|
|
|
—
|
|
|||
Other Investments
|
4,780
|
|
|
9,949
|
|
|
6,826
|
|
|||
Loans
|
1,993,037
|
|
|
1,950,770
|
|
|
1,810,805
|
|
|||
Allowance for Loan Losses
|
(19,057
|
)
|
|
(18,586
|
)
|
|
(17,216
|
)
|
|||
Net Loans
|
1,973,980
|
|
|
1,932,184
|
|
|
1,793,589
|
|
|||
Premises and Equipment, Net
|
27,815
|
|
|
27,619
|
|
|
26,585
|
|
|||
Goodwill
|
21,873
|
|
|
21,873
|
|
|
21,873
|
|
|||
Other Intangible Assets, Net
|
2,172
|
|
|
2,289
|
|
|
2,575
|
|
|||
Other Assets
|
58,503
|
|
|
57,606
|
|
|
57,765
|
|
|||
Total Assets
|
$
|
2,826,687
|
|
|
$
|
2,760,465
|
|
|
$
|
2,656,386
|
|
LIABILITIES
|
|
|
|
|
|
||||||
Noninterest-Bearing Deposits
|
$
|
452,347
|
|
|
$
|
441,945
|
|
|
$
|
402,506
|
|
Interest-Bearing Checking Accounts
|
944,161
|
|
|
907,315
|
|
|
959,170
|
|
|||
Savings Deposits
|
762,220
|
|
|
694,573
|
|
|
696,625
|
|
|||
Time Deposits over $250,000
|
85,403
|
|
|
38,147
|
|
|
30,993
|
|
|||
Other Time Deposits
|
167,142
|
|
|
163,136
|
|
|
167,242
|
|
|||
Total Deposits
|
2,411,273
|
|
|
2,245,116
|
|
|
2,256,536
|
|
|||
Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase |
74,957
|
|
|
64,966
|
|
|
32,035
|
|
|||
Federal Home Loan Bank Overnight Advances
|
—
|
|
|
105,000
|
|
|
32,000
|
|
|||
Federal Home Loan Bank Term Advances
|
45,000
|
|
|
55,000
|
|
|
55,000
|
|
|||
Junior Subordinated Obligations Issued to Unconsolidated Subsidiary Trusts
|
20,000
|
|
|
20,000
|
|
|
20,000
|
|
|||
Other Liabilities
|
22,723
|
|
|
20,780
|
|
|
24,704
|
|
|||
Total Liabilities
|
2,573,953
|
|
|
2,510,862
|
|
|
2,420,275
|
|
|||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||||||
Preferred Stock, $5 Par Value; 1,000,000 Shares Authorized
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common Stock, $1 Par Value; 20,000,000 Shares Authorized (18,481,301 Shares Issued and Outstanding at March 31, 2018; 18,481,301 at
December 31, 2017 and 17,943,201 at March 31, 2017) |
18,481
|
|
|
18,481
|
|
|
17,943
|
|
|||
Additional Paid-in Capital
|
290,980
|
|
|
290,219
|
|
|
271,517
|
|
|||
Retained Earnings
|
34,093
|
|
|
28,818
|
|
|
31,901
|
|
|||
Unallocated ESOP Shares (9,643 Shares at March 31, 2018; 9,643 Shares at December 31, 2017 and 19,466 Shares at March 31, 2017)
|
(200
|
)
|
|
(200
|
)
|
|
(400
|
)
|
|||
Accumulated Other Comprehensive Loss
|
(11,285
|
)
|
|
(8,514
|
)
|
|
(6,680
|
)
|
|||
Treasury Stock, at Cost (4,516,444 Shares at March 31, 2018; 4,541,524 Shares at December 31, 2017 and 4,442,292 Shares at March 31, 2017)
|
(79,335
|
)
|
|
(79,201
|
)
|
|
(78,170
|
)
|
|||
Total Stockholders’ Equity
|
252,734
|
|
|
249,603
|
|
|
236,111
|
|
|||
Total Liabilities and Stockholders’ Equity
|
$
|
2,826,687
|
|
|
$
|
2,760,465
|
|
|
$
|
2,656,386
|
|
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
|
|||||||
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
INTEREST AND DIVIDEND INCOME
|
|
|
|
||||
Interest and Fees on Loans
|
$
|
18,858
|
|
|
$
|
16,402
|
|
Interest on Deposits at Banks
|
134
|
|
|
60
|
|
||
Interest and Dividends on Investment Securities:
|
|
|
|
||||
Fully Taxable
|
1,893
|
|
|
1,990
|
|
||
Exempt from Federal Taxes
|
1,533
|
|
|
1,545
|
|
||
Total Interest and Dividend Income
|
22,418
|
|
|
19,997
|
|
||
INTEREST EXPENSE
|
|
|
|
||||
Interest-Bearing Checking Accounts
|
387
|
|
|
331
|
|
||
Savings Deposits
|
522
|
|
|
291
|
|
||
Time Deposits over $250,000
|
204
|
|
|
55
|
|
||
Other Time Deposits
|
259
|
|
|
228
|
|
||
Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase |
16
|
|
|
7
|
|
||
Federal Home Loan Bank Advances
|
414
|
|
|
445
|
|
||
Junior Subordinated Obligations Issued to
Unconsolidated Subsidiary Trusts |
214
|
|
|
179
|
|
||
Total Interest Expense
|
2,016
|
|
|
1,536
|
|
||
NET INTEREST INCOME
|
20,402
|
|
|
18,461
|
|
||
Provision for Loan Losses
|
746
|
|
|
358
|
|
||
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES |
19,656
|
|
|
18,103
|
|
||
NONINTEREST INCOME
|
|
|
|
||||
Income From Fiduciary Activities
|
2,197
|
|
|
2,018
|
|
||
Fees for Other Services to Customers
|
2,380
|
|
|
2,256
|
|
||
Insurance Commissions
|
1,903
|
|
|
2,198
|
|
||
Net Unrealized Gain on Equity Securities
|
18
|
|
|
—
|
|
||
Net Gain on Sales of Loans
|
38
|
|
|
45
|
|
||
Other Operating Income
|
353
|
|
|
178
|
|
||
Total Noninterest Income
|
6,889
|
|
|
6,695
|
|
||
NONINTEREST EXPENSE
|
|
|
|
||||
Salaries and Employee Benefits
|
9,369
|
|
|
9,147
|
|
||
Occupancy Expenses, Net
|
2,541
|
|
|
2,544
|
|
||
FDIC Assessments
|
217
|
|
|
226
|
|
||
Other Operating Expense
|
3,829
|
|
|
3,558
|
|
||
Total Noninterest Expense
|
15,956
|
|
|
15,475
|
|
||
INCOME BEFORE PROVISION FOR INCOME TAXES
|
10,589
|
|
|
9,323
|
|
||
Provision for Income Taxes
|
2,058
|
|
|
2,692
|
|
||
NET INCOME
|
$
|
8,531
|
|
|
$
|
6,631
|
|
Average Shares Outstanding
1
:
|
|
|
|
||||
Basic
|
13,936
|
|
|
13,889
|
|
||
Diluted
|
14,016
|
|
|
14,001
|
|
||
Per Common Share:
|
|
|
|
||||
Basic Earnings
|
$
|
0.61
|
|
|
$
|
0.48
|
|
Diluted Earnings
|
0.61
|
|
|
0.47
|
|
ARROW FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
(Unaudited)
|
|||||||
|
Three Months Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Net Income
|
$
|
8,531
|
|
|
$
|
6,631
|
|
Other Comprehensive Income, Net of Tax:
|
|
|
|
||||
Net Unrealized Securities Holding Gains (Losses)
Arising During the Period |
(2,485
|
)
|
|
47
|
|
||
Amortization of Net Retirement Plan Actuarial Loss
|
46
|
|
|
109
|
|
||
Accretion of Net Retirement Plan Prior
Service Credit |
(1
|
)
|
|
(2
|
)
|
||
Other Comprehensive Income (Loss)
|
(2,440
|
)
|
|
154
|
|
||
Comprehensive Income
|
$
|
6,091
|
|
|
$
|
6,785
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Unallo-cated ESOP
Shares
|
|
Accumu-lated
Other Com-
prehensive
Loss
|
|
Treasury
Stock
|
|
Total
|
||||||||||||||
Balance at December 31, 2017
|
$
|
18,481
|
|
|
$
|
290,219
|
|
|
$
|
28,818
|
|
|
$
|
(200
|
)
|
|
$
|
(8,514
|
)
|
|
$
|
(79,201
|
)
|
|
$
|
249,603
|
|
Net Income
|
—
|
|
|
—
|
|
|
8,531
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,531
|
|
|||||||
Other Comprehensive Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,440
|
)
|
|
—
|
|
|
(2,440
|
)
|
|||||||
Impact of the Adoption of ASU 2014-09
|
—
|
|
|
—
|
|
|
(102
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(102
|
)
|
|||||||
Impact of the Adoption of ASU 2016-01
|
—
|
|
|
—
|
|
|
331
|
|
|
—
|
|
|
(331
|
)
|
|
—
|
|
|
—
|
|
|||||||
Cash Dividends Paid, $.25 per Share
|
—
|
|
|
—
|
|
|
(3,485
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,485
|
)
|
|||||||
Stock Options Exercised, Net (27,662 Shares)
|
—
|
|
|
307
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
303
|
|
|
610
|
|
|||||||
Shares Issued Under the Employee Stock
Purchase Plan (3,674 Shares)
|
—
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
116
|
|
|||||||
Shares Issued for Dividend
Reinvestment Plans (12,459 Shares)
|
—
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142
|
|
|
431
|
|
|||||||
Stock-Based Compensation Expense
|
—
|
|
|
89
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|||||||
Purchase of Treasury Stock
(18,715 Shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(619
|
)
|
|
(619
|
)
|
|||||||
Balance at March 31, 2018
|
$
|
18,481
|
|
|
$
|
290,980
|
|
|
$
|
34,093
|
|
|
$
|
(200
|
)
|
|
$
|
(11,285
|
)
|
|
$
|
(79,335
|
)
|
|
$
|
252,734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance at December 31, 2016
|
$
|
17,943
|
|
|
$
|
270,880
|
|
|
$
|
28,644
|
|
|
$
|
(400
|
)
|
|
$
|
(6,834
|
)
|
|
$
|
(77,381
|
)
|
|
$
|
232,852
|
|
Net Income
|
—
|
|
|
—
|
|
|
6,631
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,631
|
|
|||||||
Other Comprehensive Income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|||||||
Cash Dividends Paid, $.243 per Share
1
|
—
|
|
|
—
|
|
|
(3,374
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,374
|
)
|
|||||||
Stock Options Exercised, Net (16,721 Shares)
|
—
|
|
|
187
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201
|
|
|
388
|
|
|||||||
Shares Issued Under the Directors’ Stock
Plan (554 Shares)
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
22
|
|
|||||||
Shares Issued Under the Employee Stock
Purchase Plan (3,049 Shares)
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
106
|
|
|||||||
Shares Issued for Dividend
Reinvestment Plans (12,447 Shares)
|
—
|
|
|
284
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
425
|
|
|||||||
Stock-Based Compensation Expense
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||||
Purchase of Treasury Stock
(33,970 Shares)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,176
|
)
|
|
(1,176
|
)
|
|||||||
Balance at March 31, 2017
|
$
|
17,943
|
|
|
$
|
271,517
|
|
|
$
|
31,901
|
|
|
$
|
(400
|
)
|
|
$
|
(6,680
|
)
|
|
$
|
(78,170
|
)
|
|
$
|
236,111
|
|
|
Three Months Ended March 31,
|
||||||
Cash Flows from Operating Activities:
|
2018
|
|
2017
|
||||
Net Income
|
$
|
8,531
|
|
|
$
|
6,631
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
|
|
|
||||
Provision for Loan Losses
|
746
|
|
|
358
|
|
||
Depreciation and Amortization
|
1,199
|
|
|
1,524
|
|
||
Net Unrealized Gains on Equity Securities
|
(18
|
)
|
|
—
|
|
||
Loans Originated and Held-for-Sale
|
(12,326
|
)
|
|
(2,186
|
)
|
||
Proceeds from the Sale of Loans Held-for-Sale
|
12,520
|
|
|
1,818
|
|
||
Net Gains on the Sale of Loans
|
(38
|
)
|
|
(45
|
)
|
||
Net Losses on the Sale of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
|
32
|
|
|
7
|
|
||
Contributions to Retirement Benefit Plans
|
(134
|
)
|
|
(165
|
)
|
||
Deferred Income Tax Benefit
|
(220
|
)
|
|
(82
|
)
|
||
Shares Issued Under the Directors’ Stock Plan
|
—
|
|
|
22
|
|
||
Stock-Based Compensation Expense
|
89
|
|
|
83
|
|
||
Tax Benefit from Exercise of Stock Options
|
112
|
|
|
45
|
|
||
Net Increase in Other Assets
|
(395
|
)
|
|
(886
|
)
|
||
Net Increase in Other Liabilities
|
2,185
|
|
|
2,817
|
|
||
Net Cash Provided By Operating Activities
|
12,283
|
|
|
9,941
|
|
||
Cash Flows from Investing Activities:
|
|
|
|
||||
Proceeds from the Maturities and Calls of Securities Available-for-Sale
|
9,380
|
|
|
11,826
|
|
||
Purchases of Securities Available-for-Sale
|
(19,979
|
)
|
|
(12,324
|
)
|
||
Proceeds from the Maturities and Calls of Securities Held-to-Maturity
|
6,459
|
|
|
10,474
|
|
||
Purchases of Securities Held-to-Maturity
|
(921
|
)
|
|
(556
|
)
|
||
Net Increase in Loans
|
(42,968
|
)
|
|
(57,637
|
)
|
||
Proceeds from the Sales of Premises and Equipment, Other Real Estate Owned and Repossessed Assets
|
437
|
|
|
304
|
|
||
Purchase of Premises and Equipment
|
(627
|
)
|
|
(247
|
)
|
||
Proceeds from the Sale of a Subsidiary, Net
|
—
|
|
|
23
|
|
||
Net Decrease in Other Investments
|
5,169
|
|
|
4,086
|
|
||
Net Cash Used By Investing Activities
|
(43,050
|
)
|
|
(44,051
|
)
|
||
Cash Flows from Financing Activities:
|
|
|
|
||||
Net Increase in Deposits
|
166,157
|
|
|
139,990
|
|
||
Net Decrease in Short-Term Federal Home Loan Bank Borrowings
|
(105,000
|
)
|
|
(91,000
|
)
|
||
Net Increase (Decrease) in Short-Term Borrowings
|
9,991
|
|
|
(3,801
|
)
|
||
Repayments of Federal Home Loan Bank Term Advances
|
(10,000
|
)
|
|
—
|
|
||
Purchase of Treasury Stock
|
(619
|
)
|
|
(1,176
|
)
|
||
Stock Options Exercised, Net
|
610
|
|
|
388
|
|
||
Shares Issued Under the Employee Stock Purchase Plan
|
116
|
|
|
106
|
|
||
Shares Issued for Dividend Reinvestment Plans
|
431
|
|
|
425
|
|
||
Cash Dividends Paid
|
(3,485
|
)
|
|
(3,374
|
)
|
||
Net Cash Provided By Financing Activities
|
58,201
|
|
|
41,558
|
|
||
Net Increase in Cash and Cash Equivalents
|
27,434
|
|
|
7,448
|
|
||
Cash and Cash Equivalents at Beginning of Period
|
72,838
|
|
|
57,355
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
100,272
|
|
|
$
|
64,803
|
|
|
|
|
|
||||
Supplemental Disclosures to Statements of Cash Flow Information:
|
|
|
|
||||
Interest on Deposits and Borrowings
|
$
|
1,949
|
|
|
$
|
1,539
|
|
Income Taxes
|
390
|
|
|
294
|
|
||
Non-cash Investing and Financing Activity:
|
|
|
|
||||
Transfer of Loans to Other Real Estate Owned and Repossessed Assets
|
270
|
|
|
359
|
|
Available-For-Sale Securities
|
||||||||||||||||||||||||
|
|
U.S. Government & Agency
Obligations
|
|
State and
Municipal
Obligations
|
|
Mortgage-
Backed
Securities
|
|
Corporate
and Other
Debt
Securities
|
|
Mutual Funds
and Equity
Securities
|
|
Total
Available-
For-Sale
Securities
|
||||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-For-Sale Securities,
at Amortized Cost
|
|
$
|
60,264
|
|
|
$
|
9,741
|
|
|
$
|
240,033
|
|
|
$
|
1,000
|
|
|
$
|
—
|
|
|
$
|
311,038
|
|
Available-For-Sale Securities,
at Fair Value
|
|
59,657
|
|
|
9,743
|
|
|
235,389
|
|
|
800
|
|
|
—
|
|
|
305,589
|
|
||||||
Gross Unrealized Gains
|
|
—
|
|
|
7
|
|
|
347
|
|
|
—
|
|
|
—
|
|
|
354
|
|
||||||
Gross Unrealized Losses
|
|
607
|
|
|
5
|
|
|
4,991
|
|
|
200
|
|
|
—
|
|
|
5,803
|
|
||||||
Available-For-Sale Securities,
Pledged as Collateral
|
|
|
|
|
|
|
|
|
|
|
|
229,857
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maturities of Debt Securities,
at Amortized Cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Within One Year
|
|
$
|
13,018
|
|
|
$
|
8,363
|
|
|
$
|
891
|
|
|
$
|
—
|
|
|
|
|
$
|
22,272
|
|
||
From 1 - 5 Years
|
|
47,246
|
|
|
650
|
|
|
121,977
|
|
|
—
|
|
|
|
|
169,873
|
|
|||||||
From 5 - 10 Years
|
|
—
|
|
|
208
|
|
|
71,473
|
|
|
—
|
|
|
|
|
71,681
|
|
|||||||
Over 10 Years
|
|
—
|
|
|
520
|
|
|
45,692
|
|
|
1,000
|
|
|
|
|
47,212
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maturities of Debt Securities,
at Fair Value:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Within One Year
|
|
$
|
12,949
|
|
|
$
|
8,360
|
|
|
$
|
896
|
|
|
$
|
—
|
|
|
|
|
$
|
22,205
|
|
||
From 1 - 5 Years
|
|
46,708
|
|
|
655
|
|
|
118,649
|
|
|
—
|
|
|
|
|
166,012
|
|
|||||||
From 5 - 10 Years
|
|
—
|
|
|
208
|
|
|
70,140
|
|
|
—
|
|
|
|
|
70,348
|
|
|||||||
Over 10 Years
|
|
—
|
|
|
520
|
|
|
45,704
|
|
|
800
|
|
|
|
|
47,024
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities in a Continuous
Loss Position, at Fair Value:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 12 Months
|
|
$
|
17,128
|
|
|
$
|
7,421
|
|
|
$
|
112,078
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
136,627
|
|
12 Months or Longer
|
|
42,529
|
|
|
—
|
|
|
80,759
|
|
|
800
|
|
|
—
|
|
|
124,088
|
|
||||||
Total
|
|
$
|
59,657
|
|
|
$
|
7,421
|
|
|
$
|
192,837
|
|
|
$
|
800
|
|
|
$
|
—
|
|
|
$
|
260,715
|
|
Number of Securities in a
Continuous Loss Position
|
|
14
|
|
|
29
|
|
|
69
|
|
|
1
|
|
|
—
|
|
|
113
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Losses on
Securities in a Continuous
Loss Position:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 12 Months
|
|
$
|
266
|
|
|
$
|
6
|
|
|
$
|
1,940
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,212
|
|
12 Months or Longer
|
|
341
|
|
|
—
|
|
|
3,050
|
|
|
200
|
|
|
—
|
|
|
3,591
|
|
||||||
Total
|
|
$
|
607
|
|
|
$
|
6
|
|
|
$
|
4,990
|
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
5,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Disaggregated Details:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
US Treasury Obligations,
at Amortized Cost
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
US Treasury Obligations,
at Fair Value |
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
US Agency Obligations,
at Amortized Cost |
|
60,264
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
US Agency Obligations,
at Fair Value |
|
59,657
|
|
|
|
|
|
|
|
|
|
|
|
Available-For-Sale Securities
|
||||||||||||||||||||||||
|
|
U.S. Government & Agency
Obligations
|
|
State and
Municipal
Obligations
|
|
Mortgage-
Backed
Securities
|
|
Corporate
and Other
Debt
Securities
|
|
Mutual Funds
and Equity
Securities
|
|
Total
Available-
For-Sale
Securities
|
||||||||||||
US Government Agency
Securities, at Amortized Cost
|
|
|
|
|
|
$
|
59,446
|
|
|
|
|
|
|
|
||||||||||
US Government Agency
Securities, at Fair Value
|
|
|
|
|
|
59,469
|
|
|
|
|
|
|
|
|||||||||||
Government Sponsored Entity
Securities, at Amortized Cost
|
|
|
|
|
|
180,587
|
|
|
|
|
|
|
|
|||||||||||
Government Sponsored Entity
Securities, at Fair Value |
|
|
|
|
|
175,920
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-For-Sale Securities,
at Amortized Cost
|
|
$
|
60,328
|
|
|
$
|
10,351
|
|
|
$
|
229,077
|
|
|
$
|
1,000
|
|
|
$
|
1,120
|
|
|
$
|
301,876
|
|
Available-For-Sale Securities,
at Fair Value
|
|
59,894
|
|
|
10,349
|
|
|
227,596
|
|
|
800
|
|
|
1,561
|
|
|
300,200
|
|
||||||
Gross Unrealized Gains
|
|
—
|
|
|
9
|
|
|
485
|
|
|
—
|
|
|
441
|
|
|
935
|
|
||||||
Gross Unrealized Losses
|
|
434
|
|
|
11
|
|
|
1,966
|
|
|
200
|
|
|
—
|
|
|
2,611
|
|
||||||
Available-For-Sale Securities,
Pledged as Collateral,
at Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
183,052
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities in a Continuous
Loss Position, at Fair Value:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 12 Months
|
|
$
|
20,348
|
|
|
$
|
8,498
|
|
|
$
|
70,930
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
99,776
|
|
12 Months or Longer
|
|
39,546
|
|
|
—
|
|
|
80,759
|
|
|
800
|
|
|
—
|
|
|
121,105
|
|
||||||
Total
|
|
$
|
59,894
|
|
|
$
|
8,498
|
|
|
$
|
151,689
|
|
|
$
|
800
|
|
|
$
|
—
|
|
|
$
|
220,881
|
|
Number of Securities in a
Continuous Loss Position
|
|
14
|
|
|
36
|
|
|
55
|
|
|
1
|
|
|
—
|
|
|
106
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Losses on
Securities in a Continuous
Loss Position:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 12 Months
|
|
$
|
172
|
|
|
$
|
11
|
|
|
$
|
363
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
546
|
|
12 Months or Longer
|
|
262
|
|
|
—
|
|
|
1,603
|
|
|
200
|
|
|
—
|
|
|
2,065
|
|
||||||
Total
|
|
$
|
434
|
|
|
$
|
11
|
|
|
$
|
1,966
|
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
2,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Disaggregated Details:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
US Treasury Obligations,
at Amortized Cost
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
US Treasury Obligations,
at Fair Value |
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
US Agency Obligations,
at Amortized Cost |
|
60,328
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
US Agency Obligations,
at Fair Value |
|
59,894
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
US Government Agency
Securities, at Amortized Cost
|
|
|
|
|
|
$
|
40,832
|
|
|
|
|
|
|
|
||||||||||
US Government Agency
Securities, at Fair Value
|
|
|
|
|
|
40,832
|
|
|
|
|
|
|
|
|||||||||||
Government Sponsored Entity
Securities, at Amortized Cost
|
|
|
|
|
|
188,245
|
|
|
|
|
|
|
|
|||||||||||
Government Sponsored Entity
Securities, at Fair Value |
|
|
|
|
|
186,764
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-For-Sale Securities
|
||||||||||||||||||||||||
|
|
U.S. Government & Agency
Obligations
|
|
State and
Municipal
Obligations
|
|
Mortgage-
Backed
Securities
|
|
Corporate
and Other
Debt
Securities
|
|
Mutual Funds
and Equity
Securities
|
|
Total
Available-
For-Sale
Securities
|
||||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-For-Sale Securities,
at Amortized Cost
|
|
$
|
147,012
|
|
|
$
|
25,467
|
|
|
$
|
170,601
|
|
|
$
|
3,501
|
|
|
$
|
1,120
|
|
|
$
|
347,701
|
|
Available-For-Sale Securities,
at Fair Value
|
|
147,231
|
|
|
25,507
|
|
|
169,728
|
|
|
3,298
|
|
|
1,395
|
|
|
347,159
|
|
||||||
Gross Unrealized Gains
|
|
270
|
|
|
40
|
|
|
934
|
|
|
—
|
|
|
275
|
|
|
1,519
|
|
||||||
Gross Unrealized Losses
|
|
52
|
|
|
—
|
|
|
1,806
|
|
|
203
|
|
|
—
|
|
|
2,061
|
|
||||||
Available-For-Sale Securities,
Pledged as Collateral
|
|
|
|
|
|
|
|
|
|
|
|
295,797
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities in a Continuous
Loss Position, at Fair Value:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 12 Months
|
|
$
|
42,937
|
|
|
$
|
828
|
|
|
$
|
127,931
|
|
|
$
|
2,498
|
|
|
$
|
—
|
|
|
$
|
174,194
|
|
12 Months or Longer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
800
|
|
|
—
|
|
|
800
|
|
||||||
Total
|
|
$
|
42,937
|
|
|
$
|
828
|
|
|
$
|
127,931
|
|
|
$
|
3,298
|
|
|
$
|
—
|
|
|
$
|
174,994
|
|
Number of Securities in a
Continuous Loss Position
|
|
11
|
|
|
5
|
|
|
41
|
|
|
4
|
|
|
—
|
|
|
61
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unrealized Losses on Securities
in a Continuous Loss Position:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Less than 12 Months
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
1,806
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
1,861
|
|
12 Months or Longer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
||||||
Total
|
|
$
|
52
|
|
|
$
|
—
|
|
|
$
|
1,806
|
|
|
$
|
203
|
|
|
$
|
—
|
|
|
$
|
2,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Disaggregated Details:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
US Treasury Obligations,
at Amortized Cost |
|
$
|
54,649
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
US Treasury Obligations,
at Fair Value |
|
$
|
54,695
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
US Agency Obligations,
at Amortized Cost |
|
$
|
92,363
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
US Agency Obligations,
at Fair Value |
|
92,536
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
US Government Agency
Securities, at Amortized Cost
|
|
|
|
|
|
$
|
1,616
|
|
|
|
|
|
|
|
||||||||||
US Government Agency
Securities, at Fair Value
|
|
|
|
|
|
1,625
|
|
|
|
|
|
|
|
|||||||||||
Government Sponsored Entity
Securities, at Amortized Cost
|
|
|
|
|
|
168,985
|
|
|
|
|
|
|
|
|||||||||||
Government Sponsored Entity
Securities, at Fair Value |
|
|
|
|
|
168,103
|
|
|
|
|
|
|
|
Held-To-Maturity Securities
|
||||||||||||||||
|
|
State and
Municipal
Obligations
|
|
Mortgage-
Backed
Securities
|
|
Corporate
and Other
Debt
Securities
|
|
Total
Held-To
Maturity
Securities
|
||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Held-To-Maturity Securities,
at Amortized Cost
|
|
$
|
272,938
|
|
|
$
|
57,186
|
|
|
$
|
—
|
|
|
$
|
330,124
|
|
Held-To-Maturity Securities,
at Fair Value
|
|
268,605
|
|
|
56,333
|
|
|
—
|
|
|
324,938
|
|
||||
Gross Unrealized Gains
|
|
646
|
|
|
—
|
|
|
—
|
|
|
646
|
|
||||
Gross Unrealized Losses
|
|
4,979
|
|
|
853
|
|
|
—
|
|
|
5,832
|
|
||||
Held-To-Maturity Securities,
Pledged as Collateral
|
|
|
|
|
|
|
|
307,273
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
Maturities of Debt Securities,
at Amortized Cost:
|
|
|
|
|
|
|
|
|
||||||||
Within One Year
|
|
$
|
35,115
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,115
|
|
From 1 - 5 Years
|
|
81,312
|
|
|
51,243
|
|
|
—
|
|
|
132,555
|
|
||||
From 5 - 10 Years
|
|
153,111
|
|
|
5,943
|
|
|
—
|
|
|
159,054
|
|
||||
Over 10 Years
|
|
3,400
|
|
|
—
|
|
|
—
|
|
|
3,400
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Maturities of Debt Securities,
at Fair Value:
|
|
|
|
|
|
|
|
|
||||||||
Within One Year
|
|
$
|
35,160
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
35,160
|
|
From 1 - 5 Years
|
|
81,634
|
|
|
50,490
|
|
|
—
|
|
|
132,124
|
|
||||
From 5 - 10 Years
|
|
148,412
|
|
|
5,843
|
|
|
—
|
|
|
154,255
|
|
||||
Over 10 Years
|
|
3,399
|
|
|
—
|
|
|
—
|
|
|
3,399
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Securities in a Continuous
Loss Position, at Fair Value:
|
|
|
|
|
|
|
|
|
||||||||
Less than 12 Months
|
|
$
|
101,695
|
|
|
$
|
53,076
|
|
|
$
|
—
|
|
|
$
|
154,771
|
|
12 Months or Longer
|
|
65,012
|
|
|
3,257
|
|
|
—
|
|
|
68,269
|
|
||||
Total
|
|
$
|
166,707
|
|
|
$
|
56,333
|
|
|
$
|
—
|
|
|
$
|
223,040
|
|
|
|
|
|
|
|
|
|
|
||||||||
Number of Securities in a
Continuous Loss Position
|
|
495
|
|
|
47
|
|
|
—
|
|
|
542
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Unrealized Losses on Securities
in a Continuous Loss Position:
|
|
|
|
|
|
|
|
|
||||||||
Less than 12 Months
|
|
$
|
1,981
|
|
|
$
|
767
|
|
|
$
|
—
|
|
|
$
|
2,748
|
|
12 Months or Longer
|
|
2,998
|
|
|
86
|
|
|
—
|
|
|
3,084
|
|
||||
Total
|
|
$
|
4,979
|
|
|
$
|
853
|
|
|
$
|
—
|
|
|
$
|
5,832
|
|
|
|
|
|
|
|
|
|
|
||||||||
Disaggregated Details:
|
|
|
|
|
|
|
|
|
||||||||
US Government Agency
Securities, at Amortized Cost
|
|
|
|
$
|
2,530
|
|
|
|
|
|
||||||
US Government Agency
Securities, at Fair Value
|
|
|
|
2,483
|
|
|
|
|
|
|||||||
Government Sponsored Entity
Securities, at Amortized Cost
|
|
|
|
54,656
|
|
|
|
|
|
|||||||
Government Sponsored Entity
Securities, at Fair Value |
|
|
|
53,850
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
Held-To-Maturity Securities
|
||||||||||||||||
|
|
State and
Municipal
Obligations
|
|
Mortgage-
Backed
Securities
|
|
Corporate
and Other
Debt
Securities
|
|
Total
Held-To
Maturity
Securities
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Held-To-Maturity Securities,
at Amortized Cost
|
|
$
|
275,530
|
|
|
$
|
60,377
|
|
|
$
|
—
|
|
|
$
|
335,907
|
|
Held-To-Maturity Securities,
at Fair Value
|
|
275,353
|
|
|
60,548
|
|
|
—
|
|
|
335,901
|
|
||||
Gross Unrealized Gains
|
|
1,691
|
|
|
269
|
|
|
—
|
|
|
1,960
|
|
||||
Gross Unrealized Losses
|
|
1,868
|
|
|
98
|
|
|
—
|
|
|
1,966
|
|
||||
Held-To-Maturity Securities,
Pledged as Collateral
|
|
|
|
|
|
|
|
318,622
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
Securities in a Continuous
Loss Position, at Fair Value:
|
|
|
|
|
|
|
|
|
||||||||
Less than 12 Months
|
|
$
|
55,648
|
|
|
$
|
13,764
|
|
|
$
|
—
|
|
|
$
|
69,412
|
|
12 Months or Longer
|
|
65,152
|
|
|
3,257
|
|
|
—
|
|
|
68,409
|
|
||||
Total
|
|
$
|
120,800
|
|
|
$
|
17,021
|
|
|
$
|
—
|
|
|
$
|
137,821
|
|
Number of Securities in a
Continuous Loss Position
|
|
352
|
|
|
14
|
|
|
—
|
|
|
366
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Unrealized Losses on
Securities in a Continuous
Loss Position:
|
|
|
|
|
|
|
|
|
||||||||
Less than 12 Months
|
|
$
|
442
|
|
|
$
|
56
|
|
|
$
|
—
|
|
|
$
|
498
|
|
12 Months or Longer
|
|
1,425
|
|
|
43
|
|
|
—
|
|
|
1,468
|
|
||||
Total
|
|
$
|
1,867
|
|
|
$
|
99
|
|
|
$
|
—
|
|
|
$
|
1,966
|
|
|
|
|
|
|
|
|
|
|
||||||||
Disaggregated Details:
|
|
|
|
|
|
|
|
|
||||||||
US Government Agency
Securities, at Amortized Cost
|
|
|
|
$
|
2,680
|
|
|
|
|
|
||||||
US Government Agency
Securities, at Fair Value
|
|
|
|
2,661
|
|
|
|
|
|
|||||||
Government Sponsored Entity
Securities, at Amortized Cost
|
|
|
|
57,697
|
|
|
|
|
|
|||||||
Government Sponsored Entity
Securities, at Fair Value |
|
|
|
57,887
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Held-To-Maturity Securities,
at Amortized Cost
|
|
$
|
263,642
|
|
|
$
|
71,569
|
|
|
$
|
—
|
|
|
$
|
335,211
|
|
Held-To-Maturity Securities,
at Fair Value
|
|
263,255
|
|
|
71,850
|
|
|
—
|
|
|
335,105
|
|
||||
Gross Unrealized Gains
|
|
2,410
|
|
|
298
|
|
|
—
|
|
|
2,708
|
|
||||
Gross Unrealized Losses
|
|
2,796
|
|
|
17
|
|
|
—
|
|
|
2,813
|
|
||||
Held-To-Maturity Securities,
Pledged as Collateral
|
|
|
|
|
|
|
|
316,966
|
|
|||||||
|
|
|
|
|
|
|
|
|
||||||||
Securities in a Continuous
Loss Position, at Fair Value:
|
|
|
|
|
|
|
|
|
||||||||
Less than 12 Months
|
|
$
|
95,450
|
|
|
$
|
7,682
|
|
|
$
|
—
|
|
|
$
|
103,132
|
|
12 Months or Longer
|
|
657
|
|
|
—
|
|
|
—
|
|
|
657
|
|
||||
Total
|
|
$
|
96,107
|
|
|
$
|
7,682
|
|
|
$
|
—
|
|
|
$
|
103,789
|
|
Number of Securities in a
Continuous Loss Position
|
|
251
|
|
|
8
|
|
|
—
|
|
|
259
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Unrealized Losses on
Securities in a Continuous
Loss Position:
|
|
|
|
|
|
|
|
|
||||||||
Less than 12 Months
|
|
$
|
2,793
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
2,810
|
|
12 Months or Longer
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Total
|
|
$
|
2,796
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
2,813
|
|
|
|
|
|
|
|
|
|
|
Held-To-Maturity Securities
|
||||||||||||||||
|
|
State and
Municipal
Obligations
|
|
Mortgage-
Backed
Securities
|
|
Corporate
and Other
Debt
Securities
|
|
Total
Held-To
Maturity
Securities
|
||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
||||||||
Disaggregated Details:
|
|
|
|
|
|
|
|
|
||||||||
US Government Agency
Securities, at Amortized Cost
|
|
|
|
$
|
3,106
|
|
|
|
|
|
||||||
US Government Agency
Securities, at Fair Value
|
|
|
|
3,121
|
|
|
|
|
|
|||||||
Government Sponsored Entity
Securities, at Amortized Cost
|
|
|
|
68,463
|
|
|
|
|
|
|||||||
Government Sponsored Entity
Securities, at Fair Value |
|
|
|
68,729
|
|
|
|
|
|
Equity Securities
|
||||
|
|
|
||
March 31, 2018
|
|
|
||
Equity Securities, at Fair Value
|
|
$
|
1,579
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
Commercial
|
|
|
|
|
|
|
||||||||||
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Residential
|
|
Total
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans Past Due 30-59 Days
|
$
|
45
|
|
|
$
|
156
|
|
|
$
|
3,673
|
|
|
$
|
1,711
|
|
|
$
|
5,585
|
|
Loans Past Due 60-89 Days
|
60
|
|
|
—
|
|
|
751
|
|
|
481
|
|
|
1,292
|
|
|||||
Loans Past Due 90 or more Days
|
41
|
|
|
807
|
|
|
252
|
|
|
321
|
|
|
1,421
|
|
|||||
Total Loans Past Due
|
146
|
|
|
963
|
|
|
4,676
|
|
|
2,513
|
|
|
8,298
|
|
|||||
Current Loans
|
127,528
|
|
|
454,095
|
|
|
621,964
|
|
|
781,152
|
|
|
1,984,739
|
|
|||||
Total Loans
|
$
|
127,674
|
|
|
$
|
455,058
|
|
|
$
|
626,640
|
|
|
$
|
783,665
|
|
|
$
|
1,993,037
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans 90 or More Days Past Due
and Still Accruing Interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Nonaccrual Loans
|
652
|
|
|
807
|
|
|
441
|
|
|
2,570
|
|
|
4,470
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans Past Due 30-59 Days
|
$
|
139
|
|
|
$
|
—
|
|
|
$
|
5,891
|
|
|
$
|
2,094
|
|
|
$
|
8,124
|
|
Loans Past Due 60-89 Days
|
19
|
|
|
—
|
|
|
1,215
|
|
|
509
|
|
|
1,743
|
|
|||||
Loans Past Due 90 or more Days
|
99
|
|
|
807
|
|
|
513
|
|
|
1,422
|
|
|
2,841
|
|
|||||
Total Loans Past Due
|
257
|
|
|
807
|
|
|
7,619
|
|
|
4,025
|
|
|
12,708
|
|
|||||
Current Loans
|
128,992
|
|
|
443,441
|
|
|
595,208
|
|
|
770,421
|
|
|
1,938,062
|
|
|||||
Total Loans
|
$
|
129,249
|
|
|
$
|
444,248
|
|
|
$
|
602,827
|
|
|
$
|
774,446
|
|
|
$
|
1,950,770
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans 90 or More Days Past Due
and Still Accruing Interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
313
|
|
|
$
|
319
|
|
Nonaccrual Loans
|
$
|
588
|
|
|
$
|
1,530
|
|
|
$
|
653
|
|
|
$
|
2,755
|
|
|
5,526
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans Past Due 30-59 Days
|
$
|
189
|
|
|
$
|
—
|
|
|
$
|
3,882
|
|
|
$
|
2,021
|
|
|
$
|
6,092
|
|
Loans Past Due 60-89 Days
|
9
|
|
|
—
|
|
|
1,145
|
|
|
684
|
|
|
1,838
|
|
|||||
Loans Past Due 90 or more Days
|
120
|
|
|
—
|
|
|
335
|
|
|
835
|
|
|
1,290
|
|
|||||
Total Loans Past Due
|
318
|
|
|
—
|
|
|
5,362
|
|
|
3,540
|
|
|
9,220
|
|
|||||
Current Loans
|
118,524
|
|
|
435,316
|
|
|
546,601
|
|
|
701,144
|
|
|
1,801,585
|
|
|||||
Total Loans
|
$
|
118,842
|
|
|
$
|
435,316
|
|
|
$
|
551,963
|
|
|
$
|
704,684
|
|
|
$
|
1,810,805
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans 90 or More Days Past Due
and Still Accruing Interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Nonaccrual Loans
|
$
|
144
|
|
|
$
|
870
|
|
|
$
|
656
|
|
|
$
|
2,603
|
|
|
4,273
|
|
Allowance for Loan Losses
|
|||||||||||||||||||
|
|
|
Commercial
|
|
|
|
|
|
|
||||||||||
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Residential
|
|
Total
|
||||||||||
Roll-forward of the Allowance for Loan Losses for the Quarterly Periods:
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
$
|
1,873
|
|
|
$
|
4,504
|
|
|
$
|
7,604
|
|
|
$
|
4,605
|
|
|
$
|
18,586
|
|
Charge-offs
|
(16
|
)
|
|
1
|
|
|
(347
|
)
|
|
(8
|
)
|
|
(370
|
)
|
|||||
Recoveries
|
—
|
|
|
9
|
|
|
86
|
|
|
—
|
|
|
95
|
|
|||||
Provision
|
311
|
|
|
(151
|
)
|
|
676
|
|
|
(90
|
)
|
|
746
|
|
|||||
March 31, 2018
|
$
|
2,168
|
|
|
$
|
4,363
|
|
|
$
|
8,019
|
|
|
$
|
4,507
|
|
|
$
|
19,057
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2016
|
$
|
1,017
|
|
|
$
|
5,677
|
|
|
$
|
6,120
|
|
|
$
|
4,198
|
|
|
$
|
17,012
|
|
Charge-offs
|
(16
|
)
|
|
—
|
|
|
(254
|
)
|
|
—
|
|
|
(270
|
)
|
|||||
Recoveries
|
7
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
116
|
|
|||||
Provision
|
(69
|
)
|
|
(228
|
)
|
|
727
|
|
|
(72
|
)
|
|
358
|
|
|||||
March 31, 2017
|
$
|
939
|
|
|
$
|
5,449
|
|
|
$
|
6,702
|
|
|
$
|
4,126
|
|
|
$
|
17,216
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses
|
|||||||||||||||||||
|
|
|
Commercial
|
|
|
|
|
|
|
||||||||||
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Residential
|
|
Total
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses - Loans Individually Evaluated for Impairment
|
$
|
92
|
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
192
|
|
Allowance for loan losses - Loans Collectively Evaluated for Impairment
|
2,076
|
|
|
4,321
|
|
|
8,019
|
|
|
4,449
|
|
|
18,865
|
|
|||||
Ending Loan Balance - Individually Evaluated for Impairment
|
489
|
|
|
815
|
|
|
91
|
|
|
1,564
|
|
|
2,959
|
|
|||||
Ending Loan Balance - Collectively Evaluated for Impairment
|
$
|
127,185
|
|
|
$
|
454,243
|
|
|
$
|
626,549
|
|
|
$
|
782,101
|
|
|
$
|
1,990,078
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses - Loans Individually Evaluated for Impairment
|
$
|
94
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
106
|
|
Allowance for loan losses - Loans Collectively Evaluated for Impairment
|
1,779
|
|
|
4,502
|
|
|
7,604
|
|
|
4,595
|
|
|
18,480
|
|
|||||
Ending Loan Balance - Individually Evaluated for Impairment
|
489
|
|
|
1,537
|
|
|
95
|
|
|
1,562
|
|
|
3,683
|
|
|||||
Ending Loan Balance - Collectively Evaluated for Impairment
|
$
|
128,760
|
|
|
$
|
442,711
|
|
|
$
|
602,732
|
|
|
$
|
772,884
|
|
|
$
|
1,947,087
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses - Loans Individually Evaluated for Impairment
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34
|
|
Allowance for loan losses - Loans Collectively Evaluated for Impairment
|
939
|
|
|
5,415
|
|
|
6,702
|
|
|
4,126
|
|
|
17,182
|
|
|||||
Ending Loan Balance - Individually Evaluated for Impairment
|
—
|
|
|
884
|
|
|
88
|
|
|
1,094
|
|
|
2,066
|
|
|||||
Ending Loan Balance - Collectively Evaluated for Impairment
|
$
|
118,841
|
|
|
$
|
434,432
|
|
|
$
|
551,876
|
|
|
$
|
703,590
|
|
|
$
|
1,808,739
|
|
•
|
Changes in the volume and severity of past due, nonaccrual and adversely classified loans
|
•
|
Changes in the nature and volume of the portfolio and in the terms of loans
|
•
|
Changes in the value of the underlying collateral for collateral dependent loans
|
•
|
Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses
|
•
|
Changes in the quality of the loan review system
|
•
|
Changes in the experience, ability, and depth of lending management and other relevant staff
|
•
|
Changes in international, national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio
|
•
|
The existence and effect of any concentrations of credit, and changes in the level of such concentrations
|
•
|
The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the existing portfolio or pool
|
Loan Credit Quality Indicators
|
|||||||||||||||||||
|
|
|
Commercial
|
|
|
|
|
|
|
||||||||||
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Residential
|
|
Total
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Risk Profile by Creditworthiness Category:
|
|
|
|
|
|
|
|
|
|
||||||||||
Satisfactory
|
$
|
107,838
|
|
|
$
|
430,121
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
537,959
|
|
Special Mention
|
17,220
|
|
|
611
|
|
|
—
|
|
|
—
|
|
|
17,831
|
|
|||||
Substandard
|
2,615
|
|
|
23,521
|
|
|
—
|
|
|
—
|
|
|
26,136
|
|
|||||
Doubtful
|
—
|
|
|
807
|
|
|
—
|
|
|
—
|
|
|
807
|
|
|||||
Credit Risk Profile Based on Payment Activity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
626,198
|
|
|
$
|
781,095
|
|
|
$
|
1,407,293
|
|
Nonperforming
|
—
|
|
|
—
|
|
|
441
|
|
|
2,570
|
|
|
3,011
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Risk Profile by Creditworthiness Category:
|
|
|
|
|
|
|
|
|
|
||||||||||
Satisfactory
|
$
|
124,961
|
|
|
$
|
417,362
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
542,323
|
|
Special Mention
|
1,341
|
|
|
177
|
|
|
—
|
|
|
—
|
|
|
1,518
|
|
|||||
Substandard
|
2,947
|
|
|
25,902
|
|
|
—
|
|
|
—
|
|
|
28,849
|
|
|||||
Doubtful
|
—
|
|
|
807
|
|
|
—
|
|
|
—
|
|
|
807
|
|
|||||
Credit Risk Profile Based on Payment Activity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
602,168
|
|
|
$
|
771,584
|
|
|
$
|
1,373,752
|
|
Nonperforming
|
—
|
|
|
—
|
|
|
659
|
|
|
3,068
|
|
|
3,727
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Risk Profile by Creditworthiness Category:
|
|
|
|
|
|
|
|
|
|
||||||||||
Satisfactory
|
$
|
109,416
|
|
|
$
|
402,266
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
511,682
|
|
Special Mention
|
1,349
|
|
|
2,233
|
|
|
—
|
|
|
—
|
|
|
3,582
|
|
|||||
Substandard
|
8,077
|
|
|
30,817
|
|
|
—
|
|
|
—
|
|
|
38,894
|
|
|||||
Doubtful
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Credit Risk Profile Based on Payment Activity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
551,307
|
|
|
$
|
702,081
|
|
|
$
|
1,253,388
|
|
Nonperforming
|
—
|
|
|
—
|
|
|
656
|
|
|
2,603
|
|
|
3,259
|
|
Impaired Loans
|
|||||||||||||||||||
|
|
|
Commercial
|
|
|
|
|
|
|
||||||||||
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Residential
|
|
Total
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Recorded Investment:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
90
|
|
|
$
|
1,276
|
|
|
$
|
1,374
|
|
With a Related Allowance
|
483
|
|
|
783
|
|
|
—
|
|
|
356
|
|
|
1,622
|
|
|||||
Unpaid Principal Balance:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
—
|
|
|
8
|
|
|
90
|
|
|
1,279
|
|
|
1,377
|
|
|||||
With a Related Allowance
|
489
|
|
|
807
|
|
|
—
|
|
|
286
|
|
|
1,582
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Recorded Investment:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
$
|
—
|
|
|
$
|
781
|
|
|
$
|
94
|
|
|
$
|
1,269
|
|
|
$
|
2,144
|
|
With a Related Allowance
|
485
|
|
|
725
|
|
|
—
|
|
|
333
|
|
|
1,543
|
|
|||||
Unpaid Principal Balance:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
—
|
|
|
816
|
|
|
95
|
|
|
1,274
|
|
|
2,185
|
|
|||||
With a Related Allowance
|
489
|
|
|
721
|
|
|
—
|
|
|
288
|
|
|
1,498
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Recorded Investment:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
$
|
—
|
|
|
$
|
884
|
|
|
$
|
88
|
|
|
$
|
806
|
|
|
$
|
1,778
|
|
With a Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
288
|
|
|
288
|
|
|||||
Unpaid Principal Balance:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
—
|
|
|
884
|
|
|
88
|
|
|
806
|
|
|
$
|
1,778
|
|
||||
With a Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
288
|
|
|
288
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
For the Quarter Ended:
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Recorded Balance:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
$
|
—
|
|
|
$
|
395
|
|
|
$
|
92
|
|
|
$
|
1,273
|
|
|
$
|
1,760
|
|
With a Related Allowance
|
484
|
|
|
754
|
|
|
—
|
|
|
345
|
|
|
1,583
|
|
|||||
Interest Income Recognized:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|||||
With a Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
24
|
|
|||||
Cash Basis Income:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
With a Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Recorded Balance:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
$
|
—
|
|
|
$
|
887
|
|
|
$
|
90
|
|
|
$
|
952
|
|
|
$
|
1,929
|
|
With a Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
|
144
|
|
|||||
Interest Income Recognized:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
With a Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash Basis Income:
|
|
|
|
|
|
|
|
|
|
||||||||||
With No Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
With a Related Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Loans Modified in Trouble Debt Restructurings During the Period
|
|||||||||||||||||||
|
|
|
Commercial
|
|
|
|
|
|
|
||||||||||
|
Commercial
|
|
Real Estate
|
|
Consumer
|
|
Residential
|
|
Total
|
||||||||||
For the Quarter Ended:
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of Loans
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Pre-Modification Outstanding Recorded Investment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
Post-Modification Outstanding Recorded Investment
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Subsequent Default, Number of Contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subsequent Default, Recorded Investment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of Loans
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Pre-Modification Outstanding Recorded Investment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
15
|
|
Post-Modification Outstanding Recorded Investment
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||
Subsequent Default, Number of Contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Subsequent Default, Recorded Investment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Commitments to Extend Credit and Letters of Credit
|
|||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
||||||
Notional Amount:
|
|
|
|
|
|
||||||
Commitments to Extend Credit
|
$
|
328,774
|
|
|
$
|
315,256
|
|
|
$
|
294,618
|
|
Standby Letters of Credit
|
3,584
|
|
|
3,526
|
|
|
3,371
|
|
|||
Fair Value:
|
|
|
|
|
|
||||||
Commitments to Extend Credit
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Standby Letters of Credit
|
24
|
|
|
23
|
|
|
28
|
|
Schedule of Comprehensive Income
|
|||||||||||
|
Three Months Ended March 31,
|
||||||||||
|
|
|
Tax
|
|
|
||||||
|
Before-Tax
|
|
(Expense)
|
|
Net-of-Tax
|
||||||
|
Amount
|
|
Benefit
|
|
Amount
|
||||||
2018
|
|
|
|
|
|
||||||
Net Unrealized Securities Holding Losses on Securities Available-for-Sale Arising During the Period
|
(3,332
|
)
|
|
$
|
847
|
|
|
(2,485
|
)
|
||
Amortization of Net Retirement Plan Actuarial Loss
|
60
|
|
|
(14
|
)
|
|
46
|
|
|||
Accretion of Net Retirement Plan Prior Service Credit
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other Comprehensive Loss
|
$
|
(3,273
|
)
|
|
$
|
833
|
|
|
$
|
(2,440
|
)
|
|
|
|
|
|
|
||||||
2017
|
|
|
|
|
|
||||||
Net Unrealized Securities Holding Gains on Securities Available-for-Sale Arising During the Period
|
77
|
|
|
$
|
(30
|
)
|
|
47
|
|
||
Amortization of Net Retirement Plan Actuarial Loss
|
178
|
|
|
(69
|
)
|
|
109
|
|
|||
Accretion of Net Retirement Plan Prior Service Credit
|
(3
|
)
|
|
1
|
|
|
(2
|
)
|
|||
Other Comprehensive Income
|
$
|
252
|
|
|
$
|
(98
|
)
|
|
$
|
154
|
|
|
|
||
Roll-Forward of Shares Outstanding:
|
|
||
Outstanding at January 1, 2018
|
346,155
|
|
|
Granted
|
55,188
|
|
|
Exercised
|
(27,662
|
)
|
|
Forfeited
|
—
|
|
|
Outstanding at March 31, 2018
|
373,681
|
|
|
Exercisable at Period-End
|
247,333
|
|
|
Vested and Expected to Vest
|
126,348
|
|
|
|
|
||
Roll-Forward of Shares Outstanding - Weighted Average Exercise Price:
|
|
||
Outstanding at January 1, 2018
|
$
|
24.12
|
|
Granted
|
30.85
|
|
|
Exercised
|
22.03
|
|
|
Forfeited
|
—
|
|
|
Outstanding at March 31, 2018
|
25.27
|
|
|
Exercisable at Period-End
|
22.57
|
|
|
Vested and Expected to Vest
|
30.54
|
|
|
|
|
||
Schedule of Other Long Term Incentive Plan Information
|
|
||
Grants Issued During 2018 - Weighted Average Information:
|
|
||
Fair Value
|
$
|
5.76
|
|
Fair Value Assumptions:
|
|
||
Dividend Yield
|
2.98
|
%
|
|
Expected Volatility
|
21.55
|
%
|
|
Risk Free Interest Rate
|
2.68
|
%
|
|
Expected Lives (in years)
|
6.98
|
|
|
|
||
Roll-Forward of Restricted Stock Units
|
|
||
Non-vested at January 1, 2018
|
—
|
|
|
Granted
|
3,279
|
|
|
Vested
|
—
|
|
|
Canceled
|
—
|
|
|
Non-vested at March 31, 2018
|
3,279
|
|
|
|
|
||
Roll-Forward of Non-vested Restricted Stock Units - Weighted Average Fair Value:
|
|
||
Non-vested at January 1, 2018
|
$
|
—
|
|
Granted
|
33.55
|
|
|
Vested
|
—
|
|
|
Canceled
|
—
|
|
|
Non-vested at March 31, 2018
|
33.55
|
|
|
|
|
Share-Based Compensation Expense
|
||||||||
|
|
For the Three Months Ended March 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Share-Based Compensation Expense
|
|
$
|
89
|
|
|
$
|
83
|
|
|
|
|
|
Select
|
|
|
||||||
|
|
Employees'
|
|
Executive
|
|
Postretirement
|
||||||
|
|
Pension
|
|
Retirement
|
|
Benefit
|
||||||
|
|
Plan
|
|
Plan
|
|
Plans
|
||||||
Net Periodic Benefit Cost
|
|
|
|
|
|
|
||||||
For the Three Months Ended March 31, 2018:
|
|
|
|
|
|
|
||||||
Service Cost
1
|
|
$
|
348
|
|
|
$
|
11
|
|
|
$
|
33
|
|
Interest Cost
2
|
|
525
|
|
|
50
|
|
|
99
|
|
|||
Expected Return on Plan Assets
2
|
|
(785
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of Prior Service (Credit) Cost
2
|
|
(12
|
)
|
|
14
|
|
|
(3
|
)
|
|||
Amortization of Net Loss
2
|
|
33
|
|
|
33
|
|
|
(6
|
)
|
|||
Net Periodic Benefit Cost
|
|
$
|
109
|
|
|
$
|
108
|
|
|
$
|
123
|
|
|
|
|
|
|
|
|
||||||
Plan Contributions During the Period
|
|
$
|
—
|
|
|
$
|
116
|
|
|
$
|
17
|
|
|
|
|
|
|
|
|
||||||
For the Three Months Ended March 31, 2017:
|
|
|
|
|
|
|
||||||
Service Cost
1
|
|
$
|
350
|
|
|
$
|
10
|
|
|
$
|
37
|
|
Interest Cost
2
|
|
350
|
|
|
50
|
|
|
86
|
|
|||
Expected Return on Plan Assets
2
|
|
(800
|
)
|
|
—
|
|
|
—
|
|
|||
Amortization of Prior Service (Credit) Cost
2
|
|
(14
|
)
|
|
14
|
|
|
(3
|
)
|
|||
Amortization of Net Loss
2
|
|
148
|
|
|
30
|
|
|
—
|
|
|||
Net Periodic Benefit Cost
|
|
$
|
34
|
|
|
$
|
104
|
|
|
$
|
120
|
|
|
|
|
|
|
|
|
||||||
Plan Contributions During the Period
|
|
$
|
—
|
|
|
$
|
113
|
|
|
$
|
53
|
|
|
|
|
|
|
|
|
Earnings Per Share
|
|||||||
|
Quarterly Period Ended:
|
||||||
|
March 31, 2018
|
|
March 31, 2017
|
||||
Earnings Per Share - Basic:
|
|
|
|
||||
Net Income
|
$
|
8,531
|
|
|
$
|
6,631
|
|
Weighted Average Shares - Basic
|
13,936
|
|
|
13,889
|
|
||
Earnings Per Share - Basic
|
$
|
0.61
|
|
|
$
|
0.48
|
|
|
|
|
|
||||
Earnings Per Share - Diluted:
|
|
|
|
||||
Net Income
|
$
|
8,531
|
|
|
$
|
6,631
|
|
Weighted Average Shares - Basic
|
13,936
|
|
|
13,889
|
|
||
Dilutive Average Shares Attributable to Stock Options
|
80
|
|
|
112
|
|
||
Weighted Average Shares - Diluted
|
14,016
|
|
|
14,001
|
|
||
Earnings Per Share - Diluted
|
$
|
0.61
|
|
|
$
|
0.47
|
|
Fair Value of Assets and Liabilities Measured on a Recurring and Nonrecurring Basis
|
|||||||||||||||||||
|
|
|
Fair Value Measurements at Reporting Date Using:
|
|
|
||||||||||||||
|
Fair Value
|
|
Quoted Prices
In Active Markets for Identical Assets
(Level 1)
|
|
Significant Other
Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Life-to-Date Gains (Losses)
|
||||||||||
Fair Value of Assets and Liabilities Measured on a Recurring Basis:
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities Available-for Sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government & Agency Obligations
|
$
|
59,657
|
|
|
$
|
59,657
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||
State and Municipal Obligations
|
9,743
|
|
|
—
|
|
|
9,743
|
|
|
—
|
|
|
|
||||||
Mortgage-Backed Securities
|
235,389
|
|
|
—
|
|
|
235,389
|
|
|
—
|
|
|
|
||||||
Corporate and Other Debt Securities
|
800
|
|
|
—
|
|
|
800
|
|
|
—
|
|
|
|
||||||
Total Securities Available-for-Sale
|
305,589
|
|
|
59,657
|
|
|
245,932
|
|
|
—
|
|
|
|
||||||
Equity Securities
|
1,579
|
|
|
—
|
|
|
1,579
|
|
|
—
|
|
|
|
||||||
Total Securities Measured on a Recurring Basis
|
$
|
307,168
|
|
|
$
|
59,657
|
|
|
$
|
247,511
|
|
|
$
|
—
|
|
|
|
||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities Available-for Sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government & Agency Obligations
|
$
|
59,894
|
|
|
$
|
59,894
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
||
State and Municipal Obligations
|
10,349
|
|
|
—
|
|
|
10,349
|
|
|
—
|
|
|
|
||||||
Mortgage-Backed Securities
|
227,596
|
|
|
—
|
|
|
227,596
|
|
|
—
|
|
|
|
||||||
Corporate and Other Debt Securities
|
800
|
|
|
—
|
|
|
800
|
|
|
—
|
|
|
|
||||||
Equity Securities
|
1,561
|
|
|
—
|
|
|
1,561
|
|
|
—
|
|
|
|
||||||
Total Securities Available-for Sale
|
$
|
300,200
|
|
|
$
|
59,894
|
|
|
$
|
240,306
|
|
|
$
|
—
|
|
|
|
||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Securities Available-for Sale:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government & Agency Obligations
|
$
|
147,231
|
|
|
$
|
54,695
|
|
|
$
|
92,536
|
|
|
$
|
—
|
|
|
|
||
State and Municipal Obligations
|
25,507
|
|
|
—
|
|
|
25,507
|
|
|
—
|
|
|
|
||||||
Mortgage-Backed Securities
|
169,728
|
|
|
—
|
|
|
169,728
|
|
|
—
|
|
|
|
||||||
Corporate and Other Debt Securities
|
3,298
|
|
|
—
|
|
|
3,298
|
|
|
—
|
|
|
|
||||||
Equity Securities
|
1,395
|
|
|
—
|
|
|
1,395
|
|
|
—
|
|
|
|
||||||
Total Securities Available-for Sale
|
$
|
347,159
|
|
|
$
|
54,695
|
|
|
$
|
292,464
|
|
|
$
|
—
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis:
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Collateral Dependent Impaired Loans
|
$
|
1,295
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,295
|
|
|
$
|
(58
|
)
|
Other Real Estate Owned and Repossessed Assets, Net
|
1,647
|
|
|
—
|
|
|
—
|
|
|
1,647
|
|
|
(582
|
)
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Collateral Dependent Impaired Loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other Real Estate Owned and Repossessed Assets, Net
|
$
|
1,847
|
|
|
$
|
—
|
|
|
—
|
|
|
1,847
|
|
|
$
|
(569
|
)
|
||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Collateral Dependent Impaired Loans
|
$
|
288
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
288
|
|
|
$
|
(34
|
)
|
Other Real Estate Owned and Repossessed Assets, Net
|
1,734
|
|
|
—
|
|
|
—
|
|
|
1,734
|
|
|
(500
|
)
|
•
|
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
|
•
|
Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;
|
•
|
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
|
Schedule of Fair Values by Balance Sheet Grouping
|
|||||||||||||||||||
|
|
|
|
|
Fair Value Hierarchy
|
||||||||||||||
|
Book Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
March 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents
|
$
|
100,272
|
|
|
$
|
100,272
|
|
|
$
|
100,272
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities Available-for-Sale
|
305,589
|
|
|
305,589
|
|
|
—
|
|
|
305,589
|
|
|
—
|
|
|||||
Securities Held-to-Maturity
|
330,124
|
|
|
324,938
|
|
|
—
|
|
|
324,938
|
|
|
—
|
|
|||||
Equity Securities
|
1,579
|
|
|
1,579
|
|
|
—
|
|
|
1,579
|
|
|
—
|
|
|||||
Federal Home Loan Bank and Federal
Reserve Bank Stock
|
4,780
|
|
|
4,780
|
|
|
—
|
|
|
4,780
|
|
|
—
|
|
|||||
Net Loans
|
1,973,980
|
|
|
1,915,978
|
|
|
—
|
|
|
—
|
|
|
1,915,978
|
|
|||||
Accrued Interest Receivable
|
7,662
|
|
|
7,662
|
|
|
—
|
|
|
7,662
|
|
|
—
|
|
|||||
Deposits
|
2,411,273
|
|
|
2,402,122
|
|
|
—
|
|
|
2,402,122
|
|
|
—
|
|
|||||
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase
|
74,957
|
|
|
74,957
|
|
|
—
|
|
|
74,957
|
|
|
—
|
|
|||||
Federal Home Loan Bank Term Advances
|
45,000
|
|
|
44,484
|
|
|
—
|
|
|
44,484
|
|
|
—
|
|
|||||
Junior Subordinated Obligations Issued
to Unconsolidated Subsidiary Trusts
|
20,000
|
|
|
20,000
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|||||
Accrued Interest Payable
|
361
|
|
|
361
|
|
|
—
|
|
|
361
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents
|
$
|
72,838
|
|
|
$
|
72,838
|
|
|
$
|
72,838
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities Available-for-Sale
|
300,200
|
|
|
300,200
|
|
|
59,894
|
|
|
240,306
|
|
|
—
|
|
|||||
Securities Held-to-Maturity
|
335,907
|
|
|
335,901
|
|
|
—
|
|
|
335,901
|
|
|
—
|
|
|||||
Federal Home Loan Bank and Federal
Reserve Bank Stock
|
9,949
|
|
|
9,949
|
|
|
—
|
|
|
9,949
|
|
|
—
|
|
|||||
Net Loans
|
1,932,184
|
|
|
1,901,046
|
|
|
—
|
|
|
—
|
|
|
1,901,046
|
|
|||||
Accrued Interest Receivable
|
6,753
|
|
|
6,753
|
|
|
—
|
|
|
6,753
|
|
|
—
|
|
|||||
Deposits
|
2,245,116
|
|
|
2,236,548
|
|
|
—
|
|
|
2,236,548
|
|
|
—
|
|
|||||
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase
|
64,966
|
|
|
64,966
|
|
|
—
|
|
|
64,966
|
|
|
—
|
|
|||||
Federal Home Loan Bank Overnight Advances
|
105,000
|
|
|
105,000
|
|
|
—
|
|
|
105,000
|
|
|
—
|
|
|||||
Federal Home Loan Bank Term Advances
|
55,000
|
|
|
54,781
|
|
|
—
|
|
|
54,781
|
|
|
—
|
|
|||||
Junior Subordinated Obligations Issued
to Unconsolidated Subsidiary Trusts
|
20,000
|
|
|
20,000
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|||||
Accrued Interest Payable
|
410
|
|
|
410
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and Cash Equivalents
|
$
|
64,803
|
|
|
$
|
64,803
|
|
|
$
|
64,803
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities Available-for-Sale
|
347,159
|
|
|
347,159
|
|
|
54,695
|
|
|
292,464
|
|
|
—
|
|
|||||
Securities Held-to-Maturity
|
335,211
|
|
|
335,105
|
|
|
—
|
|
|
335,105
|
|
|
—
|
|
|||||
Federal Home Loan Bank and Federal
Reserve Bank Stock
|
6,826
|
|
|
6,826
|
|
|
—
|
|
|
6,826
|
|
|
—
|
|
|||||
Net Loans
|
1,793,589
|
|
|
1,773,895
|
|
|
—
|
|
|
—
|
|
|
1,773,895
|
|
|||||
Accrued Interest Receivable
|
7,530
|
|
|
7,530
|
|
|
—
|
|
|
7,530
|
|
|
—
|
|
|||||
Deposits
|
2,256,536
|
|
|
2,248,066
|
|
|
—
|
|
|
2,248,066
|
|
|
—
|
|
|||||
Federal Funds Purchased and Securities
Sold Under Agreements to Repurchase
|
32,035
|
|
|
32,035
|
|
|
—
|
|
|
32,035
|
|
|
—
|
|
|||||
Federal Home Loan Bank Overnight Advances
|
32,000
|
|
|
32,000
|
|
|
—
|
|
|
32,000
|
|
|
—
|
|
|||||
Federal Home Loan Bank Term Advances
|
55,000
|
|
|
55,130
|
|
|
—
|
|
|
55,130
|
|
|
—
|
|
|||||
Junior Subordinated Obligations Issued
to Unconsolidated Subsidiary Trusts
|
20,000
|
|
|
20,000
|
|
|
—
|
|
|
20,000
|
|
|
—
|
|
|||||
Accrued Interest Payable
|
240
|
|
|
240
|
|
|
—
|
|
|
240
|
|
|
—
|
|
a.
|
rapid and dramatic changes in economic and market conditions
|
d.
|
significant changes in banking or other laws and regulations, including both enactment of new legal or regulatory measures (e.g., the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank") and the Tax Cuts and Jobs Act of 2017 (the "Tax Act")) or the modification or elimination of pre-existing measures;
|
e.
|
significant changes in U.S. monetary or fiscal policy, including new or revised monetary programs or targets adopted or announced by the Federal Reserve ("monetary tightening or easing") or significant new federal legislation materially affecting the federal budget ("fiscal tightening or expansion");
|
f.
|
competition from other sources (e.g., so-called Fintech enterprises);
|
g.
|
similar uncertainties inherent in banking operations or business generally, including technological developments and changes; and
|
h.
|
other risks detailed from time to time within our filings with the Securities and Exchange Commission ("SEC").
|
Arrow Financial Corporation
Selected Quarterly Information
(Dollars In Thousands, Except Per Share Amounts
- Unaudited)
|
|||||||||||||||||||
Quarter Ended
|
3/31/2018
|
|
|
12/31/2017
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
3/31/2017
|
|
|||||
Net Income
|
$
|
8,531
|
|
|
$
|
8,071
|
|
|
$
|
7,416
|
|
|
$
|
7,208
|
|
|
$
|
6,631
|
|
Transactions Recorded in Net Income (Net of Tax):
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Gain (Loss) on Securities Transactions
|
—
|
|
|
(278
|
)
|
|
6
|
|
|
—
|
|
|
—
|
|
|||||
Tax Benefit from Net Deferred Tax Liability Revaluation
|
—
|
|
|
1,116
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Share and Per Share Data:
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Period End Shares Outstanding
|
13,950
|
|
|
13,930
|
|
|
13,891
|
|
|
13,900
|
|
|
13,886
|
|
|||||
Basic Average Shares Outstanding
|
13,936
|
|
|
13,905
|
|
|
13,889
|
|
|
13,890
|
|
|
13,889
|
|
|||||
Diluted Average Shares Outstanding
|
14,016
|
|
|
14,006
|
|
|
13,966
|
|
|
13,975
|
|
|
14,001
|
|
|||||
Basic Earnings Per Share
|
$
|
0.61
|
|
|
$
|
0.58
|
|
|
$
|
0.53
|
|
|
$
|
0.52
|
|
|
$
|
0.48
|
|
Diluted Earnings Per Share
|
0.61
|
|
|
0.58
|
|
|
0.53
|
|
|
0.52
|
|
|
0.47
|
|
|||||
Cash Dividend Per Share
|
0.250
|
|
|
0.250
|
|
|
0.243
|
|
|
0.243
|
|
|
0.243
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Quarterly Average Balances:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Bearing Deposits at Banks
|
27,978
|
|
|
27,047
|
|
|
27,143
|
|
|
24,480
|
|
|
23,565
|
|
|||||
Investment Securities
|
642,442
|
|
|
660,043
|
|
|
677,368
|
|
|
684,570
|
|
|
695,615
|
|
|||||
Loans
|
1,971,240
|
|
|
1,930,590
|
|
|
1,892,766
|
|
|
1,842,543
|
|
|
1,781,113
|
|
|||||
Deposits
|
2,305,736
|
|
|
2,284,206
|
|
|
2,193,778
|
|
|
2,206,365
|
|
|
2,161,798
|
|
|||||
Other Borrowed Funds
|
184,613
|
|
|
187,366
|
|
|
262,864
|
|
|
207,270
|
|
|
205,436
|
|
|||||
Stockholders’ Equity
|
251,109
|
|
|
247,253
|
|
|
243,801
|
|
|
239,396
|
|
|
235,257
|
|
|||||
Total Assets
|
2,763,706
|
|
|
2,744,180
|
|
|
2,725,653
|
|
|
2,677,843
|
|
|
2,626,470
|
|
|||||
Return on Average Assets, annualized
|
1.25
|
%
|
|
1.17
|
%
|
|
1.08
|
%
|
|
1.08
|
%
|
|
1.02
|
%
|
|||||
Return on Average Equity, annualized
|
13.78
|
%
|
|
12.95
|
%
|
|
12.07
|
%
|
|
12.08
|
%
|
|
11.43
|
%
|
|||||
Return on Tangible Equity, annualized
(2)
|
15.24
|
%
|
|
14.36
|
%
|
|
13.40
|
%
|
|
13.45
|
%
|
|
12.76
|
%
|
|||||
Average Earning Assets
|
2,641,660
|
|
|
2,617,680
|
|
|
2,597,277
|
|
|
2,551,593
|
|
|
2,500,293
|
|
|||||
Average Paying Liabilities
|
2,050,661
|
|
|
2,029,811
|
|
|
2,012,802
|
|
|
2,005,421
|
|
|
1,977,628
|
|
|||||
Net Interest Income (GAAP)
|
20,402
|
|
|
20,314
|
|
|
19,650
|
|
|
19,227
|
|
|
18,461
|
|
|||||
Net Interest Margin, annualized (GAAP)
|
3.13
|
%
|
|
3.08
|
%
|
|
3.00
|
%
|
|
3.02
|
%
|
|
2.99
|
%
|
|||||
Net Interest Income, Tax-Equivalent (Non-GAAP)
(3)
|
20,893
|
|
|
21,294
|
|
|
20,616
|
|
|
20,176
|
|
|
19,409
|
|
|||||
Tax-Equivalent Adjustment (Non-GAAP)
(3)
|
491
|
|
|
980
|
|
|
966
|
|
|
949
|
|
|
948
|
|
|||||
Net Interest Margin, annualized (Non-GAAP)
(3)
|
3.21
|
%
|
|
3.23
|
%
|
|
3.15
|
%
|
|
3.17
|
%
|
|
3.15
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency Ratio Calculation:
(4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest Expense
|
$
|
15,955
|
|
|
$
|
16,045
|
|
|
$
|
15,548
|
|
|
$
|
15,637
|
|
|
$
|
15,475
|
|
Less: Intangible Asset Amortization
|
67
|
|
|
69
|
|
|
69
|
|
|
70
|
|
|
71
|
|
|||||
Net Noninterest Expense
|
15,888
|
|
|
15,976
|
|
|
15,479
|
|
|
15,567
|
|
|
15,404
|
|
|||||
Net Interest Income, Tax-Equivalent (Non-GAAP)
(3)
|
20,893
|
|
|
21,294
|
|
|
20,616
|
|
|
20,176
|
|
|
19,409
|
|
|||||
Noninterest Income
|
6,888
|
|
|
6,752
|
|
|
7,141
|
|
|
7,057
|
|
|
6,695
|
|
|||||
Less: Net Securities Gain (Loss)
|
—
|
|
|
(458
|
)
|
|
10
|
|
|
—
|
|
|
—
|
|
|||||
Less: Net Unrealized Gain on Equity Securities
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net Gross Income
|
27,763
|
|
|
28,504
|
|
|
27,747
|
|
|
27,233
|
|
|
26,104
|
|
|||||
Efficiency Ratio (Non-GAAP)
|
57.23
|
%
|
|
56.05
|
%
|
|
55.79
|
%
|
|
57.16
|
%
|
|
59.01
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-End Capital Information:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Stockholders’ Equity (i.e. Book Value)
|
$
|
252,734
|
|
|
$
|
249,603
|
|
|
$
|
244,648
|
|
|
$
|
240,752
|
|
|
$
|
236,111
|
|
Book Value per Share
(1)
|
18.12
|
|
|
17.92
|
|
|
17.61
|
|
|
17.32
|
|
|
17.00
|
|
|||||
Goodwill and Other Intangible Assets, net
|
24,045
|
|
|
24,162
|
|
|
24,268
|
|
|
24,355
|
|
|
24,448
|
|
|||||
Tangible Book Value per Share
(1,2)
|
16.39
|
|
|
16.18
|
|
|
15.86
|
|
|
15.57
|
|
|
15.24
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios:
(5)
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 Leverage Ratio
|
9.62
|
%
|
|
9.49
|
%
|
|
9.30
|
%
|
|
9.35
|
%
|
|
9.37
|
%
|
|||||
Common Equity Tier 1 Capital Ratio
|
12.97
|
%
|
|
12.89
|
%
|
|
12.70
|
%
|
|
12.68
|
%
|
|
12.84
|
%
|
|||||
Tier 1 Risk-Based Capital Ratio
|
14.03
|
%
|
|
13.97
|
%
|
|
13.79
|
%
|
|
13.79
|
%
|
|
13.99
|
%
|
|||||
Total Risk-Based Capital Ratio
|
15.04
|
%
|
|
14.99
|
%
|
|
14.77
|
%
|
|
14.77
|
%
|
|
14.98
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets Under Trust Administration
and Investment Management |
$
|
1,470,191
|
|
|
$
|
1,452,994
|
|
|
$
|
1,411,608
|
|
|
$
|
1,356,262
|
|
|
$
|
1,333,690
|
|
|
|||||||||||||||||||||
Average Consolidated Balance Sheets and Net Interest Income Analysis
|
|||||||||||||||||||||
(see “Use of Non-GAAP Financial Measures” on page 38)
|
|||||||||||||||||||||
(Fully Taxable Basis using a marginal federal tax rate of 35% for 2017, 21% for 2018)
|
|||||||||||||||||||||
(Dollars In Thousands)
|
|||||||||||||||||||||
|
|
|
|
||||||||||||||||||
Quarter Ended March 31:
|
2018
|
|
2017
|
||||||||||||||||||
|
|
|
Interest
|
|
Rate
|
|
|
|
Interest
|
|
Rate
|
||||||||||
|
Average
|
|
Income/
|
|
Earned/
|
|
Average
|
|
Income/
|
|
Earned/
|
||||||||||
|
Balance
|
|
Expense
|
|
Paid
|
|
Balance
|
|
Expense
|
|
Paid
|
||||||||||
Interest-Bearing Deposits at Banks
|
$
|
27,978
|
|
|
$
|
134
|
|
|
1.94
|
%
|
|
$
|
23,565
|
|
|
$
|
60
|
|
|
1.03
|
%
|
Investment Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fully Taxable
|
359,908
|
|
|
1,895
|
|
|
2.14
|
|
|
403,930
|
|
|
1,994
|
|
|
2.00
|
|
||||
Exempt from Federal Taxes
|
282,534
|
|
|
1,947
|
|
|
2.79
|
|
|
291,685
|
|
|
2,361
|
|
|
3.28
|
|
||||
Loans
|
1,971,240
|
|
|
18,933
|
|
|
3.90
|
|
|
1,781,113
|
|
|
16,530
|
|
|
3.76
|
|
||||
Total Earning Assets
|
2,641,660
|
|
|
22,909
|
|
|
3.52
|
|
|
2,500,293
|
|
|
20,945
|
|
|
3.40
|
|
||||
Allowance for Loan Losses
|
(18,523
|
)
|
|
|
|
|
|
(16,976
|
)
|
|
|
|
|
||||||||
Cash and Due From Banks
|
35,608
|
|
|
|
|
|
|
35,525
|
|
|
|
|
|
||||||||
Other Assets
|
104,961
|
|
|
|
|
|
|
107,628
|
|
|
|
|
|
||||||||
Total Assets
|
$
|
2,763,706
|
|
|
|
|
|
|
$
|
2,626,470
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-Bearing Checking Accounts
|
$
|
914,116
|
|
|
387
|
|
|
0.17
|
|
|
$
|
894,911
|
|
|
331
|
|
|
0.15
|
|
||
Savings Deposits
|
723,660
|
|
|
522
|
|
|
0.29
|
|
|
677,662
|
|
|
291
|
|
|
0.17
|
|
||||
Time Deposits of $250,000 or More
|
63,406
|
|
|
204
|
|
|
1.30
|
|
|
33,758
|
|
|
55
|
|
|
0.66
|
|
||||
Other Time Deposits
|
164,866
|
|
|
259
|
|
|
0.64
|
|
|
165,861
|
|
|
228
|
|
|
0.56
|
|
||||
Total Interest-Bearing Deposits
|
1,866,048
|
|
|
1,372
|
|
|
0.30
|
|
|
1,772,192
|
|
|
905
|
|
|
0.21
|
|
||||
Short-Term Borrowings
|
111,835
|
|
|
197
|
|
|
0.71
|
|
|
130,436
|
|
|
211
|
|
|
0.66
|
|
||||
FHLBNY Term Advances and Other Long-Term Debt
|
72,778
|
|
|
447
|
|
|
2.49
|
|
|
75,000
|
|
|
420
|
|
|
2.27
|
|
||||
Total Interest-Bearing Liabilities
|
2,050,661
|
|
|
2,016
|
|
|
0.40
|
|
|
1,977,628
|
|
|
1,536
|
|
|
0.31
|
|
||||
Demand Deposits
|
439,688
|
|
|
|
|
|
|
389,606
|
|
|
|
|
|
||||||||
Other Liabilities
|
22,248
|
|
|
|
|
|
|
23,979
|
|
|
|
|
|
||||||||
Total Liabilities
|
2,512,597
|
|
|
|
|
|
|
2,391,213
|
|
|
|
|
|
||||||||
Stockholders’ Equity
|
251,109
|
|
|
|
|
|
|
235,257
|
|
|
|
|
|
||||||||
Total Liabilities and Stockholders’ Equity
|
$
|
2,763,706
|
|
|
|
|
|
|
$
|
2,626,470
|
|
|
|
|
|
||||||
Net Interest Income (Tax-equivalent Basis)
(Non-GAAP)
(1)
|
|
|
20,893
|
|
|
|
|
|
|
19,409
|
|
|
|
||||||||
Reversal of Tax Equivalent Adjustment
|
|
|
(491
|
)
|
|
(0.08
|
)%
|
|
|
|
(948
|
)
|
|
(0.15
|
)%
|
||||||
Net Interest Income
|
|
|
$
|
20,402
|
|
|
|
|
|
|
$
|
18,461
|
|
|
|
||||||
Net Interest Spread (Non-GAAP)
(1)
|
|
|
|
|
3.12
|
%
|
|
|
|
|
|
3.09
|
%
|
||||||||
Net Interest Margin (Non-GAAP)
(1)
|
|
|
|
|
3.21
|
%
|
|
|
|
|
|
3.15
|
%
|
|
At Period-End
|
|
$ Change
|
|
$ Change
|
|
% Change
|
|
% Change
|
||||||||||||||||
|
March 31, 2018
|
|
December 31, 2017
|
|
March 31, 2017
|
|
From December
|
|
From March
|
|
From December (not annualized)
|
|
From March
|
||||||||||||
Interest-Bearing Bank Balances
|
$
|
70,747
|
|
|
$
|
30,276
|
|
|
$
|
14,645
|
|
|
$
|
40,471
|
|
|
$
|
56,102
|
|
|
133.7
|
%
|
|
383.1
|
%
|
Securities Available-for-Sale
|
305,589
|
|
|
300,200
|
|
|
347,159
|
|
|
5,389
|
|
|
(41,570
|
)
|
|
1.8
|
%
|
|
(12.0
|
)%
|
|||||
Securities Held-to-Maturity
|
330,124
|
|
|
335,907
|
|
|
335,211
|
|
|
(5,783
|
)
|
|
(5,087
|
)
|
|
(1.7
|
)%
|
|
(1.5
|
)%
|
|||||
Equity Securities
(1)
|
1,579
|
|
|
—
|
|
|
—
|
|
|
1,579
|
|
|
1,579
|
|
|
|
|
|
|||||||
Loans
(2)
|
1,993,037
|
|
|
1,950,770
|
|
|
1,810,805
|
|
|
42,267
|
|
|
182,232
|
|
|
2.2
|
%
|
|
10.1
|
%
|
|||||
Allowance for Loan Losses
|
19,057
|
|
|
18,586
|
|
|
17,216
|
|
|
471
|
|
|
1,841
|
|
|
2.5
|
%
|
|
10.7
|
%
|
|||||
Earning Assets
(2)
|
2,705,856
|
|
|
2,627,102
|
|
|
2,514,646
|
|
|
78,754
|
|
|
191,210
|
|
|
3.0
|
%
|
|
7.6
|
%
|
|||||
Total Assets
|
$
|
2,826,687
|
|
|
$
|
2,760,465
|
|
|
$
|
2,656,386
|
|
|
$
|
66,222
|
|
|
$
|
170,301
|
|
|
2.4
|
%
|
|
6.4
|
%
|
Demand Deposits
|
$
|
452,347
|
|
|
$
|
441,945
|
|
|
$
|
402,506
|
|
|
$
|
10,402
|
|
|
$
|
49,841
|
|
|
2.4
|
%
|
|
12.4
|
%
|
Interest-Bearing Checking
Accounts |
944,161
|
|
|
907,315
|
|
|
959,170
|
|
|
36,846
|
|
|
(15,009
|
)
|
|
4.1
|
%
|
|
(1.6
|
)%
|
|||||
Savings Deposits
|
762,220
|
|
|
694,573
|
|
|
696,625
|
|
|
67,647
|
|
|
65,595
|
|
|
9.7
|
%
|
|
9.4
|
%
|
|||||
Time Deposits over $250,000
|
85,403
|
|
|
38,147
|
|
|
30,993
|
|
|
47,256
|
|
|
54,410
|
|
|
123.9
|
%
|
|
175.6
|
%
|
|||||
Other Time Deposits
|
167,142
|
|
|
163,136
|
|
|
167,242
|
|
|
4,006
|
|
|
(100
|
)
|
|
2.5
|
%
|
|
(0.1
|
)%
|
|||||
Total Deposits
|
$
|
2,411,273
|
|
|
$
|
2,245,116
|
|
|
$
|
2,256,536
|
|
|
$
|
166,157
|
|
|
$
|
154,737
|
|
|
7.4
|
%
|
|
6.9
|
%
|
Federal Funds Purchased and
Securities Sold Under Agreements to Repurchase |
$
|
74,957
|
|
|
$
|
64,966
|
|
|
$
|
32,035
|
|
|
$
|
9,991
|
|
|
$
|
42,922
|
|
|
15.4
|
%
|
|
134.0
|
%
|
FHLBNY Advances - Overnight
|
—
|
|
|
105,000
|
|
|
32,000
|
|
|
(105,000
|
)
|
|
(32,000
|
)
|
|
(100.0
|
)%
|
|
(100.0
|
)%
|
|||||
FHLBNY Advances - Term
|
45,000
|
|
|
55,000
|
|
|
55,000
|
|
|
(10,000
|
)
|
|
(10,000
|
)
|
|
(18.2
|
)%
|
|
(18.2
|
)%
|
|||||
Stockholders' Equity
|
252,734
|
|
|
249,603
|
|
|
236,111
|
|
|
3,131
|
|
|
16,623
|
|
|
1.3
|
%
|
|
7.0
|
%
|
1.
|
Commercial loans
. This segment of our portfolio
decreased
slightly by
$1.6 million
, or
1.2%
, during the first
three
months of
2018
, representing a slight softening of demand for such loans during the period.
|
3.
|
Consumer loans (primarily automobile loans through indirect lending)
. As of
March 31, 2018
, these loans, primarily auto loans, had
increased
by
$23.8 million
, or
4.0%
, from the
December 31, 2017
balance, reflecting a continuation of strong demand for new and used vehicles region-wide and an expansion of our dealer network for indirect lending.
|
|
Quarter Ended
|
||||||||||||||||||
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
||||||||||
Demand Deposits
|
$
|
439,688
|
|
|
$
|
441,761
|
|
|
$
|
443,840
|
|
|
$
|
408,214
|
|
|
$
|
389,606
|
|
Interest-Bearing Checking Accounts
|
914,116
|
|
|
945,414
|
|
|
869,748
|
|
|
918,235
|
|
|
894,911
|
|
|||||
Savings Deposits
|
723,660
|
|
|
701,694
|
|
|
682,347
|
|
|
681,197
|
|
|
677,662
|
|
|||||
Time Deposits over $250,000
|
63,406
|
|
|
32,430
|
|
|
31,067
|
|
|
31,126
|
|
|
33,758
|
|
|||||
Other Time Deposits
|
164,866
|
|
|
162,907
|
|
|
166,776
|
|
|
167,593
|
|
|
165,861
|
|
|||||
Total Deposits
|
$
|
2,305,736
|
|
|
$
|
2,284,206
|
|
|
$
|
2,193,778
|
|
|
$
|
2,206,365
|
|
|
$
|
2,161,798
|
|
|
Quarter Ended
|
|||||||||||||
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|||||
Demand Deposits
|
19.1
|
%
|
|
19.3
|
%
|
|
20.2
|
%
|
|
18.5
|
%
|
|
18.0
|
%
|
Interest-Bearing Checking Accounts
|
39.6
|
|
|
41.5
|
|
|
39.6
|
|
|
41.6
|
|
|
41.4
|
|
Savings Deposits
|
31.4
|
|
|
30.7
|
|
|
31.2
|
|
|
30.9
|
|
|
31.3
|
|
Time Deposits over $250,000
|
2.7
|
|
|
1.4
|
|
|
1.4
|
|
|
1.4
|
|
|
1.6
|
|
Other Time Deposits
|
7.2
|
|
|
7.1
|
|
|
7.6
|
|
|
7.6
|
|
|
7.7
|
|
Total Deposits
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Quarter Ended
|
|||||||||||||
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|||||
Demand Deposits
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Interest-Bearing Checking Accounts
|
0.17
|
|
|
0.18
|
|
|
0.17
|
|
|
0.17
|
|
|
0.15
|
|
Savings Deposits
|
0.29
|
|
|
0.23
|
|
|
0.21
|
|
|
0.19
|
|
|
0.17
|
|
Time Deposits over $250,000
|
1.30
|
|
|
1.17
|
|
|
0.84
|
|
|
0.85
|
|
|
0.66
|
|
Other Time Deposits
|
0.64
|
|
|
0.60
|
|
|
0.57
|
|
|
0.56
|
|
|
0.56
|
|
Total Deposits
|
0.24
|
|
|
0.20
|
|
|
0.19
|
|
|
0.18
|
|
|
0.17
|
|
|
Quarter Ended
|
||||||||||||||||||
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
||||||||||
Commercial and Commercial Real Estate
|
$
|
569,126
|
|
|
$
|
564,073
|
|
|
$
|
561,260
|
|
|
$
|
556,014
|
|
|
$
|
541,187
|
|
Residential Real Estate
|
600,076
|
|
|
584,981
|
|
|
563,793
|
|
|
538,884
|
|
|
518,263
|
|
|||||
Home Equity
|
139,109
|
|
|
137,975
|
|
|
137,251
|
|
|
138,125
|
|
|
135,910
|
|
|||||
Consumer Loans
|
662,929
|
|
|
643,562
|
|
|
630,462
|
|
|
609,520
|
|
|
585,753
|
|
|||||
Total Loans
|
$
|
1,971,240
|
|
|
$
|
1,930,591
|
|
|
$
|
1,892,766
|
|
|
$
|
1,842,543
|
|
|
$
|
1,781,113
|
|
|
Quarter Ended
|
|||||||||||||
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|||||
Commercial and Commercial Real Estate
|
28.9
|
%
|
|
29.2
|
%
|
|
29.7
|
%
|
|
30.2
|
%
|
|
30.4
|
%
|
Residential Real Estate
|
30.5
|
|
|
30.3
|
|
|
29.8
|
|
|
29.2
|
|
|
29.1
|
|
Home Equity
|
7.1
|
|
|
7.1
|
|
|
7.3
|
|
|
7.5
|
|
|
7.6
|
|
Consumer Loans
|
33.5
|
|
|
33.4
|
|
|
33.2
|
|
|
33.1
|
|
|
32.9
|
|
Total Loans
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
Quarter Ended
|
|||||||||||||
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
|||||
Commercial and Commercial Real Estate
|
4.38
|
%
|
|
4.36
|
%
|
|
4.32
|
%
|
|
4.30
|
%
|
|
4.25
|
%
|
Residential Real Estate
|
4.09
|
%
|
|
3.99
|
%
|
|
3.98
|
%
|
|
4.03
|
%
|
|
4.10
|
%
|
Home Equity
|
3.70
|
%
|
|
3.57
|
%
|
|
3.55
|
%
|
|
3.41
|
%
|
|
3.28
|
%
|
Consumer Loans
|
3.34
|
%
|
|
3.29
|
%
|
|
3.23
|
%
|
|
3.21
|
%
|
|
3.14
|
%
|
Total Loans
|
3.90
|
%
|
|
3.83
|
%
|
|
3.80
|
%
|
|
3.79
|
%
|
|
3.76
|
%
|
|
(Dollars in Thousands)
|
||||||||||||||||||||||
|
Fair Value at Period-End
|
|
Net Unrealized Gains (Losses)
For Period Ended
|
||||||||||||||||||||
|
3/31/2018
|
|
12/31/2017
|
|
Change
|
|
3/31/2018
|
|
12/31/2017
|
|
Change
|
||||||||||||
Securities Available-for-Sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Agency Securities
|
$
|
59,657
|
|
|
$
|
59,894
|
|
|
$
|
(237
|
)
|
|
$
|
(607
|
)
|
|
$
|
(434
|
)
|
|
$
|
(173
|
)
|
State and Municipal Obligations
|
9,743
|
|
|
10,349
|
|
|
(606
|
)
|
|
2
|
|
|
(2
|
)
|
|
4
|
|
||||||
Mortgage-Backed Securities
|
235,389
|
|
|
227,596
|
|
|
7,793
|
|
|
(4,644
|
)
|
|
(1,481
|
)
|
|
(3,163
|
)
|
||||||
Corporate and Other Debt Securities
|
800
|
|
|
800
|
|
|
—
|
|
|
(200
|
)
|
|
(200
|
)
|
|
—
|
|
||||||
Mutual Funds and Equity Securities
1
|
—
|
|
|
1,561
|
|
|
(1,561
|
)
|
|
—
|
|
|
441
|
|
|
(441
|
)
|
||||||
Total
|
$
|
305,589
|
|
|
$
|
300,200
|
|
|
$
|
5,389
|
|
|
$
|
(5,449
|
)
|
|
$
|
(1,676
|
)
|
|
$
|
(3,773
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Held-to-Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and Municipal Obligations
|
$
|
268,605
|
|
|
$
|
275,353
|
|
|
$
|
(6,748
|
)
|
|
$
|
(4,333
|
)
|
|
$
|
(177
|
)
|
|
$
|
(4,156
|
)
|
Mortgage-Backed Securities
|
56,333
|
|
|
60,548
|
|
|
(4,215
|
)
|
|
(853
|
)
|
|
171
|
|
|
(1,024
|
)
|
||||||
Total
|
$
|
324,938
|
|
|
$
|
335,901
|
|
|
$
|
(10,963
|
)
|
|
$
|
(5,186
|
)
|
|
$
|
(6
|
)
|
|
$
|
(5,180
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity Securities
1
|
$
|
1,579
|
|
|
$
|
—
|
|
|
$
|
1,579
|
|
|
$
|
459
|
|
|
$
|
—
|
|
|
$
|
459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
Three Months Ended
|
||||||
Purchases:
|
3/31/2018
|
|
3/31/2017
|
||||
Available-for-Sale Portfolio
|
|
|
|
||||
State and Municipal Obligations
|
19,979
|
|
|
—
|
|
||
Mortgage-Backed Securities
|
—
|
|
|
12,324
|
|
||
Total Purchases
|
$
|
19,979
|
|
|
$
|
12,324
|
|
|
|
|
|
||||
Maturities & Calls
|
$
|
9,380
|
|
|
$
|
11,826
|
|
|
Three Months Ended
|
||||||
Purchases:
|
3/31/2018
|
|
3/31/2017
|
||||
Held-to-Maturity Portfolio
|
|
|
|
||||
State and Municipal Obligations
|
$
|
921
|
|
|
$
|
556
|
|
|
|
|
|
||||
Maturities & Calls
|
$
|
6,459
|
|
|
$
|
10,474
|
|
|
3/31/2018
|
|
12/31/2017
|
|
9/30/2017
|
|
6/30/2017
|
|
3/31/2017
|
||||||||||
Loan Balances:
|
|
|
|
|
|
|
|
|
|
||||||||||
Period-End Loans
|
$
|
1,993,037
|
|
|
$
|
1,950,770
|
|
|
$
|
1,908,799
|
|
|
$
|
1,878,632
|
|
|
$
|
1,810,805
|
|
Average Loans, Year-to-Date
|
1,971,240
|
|
|
1,862,247
|
|
|
1,839,216
|
|
|
1,811,998
|
|
|
1,781,113
|
|
|||||
Average Loans, Quarter-to-Date
|
1,971,240
|
|
|
1,930,590
|
|
|
1,892,766
|
|
|
1,842,543
|
|
|
1,781,113
|
|
|||||
Period-End Assets
|
2,826,687
|
|
|
2,760,465
|
|
|
2,744,462
|
|
|
2,721,721
|
|
|
2,656,386
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Loan Losses, Year-to-Date:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Loan Losses, Beginning of Period
|
$
|
18,586
|
|
|
$
|
17,012
|
|
|
$
|
17,012
|
|
|
$
|
17,012
|
|
|
$
|
17,012
|
|
Provision for Loan Losses, YTD
|
746
|
|
|
2,736
|
|
|
1,580
|
|
|
780
|
|
|
358
|
|
|||||
Loans Charged-off, YTD
|
(370
|
)
|
|
(1,559
|
)
|
|
(1,197
|
)
|
|
(574
|
)
|
|
(270
|
)
|
|||||
Recoveries of Loans Previously Charged-off
|
95
|
|
|
397
|
|
|
300
|
|
|
224
|
|
|
116
|
|
|||||
Net Charge-offs, YTD
|
(275
|
)
|
|
(1,162
|
)
|
|
(897
|
)
|
|
(350
|
)
|
|
(154
|
)
|
|||||
Allowance for Loan Losses, End of Period
|
$
|
19,057
|
|
|
$
|
18,586
|
|
|
$
|
17,695
|
|
|
$
|
17,442
|
|
|
$
|
17,216
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Loan Losses, Quarter-to-Date:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for Loan Losses, Beginning of Period
|
$
|
18,586
|
|
|
$
|
17,695
|
|
|
$
|
17,442
|
|
|
$
|
17,216
|
|
|
$
|
17,012
|
|
Provision for Loan Losses, QTD
|
746
|
|
|
1,157
|
|
|
800
|
|
|
422
|
|
|
358
|
|
|||||
Loans Charged-off, QTD
|
(370
|
)
|
|
(363
|
)
|
|
(622
|
)
|
|
(305
|
)
|
|
(270
|
)
|
|||||
Recoveries of Loans Previously Charged-off
|
95
|
|
|
97
|
|
|
75
|
|
|
109
|
|
|
116
|
|
|||||
Net Charge-offs, QTD
|
(275
|
)
|
|
(266
|
)
|
|
(547
|
)
|
|
(196
|
)
|
|
(154
|
)
|
|||||
Allowance for Loan Losses, End of Period
|
$
|
19,057
|
|
|
$
|
18,586
|
|
|
$
|
17,695
|
|
|
$
|
17,442
|
|
|
$
|
17,216
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonperforming Assets, at Period-End:
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual Loans
|
$
|
4,470
|
|
|
$
|
5,526
|
|
|
$
|
5,482
|
|
|
$
|
5,222
|
|
|
$
|
4,273
|
|
Loans Past Due 90 or More Days
and Still Accruing Interest |
—
|
|
|
319
|
|
|
967
|
|
|
1,821
|
|
|
—
|
|
|||||
Restructured and in Compliance with
Modified Terms
|
100
|
|
|
105
|
|
|
828
|
|
|
101
|
|
|
101
|
|
|||||
Total Nonperforming Loans
|
4,570
|
|
|
5,950
|
|
|
7,277
|
|
|
7,144
|
|
|
4,374
|
|
|||||
Repossessed Assets
|
120
|
|
|
109
|
|
|
62
|
|
|
90
|
|
|
103
|
|
|||||
Other Real Estate Owned
|
1,525
|
|
|
1,738
|
|
|
1,651
|
|
|
1,523
|
|
|
1,631
|
|
|||||
Total Nonperforming Assets
|
$
|
6,215
|
|
|
$
|
7,797
|
|
|
$
|
8,990
|
|
|
$
|
8,757
|
|
|
$
|
6,108
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance to Nonperforming Loans
|
417.00
|
%
|
|
312.37
|
%
|
|
243.16
|
%
|
|
244.15
|
%
|
|
393.60
|
%
|
|||||
Allowance to Period-End Loans
|
0.96
|
%
|
|
0.95
|
%
|
|
0.93
|
%
|
|
0.93
|
%
|
|
0.95
|
%
|
|||||
Provision to Average Loans (Quarter)
(1)
|
0.15
|
%
|
|
0.24
|
%
|
|
0.17
|
%
|
|
0.09
|
%
|
|
0.08
|
%
|
|||||
Provision to Average Loans (YTD)
(1)
|
0.15
|
%
|
|
0.15
|
%
|
|
0.11
|
%
|
|
0.09
|
%
|
|
0.08
|
%
|
|||||
Net Charge-offs to Average Loans (Quarter)
(1)
|
0.06
|
%
|
|
0.05
|
%
|
|
0.11
|
%
|
|
0.04
|
%
|
|
0.03
|
%
|
|||||
Net Charge-offs to Average Loans (YTD)
(1)
|
0.06
|
%
|
|
0.06
|
%
|
|
0.07
|
%
|
|
0.04
|
%
|
|
0.03
|
%
|
|||||
Nonperforming Loans to Total Loans
|
0.23
|
%
|
|
0.31
|
%
|
|
0.38
|
%
|
|
0.38
|
%
|
|
0.24
|
%
|
|||||
Nonperforming Assets to Total Assets
|
0.22
|
%
|
|
0.28
|
%
|
|
0.33
|
%
|
|
0.32
|
%
|
|
0.23
|
%
|
|||||
(1)
Annualized
|
|
|
|
|
|
|
|
|
|
Capital Ratio
|
Year, as of January 1
|
|||
|
2018
|
2019
|
||
Minimum CET1 Ratio
|
4.500
|
%
|
4.500
|
%
|
Capital Conservation Buffer ("Buffer")
|
1.875
|
%
|
2.500
|
%
|
Minimum CET1 Ratio Plus Buffer
|
6.375
|
%
|
7.000
|
%
|
Minimum Tier 1 Risk-Based Capital Ratio
|
6.000
|
%
|
6.000
|
%
|
Minimum Tier 1 Risk-Based Capital Ratio Plus Buffer
|
7.875
|
%
|
8.500
|
%
|
Minimum Total Risk-Based Capital Ratio
|
8.000
|
%
|
8.000
|
%
|
Minimum Total Risk-Based Capital Ratio Plus Buffer
|
9.875
|
%
|
10.500
|
%
|
Minimum Leverage Ratio
|
4.000
|
%
|
4.000
|
%
|
|
|
|
|
|
Cash
|
||||||
|
Market Price
|
|
Dividends
|
||||||||
|
Low
|
|
High
|
|
Declared
|
||||||
2017
|
|
|
|
|
|
||||||
First Quarter
|
$
|
31.80
|
|
|
$
|
39.76
|
|
|
$
|
0.243
|
|
Second Quarter
|
30.15
|
|
|
34.95
|
|
|
0.243
|
|
|||
Third Quarter
|
29.81
|
|
|
35.00
|
|
|
0.243
|
|
|||
Fourth Quarter
|
33.50
|
|
|
38.60
|
|
|
0.250
|
|
|||
2018
|
|
|
|
|
|
||||||
First Quarter
|
$
|
30.81
|
|
|
$
|
35.57
|
|
|
$
|
0.250
|
|
Second Quarter
|
TBD
|
|
|
TBD
|
|
|
0.250
|
|
|
Quarter Ended March 31,
|
||||||
|
2018
|
|
2017
|
||||
Cash Dividends Per Share
|
$
|
0.250
|
|
|
$
|
0.243
|
|
Diluted Earnings Per Share
|
0.61
|
|
|
0.47
|
|
||
Dividend Payout Ratio
|
40.98
|
%
|
|
51.70
|
%
|
||
Total Equity (in thousands)
|
252,734
|
|
|
$
|
236,111
|
|
|
Shares Issued and Outstanding (in thousands)
|
13,950
|
|
|
13,886
|
|
||
Book Value Per Share
|
$
|
18.12
|
|
|
$
|
17.00
|
|
Intangible Assets (in thousands)
|
24,045
|
|
|
24,448
|
|
||
Tangible Book Value Per Share
|
$
|
16.39
|
|
|
$
|
15.24
|
|
|
Quarter Ended
|
|
|
|
|
|||||||||
|
3/31/2018
|
|
|
3/31/2017
|
|
Change
|
|
% Change
|
||||||
Net Income
|
$
|
8,531
|
|
|
$
|
6,631
|
|
|
$
|
1,900
|
|
|
28.7
|
%
|
Diluted Earnings Per Share
|
0.61
|
|
|
0.47
|
|
|
0.14
|
|
|
29.8
|
%
|
|||
Return on Average Assets
|
1.25
|
%
|
|
1.02
|
%
|
|
0.23
|
%
|
|
22.5
|
%
|
|||
Return on Average Equity
|
13.78
|
%
|
|
11.43
|
%
|
|
2.35
|
%
|
|
20.6
|
%
|
|
Quarter Ended
|
|
|
|
|
|||||||||
|
3/31/2018
|
|
3/31/2017
|
|
Change
|
|
% Change
|
|||||||
Interest and Dividend Income
|
$
|
22,909
|
|
|
$
|
20,945
|
|
|
$
|
1,964
|
|
|
9.4
|
%
|
Interest Expense
|
2,016
|
|
|
1,536
|
|
|
480
|
|
|
31.3
|
%
|
|||
Net Interest Income
|
20,893
|
|
|
19,409
|
|
|
1,484
|
|
|
7.6
|
%
|
|||
Tax-Equivalent Adjustment
|
491
|
|
|
948
|
|
|
(457
|
)
|
|
(48.2
|
)%
|
|||
Average Earning Assets
(1)
|
2,641,660
|
|
|
2,500,293
|
|
|
141,367
|
|
|
5.7
|
%
|
|||
Average Interest-Bearing Liabilities
|
2,050,661
|
|
|
1,977,628
|
|
|
73,033
|
|
|
3.7
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Yield on Earning Assets
(1)
|
3.52
|
%
|
|
3.40
|
%
|
|
0.12
|
%
|
|
3.5
|
%
|
|||
Cost of Interest-Bearing Liabilities
|
0.40
|
|
|
0.31
|
|
|
0.09
|
%
|
|
29.0
|
%
|
|||
Net Interest Spread
|
3.12
|
|
|
3.09
|
|
|
0.03
|
%
|
|
1.0
|
%
|
|||
Net Interest Margin
|
3.21
|
|
|
3.15
|
|
|
0.06
|
%
|
|
1.9
|
%
|
|
Quarter Ended
|
|
|
|
|
|||||||||
|
3/31/2018
|
|
3/31/2017
|
|
Change
|
|
% Change
|
|||||||
Income From Fiduciary Activities
|
$
|
2,197
|
|
|
$
|
2,018
|
|
|
$
|
179
|
|
|
8.9
|
%
|
Fees for Other Services to Customers
|
2,380
|
|
|
2,256
|
|
|
124
|
|
|
5.5
|
%
|
|||
Insurance Commissions
|
1,903
|
|
|
2,198
|
|
|
(295
|
)
|
|
(13.4
|
)%
|
|||
Net Gain on Securities Transactions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Net Unrealized Gain on Equity Securities
|
18
|
|
|
—
|
|
|
18
|
|
|
100.0
|
%
|
|||
Net Gain on the Sale of Loans
|
38
|
|
|
45
|
|
|
(7
|
)
|
|
(15.6
|
)%
|
|||
Other Operating Income
|
353
|
|
|
178
|
|
|
175
|
|
|
98.3
|
%
|
|||
Total Noninterest Income
|
$
|
6,889
|
|
|
$
|
6,695
|
|
|
$
|
194
|
|
|
2.9
|
%
|
|
Quarter Ended
|
|
|
|
|
|||||||||
|
3/31/2018
|
|
3/31/2017
|
|
Change
|
|
% Change
|
|||||||
Salaries and Employee Benefits
|
$
|
9,369
|
|
|
$
|
9,008
|
|
|
$
|
361
|
|
|
4.0
|
%
|
Occupancy Expense of Premises, Net
|
1,340
|
|
|
1,347
|
|
|
(7
|
)
|
|
(0.5
|
)%
|
|||
Furniture and Equipment Expense
|
1,201
|
|
|
1,197
|
|
|
4
|
|
|
0.3
|
%
|
|||
FDIC and FICO Assessments
|
217
|
|
|
226
|
|
|
(9
|
)
|
|
(4.0
|
)%
|
|||
Amortization
|
67
|
|
|
71
|
|
|
(4
|
)
|
|
(5.6
|
)%
|
|||
Other Operating Expense
|
3,761
|
|
|
3,626
|
|
|
135
|
|
|
3.7
|
%
|
|||
Total Noninterest Expense
|
$
|
15,955
|
|
|
$
|
15,475
|
|
|
$
|
480
|
|
|
3.1
|
%
|
Efficiency Ratio
|
57.23
|
%
|
|
59.01
|
%
|
|
(1.78
|
)%
|
|
(3.0
|
)%
|
|
Quarter Ended
|
|
|
|
|
|||||||||
|
3/31/2018
|
|
3/31/2017
|
|
Change
|
|
% Change
|
|||||||
Provision for Income Taxes
|
$
|
2,058
|
|
|
$
|
2,692
|
|
|
$
|
(634
|
)
|
|
(23.6
|
)%
|
Effective Tax Rate
|
19.4
|
%
|
|
28.9
|
%
|
|
(9.5
|
)
|
|
(32.9
|
)
|
First Quarter
2018
Calendar Month
|
(A)
Total Number of
Shares Purchased
1
|
|
(B)
Average Price
Paid Per Share
1
|
|
(C)
Total Number of
Shares Purchased as
Part of Publicly
Announced
Plans or Programs
2
|
|
(D)
Maximum
Approximate Dollar
Value of Shares that
May Yet be
Purchased Under the
Plans or Programs
2
|
||||||
January
|
1,772
|
|
|
$
|
34.59
|
|
|
—
|
|
|
$
|
5,000,000
|
|
February
|
17,927
|
|
|
32.57
|
|
|
12,000
|
|
|
4,610,800
|
|
||
March
|
19,335
|
|
|
34.45
|
|
|
—
|
|
|
4,610,800
|
|
||
Total
|
39,034
|
|
|
33.60
|
|
|
12,000
|
|
|
|
Exhibit Number
|
Exhibit
|
10.1
|
|
15
|
|
31.1
|
|
31.2
|
|
32
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
* Management contracts or compensation plans required to be filed as an exhibit.
|
|
|
May 9, 2018
|
/s/Thomas J. Murphy
|
Date
|
Thomas J. Murphy, President and
|
|
Chief Executive Officer
|
|
|
May 9, 2018
|
/s/Edward J. Campanella
|
Date
|
Edward J. Campanella, Senior Vice President,
|
|
Treasurer and Chief Financial Officer
|
|
(Principal Financial Officer and
|
|
Principal Accounting Officer)
|
1.
|
All instances in the Plan which reference Schedules A and B collectively shall be amended to collectively reference Schedules A, B and C.
|
2.
|
A new Schedule C Select Executive Retirement Plan (SERP) benefit for current President/CEO Thomas Murphy shall be added to the Plan as provided for in the following attachment.
|
1.
|
The benefit shall equal 40% of the Participant’s final average Compensation offset by the value of other Company provided benefits. For this purpose:
|
a.
|
Compensation shall have the same meaning as in the Arrow Financial Corporation Employees’ Pension Plan and Trust (hereinafter referred to as the “Pension Plan”) but without respect on any limits imposed by Internal Revenue Code Section 401(a)(17).
|
b.
|
The average of such Compensation shall be made over the 60 consecutive calendar months which produce the highest average during the last 120 consecutive calendar months of the Participant’s employment.
|
c.
|
The benefit shall be expressed in the form of a single life annuity payable at a normal retirement age of 65.
|
d.
|
Other Company provided benefits shall include:
|
i.
|
Social Security benefits payable at age 65, regardless of the actual timing of commencement for such benefits. If Social Security benefits commence prior to age 65, estimated benefits shall be projected to age 65 assuming the Participant continued employment there through.
|
ii.
|
The Account Balance Accrued Benefit payable in the form of a single life annuity at Normal Retirement (age 65) from the Pension Plan.
|
iii.
|
The age 65 single life annuity value of any benefits provided to the Participant under Schedule A of this Plan.
|
iv.
|
The age 65 single life annuity value of all other account balances attributable to Company contributions on behalf of the Participant to the Arrow Financial Corporation Employee Stock Ownership Plan and Trust, the Arrow Financial Corporation Profit Sharing/401(k) Plan, and any Schedule B benefits provided under this Plan.
|
v.
|
The actuarial assumptions used to convert a (lump sum) account balance to a single life annuity form of benefit in the Pension Plan shall be used for converting account balances to annuities under this Schedule.
|
vi.
|
For determining benefits prior to age 65:
|
1.
|
Any benefit for which the normal form is an annuity, the accrued benefit at the date of determination shall be the accrued benefit deferred to age 65 as calculated in each respective plan using the Participant’s actual Compensation and service through such date of determination.
|
2.
|
Any benefit for which the normal form is an account balance, the account balance as of the date of determination shall be converted to an actuarially equivalent life annuity deferred to age 65.
|
vii.
|
The actuarial assumptions used to convert the single life annuity form of benefit to another optional annuity form in the Pension Plan shall be used for similar purposes under this Schedule.
|
viii.
|
The benefit shall be payable upon actual retirement, except that actual payment shall commence 6 months after the Participant’s separation from service with the Company (or any employer within the control group) in compliance with Code Section 409A, with the first such payment equal to the value of 7 monthly payments with interest at the rate of 7.5%.
|
2.
|
If benefits commence prior to age 65 they shall be reduced for early commencement in the same manner as early retirement benefits in the Pension Plan.
|
3.
|
If benefits commence after age 65 as result of continued employment, final average Compensation, and other Company provided benefits shall be determined as of the Participant’s actual date of retirement.
|
4.
|
Benefits may be paid in any optional annuity form of payment available to the Participant under the Pension Plan and valued in accordance with the actuarial assumptions therein. Except as provided for below, a lump sum benefit option shall not be permitted. The Participant need not elect the same optional form of payment as elected for Pension Plan benefits.
|
5.
|
Death benefits shall be provided as follows:
|
a.
|
In the event of death prior to the commencement of benefits, the surviving spouse, if any, shall receive a survivor annuity payable effective as of the first day of the month following the date of death in an amount that is actuarially equivalent, determined using the actuarial assumptions in the Pension Plan, to the single life annuity amount the Participant would have been entitled to receive if benefits commenced as of such date. If the Participant’s spouse predeceases him, the preretirement death benefit shall be paid to his designated beneficiary, or to his estate if there is no designated
|
b.
|
In the event of death subsequent to the commencement of benefits, death benefits, if any, shall be paid in accordance with the terms of the elected form of payment and any applicable beneficiary designations.
|
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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
|
5.
|
The registrant's other certifying officers 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.
|
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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
|
5.
|
The registrant's other certifying officers 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.
|