Form 10-K
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☒
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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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BRYN MAWR BANK CORPORATION
(Exact name of registrant as specified in its charter)
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Pennsylvania
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23-2434506
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(State of other jurisdiction of Incorporation or Organization)
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(I.R.S. Employer Identification Number)
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801 Lancaster Avenue, Bryn Mawr, Pennsylvania
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19010
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(Address of principal executive offices)
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(Zip Code)
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(Registrant’s telephone number, including area code) (610) 525-1700
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Title of each class
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Name of each exchange on which registered
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Common Stock ($1 par value)
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The
Nasdaq
Stock
Market
LLC
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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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*
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The registrant does not admit by virtue of the foregoing that its officers and directors are “affiliates” as defined in Rule 405.
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Item No.
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Page
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1.
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1A.
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1B.
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2.
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3.
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4.
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5.
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6.
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7.
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7A.
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8.
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9.
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9A.
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9B.
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10.
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11.
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12.
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13.
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14.
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15.
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•
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local, regional, national and international economic conditions, their impact on us and our customers, and our ability to assess those impacts;
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•
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our need for capital;
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reduced demand for our products and services, and lower revenues and earnings due to an economic recession;
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lower earnings due to other-than-temporary impairment charges related to our investment securities portfolios or other assets;
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•
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changes in monetary or fiscal policy, or existing statutes, regulatory guidance, legislation or judicial decisions, including those concerning banking, securities. insurance or taxes, that adversely affect our business, the financial services industry as a whole, the Corporation, or our subsidiaries individually or collectively;
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•
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changes in the level of non-performing assets and charge-offs;
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effectiveness of capital management strategies and activities;
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changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;
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other changes in accounting requirements or interpretations;
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the accuracy of assumptions underlying the establishment of provisions for loan and lease losses, estimates in the value of collateral, and various financial assets and liabilities;
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inflation, securities market and monetary fluctuations, including changes in the market values of financial assets and the stability of particular securities markets;
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changes in interest rates, spreads on interest-earning assets and interest-bearing liabilities, and interest rate sensitivity;
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prepayment speeds, loan originations and credit losses;
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changes in the value of our mortgage servicing rights;
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sources of liquidity and financial resources in the amounts, at the times, and on the terms required to support our future business;
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•
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results of examinations by the Federal Reserve Board of the Corporation or its subsidiaries, including the possibility that such regulator may, among other things, require us to increase our allowance for loan losses or to write down assets, or restrict our ability to: engage in new products or services; engage in future mergers or acquisitions; open new branches; pay future dividends; or otherwise take action, or refrain from taking action, in order to correct activities or practices that the Federal Reserve believes may violate applicable law or constitute an unsafe or unsound banking practice;
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•
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variances in common stock outstanding and/or volatility in common stock price;
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fair value of and number of stock-based compensation awards to be issued in future periods;
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risks related to our mergers and acquisitions, including, but not limited to: reputational risks; client and customer retention risks; diversion of management’s time for integration-related issues; integration may take longer than
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•
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deposit attrition, operating costs, customer loss and business disruption following a merger or acquisition, including, without limitation, difficulties in maintaining relationships with employees, customers, and/or suppliers may be greater than expected;
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the credit risks of lending activities and overall quality of the composition of acquired loan, lease and securities portfolio;
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our success in continuing to generate new business in our existing markets, as well as identifying and penetrating targeted markets and generating a profit in those markets in a reasonable time;
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•
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our ability to continue to generate investment results for customers or introduce competitive new products and services on a timely, cost-effective basis, including investment and banking products that meet customers’ needs;
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changes in consumer and business spending, borrowing and savings habits and demand for financial services in the relevant market areas;
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extent to which products or services previously offered (including but not limited to mortgages and asset back securities) require us to incur liabilities or absorb losses not contemplated at their initiation or origination;
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rapid technological developments and changes;
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technological systems failures, interruptions and security breaches, internally or through a third-party provider, could negatively impact our operations, customers and/or reputation;
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competitive pressure and practices of other commercial banks, thrifts, mortgage companies, finance companies, credit unions, securities brokerage firms, insurance companies, money-market and mutual funds and other institutions operating in our market areas and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet;
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protection and validity of intellectual property rights;
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reliance on large customers;
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technological, implementation and cost/financial risks in contracts;
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the outcome of pending and future litigation and governmental proceedings;
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any extraordinary events (such as natural disasters, acts of terrorism, wars or political conflicts);
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ability to retain key employees and members of senior management;
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changes in relationships with employees, customers, and/or suppliers;
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the ability of key third-party providers to perform their obligations to us and our subsidiaries;
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our need for capital, or our ability to control operating costs and expenses or manage loan and lease delinquency rates;
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other material adverse changes in operations or earnings; and
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•
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our success in managing the risks involved in the foregoing.
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•
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incurring time and expense associated with identifying and evaluating potential acquisitions and negotiating potential transactions, resulting in the Corporation’s attention being diverted from the operation of our existing business;
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using inaccurate estimates and judgments to evaluate credit, operations, management, and market risks with respect to the target institution or assets;
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potential exposure to unknown or contingent liabilities of banks and businesses we acquire;
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the time and expense required to integrate the operations and personnel of the combined businesses;
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experiencing higher operating expenses relative to operating income from the new operations;
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•
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creating an adverse short-term effect on our results of operations;
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losing key employees and customers as a result of an acquisition that is poorly received;
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•
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risk of significant problems relating to the conversion of the financial and customer data of the entity being acquired into the Corporation’s financial and customer product systems; and,
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potential impairment of intangible assets created in business acquisitions.
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announcements of developments related to our business, any of our competitors or the financial services industry in general;
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fluctuations in our results of operations;
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sales of substantial amounts of our securities into the marketplace;
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general conditions in our markets or the worldwide economy;
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a shortfall in revenues or earnings compared to securities analysts’ expectations;
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changes in analysts’ recommendations or projections;
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our announcement of new acquisitions or other projects; and
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compliance with regulatory changes.
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changes to regulatory capital requirements;
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exclusion of hybrid securities, including trust preferred securities, issued on or after May 19, 2010 from Tier I capital;
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creation of new government regulatory agencies (such as the Financial Stability Oversight Council, which will oversee systemic risk, and the Consumer Financial Protection Bureau, which will develop and enforce rules for bank and non-bank providers of consumer financial products);
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potential limitations on federal preemption;
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changes to deposit insurance assessments;
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regulation of debit interchange fees we earn;
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changes in retail banking regulations, including potential limitations on certain fees we may charge; and
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changes in regulation of consumer mortgage loan origination and risk retention.
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Inaccurate management decisions regarding the fair value of assets and liabilities acquired which could materially affect our financial condition;
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Natural disasters, fires, and severe weather;
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Failure of internal controls;
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Rumors or erroneous information;
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Reliance on other companies to provide key components of our business processes;
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Meeting capital adequacy standards and the need to raise additional capital in the future if needed, including through future sales of our common stock;
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Actual or anticipated variations in quarterly or annual results of operations;
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Recommendations by securities analysts;
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Failure of securities analysts to cover, or continue to cover, us;
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Operating and stock price performance of other companies that investors deem comparable to us;
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News reports relating to trends, concerns and other issues in the financial services industry, including the failures of other financial institutions in the current economic downturn;
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Perceptions in the marketplace regarding us and/or our competitors;
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Departure of our management team or other key personnel;
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New technology used, or services offered, by competitors;
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Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors;
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Failure to integrate acquisitions or realize anticipated benefits from acquisitions;
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Existing or increased regulatory and compliance requirements, changes or proposed changes in laws or regulations, or differing interpretations thereof affecting our business, or enforcement of these laws and regulations;
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Governmental investigations and actions;
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Changes in government regulations or restructuring of government sponsored enterprises such as Fannie Mae and Freddie Mac;
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New litigation or changes in existing litigation; and
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Geopolitical conditions such as acts or threats of terrorism or military conflicts.
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•
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Comparison of Cumulative Total Return Chart
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Five Year Cumulative Return Summary
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|||||||||||||||||||||||
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As of December 31,
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||||||||||||||||||||||
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2013
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2014
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2015
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2016
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2017
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2018
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Bryn Mawr Bank Corporation
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$
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100.00
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$
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106.39
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$
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100.25
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$
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151.39
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$
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162.00
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$
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128.81
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NASDAQ Community Bank Index
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$
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100.00
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|
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$
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104.66
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|
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$
|
114.65
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|
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$
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159.10
|
|
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$
|
163.19
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|
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$
|
138.83
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NASDAQ Market Index
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$
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100.00
|
|
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$
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114.75
|
|
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$
|
122.74
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|
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$
|
133.62
|
|
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$
|
173.22
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|
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$
|
168.30
|
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SNL Bank and Thrift
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$
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100.00
|
|
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$
|
111.63
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|
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$
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113.89
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|
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$
|
143.78
|
|
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$
|
169.07
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|
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$
|
140.45
|
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SNL Mid-Atlantic Bank
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$
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100.00
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$
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108.94
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$
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113.03
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|
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$
|
143.67
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|
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$
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176.08
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$
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150.45
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•
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Equity Compensation Plan Information
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•
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Issuer Purchases of Equity Securities
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Period
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Total Number of Shares Purchased
(1)(2)
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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
(3)
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Maximum
Number of
Shares that
May Yet Be
Purchased
Under the Plan
or Programs
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|||||
October 1, 2018 – October 31, 2018
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45,009
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$
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39.33
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44,150
|
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130,887
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November 1, 2018 – November 30, 2018
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57,026
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$
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39.77
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57,026
|
|
|
73,861
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December 1, 2018 – December 31, 2018
|
38,168
|
|
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$
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36.87
|
|
|
33,845
|
|
|
40,016
|
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Total
|
140,203
|
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$
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38.84
|
|
|
135,021
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(1)
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On December 31, 2018, 1,282 shares were purchased by the Corporation’s deferred compensation plans through open market transactions.
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(2)
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Includes shares purchased to cover statutory tax withholding requirements on vested stock awards for certain officers of the Corporation or Bank as follows: 309 shares on October 1, 2018; 550 shares on October 5, 2018; 899 shares on December 1, 2018; and 2,142 shares on December 15, 2018.
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(3)
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On August 6, 2015, the Corporation announced a stock repurchase program (the “2015 Program”) under which the Corporation may repurchase up to 1,200,000 shares of the Corporation’s common stock, at an aggregate purchase price not to exceed $40 million. There is no expiration date on the 2015 Program and the Corporation has no plans for an early termination of the 2015 Program. All share repurchases under the 2015 Program were accomplished in open market transactions. As of
December 31, 2018
, the maximum number of shares remaining authorized for repurchase under the 2015 Program was
40,016
.
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Earnings
|
As of or for the Year Ended December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Interest income
|
$
|
181,055
|
|
|
$
|
129,559
|
|
|
$
|
116,991
|
|
|
$
|
108,542
|
|
|
$
|
82,906
|
|
Interest expense
|
31,584
|
|
|
14,432
|
|
|
10,755
|
|
|
8,415
|
|
|
6,078
|
|
|||||
Net interest income
|
149,471
|
|
|
115,127
|
|
|
106,236
|
|
|
100,127
|
|
|
76,828
|
|
|||||
Provision for loan and lease losses
|
7,193
|
|
|
2,618
|
|
|
4,326
|
|
|
4,396
|
|
|
884
|
|
|||||
Net interest income after provision for loan and lease losses
|
142,278
|
|
|
112,509
|
|
|
101,910
|
|
|
95,731
|
|
|
75,944
|
|
|||||
Noninterest income
|
75,982
|
|
|
59,132
|
|
|
53,968
|
|
|
55,785
|
|
|
48,223
|
|
|||||
Noninterest expense
|
140,303
|
|
|
114,395
|
|
|
101,674
|
|
|
125,590
|
|
|
81,319
|
|
|||||
Income before income taxes
|
77,957
|
|
|
57,246
|
|
|
54,204
|
|
|
25,926
|
|
|
42,848
|
|
|||||
Income taxes
|
14,165
|
|
|
34,230
|
|
|
18,168
|
|
|
9,172
|
|
|
15,005
|
|
|||||
Net Income
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
|
$
|
16,754
|
|
|
$
|
27,843
|
|
Per
Share
Data
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average shares outstanding
|
20,234,792
|
|
|
17,150,125
|
|
|
16,859,623
|
|
|
17,488,325
|
|
|
13,566,239
|
|
|||||
Dilutive potential common stock
|
155,375
|
|
|
248,798
|
|
|
168,499
|
|
|
267,996
|
|
|
294,801
|
|
|||||
Adjusted weighted-average shares
|
20,390,167
|
|
|
17,398,923
|
|
|
17,028,122
|
|
|
17,756,321
|
|
|
13,861,040
|
|
|||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
3.15
|
|
|
$
|
1.34
|
|
|
$
|
2.14
|
|
|
$
|
0.96
|
|
|
$
|
2.05
|
|
Diluted
|
$
|
3.13
|
|
|
$
|
1.32
|
|
|
$
|
2.12
|
|
|
$
|
0.94
|
|
|
$
|
2.01
|
|
Dividends paid or accrued
|
$
|
0.94
|
|
|
$
|
0.86
|
|
|
$
|
0.82
|
|
|
$
|
0.78
|
|
|
$
|
0.74
|
|
Dividends paid or accrued per share to net income per basic common share
|
29.84
|
%
|
|
64.2
|
%
|
|
38.3
|
%
|
|
81.3
|
%
|
|
36.1
|
%
|
|||||
Shares outstanding at year end
|
20,163,816
|
|
|
20,161,395
|
|
|
16,939,715
|
|
|
17,071,523
|
|
|
13,769,336
|
|
|||||
Book value per share
|
$
|
28.01
|
|
|
$
|
26.19
|
|
|
$
|
22.50
|
|
|
$
|
21.42
|
|
|
$
|
17.83
|
|
Tangible book value per share
|
$
|
17.75
|
|
|
$
|
16.02
|
|
|
$
|
15.11
|
|
|
$
|
13.89
|
|
|
$
|
13.59
|
|
Profitability
Ratios
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax-equivalent net interest margin
|
3.80
|
%
|
|
3.69
|
%
|
|
3.76
|
%
|
|
3.75
|
%
|
|
3.93
|
%
|
|||||
Return on average assets
|
1.47
|
%
|
|
0.67
|
%
|
|
1.16
|
%
|
|
0.57
|
%
|
|
1.32
|
%
|
|||||
Return on average equity
|
11.78
|
%
|
|
5.76
|
%
|
|
9.75
|
%
|
|
4.49
|
%
|
|
11.56
|
%
|
|||||
Noninterest expense to net interest income and noninterest income
|
62.2
|
%
|
|
65.6
|
%
|
|
63.5
|
%
|
|
80.6
|
%
|
|
65.0
|
%
|
|||||
Noninterest income to net interest income and noninterest income
|
33.7
|
%
|
|
33.9
|
%
|
|
33.7
|
%
|
|
35.8
|
%
|
|
38.6
|
%
|
|||||
Average equity to average total assets
|
12.44
|
%
|
|
11.69
|
%
|
|
11.90
|
%
|
|
12.68
|
%
|
|
11.38
|
%
|
|||||
Financial Condition
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
4,652,485
|
|
|
$
|
4,449,720
|
|
|
$
|
3,421,530
|
|
|
$
|
3,030,997
|
|
|
$
|
2,246,506
|
|
Total liabilities
|
4,087,781
|
|
|
3,921,601
|
|
|
3,040,403
|
|
|
2,665,286
|
|
|
2,001,032
|
|
|||||
Total shareholders’ equity
|
564,704
|
|
|
528,119
|
|
|
381,127
|
|
|
365,711
|
|
|
245,474
|
|
|||||
Interest-earning assets
|
4,216,888
|
|
|
4,039,763
|
|
|
3,153,015
|
|
|
2,755,506
|
|
|
2,092,164
|
|
|||||
Portfolio loans and leases
|
3,427,154
|
|
|
3,285,858
|
|
|
2,535,425
|
|
|
2,268,988
|
|
|
1,652,257
|
|
|||||
Investment securities
|
753,628
|
|
|
701,744
|
|
|
573,763
|
|
|
352,916
|
|
|
233,473
|
|
|||||
Goodwill
|
184,012
|
|
|
179,889
|
|
|
104,765
|
|
|
104,765
|
|
|
35,502
|
|
|||||
Intangible assets
|
23,455
|
|
|
25,966
|
|
|
20,405
|
|
|
23,903
|
|
|
22,998
|
|
|||||
Deposits
|
3,599,087
|
|
|
3,373,798
|
|
|
2,579,675
|
|
|
2,252,725
|
|
|
1,688,028
|
|
|||||
Borrowings
|
427,847
|
|
|
496,837
|
|
|
423,425
|
|
|
378,509
|
|
|
283,970
|
|
Wealth assets under management, administration, supervision and brokerage
|
13,429,544
|
|
|
12,968,738
|
|
|
11,328,457
|
|
|
8,364,805
|
|
|
7,699,908
|
|
|||||
Capital Ratios
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier I leverage ratio (Tier I capital to total quarterly average assets)
|
9.06
|
%
|
|
10.10
|
%
|
|
8.73
|
%
|
|
9.02
|
%
|
|
9.54
|
%
|
|||||
Tier I capital to risk weighted assets
|
10.92
|
%
|
|
10.42
|
%
|
|
10.51
|
%
|
|
10.72
|
%
|
|
12.00
|
%
|
|||||
Total regulatory capital to risk weighted assets
|
14.30
|
%
|
|
13.92
|
%
|
|
12.35
|
%
|
|
12.61
|
%
|
|
12.87
|
%
|
|||||
Asset quality
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance as a percentage of portfolio loans and leases
|
0.57
|
%
|
|
0.53
|
%
|
|
0.69
|
%
|
|
0.70
|
%
|
|
0.88
|
%
|
|||||
Non-performing loans and leases as a % of portfolio loans and leases
|
0.37
|
%
|
|
0.26
|
%
|
|
0.33
|
%
|
|
0.45
|
%
|
|
0.61
|
%
|
Brief History of the Corporation
|
•
|
Domenick & Associates (“Domenick”) - May 1, 2018
|
•
|
Royal Bancshares of Pennsylvania, Inc. ("RBPI") - December 15, 2017 (the "RBPI Merger")
|
•
|
Harry R. Hirshorn & Company, Inc. ("Hirshorn") - May 24, 2017
|
•
|
Robert J. McAllister Agency, Inc. ("RJM") - April 1, 2015
|
•
|
Continental Bank Holdings, Inc. ("CBH") - January 1, 2015 (the CBH Merger)
|
•
|
Powers Craft Parker and Beard, Inc. ("PCPB") - October 1, 2014
|
•
|
First Bank of Delaware ("FBD") - November 17, 2012
|
•
|
Davidson Trust Company ("DTC") - May 15, 2012
|
•
|
The Private Wealth Management Group of the Hershey Trust Company ("PWMG") - May 11, 2011
|
•
|
First Keystone Financial, Inc. ("FKB") - July 1, 2010
|
Critical Accounting Policies, Judgments and Estimates
|
Overview of General Economic, Regulatory and Governmental Environment
|
Executive Overview
|
Components of Net Income
|
•
|
Net Interest Income,
or the difference between the interest income earned on loans, leases and investments and the interest expense paid on deposits and borrowed funds;
|
•
|
Provision for Loan and Lease Losses
, or the amount added to the Allowance to provide for estimated inherent losses on portfolio loans and leases;
|
•
|
Noninterest Income
, which is made up primarily of wealth management revenue, capital markets revenue, gains and losses from the sale of residential mortgage loans, gains and losses from the sale of available for sale investment securities and other fees from loan and deposit services;
|
•
|
Noninterest Expense
, which consists primarily of salaries and employee benefits, occupancy, intangible asset amortization, professional fees, due diligence, merger-related and merger integration expenses, and other operating expenses; and
|
•
|
Income Tax Expense,
which include state and federal jurisdictions.
|
Net Interest Income
|
|
Year Ended December 31,
|
|||||||||||||||||||||||
(dollars in thousands)
|
2018 Compared to 2017
|
|
|
2017 Compared to 2016
|
||||||||||||||||||||
increase/(decrease)
|
Volume
|
|
Rate
|
|
Total
|
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits with banks
|
$
|
18
|
|
|
$
|
72
|
|
|
$
|
90
|
|
|
|
$
|
(35
|
)
|
|
$
|
41
|
|
|
$
|
6
|
|
Investment securities – taxable
|
2,131
|
|
|
1,494
|
|
|
3,625
|
|
|
|
1,427
|
|
|
1,018
|
|
|
2,445
|
|
||||||
Investment securities – nontaxable
|
(215
|
)
|
|
(14
|
)
|
|
(229
|
)
|
|
|
(216
|
)
|
|
49
|
|
|
(167
|
)
|
||||||
Loans and leases
|
31,524
|
|
|
16,109
|
|
|
47,633
|
|
|
|
10,733
|
|
|
(267
|
)
|
|
10,466
|
|
||||||
Total interest income
|
33,458
|
|
|
17,661
|
|
|
51,119
|
|
|
|
11,909
|
|
|
841
|
|
|
12,750
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Savings, NOW and market rate accounts
|
792
|
|
|
4,779
|
|
|
5,571
|
|
|
|
161
|
|
|
643
|
|
|
804
|
|
||||||
Wholesale deposits
|
695
|
|
|
2,261
|
|
|
2,956
|
|
|
|
186
|
|
|
639
|
|
|
825
|
|
||||||
Retail time deposits
|
2,147
|
|
|
1,130
|
|
|
3,277
|
|
|
|
500
|
|
|
786
|
|
|
1,286
|
|
||||||
Borrowed funds – short-term
|
552
|
|
|
1,450
|
|
|
2,002
|
|
|
|
226
|
|
|
1,071
|
|
|
1,297
|
|
||||||
Borrowed funds – long-term
|
(1,096
|
)
|
|
253
|
|
|
(843
|
)
|
|
|
(971
|
)
|
|
238
|
|
|
(733
|
)
|
||||||
Subordinated notes
|
3,203
|
|
|
(256
|
)
|
|
2,947
|
|
|
|
182
|
|
|
(30
|
)
|
|
152
|
|
||||||
Junior subordinated debentures
|
945
|
|
|
297
|
|
|
1,242
|
|
|
|
46
|
|
|
—
|
|
|
46
|
|
||||||
Total interest expense
|
7,238
|
|
|
9,914
|
|
|
17,152
|
|
|
|
330
|
|
|
3,347
|
|
|
3,677
|
|
||||||
Interest differential
|
$
|
26,220
|
|
|
$
|
7,747
|
|
|
$
|
33,967
|
|
|
|
$
|
11,579
|
|
|
$
|
(2,506
|
)
|
|
$
|
9,073
|
|
|
For the Year Ended December 31,
|
|||||||||||||||||||||||||||||||||
|
2018
|
|
|
2017
|
|
|
2016
|
|||||||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Average
Rates
Earned/
Paid
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposits with banks
|
$
|
37,550
|
|
|
$
|
264
|
|
|
0.70
|
%
|
|
|
$
|
34,122
|
|
|
$
|
174
|
|
|
0.51
|
%
|
|
|
$
|
43,214
|
|
|
$
|
168
|
|
|
0.39
|
%
|
Investment securities - available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
513,114
|
|
|
11,652
|
|
|
2.27
|
%
|
|
|
409,813
|
|
|
8,147
|
|
|
1.99
|
%
|
|
|
329,161
|
|
|
5,784
|
|
|
1.76
|
%
|
||||||
Tax –Exempt
|
16,966
|
|
|
346
|
|
|
2.04
|
%
|
|
|
27,062
|
|
|
575
|
|
|
2.12
|
%
|
|
|
38,173
|
|
|
742
|
|
|
1.94
|
%
|
||||||
Total investment securities – available for sale
|
530,080
|
|
|
11,998
|
|
|
2.26
|
%
|
|
|
436,875
|
|
|
8,722
|
|
|
2.00
|
%
|
|
|
367,334
|
|
|
6,526
|
|
|
1.78
|
%
|
||||||
Investment securities – held to maturity
|
8,232
|
|
|
39
|
|
|
0.47
|
%
|
|
|
5,621
|
|
|
34
|
|
|
0.60
|
%
|
|
|
2,060
|
|
|
4
|
|
|
—
|
|
||||||
Investment securities – trading
|
8,237
|
|
|
169
|
|
|
2.05
|
%
|
|
|
4,185
|
|
|
54
|
|
|
1.29
|
%
|
|
|
3,740
|
|
|
2
|
|
|
0.05
|
%
|
||||||
Loans and leases
(1)(2)(3)
|
3,356,295
|
|
|
169,024
|
|
|
5.04
|
%
|
|
|
2,664,944
|
|
|
121,391
|
|
|
4.56
|
%
|
|
|
2,429,416
|
|
|
110,925
|
|
|
4.57
|
%
|
||||||
Total interest-earning assets
|
3,940,394
|
|
|
181,494
|
|
|
4.61
|
%
|
|
|
3,145,747
|
|
|
130,375
|
|
|
4.14
|
%
|
|
|
2,845,764
|
|
|
117,625
|
|
|
4.13
|
%
|
||||||
Cash and due from banks
|
9,853
|
|
|
|
|
|
|
|
13,293
|
|
|
|
|
|
|
|
16,317
|
|
|
|
|
|
||||||||||||
Allowance for loan and lease losses
|
(18,447
|
)
|
|
|
|
|
|
|
(17,181
|
)
|
|
|
|
|
|
|
(17,159
|
)
|
|
|
|
|
||||||||||||
Other assets
|
420,322
|
|
|
|
|
|
|
|
274,287
|
|
|
|
|
|
|
|
260,728
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
4,352,122
|
|
|
|
|
|
|
|
$
|
3,416,146
|
|
|
|
|
|
|
|
$
|
3,105,650
|
|
|
|
|
|
|||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings, NOW, and market rate accounts
|
$
|
1,715,239
|
|
|
$
|
8,860
|
|
|
0.52
|
%
|
|
|
$
|
1,383,560
|
|
|
$
|
3,289
|
|
|
0.24
|
%
|
|
|
$
|
1,292,228
|
|
|
$
|
2,485
|
|
|
0.19
|
%
|
Wholesale deposits
|
251,384
|
|
|
5,021
|
|
|
2.00
|
%
|
|
|
188,179
|
|
|
2,065
|
|
|
1.10
|
%
|
|
|
163,724
|
|
|
1,240
|
|
|
0.76
|
%
|
||||||
Time deposits
|
539,934
|
|
|
6,671
|
|
|
1.24
|
%
|
|
|
330,797
|
|
|
3,394
|
|
|
1.03
|
%
|
|
|
266,772
|
|
|
2,108
|
|
|
0.79
|
%
|
||||||
Total interest-bearing deposits
|
2,506,557
|
|
|
20,552
|
|
|
0.82
|
%
|
|
|
1,902,536
|
|
|
8,748
|
|
|
0.46
|
%
|
|
|
1,722,724
|
|
|
5,833
|
|
|
0.34
|
%
|
||||||
Short-term borrowings
|
178,582
|
|
|
3,392
|
|
|
1.90
|
%
|
|
|
128,008
|
|
|
1,390
|
|
|
1.09
|
%
|
|
|
37,041
|
|
|
93
|
|
|
0.25
|
%
|
||||||
Long-term FHLB advances
|
93,503
|
|
|
1,777
|
|
|
1.90
|
%
|
|
|
161,004
|
|
|
2,620
|
|
|
1.63
|
%
|
|
|
225,815
|
|
|
3,353
|
|
|
1.48
|
%
|
||||||
Subordinated notes
|
98,462
|
|
|
4,575
|
|
|
4.65
|
%
|
|
|
33,153
|
|
|
1,628
|
|
|
4.91
|
%
|
|
|
29,503
|
|
|
1,476
|
|
|
5.00
|
%
|
||||||
Junior subordinated debt
|
21,491
|
|
|
1,288
|
|
|
5.99
|
%
|
|
|
997
|
|
|
46
|
|
|
4.61
|
%
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total interest-bearing liabilities
|
2,898,595
|
|
|
31,584
|
|
|
1.09
|
%
|
|
|
2,225,698
|
|
|
14,432
|
|
|
0.65
|
%
|
|
|
2,015,083
|
|
|
10,755
|
|
|
0.53
|
%
|
||||||
Noninterest-bearing deposits
|
856,506
|
|
|
|
|
|
|
|
751,069
|
|
|
|
|
|
|
|
687,134
|
|
|
|
|
|
||||||||||||
Other liabilities
|
55,436
|
|
|
|
|
|
|
|
40,109
|
|
|
|
|
|
|
|
33,904
|
|
|
|
|
|
||||||||||||
Total noninterest-bearing liabilities
|
911,942
|
|
|
|
|
|
|
|
791,178
|
|
|
|
|
|
|
|
721,038
|
|
|
|
|
|
||||||||||||
Total liabilities
|
3,810,537
|
|
|
|
|
|
|
|
3,016,876
|
|
|
|
|
|
|
|
2,736,121
|
|
|
|
|
|
||||||||||||
Shareholders’ equity
|
541,585
|
|
|
|
|
|
|
|
399,270
|
|
|
|
|
|
|
|
369,529
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders’ equity
|
$
|
4,352,122
|
|
|
|
|
|
|
|
$
|
3,416,146
|
|
|
|
|
|
|
|
$
|
3,105,650
|
|
|
|
|
|
|||||||||
Net interest spread
|
|
|
|
|
3.52
|
%
|
|
|
|
|
|
|
3.49
|
%
|
|
|
|
|
|
|
3.60
|
%
|
||||||||||||
Effect of noninterest-bearing sources
|
|
|
|
|
0.28
|
%
|
|
|
|
|
|
|
0.20
|
%
|
|
|
|
|
|
|
0.16
|
%
|
||||||||||||
Net interest income/margin on earning assets
|
|
|
$
|
149,910
|
|
|
3.80
|
%
|
|
|
|
|
$
|
115,943
|
|
|
3.69
|
%
|
|
|
|
|
$
|
106,870
|
|
|
3.76
|
%
|
||||||
Tax-equivalent adjustment
(4)
|
|
|
$
|
439
|
|
|
0.01
|
%
|
|
|
|
|
$
|
816
|
|
|
0.03
|
%
|
|
|
|
|
$
|
634
|
|
|
0.02
|
%
|
(1)
|
Non-accrual loans have been included in average loan balances, but interest on non-accrual loans has not been included for purposes of determining interest
income.
|
(2)
|
Includes
portfolio loans and leases and loans held for sale.
|
(3)
|
Interest on loans and leases includes deferred
fees
of
$1.5 million,
$947 thousand
and $522 thousand
for the years ended December 31, 2018, 2017
and 2016, respectively.
|
(4)
|
Tax rate used for tax-equivalent calculations is 21% for 2018 and 35% for 2017 and 2016.
|
Quarter
|
|
Year
|
|
Earning-Asset
Yield
|
|
Interest-
Bearing
Liability Cost
|
|
Net Interest
Spread
|
|
Effect of Non-
Interest-
Bearing Sources
|
|
Tax-Equivalent
Net Interest
Margin
|
|||||
4
th
|
|
2018
|
|
4.74
|
%
|
|
1.30
|
%
|
|
3.44
|
%
|
|
0.35
|
%
|
|
3.79
|
%
|
3
rd
|
|
2018
|
|
4.54
|
%
|
|
1.16
|
%
|
|
3.38
|
%
|
|
0.31
|
%
|
|
3.69
|
%
|
2
nd
|
|
2018
|
|
4.57
|
%
|
|
1.02
|
%
|
|
3.55
|
%
|
|
0.26
|
%
|
|
3.81
|
%
|
1
st
|
|
2018
|
|
4.58
|
%
|
|
0.87
|
%
|
|
3.71
|
%
|
|
0.23
|
%
|
|
3.94
|
%
|
4
th
|
|
2017
|
|
4.15
|
%
|
|
0.74
|
%
|
|
3.41
|
%
|
|
0.21
|
%
|
|
3.62
|
%
|
|
Change in Net Interest Income Over the Twelve Months Beginning After December 31, 2018
|
|
Change in Net Interest Income Over the Twelve Months Beginning After December 31, 2017
|
||||||||||
|
Amount
|
|
Percentage
|
|
Amount
|
|
Percentage
|
||||||
+300 basis points
|
$
|
5,644
|
|
|
3.74
|
%
|
|
$
|
15,953
|
|
|
10.66
|
%
|
+200 basis points
|
$
|
3,734
|
|
|
2.47
|
%
|
|
$
|
10,644
|
|
|
7.11
|
%
|
+100 basis points
|
$
|
1,860
|
|
|
1.23
|
%
|
|
$
|
5,316
|
|
|
3.55
|
%
|
-100 basis points
|
$
|
(6,546
|
)
|
|
(4.34
|
)%
|
|
$
|
(6,913
|
)
|
|
(4.62
|
)%
|
(dollars in millions)
|
0 to 90
Days
|
|
91 to 365
Days
|
|
1 - 5
Years
|
|
Over
5 Years
|
|
Non-Rate
Sensitive
|
|
Total
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposits with banks
|
$
|
34.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34.4
|
|
Investment securities
(1)
|
222.1
|
|
|
54.4
|
|
|
346.5
|
|
|
130.6
|
|
|
—
|
|
|
753.6
|
|
||||||
Loans and leases
(2)
|
1,346.5
|
|
|
385.3
|
|
|
1,339.9
|
|
|
357.2
|
|
|
—
|
|
|
3,428.9
|
|
||||||
Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19.4
|
)
|
|
(19.4
|
)
|
||||||
Cash and due from banks
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.1
|
|
|
14.1
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
440.9
|
|
|
440.9
|
|
||||||
Total assets
|
$
|
1,603.0
|
|
|
$
|
439.7
|
|
|
$
|
1,686.4
|
|
|
$
|
487.8
|
|
|
$
|
435.6
|
|
|
$
|
4,652.5
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Demand, noninterest-bearing
|
$
|
25.3
|
|
|
$
|
76.0
|
|
|
$
|
263.8
|
|
|
$
|
536.5
|
|
|
$
|
—
|
|
|
$
|
901.6
|
|
Savings, NOW and market rate
|
86.2
|
|
|
246.7
|
|
|
728.5
|
|
|
713.1
|
|
|
—
|
|
|
1,774.5
|
|
||||||
Time deposits
|
87.9
|
|
|
326.3
|
|
|
126.4
|
|
|
2.1
|
|
|
—
|
|
|
542.7
|
|
||||||
Wholesale non-maturity deposits
|
55.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55.0
|
|
||||||
Wholesale time deposits
|
185.6
|
|
|
139.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
325.3
|
|
||||||
Short-term borrowings
|
252.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
252.4
|
|
||||||
Long-term FHLB advances
|
—
|
|
|
28.3
|
|
|
27.1
|
|
|
—
|
|
|
—
|
|
|
55.4
|
|
||||||
Subordinated notes
|
—
|
|
|
—
|
|
|
98.5
|
|
|
—
|
|
|
—
|
|
|
98.5
|
|
||||||
Junior subordinated debentures
|
21.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.6
|
|
||||||
Other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60.8
|
|
|
60.8
|
|
||||||
Shareholders’ equity
|
20.2
|
|
|
60.5
|
|
|
322.7
|
|
|
161.3
|
|
|
—
|
|
|
564.7
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
734.2
|
|
|
$
|
877.5
|
|
|
$
|
1,567.0
|
|
|
$
|
1,413.0
|
|
|
$
|
60.8
|
|
|
$
|
4,652.5
|
|
Interest-earning assets
|
$
|
1,603.0
|
|
|
$
|
439.7
|
|
|
$
|
1,686.4
|
|
|
$
|
487.8
|
|
|
$
|
—
|
|
|
$
|
4,216.9
|
|
Interest-bearing liabilities
|
688.7
|
|
|
741.0
|
|
|
980.5
|
|
|
715.2
|
|
|
—
|
|
|
3,125.4
|
|
||||||
Difference between interest-earning assets and interest-bearing liabilities
|
$
|
914.3
|
|
|
$
|
(301.3
|
)
|
|
$
|
705.9
|
|
|
$
|
(227.4
|
)
|
|
$
|
—
|
|
|
$
|
1,091.5
|
|
Cumulative difference between interest earning assets and interest-bearing liabilities
|
$
|
914.3
|
|
|
$
|
613.0
|
|
|
$
|
1,318.9
|
|
|
$
|
1,091.5
|
|
|
$
|
—
|
|
|
$
|
1,091.5
|
|
Cumulative earning assets as a % of cumulative interest-bearing liabilities
|
233
|
%
|
|
143
|
%
|
|
155
|
%
|
|
135
|
%
|
|
|
|
|
(1)
|
Investment securities include available for sale, held to maturity
and trading.
|
(2)
|
Loans include portfolio loans and leases and loans held for sale.
|
Provision for Loan and Lease Losses
|
•
|
Specific Loan Evaluation Component
- Loans and leases for which management has reason to believe it is probable that it will not be able to collect all contractually due amounts of principal and interest are evaluated for impairment on an individual basis and a specific allocation of the Allowance is assigned, if necessary.
|
•
|
Historical Charge-Off Component -
Homogeneous pools of loans are evaluated to determine average historic charge-off rates. Management applies a rolling, twenty quarter charge-off history as a look-back period to determine these average charge-off rates. Management evaluates the length of this look-back period to determine its appropriateness. In addition, management develops an estimate of a loss emergence period for each segment of the loan portfolio. The loss emergence period estimates the time between the occurrence of a loss event for a borrower and an actual charge-off of a loan.
|
•
|
Qualitative Factors Component -
Various qualitative factors are considered as they relate to the different homogeneous loan pools to adjust the historic charge-off rates so that they reflect current economic conditions that may not be accurately reflected in the historic charge-off rates. These factors include delinquency trends, economic conditions, loan terms, credit grades, concentrations of credit, regulatory environment and other relevant factors. The resulting adjustments are combined with the historic charge-off rates and result in an allocation rate for each homogeneous loan pool.
|
•
|
Unallocated Component
- This amount represents the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating the specific, historical, and qualitative losses in the portfolio discussed above. There are many factors considered, such as the inherent delay in obtaining information regarding a customer’s financial information or changes in their business condition, the judgmental nature of loan and lease evaluations, the delay in interpreting economic trends, and the judgmental nature of collateral assessments.
|
•
|
Pass
- Loans considered satisfactory with no indications of deterioration.
|
•
|
Special mention
- Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
|
•
|
Substandard
- Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have well-defined weaknesses that may jeopardize the
|
•
|
Doubtful
- Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loan balances classified as doubtful have been reduced by partial charge-offs and are carried at their net realizable values.
|
•
|
Commercial mortgage
(1)
|
•
|
Home equity lines and loans
|
•
|
Residential mortgage
|
•
|
Construction
|
•
|
Commercial and industrial
|
•
|
Consumer
|
•
|
Leases
|
•
|
the Present Value of Future Cash Flow Method;
|
•
|
the Fair Value of Collateral Method;
|
•
|
the Observable Market Price of a Loan Method.
|
•
|
Open-ended consumer loans exceeding 180 days past due.
|
•
|
Closed-ended consumer loans exceeding 120 days past due.
|
•
|
All commercial/business purpose loans exceeding 180 days past due.
|
•
|
All leases exceeding 120 days past due.
|
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Non-accrual loans and leases
|
$
|
12,820
|
|
|
$
|
8,579
|
|
|
$
|
8,363
|
|
|
$
|
10,244
|
|
|
$
|
10,096
|
|
Loans 90 days or more past due and still accruing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total non-performing loans and leases
|
12,820
|
|
|
8,579
|
|
|
8,363
|
|
|
10,244
|
|
|
10,096
|
|
|||||
Other real estate owned
|
417
|
|
|
304
|
|
|
1,017
|
|
|
2,638
|
|
|
1,147
|
|
|||||
Total non-performing assets
|
$
|
13,237
|
|
|
$
|
8,883
|
|
|
$
|
9,380
|
|
|
$
|
12,882
|
|
|
$
|
11,243
|
|
TDRs included in non-performing assets
|
$
|
1,217
|
|
|
$
|
3,289
|
|
|
$
|
2,632
|
|
|
$
|
1,935
|
|
|
$
|
4,315
|
|
TDRs in compliance with modified terms
|
9,745
|
|
|
5,800
|
|
|
6,395
|
|
|
4,880
|
|
|
4,157
|
|
|||||
Total TDRs
|
$
|
10,962
|
|
|
$
|
9,089
|
|
|
$
|
9,027
|
|
|
$
|
6,815
|
|
|
$
|
8,472
|
|
Allowance for loan and lease losses to non-performing loans and leases
|
151.5
|
%
|
|
204.3
|
%
|
|
209.1
|
%
|
|
154.8
|
%
|
|
144.5
|
%
|
|||||
Non-performing loans and leases to total loans and leases
|
0.37
|
%
|
|
0.26
|
%
|
|
0.33
|
%
|
|
0.45
|
%
|
|
0.61
|
%
|
|||||
Allowance for loan losses to total portfolio loans and leases
|
0.57
|
%
|
|
0.53
|
%
|
|
0.69
|
%
|
|
0.70
|
%
|
|
0.88
|
%
|
|||||
Non-performing assets to total assets
|
0.28
|
%
|
|
0.20
|
%
|
|
0.27
|
%
|
|
0.43
|
%
|
|
0.50
|
%
|
|||||
Period-end portfolio loans and leases
|
$
|
3,427,154
|
|
|
$
|
3,285,858
|
|
|
$
|
2,535,425
|
|
|
$
|
2,268,988
|
|
|
$
|
1,652,257
|
|
Average portfolio loans and leases
|
$
|
3,397,479
|
|
|
$
|
2,660,999
|
|
|
$
|
2,419,950
|
|
|
$
|
2,153,542
|
|
|
$
|
1,608,248
|
|
Allowance for loan and lease losses
|
$
|
19,426
|
|
|
$
|
17,525
|
|
|
$
|
17,486
|
|
|
$
|
15,857
|
|
|
$
|
14,586
|
|
Interest income that would have been recorded on impaired loans if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination
|
$
|
1,240
|
|
|
$
|
708
|
|
|
$
|
1,098
|
|
|
$
|
1,100
|
|
|
$
|
533
|
|
Interest income on impaired loans included in net income for the period
|
$
|
774
|
|
|
$
|
485
|
|
|
$
|
551
|
|
|
$
|
513
|
|
|
$
|
341
|
|
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Balance, January 1
|
$
|
17,525
|
|
|
$
|
17,486
|
|
|
$
|
15,857
|
|
|
$
|
14,586
|
|
|
$
|
15,515
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer
|
(311
|
)
|
|
(154
|
)
|
|
(173
|
)
|
|
(177
|
)
|
|
(144
|
)
|
|||||
Commercial and industrial
|
(1,374
|
)
|
|
(692
|
)
|
|
(1,298
|
)
|
|
(1,220
|
)
|
|
(415
|
)
|
|||||
Real estate
|
(1,018
|
)
|
|
(1,056
|
)
|
|
(1,008
|
)
|
|
(1,615
|
)
|
|
(1,231
|
)
|
|||||
Leases
|
(3,132
|
)
|
|
(1,224
|
)
|
|
(808
|
)
|
|
(442
|
)
|
|
(410
|
)
|
|||||
Total charge-offs
|
(5,835
|
)
|
|
(3,126
|
)
|
|
(3,287
|
)
|
|
(3,454
|
)
|
|
(2,200
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer
|
10
|
|
|
8
|
|
|
23
|
|
|
29
|
|
|
17
|
|
|||||
Commercial and industrial
|
24
|
|
|
25
|
|
|
93
|
|
|
35
|
|
|
98
|
|
|||||
Real estate
|
74
|
|
|
182
|
|
|
178
|
|
|
160
|
|
|
47
|
|
|||||
Construction
|
2
|
|
|
4
|
|
|
64
|
|
|
4
|
|
|
60
|
|
|||||
Leases
|
433
|
|
|
328
|
|
|
232
|
|
|
101
|
|
|
165
|
|
|||||
Total recoveries
|
543
|
|
|
547
|
|
|
590
|
|
|
329
|
|
|
387
|
|
|||||
Net charge-offs
|
(5,292
|
)
|
|
(2,579
|
)
|
|
(2,697
|
)
|
|
(3,125
|
)
|
|
(1,813
|
)
|
|||||
Provision for loan and lease losses
|
7,193
|
|
|
2,618
|
|
|
4,326
|
|
|
4,396
|
|
|
884
|
|
|||||
Balance, December 31
|
$
|
19,426
|
|
|
$
|
17,525
|
|
|
$
|
17,486
|
|
|
$
|
15,857
|
|
|
$
|
14,586
|
|
Ratio of net charge-offs to average portfolio loans outstanding
|
0.16
|
%
|
|
0.10
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.11
|
%
|
|
December 31,
|
|||||||||||||||||||||||||||||||||||||
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
2014
|
|||||||||||||||||||||||||
(dollars in thousands)
|
Allowance
|
|
%
Loans
to
Total
Loans
|
|
|
Allowance
|
|
%
Loans
to
Total
Loans
|
|
|
Allowance
|
|
%
Loans
to
Total
Loans
|
|
|
Allowance
|
|
%
Loans
to
Total
Loans
|
|
|
Allowance
|
|
%
Loans
to
Total
Loans
|
|||||||||||||||
Allowance at end of period applicable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial mortgage
|
$
|
7,567
|
|
|
48.3
|
%
|
|
|
$
|
7,550
|
|
|
46.4
|
%
|
|
|
$
|
6,227
|
|
|
43.8
|
%
|
|
|
$
|
5,199
|
|
|
42.5
|
%
|
|
|
$
|
3,948
|
|
|
41.8
|
%
|
Home equity lines and loans
|
1,003
|
|
|
6.1
|
%
|
|
|
1,086
|
|
|
6.6
|
%
|
|
|
1,255
|
|
|
8.2
|
%
|
|
|
1,307
|
|
|
9.2
|
%
|
|
|
1,917
|
|
|
11.0
|
%
|
|||||
Residential mortgage
|
1,813
|
|
|
14.4
|
%
|
|
|
1,926
|
|
|
14.0
|
%
|
|
|
1,917
|
|
|
16.3
|
%
|
|
|
1,740
|
|
|
17.9
|
%
|
|
|
1,736
|
|
|
19.0
|
%
|
|||||
Construction
|
1,485
|
|
|
5.3
|
%
|
|
|
937
|
|
|
6.5
|
%
|
|
|
2,233
|
|
|
5.6
|
%
|
|
|
1,324
|
|
|
4.0
|
%
|
|
|
1,367
|
|
|
4.0
|
%
|
|||||
Commercial and industrial
|
5,461
|
|
|
20.3
|
%
|
|
|
5,038
|
|
|
21.9
|
%
|
|
|
5,142
|
|
|
22.9
|
%
|
|
|
5,609
|
|
|
23.1
|
%
|
|
|
4,533
|
|
|
20.3
|
%
|
|||||
Consumer
|
229
|
|
|
1.4
|
%
|
|
|
246
|
|
|
1.1
|
%
|
|
|
153
|
|
|
1.0
|
%
|
|
|
142
|
|
|
1.0
|
%
|
|
|
238
|
|
|
1.1
|
%
|
|||||
Leases
|
1,868
|
|
|
4.2
|
%
|
|
|
742
|
|
|
3.5
|
%
|
|
|
559
|
|
|
2.2
|
%
|
|
|
518
|
|
|
2.3
|
%
|
|
|
468
|
|
|
2.8
|
%
|
|||||
Unallocated
|
—
|
|
|
—
|
%
|
|
|
—
|
|
|
—
|
%
|
|
|
—
|
|
|
—
|
%
|
|
|
18
|
|
|
—
|
%
|
|
|
379
|
|
|
—
|
%
|
|||||
Total
|
$
|
19,426
|
|
|
100.0
|
%
|
|
|
$
|
17,525
|
|
|
100.0
|
%
|
|
|
$
|
17,486
|
|
|
100.0
|
%
|
|
|
$
|
15,857
|
|
|
100.0
|
%
|
|
|
$
|
14,586
|
|
|
100.0
|
%
|
Noninterest Income
|
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Visa debit card income
|
$
|
1,700
|
|
|
$
|
1,443
|
|
|
$
|
1,381
|
|
Bank owned life insurance income
|
1,177
|
|
|
959
|
|
|
908
|
|
|||
Commissions and fees
|
1,270
|
|
|
621
|
|
|
673
|
|
|||
Safe deposit box rentals
|
386
|
|
|
365
|
|
|
382
|
|
|||
Other investment income
|
337
|
|
|
48
|
|
|
223
|
|
|||
Rent income
|
150
|
|
|
193
|
|
|
163
|
|
|||
(Loss) gain on trading investments
|
(153
|
)
|
|
613
|
|
|
112
|
|
|||
Recovery of purchase accounting fair value loan mark
|
4,338
|
|
|
337
|
|
|
452
|
|
|||
Miscellaneous other income
|
2,341
|
|
|
742
|
|
|
574
|
|
|||
Other operating income
|
$
|
11,546
|
|
|
$
|
5,321
|
|
|
$
|
4,868
|
|
Noninterest Expense
|
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Contributions
|
$
|
1,659
|
|
|
$
|
1,511
|
|
|
$
|
957
|
|
Deferred compensation expense
|
(492
|
)
|
|
783
|
|
|
664
|
|
|||
Director fees
|
544
|
|
|
542
|
|
|
566
|
|
|||
Dues and subscriptions
|
1,150
|
|
|
871
|
|
|
456
|
|
|||
FDIC insurance
|
1,716
|
|
|
1,580
|
|
|
1,616
|
|
|||
Impairment of OREO and other repossessed assets
|
89
|
|
|
208
|
|
|
94
|
|
|||
Insurance
|
851
|
|
|
838
|
|
|
788
|
|
|||
Loan processing
|
1,068
|
|
|
423
|
|
|
323
|
|
|||
Miscellaneous other expense
|
3,765
|
|
|
2,545
|
|
|
1,480
|
|
|||
MSR amortization and impairment
|
830
|
|
|
745
|
|
|
881
|
|
|||
Other taxes
|
60
|
|
|
39
|
|
|
45
|
|
|||
Outsourced services
|
243
|
|
|
315
|
|
|
569
|
|
|||
Portfolio maintenance
|
435
|
|
|
417
|
|
|
391
|
|
|||
Postage
|
763
|
|
|
575
|
|
|
551
|
|
|||
Stationary and supplies
|
536
|
|
|
488
|
|
|
518
|
|
|||
Telephone and data lines
|
1,909
|
|
|
1,616
|
|
|
1,620
|
|
|||
Temporary help and recruiting
|
416
|
|
|
852
|
|
|
1,522
|
|
|||
Travel and entertainment
|
1,093
|
|
|
900
|
|
|
894
|
|
|||
Other operating expense
|
$
|
16,635
|
|
|
$
|
15,248
|
|
|
$
|
13,935
|
|
Income Tax Expense
|
Balance Sheet Analysis
|
(dollars in thousands)
|
Maturing
During
2018
|
|
Maturing
From
2019
Through
2022
|
|
Maturing
From
2023
Through
2027
|
|
Maturing
After
2027
|
|
Total
|
||||||||||
U.S. Treasury securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
199,926
|
|
|
$
|
100
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200,026
|
|
Weighted average yield
|
2.28
|
%
|
|
2.63
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.28
|
%
|
|||||
Obligations of the U.S. government and agencies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
3,263
|
|
|
174,697
|
|
|
6,588
|
|
|
14,056
|
|
|
198,604
|
|
|||||
Weighted average yield
|
2.00
|
%
|
|
2.31
|
%
|
|
3.48
|
%
|
|
2.75
|
%
|
|
2.38
|
%
|
|||||
State and political subdivisions
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
5,491
|
|
|
5,211
|
|
|
670
|
|
|
—
|
|
|
11,372
|
|
|||||
Weighted average yield
|
0.52
|
%
|
|
0.52
|
%
|
|
0.57
|
%
|
|
—
|
%
|
|
0.52
|
%
|
|||||
Mortgage-related securities
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
12
|
|
|
17,414
|
|
|
60,589
|
|
|
256,211
|
|
|
334,226
|
|
|||||
Weighted average yield
|
0.25
|
%
|
|
0.37
|
%
|
|
0.39
|
%
|
|
0.37
|
%
|
|
0.37
|
%
|
|||||
Other investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
450
|
|
|
650
|
|
|
—
|
|
|
—
|
|
|
1,100
|
|
|||||
Weighted average yield
|
1.99
|
%
|
|
3.46
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.86
|
%
|
|||||
Total amortized cost
|
$
|
209,142
|
|
|
$
|
198,072
|
|
|
$
|
67,847
|
|
|
$
|
270,267
|
|
|
$
|
745,328
|
|
Weighted average yield
|
2.27
|
%
|
|
2.34
|
%
|
|
2.65
|
%
|
|
2.71
|
%
|
|
2.48
|
%
|
(1)
|
Weighted average yields
on tax-exempt obligations have not been computed on a tax-equivalent basis.
|
(2)
|
Mortgage-related securities are included in the above table based on their contractual maturity. However, mortgage-related securities, by design, have scheduled monthly principal payments which are not reflected in this table.
|
|
Amortized Cost as of December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
U.S. Treasury securities
|
$
|
200,026
|
|
|
$
|
200,077
|
|
|
$
|
200,094
|
|
|
$
|
101
|
|
|
$
|
102
|
|
Obligations of the U.S. government and agencies
|
198,604
|
|
|
153,028
|
|
|
83,111
|
|
|
101,342
|
|
|
66,881
|
|
|||||
Obligations of state and political subdivisions
|
11,372
|
|
|
21,352
|
|
|
33,625
|
|
|
41,892
|
|
|
28,955
|
|
|||||
Mortgage-backed securities
|
294,076
|
|
|
275,958
|
|
|
185,997
|
|
|
157,422
|
|
|
79,498
|
|
|||||
Collateralized mortgage obligations
|
40,150
|
|
|
37,596
|
|
|
49,488
|
|
|
29,756
|
|
|
34,618
|
|
|||||
Other investment securities
|
1,100
|
|
|
4,813
|
|
|
16,575
|
|
|
17,263
|
|
|
17,499
|
|
|||||
Total amortized cost
|
$
|
745,328
|
|
|
$
|
692,824
|
|
|
$
|
568,890
|
|
|
$
|
347,776
|
|
|
$
|
227,553
|
|
|
December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Commercial mortgage
|
$
|
1,657,436
|
|
|
$
|
1,523,377
|
|
|
$
|
1,110,898
|
|
|
$
|
964,259
|
|
|
$
|
689,528
|
|
Home equity lines & loans
|
207,351
|
|
|
218,275
|
|
|
207,999
|
|
|
209,473
|
|
|
182,082
|
|
|||||
Residential mortgage
|
494,355
|
|
|
458,886
|
|
|
413,540
|
|
|
406,404
|
|
|
313,442
|
|
|||||
Construction
|
181,078
|
|
|
212,454
|
|
|
141,964
|
|
|
90,421
|
|
|
66,267
|
|
|||||
Commercial & industrial
|
695,584
|
|
|
719,312
|
|
|
579,791
|
|
|
524,515
|
|
|
335,645
|
|
|||||
Consumer
|
46,814
|
|
|
38,153
|
|
|
25,341
|
|
|
22,129
|
|
|
18,480
|
|
|||||
Leases
|
144,536
|
|
|
115,401
|
|
|
55,892
|
|
|
51,787
|
|
|
46,813
|
|
|||||
Total portfolio loans and leases
|
3,427,154
|
|
|
3,285,858
|
|
|
2,535,425
|
|
|
2,268,988
|
|
|
1,652,257
|
|
|||||
Loans held for sale
|
1,749
|
|
|
3,794
|
|
|
9,621
|
|
|
8,987
|
|
|
3,882
|
|
|||||
Total loans and leases
|
$
|
3,428,903
|
|
|
$
|
3,289,652
|
|
|
$
|
2,545,046
|
|
|
$
|
2,277,975
|
|
|
$
|
1,656,139
|
|
(dollars in thousands)
|
Maturing
During
2019
|
|
Maturing
From
2020
Through
2023
|
|
Maturing
After
2023
|
|
Total
|
||||||||
Loan
portfolio
maturity:
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
$
|
270,993
|
|
|
$
|
224,197
|
|
|
$
|
200,394
|
|
|
$
|
695,584
|
|
Construction
|
95,346
|
|
|
43,025
|
|
|
42,707
|
|
|
181,078
|
|
||||
Commercial mortgage
|
97,434
|
|
|
618,603
|
|
|
941,399
|
|
|
1,657,436
|
|
||||
Leases
|
8,766
|
|
|
133,635
|
|
|
2,135
|
|
|
144,536
|
|
||||
Total
|
$
|
472,539
|
|
|
$
|
1,019,460
|
|
|
$
|
1,186,635
|
|
|
$
|
2,678,634
|
|
Interest sensitivity on the above loans:
|
|
|
|
|
|
|
|
||||||||
Loans with fixed rates
|
$
|
116,504
|
|
|
$
|
764,745
|
|
|
$
|
284,904
|
|
|
$
|
1,166,153
|
|
Loans with adjustable or floating rates
|
356,035
|
|
|
254,715
|
|
|
901,731
|
|
|
1,512,481
|
|
||||
Total
|
$
|
472,539
|
|
|
$
|
1,019,460
|
|
|
$
|
1,186,635
|
|
|
$
|
2,678,634
|
|
•
|
Portfolio Loans and Leases
- The Corporation’s $3.43 billion loan and lease portfolio is predominantly based in the Corporation’s traditional market areas of Southeastern Pennsylvania, Southern and Central New Jersey, and Delaware. These markets have exhibited relatively stable economic attributes, and have generally not seen the high levels of real estate price volatility experienced in other regions nationwide.
|
•
|
Concentrations
- The Corporation has a significant portion of its portfolio loans (excluding leases) in real estate-related loans. As of December 31, 2018 and December 31, 2017, respectively, loans secured by real estate were $2.54 billion and $2.41 billion, or 74.1% and 73.4%, of the total loan portfolio of $3.43 billion and $3.29 billion. A predominant percentage of the Corporation’s real estate exposure, both commercial and residential, is within Pennsylvania, Delaware and Southern and Central New Jersey. Management is aware of this concentration and mitigates this risk to the extent possible in many ways, including maintaining a diverse group of collateral property types within the portfolio, and by exercising underwriting discipline which includes assessment of the borrower’s capacity to repay, equity in the underlying real estate collateral and a review of a borrower’s global cash flows. For a substantial portion of the loans in the real estate portfolio, the Corporation has recourse to the owners/sponsors, primarily through personal guaranties, in addition to liens on collateral. This recourse provides credit strength, as it incorporates the borrowers’ global cash flows.
|
•
|
Construction -
The construction portfolio of $181.1 million accounts for 5.3% of the total loan and lease portfolio at December 31, 2018, a decrease of $31.4 million from December 31, 2017. The construction loan segment of the portfolio, which consists of residential site development loans, commercial construction loans, and loans for construction of individual homes, had no delinquent or nonperforming loans as of both December 31, 2018 and 2017.
|
•
|
Residential Mortgages -
Residential mortgage loans were $494.4 million as of December 31, 2018, an increase of $35.5 million from December 31, 2017. The residential mortgage segment accounts for 14.4% of the total loan and lease portfolio as of December 31, 2018. The residential mortgage segment of the portfolio had a delinquency rate on performing loans, as of December 31, 2018, of 0.52%, as compared to 0.32% as of December 31, 2017. Nonperforming residential mortgage loans comprised 0.70% of the residential mortgage segment of the portfolio as of December 31, 2018, as compared to 0.96% as of December 31, 2017. Management believes it is well protected with its collateral position on this portfolio.
|
•
|
Commercial Mortgages
- Commercial mortgages were $1.66 billion as of December 31, 2018, an increase of $134.1 million from December 31, 2017. Management has made a concerted effort, over several operating cycles, to attract strong commercial real estate entrepreneurs in its primary trade area. The commercial mortgage segment accounts for 48.4% of the total loan and lease portfolio as of December 31, 2018. The commercial mortgage segment of the portfolio had a delinquency rate on performing loans, as of December 31, 2018, of 0.06%, as compared to 0.25% as of December 31, 2017. Nonperforming commercial mortgage loans comprised 0.15% of the commercial mortgage segment of the portfolio as of December 31, 2018, as compared to 0.06% as of December 31, 2017. The borrowers comprising this segment of the portfolio generally have strong, global cash flows, which are regularly assessed and have remained stable.
|
•
|
Commercial and Industrial -
Commercial and industrial loans were $695.6 million as of December 31, 2018, a decrease of $23.7 million from December 31, 2017. The commercial and industrial segment accounts for 20.3% of the total loan and lease portfolio as of December 31, 2018. The commercial and industrial segment of the portfolio had a delinquency rate on performing loans, as of December 31, 2018, of 0.09%, as compared to 0.13% as of December 31, 2017. Nonperforming commercial and industrial loans comprised 0.30% of the commercial and industrial segment of the portfolio as of December 31, 2018, as compared to 0.24% as of December 31, 2017. The commercial and industrial segment of the portfolio consists primarily of loans to privately held businesses and non-profit institutions headquartered within the Corporation’s traditional market area. While some of these loans are collateralized by real estate, others are collateralized by non-real estate business assets, including accounts receivable, inventory and equipment.
|
•
|
Home Equity Loans and Lines of Credit
- Home equity loans and lines of credit were $207.4 million as of December 31, 2018, a decrease of $10.9 million from December 31, 2017. The home equity loans and lines of credit segment accounts for 6.1% of the total loan and lease portfolio as of December 31, 2018. The home equity loans and lines of credit segment of the portfolio had a delinquency rate on performing loans, as of December 31, 2018, of 0.05%, as compared to 0.16% as of December 31, 2017. Nonperforming home equity loans and lines of credit comprised 1.74% of the home equity loans and lines of credit segment of the portfolio as of December 31, 2018, as compared to 0.68% as of December 31, 2017. The Bank originates the majority of its home equity loans and lines of credit through its retail channel.
|
•
|
Consumer loans
- Consumer loans were $46.8 million as of December 31, 2018, an increase of $8.7 million from December 31, 2017. The consumer loan segment accounted for 1.4% of the total loan and lease portfolio as of December 31, 2018. The consumer loan segment of the portfolio had a delinquency rate on performing loans, as of December 31, 2018, of 0.09%, as compared to 2.90% as of December 31, 2017. Nonperforming consumer loans comprised 0.23% of the consumer loan segment of the portfolio as of December 31, 2018, as compared to no nonperforming consumer loans as of December 31, 2017. Consumer loans consist primarily of small-balance revolving or installment loans originated through the Bank's retail channel.
|
•
|
Leasing
- Leases totaled $144.5 million as of December 31, 2018, an increase of $29.1 million from December 31, 2017. The lease segment of the portfolio accounted for 4.2% of the total loan and lease portfolio as of December 31, 2018. The lease segment of the portfolio had a delinquency rate on performing leases, as of December 31, 2018, of 0.77%, as compared to 0.26% as of December 31, 2017. Nonperforming leases comprised 0.67% of the leasing segment of the portfolio as of December 31, 2018, as compared to 0.09% as of December 31, 2017.
|
|
For the Year Ended or as of December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Mortgage originations
|
$
|
162,854
|
|
|
$
|
190,007
|
|
|
$
|
280,059
|
|
Mortgage loans sold:
|
|
|
|
|
|
||||||
Servicing retained
|
$
|
1,850
|
|
|
$
|
103,439
|
|
|
$
|
138,134
|
|
Servicing released
|
86,518
|
|
|
27,871
|
|
|
22,829
|
|
|||
Total mortgage loans sold
|
$
|
88,368
|
|
|
$
|
131,310
|
|
|
$
|
160,963
|
|
Percentage of originated mortgage loans sold
|
54.3
|
%
|
|
69.1
|
%
|
|
57.5
|
%
|
|||
Servicing retained %
|
2.1
|
%
|
|
78.8
|
%
|
|
85.8
|
%
|
|||
Servicing released %
|
97.9
|
%
|
|
21.2
|
%
|
|
14.2
|
%
|
|||
Residential mortgage loans serviced for others
|
$
|
578,788
|
|
|
$
|
650,703
|
|
|
$
|
631,889
|
|
Mortgage servicing rights
|
$
|
5,047
|
|
|
$
|
5,861
|
|
|
$
|
5,582
|
|
Gain on sale of mortgage loans
|
$
|
2,477
|
|
|
$
|
2,038
|
|
|
$
|
2,693
|
|
Loan servicing and other fees
|
$
|
2,259
|
|
|
$
|
1,939
|
|
|
$
|
1,939
|
|
Amortization of MSRs
|
$
|
803
|
|
|
$
|
791
|
|
|
$
|
750
|
|
(Impairment) / Recovery of MSRs
|
$
|
(27
|
)
|
|
$
|
45
|
|
|
$
|
(131
|
)
|
|
As of December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Interest-bearing demand
|
$
|
664,749
|
|
|
$
|
481,336
|
|
|
$
|
379,424
|
|
|
$
|
338,861
|
|
|
$
|
277,228
|
|
Money market
|
862,644
|
|
|
862,639
|
|
|
761,657
|
|
|
749,726
|
|
|
566,354
|
|
|||||
Savings
|
247,081
|
|
|
338,572
|
|
|
232,193
|
|
|
187,299
|
|
|
138,992
|
|
|||||
Retail time deposits
|
542,702
|
|
|
532,202
|
|
|
322,912
|
|
|
229,253
|
|
|
118,400
|
|
|||||
Wholesale non-maturity deposits
|
55,031
|
|
|
62,276
|
|
|
74,272
|
|
|
67,717
|
|
|
66,693
|
|
|||||
Wholesale time deposits
|
325,261
|
|
|
171,929
|
|
|
73,037
|
|
|
53,185
|
|
|
73,458
|
|
|||||
Total interest-bearing deposits
|
$
|
2,697,468
|
|
|
$
|
2,448,954
|
|
|
$
|
1,843,495
|
|
|
$
|
1,626,041
|
|
|
$
|
1,241,125
|
|
Noninterest-bearing deposits
|
901,619
|
|
|
924,844
|
|
|
736,180
|
|
|
626,684
|
|
|
446,903
|
|
|||||
Total deposits
|
$
|
3,599,087
|
|
|
$
|
3,373,798
|
|
|
$
|
2,579,675
|
|
|
$
|
2,252,725
|
|
|
$
|
1,688,028
|
|
(dollars in thousands)
|
Retail
|
|
Wholesale
|
||||
Three months or less
|
$
|
42,121
|
|
|
$
|
182,382
|
|
Three to six months
|
40,431
|
|
|
102,225
|
|
||
Six to twelve months
|
125,904
|
|
|
37,515
|
|
||
Greater than twelve months
|
57,828
|
|
|
—
|
|
||
Total
|
$
|
266,284
|
|
|
$
|
322,122
|
|
|
As of December 31,
|
||||||||||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Short-term borrowings
|
$
|
252,367
|
|
|
$
|
237,865
|
|
|
$
|
204,151
|
|
|
$
|
94,167
|
|
|
$
|
23,824
|
|
Long-term FHLB advances
|
55,374
|
|
|
139,140
|
|
|
189,742
|
|
|
254,863
|
|
|
260,146
|
|
|||||
Subordinated notes
|
98,526
|
|
|
98,416
|
|
|
29,532
|
|
|
29,479
|
|
|
—
|
|
|||||
Jr. subordinated debentures
|
21,580
|
|
|
21,416
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total borrowings
|
$
|
427,847
|
|
|
$
|
496,837
|
|
|
$
|
423,425
|
|
|
$
|
378,509
|
|
|
$
|
283,970
|
|
Discussion of Segments
|
(dollars in thousands)
|
Wealth Assets as of:
|
||||||||||
Fee Basis
|
December 31,
2018 |
|
December 31,
2017 |
|
December 31,
2016 |
||||||
Market value
|
$
|
5,764,189
|
|
|
$
|
5,884,692
|
|
|
$
|
5,302,463
|
|
Fixed fee
|
7,665,355
|
|
|
7,084,046
|
|
|
6,025,994
|
|
|||
Total
|
$
|
13,429,544
|
|
|
$
|
12,968,738
|
|
|
$
|
11,328,457
|
|
(dollars in thousands)
|
For the Year Ended:
|
||||||||||
Fee Basis
|
December 31,
2018 |
|
December 31,
2017 |
|
December 31,
2016 |
||||||
Market value
|
$
|
31,142
|
|
|
$
|
29,752
|
|
|
$
|
28,418
|
|
Fixed fee
|
11,184
|
|
|
8,983
|
|
|
8,272
|
|
|||
Total
|
$
|
42,326
|
|
|
$
|
38,735
|
|
|
$
|
36,690
|
|
Capital and Regulatory Capital Ratios
|
Liquidity
|
Off Balance Sheet Risk
|
(dollars in
millions)
|
Total
|
|
Within
1 Year
|
|
2 - 3
Years
|
|
4 - 5
Years
|
|
After
5 Years
|
||||||||||
Unfunded loan commitments
|
$
|
867.2
|
|
|
$
|
433.7
|
|
|
$
|
138.6
|
|
|
$
|
45.0
|
|
|
$
|
249.9
|
|
Standby letters of credit
|
21.2
|
|
|
17.1
|
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
888.4
|
|
|
$
|
450.8
|
|
|
$
|
142.7
|
|
|
$
|
45.0
|
|
|
$
|
249.9
|
|
Contractual Cash Obligations of the Corporation as of December 31, 2018
|
(dollars in thousands)
|
Total
|
|
Within
1 Year
|
|
2 - 3
Years
|
|
4 - 5
Years
|
|
After
5 Years
|
||||||||||
Deposits without a stated maturity
|
$
|
2,731,124
|
|
|
$
|
2,731,124
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Wholesale and retail certificates of deposit
|
867,963
|
|
|
739,766
|
|
|
115,409
|
|
|
11,901
|
|
|
887
|
|
|||||
Short-term borrowings
|
252,367
|
|
|
252,367
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Long-term FHLB Advances
|
55,374
|
|
|
28,105
|
|
|
27,269
|
|
|
—
|
|
|
—
|
|
|||||
Subordinated Notes
|
100,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|||||
Junior subordinated debentures
|
25,774
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,774
|
|
|||||
Operating leases
|
64,488
|
|
|
5,211
|
|
|
9,178
|
|
|
8,254
|
|
|
41,845
|
|
|||||
Purchase obligations
|
9,066
|
|
|
6,736
|
|
|
2,330
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
4,106,156
|
|
|
$
|
3,763,309
|
|
|
$
|
154,186
|
|
|
$
|
20,155
|
|
|
$
|
168,506
|
|
Other Information
|
|
Page
|
(dollars in thousands)
|
|
December 31,
2018 |
|
December 31,
2017 |
||||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
14,099
|
|
|
$
|
11,657
|
|
Interest bearing deposits with banks
|
|
34,357
|
|
|
48,367
|
|
||
Cash and cash equivalents
|
|
48,456
|
|
|
60,024
|
|
||
Investment securities available for sale, at fair value (amortized cost of $745,328 and $692,824 as of December 31, 2018 and December 31, 2017, respectively)
|
|
737,442
|
|
|
689,202
|
|
||
Investment securities held to maturity, at amortized cost (fair value of $8,438 and $7,851 as of December 31, 2018 and December 31, 2017, respectively)
|
|
8,684
|
|
|
7,932
|
|
||
Investment securities, trading
|
|
7,502
|
|
|
4,610
|
|
||
Loans held for sale
|
|
1,749
|
|
|
3,794
|
|
||
Portfolio loans and leases, originated
|
|
2,885,251
|
|
|
2,487,296
|
|
||
Portfolio loans and leases, acquired
|
|
541,903
|
|
|
798,562
|
|
||
Total portfolio loans and leases
|
|
3,427,154
|
|
|
3,285,858
|
|
||
Less: Allowance for originated loan and lease losses
|
|
(19,329
|
)
|
|
(17,475
|
)
|
||
Less: Allowance for acquired loan and lease losses
|
|
(97
|
)
|
|
(50
|
)
|
||
Total allowance for loans and lease losses
|
|
(19,426
|
)
|
|
(17,525
|
)
|
||
Net portfolio loans and leases
|
|
3,407,728
|
|
|
3,268,333
|
|
||
Premises and equipment, net
|
|
65,648
|
|
|
54,458
|
|
||
Accrued interest receivable
|
|
12,585
|
|
|
14,246
|
|
||
Mortgage servicing rights
|
|
5,047
|
|
|
5,861
|
|
||
Bank owned life insurance
|
|
57,844
|
|
|
56,667
|
|
||
Federal Home Loan Bank stock
|
|
14,530
|
|
|
20,083
|
|
||
Goodwill
|
|
184,012
|
|
|
179,889
|
|
||
Intangible assets
|
|
23,455
|
|
|
25,966
|
|
||
Other investments
|
|
16,526
|
|
|
12,470
|
|
||
Other assets
|
|
61,277
|
|
|
46,185
|
|
||
Total assets
|
|
$
|
4,652,485
|
|
|
$
|
4,449,720
|
|
Liabilities
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
901,619
|
|
|
$
|
924,844
|
|
Interest-bearing
|
|
2,697,468
|
|
|
2,448,954
|
|
||
Total deposits
|
|
3,599,087
|
|
|
3,373,798
|
|
||
Short-term borrowings
|
|
252,367
|
|
|
237,865
|
|
||
Long-term FHLB advances
|
|
55,374
|
|
|
139,140
|
|
||
Subordinated notes
|
|
98,526
|
|
|
98,416
|
|
||
Junior subordinated debentures
|
|
21,580
|
|
|
21,416
|
|
||
Accrued interest payable
|
|
6,652
|
|
|
3,527
|
|
||
Other liabilities
|
|
54,195
|
|
|
47,439
|
|
||
Total liabilities
|
|
4,087,781
|
|
|
3,921,601
|
|
||
Shareholders' equity
|
|
|
|
|
||||
Common stock, par value $1; authorized 100,000,000 shares; issued 24,545,348 and 24,360,049 shares as of December 31, 2018 and December 31, 2017, respectively, and outstanding of 20,163,816 and 20,161,395 as of December 31, 2018 and December 31, 2017, respectively
|
|
24,545
|
|
|
24,360
|
|
||
Paid-in capital in excess of par value
|
|
374,010
|
|
|
371,486
|
|
||
Less: Common stock in treasury at cost - 4,381,532 and 4,198,654 shares as of December 31, 2018 and December 31, 2017, respectively
|
|
(75,883
|
)
|
|
(68,179
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
|
(7,513
|
)
|
|
(4,414
|
)
|
||
Retained earnings
|
|
250,230
|
|
|
205,549
|
|
||
Total Bryn Mawr Bank Corporation shareholders' equity
|
|
565,389
|
|
|
528,802
|
|
||
Noncontrolling interest
|
|
(685
|
)
|
|
(683
|
)
|
||
Total shareholders' equity
|
|
564,704
|
|
|
528,119
|
|
||
Total liabilities and shareholders' equity
|
|
$
|
4,652,485
|
|
|
$
|
4,449,720
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
(dollars in thousands, except per share data)
|
|
|
|
|
|
||||||
Interest income:
|
|
|
|
|
|
||||||
Interest and fees on loans and leases
|
$
|
168,638
|
|
|
$
|
120,762
|
|
|
$
|
110,536
|
|
Interest on cash and cash equivalents
|
264
|
|
|
174
|
|
|
168
|
|
|||
Interest on investment securities:
|
|
|
|
|
|
||||||
Taxable
|
11,854
|
|
|
8,136
|
|
|
5,575
|
|
|||
Non-taxable
|
293
|
|
|
388
|
|
|
497
|
|
|||
Dividends
|
6
|
|
|
99
|
|
|
215
|
|
|||
Total interest income
|
181,055
|
|
|
129,559
|
|
|
116,991
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Interest on deposits
|
20,552
|
|
|
8,748
|
|
|
5,833
|
|
|||
Interest on short-term borrowings
|
3,392
|
|
|
1,390
|
|
|
93
|
|
|||
Interest on FHLB advances and other borrowings
|
1,777
|
|
|
2,620
|
|
|
3,353
|
|
|||
Interest on subordinated notes
|
4,575
|
|
|
1,628
|
|
|
1,476
|
|
|||
Interest on junior subordinated debentures
|
1,288
|
|
|
46
|
|
|
—
|
|
|||
Total interest expense
|
31,584
|
|
|
14,432
|
|
|
10,755
|
|
|||
Net interest income
|
149,471
|
|
|
115,127
|
|
|
106,236
|
|
|||
Provision for loan and lease losses
|
7,193
|
|
|
2,618
|
|
|
4,326
|
|
|||
Net interest income after provision for loan and lease losses
|
142,278
|
|
|
112,509
|
|
|
101,910
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Fees for wealth management services
|
42,326
|
|
|
38,735
|
|
|
36,690
|
|
|||
Insurance commissions
|
6,808
|
|
|
4,589
|
|
|
3,722
|
|
|||
Capital markets revenue
|
4,848
|
|
|
2,396
|
|
|
—
|
|
|||
Service charges on deposits
|
2,989
|
|
|
2,608
|
|
|
2,791
|
|
|||
Loan servicing and other fees
|
2,259
|
|
|
2,106
|
|
|
1,939
|
|
|||
Net gain on sale of loans
|
3,283
|
|
|
2,441
|
|
|
3,048
|
|
|||
Net gain (loss) on sale of investment securities available for sale
|
7
|
|
|
101
|
|
|
(77
|
)
|
|||
Net gain (loss) on sale of other real estate owned ("OREO")
|
295
|
|
|
(104
|
)
|
|
(76
|
)
|
|||
Dividends on FHLB and FRB stock
|
1,621
|
|
|
939
|
|
|
1,063
|
|
|||
Other operating income
|
11,546
|
|
|
5,321
|
|
|
4,868
|
|
|||
Total noninterest income
|
75,982
|
|
|
59,132
|
|
|
53,968
|
|
|||
Noninterest expenses:
|
|
|
|
|
|
||||||
Salaries and wages
|
66,671
|
|
|
53,251
|
|
|
47,411
|
|
|||
Employee benefits
|
12,918
|
|
|
10,170
|
|
|
9,249
|
|
|||
Occupancy and bank premises
|
11,599
|
|
|
9,906
|
|
|
9,611
|
|
|||
Furniture, fixtures, and equipment
|
8,407
|
|
|
7,385
|
|
|
7,520
|
|
|||
Advertising
|
1,719
|
|
|
1,454
|
|
|
1,381
|
|
|||
Amortization of intangible assets
|
3,656
|
|
|
2,734
|
|
|
3,498
|
|
|||
Due diligence, merger-related and merger integration expenses
|
7,761
|
|
|
6,104
|
|
|
—
|
|
|||
Professional fees
|
4,203
|
|
|
3,268
|
|
|
3,659
|
|
|||
Pennsylvania bank shares tax
|
1,792
|
|
|
1,294
|
|
|
1,749
|
|
|||
Information technology
|
4,942
|
|
|
3,581
|
|
|
3,661
|
|
|||
Other operating expenses
|
16,635
|
|
|
15,248
|
|
|
13,935
|
|
|||
Total noninterest expenses
|
140,303
|
|
|
114,395
|
|
|
101,674
|
|
|||
Income before income taxes
|
77,957
|
|
|
57,246
|
|
|
54,204
|
|
|||
Income tax expense
|
14,165
|
|
|
34,230
|
|
|
18,168
|
|
|||
Net income
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
Net (loss) income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net income attributable to Bryn Mawr Bank Corporation
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
Basic earnings per common share
|
$
|
3.15
|
|
|
$
|
1.34
|
|
|
$
|
2.14
|
|
Diluted earnings per common share
|
$
|
3.13
|
|
|
$
|
1.32
|
|
|
$
|
2.12
|
|
Dividends declared per share
|
$
|
0.94
|
|
|
$
|
0.86
|
|
|
$
|
0.82
|
|
Weighted-average basic shares outstanding
|
20,234,792
|
|
|
17,150,125
|
|
|
16,859,623
|
|
|||
Dilutive shares
|
155,375
|
|
|
248,798
|
|
|
168,499
|
|
|||
Adjusted weighted-average diluted shares
|
20,390,167
|
|
|
17,398,923
|
|
|
17,028,122
|
|
(dollars in thousands)
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income attributable to Bryn Mawr Bank Corporation
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
|
|
|
|
|
|
||||||
Other comprehensive loss:
|
|
|
|
|
|
||||||
Net change in unrealized losses on investment securities available for sale:
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period, net of tax benefit of $(806), $(570) and $(1,106), respectively
|
(3,033
|
)
|
|
(1,057
|
)
|
|
(2,055
|
)
|
|||
Reclassification adjustment for net (gain) loss on sale realized in net income, net of tax (expense) benefit of $(1), $(35), and $27, respectively
|
(6
|
)
|
|
(66
|
)
|
|
50
|
|
|||
Reclassification adjustment for net gain realized on transfer of investment securities available for sale to trading, net of tax expense of $(88), $0 and $0, respectively
|
(329
|
)
|
|
—
|
|
|
—
|
|
|||
Unrealized investment losses, net of tax benefit of $(895), $(605) and $(1,079), respectively
|
(3,368
|
)
|
|
(1,123
|
)
|
|
(2,005
|
)
|
|||
Net change in unfunded pension liability:
|
|
|
|
|
|
||||||
Change in unfunded pension liability related to unrealized loss, prior service cost and transition obligation, net of tax expense (benefit) of $72, $(54) and $5, respectively
|
269
|
|
|
(100
|
)
|
|
8
|
|
|||
Total other comprehensive loss
|
(3,099
|
)
|
|
(1,223
|
)
|
|
(1,997
|
)
|
|||
Total comprehensive income
|
$
|
60,693
|
|
|
$
|
21,793
|
|
|
$
|
34,039
|
|
(dollars in thousands)
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income attributable to Bryn Mawr Bank Corporation
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan and lease losses
|
7,193
|
|
|
2,618
|
|
|
4,326
|
|
|||
Depreciation of premises and equipment
|
6,610
|
|
|
5,551
|
|
|
5,630
|
|
|||
Loss on disposal of premises and equipment
|
1,627
|
|
|
—
|
|
|
—
|
|
|||
Net amortization of investment premiums and discounts
|
3,044
|
|
|
2,990
|
|
|
3,200
|
|
|||
Net (gain) loss on sale of investment securities available for sale
|
(7
|
)
|
|
(101
|
)
|
|
77
|
|
|||
Net gain on sale of loans
|
(3,283
|
)
|
|
(2,441
|
)
|
|
(3,048
|
)
|
|||
Stock-based compensation
|
2,750
|
|
|
2,068
|
|
|
1,713
|
|
|||
Amortization and net impairment of mortgage servicing rights
|
830
|
|
|
744
|
|
|
880
|
|
|||
Net accretion of fair value adjustments
|
(9,883
|
)
|
|
(2,376
|
)
|
|
(3,776
|
)
|
|||
Amortization of intangible assets
|
3,656
|
|
|
2,734
|
|
|
3,498
|
|
|||
Impairment of other real estate owned ("OREO") and other repossessed assets
|
89
|
|
|
208
|
|
|
94
|
|
|||
Net (gain) loss on sale of OREO
|
(295
|
)
|
|
104
|
|
|
76
|
|
|||
Net increase in cash surrender value of bank owned life insurance ("BOLI")
|
(1,177
|
)
|
|
(838
|
)
|
|
(908
|
)
|
|||
Other, net
|
532
|
|
|
(788
|
)
|
|
79
|
|
|||
Loans originated for resale
|
(86,323
|
)
|
|
(125,482
|
)
|
|
(161,597
|
)
|
|||
Proceeds from loans sold
|
91,353
|
|
|
132,639
|
|
|
162,762
|
|
|||
Provision for deferred income taxes
|
9,839
|
|
|
20,418
|
|
|
1,676
|
|
|||
Settlement of pension liability acquired in RBPI Merger
|
—
|
|
|
(15,233
|
)
|
|
—
|
|
|||
Change in income taxes payable/receivable
|
415
|
|
|
(7,917
|
)
|
|
4,340
|
|
|||
Change in accrued interest receivable
|
1,661
|
|
|
(3,178
|
)
|
|
(664
|
)
|
|||
Change in accrued interest payable
|
3,125
|
|
|
(2,023
|
)
|
|
883
|
|
|||
Change in other assets
|
(19,222
|
)
|
|
(3,471
|
)
|
|
865
|
|
|||
Change in other liabilities
|
2,909
|
|
|
3,690
|
|
|
(1,914
|
)
|
|||
Net cash provided by operating activities
|
79,235
|
|
|
32,932
|
|
|
54,228
|
|
|||
Investing activities:
|
|
|
|
|
|
||||||
Purchases of investment securities available for sale
|
(338,421
|
)
|
|
(445,294
|
)
|
|
(350,669
|
)
|
|||
Purchases of investment securities held to maturity
|
(1,328
|
)
|
|
(5,189
|
)
|
|
(2,928
|
)
|
|||
Proceeds from maturity and paydowns of investment securities available for sale
|
278,895
|
|
|
283,545
|
|
|
65,176
|
|
|||
Proceeds from maturity and paydowns of investment securities held to maturity
|
532
|
|
|
108
|
|
|
34
|
|
|||
Proceeds from sale of investment securities available for sale
|
7
|
|
|
130,858
|
|
|
276
|
|
|||
Net change in FHLB stock
|
5,553
|
|
|
(2,778
|
)
|
|
(4,363
|
)
|
|||
Proceeds from calls of investment securities
|
810
|
|
|
25,682
|
|
|
60,840
|
|
|||
Proceeds from sales of other investments
|
—
|
|
|
—
|
|
|
664
|
|
|||
Net change in other investments
|
(4,056
|
)
|
|
2,059
|
|
|
264
|
|
|||
Purchase of domain name
|
—
|
|
|
(151
|
)
|
|
—
|
|
|||
Purchase of customer relationships
|
(366
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of portfolio loans and leases
|
(14,974
|
)
|
|
—
|
|
|
—
|
|
|||
Net portfolio loan and lease originations
|
(127,589
|
)
|
|
(180,869
|
)
|
|
(266,331
|
)
|
|||
Purchases of premises and equipment
|
(19,426
|
)
|
|
(8,304
|
)
|
|
(2,207
|
)
|
|||
Acquisitions, net of cash acquired
|
(380
|
)
|
|
12,301
|
|
|
—
|
|
|||
Proceeds from sale of OREO
|
525
|
|
|
1,048
|
|
|
1,806
|
|
|||
Net cash used in investing activities
|
(220,218
|
)
|
|
(186,984
|
)
|
|
(497,438
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Change in deposits
|
226,598
|
|
|
201,015
|
|
|
327,169
|
|
|||
Change in short-term borrowings
|
14,502
|
|
|
18,714
|
|
|
109,995
|
|
|||
Dividends paid
|
(19,289
|
)
|
|
(14,799
|
)
|
|
(13,961
|
)
|
|||
Change in long-term FHLB advances and other borrowings
|
(83,872
|
)
|
|
(110,049
|
)
|
|
(65,000
|
)
|
|||
Payment of contingent consideration for business combinations
|
(660
|
)
|
|
(642
|
)
|
|
(627
|
)
|
|||
Net proceeds from issuance of subordinated notes
|
—
|
|
|
68,829
|
|
|
—
|
|
|||
Cash payments to taxing authorities on employees' behalf from shares withheld from stock-based compensation
|
(1,639
|
)
|
|
(1,140
|
)
|
|
(745
|
)
|
|||
Net proceeds from sale of (purchase of) treasury stock for deferred compensation plans
|
2
|
|
|
(115
|
)
|
|
(133
|
)
|
|||
Repurchase of warrants from U.S. Treasury
|
(1,755
|
)
|
|
—
|
|
|
—
|
|
|||
Net purchase of treasury stock through publicly announced plans
|
(5,936
|
)
|
|
—
|
|
|
(7,971
|
)
|
|||
Proceeds from exercise of stock options
|
1,464
|
|
|
1,498
|
|
|
2,181
|
|
|||
Net cash provided by financing activities
|
129,415
|
|
|
163,311
|
|
|
350,908
|
|
|||
|
|
|
|
|
|
Change in cash and cash equivalents
|
(11,568
|
)
|
|
9,259
|
|
|
(92,302
|
)
|
|||
Cash and cash equivalents at beginning of period
|
60,024
|
|
|
50,765
|
|
|
143,067
|
|
|||
Cash and cash equivalents at end of period
|
$
|
48,456
|
|
|
$
|
60,024
|
|
|
$
|
50,765
|
|
Supplemental cash flow information:
|
|
|
|
|
|
||||||
Cash paid during the year for:
|
|
|
|
|
|
||||||
Income taxes
|
$
|
3,449
|
|
|
$
|
21,632
|
|
|
$
|
12,261
|
|
Interest
|
$
|
28,453
|
|
|
$
|
13,639
|
|
|
$
|
9,872
|
|
Non-cash information:
|
|
|
|
|
|
||||||
Change in other comprehensive loss
|
$
|
(3,099
|
)
|
|
$
|
(1,223
|
)
|
|
$
|
(1,997
|
)
|
Change in deferred tax due to change in comprehensive income
|
$
|
(823
|
)
|
|
$
|
(659
|
)
|
|
$
|
(1,074
|
)
|
Transfer of loans to other real estate owned and repossessed assets
|
$
|
372
|
|
|
$
|
342
|
|
|
$
|
546
|
|
Issuance of shares, warrants and options for acquisitions
|
$
|
—
|
|
|
$
|
138,509
|
|
|
$
|
—
|
|
Acquisition of noncash assets and liabilities:
|
|
|
|
|
|
||||||
Assets acquired
|
$
|
1,096
|
|
|
$
|
849,610
|
|
|
$
|
—
|
|
Liabilities assumed
|
$
|
687
|
|
|
$
|
724,085
|
|
|
$
|
—
|
|
|
For the Years Ended December 31, 2016, 2017, and 2018
|
|||||||||||||||||||||||||||||
|
Shares of
Common
Stock
Issued
|
|
Common
Stock
|
|
Paid-in
Capital
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Noncontrolling
Interest
|
|
Total
Shareholders'
Equity
|
|||||||||||||||
Balance December 31, 2015
|
20,931,416
|
|
|
$
|
20,931
|
|
|
$
|
228,814
|
|
|
$
|
(58,144
|
)
|
|
$
|
(412
|
)
|
|
$
|
174,522
|
|
|
$
|
—
|
|
|
$
|
365,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,036
|
|
|
—
|
|
|
36,036
|
|
|||||||
Tax provision-to-return adjustment related to excess tax benefit on stock-based compensation
|
—
|
|
|
—
|
|
|
197
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
197
|
|
|||||||
Dividends paid or accrued, $0.82 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,989
|
)
|
|
—
|
|
|
(13,989
|
)
|
|||||||
Other comprehensive loss, net of tax benefit of $1,074
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,997
|
)
|
|
—
|
|
|
—
|
|
|
(1,997
|
)
|
|||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
1,713
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,713
|
|
|||||||
Retirement of treasury stock
|
(4,320
|
)
|
|
(4
|
)
|
|
(39
|
)
|
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Net purchase of treasury stock through publicly announced plans
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,971
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,971
|
)
|
|||||||
Net purchase of treasury stock from stock award and deferred compensation plans
|
—
|
|
|
—
|
|
|
—
|
|
|
(878
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(878
|
)
|
|||||||
Common stock issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Common stock issued through share-based awards and options exercises
|
183,872
|
|
|
184
|
|
|
2,121
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,305
|
|
|||||||
Balance December 31, 2016
|
21,110,968
|
|
|
$
|
21,111
|
|
|
$
|
232,806
|
|
|
$
|
(66,950
|
)
|
|
$
|
(2,409
|
)
|
|
$
|
196,569
|
|
|
$
|
—
|
|
|
$
|
381,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,016
|
|
|
—
|
|
|
23,016
|
|
|||||||
Dividends paid or accrued, $0.86 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,818
|
)
|
|
—
|
|
|
(14,818
|
)
|
|||||||
Other comprehensive loss, net of tax benefit of $659
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,223
|
)
|
|
—
|
|
|
—
|
|
|
(1,223
|
)
|
|||||||
Reclassification due to the adoption of ASU No. 2018-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(782
|
)
|
|
782
|
|
|
—
|
|
|
—
|
|
|||||||
Stock-based compensation
|
—
|
|
|
—
|
|
|
2,068
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,068
|
|
|||||||
Form S-4 stock issuance costs
|
—
|
|
|
—
|
|
|
(233
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(233
|
)
|
|||||||
Retirement of treasury stock
|
(2,628
|
)
|
|
(3
|
)
|
|
(23
|
)
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Net purchase of treasury stock from stock awards for statutory tax withholdings
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,140
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,140
|
)
|
|||||||
Net purchase of treasury stock for deferred compensation trusts
|
—
|
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(115
|
)
|
|||||||
Stock warrants assumed in acquisitions
|
—
|
|
|
—
|
|
|
1,854
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,854
|
|
|||||||
Noncontrolling interest assumed in acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(683
|
)
|
|
(683
|
)
|
|||||||
Common stock issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Shares issued in acquisitions
|
3,098,754
|
|
|
3,099
|
|
|
133,556
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
136,655
|
|
|||||||
Common stock issued through share-based awards and options exercises
|
152,955
|
|
|
153
|
|
|
1,458
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,611
|
|
|||||||
Balance December 31, 2017
|
24,360,049
|
|
|
$
|
24,360
|
|
|
$
|
371,486
|
|
|
$
|
(68,179
|
)
|
|
$
|
(4,414
|
)
|
|
$
|
205,549
|
|
|
$
|
(683
|
)
|
|
$
|
528,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended December 31, 2016, 2017, and 2018
|
|||||||||||||||||||||||||||||
|
Shares of
Common
Stock
Issued
|
|
Common
Stock
|
|
Paid-in
Capital
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Noncontrolling
Interest
|
|
Total
Shareholders'
Equity
|
|||||||||||||||
Net income attributable to Bryn Mawr Bank Corporation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63,792
|
|
|
—
|
|
|
63,792
|
|
|||||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Goodwill measurement period adjustment effect on noncontrolling interest
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||||
Dividends paid or accrued, $0.94 per share
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,209
|
)
|
|
—
|
|
|
(19,209
|
)
|
|||||||
Other comprehensive loss, net of tax benefit of $823
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,099
|
)
|
|
—
|
|
|
—
|
|
|
(3,099
|
)
|
|||||||
Stock based compensation
|
—
|
|
|
—
|
|
|
2,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,750
|
|
|||||||
Retirement of treasury stock
|
(2,253
|
)
|
|
(2
|
)
|
|
(20
|
)
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Net purchase of treasury stock from stock awards for statutory tax withholdings
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,639
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,639
|
)
|
|||||||
Net treasury stock activity for deferred compensation trusts
|
—
|
|
|
—
|
|
|
153
|
|
|
(151
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||||
Purchase of treasury stock through publicly announced plans
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,936
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,936
|
)
|
|||||||
Repurchase of warrants from U.S. Treasury
|
—
|
|
|
—
|
|
|
(1,853
|
)
|
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
(1,755
|
)
|
|||||||
Common stock issued:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||||||||||||||
Common stock issued through share-based awards and options exercises
|
184,990
|
|
|
184
|
|
|
1,382
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,566
|
|
|||||||
Shares issued in acquisitions
(1)
|
2,562
|
|
|
3
|
|
|
110
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
113
|
|
|||||||
Balance December 31, 2018
|
24,545,348
|
|
|
$
|
24,545
|
|
|
$
|
374,010
|
|
|
$
|
(75,883
|
)
|
|
$
|
(7,513
|
)
|
|
$
|
250,230
|
|
|
$
|
(685
|
)
|
|
$
|
564,704
|
|
•
|
Increases / decreases to the time period management deems reasonably and supportably forecastable
|
•
|
Inclusion / exclusion of forecast factors
|
•
|
Adverse changes to reasonable and supportable forecasts
|
•
|
Detectable increases / decreases in the Corporation’s or comparable industry credit loss parameters
|
•
|
Deterioration / improvement in the risk profile of the Corporation’s loan and lease portfolio
|
•
|
Decreased / increased prepayment behavior or other factors impacting loan and lease portfolio duration
|
•
|
Changes in credit risk through the ordinary course of operations, such as launch or expansion of higher risk-bearing products
|
•
|
Interest rate fluctuations impacting effective yield on certain instruments.
|
•
|
recognized operating lease liabilities of approximately
$49.1 million
, with corresponding ROU assets of the same amount, based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases, and
|
•
|
derecognized
$541 thousand
of favorable lease assets,
$2.2 million
in unfavorable lease liabilities, and
$2.5 million
in deferred rent, with a corresponding adjustment to the ROU asset for the same amounts.
|
(dollars in thousands)
|
|
||
Consideration paid:
|
|
||
Cash paid at closing
|
$
|
750
|
|
Contingent payment liability (present value)
|
706
|
|
|
Value of consideration
|
$
|
1,456
|
|
|
|
||
Assets acquired:
|
|
||
Cash and due from banks
|
370
|
|
|
Intangible assets - customer relationships
|
779
|
|
|
Premises and equipment
|
1
|
|
|
Other assets
|
316
|
|
|
Total assets
|
1,466
|
|
|
|
|
||
Liabilities assumed:
|
|
||
Accounts payable
|
657
|
|
|
Other liabilities
|
30
|
|
|
Total liabilities
|
$
|
687
|
|
|
|
||
Net assets acquired
|
$
|
779
|
|
|
|
||
Goodwill resulting from acquisition of Domenick
|
$
|
677
|
|
(dollars in thousands)
|
|
||
Consideration paid:
|
|
||
Common shares issued (3,101,316)
|
$
|
136,768
|
|
Cash in lieu of fractional shares
|
7
|
|
|
Cash-out of certain options
|
112
|
|
|
Fair value of warrants assumed
|
1,853
|
|
|
Value of consideration
|
$
|
138,740
|
|
|
|
||
Assets acquired:
|
|
||
Cash and due from banks
|
17,092
|
|
|
Investment securities available for sale
|
121,587
|
|
|
Loans
|
566,228
|
|
|
Premises and equipment
|
8,264
|
|
|
Deferred income taxes
|
34,823
|
|
|
Bank-owned life insurance
|
16,550
|
|
|
Core deposit intangible
|
4,670
|
|
|
Favorable lease asset
|
566
|
|
|
Other assets
|
13,611
|
|
|
Total assets
|
$
|
783,391
|
|
|
|
||
Liabilities assumed:
|
|
||
Deposits
|
593,172
|
|
|
FHLB and other long-term borrowings
|
59,568
|
|
|
Short-term borrowings
|
15,000
|
|
|
Junior subordinated debentures
|
21,416
|
|
|
Unfavorable lease liability
|
322
|
|
|
Other liabilities
|
31,381
|
|
|
Total liabilities
|
$
|
720,859
|
|
|
|
||
Net assets acquired
|
$
|
62,532
|
|
|
|
||
Goodwill resulting from acquisition of
RBPI
|
$
|
76,208
|
|
(dollars in thousands)
|
|
||
Goodwill resulting from the acquisition of RBPI reported as of December 31, 2017
|
$
|
72,762
|
|
|
|
||
Value of Consideration Adjustment:
|
|
||
Common shares issued (2,562)
|
113
|
|
|
|
|
||
Fair Value Adjustments:
|
|
||
Loans
|
4,145
|
|
|
Other assets
|
876
|
|
|
Deferred income taxes
|
(1,688
|
)
|
|
Total Fair Value Adjustments
|
3,333
|
|
|
|
|
||
Goodwill from the acquisition of RBPI as of December 31, 2018
|
$
|
76,208
|
|
(dollars in thousands)
|
|
||
Consideration paid:
|
|
||
Cash paid at closing
|
$
|
5,770
|
|
Contingent payment liability (present value)
|
1,690
|
|
|
Value of consideration
|
7,460
|
|
|
|
|
||
Assets acquired:
|
|
||
Cash operating accounts
|
978
|
|
|
Intangible assets – trade name
|
195
|
|
|
Intangible assets – customer relationships
|
2,672
|
|
|
Intangible assets – non-competition agreements
|
41
|
|
|
Premises and equipment
|
1,795
|
|
|
Accounts receivable
|
192
|
|
|
Other assets
|
27
|
|
|
Total assets
|
5,900
|
|
|
|
|
||
Liabilities assumed:
|
|
||
Accounts payable
|
800
|
|
|
Other liabilities
|
2
|
|
|
Total liabilities
|
802
|
|
|
|
|
||
Net assets acquired
|
5,098
|
|
|
|
|
||
Goodwill resulting from acquisition of Hirshorn
|
$
|
2,362
|
|
(dollars in thousands, except per share data)
|
|
Year Ended December 31,
|
||||||
|
|
2017
|
|
2016
|
||||
Total interest income
|
|
$
|
171,155
|
|
|
$
|
157,276
|
|
Total interest expense
|
|
20,065
|
|
|
17,086
|
|
||
Net interest income
|
|
151,090
|
|
|
140,190
|
|
||
Provision for loan and lease losses
|
|
3,454
|
|
|
5,568
|
|
||
Net interest income after provision for loan and lease losses
|
|
147,636
|
|
|
134,622
|
|
||
Total noninterest income
|
|
61,423
|
|
|
58,275
|
|
||
Total noninterest expenses
(1)
|
|
140,756
|
|
|
124,261
|
|
||
Income before income taxes
|
|
68,303
|
|
|
68,636
|
|
||
Income tax expense
|
|
40,841
|
|
|
23,006
|
|
||
Net income
|
|
$
|
27,462
|
|
|
$
|
45,630
|
|
Per share data
(2)
:
|
|
|
|
|
||||
Weighted-average basic shares outstanding
|
|
20,248,879
|
|
|
19,958,377
|
|
||
Dilutive shares
|
|
257,591
|
|
|
168,499
|
|
||
Adjusted weighted-average diluted shares
|
|
20,506,470
|
|
|
20,126,876
|
|
||
Basic earnings per common share
|
|
$
|
1.36
|
|
|
$
|
2.29
|
|
Diluted earnings per common share
|
|
$
|
1.34
|
|
|
$
|
2.27
|
|
|
Year Ended December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Advertising
|
$
|
61
|
|
|
$
|
180
|
|
|
$
|
—
|
|
Employee Benefits
|
271
|
|
|
21
|
|
|
—
|
|
|||
Occupancy and bank premises
|
2,145
|
|
|
—
|
|
|
—
|
|
|||
Furniture, fixtures, and equipment
|
365
|
|
|
109
|
|
|
—
|
|
|||
Information technology
|
421
|
|
|
837
|
|
|
—
|
|
|||
Professional fees
|
1,450
|
|
|
3,160
|
|
|
—
|
|
|||
Salaries and wages
|
852
|
|
|
1,285
|
|
|
—
|
|
|||
Other
|
2,196
|
|
|
512
|
|
|
—
|
|
|||
Total due diligence, merger-related and merger integration expenses
|
$
|
7,761
|
|
|
$
|
6,104
|
|
|
$
|
—
|
|
(dollars in thousands)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
U.S. Treasury securities
|
$
|
200,026
|
|
|
$
|
—
|
|
|
$
|
(13
|
)
|
|
$
|
200,013
|
|
Obligations of the U.S. government and agencies
|
198,604
|
|
|
107
|
|
|
(2,856
|
)
|
|
195,855
|
|
||||
Obligations of state and political subdivisions
|
11,372
|
|
|
3
|
|
|
(43
|
)
|
|
11,332
|
|
||||
Mortgage-backed securities
|
294,076
|
|
|
554
|
|
|
(4,740
|
)
|
|
289,890
|
|
||||
Collateralized mortgage obligations
|
40,150
|
|
|
141
|
|
|
(1,039
|
)
|
|
39,252
|
|
||||
Other investment securities
|
1,100
|
|
|
—
|
|
|
—
|
|
|
1,100
|
|
||||
Total
|
$
|
745,328
|
|
|
$
|
805
|
|
|
$
|
(8,691
|
)
|
|
$
|
737,442
|
|
(dollars in thousands)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
U.S. Treasury securities
|
$
|
200,077
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
200,088
|
|
Obligations of the U.S. government and agencies
|
153,028
|
|
|
75
|
|
|
(2,059
|
)
|
|
151,044
|
|
||||
Obligations of state and political subdivisions
|
21,352
|
|
|
11
|
|
|
(53
|
)
|
|
21,310
|
|
||||
Mortgage-backed securities
|
275,958
|
|
|
887
|
|
|
(1,855
|
)
|
|
274,990
|
|
||||
Collateralized mortgage obligations
|
37,596
|
|
|
14
|
|
|
(948
|
)
|
|
36,662
|
|
||||
Other investment securities
|
4,813
|
|
|
318
|
|
|
(23
|
)
|
|
5,108
|
|
||||
Total
|
$
|
692,824
|
|
|
$
|
1,316
|
|
|
$
|
(4,938
|
)
|
|
$
|
689,202
|
|
|
Less than 12
Months
|
|
12 Months
or Longer
|
|
Total
|
||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
|
Unrealized Losses
|
|
Fair
Value
|
|
Unrealized Losses
|
|
Fair
Value
|
|
Unrealized Losses
|
||||||||||||
U.S. Treasury securities
|
$
|
199,912
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
199,912
|
|
|
$
|
(13
|
)
|
Obligations of the U.S. government and agencies
|
12,916
|
|
|
(62
|
)
|
|
140,506
|
|
|
(2,794
|
)
|
|
153,422
|
|
|
(2,856
|
)
|
||||||
Obligations of state and political subdivisions
|
668
|
|
|
—
|
|
|
3,989
|
|
|
(43
|
)
|
|
4,657
|
|
|
(43
|
)
|
||||||
Mortgage-backed securities
|
43,276
|
|
|
(352
|
)
|
|
195,697
|
|
|
(4,388
|
)
|
|
238,973
|
|
|
(4,740
|
)
|
||||||
Collateralized mortgage obligations
|
540
|
|
|
(1
|
)
|
|
27,077
|
|
|
(1,038
|
)
|
|
27,617
|
|
|
(1,039
|
)
|
||||||
Total
|
$
|
257,312
|
|
|
$
|
(428
|
)
|
|
$
|
367,269
|
|
|
$
|
(8,263
|
)
|
|
$
|
624,581
|
|
|
$
|
(8,691
|
)
|
|
Less than 12
Months
|
|
12 Months
or Longer
|
|
Total
|
||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
|
Unrealized Losses
|
|
Fair
Value
|
|
Unrealized Losses
|
|
Fair
Value
|
|
Unrealized Losses
|
||||||||||||
Obligations of the U.S. government and agencies
|
$
|
114,120
|
|
|
$
|
(1,294
|
)
|
|
$
|
26,726
|
|
|
$
|
(765
|
)
|
|
$
|
140,846
|
|
|
$
|
(2,059
|
)
|
Obligations of state and political subdivisions
|
11,144
|
|
|
(29
|
)
|
|
2,709
|
|
|
(24
|
)
|
|
13,853
|
|
|
(53
|
)
|
||||||
Mortgage-backed securities
|
177,919
|
|
|
(1,293
|
)
|
|
31,787
|
|
|
(562
|
)
|
|
209,706
|
|
|
(1,855
|
)
|
||||||
Collateralized mortgage obligations
|
5,166
|
|
|
(47
|
)
|
|
26,686
|
|
|
(901
|
)
|
|
31,852
|
|
|
(948
|
)
|
||||||
Other investment securities
|
1,805
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
1,805
|
|
|
(23
|
)
|
||||||
Total
|
$
|
310,154
|
|
|
$
|
(2,686
|
)
|
|
$
|
87,908
|
|
|
$
|
(2,252
|
)
|
|
$
|
398,062
|
|
|
$
|
(4,938
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
||||||||
Due in one year or less
|
$
|
209,129
|
|
|
$
|
209,099
|
|
|
$
|
211,019
|
|
|
$
|
211,019
|
|
Due after one year through five years
|
180,657
|
|
|
177,972
|
|
|
126,452
|
|
|
124,797
|
|
||||
Due after five years through ten years
|
7,258
|
|
|
7,268
|
|
|
23,147
|
|
|
22,804
|
|
||||
Due after ten years
|
14,058
|
|
|
13,961
|
|
|
15,439
|
|
|
15,421
|
|
||||
Subtotal
|
411,102
|
|
|
408,300
|
|
|
376,057
|
|
|
374,041
|
|
||||
Mortgage-related securities
(1)
|
334,226
|
|
|
329,142
|
|
|
313,554
|
|
|
311,652
|
|
||||
Mutual funds with no stated maturity
|
—
|
|
|
—
|
|
|
3,213
|
|
|
3,509
|
|
||||
Total
|
$
|
745,328
|
|
|
$
|
737,442
|
|
|
$
|
692,824
|
|
|
$
|
689,202
|
|
(dollars in thousands)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Mortgage-backed securities
|
$
|
8,684
|
|
|
$
|
—
|
|
|
$
|
(246
|
)
|
|
$
|
8,438
|
|
(dollars in thousands)
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||
Mortgage-backed securities
|
$
|
7,932
|
|
|
$
|
5
|
|
|
$
|
(86
|
)
|
|
$
|
7,851
|
|
|
Less than 12
Months
|
|
12 Months
or Longer
|
|
Total
|
||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Mortgage-backed securities
|
$
|
1,315
|
|
|
$
|
(4
|
)
|
|
$
|
7,123
|
|
|
$
|
(242
|
)
|
|
$
|
8,438
|
|
|
$
|
(246
|
)
|
|
Less than 12
Months
|
|
12 Months
or Longer
|
|
Total
|
||||||||||||||||||
(dollars in thousands)
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
Mortgage-backed securities
|
$
|
2,756
|
|
|
$
|
(25
|
)
|
|
$
|
3,866
|
|
|
$
|
(61
|
)
|
|
$
|
6,622
|
|
|
$
|
(86
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
(dollars in thousands)
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
Mortgage-backed securities
(1)
|
$
|
8,684
|
|
|
$
|
8,438
|
|
|
$
|
7,932
|
|
|
$
|
7,851
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(dollars in thousands)
|
Originated
|
|
Acquired
|
|
Total Loans and Leases
|
|
Originated
|
|
Acquired
|
|
Total Loans and Leases
|
||||||||||||
Loans held for sale
|
$
|
1,749
|
|
|
$
|
—
|
|
|
$
|
1,749
|
|
|
$
|
3,794
|
|
|
$
|
—
|
|
|
$
|
3,794
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage
|
$
|
1,327,822
|
|
|
$
|
329,614
|
|
|
$
|
1,657,436
|
|
|
$
|
1,122,327
|
|
|
$
|
401,050
|
|
|
$
|
1,523,377
|
|
Home equity lines and loans
|
181,506
|
|
|
25,845
|
|
|
207,351
|
|
|
183,283
|
|
|
34,992
|
|
|
218,275
|
|
||||||
Residential mortgage
|
411,022
|
|
|
83,333
|
|
|
494,355
|
|
|
360,935
|
|
|
97,951
|
|
|
458,886
|
|
||||||
Construction
|
174,592
|
|
|
6,486
|
|
|
181,078
|
|
|
128,266
|
|
|
84,188
|
|
|
212,454
|
|
||||||
Total real estate loans
|
2,094,942
|
|
|
445,278
|
|
|
2,540,220
|
|
|
1,794,811
|
|
|
618,181
|
|
|
2,412,992
|
|
||||||
Commercial and industrial
|
624,643
|
|
|
70,941
|
|
|
695,584
|
|
|
589,304
|
|
|
130,008
|
|
|
719,312
|
|
||||||
Consumer
|
44,099
|
|
|
2,715
|
|
|
46,814
|
|
|
35,146
|
|
|
3,007
|
|
|
38,153
|
|
||||||
Leases
|
121,567
|
|
|
22,969
|
|
|
144,536
|
|
|
68,035
|
|
|
47,366
|
|
|
115,401
|
|
||||||
Total portfolio loans and leases
|
2,885,251
|
|
|
541,903
|
|
|
3,427,154
|
|
|
2,487,296
|
|
|
798,562
|
|
|
3,285,858
|
|
||||||
Total loans and leases
|
$
|
2,887,000
|
|
|
$
|
541,903
|
|
|
$
|
3,428,903
|
|
|
$
|
2,491,090
|
|
|
$
|
798,562
|
|
|
$
|
3,289,652
|
|
Loans with fixed rates
|
$
|
1,204,070
|
|
|
$
|
323,604
|
|
|
$
|
1,527,674
|
|
|
$
|
1,034,542
|
|
|
$
|
538,510
|
|
|
$
|
1,573,052
|
|
Loans with adjustable or floating rates
|
1,682,930
|
|
|
218,299
|
|
|
1,901,229
|
|
|
1,456,548
|
|
|
260,052
|
|
|
1,716,600
|
|
||||||
Total loans and leases
|
$
|
2,887,000
|
|
|
$
|
541,903
|
|
|
$
|
3,428,903
|
|
|
$
|
2,491,090
|
|
|
$
|
798,562
|
|
|
$
|
3,289,652
|
|
Net deferred loan origination fees included in the above loan table
|
$
|
2,226
|
|
|
$
|
—
|
|
|
$
|
2,226
|
|
|
$
|
887
|
|
|
$
|
—
|
|
|
$
|
887
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(dollars in thousands)
|
Originated
|
|
Acquired
|
|
Total Leases
|
|
Originated
|
|
Acquired
|
|
Total Leases
|
||||||||||||
Minimum lease payments receivable
|
$
|
135,313
|
|
|
$
|
25,372
|
|
|
$
|
160,685
|
|
|
$
|
75,592
|
|
|
$
|
55,219
|
|
|
$
|
130,811
|
|
Unearned lease income
|
(19,388
|
)
|
|
(3,005
|
)
|
|
(22,393
|
)
|
|
(10,338
|
)
|
|
(9,523
|
)
|
|
(19,861
|
)
|
||||||
Initial direct costs and deferred fees
|
5,642
|
|
|
602
|
|
|
6,244
|
|
|
2,781
|
|
|
1,670
|
|
|
4,451
|
|
||||||
Total Leases
|
$
|
121,567
|
|
|
$
|
22,969
|
|
|
$
|
144,536
|
|
|
$
|
68,035
|
|
|
$
|
47,366
|
|
|
$
|
115,401
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
(dollars in thousands)
|
Originated
|
|
Acquired
|
|
Total Loans and Leases
|
|
Originated
|
|
Acquired
|
|
Total Loans and Leases
|
||||||||||||
Commercial mortgage
|
$
|
435
|
|
|
$
|
2,133
|
|
|
$
|
2,568
|
|
|
$
|
90
|
|
|
$
|
782
|
|
|
$
|
872
|
|
Home equity lines and loans
|
3,590
|
|
|
26
|
|
|
3,616
|
|
|
1,221
|
|
|
260
|
|
|
1,481
|
|
||||||
Residential mortgage
|
2,813
|
|
|
639
|
|
|
3,452
|
|
|
1,505
|
|
|
2,912
|
|
|
4,417
|
|
||||||
Commercial and industrial
|
1,786
|
|
|
315
|
|
|
2,101
|
|
|
826
|
|
|
880
|
|
|
1,706
|
|
||||||
Consumer
|
45
|
|
|
63
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Leases
|
392
|
|
|
583
|
|
|
975
|
|
|
103
|
|
|
—
|
|
|
103
|
|
||||||
Total non-performing loans and leases
|
$
|
9,061
|
|
|
$
|
3,759
|
|
|
$
|
12,820
|
|
|
$
|
3,745
|
|
|
$
|
4,834
|
|
|
$
|
8,579
|
|
(dollars in thousands)
|
December 31, 2018
|
|
December 31, 2017
|
||||
Outstanding principal balance
|
$
|
17,904
|
|
|
$
|
46,543
|
|
Carrying amount
(1)
|
$
|
12,304
|
|
|
$
|
30,849
|
|
(dollars in thousands)
|
Accretable
Discount
|
||
Balance, December 31, 2017
|
$
|
4,083
|
|
Accretion
|
(2,271
|
)
|
|
Reclassifications from nonaccretable difference
|
701
|
|
|
Additions/adjustments
|
329
|
|
|
Disposals
|
(145
|
)
|
|
Balance, December 31, 2018
|
$
|
2,697
|
|
|
Accruing Loans and Leases
|
|
|
|
|
||||||||||||||||||||||||||
As of December 31, 2018
|
30 – 59
Days
Past Due
|
|
60 – 89
Days
Past Due
|
|
Over 89 Days
Past Due
|
|
Total Past Due
|
|
Current*
|
|
Total
Accruing
Loans and
Leases
|
|
Nonaccrual
Loans and
Leases
|
|
Total
Loans and
Leases
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage
|
$
|
821
|
|
|
$
|
251
|
|
|
$
|
—
|
|
|
$
|
1,072
|
|
|
$
|
1,653,796
|
|
|
$
|
1,654,868
|
|
|
$
|
2,568
|
|
|
$
|
1,657,436
|
|
Home equity lines and loans
|
92
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
203,643
|
|
|
203,735
|
|
|
3,616
|
|
|
207,351
|
|
||||||||
Residential mortgage
|
2,330
|
|
|
218
|
|
|
—
|
|
|
2,548
|
|
|
488,355
|
|
|
490,903
|
|
|
3,452
|
|
|
494,355
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
181,078
|
|
|
181,078
|
|
|
—
|
|
|
181,078
|
|
||||||||
Commercial and industrial
|
280
|
|
|
332
|
|
|
—
|
|
|
612
|
|
|
692,871
|
|
|
693,483
|
|
|
2,101
|
|
|
695,584
|
|
||||||||
Consumer
|
35
|
|
|
5
|
|
|
—
|
|
|
40
|
|
|
46,666
|
|
|
46,706
|
|
|
108
|
|
|
46,814
|
|
||||||||
Leases
|
641
|
|
|
460
|
|
|
—
|
|
|
1,101
|
|
|
142,460
|
|
|
143,561
|
|
|
975
|
|
|
144,536
|
|
||||||||
Total portfolio loans and leases
|
$
|
4,199
|
|
|
$
|
1,266
|
|
|
$
|
—
|
|
|
$
|
5,465
|
|
|
$
|
3,408,869
|
|
|
$
|
3,414,334
|
|
|
$
|
12,820
|
|
|
$
|
3,427,154
|
|
|
Accruing Loans and Leases
|
|
|
|
|
||||||||||||||||||||||||||
As of December 31, 2017
|
30 – 59
Days
Past Due
|
|
60 – 89
Days
Past Due
|
|
Over 89 Days
Past Due
|
|
Total Past Due
|
|
Current*
|
|
Total Accruing Loans and Leases
|
|
Nonaccrual
Loans and
Leases
|
|
Total
Loans and
Leases
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage
|
$
|
1,366
|
|
|
$
|
2,428
|
|
|
$
|
—
|
|
|
$
|
3,794
|
|
|
$
|
1,518,711
|
|
|
$
|
1,522,505
|
|
|
$
|
872
|
|
|
$
|
1,523,377
|
|
Home equity lines and loans
|
338
|
|
|
10
|
|
|
—
|
|
|
348
|
|
|
216,446
|
|
|
216,794
|
|
|
1,481
|
|
|
218,275
|
|
||||||||
Residential mortgage
|
1,386
|
|
|
79
|
|
|
—
|
|
|
1,465
|
|
|
453,004
|
|
|
454,469
|
|
|
4,417
|
|
|
458,886
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
212,454
|
|
|
212,454
|
|
|
—
|
|
|
212,454
|
|
||||||||
Commercial and industrial
|
658
|
|
|
286
|
|
|
—
|
|
|
944
|
|
|
716,662
|
|
|
717,606
|
|
|
1,706
|
|
|
719,312
|
|
||||||||
Consumer
|
1,106
|
|
|
—
|
|
|
—
|
|
|
1,106
|
|
|
37,047
|
|
|
38,153
|
|
|
—
|
|
|
38,153
|
|
||||||||
Leases
|
125
|
|
|
177
|
|
|
—
|
|
|
302
|
|
|
114,996
|
|
|
115,298
|
|
|
103
|
|
|
115,401
|
|
||||||||
Total portfolio loans and leases
|
$
|
4,979
|
|
|
$
|
2,980
|
|
|
$
|
—
|
|
|
$
|
7,959
|
|
|
$
|
3,269,320
|
|
|
$
|
3,277,279
|
|
|
$
|
8,579
|
|
|
$
|
3,285,858
|
|
|
Accruing Loans and Leases
|
|
|
|
|
||||||||||||||||||||||||||
As of December 31, 2018
|
30 – 59
Days
Past Due
|
|
60 – 89
Days
Past Due
|
|
Over 89 Days
Past Due
|
|
Total Past Due
|
|
Current*
|
|
Total
Accruing
Loans and
Leases
|
|
Nonaccrual
Loans and
Leases
|
|
Total
Loans and
Leases
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage
|
$
|
816
|
|
|
$
|
251
|
|
|
$
|
—
|
|
|
$
|
1,067
|
|
|
$
|
1,326,320
|
|
|
$
|
1,327,387
|
|
|
$
|
435
|
|
|
$
|
1,327,822
|
|
Home equity lines and loans
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
177,891
|
|
|
177,916
|
|
|
3,590
|
|
|
181,506
|
|
||||||||
Residential mortgage
|
1,545
|
|
|
—
|
|
|
—
|
|
|
1,545
|
|
|
406,664
|
|
|
408,209
|
|
|
2,813
|
|
|
411,022
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
174,592
|
|
|
174,592
|
|
|
—
|
|
|
174,592
|
|
||||||||
Commercial and industrial
|
280
|
|
|
332
|
|
|
—
|
|
|
612
|
|
|
622,245
|
|
|
622,857
|
|
|
1,786
|
|
|
624,643
|
|
||||||||
Consumer
|
35
|
|
|
5
|
|
|
—
|
|
|
40
|
|
|
44,014
|
|
|
44,054
|
|
|
45
|
|
|
44,099
|
|
||||||||
Leases
|
350
|
|
|
233
|
|
|
—
|
|
|
583
|
|
|
120,592
|
|
|
121,175
|
|
|
392
|
|
|
121,567
|
|
||||||||
Total originated portfolio loans and leases
|
$
|
3,051
|
|
|
$
|
821
|
|
|
$
|
—
|
|
|
$
|
3,872
|
|
|
$
|
2,872,318
|
|
|
$
|
2,876,190
|
|
|
$
|
9,061
|
|
|
$
|
2,885,251
|
|
|
Accruing Loans and Leases
|
|
|
|
|
||||||||||||||||||||||||||
As of December 31, 2017
|
30 – 59
Days
Past Due
|
|
60 – 89
Days
Past Due
|
|
Over 89 Days
Past Due
|
|
Total Past Due
|
|
Current*
|
|
Total Accruing Loans and Leases
|
|
Nonaccrual
Loans and
Leases
|
|
Total
Loans and
Leases
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage
|
$
|
1,255
|
|
|
$
|
81
|
|
|
$
|
—
|
|
|
$
|
1,336
|
|
|
$
|
1,120,901
|
|
|
$
|
1,122,237
|
|
|
$
|
90
|
|
|
$
|
1,122,327
|
|
Home equity lines and loans
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
182,036
|
|
|
182,062
|
|
|
1,221
|
|
|
183,283
|
|
||||||||
Residential mortgage
|
721
|
|
|
—
|
|
|
—
|
|
|
721
|
|
|
358,709
|
|
|
359,430
|
|
|
1,505
|
|
|
360,935
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128,266
|
|
|
128,266
|
|
|
—
|
|
|
128,266
|
|
||||||||
Commercial and industrial
|
439
|
|
|
236
|
|
|
—
|
|
|
675
|
|
|
587,803
|
|
|
588,478
|
|
|
826
|
|
|
589,304
|
|
||||||||
Consumer
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
35,125
|
|
|
35,146
|
|
|
—
|
|
|
35,146
|
|
||||||||
Leases
|
125
|
|
|
177
|
|
|
—
|
|
|
302
|
|
|
67,630
|
|
|
67,932
|
|
|
103
|
|
|
68,035
|
|
||||||||
Total originated portfolio loans and leases
|
$
|
2,587
|
|
|
$
|
494
|
|
|
$
|
—
|
|
|
$
|
3,081
|
|
|
$
|
2,480,470
|
|
|
$
|
2,483,551
|
|
|
$
|
3,745
|
|
|
$
|
2,487,296
|
|
|
Accruing Loans and Leases
|
|
|
|
|
||||||||||||||||||||||||||
As of December 31, 2018
|
30 – 59
Days
Past Due
|
|
60 – 89
Days
Past Due
|
|
Over 89 Days
Past Due
|
|
Total Past Due
|
|
Current*
|
|
Total Accruing Loans and Leases
|
|
Nonaccrual
Loans and
Leases
|
|
Total
Loans and
Leases
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
327,476
|
|
|
$
|
327,481
|
|
|
$
|
2,133
|
|
|
$
|
329,614
|
|
Home equity lines and loans
|
67
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
25,752
|
|
|
25,819
|
|
|
26
|
|
|
25,845
|
|
||||||||
Residential mortgage
|
785
|
|
|
218
|
|
|
—
|
|
|
1,003
|
|
|
81,691
|
|
|
82,694
|
|
|
639
|
|
|
83,333
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,486
|
|
|
6,486
|
|
|
—
|
|
|
6,486
|
|
||||||||
Commercial and industrial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70,626
|
|
|
70,626
|
|
|
315
|
|
|
70,941
|
|
||||||||
Consumer
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,652
|
|
|
2,652
|
|
|
63
|
|
|
2,715
|
|
||||||||
Leases
|
291
|
|
|
227
|
|
|
—
|
|
|
518
|
|
|
21,868
|
|
|
22,386
|
|
|
583
|
|
|
22,969
|
|
||||||||
Total acquired portfolio loans and leases
|
$
|
1,148
|
|
|
$
|
445
|
|
|
$
|
—
|
|
|
$
|
1,593
|
|
|
$
|
536,551
|
|
|
$
|
538,144
|
|
|
$
|
3,759
|
|
|
$
|
541,903
|
|
|
Accruing Loans and Leases
|
|
|
|
|
||||||||||||||||||||||||||
As of December 31, 2017
|
30 – 59
Days
Past Due
|
|
60 – 89
Days
Past Due
|
|
Over 89 Days
Past Due
|
|
Total Past Due
|
|
Current*
|
|
Total Accruing Loans and Leases
|
|
Nonaccrual
Loans and
Leases
|
|
Total
Loans and
Leases
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Commercial mortgage
|
$
|
111
|
|
|
$
|
2,347
|
|
|
$
|
—
|
|
|
$
|
2,458
|
|
|
$
|
397,810
|
|
|
$
|
400,268
|
|
|
$
|
782
|
|
|
$
|
401,050
|
|
Home equity lines and loans
|
312
|
|
|
10
|
|
|
—
|
|
|
322
|
|
|
34,410
|
|
|
34,732
|
|
|
260
|
|
|
34,992
|
|
||||||||
Residential mortgage
|
665
|
|
|
79
|
|
|
—
|
|
|
744
|
|
|
94,295
|
|
|
95,039
|
|
|
2,912
|
|
|
97,951
|
|
||||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84,188
|
|
|
84,188
|
|
|
—
|
|
|
84,188
|
|
||||||||
Commercial and industrial
|
219
|
|
|
50
|
|
|
—
|
|
|
269
|
|
|
128,859
|
|
|
129,128
|
|
|
880
|
|
|
130,008
|
|
||||||||
Consumer
|
1,085
|
|
|
—
|
|
|
—
|
|
|
1,085
|
|
|
1,922
|
|
|
3,007
|
|
|
—
|
|
|
3,007
|
|
||||||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,366
|
|
|
47,366
|
|
|
—
|
|
|
47,366
|
|
||||||||
Total acquired portfolio loans and leases
|
$
|
2,392
|
|
|
$
|
2,486
|
|
|
$
|
—
|
|
|
$
|
4,878
|
|
|
$
|
788,850
|
|
|
$
|
793,728
|
|
|
$
|
4,834
|
|
|
$
|
798,562
|
|
(dollars in thousands)
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
Balance, December 31, 2017
|
$
|
7,550
|
|
|
$
|
1,086
|
|
|
$
|
1,926
|
|
|
$
|
937
|
|
|
$
|
5,038
|
|
|
$
|
246
|
|
|
$
|
742
|
|
|
$
|
17,525
|
|
Charge-offs
|
(331
|
)
|
|
(333
|
)
|
|
(354
|
)
|
|
—
|
|
|
(1,374
|
)
|
|
(311
|
)
|
|
(3,132
|
)
|
|
(5,835
|
)
|
||||||||
Recoveries
|
16
|
|
|
2
|
|
|
56
|
|
|
2
|
|
|
24
|
|
|
10
|
|
|
433
|
|
|
543
|
|
||||||||
Provision for loan and lease losses
|
332
|
|
|
248
|
|
|
185
|
|
|
546
|
|
|
1,773
|
|
|
284
|
|
|
3,825
|
|
|
7,193
|
|
||||||||
Balance, December 31, 2018
|
$
|
7,567
|
|
|
$
|
1,003
|
|
|
$
|
1,813
|
|
|
$
|
1,485
|
|
|
$
|
5,461
|
|
|
$
|
229
|
|
|
$
|
1,868
|
|
|
$
|
19,426
|
|
(dollars in thousands)
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
Balance, December 31, 2016
|
$
|
6,227
|
|
|
$
|
1,255
|
|
|
$
|
1,917
|
|
|
$
|
2,233
|
|
|
$
|
5,142
|
|
|
$
|
153
|
|
|
$
|
559
|
|
|
$
|
17,486
|
|
Charge-offs
|
(55
|
)
|
|
(675
|
)
|
|
(326
|
)
|
|
—
|
|
|
(692
|
)
|
|
(154
|
)
|
|
(1,224
|
)
|
|
(3,126
|
)
|
||||||||
Recoveries
|
12
|
|
|
5
|
|
|
165
|
|
|
4
|
|
|
25
|
|
|
8
|
|
|
328
|
|
|
547
|
|
||||||||
Provision for loan and lease losses
|
1,366
|
|
|
501
|
|
|
170
|
|
|
(1,300
|
)
|
|
563
|
|
|
239
|
|
|
1,079
|
|
|
2,618
|
|
||||||||
Balance, December 31, 2017
|
$
|
7,550
|
|
|
$
|
1,086
|
|
|
$
|
1,926
|
|
|
$
|
937
|
|
|
$
|
5,038
|
|
|
$
|
246
|
|
|
$
|
742
|
|
|
$
|
17,525
|
|
As of December 31, 2018
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Allowance on loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
162
|
|
|
$
|
272
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
462
|
|
Collectively evaluated for impairment
|
7,567
|
|
|
841
|
|
|
1,541
|
|
|
1,485
|
|
|
5,461
|
|
|
201
|
|
|
1,868
|
|
|
18,964
|
|
||||||||
Purchased credit-impaired
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
7,567
|
|
|
$
|
1,003
|
|
|
$
|
1,813
|
|
|
$
|
1,485
|
|
|
$
|
5,461
|
|
|
$
|
229
|
|
|
$
|
1,868
|
|
|
$
|
19,426
|
|
As of December 31, 2017
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Allowance on loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
230
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
258
|
|
Collectively evaluated for impairment
|
7,550
|
|
|
1,067
|
|
|
1,696
|
|
|
937
|
|
|
5,033
|
|
|
242
|
|
|
742
|
|
|
17,267
|
|
||||||||
Purchased credit-impaired
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
7,550
|
|
|
$
|
1,086
|
|
|
$
|
1,926
|
|
|
$
|
937
|
|
|
$
|
5,038
|
|
|
$
|
246
|
|
|
$
|
742
|
|
|
$
|
17,525
|
|
As of December 31, 2018
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Carrying value of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
7,008
|
|
|
$
|
4,998
|
|
|
$
|
6,608
|
|
|
$
|
—
|
|
|
$
|
2,629
|
|
|
$
|
134
|
|
|
$
|
—
|
|
|
$
|
21,377
|
|
Collectively evaluated for impairment
|
1,642,117
|
|
|
201,841
|
|
|
487,747
|
|
|
178,673
|
|
|
691,879
|
|
|
46,680
|
|
|
144,536
|
|
|
3,393,473
|
|
||||||||
Purchased credit-impaired
(1)
|
8,311
|
|
|
512
|
|
|
—
|
|
|
2,405
|
|
|
1,076
|
|
|
—
|
|
|
—
|
|
|
12,304
|
|
||||||||
Total
|
$
|
1,657,436
|
|
|
$
|
207,351
|
|
|
$
|
494,355
|
|
|
$
|
181,078
|
|
|
$
|
695,584
|
|
|
$
|
46,814
|
|
|
$
|
144,536
|
|
|
$
|
3,427,154
|
|
As of December 31, 2017
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Carrying value of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
2,128
|
|
|
$
|
2,162
|
|
|
$
|
7,726
|
|
|
$
|
—
|
|
|
$
|
1,897
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
13,940
|
|
Collectively evaluated for impairment
|
1,503,825
|
|
|
215,604
|
|
|
451,160
|
|
|
204,088
|
|
|
712,865
|
|
|
38,126
|
|
|
115,401
|
|
|
3,241,069
|
|
||||||||
Purchased credit-impaired
(1)
|
17,424
|
|
|
509
|
|
|
—
|
|
|
8,366
|
|
|
4,550
|
|
|
—
|
|
|
—
|
|
|
30,849
|
|
||||||||
Total
|
$
|
1,523,377
|
|
|
$
|
218,275
|
|
|
$
|
458,886
|
|
|
$
|
212,454
|
|
|
$
|
719,312
|
|
|
$
|
38,153
|
|
|
$
|
115,401
|
|
|
$
|
3,285,858
|
|
As of December 31, 2018
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Allowance on loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
162
|
|
|
$
|
175
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
365
|
|
Collectively evaluated for impairment
|
7,567
|
|
|
841
|
|
|
1,541
|
|
|
1,485
|
|
|
5,461
|
|
|
201
|
|
|
1,868
|
|
|
18,964
|
|
||||||||
Total
|
$
|
7,567
|
|
|
$
|
1,003
|
|
|
$
|
1,716
|
|
|
$
|
1,485
|
|
|
$
|
5,461
|
|
|
$
|
229
|
|
|
$
|
1,868
|
|
|
$
|
19,329
|
|
As of December 31, 2017
|
Commercial
Mortgage
|
|
Home
Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Allowance on loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
180
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
208
|
|
Collectively evaluated for impairment
|
7,550
|
|
|
1,067
|
|
|
1,696
|
|
|
937
|
|
|
5,033
|
|
|
242
|
|
|
742
|
|
|
17,267
|
|
||||||||
Total
|
$
|
7,550
|
|
|
$
|
1,086
|
|
|
$
|
1,876
|
|
|
$
|
937
|
|
|
$
|
5,038
|
|
|
$
|
246
|
|
|
$
|
742
|
|
|
$
|
17,475
|
|
As of December 31, 2018
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Carrying value of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
4,874
|
|
|
$
|
4,972
|
|
|
$
|
5,106
|
|
|
$
|
—
|
|
|
$
|
2,314
|
|
|
$
|
71
|
|
|
$
|
—
|
|
|
$
|
17,337
|
|
Collectively evaluated for impairment
|
1,322,948
|
|
|
176,534
|
|
|
405,916
|
|
|
174,592
|
|
|
622,329
|
|
|
44,028
|
|
|
121,567
|
|
|
2,867,914
|
|
||||||||
Total
|
$
|
1,327,822
|
|
|
$
|
181,506
|
|
|
$
|
411,022
|
|
|
$
|
174,592
|
|
|
$
|
624,643
|
|
|
$
|
44,099
|
|
|
$
|
121,567
|
|
|
$
|
2,885,251
|
|
As of December 31, 2017
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Carrying value of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
1,345
|
|
|
$
|
1,902
|
|
|
$
|
4,418
|
|
|
$
|
—
|
|
|
$
|
1,186
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
8,878
|
|
Collectively evaluated for impairment
|
1,120,982
|
|
|
181,381
|
|
|
356,517
|
|
|
128,266
|
|
|
588,118
|
|
|
35,119
|
|
|
68,035
|
|
|
2,478,418
|
|
||||||||
Total
|
$
|
1,122,327
|
|
|
$
|
183,283
|
|
|
$
|
360,935
|
|
|
$
|
128,266
|
|
|
$
|
589,304
|
|
|
$
|
35,146
|
|
|
$
|
68,035
|
|
|
$
|
2,487,296
|
|
As of December 31, 2018
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Allowance on loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97
|
|
Collectively evaluated for impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Purchased credit-impaired
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
97
|
|
As of December 31, 2017
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Allowance on loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
Collectively evaluated for impairment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Purchased credit-impaired
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
As of December 31, 2018
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Carrying value of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
2,134
|
|
|
$
|
26
|
|
|
$
|
1,502
|
|
|
$
|
—
|
|
|
$
|
315
|
|
|
$
|
63
|
|
|
$
|
—
|
|
|
$
|
4,040
|
|
Collectively evaluated for impairment
|
319,169
|
|
|
25,307
|
|
|
81,831
|
|
|
4,081
|
|
|
69,550
|
|
|
2,652
|
|
|
22,969
|
|
|
525,559
|
|
||||||||
Purchased credit-impaired
(1)
|
8,311
|
|
|
512
|
|
|
—
|
|
|
2,405
|
|
|
1,076
|
|
|
—
|
|
|
—
|
|
|
12,304
|
|
||||||||
Total
|
$
|
329,614
|
|
|
$
|
25,845
|
|
|
$
|
83,333
|
|
|
$
|
6,486
|
|
|
$
|
70,941
|
|
|
$
|
2,715
|
|
|
$
|
22,969
|
|
|
$
|
541,903
|
|
As of December 31, 2017
|
Commercial
Mortgage
|
|
Home Equity
Lines and
Loans
|
|
Residential
Mortgage
|
|
Construction
|
|
Commercial
and
Industrial
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||||
(dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Carrying value of loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
783
|
|
|
$
|
260
|
|
|
$
|
3,308
|
|
|
$
|
—
|
|
|
$
|
711
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,062
|
|
Collectively evaluated for impairment
|
382,843
|
|
|
34,223
|
|
|
94,643
|
|
|
75,822
|
|
|
124,747
|
|
|
3,007
|
|
|
47,366
|
|
|
762,651
|
|
||||||||
Purchased credit-impaired
(1)
|
17,424
|
|
|
509
|
|
|
—
|
|
|
8,366
|
|
|
4,550
|
|
|
—
|
|
|
—
|
|
|
30,849
|
|
||||||||
Total
|
$
|
401,050
|
|
|
$
|
34,992
|
|
|
$
|
97,951
|
|
|
$
|
84,188
|
|
|
$
|
130,008
|
|
|
$
|
3,007
|
|
|
$
|
47,366
|
|
|
$
|
798,562
|
|
•
|
Pass – Loans considered satisfactory with no indications of deterioration.
|
•
|
Special mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
|
•
|
Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
|
•
|
Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
|
|
|
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||
As of December 31, 2018
|
|
|
||||||||||||||||||
(dollars in thousands)
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial mortgage
|
|
$
|
1,635,068
|
|
|
$
|
631
|
|
|
$
|
20,639
|
|
|
$
|
1,098
|
|
|
$
|
1,657,436
|
|
Home equity loans and lines
|
|
203,037
|
|
|
—
|
|
|
4,314
|
|
|
—
|
|
|
207,351
|
|
|||||
Residential
|
|
490,789
|
|
|
—
|
|
|
3,566
|
|
|
—
|
|
|
494,355
|
|
|||||
Construction
|
|
171,353
|
|
|
938
|
|
|
8,787
|
|
|
—
|
|
|
181,078
|
|
|||||
Commercial & Industrial
|
|
684,444
|
|
|
2,737
|
|
|
8,402
|
|
|
1
|
|
|
695,584
|
|
|||||
Consumer
|
|
46,588
|
|
|
—
|
|
|
226
|
|
|
—
|
|
|
46,814
|
|
|||||
Leases
|
|
143,561
|
|
|
—
|
|
|
975
|
|
|
—
|
|
|
144,536
|
|
|||||
Total
|
|
$
|
3,374,840
|
|
|
$
|
4,306
|
|
|
$
|
46,909
|
|
|
$
|
1,099
|
|
|
$
|
3,427,154
|
|
|
|
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||
As of December 31, 2017
|
|
|
||||||||||||||||||
(dollars in thousands)
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial mortgage
|
|
$
|
1,490,862
|
|
|
$
|
13,448
|
|
|
$
|
18,194
|
|
|
$
|
873
|
|
|
$
|
1,523,377
|
|
Home equity loans and lines
|
|
216,794
|
|
|
—
|
|
|
1,481
|
|
|
—
|
|
|
218,275
|
|
|||||
Residential
|
|
454,469
|
|
|
—
|
|
|
4,417
|
|
|
—
|
|
|
458,886
|
|
|||||
Construction
|
|
193,227
|
|
|
3,902
|
|
|
15,325
|
|
|
—
|
|
|
212,454
|
|
|||||
Commercial & Industrial
|
|
711,145
|
|
|
889
|
|
|
6,013
|
|
|
1,265
|
|
|
719,312
|
|
|||||
Consumer
|
|
38,153
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,153
|
|
|||||
Leases
|
|
115,298
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|
115,401
|
|
|||||
Total
|
|
$
|
3,219,948
|
|
|
$
|
18,239
|
|
|
$
|
45,533
|
|
|
$
|
2,138
|
|
|
$
|
3,285,858
|
|
|
|
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||
As of December 31, 2018
|
|
|
||||||||||||||||||
(dollars in thousands)
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial mortgage
|
|
$
|
1,321,973
|
|
|
$
|
631
|
|
|
$
|
5,218
|
|
|
$
|
—
|
|
|
$
|
1,327,822
|
|
Home equity loans and lines
|
|
177,916
|
|
|
—
|
|
|
3,590
|
|
|
—
|
|
|
181,506
|
|
|||||
Residential
|
|
408,095
|
|
|
—
|
|
|
2,927
|
|
|
—
|
|
|
411,022
|
|
|||||
Construction
|
|
167,272
|
|
|
938
|
|
|
6,382
|
|
|
—
|
|
|
174,592
|
|
|||||
Commercial & Industrial
|
|
615,817
|
|
|
2,511
|
|
|
6,314
|
|
|
1
|
|
|
624,643
|
|
|||||
Consumer
|
|
43,936
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
44,099
|
|
|||||
Leases
|
|
121,175
|
|
|
—
|
|
|
392
|
|
|
—
|
|
|
121,567
|
|
|||||
Total
|
|
$
|
2,856,184
|
|
|
$
|
4,080
|
|
|
$
|
24,986
|
|
|
$
|
1
|
|
|
$
|
2,885,251
|
|
|
|
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||
As of December 31, 2017
|
|
|
||||||||||||||||||
(dollars in thousands)
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial mortgage
|
|
$
|
1,114,171
|
|
|
$
|
—
|
|
|
$
|
8,156
|
|
|
$
|
—
|
|
|
$
|
1,122,327
|
|
Home equity loans and lines
|
|
182,062
|
|
|
—
|
|
|
1,221
|
|
|
—
|
|
|
183,283
|
|
|||||
Residential
|
|
359,430
|
|
|
—
|
|
|
1,505
|
|
|
—
|
|
|
360,935
|
|
|||||
Construction
|
|
126,260
|
|
|
—
|
|
|
2,006
|
|
|
—
|
|
|
128,266
|
|
|||||
Commercial & Industrial
|
|
586,896
|
|
|
664
|
|
|
1,389
|
|
|
355
|
|
|
589,304
|
|
|||||
Consumer
|
|
35,146
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,146
|
|
|||||
Leases
|
|
67,932
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|
68,035
|
|
|||||
Total
|
|
$
|
2,471,897
|
|
|
$
|
664
|
|
|
$
|
14,380
|
|
|
$
|
355
|
|
|
$
|
2,487,296
|
|
|
|
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||
As of December 31, 2018
|
|
|
||||||||||||||||||
(dollars in thousands)
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial mortgage
|
|
$
|
313,095
|
|
|
$
|
—
|
|
|
$
|
15,421
|
|
|
$
|
1,098
|
|
|
$
|
329,614
|
|
Home equity loans and lines
|
|
25,121
|
|
|
—
|
|
|
724
|
|
|
—
|
|
|
25,845
|
|
|||||
Residential
|
|
82,694
|
|
|
—
|
|
|
639
|
|
|
—
|
|
|
83,333
|
|
|||||
Construction
|
|
4,081
|
|
|
—
|
|
|
2,405
|
|
|
—
|
|
|
6,486
|
|
|||||
Commercial & Industrial
|
|
68,627
|
|
|
226
|
|
|
2,088
|
|
|
—
|
|
|
70,941
|
|
|||||
Consumer
|
|
2,652
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
2,715
|
|
|||||
Leases
|
|
22,386
|
|
|
—
|
|
|
583
|
|
|
—
|
|
|
22,969
|
|
|||||
Total
|
|
$
|
518,656
|
|
|
$
|
226
|
|
|
$
|
21,923
|
|
|
$
|
1,098
|
|
|
$
|
541,903
|
|
|
|
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||
As of December 31, 2017
|
|
|
||||||||||||||||||
(dollars in thousands)
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Commercial mortgage
|
|
$
|
376,691
|
|
|
$
|
13,448
|
|
|
$
|
10,038
|
|
|
$
|
873
|
|
|
$
|
401,050
|
|
Home equity loans and lines
|
|
34,732
|
|
|
—
|
|
|
260
|
|
|
—
|
|
|
34,992
|
|
|||||
Residential
|
|
95,039
|
|
|
—
|
|
|
2,912
|
|
|
—
|
|
|
97,951
|
|
|||||
Construction
|
|
66,967
|
|
|
3,902
|
|
|
13,319
|
|
|
—
|
|
|
84,188
|
|
|||||
Commercial & Industrial
|
|
124,249
|
|
|
225
|
|
|
4,624
|
|
|
910
|
|
|
130,008
|
|
|||||
Consumer
|
|
3,007
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,007
|
|
|||||
Leases
|
|
47,366
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,366
|
|
|||||
Total
|
|
$
|
748,051
|
|
|
$
|
17,575
|
|
|
$
|
31,153
|
|
|
$
|
1,783
|
|
|
$
|
798,562
|
|
(dollars in thousands)
|
December 31, 2018
|
|
December 31, 2017
|
||||
TDRs included in nonperforming loans and leases
|
$
|
1,217
|
|
|
$
|
3,289
|
|
TDRs in compliance with modified terms
|
9,745
|
|
|
5,800
|
|
||
Total TDRs
|
$
|
10,962
|
|
|
$
|
9,089
|
|
|
For the Year Ended December 31, 2018
|
||||||||
(dollars in thousands)
|
Number of Contracts
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
||||
Commercial mortgage
|
1
|
|
$
|
4,439
|
|
|
$
|
4,439
|
|
Home equity lines and loans
|
3
|
|
961
|
|
|
961
|
|
||
Residential
|
6
|
|
620
|
|
|
640
|
|
||
Commercial and industrial
|
2
|
|
156
|
|
|
156
|
|
||
Consumer
|
1
|
|
20
|
|
|
20
|
|
||
Leases
|
4
|
|
173
|
|
|
173
|
|
||
Total
|
17
|
|
$
|
6,369
|
|
|
$
|
6,389
|
|
|
Number of Contracts
|
||||||||
|
Loan Term
Extension
|
|
Interest Rate
Change and
Term Extension
|
|
Interest Rate
Change and/or
Interest-Only
Period
|
|
Contractual
Payment
Reduction
(Leases only)
|
|
Temporary
Payment
Deferral
|
Commercial mortgage
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
Home equity lines and loans
|
—
|
|
3
|
|
—
|
|
—
|
|
—
|
Residential
|
2
|
|
1
|
|
—
|
|
—
|
|
3
|
Commercial and industrial
|
1
|
|
1
|
|
—
|
|
—
|
|
—
|
Consumer
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
Leases
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
Total
|
4
|
|
5
|
|
—
|
|
4
|
|
4
|
|
For the Year Ended December 31, 2017
|
||||||||
(dollars in thousands)
|
Number of Contracts
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
||||
Residential
|
3
|
|
$
|
432
|
|
|
$
|
432
|
|
Home equity lines and loans
|
3
|
|
582
|
|
|
582
|
|
||
Leases
|
4
|
|
100
|
|
|
100
|
|
||
Total
|
10
|
|
$
|
1,114
|
|
|
$
|
1,114
|
|
|
Number of Contracts
|
||||||||
|
Loan Term
Extension
|
|
Interest Rate
Change and
Term
Extension
|
|
Interest Rate
Change and/or
Interest-Only
Period
|
|
Contractual
Payment
Reduction
(Leases only)
|
|
Temporary
Payment
Deferral
|
Residential
|
1
|
|
1
|
|
1
|
|
—
|
|
—
|
Home equity lines and loans
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
Leases
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
Total
|
1
|
|
1
|
|
4
|
|
4
|
|
—
|
As of or for the Year Ended December 31, 2018
|
Recorded
Investment
(2)
|
|
Principal
Balance
|
|
Related
Allowance
|
|
Average
Principal
Balance
|
|
Interest
Income
Recognized
|
|
Cash-Basis
Interest
Income
Recognized
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
||||||||||||||||||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity lines and loans
|
$
|
1,280
|
|
|
$
|
1,280
|
|
|
$
|
162
|
|
|
$
|
640
|
|
|
$
|
27
|
|
|
$
|
—
|
|
Residential mortgage
|
1,966
|
|
|
1,966
|
|
|
272
|
|
|
1,983
|
|
|
94
|
|
|
—
|
|
||||||
Consumer
|
50
|
|
|
50
|
|
|
28
|
|
|
56
|
|
|
4
|
|
|
—
|
|
||||||
Total
|
$
|
3,296
|
|
|
$
|
3,296
|
|
|
$
|
462
|
|
|
$
|
2,679
|
|
|
$
|
125
|
|
|
$
|
—
|
|
Impaired loans
(1)
without related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage
|
$
|
7,007
|
|
|
$
|
7,264
|
|
|
$
|
—
|
|
|
$
|
7,010
|
|
|
$
|
320
|
|
|
$
|
—
|
|
Home equity lines and loans
|
3,718
|
|
|
3,724
|
|
|
—
|
|
|
3,537
|
|
|
67
|
|
|
—
|
|
||||||
Residential mortgage
|
4,641
|
|
|
4,728
|
|
|
—
|
|
|
4,750
|
|
|
133
|
|
|
—
|
|
||||||
Commercial and industrial
|
2,629
|
|
|
3,803
|
|
|
—
|
|
|
3,349
|
|
|
126
|
|
|
—
|
|
||||||
Consumer
|
83
|
|
|
86
|
|
|
—
|
|
|
100
|
|
|
3
|
|
|
—
|
|
||||||
Total
|
$
|
18,078
|
|
|
$
|
19,605
|
|
|
$
|
—
|
|
|
$
|
18,746
|
|
|
$
|
649
|
|
|
$
|
—
|
|
Grand total
|
$
|
21,374
|
|
|
$
|
22,901
|
|
|
$
|
462
|
|
|
$
|
21,425
|
|
|
$
|
774
|
|
|
$
|
—
|
|
As of or for the Year Ended December 31, 2017
|
Recorded
Investment
(2)
|
|
Principal
Balance
|
|
Related
Allowance
|
|
Average
Principal
Balance
|
|
Interest
Income
Recognized
|
|
Cash-Basis
Interest
Income
Recognized
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
||||||||||||||||||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity lines and loans
|
$
|
577
|
|
|
$
|
577
|
|
|
$
|
19
|
|
|
$
|
232
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Residential mortgage
|
2,436
|
|
|
2,436
|
|
|
230
|
|
|
2,467
|
|
|
127
|
|
|
—
|
|
||||||
Commercial and industrial
|
18
|
|
|
18
|
|
|
5
|
|
|
19
|
|
|
1
|
|
|
—
|
|
||||||
Consumer
|
27
|
|
|
27
|
|
|
4
|
|
|
28
|
|
|
1
|
|
|
—
|
|
||||||
Total
|
$
|
3,058
|
|
|
$
|
3,058
|
|
|
$
|
258
|
|
|
$
|
2,746
|
|
|
$
|
136
|
|
|
$
|
—
|
|
Impaired loans
(1)
without related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage
|
$
|
2,128
|
|
|
$
|
2,218
|
|
|
$
|
—
|
|
|
$
|
2,205
|
|
|
$
|
85
|
|
|
$
|
—
|
|
Home equity lines and loans
|
1,585
|
|
|
1,645
|
|
|
—
|
|
|
1,636
|
|
|
38
|
|
|
—
|
|
||||||
Residential mortgage
|
5,290
|
|
|
5,529
|
|
|
—
|
|
|
4,994
|
|
|
191
|
|
|
—
|
|
||||||
Commercial and industrial
|
1,879
|
|
|
3,613
|
|
|
—
|
|
|
2,079
|
|
|
35
|
|
|
—
|
|
||||||
Total
|
$
|
10,882
|
|
|
$
|
13,005
|
|
|
$
|
—
|
|
|
$
|
10,914
|
|
|
$
|
349
|
|
|
$
|
—
|
|
Grand total
|
$
|
13,940
|
|
|
$
|
16,063
|
|
|
$
|
258
|
|
|
$
|
13,660
|
|
|
$
|
485
|
|
|
$
|
—
|
|
As of or for the Year Ended December 31, 2016
|
Recorded
Investment
(2)
|
|
Principal
Balance
|
|
Related
Allowance
|
|
Average
Principal
Balance
|
|
Interest
Income
Recognized
|
|
Cash-Basis
Interest
Income
Recognized
|
||||||||||||
(dollars in thousands)
|
|
|
|
|
|
||||||||||||||||||
Impaired loans with related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
$
|
622
|
|
|
$
|
622
|
|
|
$
|
73
|
|
|
$
|
639
|
|
|
$
|
27
|
|
|
$
|
—
|
|
Commercial and industrial
|
84
|
|
|
84
|
|
|
5
|
|
|
103
|
|
|
5
|
|
|
—
|
|
||||||
Consumer
|
31
|
|
|
31
|
|
|
8
|
|
|
33
|
|
|
2
|
|
|
—
|
|
||||||
Total
|
$
|
737
|
|
|
$
|
737
|
|
|
$
|
86
|
|
|
$
|
775
|
|
|
$
|
34
|
|
|
$
|
—
|
|
Impaired loans
(1)
without related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial mortgage
|
$
|
1,577
|
|
|
$
|
1,577
|
|
|
$
|
—
|
|
|
$
|
1,583
|
|
|
$
|
70
|
|
|
$
|
—
|
|
Home equity lines and loans
|
2,354
|
|
|
2,778
|
|
|
—
|
|
|
2,833
|
|
|
25
|
|
|
—
|
|
||||||
Residential mortgage
|
6,644
|
|
|
6,970
|
|
|
—
|
|
|
7,544
|
|
|
276
|
|
|
—
|
|
||||||
Commercial and industrial
|
2,862
|
|
|
3,692
|
|
|
|
|
|
8,362
|
|
|
146
|
|
|
—
|
|
||||||
Total
|
$
|
13,437
|
|
|
$
|
15,017
|
|
|
$
|
—
|
|
|
$
|
20,322
|
|
|
$
|
517
|
|
|
$
|
—
|
|
Grand total
|
$
|
14,174
|
|
|
$
|
15,754
|
|
|
$
|
86
|
|
|
$
|
21,097
|
|
|
$
|
551
|
|
|
$
|
—
|
|
|
As of December 31, 2018
|
||||||||||
(dollars in thousands)
|
Outstanding
Principal
|
|
Remaining
Loan Mark
|
|
Recorded
Investment
|
||||||
Commercial mortgage
|
$
|
339,241
|
|
|
$
|
(9,627
|
)
|
|
$
|
329,614
|
|
Home equity lines and loans
|
28,212
|
|
|
(2,367
|
)
|
|
25,845
|
|
|||
Residential mortgage
|
86,111
|
|
|
(2,778
|
)
|
|
83,333
|
|
|||
Construction
|
6,780
|
|
|
(294
|
)
|
|
6,486
|
|
|||
Commercial and industrial
|
72,948
|
|
|
(2,007
|
)
|
|
70,941
|
|
|||
Consumer
|
2,828
|
|
|
(113
|
)
|
|
2,715
|
|
|||
Leases
|
23,695
|
|
|
(726
|
)
|
|
22,969
|
|
|||
Total
|
$
|
559,815
|
|
|
$
|
(17,912
|
)
|
|
$
|
541,903
|
|
|
As of December 31, 2017
|
||||||||||
(dollars in thousands)
|
Outstanding
Principal
|
|
Remaining
Loan Mark
|
|
Recorded
Investment
|
||||||
Commercial mortgage
|
$
|
412,263
|
|
|
$
|
(11,213
|
)
|
|
$
|
401,050
|
|
Home equity lines and loans
|
37,944
|
|
|
(2,952
|
)
|
|
34,992
|
|
|||
Residential mortgage
|
101,523
|
|
|
(3,572
|
)
|
|
97,951
|
|
|||
Construction
|
86,081
|
|
|
(1,893
|
)
|
|
84,188
|
|
|||
Commercial and industrial
|
141,960
|
|
|
(11,952
|
)
|
|
130,008
|
|
|||
Consumer
|
3,051
|
|
|
(44
|
)
|
|
3,007
|
|
|||
Leases
|
50,530
|
|
|
(3,164
|
)
|
|
47,366
|
|
|||
Total
|
$
|
833,352
|
|
|
$
|
(34,790
|
)
|
|
$
|
798,562
|
|
|
December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Land
|
$
|
11,219
|
|
|
$
|
9,522
|
|
Buildings
|
40,947
|
|
|
31,376
|
|
||
Furniture and equipment.
|
44,862
|
|
|
38,775
|
|
||
Leasehold improvements
|
25,186
|
|
|
26,636
|
|
||
Construction in progress
|
4,400
|
|
|
4,171
|
|
||
Less: accumulated depreciation
|
(60,966
|
)
|
|
(56,022
|
)
|
||
Total
|
$
|
65,648
|
|
|
$
|
54,458
|
|
(dollars in thousands)
|
Commitments
|
||
2019
|
$
|
5,211
|
|
2020
|
4,700
|
|
|
2021
|
4,478
|
|
|
2022
|
4,203
|
|
|
2023
|
4,051
|
|
|
2024 and thereafter
|
41,845
|
|
|
Total
|
$
|
64,488
|
|
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, January 1
|
$
|
5,861
|
|
|
$
|
5,582
|
|
|
$
|
5,142
|
|
Additions
|
16
|
|
|
1,025
|
|
|
1,321
|
|
|||
Amortization
|
(803
|
)
|
|
(791
|
)
|
|
(750
|
)
|
|||
(Impairment) / Recovery
|
(27
|
)
|
|
45
|
|
|
(131
|
)
|
|||
Balance, December 31
|
$
|
5,047
|
|
|
$
|
5,861
|
|
|
$
|
5,582
|
|
Fair value
|
$
|
6,277
|
|
|
$
|
6,397
|
|
|
$
|
6,154
|
|
Residential mortgage loans serviced for others
|
$
|
578,788
|
|
|
$
|
650,703
|
|
|
$
|
631,889
|
|
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Balance, January 1
|
$
|
(1,760
|
)
|
|
$
|
(1,805
|
)
|
|
$
|
(1,674
|
)
|
Impairment
|
(103
|
)
|
|
(52
|
)
|
|
(715
|
)
|
|||
Recovery
|
76
|
|
|
97
|
|
|
584
|
|
|||
Balance, December 31
|
$
|
(1,787
|
)
|
|
$
|
(1,760
|
)
|
|
$
|
(1,805
|
)
|
|
December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Fair value amount of MSRs
|
$
|
6,277
|
|
|
$
|
6,397
|
|
Weighted average life (in years)
|
6.7
|
|
|
6.1
|
|
||
Prepayment speeds (constant prepayment rate)
(1)
|
9.1
|
%
|
|
10.3
|
%
|
||
Impact on fair value:
|
|
|
|
||||
10% adverse change
|
$
|
(124
|
)
|
|
$
|
(194
|
)
|
20% adverse change
|
$
|
(257
|
)
|
|
$
|
(394
|
)
|
Discount rate
|
9.55
|
%
|
|
9.55
|
%
|
||
Impact on fair value:
|
|
|
|
||||
10% adverse change
|
$
|
(234
|
)
|
|
$
|
(225
|
)
|
20% adverse change
|
$
|
(451
|
)
|
|
$
|
(434
|
)
|
(dollars in thousands)
|
Balance
December 31, 2017 |
|
Additions
|
|
Adjustments
|
|
Amortization
|
|
Balance
December 31, 2018 |
|
Amortization
Period |
||||||||||
Goodwill – Wealth
|
$
|
20,412
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,412
|
|
|
Indefinite
|
Goodwill – Banking
|
153,545
|
|
|
—
|
|
|
3,446
|
|
|
—
|
|
|
156,991
|
|
|
Indefinite
|
|||||
Goodwill – Insurance
|
5,932
|
|
|
677
|
|
|
—
|
|
|
—
|
|
|
6,609
|
|
|
Indefinite
|
|||||
Total Goodwill
|
$
|
179,889
|
|
|
$
|
677
|
|
|
$
|
3,446
|
|
|
$
|
—
|
|
|
$
|
184,012
|
|
|
|
Core deposit intangible
|
7,380
|
|
|
—
|
|
|
—
|
|
|
(1,474
|
)
|
|
5,906
|
|
|
10 years
|
|||||
Customer relationships
|
14,173
|
|
|
1,145
|
|
|
—
|
|
|
(1,711
|
)
|
|
13,607
|
|
|
10 to 20 years
|
|||||
Non-compete agreements
|
1,319
|
|
|
—
|
|
|
—
|
|
|
(218
|
)
|
|
1,101
|
|
|
5 to 10 years
|
|||||
Trade names
|
2,322
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
|
2,149
|
|
|
3 to 5 years
|
|||||
Domain name
|
151
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
Indefinite
|
|||||
Favorable lease assets
|
621
|
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
|
541
|
|
|
1 to 16 years
|
|||||
Total Intangible Assets
|
$
|
25,966
|
|
|
$
|
1,145
|
|
|
$
|
—
|
|
|
$
|
(3,656
|
)
|
|
$
|
23,455
|
|
|
|
Grand Total
|
$
|
205,855
|
|
|
$
|
1,822
|
|
|
$
|
3,446
|
|
|
$
|
(3,656
|
)
|
|
$
|
207,467
|
|
|
|
(dollars in thousands)
|
Balance
December 31, 2016 |
|
Additions
|
|
Adjustments
|
|
Amortization
|
|
Balance
December 31, 2017 |
|
Amortization
Period |
||||||||||
Goodwill – Wealth
|
$
|
20,412
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,412
|
|
|
Indefinite
|
Goodwill – Banking
|
80,783
|
|
|
72,762
|
|
|
—
|
|
|
—
|
|
|
153,545
|
|
|
Indefinite
|
|||||
Goodwill – Insurance
|
3,570
|
|
|
2,362
|
|
|
—
|
|
|
—
|
|
|
5,932
|
|
|
Indefinite
|
|||||
Total Goodwill
|
$
|
104,765
|
|
|
$
|
75,124
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
179,889
|
|
|
|
Core deposit intangible
|
3,447
|
|
|
4,670
|
|
|
—
|
|
|
(737
|
)
|
|
7,380
|
|
|
10 years
|
|||||
Customer relationships
|
13,056
|
|
|
2,672
|
|
|
—
|
|
|
(1,555
|
)
|
|
14,173
|
|
|
10 to 20 years
|
|||||
Non-compete agreements
|
1,634
|
|
|
41
|
|
|
—
|
|
|
(356
|
)
|
|
1,319
|
|
|
5 to 10 years
|
|||||
Trade names
|
2,165
|
|
|
195
|
|
|
—
|
|
|
(38
|
)
|
|
2,322
|
|
|
3 years to Indefinite
|
|||||
Domain name
|
—
|
|
|
151
|
|
|
—
|
|
|
—
|
|
|
151
|
|
|
Indefinite
|
|||||
Favorable lease assets
|
103
|
|
|
566
|
|
|
—
|
|
|
(48
|
)
|
|
621
|
|
|
1 to 16 years
|
|||||
Total Intangible Assets
|
$
|
20,405
|
|
|
$
|
8,295
|
|
|
$
|
—
|
|
|
$
|
(2,734
|
)
|
|
$
|
25,966
|
|
|
|
Grand total
|
$
|
125,170
|
|
|
$
|
83,419
|
|
|
$
|
—
|
|
|
$
|
(2,734
|
)
|
|
$
|
205,855
|
|
|
|
(dollars in thousands)
|
Fiscal Year Amount
|
||
Fiscal year ending
|
|
||
2019
|
$
|
4,065
|
|
2020
|
$
|
3,928
|
|
2021
|
$
|
3,860
|
|
2022
|
$
|
3,643
|
|
Thereafter
|
$
|
7,267
|
|
|
December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Balance January 1
|
$
|
304
|
|
|
$
|
1,017
|
|
Additions
|
372
|
|
|
560
|
|
||
Impairments
|
(89
|
)
|
|
(121
|
)
|
||
Sales
|
(170
|
)
|
|
(1,152
|
)
|
||
Balance December 31
|
$
|
417
|
|
|
$
|
304
|
|
|
As of December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Interest-bearing demand
|
$
|
664,749
|
|
|
$
|
481,336
|
|
Money market
|
862,644
|
|
|
862,639
|
|
||
Savings
|
247,081
|
|
|
338,572
|
|
||
Retail time deposits
|
542,702
|
|
|
532,202
|
|
||
Wholesale non-maturity deposits
|
55,031
|
|
|
62,276
|
|
||
Wholesale time deposits
|
325,261
|
|
|
171,929
|
|
||
Total interest-bearing deposits
|
$
|
2,697,468
|
|
|
$
|
2,448,954
|
|
Noninterest-bearing deposits
|
901,619
|
|
|
924,844
|
|
||
Total deposits
|
$
|
3,599,087
|
|
|
$
|
3,373,798
|
|
|
As of December 31, 2018
|
||||||
(dollars in thousands)
|
Less than
$100 |
|
$100
or more |
||||
Maturing during:
|
|
|
|
||||
2019
|
$
|
206,050
|
|
|
$
|
208,455
|
|
2020
|
33,003
|
|
|
23,096
|
|
||
2021
|
28,072
|
|
|
31,238
|
|
||
2022
|
5,325
|
|
|
1,945
|
|
||
2023 and thereafter
|
3,968
|
|
|
1,550
|
|
||
Total
|
$
|
276,418
|
|
|
$
|
266,284
|
|
|
As of December 31, 2018
|
||||||
(dollars in thousands)
|
Less than
$100 |
|
$100
or more |
||||
Maturing during:
|
|
|
|
||||
2019
|
$
|
3,139
|
|
|
$
|
322,122
|
|
Total
|
$
|
3,139
|
|
|
$
|
322,122
|
|
|
As of December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Repurchase agreements
(1)
– commercial customers
|
$
|
22,717
|
|
|
$
|
25,865
|
|
Short-term FHLB advances
|
229,650
|
|
|
212,000
|
|
||
Total short-term borrowings
|
$
|
252,367
|
|
|
$
|
237,865
|
|
|
As for the Year Ended December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Balance at period-end
|
$
|
252,367
|
|
|
$
|
237,865
|
|
Maximum amount outstanding at any month end
|
$
|
302,932
|
|
|
$
|
237,865
|
|
Average balance outstanding during the period
|
$
|
186,290
|
|
|
$
|
128,008
|
|
Weighted-average interest rate:
|
|
|
|
||||
As of the period-end
|
2.23
|
%
|
|
1.40
|
%
|
||
Paid during the period
|
1.90
|
%
|
|
1.09
|
%
|
|
As of December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Within one year
|
$
|
28,105
|
|
|
$
|
83,766
|
|
Over one year through five years
|
27,269
|
|
|
55,374
|
|
||
Total
|
$
|
55,374
|
|
|
$
|
139,140
|
|
|
Maturity Range
(1)
|
|
Weighted
Average
Rate
(1)
|
|
Coupon Rate
(1)
|
|
Balance at
December 31,
|
|||||||||||||
Description
|
From
|
|
To
|
|
|
From
|
|
To
|
|
2018
|
|
2017
|
||||||||
Bullet maturity – fixed rate
|
5/20/2019
|
|
8/24/2021
|
|
1.76
|
%
|
|
1.40
|
%
|
|
2.13
|
%
|
|
$
|
55,374
|
|
|
$
|
118,131
|
|
Convertible-fixed
(2)
|
N/A
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
—
|
|
|
21,009
|
|
||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
55,374
|
|
|
$
|
139,140
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
(dollars in thousands)
|
Balance
|
|
Rate
(1)(2)
|
|
Balance
|
|
Rate
(1)(2)
|
||||||
Subordinated notes – due 2027
|
$
|
68,885
|
|
|
4.25
|
%
|
|
$
|
68,829
|
|
|
4.25
|
%
|
Subordinated notes – due 2025
|
29,641
|
|
|
4.75
|
%
|
|
29,587
|
|
|
4.75
|
%
|
||
Total subordinated notes
|
$
|
98,526
|
|
|
|
|
$
|
98,416
|
|
|
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||||||
(dollars in thousands)
|
Notional
Amount
|
|
Fair
Value
|
|
Notional
Amount
|
|
Fair
Value
|
||||||||
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2018:
|
|
|
|
|
|
|
|
||||||||
Customer derivatives – interest rate swaps
|
$
|
369,623
|
|
|
$
|
12,550
|
|
|
$
|
369,623
|
|
|
$
|
12,549
|
|
RPAs sold
|
—
|
|
|
—
|
|
|
854
|
|
|
2
|
|
||||
RPAs purchased
|
35,305
|
|
|
71
|
|
|
—
|
|
|
—
|
|
||||
Total derivatives
|
$
|
404,928
|
|
|
$
|
12,621
|
|
|
$
|
370,477
|
|
|
$
|
12,551
|
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2017:
|
|
|
|
|
|
|
|
||||||||
Customer derivatives – interest rate swaps
|
$
|
124,627
|
|
|
$
|
1,895
|
|
|
$
|
124,627
|
|
|
$
|
1,895
|
|
RPAs sold
|
—
|
|
|
—
|
|
|
899
|
|
|
3
|
|
||||
RPAs purchased
|
14,710
|
|
|
21
|
|
|
—
|
|
|
—
|
|
||||
Total derivatives
|
$
|
139,337
|
|
|
$
|
1,916
|
|
|
$
|
125,526
|
|
|
$
|
1,898
|
|
|
SERP I and SERP II
|
|
PRBP
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Discount rate
|
3.95
|
%
|
|
3.30
|
%
|
|
3.45
|
%
|
|
2.75
|
%
|
Rate of increase for future compensation
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Expected long-term rate of return on plan assets
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
SERP I & SERP II
|
|
PRBP
|
||||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Change in benefit obligations
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at January 1
|
$
|
4,983
|
|
|
$
|
4,786
|
|
|
$
|
353
|
|
|
$
|
418
|
|
Service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest cost
|
160
|
|
|
176
|
|
|
9
|
|
|
11
|
|
||||
Plan participants contribution
|
—
|
|
|
—
|
|
|
44
|
|
|
44
|
|
||||
Actuarial loss (gain)
|
(180
|
)
|
|
282
|
|
|
(61
|
)
|
|
(9
|
)
|
||||
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(276
|
)
|
|
(261
|
)
|
|
(104
|
)
|
|
(111
|
)
|
||||
Benefit obligation at December 31
|
$
|
4,687
|
|
|
$
|
4,983
|
|
|
$
|
241
|
|
|
$
|
353
|
|
Change in plan assets
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at January 1
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Excess assets transferred to defined contribution plan
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Employer contribution
|
278
|
|
|
261
|
|
|
60
|
|
|
67
|
|
||||
Plan participants’ contribution
|
—
|
|
|
—
|
|
|
44
|
|
|
44
|
|
||||
Benefits paid
|
(278
|
)
|
|
(261
|
)
|
|
(104
|
)
|
|
(111
|
)
|
||||
Fair value of plan assets at December 31
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded status at year end (plan assets less benefit obligations)
|
$
|
(4,687
|
)
|
|
$
|
(4,983
|
)
|
|
$
|
(241
|
)
|
|
$
|
(353
|
)
|
SERP I and SERP II Periodic Pension Cost
|
For the Year Ended December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
160
|
|
|
176
|
|
|
184
|
|
|||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|||
Recognition of net actuarial loss
|
70
|
|
|
59
|
|
|
57
|
|
|||
Net periodic pension cost
|
$
|
230
|
|
|
$
|
235
|
|
|
$
|
241
|
|
PRBP
Net Periodic Pension Cost
|
For the Year Ended December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
9
|
|
|
11
|
|
|
17
|
|
|||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|||
Recognition of net actuarial loss
|
30
|
|
|
36
|
|
|
41
|
|
|||
Net periodic pension cost
|
$
|
39
|
|
|
$
|
47
|
|
|
$
|
58
|
|
(dollars in thousands)
|
|
SERP I & SERP II
|
|
PRBP
|
||||
Fiscal year ending
|
|
|
|
|
||||
2019
|
|
$
|
286
|
|
|
$
|
49
|
|
2020
|
|
$
|
286
|
|
|
$
|
42
|
|
2021
|
|
$
|
283
|
|
|
$
|
36
|
|
2022
|
|
$
|
280
|
|
|
$
|
31
|
|
2023
|
|
$
|
355
|
|
|
$
|
26
|
|
2024-2028
|
|
$
|
1,711
|
|
|
$
|
71
|
|
|
December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
||||
Loan and lease loss reserve
|
$
|
4,476
|
|
|
$
|
3,948
|
|
Other reserves
|
2,919
|
|
|
3,169
|
|
||
Net operating loss carry-forward
|
9,728
|
|
|
11,113
|
|
||
Alternative minimum tax credits
|
1,100
|
|
|
1,116
|
|
||
Unrealized depreciation of available for sale securities
|
1,656
|
|
|
761
|
|
||
Defined benefit plans
|
1,377
|
|
|
1,361
|
|
||
RBPI Merger Fair Values
|
2,580
|
|
|
4,726
|
|
||
Total deferred tax asset
|
$
|
23,836
|
|
|
$
|
26,194
|
|
Deferred tax liabilities:
|
|
|
|
||||
Intangibles and other amortizing fair value adjustments
|
$
|
5,290
|
|
|
$
|
970
|
|
Originated MSRs
|
1,105
|
|
|
1,253
|
|
||
Deferred loan costs
|
1,105
|
|
|
—
|
|
||
Other reserves
|
535
|
|
|
72
|
|
||
Total deferred tax liability
|
$
|
8,035
|
|
|
$
|
2,295
|
|
Total net deferred tax asset
|
$
|
15,801
|
|
|
$
|
23,899
|
|
|
December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Current
|
$
|
4,326
|
|
|
$
|
13,812
|
|
|
$
|
16,492
|
|
Deferred
|
9,839
|
|
|
20,418
|
|
|
1,676
|
|
|||
Total
|
$
|
14,165
|
|
|
$
|
34,230
|
|
|
$
|
18,168
|
|
(dollars in thousands)
|
2018
|
|
Tax
Rate
|
|
2017
|
|
Tax
Rate
|
|
2016
|
|
Tax
Rate
|
|||||||||
Computed tax expense at statutory federal rate
|
$
|
16,371
|
|
|
21.0
|
%
|
|
$
|
20,036
|
|
|
35.0
|
%
|
|
$
|
18,972
|
|
|
35.0
|
%
|
Tax-exempt income
|
(470
|
)
|
|
(0.6
|
)%
|
|
(600
|
)
|
|
(1.0
|
)%
|
|
(758
|
)
|
|
(1.4
|
)%
|
|||
State tax (net of federal tax benefit)
|
874
|
|
|
1.1
|
%
|
|
303
|
|
|
0.5
|
%
|
|
425
|
|
|
0.8
|
%
|
|||
Non-deductible merger expense
|
—
|
|
|
—
|
%
|
|
455
|
|
|
0.8
|
%
|
|
—
|
|
|
—
|
%
|
|||
Excess tax benefit – stock based compensation
|
(848
|
)
|
|
(1.1
|
)%
|
|
(1,049
|
)
|
|
(1.8
|
)%
|
|
(565
|
)
|
|
(1.0
|
)%
|
|||
Adjustment to net deferred tax assets for enacted changes in tax laws, rates and return to provision adjustments
|
(1,895
|
)
|
|
(2.4
|
)%
|
|
15,193
|
|
|
26.5
|
%
|
|
—
|
|
|
—
|
%
|
|||
Other, net
|
133
|
|
|
0.2
|
%
|
|
(108
|
)
|
|
(0.2
|
)%
|
|
94
|
|
|
0.1
|
%
|
|||
Total income tax expense
|
$
|
14,165
|
|
|
18.2
|
%
|
|
$
|
34,230
|
|
|
59.8
|
%
|
|
$
|
18,168
|
|
|
33.5
|
%
|
|
Year Ended
December 31, |
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Deferred taxes related to items recognized in continuing operations
|
$
|
(1,895
|
)
|
|
$
|
14,411
|
|
Deferred taxes on net actuarial loss on defined benefit post-retirement benefit plans
|
—
|
|
|
275
|
|
||
Deferred taxes on net unrealized losses on available for sale investment securities
|
—
|
|
|
507
|
|
||
Total income tax (benefit) / expense related to Tax Reform
|
$
|
(1,895
|
)
|
|
$
|
15,193
|
|
(dollars in thousands)
|
Net Change in Unrealized Gains on Available-for-Sale Investment Securities
|
|
Net Change in Unfunded Pension Liability
|
|
Accumulated Other Comprehensive Loss
|
||||||
Balance, December 31, 2015
|
$
|
774
|
|
|
$
|
(1,186
|
)
|
|
$
|
(412
|
)
|
Other comprehensive (loss) income
|
(2,005
|
)
|
|
8
|
|
|
(1,997
|
)
|
|||
Balance, December 31, 2016
|
(1,231
|
)
|
|
(1,178
|
)
|
|
(2,409
|
)
|
|||
Other comprehensive (loss) income
|
(1,123
|
)
|
|
(100
|
)
|
|
(1,223
|
)
|
|||
Reclassification due to the adoption of ASU No. 2018-02
|
(507
|
)
|
|
(275
|
)
|
|
(782
|
)
|
|||
Balance, December 31, 2017
|
(2,861
|
)
|
|
(1,553
|
)
|
|
(4,414
|
)
|
|||
Other comprehensive (loss) income
|
(3,368
|
)
|
|
269
|
|
|
(3,099
|
)
|
|||
Balance, December 31, 2018
|
$
|
(6,229
|
)
|
|
$
|
(1,284
|
)
|
|
$
|
(7,513
|
)
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
|
|
||||||||||
Description of Accumulated Other
Comprehensive Loss Component
|
|
For the Year Ended
December 31, |
|
Affected Income Statement Category
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
|
||||||
Net unrealized gain on investment securities available for sale:
|
|
|
|
|
|
|
|
|
||||||
Realization of gain (loss) on sale of investment securities available for sale
|
|
$
|
7
|
|
|
$
|
101
|
|
|
$
|
(77
|
)
|
|
Net gain (loss) on sale of investment securities available for sale
|
Realization of gain on transfer of investment securities available for sale to trading
|
|
417
|
|
|
—
|
|
|
—
|
|
|
Other operating income
|
|||
Total
|
|
$
|
424
|
|
|
$
|
101
|
|
|
$
|
(77
|
)
|
|
|
Income tax effect
|
|
89
|
|
|
35
|
|
|
(27
|
)
|
|
Income tax expense
|
|||
Net of income tax
|
|
$
|
335
|
|
|
$
|
66
|
|
|
$
|
(50
|
)
|
|
Net income
|
|
|
|
|
|
|
|
|
|
||||||
Unfunded pension liability:
|
|
|
|
|
|
|
|
|
||||||
Amortization of net loss included in net periodic pension costs
(1)
|
|
$
|
100
|
|
|
$
|
95
|
|
|
$
|
98
|
|
|
Other operating expenses
|
Income tax effect
|
|
21
|
|
|
33
|
|
|
34
|
|
|
Income tax expense
|
|||
Net of income tax
|
|
$
|
79
|
|
|
$
|
62
|
|
|
$
|
64
|
|
|
Net income
|
|
Year Ended December 31,
|
||||||||||
(dollars in thousands, except per share data)
|
2018
|
|
2017
|
|
2016
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income available to common shareholders
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
Denominator for basic earnings per share –
Weighted average shares outstanding
(1)
|
20,234,792
|
|
|
17,150,125
|
|
|
16,859,623
|
|
|||
Effect of dilutive potential common shares
|
155,375
|
|
|
248,798
|
|
|
168,499
|
|
|||
Denominator for diluted earnings per share –
Adjusted weighted average shares outstanding
|
20,390,167
|
|
|
17,398,923
|
|
|
17,028,122
|
|
|||
Basic earnings per share
|
$
|
3.15
|
|
|
$
|
1.34
|
|
|
$
|
2.14
|
|
Diluted earnings per share
|
$
|
3.13
|
|
|
$
|
1.32
|
|
|
$
|
2.12
|
|
Antidilutive shares excluded from computation of average dilutive earnings per share
|
19,422
|
|
|
27,159
|
|
|
—
|
|
|
For the Year Ended December 31,
|
||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||||||||
(dollars in thousands)
|
Banking
|
Wealth
Management |
Consolidated
|
|
Banking
|
Wealth
Management |
Consolidated
|
|
Banking
|
Wealth
Management |
Consolidated
|
||||||||||||||||||
Fees for wealth management services
|
$
|
—
|
|
$
|
42,326
|
|
$
|
42,326
|
|
|
$
|
—
|
|
$
|
38,735
|
|
$
|
38,735
|
|
|
$
|
—
|
|
$
|
36,690
|
|
$
|
36,690
|
|
Insurance commissions
|
—
|
|
6,808
|
|
6,808
|
|
|
—
|
|
4,589
|
|
4,589
|
|
|
—
|
|
3,722
|
|
3,722
|
|
|||||||||
Capital markets revenue
(1)
|
4,848
|
|
—
|
|
4,848
|
|
|
2,396
|
|
—
|
|
2,396
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Service charges on deposit accounts
|
2,989
|
|
—
|
|
2,989
|
|
|
2,608
|
|
—
|
|
2,608
|
|
|
2,791
|
|
—
|
|
2,791
|
|
|||||||||
Loan servicing and other fees
(1)
|
2,259
|
|
—
|
|
2,259
|
|
|
2,106
|
|
—
|
|
2,106
|
|
|
1,939
|
|
—
|
|
1,939
|
|
|||||||||
Net gain on sale of loans
(1)
|
3,283
|
|
—
|
|
3,283
|
|
|
2,441
|
|
—
|
|
2,441
|
|
|
3,048
|
|
—
|
|
3,048
|
|
|||||||||
Net gain (loss) on sale of investment securities available for sale
(1)
|
7
|
|
—
|
|
7
|
|
|
101
|
|
—
|
|
101
|
|
|
(77
|
)
|
—
|
|
(77
|
)
|
|||||||||
Net gain (loss) on sale of OREO
|
295
|
|
—
|
|
295
|
|
|
(104
|
)
|
—
|
|
(104
|
)
|
|
(76
|
)
|
—
|
|
(76
|
)
|
|||||||||
Dividends on FHLB and FRB stock
(1)
|
1,621
|
|
—
|
|
1,621
|
|
|
939
|
|
—
|
|
939
|
|
|
1,063
|
|
—
|
|
1,063
|
|
|||||||||
Other operating income
(2)
|
11,360
|
|
186
|
|
11,546
|
|
|
5,124
|
|
197
|
|
5,321
|
|
|
4,710
|
|
158
|
|
4,868
|
|
|||||||||
Total noninterest income
|
$
|
26,662
|
|
$
|
49,320
|
|
$
|
75,982
|
|
|
$
|
15,611
|
|
$
|
43,521
|
|
$
|
59,132
|
|
|
$
|
13,398
|
|
$
|
40,570
|
|
$
|
53,968
|
|
|
Shares
Authorized for
Grant
|
|
Balance, December 31, 2015
|
617,765
|
|
Grants of RSUs
|
(33,142
|
)
|
Grants of PSUs
|
(45,346
|
)
|
Expiration of unexercised options
|
—
|
|
Non-vesting PSUs
(1)
|
10,088
|
|
Forfeitures of PSUs
|
2,344
|
|
Forfeitures of RSUs
|
1,250
|
|
Balance, December 31, 2016
|
552,959
|
|
Grants of RSUs
|
(40,137
|
)
|
Grants of PSUs
|
(41,323
|
)
|
Expiration of unexercised options
|
250
|
|
Non-vesting PSUs
(1)
|
—
|
|
Forfeitures of PSUs
|
3,899
|
|
Forfeitures of RSUs
|
4,305
|
|
Balance, December 31, 2017
|
479,953
|
|
Grants of RSUs
|
(38,806
|
)
|
Grants of PSUs
|
(40,722
|
)
|
Expiration of unexercised options
|
—
|
|
Non-vesting PSUs
(1)
|
—
|
|
Forfeitures of PSUs
|
5,679
|
|
Forfeitures of RSUs
|
1,515
|
|
Balance, December 31, 2018
|
407,619
|
|
|
For the Year Ended December 31,
|
|||||||||||||||||||||||||||
|
2018
|
|
|
2017
|
|
|
2016
|
|||||||||||||||||||||
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Grant Date
Fair Value
|
|
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Grant Date
Fair Value
|
|
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Grant Date
Fair Value
|
|||||||||||||||
Options outstanding, beginning of period
|
115,246
|
|
$
|
20.73
|
|
$
|
4.86
|
|
|
|
185,023
|
|
$
|
21.04
|
|
$
|
4.88
|
|
|
|
290,853
|
|
$
|
20.88
|
|
$
|
4.85
|
|
Expired
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
(250
|
)
|
$
|
22.00
|
|
$
|
4.90
|
|
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Exercised
|
(64,645
|
)
|
$
|
22.65
|
|
$
|
5.00
|
|
|
|
(69,527
|
)
|
$
|
21.55
|
|
$
|
4.91
|
|
|
|
(105,830
|
)
|
$
|
20.61
|
|
$
|
7.32
|
|
Options outstanding, end of period
|
50,601
|
|
$
|
18.28
|
|
$
|
4.68
|
|
|
|
115,246
|
|
$
|
20.73
|
|
$
|
4.86
|
|
|
|
185,023
|
|
$
|
21.04
|
|
$
|
4.88
|
|
|
Year Ended December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds from strike price of value of options exercised
|
$
|
1,464
|
|
|
$
|
1,498
|
|
|
$
|
2,181
|
|
Related tax benefit recognized
|
312
|
|
|
506
|
|
|
256
|
|
|||
Proceeds of options exercised
|
$
|
1,776
|
|
|
$
|
2,004
|
|
|
$
|
2,437
|
|
Intrinsic value of options exercised
|
$
|
1,512
|
|
|
$
|
1,445
|
|
|
$
|
1,125
|
|
|
As of December 31,
|
|||||||||||||||||||||
|
2018
|
|
|
2017
|
|
|
2016
|
|||||||||||||||
(dollars in thousands, except share data and exercise price)
|
Options
Outstanding
|
Exercisable
Options
|
|
|
Options
Outstanding
|
Exercisable
Options
|
|
|
Options
Outstanding
|
Exercisable
Options
|
||||||||||||
Number
|
50,601
|
|
50,601
|
|
|
|
115,246
|
|
115,246
|
|
|
|
185,023
|
|
185,023
|
|
||||||
Weighted average exercise price
|
$
|
18.28
|
|
$
|
18.28
|
|
|
|
$
|
20.73
|
|
$
|
20.73
|
|
|
|
$
|
21.03
|
|
$
|
21.03
|
|
Aggregate intrinsic value
|
$
|
1,478
|
|
$
|
1,478
|
|
|
|
$
|
2,705
|
|
$
|
2,705
|
|
|
|
$
|
3,908
|
|
$
|
3,908
|
|
Weighted average contractual term
|
0.7 years
|
|
0.7 years
|
|
|
|
1.2 years
|
|
1.2 years
|
|
|
|
2.0 years
|
|
2.0 years
|
|
|
Year Ended
December 31, 2018 |
|
Year Ended
December 31, 2017 |
|
Year Ended
December 31, 2016 |
||||||||||||
|
Number of Shares
|
Weighted
Average Grant Date Fair Value |
|
Number of Shares
|
Weighted
Average Grant Date Fair Value |
|
Number of Shares
|
Weighted
Average Grant Date Fair Value |
|||||||||
Beginning balance
|
75,707
|
|
$
|
35.80
|
|
|
58,862
|
|
$
|
29.57
|
|
|
42,802
|
|
$
|
28.58
|
|
Granted
|
38,806
|
|
$
|
42.23
|
|
|
40,137
|
|
$
|
41.23
|
|
|
33,142
|
|
$
|
29.67
|
|
Vested
|
(36,252
|
)
|
$
|
34.38
|
|
|
(18,987
|
)
|
$
|
29.40
|
|
|
(15,832
|
)
|
$
|
27.14
|
|
Forfeited
|
(1,515
|
)
|
$
|
36.52
|
|
|
(4,305
|
)
|
$
|
29.54
|
|
|
(1,250
|
)
|
$
|
29.12
|
|
Ending balance
|
76,746
|
|
$
|
39.71
|
|
|
75,707
|
|
$
|
35.80
|
|
|
58,862
|
|
$
|
29.57
|
|
|
Year Ended
December 31, 2018 |
|
Year Ended
December 31, 2017 |
|
Year Ended
December 31, 2016 |
||||||||||||||
|
Number of Shares
|
Weighted
Average Grant Date Fair Value |
|
|
Number of Shares
|
Weighted
Average Grant Date Fair Value |
|
|
Number of Shares
|
Weighted
Average Grant Date Fair Value |
|||||||||
Beginning balance
|
168,453
|
|
$
|
24.76
|
|
|
|
192,844
|
|
$
|
18.77
|
|
|
|
216,820
|
|
$
|
15.07
|
|
Granted
|
40,722
|
|
$
|
44.56
|
|
|
|
41,323
|
|
$
|
37.86
|
|
|
|
45,346
|
|
$
|
28.34
|
|
Vested
|
(81,840
|
)
|
$
|
16.40
|
|
|
|
(61,815
|
)
|
$
|
15.05
|
|
|
|
(56,890
|
)
|
$
|
13.38
|
|
Non-vesting
(1)
|
—
|
|
$
|
—
|
|
|
|
—
|
|
$
|
—
|
|
|
|
(10,088
|
)
|
$
|
13.38
|
|
Forfeited
|
(5,679
|
)
|
$
|
28.79
|
|
|
|
(3,899
|
)
|
$
|
21.45
|
|
|
|
(2,344
|
)
|
$
|
15.37
|
|
Ending balance
|
121,656
|
|
$
|
36.82
|
|
|
|
168,453
|
|
$
|
24.76
|
|
|
|
192,844
|
|
$
|
18.77
|
|
(dollars in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S. Treasury securities
|
$
|
200,013
|
|
|
$
|
200,013
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Obligations of U.S. government & agencies
|
195,855
|
|
|
—
|
|
|
195,855
|
|
|
—
|
|
||||
Obligations of state & political subdivisions
|
11,332
|
|
|
—
|
|
|
11,332
|
|
|
—
|
|
||||
Mortgage-backed securities
|
289,890
|
|
|
—
|
|
|
289,890
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
39,252
|
|
|
—
|
|
|
39,252
|
|
|
—
|
|
||||
Other investment securities
|
1,100
|
|
|
—
|
|
|
1,100
|
|
|
—
|
|
||||
Total investment securities available for sale
|
$
|
737,442
|
|
|
$
|
200,013
|
|
|
$
|
537,429
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Investment securities trading:
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
$
|
7,502
|
|
|
$
|
7,502
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
12,550
|
|
|
—
|
|
|
12,550
|
|
|
—
|
|
||||
RPAs purchased
|
71
|
|
|
—
|
|
|
71
|
|
|
—
|
|
||||
Total derivatives
|
$
|
12,621
|
|
|
$
|
—
|
|
|
$
|
12,621
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets measured on a recurring basis at fair value
|
$
|
757,565
|
|
|
$
|
207,515
|
|
|
$
|
550,050
|
|
|
$
|
—
|
|
(dollars in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Mortgage servicing rights
|
$
|
6,277
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,277
|
|
Impaired loans and leases
|
22,112
|
|
|
—
|
|
|
—
|
|
|
22,112
|
|
||||
OREO
|
417
|
|
|
—
|
|
|
—
|
|
|
417
|
|
||||
Total assets measured at fair value on a non-recurring basis
|
$
|
28,806
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,806
|
|
(dollars in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Investment securities available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
200,088
|
|
|
$
|
200,088
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Obligations of U.S. government & agencies
|
151,044
|
|
|
—
|
|
|
151,044
|
|
|
—
|
|
||||
Obligations of state & political subdivisions
|
21,310
|
|
|
—
|
|
|
21,310
|
|
|
—
|
|
||||
Mortgage-backed securities
|
274,990
|
|
|
—
|
|
|
274,990
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
36,662
|
|
|
—
|
|
|
36,662
|
|
|
—
|
|
||||
Mutual funds
|
3,509
|
|
|
3,509
|
|
|
—
|
|
|
—
|
|
||||
Other investment securities
|
1,599
|
|
|
—
|
|
|
1,599
|
|
|
—
|
|
||||
Total investment securities available for sale
|
$
|
689,202
|
|
|
$
|
203,597
|
|
|
$
|
485,605
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Investment securities trading:
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
$
|
4,610
|
|
|
$
|
4,610
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
1,895
|
|
|
—
|
|
|
1,895
|
|
|
—
|
|
||||
RPAs purchased
|
21
|
|
|
—
|
|
|
21
|
|
|
|
|||||
Total derivatives
|
$
|
1,916
|
|
|
$
|
—
|
|
|
$
|
1,916
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Total recurring fair value measurements
|
$
|
695,728
|
|
|
$
|
208,207
|
|
|
$
|
487,521
|
|
|
$
|
—
|
|
(dollars in thousands)
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Mortgage servicing rights
|
$
|
6,397
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,397
|
|
Impaired loans and leases
|
13,954
|
|
|
—
|
|
|
—
|
|
|
13,954
|
|
||||
OREO
|
304
|
|
|
—
|
|
|
—
|
|
|
304
|
|
||||
Total assets measured at fair value on a non-recurring basis
|
$
|
20,655
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,655
|
|
|
|
As of December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
(dollars in thousands)
|
Fair Value
Hierarchy Level (1) |
Carrying
Amount |
|
Fair Value
|
|
Carrying
Amount |
|
Fair Value
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
Level 1
|
$
|
48,456
|
|
|
$
|
48,456
|
|
|
$
|
60,024
|
|
|
$
|
60,024
|
|
Investment securities - available for sale
|
See Note 22
|
737,442
|
|
|
737,442
|
|
|
689,202
|
|
|
689,202
|
|
||||
Investment securities - trading
|
See Note 22
|
7,502
|
|
|
7,502
|
|
|
4,610
|
|
|
4,610
|
|
||||
Investment securities – held to maturity
|
Level 2
|
8,684
|
|
|
8,438
|
|
|
7,932
|
|
|
7,851
|
|
||||
Loans held for sale
|
Level 2
|
1,749
|
|
|
1,749
|
|
|
3,794
|
|
|
3,794
|
|
||||
Net portfolio loans and leases
|
Level 3
|
3,407,728
|
|
|
3,414,921
|
|
|
3,268,333
|
|
|
3,293,802
|
|
||||
Mortgage servicing rights
|
Level 3
|
5,047
|
|
|
6,277
|
|
|
5,861
|
|
|
6,397
|
|
||||
Interest rate swaps
|
Level 2
|
12,550
|
|
|
12,550
|
|
|
1,895
|
|
|
1,895
|
|
||||
Risk participation agreements purchased
|
Level 2
|
71
|
|
|
71
|
|
|
21
|
|
|
21
|
|
||||
Other assets
|
Level 3
|
43,641
|
|
|
43,641
|
|
|
46,799
|
|
|
46,799
|
|
||||
Total financial assets
|
|
$
|
4,272,870
|
|
|
$
|
4,281,047
|
|
|
$
|
4,088,471
|
|
|
$
|
4,114,395
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
Level 2
|
$
|
3,599,087
|
|
|
$
|
3,594,123
|
|
|
$
|
3,373,798
|
|
|
$
|
3,368,276
|
|
Short-term borrowings
|
Level 2
|
252,367
|
|
|
252,367
|
|
|
237,865
|
|
|
237,865
|
|
||||
Long-term FHLB advances
|
Level 2
|
55,374
|
|
|
54,803
|
|
|
139,140
|
|
|
138,685
|
|
||||
Subordinated notes
|
Level 2
|
98,526
|
|
|
100,120
|
|
|
98,416
|
|
|
95,044
|
|
||||
Junior subordinated debentures
|
Level 2
|
21,580
|
|
|
31,176
|
|
|
21,416
|
|
|
19,366
|
|
||||
Interest rate swaps
|
Level 2
|
12,549
|
|
|
12,549
|
|
|
1,895
|
|
|
1,895
|
|
||||
Risk participation agreements sold
|
Level 2
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Other liabilities
|
Level 3
|
60,847
|
|
|
60,847
|
|
|
49,071
|
|
|
49,071
|
|
||||
Total financial liabilities
|
|
$
|
4,100,332
|
|
|
$
|
4,105,987
|
|
|
$
|
3,921,604
|
|
|
$
|
3,910,205
|
|
|
Actual
|
|
Minimum
to be Well
Capitalized
|
||||||||||
(dollars in thousands)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
500,375
|
|
|
14.30
|
%
|
|
$
|
349,918
|
|
|
10.00
|
%
|
Bank
|
$
|
419,136
|
|
|
11.99
|
%
|
|
$
|
349,692
|
|
|
10.00
|
%
|
Tier I capital to risk weighted assets:
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
382,151
|
|
|
10.92
|
%
|
|
$
|
279,934
|
|
|
8.00
|
%
|
Bank
|
$
|
399,438
|
|
|
11.42
|
%
|
|
$
|
279,754
|
|
|
8.00
|
%
|
Common equity Tier I risk weighted assets:
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
361,256
|
|
|
10.32
|
%
|
|
$
|
227,446
|
|
|
6.50
|
%
|
Bank
|
$
|
399,438
|
|
|
11.42
|
%
|
|
$
|
227,300
|
|
|
6.50
|
%
|
Tier I leverage ratio (Tier I capital to total quarterly average assets):
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
382,151
|
|
|
9.06
|
%
|
|
$
|
210,830
|
|
|
5.00
|
%
|
Bank
|
$
|
399,438
|
|
|
9.48
|
%
|
|
$
|
210,615
|
|
|
5.00
|
%
|
December 31, 2017
|
|
|
|
|
|
|
|
||||||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
463.637
|
|
|
13.92
|
%
|
|
$
|
333,068
|
|
|
10.00
|
%
|
Bank
|
$
|
387,067
|
|
|
11.65
|
%
|
|
$
|
332,388
|
|
|
10.00
|
%
|
Tier I capital to risk weighted assets:
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
347.187
|
|
|
10.42
|
%
|
|
$
|
266,454
|
|
|
8.00
|
%
|
Bank
|
$
|
369,033
|
|
|
11.10
|
%
|
|
$
|
265,910
|
|
|
8.00
|
%
|
Common equity Tier I to risk weighted assets:
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
328.676
|
|
|
9.87
|
%
|
|
$
|
216,494
|
|
|
6.50
|
%
|
Bank
|
$
|
369,033
|
|
|
11.10
|
%
|
|
$
|
216,052
|
|
|
6.50
|
%
|
Tier I leverage ratio (Tier I capital to total quarterly average assets):
|
|
|
|
|
|
|
|
||||||
Corporation
|
$
|
347.187
|
|
|
10.10
|
%
|
|
$
|
171,804
|
|
|
5.00
|
%
|
Bank
|
$
|
369,033
|
|
|
10.75
|
%
|
|
$
|
171,609
|
|
|
5.00
|
%
|
|
2018
|
||||||||||||||
(dollars in thousands, except per share data)
|
1
st
Quarter
|
|
2
nd
Quarter
|
|
3
rd
Quarter
|
|
4
th
Quarter
|
||||||||
Interest income
|
$
|
43,534
|
|
|
$
|
44,754
|
|
|
$
|
45,233
|
|
|
$
|
47,534
|
|
Interest expense
|
6,095
|
|
|
7,438
|
|
|
8,504
|
|
|
9,547
|
|
||||
Net interest income
|
37,439
|
|
|
37,316
|
|
|
36,729
|
|
|
37,987
|
|
||||
Provision for loan and lease losses
|
1,030
|
|
|
3,137
|
|
|
664
|
|
|
2,362
|
|
||||
Noninterest income
|
19,536
|
|
|
20,075
|
|
|
18,274
|
|
|
18,097
|
|
||||
Noninterest expense
|
36,030
|
|
|
35,836
|
|
|
33,592
|
|
|
34,845
|
|
||||
Income before income taxes
|
19,915
|
|
|
18,418
|
|
|
20,747
|
|
|
18,877
|
|
||||
Income taxes
|
4,630
|
|
|
3,723
|
|
|
4,066
|
|
|
1,746
|
|
||||
Net income
|
15,285
|
|
|
14,695
|
|
|
16,681
|
|
|
17,131
|
|
||||
Net (loss) income attributable to noncontrolling interest
|
(1
|
)
|
|
7
|
|
|
(1
|
)
|
|
(5
|
)
|
||||
Net income attributable to Bryn Mawr Bank Corporation
|
$
|
15,286
|
|
|
$
|
14,688
|
|
|
$
|
16,682
|
|
|
$
|
17,136
|
|
Basic earnings per common share
(1)
|
$
|
0.76
|
|
|
$
|
0.73
|
|
|
$
|
0.82
|
|
|
$
|
0.85
|
|
Diluted earnings per common share
(1)
|
$
|
0.75
|
|
|
$
|
0.72
|
|
|
$
|
0.82
|
|
|
$
|
0.84
|
|
Dividend paid or accrued
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
2017
|
||||||||||||||
(dollars in thousands, except per share data)
|
1
st
Quarter
|
|
2
nd
Quarter
|
|
3
rd
Quarter
|
|
4
th
Quarter
|
||||||||
Interest income
|
$
|
30,326
|
|
|
$
|
31,237
|
|
|
$
|
33,198
|
|
|
$
|
34,798
|
|
Interest expense
|
2,923
|
|
|
3,272
|
|
|
3,760
|
|
|
4,477
|
|
||||
Net interest income
|
27,403
|
|
|
27,965
|
|
|
29,438
|
|
|
30,321
|
|
||||
Provision for loan and lease losses
|
291
|
|
|
(83
|
)
|
|
1,333
|
|
|
1,077
|
|
||||
Noninterest income
|
13,227
|
|
|
14,785
|
|
|
15,584
|
|
|
15,536
|
|
||||
Noninterest expense
|
26,660
|
|
|
28,495
|
|
|
28,184
|
|
|
31,056
|
|
||||
Income before income taxes
|
13,679
|
|
|
14,338
|
|
|
15,505
|
|
|
13,724
|
|
||||
Income taxes
|
4,635
|
|
|
4,905
|
|
|
4,766
|
|
|
19,924
|
|
||||
Net income (loss)
|
9,044
|
|
|
9,433
|
|
|
10,739
|
|
|
(6,200
|
)
|
||||
Net (loss) income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income (loss) attributable to Bryn Mawr Bank Corporation
|
$
|
9,044
|
|
|
$
|
9,433
|
|
|
$
|
10,739
|
|
|
$
|
(6,200
|
)
|
Basic earnings (loss) per common share
(1)
|
$
|
0.53
|
|
|
$
|
0.56
|
|
|
$
|
0.63
|
|
|
$
|
(0.35
|
)
|
Diluted earnings (loss) per common share
(1)
|
$
|
0.53
|
|
|
$
|
0.55
|
|
|
$
|
0.62
|
|
|
$
|
(0.35
|
)
|
Dividend paid or accrued
|
$
|
0.21
|
|
|
$
|
0.21
|
|
|
$
|
0.22
|
|
|
$
|
0.22
|
|
|
December 31,
|
||||||
(dollars in thousands)
|
2018
|
|
2017
|
||||
Assets:
|
|
|
|
||||
Cash
|
$
|
78,143
|
|
|
$
|
68,535
|
|
Investment securities
|
418
|
|
|
458
|
|
||
Investments in subsidiaries, as equity in net assets
|
606,023
|
|
|
580,230
|
|
||
Premises and equipment, net
|
2,091
|
|
|
2,189
|
|
||
Goodwill
|
245
|
|
|
245
|
|
||
Other assets
|
1,060
|
|
|
1,135
|
|
||
Total assets
|
687,980
|
|
|
652,792
|
|
||
Liabilities and shareholders’ equity:
|
|
|
|
||||
Subordinated notes
|
98,526
|
|
|
98,416
|
|
||
Junior subordinated debentures
|
21,580
|
|
|
21,416
|
|
||
Other liabilities
|
2,485
|
|
|
4,158
|
|
||
Total liabilities
|
122,591
|
|
|
123,990
|
|
||
Common stock, par value $1; authorized 100,000,000 shares; issued 24,545,348 and 24,360,049 shares as of December 31, 2018 and December 31, 2017, respectively, and outstanding of 20,163,816 and 20,161,395 as of December 31, 2018 and December 31, 2017, respectively
|
24,545
|
|
|
24,360
|
|
||
Paid-in capital in excess of par value
|
374,010
|
|
|
371,486
|
|
||
Less: Common stock in treasury at cost - 4,381,532 and 4,198,654 shares as of December 31, 2018 and December 31, 2017, respectively
|
(75,883
|
)
|
|
(68,179
|
)
|
||
Accumulated other comprehensive loss, net of deferred income taxes benefit
|
(7,513
|
)
|
|
(4,414
|
)
|
||
Retained earnings
|
250,230
|
|
|
205,549
|
|
||
Total shareholders’ equity
|
565,389
|
|
|
528,802
|
|
||
Total liabilities and shareholders’ equity
|
$
|
687,980
|
|
|
$
|
652,792
|
|
|
Year Ended December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Dividends from subsidiaries
|
$
|
30,900
|
|
|
$
|
950
|
|
|
$
|
17,718
|
|
Net interest and other income
|
2,615
|
|
|
2,761
|
|
|
2,714
|
|
|||
Total operating income
|
33,515
|
|
|
3,711
|
|
|
20,432
|
|
|||
Expenses
|
3,527
|
|
|
2,782
|
|
|
2,443
|
|
|||
Income before equity in undistributed income of subsidiaries
|
29,988
|
|
|
929
|
|
|
17,989
|
|
|||
Equity in undistributed income of subsidiaries
|
32,779
|
|
|
21,053
|
|
|
17,600
|
|
|||
Income before income taxes
|
62,767
|
|
|
21,982
|
|
|
35,589
|
|
|||
Income tax benefit
|
(1,025
|
)
|
|
(1,034
|
)
|
|
(447
|
)
|
|||
Net income
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
|
Year Ended December 31,
|
||||||||||
(dollars in thousands)
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
63,792
|
|
|
$
|
23,016
|
|
|
$
|
36,036
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed income of subsidiaries
|
(32,779
|
)
|
|
(21,053
|
)
|
|
(17,600
|
)
|
|||
Depreciation and amortization
|
98
|
|
|
154
|
|
|
151
|
|
|||
Stock-based compensation cost
|
2,750
|
|
|
2,068
|
|
|
1,713
|
|
|||
Other, net
|
2,860
|
|
|
1,241
|
|
|
1,000
|
|
|||
Net cash provided by operating activities
|
36,721
|
|
|
5,426
|
|
|
21,300
|
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Investment in subsidiaries
|
—
|
|
|
(15,300
|
)
|
|
(15,000
|
)
|
|||
Net change in trading securities
|
40
|
|
|
(58
|
)
|
|
—
|
|
|||
Acquisitions, net of cash acquired
|
—
|
|
|
531
|
|
|
—
|
|
|||
Net cash provided by (used in) investing activities
|
40
|
|
|
(14,827
|
)
|
|
(15,000
|
)
|
|||
Financing activities:
|
|
|
|
|
|
||||||
Dividends paid
|
(19,289
|
)
|
|
(14,799
|
)
|
|
(13,961
|
)
|
|||
Proceeds from issuance of subordinated notes
|
—
|
|
|
68,829
|
|
|
—
|
|
|||
Net proceeds from sale of (purchase of) treasury stock for deferred compensation plans
|
2
|
|
|
(115
|
)
|
|
(133
|
)
|
|||
Net purchase of treasury stock through publicly announced plans
|
(5,936
|
)
|
|
—
|
|
|
(7,971
|
)
|
|||
Cash payments to taxing authorities on employees' behalf from shares withheld from stock-based compensation
|
(1,639
|
)
|
|
(1,140
|
)
|
|
(745
|
)
|
|||
Proceeds from exercise of stock options
|
1,464
|
|
|
1,498
|
|
|
2,181
|
|
|||
Repurchase of treasury warrants
|
(1,755
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash
(used
in)
provided by financing activities
|
(27,153
|
)
|
|
54,273
|
|
|
(20,629
|
)
|
|||
Change in cash and cash equivalents
|
9,608
|
|
|
44,872
|
|
|
(14,329
|
)
|
|||
Cash and cash equivalents at beginning of period
|
68,535
|
|
|
23,663
|
|
|
37,992
|
|
|||
Cash and cash equivalents at end of period
|
$
|
78,143
|
|
|
$
|
68,535
|
|
|
$
|
23,663
|
|
|
As of or for the Year Ended December 31,
|
||||||||||||||||||||||||||||||
|
2018
|
|
|
2017
|
|
|
2016
|
||||||||||||||||||||||||
(dollars in thousands)
|
Banking
|
Wealth
Management
|
Consolidated
|
|
|
Banking
|
Wealth
Management
|
Consolidated
|
|
|
Banking
|
Wealth
Management |
Consolidated
|
||||||||||||||||||
Net interest income
|
$
|
149,464
|
|
$
|
7
|
|
$
|
149,471
|
|
|
|
$
|
115,124
|
|
$
|
3
|
|
$
|
115,127
|
|
|
|
$
|
106,233
|
|
$
|
3
|
|
$
|
106,236
|
|
Provision for loan and lease losses
|
7,193
|
|
—
|
|
7,193
|
|
|
|
2,618
|
|
—
|
|
2,618
|
|
|
|
4,326
|
|
—
|
|
4,326
|
|
|||||||||
Net interest income after loan loss provision
|
142,271
|
|
7
|
|
142,278
|
|
|
|
112,506
|
|
3
|
|
112,509
|
|
|
|
101,907
|
|
3
|
|
101,910
|
|
|||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Fees for wealth management services
|
—
|
|
42,326
|
|
42,326
|
|
|
|
—
|
|
38,735
|
|
38,735
|
|
|
|
—
|
|
36,690
|
|
36,690
|
|
|||||||||
Insurance commissions
|
—
|
|
6,808
|
|
6,808
|
|
|
|
—
|
|
4,589
|
|
4,589
|
|
|
|
—
|
|
3,722
|
|
3,722
|
|
|||||||||
Capital markets revenue
|
4,848
|
|
—
|
|
4,848
|
|
|
|
2,396
|
|
—
|
|
2,396
|
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Service charges on deposit accounts
|
2,989
|
|
—
|
|
2,989
|
|
|
|
2,608
|
|
—
|
|
2,608
|
|
|
|
2,791
|
|
—
|
|
2,791
|
|
|||||||||
Loan servicing and other fees
|
2,259
|
|
—
|
|
2,259
|
|
|
|
2,106
|
|
—
|
|
2,106
|
|
|
|
1,939
|
|
—
|
|
1,939
|
|
|||||||||
Net gain on sale of loans
|
3,283
|
|
—
|
|
3,283
|
|
|
|
2,441
|
|
—
|
|
2,441
|
|
|
|
3,048
|
|
—
|
|
3,048
|
|
|||||||||
Net gain on sale of investment securities available for sale
|
7
|
|
—
|
|
7
|
|
|
|
101
|
|
—
|
|
101
|
|
|
|
(77
|
)
|
—
|
|
(77
|
)
|
|||||||||
Net gain (loss) gain on sale of OREO
|
295
|
|
—
|
|
295
|
|
|
|
(104
|
)
|
—
|
|
(104
|
)
|
|
|
(76
|
)
|
—
|
|
(76
|
)
|
|||||||||
Other operating income
|
12,981
|
|
186
|
|
13,167
|
|
|
|
6,063
|
|
197
|
|
6,260
|
|
|
|
5,773
|
|
158
|
|
5,931
|
|
|||||||||
Total noninterest income
|
26,662
|
|
49,320
|
|
75,982
|
|
|
|
15,611
|
|
43,521
|
|
59,132
|
|
|
|
13,398
|
|
40,570
|
|
53,968
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Noninterest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Salaries & wages
|
46,936
|
|
19,735
|
|
66,671
|
|
|
|
36,559
|
|
16,692
|
|
53,251
|
|
|
|
32,321
|
|
15,090
|
|
47,411
|
|
|||||||||
Employee benefits
|
9,046
|
|
3,872
|
|
12,918
|
|
|
|
6,350
|
|
3,820
|
|
10,170
|
|
|
|
5,958
|
|
3,291
|
|
9,249
|
|
|||||||||
Occupancy and bank premise
|
9,588
|
|
2,011
|
|
11,599
|
|
|
|
8,208
|
|
1,698
|
|
9,906
|
|
|
|
8,005
|
|
1,606
|
|
9,611
|
|
|||||||||
Amortization of intangible assets
|
1,555
|
|
2,101
|
|
3,656
|
|
|
|
783
|
|
1,951
|
|
2,734
|
|
|
|
872
|
|
2,626
|
|
3,498
|
|
|||||||||
Professional fees
|
3,747
|
|
456
|
|
4,203
|
|
|
|
2,998
|
|
270
|
|
3,268
|
|
|
|
3,516
|
|
143
|
|
3,659
|
|
|||||||||
Other operating expenses
|
35,928
|
|
5,328
|
|
41,256
|
|
|
|
30,605
|
|
4,461
|
|
35,066
|
|
|
|
24,411
|
|
3,835
|
|
28,246
|
|
|||||||||
Total noninterest expenses
|
106,800
|
|
33,503
|
|
140,303
|
|
|
|
85,503
|
|
28,892
|
|
114,395
|
|
|
|
75,083
|
|
26,591
|
|
101,674
|
|
|||||||||
Segment profit
|
62,133
|
|
15,824
|
|
77,957
|
|
|
|
42,614
|
|
14,632
|
|
57,246
|
|
|
|
40,222
|
|
13,982
|
|
54,204
|
|
|||||||||
Intersegment (revenues) expenses
(1)
|
(715
|
)
|
715
|
|
—
|
|
|
|
(448
|
)
|
448
|
|
—
|
|
|
|
(396
|
)
|
396
|
|
—
|
|
|||||||||
Pre-tax segment profit after eliminations
|
$
|
61,418
|
|
$
|
16,539
|
|
$
|
77,957
|
|
|
|
$
|
42,166
|
|
$
|
15,080
|
|
$
|
57,246
|
|
|
|
$
|
39,826
|
|
$
|
14,378
|
|
$
|
54,204
|
|
% of segment pre-tax profit after eliminations
|
78.8
|
%
|
21.2
|
%
|
100.0
|
%
|
|
|
73.7
|
%
|
26.3
|
%
|
100.0
|
%
|
|
|
73.5
|
%
|
26.5
|
%
|
100.0
|
%
|
|||||||||
Segment assets
(dollars in millions)
|
$
|
4,601.7
|
|
$
|
50.8
|
|
$
|
4,652.5
|
|
|
|
$
|
4,398.5
|
|
$
|
51.2
|
|
$
|
4,449.7
|
|
|
|
$
|
3,377.1
|
|
$
|
44.4
|
|
$
|
3,421.5
|
|
(dollars in millions)
|
December 31,
2018 |
|
December 31,
2017 |
||||
Assets under management, administration, supervision and brokerage
|
$
|
13,429.5
|
|
|
$
|
12,968.7
|
|
•
|
Evaluation of Disclosure Controls and Procedures
|
•
|
Changes in Internal Control over Financial Reporting
|
•
|
Design and Evaluation of Internal Control Over Financial Reporting
|
|
Page
|
Exhibit No.
|
|
Description and References
|
2.1
|
|
|
|
|
|
2.2
|
|
|
|
|
|
2.3
|
|
|
|
|
|
2.4
|
|
|
|
|
|
2.5
|
|
|
|
|
|
2.6
|
|
|
|
|
|
2.7
|
|
|
|
|
|
2.8
|
|
|
|
|
|
2.9
|
|
|
|
|
|
2.10
|
|
|
|
|
|
Exhibit No.
|
|
Description and References
|
2.11
|
|
|
|
|
|
2.12
|
|
|
|
|
|
2.13
|
|
|
|
|
|
2.14
|
|
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
4.6
|
|
|
|
|
|
4.7
|
|
|
|
|
|
4.8
|
|
|
|
|
|
4.9
|
|
|
|
|
|
4.10
|
|
|
|
|
|
4.11
|
|
|
|
|
|
4.12
|
|
|
|
|
|
Exhibit No.
|
|
Description and References
|
4.13
|
|
|
|
|
|
4.14
|
|
|
|
|
|
10.1*
|
|
|
|
|
|
10.2**
|
|
|
|
|
|
10.3*
|
|
|
|
|
|
10.4*
|
|
|
|
|
|
10.5*
|
|
|
|
|
|
10.6*
|
|
|
|
|
|
10.7*
|
|
|
|
|
|
10.8*
|
|
|
|
|
|
10.9*
|
|
|
|
|
|
10.10*
|
|
|
|
|
|
10.11*
|
|
|
|
|
|
10.12*
|
|
|
|
|
|
10.13**
|
|
|
|
|
|
10.14**
|
|
|
|
|
|
10.15**
|
|
|
|
|
|
10.16**
|
|
|
|
|
|
10.17**
|
|
|
|
|
|
10.18
|
|
Exhibit No.
|
|
Description and References
|
|
|
|
10.19*
|
|
|
|
|
|
10.20**
|
|
|
|
|
|
10.21**
|
|
|
|
|
|
10.22**
|
|
|
|
|
|
10.23**
|
|
|
|
|
|
10.24
|
|
|
|
|
|
10.25**
|
|
|
|
|
|
10.26
|
|
|
|
|
|
10.27**
|
|
|
|
|
|
10.28**
|
|
|
|
|
|
10.29*
|
|
|
|
|
|
10.30*
|
|
|
|
|
|
10.31*
|
|
|
|
|
|
10.32*
|
|
|
|
|
|
10.33*
|
|
|
|
|
|
10.34*
|
|
|
|
|
|
10.35**
|
|
|
|
|
|
10.36**
|
|
|
|
|
|
10.37**
|
|
|
|
|
|
Exhibit No.
|
|
Description and References
|
10.38
|
|
|
|
|
|
10.39*
|
|
|
|
|
|
10.40
|
|
|
|
|
|
10.41
|
|
|
|
|
|
10.42*
|
|
|
|
|
|
10.43*
|
|
|
|
|
|
10.44*
|
|
|
|
|
|
10.45*
|
|
|
|
|
|
10.46*
|
|
|
|
|
|
10.47
|
|
|
|
|
|
10.48
|
|
|
|
|
|
21.1
|
|
|
|
|
|
23.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
99.1
|
|
Corporation’s Proxy Statement for 2018 Annual Meeting to be held on April 18, 2019, expected to be filed with the SEC on or about March 8, 2019
|
|
|
|
101.INS XBRL
|
|
Instance Document, filed herewith
|
|
|
|
101.SCH XBRL
|
|
Taxonomy Extension Schema Document, filed herewith
|
|
|
|
101.CAL XBRL
|
|
Taxonomy Extension Calculation Linkbase Document, filed herewith
|
|
|
|
101.DEF XBRL
|
|
Taxonomy Extension Definition Linkbase Document, filed herewith
|
|
|
|
101.LAB XBRL
|
|
Taxonomy Extension Label Linkbase Document, filed herewith
|
|
|
|
Bryn Mawr Bank Corporation
|
|
|
|
|
|
By:
|
/s/ Michael W. Harrington
|
|
|
Michael W. Harrington
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Date: February 28, 2019
|
|
NAME
|
|
TITLE
|
|
DATE
|
|
|
|
|
|
/s/ Britton H. Murdoch
|
|
Chairman and Director
|
|
February 28, 2019
|
Britton H. Murdoch
|
|
|
|
|
|
|
|
|
|
/s/ Francis J. Leto
|
|
Chief Executive Officer
|
|
February 28, 2019
|
Francis J. Leto
|
|
(Principal Executive Officer) and Director
|
|
|
|
|
|
|
|
/s/ Michael W. Harrington
|
|
Chief Financial Officer
|
|
February 28, 2019
|
Michael W. Harrington
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
/s/ Michael T. LaPlante
|
|
Chief Accounting Officer
|
|
February 28, 2019
|
Michael T. LaPlante
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
/s/ Diego F. Calderin
|
|
Director
|
|
February 28, 2019
|
Diego F. Calderin
|
|
|
|
|
|
|
|
|
|
/s/ Michael J. Clement
|
|
Director
|
|
February 28, 2019
|
Michael J. Clement
|
|
|
|
|
|
|
|
|
|
/s/ Andrea F. Gilbert
|
|
Director
|
|
February 28, 2019
|
Andrea F. Gilbert
|
|
|
|
|
|
|
|
|
|
/s/ Wendell F. Holland
|
|
Director
|
|
February 28, 2019
|
Wendell F. Holland
|
|
|
|
|
|
|
|
|
|
/s/ Scott M. Jenkins
|
|
Director
|
|
February 28, 2019
|
Scott M. Jenkins
|
|
|
|
|
|
|
|
|
|
/s/ A. John May, III
|
|
Director
|
|
February 28, 2019
|
A. John May, III
|
|
|
|
|
|
|
|
|
|
/s/ Lynn B. McKee
|
|
Director
|
|
February 28, 2019
|
Lynn B. McKee
|
|
|
|
|
|
|
|
|
|
/s/ F. Kevin Tylus
|
|
Director
|
|
February 28, 2019
|
F. Kevin Tylus
|
|
|
|
|
Performance Goal:
|
Certain conditions and goals as determined according to Exhibit A hereto
|
i.
|
The two-year anniversary of such Time Vesting Date or Performance Vesting Date, as applicable;
|
ii.
|
The date of the Grantee’s death or Disability (as defined in section 5 below); or
|
iii.
|
The date of consummation of a Change in Control (as defined in section 7 below).
|
|
|
||
BRYN MAWR BANK CORPORATION
|
|||
|
|
||
By:
|
|
||
Name: Michael W. Harrington
|
|
||
Title: Chief Financial Officer
|
|
||
|
|||
|
|||
(Signature of Grantee)
|
|||
|
|||
|
|||
(Print Name of Grantee)
|
|||
|
|||
|
|||
(Address of Grantee)
|
TSR Percentile Rank
1,2
|
Less than 25%
|
25%
|
50%
|
75% or Greater
|
ROAE Percentile Rank
1
|
Less than 25%
|
25%
|
50%
|
75% or Greater
|
Number of RSUs Vesting
|
0 RSUs
|
0% of target
|
100% of target
|
150% of target
|
Company Name
|
Ticker
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Notwithstanding the foregoing, if at any time prior to the expiration of the Performance Period a member of the Peer Group ceases to be a domestically domiciled publicly traded company on a national stock exchange or market system; or has gone private; or has reincorporated in a foreign (e.g., non-U.S.) jurisdiction, regardless of whether it is a reporting company in that or another jurisdiction; or has been acquired by another company (whether by a peer company or otherwise, but not including internal reorganizations), or has sold all or substantially all of its assets, then such member shall be immediately removed from the Peer Group.
|
Performance Goal:
|
Certain conditions and goals as determined according to Exhibit A hereto
|
i.
|
The two-year anniversary of such Time Vesting Date or Performance Vesting Date, as applicable;
|
ii.
|
The date of the Grantee’s death or Disability (as defined in section 5 below); or
|
iii.
|
The date of consummation of a Change in Control (as defined in section 7 below).
|
|
|
||
BRYN MAWR BANK CORPORATION
|
|||
|
|
||
By:
|
|
||
Name: Michael W. Harrington
|
|
||
Title: Chief Financial Officer
|
|
||
|
|||
|
|||
(Signature of Grantee)
|
|||
|
|||
|
|||
(Print Name of Grantee)
|
|||
|
|||
|
|||
(Address of Grantee)
|
TSR Percentile Rank
1,2
|
Less than 25%
|
25%
|
50%
|
75% or Greater
|
ROAE Percentile Rank
1
|
Less than 25%
|
25%
|
50%
|
75% or Greater
|
Number of RSUs Vesting
|
0 RSUs
|
0% of target
|
100% of target
|
150% of target
|
Company Name
|
Ticker
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Notwithstanding the foregoing, if at any time prior to the expiration of the Performance Period a member of the Peer Group ceases to be a domestically domiciled publicly traded company on a national stock exchange or market system; or has gone private; or has reincorporated in a foreign (e.g., non-U.S.) jurisdiction, regardless of whether it is a reporting company in that or another jurisdiction; or has been acquired by another company (whether by a peer company or otherwise, but not including internal reorganizations), or has sold all or substantially all of its assets, then such member shall be immediately removed from the Peer Group.
|
Vesting Date:
|
[__________]
|
Performance Goal:
|
Certain conditions and goals as determined according to Exhibit A hereto
|
|
|
|
BRYN MAWR BANK CORPORATION
|
||
|
|
|
By:
|
|
|
Name:
|
|
|
Title:
|
|
|
|
||
|
||
(Signature of Grantee)
|
||
|
||
|
||
(Print Name of Grantee)
|
||
|
||
|
||
(Address of Grantee)
|
Weight
|
Measure
|
Baseline Calculation
|
-----%
|
-----%
|
-----%
|
-----%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this
Annual Report
on Form
10-K
of Bryn Mawr Bank Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 28, 2019
|
/s/ Francis J. Leto
|
|
|
|
Francis J. Leto, Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this
Annual Report
on Form
10-K
of Bryn Mawr Bank Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: February 28, 2019
|
/s/ Michael W. Harrington
|
|
|
|
Michael W. Harrington, Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
|
Date: February 28, 2019
|
/s/ Francis J. Leto
|
|
|
|
Francis J. Leto, Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
|
Date: February 28, 2019
|
/s/ Michael W. Harrington
|
|
|
|
Michael W. Harrington, Chief Financial Officer
|
|
|
(Principal Financial Officer)
|