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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
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SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2015
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OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
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SECURITIES EXCHANGE ACT OF 1934
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Ohio
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31-1179518
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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50 North Third Street, P.O. Box 3500, Newark, Ohio
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43058-3500
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered
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Common Shares, without par value
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NYSE MKT LLC
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Large accelerated filer
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Accelerated filer
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Non-accelerated filer
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Smaller reporting company
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(Do not check if a smaller reporting company)
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Class
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Outstanding at February 17, 2016
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Common Shares, without par value
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15,330,812 common shares
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Document
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Parts Into Which Incorporated
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Portions of the Registrant’s 2015 Annual Report
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Parts I and II
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Portions of the Registrant’s Definitive Proxy Statement for the Annual Meeting of Shareholders to be held on April 25, 2016
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Part III
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ITEM 1.
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BUSINESS.
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the acceptance of deposits for demand, savings and time accounts and the servicing of those accounts;
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commercial, industrial, consumer and real estate lending, including installment loans, credit cards (which are offered through a third party), home equity lines of credit and commercial leasing;
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trust and wealth management services;
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cash management;
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safe deposit operations;
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electronic funds transfers;
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Internet and mobile banking solutions with bill pay service; and
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a variety of additional banking-related services tailored to the needs of individual customers.
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assess civil money penalties;
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issue cease and desist or removal orders; and
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require that a financial holding company divest subsidiaries (including a subsidiary bank).
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acquire direct or indirect ownership or control of more than 5% of the voting shares of any bank that is not already majority-owned by it;
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acquire all or substantially all of the assets of another bank or another financial or bank holding company; or
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merge or consolidate with any other financial or bank holding company.
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securities underwriting, dealing and market making;
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sponsoring mutual funds and investment companies;
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insurance underwriting and agency;
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merchant banking; and
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activities that the Federal Reserve Board has determined to be closely related to banking.
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limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with any one affiliate;
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limit the extent to which a bank or its subsidiaries may engage in “covered transactions” with all affiliates; and
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require that all such transactions be on terms substantially the same, or at least as favorable to the bank or subsidiary, as those provided to a non-affiliate.
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the CFPB has been formed, which has broad powers to adopt and enforce consumer protection regulations;
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the federal law prohibiting the payment of interest on commercial demand deposit accounts has been eliminated;
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the standard maximum amount of deposit insurance per customer was permanently increased to $250,000;
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the assessment base for determining deposit insurance premiums has been expanded from domestic deposits to average assets minus average tangible equity;
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public companies in all industries are now required to provide shareholders the opportunity to cast a non-binding advisory vote on executive compensation;
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the Federal Reserve Board has imposed on financial institutions with assets of $10 billion or more a cap on the debit card interchange fees the financial institutions may charge. Although the cap is not applicable to Park National Bank, it may have an adverse effect on Park National Bank as the debit cards issued by Park National Bank and other smaller banks, which have higher interchange fees, may become less competitive;
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new capital regulations have been adopted as discussed above in the section captioned
"Regulatory Capital"
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"ability to repay" regulations took effect in 2014 and generally require creditors to make a reasonable, good faith determination (considering at least eight specified underwriting factors) of a consumer's ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and provides a presumption that the creditor making a "qualified mortgage" satisfied the ability-to-pay requirements.
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ITEM 1A.
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RISK FACTORS.
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the time and expense associated with identifying and evaluating potential expansions;
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the potential inaccuracy of estimates and judgments used to evaluate credit, operations, management and market risk with respect to target institutions;
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the time and costs of evaluating new markets, hiring local management and opening new offices, and the delay between commencing these activities and the generation of profits from the expansion;
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our financing of the expansion;
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the diversion of management’s attention to the negotiation of a transaction and the integration of the operations and personnel of the combining businesses;
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entry into unfamiliar markets;
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the introduction of new products and services into our existing business;
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the incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations; and
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the risk of loss of key employees and customers.
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ITEM 1B.
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UNRESOLVED STAFF COMMENTS.
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ITEM 2.
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PROPERTIES.
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financial service offices in Ashland, Loudonville and Perrysville in Ashland County;
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a financial service office in Athens in Athens County;
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a financial service office in West Chester in Butler County;
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financial service offices in Urbana (two offices), Mechanicsburg and North Lewisburg in Champaign County;
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financial service offices in Springfield (six offices), Enon, Medway, New Carlisle (two offices) and South Charleston in Clark County;
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financial service offices in Amelia (two offices), Cincinnati, Milford, New Richmond and Owensville in Clermont County;
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a financial service office in Coshocton in Coshocton County;
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financial service offices in Bucyrus, Crestline and Galion in Crawford County;
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financial service offices in Greenville (four offices), Arcanum and Versailles in Darke County;
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financial service offices in Baltimore, Pickerington and Lancaster (six offices) in Fairfield County;
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financial service offices in Canal Winchester, Columbus, Gahanna, Reynoldsburg and Worthington in Franklin County;
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financial service offices in Jamestown and Xenia (two offices) in Greene County;
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financial service offices in Cincinnati (two offices) in Hamilton County;
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a financial service office in Logan in Hocking County;
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a financial service office in Millersburg in Holmes County;
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financial service offices (3 offices) and an operations center in Mount Vernon as well as financial service offices in Centerburg, Danville and Fredericktown, all in Knox County;
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financial service offices in Granville, Heath (two offices), Hebron, Johnstown, Pataskala, and Utica in Licking County;
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a financial service office in Plain City in Madison County;
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financial service offices in Caledonia, Marion and Prospect in Marion County;
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financial service offices in Celina and Fort Recovery in Mercer County;
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financial service offices (three offices) and an operations center in Piqua as well as financial service offices in Tipp City and Troy, all in Miami County;
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a financial service office in Mount Gilead in Morrow County;
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financial service offices in Zanesville (eight offices), New Concord and Dresden in Muskingum County;
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a financial service office in New Lexington in Perry County;
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financial service offices in Bellville, Mansfield (eight offices), Butler, Lexington, Ontario and Shelby in Richland County;
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financial service offices in Newcomerstown and New Philadelphia in Tuscarawas County and
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a financial service office in Springboro in Warren County; and
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a financial service office in Wooster in Wayne County.
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ITEM 3.
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LEGAL PROCEEDINGS.
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ITEM 4.
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MINE SAFETY DISCLOSURES.
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
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Period
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Total Number of
Common Shares Purchased (1)
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Average Price Paid per
Common Share
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Total Number of
Common Shares Purchased as Part of Publicly Announced Plans or Programs (1)
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Maximum Number of Common Shares that May Yet Be Purchased under the Plans or Programs (2)
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October 1 through October 31, 2015
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—
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—
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—
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508,050
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November 1 through November 30, 2015
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—
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—
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—
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508,050
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December 1 through December 31, 2015
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20,000
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$
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88.89
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20,000
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488,050
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Total
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20,000
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$
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88.89
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20,000
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(1)
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All of the Common Shares reported were purchased in the open market under Park's publicly announced stock repurchase authorization to fund the 2013 Incentive Plan.
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(2)
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The number shown represents, as of the end of each period, the maximum number of Common Shares that may yet be purchased as part of Park’s publicly announced stock repurchase authorization to fund the 2013 Incentive Plan which became effective on April 22, 2013.
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ITEM 6.
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SELECTED FINANCIAL DATA.
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ITEM 7.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
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ITEM 7A.
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QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
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ITEM 8.
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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
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ITEM 9.
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CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
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ITEM 9A.
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CONTROLS AND PROCEDURES.
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information required to be disclosed by Park in this Annual Report on Form 10-K and the other reports that Park files or submits under the Exchange Act would be accumulated and communicated to Park’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure;
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information required to be disclosed by Park in this Annual Report on Form 10-K and the other reports that Park files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and
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Park’s disclosure controls and procedures were effective as of the end of the fiscal year covered by this Annual Report on Form 10-K.
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ITEM 9B.
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OTHER INFORMATION.
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ITEM 10.
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DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
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ITEM 11.
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EXECUTIVE COMPENSATION.
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ITEM 12.
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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
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ITEM 13.
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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
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ITEM 14.
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PRINCIPAL ACCOUNTANT FEES AND SERVICES.
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3.1(a)
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Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on March 24, 1992 (incorporated herein by reference to Exhibit 3(a) to Park National Corporation's Form 8-B, filed on May 20, 1992 (File No. 0-18772) (“Park's Form 8-B”))
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3.1(b)
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Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on May 6, 1993 (incorporated herein by reference to Exhibit 3(b) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 0-18772))
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3.1(c)
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Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 16, 1996 (incorporated herein by reference to Exhibit 3(a) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1996 (File No. 1-13006))
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3.1(d)
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Certificate of Amendment by Shareholders to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 22, 1997 (incorporated herein by reference to Exhibit 3(a)(1) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997 (File No. 1-13006) (“Park's June 30, 1997 Form 10-Q”))
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3.1(e)
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Certificate of Amendment by Shareholders as filed with the Secretary of State of the State of Ohio on December 18, 2008 in order to evidence the adoption by the shareholders of Park National Corporation on December 18, 2008 of an amendment to Article FOURTH of Park National Corporation's Articles of Incorporation to authorize Park National Corporation to issue up to 200,000 preferred shares, without par value (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed December 19, 2008 (File No. 1-13006))
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3.1(f)
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Certificate of Amendment by Directors to Articles as filed with the Secretary of State of the State of Ohio on December 19, 2008, evidencing adoption of amendment by Board of Directors of Park National Corporation to Article FOURTH of Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Park National Corporation (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed December 23, 2008 (File No. 1-13006) (“Park's December 23, 2008 Form 8-K”))
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3.1(g)
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Certificate of Amendment by Shareholders as filed with the Secretary of State of the State of Ohio on April 18, 2011 in order to evidence the adoption by Park National Corporation's shareholders of an amendment to Article SIXTH of Park National Corporation's Articles of Incorporation in order to provide that shareholders do not have preemptive rights (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed April 19, 2011 (File No. 1-13006))
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3.1(h)
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Articles of Incorporation of Park National Corporation (reflecting all amendments) [for SEC reporting compliance purposes only - not filed with Ohio Secretary of State] (incorporated herein by reference to Exhibit 3.1(h) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011 (File No. 1-13006))
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3.2(a)
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Regulations of Park National Corporation (incorporated herein by reference to Exhibit 3(b) to Park's Form 8-B)
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3.2(b)
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Certified Resolution regarding Adoption of Amendment to Subsection 2.02(A) of the Regulations of Park National Corporation by Shareholders on April 21, 1997 (incorporated herein by reference to Exhibit 3(b)(1) to Park's June 30, 1997 Form 10-Q)
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3.2(c)
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Certificate Regarding Adoption of Amendments to Sections 1.04 and 1.11 of Park National Corporation's Regulations by the Shareholders on April 17, 2006 (incorporated herein by reference to Exhibit 3.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 18, 2006 (File No. 1-13006))
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3.2(d)
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Certificate Regarding Adoption by the Shareholders of Park National Corporation on April 21, 2008 of Amendment to Regulations to Add New Section 5.10 to Article FIVE (incorporated herein by reference to Exhibit 3.2(d) to Park National Corporation's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008 (File No. 1-13006) (“Park's March 31, 2008 Form 10-Q”))
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3.2(e)
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Regulations of Park National Corporation (reflecting all amendments) [For purposes of SEC reporting compliance only] (incorporated herein by reference to Exhibit 3.2 (e) to Park's March 31, 2008 Form 10-Q)
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4.1(a)
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Junior Subordinated Indenture, dated as of December 5, 2005, between Vision Bancshares, Inc. and Wilmington Trust Company, as Trustee (incorporated herein by reference to Exhibit 10.16 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))
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4.1(b)
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First Supplemental Indenture, dated to be effective as of 6:00 p.m., Eastern Standard Time, on March 9, 2007, among Wilmington Trust Company, as Trustee; Park National Corporation; and Vision Bancshares, Inc. (incorporated herein by reference to Exhibit 4.1(b) to Park National Corporation's Current Report on Form 8-K dated and filed March 15, 2007 (File No. 1-13006) (“Park's March 15, 2007 Form 8-K”))
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4.2(a)
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Amended and Restated Trust Agreement, dated as of December 5, 2005, among Vision Bancshares, Inc., as Depositor; Wilmington Trust Company, as Property Trustee and as Delaware Trustee; and the Administrative Trustees named therein, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.15 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))
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4.2(b)
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Notice of Resignation of Administrative Trustees and Appointment of Successors, dated March 9, 2007, delivered to Wilmington Trust Company by the Resigning Administrative Trustees named therein, the Successor Administrative Trustees named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(b) to Park's March 15, 2007 Form 8-K)
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4.2(c)
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Notice of Removal of Administrative Trustee and Appointment of Successor, dated February 21, 2013, delivered to Wilmington Trust Company by the continuing Administrative Trustee named therein and Park National Corporation (incorporated herein by reference to Exhibit 4.2(c) to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 (File No. 1-13006) ("Park's 2012 Form 10-K"))
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4.3
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Guarantee Agreement, dated as of December 5, 2005, between Vision Bancshares, Inc., as Guarantor, and Wilmington Trust Company, as Guarantee Trustee, in respect of Vision Bancshares Trust I (incorporated herein by reference to Exhibit 10.17 to Vision Bancshares, Inc.'s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005 (File No. 000-50719))
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4.4
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Note Purchase Agreement, dated December 23, 2009, between Park National Corporation and 38 accredited investors (incorporated herein by reference to Exhibit 4.1 to Park National Corporation's Current Report on Form 8-K dated and filed on December 28, 2009 (File No. 1-13006) (“Park's December 28, 2009 Form 8-K”))
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4.5
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Form of 10% Subordinated Note due December 23, 2019 (incorporated herein by reference to Exhibit 4.2 to Park's December 28, 2009 Form 8-K)
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4.6
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Note Purchase Agreement, dated April 20, 2012, between Park National Corporation and 56 accredited investors (incorporated herein by reference to Exhibit 4.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 20, 2012 (File No. 1-13006) (“Park's April 20, 2012 Form 8-K”))
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4.7
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Form of 7% Subordinated Note due April 20, 2022 (incorporated herein by reference to Exhibit 4.2 to Park's April 20, 2012 Form 8-K)
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4.8
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Agreement to furnish instruments and agreements defining rights of holders of long-term debt (filed herewith)
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10.1†
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Summary of Base Salaries for Executive Officers of Park National Corporation (filed herewith)
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10.2†
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Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and David L. Trautman (incorporated by reference to Exhibit 10.2(a) to Park National Corporation's Current Report on Form 8-K dated and filed June 19, 2015 (File No. 1-130006) ("Park's June 19, 2015 Form 8-K")
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10.3†
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Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and Brady T. Burt (incorporated herein by reference to Exhibit 10.3 to Park's June 19, 2015 Form 8-K)
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10.4†
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Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and C. Daniel DeLawder (incorporated by reference to Exhibit 10.2(b) to Park's June 19, 2015 Form 8-K)
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10.5†
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Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and David L. Trautman (filed herewith)
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10.6†
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Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and Brady T. Burt (incorporated by reference to Exhibit 10.4 to Park's June 19, 2015 Form 8-K)
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10.7†
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Amended and Restated Split-Dollar Agreement, made and entered into effective as of June 15, 2015, between The Park National Bank and C. Daniel Delawder (filed herewith)
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10.8†
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Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, between The Park National Bank and David L. Trautman (incorporated herein by reference to Exhibit 10.1(a) to Park's June 19, 2015 Form 8-K)
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10.9†
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Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, between The Park National Bank and Brady T. Burt (incorporated herein by reference to Exhibit 10.1(b) to Park's June 19, 2015 Form 8-K)
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10.10†
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Supplemental Executive Retirement Benefits Agreement, made as of June 15, 2015, between The Park National Bank and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.1(c) to Park's June 19, 2015 Form 8-K)
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10.11†
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Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, between The Park National Corporation and David L. Trautman (incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed February 19, 2008 (File No. 1-13006)("Park's February 19, 2008 Form 8-K"))
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10.12†
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Form of Amended and Restated Supplemental Executive Retirement Benefits Agreement, made as of February 18, 2008, between Park National Corporation and C. Daniel DeLawder (incorporated herein by reference to Exhibit 10.2 to Park's February 19, 2008 Form 8-K)
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10.13†
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Summary of Certain Compensation for Directors of Park National Corporation (filed herewith)
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10.14(a)†
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Form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007, covering Non-Employee Directors of Park National Corporation (incorporated herein by reference to Exhibit 10.2(a) to Park National Corporation's Current Report on Form 8-K dated and filed on January 2, 2008 (File No. 1-13006))
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10.14(b)†
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Schedule identifying Non-Employee Directors of Park National Corporation covered by form of Split-Dollar Agreement, made and entered into effective as of December 28, 2007 (filed herewith)
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10.15†
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Park National Corporation 2013 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on April 23, 2013 (File No. 1-13006))
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10.16†
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Form of Park National Corporation 2013 Long-Term Incentive Plan Performance-Based Restricted Stock Unit Award Agreement used and to be used to evidence awards of Performance-Based Restricted Stock Units to employees of Park National Corporation and its subsidiaries granted on and after January 24, 2014 (incorporated herein by reference to Exhibit 10.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on January 27, 2014 (File No. 1-13006))
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13
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2015 Annual Report (not deemed filed except for portions thereof which are specifically incorporated by reference in this Annual Report on Form 10-K) (specified portions filed herewith)
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Code of Business Conduct and Ethics, as amended July 28, 2014 and updated July 30, 2014 (incorporated herein by reference to Exhibit 14 to Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (File No. 1-13006))
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21
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Subsidiaries of Park National Corporation (filed herewith)
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23
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Consent of Crowe Horwath LLP (filed herewith)
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24
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Powers of Attorney of Directors and Executive Officers of Park National Corporation (filed herewith)
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31.1
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Rule 13a-14(a)/15d-14(a) Certifications - Principal Executive Officer (filed herewith)
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31.2
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Rule 13a-14(a)/15d-14(a) Certifications - Principal Financial Officer (filed herewith)
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32
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Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code - Principal Executive Officer and Principal Financial Officer (furnished herewith)
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101
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The following materials from Park National Corporation's 2015 Annual Report and incorporated therefrom into Park National Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2015 and 2014; (ii) the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013; (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013; (iv) the Consolidated Statements of Changes in Shareholders' Equity for the years ended December 31, 2015, 2014 and 2013; (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013; and (vi) the Notes to Consolidated Financial Statements (electronically submitted herewith)
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†
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Management contract or compensatory plan or arrangement.
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PARK NATIONAL CORPORATION
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Date: February 18, 2016
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By:
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/s/ David L. Trautman
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David L. Trautman,
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Chief Executive Officer and President
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Name
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Capacity
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/s/ David L. Trautman
David L. Trautman
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Chief Executive Officer, President and Director
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/s/ C. Daniel DeLawder
C. Daniel DeLawder
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Chairman of the Board and Director
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/s/ Brady T. Burt
Brady T. Burt
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Chief Financial Officer, Secretary and Treasurer
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/s/ Matthew R. Miller
Matthew R. Miller
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Chief Accounting Officer
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/s/ Donna M. Alvarado*
Donna M. Alvarado
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Director
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/s/ Maureen Buchwald*
Maureen Buchwald
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Director
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/s/ James R. DeRoberts*
James R. DeRoberts
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Director |
/s/ F. William Englefield IV*
F. William Englefield IV
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Director
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/s/ Alicia J. Hupp*
Alicia J. Hupp
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Director |
/s/ Stephen J. Kambeitz*
Stephen J. Kambeitz
|
Director
|
/s/ Timothy S. McLain*
Timothy S. McLain
|
Director
|
/s/ Robert E. O’Neill*
Robert E. O’Neill
|
Director
|
Name
|
Capacity
|
/s/ Julie A. Sloat*
Julie A. Sloat
|
Director |
/s/ Rick R. Taylor*
Rick R. Taylor
|
Director
|
/s/ Leon Zazworsky*
Leon Zazworsky
|
Director
|
*
|
The above-named directors of the Registrant sign this Annual Report on Form 10-K by David L. Trautman, their attorney-in-fact, pursuant to Powers of Attorney signed by the above-named directors, which Powers of Attorney are filed with this Annual Report on Form 10-K as exhibits, in the capacities indicated and on the 18
th
day of February, 2016.
|
By:
|
/s/ David L. Trautman
|
|
David L. Trautman
|
|
Chief Executive Officer and President
|
I.
|
DEFINITION OF “NET AMOUNT AT RISK”
|
II.
|
TITLE AND OWNERSHIP OF POLICIES
|
III.
|
BENEFICIARY DESIGNATION RIGHTS
|
IV.
|
PREMIUM PAYMENT METHOD
|
V.
|
THE AMOUNT OF EMPLOYEE INSURANCE AND THE DIVISION OF DEATH PROCEEDS OF THE POLICIES
|
A.
|
The amount of the Employee’s death benefit will be determined annually by the Bank, and will be approximately two (2) times the Employee’s highest annual total compensation during any calendar year of the Employee’s employment with the Bank (which, for purposes of this Paragraph V.A., is defined as the sum of the annual base salary and the annual cash bonus/incentive compensation paid to the Employee during a calendar year of employment with the Bank). The Employee’s annual total compensation for purposes of this calculation may be adjusted for extraordinary fluctuations caused by acceleration or deceleration in any year due to opportunities to maximize disposable income by the Employee caused by changes in state, federal, and local tax laws or otherwise.
|
B.
|
The Employee’s beneficiary(ies), designated in accordance with Paragraph III., shall, at the death of the Employee while employed, be entitled to the amount identified on
Exhibit A
to this Agreement, or the amount more recently determined by the Bank under Paragraph V.A., if different than the amount in
Exhibit A
to this Agreement. In no event, however, shall the amount exceed the limit set forth in the last sentence of Paragraph V.A.
|
1.
|
The Employee is fully vested in Park National Corporation’s Pension Plan.
|
2.
|
The Employee has reached age 62, unless permanently disabled as determined under Park National Corporation’s disability insurance plan.
|
3.
|
After retirement, the Employee has not been employed by any financial services firm offering like or similar products as the Bank, except with written approval of the Bank.
|
4.
|
The Employee’s termination of employment from the Bank has not been for cause as determined by the Board of Directors of the Bank; if termination is determined to be for cause, a letter so stating shall be sent by certified mail to the Employee within 90 days of termination of employment from the Bank.
|
C.
|
The Bank shall be entitled to the remainder of the death proceeds, less any loans on the Policies and unpaid interest or cash withdrawals previously incurred by the Bank.
|
D.
|
The Employee shall not make any assignment of the Employee’s rights, title or interest in or to the death proceeds of the Policies whatsoever without the prior written consent of the Bank (which may be withheld for any reason or no reason in its sole and absolute discretion) and acknowledgment by each Insurer under the Policies.
|
VII.
|
TERMINATION OF AGREEMENT
|
VIII.
|
AGREEMENT BINDING UPON PARTIES
|
IX.
|
ADMINISTRATION
|
B.
|
Adopt, amend or revoke rules and regulations for the administration of this Agreement, provided they are not inconsistent with the provisions of this Agreement;
|
C.
|
Provide appropriate persons with such returns, reports, descriptions and statements as may be required by law, within the times prescribed by law and to make them available to the Employee (or the Employee’s beneficiary(ies)) when required by law;
|
D.
|
Take such other action as may be reasonably required to administer this Agreement in accordance with its terms or as may be required by law;
|
E.
|
Withhold applicable taxes and file with the Internal Revenue Service appropriate information returns with respect to any payments and/or benefits provided hereunder; and
|
F.
|
Appoint and retain such persons as may be necessary to carry out its duties as administrator.
|
X.
|
FUNDING POLICY
|
XI.
|
AMENDMENT
|
XII.
|
BASIS OF PREMIUM PAYMENTS AND BENEFITS
|
XIII.
|
CLAIMS PROCEDURE
|
A.
|
For purposes of these claims procedures, the Committee shall serve as the “Claims Administrator.”
|
B.
|
If the Employee or any beneficiary of the Employee should have a claim for benefits hereunder, he or she shall file such claim by notifying the Claims Administrator in writing. The Claims Administrator shall make all determinations as to the right of any person or persons to a benefit hereunder. Benefit claims shall be made by the Employee, the Employee’s beneficiary(ies) or a duly authorized representative thereof (the “claimant”).
|
C.
|
If a claim is denied and a review is desired, the claimant shall notify the Claims Administrator in writing within 60 days after receipt of written notice of a denial of a claim. In requesting a review, the claimant may submit any written comments, documents, records, and other information relating to the claim, the claimant feels are appropriate. The claimant shall, upon request and free of charge, be provided reasonable access to, and copies of, all documents, records and other information “relevant” to the claimant’s claim for benefits. The Claims Administrator shall review the claim taking into account all comments, documents, records and other information submitted by the claimant, without regard to whether such information was submitted or considered in the initial benefit determination.
|
D.
|
After exhaustion of the claims procedure as provided herein, nothing shall prevent the claimant from pursuing any other legal or equitable remedy otherwise available, including the right to bring a civil action under Section 502(a) of ERISA, if applicable. Notwithstanding the foregoing, no legal action may be commenced or maintained against the Bank, the Committee, whether in its capacity as Claims Administrator or otherwise, or any member of the Committee more than one (1) year after the claimant has exhausted the administrative remedies set forth in this Paragraph XIII.
|
XIV.
|
SEVERABILITY AND INTERPRETATION
|
XV.
|
INSURER(S) NOT A PARTY TO AGREEMENT
|
|
PARK:
|
|
|
|
The Park National Bank
|
|
|
|
By /s/ Brady T. Burt
|
|
Its CFO
|
|
|
|
EXECUTIVE
|
|
|
|
/s/ David L. Trautman
|
|
DAVID L. TRAUTMAN
|
A.
|
Employee’s Portion:
$1,400,000 (subject to change as a result of annual determinations made in accordance with Paragraph V.A. of the Amended and Restated Split-Dollar Agreement)
|
C.
|
If death occurs while the Employee has continuing rights under the Amended and Restated Split-Dollar Agreement, the Employee’s designated beneficiaries are:
|
Secondary
-
|
XXXXXXXXXXXXXXX
|
I.
|
DEFINITION OF “NET AMOUNT AT RISK”
|
II.
|
TITLE AND OWNERSHIP OF POLICIES
|
III.
|
BENEFICIARY DESIGNATION RIGHTS
|
IV.
|
PREMIUM PAYMENT METHOD
|
V.
|
THE AMOUNT OF EMPLOYEE INSURANCE AND THE DIVISION OF DEATH PROCEEDS OF THE POLICIES
|
A.
|
The amount of the Employee’s death benefit will be determined annually by the Bank, and will be approximately two (2) times the Employee’s highest annual total compensation during any calendar year of the Employee’s employment with the Bank (which, for purposes of this Paragraph V.A., is defined as the sum of the annual base salary and the annual cash bonus/incentive compensation paid to the Employee during a calendar year of employment with the Bank). The Employee’s annual total compensation for purposes of this calculation may be adjusted for extraordinary fluctuations
|
B.
|
The Employee’s beneficiary(ies), designated in accordance with Paragraph III., shall, at the death of the Employee while employed, be entitled to the amount identified on
Exhibit A
to this Agreement, or the amount more recently determined by the Bank under Paragraph V.A., if different than the amount in
Exhibit A
to this Agreement. In no event, however, shall the amount exceed the limit set forth in the last sentence of Paragraph V.A.
|
1.
|
The Employee is fully vested in Park National Corporation’s Pension Plan.
|
2.
|
The Employee has reached age 62, unless permanently disabled as determined under Park National Corporation’s disability insurance plan.
|
3.
|
After retirement, the Employee has not been employed by any financial services firm offering like or similar products as the Bank, except with written approval of the Bank.
|
4.
|
The Employee’s termination of employment from the Bank has not been for cause as determined by the Board of Directors of the Bank; if termination is determined to be for cause, a letter so stating shall be sent by certified mail to the Employee within 90 days of termination of employment from the Bank.
|
C.
|
The Bank shall be entitled to the remainder of the death proceeds, less any loans on the Policies and unpaid interest or cash withdrawals previously incurred by the Bank.
|
D.
|
The Employee shall not make any assignment of the Employee’s rights, title or interest in or to the death proceeds of the Policies whatsoever without the prior written consent of the Bank (which may be withheld for any reason or no reason in its sole and absolute discretion) and acknowledgment by each Insurer under the Policies.
|
VI.
|
DISTRIBUTION OF THE CASH SURRENDER VALUE OF THE POLICIES
|
VII.
|
TERMINATION OF AGREEMENT
|
VIII.
|
AGREEMENT BINDING UPON PARTIES
|
IX.
|
ADMINISTRATION
|
B.
|
Adopt, amend or revoke rules and regulations for the administration of this Agreement, provided they are not inconsistent with the provisions of this Agreement;
|
C.
|
Provide appropriate persons with such returns, reports, descriptions and statements as may be required by law, within the times prescribed by law and to make them available to the Employee (or the Employee’s beneficiary(ies)) when required by law;
|
D.
|
Take such other action as may be reasonably required to administer this Agreement in accordance with its terms or as may be required by law;
|
E.
|
Withhold applicable taxes and file with the Internal Revenue Service appropriate information returns with respect to any payments and/or benefits provided hereunder; and
|
F.
|
Appoint and retain such persons as may be necessary to carry out its duties as administrator.
|
X.
|
FUNDING POLICY
|
XI.
|
AMENDMENT
|
XII.
|
BASIS OF PREMIUM PAYMENTS AND BENEFITS
|
XIII.
|
CLAIMS PROCEDURE
|
A.
|
For purposes of these claims procedures, the Committee shall serve as the “Claims Administrator.”
|
B.
|
If the Employee or any beneficiary of the Employee should have a claim for benefits hereunder, he or she shall file such claim by notifying the Claims Administrator in writing. The Claims Administrator shall make all determinations as to the right of any person or persons to a benefit hereunder. Benefit claims shall be made by the Employee, the Employee’s beneficiary(ies) or a duly authorized representative thereof (the “claimant”).
|
C.
|
If a claim is denied and a review is desired, the claimant shall notify the Claims Administrator in writing within 60 days after receipt of written notice of a denial of a claim. In requesting a review, the claimant may submit any written comments, documents, records, and other information relating to the claim, the claimant feels are appropriate. The claimant shall, upon request and free of charge, be provided reasonable access to, and copies of, all documents, records and other information “relevant” to the claimant’s claim for benefits. The Claims Administrator shall review the claim taking into account all comments, documents, records and other information submitted by the claimant, without regard to whether such information was submitted or considered in the initial benefit determination.
|
D.
|
After exhaustion of the claims procedure as provided herein, nothing shall prevent the claimant from pursuing any other legal or equitable remedy otherwise available, including the right to bring a civil action under Section 502(a) of ERISA, if applicable. Notwithstanding the foregoing, no legal action may be commenced or maintained against the Bank, the Committee, whether in its capacity as Claims Administrator or otherwise, or any member of the Committee more than one (1) year after the claimant has exhausted the administrative remedies set forth in this Paragraph XIII.
|
XIV.
|
SEVERABILITY AND INTERPRETATION
|
XV.
|
INSURER(S) NOT A PARTY TO AGREEMENT
|
|
PARK:
|
|
|
|
The Park National Bank
|
|
|
|
By /s/ Brady T. Burt
|
|
Its CFO
|
|
|
|
EXECUTIVE
|
|
|
|
/s/ C. Daniel DeLawder
|
|
C. DANIEL DELAWDER
|
A.
|
Employee’s Portion:
$1,911,980 (subject to change as a result of annual determinations made in accordance with Paragraph V.A. of the Amended and Restated Split-Dollar Agreement)
|
C.
|
If death occurs while the Employee has continuing rights under the Amended and Restated Split-Dollar Agreement, the Employee’s designated beneficiaries are:
|
Meeting Fees
:
|
|
|
Each meeting of Board of Directors attended (1)
|
$1,200
|
|
Each meeting of Executive Committee attended
|
$900
|
|
Each meeting of Audit Committee attended
|
$900
|
|
Each meeting of each other Board Committee attended
|
$600
|
|
Annual Retainers (2)
:
|
|
|
Annual Retainer for Committee Chairs:
|
|
|
|
Audit Committee
|
$7,500
|
|
Nominating and Corporate Governance Committee
|
$5,000
|
|
Compensation Committee
|
$5,000
|
|
Risk Committee
|
$5,000
|
Annual Retainer for Other Committee Members:
|
|
|
|
Executive Committee
|
$5,000
|
|
Audit Committee
|
$5,000
|
|
Risk Committee
|
$2,500
|
|
Compensation Committee
|
$2,500
|
|
Investment Committee
|
$2,500
|
|
Nominating and Corporate Governance Committee
|
$2,500
|
Lead Director Additional Annual Retainer
|
$15,000
|
Name of Director
|
Subsidiary of Park which is a Party to
Split-Dollar Agreement
|
Date of Split-
Dollar Agreement
|
|
|
|
Donna M. Alvarado
|
The Park National Bank
|
December 28, 2007
|
Maureen H. Buchwald
|
The Park National Bank (as successor by merger to The First-Knox National Bank of Mount Vernon)
|
December 28, 2007
|
F. William Englefield IV
|
The Park National Bank
|
December 28, 2007
|
Robert E. O’Neill
|
The Park National Bank
|
December 28, 2007
|
Rick R. Taylor
|
The Park National Bank (as successor by merger to The Richland Trust Company)
|
December 28, 2007
|
Leon Zazworsky
|
The Park National Bank
|
December 28, 2007
|
Table 1
|
|
|
|
|
|
||||||
Net income (loss) by segment
|
|
|
|
|
|
||||||
(In thousands)
|
2015
|
|
2014
|
|
2013
|
||||||
PNB
|
$
|
84,345
|
|
|
$
|
82,907
|
|
|
$
|
75,236
|
|
GFSC
|
1,423
|
|
|
1,175
|
|
|
2,888
|
|
|||
Parent Company
|
(4,549
|
)
|
|
(5,050
|
)
|
|
(1,397
|
)
|
|||
Ongoing operations
|
$
|
81,219
|
|
|
$
|
79,032
|
|
|
$
|
76,727
|
|
SEPH
|
(207
|
)
|
|
4,925
|
|
|
142
|
|
|||
Total Park
|
$
|
81,012
|
|
|
$
|
83,957
|
|
|
$
|
76,869
|
|
Table 2
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
Net interest income
|
$
|
220,879
|
|
$
|
218,641
|
|
$
|
210,781
|
|
Provision for loan losses
|
7,665
|
|
3,517
|
|
14,039
|
|
|||
Other income
|
75,188
|
|
69,384
|
|
70,841
|
|
|||
Other expense
|
167,476
|
|
163,641
|
|
158,651
|
|
|||
Income before income taxes
|
$
|
120,926
|
|
$
|
120,867
|
|
$
|
108,932
|
|
Federal income taxes
|
36,581
|
|
37,960
|
|
33,696
|
|
|||
Net income
|
$
|
84,345
|
|
$
|
82,907
|
|
$
|
75,236
|
|
Table 3
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||||||
(In thousands)
|
PNB as reported
|
Adjustments
(1)
|
PNB as adjusted
|
|
PNB as reported
|
Adjustments
(1)
|
PNB as adjusted
|
|
PNB as reported
|
Adjustments
(1)
|
PNB as adjusted
|
||||||||||||||||||
Net interest income
|
$
|
220,879
|
|
$
|
241
|
|
$
|
220,638
|
|
|
$
|
218,641
|
|
$
|
309
|
|
$
|
218,332
|
|
|
$
|
210,781
|
|
$
|
171
|
|
$
|
210,610
|
|
Provision for (recovery of) loan losses
|
7,665
|
|
(1,453
|
)
|
9,118
|
|
|
3,517
|
|
(6,198
|
)
|
9,715
|
|
|
14,039
|
|
(584
|
)
|
14,623
|
|
|||||||||
Other income
|
75,188
|
|
1,225
|
|
73,963
|
|
|
69,384
|
|
1,256
|
|
68,128
|
|
|
70,841
|
|
155
|
|
70,686
|
|
|||||||||
Other expense
|
167,476
|
|
700
|
|
166,776
|
|
|
163,641
|
|
2,032
|
|
161,609
|
|
|
158,651
|
|
1,600
|
|
157,051
|
|
|||||||||
Income before income taxes
|
$
|
120,926
|
|
$
|
2,219
|
|
$
|
118,707
|
|
|
$
|
120,867
|
|
$
|
5,731
|
|
$
|
115,136
|
|
|
$
|
108,932
|
|
$
|
(690
|
)
|
$
|
109,622
|
|
Federal income tax expense (benefit)
|
36,581
|
|
671
|
|
35,910
|
|
|
37,960
|
|
1,800
|
|
36,160
|
|
|
33,696
|
|
(213
|
)
|
33,909
|
|
|||||||||
Net income (loss)
|
$
|
84,345
|
|
$
|
1,548
|
|
$
|
82,797
|
|
|
$
|
82,907
|
|
$
|
3,931
|
|
$
|
78,976
|
|
|
$
|
75,236
|
|
(477
|
)
|
$
|
75,713
|
|
Table 5
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
Net interest income
|
$
|
6,588
|
|
$
|
7,457
|
|
$
|
8,741
|
|
Provision for loan losses
|
1,415
|
|
1,544
|
|
1,175
|
|
|||
Other income (loss)
|
2
|
|
(1
|
)
|
11
|
|
|||
Other expense
|
2,984
|
|
4,103
|
|
3,133
|
|
|||
Income before income taxes
|
$
|
2,191
|
|
$
|
1,809
|
|
$
|
4,444
|
|
Federal income taxes
|
768
|
|
634
|
|
1,556
|
|
|||
Net income
|
$
|
1,423
|
|
$
|
1,175
|
|
$
|
2,888
|
|
Table 6
|
|
|
|
|
|||||
(In thousands)
|
December 31, 2015
|
December 31, 2014
|
|
% change from 12/31/14
|
|||||
Loans
|
$
|
35,469
|
|
$
|
40,645
|
|
|
(12.73
|
)%
|
Allowance for loan losses
|
2,041
|
|
2,352
|
|
|
(13.22
|
)%
|
||
Net loans
|
33,428
|
|
38,293
|
|
|
(12.70
|
)%
|
||
Total assets
|
35,793
|
|
40,308
|
|
|
(11.20
|
)%
|
||
Average assets
(1)
|
37,675
|
|
43,038
|
|
|
(12.46
|
)%
|
||
Return on average assets
|
3.78
|
%
|
2.73
|
%
|
|
38.46
|
%
|
Table 7
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
Net interest income (expense)
|
$
|
239
|
|
$
|
(2,012
|
)
|
$
|
2,828
|
|
Provision for loan losses
|
—
|
|
—
|
|
—
|
|
|||
Other income
|
513
|
|
175
|
|
469
|
|
|||
Other expense
|
9,972
|
|
8,000
|
|
7,520
|
|
|||
Loss before income tax benefit
|
$
|
(9,220
|
)
|
$
|
(9,837
|
)
|
$
|
(4,223
|
)
|
Federal income tax benefit
|
(4,671
|
)
|
(4,787
|
)
|
(2,826
|
)
|
|||
Net loss
|
$
|
(4,549
|
)
|
$
|
(5,050
|
)
|
$
|
(1,397
|
)
|
Table 8
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
Net interest (expense) income
|
$
|
(74
|
)
|
$
|
958
|
|
$
|
(1,325
|
)
|
Recovery of loan losses
|
(4,090
|
)
|
(12,394
|
)
|
(11,799
|
)
|
|||
Other income
|
1,848
|
|
5,991
|
|
1,956
|
|
|||
Other expense
|
6,182
|
|
11,766
|
|
12,211
|
|
|||
Income (loss) before income taxes
|
$
|
(318
|
)
|
$
|
7,577
|
|
$
|
219
|
|
Federal income tax expense (benefit)
|
(111
|
)
|
2,652
|
|
77
|
|
|||
Net income (loss)
|
$
|
(207
|
)
|
$
|
4,925
|
|
$
|
142
|
|
Table 9
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
Net interest income
|
$
|
227,632
|
|
$
|
225,044
|
|
$
|
221,025
|
|
(Recovery of) provision for loan losses
|
4,990
|
|
(7,333
|
)
|
3,415
|
|
|||
Other income
|
77,551
|
|
75,549
|
|
73,277
|
|
|||
Other expense
|
186,614
|
|
187,510
|
|
181,515
|
|
|||
Income before income taxes
|
$
|
113,579
|
|
$
|
120,416
|
|
$
|
109,372
|
|
Federal income taxes
|
32,567
|
|
36,459
|
|
32,503
|
|
|||
Net income
|
$
|
81,012
|
|
$
|
83,957
|
|
$
|
76,869
|
|
•
|
the interest rate used to determine the present value of liabilities (discount rate);
|
•
|
certain employee-related factors, such as turnover, retirement age and mortality;
|
•
|
the expected return on assets in our funded plans; and
|
•
|
the rate of salary increases
|
Table 11 - Year-End Deposits
|
|
|
|
|
|
|
||||||
December 31,
|
|
|
|
|
|
|
||||||
(In thousands)
|
|
2015
|
|
2014
|
|
Change
|
||||||
Non-interest bearing checking
|
|
$
|
1,404,032
|
|
|
$
|
1,269,296
|
|
|
$
|
134,736
|
|
Interest bearing transaction accounts
|
|
1,107,200
|
|
|
1,122,079
|
|
|
(14,879
|
)
|
|||
Savings
|
|
1,544,708
|
|
|
1,325,445
|
|
|
219,263
|
|
|||
All other time deposits
|
|
1,290,412
|
|
|
1,409,911
|
|
|
(119,499
|
)
|
|||
Other
|
|
1,290
|
|
|
1,269
|
|
|
21
|
|
|||
Total
|
|
$
|
5,347,642
|
|
|
$
|
5,128,000
|
|
|
$
|
219,642
|
|
Table 12 - Maturities of Time Deposits
|
|
Over $100,000
|
|||||
December 31 (In thousands)
|
|
2015
|
2014
|
||||
3 months or less
|
|
$
|
197,871
|
|
$
|
210,386
|
|
Over 3 months through 6 months
|
|
96,132
|
|
93,168
|
|
||
Over 6 months through 12 months
|
|
117,249
|
|
132,344
|
|
||
Over 12 months
|
|
97,242
|
|
122,709
|
|
||
Total
|
|
$
|
508,494
|
|
$
|
558,607
|
|
Table 13 - Loans by Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31,
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
Commercial, financial and agricultural
|
|
$
|
955,727
|
|
|
$
|
856,535
|
|
|
$
|
825,432
|
|
|
$
|
823,927
|
|
|
$
|
743,797
|
|
Construction real estate
|
|
173,345
|
|
|
155,804
|
|
|
156,116
|
|
|
165,528
|
|
|
217,546
|
|
|||||
Residential real estate
|
|
1,855,443
|
|
|
1,851,375
|
|
|
1,799,547
|
|
|
1,713,645
|
|
|
1,628,618
|
|
|||||
Commercial real estate
|
|
1,113,603
|
|
|
1,069,637
|
|
|
1,112,273
|
|
|
1,092,164
|
|
|
1,108,574
|
|
|||||
Consumer
|
|
967,111
|
|
|
893,160
|
|
|
723,733
|
|
|
651,930
|
|
|
616,505
|
|
|||||
Leases
|
|
2,856
|
|
|
3,171
|
|
|
3,404
|
|
|
3,128
|
|
|
2,059
|
|
|||||
Total Loans
|
|
$
|
5,068,085
|
|
|
$
|
4,829,682
|
|
|
$
|
4,620,505
|
|
|
$
|
4,450,322
|
|
|
$
|
4,317,099
|
|
(1)
|
Nonaccrual loans of $44.0 million
are included within the one year or less classification above.
|
Table 15 - Investment Securities
|
|
|
|
|
|
|
||||||
December 31,
|
|
|
|
|
|
|
||||||
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
522,063
|
|
|
$
|
538,064
|
|
|
$
|
525,136
|
|
Obligations of states and political subdivisions
|
|
48,190
|
|
|
—
|
|
|
240
|
|
|||
U.S. Government asset-backed securities
|
|
1,012,605
|
|
|
901,715
|
|
|
830,292
|
|
|||
Federal Home Loan Bank stock
|
|
50,086
|
|
|
50,086
|
|
|
59,031
|
|
|||
Federal Reserve Bank stock
|
|
8,225
|
|
|
8,225
|
|
|
6,876
|
|
|||
Equities
|
|
2,710
|
|
|
2,698
|
|
|
2,659
|
|
|||
Total
|
|
$
|
1,643,879
|
|
|
$
|
1,500,788
|
|
|
$
|
1,424,234
|
|
Investments by category as a percentage of total investment securities
|
|
|
|
|
|
|
||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
31.8
|
%
|
|
35.9
|
%
|
|
36.9
|
%
|
|||
Obligations of states and political subdivisions
|
|
2.9
|
%
|
|
—
|
%
|
|
N.M.
|
|
|||
U.S. Government asset-backed securities
|
|
61.6
|
%
|
|
60.1
|
%
|
|
58.3
|
%
|
|||
Federal Home Loan Bank stock
|
|
3.0
|
%
|
|
3.3
|
%
|
|
4.1
|
%
|
|||
Federal Reserve Bank stock
|
|
0.5
|
%
|
|
0.5
|
%
|
|
0.5
|
%
|
|||
Equities
|
|
0.2
|
%
|
|
0.2
|
%
|
|
0.2
|
%
|
|||
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Table 16 - Continued
|
||||||||||||||||||||||||
Non-interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Demand deposits
|
1,311,628
|
|
|
|
1,196,625
|
|
|
|
1,117,379
|
|
|
|
||||||||||||
Other
|
77,123
|
|
|
|
64,415
|
|
|
|
74,039
|
|
|
|
||||||||||||
Total non-interest bearing liabilities
|
1,388,751
|
|
|
|
1,261,040
|
|
|
|
1,191,418
|
|
|
|
||||||||||||
Shareholders' equity
|
710,327
|
|
|
|
680,449
|
|
|
|
643,609
|
|
|
|
||||||||||||
TOTAL
|
$
|
7,306,460
|
|
|
|
$
|
6,893,302
|
|
|
|
$
|
6,701,049
|
|
|
|
|||||||||
Tax equivalent net interest income
|
|
$
|
228,497
|
|
|
|
$
|
225,889
|
|
|
|
$
|
222,327
|
|
|
|||||||||
Net interest spread
|
|
|
3.23
|
%
|
|
|
3.38
|
%
|
|
|
3.43
|
%
|
||||||||||||
Net yield on interest earning assets (net interest margin)
|
|
|
3.39
|
%
|
|
|
3.55
|
%
|
|
|
3.61
|
%
|
(1)
|
Loan income includes net loan related fee income and origination costs (expense) of ($1.0 million) in 2015, $1.3 million in 2014, and $1.9 million in 2013. Loan income also includes the effects of taxable equivalent adjustments using a 35% tax rate in 2015, 2014 and 2013. The taxable equivalent adjustment was $767,000 in 2015, $843,000 in 2014, and $1.3 million in 2013.
|
(2)
|
For the purpose of the computation for loans, nonaccrual loans are included in the daily average loans outstanding.
|
(3)
|
Interest income on tax-exempt investment securities includes the effects of taxable equivalent adjustments using a 35% tax rate in 2015, 2014 and 2013. The taxable equivalent adjustments were $98,000 in 2015, $2,000 in 2014, and $24,000 in 2013.
|
(4)
|
Includes subordinated notes.
|
Table 18 - Volume/Rate Variance Analysis
|
|
|
||||||||||||||||||||||
|
|
Change from 2014 to 2015
|
|
Change from 2013 to 2014
|
||||||||||||||||||||
(In thousands)
|
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Increase (decrease) in:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
9,016
|
|
|
$
|
(8,757
|
)
|
|
$
|
259
|
|
|
$
|
9,961
|
|
|
$
|
(8,290
|
)
|
|
$
|
1,671
|
|
Taxable investments
|
|
982
|
|
|
(1,937
|
)
|
|
(955
|
)
|
|
1,433
|
|
|
(1,138
|
)
|
|
295
|
|
||||||
Tax-exempt investments
|
|
276
|
|
|
(2
|
)
|
|
274
|
|
|
(63
|
)
|
|
(1
|
)
|
|
(64
|
)
|
||||||
Money market instruments
|
|
352
|
|
|
21
|
|
|
373
|
|
|
(163
|
)
|
|
—
|
|
|
(163
|
)
|
||||||
Total interest income
|
|
10,626
|
|
|
(10,675
|
)
|
|
(49
|
)
|
|
11,168
|
|
|
(9,429
|
)
|
|
1,739
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transaction accounts
|
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
27
|
|
|
$
|
(129
|
)
|
|
$
|
(102
|
)
|
Savings accounts
|
|
273
|
|
|
289
|
|
|
562
|
|
|
104
|
|
|
(98
|
)
|
|
6
|
|
||||||
Time deposits
|
|
283
|
|
|
519
|
|
|
802
|
|
|
(604
|
)
|
|
(1,308
|
)
|
|
(1,912
|
)
|
||||||
Short-term borrowings
|
|
(7
|
)
|
|
(41
|
)
|
|
(48
|
)
|
|
23
|
|
|
(50
|
)
|
|
(27
|
)
|
||||||
Long-term debt
|
|
(2,365
|
)
|
|
(1,599
|
)
|
|
(3,964
|
)
|
|
(83
|
)
|
|
295
|
|
|
212
|
|
||||||
Total interest expense
|
|
(1,825
|
)
|
|
(832
|
)
|
|
(2,657
|
)
|
|
(533
|
)
|
|
(1,290
|
)
|
|
(1,823
|
)
|
||||||
Net variance
|
|
$
|
12,451
|
|
|
$
|
(9,843
|
)
|
|
$
|
2,608
|
|
|
$
|
11,701
|
|
|
$
|
(8,139
|
)
|
|
$
|
3,562
|
|
Table 19 - Other Income
|
||||||||||||
Year Ended December 31,
|
|
|
||||||||||
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Income from fiduciary activities
|
|
$
|
20,195
|
|
|
$
|
19,150
|
|
|
$
|
17,133
|
|
Service charges on deposits
|
|
14,751
|
|
|
15,423
|
|
|
16,316
|
|
|||
Other service income
|
|
11,438
|
|
|
10,459
|
|
|
12,913
|
|
|||
Checkcard fee income
|
|
14,561
|
|
|
13,570
|
|
|
12,955
|
|
|||
Bank owned life insurance income
|
|
5,783
|
|
|
4,861
|
|
|
5,041
|
|
|||
ATM fees
|
|
2,428
|
|
|
2,467
|
|
|
2,632
|
|
|||
Gain on the sale of OREO, net
|
|
1,604
|
|
|
5,503
|
|
|
3,110
|
|
|||
OREO devaluations
|
|
(1,592
|
)
|
|
(2,406
|
)
|
|
(3,180
|
)
|
|||
Gain on the sale of commercial loans held for sale
|
|
756
|
|
|
1,867
|
|
|
—
|
|
|||
Gain (loss) on sale of investment securities
|
|
88
|
|
|
(1,158
|
)
|
|
—
|
|
|||
Miscellaneous
|
|
7,539
|
|
|
5,813
|
|
|
6,357
|
|
|||
Total other income
|
|
$
|
77,551
|
|
|
$
|
75,549
|
|
|
$
|
73,277
|
|
Table 20 - Other Income Breakout
|
||||||||||||||||||||||||
|
|
Change from 2014 to 2015
|
|
Change from 2013 to 2014
|
||||||||||||||||||||
(In thousands)
|
|
Ohio-based operations
|
|
SEPH
|
|
Total
|
|
Ohio-based operations
|
|
SEPH
|
|
Total
|
||||||||||||
Income from fiduciary activities
|
|
$
|
1,045
|
|
|
$
|
—
|
|
|
$
|
1,045
|
|
|
$
|
2,017
|
|
|
$
|
—
|
|
|
$
|
2,017
|
|
Service charges on deposits
|
|
(672
|
)
|
|
—
|
|
|
(672
|
)
|
|
(893
|
)
|
|
—
|
|
|
(893
|
)
|
||||||
Other service income
|
|
2,011
|
|
|
(1,032
|
)
|
|
979
|
|
|
(3,726
|
)
|
|
1,272
|
|
|
(2,454
|
)
|
||||||
Checkcard fee income
|
|
991
|
|
|
—
|
|
|
991
|
|
|
615
|
|
|
—
|
|
|
615
|
|
||||||
Bank owned life insurance income
|
|
922
|
|
|
—
|
|
|
922
|
|
|
(180
|
)
|
|
—
|
|
|
(180
|
)
|
||||||
ATM fees
|
|
(39
|
)
|
|
—
|
|
|
(39
|
)
|
|
(165
|
)
|
|
—
|
|
|
(165
|
)
|
||||||
Gain on the sale of OREO, net
|
|
(1,220
|
)
|
|
(2,679
|
)
|
|
(3,899
|
)
|
|
1,642
|
|
|
751
|
|
|
2,393
|
|
||||||
OREO devaluations
|
|
335
|
|
|
479
|
|
|
814
|
|
|
1,011
|
|
|
(237
|
)
|
|
774
|
|
||||||
Gain on sale of commercial loans held for sale
|
|
363
|
|
|
(1,474
|
)
|
|
(1,111
|
)
|
|
(329
|
)
|
|
2,196
|
|
|
1,867
|
|
||||||
Gain (loss) on sale of investment securities
|
|
1,246
|
|
|
—
|
|
|
1,246
|
|
|
(1,158
|
)
|
|
—
|
|
|
(1,158
|
)
|
||||||
Miscellaneous
|
|
1,163
|
|
|
563
|
|
|
1,726
|
|
|
(597
|
)
|
|
53
|
|
|
(544
|
)
|
||||||
Total other income
|
|
$
|
6,145
|
|
|
$
|
(4,143
|
)
|
|
$
|
2,002
|
|
|
$
|
(1,763
|
)
|
|
$
|
4,035
|
|
|
$
|
2,272
|
|
Table 21 - Sales of OREO
|
||||||||||
(In thousands)
|
OREO Properties Sold
|
Book Balance of OREO Sold
|
Net Proceeds of OREO Sold
|
Gain on Sale (1)
|
||||||
2015:
|
|
|
|
|
||||||
PNB
|
65
|
$
|
6,853
|
|
$
|
7,332
|
|
$
|
479
|
|
PNB Participations in Vision assets
|
3
|
521
|
|
984
|
|
463
|
|
|||
SEPH
|
20
|
8,158
|
|
8,742
|
|
584
|
|
|||
Total
|
88
|
$
|
15,532
|
|
$
|
17,058
|
|
$
|
1,526
|
|
2014:
|
|
|
|
|
||||||
PNB
|
90
|
$
|
7,271
|
|
$
|
8,191
|
|
$
|
920
|
|
PNB Participations in Vision assets
|
1
|
1,826
|
|
3,085
|
|
1,259
|
|
|||
SEPH
|
114
|
13,258
|
|
16,522
|
|
3,264
|
|
|||
Total
|
205
|
$
|
22,355
|
|
$
|
27,798
|
|
$
|
5,443
|
|
2013:
|
|
|
|
|
||||||
PNB
|
111
|
$
|
9,527
|
|
$
|
10,161
|
|
$
|
634
|
|
PNB Participations in Vision assets
|
—
|
—
|
|
—
|
|
—
|
|
|||
SEPH
|
104
|
10,369
|
|
12,882
|
|
2,513
|
|
|||
Total
|
215
|
$
|
19,896
|
|
$
|
23,043
|
|
$
|
3,147
|
|
Table 22 - Other Expense
|
|||||||||||
Year Ended December 31,
|
|
||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2013
|
||||||
Salaries
|
$
|
86,189
|
|
|
$
|
81,977
|
|
|
$
|
80,985
|
|
Employee benefits
|
21,296
|
|
|
19,991
|
|
|
19,313
|
|
|||
Data processing fees
|
5,037
|
|
|
4,712
|
|
|
4,174
|
|
|||
Professional fees and services
|
23,452
|
|
|
29,580
|
|
|
27,865
|
|
|||
Net occupancy expense of bank premises
|
9,686
|
|
|
10,006
|
|
|
9,804
|
|
|||
Furniture and equipment expense
|
11,806
|
|
|
11,571
|
|
|
11,249
|
|
|||
Insurance
|
5,629
|
|
|
5,723
|
|
|
5,205
|
|
|||
Marketing
|
3,983
|
|
|
4,371
|
|
|
3,790
|
|
|||
Postage and telephone
|
5,130
|
|
|
5,268
|
|
|
5,790
|
|
|||
State taxes
|
3,566
|
|
|
2,290
|
|
|
3,702
|
|
|||
OREO expense
|
1,446
|
|
|
2,063
|
|
|
2,731
|
|
|||
Miscellaneous
|
9,394
|
|
|
9,958
|
|
|
6,907
|
|
|||
Total other expense
|
$
|
186,614
|
|
|
$
|
187,510
|
|
|
$
|
181,515
|
|
Full-time equivalent employees
|
1,793
|
|
|
1,801
|
|
|
1,836
|
|
Table 23 - Other Expense Breakout
|
||||||||||||||||||||||||
|
|
Change from 2014 to 2015
|
|
Change from 2013 to 2014
|
||||||||||||||||||||
(In thousands)
|
|
Ohio-based operations
|
|
SEPH
|
|
Total
|
|
Ohio-based operations
|
|
SEPH
|
|
Total
|
||||||||||||
Salaries
|
|
$
|
4,556
|
|
|
$
|
(344
|
)
|
|
$
|
4,212
|
|
|
$
|
1,195
|
|
|
$
|
(203
|
)
|
|
$
|
992
|
|
Employee benefits
|
|
1,510
|
|
|
(205
|
)
|
|
1,305
|
|
|
430
|
|
|
248
|
|
|
678
|
|
||||||
Data processing fees
|
|
325
|
|
|
—
|
|
|
325
|
|
|
538
|
|
|
—
|
|
|
538
|
|
||||||
Professional fees and services
|
|
(780
|
)
|
|
(5,348
|
)
|
|
(6,128
|
)
|
|
598
|
|
|
1,117
|
|
|
1,715
|
|
||||||
Net occupancy expense of bank premises
|
|
(320
|
)
|
|
—
|
|
|
(320
|
)
|
|
206
|
|
|
(4
|
)
|
|
202
|
|
||||||
Furniture and equipment expense
|
|
236
|
|
|
(1
|
)
|
|
235
|
|
|
334
|
|
|
(12
|
)
|
|
322
|
|
||||||
Insurance
|
|
(88
|
)
|
|
(6
|
)
|
|
(94
|
)
|
|
508
|
|
|
10
|
|
|
518
|
|
||||||
Marketing
|
|
(388
|
)
|
|
—
|
|
|
(388
|
)
|
|
581
|
|
|
—
|
|
|
581
|
|
||||||
Postage and telephone
|
|
(135
|
)
|
|
(3
|
)
|
|
(138
|
)
|
|
(521
|
)
|
|
(1
|
)
|
|
(522
|
)
|
||||||
State taxes
|
|
1,351
|
|
|
(75
|
)
|
|
1,276
|
|
|
(1,451
|
)
|
|
39
|
|
|
(1,412
|
)
|
||||||
OREO expense
|
|
(428
|
)
|
|
(189
|
)
|
|
(617
|
)
|
|
(684
|
)
|
|
16
|
|
|
(668
|
)
|
||||||
Miscellaneous
|
|
(1,151
|
)
|
|
587
|
|
|
(564
|
)
|
|
4,706
|
|
|
(1,655
|
)
|
|
3,051
|
|
||||||
Total other expense
|
|
$
|
4,688
|
|
|
$
|
(5,584
|
)
|
|
$
|
(896
|
)
|
|
$
|
6,440
|
|
|
$
|
(445
|
)
|
|
$
|
5,995
|
|
Table 24 - ALLL Information - Park
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
ALLL, beginning balance
|
$
|
54,352
|
|
$
|
59,468
|
|
$
|
55,537
|
|
Charge-offs
|
14,290
|
|
24,780
|
|
19,153
|
|
|||
Recoveries
|
(11,442
|
)
|
(26,997
|
)
|
(19,669
|
)
|
|||
Net charge-offs (recoveries)
|
2,848
|
|
(2,217
|
)
|
(516
|
)
|
|||
Provision for (recovery of) loan losses:
|
4,990
|
|
(7,333
|
)
|
3,415
|
|
|||
ALLL, ending balance
|
$
|
56,494
|
|
$
|
54,352
|
|
$
|
59,468
|
|
Average loans
|
$
|
4,909,579
|
|
$
|
4,717,297
|
|
$
|
4,514,781
|
|
Net charge-offs (recoveries) as a percentage of average loans
|
0.06
|
%
|
(0.05
|
)%
|
(0.01
|
)%
|
Table 25 - ALLL Information - Park's Ohio-Based Subsidiaries
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
ALLL, beginning balance
|
$
|
54,352
|
|
$
|
59,468
|
|
$
|
55,537
|
|
Charge-offs:
|
|
|
|
||||||
Ohio-based subsidiaries loans
|
14,143
|
|
22,988
|
|
16,809
|
|
|||
PNB participations in Vision loans
|
20
|
|
667
|
|
131
|
|
|||
Total charge-offs
|
14,163
|
|
23,655
|
|
16,940
|
|
|||
Recoveries:
|
|
|
|
||||||
Ohio-based subsidiaries loans
|
(5,770
|
)
|
(6,613
|
)
|
(4,942
|
)
|
|||
PNB participations in Vision loans
|
(1,455
|
)
|
(6,865
|
)
|
(715
|
)
|
|||
Total recoveries
|
(7,225
|
)
|
(13,478
|
)
|
(5,657
|
)
|
|||
Net charge-offs
|
6,938
|
|
10,177
|
|
11,283
|
|
|||
Provision for (recovery of) loan losses:
|
|
|
|
||||||
Ohio-based subsidiaries loans
|
10,515
|
|
11,259
|
|
16,095
|
|
|||
PNB participations in Vision loans
|
(1,435
|
)
|
(6,198
|
)
|
(881
|
)
|
|||
Total provision for loan losses
|
9,080
|
|
5,061
|
|
15,214
|
|
|||
ALLL, ending balance
|
$
|
56,494
|
|
$
|
54,352
|
|
$
|
59,468
|
|
Average loans, Ohio-based subsidiaries
|
$
|
4,891,670
|
|
$
|
4,685,461
|
|
$
|
4,467,156
|
|
Net charge-offs as a percentage of average loans
|
0.14
|
%
|
0.22
|
%
|
0.25
|
%
|
|||
Net charge-offs as a percentage of average loans - excluding PNB participations in Vision loans
|
0.17
|
%
|
0.35
|
%
|
0.25
|
%
|
Table 26 - ALLL Information - SEPH
|
|
|
|
||||||
(In thousands)
|
2015
|
2014
|
2013
|
||||||
ALLL, beginning balance
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Charge-offs
|
127
|
|
1,125
|
|
2,213
|
|
|||
Recoveries
|
(4,217
|
)
|
(13,519
|
)
|
(14,012
|
)
|
|||
Net recoveries
|
(4,090
|
)
|
(12,394
|
)
|
(11,799
|
)
|
|||
Recovery of loan losses:
|
(4,090
|
)
|
(12,394
|
)
|
(11,799
|
)
|
|||
ALLL, ending balance
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Average loans
|
$
|
17,910
|
|
$
|
31,836
|
|
$
|
47,625
|
|
Net recoveries as a percentage of average loans
|
(22.84
|
)%
|
(38.93
|
)%
|
(24.77
|
)%
|
Table 27 - General Reserve Trends - Park
|
|
|
|
|
|
|
||||||
|
|
Year Ended December 31,
|
||||||||||
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Allowance for loan losses, end of period
|
|
$
|
56,494
|
|
|
$
|
54,352
|
|
|
$
|
59,468
|
|
Specific reserves
|
|
4,191
|
|
|
3,660
|
|
|
10,451
|
|
|||
General reserves
|
|
$
|
52,303
|
|
|
$
|
50,692
|
|
|
$
|
49,017
|
|
Total loans
|
|
$
|
5,068,085
|
|
|
$
|
4,829,682
|
|
|
$
|
4,620,505
|
|
Impaired commercial loans
|
|
80,599
|
|
|
73,676
|
|
|
112,304
|
|
|||
Non-impaired loans
|
|
$
|
4,987,486
|
|
|
$
|
4,756,006
|
|
|
$
|
4,508,201
|
|
Allowance for loan losses as a percentage of year-end loans
|
|
1.11
|
%
|
|
1.13
|
%
|
|
1.29
|
%
|
|||
General reserves as a percentage of non-impaired loans
|
|
1.05
|
%
|
|
1.07
|
%
|
|
1.09
|
%
|
Table 28 - Summary of Loan Loss Experience
|
|
|
|
|
|
|
|
|
||||||||||||
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average loans (net of unearned interest)
|
|
$
|
4,909,579
|
|
|
$
|
4,717,297
|
|
|
$
|
4,514,781
|
|
|
$
|
4,410,661
|
|
|
$
|
4,713,511
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
|
54,352
|
|
|
59,468
|
|
|
55,537
|
|
|
68,444
|
|
|
143,575
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, financial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
and agricultural
|
|
2,478
|
|
|
3,779
|
|
|
6,160
|
|
|
26,847
|
|
|
18,350
|
|
|||||
Real estate - construction
|
|
470
|
|
|
1,316
|
|
|
1,791
|
|
|
9,985
|
|
|
64,166
|
|
|||||
Real estate - residential
|
|
2,352
|
|
|
3,944
|
|
|
3,207
|
|
|
8,607
|
|
|
20,691
|
|
|||||
Real estate - commercial
|
|
348
|
|
|
8,003
|
|
|
1,832
|
|
|
10,454
|
|
|
23,063
|
|
|||||
Consumer
|
|
8,642
|
|
|
7,738
|
|
|
6,163
|
|
|
5,375
|
|
|
7,612
|
|
|||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total charge-offs
|
|
$
|
14,290
|
|
|
$
|
24,780
|
|
|
$
|
19,153
|
|
|
$
|
61,268
|
|
|
$
|
133,882
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, financial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
and agricultural
|
|
$
|
1,373
|
|
|
$
|
1,003
|
|
|
$
|
1,314
|
|
|
$
|
1,066
|
|
|
$
|
1,402
|
|
Real estate - construction
|
|
2,092
|
|
|
12,572
|
|
|
9,378
|
|
|
2,979
|
|
|
1,463
|
|
|||||
Real estate - residential
|
|
2,438
|
|
|
2,985
|
|
|
6,000
|
|
|
5,559
|
|
|
1,719
|
|
|||||
Real estate - commercial
|
|
2,241
|
|
|
7,759
|
|
|
726
|
|
|
783
|
|
|
1,825
|
|
|||||
Consumer
|
|
3,295
|
|
|
2,671
|
|
|
2,249
|
|
|
2,555
|
|
|
2,385
|
|
|||||
Leases
|
|
3
|
|
|
7
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|||||
Total recoveries
|
|
$
|
11,442
|
|
|
$
|
26,997
|
|
|
$
|
19,669
|
|
|
$
|
12,942
|
|
|
$
|
8,798
|
|
Net charge-offs (recoveries)
|
|
$
|
2,848
|
|
|
$
|
(2,217
|
)
|
|
$
|
(516
|
)
|
|
$
|
48,326
|
|
|
$
|
125,084
|
|
Provision (recovery) included in earnings
|
|
4,990
|
|
|
(7,333
|
)
|
|
3,415
|
|
|
35,419
|
|
|
63,272
|
|
|||||
Transfer of loans at fair value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(219
|
)
|
|||||
Allowance for loan losses transferred to held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,100
|
)
|
|||||
Ending balance
|
|
$
|
56,494
|
|
|
$
|
54,352
|
|
|
$
|
59,468
|
|
|
$
|
55,537
|
|
|
$
|
68,444
|
|
Ratio of net charge-offs (recoveries) to average loans
|
|
0.06
|
%
|
|
(0.05
|
)%
|
|
(0.01
|
)%
|
|
1.10
|
%
|
|
2.65
|
%
|
|||||
Ratio of allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
to end of year loans
|
|
1.11
|
%
|
|
1.13
|
%
|
|
1.29
|
%
|
|
1.25
|
%
|
|
1.59
|
%
|
Table 29 - Allocation of Allowance for Loan Losses
|
|
|
|||||||||||||||||||||||
December 31,
|
2015
|
2014
|
2013
|
2012
|
2011
|
||||||||||||||||||||
(In thousands)
|
Allowance
|
Percent of Loans Per Category
|
Allowance
|
Percent of Loans Per Category
|
Allowance
|
Percent of Loans Per Category
|
Allowance
|
Percent of Loans Per Category
|
Allowance
|
Percent of Loans Per Category
|
|||||||||||||||
Commercial, financial, and agricultural
|
$
|
13,731
|
|
18.86
|
%
|
$
|
10,719
|
|
17.73
|
%
|
$
|
14,218
|
|
17.87
|
%
|
$
|
15,635
|
|
18.51
|
%
|
$
|
16,950
|
|
17.23
|
%
|
Real estate -
construction
|
8,416
|
|
3.42
|
%
|
8,652
|
|
3.23
|
%
|
6,855
|
|
3.38
|
%
|
6,841
|
|
3.72
|
%
|
14,433
|
|
5.04
|
%
|
|||||
Real estate -
residential
|
13,569
|
|
36.61
|
%
|
14,772
|
|
38.33
|
%
|
14,251
|
|
38.95
|
%
|
14,759
|
|
38.51
|
%
|
15,692
|
|
37.72
|
%
|
|||||
Real estate -
commercial
|
9,248
|
|
21.97
|
%
|
8,808
|
|
22.15
|
%
|
15,899
|
|
24.07
|
%
|
11,736
|
|
24.54
|
%
|
15,539
|
|
25.68
|
%
|
|||||
Consumer
|
11,530
|
|
19.08
|
%
|
11,401
|
|
18.49
|
%
|
8,245
|
|
15.66
|
%
|
6,566
|
|
14.65
|
%
|
5,830
|
|
14.28
|
%
|
|||||
Leases
|
—
|
|
0.06
|
%
|
—
|
|
0.07
|
%
|
—
|
|
0.07
|
%
|
—
|
|
0.07
|
%
|
—
|
|
0.05
|
%
|
|||||
Total
|
$
|
56,494
|
|
100.00
|
%
|
$
|
54,352
|
|
100.00
|
%
|
$
|
59,468
|
|
100.00
|
%
|
$
|
55,537
|
|
100.00
|
%
|
$
|
68,444
|
|
100.00
|
%
|
Table 30 - Park - Nonperforming Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31,
|
||||||||||||||||||
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
Nonaccrual loans
|
|
$
|
95,887
|
|
|
$
|
100,393
|
|
|
$
|
135,216
|
|
|
$
|
155,536
|
|
|
$
|
195,106
|
|
Accruing TDRs
|
|
24,979
|
|
|
16,254
|
|
|
18,747
|
|
|
29,800
|
|
|
28,607
|
|
|||||
Loans past due 90 days or more and accruing
|
|
1,921
|
|
|
2,641
|
|
|
1,677
|
|
|
2,970
|
|
|
3,489
|
|
|||||
Total nonperforming loans
|
|
$
|
122,787
|
|
|
$
|
119,288
|
|
|
$
|
155,640
|
|
|
$
|
188,306
|
|
|
$
|
227,202
|
|
OREO – PNB
|
|
7,456
|
|
|
10,687
|
|
|
11,412
|
|
|
14,715
|
|
|
13,240
|
|
|||||
OREO – SEPH
|
|
11,195
|
|
|
11,918
|
|
|
23,224
|
|
|
21,003
|
|
|
29,032
|
|
|||||
Total nonperforming assets
|
|
$
|
141,438
|
|
|
$
|
141,893
|
|
|
$
|
190,276
|
|
|
$
|
224,024
|
|
|
$
|
269,474
|
|
Percentage of nonperforming loans to total loans
|
|
2.42
|
%
|
|
2.47
|
%
|
|
3.37
|
%
|
|
4.23
|
%
|
|
5.26
|
%
|
|||||
Percentage of nonperforming assets to total loans
|
|
2.79
|
%
|
|
2.94
|
%
|
|
4.12
|
%
|
|
5.03
|
%
|
|
6.24
|
%
|
|||||
Percentage of nonperforming assets to total assets
|
|
1.93
|
%
|
|
2.03
|
%
|
|
2.87
|
%
|
|
3.37
|
%
|
|
3.86
|
%
|
Table 33 - Park Ohio - Commercial Credit Trends
|
|
|
|
||||||
Commercial loans * (In thousands)
|
December 31, 2015
|
December 31, 2014
|
December 31, 2013
|
||||||
Pass rated
|
$
|
2,493,518
|
|
$
|
2,360,689
|
|
$
|
2,311,914
|
|
Special Mention
|
24,223
|
|
15,946
|
|
26,361
|
|
|||
Substandard
|
4,268
|
|
3,553
|
|
2,687
|
|
|||
Impaired
|
66,232
|
|
51,323
|
|
77,038
|
|
|||
Total
|
$
|
2,588,241
|
|
$
|
2,431,511
|
|
$
|
2,418,000
|
|
•
|
Loss Emergence Period Factor: Annually during the fourth quarter, management calculates the loss emergence period for each commercial loan segment. This loss emergence period is calculated based upon the average period of time it takes a credit to move from pass-rated to nonaccrual. If the loss emergence period for any commercial loan segment is greater than one year, management applies additional general reserves to all performing loans within that segment of the commercial loan portfolio.
|
•
|
Loss Migration Factor: Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases, and accordingly, management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard. Annually, management calculates a loss
|
•
|
Environmental Loss Factor: Management has identified certain macroeconomic factors that trend in accordance with losses in Park’s commercial loan portfolio. These macroeconomic factors are reviewed quarterly and the adjustments made to the environmental loss factor impacting each segment in the performing commercial loan portfolio correlate to changes in the macroeconomic environment.
|
Table 35 - Interest Rate Sensitivity
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
0-3
|
|
3-12
|
|
1-3
|
|
3-5
|
|
Over 5
|
|
|
||||||||||||
(In thousands)
|
|
Months
|
|
Months
|
|
Years
|
|
Years
|
|
Years
|
|
Total
|
||||||||||||
Interest earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment securities (1)
|
|
$
|
93,652
|
|
|
$
|
121,436
|
|
|
$
|
427,060
|
|
|
$
|
241,070
|
|
|
$
|
761,109
|
|
|
$
|
1,644,327
|
|
Money market instruments
|
|
30,047
|
|
|
|
|
|
|
|
|
|
|
30,047
|
|
||||||||||
Loans (1)
|
|
1,319,775
|
|
|
1,186,140
|
|
|
1,781,602
|
|
|
615,429
|
|
|
165,139
|
|
|
5,068,085
|
|
||||||
Total interest earning assets
|
|
1,443,474
|
|
|
1,307,576
|
|
|
2,208,662
|
|
|
856,499
|
|
|
926,248
|
|
|
6,742,459
|
|
||||||
Interest bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest bearing transaction accounts (2)
|
|
$
|
547,871
|
|
|
|
|
$
|
559,330
|
|
|
|
|
|
|
$
|
1,107,201
|
|
||||||
Savings accounts (2)
|
|
569,349
|
|
|
|
|
975,358
|
|
|
|
|
|
|
1,544,707
|
|
|||||||||
Time deposits
|
|
314,415
|
|
|
502,381
|
|
|
276,096
|
|
|
197,089
|
|
|
431
|
|
|
1,290,412
|
|
||||||
Other
|
|
|
|
1,290
|
|
|
|
|
|
|
|
|
1,290
|
|
||||||||||
Total deposits
|
|
1,431,635
|
|
|
503,671
|
|
|
1,810,784
|
|
|
197,089
|
|
|
431
|
|
|
3,943,610
|
|
||||||
Short-term borrowings
|
|
394,242
|
|
|
|
|
|
|
|
|
|
|
394,242
|
|
||||||||||
Long-term debt
|
|
—
|
|
|
—
|
|
|
488,105
|
|
|
100,000
|
|
|
150,000
|
|
|
738,105
|
|
||||||
Subordinated notes
|
|
15,000
|
|
|
|
|
30,000
|
|
|
|
|
|
|
45,000
|
|
|||||||||
Total interest bearing liabilities
|
|
1,840,877
|
|
|
503,671
|
|
|
2,328,889
|
|
|
297,089
|
|
|
150,431
|
|
|
5,120,957
|
|
||||||
Interest rate sensitivity gap
|
|
(397,403
|
)
|
|
803,905
|
|
|
(120,227
|
)
|
|
559,410
|
|
|
775,817
|
|
|
1,621,502
|
|
||||||
Cumulative rate sensitivity gap
|
|
(397,403
|
)
|
|
406,502
|
|
|
286,275
|
|
|
845,685
|
|
|
1,621,502
|
|
|
|
|||||||
Cumulative gap as a
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
percentage of total
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
interest earning assets
|
|
(5.89
|
)%
|
|
6.03
|
%
|
|
4.25
|
%
|
|
12.54
|
%
|
|
24.05
|
%
|
|
|
(1)
|
Investment securities and loans that are subject to prepayment are shown in the table by the earlier of their re-pricing date or their expected repayment date and not by their contractual maturity date. Nonaccrual loans of $95.9 million are included within the three to twelve month maturity category.
|
(2)
|
Management considers interest bearing transaction accounts and savings accounts to be core deposits and, therefore, not as rate sensitive as other deposit accounts and borrowed money. Accordingly, only 49% of interest bearing transaction accounts and 37% of savings accounts are considered to re-price within one year. If all of the interest bearing transaction accounts and savings accounts were considered to re-price within one year, the one-year cumulative gap would change from a positive 6.03% to a negative 16.73%.
|
Table 36 - Contractual Obligations
|
||||||||||||||||||||||
December 31, 2015
|
|
Payments Due In
|
||||||||||||||||||||
|
|
|
|
0-1
|
|
1-3
|
|
3-5
|
|
Over 5
|
|
|
||||||||||
(In thousands)
|
|
Note
|
|
Years
|
|
Years
|
|
Years
|
|
Years
|
|
Total
|
||||||||||
Deposits without stated maturity
|
|
12
|
|
$
|
4,057,230
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,057,230
|
|
Certificates of deposit
|
|
12
|
|
814,387
|
|
|
278,505
|
|
|
197,089
|
|
|
431
|
|
|
1,290,412
|
|
|||||
Short-term borrowings
|
|
14
|
|
394,242
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
394,242
|
|
|||||
Long-term debt
|
|
15
|
|
—
|
|
|
500,000
|
|
|
100,000
|
|
|
150,000
|
|
|
750,000
|
|
|||||
Subordinated notes
|
|
16
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,000
|
|
|
45,000
|
|
|||||
Operating leases
|
|
10
|
|
1,475
|
|
|
2,380
|
|
|
1,413
|
|
|
520
|
|
|
5,788
|
|
|||||
Defined benefit pension plan
(1)
|
|
18
|
|
5,010
|
|
|
11,121
|
|
|
14,097
|
|
|
45,831
|
|
|
76,059
|
|
|||||
Purchase obligations
|
|
|
|
2,421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,421
|
|
|||||
Total contractual obligations
|
|
|
|
$
|
5,274,765
|
|
|
$
|
792,006
|
|
|
$
|
312,599
|
|
|
$
|
241,782
|
|
|
$
|
6,621,152
|
|
Table 37 - Consolidated Five-Year Selected Financial Data
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, (Dollars in thousands, except per share data)
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
||||||||||
Results of Operations:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
$
|
265,074
|
|
|
$
|
265,143
|
|
|
$
|
262,947
|
|
|
$
|
285,735
|
|
|
$
|
331,880
|
|
Interest expense
|
|
37,442
|
|
|
40,099
|
|
|
41,922
|
|
|
50,420
|
|
|
58,646
|
|
|||||
Net interest income
|
|
227,632
|
|
|
225,044
|
|
|
221,025
|
|
|
235,315
|
|
|
273,234
|
|
|||||
Provision for (recovery of) loan losses
|
|
4,990
|
|
|
(7,333
|
)
|
|
3,415
|
|
|
35,419
|
|
|
63,272
|
|
|||||
Net interest income after provision for (recovery of)
loan losses
|
|
222,642
|
|
|
232,377
|
|
|
217,610
|
|
|
199,896
|
|
|
209,962
|
|
|||||
Gain on sale of the Vision business (1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,167
|
|
|
—
|
|
|||||
Non-interest income
|
|
77,551
|
|
|
75,549
|
|
|
73,277
|
|
|
70,236
|
|
|
94,910
|
|
|||||
Non-interest expense
|
|
186,614
|
|
|
187,510
|
|
|
181,515
|
|
|
181,127
|
|
|
181,426
|
|
|||||
Net income
|
|
81,012
|
|
|
83,957
|
|
|
76,869
|
|
|
78,480
|
|
|
82,222
|
|
|||||
Net income available to common shareholders
|
|
81,012
|
|
|
83,957
|
|
|
76,869
|
|
|
75,055
|
|
|
76,366
|
|
|||||
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share - basic
|
|
$
|
5.27
|
|
|
$
|
5.45
|
|
|
$
|
4.99
|
|
|
$
|
4.87
|
|
|
$
|
4.96
|
|
Net income per common share - diluted
|
|
5.26
|
|
|
5.45
|
|
|
4.99
|
|
|
4.87
|
|
|
4.96
|
|
|||||
Cash dividends declared
|
|
3.76
|
|
|
3.76
|
|
|
3.76
|
|
|
3.76
|
|
|
3.76
|
|
|||||
Average Balances:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
|
$
|
4,909,579
|
|
|
$
|
4,717,297
|
|
|
$
|
4,514,781
|
|
|
$
|
4,410,661
|
|
|
$
|
4,713,511
|
|
Investment securities
|
|
1,478,208
|
|
|
1,432,692
|
|
|
1,377,887
|
|
|
1,613,131
|
|
|
1,848,880
|
|
|||||
Money market instruments and other
|
|
342,997
|
|
|
204,874
|
|
|
272,851
|
|
|
166,319
|
|
|
78,593
|
|
|||||
Total earning assets
|
|
6,730,784
|
|
|
6,354,863
|
|
|
6,165,519
|
|
|
6,190,111
|
|
|
6,640,984
|
|
|||||
Non-interest bearing deposits
|
|
1,311,628
|
|
|
1,196,625
|
|
|
1,117,379
|
|
|
1,048,796
|
|
|
999,085
|
|
|||||
Interest bearing deposits
|
|
4,155,196
|
|
|
3,820,928
|
|
|
3,742,361
|
|
|
3,786,601
|
|
|
4,193,404
|
|
|||||
Total deposits
|
|
5,466,824
|
|
|
5,017,553
|
|
|
4,859,740
|
|
|
4,835,397
|
|
|
5,192,489
|
|
|||||
Short-term borrowings
|
|
$
|
258,717
|
|
|
$
|
263,270
|
|
|
$
|
253,123
|
|
|
$
|
258,661
|
|
|
$
|
297,537
|
|
Long-term debt
|
|
793,469
|
|
|
867,615
|
|
|
870,538
|
|
|
907,704
|
|
|
881,921
|
|
|||||
Shareholders' equity
|
|
710,327
|
|
|
680,449
|
|
|
643,609
|
|
|
688,166
|
|
|
742,013
|
|
|||||
Common shareholders' equity
|
|
710,327
|
|
|
680,449
|
|
|
643,609
|
|
|
657,289
|
|
|
644,309
|
|
|||||
Total assets
|
|
7,306,460
|
|
|
6,893,302
|
|
|
6,701,049
|
|
|
6,765,240
|
|
|
7,204,311
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets (x)
|
|
1.11
|
%
|
|
1.22
|
%
|
|
1.15
|
%
|
|
1.11
|
%
|
|
1.06
|
%
|
Return on average common equity (x)
|
|
11.40
|
%
|
|
12.34
|
%
|
|
11.94
|
%
|
|
11.42
|
%
|
|
11.85
|
%
|
Net interest margin (2)
|
|
3.39
|
%
|
|
3.55
|
%
|
|
3.61
|
%
|
|
3.83
|
%
|
|
4.14
|
%
|
Efficiency ratio (2)
|
|
60.98
|
%
|
|
62.21
|
%
|
|
61.40
|
%
|
|
55.00
|
%
|
|
49.02
|
%
|
Dividend payout ratio (3)
|
|
71.51
|
%
|
|
69.02
|
%
|
|
75.39
|
%
|
|
73.82
|
%
|
|
70.43
|
%
|
Average shareholders' equity to average total assets
|
|
9.72
|
%
|
|
9.87
|
%
|
|
9.60
|
%
|
|
10.17
|
%
|
|
10.30
|
%
|
Common equity tier 1 capital
|
|
12.54
|
%
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Leverage capital
|
|
9.22
|
%
|
|
9.25
|
%
|
|
9.48
|
%
|
|
9.17
|
%
|
|
9.81
|
%
|
Tier 1 capital
|
|
12.82
|
%
|
|
13.39
|
%
|
|
13.27
|
%
|
|
13.12
|
%
|
|
14.15
|
%
|
Risk-based capital
|
|
14.49
|
%
|
|
15.14
|
%
|
|
15.91
|
%
|
|
15.77
|
%
|
|
16.65
|
%
|
(1) The Vision business was sold on February 16, 2012 for a gain on sale of $22.2 million.
|
|||||||||||||||
(2) Computed on a fully taxable equivalent basis.
|
|||||||||||||||
(3) Cash dividends paid divided by net income.
|
|||||||||||||||
(x) Reported measure uses net income available to common shareholders.
|
Table 38 - Quarterly Financial Data
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended
|
||||||||||||||
(Dollars in thousands, except share data)
|
|
March 31
|
|
June 30
|
|
Sept. 30
|
|
Dec. 31
|
||||||||
2015:
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
65,018
|
|
|
$
|
65,804
|
|
|
$
|
67,087
|
|
|
$
|
67,165
|
|
Interest expense
|
|
9,483
|
|
|
9,289
|
|
|
9,372
|
|
|
9,298
|
|
||||
Net interest income
|
|
55,535
|
|
|
56,515
|
|
|
57,715
|
|
|
57,867
|
|
||||
Provision for (recovery of) loan losses
|
|
1,632
|
|
|
1,612
|
|
|
2,404
|
|
|
(658
|
)
|
||||
Income before income taxes
|
|
27,056
|
|
|
29,427
|
|
|
28,073
|
|
|
29,023
|
|
||||
Net income
|
|
19,044
|
|
|
21,039
|
|
|
20,040
|
|
|
20,889
|
|
||||
Per common share data:
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share - basic
|
|
1.24
|
|
|
1.37
|
|
|
1.30
|
|
|
1.36
|
|
||||
Net income per common share - diluted
|
|
1.23
|
|
|
1.37
|
|
|
1.30
|
|
|
1.36
|
|
||||
Weighted-average common shares outstanding - basic
|
|
15,379,170
|
|
|
15,370,882
|
|
|
15,361,087
|
|
|
15,345,986
|
|
||||
Weighted-average common shares equivalent - diluted
|
|
15,421,928
|
|
|
15,407,881
|
|
|
15,401,808
|
|
|
15,384,451
|
|
||||
2014:
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
64,342
|
|
|
$
|
66,363
|
|
|
$
|
66,622
|
|
|
$
|
67,816
|
|
Interest expense
|
|
9,862
|
|
|
9,802
|
|
|
9,913
|
|
|
10,522
|
|
||||
Net interest income
|
|
54,480
|
|
|
56,561
|
|
|
56,709
|
|
|
57,294
|
|
||||
Provision for (recovery of) loan losses
|
|
(2,225
|
)
|
|
(1,260
|
)
|
|
4,501
|
|
|
(8,349
|
)
|
||||
Income before income taxes
|
|
27,574
|
|
|
31,251
|
|
|
26,632
|
|
|
34,959
|
|
||||
Net income
|
|
19,577
|
|
|
21,810
|
|
|
18,269
|
|
|
24,301
|
|
||||
Per common share data:
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share - basic
|
|
1.27
|
|
|
1.42
|
|
|
1.19
|
|
|
1.58
|
|
||||
Net income per common share - diluted
|
|
1.27
|
|
|
1.42
|
|
|
1.19
|
|
|
1.58
|
|
||||
Weighted-average common shares outstanding - basic
|
|
15,401,105
|
|
|
15,392,435
|
|
|
15,392,421
|
|
|
15,393,924
|
|
||||
Weighted-average common shares equivalent - diluted
|
|
15,414,897
|
|
|
15,412,167
|
|
|
15,413,664
|
|
|
15,414,433
|
|
Table 39 - Market and Dividend Information
|
|
|
|
|
|
|
|
|
||||||||
|
|
High
|
|
Low
|
|
Last Price
|
|
Cash Dividend Declared Per Share
|
||||||||
2015:
|
|
|
|
|
|
|
|
|
||||||||
First Quarter
|
|
$
|
88.39
|
|
|
$
|
79.46
|
|
|
$
|
85.56
|
|
|
$
|
0.94
|
|
Second Quarter
|
|
90.00
|
|
|
81.01
|
|
|
87.37
|
|
|
0.94
|
|
||||
Third Quarter
|
|
90.92
|
|
|
80.15
|
|
|
90.22
|
|
|
0.94
|
|
||||
Fourth Quarter
|
|
99.68
|
|
|
84.27
|
|
|
90.48
|
|
|
0.94
|
|
||||
2014:
|
|
|
|
|
|
|
|
|
||||||||
First Quarter
|
|
$
|
86.78
|
|
|
$
|
75.06
|
|
|
$
|
76.89
|
|
|
$
|
0.94
|
|
Second Quarter
|
|
83.32
|
|
|
70.51
|
|
|
77.20
|
|
|
0.94
|
|
||||
Third Quarter
|
|
79.77
|
|
|
72.87
|
|
|
75.42
|
|
|
0.94
|
|
||||
Fourth Quarter
|
|
89.84
|
|
|
74.00
|
|
|
88.48
|
|
|
0.94
|
|
a)
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Corporation and its consolidated subsidiaries;
|
b)
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the Corporation and its consolidated subsidiaries are being made only in accordance with authorizations of management and directors of the Corporation; and
|
c)
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Corporation and its consolidated subsidiaries that could have a material effect on the financial statements.
|
/s/ C. Daniel DeLawder
|
|
/s/ David L. Trautman
|
|
/s/ Brady T. Burt
|
C. Daniel DeLawder
|
|
David L. Trautman
|
|
Brady T. Burt
|
Chairman of the Board
|
|
Chief Executive Officer and President
|
|
Chief Financial Officer, Secretary and Treasurer
|
|
|
|
|
|
February 18, 2016
|
|
|
|
|
(In thousands, except share and per share data)
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
||||
Assets
|
|
|
|
|
||||
Cash and due from banks
|
|
$
|
119,412
|
|
|
$
|
133,511
|
|
Money market instruments
|
|
30,047
|
|
|
104,188
|
|
||
Cash and cash equivalents
|
|
149,459
|
|
|
237,699
|
|
||
|
|
|
|
|
||||
Investment securities:
|
|
|
|
|
||||
Securities available-for-sale, at fair value (amortized cost of $1,436,714 and $1,299,980 at December 31, 2015 and 2014, respectively)
|
|
1,436,266
|
|
|
1,301,915
|
|
||
Securities held-to-maturity, at amortized cost (fair value of $151,428 and $143,490 at December 31, 2015 and 2014, respectively)
|
|
149,302
|
|
|
140,562
|
|
||
Other investment securities
|
|
58,311
|
|
|
58,311
|
|
||
Total investment securities
|
|
1,643,879
|
|
|
1,500,788
|
|
||
|
|
|
|
|
||||
Total loans
|
|
5,068,085
|
|
|
4,829,682
|
|
||
Allowance for loan losses
|
|
(56,494
|
)
|
|
(54,352
|
)
|
||
Net loans
|
|
5,011,591
|
|
|
4,775,330
|
|
||
|
|
|
|
|
||||
Other assets:
|
|
|
|
|
||||
Bank owned life insurance
|
|
181,684
|
|
|
171,928
|
|
||
Prepaid assets
|
|
80,635
|
|
|
75,190
|
|
||
Goodwill
|
|
72,334
|
|
|
72,334
|
|
||
Premises and equipment, net
|
|
59,493
|
|
|
55,479
|
|
||
Affordable housing tax credit investments
|
|
51,247
|
|
|
48,911
|
|
||
Accrued interest receivable
|
|
18,675
|
|
|
17,677
|
|
||
Other real estate owned
|
|
18,651
|
|
|
22,605
|
|
||
Mortgage loan servicing rights
|
|
9,008
|
|
|
8,613
|
|
||
Other
|
|
14,698
|
|
|
14,645
|
|
||
Total other assets
|
|
506,425
|
|
|
487,382
|
|
||
|
|
|
|
|
||||
Total assets
|
|
$
|
7,311,354
|
|
|
$
|
7,001,199
|
|
(In thousands, except share and per share data)
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
||||
Liabilities and shareholders’ equity
|
|
|
|
|
||||
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
||||
Non-interest bearing
|
|
$
|
1,404,032
|
|
|
$
|
1,269,296
|
|
Interest bearing
|
|
3,943,610
|
|
|
3,858,704
|
|
||
Total deposits
|
|
5,347,642
|
|
|
5,128,000
|
|
||
|
|
|
|
|
||||
Short-term borrowings
|
|
394,242
|
|
|
276,980
|
|
||
Long-term debt
|
|
738,105
|
|
|
786,602
|
|
||
Subordinated notes
|
|
45,000
|
|
|
45,000
|
|
||
Total borrowings
|
|
1,177,347
|
|
|
1,108,582
|
|
||
|
|
|
|
|
||||
Other liabilities:
|
|
|
|
|
||||
Accrued interest payable
|
|
2,338
|
|
|
2,551
|
|
||
Unfunded commitments in affordable housing tax credit investments
|
|
20,311
|
|
|
16,629
|
|
||
Other
|
|
50,361
|
|
|
48,896
|
|
||
Total other liabilities
|
|
73,010
|
|
|
68,076
|
|
||
|
|
|
|
|
||||
Total liabilities
|
|
6,597,999
|
|
|
6,304,658
|
|
||
|
|
|
|
|
||||
Commitments and Contingencies
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
Shareholders’ equity:
|
|
|
|
|
||||
|
|
|
|
|
||||
Preferred shares (200,000 shares authorized; no shares outstanding at December 31, 2015 and 2014)
|
|
—
|
|
|
—
|
|
||
Common shares, no par value (20,000,000 shares authorized; 16,150,854 and 16,150,888 shares issued at December 31, 2015 and 2014, respectively)
|
|
303,966
|
|
|
303,104
|
|
||
Accumulated other comprehensive loss, net
|
|
(15,643
|
)
|
|
(13,608
|
)
|
||
Retained earnings
|
|
507,505
|
|
|
484,484
|
|
||
Less: Treasury shares (820,039 and 758,489 shares at December 31, 2015 and 2014, respectively)
|
|
(82,473
|
)
|
|
(77,439
|
)
|
||
Total shareholders’ equity
|
|
713,355
|
|
|
696,541
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
7,311,354
|
|
|
$
|
7,001,199
|
|
(In thousands, except per share data)
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
||||||
Interest and dividend income:
|
|
|
|
|
|
|
||||||
Interest and fees on loans
|
|
$
|
227,979
|
|
|
$
|
227,644
|
|
|
$
|
225,538
|
|
Interest and dividends on:
|
|
|
|
|
|
|
||||||
Obligations of U.S. Government, its agencies and other securities
|
|
36,025
|
|
|
36,981
|
|
|
36,686
|
|
|||
Obligations of states and political subdivisions
|
|
182
|
|
|
3
|
|
|
45
|
|
|||
Other interest income
|
|
888
|
|
|
515
|
|
|
678
|
|
|||
Total interest and dividend income
|
|
265,074
|
|
|
265,143
|
|
|
262,947
|
|
|||
|
|
|
|
|
|
|
||||||
Interest expense:
|
|
|
|
|
|
|
||||||
Interest on deposits:
|
|
|
|
|
|
|
||||||
Demand and savings deposits
|
|
2,229
|
|
|
1,677
|
|
|
1,773
|
|
|||
Time deposits
|
|
10,125
|
|
|
9,323
|
|
|
11,235
|
|
|||
Interest on short-term borrowings
|
|
469
|
|
|
517
|
|
|
544
|
|
|||
Interest on long-term debt
|
|
24,619
|
|
|
28,582
|
|
|
28,370
|
|
|||
Total interest expense
|
|
37,442
|
|
|
40,099
|
|
|
41,922
|
|
|||
Net interest income
|
|
227,632
|
|
|
225,044
|
|
|
221,025
|
|
|||
|
|
|
|
|
|
|
||||||
Provision for (recovery of) loan losses
|
|
4,990
|
|
|
(7,333
|
)
|
|
3,415
|
|
|||
Net interest income after provision for (recovery of) loan losses
|
|
222,642
|
|
|
232,377
|
|
|
217,610
|
|
|||
|
|
|
|
|
|
|
||||||
Other income:
|
|
|
|
|
|
|
||||||
Income from fiduciary activities
|
|
20,195
|
|
|
19,150
|
|
|
17,133
|
|
|||
Service charges on deposit accounts
|
|
14,751
|
|
|
15,423
|
|
|
16,316
|
|
|||
Other service income
|
|
11,438
|
|
|
10,459
|
|
|
12,913
|
|
|||
Checkcard fee income
|
|
14,561
|
|
|
13,570
|
|
|
12,955
|
|
|||
Bank owned life insurance income
|
|
5,783
|
|
|
4,861
|
|
|
5,041
|
|
|||
ATM fees
|
|
2,428
|
|
|
2,467
|
|
|
2,632
|
|
|||
Gain on sale of OREO, net
|
|
1,604
|
|
|
5,503
|
|
|
3,110
|
|
|||
OREO valuation adjustments
|
|
(1,592
|
)
|
|
(2,406
|
)
|
|
(3,180
|
)
|
|||
Gain on commercial loans held for sale
|
|
756
|
|
|
1,867
|
|
|
—
|
|
|||
Gain (loss) on sale of investment securities
|
|
88
|
|
|
(1,158
|
)
|
|
—
|
|
|||
Miscellaneous
|
|
7,539
|
|
|
5,813
|
|
|
6,357
|
|
|||
Total other income
|
|
$
|
77,551
|
|
|
$
|
75,549
|
|
|
$
|
73,277
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
(In thousands, except per share data)
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
||||||
Other expense:
|
|
|
|
|
|
|
||||||
Salaries
|
|
$
|
86,189
|
|
|
$
|
81,977
|
|
|
$
|
80,985
|
|
Employee benefits
|
|
21,296
|
|
|
19,991
|
|
|
19,313
|
|
|||
Data processing fees
|
|
5,037
|
|
|
4,712
|
|
|
4,174
|
|
|||
Professional fees and services
|
|
23,452
|
|
|
29,580
|
|
|
27,865
|
|
|||
Occupancy expense
|
|
9,686
|
|
|
10,006
|
|
|
9,804
|
|
|||
Furniture and equipment expense
|
|
11,806
|
|
|
11,571
|
|
|
11,249
|
|
|||
Insurance
|
|
5,629
|
|
|
5,723
|
|
|
5,205
|
|
|||
Marketing
|
|
3,983
|
|
|
4,371
|
|
|
3,790
|
|
|||
Communication
|
|
5,130
|
|
|
5,268
|
|
|
5,790
|
|
|||
State tax expense
|
|
3,566
|
|
|
2,290
|
|
|
3,702
|
|
|||
OREO expense
|
|
1,446
|
|
|
2,063
|
|
|
2,731
|
|
|||
Miscellaneous
|
|
9,394
|
|
|
9,958
|
|
|
6,907
|
|
|||
Total other expense
|
|
186,614
|
|
|
187,510
|
|
|
181,515
|
|
|||
|
|
|
|
|
|
|
||||||
Income before income taxes
|
|
113,579
|
|
|
120,416
|
|
|
109,372
|
|
|||
|
|
|
|
|
|
|
||||||
Federal income taxes
|
|
32,567
|
|
|
36,459
|
|
|
32,503
|
|
|||
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
81,012
|
|
|
$
|
83,957
|
|
|
$
|
76,869
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Earnings per common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
5.27
|
|
|
$
|
5.45
|
|
|
$
|
4.99
|
|
Diluted
|
|
$
|
5.26
|
|
|
$
|
5.45
|
|
|
$
|
4.99
|
|
|
|
||||||||||
(In thousands)
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
||||||
Net income
|
$
|
81,012
|
|
|
$
|
83,957
|
|
|
$
|
76,869
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Defined benefit pension plan:
|
|
|
|
|
|
||||||
Amortization of net loss and prior service costs, net of income taxes of $228, $7, and $953 for the years ended December 31, 2015, 2014, and 2013, respectively
|
424
|
|
|
12
|
|
|
1,770
|
|
|||
Unrealized net actuarial (loss) gain, net of income taxes of $(490), ($4,997), and $10,643 for the years ended December 31, 2015, 2014, and 2013, respectively
|
(910
|
)
|
|
(9,279
|
)
|
|
19,766
|
|
|||
Change in funded status of pension plan, net of income taxes
|
(486
|
)
|
|
(9,267
|
)
|
|
21,536
|
|
|||
|
|
|
|
|
|
||||||
Securities available-for-sale:
|
|
|
|
|
|
||||||
Net loss realized on sale of securities, net of income taxes of $405 for the year ended December 31, 2014
|
—
|
|
|
753
|
|
|
—
|
|
|||
Other than temporary impairment realized on securities, net of income taxes of $6 for the year ended December 31, 2013
|
—
|
|
|
—
|
|
|
11
|
|
|||
Change in unrealized securities holding (loss) gain, net of income taxes of ($834), $16,329, and ($21,242) for the years ended December 31, 2015, 2014, and 2013, respectively
|
(1,549
|
)
|
|
30,325
|
|
|
(39,448
|
)
|
|||
Unrealized net holding (loss) gain on securities available-for-sale, net of income taxes
|
(1,549
|
)
|
|
31,078
|
|
|
(39,437
|
)
|
|||
|
|
|
|
|
|
||||||
Other comprehensive (loss) income
|
$
|
(2,035
|
)
|
|
$
|
21,811
|
|
|
$
|
(17,901
|
)
|
|
|
|
|
|
|
||||||
Comprehensive income
|
$
|
78,977
|
|
|
$
|
105,768
|
|
|
$
|
58,968
|
|
|
|
Preferred Shares
|
|
Common Shares
|
|
Retained Earnings
|
|
Treasury Shares
|
|
Accumulated Other Comprehensive (Loss) Income
|
|
Total
|
||||||||||||||||||
(In thousands, except share and per share data)
|
|
Shares Outstanding
|
|
Amount
|
|
Shares Outstanding
|
|
Amount
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, January 1, 2013, as previously presented
|
|
—
|
|
|
$
|
—
|
|
|
15,411,998
|
|
|
$
|
302,654
|
|
|
$
|
441,605
|
|
|
$
|
(76,375
|
)
|
|
$
|
(17,518
|
)
|
|
$
|
650,366
|
|
Cumulative effect of change in accounting principle for affordable housing tax credits, net of tax
|
|
|
|
|
|
|
|
|
|
(1,566
|
)
|
|
|
|
|
|
(1,566
|
)
|
||||||||||||
Balance, January 1, 2013 - as adjusted
|
|
—
|
|
|
$
|
—
|
|
|
15,411,998
|
|
|
$
|
302,654
|
|
|
$
|
440,039
|
|
|
$
|
(76,375
|
)
|
|
$
|
(17,518
|
)
|
|
$
|
648,800
|
|
Net income
|
|
|
|
|
|
|
|
|
|
76,869
|
|
|
|
|
|
|
76,869
|
|
||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(17,901
|
)
|
|
(17,901
|
)
|
||||||||||||
Cash dividends, $3.76 per share
|
|
|
|
|
|
|
|
|
|
(57,949
|
)
|
|
|
|
|
|
(57,949
|
)
|
||||||||||||
Cash payment for fractional shares in dividend reinvestment plan
|
|
|
|
|
|
(46
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
(3
|
)
|
|||||||||||
Treasury shares repurchased
|
|
|
|
|
|
(10,550
|
)
|
|
|
|
|
|
(843
|
)
|
|
|
|
(843
|
)
|
|||||||||||
Treasury shares reissued for director grants
|
|
|
|
|
|
10,550
|
|
|
|
|
(240
|
)
|
|
1,090
|
|
|
|
|
850
|
|
||||||||||
Balance, December 31, 2013
|
|
—
|
|
|
$
|
—
|
|
|
15,411,952
|
|
|
$
|
302,651
|
|
|
$
|
458,719
|
|
|
$
|
(76,128
|
)
|
|
$
|
(35,419
|
)
|
|
$
|
649,823
|
|
Net income
|
|
|
|
|
|
|
|
|
|
83,957
|
|
|
|
|
|
|
83,957
|
|
||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,811
|
|
|
21,811
|
|
||||||||||||
Cash dividends, $3.76 per share
|
|
|
|
|
|
|
|
|
|
(57,949
|
)
|
|
|
|
|
|
(57,949
|
)
|
||||||||||||
Cash payment for fractional shares in dividend reinvestment plan
|
|
|
|
|
|
(53
|
)
|
|
(5
|
)
|
|
|
|
|
|
|
|
(5
|
)
|
|||||||||||
Share-based compensation expense
|
|
|
|
|
|
|
|
458
|
|
|
|
|
|
|
|
|
458
|
|
||||||||||||
Treasury shares repurchased
|
|
|
|
|
|
(29,700
|
)
|
|
|
|
|
|
(2,355
|
)
|
|
|
|
(2,355
|
)
|
|||||||||||
Treasury shares reissued for director grants
|
|
|
|
|
|
10,200
|
|
|
|
|
(243
|
)
|
|
1,044
|
|
|
|
|
801
|
|
||||||||||
Balance, December 31, 2014
|
|
—
|
|
|
$
|
—
|
|
|
15,392,399
|
|
|
$
|
303,104
|
|
|
$
|
484,484
|
|
|
$
|
(77,439
|
)
|
|
$
|
(13,608
|
)
|
|
$
|
696,541
|
|
Net income
|
|
|
|
|
|
|
|
|
|
81,012
|
|
|
|
|
|
|
81,012
|
|
||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,035
|
)
|
|
(2,035
|
)
|
||||||||||||
Cash dividends, $3.76 per share
|
|
|
|
|
|
|
|
|
|
(57,930
|
)
|
|
|
|
|
|
(57,930
|
)
|
||||||||||||
Cash payment for fractional shares in dividend reinvestment plan
|
|
|
|
|
|
(34
|
)
|
|
(3
|
)
|
|
|
|
|
|
|
|
(3
|
)
|
|||||||||||
Share-based compensation expense
|
|
|
|
|
|
|
|
865
|
|
|
|
|
|
|
|
|
865
|
|
||||||||||||
Treasury shares repurchased
|
|
|
|
|
|
(71,700
|
)
|
|
|
|
|
|
(6,058
|
)
|
|
|
|
(6,058
|
)
|
|||||||||||
Treasury shares reissued for director grants
|
|
|
|
|
|
10,150
|
|
|
|
|
(61
|
)
|
|
1,024
|
|
|
|
|
963
|
|
||||||||||
Balance, December 31, 2015
|
|
—
|
|
|
$
|
—
|
|
|
15,330,815
|
|
|
$
|
303,966
|
|
|
$
|
507,505
|
|
|
$
|
(82,473
|
)
|
|
$
|
(15,643
|
)
|
|
$
|
713,355
|
|
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
|
|
|
|
|
|
|
||||||
Operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
81,012
|
|
|
$
|
83,957
|
|
|
$
|
76,869
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Provision for (recovery of) loan losses
|
|
4,990
|
|
|
(7,333
|
)
|
|
3,415
|
|
|||
Amortization of loan fees and costs, net
|
|
6,440
|
|
|
4,160
|
|
|
3,611
|
|
|||
Provision for depreciation
|
|
7,347
|
|
|
7,243
|
|
|
7,315
|
|
|||
Other than temporary impairment on investment securities
|
|
—
|
|
|
—
|
|
|
17
|
|
|||
Amortization of intangible assets
|
|
—
|
|
|
—
|
|
|
337
|
|
|||
Accretion of investment securities, net
|
|
(226
|
)
|
|
(213
|
)
|
|
(33
|
)
|
|||
Amortization of prepayment penalty on long-term debt
|
|
6,047
|
|
|
5,031
|
|
|
4,835
|
|
|||
Deferred income tax
|
|
(250
|
)
|
|
2,528
|
|
|
(1,932
|
)
|
|||
Realized net investment security (gains) losses
|
|
(88
|
)
|
|
1,158
|
|
|
—
|
|
|||
Share-based compensation expense
|
|
1,828
|
|
|
1,259
|
|
|
850
|
|
|||
Loan originations to be sold in secondary market
|
|
(220,800
|
)
|
|
(136,125
|
)
|
|
(317,534
|
)
|
|||
Proceeds from sale of loans in secondary market
|
|
222,785
|
|
|
135,209
|
|
|
345,704
|
|
|||
Gain on sale of loans in secondary market
|
|
(4,027
|
)
|
|
(2,682
|
)
|
|
(4,093
|
)
|
|||
Gain on sale of commercial loans held for sale
|
|
(756
|
)
|
|
(1,867
|
)
|
|
—
|
|
|||
OREO valuation adjustments
|
|
1,592
|
|
|
2,406
|
|
|
3,180
|
|
|||
Gain on sale of OREO, net
|
|
(1,604
|
)
|
|
(5,503
|
)
|
|
(3,110
|
)
|
|||
Bank owned life insurance income
|
|
(5,783
|
)
|
|
(4,861
|
)
|
|
(5,041
|
)
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||||||
(Increase) Decrease in other assets
|
|
(10,978
|
)
|
|
(18,313
|
)
|
|
12,222
|
|
|||
Decrease (Increase) in other liabilities
|
|
1,173
|
|
|
5,689
|
|
|
(5,324
|
)
|
|||
Net cash provided by operating activities
|
|
88,702
|
|
|
71,743
|
|
|
121,288
|
|
|||
|
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
|
||||||
Proceeds from redemption of Federal Home Loan Bank stock
|
|
—
|
|
|
8,946
|
|
|
—
|
|
|||
Proceeds from sales of securities
|
|
3,144
|
|
|
173,123
|
|
|
75,000
|
|
|||
Proceeds from calls and maturities of securities:
|
|
|
|
|
|
|
||||||
Held-to-maturity
|
|
36,393
|
|
|
41,436
|
|
|
219,329
|
|
|||
Available-for-sale
|
|
321,146
|
|
|
99,092
|
|
|
385,259
|
|
|||
Purchase of securities:
|
|
|
|
|
|
|
||||||
Held-to-maturity
|
|
(48,226
|
)
|
|
—
|
|
|
—
|
|
|||
Available-for-sale
|
|
(457,617
|
)
|
|
(350,934
|
)
|
|
(582,728
|
)
|
|||
Net increase in other investments
|
|
—
|
|
|
(1,350
|
)
|
|
—
|
|
|||
Net loan originations, portfolio loans
|
|
(247,882
|
)
|
|
(234,017
|
)
|
|
(212,311
|
)
|
|||
Proceeds from sale of commercial loans held for sale
|
|
900
|
|
|
20,966
|
|
|
—
|
|
|||
Proceeds from the sale of OREO
|
|
17,058
|
|
|
27,798
|
|
|
23,043
|
|
|||
Life insurance death benefits
|
|
6,340
|
|
|
2,221
|
|
|
1,430
|
|
|||
Investment in qualified affordable housing projects
|
|
(5,318
|
)
|
|
(9,417
|
)
|
|
(8,222
|
)
|
|||
|
|
|
|
|
|
|
Buildings
|
30 Years
|
Equipment, furniture and fixtures
|
3 to 12 Years
|
Leasehold improvements
|
1 to 10 Years
|
(In thousands)
|
|
Goodwill
|
|
Core Deposit Intangibles
|
|
Total
|
||||||
January 1, 2013
|
|
$
|
72,334
|
|
|
$
|
337
|
|
|
$
|
72,671
|
|
Amortization
|
|
—
|
|
|
(337
|
)
|
|
(337
|
)
|
|||
December 31, 2013
|
|
$
|
72,334
|
|
|
$
|
—
|
|
|
$
|
72,334
|
|
Amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
December 31, 2014
|
|
$
|
72,334
|
|
|
$
|
—
|
|
|
$
|
72,334
|
|
Amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
December 31, 2015
|
|
$
|
72,334
|
|
|
$
|
—
|
|
|
$
|
72,334
|
|
(In thousands)
|
|
Amortized Cost
|
|
Gross Unrealized/Unrecognized Holding Gains
|
|
Gross Unrealized/Unrecognized Holding Losses
|
|
Estimated Fair Value
|
||||||||
2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
527,605
|
|
|
$
|
—
|
|
|
$
|
5,542
|
|
|
$
|
522,063
|
|
U.S. Government sponsored entities’ asset-backed securities
|
|
907,989
|
|
|
8,776
|
|
|
5,272
|
|
|
911,493
|
|
||||
Other equity securities
|
|
1,120
|
|
|
1,590
|
|
|
—
|
|
|
2,710
|
|
||||
Total
|
|
$
|
1,436,714
|
|
|
$
|
10,366
|
|
|
$
|
10,814
|
|
|
$
|
1,436,266
|
|
2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
|
$
|
48,190
|
|
|
$
|
734
|
|
|
$
|
—
|
|
|
$
|
48,924
|
|
U.S. Government sponsored entities’ asset-backed securities
|
|
101,112
|
|
|
1,526
|
|
|
134
|
|
|
102,504
|
|
||||
Total
|
|
$
|
149,302
|
|
|
$
|
2,260
|
|
|
$
|
134
|
|
|
$
|
151,428
|
|
(In thousands)
|
|
Amortized Cost
|
|
Gross Unrealized/Unrecognized Holding Gains
|
|
Gross Unrealized/Unrecognized Holding Losses
|
|
Estimated Fair Value
|
||||||||
2014:
|
|
|
|
|
|
|
|
|
||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
546,886
|
|
|
$
|
11
|
|
|
$
|
8,833
|
|
|
$
|
538,064
|
|
U.S. Government sponsored entities’ asset-backed securities
|
|
751,974
|
|
|
13,421
|
|
|
4,242
|
|
|
761,153
|
|
||||
Other equity securities
|
|
1,120
|
|
|
1,578
|
|
|
—
|
|
|
2,698
|
|
||||
Total
|
|
$
|
1,299,980
|
|
|
$
|
15,010
|
|
|
$
|
13,075
|
|
|
$
|
1,301,915
|
|
2014:
|
|
|
|
|
|
|
|
|
||||||||
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government sponsored entities’ asset-backed securities
|
|
$
|
140,562
|
|
|
$
|
3,088
|
|
|
$
|
160
|
|
|
$
|
143,490
|
|
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(In thousands)
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
326,973
|
|
|
$
|
2,117
|
|
|
$
|
195,090
|
|
|
$
|
3,425
|
|
|
$
|
522,063
|
|
|
$
|
5,542
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
384,169
|
|
|
2,776
|
|
|
114,543
|
|
|
2,496
|
|
|
498,712
|
|
|
5,272
|
|
||||||
Total
|
|
$
|
711,142
|
|
|
$
|
4,893
|
|
|
$
|
309,633
|
|
|
$
|
5,921
|
|
|
$
|
1,020,775
|
|
|
$
|
10,814
|
|
2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government sponsored entities’ asset-backed securities
|
|
$
|
5,656
|
|
|
$
|
10
|
|
|
$
|
7,792
|
|
|
$
|
124
|
|
|
$
|
13,448
|
|
|
$
|
134
|
|
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
(In thousands)
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
119,913
|
|
|
$
|
87
|
|
|
$
|
388,140
|
|
|
$
|
8,746
|
|
|
$
|
508,053
|
|
|
$
|
8,833
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
73,276
|
|
|
136
|
|
|
170,430
|
|
|
4,106
|
|
|
243,706
|
|
|
4,242
|
|
||||||
Total
|
|
$
|
193,189
|
|
|
$
|
223
|
|
|
$
|
558,570
|
|
|
$
|
12,852
|
|
|
$
|
751,759
|
|
|
$
|
13,075
|
|
2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government sponsored entities' asset-backed securities
|
|
$
|
8,032
|
|
|
$
|
148
|
|
|
$
|
2,714
|
|
|
$
|
12
|
|
|
$
|
10,746
|
|
|
$
|
160
|
|
(In thousands)
|
|
Amortized Cost
|
|
Estimated Fair Value
|
|
Tax Equivalent Yield
|
|||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|||||
U.S. Treasury and other U.S. Government sponsored entities’ notes:
|
|
|
|
|
|
|
|||||
Due one through five years
|
|
$
|
220,000
|
|
|
$
|
219,135
|
|
|
1.29
|
%
|
Due five through ten years
|
|
307,605
|
|
|
302,928
|
|
|
2.40
|
%
|
||
Total
|
|
$
|
527,605
|
|
|
$
|
522,063
|
|
|
1.94
|
%
|
|
|
|
|
|
|
|
|||||
U.S. Government sponsored entities’ asset-backed securities
|
|
$
|
907,989
|
|
|
$
|
911,493
|
|
|
2.23
|
%
|
|
|
|
|
|
|
|
|||||
Securities Held-to-Maturity
|
|
|
|
|
|
|
|||||
Obligations of states and political subdivisions
|
|
|
|
|
|
|
|||||
Due greater than ten years
|
|
$
|
48,190
|
|
|
$
|
48,924
|
|
|
4.65
|
%
|
Total
|
|
$
|
48,190
|
|
|
$
|
48,924
|
|
|
4.65
|
%
|
|
|
|
|
|
|
|
|||||
U.S. Government sponsored entities’ asset-backed securities
|
|
$
|
101,112
|
|
|
$
|
102,504
|
|
|
3.42
|
%
|
|
|
12/31/2015
|
|
|
12/31/2014
|
||||||||||||||||||||
(In thousands)
|
|
Loan Balance
|
|
Accrued Interest Receivable
|
|
Recorded Investment
|
|
|
Loan Balance
|
|
Accrued Interest Receivable
|
|
Recorded Investment
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, financial and agricultural *
|
|
$
|
955,727
|
|
|
$
|
3,437
|
|
|
$
|
959,164
|
|
|
|
$
|
856,535
|
|
|
$
|
3,218
|
|
|
$
|
859,753
|
|
Commercial real estate *
|
|
1,113,603
|
|
|
4,009
|
|
|
1,117,612
|
|
|
|
1,069,637
|
|
|
3,546
|
|
|
1,073,183
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SEPH commercial land and development
|
|
2,044
|
|
|
—
|
|
|
2,044
|
|
|
|
2,195
|
|
|
—
|
|
|
2,195
|
|
||||||
Remaining commercial
|
|
128,046
|
|
|
321
|
|
|
128,367
|
|
|
|
115,139
|
|
|
300
|
|
|
115,439
|
|
||||||
Mortgage
|
|
36,722
|
|
|
75
|
|
|
36,797
|
|
|
|
31,148
|
|
|
72
|
|
|
31,220
|
|
||||||
Installment
|
|
6,533
|
|
|
21
|
|
|
6,554
|
|
|
|
7,322
|
|
|
23
|
|
|
7,345
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
410,571
|
|
|
1,014
|
|
|
411,585
|
|
|
|
417,612
|
|
|
1,038
|
|
|
418,650
|
|
||||||
Mortgage
|
|
1,210,819
|
|
|
1,469
|
|
|
1,212,288
|
|
|
|
1,189,709
|
|
|
1,548
|
|
|
1,191,257
|
|
||||||
HELOC
|
|
211,415
|
|
|
769
|
|
|
212,184
|
|
|
|
216,915
|
|
|
803
|
|
|
217,718
|
|
||||||
Installment
|
|
22,638
|
|
|
78
|
|
|
22,716
|
|
|
|
27,139
|
|
|
97
|
|
|
27,236
|
|
||||||
Consumer
|
|
967,111
|
|
|
3,032
|
|
|
970,143
|
|
|
|
893,160
|
|
|
2,967
|
|
|
896,127
|
|
||||||
Leases
|
|
2,856
|
|
|
14
|
|
|
2,870
|
|
|
|
3,171
|
|
|
17
|
|
|
3,188
|
|
||||||
Total loans
|
|
$
|
5,068,085
|
|
|
$
|
14,239
|
|
|
$
|
5,082,324
|
|
|
|
$
|
4,829,682
|
|
|
$
|
13,629
|
|
|
$
|
4,843,311
|
|
|
|
12/31/2015
|
||||||||||||||
(In thousands)
|
|
Nonaccrual Loans
|
|
Accruing Troubled Debt Restructurings
|
|
Loans Past Due 90 Days or More and Accruing
|
|
Total Nonperforming Loans
|
||||||||
Commercial, financial and agricultural
|
|
$
|
21,676
|
|
|
$
|
8,947
|
|
|
$
|
—
|
|
|
$
|
30,623
|
|
Commercial real estate
|
|
15,268
|
|
|
2,757
|
|
|
—
|
|
|
18,025
|
|
||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
SEPH commercial land and development
|
|
2,044
|
|
|
—
|
|
|
—
|
|
|
2,044
|
|
||||
Remaining commercial
|
|
4,162
|
|
|
514
|
|
|
—
|
|
|
4,676
|
|
||||
Mortgage
|
|
7
|
|
|
110
|
|
|
—
|
|
|
117
|
|
||||
Installment
|
|
64
|
|
|
114
|
|
|
—
|
|
|
178
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
|
25,063
|
|
|
261
|
|
|
—
|
|
|
25,324
|
|
||||
Mortgage
|
|
20,378
|
|
|
10,143
|
|
|
851
|
|
|
31,372
|
|
||||
HELOC
|
|
1,749
|
|
|
873
|
|
|
27
|
|
|
2,649
|
|
||||
Installment
|
|
1,657
|
|
|
635
|
|
|
4
|
|
|
2,296
|
|
||||
Consumer
|
|
3,819
|
|
|
734
|
|
|
1,093
|
|
|
5,646
|
|
||||
Total loans
|
|
$
|
95,887
|
|
|
$
|
25,088
|
|
|
$
|
1,975
|
|
|
$
|
122,950
|
|
|
|
12/31/2014
|
||||||||||||||
(In thousands)
|
|
Nonaccrual Loans
|
|
Accruing Troubled Debt Restructurings
|
|
Loans Past Due 90 Days or More and Accruing
|
|
Total Nonperforming Loans
|
||||||||
Commercial, financial and agricultural
|
|
$
|
18,826
|
|
|
$
|
297
|
|
|
$
|
229
|
|
|
$
|
19,352
|
|
Commercial real estate
|
|
19,299
|
|
|
2,690
|
|
|
—
|
|
|
21,989
|
|
||||
Construction real estate:
|
|
|
|
|
|
|
|
|
||||||||
SEPH commercial land and development
|
|
2,078
|
|
|
—
|
|
|
—
|
|
|
2,078
|
|
||||
Remaining commercial
|
|
5,558
|
|
|
51
|
|
|
—
|
|
|
5,609
|
|
||||
Mortgage
|
|
59
|
|
|
94
|
|
|
9
|
|
|
162
|
|
||||
Installment
|
|
115
|
|
|
125
|
|
|
—
|
|
|
240
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
|
24,336
|
|
|
594
|
|
|
—
|
|
|
24,930
|
|
||||
Mortgage
|
|
21,869
|
|
|
10,349
|
|
|
1,329
|
|
|
33,547
|
|
||||
HELOC
|
|
1,879
|
|
|
630
|
|
|
9
|
|
|
2,518
|
|
||||
Installment
|
|
1,743
|
|
|
779
|
|
|
—
|
|
|
2,522
|
|
||||
Consumer
|
|
4,631
|
|
|
723
|
|
|
1,133
|
|
|
6,487
|
|
||||
Total loans
|
|
$
|
100,393
|
|
|
$
|
16,332
|
|
|
$
|
2,709
|
|
|
$
|
119,434
|
|
|
|
12/31/2015
|
|
|
12/31/2014
|
||||||||||||||||||||
(In thousands)
|
|
Nonaccrual and accruing TDRs
|
|
Loans individually evaluated for impairment
|
|
Loans collectively evaluated for impairment
|
|
|
Nonaccrual and accruing TDRs
|
|
Loans individually evaluated for impairment
|
|
Loans collectively evaluated for impairment
|
||||||||||||
Commercial, financial and agricultural
|
|
$
|
30,623
|
|
|
$
|
30,595
|
|
|
$
|
28
|
|
|
|
$
|
19,123
|
|
|
$
|
19,106
|
|
|
$
|
17
|
|
Commercial real estate
|
|
18,025
|
|
|
18,025
|
|
|
—
|
|
|
|
21,989
|
|
|
21,989
|
|
|
—
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
SEPH commercial land and development
|
|
2,044
|
|
|
2,044
|
|
|
—
|
|
|
|
2,078
|
|
|
2,078
|
|
|
—
|
|
||||||
Remaining commercial
|
|
4,676
|
|
|
4,676
|
|
|
—
|
|
|
|
5,609
|
|
|
5,609
|
|
|
—
|
|
||||||
Mortgage
|
|
117
|
|
|
—
|
|
|
117
|
|
|
|
153
|
|
|
—
|
|
|
153
|
|
||||||
Installment
|
|
178
|
|
|
—
|
|
|
178
|
|
|
|
240
|
|
|
—
|
|
|
240
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
25,324
|
|
|
25,324
|
|
|
—
|
|
|
|
24,930
|
|
|
24,930
|
|
|
—
|
|
||||||
Mortgage
|
|
30,521
|
|
|
—
|
|
|
30,521
|
|
|
|
32,218
|
|
|
—
|
|
|
32,218
|
|
||||||
HELOC
|
|
2,622
|
|
|
—
|
|
|
2,622
|
|
|
|
2,509
|
|
|
—
|
|
|
2,509
|
|
||||||
Installment
|
|
2,292
|
|
|
—
|
|
|
2,292
|
|
|
|
2,522
|
|
|
—
|
|
|
2,522
|
|
||||||
Consumer
|
|
4,553
|
|
|
—
|
|
|
4,553
|
|
|
|
5,354
|
|
|
—
|
|
|
5,354
|
|
||||||
Total loans
|
|
$
|
120,975
|
|
|
$
|
80,664
|
|
|
$
|
40,311
|
|
|
|
$
|
116,725
|
|
|
$
|
73,712
|
|
|
$
|
43,013
|
|
|
|
12/31/2015
|
|
|
12/31/2014
|
||||||||||||||||||||
(In thousands)
|
|
Unpaid principal balance
|
|
Recorded investment
|
|
Allowance for loan losses allocated
|
|
|
Unpaid principal balance
|
|
Recorded investment
|
|
Allowance for loan losses allocated
|
||||||||||||
With no related allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial, financial and agricultural
|
|
$
|
32,583
|
|
|
$
|
18,763
|
|
|
$
|
—
|
|
|
|
$
|
30,601
|
|
|
$
|
17,883
|
|
|
$
|
—
|
|
Commercial real estate
|
|
15,138
|
|
|
14,916
|
|
|
—
|
|
|
|
27,923
|
|
|
20,696
|
|
|
—
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
SEPH commercial land and development
|
|
10,834
|
|
|
2,044
|
|
|
—
|
|
|
|
11,026
|
|
|
2,078
|
|
|
—
|
|
||||||
Remaining commercial
|
|
2,506
|
|
|
1,531
|
|
|
—
|
|
|
|
1,427
|
|
|
391
|
|
|
—
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
23,798
|
|
|
23,480
|
|
|
—
|
|
|
|
25,822
|
|
|
23,352
|
|
|
—
|
|
||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial, financial and agricultural
|
|
16,155
|
|
|
11,832
|
|
|
1,904
|
|
|
|
1,251
|
|
|
1,223
|
|
|
981
|
|
||||||
Commercial real estate
|
|
3,195
|
|
|
3,109
|
|
|
381
|
|
|
|
1,310
|
|
|
1,293
|
|
|
262
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Remaining commercial
|
|
3,145
|
|
|
3,145
|
|
|
1,356
|
|
|
|
5,218
|
|
|
5,218
|
|
|
1,812
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
1,951
|
|
|
1,844
|
|
|
550
|
|
|
|
1,578
|
|
|
1,578
|
|
|
605
|
|
||||||
Total
|
|
$
|
109,305
|
|
|
$
|
80,664
|
|
|
$
|
4,191
|
|
|
|
$
|
106,156
|
|
|
$
|
73,712
|
|
|
$
|
3,660
|
|
|
|
|
|
Year ended December 31, 2015
|
||||||||
(In thousands)
|
|
Recorded Investment as of December 31, 2015
|
|
Average recorded investment
|
|
Interest income recognized
|
||||||
Commercial, financial and agricultural
|
|
$
|
30,595
|
|
|
$
|
20,179
|
|
|
$
|
340
|
|
Commercial real estate
|
|
18,025
|
|
|
17,883
|
|
|
550
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
||||||
SEPH commercial land and development
|
|
2,044
|
|
|
2,066
|
|
|
21
|
|
|||
Remaining commercial
|
|
4,676
|
|
|
5,666
|
|
|
26
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
||||||
Commercial
|
|
25,324
|
|
|
24,968
|
|
|
1,026
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
$
|
80,664
|
|
|
$
|
70,762
|
|
|
$
|
1,963
|
|
|
|
|
|
Year ended December 31, 2014
|
||||||||
(In thousands)
|
|
Recorded Investment as of December 31, 2014
|
|
Average recorded investment
|
|
Interest income recognized
|
||||||
Commercial, financial and agricultural
|
|
$
|
19,106
|
|
|
$
|
19,518
|
|
|
$
|
360
|
|
Commercial real estate
|
|
21,989
|
|
|
31,945
|
|
|
1,027
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
||||||
SEPH commercial land and development
|
|
2,078
|
|
|
3,658
|
|
|
146
|
|
|||
Remaining commercial
|
|
5,609
|
|
|
8,784
|
|
|
61
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
||||||
Commercial
|
|
24,930
|
|
|
28,306
|
|
|
1,084
|
|
|||
Consumer
|
|
—
|
|
|
403
|
|
|
—
|
|
|||
Total
|
|
$
|
73,712
|
|
|
$
|
92,614
|
|
|
$
|
2,678
|
|
|
|
|
|
Year ended
December 31, 2013
|
||||||||
(In thousands)
|
|
Recorded Investment as of December 31, 2013
|
|
Average recorded investment
|
|
Interest income recognized
|
||||||
Commercial, financial and agricultural
|
|
$
|
20,727
|
|
|
$
|
20,523
|
|
|
$
|
412
|
|
Commercial real estate
|
|
41,822
|
|
|
41,426
|
|
|
1,151
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
||||||
SEPH commercial land and development
|
|
4,777
|
|
|
8,723
|
|
|
—
|
|
|||
Remaining commercial
|
|
10,782
|
|
|
17,829
|
|
|
616
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
||||||
Commercial
|
|
33,408
|
|
|
34,972
|
|
|
461
|
|
|||
Consumer
|
|
799
|
|
|
616
|
|
|
—
|
|
|||
Total
|
|
$
|
112,315
|
|
|
$
|
124,089
|
|
|
$
|
2,640
|
|
|
|
12/31/2015
|
||||||||||||||||||
(In thousands)
|
|
Accruing loans past due 30-89 days
|
|
Past due nonaccrual loans and loans past due 90 days or more and accruing *
|
|
Total past due
|
|
Total current
|
|
Total recorded investment
|
||||||||||
Commercial, financial and agricultural
|
|
$
|
670
|
|
|
$
|
7,536
|
|
|
$
|
8,206
|
|
|
$
|
950,958
|
|
|
$
|
959,164
|
|
Commercial real estate
|
|
142
|
|
|
530
|
|
|
672
|
|
|
1,116,940
|
|
|
1,117,612
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEPH commercial land and development
|
|
—
|
|
|
2,044
|
|
|
2,044
|
|
|
—
|
|
|
2,044
|
|
|||||
Remaining commercial
|
|
165
|
|
|
84
|
|
|
249
|
|
|
128,118
|
|
|
128,367
|
|
|||||
Mortgage
|
|
63
|
|
|
7
|
|
|
70
|
|
|
36,727
|
|
|
36,797
|
|
|||||
Installment
|
|
200
|
|
|
46
|
|
|
246
|
|
|
6,308
|
|
|
6,554
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
325
|
|
|
19,521
|
|
|
19,846
|
|
|
391,739
|
|
|
411,585
|
|
|||||
Mortgage
|
|
10,569
|
|
|
8,735
|
|
|
19,304
|
|
|
1,192,984
|
|
|
1,212,288
|
|
|||||
HELOC
|
|
487
|
|
|
186
|
|
|
673
|
|
|
211,511
|
|
|
212,184
|
|
|||||
Installment
|
|
426
|
|
|
318
|
|
|
744
|
|
|
21,972
|
|
|
22,716
|
|
|||||
Consumer
|
|
11,458
|
|
|
3,376
|
|
|
14,834
|
|
|
955,309
|
|
|
970,143
|
|
|||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,870
|
|
|
2,870
|
|
|||||
Total loans
|
|
$
|
24,505
|
|
|
$
|
42,383
|
|
|
$
|
66,888
|
|
|
$
|
5,015,436
|
|
|
$
|
5,082,324
|
|
|
|
12/31/2014
|
||||||||||||||||||
(In thousands)
|
|
Accruing loans past due 30-89 days
|
|
Past due nonaccrual loans and loans past due 90 days or more and accruing *
|
|
Total past due
|
|
Total current
|
|
Total recorded investment
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, financial and agricultural
|
|
$
|
6,482
|
|
|
$
|
7,508
|
|
|
$
|
13,990
|
|
|
$
|
845,763
|
|
|
$
|
859,753
|
|
Commercial real estate
|
|
808
|
|
|
8,288
|
|
|
9,096
|
|
|
1,064,087
|
|
|
1,073,183
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEPH commercial land and development
|
|
—
|
|
|
2,068
|
|
|
2,068
|
|
|
127
|
|
|
2,195
|
|
|||||
Remaining commercial
|
|
166
|
|
|
77
|
|
|
243
|
|
|
115,196
|
|
|
115,439
|
|
|||||
Mortgage
|
|
39
|
|
|
68
|
|
|
107
|
|
|
31,113
|
|
|
31,220
|
|
|||||
Installment
|
|
21
|
|
|
25
|
|
|
46
|
|
|
7,299
|
|
|
7,345
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
250
|
|
|
19,592
|
|
|
19,842
|
|
|
398,808
|
|
|
418,650
|
|
|||||
Mortgage
|
|
11,146
|
|
|
10,637
|
|
|
21,783
|
|
|
1,169,474
|
|
|
1,191,257
|
|
|||||
HELOC
|
|
262
|
|
|
387
|
|
|
649
|
|
|
217,069
|
|
|
217,718
|
|
|||||
Installment
|
|
596
|
|
|
464
|
|
|
1,060
|
|
|
26,176
|
|
|
27,236
|
|
|||||
Consumer
|
|
11,304
|
|
|
3,818
|
|
|
15,122
|
|
|
881,005
|
|
|
896,127
|
|
|||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,188
|
|
|
3,188
|
|
|||||
Total loans
|
|
$
|
31,074
|
|
|
$
|
52,932
|
|
|
$
|
84,006
|
|
|
$
|
4,759,305
|
|
|
$
|
4,843,311
|
|
|
|
12/31/2015
|
||||||||||||||||||
(In thousands)
|
|
5 Rated
|
|
6 Rated
|
|
Impaired
|
|
Pass Rated
|
|
Recorded Investment
|
||||||||||
Commercial, financial and agricultural*
|
|
$
|
4,392
|
|
|
$
|
347
|
|
|
$
|
30,623
|
|
|
$
|
923,802
|
|
|
$
|
959,164
|
|
Commercial real estate*
|
|
14,880
|
|
|
3,417
|
|
|
18,025
|
|
|
1,081,290
|
|
|
1,117,612
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEPH commercial land and development
|
|
—
|
|
|
—
|
|
|
2,044
|
|
|
—
|
|
|
2,044
|
|
|||||
Remaining commercial
|
|
2,151
|
|
|
122
|
|
|
4,676
|
|
|
121,418
|
|
|
128,367
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
3,280
|
|
|
386
|
|
|
25,324
|
|
|
382,595
|
|
|
411,585
|
|
|||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,870
|
|
|
2,870
|
|
|||||
Total Commercial Loans
|
|
$
|
24,703
|
|
|
$
|
4,272
|
|
|
$
|
80,692
|
|
|
$
|
2,511,975
|
|
|
$
|
2,621,642
|
|
|
|
12/31/2014
|
||||||||||||||||||
(In thousands)
|
|
5 Rated
|
|
6 Rated
|
|
Impaired
|
|
Pass Rated
|
|
Recorded Investment
|
||||||||||
Commercial, financial and agricultural*
|
|
$
|
1,874
|
|
|
$
|
1,201
|
|
|
$
|
19,123
|
|
|
$
|
837,555
|
|
|
$
|
859,753
|
|
Commercial real estate*
|
|
8,448
|
|
|
1,712
|
|
|
21,989
|
|
|
1,041,034
|
|
|
1,073,183
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEPH commercial land and development
|
|
—
|
|
|
—
|
|
|
2,078
|
|
|
117
|
|
|
2,195
|
|
|||||
Remaining commercial
|
|
3,349
|
|
|
57
|
|
|
5,609
|
|
|
106,424
|
|
|
115,439
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
2,581
|
|
|
598
|
|
|
24,930
|
|
|
390,541
|
|
|
418,650
|
|
|||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,188
|
|
|
3,188
|
|
|||||
Total Commercial Loans
|
|
$
|
16,252
|
|
|
$
|
3,568
|
|
|
$
|
73,729
|
|
|
$
|
2,378,859
|
|
|
$
|
2,472,408
|
|
|
|
Year ended
December 31, 2015
|
|||||||||||||
(In thousands)
|
|
Number of Contracts
|
|
Accruing
|
|
Nonaccrual
|
|
Recorded Investment
|
|||||||
Commercial, financial and agricultural
|
|
39
|
|
|
$
|
8,948
|
|
|
$
|
3,640
|
|
|
$
|
12,588
|
|
Commercial real estate
|
|
14
|
|
|
637
|
|
|
3,523
|
|
|
4,160
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
|
|
|||||||
SEPH commercial land and development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Remaining commercial
|
|
2
|
|
|
513
|
|
|
—
|
|
|
513
|
|
|||
Mortgage
|
|
1
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|||
Installment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
11
|
|
|
—
|
|
|
1,185
|
|
|
1,185
|
|
|||
Mortgage
|
|
39
|
|
|
1,132
|
|
|
2,122
|
|
|
3,254
|
|
|||
HELOC
|
|
26
|
|
|
315
|
|
|
45
|
|
|
360
|
|
|||
Installment
|
|
9
|
|
|
—
|
|
|
155
|
|
|
155
|
|
|||
Consumer
|
|
283
|
|
|
202
|
|
|
888
|
|
|
1,090
|
|
|||
Total loans
|
|
424
|
|
|
$
|
11,766
|
|
|
$
|
11,558
|
|
|
$
|
23,324
|
|
|
|
Year ended
December 31, 2014
|
|||||||||||||
(In thousands)
|
|
Number of Contracts
|
|
Accruing
|
|
Nonaccrual
|
|
Recorded Investment
|
|||||||
Commercial, financial and agricultural
|
|
30
|
|
|
$
|
292
|
|
|
$
|
431
|
|
|
$
|
723
|
|
Commercial real estate
|
|
11
|
|
|
1,184
|
|
|
1,254
|
|
|
2,438
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
|
|
|||||||
SEPH commercial land and development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Remaining commercial
|
|
2
|
|
|
—
|
|
|
206
|
|
|
206
|
|
|||
Mortgage
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Installment
|
|
2
|
|
|
—
|
|
|
56
|
|
|
56
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
9
|
|
|
—
|
|
|
866
|
|
|
866
|
|
|||
Mortgage
|
|
46
|
|
|
32
|
|
|
2,325
|
|
|
2,357
|
|
|||
HELOC
|
|
10
|
|
|
85
|
|
|
241
|
|
|
326
|
|
|||
Installment
|
|
10
|
|
|
109
|
|
|
12
|
|
|
121
|
|
|||
Consumer
|
|
330
|
|
|
244
|
|
|
1,058
|
|
|
1,302
|
|
|||
Total loans
|
|
450
|
|
|
$
|
1,946
|
|
|
$
|
6,449
|
|
|
$
|
8,395
|
|
|
|
Year ended
December 31, 2013
|
|||||||||||||
(In thousands)
|
|
Number of Contracts
|
|
Accruing
|
|
Nonaccrual
|
|
Recorded Investment
|
|||||||
Commercial, financial and agricultural
|
|
34
|
|
|
$
|
7
|
|
|
$
|
1,334
|
|
|
$
|
1,341
|
|
Commercial real estate
|
|
22
|
|
|
—
|
|
|
8,563
|
|
|
8,563
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
|
|
|||||||
SEPH commercial land and development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Remaining commercial
|
|
3
|
|
|
—
|
|
|
98
|
|
|
98
|
|
|||
Mortgage
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Installment
|
|
4
|
|
|
26
|
|
|
25
|
|
|
51
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
|
15
|
|
|
—
|
|
|
2,552
|
|
|
2,552
|
|
|||
Mortgage
|
|
62
|
|
|
1,967
|
|
|
2,278
|
|
|
4,245
|
|
|||
HELOC
|
|
16
|
|
|
175
|
|
|
—
|
|
|
175
|
|
|||
Installment
|
|
13
|
|
|
113
|
|
|
179
|
|
|
292
|
|
|||
Consumer
|
|
327
|
|
|
805
|
|
|
345
|
|
|
1,150
|
|
|||
Total loans
|
|
496
|
|
|
$
|
3,093
|
|
|
$
|
15,374
|
|
|
$
|
18,467
|
|
|
|
Year ended
December 31, 2015
|
|
Year ended
December 31, 2014
|
|
Year ended
December 31, 2013
|
||||||||||||||||
(In thousands)
|
|
Number of Contracts
|
|
Recorded Investment
|
|
Number of Contracts
|
|
Recorded Investment
|
|
Number of Contracts
|
|
Recorded Investment
|
||||||||||
Commercial, financial and agricultural
|
|
1
|
|
|
$
|
1
|
|
|
4
|
|
|
$
|
206
|
|
|
11
|
|
|
$
|
771
|
|
|
Commercial real estate
|
|
1
|
|
|
626
|
|
|
1
|
|
|
302
|
|
|
11
|
|
|
2,839
|
|
||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SEPH commercial land and development
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Remaining commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Installment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
10
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
|
3
|
|
|
1,005
|
|
|
1
|
|
|
3
|
|
|
4
|
|
|
1,683
|
|
||||
Mortgage
|
|
12
|
|
|
682
|
|
|
14
|
|
|
810
|
|
|
26
|
|
|
1,533
|
|
||||
HELOC
|
|
1
|
|
|
5
|
|
|
2
|
|
|
160
|
|
|
—
|
|
|
—
|
|
||||
Installment
|
|
2
|
|
|
101
|
|
|
2
|
|
|
12
|
|
|
5
|
|
|
72
|
|
||||
Consumer
|
|
47
|
|
|
434
|
|
|
62
|
|
|
516
|
|
|
74
|
|
|
471
|
|
||||
Leases
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total loans
|
|
67
|
|
|
$
|
2,854
|
|
|
$
|
86
|
|
|
$
|
2,009
|
|
|
132
|
|
|
$
|
7,379
|
|
(In thousands)
|
|
December 31, 2015
|
|
December 31, 2014
|
||||
OREO:
|
|
|
|
|
||||
Commercial real estate
|
|
$
|
8,333
|
|
|
$
|
6,352
|
|
Construction real estate
|
|
7,259
|
|
|
11,281
|
|
||
Residential real estate
|
|
3,059
|
|
|
4,972
|
|
||
Total OREO
|
|
$
|
18,651
|
|
|
$
|
22,605
|
|
|
|
|
|
|
||||
Loans in process of foreclosure:
|
|
|
|
|
||||
Residential real estate
|
|
$
|
2,021
|
|
|
$
|
2,807
|
|
December 31 (In thousands)
|
|
2015
|
|
2014
|
||||
Land
|
|
$
|
19,123
|
|
|
$
|
17,836
|
|
Buildings
|
|
74,525
|
|
|
71,002
|
|
||
Equipment, furniture and fixtures
|
|
47,839
|
|
|
42,139
|
|
||
Leasehold improvements
|
|
3,878
|
|
|
3,439
|
|
||
Total
|
|
$
|
145,365
|
|
|
$
|
134,416
|
|
Less accumulated depreciation
|
|
(85,872
|
)
|
|
(78,937
|
)
|
||
Premises and equipment, net
|
|
$
|
59,493
|
|
|
$
|
55,479
|
|
(In thousands)
|
|
December 31, 2014
|
||
Total assets
|
|
|
||
As previously reported
|
|
$
|
7,003,256
|
|
As reported under the new guidance
|
|
7,001,199
|
|
|
|
|
|
||
Retained earnings
|
|
|
||
As previously reported
|
|
$
|
486,541
|
|
As reported under the new guidance
|
|
484,484
|
|
|
|
|
|
||
Total equity
|
|
|
||
As previously reported
|
|
$
|
698,598
|
|
As reported under the new guidance
|
|
696,541
|
|
(In thousands)
|
|
12 months ended December 31, 2014
|
12 months ended December 31, 2013
|
||||
Total other expense
|
|
|
|
||||
As previously reported
|
|
$
|
195,234
|
|
$
|
188,529
|
|
As reported under the new guidance
|
|
187,510
|
|
181,515
|
|
||
|
|
|
|
||||
Income tax expense
|
|
|
|
||||
As previously reported
|
|
$
|
28,602
|
|
$
|
25,131
|
|
As reported under the new guidance
|
|
36,459
|
|
32,503
|
|
||
|
|
|
|
||||
Net income
|
|
|
|
||||
As previously reported
|
|
$
|
84,090
|
|
$
|
77,227
|
|
As reported under the new guidance
|
|
83,957
|
|
76,869
|
|
(In thousands)
|
|
December 31, 2015
|
December 31, 2014
|
||||
Affordable housing tax credit investments
|
|
$
|
51,247
|
|
$
|
48,911
|
|
Unfunded commitments
|
|
20,311
|
|
16,629
|
|
December 31 (In thousands)
|
|
2015
|
|
2014
|
||||
Non-interest bearing
|
|
$
|
1,404,032
|
|
|
$
|
1,269,296
|
|
Interest bearing
|
|
3,943,610
|
|
|
3,858,704
|
|
||
Total
|
|
$
|
5,347,642
|
|
|
$
|
5,128,000
|
|
(In thousands)
|
|
|
||
2016
|
|
$
|
814,387
|
|
2017
|
|
221,761
|
|
|
2018
|
|
56,744
|
|
|
2019
|
|
145,027
|
|
|
2020
|
|
52,062
|
|
|
After 5 years
|
|
431
|
|
|
Total
|
|
$
|
1,290,412
|
|
|
|
December 31, 2015
|
||||||||||||||||||
(In thousands)
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
|
Overnight and Continuous
|
|
Up to 30 days
|
|
30 - 90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
U.S. government and agency securities
|
|
$
|
247,618
|
|
|
$
|
2,239
|
|
|
$
|
—
|
|
|
$
|
304,385
|
|
|
$
|
554,242
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31, 2014
|
||||||||||||||||||
(In thousands)
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
|
Overnight and Continuous
|
|
Up to 30 days
|
|
30 - 90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
U.S. government and agency securities
|
|
$
|
268,427
|
|
|
$
|
164
|
|
|
$
|
4,940
|
|
|
$
|
303,449
|
|
|
$
|
576,980
|
|
December 31 (In thousands)
|
|
2015
|
|
2014
|
||||
Securities sold under agreements to repurchase
|
|
$
|
254,242
|
|
|
$
|
276,980
|
|
FHLB advances
|
|
140,000
|
|
|
—
|
|
||
Total short-term borrowings
|
|
$
|
394,242
|
|
|
$
|
276,980
|
|
(In thousands)
|
|
Repurchase agreements
|
|
FHLB Advances
|
||||
2015
|
|
|
|
|
||||
Ending balance
|
|
$
|
254,242
|
|
|
$
|
140,000
|
|
Highest month-end balance
|
|
278,324
|
|
|
140,000
|
|
||
Average daily balance
|
|
257,622
|
|
|
1,096
|
|
||
Weighted-average interest rate:
|
|
|
|
|
||||
As of year-end
|
|
0.17
|
%
|
|
0.56
|
%
|
||
Paid during the year
|
|
0.18
|
%
|
|
0.59
|
%
|
||
2014
|
|
|
|
|
||||
Ending balance
|
|
$
|
276,980
|
|
|
$
|
—
|
|
Highest month-end balance
|
|
307,025
|
|
|
—
|
|
||
Average daily balance
|
|
262,709
|
|
|
561
|
|
||
Weighted-average interest rate:
|
|
|
|
|
||||
As of year-end
|
|
0.18
|
%
|
|
—
|
%
|
||
Paid during the year
|
|
0.19
|
%
|
|
0.10
|
%
|
December 31,
|
|
2015
|
|
2014
|
||||||||||
(In thousands)
|
|
Outstanding Balance
|
|
Average Rate
|
|
Outstanding Balance
|
|
Average Rate
|
||||||
Total Federal Home Loan Bank advances by year of maturity:
|
|
|
|
|
|
|
|
|
||||||
2015
|
|
—
|
|
|
—
|
%
|
|
51,000
|
|
|
2.00
|
%
|
||
2016
|
|
—
|
|
|
—
|
%
|
|
26,000
|
|
|
0.92
|
%
|
||
2017
|
|
50,000
|
|
|
1.25
|
%
|
|
51,000
|
|
|
1.28
|
%
|
||
2018
|
|
150,000
|
|
|
2.04
|
%
|
|
125,049
|
|
|
2.11
|
%
|
||
2019
|
|
75,000
|
|
|
1.96
|
%
|
|
75,333
|
|
|
1.97
|
%
|
||
2020
|
|
25,000
|
|
|
2.14
|
%
|
|
25,462
|
|
|
2.19
|
%
|
||
Thereafter
|
|
150,000
|
|
|
3.32
|
%
|
|
150,699
|
|
|
3.33
|
%
|
||
Total
|
|
$
|
450,000
|
|
|
2.37
|
%
|
|
504,543
|
|
|
2.30
|
%
|
|
Total broker repurchase agreements by year of maturity:
|
|
|
|
|
|
|
|
|
||||||
2017
|
|
300,000
|
|
|
1.75
|
%
|
|
300,000
|
|
|
1.75
|
%
|
||
Total
|
|
$
|
300,000
|
|
|
1.75
|
%
|
|
$
|
300,000
|
|
|
1.75
|
%
|
Total combined long-term debt by year of maturity:
|
|
|
|
|
|
|
|
|
||||||
2015
|
|
—
|
|
|
—
|
%
|
|
51,000
|
|
|
2.00
|
%
|
||
2016
|
|
—
|
|
|
—
|
%
|
|
26,000
|
|
|
0.92
|
%
|
||
2017
|
|
350,000
|
|
|
1.68
|
%
|
|
351,000
|
|
|
1.68
|
%
|
||
2018
|
|
150,000
|
|
|
2.04
|
%
|
|
125,049
|
|
|
2.11
|
%
|
||
2019
|
|
75,000
|
|
|
1.96
|
%
|
|
75,333
|
|
|
1.97
|
%
|
||
2020
|
|
25,000
|
|
|
2.14
|
%
|
|
25,462
|
|
|
2.19
|
%
|
||
Thereafter
|
|
150,000
|
|
|
3.32
|
%
|
|
150,699
|
|
|
3.33
|
%
|
||
Total
|
|
$
|
750,000
|
|
|
2.12
|
%
|
|
$
|
804,543
|
|
|
2.09
|
%
|
Prepayment penalty
|
|
(11,895
|
)
|
|
—
|
|
|
(17,941
|
)
|
|
—
|
|
||
Total long-term debt
|
|
$
|
738,105
|
|
|
2.16
|
%
|
|
$
|
786,602
|
|
|
2.89
|
%
|
(In thousands)
|
|
2015
|
|
2014
|
||||
Change in fair value of plan assets
|
|
|
|
|
||||
Fair value at beginning of measurement period
|
|
$
|
160,598
|
|
|
$
|
152,739
|
|
Actual return on plan assets
|
|
(58
|
)
|
|
15,511
|
|
||
Benefits paid
|
|
(7,042
|
)
|
|
(7,652
|
)
|
||
Fair value at end of measurement period
|
|
$
|
153,498
|
|
|
$
|
160,598
|
|
Change in benefit obligation
|
|
|
|
|
||||
Projected benefit obligation at beginning of measurement period
|
|
$
|
109,328
|
|
|
$
|
89,179
|
|
Service cost
|
|
5,368
|
|
|
4,331
|
|
||
Interest cost
|
|
4,695
|
|
|
4,577
|
|
||
Actuarial (gains) loss
|
|
(10,104
|
)
|
|
18,893
|
|
||
Benefits paid
|
|
(7,042
|
)
|
|
(7,652
|
)
|
||
Projected benefit obligation at the end of measurement period
|
|
$
|
102,245
|
|
|
$
|
109,328
|
|
Funded status at end of year (fair value of plan assets less benefit obligation)
|
|
$
|
51,253
|
|
|
$
|
51,270
|
|
|
|
|
|
Percentage of Plan Assets
|
||||
Asset category
|
|
Target Allocation
|
|
2015
|
|
2014
|
||
Equity securities
|
|
50% - 100%
|
|
85
|
%
|
|
85
|
%
|
Fixed income and cash equivalents
|
|
remaining balance
|
|
15
|
%
|
|
15
|
%
|
Total
|
|
|
|
100
|
%
|
|
100
|
%
|
|
|
2015
|
|
2014
|
|
2013
|
|||
Discount rate
|
|
4.88
|
%
|
|
4.42
|
%
|
|
5.30
|
%
|
Rate of compensation increase
|
|
|
|
|
|
|
|
||
Under age 30
|
|
10.00
|
%
|
|
10.00
|
%
|
|
10.00
|
%
|
Ages 30-39
|
|
6.00
|
%
|
|
6.00
|
%
|
|
6.00
|
%
|
Ages 40 and over
|
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
2016
|
$
|
5,010
|
|
2017
|
5,321
|
|
|
2018
|
5,800
|
|
|
2019
|
6,780
|
|
|
2020
|
7,317
|
|
|
2021-2025
|
45,831
|
|
|
Total
|
$
|
76,059
|
|
(In thousands)
|
|
2015
|
|
2014
|
||||
Prior service cost
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
Net actuarial loss
|
|
(23,618
|
)
|
|
(22,855
|
)
|
||
Total
|
|
(23,618
|
)
|
|
(22,870
|
)
|
||
Deferred taxes
|
|
8,267
|
|
|
8,005
|
|
||
Accumulated other comprehensive loss
|
|
$
|
(15,351
|
)
|
|
$
|
(14,865
|
)
|
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Components of net periodic benefit cost and other amounts recognized in other comprehensive (loss) income
|
|
|
|
|
|
|
||||||
Service cost
|
|
$
|
(5,368
|
)
|
|
$
|
(4,331
|
)
|
|
$
|
(4,817
|
)
|
Interest cost
|
|
(4,695
|
)
|
|
(4,577
|
)
|
|
(4,223
|
)
|
|||
Expected return on plan assets
|
|
11,420
|
|
|
10,869
|
|
|
9,536
|
|
|||
Amortization of prior service cost
|
|
(15
|
)
|
|
(19
|
)
|
|
(20
|
)
|
|||
Recognized net actuarial loss
|
|
(637
|
)
|
|
—
|
|
|
(2,703
|
)
|
|||
Net periodic benefit income (cost)
|
|
$
|
705
|
|
|
$
|
1,942
|
|
|
$
|
(2,227
|
)
|
Change to net actuarial (loss) gain for the period
|
|
$
|
(1,400
|
)
|
|
$
|
(14,276
|
)
|
|
$
|
30,409
|
|
Amortization of prior service cost
|
|
15
|
|
|
19
|
|
|
20
|
|
|||
Amortization of net loss
|
|
637
|
|
|
—
|
|
|
2,703
|
|
|||
Total recognized in other comprehensive (loss) income
|
|
(748
|
)
|
|
(14,257
|
)
|
|
33,132
|
|
|||
Total recognized in net benefit cost and other comprehensive (loss) income
|
|
$
|
(43
|
)
|
|
$
|
(12,315
|
)
|
|
$
|
30,905
|
|
|
|
2015
|
|
2014
|
|
2013
|
|||
Discount Rate
|
|
4.42
|
%
|
|
5.30
|
%
|
|
4.47
|
%
|
Rate of compensation increase
|
|
|
|
|
|
|
|
|
|
Under age 30
|
|
10.00
|
%
|
|
10.00
|
%
|
|
10.00
|
%
|
Ages 30-39
|
|
6.00
|
%
|
|
6.00
|
%
|
|
6.00
|
%
|
Ages 40 and over
|
|
3.00
|
%
|
|
3.00
|
%
|
|
3.00
|
%
|
Expected long-term return on plan assets
|
|
7.25
|
%
|
|
7.25
|
%
|
|
7.50
|
%
|
December 31 (In thousands)
|
|
2015
|
|
2014
|
||||
Deferred tax assets:
|
|
|
||||||
Allowance for loan losses
|
|
$
|
19,773
|
|
|
$
|
19,023
|
|
Accumulated other comprehensive loss – Pension Plan
|
|
8,266
|
|
|
8,005
|
|
||
Accumulated other comprehensive loss – Unrealized losses on securities
|
|
157
|
|
|
—
|
|
||
Deferred compensation
|
|
3,908
|
|
|
3,820
|
|
||
OREO valuation adjustments
|
|
2,418
|
|
|
3,984
|
|
||
Net deferred loan fees
|
|
1,204
|
|
|
933
|
|
||
Deferred contract bonus
|
|
1,031
|
|
|
—
|
|
||
Other
|
|
4,171
|
|
|
4,338
|
|
||
Total deferred tax assets
|
|
$
|
40,928
|
|
|
$
|
40,103
|
|
Deferred tax liabilities:
|
|
|
|
|
||||
Accumulated other comprehensive income – Unrealized gains on securities
|
|
—
|
|
|
677
|
|
||
Deferred investment income
|
|
10,199
|
|
|
10,199
|
|
||
Pension plan
|
|
26,205
|
|
|
25,949
|
|
||
Mortgage servicing rights
|
|
3,153
|
|
|
3,015
|
|
||
Partnership adjustments
|
|
560
|
|
|
865
|
|
||
Other
|
|
872
|
|
|
804
|
|
||
Total deferred tax liabilities
|
|
$
|
40,989
|
|
|
$
|
41,509
|
|
Net deferred tax asset (liability)
|
|
$
|
(61
|
)
|
|
$
|
(1,406
|
)
|
December 31, (In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Currently payable
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
32,817
|
|
|
$
|
33,931
|
|
|
$
|
34,435
|
|
|
|
|
|
|
|
|
||||||
Deferred
|
|
|
|
|
|
|
||||||
Federal
|
|
(250
|
)
|
|
2,528
|
|
|
(1,932
|
)
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
32,567
|
|
|
$
|
36,459
|
|
|
$
|
32,503
|
|
|
|
2015
|
|
2014
|
|
2013
|
|||
Statutory federal corporate tax rate
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Changes in rates resulting from:
|
|
|
|
|
|
|
|||
Tax exempt interest income, net of disallowed interest
|
|
(0.5
|
)%
|
|
(0.5
|
)%
|
|
(0.8
|
)%
|
Bank owned life insurance
|
|
(1.8
|
)%
|
|
(1.4
|
)%
|
|
(1.6
|
)%
|
Investments in qualified affordable housing projects, net of tax benefits
|
|
(1.9
|
)%
|
|
(1.6
|
)%
|
|
(1.7
|
)%
|
Other tax credits
|
|
(0.9
|
)%
|
|
—
|
%
|
|
—
|
%
|
KSOP dividend deduction
|
|
(1.0
|
)%
|
|
(1.0
|
)%
|
|
(1.1
|
)%
|
Other
|
|
(0.2
|
)%
|
|
(0.2
|
)%
|
|
(0.1
|
)%
|
Effective tax rate
|
|
28.7
|
%
|
|
30.3
|
%
|
|
29.7
|
%
|
(In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
January 1 Balance
|
|
$
|
532
|
|
|
$
|
518
|
|
|
$
|
517
|
|
Additions based on tax positions related to the current year
|
|
80
|
|
|
76
|
|
|
74
|
|
|||
Additions for tax positions of prior years
|
|
16
|
|
|
14
|
|
|
4
|
|
|||
Reductions for tax positions of prior years
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reductions due to statute of limitations
|
|
(70
|
)
|
|
(76
|
)
|
|
(77
|
)
|
|||
December 31 Balance
|
|
$
|
558
|
|
|
$
|
532
|
|
|
$
|
518
|
|
Year ended December 31,
(in thousands)
|
|
Changes in Pension Plan assets and benefit obligations
|
|
Unrealized gains and losses on available-for-sale securities
|
|
Total
|
|||||||
Beginning balance at December 31, 2014
|
|
$
|
(14,865
|
)
|
|
$
|
1,257
|
|
|
$
|
(13,608
|
)
|
|
|
Other comprehensive (loss) before reclassifications
|
|
(910
|
)
|
|
(1,549
|
)
|
|
(2,459
|
)
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
424
|
|
|
—
|
|
|
424
|
|
|||
Net current period other comprehensive loss
|
|
(486
|
)
|
|
(1,549
|
)
|
|
(2,035
|
)
|
||||
Ending balance at December 31, 2015
|
|
$
|
(15,351
|
)
|
|
$
|
(292
|
)
|
|
$
|
(15,643
|
)
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance at December 31, 2013
|
|
$
|
(5,598
|
)
|
|
$
|
(29,821
|
)
|
|
$
|
(35,419
|
)
|
|
|
Other comprehensive (loss) gain before reclassifications
|
|
(9,279
|
)
|
|
30,325
|
|
|
21,046
|
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
12
|
|
|
753
|
|
|
765
|
|
|||
Net current period other comprehensive (loss) income
|
|
(9,267
|
)
|
|
31,078
|
|
|
21,811
|
|
||||
Ending balance at December 31, 2014
|
|
$
|
(14,865
|
)
|
|
$
|
1,257
|
|
|
$
|
(13,608
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Beginning balance at December 31, 2012
|
|
$
|
(27,134
|
)
|
|
$
|
9,616
|
|
|
$
|
(17,518
|
)
|
|
|
Other comprehensive gain (loss) before reclassifications
|
|
19,766
|
|
|
(39,448
|
)
|
|
(19,682
|
)
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
1,770
|
|
|
11
|
|
|
1,781
|
|
|||
Net current period other comprehensive income (loss)
|
|
21,536
|
|
|
(39,437
|
)
|
|
(17,901
|
)
|
||||
Ending balance at December 31, 2013
|
|
$
|
(5,598
|
)
|
|
$
|
(29,821
|
)
|
|
$
|
(35,419
|
)
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
Affected Line Item in the Statement of Income
|
|||||||||
(In thousands)
|
|
2015
|
2014
|
2013
|
|
|
|||||||
Amortization of defined benefit pension items
|
|
|
|
|
|
|
|||||||
|
Amortization of prior service cost
|
|
$
|
15
|
|
$
|
19
|
|
$
|
20
|
|
|
Employee benefits
|
|
Amortization of net loss
|
|
637
|
|
—
|
|
2,703
|
|
|
Employee benefits
|
|||
Total income before income taxes
|
|
652
|
|
19
|
|
2,723
|
|
|
Total income before income taxes
|
||||
|
Federal income taxes
|
|
228
|
|
7
|
|
953
|
|
|
Federal income taxes
|
|||
|
Net of tax
|
|
$
|
424
|
|
$
|
12
|
|
$
|
1,770
|
|
|
Net of tax
|
|
|
|
|
|
|
|
|
||||||
Unrealized gains & losses on available for sale securities
|
|
|
|
|
|
|
|||||||
|
Loss on sale of investment securities
|
|
$
|
—
|
|
$
|
1,158
|
|
$
|
—
|
|
|
Gain (loss) on sale of investment securities
|
|
Other than temporary impairment
|
|
—
|
|
—
|
|
17
|
|
|
Miscellaneous expense
|
|||
Total income before income taxes
|
|
—
|
|
1,158
|
|
17
|
|
|
Total income before income taxes
|
||||
|
Federal income taxes
|
|
—
|
|
405
|
|
6
|
|
|
Federal income taxes
|
|||
|
Net of tax
|
|
$
|
—
|
|
$
|
753
|
|
$
|
11
|
|
|
Net of tax
|
Year ended December 31
(In thousands, except share data) |
|
2015
|
|
2014
|
|
2013
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Net income available to common shareholders
|
|
$
|
81,012
|
|
|
$
|
83,957
|
|
|
$
|
76,869
|
|
Denominator:
|
|
|
|
|
|
|
||||||
Basic earnings per common share:
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding
|
|
15,364,281
|
|
|
15,394,971
|
|
|
15,412,365
|
|
|||
Effect of dilutive securities – performance based restricted stock units
|
|
40,459
|
|
|
18,861
|
|
|
—
|
|
|||
Diluted earnings per common share:
|
|
|
|
|
|
|
||||||
Adjusted weighted-average shares and assumed vesting
|
|
15,404,740
|
|
|
15,413,832
|
|
|
15,412,365
|
|
|||
Earnings per common share:
|
|
|
|
|
|
|
||||||
Basic earnings per common share
|
|
$
|
5.27
|
|
|
$
|
5.45
|
|
|
$
|
4.99
|
|
Diluted earnings per common share
|
|
$
|
5.26
|
|
|
$
|
5.45
|
|
|
$
|
4.99
|
|
December 31 (In thousands)
|
|
2015
|
|
2014
|
||||
Loan commitments
|
|
$
|
888,411
|
|
|
$
|
869,793
|
|
Standby letters of credit
|
|
12,326
|
|
|
12,473
|
|
December 31 (In thousands)
|
|
2015
|
|
2014
|
|
2013
|
||||||
Mortgage servicing rights:
|
|
|
|
|
|
|
||||||
Carrying amount, net, beginning of year
|
|
$
|
8,613
|
|
|
$
|
9,013
|
|
|
$
|
7,763
|
|
Additions
|
|
1,748
|
|
|
1,026
|
|
|
2,436
|
|
|||
Amortization
|
|
(1,637
|
)
|
|
(1,631
|
)
|
|
(2,479
|
)
|
|||
Change in valuation allowance
|
|
284
|
|
|
205
|
|
|
1,293
|
|
|||
Carrying amount, net, end of year
|
|
$
|
9,008
|
|
|
$
|
8,613
|
|
|
$
|
9,013
|
|
Valuation allowance:
|
|
|
|
|
|
|
||||||
Beginning of year
|
|
$
|
826
|
|
|
$
|
1,031
|
|
|
$
|
2,324
|
|
Change in valuation allowance
|
|
(284
|
)
|
|
(205
|
)
|
|
(1,293
|
)
|
|||
End of year
|
|
$
|
542
|
|
|
$
|
826
|
|
|
$
|
1,031
|
|
•
|
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.
|
•
|
Level 2: Level 1 inputs for assets or liabilities that are not actively traded. Also consists of an observable market price for a similar asset or liability. This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.
|
•
|
Level 3: Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available. This could include the use of internally developed models, financial forecasting and similar inputs.
|
Fair Value Measurements at December 31, 2015 using:
|
||||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at December 31, 2015
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
—
|
|
|
$
|
522,063
|
|
|
$
|
—
|
|
|
$
|
522,063
|
|
U.S. Government sponsored entities’ asset-backed securities
|
|
—
|
|
|
911,493
|
|
|
—
|
|
|
911,493
|
|
||||
Equity securities
|
|
1,941
|
|
|
—
|
|
|
769
|
|
|
2,710
|
|
||||
Mortgage loans held for sale
|
|
—
|
|
|
7,306
|
|
|
—
|
|
|
7,306
|
|
||||
Mortgage IRLCs
|
|
—
|
|
|
165
|
|
|
—
|
|
|
165
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fair value swap
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
226
|
|
|
$
|
226
|
|
Level 3 Fair Value Measurements
|
||||||||
(In thousands)
|
|
Equity Securities
|
|
Fair Value Swap
|
||||
Balance at January 1, 2015
|
|
$
|
776
|
|
|
$
|
(226
|
)
|
Total Gains (Losses)
|
|
|
|
|
||||
Included in earnings - realized
|
|
—
|
|
|
—
|
|
||
Included in earnings - unrealized
|
|
—
|
|
|
—
|
|
||
Included in other comprehensive loss
|
|
(7
|
)
|
|
—
|
|
||
Purchases, sales, issuances and settlements, other, net
|
|
—
|
|
|
—
|
|
||
Re-evaluation of fair value swap
|
|
—
|
|
|
—
|
|
||
Balance at December 31, 2015
|
|
$
|
769
|
|
|
$
|
(226
|
)
|
Balance at January 1, 2014
|
|
$
|
759
|
|
|
$
|
(135
|
)
|
Total Gains (Losses)
|
|
|
|
|
||||
Included in earnings - realized
|
|
—
|
|
|
—
|
|
||
Included in earnings - unrealized
|
|
—
|
|
|
—
|
|
||
Included in other comprehensive income
|
|
17
|
|
|
—
|
|
||
Purchases, sales, issuances and settlements, other, net
|
|
—
|
|
|
—
|
|
||
Re-evaluation of fair value swap
|
|
—
|
|
|
(91
|
)
|
||
Balance at December 31, 2014
|
|
$
|
776
|
|
|
$
|
(226
|
)
|
•
|
Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a
15%
discount to real estate appraised values which management expects will cover all disposition costs (including selling costs). This
15%
is based on historical discounts to appraised values on sold OREO properties.
|
•
|
Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser. Management generally applies a 15% discount to income approach appraised values which management expects will cover all disposition costs (including selling costs).
|
•
|
Lot development loan appraisals are typically performed using a discounted cash flow analysis. Appraisers determine an anticipated absorption period and a discount rate that takes into account an investor’s required rate of return based on recent comparable sales. Management generally applies a
6%
discount to lot development appraised values, which is an additional discount above the net present value calculation included in the appraisal, to account for selling costs.
|
Fair Value Measurements at December 31, 2015 Using:
|
||||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at December 31, 2015
|
||||||||
Impaired Loans:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,698
|
|
|
$
|
3,698
|
|
Construction real estate:
|
|
|
|
|
|
|
|
|
||||||||
SEPH commercial land and development
|
|
—
|
|
|
—
|
|
|
2,044
|
|
|
2,044
|
|
||||
Remaining commercial
|
|
—
|
|
|
—
|
|
|
1,872
|
|
|
1,872
|
|
||||
Residential real estate
|
|
—
|
|
|
—
|
|
|
1,882
|
|
|
1,882
|
|
||||
Total impaired loans
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,496
|
|
|
$
|
9,496
|
|
Mortgage Servicing Rights
|
|
$
|
—
|
|
|
$
|
1,867
|
|
|
$
|
—
|
|
|
$
|
1,867
|
|
Other Real Estate Owned:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
2,796
|
|
|
2,796
|
|
||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
3,387
|
|
|
3,387
|
|
||||
Residential real estate
|
|
—
|
|
|
—
|
|
|
2,332
|
|
|
2,332
|
|
||||
Total Other Real Estate Owned
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,515
|
|
|
$
|
8,515
|
|
|
|
December 31, 2015
|
||||||||||||||
(In thousands)
|
|
Recorded Investment
|
|
Prior Charge-Offs
|
|
Specific Valuation Allowance
|
|
Carrying Balance
|
||||||||
Impaired loans recorded at fair value
|
|
$
|
11,783
|
|
|
$
|
10,512
|
|
|
$
|
2,287
|
|
|
$
|
9,496
|
|
Remaining impaired loans
|
|
68,881
|
|
|
18,193
|
|
|
1,904
|
|
|
66,977
|
|
||||
Total impaired loans
|
|
$
|
80,664
|
|
|
$
|
28,705
|
|
|
$
|
4,191
|
|
|
$
|
76,473
|
|
|
|
December 31, 2014
|
||||||||||||||
(In thousands)
|
|
Recorded Investment
|
|
Prior Charge-Offs
|
|
Specific Valuation Allowance
|
|
Carrying Balance
|
||||||||
Impaired loans recorded at fair value
|
|
$
|
19,643
|
|
|
$
|
19,731
|
|
|
$
|
2,680
|
|
|
$
|
16,963
|
|
Remaining impaired loans
|
|
54,069
|
|
|
12,749
|
|
|
980
|
|
|
53,089
|
|
||||
Total impaired loans
|
|
$
|
73,712
|
|
|
$
|
32,480
|
|
|
$
|
3,660
|
|
|
$
|
70,052
|
|
December 31, 2015
|
||||||||||
(In thousands)
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input(s)
|
|
Range (Weighted Average)
|
||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
$
|
3,698
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 45.9% (20.3%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
7.0% - 13.3% (9.5%)
|
||
|
|
|
|
Cost approach
|
|
Accumulated depreciation
|
|
50.0% (50.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
SEPH commercial land and development
|
|
$
|
2,044
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
5.0% - 40.0% (22.1%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
10.7% (10.7%)
|
||
|
|
|
|
|
|
|
|
|
||
Remaining commercial
|
|
$
|
1,872
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 25.3% (1.0%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
10.0% - 10.7% (10.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
1,882
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 96.7% (12.5%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
3.8% - 10.1% (9.1%)
|
||
|
|
|
|
Cost approach
|
|
Accumulated depreciation
|
|
33.3% - 50.0% (43.4%)
|
||
Other real estate owned:
|
|
|
|
|
|
|
|
|
||
Commercial real estate
|
|
$
|
2,796
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
2.0% - 71.0% (26.9%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
9.5% (9.5%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate
|
|
$
|
3,387
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 85.0% (24.3%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
15.0% (15.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
2,332
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.1% - 61.8% (23.0%)
|
December 31, 2014
|
||||||||||
(In thousands)
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input(s)
|
|
Range (Weighted Average)
|
||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
$
|
8,481
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 84.0% (38.8%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
8.0% - 9.5% (9.4%)
|
||
|
|
|
|
Cost approach
|
|
Accumulated depreciation
|
|
23.0% (23.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
SEPH commercial land and development
|
|
$
|
2,078
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
5.0% - 35.0% (17.5%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
10.8% (10.8%)
|
||
|
|
|
|
|
|
|
|
|
||
Remaining commercial
|
|
$
|
3,483
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.2% - 76.0% (45.4%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
10.0% - 22.0% (16.5%)
|
||
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
2,921
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 120.6% (11.1%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
7.9% - 10.0% (8.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Other real estate owned:
|
|
|
|
|
|
|
|
|
||
Commercial real estate
|
|
$
|
1,470
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 87.0% (30.5%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
8.4% - 10.0% (9.4%)
|
||
|
|
|
|
Cost approach
|
|
Accumulated depreciation
|
|
60.0% - 95.0% (77.5%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate
|
|
$
|
6,473
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 82.9% (27.1%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
15.0% (15.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
2,369
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 38.3% (10.1%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
6.8% - 7.8% (7.6%)
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
|
|
Fair Value Measurements
|
||||||||||||||||
(In thousands)
|
|
Carrying value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total fair value
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and money market instruments
|
|
$
|
149,459
|
|
|
$
|
149,459
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
149,459
|
|
Investment securities
|
|
1,585,568
|
|
|
1,941
|
|
|
1,584,984
|
|
|
769
|
|
|
1,587,694
|
|
|||||
Accrued interest receivable - securities
|
|
4,436
|
|
|
—
|
|
|
4,436
|
|
|
—
|
|
|
4,436
|
|
|||||
Accrued interest receivable - loans
|
|
14,239
|
|
|
—
|
|
|
—
|
|
|
14,239
|
|
|
14,239
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans held for sale
|
|
7,306
|
|
|
—
|
|
|
7,306
|
|
|
—
|
|
|
7,306
|
|
|||||
Impaired loans carried at fair value
|
|
9,496
|
|
|
—
|
|
|
—
|
|
|
9,496
|
|
|
9,496
|
|
|||||
Mortgage IRLCs
|
|
165
|
|
|
—
|
|
|
165
|
|
|
—
|
|
|
165
|
|
|||||
Other loans
|
|
4,994,624
|
|
|
—
|
|
|
—
|
|
|
4,997,318
|
|
|
4,997,318
|
|
|||||
Loans receivable, net
|
|
$
|
5,011,591
|
|
|
$
|
—
|
|
|
$
|
7,471
|
|
|
$
|
5,006,814
|
|
|
$
|
5,014,285
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest bearing checking accounts
|
|
$
|
1,404,032
|
|
|
$
|
1,404,032
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,404,032
|
|
Interest bearing transaction accounts
|
|
1,107,200
|
|
|
1,107,200
|
|
|
—
|
|
|
—
|
|
|
1,107,200
|
|
|||||
Savings accounts
|
|
1,544,708
|
|
|
1,544,708
|
|
|
—
|
|
|
—
|
|
|
1,544,708
|
|
|||||
Time deposits
|
|
1,290,412
|
|
|
—
|
|
|
1,295,329
|
|
|
—
|
|
|
1,295,329
|
|
|||||
Other
|
|
1,290
|
|
|
1,290
|
|
|
—
|
|
|
—
|
|
|
1,290
|
|
|||||
Total deposits
|
|
$
|
5,347,642
|
|
|
$
|
4,057,230
|
|
|
$
|
1,295,329
|
|
|
$
|
—
|
|
|
$
|
5,352,559
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
$
|
394,242
|
|
|
$
|
—
|
|
|
$
|
394,242
|
|
|
$
|
—
|
|
|
$
|
394,242
|
|
Long-term debt
|
|
738,105
|
|
|
—
|
|
|
771,420
|
|
|
—
|
|
|
771,420
|
|
|||||
Subordinated notes
|
|
45,000
|
|
|
—
|
|
|
41,596
|
|
|
—
|
|
|
41,596
|
|
|||||
Accrued interest payable – deposits
|
|
987
|
|
|
66
|
|
|
921
|
|
|
—
|
|
|
987
|
|
|||||
Accrued interest payable – debt/borrowings
|
|
1,351
|
|
|
4
|
|
|
1,347
|
|
|
—
|
|
|
1,351
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value swap
|
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
226
|
|
|
$
|
226
|
|
|
|
December 31, 2014
|
||||||||||||||||||
|
|
|
|
Fair Value Measurements
|
||||||||||||||||
(In thousands)
|
|
Carrying value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total fair value
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and money market instruments
|
|
$
|
237,699
|
|
|
$
|
237,699
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
237,699
|
|
Investment securities
|
|
1,442,477
|
|
|
1,922
|
|
|
1,442,708
|
|
|
775
|
|
|
1,445,405
|
|
|||||
Accrued interest receivable - securities
|
|
4,048
|
|
|
—
|
|
|
4,048
|
|
|
—
|
|
|
4,048
|
|
|||||
Accrued interest receivable - loans
|
|
13,629
|
|
|
—
|
|
|
—
|
|
|
13,629
|
|
|
13,629
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans held for sale
|
|
5,264
|
|
|
—
|
|
|
5,264
|
|
|
—
|
|
|
5,264
|
|
|||||
Impaired loans carried at fair value
|
|
16,963
|
|
|
—
|
|
|
—
|
|
|
16,963
|
|
|
16,963
|
|
|||||
Mortgage IRLCs
|
|
70
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
|||||
Other loans
|
|
4,753,033
|
|
|
—
|
|
|
—
|
|
|
4,757,461
|
|
|
4,757,461
|
|
|||||
Loans receivable, net
|
|
$
|
4,775,330
|
|
|
$
|
—
|
|
|
$
|
5,334
|
|
|
$
|
4,774,424
|
|
|
$
|
4,779,758
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest bearing checking accounts
|
|
$
|
1,269,296
|
|
|
$
|
1,269,296
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
1,269,296
|
|
|
Interest bearing transaction accounts
|
|
1,122,079
|
|
|
1,122,079
|
|
|
—
|
|
|
—
|
|
|
1,122,079
|
|
|||||
Savings accounts
|
|
1,325,445
|
|
|
1,325,445
|
|
|
—
|
|
|
—
|
|
|
1,325,445
|
|
|||||
Time deposits
|
|
1,409,911
|
|
|
—
|
|
|
1,422,885
|
|
|
—
|
|
|
1,422,885
|
|
|||||
Other
|
|
1,269
|
|
|
1,269
|
|
|
—
|
|
|
—
|
|
|
1,269
|
|
|||||
Total deposits
|
|
$
|
5,128,000
|
|
|
$
|
3,718,089
|
|
|
$
|
1,422,885
|
|
|
$
|
—
|
|
|
$
|
5,140,974
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
$
|
276,980
|
|
|
$
|
—
|
|
|
$
|
276,980
|
|
|
$
|
—
|
|
|
$
|
276,980
|
|
Long-term debt
|
|
786,602
|
|
|
—
|
|
|
827,500
|
|
|
—
|
|
|
827,500
|
|
|||||
Subordinated notes
|
|
45,000
|
|
|
—
|
|
|
42,995
|
|
|
—
|
|
|
42,995
|
|
|||||
Accrued interest payable – deposits
|
|
1,125
|
|
|
14
|
|
|
1,111
|
|
|
—
|
|
|
1,125
|
|
|||||
Accrued interest payable – debt/borrowings
|
|
1,426
|
|
|
3
|
|
|
1,423
|
|
|
—
|
|
|
1,426
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fair value swap
|
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
226
|
|
|
$
|
226
|
|
|
As of December 31, 2015
|
||||||||||
|
Leverage
|
|
Tier 1
Risk-Based
|
|
Common Equity Tier 1
|
|
Total
Risk-Based
|
||||
The Park National Bank
|
7.06
|
%
|
|
9.83
|
%
|
|
9.83
|
%
|
|
11.37
|
%
|
Park National Corporation
|
9.22
|
%
|
|
12.82
|
%
|
|
12.54
|
%
|
|
14.49
|
%
|
Adequately capitalized ratio
|
4.00
|
%
|
|
6.00
|
%
|
|
4.50
|
%
|
|
8.00
|
%
|
Adequately capitalized ratio plus capital conservation buffer
|
4.00
|
%
|
|
8.50
|
%
|
|
7.00
|
%
|
|
10.50
|
%
|
Well capitalized ratio (PNB only)
|
5.00
|
%
|
|
8.00
|
%
|
|
6.50
|
%
|
|
10.00
|
%
|
|
As of December 31, 2014
|
|||||||||
|
Leverage
|
|
Tier 1
Risk-Based
|
|
Common Equity Tier 1
|
|
Total
Risk-Based
|
|||
The Park National Bank
|
6.96
|
%
|
|
10.13
|
%
|
|
N/A
|
|
11.74
|
%
|
Park National Corporation
|
9.25
|
%
|
|
13.39
|
%
|
|
N/A
|
|
15.14
|
%
|
Adequately capitalized ratio
|
4.00
|
%
|
|
4.00
|
%
|
|
N/A
|
|
8.00
|
%
|
Well capitalized ratio (PNB only)
|
5.00
|
%
|
|
6.00
|
%
|
|
N/A
|
|
10.00
|
%
|
|
|
|
|
|
|
To Be Adequately Capitalized
|
|
To Be Well Capitalized
|
|||||||||||||
(In thousands)
|
|
Actual Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
At December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-Based Capital
(to risk-weighted assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
$
|
588,467
|
|
|
11.37
|
%
|
|
$
|
414,079
|
|
|
8.00
|
%
|
|
$
|
517,599
|
|
|
10.00
|
%
|
Park
|
|
758,988
|
|
|
14.49
|
%
|
|
419,080
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 Risk-Based Capital
(to risk-weighted assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
$
|
508,763
|
|
|
9.83
|
%
|
|
$
|
310,560
|
|
|
6.00
|
%
|
|
$
|
414,079
|
|
|
8.00
|
%
|
Park
|
|
671,664
|
|
|
12.82
|
%
|
|
314,310
|
|
|
6.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Leverage Ratio
(to average total assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
$
|
508,763
|
|
|
7.06
|
%
|
|
$
|
288,147
|
|
|
4.00
|
%
|
|
$
|
360,183
|
|
|
5.00
|
%
|
Park
|
|
671,664
|
|
|
9.22
|
%
|
|
291,449
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Common Equity Tier 1
(to risk-weighted assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
$
|
508,763
|
|
|
9.83
|
%
|
|
$
|
232,920
|
|
|
4.50
|
%
|
|
$
|
336,439
|
|
|
6.50
|
%
|
Park
|
|
656,664
|
|
|
12.54
|
%
|
|
235,732
|
|
|
4.50
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Risk-Based Capital
(to risk-weighted assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
$
|
563,188
|
|
|
11.74
|
%
|
|
$
|
383,634
|
|
|
8.00
|
%
|
|
$
|
479,542
|
|
|
10.00
|
%
|
Park
|
|
739,517
|
|
|
15.14
|
%
|
|
390,822
|
|
|
8.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 Risk-Based Capital
(to risk-weighted assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
$
|
485,943
|
|
|
10.13
|
%
|
|
$
|
191,817
|
|
|
4.00
|
%
|
|
$
|
287,725
|
|
|
6.00
|
%
|
Park
|
|
654,339
|
|
|
13.39
|
%
|
|
195,411
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Leverage Ratio
(to average total assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
$
|
485,943
|
|
|
6.96
|
%
|
|
$
|
279,210
|
|
|
4.00
|
%
|
|
$
|
349,013
|
|
|
5.00
|
%
|
Park
|
|
654,339
|
|
|
9.25
|
%
|
|
282,992
|
|
|
4.00
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Common Equity Tier 1
(to risk-weighted assets) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
PNB
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||
Park
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
|
2015
|
||||||||||||||||||||||
(In thousands)
|
|
Net Interest Income
|
|
Depreciation Expense
|
|
Other Expense
|
|
Income Taxes
|
|
Assets
|
|
Deposits
|
||||||||||||
Totals for reportable segments
|
|
$
|
227,393
|
|
|
$
|
7,347
|
|
|
$
|
169,295
|
|
|
$
|
37,238
|
|
|
$
|
7,299,098
|
|
|
$
|
5,451,920
|
|
Elimination of intersegment items
|
|
2,561
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13,557
|
)
|
|
(104,278
|
)
|
||||||
Parent Co. totals - not eliminated
|
|
(2,322
|
)
|
|
—
|
|
|
9,972
|
|
|
(4,671
|
)
|
|
25,813
|
|
|
—
|
|
||||||
Totals
|
|
$
|
227,632
|
|
|
$
|
7,347
|
|
|
$
|
179,267
|
|
|
$
|
32,567
|
|
|
$
|
7,311,354
|
|
|
$
|
5,347,642
|
|
|
|
2014
|
||||||||||||||||||||||
(In thousands)
|
|
Net Interest Income
|
|
Depreciation Expense
|
|
Other Expense
|
|
Income Taxes
|
|
Assets
|
|
Deposits
|
||||||||||||
Totals for reportable segments
|
|
$
|
227,056
|
|
|
$
|
7,243
|
|
|
$
|
172,267
|
|
|
$
|
41,246
|
|
|
$
|
6,994,456
|
|
|
$
|
5,228,649
|
|
Elimination of intersegment items
|
|
3,708
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,556
|
)
|
|
(100,649
|
)
|
||||||
Parent Co. totals - not eliminated
|
|
(5,720
|
)
|
|
—
|
|
|
8,000
|
|
|
(4,787
|
)
|
|
25,299
|
|
|
—
|
|
||||||
Totals
|
|
$
|
225,044
|
|
|
$
|
7,243
|
|
|
$
|
180,267
|
|
|
$
|
36,459
|
|
|
$
|
7,001,199
|
|
|
$
|
5,128,000
|
|
|
|
2013
|
||||||||||||||||||||||
(In thousands)
|
|
Net Interest Income
|
|
Depreciation Expense
|
|
Other Expense
|
|
Income Taxes
|
|
Assets
|
|
Deposits
|
||||||||||||
Totals for reportable segments
|
|
$
|
218,197
|
|
|
$
|
7,315
|
|
|
$
|
166,680
|
|
|
$
|
35,329
|
|
|
$
|
6,642,070
|
|
|
$
|
4,903,564
|
|
Elimination of intersegment items
|
|
8,659
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,369
|
)
|
|
(113,570
|
)
|
||||||
Parent Co. totals - not eliminated
|
|
(5,831
|
)
|
|
—
|
|
|
7,520
|
|
|
(2,826
|
)
|
|
24,722
|
|
|
—
|
|
||||||
Totals
|
|
$
|
221,025
|
|
|
$
|
7,315
|
|
|
$
|
174,200
|
|
|
$
|
32,503
|
|
|
$
|
6,636,423
|
|
|
$
|
4,789,994
|
|
Balance Sheets
|
||||||||
December 31, 2015 and 2014
|
||||||||
(In thousands)
|
|
2015
|
|
2014
|
||||
Assets:
|
|
|
|
|
||||
Cash
|
|
$
|
102,416
|
|
|
$
|
98,671
|
|
Investment in subsidiaries
|
|
613,383
|
|
|
599,855
|
|
||
Debentures receivable from PNB
|
|
25,000
|
|
|
25,000
|
|
||
Other investments
|
|
2,341
|
|
|
2,344
|
|
||
Other assets
|
|
23,443
|
|
|
23,260
|
|
||
Total assets
|
|
$
|
766,583
|
|
|
$
|
749,130
|
|
Liabilities:
|
|
|
|
|
||||
Subordinated notes
|
|
45,000
|
|
|
45,000
|
|
||
Other liabilities
|
|
8,228
|
|
|
7,589
|
|
||
Total liabilities
|
|
53,228
|
|
|
52,589
|
|
||
Total shareholders’ equity
|
|
713,355
|
|
|
696,541
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
766,583
|
|
|
$
|
749,130
|
|
Name of Subsidiary
|
|
Jurisdiction of Incorporation or Formation
|
|
|
|
|
|
The Park National Bank (“PNB”)
|
|
United States (federally-chartered national banking association)
|
|
|
|
|
|
•
|
Park Investments, Inc. (NOTE: is a wholly-owned subsidiary of PNB)
|
|
Delaware
|
|
|
|
|
•
|
Scope Leasing, Inc. (NOTE: is a wholly-owned subsidiary of PNB) [Also does business under “Scope Aircraft Finance”]
|
|
Ohio
|
|
|
|
|
•
|
River Park Properties, LLC (NOTE: is a wholly-owned subsidiary of PNB)
|
|
Ohio
|
|
|
|
|
•
|
Sunny Green, LLC (NOTE: is a wholly-owned subsidiary of PNB)
|
|
Ohio
|
|
|
|
|
•
|
The following are the divisions of PNB:
|
|
|
|
|
|
|
|
∗ Fairfield National Bank (also sometimes known as “Fairfield National Division”)
|
|
n/a
|
|
|
|
|
|
∗ The Park National Bank of Southwest Ohio & Northern Kentucky
|
|
n/a
|
|
|
|
|
|
∗ Century National Bank
|
|
n/a
|
|
|
|
|
|
∗ Second National Bank
|
|
n/a
|
|
|
|
|
|
∗ Richland Bank (also sometimes known as “The Richland Trust Company”)
|
|
n/a
|
|
|
|
|
|
∗ United Bank, N.A.
|
|
n/a
|
|
|
|
|
|
∗ First-Knox National Bank (also sometimes known as “The First-Knox National Bank of Mount Vernon”)
|
|
n/a
|
|
|
|
|
|
∗ Farmers Bank (also sometimes known as “Farmers and Savings”)
|
|
n/a
|
|
|
|
|
|
∗ Security National Bank (also sometimes known as “The Security National Bank and Trust Co.” or “Security National Bank & Trust Company”)
|
|
n/a
|
|
|
|
|
|
∗ Unity National Bank
|
|
n/a
|
|
|
|
|
Guardian Financial Services Company [Also does business under “Guardian Finance Company”]
|
|
Ohio
|
|
|
|
|
|
Name of Subsidiary
|
|
Jurisdiction of Incorporation or Formation
|
|
|
|
|
|
Park Title Agency, LLC. (
NOTE
: Park National Corporation holds 80% of ownership interest and other member, which is not a subsidiary of Park National Corporation, holds 20% of ownership interest)
|
|
Ohio
|
|
|
|
|
|
SE Property Holdings, LLC ("SEPH")
|
|
Ohio
|
|
|
|
|
|
•
|
Vision-Park Properties, L.L.C. (NOTE: SEPH is sole member)
|
|
Florida
|
|
|
|
|
•
|
87A Orange Beach, LLC (NOTE: SEPH is sole member)
|
|
Ohio
|
|
|
|
|
•
|
Morningside Holding, LLC (NOTE: SEPH is sole member)
|
|
Ohio
|
|
|
|
|
•
|
Swindall Holdings, LLC (NOTE: SEPH is sole member)
|
|
Ohio
|
|
|
|
|
•
|
Swindall Partnership Holdings, LLC (NOTE: SEPH is sole member)
|
|
Ohio
|
|
|
|
|
•
|
Marina Holdings Z, LLC (NOTE: SEPH is sole member)
|
|
Ohio
|
|
|
|
|
•
|
Marina Holding WE, LLC (NOTE: SEPH is sole member)
|
|
Ohio
|
|
|
|
|
Vision Bancshares Trust I (NOTE: Park holds all of the common securities as successor Depositor; floating rate preferred securities are held by institutional investors)
|
|
Delaware
|
/s/ David L. Trautman
|
David L. Trautman
|
/s/ C. Daniel DeLawder
|
C. Daniel DeLawder
|
/s/ Brady T. Burt
|
Brady T. Burt
|
/s/ Matthew R. Miller
|
Matthew R. Miller
|
/s/ Donna M. Alvarado
|
Donna M. Alvarado
|
/s/ Maureen Buchwald
|
Maureen Buchwald
|
/s/ James R. DeRoberts
|
James R. DeRoberts
|
/s/ F. William Englefield IV
|
F. William Englefield IV
|
/s/ Alicia J. Hupp
|
Alicia J. Hupp
|
/s/ Stephen J. Kambeitz
|
Stephen J. Kambeitz
|
/s/ Timothy S. McLain
|
Timothy S. McLain
|
/s/ Robert E. O'Neill
|
Robert E. O'Neill
|
/s/ Julia A. Sloat
|
Julia A. Sloat
|
/s/ Rick R. Taylor
|
Rick R. Taylor
|
/s/ Leon Zazworsky
|
Leon Zazworsky
|
1.
|
I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2015, of Park National 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 18, 2016
|
By:
|
/s/ David L. Trautman
|
|
|
|
|
Printed Name: David L. Trautman
|
|
|
|
|
|
Title: Chief Executive Officer and President
|
1.
|
I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2015, of Park National 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 18, 2016
|
By:
|
/s/ Brady T. Burt
|
|
|
|
|
Printed Name: Brady T. Burt
|
|
|
|
|
|
Title: Chief Financial Officer, Secretary, and Treasurer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company and its subsidiaries.
|
/s/ David L. Trautman
|
|
/s/ Brady T. Burt
|
David L. Trautman
|
|
Brady T. Burt
|
Chief Executive Officer and President (Principal Executive Officer)
|
|
Chief Financial Officer, Secretary, and Treasurer (Principal Financial Officer)
|
|
|
|
Dated: February 18, 2016
|
|
Dated: February 18, 2016
|
|