|
West Virginia
|
55-0619957
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
25 Gatewater Road
|
|
Charleston, West Virginia
|
25313
|
(Address of principal executive offices)
|
(Zip Code)
|
Yes
|
[X]
|
No
|
[ ]
|
|
Yes
|
[X]
|
No
|
[ ]
|
|
Large accelerated filer [X]
|
|
Accelerated filer [ ]
|
|
|
|
|
|
Non-accelerated filer [ ]
|
|
Smaller reporting company [ ]
|
|
|
|
|
|
|
|
Emerging growth company [ ]
|
|
Yes
|
[ ]
|
No
|
[X]
|
|
Pages
|
||
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
|
|
|
|
Part I -
|
FINANCIAL INFORMATION
|
Item 1 -
|
Financial Statements
|
|
(Unaudited)
|
|
|
||||
|
March 31, 2017
|
|
December 31, 2016
|
||||
Assets
|
|
|
|||||
Cash and due from banks
|
$
|
164,887
|
|
|
$
|
62,263
|
|
Interest-bearing deposits in depository institutions
|
25,925
|
|
|
25,876
|
|
||
Cash and Cash Equivalents
|
190,812
|
|
|
88,139
|
|
||
|
|
|
|
||||
Investment securities available for sale, at fair value
|
470,098
|
|
|
450,083
|
|
||
Investment securities held-to-maturity, at amortized cost (approximate fair value at March 31, 2017 and December 31, 2016 - $73,656 and $76,445, respectively)
|
72,308
|
|
|
75,169
|
|
||
Other securities
|
10,240
|
|
|
14,352
|
|
||
Total Investment Securities
|
552,646
|
|
|
539,604
|
|
||
|
|
|
|
||||
Gross loans
|
3,074,173
|
|
|
3,046,226
|
|
||
Allowance for loan losses
|
(19,209
|
)
|
|
(19,730
|
)
|
||
Net Loans
|
3,054,964
|
|
|
3,026,496
|
|
||
|
|
|
|
||||
Bank owned life insurance
|
101,481
|
|
|
100,732
|
|
||
Premises and equipment, net
|
73,805
|
|
|
75,165
|
|
||
Accrued interest receivable
|
8,644
|
|
|
8,408
|
|
||
Net deferred tax asset
|
24,606
|
|
|
28,043
|
|
||
Goodwill and other intangible assets, net
|
79,000
|
|
|
79,135
|
|
||
Other assets
|
38,029
|
|
|
38,681
|
|
||
Total Assets
|
$
|
4,123,987
|
|
|
$
|
3,984,403
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
||
Noninterest-bearing
|
$
|
714,791
|
|
|
$
|
672,286
|
|
Interest-bearing:
|
|
|
|
|
|
||
Demand deposits
|
743,246
|
|
|
695,891
|
|
||
Savings deposits
|
874,031
|
|
|
822,057
|
|
||
Time deposits
|
1,060,690
|
|
|
1,041,419
|
|
||
Total Deposits
|
3,392,758
|
|
|
3,231,653
|
|
||
|
|
|
|
||||
Short term borrowings:
|
|
|
|
||||
Federal funds purchased
|
—
|
|
|
64,100
|
|
||
Customer repurchase agreements
|
186,686
|
|
|
184,205
|
|
||
Long-term debt
|
16,495
|
|
|
16,495
|
|
||
Other liabilities
|
46,402
|
|
|
45,512
|
|
||
Total Liabilities
|
3,642,341
|
|
|
3,541,965
|
|
||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
Shareholders’ Equity
|
|
|
|
|
|
||
Preferred stock, par value $25 per share: 500,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, par value $2.50 per share: 50,000,000 shares authorized; 19,047,548 shares and 18,606,944 shares issued at March 31, 2017 and December 31, 2017, less 3,462,038 and 3,478,511 shares in treasury, respectively
|
47,619
|
|
|
46,518
|
|
||
Capital surplus
|
140,305
|
|
|
112,873
|
|
||
Retained earnings
|
426,126
|
|
|
417,017
|
|
||
Cost of common stock in treasury
|
(126,265
|
)
|
|
(126,958
|
)
|
||
Accumulated other comprehensive income (loss):
|
|
|
|
|
|
||
Unrealized gain on securities available-for-sale
|
(1,479
|
)
|
|
(2,352
|
)
|
||
Underfunded pension liability
|
(4,660
|
)
|
|
(4,660
|
)
|
||
Total Accumulated Other Comprehensive Income (Loss)
|
(6,139
|
)
|
|
(7,012
|
)
|
||
Total Shareholders’ Equity
|
481,646
|
|
|
442,438
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
4,123,987
|
|
|
$
|
3,984,403
|
|
Interest Income
|
Three months ended March 31,
|
|||||
2017
|
2016
|
|||||
|
|
|||||
Interest and fees on loans
|
$
|
30,104
|
|
$
|
28,927
|
|
Interest and dividends on investment securities:
|
|
|
||||
Taxable
|
3,444
|
|
3,005
|
|
||
Tax-exempt
|
663
|
|
357
|
|
||
Interest on deposits in depository institutions
|
3
|
|
—
|
|
||
Total Interest Income
|
34,214
|
|
32,289
|
|
||
|
|
|
||||
Interest Expense
|
|
|
||||
Interest on deposits
|
3,429
|
|
2,898
|
|
||
Interest on short-term borrowings
|
157
|
|
107
|
|
||
Interest on long-term debt
|
181
|
|
164
|
|
||
Total Interest Expense
|
3,767
|
|
3,169
|
|
||
Net Interest Income
|
30,447
|
|
29,120
|
|
||
Provision for loan losses
|
681
|
|
539
|
|
||
Net Interest Income After Provision for Loan Losses
|
29,766
|
|
28,581
|
|
||
|
|
|
||||
Non-Interest Income
|
|
|
||||
Net gains on sale of investment securities
|
4,276
|
|
—
|
|
||
Service charges
|
6,730
|
|
6,303
|
|
||
Bankcard revenue
|
4,140
|
|
3,967
|
|
||
Trust and investment management fee income
|
1,386
|
|
1,276
|
|
||
Bank owned life insurance
|
1,229
|
|
760
|
|
||
Other income
|
746
|
|
821
|
|
||
Total Non-Interest Income
|
18,507
|
|
13,127
|
|
||
|
|
|
||||
Non-Interest Expense
|
|
|
||||
Salaries and employee benefits
|
13,078
|
|
12,673
|
|
||
Occupancy and equipment
|
2,838
|
|
2,836
|
|
||
Depreciation
|
1,525
|
|
1,567
|
|
||
FDIC insurance expense
|
375
|
|
465
|
|
||
Advertising
|
733
|
|
716
|
|
||
Bankcard expenses
|
943
|
|
938
|
|
||
Postage, delivery, and statement mailings
|
555
|
|
565
|
|
||
Office supplies
|
361
|
|
353
|
|
||
Legal and professional fees
|
449
|
|
366
|
|
||
Telecommunications
|
484
|
|
428
|
|
||
Repossessed asset losses, net of expenses
|
336
|
|
288
|
|
||
Other expenses
|
2,923
|
|
2,945
|
|
||
Total Non-Interest Expense
|
24,600
|
|
24,140
|
|
||
Income Before Income Taxes
|
23,673
|
|
17,568
|
|
||
Income tax expense
|
7,647
|
|
5,866
|
|
||
Net Income Available to Common Shareholders
|
$
|
16,026
|
|
$
|
11,702
|
|
|
|
|
||||
Total Comprehensive Income
|
$
|
16,899
|
|
$
|
14,445
|
|
|
|
|
||||
Average shares outstanding, basic
|
15,252
|
|
14,916
|
|
||
Effect of dilutive securities
|
25
|
|
11
|
|
||
Average shares outstanding, diluted
|
15,277
|
|
14,927
|
|
||
|
|
|
||||
Basic earnings per common share
|
$
|
1.04
|
|
$
|
0.78
|
|
Diluted earnings per common share
|
$
|
1.04
|
|
$
|
0.78
|
|
Dividends declared per common share
|
$
|
0.44
|
|
$
|
0.43
|
|
|
Three Months Ended
|
|||||
|
March 31,
|
|||||
|
2017
|
2016
|
||||
|
|
|
||||
Net income
|
$
|
16,026
|
|
$
|
11,702
|
|
|
|
|
||||
Unrealized gains on available-for-sale securities arising during the period
|
5,660
|
|
4,348
|
|
||
Reclassification adjustment for gains
|
(4,276
|
)
|
—
|
|
||
Other comprehensive income before income taxes
|
1,384
|
|
4,348
|
|
||
Tax effect
|
(511
|
)
|
(1,605
|
)
|
||
Other comprehensive income, net of tax
|
873
|
|
2,743
|
|
||
|
|
|
||||
Comprehensive Income, Net of Tax
|
$
|
16,899
|
|
$
|
14,445
|
|
|
Common Stock
|
|
Capital Surplus
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Shareholders’ Equity
|
||||||||||||
Balance at December 31, 2015
|
$
|
46,249
|
|
|
$
|
106,269
|
|
|
$
|
390,690
|
|
|
$
|
(120,104
|
)
|
|
$
|
(3,832
|
)
|
|
$
|
419,272
|
|
Net income
|
—
|
|
|
—
|
|
|
11,702
|
|
|
—
|
|
|
—
|
|
|
11,702
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,743
|
|
|
2,743
|
|
||||||
Cash dividends declared ($0.43 per share)
|
—
|
|
|
—
|
|
|
(6,429
|
)
|
|
—
|
|
|
—
|
|
|
(6,429
|
)
|
||||||
Stock-based compensation expense
|
—
|
|
|
755
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
755
|
|
||||||
Restricted awards granted
|
—
|
|
|
(887
|
)
|
|
|
|
887
|
|
|
|
|
—
|
|
||||||||
Purchase of 229,132 treasury shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,925
|
)
|
|
—
|
|
|
(9,925
|
)
|
||||||
Balance at March 31, 2016
|
$
|
46,249
|
|
|
$
|
106,137
|
|
|
$
|
395,963
|
|
|
$
|
(129,142
|
)
|
|
$
|
(1,089
|
)
|
|
$
|
418,118
|
|
|
Common Stock
|
|
Capital Surplus
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Shareholders’ Equity
|
||||||||||||
Balance at December 31, 2016
|
$
|
46,518
|
|
|
$
|
112,873
|
|
|
$
|
417,017
|
|
|
$
|
(126,958
|
)
|
|
$
|
(7,012
|
)
|
|
$
|
442,438
|
|
Net income
|
—
|
|
|
—
|
|
|
16,026
|
|
|
—
|
|
|
—
|
|
|
16,026
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
873
|
|
|
873
|
|
||||||
Cash dividends declared ($0.44 per share)
|
—
|
|
|
—
|
|
|
(6,917
|
)
|
|
—
|
|
|
—
|
|
|
(6,917
|
)
|
||||||
Stock-based compensation expense
|
—
|
|
|
780
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
780
|
|
||||||
Restricted awards granted
|
|
|
(638
|
)
|
|
|
|
638
|
|
|
|
|
—
|
|
|||||||||
Issuance of 440,604 shares of common stock
|
1,101
|
|
|
27,307
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,408
|
|
||||||
Exercise of 1,250 stock options
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
55
|
|
|
—
|
|
|
38
|
|
||||||
Balance at March 31, 2017
|
$
|
47,619
|
|
|
$
|
140,305
|
|
|
$
|
426,126
|
|
|
$
|
(126,265
|
)
|
|
$
|
(6,139
|
)
|
|
$
|
481,646
|
|
|
Three months ended March 31,
|
||||||
2017
|
|
2016
|
|||||
Net income
|
$
|
16,026
|
|
|
$
|
11,702
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Accretion and amortization
|
361
|
|
|
117
|
|
||
Provision for loan losses
|
681
|
|
|
539
|
|
||
Depreciation of premises and equipment
|
1,525
|
|
|
1,567
|
|
||
Deferred income tax expense
|
2,931
|
|
|
830
|
|
||
Net periodic employee benefit cost
|
114
|
|
|
129
|
|
||
Realized investment securities gains
|
(4,276
|
)
|
|
—
|
|
||
Stock-compensation expense
|
780
|
|
|
755
|
|
||
Excess tax benefit from stock-compensation expense
|
(189
|
)
|
|
—
|
|
||
Proceeds from bank-owned life insurance
|
1,137
|
|
|
—
|
|
||
Increase in value of bank-owned life insurance
|
(749
|
)
|
|
(760
|
)
|
||
Loans originated for sale
|
(3,951
|
)
|
|
(2,809
|
)
|
||
Proceeds from the sale of loans originated for sale
|
6,118
|
|
|
3,107
|
|
||
Gain on sale of loans
|
(167
|
)
|
|
(58
|
)
|
||
Change in accrued interest receivable
|
(236
|
)
|
|
(1,085
|
)
|
||
Change in other assets
|
(131
|
)
|
|
(10,630
|
)
|
||
Change in other liabilities
|
383
|
|
|
11,432
|
|
||
Net Cash Provided by Operating Activities
|
20,357
|
|
|
14,836
|
|
||
|
|
|
|
||||
Proceeds from sales of securities available-for-sale
|
5,576
|
|
|
35
|
|
||
Proceeds from maturities and calls of securities available-for-sale
|
23,390
|
|
|
18,078
|
|
||
Proceeds from maturities and calls of securities held-to-maturity
|
2,823
|
|
|
2,332
|
|
||
Purchases of securities available-for-sale
|
(39,747
|
)
|
|
(4,289
|
)
|
||
Net increase in loans
|
(30,826
|
)
|
|
(14,668
|
)
|
||
Purchases of premises and equipment
|
(2,111
|
)
|
|
(610
|
)
|
||
Disposals of premises and equipment
|
1,781
|
|
|
341
|
|
||
Net Cash (Used in) Provided by Investing Activities
|
(39,114
|
)
|
|
1,219
|
|
||
|
|
|
|
||||
Net increase in non-interest-bearing deposits
|
42,505
|
|
|
45,450
|
|
||
Net increase in interest-bearing deposits
|
118,616
|
|
|
57,994
|
|
||
Net (decrease) increase in short-term borrowings
|
(61,619
|
)
|
|
1,845
|
|
||
Proceeds from issuance of common stock
|
28,408
|
|
|
—
|
|
||
Purchases of treasury stock
|
—
|
|
|
(9,925
|
)
|
||
Proceeds from exercise of stock options
|
38
|
|
|
—
|
|
||
Dividends paid
|
(6,518
|
)
|
|
(6,367
|
)
|
||
Net Cash Provided by Financing Activities
|
121,430
|
|
|
88,997
|
|
||
Increase in Cash and Cash Equivalents
|
102,673
|
|
|
105,052
|
|
||
Cash and cash equivalents at beginning of period
|
88,139
|
|
|
70,113
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
190,812
|
|
|
$
|
175,165
|
|
|
March 31, 2017
|
December 31, 2016
|
||||||||||||||||||||||
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated Fair Value
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasuries and U.S.
|
|
|
|
|
|
|
|
|
||||||||||||||||
government agencies
|
$
|
3
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3
|
|
$
|
3
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3
|
|
Obligations of states and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
political subdivisions
|
95,440
|
|
983
|
|
1,223
|
|
95,200
|
|
83,248
|
|
594
|
|
1,474
|
|
82,368
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. government agencies
|
343,681
|
|
1,548
|
|
6,075
|
|
339,154
|
|
335,867
|
|
1,507
|
|
6,560
|
|
330,814
|
|
||||||||
Private label
|
877
|
|
2
|
|
—
|
|
879
|
|
941
|
|
1
|
|
—
|
|
942
|
|
||||||||
Trust preferred securities
|
4,755
|
|
133
|
|
201
|
|
4,687
|
|
6,052
|
|
1,164
|
|
554
|
|
6,662
|
|
||||||||
Corporate securities
|
23,923
|
|
361
|
|
196
|
|
24,088
|
|
23,925
|
|
127
|
|
478
|
|
23,574
|
|
||||||||
Total Debt Securities
|
468,679
|
|
3,027
|
|
7,695
|
|
464,011
|
|
450,036
|
|
3,393
|
|
9,066
|
|
444,363
|
|
||||||||
Marketable equity securities
|
2,136
|
|
2,462
|
|
—
|
|
4,598
|
|
2,136
|
|
2,095
|
|
—
|
|
4,231
|
|
||||||||
Investment funds
|
1,525
|
|
—
|
|
36
|
|
1,489
|
|
1,525
|
|
—
|
|
36
|
|
1,489
|
|
||||||||
Total Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Available-for-Sale
|
$
|
472,340
|
|
$
|
5,489
|
|
$
|
7,731
|
|
$
|
470,098
|
|
$
|
453,697
|
|
$
|
5,488
|
|
$
|
9,102
|
|
$
|
450,083
|
|
|
March 31, 2017
|
December 31, 2016
|
||||||||||||||||||||||
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated Fair Value
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated Fair Value
|
|||||||||||||||||
Securities held-to-maturity:
|
|
|
|
|
|
|
|
|
||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. government agencies
|
$
|
68,308
|
|
$
|
1,392
|
|
$
|
44
|
|
$
|
69,656
|
|
$
|
71,169
|
|
$
|
1,346
|
|
$
|
70
|
|
$
|
72,445
|
|
Trust preferred securities
|
4,000
|
|
—
|
|
—
|
|
4,000
|
|
4,000
|
|
—
|
|
—
|
|
4,000
|
|
||||||||
Total Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Held-to-Maturity
|
$
|
72,308
|
|
$
|
1,392
|
|
$
|
44
|
|
$
|
73,656
|
|
$
|
75,169
|
|
$
|
1,346
|
|
$
|
70
|
|
$
|
76,445
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-marketable equity securities
|
$
|
10,240
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,240
|
|
$
|
14,352
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,352
|
|
Total Other Investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Securities
|
$
|
10,240
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,240
|
|
$
|
14,352
|
|
$
|
—
|
|
$
|
—
|
|
$
|
14,352
|
|
|
March 31, 2017
|
|||||||||||||||||
Less Than Twelve Months
|
Twelve Months or Greater
|
Total
|
||||||||||||||||
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
|||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
41,257
|
|
$
|
1,223
|
|
$
|
—
|
|
$
|
—
|
|
$
|
41,257
|
|
$
|
1,223
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
216,707
|
|
5,611
|
|
8,136
|
|
464
|
|
224,843
|
|
6,075
|
|
||||||
Trust preferred securities
|
—
|
|
—
|
|
4,319
|
|
201
|
|
4,319
|
|
201
|
|
||||||
Corporate securities
|
2,328
|
|
51
|
|
2,265
|
|
145
|
|
4,593
|
|
196
|
|
||||||
Investment funds
|
1,500
|
|
36
|
|
—
|
|
—
|
|
1,500
|
|
36
|
|
||||||
Total
|
$
|
261,792
|
|
$
|
6,921
|
|
$
|
14,720
|
|
$
|
810
|
|
$
|
276,512
|
|
$
|
7,731
|
|
|
December 31, 2016
|
|||||||||||||||||
Less Than Twelve Months
|
Twelve Months or Greater
|
Total
|
||||||||||||||||
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
Estimated Fair Value
|
Unrealized Loss
|
|||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
35,108
|
|
$
|
1,474
|
|
$
|
—
|
|
$
|
—
|
|
$
|
35,108
|
|
$
|
1,474
|
|
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
225,530
|
|
6,099
|
|
8,527
|
|
461
|
|
234,057
|
|
6,560
|
|
||||||
Trust preferred securities
|
—
|
|
—
|
|
4,971
|
|
554
|
|
4,971
|
|
554
|
|
||||||
Corporate securities
|
14,306
|
|
478
|
|
—
|
|
—
|
|
14,306
|
|
478
|
|
||||||
Investment funds
|
1,500
|
|
36
|
|
—
|
|
—
|
|
1,500
|
|
36
|
|
||||||
Total
|
$
|
276,444
|
|
$
|
8,087
|
|
$
|
13,498
|
|
$
|
1,015
|
|
$
|
289,942
|
|
$
|
9,102
|
|
|
Amortized Cost
|
Estimated Fair Value
|
||||
Securities Available-for-Sale
|
|
|
||||
Due in one year or less
|
$
|
2,770
|
|
$
|
2,788
|
|
Due after one year through five years
|
15,041
|
|
15,225
|
|
||
Due after five years through ten years
|
81,726
|
|
80,029
|
|
||
Due after ten years
|
369,142
|
|
365,969
|
|
||
|
$
|
468,679
|
|
$
|
464,011
|
|
Securities Held-to-Maturity
|
|
|
|
|
||
Due in one year or less
|
$
|
—
|
|
$
|
—
|
|
Due after one year through five years
|
—
|
|
—
|
|
||
Due after five years through ten years
|
—
|
|
—
|
|
||
Due after ten years
|
72,308
|
|
73,656
|
|
||
|
$
|
72,308
|
|
$
|
73,656
|
|
|
Three months ended March 31, 2017
|
|||||
|
2017
|
2016
|
||||
|
|
|
||||
Gross realized gains
|
$
|
4,276
|
|
$
|
—
|
|
Gross realized losses
|
—
|
|
—
|
|
||
Net investment security gains
|
$
|
4,276
|
|
$
|
—
|
|
|
March 31, 2017
|
December 31, 2016
|
||||
Residential real estate
|
$
|
1,444,795
|
|
$
|
1,451,462
|
|
Home equity
|
139,165
|
|
141,965
|
|
||
Commercial and industrial
|
205,011
|
|
185,667
|
|
||
Commercial real estate
|
1,250,106
|
|
1,229,516
|
|
||
Consumer
|
32,043
|
|
32,545
|
|
||
DDA overdrafts
|
3,053
|
|
5,071
|
|
||
Gross loans
|
3,074,173
|
|
3,046,226
|
|
||
Allowance for loan losses
|
(19,209
|
)
|
(19,730
|
)
|
||
Net loans
|
$
|
3,054,964
|
|
$
|
3,026,496
|
|
|
Commercial &
|
Commercial
|
Residential
|
|
|
DDA
|
|
||||||||||||||
|
Industrial
|
Real Estate
|
Real Estate
|
Home Equity
|
Consumer
|
Overdrafts
|
Total
|
||||||||||||||
Three months ended March 31, 2017
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan loss
|
|||||||||||||||||||||
Beginning balance
|
$
|
4,206
|
|
$
|
6,573
|
|
$
|
6,680
|
|
$
|
1,417
|
|
$
|
82
|
|
$
|
772
|
|
$
|
19,730
|
|
Charge-offs
|
(53
|
)
|
(180
|
)
|
(626
|
)
|
(121
|
)
|
(6
|
)
|
(636
|
)
|
(1,622
|
)
|
|||||||
Recoveries
|
2
|
|
11
|
|
25
|
|
—
|
|
11
|
|
371
|
|
420
|
|
|||||||
Provision for acquired loans
|
—
|
|
(19
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(19
|
)
|
|||||||
Provision
|
128
|
|
(381
|
)
|
644
|
|
3
|
|
(23
|
)
|
329
|
|
700
|
|
|||||||
Ending balance
|
$
|
4,283
|
|
$
|
6,004
|
|
$
|
6,723
|
|
$
|
1,299
|
|
$
|
64
|
|
$
|
836
|
|
$
|
19,209
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Three months ended March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance
|
$
|
3,271
|
|
$
|
6,985
|
|
$
|
6,778
|
|
$
|
1,463
|
|
$
|
97
|
|
$
|
657
|
|
$
|
19,251
|
|
Charge-offs
|
(1
|
)
|
(302
|
)
|
(405
|
)
|
(106
|
)
|
(38
|
)
|
(318
|
)
|
(1,170
|
)
|
|||||||
Recoveries
|
1
|
|
384
|
|
39
|
|
—
|
|
29
|
|
242
|
|
695
|
|
Provision for acquired loans
|
—
|
|
40
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40
|
|
|||||||
Provision
|
632
|
|
(703
|
)
|
347
|
|
45
|
|
5
|
|
173
|
|
499
|
|
|||||||
Ending balance
|
$
|
3,903
|
|
$
|
6,404
|
|
$
|
6,759
|
|
$
|
1,402
|
|
$
|
93
|
|
$
|
754
|
|
$
|
19,315
|
|
|
|
|
|
|
|
|
|
||||||||||||||
As of March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Individually
|
$
|
—
|
|
$
|
636
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
636
|
|
Collectively
|
4,277
|
|
5,267
|
|
6,632
|
|
1,299
|
|
62
|
|
836
|
|
18,373
|
|
|||||||
Acquired with deteriorated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
credit quality
|
6
|
|
101
|
|
91
|
|
—
|
|
2
|
|
—
|
|
200
|
|
|||||||
Total
|
$
|
4,283
|
|
$
|
6,004
|
|
$
|
6,723
|
|
$
|
1,299
|
|
$
|
64
|
|
$
|
836
|
|
$
|
19,209
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Individually
|
$
|
1,282
|
|
$
|
5,941
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,223
|
|
Collectively
|
203,420
|
|
1,237,110
|
|
1,442,174
|
|
139,165
|
|
31,928
|
|
3,053
|
|
3,056,850
|
|
|||||||
Acquired with deteriorated
|
|
|
|
|
|
|
|
|
|||||||||||||
credit quality
|
309
|
|
7,055
|
|
2,621
|
|
—
|
|
115
|
|
—
|
|
10,100
|
|
|||||||
Total
|
$
|
205,011
|
|
$
|
1,250,106
|
|
$
|
1,444,795
|
|
$
|
139,165
|
|
$
|
32,043
|
|
$
|
3,053
|
|
$
|
3,074,173
|
|
|
|
|
|
|
|
|
|
||||||||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Allowance for loan loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Individually
|
$
|
—
|
|
$
|
665
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
665
|
|
Collectively
|
4,200
|
|
5,788
|
|
6,589
|
|
1,417
|
|
82
|
|
772
|
|
18,848
|
|
|||||||
Acquired with deteriorated
|
|
|
|
|
|
|
|
||||||||||||||
credit quality
|
6
|
|
120
|
|
91
|
|
—
|
|
—
|
|
—
|
|
217
|
|
|||||||
Total
|
$
|
4,206
|
|
$
|
6,573
|
|
$
|
6,680
|
|
$
|
1,417
|
|
$
|
82
|
|
$
|
772
|
|
$
|
19,730
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Evaluated for impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Individually
|
$
|
1,611
|
|
$
|
5,970
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,581
|
|
Collectively
|
183,741
|
|
1,216,050
|
|
1,448,830
|
|
141,965
|
|
32,545
|
|
5,071
|
|
3,028,202
|
|
|||||||
Acquired with deteriorated
|
|
|
|
|
|
|
|
||||||||||||||
credit quality
|
315
|
|
7,496
|
|
2,632
|
|
—
|
|
—
|
|
—
|
|
10,443
|
|
|||||||
Total
|
$
|
185,667
|
|
$
|
1,229,516
|
|
$
|
1,451,462
|
|
$
|
141,965
|
|
$
|
32,545
|
|
$
|
5,071
|
|
$
|
3,046,226
|
|
|
Commercial and industrial
|
Commercial real estate
|
Total
|
||||||
March 31, 2017
|
|
|
|
||||||
Pass
|
$
|
195,748
|
|
$
|
1,199,652
|
|
$
|
1,395,400
|
|
Special mention
|
2,472
|
|
14,892
|
|
17,364
|
|
|||
Substandard
|
6,791
|
|
35,562
|
|
42,353
|
|
|||
Doubtful
|
—
|
|
—
|
|
—
|
|
|||
Total
|
$
|
205,011
|
|
$
|
1,250,106
|
|
$
|
1,455,117
|
|
|
|
|
|
||||||
December 31, 2016
|
|
|
|
|
|
|
|||
Pass
|
$
|
176,823
|
|
$
|
1,178,288
|
|
$
|
1,355,111
|
|
Special mention
|
2,427
|
|
16,031
|
|
18,458
|
|
|||
Substandard
|
6,417
|
|
35,197
|
|
41,614
|
|
|||
Doubtful
|
—
|
|
—
|
|
—
|
|
|||
Total
|
$
|
185,667
|
|
$
|
1,229,516
|
|
$
|
1,415,183
|
|
|
Performing
|
Non-Performing
|
Total
|
||||||
March 31, 2017
|
|
|
|
||||||
Residential real estate
|
$
|
1,441,950
|
|
$
|
2,845
|
|
$
|
1,444,795
|
|
Home equity
|
139,051
|
|
114
|
|
139,165
|
|
|||
Consumer
|
32,043
|
|
—
|
|
32,043
|
|
|||
DDA overdrafts
|
3,053
|
|
—
|
|
3,053
|
|
|||
Total
|
$
|
1,616,097
|
|
$
|
2,959
|
|
$
|
1,619,056
|
|
|
|
|
|
||||||
December 31, 2016
|
|
|
|
||||||
Residential real estate
|
$
|
1,447,087
|
|
$
|
4,375
|
|
$
|
1,451,462
|
|
Home equity
|
141,834
|
|
131
|
|
141,965
|
|
|||
Consumer
|
32,545
|
|
—
|
|
32,545
|
|
|||
DDA overdrafts
|
5,071
|
|
—
|
|
5,071
|
|
|||
Total
|
$
|
1,626,537
|
|
$
|
4,506
|
|
$
|
1,631,043
|
|
|
March 31, 2017
|
||||||||||||||||||||
|
Accruing
|
|
|
||||||||||||||||||
|
Current
|
30-59 days
|
60-89 days
|
Over 90 days
|
Purchased-Credit Impaired
|
Non-accrual
|
Total
|
||||||||||||||
Residential real estate
|
$
|
1,438,109
|
|
$
|
3,455
|
|
$
|
386
|
|
$
|
35
|
|
$
|
—
|
|
$
|
2,810
|
|
$
|
1,444,795
|
|
Home equity
|
138,750
|
|
205
|
|
96
|
|
—
|
|
—
|
|
114
|
|
139,165
|
|
|||||||
Commercial and industrial
|
203,046
|
|
562
|
|
50
|
|
—
|
|
—
|
|
1,353
|
|
205,011
|
|
|||||||
Commercial real estate
|
1,241,951
|
|
239
|
|
525
|
|
—
|
|
250
|
|
7,141
|
|
1,250,106
|
|
|||||||
Consumer
|
32,006
|
|
28
|
|
9
|
|
—
|
|
—
|
|
—
|
|
32,043
|
|
|||||||
DDA overdrafts
|
2,723
|
|
319
|
|
11
|
|
—
|
|
—
|
|
—
|
|
3,053
|
|
|||||||
Total
|
$
|
3,056,585
|
|
$
|
4,808
|
|
$
|
1,077
|
|
$
|
35
|
|
$
|
250
|
|
$
|
11,418
|
|
$
|
3,074,173
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 31, 2016
|
||||||||||||||||||||
|
Accruing
|
|
|
||||||||||||||||||
|
Current
|
30-59 days
|
60-89 days
|
Over 90 days
|
Purchased-Credit Impaired
|
Non-accrual
|
Total
|
||||||||||||||
Residential real estate
|
$
|
1,441,086
|
|
$
|
5,364
|
|
$
|
637
|
|
$
|
73
|
|
$
|
—
|
|
$
|
4,302
|
|
$
|
1,451,462
|
|
Home equity
|
141,192
|
|
423
|
|
219
|
|
31
|
|
—
|
|
100
|
|
141,965
|
|
|||||||
Commercial and industrial
|
183,615
|
|
94
|
|
—
|
|
—
|
|
—
|
|
1,958
|
|
185,667
|
|
|||||||
Commercial real estate
|
1,221,344
|
|
553
|
|
—
|
|
278
|
|
—
|
|
7,341
|
|
1,229,516
|
|
|||||||
Consumer
|
32,506
|
|
38
|
|
1
|
|
—
|
|
—
|
|
—
|
|
32,545
|
|
|||||||
DDA overdrafts
|
4,472
|
|
595
|
|
4
|
|
—
|
|
—
|
|
—
|
|
5,071
|
|
|||||||
Total
|
$
|
3,024,215
|
|
$
|
7,067
|
|
$
|
861
|
|
$
|
382
|
|
$
|
—
|
|
$
|
13,701
|
|
$
|
3,046,226
|
|
|
March 31, 2017
|
December 31, 2016
|
||||||||||||||||
|
|
Unpaid
|
|
|
Unpaid
|
|
||||||||||||
|
Recorded
|
Principal
|
Related
|
Recorded
|
Principal
|
Related
|
||||||||||||
|
Investment
|
Balance
|
Allowance
|
Investment
|
Balance
|
Allowance
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
1,282
|
|
$
|
3,447
|
|
$
|
—
|
|
$
|
1,611
|
|
$
|
3,775
|
|
$
|
—
|
|
Commercial real estate
|
6,123
|
|
7,948
|
|
—
|
|
3,138
|
|
4,963
|
|
—
|
|
||||||
Total
|
$
|
7,405
|
|
$
|
11,395
|
|
$
|
—
|
|
$
|
4,749
|
|
$
|
8,738
|
|
$
|
—
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate
|
2,832
|
|
2,832
|
|
636
|
|
2,832
|
|
2,832
|
|
665
|
|
||||||
Total
|
$
|
2,832
|
|
$
|
2,832
|
|
$
|
636
|
|
$
|
2,832
|
|
$
|
2,832
|
|
$
|
665
|
|
|
Three months ended March 31,
|
|||||||||||
|
2017
|
2016
|
||||||||||
|
Average
|
Interest
|
Average
|
Interest
|
||||||||
|
Recorded
|
Income
|
Recorded
|
Income
|
||||||||
|
Investment
|
Recognized
|
Investment
|
Recognized
|
||||||||
With no related allowance recorded:
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
1,365
|
|
—
|
|
$
|
2,349
|
|
$
|
—
|
|
|
Commercial real estate
|
3,118
|
|
5
|
|
5,358
|
|
4
|
|
||||
Total
|
$
|
4,483
|
|
$
|
5
|
|
$
|
7,707
|
|
$
|
4
|
|
|
|
|
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate
|
2,832
|
|
19
|
|
—
|
|
—
|
|
||||
Total
|
$
|
2,832
|
|
$
|
19
|
|
$
|
—
|
|
$
|
—
|
|
|
March 31, 2017
|
December 31, 2016
|
||||||||||||||||
|
Non-
|
|
|
Non-
|
|
|||||||||||||
Accruing
|
Accruing
|
Total
|
Accruing
|
Accruing
|
Total
|
|||||||||||||
Commercial and industrial
|
$
|
38
|
|
$
|
—
|
|
$
|
38
|
|
$
|
42
|
|
$
|
—
|
|
$
|
42
|
|
Commercial real estate
|
8,513
|
|
—
|
|
8,513
|
|
5,525
|
|
—
|
|
5,525
|
|
||||||
Residential real estate
|
20,276
|
|
150
|
|
20,426
|
|
20,424
|
|
391
|
|
20,815
|
|
||||||
Home equity
|
3,072
|
|
30
|
|
3,102
|
|
3,105
|
|
30
|
|
3,135
|
|
||||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
|
$
|
31,899
|
|
$
|
180
|
|
$
|
32,079
|
|
$
|
29,096
|
|
$
|
421
|
|
$
|
29,517
|
|
|
New TDRs
|
|||||||||||||||
|
Three months ended March 31,
|
|||||||||||||||
|
2017
|
2016
|
||||||||||||||
|
Pre
|
Post
|
|
Pre
|
Post
|
|||||||||||
|
Modification
|
Modification
|
|
Modification
|
Modification
|
|||||||||||
|
Outstanding
|
Outstanding
|
|
Outstanding
|
Outstanding
|
|||||||||||
Number of
|
Recorded
|
Recorded
|
Number of
|
Recorded
|
Recorded
|
|||||||||||
Contracts
|
Investment
|
Investment
|
Contracts
|
Investment
|
Investment
|
|||||||||||
Commercial and industrial
|
—
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Commercial real estate
|
1
|
|
3,015
|
|
3,015
|
|
—
|
|
—
|
|
—
|
|
||||
Residential real estate
|
9
|
|
1,130
|
|
1,130
|
|
8
|
|
741
|
|
741
|
|
||||
Home equity
|
2
|
|
58
|
|
58
|
|
1
|
|
29
|
|
29
|
|
||||
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
|
12
|
|
$
|
4,203
|
|
$
|
4,203
|
|
9
|
|
$
|
770
|
|
$
|
770
|
|
|
March 31, 2017
|
December 31, 2016
|
||||
Junior subordinated debentures owed to City Holding Capital Trust III, due 2038, interest at a rate of 4.63% and 4.35%, respectively
|
$
|
16,495
|
|
$
|
16,495
|
|
|
March 31, 2017
|
December 31, 2016
|
||||||||||
|
Notional Amount
|
Fair Value
|
Notional Amount
|
Fair Value
|
||||||||
|
|
|
|
|
||||||||
Non-hedging interest rate derivatives:
|
|
|
|
|
||||||||
Customer counterparties:
|
|
|
|
|
||||||||
Loan interest rate swap - assets
|
$
|
261,945
|
|
$
|
6,562
|
|
$
|
234,806
|
|
$
|
7,352
|
|
Loan interest rate swap - liabilities
|
245,311
|
|
8,984
|
|
207,201
|
|
8,111
|
|
||||
|
|
|
|
|
||||||||
Non-hedging interest rate derivatives:
|
|
|
|
|
||||||||
Financial institution counterparties:
|
|
|
|
|
||||||||
Loan interest rate swap - assets
|
252,074
|
|
8,996
|
|
207,201
|
|
8,111
|
|
||||
Loan interest rate swap - liabilities
|
261,562
|
|
6,525
|
|
241,995
|
|
7,360
|
|
||||
|
|
|
|
|
||||||||
Derivatives designated as hedges of fair value:
|
|
|
|
|
||||||||
Financial institution counterparties:
|
|
|
|
|
||||||||
Loan interest rate swap - assets
|
4,626
|
|
6
|
|
—
|
|
—
|
|
||||
Loan interest rate swap - liabilities
|
—
|
|
—
|
|
4,626
|
|
12
|
|
|
Three months ended March 31,
|
|||||
2017
|
2016
|
|||||
Change in fair value non-hedging interest rate derivatives:
|
|
|
||||
Other income - derivative asset
|
$
|
(485
|
)
|
$
|
11,346
|
|
Other income - derivative liability
|
485
|
|
(11,630
|
)
|
||
Other expense - derivative asset
|
45
|
|
—
|
|
||
|
|
|
||||
Change in fair value hedging interest rate derivatives:
|
|
|
||||
Hedged item - derivative asset
|
14
|
|
121
|
|
||
Other income (expense) - derivative liability with financial institution counterparties
|
—
|
|
(2
|
)
|
||
Other income (expense) - derivative asset with financial institution counterparties
|
(4
|
)
|
—
|
|
|
Three months ended March 31,
|
|||||||||
|
2017
|
2016
|
||||||||
Options
|
Weighted-Average Exercise Price
|
Options
|
Weighted-Average Exercise Price
|
|||||||
Outstanding at January 1
|
86,613
|
|
$
|
41.08
|
|
95,015
|
|
$
|
38.38
|
|
Granted
|
17,631
|
|
66.32
|
|
24,348
|
|
43.73
|
|
||
Exercised
|
(1,250
|
)
|
30.38
|
|
—
|
|
—
|
|
||
Forfeited
|
—
|
|
—
|
|
—
|
|
—
|
|
||
Outstanding at March 31
|
102,994
|
|
$
|
45.53
|
|
119,363
|
|
$
|
39.49
|
|
|
|
|
|
|
||||||
Exerciseable at March 31
|
23,276
|
|
$
|
36.70
|
|
35,750
|
|
$
|
34.79
|
|
|
Three months ended March 31,
|
|||||
|
2017
|
2016
|
||||
Proceeds from stock option exercises
|
$
|
38
|
|
$
|
—
|
|
Intrinsic value of stock options exercised
|
44
|
|
—
|
|
||
|
|
|
||||
Stock-based compensation expense associated with stock options
|
$
|
65
|
|
$
|
60
|
|
|
|
|
||||
At period-end:
|
March 31, 2017
|
|
||||
Unrecognized stock-based compensation expense associated with stock options
|
$
|
563
|
|
|
||
Weighted average period (in years) in which the above amount is expected to be
|
|
|
||||
recognized
|
3.0
|
|
|
Ranges of Exercise Prices
|
No. of Options Outstanding
|
Weighted-Average Exercise Price
|
Weighted-Average Remaining Contractual Life (Years)
|
Aggregate Intrinsic Value (in thousands)
|
No. of Options Currently Exercisable
|
Weighted-Average Exercise Price of Options Currently Exercisable
|
Weighted-Average Remaining Contractual Life (Years)
|
Aggregate Intrinsic Value of Options Currently Exercisable (in thousands)
|
|||||||||||
$25.00 - $29.99
|
1,250
|
|
$
|
28.15
|
|
2.0
|
$
|
45
|
|
1,250
|
|
$
|
28.15
|
|
2.0
|
|
$
|
45
|
|
30.00 - 34.99
|
500
|
|
30.38
|
|
1.7
|
17
|
|
500
|
|
30.38
|
|
1.7
|
|
17
|
|
||||
35.00 - 39.99
|
32,351
|
|
36.51
|
|
5.4
|
905
|
|
16,876
|
|
35.39
|
|
5.0
|
|
491
|
|
||||
40.00 - 44.99
|
38,301
|
|
43.99
|
|
8.2
|
785
|
|
4,650
|
|
44.43
|
|
7.0
|
|
93
|
|
||||
45.00 - 49.99
|
12,961
|
|
46.61
|
|
7.9
|
232
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
50.00 - 70.00
|
17,631
|
|
66.32
|
|
9.9
|
$
|
—
|
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
||
|
102,994
|
|
|
|
$
|
1,984
|
|
23,276
|
|
|
|
$
|
646
|
|
|
Three months ended March 31,
|
|||
|
2017
|
2016
|
||
Risk-free interest rate
|
2.12
|
%
|
1.43
|
%
|
Expected dividend yield
|
2.60
|
%
|
3.86
|
%
|
Volatility factor
|
25.80
|
%
|
30.76
|
%
|
Expected life of option
|
7.0 years
|
|
7.0 years
|
|
|
Three months ended March 31,
|
|||||||||
|
2017
|
2016
|
||||||||
Restricted Awards
|
Average Market Price at Grant
|
Restricted Awards
|
Average Market Price at Grant
|
|||||||
Outstanding at January 1
|
180,622
|
|
$
|
39.31
|
|
172,921
|
|
$
|
37.83
|
|
Granted
|
10,609
|
|
66.33
|
|
11,251
|
|
43.73
|
|
||
Forfeited
|
(750
|
)
|
42.05
|
|
—
|
|
—
|
|
||
Vested
|
(18,438
|
)
|
37.50
|
|
(14,950
|
)
|
35.52
|
|
||
Outstanding at March 31
|
172,043
|
|
$
|
41.16
|
|
169,222
|
|
$
|
37.97
|
|
|
Three months ended March 31,
|
|||||
|
2017
|
2016
|
||||
Stock-based compensation expense associated with restricted shares
|
$
|
355
|
|
$
|
316
|
|
|
|
|
||||
At period-end:
|
March 31, 2017
|
|
||||
Unrecognized stock-based compensation expense associated with restricted shares
|
$
|
3,271
|
|
|
||
Weighted average period (in years) in which the above amount is expected to be
|
|
|
||||
recognized
|
3.1
|
|
|
|
Three months ended March 31,
|
|||||
2017
|
2016
|
|||||
Components of net periodic cost:
|
|
|
||||
Interest cost
|
$
|
193
|
|
$
|
205
|
|
Expected return on plan assets
|
(294
|
)
|
(288
|
)
|
||
Net amortization and deferral
|
215
|
|
212
|
|
||
Net Periodic Pension Cost
|
$
|
114
|
|
$
|
129
|
|
|
|
|
||||
401(k) Plan expense
|
$
|
251
|
|
$
|
217
|
|
|
|
|
||||
Defined benefit plan contributions
|
$
|
—
|
|
$
|
—
|
|
|
March 31, 2017
|
December 31, 2016
|
||||
Commitments to extend credit:
|
|
|
||||
Home equity lines
|
$
|
188,498
|
|
$
|
185,553
|
|
Commercial real estate
|
79,584
|
|
98,883
|
|
||
Other commitments
|
205,652
|
|
203,103
|
|
||
Standby letters of credit
|
5,012
|
|
5,014
|
|
||
Commercial letters of credit
|
1,443
|
|
1,859
|
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||
|
|
Unrealized
|
|
||||||
|
|
Gains (Losses) on
|
|
||||||
|
Defined Benefit
|
Securities
|
|
||||||
|
Pension Plans
|
Available-for-Sale
|
Total
|
||||||
|
|
|
|
||||||
Balance at December 31, 2015
|
$
|
(4,759
|
)
|
$
|
927
|
|
$
|
(3,832
|
)
|
|
|
|
|
||||||
Other comprehensive income before reclassifications
|
—
|
|
2,743
|
|
2,743
|
|
|||
Amounts reclassified from other comprehensive loss
|
—
|
|
—
|
|
—
|
|
|||
|
—
|
|
2,743
|
|
2,743
|
|
|||
|
|
|
|
||||||
Balance at March 31, 2016
|
$
|
(4,759
|
)
|
$
|
3,670
|
|
$
|
(1,089
|
)
|
|
|
|
|
||||||
Balance at December 31, 2016
|
$
|
(4,660
|
)
|
$
|
(2,352
|
)
|
$
|
(7,012
|
)
|
|
|
|
|
||||||
Other comprehensive income before reclassifications
|
—
|
|
3,571
|
|
3,571
|
|
|||
Amounts reclassified from other comprehensive loss
|
—
|
|
(2,698
|
)
|
(2,698
|
)
|
|||
|
—
|
|
873
|
|
873
|
|
|||
|
|
|
|
||||||
Balance at March 31, 2017
|
$
|
(4,660
|
)
|
$
|
(1,479
|
)
|
$
|
(6,139
|
)
|
|
Amount reclassified from Other Comprehensive Loss
|
|
|||||
|
Three months ended
|
Affected line item
|
|||||
|
March 31,
|
in the Statements
|
|||||
|
2017
|
2016
|
of Income
|
||||
|
|
|
|
||||
Securities available-for-sale:
|
|
|
|
||||
Net securities gains reclassified into earnings
|
$
|
(4,276
|
)
|
$
|
—
|
|
Security gains (losses)
|
Related income tax expense
|
1,578
|
|
—
|
|
Income tax expense
|
||
Net effect on accumulated other comprehensive loss
|
$
|
(2,698
|
)
|
$
|
—
|
|
|
|
Three months ended March 31,
|
|||||
2017
|
2016
|
|||||
Distributed earnings allocated to common stock
|
$
|
6,782
|
|
$
|
6,365
|
|
Undistributed earnings allocated to common stock
|
9,067
|
|
5,206
|
|
||
Net earnings allocated to common shareholders
|
$
|
15,849
|
|
$
|
11,571
|
|
|
|
|
||||
Average shares outstanding
|
15,252
|
|
14,916
|
|
||
Effect of dilutive securities:
|
|
|
||||
Employee stock awards
|
25
|
|
11
|
|
||
Shares for diluted earnings per share
|
15,277
|
|
14,927
|
|
||
|
|
|
||||
Basic earnings per share
|
$
|
1.04
|
|
$
|
0.78
|
|
Diluted earnings per share
|
$
|
1.04
|
|
$
|
0.78
|
|
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total Gains (Losses)
|
||||||||||
March 31, 2017
|
|
|
|
|
|
||||||||||
Recurring fair value measurements
|
|
|
|
|
|
||||||||||
Financial Assets
|
|
|
|
|
|
||||||||||
U.S. Government agencies
|
$
|
3
|
|
$
|
—
|
|
$
|
3
|
|
$
|
—
|
|
|
||
Obligations of states and political subdivisions
|
95,200
|
|
—
|
|
95,200
|
|
—
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|||||||||
U.S. Government agencies
|
339,154
|
|
—
|
|
339,154
|
|
—
|
|
|
||||||
Private label
|
879
|
|
—
|
|
879
|
|
—
|
|
|
||||||
Trust preferred securities
|
4,687
|
|
—
|
|
4,429
|
|
258
|
|
|
||||||
Corporate securities
|
24,088
|
|
—
|
|
24,088
|
|
—
|
|
|
||||||
Marketable equity securities
|
4,598
|
|
4,598
|
|
—
|
|
—
|
|
|
||||||
Investment funds
|
1,489
|
|
1,489
|
|
—
|
|
—
|
|
|
||||||
Derivative assets
|
15,564
|
|
—
|
|
15,564
|
|
—
|
|
|
||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||
Derivative liabilities
|
15,509
|
|
—
|
|
15,509
|
|
—
|
|
|
||||||
|
|
|
|
|
|
||||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
|
|
|
|
||||||
Financial Assets
|
|
|
|
|
|
||||||||||
Impaired loans
|
$
|
9,601
|
|
$
|
—
|
|
$
|
—
|
|
$
|
9,601
|
|
$
|
29
|
|
Non-Financial Assets
|
|
|
|
|
|
||||||||||
Other real estate owned
|
4,405
|
|
—
|
|
—
|
|
4,405
|
|
(191
|
)
|
|||||
Other assets
|
1,850
|
|
—
|
|
—
|
|
1,850
|
|
(175
|
)
|
|||||
|
|
|
|
|
|
||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|||||
Recurring fair value measurements
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Government agencies
|
$
|
3
|
|
$
|
—
|
|
$
|
3
|
|
$
|
—
|
|
|
|
|
Obligations of states and political subdivisions
|
82,368
|
|
—
|
|
82,368
|
|
—
|
|
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government agencies
|
330,814
|
|
—
|
|
330,814
|
|
—
|
|
|
|
|||||
Private label
|
942
|
|
—
|
|
942
|
|
—
|
|
|
|
|||||
Trust preferred securities
|
6,662
|
|
—
|
|
4,127
|
|
2,535
|
|
|
|
|||||
Corporate securities
|
23,574
|
|
—
|
|
23,574
|
|
—
|
|
|
|
|||||
Marketable equity securities
|
4,231
|
|
4,231
|
|
—
|
|
—
|
|
|
|
|||||
Investment funds
|
1,489
|
|
1,489
|
|
—
|
|
—
|
|
|
|
|||||
Derivative assets
|
15,463
|
|
—
|
|
15,463
|
|
—
|
|
|
|
|||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
15,483
|
|
—
|
|
15,483
|
|
—
|
|
|
|
|||||
|
|
|
|
|
|
||||||||||
Nonrecurring fair value measurements
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial Assets
|
|
|
|
|
|
||||||||||
Impaired loans
|
$
|
6,916
|
|
$
|
—
|
|
$
|
—
|
|
$
|
6,916
|
|
$
|
(665
|
)
|
Non-Financial Assets
|
|
|
|
|
|
||||||||||
Other real estate owned
|
4,588
|
|
—
|
|
—
|
|
4,588
|
|
(665
|
)
|
|||||
Other assets
|
625
|
|
—
|
|
—
|
|
625
|
|
(444
|
)
|
|
Three months ended March 31,
|
|||||
2017
|
2016
|
|||||
Beginning balance
|
$
|
2,535
|
|
$
|
2,096
|
|
Impairment losses on investment securities
|
—
|
|
—
|
|
||
Included in other comprehensive income
|
(977
|
)
|
18
|
|
||
Dispositions
|
(1,300
|
)
|
—
|
|
||
Transfers into Level 3
|
—
|
|
—
|
|
||
Ending balance
|
$
|
258
|
|
$
|
2,114
|
|
|
Three months ended March 31,
|
|||||
2017
|
2016
|
|||||
|
|
|
||||
Beginning balance
|
$
|
6,916
|
|
$
|
8,482
|
|
|
|
|
||||
Loans classified as impaired during the period
|
3,015
|
|
—
|
|
||
Specific valuation allowance allocations
|
—
|
|
—
|
|
||
|
3,015
|
|
—
|
|
||
|
|
|
||||
(Additional) reduction in specific valuation allowance allocations
|
(29
|
)
|
—
|
|
||
|
|
|
||||
Paydowns, payoffs, other activity
|
(301
|
)
|
(1,247
|
)
|
||
|
|
|
||||
Ending balance
|
$
|
9,601
|
|
$
|
7,235
|
|
|
||||||
|
Three months ended March 31,
|
|||||
|
2017
|
2016
|
||||
|
|
|
||||
Beginning balance
|
$
|
4,588
|
|
$
|
6,518
|
|
|
|
|
||||
OREO remeasured at initial recognition:
|
|
|
||||
Carrying value of foreclosed assets prior to remeasurement
|
1,226
|
|
673
|
|
||
Charge-offs recognized in the allowance for loan losses
|
(442
|
)
|
—
|
|
||
Fair value
|
784
|
|
673
|
|
||
|
|
|
||||
OREO remeasured subsequent to initial recognition:
|
|
|
||||
Carrying value of foreclosed assets prior to remeasurement
|
1,464
|
|
1,228
|
|
||
Fair value
|
1,273
|
|
1,063
|
|
||
Write-downs included in other non-interest expense
|
(191
|
)
|
(165
|
)
|
||
|
|
|
||||
Disposed
|
(776
|
)
|
(972
|
)
|
||
|
|
|
||||
Ending balance
|
$
|
4,405
|
|
$
|
6,054
|
|
|
Carrying Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||
March 31, 2017
|
|
|
|
|
|
||||||||||
Assets:
|
|||||||||||||||
Cash and cash equivalents
|
$
|
190,812
|
|
$
|
190,812
|
|
$
|
190,812
|
|
$
|
—
|
|
$
|
—
|
|
Securities available-for-sale
|
470,098
|
|
470,098
|
|
6,087
|
|
463,753
|
|
258
|
|
|||||
Securities held-to-maturity
|
72,308
|
|
73,656
|
|
—
|
|
73,656
|
|
—
|
|
|||||
Other securities
|
10,240
|
|
10,240
|
|
—
|
|
10,240
|
|
—
|
|
|||||
Net loans
|
3,054,964
|
|
3,040,822
|
|
—
|
|
—
|
|
3,040,822
|
|
|||||
Accrued interest receivable
|
8,644
|
|
8,644
|
|
8,644
|
|
—
|
|
—
|
|
|||||
Derivative assets
|
15,564
|
|
15,564
|
|
—
|
|
15,564
|
|
—
|
|
|||||
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
||||||||||
Deposits
|
3,392,758
|
|
2,606,844
|
|
1,545,468
|
|
1,061,376
|
|
—
|
|
|||||
Short-term debt
|
186,686
|
|
186,686
|
|
—
|
|
186,686
|
|
—
|
|
|||||
Long-term debt
|
16,495
|
|
16,453
|
|
—
|
|
16,453
|
|
—
|
|
|||||
Derivative liabilities
|
15,509
|
|
15,509
|
|
—
|
|
15,509
|
|
—
|
|
|||||
|
|
|
|
|
|
||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
88,139
|
|
88,139
|
|
88,139
|
|
—
|
|
—
|
|
|||||
Securities available-for-sale
|
450,083
|
|
450,083
|
|
5,720
|
|
441,828
|
|
2,535
|
|
|||||
Securities held-to-maturity
|
75,169
|
|
76,445
|
|
—
|
|
76,445
|
|
—
|
|
|||||
Other securities
|
14,352
|
|
14,352
|
|
—
|
|
14,352
|
|
—
|
|
|||||
Net loans
|
3,026,496
|
|
3,014,425
|
|
—
|
|
—
|
|
3,014,425
|
|
|||||
Accrued interest receivable
|
8,408
|
|
8,408
|
|
8,408
|
|
—
|
|
—
|
|
|||||
Derivative assets
|
15,463
|
|
15,463
|
|
—
|
|
15,463
|
|
—
|
|
|||||
|
|
|
|
|
|
||||||||||
Liabilities:
|
|
|
|
|
|
||||||||||
Deposits
|
3,231,653
|
|
3,232,970
|
|
2,190,234
|
|
1,042,736
|
|
—
|
|
|||||
Short-term debt
|
248,305
|
|
248,305
|
|
—
|
|
248,305
|
|
—
|
|
|||||
Long-term debt
|
16,495
|
|
16,455
|
|
—
|
|
16,455
|
|
—
|
|
|||||
Derivative liabilities
|
15,483
|
|
15,483
|
|
—
|
|
15,483
|
|
—
|
|
Item 2 -
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three months ended March 31,
|
|||||
|
2017
|
2016
|
||||
|
|
|
||||
Net income available to common shareholders (
in thousands
)
|
$
|
16,026
|
|
$
|
11,702
|
|
Earnings per common share, basic
|
$
|
1.04
|
|
$
|
0.78
|
|
Earnings per common share, diluted
|
$
|
1.04
|
|
$
|
0.78
|
|
ROA*
|
1.60
|
%
|
1.25
|
%
|
||
ROE*
|
13.7
|
%
|
11.2
|
%
|
||
ROATCE*
|
16.5
|
%
|
13.8
|
%
|
|
March 31,
|
December 31,
|
|
|
|||||||
|
2017
|
2016
|
$ Change
|
% Change
|
|||||||
|
|
|
|
|
|||||||
Cash and cash equivalents
|
$
|
190.8
|
|
$
|
88.1
|
|
$
|
102.7
|
|
116.6
|
%
|
Investment securities
|
552.6
|
|
539.6
|
|
13.0
|
|
2.4
|
%
|
|||
Gross loans
|
3,074.2
|
|
3,046.2
|
|
28.0
|
|
0.9
|
%
|
|||
|
|
|
|
|
|||||||
Total deposits
|
3,392.8
|
|
3,231.7
|
|
161.1
|
|
5.0
|
%
|
|||
Federal Funds purchased
|
—
|
|
64.1
|
|
(64.1
|
)
|
(100.0
|
)%
|
|||
|
|
|
|
|
|||||||
Capital surplus
|
140.3
|
|
112.9
|
|
27.4
|
|
24.3
|
%
|
Assets
|
Three months ended March 31,
|
|||||||||||||||
2017
|
2016
|
|||||||||||||||
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Loan portfolio
(1)
:
|
||||||||||||||||
Residential real estate
(2)
|
$
|
1,591,254
|
|
$
|
15,479
|
|
3.95
|
%
|
$
|
1,531,966
|
|
$
|
14,918
|
|
3.92
|
%
|
Commercial, financial, and agriculture
(2)
|
1,429,075
|
|
13,598
|
|
3.86
|
|
1,294,345
|
|
12,919
|
|
4.01
|
|
||||
Installment loans to individuals
(2),(3)
|
35,650
|
|
581
|
|
6.61
|
|
38,632
|
|
721
|
|
7.51
|
|
||||
Previously securitized loans
(4)
|
***
|
|
447
|
|
***
|
***
|
|
369
|
|
***
|
||||||
Total loans
|
3,055,979
|
|
30,105
|
|
4.00
|
|
2,864,943
|
|
28,927
|
|
4.06
|
|
||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Taxable
|
458,295
|
|
3,444
|
|
3.05
|
|
421,289
|
|
3,005
|
|
2.87
|
|
||||
Tax-exempt
(5)
|
84,784
|
|
1,019
|
|
4.87
|
|
41,898
|
|
549
|
|
5.27
|
|
||||
Total securities
|
543,079
|
|
4,463
|
|
3.33
|
|
463,187
|
|
3,554
|
|
3.09
|
|
||||
Deposits in depository institutions
|
16,826
|
|
3
|
|
0.07
|
|
10,529
|
|
—
|
|
—
|
|
||||
Total interest-earning assets
|
3,615,884
|
|
34,571
|
|
3.88
|
|
3,338,659
|
|
32,481
|
|
3.91
|
|
||||
Cash and due from banks
|
81,629
|
|
|
|
81,569
|
|
|
|
||||||||
Bank premises and equipment
|
74,768
|
|
|
|
76,945
|
|
|
|
||||||||
Other assets
|
253,378
|
|
|
|
256,329
|
|
|
|
||||||||
Less: allowance for loan losses
|
(20,150
|
)
|
|
|
(20,591
|
)
|
|
|
||||||||
Total assets
|
$
|
4,005,509
|
|
|
|
|
|
$
|
3,732,911
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest-bearing demand deposits
|
$
|
708,434
|
|
$
|
157
|
|
0.09
|
%
|
$
|
677,849
|
|
$
|
145
|
|
0.09
|
%
|
Savings deposits
|
831,639
|
|
324
|
|
0.16
|
|
767,262
|
|
228
|
|
0.12
|
|
||||
Time deposits
(2)
|
1,052,218
|
|
2,948
|
|
1.14
|
|
1,019,416
|
|
2,525
|
|
1.00
|
|
||||
Short-term borrowings
|
195,626
|
|
157
|
|
0.33
|
|
162,046
|
|
107
|
|
0.27
|
|
||||
Long-term debt
|
16,495
|
|
181
|
|
4.45
|
|
16,495
|
|
164
|
|
4.00
|
|
||||
Total interest-bearing liabilities
|
2,804,412
|
|
3,767
|
|
0.54
|
|
2,643,068
|
|
3,169
|
|
0.48
|
|
||||
Noninterest-bearing demand deposits
|
690,243
|
|
|
|
630,524
|
|
|
|
||||||||
Other liabilities
|
43,655
|
|
|
|
40,198
|
|
|
|
||||||||
Stockholders’ equity
|
467,199
|
|
|
|
419,121
|
|
|
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
4,005,509
|
|
|
|
|
|
$
|
3,732,911
|
|
|
|
|
|
||
Net interest income
|
|
|
$
|
30,804
|
|
|
|
|
|
$
|
29,312
|
|
|
|
||
Net yield on earning assets
|
|
|
|
|
3.45
|
%
|
|
|
3.53
|
%
|
|
Three months ended March 31, 2017 vs. 2016
|
||||||||
Interest-earning assets:
|
Increase (Decrease)
Due to Change In:
|
||||||||
Volume
|
Rate
|
Net
|
|||||||
|
|
|
|||||||
Loan portfolio
|
|||||||||
Residential real estate
|
$
|
573
|
|
$
|
(12
|
)
|
$
|
561
|
|
Commercial, financial, and agriculture
|
1,334
|
|
(655
|
)
|
679
|
|
|||
Installment loans to individuals
|
(55
|
)
|
(85
|
)
|
(140
|
)
|
|||
Previously securitized loans
|
—
|
|
78
|
|
78
|
|
|||
Total loans
|
1,852
|
|
(674
|
)
|
1,178
|
|
|||
Securities:
|
|
|
|
|
|
|
|||
Taxable
|
262
|
|
177
|
|
439
|
|
|||
Tax-exempt
(1)
|
557
|
|
(87
|
)
|
470
|
|
|||
Total securities
|
819
|
|
90
|
|
909
|
|
|||
Deposits in depository institutions
|
—
|
|
3
|
|
3
|
|
|||
Total interest-earning assets
|
$
|
2,671
|
|
$
|
(581
|
)
|
$
|
2,090
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|||
Interest-bearing demand deposits
|
$
|
6
|
|
$
|
6
|
|
$
|
12
|
|
Savings deposits
|
19
|
|
77
|
|
96
|
|
|||
Time deposits
|
81
|
|
342
|
|
423
|
|
|||
Short-term borrowings
|
22
|
|
28
|
|
50
|
|
|||
Long-term debt
|
—
|
|
17
|
|
17
|
|
|||
Total interest-bearing liabilities
|
$
|
128
|
|
$
|
470
|
|
$
|
598
|
|
Net Interest Income
|
$
|
2,543
|
|
$
|
(1,051
|
)
|
$
|
1,492
|
|
(1)
|
Fully federal taxable equivalent using a tax rate of approximately 35%.
|
|
Three months ended March 31,
|
|||||
|
2017
|
2016
|
||||
|
|
|
||||
Net interest income, fully taxable equivalent
|
$
|
30,804
|
|
$
|
29,312
|
|
Taxable equivalent adjustment
|
(357
|
)
|
(192
|
)
|
||
Net interest income ("GAAP")
|
$
|
30,447
|
|
$
|
29,120
|
|
|
|
|
||||
Average interest earning assets
|
$
|
3,615,884
|
|
$
|
3,338,659
|
|
Net interest margin
|
3.45
|
%
|
3.53
|
%
|
||
|
|
|
||||
Net interest income, fully taxable equivalent, excluding accretion
|
$
|
30,466
|
|
$
|
28,535
|
|
Taxable equivalent adjustment
|
(357
|
)
|
(192
|
)
|
||
Accretion related to fair value adjustments
|
338
|
|
777
|
|
||
Net interest income ("GAAP")
|
$
|
30,447
|
|
$
|
29,120
|
|
|
|
|
||||
Average interest earning assets
|
$
|
3,615,884
|
|
$
|
3,338,659
|
|
Net interest margin (excluding accretion)
|
3.42
|
%
|
3.44
|
%
|
|
March 31, 2017
|
December 31, 2016
|
March 31, 2016
|
||||||
Residential real estate
|
$
|
1,444,795
|
|
$
|
1,451,462
|
|
$
|
1,395,670
|
|
Home equity
|
139,165
|
|
141,965
|
|
142,694
|
|
|||
Commercial and industrial
|
205,011
|
|
185,667
|
|
165,549
|
|
|||
Commercial real estate
|
1,250,106
|
|
1,229,516
|
|
1,135,625
|
|
|||
Consumer
|
32,043
|
|
32,545
|
|
34,754
|
|
|||
DDA overdrafts
|
3,053
|
|
5,071
|
|
2,825
|
|
|||
Total loans
|
$
|
3,074,173
|
|
$
|
3,046,226
|
|
$
|
2,877,117
|
|
|
Three months ended March 31,
|
Year ended
December 31,
|
|||||||
2017
|
2016
|
2016
|
|||||||
Balance at beginning of period
|
$
|
19,730
|
|
$
|
19,251
|
|
$
|
19,251
|
|
Charge-offs:
|
|
|
|
|
|
|
|||
Commercial and industrial
|
(53
|
)
|
(1
|
)
|
(148
|
)
|
|||
Commercial real estate
|
(180
|
)
|
(302
|
)
|
(1,676
|
)
|
|||
Residential real estate
|
(626
|
)
|
(405
|
)
|
(1,734
|
)
|
|||
Home equity
|
(121
|
)
|
(106
|
)
|
(390
|
)
|
|||
Consumer
|
(6
|
)
|
(38
|
)
|
(126
|
)
|
|||
DDA overdrafts
|
(636
|
)
|
(318
|
)
|
(1,412
|
)
|
|||
Total charge-offs
|
(1,622
|
)
|
(1,170
|
)
|
(5,486
|
)
|
|||
Recoveries:
|
|
|
|
|
|
|
|||
Commercial and industrial
|
2
|
|
1
|
|
14
|
|
|||
Commercial real estate
|
11
|
|
384
|
|
487
|
|
|||
Residential real estate
|
25
|
|
39
|
|
187
|
|
|||
Home equity
|
—
|
|
—
|
|
—
|
|
|||
Consumer
|
11
|
|
29
|
|
118
|
|
|||
DDA overdrafts
|
371
|
|
242
|
|
764
|
|
|||
Total recoveries
|
420
|
|
695
|
|
1,570
|
|
|||
Net charge-offs
|
(1,202
|
)
|
(475
|
)
|
(3,916
|
)
|
|||
Provision for purchased credit impaired loans
|
(19
|
)
|
40
|
|
4,232
|
|
|||
Provision for loan losses
|
700
|
|
499
|
|
163
|
|
|||
Balance at end of period
|
$
|
19,209
|
|
$
|
19,315
|
|
$
|
19,730
|
|
As a Percent of Average Total Loans:
|
|
|
|
|
|
|
|||
Net charge-offs (annualized)
|
0.16
|
%
|
0.07
|
%
|
0.13
|
%
|
|||
Provision for loan losses (annualized)
|
0.09
|
%
|
0.08
|
%
|
0.15
|
%
|
|||
As a Percent of Non-Performing Loans:
|
|
|
|
||||||
Allowance for loan losses
|
167.70
|
%
|
120.40
|
%
|
140.10
|
%
|
|||
As a Percent of Total Loans:
|
|
|
|
||||||
Allowance for loan losses
|
0.62
|
%
|
0.67
|
%
|
0.65
|
%
|
|
As of March 31,
|
As of December 31,
|
|||||||
|
2017
|
2016
|
2016
|
||||||
Commercial and industrial
|
$
|
4,283
|
|
$
|
3,903
|
|
$
|
4,206
|
|
Commercial real estate
|
6,004
|
|
6,404
|
|
6,573
|
|
|||
Residential real estate
|
6,723
|
|
6,759
|
|
6,680
|
|
|||
Home equity
|
1,299
|
|
1,402
|
|
1,417
|
|
|||
Consumer
|
64
|
|
93
|
|
82
|
|
|||
DDA overdrafts
|
836
|
|
754
|
|
772
|
|
|||
Allowance for Loan Losses
|
$
|
19,209
|
|
$
|
19,315
|
|
$
|
19,730
|
|
|
As of March 31,
|
December 31,
|
|||||||
2017
|
2016
|
2016
|
|||||||
Non-accrual loans
|
$
|
11,418
|
|
$
|
15,814
|
|
$
|
13,701
|
|
Accruing loans past due 90 days or more
|
35
|
|
225
|
|
382
|
|
|||
Total non-performing loans
|
11,453
|
|
16,039
|
|
14,083
|
|
|||
Other real estate owned ("OREO")
|
4,405
|
|
6,054
|
|
4,588
|
|
|||
Total non-performing assets
|
$
|
15,858
|
|
$
|
22,093
|
|
$
|
18,671
|
|
|
|
|
|
||||||
As a Percent of Loans and Other Real Estate Owned:
|
|
|
|
||||||
Non-performing loans
|
0.52
|
%
|
0.77
|
%
|
0.61
|
%
|
|||
|
|
|
|
||||||
Past-due loans
|
$
|
6,170
|
|
$
|
8,717
|
|
$
|
8,594
|
|
|
|
|
|
||||||
As a Percentage of Total Loans
|
|
|
|
||||||
Past-due loans
|
0.20
|
%
|
0.30
|
%
|
0.28
|
%
|
|
As of March 31,
|
As of December 31,
|
|||||||
|
2017
|
2016
|
2016
|
||||||
Impaired loans with a valuation allowance
|
$
|
2,832
|
|
$
|
—
|
|
$
|
2,832
|
|
Impaired loans with no valuation allowance
|
7,405
|
|
7,235
|
|
4,749
|
|
|||
Total impaired loans
|
$
|
10,237
|
|
$
|
7,235
|
|
$
|
7,581
|
|
|
|
|
|
||||||
Allowance for loan losses allocated to impaired loans
|
$
|
636
|
|
$
|
—
|
|
$
|
665
|
|
|
As of March 31,
|
December 31,
|
|||||||
|
2017
|
2016
|
2016
|
||||||
Accruing:
|
|
|
|
||||||
Residential real estate
|
$
|
20,276
|
|
$
|
18,306
|
|
$
|
20,424
|
|
Home equity
|
3,072
|
|
2,878
|
|
3,105
|
|
|||
Commercial and industrial
|
38
|
|
54
|
|
42
|
|
|||
Commercial real estate
|
8,513
|
|
523
|
|
5,525
|
|
|||
Total accruing TDRs
|
31,899
|
|
21,761
|
|
29,096
|
|
|||
|
|
|
|
||||||
Non-Accruing:
|
|
|
|
||||||
Residential real estate
|
150
|
|
36
|
|
391
|
|
|||
Home equity
|
30
|
|
—
|
|
30
|
|
|||
Total non-accruing TDRs
|
180
|
|
36
|
|
421
|
|
|||
|
|
|
|
||||||
Total TDRs
|
$
|
32,079
|
|
$
|
21,797
|
|
$
|
29,517
|
|
|
Three months ended March 31,
|
|
|
||||||||
|
2017
|
2016
|
$ Change
|
% Change
|
|||||||
Gains on sale of investment securities
|
$
|
4.3
|
|
$
|
—
|
|
$
|
4.3
|
|
-
|
|
Non-interest income (excluding above gains)
|
14.2
|
|
13.1
|
|
1.1
|
|
8.4
|
%
|
|||
|
|
|
|
|
|||||||
Non-interest expense
|
24.6
|
|
24.1
|
|
0.5
|
|
2.1
|
%
|
Immediate Basis Point Change in Interest Rates
|
Implied Federal Funds Rate Associated with Change in Interest Rates
|
Estimated Increase (Decrease) in Net Income Over 12 Months
|
|||
March 31, 2017
|
|
|
|||
+400
|
|
5.00
|
%
|
+7.9
|
%
|
+300
|
|
4.00
|
|
+9.8
|
|
+200
|
|
3.00
|
|
+9.3
|
|
+100
|
|
2.00
|
|
+6.2
|
|
-50
|
|
0.50
|
|
-6.5
|
|
-100
|
|
(0.50
|
)
|
-11.7
|
|
|
|
|
|||
December 31, 2016
|
|
|
|
|
|
+400
|
|
4.75
|
%
|
+8.0
|
%
|
+300
|
|
3.75
|
|
+9.9
|
|
+200
|
|
2.75
|
|
+9.7
|
|
+100
|
|
1.75
|
|
+6.2
|
|
-50
|
|
0.25
|
|
-6.1
|
|
-100
|
|
(0.25
|
)
|
-9.5
|
|
Item 3 -
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4 -
|
Controls and Procedures
|
Part II -
|
OTHER INFORMATION
|
Item 1.
|
Legal Proceedings
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
Total Number
|
Maximum Number
|
|||||
|
|
|
of Shares Issued
|
of Shares that May
|
|||||
|
|
Average Price
|
as Part of Publicly
|
Yet Be Issued
|
|||||
|
Total Number of
|
Received per
|
Announced Plans
|
Under the Plans
|
|||||
Period
|
Shares Issued
|
Share*
|
or Programs
|
or Programs**
|
|||||
|
|
|
|
|
|||||
January 1 - January 31, 2017
|
153,744
|
|
$
|
64.93
|
|
153,744
|
|
548,000
|
|
February 1 - February 29, 2017
|
286,860
|
|
$
|
64.23
|
|
286,680
|
|
262,000
|
|
March 1 - March 31, 2017
|
—
|
|
$
|
—
|
|
—
|
|
262,000
|
|
* The common share issue price is presented net of commissions and excludes one time offering costs of approximately $265,000.
|
|||||||||
** Estimate based on average price per share received to date, before broker fees.
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
|
City Holding Company
|
|
|
(Registrant)
|
|
|
|
|
|
/s/ Charles R. Hageboeck
|
|
|
Charles R. Hageboeck
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ David L. Bumgarner
|
|
|
David L. Bumgarner
|
|
|
Senior Vice President, Chief Financial Officer and Principal Accounting Officer
|
|
|
(Principal Financial Officer)
|
|
|
2(a)
|
Agreement and Plan of Merger,
dated November 14, 2011, by and among Virginia Savings Bancorp, Inc., Virginia Savings Bank, F.S.B., City Holding Company and City National Bank of West Virginia (attached to, and incorporated by reference from, City Holding Company’s Form 8-K dated November 14, 2011, and filed with the Securities and Exchange Commission on November 14, 2011).
|
|
|
2(b)
|
Agreement and Plan of Merger,
dated August 2, 2012, by and among Community Financial Corporation, Community Bank, City Holding Company and City National Bank of West Virginia (attached to, and incorporated by reference from City Holding Company’s Form 8-K dated August 7, 2012, and filed with the Securities and Exchange Commission on August 7, 2012).
|
|
|
3(a)
|
Articles of Incorporation of City Holding Company
(attached to, and incorporated by reference from, Amendment No. 1 to City Holding Company’s Registration Statement on Form S-4, Registration No. 2-86250, filed November 4, 1983 with the Securities and Exchange Commission).
|
|
|
3(b)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company
, dated March 6, 1984 (attached to, and incorporated by reference from, City Holding Company's Form 8-K Report dated March 7, 1984, and filed with the Securities and Exchange Commission on March 22, 1984).
|
|
|
3(c)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company
, dated March 4, 1986 (attached to, and incorporated by reference from, City Holding Company's Form 10-K Annual Report for the year ended December 31, 1986, filed March 31, 1987 with the Securities and Exchange Commission).
|
|
|
3(d)
|
Articles of Amendment to the Articles of Incorporation of City Holding Company
, dated September 29, 1987 (attached to and incorporated by reference from, City Holding Company's Registration Statement on Form S-4, Registration No. 33-23295, filed with the Securities and Exchange Commission on August 3, 1988).
|
/s/ Charles R. Hageboeck
|
5/3/2017
|
Charles R. Hageboeck
|
Date
|
President and Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2017
of City Holding Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such 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
|
(a)
|
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.
|
|
/s/ Charles R. Hageboeck
|
|
|
Charles R. Hageboeck
|
|
|
President and Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended
March 31, 2017
of City Holding Company;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or such 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
|
(a)
|
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.
|
|
/s/ David L. Bumgarner
|
|
|
David L. Bumgarner
|
|
|
Senior Vice President and Chief Financial Officer
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Charles R. Hageboeck
|
|
|
Charles R. Hageboeck
|
|
|
President and Chief Executive Officer
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ David L. Bumgarner
|
|
|
David L. Bumgarner
|
|
|
Senior Vice President and Chief Financial Officer
|
|