☒
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Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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☐
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Pennsylvania
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25-1450605
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of Class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, no par value
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CCNE
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The NASDAQ Stock Market LLC
(NASDAQ Global Select Market) |
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Large Accelerated Filer
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☐
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Accelerated Filer
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☒
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page Number
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PART I.
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PART II.
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PART III.
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PART IV.
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•
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revise minimum capital requirements and adjust prompt corrective action thresholds;
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•
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revise the components of regulatory capital, including adding a new minimum common equity Tier 1 capital ratio of 4.5% of risk-weighted assets and increasing the minimum Tier 1 capital ratio requirement from 4% to 6%;
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•
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retain the existing risk-based capital treatment for 1-4 family residential mortgage exposures;
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•
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permit most banking organizations to retain, through a one-time permanent election, the existing capital treatment for accumulated other comprehensive income;
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•
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implement the capital conservation buffer beginning January 1, 2016, which was phased in incrementally until it reached 2.5% of risk-weighted assets, in addition to the minimum common equity Tier 1, Tier 1 and total capital ratios, on January 1, 2019;
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•
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require a minimum leverage ratio of 4%;
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•
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require a total capital ratio of 8%;
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•
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increase capital requirements for past-due loans, high volatility commercial real estate exposures, and certain short-term loan commitments;
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•
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require the deduction of mortgage servicing assets and deferred tax assets that exceed 10% of common equity Tier 1 capital in each category and 15% of common equity Tier 1 capital in the aggregate; and
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•
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remove references to credit ratings consistent with the Dodd-Frank Act and establish due diligence requirements for securitization exposures.
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•
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Truth-In-Lending Act, which governs disclosures of credit terms to consumer borrowers;
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•
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Truth-in-Savings Act, which governs disclosures of the terms of deposit accounts to consumers;
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•
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Home Mortgage Disclosure Act, requiring financial institutions to provide information to regulators to enable determinations as to whether financial institutions are fulfilling their obligations to meet the home lending needs of the communities they serve and not discriminating in their lending practices;
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•
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Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, sex or other prohibited factors in extending credit;
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•
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Real Estate Settlement Procedures Act, which imposes requirements relating to real estate settlements, including requiring lenders to disclose certain information regarding the nature and cost of real estate settlement services;
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•
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Fair Credit Reporting Act, covering numerous areas relating to certain types of consumer information and identity theft;
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•
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Privacy provisions of the Gramm-Leach-Bliley Act and related regulations, which require that financial institutions provide privacy policies to consumers, to allow customers to “opt out" of certain sharing of their nonpublic personal information, and to safeguard sensitive and confidential customer information;
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•
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Electronic Funds Transfer Act, which is a consumer protection law regarding electronic fund transfers; and
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•
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Numerous other federal and state laws and regulations, including those related to consumer protection and bank operations.
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•
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The Corporation’s and the Bank’s ability to borrow from other financial institutions or to access the debt or equity capital markets on favorable terms or at all could be adversely affected by further disruptions in the capital markets or other events, including actions by rating agencies and deteriorating investor expectations.
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•
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The Corporation faces increased regulation of the banking and financial services industry. Compliance with such regulation may increase its costs and limit its ability to pursue business opportunities.
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•
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Market developments may affect customer confidence levels and may cause increases in loan delinquencies and default rates, which management expects would adversely impact the Bank’s charge-offs and provision for loan losses.
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•
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Market developments may adversely affect the Bank’s securities portfolio by causing other-than-temporary-impairments, prompting write-downs and securities losses.
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•
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Competition in banking and financial services industry could intensify as a result of the consolidation of financial services companies in connection with current market conditions.
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•
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past and future dividend practice;
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•
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financial condition, performance, creditworthiness and prospects;
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•
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quarterly variations in the Corporation’s operating results or the quality of the Corporation’s assets;
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•
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operating results that vary from the expectations of management, securities analysts and investors;
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•
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changes in expectations as to the Corporation’s future financial performance;
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•
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announcements of innovations, new products, strategic developments, significant contracts, acquisitions and other material events by the Corporation or its competitors;
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•
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the operating and securities price performance of other companies that investors believe are comparable to the Corporation;
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•
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future sales of the Corporation’s equity or equity-related securities;
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•
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the credit, mortgage and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally; and
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•
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instability in global financial markets and global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility, budget deficits or sovereign debt level concerns and other geopolitical, regulatory or judicial events.
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Period
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Total Number
of Shares Purchased |
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Average Price
Paid per Share |
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Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
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Maximum Number (or approximate dollar value) of Shares that May
Yet Be Purchased Under the Plans or Programs |
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October 1 – 31, 2019
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0
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$
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0
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0
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249,731
|
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(1)
|
November 1 – 30, 2019
|
0
|
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$
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0
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0
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249,731
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(1)
|
December 1 – 31, 2019
|
0
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$
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0
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0
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249,731
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(1)
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(1)
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The Corporation’s stock repurchase program, which was announced on November 12, 2014, authorizes the repurchase of up to 500,000 shares of common stock. The program will remain in effect until fully utilized or until modified, suspended or terminated. As of December 31, 2019, there were 249,731 shares remaining for repurchase under the program.
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Period Ending
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|||||||||||
Index
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12/31/14
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12/31/15
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12/31/16
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12/31/17
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12/31/18
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12/31/19
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CNB Financial Corporation
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100.00
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101.22
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155.27
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156.50
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140.13
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204.48
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NASDAQ Composite
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100.00
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106.96
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116.45
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150.96
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146.67
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200.49
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SNL Bank NASDAQ
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100.00
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107.95
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149.68
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157.58
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132.82
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166.75
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Year ended December 31,
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||||||||||||||||||
(Dollars in thousands, except per share data)
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2019
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2018
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2017
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2016
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2015
|
||||||||||
INTEREST AND DIVIDEND INCOME:
|
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Loans including fees
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$
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139,867
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$
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118,193
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$
|
97,005
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$
|
81,209
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$
|
71,814
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Securities:
|
|
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Taxable
|
12,472
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9,921
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8,165
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9,134
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10,977
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Tax-exempt
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2,372
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2,739
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2,983
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3,390
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3,778
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Dividends
|
1,017
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1,017
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|
721
|
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|
582
|
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|
609
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|||||
Total interest and dividend income
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155,728
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131,870
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108,874
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94,315
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87,178
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INTEREST EXPENSE:
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Deposits
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30,202
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17,228
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9,312
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8,470
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8,498
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Borrowed funds
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5,349
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5,856
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4,021
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2,981
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3,222
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Subordinated debentures
|
3,979
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3,866
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4,032
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1,577
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|
751
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|||||
Total interest expense
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39,530
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26,950
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17,365
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13,028
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|
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12,471
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|||||
NET INTEREST INCOME
|
116,198
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104,920
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91,509
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|
81,287
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74,707
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|||||
PROVISION FOR LOAN LOSSES
|
6,024
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6,072
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6,655
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4,149
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|
|
2,560
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|||||
Net interest income after provision for loan losses
|
110,174
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|
|
98,848
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84,854
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77,138
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72,147
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|||||
NON-INTEREST INCOME
|
25,975
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20,723
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21,435
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17,691
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|
|
17,094
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NON-INTEREST EXPENSES
|
87,508
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79,342
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70,037
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67,118
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|
58,752
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INCOME BEFORE INCOME TAXES
|
48,641
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40,229
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36,252
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27,711
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30,489
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INCOME TAX EXPENSE
|
8,560
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6,510
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12,392
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|
|
7,171
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|
|
8,292
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|||||
NET INCOME
|
$
|
40,081
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$
|
33,719
|
|
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$
|
23,860
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$
|
20,540
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|
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$
|
22,197
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PER SHARE DATA:
|
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|
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|
||||||||||
Basic
|
$
|
2.63
|
|
|
$
|
2.21
|
|
|
$
|
1.57
|
|
|
$
|
1.42
|
|
|
$
|
1.54
|
|
Fully diluted
|
2.63
|
|
|
2.21
|
|
|
1.57
|
|
|
1.42
|
|
|
1.54
|
|
|||||
Dividends declared
|
0.68
|
|
|
0.67
|
|
|
0.66
|
|
|
0.66
|
|
|
0.66
|
|
|||||
Book value per share at year end
|
20.00
|
|
|
17.28
|
|
|
15.98
|
|
|
14.64
|
|
|
14.01
|
|
|||||
AT END OF PERIOD:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
3,763,659
|
|
|
$
|
3,221,521
|
|
|
$
|
2,768,773
|
|
|
$
|
2,573,821
|
|
|
$
|
2,285,136
|
|
Securities
|
552,122
|
|
|
524,649
|
|
|
416,859
|
|
|
500,693
|
|
|
550,619
|
|
|||||
Loans, net of unearned discount
|
2,804,035
|
|
|
2,474,557
|
|
|
2,145,959
|
|
|
1,873,536
|
|
|
1,577,798
|
|
|||||
Allowance for loan losses
|
19,473
|
|
|
19,704
|
|
|
19,693
|
|
|
16,330
|
|
|
16,737
|
|
|||||
Deposits
|
3,102,327
|
|
|
2,610,786
|
|
|
2,167,815
|
|
|
2,017,522
|
|
|
1,815,053
|
|
|||||
FHLB and other borrowings
|
227,907
|
|
|
245,117
|
|
|
257,359
|
|
|
237,004
|
|
|
220,515
|
|
|||||
Subordinated debentures
|
70,620
|
|
|
70,620
|
|
|
70,620
|
|
|
70,620
|
|
|
20,620
|
|
|||||
Deposits held for sale
|
0
|
|
|
0
|
|
|
0
|
|
|
6,456
|
|
|
0
|
|
|||||
Shareholders’ equity
|
304,966
|
|
|
262,830
|
|
|
243,910
|
|
|
211,784
|
|
|
201,913
|
|
|||||
KEY RATIOS:
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
1.17
|
%
|
|
1.12
|
%
|
|
0.89
|
%
|
|
0.85
|
%
|
|
0.99
|
%
|
|||||
Return on average equity
|
14.05
|
%
|
|
13.46
|
%
|
|
9.97
|
%
|
|
9.69
|
%
|
|
11.23
|
%
|
|||||
Loan to deposit ratio
|
90.38
|
%
|
|
94.78
|
%
|
|
98.99
|
%
|
|
92.86
|
%
|
|
86.93
|
%
|
|||||
Dividend payout ratio
|
25.82
|
%
|
|
30.35
|
%
|
|
42.31
|
%
|
|
46.48
|
%
|
|
42.86
|
%
|
|||||
Average equity to average assets ratio
|
8.36
|
%
|
|
8.33
|
%
|
|
8.93
|
%
|
|
8.76
|
%
|
|
8.86
|
%
|
|
2019
Balance |
|
$ Change
vs. prior year |
|
% Change
vs. prior year |
|
2018
Balance |
|
$ Change
vs. prior year |
|
% Change
vs. prior year |
|
2017
Balance |
||||||||||||
Total assets
|
$
|
3,763.7
|
|
|
$
|
542.1
|
|
|
16.8
|
%
|
|
$
|
3,221.5
|
|
|
$
|
452.7
|
|
|
16.4
|
%
|
|
$
|
2,768.8
|
|
Total loans, net
|
2,784.6
|
|
|
329.7
|
|
|
13.4
|
%
|
|
2,454.9
|
|
|
328.6
|
|
|
15.5
|
%
|
|
2,126.3
|
|
|||||
Total securities
|
552.1
|
|
|
107.7
|
|
|
25.8
|
%
|
|
524.6
|
|
|
107.8
|
|
|
25.9
|
%
|
|
416.9
|
|
|||||
Total deposits
|
3,102.3
|
|
|
491.5
|
|
|
18.8
|
%
|
|
2,610.8
|
|
|
443.0
|
|
|
20.4
|
%
|
|
2,167.8
|
|
|||||
Total shareholders’ equity
|
305.0
|
|
|
42.1
|
|
|
7.7
|
%
|
|
262.8
|
|
|
18.9
|
|
|
7.8
|
%
|
|
243.9
|
|
|
12/31/2019
|
|
12/31/2018
|
|
12/31/2017
|
|||||||||||||||||||||
|
Average
Balance |
Annual
Rate |
Interest
Inc./ Exp. |
|
Average
Balance |
Annual
Rate |
Interest
Inc./ Exp. |
|
Average
Balance |
Annual
Rate |
Interest
Inc./ Exp. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable (1)
|
$
|
436,122
|
|
2.77
|
%
|
$
|
11,973
|
|
|
$
|
365,790
|
|
2.62
|
%
|
$
|
9,733
|
|
|
$
|
318,481
|
|
2.58
|
%
|
$
|
8,130
|
|
Tax-Exempt (1, 2)
|
85,802
|
|
3.40
|
%
|
2,867
|
|
|
97,412
|
|
3.42
|
%
|
3,326
|
|
|
109,630
|
|
4.18
|
%
|
4,493
|
|
||||||
Equity Securities (1, 2)
|
18,203
|
|
6.17
|
%
|
1,123
|
|
|
19,133
|
|
5.89
|
%
|
1,170
|
|
|
13,111
|
|
7.44
|
%
|
976
|
|
||||||
Total Securities
|
540,127
|
|
2.99
|
%
|
15,963
|
|
|
482,335
|
|
2.91
|
%
|
14,229
|
|
|
441,222
|
|
3.10
|
%
|
13,599
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial (2)
|
987,974
|
|
5.35
|
%
|
52,868
|
|
|
820,547
|
|
4.98
|
%
|
40,846
|
|
|
645,357
|
|
4.93
|
%
|
31,844
|
|
||||||
Mortgage (2)
|
1,539,208
|
|
5.04
|
%
|
77,501
|
|
|
1,422,021
|
|
4.88
|
%
|
69,338
|
|
|
1,296,548
|
|
4.54
|
%
|
58,899
|
|
||||||
Consumer
|
102,928
|
|
10.08
|
%
|
10,373
|
|
|
85,776
|
|
10.16
|
%
|
8,717
|
|
|
81,383
|
|
9.42
|
%
|
7,668
|
|
||||||
Total Loans (3)
|
2,630,110
|
|
5.35
|
%
|
140,742
|
|
|
2,328,344
|
|
5.11
|
%
|
118,901
|
|
|
2,023,288
|
|
4.86
|
%
|
98,411
|
|
||||||
Other Earning Assets
|
24,674
|
|
2.02
|
%
|
499
|
|
|
4,536
|
|
4.14
|
%
|
188
|
|
|
1,983
|
|
1.77
|
%
|
35
|
|
||||||
Total earning assets
|
3,194,911
|
|
4.93
|
%
|
$
|
157,204
|
|
|
2,815,215
|
|
4.73
|
%
|
$
|
133,318
|
|
|
2,466,493
|
|
4.55
|
%
|
$
|
112,045
|
|
|||
Non-Interest Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash & Due From Banks
|
33,218
|
|
|
|
|
31,498
|
|
|
|
|
26,221
|
|
|
|
||||||||||||
Premises, Equipment and Right of Use Assets
|
68,744
|
|
|
|
|
49,985
|
|
|
|
|
50,377
|
|
|
|
||||||||||||
Other Assets
|
137,519
|
|
|
|
|
133,115
|
|
|
|
|
151,913
|
|
|
|
||||||||||||
Allowance for Loan Losses
|
(20,655
|
)
|
|
|
|
(21,511
|
)
|
|
|
|
(17,473
|
)
|
|
|
||||||||||||
Total Non-Interest Earning Assets
|
218,826
|
|
|
|
|
193,087
|
|
|
|
|
211,038
|
|
|
|
||||||||||||
Total Assets
|
$
|
3,413,737
|
|
|
|
|
$
|
3,008,302
|
|
|
|
|
$
|
2,677,531
|
|
|
|
|||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest Bearing Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand – interest bearing
|
$
|
580,244
|
|
0.42
|
%
|
$
|
2,455
|
|
|
$
|
582,289
|
|
0.38
|
%
|
$
|
2,209
|
|
|
$
|
550,922
|
|
0.36
|
%
|
$
|
1,976
|
|
Savings
|
1,450,653
|
|
1.39
|
%
|
20,138
|
|
|
1,077,210
|
|
0.85
|
%
|
9,184
|
|
|
953,960
|
|
0.49
|
%
|
4,643
|
|
||||||
Time
|
371,464
|
|
2.05
|
%
|
7,609
|
|
|
383,531
|
|
1.52
|
%
|
5,835
|
|
|
252,176
|
|
1.07
|
%
|
2,693
|
|
||||||
Total interest bearing deposits
|
2,402,361
|
|
1.26
|
%
|
30,202
|
|
|
2,043,030
|
|
0.84
|
%
|
17,228
|
|
|
1,757,058
|
|
0.53
|
%
|
9,312
|
|
||||||
Short-term borrowings
|
16,022
|
|
2.65
|
%
|
425
|
|
|
37,363
|
|
1.91
|
%
|
713
|
|
|
122,758
|
|
1.09
|
%
|
1,344
|
|
||||||
Long-term borrowings
|
229,377
|
|
2.15
|
%
|
4,924
|
|
|
250,242
|
|
2.06
|
%
|
5,143
|
|
|
158,782
|
|
1.69
|
%
|
2,677
|
|
||||||
Subordinated Debentures
|
70,620
|
|
5.63
|
%
|
3,979
|
|
|
70,620
|
|
5.47
|
%
|
3,866
|
|
|
70,620
|
|
5.71
|
%
|
4,032
|
|
||||||
Total interest bearing liabilities
|
2,718,380
|
|
1.45
|
%
|
$
|
39,530
|
|
|
2,401,255
|
|
1.12
|
%
|
$
|
26,950
|
|
|
2,109,218
|
|
0.82
|
%
|
$
|
17,365
|
|
|||
Demand – non-interest bearing
|
360,208
|
|
|
|
|
327,014
|
|
|
|
|
300,942
|
|
|
|
||||||||||||
Other liabilities
|
49,825
|
|
|
|
|
29,537
|
|
|
|
|
28,148
|
|
|
|
||||||||||||
Total Liabilities
|
3,128,413
|
|
|
|
|
2,757,806
|
|
|
|
|
2,438,308
|
|
|
|
||||||||||||
Shareholders’ Equity
|
285,324
|
|
|
|
|
250,496
|
|
|
|
|
239,223
|
|
|
|
||||||||||||
Total Liabilities and Shareholders’ Equity
|
$
|
3,413,737
|
|
|
|
|
$
|
3,008,302
|
|
|
|
|
$
|
2,677,531
|
|
|
|
|||||||||
Interest Income/Earning Assets
|
|
4.93
|
%
|
$
|
157,204
|
|
|
|
4.73
|
%
|
$
|
133,318
|
|
|
|
4.55
|
%
|
$
|
112,045
|
|
||||||
Interest Expense/Interest Bearing Liabilities
|
|
1.45
|
%
|
39,530
|
|
|
|
1.12
|
%
|
26,950
|
|
|
|
0.82
|
%
|
17,365
|
|
|||||||||
Net Interest Spread
|
|
3.48
|
%
|
$
|
117,674
|
|
|
|
3.61
|
%
|
$
|
106,368
|
|
|
|
3.73
|
%
|
$
|
94,680
|
|
||||||
Interest Income/Earning Assets
|
|
4.93
|
%
|
$
|
157,204
|
|
|
|
4.73
|
%
|
$
|
133,318
|
|
|
|
4.55
|
%
|
$
|
112,045
|
|
||||||
Interest Expense/Earning Assets
|
|
1.24
|
%
|
39,530
|
|
|
|
0.96
|
%
|
26,950
|
|
|
|
0.70
|
%
|
17,365
|
|
|||||||||
Net Interest Margin
|
|
3.69
|
%
|
$
|
117,674
|
|
|
|
3.77
|
%
|
$
|
106,368
|
|
|
|
3.85
|
%
|
$
|
94,680
|
|
1.
|
Includes unamortized discounts and premiums. Average balance is computed using the amortized cost of securities. The average yield has been computed using the historical amortized cost average balance for available for sale securities.
|
2.
|
Average yields and interest income are stated on a fully taxable equivalent basis using the Corporation’s marginal federal income tax rate of 21% for the years end December 31, 2019, 2018 and 2017. Interest income has been increased by $1,476, $1,448, and $3,171 for the years ended December 31, 2019, 2018, and 2017, respectively, as a result of the effect of tax-exempt interest and dividends earned by the Corporation.
|
3.
|
Average balance outstanding includes the average balance outstanding of all nonaccrual loans. Loans consist of the average of total loans less average unearned income. Included in loan interest income is loan fees of $4,048, $3,935, and $3,321 for the years ended December 31, 2019, 2018, and 2017, respectively.
|
Net Interest Income Rate-Volume Variance
|
For Twelve Months Ended December 31, 2019 over (under) 2018 Due to Change In (1)
|
|
For Twelve Months Ended December 31, 2018 over (under) 2017 Due to Change In (1)
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Taxable
|
$
|
1,586
|
|
|
$
|
654
|
|
|
$
|
2,240
|
|
|
$
|
1,457
|
|
|
$
|
146
|
|
|
$
|
1,603
|
|
Tax-Exempt (2)
|
(442
|
)
|
|
(17
|
)
|
|
(459
|
)
|
|
(427
|
)
|
|
(740
|
)
|
|
(1,167
|
)
|
||||||
Equity Securities (2)
|
(98
|
)
|
|
51
|
|
|
(47
|
)
|
|
491
|
|
|
(297
|
)
|
|
194
|
|
||||||
Total Securities
|
1,046
|
|
|
688
|
|
|
1,734
|
|
|
1,521
|
|
|
(891
|
)
|
|
630
|
|
||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial (2)
|
8,366
|
|
|
3,656
|
|
|
12,022
|
|
|
8,592
|
|
|
410
|
|
|
9,002
|
|
||||||
Mortgage (2)
|
5,700
|
|
|
2,463
|
|
|
8,163
|
|
|
5,604
|
|
|
4,835
|
|
|
10,439
|
|
||||||
Consumer
|
1,738
|
|
|
(82
|
)
|
|
1,656
|
|
|
414
|
|
|
635
|
|
|
1,049
|
|
||||||
Total Loans
|
15,804
|
|
|
6,037
|
|
|
21,841
|
|
|
14,610
|
|
|
5,880
|
|
|
20,490
|
|
||||||
Other Earning Assets
|
834
|
|
|
(523
|
)
|
|
311
|
|
|
45
|
|
|
108
|
|
|
153
|
|
||||||
Total Earning Assets
|
$
|
17,684
|
|
|
$
|
6,202
|
|
|
$
|
23,886
|
|
|
$
|
16,176
|
|
|
$
|
5,097
|
|
|
$
|
21,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest Bearing Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand – Interest Bearing
|
$
|
(8
|
)
|
|
$
|
254
|
|
|
$
|
246
|
|
|
$
|
120
|
|
|
$
|
113
|
|
|
$
|
233
|
|
Savings
|
3,184
|
|
|
7,770
|
|
|
10,954
|
|
|
635
|
|
|
3,906
|
|
|
4,541
|
|
||||||
Time
|
(184
|
)
|
|
1,958
|
|
|
1,774
|
|
|
1,411
|
|
|
1,731
|
|
|
3,142
|
|
||||||
Total Interest Bearing Deposits
|
2,992
|
|
|
9,982
|
|
|
12,974
|
|
|
2,166
|
|
|
5,750
|
|
|
7,916
|
|
||||||
Short-Term Borrowings
|
(407
|
)
|
|
119
|
|
|
(288
|
)
|
|
(937
|
)
|
|
306
|
|
|
(631
|
)
|
||||||
Long-Term Borrowings
|
(429
|
)
|
|
210
|
|
|
(219
|
)
|
|
1,552
|
|
|
914
|
|
|
2,466
|
|
||||||
Subordinated Debentures
|
0
|
|
|
113
|
|
|
113
|
|
|
0
|
|
|
(166
|
)
|
|
(166
|
)
|
||||||
Total Interest Bearing Liabilities
|
$
|
2,156
|
|
|
$
|
10,424
|
|
|
$
|
12,580
|
|
|
$
|
2,781
|
|
|
$
|
6,804
|
|
|
$
|
9,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in Net Interest Income
|
$
|
15,528
|
|
|
$
|
(4,222
|
)
|
|
$
|
11,306
|
|
|
$
|
13,395
|
|
|
$
|
(1,707
|
)
|
|
$
|
11,688
|
|
1.
|
The change in interest due to both volume and rate have been allocated entirely to volume changes.
|
2.
|
Changes in interest income on tax-exempt securities and loans are presented on a fully taxable-equivalent basis, using the Corporation’s marginal federal income tax rate of 21% for the year ended December 31, 2019 and December 31, 2018.
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||||||||||||||||||||||||||
|
Amortized
|
|
Unrealized
|
|
Market
|
|
Amortized
|
|
Unrealized
|
|
Market
|
|
Amortized
|
|
Unrealized
|
|
Market
|
|||||||||||||||||||||||||||
|
Cost
|
Gains
|
Losses
|
|
Value
|
Cost
|
Gains
|
Losses
|
|
Value
|
Cost
|
Gains
|
Losses
|
|
Value
|
|||||||||||||||||||||||||||||
Securities Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
U.S. Government Sponsored Entities
|
$
|
124,189
|
|
|
$
|
2,924
|
|
$
|
(19
|
)
|
|
$
|
127,094
|
|
|
$
|
134,010
|
|
|
$
|
254
|
|
$
|
(1,570
|
)
|
|
$
|
132,694
|
|
|
$
|
108,578
|
|
|
$
|
478
|
|
$
|
(908
|
)
|
|
$
|
108,148
|
|
State and Political Subdivisions
|
101,177
|
|
|
3,288
|
|
(102
|
)
|
|
104,363
|
|
|
134,662
|
|
|
1,942
|
|
(573
|
)
|
|
136,031
|
|
|
134,428
|
|
|
3,609
|
|
(314
|
)
|
|
137,723
|
|
||||||||||||
Residential and multi-family mortgage
|
273,404
|
|
|
4,117
|
|
(885
|
)
|
|
276,636
|
|
|
209,126
|
|
|
500
|
|
(3,573
|
)
|
|
206,053
|
|
|
111,214
|
|
|
304
|
|
(1,882
|
)
|
|
109,636
|
|
||||||||||||
Corporate notes and bonds
|
8,350
|
|
|
14
|
|
(282
|
)
|
|
8,082
|
|
|
12,356
|
|
|
22
|
|
(601
|
)
|
|
11,777
|
|
|
17,610
|
|
|
52
|
|
(462
|
)
|
|
17,200
|
|
||||||||||||
Pooled SBA
|
25,063
|
|
|
274
|
|
(163
|
)
|
|
25,174
|
|
|
30,163
|
|
|
135
|
|
(924
|
)
|
|
29,374
|
|
|
36,260
|
|
|
355
|
|
(575
|
)
|
|
36,040
|
|
||||||||||||
Other
|
1,020
|
|
|
0
|
|
(56
|
)
|
|
964
|
|
|
1,020
|
|
|
0
|
|
(86
|
)
|
|
934
|
|
|
1,020
|
|
|
0
|
|
(58
|
)
|
|
962
|
|
||||||||||||
|
$
|
533,203
|
|
|
$
|
10,617
|
|
$
|
(1,507
|
)
|
|
$
|
542,313
|
|
|
$
|
521,337
|
|
|
$
|
2,853
|
|
$
|
(7,327
|
)
|
|
$
|
516,863
|
|
|
$
|
409,110
|
|
|
$
|
4,798
|
|
$
|
(4,199
|
)
|
|
$
|
409,709
|
|
|
Within
One Year
|
|
After One But Within
Five Years
|
|
After Five But
Within Ten
Years
|
|
After Ten
Years
|
|
Pooled SBA,
Residential and Multi-
Family Mortgage and
Commercial Mortgage
|
|||||||||||||||||||||||||
|
$ Amt.
|
|
Yield (1)
|
|
$ Amt.
|
|
Yield (1)
|
|
$ Amt.
|
|
Yield (1)
|
|
$ Amt.
|
|
Yield (1)
|
|
$ Amt.
|
|
Yield (1)
|
|||||||||||||||
Securities Available for Sale (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Government Sponsored Entities
|
$
|
22,060
|
|
|
1.77
|
%
|
|
$
|
73,084
|
|
|
2.32
|
%
|
|
$
|
31,949
|
|
|
2.95
|
%
|
|
|
|
|
|
|
|
|
||||||
State and Political Subdivisions
|
33,053
|
|
|
4.36
|
%
|
|
30,989
|
|
|
3.39
|
%
|
|
36,024
|
|
|
3.98
|
%
|
|
$
|
4,297
|
|
|
4.21
|
%
|
|
|
|
|
||||||
Corporate notes and bonds
|
4,718
|
|
|
2.95
|
%
|
|
2,011
|
|
|
3.41
|
%
|
|
1,254
|
|
|
5.90
|
%
|
|
100
|
|
|
5.89
|
%
|
|
|
|
|
|||||||
Pooled SBA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
25,174
|
|
|
2.70
|
%
|
||||||||||||
Residential and multi-family mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
276,636
|
|
|
2.46
|
%
|
|||||||||||||
Other
|
|
|
|
|
|
|
|
|
964
|
|
|
2.34
|
%
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$
|
59,831
|
|
|
3.29
|
%
|
|
$
|
106,084
|
|
|
2.65
|
%
|
|
$
|
70,191
|
|
|
3.52
|
%
|
|
$
|
4,397
|
|
|
4.25
|
%
|
|
$
|
301,810
|
|
|
2.48
|
%
|
(1)
|
The weighted average yields are based on market value and effective yields weighted for the scheduled maturity with tax-exempt securities adjusted to a taxable-equivalent basis using a tax rate of 21%.
|
(2)
|
The portfolio contains no holdings of a single issuer that exceeds 10% of shareholders’ equity other than the US Treasury and governmental sponsored entities.
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Commercial, industrial and agricultural
|
$
|
1,046,665
|
|
|
$
|
916,297
|
|
|
$
|
704,606
|
|
|
$
|
567,800
|
|
|
$
|
475,364
|
|
Commercial mortgages
|
814,002
|
|
|
697,776
|
|
|
644,597
|
|
|
574,826
|
|
|
448,179
|
|
|||||
Residential real estate
|
814,030
|
|
|
771,309
|
|
|
713,347
|
|
|
652,883
|
|
|
574,225
|
|
|||||
Consumer
|
124,785
|
|
|
86,035
|
|
|
80,193
|
|
|
74,816
|
|
|
78,345
|
|
|||||
Credit cards
|
7,569
|
|
|
7,623
|
|
|
6,753
|
|
|
6,046
|
|
|
5,201
|
|
|||||
Overdrafts
|
2,146
|
|
|
308
|
|
|
352
|
|
|
595
|
|
|
1,040
|
|
|||||
Gross loans
|
2,809,197
|
|
|
2,479,348
|
|
|
2,149,848
|
|
|
1,876,966
|
|
|
1,582,354
|
|
|||||
Less: unearned income
|
5,162
|
|
|
4,791
|
|
|
3,889
|
|
|
3,430
|
|
|
4,556
|
|
|||||
Total loans net of unearned
|
$
|
2,804,035
|
|
|
$
|
2,474,557
|
|
|
$
|
2,145,959
|
|
|
$
|
1,873,536
|
|
|
$
|
1,577,798
|
|
|
December 31, 2019
|
||||||||||||||
|
One Year
or Less
|
|
One Through
Five Years
|
|
Over
Five Years
|
|
Total Gross
Loans
|
||||||||
Commercial, industrial and agricultural
|
|
|
|
|
|
|
|
||||||||
Loans With Fixed Interest Rate
|
$
|
29,055
|
|
|
$
|
99,040
|
|
|
$
|
131,110
|
|
|
$
|
259,205
|
|
Loans With Variable or Floating Interest Rates
|
239,030
|
|
|
82,506
|
|
|
465,924
|
|
|
787,460
|
|
||||
|
$
|
268,085
|
|
|
$
|
181,546
|
|
|
$
|
597,034
|
|
|
$
|
1,046,665
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgages and residential real estate
|
|
|
|
|
|
|
|
||||||||
Loans With Fixed Interest Rate
|
$
|
25,024
|
|
|
$
|
105,679
|
|
|
$
|
416,807
|
|
|
$
|
547,510
|
|
Loans With Variable or Floating Interest Rates
|
84,320
|
|
|
181,778
|
|
|
814,424
|
|
|
1,080,522
|
|
||||
|
$
|
109,344
|
|
|
$
|
287,457
|
|
|
$
|
1,231,231
|
|
|
$
|
1,628,032
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer
|
|
|
|
|
|
|
|
||||||||
Loans With Fixed Interest Rate
|
$
|
4,693
|
|
|
$
|
52,775
|
|
|
$
|
14,914
|
|
|
$
|
72,382
|
|
Loans With Variable or Floating Interest Rates
|
2,032
|
|
|
30,540
|
|
|
19,831
|
|
|
52,403
|
|
||||
|
$
|
6,725
|
|
|
$
|
83,315
|
|
|
$
|
34,745
|
|
|
$
|
124,785
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Nonaccrual loans
|
$
|
21,736
|
|
|
$
|
14,262
|
|
|
$
|
15,653
|
|
|
$
|
12,510
|
|
|
$
|
12,159
|
|
Accrual loans greater than 90 days past due
|
61
|
|
|
887
|
|
|
616
|
|
|
172
|
|
|
105
|
|
|||||
Total nonperforming loans
|
21,797
|
|
|
15,149
|
|
|
16,269
|
|
|
12,682
|
|
|
12,264
|
|
|||||
Other real estate owned
|
1,633
|
|
|
418
|
|
|
710
|
|
|
1,015
|
|
|
654
|
|
|||||
Total nonperforming assets
|
$
|
23,430
|
|
|
$
|
15,567
|
|
|
$
|
20,606
|
|
|
$
|
16,354
|
|
|
$
|
12,918
|
|
Loans modified in a troubled debt restructuring (TDR):
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing TDR loans
|
$
|
7,359
|
|
|
$
|
8,201
|
|
|
$
|
8,344
|
|
|
$
|
8,710
|
|
|
$
|
9,304
|
|
Nonperforming TDR loans *
|
2,443
|
|
|
6,425
|
|
|
8,959
|
|
|
3,120
|
|
|
5,637
|
|
|||||
Total TDR loans
|
$
|
9,802
|
|
|
$
|
14,626
|
|
|
$
|
17,303
|
|
|
$
|
11,830
|
|
|
$
|
14,941
|
|
Total loans, net of unearned income
|
$
|
2,804,035
|
|
|
$
|
2,474,557
|
|
|
$
|
2,145,959
|
|
|
$
|
1,873,536
|
|
|
$
|
1,577,798
|
|
Nonperforming loans as a percentage of loans, net
|
0.78
|
%
|
|
0.61
|
%
|
|
0.76
|
%
|
|
0.68
|
%
|
|
0.78
|
%
|
|||||
Total assets
|
$
|
3,763,659
|
|
|
$
|
3,221,521
|
|
|
$
|
2,768,773
|
|
|
$
|
2,573,821
|
|
|
$
|
2,285,136
|
|
Nonperforming assets as a percentage of total assets
|
0.62
|
%
|
|
0.48
|
%
|
|
0.74
|
%
|
|
0.64
|
%
|
|
0.57
|
%
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance at beginning of period
|
$
|
19,704
|
|
|
$
|
19,693
|
|
|
$
|
16,330
|
|
|
$
|
16,737
|
|
|
$
|
17,373
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial, and agricultural
|
(205
|
)
|
|
(253
|
)
|
|
(544
|
)
|
|
(601
|
)
|
|
(307
|
)
|
|||||
Commercial mortgages
|
(3,391
|
)
|
|
(3,337
|
)
|
|
(116
|
)
|
|
(201
|
)
|
|
(486
|
)
|
|||||
Residential real estate
|
(386
|
)
|
|
(315
|
)
|
|
(466
|
)
|
|
(499
|
)
|
|
(632
|
)
|
|||||
Consumer
|
(2,200
|
)
|
|
(2,279
|
)
|
|
(2,555
|
)
|
|
(3,324
|
)
|
|
(1,956
|
)
|
|||||
Credit cards
|
(116
|
)
|
|
(90
|
)
|
|
(144
|
)
|
|
(96
|
)
|
|
(116
|
)
|
|||||
Overdrafts
|
(453
|
)
|
|
(319
|
)
|
|
(252
|
)
|
|
(240
|
)
|
|
(221
|
)
|
|||||
|
(6,751
|
)
|
|
(6,593
|
)
|
|
(4,077
|
)
|
|
(4,961
|
)
|
|
(3,718
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial, and agricultural
|
17
|
|
|
171
|
|
|
235
|
|
|
89
|
|
|
267
|
|
|||||
Commercial mortgages
|
124
|
|
|
30
|
|
|
197
|
|
|
8
|
|
|
52
|
|
|||||
Residential real estate
|
73
|
|
|
67
|
|
|
78
|
|
|
93
|
|
|
8
|
|
|||||
Consumer
|
154
|
|
|
141
|
|
|
161
|
|
|
122
|
|
|
96
|
|
|||||
Credit cards
|
15
|
|
|
33
|
|
|
27
|
|
|
22
|
|
|
14
|
|
|||||
Overdrafts
|
113
|
|
|
90
|
|
|
87
|
|
|
71
|
|
|
85
|
|
|||||
|
496
|
|
|
532
|
|
|
785
|
|
|
405
|
|
|
522
|
|
|||||
Net charge-offs
|
(6,255
|
)
|
|
(6,061
|
)
|
|
(3,292
|
)
|
|
(4,556
|
)
|
|
(3,196
|
)
|
|||||
Provision for loan losses
|
6,024
|
|
|
6,072
|
|
|
6,655
|
|
|
4,149
|
|
|
2,560
|
|
|||||
Balance at end of period
|
$
|
19,473
|
|
|
$
|
19,704
|
|
|
$
|
19,693
|
|
|
$
|
16,330
|
|
|
$
|
16,737
|
|
Loans, net of unearned income
|
$
|
2,804,035
|
|
|
$
|
2,474,557
|
|
|
$
|
2,145,959
|
|
|
$
|
1,873,536
|
|
|
$
|
1,577,798
|
|
Allowance to net loans
|
0.70
|
%
|
|
0.80
|
%
|
|
0.92
|
%
|
|
0.87
|
%
|
|
1.06
|
%
|
|||||
Percentage of net charge-offs during the period to average loans outstanding
|
0.24
|
%
|
|
0.26
|
%
|
|
0.16
|
%
|
|
0.27
|
%
|
|
0.22
|
%
|
•
|
Commercial, industrial, and agricultural
|
•
|
Commercial mortgages
|
•
|
Residential real estate
|
•
|
Consumer
|
•
|
Credit cards
|
•
|
Overdrafts
|
•
|
levels of and trends in delinquencies;
|
•
|
trends in new volume and terms of new loans;
|
•
|
effects of any changes in lending policies and procedures;
|
•
|
experience, ability and depth of management;
|
•
|
national and local economic trends and conditions; and
|
•
|
concentrations of credit.
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
|
Amount
|
|
% of Loans in each Category
|
|
Amount
|
|
% of Loans in each Category
|
|
Amount
|
|
% of Loans in each Category
|
|
Amount
|
|
% of Loans in each Category
|
|
Amount
|
|
% of Loans in each Category
|
|||||||||||||||
Commercial, industrial, and agricultural
|
$
|
8,287
|
|
|
37.26
|
%
|
|
$
|
7,341
|
|
|
36.96
|
%
|
|
$
|
6,160
|
|
|
32.77
|
%
|
|
$
|
5,428
|
|
|
30.25
|
%
|
|
$
|
6,035
|
|
|
30.04
|
%
|
Commercial mortgages
|
6,952
|
|
|
28.98
|
%
|
|
7,490
|
|
|
28.14
|
%
|
|
9,007
|
|
|
29.98
|
%
|
|
6,753
|
|
|
30.63
|
%
|
|
5,605
|
|
|
28.33
|
%
|
|||||
Residential real estate
|
1,499
|
|
|
28.98
|
%
|
|
2,156
|
|
|
31.11
|
%
|
|
2,033
|
|
|
33.18
|
%
|
|
1,653
|
|
|
34.78
|
%
|
|
2,475
|
|
|
36.29
|
%
|
|||||
Consumer
|
2,411
|
|
|
4.44
|
%
|
|
2,377
|
|
|
3.47
|
%
|
|
2,179
|
|
|
3.73
|
%
|
|
2,215
|
|
|
3.99
|
%
|
|
2,371
|
|
|
4.95
|
%
|
|||||
Credit Cards
|
84
|
|
|
0.27
|
%
|
|
103
|
|
|
0.31
|
%
|
|
120
|
|
|
0.31
|
%
|
|
93
|
|
|
0.32
|
%
|
|
90
|
|
|
0.32
|
%
|
|||||
Overdrafts
|
240
|
|
|
0.08
|
%
|
|
237
|
|
|
0.01
|
%
|
|
194
|
|
|
0.02
|
%
|
|
188
|
|
|
0.03
|
%
|
|
161
|
|
|
0.07
|
%
|
|||||
Total
|
$
|
19,473
|
|
|
100.00
|
%
|
|
$
|
19,704
|
|
|
100.00
|
%
|
|
$
|
19,693
|
|
|
100.00
|
%
|
|
$
|
16,330
|
|
|
100.00
|
%
|
|
$
|
16,737
|
|
|
100.00
|
%
|
|
Year Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Average
Amount
|
|
Annual
Rate
|
|
Average
Amount |
|
Annual
Rate |
|
Average
Amount |
|
Annual
Rate |
|||||||||
Demand – Non-Interest Bearing
|
$
|
360,208
|
|
|
|
|
$
|
327,014
|
|
|
|
|
$
|
300,942
|
|
|
|
|||
Demand – Interest Bearing
|
580,244
|
|
|
0.42
|
%
|
|
582,289
|
|
|
0.38
|
%
|
|
550,922
|
|
|
0.36
|
%
|
|||
Savings Deposits
|
1,450,653
|
|
|
1.39
|
%
|
|
1,077,210
|
|
|
0.85
|
%
|
|
953,960
|
|
|
0.49
|
%
|
|||
Time Deposits
|
371,464
|
|
|
2.05
|
%
|
|
383,531
|
|
|
1.52
|
%
|
|
252,176
|
|
|
1.07
|
%
|
|||
Total
|
$
|
2,762,569
|
|
|
|
|
$
|
2,370,044
|
|
|
|
|
$
|
2,058,000
|
|
|
|
Three months or less
|
$
|
33,931
|
|
Greater than three months and through twelve months
|
64,106
|
|
|
Greater than one year and through three years
|
137,320
|
|
|
Greater than three years
|
9,740
|
|
|
Total
|
$
|
245,097
|
|
|
2019
|
|
Percentage change
2019 vs. 2018 |
|
2018
|
|
Percentage change
2018 vs. 2017 |
|
2017
|
||||||
Demand, Non interest bearing
|
$
|
382,259
|
|
|
7.1%
|
|
$
|
356,797
|
|
|
10.9%
|
|
$
|
321,858
|
|
Demand, Interest bearing
|
628,579
|
|
|
4.8%
|
|
600,046
|
|
|
6.1%
|
|
565,399
|
|
|||
Savings deposits
|
1,663,673
|
|
|
32.2%
|
|
1,258,506
|
|
|
37.5%
|
|
915,587
|
|
|||
Time deposits
|
427,816
|
|
|
8.2%
|
|
395,437
|
|
|
8.3%
|
|
364,971
|
|
|||
Total
|
$
|
3,102,327
|
|
|
18.8%
|
|
$
|
2,610,786
|
|
|
20.4%
|
|
$
|
2,167,815
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Total risk-based capital ratio
|
12.51
|
%
|
|
13.21
|
%
|
||
Tier 1 capital ratio
|
10.03
|
%
|
|
10.33
|
%
|
||
Common equity tier 1 ratio
|
9.32
|
%
|
|
9.50
|
%
|
||
Leverage ratio
|
7.86
|
%
|
|
7.87
|
%
|
||
Tangible common equity/tangible assets (1)
|
7.14
|
%
|
|
7.02
|
%
|
||
Book value per share
|
$
|
20.00
|
|
|
$
|
17.28
|
|
Tangible book value per share (1)
|
$
|
17.45
|
|
|
$
|
14.69
|
|
(1)
|
Tangible common equity, tangible assets and tangible book value per share are non-GAAP financial measures calculated using GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of stockholders’ equity. Tangible assets is calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets. Tangible book value per share is calculated by dividing tangible common equity by the number of shares outstanding. The Corporation believes that these non-GAAP financial measures provide information to investors that is useful in understanding its financial condition. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Shareholders’ equity
|
$
|
304,966
|
|
|
$
|
262,830
|
|
Less goodwill
|
38,730
|
|
|
38,730
|
|
||
Less core deposit intangible
|
160
|
|
|
727
|
|
||
Tangible common equity
|
$
|
266,076
|
|
|
$
|
223,373
|
|
Total assets
|
$
|
3,763,659
|
|
|
$
|
3,221,521
|
|
Less goodwill
|
38,730
|
|
|
38,730
|
|
||
Less core deposit intangible
|
160
|
|
|
727
|
|
||
Tangible assets
|
$
|
3,724,769
|
|
|
$
|
3,182,064
|
|
Ending shares outstanding
|
15,247,985
|
|
|
15,207,281
|
|
||
Tangible book value per share
|
$
|
17.45
|
|
|
$
|
14.69
|
|
Tangible common equity/tangible assets
|
7.14
|
%
|
|
7.02
|
%
|
|
Payments Due In
|
|||||||||||||||||||||
|
Note
Reference
|
|
One
Year or
Less
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
Over
Five Years
|
|
Total
|
|||||||||||
Deposits without a stated maturity
|
|
|
$
|
2,674,511
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
2,674,511
|
|
|
Certificates of deposit
|
11
|
|
|
118,695
|
|
|
286,063
|
|
|
13,395
|
|
|
9,663
|
|
|
427,816
|
|
|||||
FHLB and other borrowings
|
12
|
|
|
37,505
|
|
|
106,671
|
|
|
82,500
|
|
|
1,231
|
|
|
227,907
|
|
|||||
Right of use liabilities
|
9
|
|
|
1,638
|
|
|
3,426
|
|
|
3,215
|
|
|
19,582
|
|
|
27,861
|
|
|||||
Subordinated debentures
|
12
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
70,620
|
|
|
70,620
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Change in
Basis Points |
|
% Change in Net
Interest Income |
|
Change in
Basis Points |
|
% Change in Net
Interest Income |
400
|
|
(0.9)%
|
|
400
|
|
7.6%
|
300
|
|
(1.0)%
|
|
300
|
|
6.0%
|
200
|
|
(0.3)%
|
|
200
|
|
4.9%
|
100
|
|
(0.6)%
|
|
100
|
|
5.2%
|
(100)
|
|
(2.9)%
|
|
(100)
|
|
(2.0)%
|
(200)
|
|
(2.6)%
|
|
(200)
|
|
(3.6)%
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
ASSETS
|
|||||||
Cash and due from banks
|
$
|
187,748
|
|
|
$
|
43,327
|
|
Interest bearing deposits with other banks
|
5,226
|
|
|
2,236
|
|
||
Total cash and cash equivalents
|
192,974
|
|
|
45,563
|
|
||
Securities available for sale
|
542,313
|
|
|
516,863
|
|
||
Trading securities
|
9,809
|
|
|
7,786
|
|
||
Loans held for sale
|
930
|
|
|
367
|
|
||
Loans
|
2,809,197
|
|
|
2,479,348
|
|
||
Less: unearned discount
|
(5,162
|
)
|
|
(4,791
|
)
|
||
Less: allowance for loan losses
|
(19,473
|
)
|
|
(19,704
|
)
|
||
Net loans
|
2,784,562
|
|
|
2,454,853
|
|
||
FHLB and other equity interests
|
27,868
|
|
|
24,508
|
|
||
Premises and equipment, net
|
54,867
|
|
|
49,920
|
|
||
Operating lease assets
|
18,422
|
|
|
0
|
|
||
Bank owned life insurance
|
66,538
|
|
|
56,443
|
|
||
Mortgage servicing rights
|
1,573
|
|
|
1,495
|
|
||
Goodwill
|
38,730
|
|
|
38,730
|
|
||
Core deposit intangible
|
160
|
|
|
727
|
|
||
Accrued interest receivable and other assets
|
24,913
|
|
|
24,266
|
|
||
Total Assets
|
$
|
3,763,659
|
|
|
$
|
3,221,521
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|||||||
Non-interest bearing deposits
|
$
|
382,259
|
|
|
$
|
356,797
|
|
Interest bearing deposits
|
2,720,068
|
|
|
2,253,989
|
|
||
Total deposits
|
3,102,327
|
|
|
2,610,786
|
|
||
FHLB and other long-term borrowings
|
227,907
|
|
|
245,117
|
|
||
Subordinated debentures
|
70,620
|
|
|
70,620
|
|
||
Operating lease liabilities
|
19,363
|
|
|
0
|
|
||
Accrued interest payable and other liabilities
|
38,476
|
|
|
32,168
|
|
||
Total liabilities
|
3,458,693
|
|
|
2,958,691
|
|
||
Commitments and contingent liabilities
|
|
|
|
|
|
||
Common stock, $0 par value; authorized 50,000,000 shares; issued 15,360,946 shares at December 31, 2019 and 15,308,378 shares at December 31, 2018
|
0
|
|
|
0
|
|
||
Additional paid in capital
|
99,335
|
|
|
97,602
|
|
||
Retained earnings
|
201,503
|
|
|
171,780
|
|
||
Treasury stock, at cost (112,961 and 101,097 shares for 2019 and 2018, respectively)
|
(2,811
|
)
|
|
(2,556
|
)
|
||
Accumulated other comprehensive income (loss)
|
6,939
|
|
|
(3,996
|
)
|
||
Total shareholders’ equity
|
304,966
|
|
|
262,830
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
3,763,659
|
|
|
$
|
3,221,521
|
|
See Notes to Consolidated Financial Statements
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Interest and Dividend Income:
|
|
|
|
|
|
||||||
Loans including fees
|
$
|
139,867
|
|
|
$
|
118,193
|
|
|
$
|
97,005
|
|
Securities:
|
|
|
|
|
|
||||||
Taxable
|
12,472
|
|
|
9,921
|
|
|
8,165
|
|
|||
Tax-exempt
|
2,372
|
|
|
2,739
|
|
|
2,983
|
|
|||
Dividends
|
1,017
|
|
|
1,017
|
|
|
721
|
|
|||
Total interest and dividend income
|
155,728
|
|
|
131,870
|
|
|
108,874
|
|
|||
Interest Expense:
|
|
|
|
|
|
||||||
Deposits
|
30,202
|
|
|
17,228
|
|
|
9,312
|
|
|||
Borrowed funds
|
5,349
|
|
|
5,856
|
|
|
4,021
|
|
|||
Subordinated debentures (includes $63, $164, and $288 accumulated other comprehensive income reclassification for change in fair value of interest rate swap agreements in 2019, 2018, and 2017, respectively)
|
3,979
|
|
|
3,866
|
|
|
4,032
|
|
|||
Total interest expense
|
39,530
|
|
|
26,950
|
|
|
17,365
|
|
|||
Net Interest Income
|
116,198
|
|
|
104,920
|
|
|
91,509
|
|
|||
Provision for Loan Losses
|
6,024
|
|
|
6,072
|
|
|
6,655
|
|
|||
Net Interest Income After Provision for Loan Losses
|
110,174
|
|
|
98,848
|
|
|
84,854
|
|
|||
Non-Interest Income:
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
6,402
|
|
|
5,759
|
|
|
4,809
|
|
|||
Other service charges and fees
|
2,930
|
|
|
2,833
|
|
|
2,454
|
|
|||
Wealth and asset management fees
|
4,627
|
|
|
4,172
|
|
|
3,724
|
|
|||
Net realized gains on available-for-sale securities (includes $148, $0, and $1,543 accumulated other comprehensive income reclassifications for net realized gains on available-for-sale securities in 2019, 2018, and 2017, respectively)
|
148
|
|
|
0
|
|
|
1,543
|
|
|||
Net realized gains on trading securities
|
16
|
|
|
151
|
|
|
93
|
|
|||
Net unrealized gains (losses) on trading securities
|
1,872
|
|
|
(602
|
)
|
|
788
|
|
|||
Realized gains on Visa Class B shares
|
463
|
|
|
0
|
|
|
0
|
|
|||
Mortgage banking
|
1,412
|
|
|
1,019
|
|
|
906
|
|
|||
Bank owned life insurance
|
1,317
|
|
|
1,408
|
|
|
1,659
|
|
|||
Card processing and interchange income
|
4,641
|
|
|
4,261
|
|
|
3,763
|
|
|||
Gain on sale of branch
|
0
|
|
|
0
|
|
|
536
|
|
|||
Other
|
2,147
|
|
|
1,722
|
|
|
1,160
|
|
|||
Total non-interest income
|
25,975
|
|
|
20,723
|
|
|
21,435
|
|
|||
Non-Interest Expenses:
|
|
|
|
|
|
||||||
Salaries
|
35,212
|
|
|
31,323
|
|
|
26,205
|
|
|||
Employee benefits (includes $23, $84, and $192 accumulated other comprehensive income reclassifications for net amortization of actuarial losses in 2019, 2018, and 2017, respectively)
|
11,193
|
|
|
10,533
|
|
|
9,821
|
|
|||
Net occupancy expense
|
11,221
|
|
|
10,281
|
|
|
9,546
|
|
|||
Amortization of core deposit intangible
|
567
|
|
|
898
|
|
|
1,229
|
|
|||
Data processing
|
4,994
|
|
|
4,586
|
|
|
3,944
|
|
|||
State and local taxes
|
3,140
|
|
|
3,441
|
|
|
2,815
|
|
|||
Legal, professional and examination fees
|
2,514
|
|
|
1,851
|
|
|
1,819
|
|
|||
Advertising
|
2,113
|
|
|
2,345
|
|
|
2,243
|
|
|||
FDIC insurance
|
1,252
|
|
|
1,396
|
|
|
1,182
|
|
|||
Directors fees and benefits
|
1,352
|
|
|
885
|
|
|
1,063
|
|
|||
Merger costs
|
170
|
|
|
0
|
|
|
0
|
|
|||
Card processing and interchange expenses
|
2,891
|
|
|
2,834
|
|
|
2,116
|
|
|||
Other
|
10,889
|
|
|
8,969
|
|
|
8,054
|
|
|||
Total non-interest expenses
|
87,508
|
|
|
79,342
|
|
|
70,037
|
|
|||
Income Before Income Taxes
|
48,641
|
|
|
40,229
|
|
|
36,252
|
|
|||
Income Tax Expense (includes $13, $(52), and $372 income tax expense reclassification items in 2019, 2018, and 2017, respectively)
|
8,560
|
|
|
6,510
|
|
|
12,392
|
|
|||
Net Income
|
40,081
|
|
|
33,719
|
|
|
23,860
|
|
|||
Other Comprehensive Income (Loss):
|
|
|
|
|
|
||||||
Net change in unrealized gains (losses) on available-for-sale securities, net of reclassification and tax
|
10,732
|
|
|
(4,007
|
)
|
|
(1,004
|
)
|
|||
Change in actuarial gain (loss), for post-employment health care plan, net of amortization and tax
|
428
|
|
|
386
|
|
|
825
|
|
|||
Change in fair value of interest rate swap agreements designated as a cash flow hedge, net of interest and tax
|
(225
|
)
|
|
(32
|
)
|
|
194
|
|
|||
Total other comprehensive income (loss)
|
10,935
|
|
|
(3,653
|
)
|
|
15
|
|
|||
Comprehensive Income
|
$
|
51,016
|
|
|
$
|
30,066
|
|
|
$
|
23,875
|
|
Earnings Per Share:
|
|
|
|
|
|
||||||
Basic
|
$
|
2.63
|
|
|
$
|
2.21
|
|
|
$
|
1.57
|
|
Diluted
|
2.63
|
|
|
2.21
|
|
|
1.57
|
|
See Notes to Consolidated Financial Statements
|
|
Additional
Paid-In Capital |
|
Retained
Earnings |
|
Treasury
Stock |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
Share- holders’ Equity |
||||||||||
Balance, January 1, 2017
|
$
|
77,737
|
|
|
$
|
134,295
|
|
|
$
|
(127
|
)
|
|
$
|
(121
|
)
|
|
$
|
211,784
|
|
Net income
|
|
|
23,860
|
|
|
|
|
|
|
23,860
|
|
||||||||
Reclassification of certain tax effects from accumulated other comprehensive income to retained earnings
|
|
|
237
|
|
|
|
|
(237
|
)
|
|
0
|
|
|||||||
Other comprehensive income
|
|
|
|
|
|
|
15
|
|
|
15
|
|
||||||||
Forfeiture of restricted stock award grants (2,482 shares)
|
67
|
|
|
|
|
(67
|
)
|
|
|
|
0
|
|
|||||||
Restricted stock award grants (39,673 shares)
|
(984
|
)
|
|
|
|
984
|
|
|
|
|
0
|
|
|||||||
Stock-based compensation expense
|
928
|
|
|
|
|
|
|
|
|
928
|
|
||||||||
Issuance of common stock, net of issuance costs (834,896 shares)
|
19,294
|
|
|
|
|
|
|
|
|
19,294
|
|
||||||||
Purchase of treasury stock (70,202 shares)
|
|
|
|
|
(1,747
|
)
|
|
|
|
(1,747
|
)
|
||||||||
Purchase of treasury stock for the purpose of tax withholding related to restricted stock award vesting (4,960)
|
|
|
|
|
(130
|
)
|
|
|
|
(130
|
)
|
||||||||
Cash dividends declared ($0.66 per share)
|
|
|
(10,094
|
)
|
|
|
|
|
|
(10,094
|
)
|
||||||||
Balance, December 31, 2017
|
97,042
|
|
|
148,298
|
|
|
(1,087
|
)
|
|
(343
|
)
|
|
243,910
|
|
|||||
Net income
|
|
|
33,719
|
|
|
|
|
|
|
33,719
|
|
||||||||
Other comprehensive loss
|
|
|
|
|
|
|
(3,653
|
)
|
|
(3,653
|
)
|
||||||||
Forfeiture of restricted stock award grants (361 shares)
|
11
|
|
|
|
|
(11
|
)
|
|
|
|
0
|
|
|||||||
Restricted stock award grants (40,108 shares)
|
(996
|
)
|
|
|
|
996
|
|
|
|
|
0
|
|
|||||||
Stock-based compensation expense
|
1,545
|
|
|
|
|
|
|
|
|
1,545
|
|
||||||||
Purchase of treasury stock (90,898 shares)
|
|
|
|
|
(2,284
|
)
|
|
|
|
(2,284
|
)
|
||||||||
Purchase of treasury stock for the purpose of tax withholding related to restricted stock award vesting (6,308)
|
|
|
|
|
(170
|
)
|
|
|
|
(170
|
)
|
||||||||
Cash dividends declared ($0.67 per share)
|
|
|
(10,237
|
)
|
|
|
|
|
|
(10,237
|
)
|
||||||||
Balance, December 31, 2018
|
97,602
|
|
|
171,780
|
|
|
(2,556
|
)
|
|
(3,996
|
)
|
|
262,830
|
|
|||||
Net income
|
|
|
40,081
|
|
|
|
|
|
|
40,081
|
|
||||||||
Other comprehensive income
|
|
|
|
|
|
|
10,935
|
|
|
10,935
|
|
||||||||
Forfeiture of restricted stock award grants (2,699 shares)
|
71
|
|
|
|
|
(71
|
)
|
|
|
|
0
|
|
|||||||
Restricted stock award grants (40,978 shares)
|
(1,086
|
)
|
|
|
|
1,086
|
|
|
|
|
0
|
|
|||||||
Performance based restricted stock award grants (798 shares)
|
(21
|
)
|
|
|
|
21
|
|
|
|
|
0
|
|
|||||||
Stock-based compensation expense
|
1,346
|
|
|
|
|
|
|
|
|
1,346
|
|
||||||||
Issuance of common stock, net of issuance costs (52,568 shares)
|
1,423
|
|
|
|
|
|
|
|
|
1,423
|
|
||||||||
Purchase of treasury stock (40,000 shares)
|
|
|
|
|
(994
|
)
|
|
|
|
(994
|
)
|
||||||||
Purchase of treasury stock for the purpose of tax withholding related to restricted stock award vesting (10,647)
|
|
|
|
|
(289
|
)
|
|
|
|
(289
|
)
|
||||||||
Purchase of treasury stock for the purpose of tax withholding related to performance based restricted stock award vesting (294)
|
|
|
|
|
(8
|
)
|
|
|
|
(8
|
)
|
||||||||
Cash dividends declared ($0.68 per share)
|
|
|
(10,358
|
)
|
|
|
|
|
|
(10,358
|
)
|
||||||||
Balance, December 31, 2019
|
$
|
99,335
|
|
|
$
|
201,503
|
|
|
$
|
(2,811
|
)
|
|
6,939
|
|
|
$
|
304,966
|
|
See Notes to Consolidated Financial Statements
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash Flows From Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
40,081
|
|
|
$
|
33,719
|
|
|
$
|
23,860
|
|
Adjustments to reconcile net income to net cash provided by operations:
|
|
|
|
|
|
||||||
Provision for loan losses
|
6,024
|
|
|
6,072
|
|
|
6,655
|
|
|||
Depreciation and amortization of premises and equipment, operating leases assets, core deposit intangible, and mortgage servicing rights
|
5,963
|
|
|
4,811
|
|
|
5,242
|
|
|||
Amortization and accretion of securities premiums and discounts, deferred loan fees and costs, net yield and credit mark on acquired loans, and unearned income
|
(870
|
)
|
|
(537
|
)
|
|
(1,202
|
)
|
|||
Deferred taxes
|
(204
|
)
|
|
(1,076
|
)
|
|
3,385
|
|
|||
Net realized gains on sales of available-for-sale securities
|
(148
|
)
|
|
0
|
|
|
(1,543
|
)
|
|||
Net realized and unrealized losses (gains) on trading securities
|
(1,888
|
)
|
|
451
|
|
|
(881
|
)
|
|||
Proceeds from sale of trading securities
|
301
|
|
|
455
|
|
|
1,091
|
|
|||
Proceeds from sale of Visa Class B shares
|
463
|
|
|
0
|
|
|
0
|
|
|||
Gain on sale of Visa Class B shares
|
(463
|
)
|
|
0
|
|
|
0
|
|
|||
Purchase of trading securities
|
(436
|
)
|
|
(1,542
|
)
|
|
(2,502
|
)
|
|||
Gain on sale of branch
|
0
|
|
|
0
|
|
|
(536
|
)
|
|||
Gain on sale of loans
|
(990
|
)
|
|
(624
|
)
|
|
(545
|
)
|
|||
Net losses (gains) on dispositions of premises and equipment and foreclosed assets
|
(377
|
)
|
|
47
|
|
|
(107
|
)
|
|||
Proceeds from sale of loans
|
43,198
|
|
|
23,311
|
|
|
24,285
|
|
|||
Origination of loans held for sale
|
(43,458
|
)
|
|
(22,990
|
)
|
|
(25,231
|
)
|
|||
Income on bank owned life insurance, including death benefit of proceeds in excess of cash surrender value
|
(1,317
|
)
|
|
(1,408
|
)
|
|
(1,659
|
)
|
|||
Stock-based compensation expense
|
1,346
|
|
|
1,545
|
|
|
928
|
|
|||
Changes in:
|
|
|
|
|
|
||||||
Accrued interest receivable and other assets
|
1,072
|
|
|
(3,079
|
)
|
|
(1,175
|
)
|
|||
Accrued interest payable, lease liabilities, and other liabilities
|
3,610
|
|
|
4,613
|
|
|
698
|
|
|||
Net Cash Provided By Operating Activities
|
51,907
|
|
|
43,768
|
|
|
30,763
|
|
|||
Cash Flows from Investing Activities:
|
|
|
|
|
|
||||||
Proceeds from maturities, prepayments and calls of available-for-sale securities
|
98,274
|
|
|
76,349
|
|
|
92,302
|
|
|||
Proceeds from sales of available-for-sale securities
|
11,403
|
|
|
0
|
|
|
16,340
|
|
|||
Purchase of available-for-sale securities
|
(122,358
|
)
|
|
(189,374
|
)
|
|
(23,689
|
)
|
|||
Loan origination and payments, net
|
(335,965
|
)
|
|
(333,552
|
)
|
|
(273,972
|
)
|
|||
Purchase of bank owned life insurance
|
(8,778
|
)
|
|
0
|
|
|
(10,000
|
)
|
|||
Proceeds from death benefit of BOLI policies
|
0
|
|
|
0
|
|
|
897
|
|
|||
Net cash received from sale of branch
|
0
|
|
|
0
|
|
|
1,079
|
|
|||
Purchase of FHLB and other equity interests
|
(3,360
|
)
|
|
(2,991
|
)
|
|
(2,331
|
)
|
|||
Purchase of premises and equipment
|
(9,045
|
)
|
|
(3,068
|
)
|
|
(5,215
|
)
|
|||
Proceeds from the sale of premises and equipment and foreclosed assets
|
1,228
|
|
|
1,048
|
|
|
938
|
|
|||
Net Cash Used In Investing Activities
|
(368,601
|
)
|
|
(451,588
|
)
|
|
(203,651
|
)
|
|||
Cash Flows From Financing Activities:
|
|
|
|
|
|
||||||
Net change in:
|
|
|
|
|
|
||||||
Checking, money market and savings accounts
|
459,162
|
|
|
412,505
|
|
|
16,096
|
|
|||
Certificates of deposit
|
32,379
|
|
|
30,466
|
|
|
134,197
|
|
|||
Deposits held for sale
|
0
|
|
|
0
|
|
|
1,079
|
|
|||
Purchase of treasury stock
|
(1,291
|
)
|
|
(2,454
|
)
|
|
(1,877
|
)
|
|||
Proceeds from stock offering, net of issuance costs
|
1,423
|
|
|
0
|
|
|
19,294
|
|
|||
Cash dividends paid
|
(10,358
|
)
|
|
(10,237
|
)
|
|
(10,094
|
)
|
|||
Proceeds from long-term borrowings
|
30,353
|
|
|
50,000
|
|
|
160,000
|
|
|||
Repayments on long-term borrowings
|
(47,563
|
)
|
|
(27,826
|
)
|
|
(70,092
|
)
|
|||
Net change in short-term borrowings
|
0
|
|
|
(34,416
|
)
|
|
(69,553
|
)
|
|||
Net Cash Provided By Financing Activities
|
464,105
|
|
|
418,038
|
|
|
179,050
|
|
|||
Net Increase in Cash and Cash Equivalents
|
147,411
|
|
|
10,218
|
|
|
6,162
|
|
|||
Cash and Cash Equivalents, Beginning
|
45,563
|
|
|
35,345
|
|
|
29,183
|
|
|||
Cash and Cash Equivalents, Ending
|
$
|
192,974
|
|
|
$
|
45,563
|
|
|
$
|
35,345
|
|
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
|
|
||||||
Cash paid during the period for:
|
|
|
|
|
|
||||||
Interest
|
$
|
39,282
|
|
|
$
|
26,551
|
|
|
$
|
17,481
|
|
Income taxes
|
8,006
|
|
|
7,050
|
|
|
7,810
|
|
|||
Supplemental Noncash Disclosures:
|
|
|
|
|
|
||||||
Transfers to other real estate owned
|
$
|
2,066
|
|
|
$
|
228
|
|
|
$
|
630
|
|
Grant of restricted stock awards from treasury stock
|
1,086
|
|
|
996
|
|
|
984
|
|
|||
Grant of performance based restricted stock awards from treasury stock
|
21
|
|
|
0
|
|
|
0
|
|
|||
Restricted stock forfeiture
|
71
|
|
|
11
|
|
|
67
|
|
|||
Right of use assets obtained in exchange for lease liabilities
|
19,465
|
|
|
0
|
|
|
0
|
|
See Notes to Consolidated Financial Statements
|
•
|
Commercial, industrial, and agricultural – risk characteristics include below average economic and employment conditions in many of the markets served by the Corporation, which has limited consumer spending.
|
•
|
Commercial mortgages – the most significant risk characteristic is the subjectivity involved in real estate valuations for properties located in areas with low growth economies.
|
•
|
Residential real estate – risk characteristics include slightly higher than historical levels of delinquencies and less than robust housing markets.
|
•
|
Consumer – risk characteristics include continuing weakness in industrial employment in many of the markets served by the Corporation and low wage growth.
|
•
|
Credit cards – the most significant risk characteristic is the unsecured nature of credit card loans.
|
•
|
Overdrafts – risk characteristics include the Corporation’s continued deposit growth and overall economic conditions which may lead to a greater likelihood of overdrawn deposit accounts.
|
•
|
its operating performance;
|
•
|
the severity and duration of declines in the fair value of its net assets related to its capital stock amount;
|
•
|
its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance;
|
•
|
the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of FHLB; and
|
•
|
its liquidity and funding position.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
Amortized
|
|
Unrealized
|
|
Fair
|
|
Amortized
|
|
Unrealized
|
|
Fair
|
||||||||||||||||||||
|
Cost
|
|
Gains
|
|
Losses
|
|
Value
|
Cost
|
Gains
|
|
Losses
|
|
Value
|
||||||||||||||||||
U.S. Gov’t sponsored entities
|
$
|
124,189
|
|
|
$
|
2,924
|
|
|
$
|
(19
|
)
|
|
$
|
127,094
|
|
|
$
|
134,010
|
|
|
$
|
254
|
|
|
$
|
(1,570
|
)
|
|
$
|
132,694
|
|
State & political subdivisions
|
101,177
|
|
|
3,288
|
|
|
(102
|
)
|
|
104,363
|
|
|
134,662
|
|
|
1,942
|
|
|
(573
|
)
|
|
136,031
|
|
||||||||
Residential & multi-family mortgage
|
273,404
|
|
|
4,117
|
|
|
(885
|
)
|
|
276,636
|
|
|
209,126
|
|
|
500
|
|
|
(3,573
|
)
|
|
206,053
|
|
||||||||
Corporate notes & bonds
|
8,350
|
|
|
14
|
|
|
(282
|
)
|
|
8,082
|
|
|
12,356
|
|
|
22
|
|
|
(601
|
)
|
|
11,777
|
|
||||||||
Pooled SBA
|
25,063
|
|
|
274
|
|
|
(163
|
)
|
|
25,174
|
|
|
30,163
|
|
|
135
|
|
|
(924
|
)
|
|
29,374
|
|
||||||||
Other
|
1,020
|
|
|
0
|
|
|
(56
|
)
|
|
964
|
|
|
1,020
|
|
|
0
|
|
|
(86
|
)
|
|
934
|
|
||||||||
Total
|
$
|
533,203
|
|
|
$
|
10,617
|
|
|
$
|
(1,507
|
)
|
|
$
|
542,313
|
|
|
$
|
521,337
|
|
|
$
|
2,853
|
|
|
$
|
(7,327
|
)
|
|
$
|
516,863
|
|
|
2019
|
|
2018
|
||||
Corporate equity securities
|
$
|
7,946
|
|
|
$
|
5,828
|
|
Mutual Funds
|
807
|
|
|
1,058
|
|
||
Certificates of deposit
|
350
|
|
|
268
|
|
||
Corporate notes and bonds
|
655
|
|
|
581
|
|
||
U.S. Government sponsored entities
|
51
|
|
|
51
|
|
||
Total
|
$
|
9,809
|
|
|
$
|
7,786
|
|
December 31, 2019
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
Description of Securities
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
U.S. Gov’t sponsored entities
|
$
|
7,040
|
|
|
$
|
(3
|
)
|
|
$
|
14,989
|
|
|
$
|
(16
|
)
|
|
$
|
22,029
|
|
|
$
|
(19
|
)
|
State & political subdivisions
|
826
|
|
|
(5
|
)
|
|
684
|
|
|
(97
|
)
|
|
1,510
|
|
|
(102
|
)
|
||||||
Residential & multi-family mortgage
|
41,841
|
|
|
(346
|
)
|
|
32,555
|
|
|
(539
|
)
|
|
74,396
|
|
|
(885
|
)
|
||||||
Corporate notes & bonds
|
0
|
|
|
0
|
|
|
4,718
|
|
|
(282
|
)
|
|
4,718
|
|
|
(282
|
)
|
||||||
Pooled SBA
|
8,560
|
|
|
(80
|
)
|
|
6,075
|
|
|
(83
|
)
|
|
14,635
|
|
|
(163
|
)
|
||||||
Other
|
0
|
|
|
0
|
|
|
964
|
|
|
(56
|
)
|
|
964
|
|
|
(56
|
)
|
||||||
|
$
|
58,267
|
|
|
$
|
(434
|
)
|
|
$
|
59,985
|
|
|
$
|
(1,073
|
)
|
|
$
|
118,252
|
|
|
$
|
(1,507
|
)
|
December 31, 2018
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||
Description of Securities
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||
U.S. Gov’t sponsored entities
|
14,786
|
|
|
(41
|
)
|
|
70,676
|
|
|
(1,529
|
)
|
|
85,462
|
|
|
(1,570
|
)
|
State & political subdivisions
|
13,834
|
|
|
(62
|
)
|
|
21,080
|
|
|
(511
|
)
|
|
34,914
|
|
|
(573
|
)
|
Residential and multi-family mortgage
|
69,015
|
|
|
(656
|
)
|
|
87,286
|
|
|
(2,917
|
)
|
|
156,301
|
|
|
(3,573
|
)
|
Corporate notes & bonds
|
0
|
|
|
0
|
|
|
9,759
|
|
|
(601
|
)
|
|
9,759
|
|
|
(601
|
)
|
Pooled SBA
|
760
|
|
|
(7
|
)
|
|
20,795
|
|
|
(917
|
)
|
|
21,555
|
|
|
(924
|
)
|
Other
|
0
|
|
|
0
|
|
|
934
|
|
|
(86
|
)
|
|
934
|
|
|
(86
|
)
|
|
98,395
|
|
|
(766
|
)
|
|
210,530
|
|
|
(6,561
|
)
|
|
308,925
|
|
|
(7,327
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
2,071
|
|
Credit losses previously recognized on securities sold during the period
|
0
|
|
|
0
|
|
|
(2,071
|
)
|
|||
Additional credit loss for which other-than-temporary impairment was not previously recognized
|
0
|
|
|
0
|
|
|
0
|
|
|||
Additional credit loss for which other-than-temporary impairment was previously recognized
|
0
|
|
|
0
|
|
|
0
|
|
|||
Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
•
|
There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.
|
•
|
All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.
|
|
December 31, 2019
|
||||||
|
Amortized Cost
|
|
Fair Value
|
||||
1 year or less
|
$
|
59,815
|
|
|
$
|
59,831
|
|
1 year – 5 years
|
104,134
|
|
|
106,084
|
|
||
5 years – 10 years
|
66,534
|
|
|
70,191
|
|
||
After 10 years
|
4,253
|
|
|
4,397
|
|
||
|
234,736
|
|
|
240,503
|
|
||
Residential and multi-family mortgage
|
273,404
|
|
|
276,636
|
|
||
Pooled SBA
|
25,063
|
|
|
25,174
|
|
||
Total debt securities
|
$
|
533,203
|
|
|
$
|
542,313
|
|
Year ended December 31
|
Proceeds
|
|
Gross Gains
|
|
Gross Losses
|
||||||
2019
|
$
|
11,403
|
|
|
$
|
152
|
|
|
$
|
4
|
|
2018
|
0
|
|
|
0
|
|
|
0
|
|
|||
2017
|
16,340
|
|
|
1,614
|
|
|
71
|
|
|
2019
|
|
2018
|
||||
Commercial, industrial, and agricultural
|
$
|
1,046,665
|
|
|
$
|
916,297
|
|
Commercial mortgages
|
814,002
|
|
|
697,776
|
|
||
Residential real estate
|
814,030
|
|
|
771,309
|
|
||
Consumer
|
124,785
|
|
|
86,035
|
|
||
Credit cards
|
7,569
|
|
|
7,623
|
|
||
Overdrafts
|
2,146
|
|
|
308
|
|
||
Less: unearned discount
|
(5,162
|
)
|
|
(4,791
|
)
|
||
allowance for loan losses
|
(19,473
|
)
|
|
(19,704
|
)
|
||
Loans, net
|
$
|
2,784,562
|
|
|
$
|
2,454,853
|
|
|
Commercial,
Industrial, and
Agricultural
|
|
Commercial
Mortgages
|
|
Residential
Real
Estate
|
|
Consumer
|
|
Credit
Cards
|
|
Overdrafts
|
|
Total
|
||||||||||||||
Allowance for loan losses, January 1, 2019
|
$
|
7,341
|
|
|
$
|
7,490
|
|
|
$
|
2,156
|
|
|
$
|
2,377
|
|
|
$
|
103
|
|
|
$
|
237
|
|
|
$
|
19,704
|
|
Charge-offs
|
(205
|
)
|
|
(3,391
|
)
|
|
(386
|
)
|
|
(2,200
|
)
|
|
(116
|
)
|
|
(453
|
)
|
|
(6,751
|
)
|
|||||||
Recoveries
|
17
|
|
|
124
|
|
|
73
|
|
|
154
|
|
|
15
|
|
|
113
|
|
|
496
|
|
|||||||
Provision for loan losses
|
1,134
|
|
|
2,729
|
|
|
(344
|
)
|
|
2,080
|
|
|
82
|
|
|
343
|
|
|
6,024
|
|
|||||||
Allowance for loan losses, December 31, 2019
|
$
|
8,287
|
|
|
$
|
6,952
|
|
|
$
|
1,499
|
|
|
$
|
2,411
|
|
|
$
|
84
|
|
|
$
|
240
|
|
|
$
|
19,473
|
|
|
Commercial,
Industrial, and
Agricultural
|
|
Commercial
Mortgages
|
|
Residential
Real
Estate
|
|
Consumer
|
|
Credit
Cards
|
|
Overdrafts
|
|
Total
|
||||||||||||||
Allowance for loan losses, January 1, 2018
|
$
|
6,160
|
|
|
$
|
9,007
|
|
|
$
|
2,033
|
|
|
$
|
2,179
|
|
|
$
|
120
|
|
|
$
|
194
|
|
|
$
|
19,693
|
|
Charge-offs
|
(253
|
)
|
|
(3,337
|
)
|
|
(315
|
)
|
|
(2,279
|
)
|
|
(90
|
)
|
|
(319
|
)
|
|
(6,593
|
)
|
|||||||
Recoveries
|
171
|
|
|
30
|
|
|
67
|
|
|
141
|
|
|
33
|
|
|
90
|
|
|
532
|
|
|||||||
Provision for loan losses
|
1,263
|
|
|
1,790
|
|
|
371
|
|
|
2,336
|
|
|
40
|
|
|
272
|
|
|
6,072
|
|
|||||||
Allowance for loan losses, December 31, 2018
|
$
|
7,341
|
|
|
$
|
7,490
|
|
|
$
|
2,156
|
|
|
$
|
2,377
|
|
|
$
|
103
|
|
|
$
|
237
|
|
|
$
|
19,704
|
|
|
Commercial,
Industrial, and
Agricultural
|
|
Commercial
Mortgages
|
|
Residential
Real
Estate
|
|
Consumer
|
|
Credit
Cards
|
|
Overdrafts
|
|
Total
|
||||||||||||||
Allowance for loan losses, January 1, 2017
|
$
|
5,428
|
|
|
$
|
6,753
|
|
|
$
|
1,653
|
|
|
$
|
2,215
|
|
|
$
|
93
|
|
|
$
|
188
|
|
|
$
|
16,330
|
|
Charge-offs
|
(544
|
)
|
|
(116
|
)
|
|
(466
|
)
|
|
(2,555
|
)
|
|
(144
|
)
|
|
(252
|
)
|
|
(4,077
|
)
|
|||||||
Recoveries
|
235
|
|
|
197
|
|
|
78
|
|
|
161
|
|
|
27
|
|
|
87
|
|
|
785
|
|
|||||||
Provision for loan losses
|
1,041
|
|
|
2,173
|
|
|
768
|
|
|
2,358
|
|
|
144
|
|
|
171
|
|
|
6,655
|
|
|||||||
Allowance for loan losses, December 31, 2017
|
$
|
6,160
|
|
|
$
|
9,007
|
|
|
$
|
2,033
|
|
|
$
|
2,179
|
|
|
$
|
120
|
|
|
$
|
194
|
|
|
$
|
19,693
|
|
December 31, 2019
|
Commercial,
Industrial, and
Agricultural
|
|
Commercial
Mortgages
|
|
Residential
Real
Estate
|
|
Consumer
|
|
Credit
Cards
|
|
Overdrafts
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending allowance balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
645
|
|
|
$
|
1,264
|
|
|
$
|
34
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
1,943
|
|
Collectively evaluated for impairment
|
7,614
|
|
|
5,358
|
|
|
1,465
|
|
|
2,411
|
|
|
84
|
|
|
240
|
|
|
17,172
|
|
|||||||
Acquired with deteriorated credit quality
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Modified in a troubled debt restructuring
|
28
|
|
|
330
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
358
|
|
|||||||
Total ending allowance balance
|
$
|
8,287
|
|
|
$
|
6,952
|
|
|
$
|
1,499
|
|
|
$
|
2,411
|
|
|
$
|
84
|
|
|
$
|
240
|
|
|
$
|
19,473
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
8,078
|
|
|
$
|
2,410
|
|
|
$
|
465
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
10,953
|
|
Collectively evaluated for impairment
|
1,035,494
|
|
|
804,360
|
|
|
813,565
|
|
|
124,785
|
|
|
7,569
|
|
|
2,146
|
|
|
2,787,919
|
|
|||||||
Acquired with deteriorated credit quality
|
0
|
|
|
523
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
523
|
|
|||||||
Modified in a troubled debt restructuring
|
3,093
|
|
|
6,709
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
9,802
|
|
|||||||
Total ending loans balance
|
$
|
1,046,665
|
|
|
$
|
814,002
|
|
|
$
|
814,030
|
|
|
$
|
124,785
|
|
|
$
|
7,569
|
|
|
$
|
2,146
|
|
|
$
|
2,809,197
|
|
December 31, 2018
|
Commercial,
Industrial, and
Agricultural
|
|
Commercial
Mortgages
|
|
Residential
Real
Estate
|
|
Consumer
|
|
Credit
Cards
|
|
Overdrafts
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending allowance balance attributable to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
54
|
|
|
$
|
4
|
|
|
$
|
100
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
10
|
|
|
$
|
168
|
|
Collectively evaluated for impairment
|
7,183
|
|
|
3,036
|
|
|
2,056
|
|
|
2,377
|
|
|
103
|
|
|
227
|
|
|
14,982
|
|
|||||||
Acquired with deteriorated credit quality
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|||||||
Modified in a troubled debt restructuring
|
104
|
|
|
4,450
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
4,554
|
|
|||||||
Total ending allowance balance
|
$
|
7,341
|
|
|
$
|
7,490
|
|
|
$
|
2,156
|
|
|
$
|
2,377
|
|
|
$
|
103
|
|
|
$
|
237
|
|
|
$
|
19,704
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
1,334
|
|
|
$
|
1,446
|
|
|
$
|
502
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
10
|
|
|
$
|
3,292
|
|
Collectively evaluated for impairment
|
910,386
|
|
|
685,714
|
|
|
770,807
|
|
|
86,035
|
|
|
7,623
|
|
|
298
|
|
|
2,460,863
|
|
|||||||
Acquired with deteriorated credit quality
|
0
|
|
|
567
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
567
|
|
|||||||
Modified in a troubled debt restructuring
|
4,577
|
|
|
10,049
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
14,626
|
|
|||||||
Total ending loans balance
|
$
|
916,297
|
|
|
$
|
697,776
|
|
|
$
|
771,309
|
|
|
$
|
86,035
|
|
|
$
|
7,623
|
|
|
$
|
308
|
|
|
$
|
2,479,348
|
|
December 31, 2019
|
Unpaid Principal Balance
|
|
Recorded Investment
|
|
Allowance for Loan Losses Allocated
|
||||||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
$
|
2,657
|
|
|
$
|
1,476
|
|
|
$
|
673
|
|
Commercial mortgage
|
6,541
|
|
|
4,349
|
|
|
1,594
|
|
|||
Residential real estate
|
485
|
|
|
465
|
|
|
34
|
|
|||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
9,845
|
|
|
9,695
|
|
|
0
|
|
|||
Commercial mortgage
|
4,903
|
|
|
4,770
|
|
|
0
|
|
|||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
|||
Total
|
$
|
24,431
|
|
|
$
|
20,755
|
|
|
$
|
2,301
|
|
December 31, 2018
|
Unpaid Principal Balance
|
|
Recorded Investment
|
|
Allowance for Loan Losses Allocated
|
||||||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
$
|
3,053
|
|
|
$
|
3,037
|
|
|
$
|
158
|
|
Commercial mortgage
|
10,799
|
|
|
6,709
|
|
|
4,454
|
|
|||
Residential real estate
|
502
|
|
|
502
|
|
|
100
|
|
|||
Overdrafts
|
10
|
|
|
10
|
|
|
10
|
|
|||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
3,684
|
|
|
2,874
|
|
|
0
|
|
|||
Commercial mortgage
|
5,659
|
|
|
4,786
|
|
|
0
|
|
|||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
|||
Total
|
$
|
23,707
|
|
|
$
|
17,918
|
|
|
$
|
4,722
|
|
|
Year Ended December 31, 2019
|
||||||||||
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Cash Basis
Interest
Recognized
|
||||||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
$
|
1,750
|
|
|
$
|
90
|
|
|
$
|
90
|
|
Commercial mortgage
|
6,586
|
|
|
119
|
|
|
119
|
|
|||
Residential real estate
|
191
|
|
|
13
|
|
|
13
|
|
|||
Overdrafts
|
0
|
|
|
0
|
|
|
0
|
|
|||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
4,919
|
|
|
208
|
|
|
208
|
|
|||
Commercial mortgage
|
3,985
|
|
|
158
|
|
|
158
|
|
|||
Residential real estate
|
294
|
|
|
11
|
|
|
11
|
|
|||
Overdrafts
|
0
|
|
|
0
|
|
|
0
|
|
|||
Total
|
$
|
17,725
|
|
|
$
|
599
|
|
|
$
|
599
|
|
|
Year Ended December 31, 2018
|
||||||||||
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Cash Basis
Interest
Recognized
|
||||||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
$
|
2,745
|
|
|
$
|
254
|
|
|
$
|
249
|
|
Commercial mortgage
|
8,456
|
|
|
338
|
|
|
326
|
|
|||
Residential real estate
|
304
|
|
|
20
|
|
|
19
|
|
|||
Overdrafts
|
2
|
|
|
0
|
|
|
0
|
|
|||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
4,642
|
|
|
157
|
|
|
148
|
|
|||
Commercial mortgage
|
4,566
|
|
|
146
|
|
|
144
|
|
|||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
|||
Total
|
$
|
20,715
|
|
|
$
|
915
|
|
|
$
|
886
|
|
|
Year Ended December 31, 2017
|
||||||||||
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Cash Basis
Interest
Recognized
|
||||||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
$
|
1,513
|
|
|
$
|
97
|
|
|
$
|
97
|
|
Commercial mortgage
|
11,944
|
|
|
327
|
|
|
327
|
|
|||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
|||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial, industrial, and agricultural
|
2,438
|
|
|
114
|
|
|
114
|
|
|||
Commercial mortgage
|
2,474
|
|
|
122
|
|
|
122
|
|
|||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
|||
Total
|
$
|
18,369
|
|
|
$
|
660
|
|
|
$
|
660
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Nonaccrual
|
|
Past Due
Over 90 Days
Still on Accrual
|
|
Nonaccrual
|
|
Past Due
Over 90 Days
Still on Accrual
|
||||||||
Commercial, industrial, and agricultural
|
$
|
11,644
|
|
|
$
|
0
|
|
|
$
|
2,076
|
|
|
487
|
|
|
Commercial mortgages
|
4,533
|
|
|
0
|
|
|
6,329
|
|
|
53
|
|
||||
Residential real estate
|
4,724
|
|
|
59
|
|
|
5,187
|
|
|
299
|
|
||||
Consumer
|
835
|
|
|
0
|
|
|
670
|
|
|
43
|
|
||||
Credit cards
|
0
|
|
|
2
|
|
|
0
|
|
|
5
|
|
||||
Total
|
$
|
21,736
|
|
|
$
|
61
|
|
|
$
|
14,262
|
|
|
$
|
887
|
|
December 31, 2019
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater Than
89 Days
Past Due
|
|
Total
Past Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
Commercial, industrial, and agricultural
|
$
|
1,273
|
|
|
$
|
548
|
|
|
$
|
3,784
|
|
|
$
|
5,605
|
|
|
$
|
1,041,060
|
|
|
$
|
1,046,665
|
|
Commercial mortgages
|
162
|
|
|
183
|
|
|
2,594
|
|
|
2,939
|
|
|
811,063
|
|
|
814,002
|
|
||||||
Residential real estate
|
3,383
|
|
|
1,270
|
|
|
2,714
|
|
|
7,367
|
|
|
806,663
|
|
|
814,030
|
|
||||||
Consumer
|
412
|
|
|
311
|
|
|
415
|
|
|
1,138
|
|
|
123,647
|
|
|
124,785
|
|
||||||
Credit cards
|
48
|
|
|
54
|
|
|
2
|
|
|
104
|
|
|
7,465
|
|
|
7,569
|
|
||||||
Overdrafts
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
2,146
|
|
|
2,146
|
|
||||||
Total
|
$
|
5,278
|
|
|
$
|
2,366
|
|
|
$
|
9,509
|
|
|
$
|
17,153
|
|
|
$
|
2,792,044
|
|
|
$
|
2,809,197
|
|
December 31, 2018
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater Than
89 Days
Past Due
|
|
Total
Past Due
|
|
Loans Not
Past Due
|
|
Total
|
||||||||||||
Commercial, industrial, and agricultural
|
$
|
2,339
|
|
|
$
|
9
|
|
|
$
|
2,264
|
|
|
$
|
4,612
|
|
|
$
|
911,685
|
|
|
$
|
916,297
|
|
Commercial mortgages
|
758
|
|
|
3,055
|
|
|
283
|
|
|
4,096
|
|
|
693,680
|
|
|
697,776
|
|
||||||
Residential real estate
|
3,982
|
|
|
1,257
|
|
|
3,988
|
|
|
9,227
|
|
|
762,082
|
|
|
771,309
|
|
||||||
Consumer
|
470
|
|
|
282
|
|
|
363
|
|
|
1,115
|
|
|
84,920
|
|
|
86,035
|
|
||||||
Credit cards
|
59
|
|
|
15
|
|
|
5
|
|
|
79
|
|
|
7,544
|
|
|
7,623
|
|
||||||
Overdrafts
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
308
|
|
|
308
|
|
||||||
Total
|
$
|
7,608
|
|
|
$
|
4,618
|
|
|
$
|
6,903
|
|
|
$
|
19,129
|
|
|
$
|
2,460,219
|
|
|
$
|
2,479,348
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
Number of
Loans
|
|
Loan
Balance
|
|
Specific
Reserve
|
|
Number of
Loans
|
|
Loan
Balance
|
|
Specific
Reserve
|
||||||||||
Commercial, industrial, and agricultural
|
10
|
|
|
$
|
3,093
|
|
|
$
|
28
|
|
|
10
|
|
|
$
|
4,577
|
|
|
$
|
104
|
|
Commercial mortgages
|
13
|
|
|
6,709
|
|
|
330
|
|
|
15
|
|
|
10,049
|
|
|
4,450
|
|
||||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
Consumer
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
Credit cards
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
|
||||
Total
|
23
|
|
|
$
|
9,802
|
|
|
$
|
358
|
|
|
25
|
|
|
$
|
14,626
|
|
|
$
|
4,554
|
|
|
Year Ended December 31, 2019
|
|||||||||
|
Number of
Loans
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|||||
Commercial, industrial, and agricultural
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Commercial mortgages
|
1
|
|
|
383
|
|
|
383
|
|
||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
||
Consumer
|
0
|
|
|
0
|
|
|
0
|
|
||
Credit cards
|
0
|
|
|
0
|
|
|
0
|
|
||
Total
|
1
|
|
|
$
|
383
|
|
|
$
|
383
|
|
|
Year Ended December 31, 2018
|
|||||||||
|
Number of
Loans
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|||||
Commercial, industrial, and agricultural
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Commercial mortgages
|
5
|
|
|
1,570
|
|
|
1,570
|
|
||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
||
Consumer
|
0
|
|
|
0
|
|
|
0
|
|
||
Credit cards
|
0
|
|
|
0
|
|
|
0
|
|
||
Total
|
5
|
|
|
$
|
1,570
|
|
|
$
|
1,570
|
|
|
Year Ended December 31, 2017
|
|||||||||
|
Number of
Loans
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|||||
Commercial, industrial, and agricultural
|
4
|
|
|
$
|
2,750
|
|
|
$
|
2,750
|
|
Commercial mortgages
|
2
|
|
|
6,421
|
|
|
6,421
|
|
||
Residential real estate
|
0
|
|
|
0
|
|
|
0
|
|
||
Consumer
|
0
|
|
|
0
|
|
|
0
|
|
||
Credit cards
|
0
|
|
|
0
|
|
|
0
|
|
||
Total
|
6
|
|
|
$
|
9,171
|
|
|
$
|
9,171
|
|
December 31, 2019
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial, industrial, and agricultural
|
$
|
1,004,445
|
|
|
$
|
16,696
|
|
|
$
|
25,524
|
|
|
$
|
0
|
|
|
$
|
1,046,665
|
|
Commercial mortgages
|
780,798
|
|
|
18,837
|
|
|
14,367
|
|
|
0
|
|
|
814,002
|
|
|||||
Total
|
$
|
1,785,243
|
|
|
$
|
35,533
|
|
|
$
|
39,891
|
|
|
$
|
0
|
|
|
$
|
1,860,667
|
|
December 31, 2018
|
Pass
|
|
Special
Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial, industrial, and agricultural
|
$
|
890,360
|
|
|
$
|
10,484
|
|
|
$
|
15,453
|
|
|
$
|
0
|
|
|
$
|
916,297
|
|
Commercial mortgages
|
684,806
|
|
|
3,236
|
|
|
9,734
|
|
|
0
|
|
|
697,776
|
|
|||||
Total
|
$
|
1,575,166
|
|
|
$
|
13,720
|
|
|
$
|
25,187
|
|
|
$
|
0
|
|
|
$
|
1,614,073
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Residential
Real Estate
|
|
Consumer
|
|
Credit
Cards
|
|
Residential
Real Estate
|
|
Consumer
|
|
Credit
Cards
|
||||||||||||
Performing
|
$
|
809,247
|
|
|
$
|
123,950
|
|
|
$
|
7,567
|
|
|
$
|
765,823
|
|
|
$
|
85,322
|
|
|
$
|
7,618
|
|
Nonperforming
|
4,783
|
|
|
835
|
|
|
2
|
|
|
5,486
|
|
|
713
|
|
|
5
|
|
||||||
Total
|
$
|
814,030
|
|
|
$
|
124,785
|
|
|
$
|
7,569
|
|
|
$
|
771,309
|
|
|
$
|
86,035
|
|
|
$
|
7,623
|
|
|
2019
|
|
2018
|
||||
Consumer
|
$
|
28,122
|
|
|
$
|
26,568
|
|
Less: unearned discount
|
(5,162
|
)
|
|
(4,791
|
)
|
||
Total
|
$
|
22,960
|
|
|
$
|
21,777
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of year
|
$
|
418
|
|
|
$
|
710
|
|
|
$
|
1,015
|
|
Additions
|
2,066
|
|
|
228
|
|
|
630
|
|
|||
Sales (at carrying value)
|
(851
|
)
|
|
(520
|
)
|
|
(935
|
)
|
|||
Balance, end of year
|
$
|
1,633
|
|
|
$
|
418
|
|
|
$
|
710
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net gain on sale
|
$
|
(377
|
)
|
|
$
|
(310
|
)
|
|
$
|
(208
|
)
|
Operating expenses, net of rental income
|
316
|
|
|
283
|
|
|
366
|
|
|||
|
$
|
(61
|
)
|
|
$
|
(27
|
)
|
|
$
|
158
|
|
|
|
|
Fair Value Measurements at December 31, 2019 Using
|
||||||||||||
Description
|
Total
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Securities Available For Sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Government sponsored entities
|
$
|
127,094
|
|
|
$
|
0
|
|
|
$
|
127,094
|
|
|
$
|
0
|
|
States and political subdivisions
|
104,363
|
|
|
0
|
|
|
104,363
|
|
|
0
|
|
||||
Residential and multi-family mortgage
|
276,636
|
|
|
0
|
|
|
273,841
|
|
|
2,795
|
|
||||
Corporate notes and bonds
|
8,082
|
|
|
0
|
|
|
8,082
|
|
|
0
|
|
||||
Pooled SBA
|
25,174
|
|
|
0
|
|
|
25,174
|
|
|
0
|
|
||||
Other
|
964
|
|
|
964
|
|
|
0
|
|
|
0
|
|
||||
Total Securities Available For Sale
|
$
|
542,313
|
|
|
$
|
964
|
|
|
$
|
538,554
|
|
|
$
|
2,795
|
|
Interest rate swaps
|
$
|
1,877
|
|
|
$
|
0
|
|
|
$
|
1,877
|
|
|
$
|
0
|
|
Trading Securities:
|
|
|
|
|
|
|
|
||||||||
Corporate equity securities
|
$
|
7,946
|
|
|
$
|
7,946
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Mutual funds
|
807
|
|
|
807
|
|
|
0
|
|
|
0
|
|
||||
Certificates of deposit
|
350
|
|
|
350
|
|
|
0
|
|
|
0
|
|
||||
Corporate notes and bonds
|
655
|
|
|
655
|
|
|
0
|
|
|
0
|
|
||||
U.S. Government sponsored entities
|
51
|
|
|
0
|
|
|
51
|
|
|
0
|
|
||||
Total Trading Securities
|
$
|
9,809
|
|
|
$
|
9,758
|
|
|
$
|
51
|
|
|
$
|
0
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
(2,362
|
)
|
|
$
|
0
|
|
|
$
|
(2,362
|
)
|
|
$
|
0
|
|
|
|
|
Fair Value Measurements at December 31, 2018 Using
|
||||||||||||
Description
|
Total
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Securities Available For Sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Government sponsored entities
|
$
|
132,694
|
|
|
$
|
0
|
|
|
$
|
132,694
|
|
|
$
|
0
|
|
States and political subdivisions
|
136,031
|
|
|
0
|
|
|
136,031
|
|
|
0
|
|
||||
Residential and multi-family mortgage
|
206,053
|
|
|
0
|
|
|
206,053
|
|
|
0
|
|
||||
Corporate notes and bonds
|
11,777
|
|
|
0
|
|
|
11,777
|
|
|
0
|
|
||||
Pooled SBA
|
29,374
|
|
|
0
|
|
|
29,374
|
|
|
0
|
|
||||
Other
|
934
|
|
|
934
|
|
|
0
|
|
|
0
|
|
||||
Total Securities Available For Sale
|
$
|
516,863
|
|
|
$
|
934
|
|
|
$
|
515,929
|
|
|
$
|
0
|
|
Interest rate swaps
|
$
|
485
|
|
|
$
|
0
|
|
|
$
|
485
|
|
|
$
|
0
|
|
Trading Securities:
|
|
|
|
|
|
|
|
||||||||
Corporate equity securities
|
$
|
5,828
|
|
|
$
|
5,828
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Mutual funds
|
1,058
|
|
|
1,058
|
|
|
0
|
|
|
0
|
|
||||
Certificates of deposit
|
268
|
|
|
268
|
|
|
0
|
|
|
0
|
|
||||
Corporate notes and bonds
|
581
|
|
|
581
|
|
|
0
|
|
|
0
|
|
||||
U.S. Government sponsored entities
|
51
|
|
|
0
|
|
|
51
|
|
|
0
|
|
||||
Total Trading Securities
|
$
|
7,786
|
|
|
$
|
7,735
|
|
|
$
|
51
|
|
|
$
|
0
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
$
|
(686
|
)
|
|
$
|
0
|
|
|
$
|
(686
|
)
|
|
$
|
0
|
|
|
Residential and Multi-Family Mortgage
|
||
Balance, January 1, 2019
|
$
|
0
|
|
Purchases
|
2,796
|
|
|
Total gains or (losses):
|
|
||
Included in other comprehensive income (loss)
|
(1
|
)
|
|
Balance, December 31, 2019
|
$
|
2,795
|
|
|
Fair
value
|
|
Valuation
Technique
|
|
Unobservable Inputs
|
|
Range
(Weighted
Average)
|
Impaired loans – commercial, industrial, and agricultural
|
$2,910
|
|
Valuation of third party appraisal on underlying collateral
|
|
Loss severity rates
|
|
0%-100% (54%)
|
Impaired loans – commercial mortgages
|
$1,147
|
|
Valuation of third party appraisal on underlying collateral
|
|
Loss severity rates
|
|
25%-100% (52%)
|
|
Fair
value
|
|
Valuation
Technique
|
|
Unobservable Inputs
|
|
Range (Weighted
Average)
|
Impaired loans – commercial, industrial, and agricultural
|
$2,055
|
|
Valuation of third party appraisal on underlying collateral
|
|
Loss severity rates
|
|
20%-60% (34%)
|
Impaired loans – commercial mortgages
|
$679
|
|
Valuation of third party appraisal on underlying collateral
|
|
Loss severity rates
|
|
15%-39% (33%)
|
|
Carrying
Amount
|
|
Fair Value Measurement Using:
|
|
Total
Fair Value
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
192,974
|
|
|
$
|
192,974
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
192,974
|
|
Securities available for sale
|
542,313
|
|
|
964
|
|
|
538,554
|
|
|
2,795
|
|
|
542,313
|
|
|||||
Trading securities
|
9,809
|
|
|
9,758
|
|
|
51
|
|
|
0
|
|
|
9,809
|
|
|||||
Loans held for sale
|
930
|
|
|
0
|
|
|
933
|
|
|
0
|
|
|
933
|
|
|||||
Net loans
|
2,784,562
|
|
|
0
|
|
|
0
|
|
|
2,765,133
|
|
|
2,765,133
|
|
|||||
FHLB and other equity interests
|
27,868
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
Interest rate swaps
|
1,877
|
|
|
0
|
|
|
1,877
|
|
|
0
|
|
|
1,877
|
|
|||||
Accrued interest receivable
|
11,486
|
|
|
6
|
|
|
3,238
|
|
|
8,242
|
|
|
11,486
|
|
|||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
(3,102,327
|
)
|
|
$
|
(2,674,511
|
)
|
|
$
|
(432,287
|
)
|
|
$
|
0
|
|
|
$
|
(3,106,798
|
)
|
FHLB and other borrowings
|
(227,907
|
)
|
|
0
|
|
|
(230,679
|
)
|
|
0
|
|
|
(230,679
|
)
|
|||||
Subordinated debentures
|
(70,620
|
)
|
|
0
|
|
|
(64,084
|
)
|
|
0
|
|
|
(64,084
|
)
|
|||||
Interest rate swaps
|
(2,362
|
)
|
|
0
|
|
|
(2,362
|
)
|
|
0
|
|
|
(2,362
|
)
|
|||||
Accrued interest payable
|
(1,597
|
)
|
|
0
|
|
|
(1,597
|
)
|
|
0
|
|
|
(1,597
|
)
|
|
Carrying
Amount
|
|
Fair Value Measurement Using:
|
|
Total
Fair Value
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
45,563
|
|
|
$
|
45,563
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
45,563
|
|
Securities available for sale
|
516,863
|
|
|
934
|
|
|
515,929
|
|
|
0
|
|
|
516,863
|
|
|||||
Trading securities
|
7,786
|
|
|
7,735
|
|
|
51
|
|
|
0
|
|
|
7,786
|
|
|||||
Loans held for sale
|
367
|
|
|
0
|
|
|
368
|
|
|
0
|
|
|
368
|
|
|||||
Net loans
|
2,454,853
|
|
|
0
|
|
|
0
|
|
|
2,433,417
|
|
|
2,433,417
|
|
|||||
FHLB and other equity interests
|
24,508
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|||||
Interest rate swaps
|
485
|
|
|
0
|
|
|
485
|
|
|
0
|
|
|
485
|
|
|||||
Accrued interest receivable
|
10,843
|
|
|
6
|
|
|
3,368
|
|
|
7,469
|
|
|
10,843
|
|
|||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
(2,610,786
|
)
|
|
$
|
(2,215,349
|
)
|
|
$
|
(397,370
|
)
|
|
$
|
0
|
|
|
$
|
(2,612,719
|
)
|
FHLB and other borrowings
|
(245,117
|
)
|
|
0
|
|
|
(242,592
|
)
|
|
0
|
|
|
(242,592
|
)
|
|||||
Subordinated debentures
|
(70,620
|
)
|
|
0
|
|
|
(65,794
|
)
|
|
0
|
|
|
(65,794
|
)
|
|||||
Interest rate swaps
|
(686
|
)
|
|
0
|
|
|
(686
|
)
|
|
0
|
|
|
(686
|
)
|
|||||
Accrued interest payable
|
(1,349
|
)
|
|
0
|
|
|
(1,349
|
)
|
|
0
|
|
|
(1,349
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Loans originated for resale
|
$
|
43,458
|
|
|
$
|
22,990
|
|
|
$
|
25,231
|
|
Proceeds from sales of loans held for sale
|
43,198
|
|
|
23,311
|
|
|
24,285
|
|
|||
Net gains on sales of loans held for sale
|
990
|
|
|
624
|
|
|
545
|
|
|||
Loan servicing fees
|
634
|
|
|
600
|
|
|
563
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of year
|
$
|
1,495
|
|
|
$
|
1,387
|
|
|
$
|
1,391
|
|
Additions
|
292
|
|
|
315
|
|
|
198
|
|
|||
Servicing rights acquired
|
0
|
|
|
0
|
|
|
0
|
|
|||
Amortization
|
(214
|
)
|
|
(207
|
)
|
|
(202
|
)
|
|||
Balance, end of year
|
$
|
1,573
|
|
|
$
|
1,495
|
|
|
$
|
1,387
|
|
|
2019
|
|
2018
|
||||
Land
|
$
|
8,301
|
|
|
$
|
8,301
|
|
Premises and leasehold improvements
|
57,131
|
|
|
52,810
|
|
||
Furniture and equipment
|
30,853
|
|
|
27,548
|
|
||
Construction in process
|
2,747
|
|
|
1,283
|
|
||
|
99,032
|
|
|
89,942
|
|
||
Less: accumulated depreciation
|
44,165
|
|
|
40,022
|
|
||
Premises and equipment, net
|
$
|
54,867
|
|
|
$
|
49,920
|
|
Leases
|
|
Classification
|
|
December 31, 2019
|
||
Assets:
|
|
|
|
|
||
Operating lease assets
|
|
Operating lease assets
|
|
$
|
18,422
|
|
Finance lease assets
|
|
Premises and equipment, net (1)
|
|
501
|
|
|
Total leased assets
|
|
|
|
$
|
18,923
|
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
||
Operating lease liabilities
|
|
Operating lease liabilities
|
|
$
|
19,363
|
|
Finance lease liabilities
|
|
Accrued interest payable and other liabilities
|
|
629
|
|
|
Total leased liabilities
|
|
|
|
$
|
19,992
|
|
Lease Cost
|
|
Classification
|
|
December 31, 2019
|
||
Operating lease cost
|
|
Net occupancy expense
|
|
$
|
1,666
|
|
Variable lease cost
|
|
Net occupancy expense
|
|
98
|
|
|
Finance lease cost:
|
|
|
|
|
||
Amortization of leased assets
|
|
Net occupancy expense
|
|
72
|
|
|
Interest on lease liabilities
|
|
Interest expense - borrowed funds
|
|
30
|
|
|
Sublease income (1)
|
|
Net occupancy expense
|
|
(83
|
)
|
|
Net lease cost
|
|
|
|
$
|
1,783
|
|
Maturity of Lease Liabilities as of December 31, 2019
|
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
2020
|
|
$
|
1,533
|
|
|
$
|
105
|
|
|
$
|
1,638
|
|
2021
|
|
1,586
|
|
|
105
|
|
|
1,691
|
|
|||
2022
|
|
1,630
|
|
|
105
|
|
|
1,735
|
|
|||
2023
|
|
1,518
|
|
|
105
|
|
|
1,623
|
|
|||
2024
|
|
1,487
|
|
|
105
|
|
|
1,592
|
|
|||
After 2024
|
|
19,373
|
|
|
209
|
|
|
19,582
|
|
|||
Total lease payments
|
|
27,127
|
|
|
734
|
|
|
27,861
|
|
|||
Less: Interest
|
|
7,764
|
|
|
105
|
|
|
7,869
|
|
|||
Present value of lease liabilities
|
|
$
|
19,363
|
|
|
$
|
629
|
|
|
$
|
19,992
|
|
Lease Term and Discount Rate
|
|
December 31, 2019
|
|
Weighted-average remaining lease term (years)
|
|
|
|
Operating leases
|
|
18.7
|
|
Finance leases
|
|
7.0
|
|
|
|
|
|
Weighted-average discount rate
|
|
|
|
Operating leases
|
|
3.52
|
%
|
Finance leases
|
|
4.49
|
%
|
Other Information
|
|
December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
757
|
|
|
2019
|
|
2018
|
||||
Balance, beginning of year
|
$
|
38,730
|
|
|
$
|
38,730
|
|
Acquired during the year
|
0
|
|
|
0
|
|
||
Balance, end of year
|
$
|
38,730
|
|
|
$
|
38,730
|
|
Time deposits maturing:
|
|
||
2020
|
$
|
118,695
|
|
2021
|
138,640
|
|
|
2022
|
147,423
|
|
|
2023
|
10,000
|
|
|
2024
|
3,395
|
|
|
Thereafter
|
9,663
|
|
|
|
$
|
427,816
|
|
|
|
2019
|
|
2018
|
||||
Maturities range from 6/29/2020 through 2/11/2033; rates fixed at a range of 1.27% to 5.24%; weighted average rate is 2.13% as of December 31, 2019. Maturities range from 6/28/2019 through 2/11/2033; rates fixed at a range of 1.17% to 5.24%; weighted average rate is 2.06% as of December 31, 2018.
|
|
$
|
227,907
|
|
|
$
|
245,117
|
|
Open Repo borrowing at an interest rate of 1.81% at December 31, 2019. The maximum amount of the Open Repo borrowing available is $150,000.
|
|
0
|
|
|
0
|
|
||
Total
|
|
$
|
227,907
|
|
|
$
|
245,117
|
|
2020
|
$
|
37,505
|
|
2021
|
33,740
|
|
|
2022
|
72,931
|
|
|
2023
|
51,244
|
|
|
2024
|
31,256
|
|
|
Thereafter
|
71,851
|
|
|
Total borrowed funds
|
$
|
298,527
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Benefit obligation at beginning of year
|
$
|
2,427
|
|
|
$
|
2,740
|
|
|
$
|
3,409
|
|
Interest cost
|
89
|
|
|
83
|
|
|
114
|
|
|||
Service cost
|
74
|
|
|
87
|
|
|
103
|
|
|||
Actual claims
|
(42
|
)
|
|
(79
|
)
|
|
(78
|
)
|
|||
Actuarial (gain) loss
|
(518
|
)
|
|
(404
|
)
|
|
(808
|
)
|
|||
Benefit obligation at end of year
|
$
|
2,030
|
|
|
$
|
2,427
|
|
|
$
|
2,740
|
|
|
2019
|
|
2018
|
||||
Net actuarial gain (loss)
|
$
|
158
|
|
|
$
|
(383
|
)
|
Tax effect
|
(34
|
)
|
|
79
|
|
||
|
$
|
124
|
|
|
$
|
(304
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Service cost
|
$
|
74
|
|
|
$
|
87
|
|
|
$
|
103
|
|
Interest cost
|
89
|
|
|
83
|
|
|
114
|
|
|||
Net amortization of transition obligation and actuarial loss
|
23
|
|
|
84
|
|
|
192
|
|
|||
Net periodic benefit cost
|
186
|
|
|
254
|
|
|
409
|
|
|||
Net gain
|
(518
|
)
|
|
(404
|
)
|
|
(808
|
)
|
|||
Amortization
|
(23
|
)
|
|
(84
|
)
|
|
(192
|
)
|
|||
Total recognized in other comprehensive income
|
(541
|
)
|
|
(488
|
)
|
|
(1,000
|
)
|
|||
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
(355
|
)
|
|
$
|
(234
|
)
|
|
$
|
(591
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of year
|
$
|
2,408
|
|
|
$
|
2,503
|
|
|
$
|
2,080
|
|
Deferrals, dividends, and changes in fair value recorded as an expense
|
904
|
|
|
64
|
|
|
444
|
|
|||
Deferred compensation payments
|
(78
|
)
|
|
(159
|
)
|
|
(21
|
)
|
|||
Balance, end of year
|
$
|
3,234
|
|
|
$
|
2,408
|
|
|
$
|
2,503
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current – federal
|
$
|
8,265
|
|
|
$
|
7,520
|
|
|
$
|
8,978
|
|
Current – state
|
499
|
|
|
66
|
|
|
29
|
|
|||
Deferred – federal
|
(204
|
)
|
|
(1,076
|
)
|
|
376
|
|
|||
Deferred tax adjustment related to reduction in U.S. federal statutory income tax rate
|
0
|
|
|
0
|
|
|
3,009
|
|
|||
Income tax expense
|
$
|
8,560
|
|
|
$
|
6,510
|
|
|
$
|
12,392
|
|
|
2019
|
|
%
|
|
2018
|
|
%
|
|
2017
|
|
%
|
|||||||||
Tax at statutory rate
|
$
|
10,214
|
|
|
21.0
|
|
|
$
|
8,448
|
|
|
21.0
|
|
|
$
|
12,688
|
|
|
35.0
|
|
Tax exempt income, net
|
(1,382
|
)
|
|
(2.8
|
)
|
|
(1,403
|
)
|
|
(3.5
|
)
|
|
(1,899
|
)
|
|
(5.2
|
)
|
|||
Deferred tax adjustment related to reduction in U.S. federal statutory income tax rate
|
0
|
|
|
0.0
|
|
|
0
|
|
|
0.0
|
|
|
3,009
|
|
|
8.3
|
|
|||
Bank owned life insurance
|
(276
|
)
|
|
(0.6
|
)
|
|
(296
|
)
|
|
(0.7
|
)
|
|
(581
|
)
|
|
(1.6
|
)
|
|||
Other
|
4
|
|
|
0.0
|
|
|
(239
|
)
|
|
(0.6
|
)
|
|
(825
|
)
|
|
(2.3
|
)
|
|||
Income tax expense
|
$
|
8,560
|
|
|
17.6
|
|
|
$
|
6,510
|
|
|
16.2
|
|
|
$
|
12,392
|
|
|
34.2
|
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
4,014
|
|
|
$
|
3,088
|
|
Fair value adjustments – business combination
|
854
|
|
|
966
|
|
||
Deferred compensation
|
2,405
|
|
|
2,056
|
|
||
Post-retirement benefits
|
754
|
|
|
836
|
|
||
Unrealized loss on interest rate swap
|
102
|
|
|
42
|
|
||
Nonaccrual loan interest
|
557
|
|
|
589
|
|
||
Accrued expenses
|
1,210
|
|
|
1,254
|
|
||
Deferred fees and costs
|
472
|
|
|
588
|
|
||
Unrealized loss on securities available for sale
|
0
|
|
|
940
|
|
||
Operating lease liability
|
4,216
|
|
|
0
|
|
||
Other
|
381
|
|
|
366
|
|
||
|
14,965
|
|
|
10,725
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Unrealized gain on securities available for sale
|
1,913
|
|
|
0
|
|
||
Premises and equipment
|
2,089
|
|
|
1,459
|
|
||
Unrealized gain on trading securities
|
340
|
|
|
63
|
|
||
Intangibles – section 197
|
2,305
|
|
|
2,414
|
|
||
Mortgage servicing rights
|
330
|
|
|
314
|
|
||
Operating lease asset
|
4,136
|
|
|
0
|
|
||
Other
|
259
|
|
|
178
|
|
||
|
11,372
|
|
|
4,428
|
|
||
Net deferred tax asset
|
$
|
3,593
|
|
|
$
|
6,297
|
|
|
Shares
|
|
Weighted-average
Grant Date
Fair Value
|
|||
Nonvested at January 1, 2019
|
75,889
|
|
|
$
|
20.79
|
|
Granted
|
27,128
|
|
|
25.41
|
|
|
Forfeited
|
(2,699
|
)
|
|
24.85
|
|
|
Vested
|
(41,948
|
)
|
|
22.05
|
|
|
Nonvested at December 31, 2019
|
58,370
|
|
|
$
|
24.96
|
|
|
Actual
|
|
For Capital
Adequacy Purposes
|
|
To Be Well Capitalized
Under Prompt Corrective
Action Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to Risk Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
350,806
|
|
|
12.51
|
%
|
|
$
|
294,407
|
|
|
10.500
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
330,321
|
|
|
11.87
|
%
|
|
$
|
292,271
|
|
|
10.500
|
%
|
|
$
|
292,271
|
|
|
10.50
|
%
|
Tier 1 (Core) Capital to Risk Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
281,333
|
|
|
10.03
|
%
|
|
$
|
238,330
|
|
|
8.500
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
312,795
|
|
|
11.24
|
%
|
|
$
|
236,600
|
|
|
8.500
|
%
|
|
$
|
236,600
|
|
|
8.50
|
%
|
Common equity Tier 1 to Risk Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
261,333
|
|
|
9.32
|
%
|
|
$
|
196,272
|
|
|
7.000
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
305,416
|
|
|
10.97
|
%
|
|
$
|
194,847
|
|
|
7.000
|
%
|
|
$
|
194,847
|
|
|
7.00
|
%
|
Tier 1 (Core) Capital to Average Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
281,333
|
|
|
7.86
|
%
|
|
$
|
143,189
|
|
|
4.00
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
312,795
|
|
|
8.79
|
%
|
|
$
|
142,301
|
|
|
4.00
|
%
|
|
$
|
177,876
|
|
|
5.00
|
%
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Capital to Risk Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
319,340
|
|
|
13.21
|
%
|
|
$
|
238,719
|
|
|
9.875
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
302,627
|
|
|
12.59
|
%
|
|
$
|
237,325
|
|
|
9.875
|
%
|
|
$
|
240,329
|
|
|
10.00
|
%
|
Tier 1 (Core) Capital to Risk Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
249,636
|
|
|
10.33
|
%
|
|
$
|
190,371
|
|
|
7.875
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
284,722
|
|
|
11.85
|
%
|
|
$
|
189,259
|
|
|
7.875
|
%
|
|
$
|
192,263
|
|
|
8.00
|
%
|
Common equity Tier 1 to Risk Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
229,636
|
|
|
9.50
|
%
|
|
$
|
154,110
|
|
|
6.375
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
277,343
|
|
|
11.54
|
%
|
|
$
|
153,210
|
|
|
6.375
|
%
|
|
$
|
156,214
|
|
|
6.50
|
%
|
Tier 1 (Core) Capital to Average Assets
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Consolidated
|
$
|
249,636
|
|
|
7.87
|
%
|
|
$
|
126,882
|
|
|
4.000
|
%
|
|
N/A
|
|
|
|
||
Bank
|
$
|
284,722
|
|
|
9.12
|
%
|
|
$
|
124,903
|
|
|
4.000
|
%
|
|
$
|
156,128
|
|
|
5.00
|
%
|
As of December 31
|
Liability Derivative
|
|
|
|||
|
Balance Sheet
|
Fair value
|
|
|
|
|
|
Location
|
2019
|
2018
|
|
|
|
Interest rate contract
|
Accrued interest payable and other liabilities
|
$(485)
|
$(201)
|
|
|
|
For the Year Ended December 31, 2019
|
(a)
|
(b)
|
|
(c)
|
(d)
|
(e)
|
Interest rate contract
|
$(225)
|
Interest expense – subordinated debentures
|
$(63)
|
Other
income |
$0
|
|
For the Year Ended December 31, 2018
|
|
|
|
|
|
|
Interest rate contract
|
$(32)
|
Interest expense – subordinated
debentures |
$(164)
|
Other
income |
$0
|
|
For the Year Ended December 31, 2017
|
|
|
|
|
|
|
Interest rate contract
|
$194
|
Interest expense – subordinated debentures
|
$(288)
|
Other
income |
$0
|
(a)
|
Amount of Gain or (Loss) Recognized in Other Comprehensive Loss on Derivative (Effective Portion), net of tax
|
(b)
|
Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)
|
(c)
|
Amount of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)
|
(d)
|
Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
(e)
|
Amount of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
|
|
Notional
Amount
|
|
Average
Maturity
(in years)
|
|
Weighted
Average
Fixed Rate
|
|
Weighted
Average Variable Rate
|
|
Fair
Value
|
|||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|||
3rd Party interest rate swaps
|
$
|
35,382
|
|
|
7.7
|
|
4.13
|
%
|
|
1 month LIBOR + 2.27%
|
|
1,877 (a)
|
Customer interest rate swaps
|
(35,382
|
)
|
|
7.7
|
|
4.13
|
%
|
|
1 month LIBOR + 2.27%
|
|
(1,877) (b)
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|||
3rd Party interest rate swaps
|
$
|
23,152
|
|
|
7.2
|
|
3.85
|
%
|
|
1 month LIBOR + 2.24%
|
|
485 (a)
|
Customer interest rate swaps
|
(23,152
|
)
|
|
7.2
|
|
3.85
|
%
|
|
1 month LIBOR + 2.24%
|
|
(485) (b)
|
(a)
|
Reported in accrued interest receivable and other assets within the consolidated balance sheets
|
(b)
|
Reported in accrued interest payable and other liabilities within the consolidated balance sheets
|
|
2019
|
|
2018
|
||||||||||||
|
Fixed Rate
|
|
Variable Rate
|
|
Fixed Rate
|
|
Variable Rate
|
||||||||
Commitments to make loans
|
$
|
21,375
|
|
|
$
|
184,106
|
|
|
$
|
46,265
|
|
|
$
|
191,803
|
|
Unused lines of credit
|
14,637
|
|
|
446,407
|
|
|
14,390
|
|
|
429,456
|
|
||||
Standby letters of credit
|
14,503
|
|
|
824
|
|
|
14,831
|
|
|
1,479
|
|
CONDENSED BALANCE SHEETS
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
||||
Cash
|
$
|
750
|
|
|
$
|
355
|
|
Trading securities
|
683
|
|
|
623
|
|
||
Investment in bank subsidiary
|
349,307
|
|
|
310,574
|
|
||
Investment in non-bank subsidiaries
|
24,606
|
|
|
20,686
|
|
||
Deferreds and current receivable
|
1,576
|
|
|
1,459
|
|
||
Other assets
|
1,479
|
|
|
1,749
|
|
||
Total assets
|
$
|
378,401
|
|
|
$
|
335,446
|
|
Liabilities
|
|
|
|
||||
Borrowings from subsidiary
|
$
|
850
|
|
|
$
|
200
|
|
Subordinated debentures
|
70,620
|
|
|
70,620
|
|
||
Other liabilities
|
1,965
|
|
|
1,796
|
|
||
Total liabilities
|
73,435
|
|
|
72,616
|
|
||
Stockholders' equity
|
304,966
|
|
|
262,830
|
|
||
Total liabilities and stockholders' equity
|
$
|
378,401
|
|
|
$
|
335,446
|
|
CONDENSED STATEMENTS OF INCOME
|
Year Ended December 31,
|
||||||||||
Income:
|
2019
|
|
2018
|
|
2017
|
||||||
Dividends from:
|
|
|
|
|
|
||||||
Bank subsidiary
|
$
|
12,696
|
|
|
$
|
12,029
|
|
|
$
|
8,840
|
|
Non-bank subsidiaries
|
0
|
|
|
3,000
|
|
|
2,250
|
|
|||
Other
|
232
|
|
|
212
|
|
|
220
|
|
|||
Total income
|
12,928
|
|
|
15,241
|
|
|
11,310
|
|
|||
Expenses
|
(5,518
|
)
|
|
(5,184
|
)
|
|
(4,957
|
)
|
|||
Income before income taxes and equity in undistributed net income of subsidiaries:
|
7,410
|
|
|
10,057
|
|
|
6,353
|
|
|||
Income tax benefit
|
1,177
|
|
|
1,116
|
|
|
1,614
|
|
|||
Equity in undistributed net income of bank subsidiary
|
27,580
|
|
|
24,031
|
|
|
17,430
|
|
|||
Equity in undistributed (distributions in excess) of net income of non-bank subsidiaries
|
3,914
|
|
|
(1,485
|
)
|
|
(1,537
|
)
|
|||
Net income
|
$
|
40,081
|
|
|
$
|
33,719
|
|
|
$
|
23,860
|
|
CONDENSED STATEMENTS OF CASH FLOWS
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
|
|
|
|
||||||
Adjustments to reconcile net income to net cash provided by
|
$
|
40,081
|
|
|
$
|
33,719
|
|
|
$
|
23,860
|
|
operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed net income of bank subsidiary
|
(27,580
|
)
|
|
(24,031
|
)
|
|
(17,430
|
)
|
|||
(Equity in undistributed) distributions in excess of net income of non–bank subsidiaries
|
(3,914
|
)
|
|
1,485
|
|
|
1,537
|
|
|||
Net unrealized gains on trading securities
|
(24
|
)
|
|
0
|
|
|
(12
|
)
|
|||
Decrease (increase) in other assets
|
177
|
|
|
872
|
|
|
(549
|
)
|
|||
Increase in other liabilities
|
1,267
|
|
|
1,089
|
|
|
830
|
|
|||
Net cash provided by operating activities
|
10,007
|
|
|
13,134
|
|
|
8,236
|
|
|||
Cash flows from investing activities
|
|
|
|
|
|
||||||
Purchase of trading securities
|
(36
|
)
|
|
(44
|
)
|
|
(39
|
)
|
|||
Investment in non-bank subsidiaries
|
0
|
|
|
(400
|
)
|
|
0
|
|
|||
Investment in bank subsidiaries
|
0
|
|
|
0
|
|
|
(15,400
|
)
|
|||
Net cash used in investing activities
|
(36
|
)
|
|
(444
|
)
|
|
(15,439
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Dividends paid
|
(10,358
|
)
|
|
(10,237
|
)
|
|
(10,094
|
)
|
|||
Purchase of treasury stock
|
(1,291
|
)
|
|
(2,454
|
)
|
|
(1,877
|
)
|
|||
Net proceeds from issuance of common stock
|
1,423
|
|
|
0
|
|
|
19,294
|
|
|||
Net advance (to) from subsidiary
|
650
|
|
|
(1,200
|
)
|
|
0
|
|
|||
Net cash provided by (used in) financing activities
|
(9,576
|
)
|
|
(13,891
|
)
|
|
7,323
|
|
|||
Net increase (decrease) in cash
|
395
|
|
|
(1,201
|
)
|
|
120
|
|
|||
Cash beginning of year
|
355
|
|
|
1,556
|
|
|
1,436
|
|
|||
Cash end of year
|
$
|
750
|
|
|
$
|
355
|
|
|
$
|
1,556
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Basic earnings per common share computation
|
|
|
|
|
|
||||||
Net income per consolidated statements of income
|
$
|
40,081
|
|
|
$
|
33,719
|
|
|
$
|
23,860
|
|
Net earnings allocated to participating securities
|
(147
|
)
|
|
(150
|
)
|
|
(135
|
)
|
|||
Net earnings allocated to common stock
|
$
|
39,934
|
|
|
$
|
33,569
|
|
|
$
|
23,725
|
|
Distributed earnings allocated to common stock
|
$
|
10,317
|
|
|
$
|
10,186
|
|
|
$
|
10,030
|
|
Undistributed earnings allocated to common stock
|
29,617
|
|
|
23,383
|
|
|
13,695
|
|
|||
Net earnings allocated to common stock
|
$
|
39,934
|
|
|
$
|
33,569
|
|
|
$
|
23,725
|
|
Weighted average common shares outstanding, including shares considered participating securities
|
15,219
|
|
|
15,274
|
|
|
15,212
|
|
|||
Less: Average participating securities
|
(55
|
)
|
|
(64
|
)
|
|
(80
|
)
|
|||
Weighted average shares
|
15,164
|
|
|
15,210
|
|
|
15,132
|
|
|||
Basic earnings per common share
|
$
|
2.63
|
|
|
$
|
2.21
|
|
|
$
|
1.57
|
|
Diluted earnings per common share computation
|
|
|
|
|
|
||||||
Net earnings allocated to common stock
|
$
|
39,934
|
|
|
$
|
33,569
|
|
|
$
|
23,725
|
|
Weighted average common shares outstanding for basic earnings per common share
|
15,164
|
|
|
15,210
|
|
|
15,132
|
|
|||
Add: Dilutive effects of assumed exercises of stock options
|
0
|
|
|
0
|
|
|
0
|
|
|||
Weighted average shares and dilutive potential common shares
|
15,164
|
|
|
15,210
|
|
|
15,132
|
|
|||
Diluted earnings per common share
|
$
|
2.63
|
|
|
$
|
2.21
|
|
|
$
|
1.57
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Unrealized holding gains (losses) on available for sale securities
|
$
|
13,732
|
|
|
$
|
(5,073
|
)
|
|
$
|
(136
|
)
|
Less reclassification adjustment for gains recognized in earnings
|
(148
|
)
|
|
0
|
|
|
(160
|
)
|
|||
Net unrealized gains (losses)
|
13,584
|
|
|
(5,073
|
)
|
|
(296
|
)
|
|||
Tax effect
|
(2,852
|
)
|
|
1,066
|
|
|
104
|
|
|||
Net-of-tax amount
|
10,732
|
|
|
(4,007
|
)
|
|
(192
|
)
|
|||
Unrealized holding gains (losses) on available for sale securities for which a portion of an other-than-temporary impairment has been recognized in earnings
|
0
|
|
|
0
|
|
|
134
|
|
|||
Less reclassification adjustment for gains recognized in earnings
|
0
|
|
|
0
|
|
|
(1,383
|
)
|
|||
Net unrealized gains
|
0
|
|
|
0
|
|
|
(1,249
|
)
|
|||
Tax effect
|
0
|
|
|
0
|
|
|
437
|
|
|||
Net-of-tax amount
|
0
|
|
|
0
|
|
|
(812
|
)
|
|||
Actuarial gain (loss) on postemployment health care plan
|
518
|
|
|
404
|
|
|
808
|
|
|||
Net amortization of transition obligation and actuarial gain
|
23
|
|
|
84
|
|
|
192
|
|
|||
Net unrealized gain (loss) on postemployment health care plan
|
541
|
|
|
488
|
|
|
1,000
|
|
|||
Tax effect
|
(113
|
)
|
|
(102
|
)
|
|
(175
|
)
|
|||
Net-of-tax amount
|
428
|
|
|
386
|
|
|
825
|
|
|||
Unrealized gain (loss) on interest rate swap
|
(347
|
)
|
|
(204
|
)
|
|
10
|
|
|||
Less reclassification adjustment for losses recognized in earnings
|
63
|
|
|
164
|
|
|
288
|
|
|||
Net unrealized gain (loss)
|
(284
|
)
|
|
(40
|
)
|
|
298
|
|
|||
Tax effect
|
59
|
|
|
8
|
|
|
(104
|
)
|
|||
Net-of-tax amount
|
(225
|
)
|
|
(32
|
)
|
|
194
|
|
|||
Other comprehensive income (loss)
|
$
|
10,935
|
|
|
$
|
(3,653
|
)
|
|
$
|
15
|
|
|
Balance
12/31/18
|
|
Comprehensive
Income (Loss)
|
|
Reclassification of
Disproportionate
Tax Effect
|
|
Balance
12/31/19
|
||||||||
Unrealized gains (losses) on securities available for sale
|
$
|
(3,534
|
)
|
|
$
|
10,732
|
|
|
$
|
0
|
|
|
$
|
7,198
|
|
Unrealized gain (loss) on postretirement benefits plan
|
(304
|
)
|
|
428
|
|
|
0
|
|
|
124
|
|
||||
Unrealized loss on interest rate swap
|
(158
|
)
|
|
(225
|
)
|
|
0
|
|
|
(383
|
)
|
||||
Total
|
$
|
(3,996
|
)
|
|
$
|
10,935
|
|
|
$
|
0
|
|
|
$
|
6,939
|
|
|
Balance
12/31/17
|
|
Comprehensive
Income (Loss)
|
|
Reclassification of
Disproportionate
Tax Effect
|
|
Balance
12/31/18
|
||||||||
Unrealized gains (losses) on securities available for sale
|
$
|
473
|
|
|
$
|
(4,007
|
)
|
|
$
|
0
|
|
|
$
|
(3,534
|
)
|
Unrealized gain (loss) on postretirement benefits plan
|
(690
|
)
|
|
386
|
|
|
0
|
|
|
(304
|
)
|
||||
Unrealized loss on interest rate swap
|
(126
|
)
|
|
(32
|
)
|
|
0
|
|
|
(158
|
)
|
||||
Total
|
$
|
(343
|
)
|
|
$
|
(3,653
|
)
|
|
$
|
0
|
|
|
$
|
(3,996
|
)
|
|
Balance
1/1/17
|
|
Comprehensive
Income (Loss)
|
|
Reclassification of
Disproportionate
Tax Effect
|
|
Balance
12/31/17
|
||||||||
Unrealized gains (losses) on securities available for sale
|
$
|
1,393
|
|
|
$
|
(1,004
|
)
|
|
$
|
84
|
|
|
$
|
473
|
|
Unrealized gain (loss) on postretirement benefits plan
|
(1,217
|
)
|
|
825
|
|
|
(298
|
)
|
|
(690
|
)
|
||||
Unrealized loss on interest rate swap
|
(297
|
)
|
|
194
|
|
|
(23
|
)
|
|
(126
|
)
|
||||
Total
|
$
|
(121
|
)
|
|
$
|
15
|
|
|
$
|
(237
|
)
|
|
$
|
(343
|
)
|
|
Quarters Ended in 2019
|
|
Quarters Ended in 2018
|
||||||||||||||||||||||||||||
|
Mar. 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
|
Mar. 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
||||||||||||||||
Total interest and dividend income
|
$
|
36,753
|
|
|
$
|
38,282
|
|
|
$
|
40,085
|
|
|
$
|
40,608
|
|
|
$
|
29,387
|
|
|
$
|
32,099
|
|
|
$
|
34,040
|
|
|
$
|
36,344
|
|
Net interest income
|
27,758
|
|
|
28,794
|
|
|
29,901
|
|
|
29,745
|
|
|
24,100
|
|
|
25,826
|
|
|
26,878
|
|
|
28,116
|
|
||||||||
Provision for loan losses
|
1,306
|
|
|
1,788
|
|
|
2,118
|
|
|
812
|
|
|
1,631
|
|
|
1,905
|
|
|
1,095
|
|
|
1,441
|
|
||||||||
Non-interest income
|
6,153
|
|
|
6,792
|
|
|
6,276
|
|
|
6,754
|
|
|
4,751
|
|
|
5,606
|
|
|
5,933
|
|
|
4,433
|
|
||||||||
Non-interest expense
|
21,175
|
|
|
21,984
|
|
|
21,444
|
|
|
22,905
|
|
|
18,999
|
|
|
19,543
|
|
|
20,794
|
|
|
20,006
|
|
||||||||
Net income
|
9,473
|
|
|
9,767
|
|
|
10,357
|
|
|
10,484
|
|
|
7,097
|
|
|
8,441
|
|
|
9,236
|
|
|
8,945
|
|
||||||||
Net income per share, basic
|
0.62
|
|
|
0.64
|
|
|
0.68
|
|
|
0.69
|
|
|
0.46
|
|
|
0.55
|
|
|
0.60
|
|
|
0.59
|
|
||||||||
Net income per share, diluted
|
0.62
|
|
|
0.64
|
|
|
0.68
|
|
|
0.69
|
|
|
0.46
|
|
|
0.55
|
|
|
0.60
|
|
|
0.59
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||
Non-interest Income
|
|
|
|
|
|
||||||
Service charges on deposit accounts
|
$
|
6,402
|
|
|
$
|
5,759
|
|
|
$
|
4,809
|
|
Wealth and asset management fees
|
4,627
|
|
|
4,172
|
|
|
3,724
|
|
|||
Mortgage banking (1)
|
1,412
|
|
|
1,019
|
|
|
906
|
|
|||
Card processing and interchange income
|
4,641
|
|
|
4,261
|
|
|
3,763
|
|
|||
Net realized gains on available-for-sale securities (1)
|
148
|
|
|
0
|
|
|
1,543
|
|
|||
Other income
|
8,745
|
|
|
5,512
|
|
|
6,690
|
|
|||
Total non-interest income
|
$
|
25,975
|
|
|
$
|
20,723
|
|
|
$
|
21,435
|
|
(1)
|
Not within scope of ASU 2014-9
|
(2)
|
The Corporation elected the modified retrospective approach of adoption; therefore, prior period balances are presented under legacy GAAP and may not be comparable to current year presentation.
|
|
|
/s/ Crowe LLP
|
Joseph B. Bower, Jr.
|
Tito L. Lima
|
President and Chief Executive Officer
|
Treasurer and Principal Financial Officer
|
|
|
Date: March 5, 2020
|
Date: March 5, 2020
|
Exhibit No.
|
|
Description
|
|
|
|
|
Agreement and Plan of Merger, dates as of December 18, 2019, by and among CNB Financial Corporation, CNB Bank and Bank of Akron (incorporated by reference to Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on December 18, 2019)
|
|
|
|
|
|
Second Amended and Restated Articles of Incorporation of CNB Financial Corporation (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on April 18, 2019)
|
|
|
|
|
|
Second Amended and Restated Bylaws of CNB Financial Corporation (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K filed on April 18, 2019)
|
|
|
|
|
|
Description of Registrant's Securities
|
|
|
|
|
|
CNB Financial Corporation 2019 Omnibus Incentive Plan(incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on April 18, 2019)
|
|
|
|
|
|
Executive Employment Agreement dated October 24, 2019 by and among CNB Financial Corporation, CNB Bank and Joseph B. Bower Jr. (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 25, 2019)
|
|
|
|
|
|
Executive Employment Contract, dated February 16, 2011 by and between CNB Bank and Mark D. Breakey (incorporated by reference to Exhibit 10.4 to the Registrant's Current Report on From 8-K filed on March 9, 2012)
|
|
|
|
|
|
Executive Employment Contract, dated February 8, 2012, by and between CNB Bank and Richard l. Greslick, Jr. (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on March 9, 2012)
|
|
|
|
|
|
Executive Employment Contract, dated September 23, 2013, by and between CNB Financial Corporation, CNB Bank and Joseph E. Dell, Jr. (incorporated by reference to Exhibit 10.7 to the Registrant's Current Report on Form 10-K filed on March 7, 2014)
|
|
|
|
|
|
List of subsidiaries of CNB Financial Corporation, filed herewith
|
|
|
|
|
|
Consent of Crowe LLP
|
|
|
|
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
Additional information mailed to stockholders with the Registrant's Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders and Annual Report on Form 10-K for the year ended December 31, 2019
|
|
|
|
|
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 Definitions Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Presentation Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
104
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
|
|
|
|
CNB FINANCIAL CORPORATION
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
March 5, 2020
|
|
By:
|
/s/ Joseph B. Bower, Jr.
|
|
|
|
|
JOSEPH B. BOWER, JR.
|
|
|
|
|
President & Chief Executive Officer
|
/s/ Joseph B. Bower, Jr.
|
|
/s/ Peter F. Smith
|
JOSEPH B. BOWER, JR.
|
|
PETER F. SMITH, Chairman
|
President and Director
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/s/ Richard L. Greslick, Jr.
|
|
/s/ Richard B. Seager
|
RICHARD L. GRESLICK, JR.
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RICHARD B. SEAGER, Director
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Secretary and Director
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/s/ Tito L. Lima
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/s/ Francis X. Straub, III
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TITO L. LIMA
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FRANCIS X. STRAUB, III, Director
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Treasurer
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(Principal Financial and Accounting Officer)
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/s/ Robert W. Montler
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/s/ Peter C. Varischetti
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ROBERT W. MONTLER, Director
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PETER C. VARISCHETTI, Director
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/s/ Joel E. Peterson
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/s/ Julie M. Young
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JOEL E. PETERSON, Director
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JULIE M. YOUNG, Director
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/s/ Deborah Dick Pontzer
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DEBORAH DICK PONTZER, Director
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/s/ Jeffrey S. Powell
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JEFFREY S. POWELL, Director
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/s/ Nicholas N. Scott
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NICHOLAS N. SCOTT, Director
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/s/ Crowe LLP
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Crowe LLP
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a)
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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;
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b)
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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;
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c)
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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
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d)
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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 four fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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a)
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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
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b)
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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.
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Date: March 5, 2020
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/s/ Joseph B. Bower, Jr.
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Joseph B. Bower, Jr.
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President and Chief Executive Officer
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(Principal Executive Officer)
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a)
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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;
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b)
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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;
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c)
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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
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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a)
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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
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b)
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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.
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Date: March 5, 2020
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/s/ Tito L. Lima
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Tito L. Lima
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Executive Vice President, Chief Financial Officer and Treasurer
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(Principal Financial Officer)
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/s/ Joseph B. Bower, Jr.
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Joseph B. Bower, Jr.
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Date: March 5, 2020
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President and Chief Executive Officer
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/s/ Tito L. Lima
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Tito L. Lima
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Dated: March 5, 2020
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Executive Vice President, Chief Financial Officer, and Treasurer
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