ý
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
VIRGINIA
|
54-1598552
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
|
Name of exchange on which registered
|
Common Stock, par value $1.33 per share
|
|
The NASDAQ Global Select Market
|
Large accelerated filer
|
ý
|
Accelerated filer
|
¨
|
|
|
|
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
ITEM
|
|
PAGE
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
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||
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|
|
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Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
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|
|
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Item 15.
|
||
Item 16.
|
||
|
Glossary of Defined Terms
|
||
|
|
|
AFS
|
–
|
Available for sale
|
ALCO
|
–
|
Asset Liability Committee
|
ALL
|
–
|
Allowance for loan losses
|
ASC
|
–
|
Accounting Standards Codification
|
ASU
|
–
|
Accounting Standards Update
|
ATM
|
–
|
Automated teller machine
|
the Bank
|
–
|
Union Bank & Trust
|
BOLI
|
–
|
Bank owned life insurance
|
BHCA
|
–
|
Bank Holding Company Act of 1956
|
CAMELS
|
–
|
International rating system bank supervisory authorities use to rate financial institutions.
|
CDARS
|
–
|
Certificates of Deposit Account Registry Service
|
CFPB
|
–
|
Consumer Financial Protection Bureau
|
bps
|
–
|
Basis points
|
the Company
|
–
|
Union Bankshares Corporation
|
CRA
|
–
|
Community Reinvestment Act of 1977
|
DIF
|
–
|
Deposit Insurance Fund
|
Dodd-Frank Act
|
–
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
EPS
|
–
|
Earnings per share
|
ESOP
|
–
|
Employee Stock Ownership Plan
|
Exchange Act
|
–
|
Securities Exchange Act of 1934
|
FASB
|
–
|
Financial Accounting Standards Board
|
FDIA
|
–
|
Federal Deposit Insurance Act
|
FDIC
|
–
|
Federal Deposit Insurance Corporation
|
FDICIA
|
–
|
Federal Deposit Insurance Corporation Improvement Act
|
Federal Reserve Bank
|
–
|
Federal Reserve Bank of Richmond
|
FHLB
|
–
|
Federal Home Loan Bank of Atlanta
|
FICO
|
–
|
Financing Corporation
|
FMB
|
–
|
First Market Bank, FSB
|
FRB or Federal Reserve
|
–
|
Board of Governors of the Federal Reserve System
|
FTE
|
–
|
Fully taxable equivalent
|
GAAP
|
–
|
Accounting principles generally accepted in the United States
|
HELOC
|
–
|
Home equity line of credit
|
HTM
|
–
|
Held to maturity
|
LIBOR
|
–
|
London Interbank Offered Rate
|
NPA
|
–
|
Nonperforming assets
|
ODCM
|
–
|
Old Dominion Capital Management, Inc.
|
OFAC
|
–
|
Office of Foreign Assets Control
|
OREO
|
–
|
Other real estate owned
|
OTTI
|
–
|
Other than temporary impairment
|
PCA
|
–
|
Prompt Corrective Action
|
PCI
|
–
|
Purchased credit impaired
|
SCC
|
–
|
Virginia State Corporation Commission
|
SEC
|
–
|
U.S. Securities and Exchange Commission
|
StellarOne
|
–
|
StellarOne Corporation
|
TDR
|
–
|
Troubled debt restructuring
|
•
|
changes in interest rates,
|
•
|
general economic and financial market conditions,
|
•
|
the Company’s ability to manage its growth or implement its growth strategy,
|
•
|
the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets,
|
•
|
levels of unemployment in the Bank’s lending area,
|
•
|
real estate values in the Bank’s lending area,
|
•
|
an insufficient ALL,
|
•
|
the quality or composition of the loan or investment portfolios,
|
•
|
concentrations of loans secured by real estate, particularly commercial real estate,
|
•
|
the effectiveness of the Company’s credit processes and management of the Company’s credit risk,
|
•
|
demand for loan products and financial services in the Company’s market area,
|
•
|
the Company’s ability to compete in the market for financial services,
|
•
|
technological risks and developments, and cyber attacks or events,
|
•
|
performance by the Company’s counterparties or vendors,
|
•
|
deposit flows,
|
•
|
the availability of financing and the terms thereof,
|
•
|
the level of prepayments on loans and mortgage-backed securities,
|
•
|
legislative or regulatory changes and requirements,
|
•
|
monetary and fiscal policies of the U.S. government including policies of the U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System, and
|
•
|
accounting principles and guidelines.
|
Community Bank
|
|
Union Bank & Trust
|
Richmond, Virginia
|
|
|
Financial Services Affiliates
|
|
Union Mortgage Group, Inc.
|
Glen Allen, Virginia
|
Union Insurance Group, LLC
|
Richmond, Virginia
|
Old Dominion Capital Management, Inc.
|
Charlottesville, Virginia
|
|
Formed
|
|
Acquired
|
|
Merged
|
Union Bank & Trust Company
|
1902
|
|
n/a
|
|
2010
|
Northern Neck State Bank
|
1909
|
|
1993
|
|
2010
|
King George State Bank
|
1974
|
|
1996
|
|
1999
|
Rappahannock National Bank
|
1902
|
|
1998
|
|
2010
|
Bay Community Bank
|
1999
|
|
de novo bank
|
|
2008
|
Guaranty Bank
|
1981
|
|
2004
|
|
2004
|
Prosperity Bank & Trust Company
|
1986
|
|
2006
|
|
2008
|
First Market Bank, FSB
|
2000
|
|
2010
|
|
2010
|
StellarOne Bank
|
1900
|
|
2014
|
|
2014
|
•
|
be required to perform annual stress tests;
|
•
|
be required to establish a dedicated risk committee of its board of directors responsible for overseeing its enterprise-risk management policies, commensurate with its capital structure, risk profile, complexity, size and other risk-related factors, and including as a member at least one risk management expert;
|
•
|
be required to calculate its FDIC deposits assessment base using a performance score and loss-severity score system;
|
•
|
be subject to more frequent regulatory examinations; and
|
•
|
may be subject to examination for compliance with federal consumer protection laws, primarily by the CFPB.
|
|
Period Ending
|
||||||||||||||||||||||
Index
|
12/31/2011
|
|
|
12/31/2012
|
|
|
12/31/2013
|
|
|
12/31/2014
|
|
|
12/31/2015
|
|
|
12/31/2016
|
|
||||||
Union Bankshares Corporation
|
$
|
100.00
|
|
|
$
|
121.76
|
|
|
$
|
196.56
|
|
|
$
|
195.39
|
|
|
$
|
210.82
|
|
|
$
|
307.66
|
|
NASDAQ Composite
|
100.00
|
|
|
117.45
|
|
|
164.57
|
|
|
188.84
|
|
|
201.98
|
|
|
219.89
|
|
||||||
NASDAQ Bank
|
100.00
|
|
|
118.69
|
|
|
168.21
|
|
|
176.48
|
|
|
192.08
|
|
|
265.02
|
|
||||||
SNL U.S. Bank NASDAQ
|
100.00
|
|
|
119.19
|
|
|
171.31
|
|
|
177.42
|
|
|
191.53
|
|
|
265.56
|
|
|
Sales Prices
|
|
Dividends
Declared
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
|
High
|
|
Low
|
|
High
|
|
Low
|
|
|
|
|
||||||||||||
First Quarter
|
$
|
25.48
|
|
|
$
|
20.57
|
|
|
$
|
24.23
|
|
|
$
|
19.92
|
|
|
$
|
0.19
|
|
|
$
|
0.15
|
|
Second Quarter
|
27.39
|
|
|
23.79
|
|
|
23.75
|
|
|
21.01
|
|
|
$
|
0.19
|
|
|
$
|
0.17
|
|
||||
Third Quarter
|
27.96
|
|
|
23.28
|
|
|
25.00
|
|
|
21.77
|
|
|
$
|
0.19
|
|
|
$
|
0.17
|
|
||||
Fourth Quarter
|
36.69
|
|
|
26.13
|
|
|
27.25
|
|
|
22.78
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.77
|
|
|
$
|
0.68
|
|
Period
|
Total number of shares
purchased
|
|
Average price paid per
share ($)
|
|
Approximate value of shares
that may be purchased under
the plan ($)
|
|||
January 1 - January 31, 2016
|
380,882
|
|
|
23.70
|
|
|
12,114,000
|
|
February 1 - February 28, 2016
|
553,566
|
|
|
21.99
|
|
|
24,942,000
|
|
March 1 - March 31, 2016
|
106,164
|
|
|
23.55
|
|
|
22,442,000
|
|
April 1 - April 30, 2016
|
102,144
|
|
|
24.48
|
|
|
19,942,000
|
|
May 1 - May 31, 2016
|
82,800
|
|
|
26.24
|
|
|
17,769,000
|
|
June 1 - June 30, 2016
|
87,000
|
|
|
26.21
|
|
|
15,489,000
|
|
July 1 - July 31, 2016
|
98,575
|
|
|
25.22
|
|
|
13,003,000
|
|
August 1 - August 31, 2016
|
—
|
|
|
—
|
|
|
13,003,000
|
|
September 1 - September 30, 2016
|
—
|
|
|
—
|
|
|
13,003,000
|
|
October 1 - October 31, 2016
|
—
|
|
|
—
|
|
|
13,003,000
|
|
November 1 - November 30, 2016
|
—
|
|
|
—
|
|
|
13,003,000
|
|
December 1 - December 31, 2016
|
—
|
|
|
—
|
|
|
13,003,000
|
|
Total common stock repurchases for the year ended December 31, 2016
|
1,411,131
|
|
|
23.48
|
|
|
|
|
|
2016
|
|
2015
|
|
2014
(1)
|
|
2013
(1)
|
|
2012
(1)
|
||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and dividend income
|
$
|
294,920
|
|
|
$
|
276,771
|
|
|
$
|
274,945
|
|
|
$
|
172,127
|
|
|
$
|
181,863
|
|
Interest expense
|
29,770
|
|
|
24,937
|
|
|
19,927
|
|
|
20,501
|
|
|
27,508
|
|
|||||
Net interest income
|
265,150
|
|
|
251,834
|
|
|
255,018
|
|
|
151,626
|
|
|
154,355
|
|
|||||
Provision for credit losses
|
9,100
|
|
|
9,571
|
|
|
7,800
|
|
|
6,056
|
|
|
12,200
|
|
|||||
Net interest income after provision for credit losses
|
256,050
|
|
|
242,263
|
|
|
247,218
|
|
|
145,570
|
|
|
142,155
|
|
|||||
Noninterest income
|
70,907
|
|
|
65,007
|
|
|
61,287
|
|
|
38,728
|
|
|
41,068
|
|
|||||
Noninterest expenses
|
222,703
|
|
|
216,882
|
|
|
238,216
|
|
|
137,047
|
|
|
133,390
|
|
|||||
Income before income taxes
|
104,254
|
|
|
90,388
|
|
|
70,289
|
|
|
47,251
|
|
|
49,833
|
|
|||||
Income tax expense
|
26,778
|
|
|
23,309
|
|
|
18,125
|
|
|
12,885
|
|
|
14,571
|
|
|||||
Net income
(2)
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
|
$
|
34,366
|
|
|
$
|
35,262
|
|
Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets
|
$
|
8,426,793
|
|
|
$
|
7,693,291
|
|
|
$
|
7,358,643
|
|
|
$
|
4,176,353
|
|
|
$
|
4,095,692
|
|
Loans held for investment, net of deferred fees and costs
|
6,307,060
|
|
|
5,671,462
|
|
|
5,345,996
|
|
|
3,039,368
|
|
|
2,966,847
|
|
|||||
Deposits
|
6,379,489
|
|
|
5,963,936
|
|
|
5,638,770
|
|
|
3,236,842
|
|
|
3,297,767
|
|
|||||
Securities available for sale, at fair value
|
946,764
|
|
|
903,292
|
|
|
1,102,114
|
|
|
677,348
|
|
|
585,382
|
|
|||||
Securities held to maturity, at carrying value
|
201,526
|
|
|
205,374
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loans held for sale
|
36,487
|
|
|
36,030
|
|
|
42,519
|
|
|
53,185
|
|
|
167,698
|
|
|||||
Allowance for loan losses
|
37,192
|
|
|
34,047
|
|
|
32,384
|
|
|
30,135
|
|
|
34,916
|
|
|||||
Tangible assets, net
(3)
|
8,108,000
|
|
|
7,376,459
|
|
|
7,033,366
|
|
|
4,104,973
|
|
|
4,020,481
|
|
|||||
Intangible assets, net
|
318,793
|
|
|
316,832
|
|
|
325,277
|
|
|
71,380
|
|
|
75,211
|
|
|||||
Total borrowings
|
990,089
|
|
|
680,175
|
|
|
686,935
|
|
|
463,314
|
|
|
329,395
|
|
|||||
Total liabilities
|
7,425,761
|
|
|
6,697,924
|
|
|
6,381,474
|
|
|
3,783,543
|
|
|
3,660,128
|
|
|||||
Common stockholders' equity
|
1,001,032
|
|
|
995,367
|
|
|
977,169
|
|
|
437,810
|
|
|
435,564
|
|
|||||
Tangible common stockholders' equity
(3)
|
682,239
|
|
|
678,535
|
|
|
651,892
|
|
|
366,430
|
|
|
360,353
|
|
|||||
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest margin
|
3.66
|
%
|
|
3.75
|
%
|
|
3.96
|
%
|
|
4.08
|
%
|
|
4.23
|
%
|
|||||
Net interest margin (FTE)
|
3.80
|
%
|
|
3.89
|
%
|
|
4.09
|
%
|
|
4.22
|
%
|
|
4.34
|
%
|
|||||
Return on average assets
(2)
|
0.96
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|
0.85
|
%
|
|
0.89
|
%
|
|||||
Return on average common stockholders' equity
(2)
|
7.79
|
%
|
|
6.76
|
%
|
|
5.30
|
%
|
|
7.89
|
%
|
|
8.10
|
%
|
|||||
Return on average tangible common stockholders' equity
(2)(3)
|
11.45
|
%
|
|
10.00
|
%
|
|
8.02
|
%
|
|
9.48
|
%
|
|
9.86
|
%
|
|||||
Efficiency ratio
|
66.27
|
%
|
|
68.45
|
%
|
|
75.31
|
%
|
|
72.00
|
%
|
|
68.26
|
%
|
|||||
Efficiency ratio (FTE)
(2)(3)
|
64.31
|
%
|
|
66.54
|
%
|
|
73.43
|
%
|
|
70.06
|
%
|
|
66.81
|
%
|
|||||
CET1 capital (to risk weighted assets)
|
9.72
|
%
|
|
10.55
|
%
|
|
11.20
|
%
|
|
11.26
|
%
|
|
11.27
|
%
|
|||||
Tier 1 capital (to risk weighted assets)
|
10.97
|
%
|
|
11.93
|
%
|
|
12.76
|
%
|
|
13.03
|
%
|
|
13.14
|
%
|
|||||
Total capital (to risk weighted assets)
|
13.56
|
%
|
|
12.46
|
%
|
|
13.38
|
%
|
|
14.16
|
%
|
|
14.57
|
%
|
|||||
Leverage Ratio
|
9.87
|
%
|
|
10.68
|
%
|
|
10.62
|
%
|
|
10.69
|
%
|
|
10.52
|
%
|
|||||
Common equity to total assets
|
11.88
|
%
|
|
12.94
|
%
|
|
13.28
|
%
|
|
10.48
|
%
|
|
10.63
|
%
|
|||||
Tangible common equity / tangible assets
(3)
|
8.41
|
%
|
|
9.20
|
%
|
|
9.27
|
%
|
|
8.93
|
%
|
|
8.96
|
%
|
|
2016
|
|
2015
|
|
2014
(1)
|
|
2013
(1)
|
|
2012
(1)
|
||||||||||
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
|
$
|
34,916
|
|
Nonaccrual loans
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
|
$
|
26,206
|
|
OREO
|
$
|
10,084
|
|
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
|
$
|
32,834
|
|
ALL / total outstanding loans
|
0.59
|
%
|
|
0.60
|
%
|
|
0.61
|
%
|
|
0.99
|
%
|
|
1.18
|
%
|
|||||
ALL / total outstanding loans, adjusted for acquisition accounting
(3)
|
0.86
|
%
|
|
0.98
|
%
|
|
1.08
|
%
|
|
1.10
|
%
|
|
1.35
|
%
|
|||||
Nonaccrual loans/total loans
|
0.16
|
%
|
|
0.21
|
%
|
|
0.36
|
%
|
|
0.49
|
%
|
|
0.88
|
%
|
|||||
ALL / nonaccrual loans
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|
200.43
|
%
|
|
133.24
|
%
|
|||||
NPAs / total outstanding loans
|
0.32
|
%
|
|
0.48
|
%
|
|
0.89
|
%
|
|
1.62
|
%
|
|
1.99
|
%
|
|||||
Net charge-offs / total average loans
|
0.09
|
%
|
|
0.14
|
%
|
|
0.11
|
%
|
|
0.36
|
%
|
|
0.58
|
%
|
|||||
Provision / total average loans
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.20
|
%
|
|
0.42
|
%
|
|||||
Per Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share, basic
(2)
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.13
|
|
|
$
|
1.38
|
|
|
$
|
1.36
|
|
Earnings per share, diluted
(2)
|
1.77
|
|
|
1.49
|
|
|
1.13
|
|
|
1.37
|
|
|
1.36
|
|
|||||
Cash dividends paid per share
|
0.77
|
|
|
0.68
|
|
|
0.58
|
|
|
0.54
|
|
|
0.37
|
|
|||||
Market value per share
|
35.74
|
|
|
25.24
|
|
|
24.08
|
|
|
24.81
|
|
|
15.77
|
|
|||||
Book value per share
|
23.15
|
|
|
22.38
|
|
|
21.73
|
|
|
17.63
|
|
|
17.29
|
|
|||||
Tangible book value per share
(3)
|
15.78
|
|
|
15.25
|
|
|
14.50
|
|
|
14.76
|
|
|
14.30
|
|
|||||
Price to earnings ratio, diluted
|
20.19
|
|
|
16.94
|
|
|
21.31
|
|
|
18.11
|
|
|
11.60
|
|
|||||
Price to book value ratio
|
1.54
|
|
|
1.13
|
|
|
1.11
|
|
|
1.41
|
|
|
0.91
|
|
|||||
Dividend payout ratio
|
43.50
|
%
|
|
45.64
|
%
|
|
51.33
|
%
|
|
39.42
|
%
|
|
27.21
|
%
|
|||||
Weighted average shares outstanding, basic
|
43,784,193
|
|
|
45,054,938
|
|
|
46,036,023
|
|
|
24,975,077
|
|
|
25,872,316
|
|
|||||
Weighted average shares outstanding, diluted
|
43,890,271
|
|
|
45,138,891
|
|
|
46,130,895
|
|
|
25,030,711
|
|
|
25,900,863
|
|
ENVIRONMENTAL FACTORS
|
||||
Portfolio
|
|
National / International
|
|
Local
|
Experience and ability of lending team
|
|
Interest rates
|
|
Level of economic activity
|
Compare ratio consideration
|
|
Inflation
|
|
Unemployment
|
Pace of loan growth
|
|
Unemployment
|
|
Competition
|
Footprint and expansion
|
|
Gross domestic product
|
|
Military/government impact
|
Execution of loan risk rating process
|
|
General market risk and other concerns
|
|
|
Degree of oversight
|
|
Legislative and regulatory environment
|
|
|
Underwriting standards
|
|
International uncertainty
|
|
|
Delinquency levels in portfolio
|
|
Home Price Index
|
|
|
Charge-off levels in portfolio
|
|
Commercial Real Estate Price Index
|
|
|
Credit concentrations / nature and volume of the portfolio
|
|
|
|
|
•
|
The Company reported net income of
$77.5 million
and earnings per share of
$1.77
for the year ended
December 31, 2016
. These results represent an increase of $10.4 million, or 15.5%, from
$67.1 million
and $0.28, or 18.8%, from earnings per share of
$1.49
for the year ended
December 31, 2015
.
|
•
|
The Company’s community banking segment reported net income of
$75.7 million
for the year ended
December 31, 2016
, an increase of $8.4 million from the prior year, and earnings per share of $1.73, an increase of $0.24 per share from the prior year.
|
•
|
The Company’s mortgage segment reported net income of
$1.8 million
, or $0.04 per share, an improvement of $2.0 million, from a net loss of $202,000 in the prior year.
|
•
|
The Company experienced continued improvement in asset quality. Nonaccrual loans, past due loans, and OREO balances declined from December 31, 2015.
|
•
|
Loans held for investment, net of deferred fees and costs, were
$6.3 billion
at
December 31, 2016
, an increase of $635.6 million, or 11.2%, from
December 31, 2015
. The increase was primarily driven by a combined growth of $535.5 million in commercial real estate, commercial and industrial, and consumer loans. Year-to-date average loan balances increased $468.8 million, or 8.5%, from the prior year.
|
•
|
Total deposits at
December 31, 2016
were
$6.4 billion
, an increase of $415.6 million, or 7.0%, when compared to
$6.0 billion
at
December 31, 2015
. The Company continued to experience a shift from time deposits into lower cost transaction accounts, specifically NOW and money market accounts, driven by the Company’s focus on acquiring low cost funding sources and customer preference for liquidity in response to current market conditions.
|
•
|
Total borrowings at December 31, 2016 were $990.1 million, an increase of $309.9 million, or 45.6%, when compared to $680.2 million at December 31, 2105. The increase was primarily driven by increases in short-term FHLB borrowings of $213.5 million. Additionally, the Company issued $150.0 million of long-term fixed-to-floating rate subordinated notes in the fourth quarter of 2016.
|
•
|
On May 31, 2016, the Company completed the acquisition of ODCM and recorded goodwill of
$4.7 million
and other amortizable intangible assets of
$4.5 million
.
|
•
|
Cash dividends per common share increased to $0.77 during 2016 from $0.68 per common share during 2015.
|
|
For the Year Ended
December 31,
|
|
|
||||||||||
|
2016
|
|
2015
|
|
Change
|
||||||||
|
(Dollars in thousands)
|
||||||||||||
Average interest-earning assets
|
$
|
7,249,090
|
|
|
$
|
6,713,239
|
|
|
$
|
535,851
|
|
|
|
Interest income (FTE)
(1)
|
$
|
305,164
|
|
|
$
|
285,850
|
|
|
$
|
19,314
|
|
|
|
Yield on interest-earning assets
|
4.21
|
%
|
|
4.26
|
%
|
|
(5
|
)
|
|
bps
|
|||
Average interest-bearing liabilities
|
$
|
5,600,174
|
|
|
$
|
5,147,689
|
|
|
$
|
452,485
|
|
|
|
Interest expense
|
$
|
29,770
|
|
|
$
|
24,937
|
|
|
$
|
4,833
|
|
|
|
Cost of interest-bearing liabilities
|
0.53
|
%
|
|
0.48
|
%
|
|
5
|
|
|
bps
|
|||
Cost of funds
|
0.41
|
%
|
|
0.37
|
%
|
|
4
|
|
|
bps
|
|||
Net interest income (FTE)
(1)
|
$
|
275,394
|
|
|
$
|
260,913
|
|
|
$
|
14,481
|
|
|
|
Net interest margin (FTE)
(1)
|
3.80
|
%
|
|
3.89
|
%
|
|
(9
|
)
|
|
bps
|
|||
Core net interest margin (FTE)
(1) (2)
|
3.72
|
%
|
|
3.79
|
%
|
|
(7
|
)
|
|
bps
|
|
For the Year Ended
December 31, |
|
|
||||||||||
|
2015
|
|
2014
|
|
Change
|
||||||||
|
(Dollars in thousands)
|
||||||||||||
Average interest-earning assets
|
$
|
6,713,239
|
|
|
$
|
6,437,681
|
|
|
$
|
275,558
|
|
|
|
Interest income (FTE)
(1)
|
$
|
285,850
|
|
|
$
|
283,072
|
|
|
$
|
2,778
|
|
|
|
Yield on interest-earning assets
|
4.26
|
%
|
|
4.40
|
%
|
|
(14
|
)
|
|
bps
|
|||
Average interest-bearing liabilities
|
$
|
5,147,689
|
|
|
$
|
5,047,550
|
|
|
$
|
100,139
|
|
|
|
Interest expense
|
$
|
24,937
|
|
|
$
|
19,927
|
|
|
$
|
5,010
|
|
|
|
Cost of interest-bearing liabilities
|
0.48
|
%
|
|
0.39
|
%
|
|
9
|
|
|
bps
|
|||
Cost of funds
|
0.37
|
%
|
|
0.31
|
%
|
|
6
|
|
|
bps
|
|||
Net interest income (FTE)
(1)
|
$
|
260,913
|
|
|
$
|
263,145
|
|
|
$
|
(2,232
|
)
|
|
|
Net interest margin (FTE)
(1)
|
3.89
|
%
|
|
4.09
|
%
|
|
(20
|
)
|
|
bps
|
|||
Core net interest margin (FTE)
(1) (2)
|
3.79
|
%
|
|
3.93
|
%
|
|
(14
|
)
|
|
bps
|
|
For the Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
Income /
Expense (1)
|
|
Yield /
Rate (1)(2)
|
|
Average
Balance
|
|
Interest
Income / Expense (1) |
|
Yield /
Rate (1)(2) |
|
Average
Balance
|
|
Interest
Income / Expense (1) |
|
Yield /
Rate (1)(2) |
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
$
|
754,287
|
|
|
$
|
18,319
|
|
|
2.43
|
%
|
|
$
|
717,816
|
|
|
$
|
15,606
|
|
|
2.17
|
%
|
|
$
|
722,600
|
|
|
$
|
15,226
|
|
|
2.11
|
%
|
Tax-exempt
|
448,405
|
|
|
21,216
|
|
|
4.73
|
%
|
|
426,000
|
|
|
20,744
|
|
|
4.87
|
%
|
|
402,402
|
|
|
20,451
|
|
|
5.08
|
%
|
||||||
Total securities
|
1,202,692
|
|
|
39,535
|
|
|
3.29
|
%
|
|
1,143,816
|
|
|
36,350
|
|
|
3.18
|
%
|
|
1,125,002
|
|
|
35,677
|
|
|
3.17
|
%
|
||||||
Loans, net
(3) (4)
|
5,956,125
|
|
|
264,197
|
|
|
4.44
|
%
|
|
5,487,367
|
|
|
248,021
|
|
|
4.52
|
%
|
|
5,235,471
|
|
|
245,529
|
|
|
4.69
|
%
|
||||||
Other earning assets
|
90,273
|
|
|
1,432
|
|
|
1.59
|
%
|
|
82,056
|
|
|
1,479
|
|
|
1.80
|
%
|
|
77,208
|
|
|
1,866
|
|
|
2.42
|
%
|
||||||
Total earning assets
|
7,249,090
|
|
|
$
|
305,164
|
|
|
4.21
|
%
|
|
6,713,239
|
|
|
$
|
285,850
|
|
|
4.26
|
%
|
|
6,437,681
|
|
|
$
|
283,072
|
|
|
4.40
|
%
|
|||
Allowance for loan losses
|
(36,034
|
)
|
|
|
|
|
|
|
|
(32,779
|
)
|
|
|
|
|
|
|
|
(31,288
|
)
|
|
|
|
|
|
|
||||||
Total non-earning assets
|
833,249
|
|
|
|
|
|
|
|
|
812,435
|
|
|
|
|
|
|
|
|
844,101
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
8,046,305
|
|
|
|
|
|
|
|
|
$
|
7,492,895
|
|
|
|
|
|
|
|
|
$
|
7,250,494
|
|
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transaction and money market accounts
|
$
|
2,952,625
|
|
|
$
|
6,327
|
|
|
0.21
|
%
|
|
$
|
2,676,012
|
|
|
$
|
5,032
|
|
|
0.19
|
%
|
|
$
|
2,568,425
|
|
|
$
|
4,714
|
|
|
0.18
|
%
|
Regular savings
|
592,215
|
|
|
850
|
|
|
0.14
|
%
|
|
564,265
|
|
|
1,021
|
|
|
0.18
|
%
|
|
552,756
|
|
|
1,063
|
|
|
0.19
|
%
|
||||||
Time deposits (5)
|
1,177,732
|
|
|
10,554
|
|
|
0.90
|
%
|
|
1,231,593
|
|
|
9,500
|
|
|
0.77
|
%
|
|
1,390,308
|
|
|
5,257
|
|
|
0.38
|
%
|
||||||
Total interest-bearing deposits
|
4,722,572
|
|
|
17,731
|
|
|
0.38
|
%
|
|
4,471,870
|
|
|
15,553
|
|
|
0.35
|
%
|
|
4,511,489
|
|
|
11,034
|
|
|
0.24
|
%
|
||||||
Other borrowings (6)
|
877,602
|
|
|
12,039
|
|
|
1.37
|
%
|
|
675,819
|
|
|
9,384
|
|
|
1.39
|
%
|
|
536,061
|
|
|
8,893
|
|
|
1.66
|
%
|
||||||
Total interest-bearing liabilities
|
5,600,174
|
|
|
$
|
29,770
|
|
|
0.53
|
%
|
|
5,147,689
|
|
|
$
|
24,937
|
|
|
0.48
|
%
|
|
5,047,550
|
|
|
$
|
19,927
|
|
|
0.39
|
%
|
|||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand deposits
|
1,388,216
|
|
|
|
|
|
|
|
|
1,296,343
|
|
|
|
|
|
|
|
|
1,164,032
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
63,130
|
|
|
|
|
|
|
|
|
56,886
|
|
|
|
|
|
|
|
|
55,185
|
|
|
|
|
|
|
|
||||||
Total liabilities
|
7,051,520
|
|
|
|
|
|
|
|
|
6,500,918
|
|
|
|
|
|
|
|
|
6,266,767
|
|
|
|
|
|
|
|
||||||
Stockholders' equity
|
994,785
|
|
|
|
|
|
|
|
|
991,977
|
|
|
|
|
|
|
|
|
983,727
|
|
|
|
|
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
8,046,305
|
|
|
|
|
|
|
|
|
$
|
7,492,895
|
|
|
|
|
|
|
|
|
$
|
7,250,494
|
|
|
|
|
|
|
|
|||
Net interest income
|
|
|
|
$275,394
|
|
|
|
|
|
|
|
$260,913
|
|
|
|
|
|
|
|
$
|
263,145
|
|
|
|
|
|||||||
Interest rate spread
|
|
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
3.78
|
%
|
|
|
|
|
|
|
|
4.01
|
%
|
||||||
Cost of funds
|
|
|
|
|
|
|
0.41
|
%
|
|
|
|
|
|
|
|
0.37
|
%
|
|
|
|
|
|
|
|
0.31
|
%
|
||||||
Net interest margin
(7)
|
|
|
|
|
|
|
3.80
|
%
|
|
|
|
|
|
|
|
3.89
|
%
|
|
|
|
|
|
|
|
4.09
|
%
|
|
2016 vs. 2015
Increase (Decrease) Due to Change in:
|
|
2015 vs. 2014
Increase (Decrease) Due to Change in:
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
$
|
821
|
|
|
$
|
1,892
|
|
|
$
|
2,713
|
|
|
$
|
(101
|
)
|
|
$
|
481
|
|
|
$
|
380
|
|
Tax-exempt
|
1,071
|
|
|
(599
|
)
|
|
472
|
|
|
1,170
|
|
|
(877
|
)
|
|
293
|
|
||||||
Total securities
|
1,892
|
|
|
1,293
|
|
|
3,185
|
|
|
1,069
|
|
|
(396
|
)
|
|
673
|
|
||||||
Loans, net
(1)
|
20,864
|
|
|
(4,688
|
)
|
|
16,176
|
|
|
11,569
|
|
|
(9,077
|
)
|
|
2,492
|
|
||||||
Other earning assets
|
139
|
|
|
(186
|
)
|
|
(47
|
)
|
|
(206
|
)
|
|
(181
|
)
|
|
(387
|
)
|
||||||
Total earning assets
|
$
|
22,895
|
|
|
$
|
(3,581
|
)
|
|
$
|
19,314
|
|
|
$
|
12,432
|
|
|
$
|
(9,654
|
)
|
|
$
|
2,778
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transaction and money market accounts
|
$
|
550
|
|
|
$
|
745
|
|
|
$
|
1,295
|
|
|
$
|
200
|
|
|
$
|
118
|
|
|
$
|
318
|
|
Regular savings
|
49
|
|
|
(220
|
)
|
|
(171
|
)
|
|
22
|
|
|
(64
|
)
|
|
(42
|
)
|
||||||
Time deposits (2)
|
(430
|
)
|
|
1,484
|
|
|
1,054
|
|
|
(662
|
)
|
|
4,905
|
|
|
4,243
|
|
||||||
Total interest-bearing deposits
|
169
|
|
|
2,009
|
|
|
2,178
|
|
|
(440
|
)
|
|
4,959
|
|
|
4,519
|
|
||||||
Other borrowings (3)
|
2,770
|
|
|
(115
|
)
|
|
2,655
|
|
|
2,086
|
|
|
(1,595
|
)
|
|
491
|
|
||||||
Total interest-bearing liabilities
|
2,939
|
|
|
1,894
|
|
|
4,833
|
|
|
1,646
|
|
|
3,364
|
|
|
5,010
|
|
||||||
Change in net interest income
|
$
|
19,956
|
|
|
$
|
(5,475
|
)
|
|
$
|
14,481
|
|
|
$
|
10,786
|
|
|
$
|
(13,018
|
)
|
|
$
|
(2,232
|
)
|
|
Accretion (Amortization)
|
|
|
||||||||||||
|
Loans
|
|
Certificates of
Deposit
|
|
Borrowings
|
|
Total
|
||||||||
For the year ended December 31, 2014
|
$
|
586
|
|
|
$
|
8,914
|
|
|
$
|
550
|
|
|
$
|
10,050
|
|
For the year ended December 31, 2015
|
4,355
|
|
|
1,843
|
|
|
424
|
|
|
6,622
|
|
||||
For the year ended December 31, 2016
|
5,218
|
|
|
—
|
|
|
458
|
|
|
5,676
|
|
||||
For the years ending:
|
|
|
|
|
|
|
|
|
|
|
|
||||
2017
|
4,657
|
|
|
—
|
|
|
170
|
|
|
4,827
|
|
||||
2018
|
4,120
|
|
|
—
|
|
|
(143
|
)
|
|
3,977
|
|
||||
2019
|
3,320
|
|
|
—
|
|
|
(286
|
)
|
|
3,034
|
|
||||
2020
|
2,810
|
|
|
—
|
|
|
(301
|
)
|
|
2,509
|
|
||||
2021
|
2,236
|
|
|
—
|
|
|
(316
|
)
|
|
1,920
|
|
||||
Thereafter
|
8,461
|
|
|
—
|
|
|
(5,306
|
)
|
|
3,155
|
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
$
|
19,496
|
|
|
$
|
18,904
|
|
|
$
|
592
|
|
|
3.1
|
%
|
Other service charges, commissions and fees
|
17,175
|
|
|
15,575
|
|
|
1,600
|
|
|
10.3
|
%
|
|||
Fiduciary and asset management fees
|
10,199
|
|
|
9,141
|
|
|
1,058
|
|
|
11.6
|
%
|
|||
Mortgage banking income, net
|
10,953
|
|
|
9,767
|
|
|
1,186
|
|
|
12.1
|
%
|
|||
Gains on securities transactions, net
|
205
|
|
|
1,486
|
|
|
(1,281
|
)
|
|
(86.2
|
)%
|
|||
Other-than-temporary impairment losses
|
—
|
|
|
(300
|
)
|
|
300
|
|
|
100.0
|
%
|
|||
BOLI income
|
5,513
|
|
|
4,593
|
|
|
920
|
|
|
20.0
|
%
|
|||
Loan-related interest rate swap fees
|
4,254
|
|
|
412
|
|
|
3,842
|
|
|
932.5
|
%
|
|||
Other operating income
|
3,112
|
|
|
5,429
|
|
|
(2,317
|
)
|
|
(42.7
|
)%
|
|||
Total noninterest income
|
$
|
70,907
|
|
|
$
|
65,007
|
|
|
$
|
5,900
|
|
|
9.1
|
%
|
Mortgage segment operations
|
$
|
(12,008
|
)
|
|
$
|
(10,044
|
)
|
|
$
|
(1,964
|
)
|
|
(19.6
|
)%
|
Intercompany eliminations
|
606
|
|
|
682
|
|
|
(76
|
)
|
|
(11.1
|
)%
|
|||
Community bank segment
|
$
|
59,505
|
|
|
$
|
55,645
|
|
|
$
|
3,860
|
|
|
6.9
|
%
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
18,904
|
|
|
17,721
|
|
|
$
|
1,183
|
|
|
6.7
|
%
|
||
Other service charges, commissions and fees
|
15,575
|
|
|
14,983
|
|
|
592
|
|
|
4.0
|
%
|
|||
Fiduciary and asset management fees
|
9,141
|
|
|
9,036
|
|
|
105
|
|
|
1.2
|
%
|
|||
Mortgage banking income, net
|
9,767
|
|
|
9,707
|
|
|
60
|
|
|
0.6
|
%
|
|||
Other-than-temporary impairment losses
|
1,486
|
|
|
1,695
|
|
|
(209
|
)
|
|
(12.3
|
)%
|
|||
Gains on securities transactions, net
|
(300
|
)
|
|
—
|
|
|
(300
|
)
|
|
NM
|
|
|||
BOLI income
|
4,593
|
|
|
4,648
|
|
|
(55
|
)
|
|
(1.2
|
)%
|
|||
Loan-related interest rate swap fees
|
412
|
|
|
293
|
|
|
119
|
|
|
40.6
|
%
|
|||
Other operating income
|
5,429
|
|
|
3,204
|
|
|
2,225
|
|
|
69.4
|
%
|
|||
Total noninterest income
|
$
|
65,007
|
|
|
$
|
61,287
|
|
|
$
|
3,720
|
|
|
6.1
|
%
|
Mortgage segment operations
|
$
|
(10,044
|
)
|
|
$
|
(10,091
|
)
|
|
$
|
47
|
|
|
0.5
|
%
|
Intercompany eliminations
|
682
|
|
|
682
|
|
|
—
|
|
|
—
|
%
|
|||
Community bank segment
|
$
|
55,645
|
|
|
$
|
51,878
|
|
|
$
|
3,767
|
|
|
7.3
|
%
|
NM - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2016
|
|
2015
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
$
|
117,103
|
|
|
$
|
104,192
|
|
|
$
|
12,911
|
|
|
12.4
|
%
|
Occupancy expenses
|
19,528
|
|
|
20,053
|
|
|
(525
|
)
|
|
(2.6
|
)%
|
|||
Furniture and equipment expenses
|
10,475
|
|
|
11,674
|
|
|
(1,199
|
)
|
|
(10.3
|
)%
|
|||
Printing, postage, and supplies
|
4,692
|
|
|
5,124
|
|
|
(432
|
)
|
|
(8.4
|
)%
|
|||
Communications expense
|
3,850
|
|
|
4,634
|
|
|
(784
|
)
|
|
(16.9
|
)%
|
|||
Technology and data processing
|
15,368
|
|
|
13,667
|
|
|
1,701
|
|
|
12.4
|
%
|
|||
Professional services
|
8,085
|
|
|
6,309
|
|
|
1,776
|
|
|
28.2
|
%
|
|||
Marketing and advertising expense
|
7,784
|
|
|
7,215
|
|
|
569
|
|
|
7.9
|
%
|
|||
FDIC assessment premiums and other insurance
|
5,406
|
|
|
5,376
|
|
|
30
|
|
|
0.6
|
%
|
|||
Other taxes
|
5,456
|
|
|
6,227
|
|
|
(771
|
)
|
|
(12.4
|
)%
|
|||
Loan-related expenses
|
4,790
|
|
|
4,097
|
|
|
693
|
|
|
16.9
|
%
|
|||
OREO and credit-related expenses
(1)
|
2,602
|
|
|
8,911
|
|
|
(6,309
|
)
|
|
(70.8
|
)%
|
|||
Amortization of intangible assets
|
7,210
|
|
|
8,445
|
|
|
(1,235
|
)
|
|
(14.6
|
)%
|
|||
Training and other personnel costs
|
3,435
|
|
|
3,675
|
|
|
(240
|
)
|
|
(6.5
|
)%
|
|||
Other operating expenses
|
6,919
|
|
|
7,283
|
|
|
(364
|
)
|
|
(5.0
|
)%
|
|||
Total noninterest expense
|
$
|
222,703
|
|
|
$
|
216,882
|
|
|
$
|
5,821
|
|
|
2.7
|
%
|
Mortgage segment operations
|
$
|
(10,535
|
)
|
|
$
|
(11,571
|
)
|
|
$
|
1,036
|
|
|
9.0
|
%
|
Intercompany eliminations
|
606
|
|
|
682
|
|
|
(76
|
)
|
|
(11.1
|
)%
|
|||
Community bank segment
|
$
|
212,774
|
|
|
$
|
205,993
|
|
|
$
|
6,781
|
|
|
3.3
|
%
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2015
|
|
2014
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
$
|
104,192
|
|
|
$
|
107,804
|
|
|
$
|
(3,612
|
)
|
|
(3.4
|
)%
|
Occupancy expenses
|
20,053
|
|
|
20,136
|
|
|
(83
|
)
|
|
(0.4
|
)%
|
|||
Furniture and equipment expenses
|
11,674
|
|
|
11,872
|
|
|
(198
|
)
|
|
(1.7
|
)%
|
|||
Printing, postage, and supplies
|
5,124
|
|
|
4,924
|
|
|
200
|
|
|
4.1
|
%
|
|||
Communications expense
|
4,634
|
|
|
4,902
|
|
|
(268
|
)
|
|
(5.5
|
)%
|
|||
Technology and data processing
|
13,667
|
|
|
12,465
|
|
|
1,202
|
|
|
9.6
|
%
|
|||
Professional services
|
6,309
|
|
|
5,594
|
|
|
715
|
|
|
12.8
|
%
|
|||
Marketing and advertising expense
|
7,215
|
|
|
6,406
|
|
|
809
|
|
|
12.6
|
%
|
|||
FDIC assessment premiums and other insurance
|
5,376
|
|
|
6,125
|
|
|
(749
|
)
|
|
(12.2
|
)%
|
|||
Other taxes
|
6,227
|
|
|
5,784
|
|
|
443
|
|
|
7.7
|
%
|
|||
Loan-related expenses
|
4,097
|
|
|
3,469
|
|
|
628
|
|
|
18.1
|
%
|
|||
OREO and credit-related expenses
(1)
|
8,911
|
|
|
10,164
|
|
|
(1,253
|
)
|
|
(12.3
|
)%
|
|||
Amortization of intangible assets
|
8,445
|
|
|
9,795
|
|
|
(1,350
|
)
|
|
(13.8
|
)%
|
|||
Training and other personnel costs
|
3,675
|
|
|
2,893
|
|
|
782
|
|
|
27.0
|
%
|
|||
Acquisition-related expenses
|
—
|
|
|
20,345
|
|
|
(20,345
|
)
|
|
(100.0
|
)%
|
|||
Other operating expenses
|
7,283
|
|
|
5,538
|
|
|
1,745
|
|
|
31.5
|
%
|
|||
Total noninterest expense
|
$
|
216,882
|
|
|
$
|
238,216
|
|
|
$
|
(21,334
|
)
|
|
(9.0
|
)%
|
Mortgage segment operations
|
$
|
(11,571
|
)
|
|
$
|
(16,587
|
)
|
|
$
|
5,016
|
|
|
30.2
|
%
|
Intercompany eliminations
|
682
|
|
|
682
|
|
|
—
|
|
|
—
|
%
|
|||
Community bank segment
|
$
|
205,993
|
|
|
$
|
222,311
|
|
|
$
|
(16,318
|
)
|
|
(7.3
|
)%
|
|
December 31,
2016
|
|
December 31,
2015
|
||||
Available for Sale:
|
|
|
|
|
|
||
Obligations of states and political subdivisions
|
$
|
275,890
|
|
|
$
|
268,079
|
|
Corporate and other bonds
|
121,780
|
|
|
75,979
|
|
||
Mortgage-backed securities
|
535,286
|
|
|
548,171
|
|
||
Other securities
|
13,808
|
|
|
11,063
|
|
||
Total securities available for sale, at fair value
|
946,764
|
|
|
903,292
|
|
||
Held to Maturity:
|
|
|
|
|
|
||
Obligations of states and political subdivisions, at carrying value
|
201,526
|
|
|
205,374
|
|
||
Restricted Stock:
|
|
|
|
||||
Federal Reserve Bank stock
|
23,808
|
|
|
23,808
|
|
||
FHLB stock
|
36,974
|
|
|
28,020
|
|
||
Total restricted stock, at cost
|
60,782
|
|
|
51,828
|
|
||
Total investments
|
$
|
1,209,072
|
|
|
$
|
1,160,494
|
|
|
1 Year or Less
|
|
1 - 5 Years
|
|
5 - 10 Years
|
|
Over 10 Years
|
|
Total
|
||||||||||
Mortgage backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
—
|
|
|
$
|
51,545
|
|
|
$
|
165,232
|
|
|
$
|
319,254
|
|
|
$
|
536,031
|
|
Fair value
|
$
|
—
|
|
|
$
|
51,346
|
|
|
$
|
164,378
|
|
|
$
|
319,562
|
|
|
$
|
535,286
|
|
Weighted average yield
(1)
|
—
|
|
|
1.99
|
|
|
2.22
|
|
|
2.45
|
|
|
2.34
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
10,018
|
|
|
$
|
56,131
|
|
|
$
|
73,999
|
|
|
$
|
133,859
|
|
|
$
|
274,007
|
|
Fair value
|
$
|
10,209
|
|
|
$
|
57,910
|
|
|
$
|
75,666
|
|
|
$
|
132,105
|
|
|
$
|
275,890
|
|
Weighted average yield
(1)
|
6.32
|
|
|
4.65
|
|
|
4.59
|
|
|
3.94
|
|
|
4.36
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate bonds and other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Amortized cost
|
$
|
11,385
|
|
|
$
|
522
|
|
|
$
|
61,321
|
|
|
$
|
64,331
|
|
|
$
|
137,559
|
|
Fair value
|
$
|
11,308
|
|
|
$
|
522
|
|
|
$
|
61,844
|
|
|
$
|
61,914
|
|
|
$
|
135,588
|
|
Weighted average yield
(1)
|
1.30
|
|
|
1.24
|
|
|
4.45
|
|
|
2.25
|
|
|
3.15
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
21,403
|
|
|
$
|
108,198
|
|
|
$
|
300,552
|
|
|
$
|
517,444
|
|
|
$
|
947,597
|
|
Fair value
|
$
|
21,517
|
|
|
$
|
109,778
|
|
|
$
|
301,888
|
|
|
$
|
513,581
|
|
|
$
|
946,764
|
|
Weighted average yield
(1)
|
3.65
|
|
|
3.37
|
|
|
3.26
|
|
|
2.81
|
|
|
3.04
|
|
|
1 Year or Less
|
|
1 - 5 Years
|
|
5 - 10 Years
|
|
Over 10 Years
|
|
Total
|
||||||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying Value
|
$
|
4,403
|
|
|
$
|
28,383
|
|
|
$
|
51,730
|
|
|
$
|
117,010
|
|
|
$
|
201,526
|
|
Fair value
|
$
|
4,440
|
|
|
$
|
28,763
|
|
|
$
|
51,522
|
|
|
$
|
117,590
|
|
|
$
|
202,315
|
|
Weighted average yield
(1)
|
2.80
|
|
|
2.96
|
|
|
3.06
|
|
|
3.82
|
|
|
3.48
|
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||
Construction and Land Development
|
$
|
751,131
|
|
|
11.9
|
%
|
|
$
|
749,720
|
|
|
13.2
|
%
|
|
$
|
656,380
|
|
|
12.3
|
%
|
|
$
|
470,684
|
|
|
15.5
|
%
|
|
$
|
470,638
|
|
|
15.9
|
%
|
Commercial Real Estate - Owner Occupied
|
857,805
|
|
|
13.6
|
%
|
|
860,086
|
|
|
15.2
|
%
|
|
869,200
|
|
|
16.3
|
%
|
|
503,318
|
|
|
16.6
|
%
|
|
513,518
|
|
|
17.3
|
%
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
1,564,295
|
|
|
24.8
|
%
|
|
1,270,480
|
|
|
22.3
|
%
|
|
1,183,514
|
|
|
22.0
|
%
|
|
591,133
|
|
|
19.4
|
%
|
|
530,878
|
|
|
17.9
|
%
|
|||||
Multifamily Real Estate
|
334,276
|
|
|
5.3
|
%
|
|
322,528
|
|
|
5.7
|
%
|
|
297,366
|
|
|
5.6
|
%
|
|
146,433
|
|
|
4.8
|
%
|
|
140,038
|
|
|
4.7
|
%
|
|||||
Commercial & Industrial
|
551,526
|
|
|
8.7
|
%
|
|
435,365
|
|
|
7.7
|
%
|
|
374,096
|
|
|
7.0
|
%
|
|
194,809
|
|
|
6.4
|
%
|
|
186,528
|
|
|
6.3
|
%
|
|||||
Residential 1-4 Family
|
1,029,547
|
|
|
16.3
|
%
|
|
978,469
|
|
|
17.3
|
%
|
|
983,074
|
|
|
18.4
|
%
|
|
510,579
|
|
|
16.8
|
%
|
|
512,910
|
|
|
17.3
|
%
|
|||||
Auto
|
262,071
|
|
|
4.2
|
%
|
|
234,061
|
|
|
4.1
|
%
|
|
207,813
|
|
|
3.9
|
%
|
|
179,976
|
|
|
5.9
|
%
|
|
164,066
|
|
|
5.5
|
%
|
|||||
HELOC
|
526,884
|
|
|
8.4
|
%
|
|
516,726
|
|
|
9.1
|
%
|
|
523,341
|
|
|
9.8
|
%
|
|
302,965
|
|
|
10.0
|
%
|
|
307,668
|
|
|
10.4
|
%
|
|||||
Consumer and all other
|
429,525
|
|
|
6.8
|
%
|
|
304,027
|
|
|
5.4
|
%
|
|
251,212
|
|
|
4.7
|
%
|
|
139,471
|
|
|
4.6
|
%
|
|
140,603
|
|
|
4.7
|
%
|
|||||
Total loans held for investment
|
$
|
6,307,060
|
|
|
100.0
|
%
|
|
$
|
5,671,462
|
|
|
100.0
|
%
|
|
$
|
5,345,996
|
|
|
100.0
|
%
|
|
$
|
3,039,368
|
|
|
100.0
|
%
|
|
$
|
2,966,847
|
|
|
100.0
|
%
|
|
|
|
|
|
Variable Rate
|
|
Fixed Rate
|
||||||||||||||||||||||||
|
Total
Maturities
|
|
Less than 1
year
|
|
Total
|
|
1-5 years
|
|
More than 5
years
|
|
Total
|
|
1-5 years
|
|
More than 5
years
|
||||||||||||||||
Construction and Land Development
|
$
|
751,131
|
|
|
$
|
455,017
|
|
|
$
|
175,393
|
|
|
$
|
146,337
|
|
|
$
|
29,056
|
|
|
$
|
120,721
|
|
|
$
|
97,963
|
|
|
$
|
22,758
|
|
Commercial Real Estate - Owner Occupied
|
857,805
|
|
|
102,831
|
|
|
254,318
|
|
|
46,648
|
|
|
207,670
|
|
|
500,656
|
|
|
346,702
|
|
|
153,954
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
1,564,295
|
|
|
142,308
|
|
|
526,982
|
|
|
183,897
|
|
|
343,085
|
|
|
895,005
|
|
|
651,474
|
|
|
243,531
|
|
||||||||
Multifamily Real Estate
|
334,276
|
|
|
22,219
|
|
|
117,531
|
|
|
27,346
|
|
|
90,185
|
|
|
194,526
|
|
|
160,600
|
|
|
33,926
|
|
||||||||
Commercial & Industrial
|
551,526
|
|
|
169,959
|
|
|
163,769
|
|
|
119,571
|
|
|
44,198
|
|
|
217,798
|
|
|
139,503
|
|
|
78,295
|
|
||||||||
Residential 1-4 Family
|
1,029,547
|
|
|
78,524
|
|
|
349,607
|
|
|
14,431
|
|
|
335,176
|
|
|
601,416
|
|
|
327,432
|
|
|
273,984
|
|
||||||||
Auto
|
262,071
|
|
|
2,237
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
259,834
|
|
|
125,552
|
|
|
134,282
|
|
||||||||
HELOC
|
526,884
|
|
|
34,291
|
|
|
492,287
|
|
|
40,356
|
|
|
451,931
|
|
|
306
|
|
|
187
|
|
|
119
|
|
||||||||
Consumer and all other
|
429,525
|
|
|
38,583
|
|
|
46,820
|
|
|
13,333
|
|
|
33,487
|
|
|
344,122
|
|
|
120,349
|
|
|
223,773
|
|
||||||||
Total loans held for investment
|
$
|
6,307,060
|
|
|
$
|
1,045,969
|
|
|
$
|
2,126,707
|
|
|
$
|
591,919
|
|
|
$
|
1,534,788
|
|
|
$
|
3,134,384
|
|
|
$
|
1,969,762
|
|
|
$
|
1,164,622
|
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Nonaccrual loans, excluding PCI loans
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
|
$
|
26,206
|
|
Foreclosed properties
|
7,430
|
|
|
11,994
|
|
|
23,058
|
|
|
34,116
|
|
|
32,834
|
|
|||||
Former bank premises
|
2,654
|
|
|
3,305
|
|
|
5,060
|
|
|
—
|
|
|
—
|
|
|||||
Total nonperforming assets
|
20,057
|
|
|
27,235
|
|
|
47,373
|
|
|
49,151
|
|
|
59,040
|
|
|||||
Loans past due 90 days and accruing interest
|
3,005
|
|
|
5,829
|
|
|
10,047
|
|
|
6,746
|
|
|
8,843
|
|
|||||
Total nonperforming assets and loans past due 90 days and accruing interest
|
$
|
23,062
|
|
|
$
|
33,064
|
|
|
$
|
57,420
|
|
|
$
|
55,897
|
|
|
$
|
67,883
|
|
Performing restructurings
|
$
|
13,967
|
|
|
$
|
10,780
|
|
|
$
|
22,829
|
|
|
$
|
34,520
|
|
|
$
|
51,468
|
|
PCI loans
|
59,292
|
|
|
73,737
|
|
|
105,788
|
|
|
3,622
|
|
|
4,565
|
|
|||||
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan losses
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
|
$
|
34,916
|
|
Average loans, net of deferred fees and costs
|
5,956,125
|
|
|
5,487,367
|
|
|
5,235,471
|
|
|
2,985,733
|
|
|
2,875,916
|
|
|||||
Loans, net of deferred fees and costs
|
6,307,060
|
|
|
5,671,462
|
|
|
5,345,996
|
|
|
3,039,368
|
|
|
2,966,847
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NPAs to total loans
|
0.32
|
%
|
|
0.48
|
%
|
|
0.89
|
%
|
|
1.62
|
%
|
|
1.99
|
%
|
|||||
NPAs & loans 90 days past due to total loans
|
0.37
|
%
|
|
0.58
|
%
|
|
1.07
|
%
|
|
1.84
|
%
|
|
2.29
|
%
|
|||||
NPAs to total loans & OREO
|
0.32
|
%
|
|
0.48
|
%
|
|
0.88
|
%
|
|
1.60
|
%
|
|
1.97
|
%
|
|||||
NPAs & loans 90 days past due to total loans & OREO
|
0.37
|
%
|
|
0.58
|
%
|
|
1.07
|
%
|
|
1.82
|
%
|
|
2.26
|
%
|
|||||
ALL to nonaccrual loans
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|
200.43
|
%
|
|
133.24
|
%
|
|||||
ALL to nonaccrual loans & loans 90 days past due
|
286.58
|
%
|
|
191.65
|
%
|
|
110.52
|
%
|
|
138.35
|
%
|
|
99.62
|
%
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Beginning Balance
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
|
$
|
26,206
|
|
|
$
|
44,834
|
|
Net customer payments
|
(7,159
|
)
|
|
(10,240
|
)
|
|
(8,053
|
)
|
|
(12,393
|
)
|
|
(13,624
|
)
|
|||||
Additions
|
13,171
|
|
|
12,517
|
|
|
20,961
|
|
|
16,725
|
|
|
10,265
|
|
|||||
Charge-offs
|
(4,418
|
)
|
|
(7,064
|
)
|
|
(2,732
|
)
|
|
(8,743
|
)
|
|
(8,510
|
)
|
|||||
Loans returning to accruing status
|
(2,390
|
)
|
|
(1,497
|
)
|
|
(3,492
|
)
|
|
(2,718
|
)
|
|
(3,455
|
)
|
|||||
Transfers to OREO
|
(1,167
|
)
|
|
(1,035
|
)
|
|
(2,464
|
)
|
|
(4,042
|
)
|
|
(3,304
|
)
|
|||||
Ending Balance
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
|
$
|
26,206
|
|
Nonaccrual loans to total loans
|
0.16
|
%
|
|
0.21
|
%
|
|
0.36
|
%
|
|
0.49
|
%
|
|
0.88
|
%
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Construction and Land Development
|
$
|
2,037
|
|
|
$
|
2,113
|
|
|
$
|
3,419
|
|
|
$
|
4,156
|
|
|
$
|
15,108
|
|
Commercial Real Estate - Owner Occupied
|
794
|
|
|
3,904
|
|
|
1,060
|
|
|
2,037
|
|
|
2,206
|
|
|||||
Commercial Real Estate - Non-owner Occupied
|
—
|
|
|
100
|
|
|
5,903
|
|
|
175
|
|
|
812
|
|
|||||
Commercial & Industrial
|
124
|
|
|
429
|
|
|
2,754
|
|
|
3,475
|
|
|
1,139
|
|
|||||
Residential 1-4 Family
|
5,279
|
|
|
3,563
|
|
|
5,144
|
|
|
4,488
|
|
|
4,560
|
|
|||||
Auto
|
169
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HELOC
|
1,279
|
|
|
1,348
|
|
|
604
|
|
|
416
|
|
|
2,223
|
|
|||||
Consumer and All Other
|
291
|
|
|
287
|
|
|
371
|
|
|
288
|
|
|
158
|
|
|||||
Total
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
|
$
|
26,206
|
|
Coverage Ratio
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|
200.43
|
%
|
|
133.24
|
%
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Beginning Balance
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
|
$
|
32,834
|
|
|
$
|
32,263
|
|
Additions
|
2,062
|
|
|
4,602
|
|
|
20,872
|
|
|
9,542
|
|
|
14,274
|
|
|||||
Capitalized Improvements
|
—
|
|
|
308
|
|
|
686
|
|
|
561
|
|
|
381
|
|
|||||
Valuation Adjustments
|
(1,017
|
)
|
|
(6,002
|
)
|
|
(7,646
|
)
|
|
(791
|
)
|
|
(301
|
)
|
|||||
Proceeds from sales
|
(6,602
|
)
|
|
(11,987
|
)
|
|
(21,291
|
)
|
|
(7,569
|
)
|
|
(13,152
|
)
|
|||||
Gains (losses) from sales
|
342
|
|
|
260
|
|
|
1,381
|
|
|
(461
|
)
|
|
(631
|
)
|
|||||
Ending Balance
|
$
|
10,084
|
|
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
|
$
|
32,834
|
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Land
|
$
|
3,328
|
|
|
$
|
5,731
|
|
|
$
|
8,726
|
|
|
$
|
10,310
|
|
|
$
|
8,657
|
|
Land Development
|
2,379
|
|
|
2,918
|
|
|
7,162
|
|
|
10,904
|
|
|
10,886
|
|
|||||
Residential Real Estate
|
1,549
|
|
|
2,601
|
|
|
5,736
|
|
|
7,379
|
|
|
7,939
|
|
|||||
Commercial Real Estate
|
174
|
|
|
744
|
|
|
1,434
|
|
|
5,523
|
|
|
5,352
|
|
|||||
Former Bank Premises
(1)
|
2,654
|
|
|
3,305
|
|
|
5,060
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
10,084
|
|
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
|
$
|
32,834
|
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Balance, beginning of year
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
|
$
|
34,916
|
|
|
$
|
39,470
|
|
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
1,920
|
|
|
2,361
|
|
|
1,557
|
|
|
3,080
|
|
|
1,439
|
|
|||||
Real estate
|
4,125
|
|
|
7,158
|
|
|
5,855
|
|
|
8,596
|
|
|
14,127
|
|
|||||
Consumer
|
2,510
|
|
|
2,016
|
|
|
1,608
|
|
|
1,942
|
|
|
2,899
|
|
|||||
Total loans charged-off
|
8,555
|
|
|
11,535
|
|
|
9,020
|
|
|
13,618
|
|
|
18,465
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
483
|
|
|
958
|
|
|
316
|
|
|
746
|
|
|
207
|
|
|||||
Real estate
|
1,781
|
|
|
2,154
|
|
|
2,314
|
|
|
1,125
|
|
|
465
|
|
|||||
Consumer
|
761
|
|
|
815
|
|
|
839
|
|
|
910
|
|
|
1,039
|
|
|||||
Total recoveries
|
3,025
|
|
|
3,927
|
|
|
3,469
|
|
|
2,781
|
|
|
1,711
|
|
|||||
Net charge-offs
|
5,530
|
|
|
7,608
|
|
|
5,551
|
|
|
10,837
|
|
|
16,754
|
|
|||||
Provision for loan losses
|
8,675
|
|
|
9,271
|
|
|
7,800
|
|
|
6,056
|
|
|
12,200
|
|
|||||
Balance, end of year
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
|
$
|
34,916
|
|
ALL to loans
|
0.59
|
%
|
|
0.60
|
%
|
|
0.61
|
%
|
|
0.99
|
%
|
|
1.18
|
%
|
|||||
ALL to loans, adjusted for acquisition accounting (Non-GAAP)
|
0.86
|
%
|
|
0.98
|
%
|
|
1.08
|
%
|
|
1.10
|
%
|
|
1.35
|
%
|
|||||
Net charge-offs to average loans
|
0.09
|
%
|
|
0.14
|
%
|
|
0.11
|
%
|
|
0.36
|
%
|
|
0.58
|
%
|
|||||
Provision to average loans
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.20
|
%
|
|
0.42
|
%
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||||||||||
|
$
|
|
%(1)
|
|
$
|
|
%(1)
|
|
$
|
|
%(1)
|
|
$
|
|
%(1)
|
||||||||||||
Commercial
|
$
|
4,627
|
|
|
8.7
|
%
|
|
$
|
3,163
|
|
|
7.7
|
%
|
|
$
|
2,610
|
|
|
7.0
|
%
|
|
$
|
2,021
|
|
|
6.4
|
%
|
Real estate
|
29,441
|
|
|
80.3
|
%
|
|
27,537
|
|
|
82.8
|
%
|
|
26,408
|
|
|
84.4
|
%
|
|
24,584
|
|
|
83.1
|
%
|
||||
Consumer
|
3,124
|
|
|
11.0
|
%
|
|
3,347
|
|
|
9.5
|
%
|
|
3,366
|
|
|
8.6
|
%
|
|
3,530
|
|
|
10.5
|
%
|
||||
Total
|
$
|
37,192
|
|
|
100.0
|
%
|
|
$
|
34,047
|
|
|
100.0
|
%
|
|
$
|
32,384
|
|
|
100.0
|
%
|
|
$
|
30,135
|
|
|
100.0
|
%
|
|
2016
|
|
2015
|
||||||||||
Deposits:
|
Amount
|
|
% of total
deposits
|
|
Amount
|
|
% of total
deposits
|
||||||
Non-interest bearing
|
$
|
1,393,625
|
|
|
21.8
|
%
|
|
$
|
1,372,937
|
|
|
23.0
|
%
|
NOW accounts
|
1,765,956
|
|
|
27.7
|
%
|
|
1,521,906
|
|
|
25.5
|
%
|
||
Money market accounts
|
1,435,591
|
|
|
22.5
|
%
|
|
1,312,612
|
|
|
22.0
|
%
|
||
Savings accounts
|
591,742
|
|
|
9.3
|
%
|
|
572,800
|
|
|
9.6
|
%
|
||
Time deposits of $100,000 and over
|
530,275
|
|
|
8.3
|
%
|
|
514,286
|
|
|
8.7
|
%
|
||
Other time deposits
|
662,300
|
|
|
10.4
|
%
|
|
669,395
|
|
|
11.2
|
%
|
||
Total Deposits
|
$
|
6,379,489
|
|
|
100.0
|
%
|
|
$
|
5,963,936
|
|
|
100.0
|
%
|
|
Within 3
Months
|
|
3 - 12
Months
|
|
Over 12
Months
|
|
Total
|
||||||||
Maturities of time deposits of $100,000 and over
|
$
|
54,024
|
|
|
$
|
122,254
|
|
|
$
|
353,997
|
|
|
$
|
530,275
|
|
Maturities of other time deposits
|
92,451
|
|
|
195,155
|
|
|
374,694
|
|
|
662,300
|
|
||||
Total time deposits
|
$
|
146,475
|
|
|
$
|
317,409
|
|
|
$
|
728,691
|
|
|
$
|
1,192,575
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Common equity Tier 1 capital
|
$
|
699,728
|
|
|
$
|
691,195
|
|
|
N/A
|
|
|
Tier 1 capital
|
790,228
|
|
|
781,695
|
|
|
$
|
734,755
|
|
||
Tier 2 capital
|
185,917
|
|
|
34,346
|
|
|
35,830
|
|
|||
Total risk-based capital
|
976,145
|
|
|
816,041
|
|
|
770,585
|
|
|||
Risk-weighted assets
|
7,200,778
|
|
|
6,551,028
|
|
|
5,758,071
|
|
|||
|
|
|
|
|
|
||||||
Capital ratios:
|
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital ratio
|
9.72
|
%
|
|
10.55
|
%
|
|
N/A
|
|
|||
Tier 1 capital ratio
|
10.97
|
%
|
|
11.93
|
%
|
|
12.76
|
%
|
|||
Total capital ratio
|
13.56
|
%
|
|
12.46
|
%
|
|
13.38
|
%
|
|||
Leverage ratio (Tier 1 capital to average assets)
|
9.87
|
%
|
|
10.68
|
%
|
|
10.62
|
%
|
|||
Capital conservation buffer ratio
(1)
|
4.97
|
%
|
|
N/A
|
|
|
N/A
|
|
|||
Common equity to total assets
|
11.88
|
%
|
|
12.94
|
%
|
|
13.28
|
%
|
|||
Tangible common equity to tangible assets
|
8.41
|
%
|
|
9.20
|
%
|
|
9.27
|
%
|
|
2016
|
|
2015
|
||||
Commitments with off-balance sheet risk:
|
|
|
|
|
|
||
Commitments to extend credit
(1)
|
$
|
1,924,885
|
|
|
$
|
1,557,350
|
|
Standby letters of credit
|
84,212
|
|
|
139,371
|
|
||
Total commitments with off-balance sheet risk
|
$
|
2,009,097
|
|
|
$
|
1,696,721
|
|
|
Total
|
|
Less than 1
year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5
years
|
||||||||||
Long-term debt
(1)
|
$
|
340,000
|
|
|
$
|
10,000
|
|
|
$
|
40,000
|
|
|
$
|
—
|
|
|
$
|
290,000
|
|
Trust preferred capital notes
(1)
|
93,301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93,301
|
|
|||||
Operating leases
|
33,036
|
|
|
6,418
|
|
|
11,234
|
|
|
8,304
|
|
|
7,080
|
|
|||||
Other short-term borrowings
|
517,500
|
|
|
517,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Repurchase agreements
|
59,281
|
|
|
59,281
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
1,043,118
|
|
|
$
|
593,199
|
|
|
$
|
51,234
|
|
|
$
|
8,304
|
|
|
$
|
390,381
|
|
|
Change In Net Interest Income
December 31,
|
||||||||||
|
2016
|
|
2015
|
||||||||
|
%
|
|
$
|
|
%
|
|
$
|
||||
Change in Yield Curve:
|
|
|
|
|
|
|
|
|
|
|
|
+300 bps
|
11.73
|
|
|
34,485
|
|
|
6.53
|
|
|
17,813
|
|
+200 bps
|
7.98
|
|
|
23,459
|
|
|
4.51
|
|
|
12,304
|
|
+100 bps
|
4.10
|
|
|
12,058
|
|
|
2.11
|
|
|
5,745
|
|
Most likely rate scenario
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
-100 bps
|
(4.14
|
)
|
|
(12,162
|
)
|
|
(1.92
|
)
|
|
(5,248
|
)
|
-200 bps
|
(7.57
|
)
|
|
(22,257
|
)
|
|
(5.03
|
)
|
|
(13,708
|
)
|
-300 bps
|
(8.34
|
)
|
|
(24,515
|
)
|
|
(5.34
|
)
|
|
(14,564
|
)
|
|
Change In Economic Value of Equity
December 31,
|
||||||||||
|
2016
|
|
2015
|
||||||||
|
%
|
|
$
|
|
%
|
|
$
|
||||
Change in Yield Curve:
|
|
|
|
|
|
|
|
|
|
|
|
+300 bps
|
2.43
|
|
|
35,121
|
|
|
(0.70
|
)
|
|
(9,740
|
)
|
+200 bps
|
2.13
|
|
|
30,752
|
|
|
0.28
|
|
|
3,875
|
|
+100 bps
|
1.43
|
|
|
20,715
|
|
|
0.71
|
|
|
9,942
|
|
Most likely rate scenario
|
|
|
|
|
—
|
|
|
—
|
|
||
-100 bps
|
(3.61
|
)
|
|
(52,094
|
)
|
|
(3.25
|
)
|
|
(45,240
|
)
|
-200 bps
|
(9.93
|
)
|
|
(143,307
|
)
|
|
(8.91
|
)
|
|
(124,214
|
)
|
-300 bps
|
(13.28
|
)
|
|
(191,720
|
)
|
|
(9.91
|
)
|
|
(138,143
|
)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
ALL
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
|
$
|
34,916
|
|
Remaining fair value mark on acquired performing loans
|
16,939
|
|
|
20,819
|
|
|
24,340
|
|
|
3,341
|
|
|
5,350
|
|
|||||
Adjusted ALL
|
$
|
54,131
|
|
|
$
|
54,866
|
|
|
$
|
56,724
|
|
|
$
|
33,476
|
|
|
$
|
40,266
|
|
Loans, net of deferred fees and costs
|
$
|
6,307,060
|
|
|
$
|
5,671,462
|
|
|
$
|
5,345,996
|
|
|
$
|
3,039,368
|
|
|
$
|
2,966,847
|
|
Remaining fair value mark on acquired performing loans
|
16,939
|
|
|
20,819
|
|
|
24,340
|
|
|
3,341
|
|
|
5,350
|
|
|||||
Less: PCI loans, net of fair value mark
|
59,292
|
|
|
73,737
|
|
|
105,788
|
|
|
3,622
|
|
|
4,565
|
|
|||||
Adjusted loans, net of deferred fees and costs
|
$
|
6,264,707
|
|
|
$
|
5,618,544
|
|
|
$
|
5,264,548
|
|
|
$
|
3,039,087
|
|
|
$
|
2,967,632
|
|
ALL ratio
|
0.59
|
%
|
|
0.60
|
%
|
|
0.61
|
%
|
|
0.99
|
%
|
|
1.18
|
%
|
|||||
ALL ratio, adjusted for acquisition accounting
|
0.86
|
%
|
|
0.98
|
%
|
|
1.08
|
%
|
|
1.10
|
%
|
|
1.35
|
%
|
|
Quarter
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
For the Year 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income
|
$
|
70,749
|
|
|
$
|
72,781
|
|
|
$
|
74,433
|
|
|
$
|
76,957
|
|
Interest expense
|
7,018
|
|
|
7,005
|
|
|
7,405
|
|
|
8,342
|
|
||||
Net interest income
|
63,731
|
|
|
65,776
|
|
|
67,028
|
|
|
68,615
|
|
||||
Provision for credit losses
|
2,604
|
|
|
2,300
|
|
|
2,472
|
|
|
1,723
|
|
||||
Net interest income after provision for credit losses
|
61,127
|
|
|
63,476
|
|
|
64,556
|
|
|
66,892
|
|
||||
Noninterest income
|
15,914
|
|
|
17,993
|
|
|
18,950
|
|
|
18,050
|
|
||||
Noninterest expenses
|
54,272
|
|
|
55,251
|
|
|
56,913
|
|
|
56,267
|
|
||||
Income before income taxes
|
22,769
|
|
|
26,218
|
|
|
26,593
|
|
|
28,675
|
|
||||
Income tax expense
|
5,808
|
|
|
6,881
|
|
|
6,192
|
|
|
7,899
|
|
||||
Net income
|
$
|
16,961
|
|
|
$
|
19,337
|
|
|
$
|
20,401
|
|
|
$
|
20,776
|
|
Earnings per share, basic
|
$
|
0.38
|
|
|
$
|
0.44
|
|
|
$
|
0.47
|
|
|
$
|
0.48
|
|
Earnings per share, diluted
|
$
|
0.38
|
|
|
$
|
0.44
|
|
|
$
|
0.47
|
|
|
$
|
0.48
|
|
Basic weighted average number of common shares outstanding
|
44,251,276
|
|
|
43,746,583
|
|
|
43,565,937
|
|
|
43,577,634
|
|
||||
Diluted weighted average number of common shares outstanding
|
44,327,229
|
|
|
43,824,183
|
|
|
43,754,915
|
|
|
43,659,416
|
|
||||
For the Year 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income
|
$
|
67,600
|
|
|
$
|
69,854
|
|
|
$
|
70,000
|
|
|
$
|
69,317
|
|
Interest expense
|
5,631
|
|
|
6,038
|
|
|
6,556
|
|
|
6,712
|
|
||||
Net interest income
|
61,969
|
|
|
63,816
|
|
|
63,444
|
|
|
62,605
|
|
||||
Provision for credit losses
|
1,750
|
|
|
3,749
|
|
|
2,062
|
|
|
2,010
|
|
||||
Net interest income after provision for credit losses
|
60,219
|
|
|
60,067
|
|
|
61,382
|
|
|
60,595
|
|
||||
Noninterest income
|
15,054
|
|
|
16,212
|
|
|
16,725
|
|
|
17,016
|
|
||||
Noninterest expenses
|
53,840
|
|
|
55,241
|
|
|
53,325
|
|
|
54,476
|
|
||||
Income before income taxes
|
21,433
|
|
|
21,038
|
|
|
24,782
|
|
|
23,135
|
|
||||
Income tax expense
|
5,732
|
|
|
5,690
|
|
|
6,566
|
|
|
5,321
|
|
||||
Net income
|
$
|
15,701
|
|
|
$
|
15,348
|
|
|
$
|
18,216
|
|
|
$
|
17,814
|
|
Earnings per share, basic
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
Earnings per share, diluted
|
$
|
0.35
|
|
|
$
|
0.34
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
Basic weighted average number of common shares outstanding
|
45,105,969
|
|
|
45,128,698
|
|
|
45,087,409
|
|
|
44,899,629
|
|
||||
Diluted weighted average number of common shares outstanding
|
45,187,516
|
|
|
45,209,814
|
|
|
45,171,610
|
|
|
44,988,577
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||
CONSOLIDATED BALANCE SHEETS
|
|||||||
AS OF DECEMBER 31, 2016 AND 2015
|
|||||||
(Dollars in thousands, except share data)
|
|||||||
|
2016
|
|
2015
|
||||
ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents:
|
|
|
|
|
|
||
Cash and due from banks
|
$
|
120,758
|
|
|
$
|
111,323
|
|
Interest-bearing deposits in other banks
|
58,030
|
|
|
29,670
|
|
||
Federal funds sold
|
449
|
|
|
1,667
|
|
||
Total cash and cash equivalents
|
179,237
|
|
|
142,660
|
|
||
Securities available for sale, at fair value
|
946,764
|
|
|
903,292
|
|
||
Securities held to maturity, at carrying value
|
201,526
|
|
|
205,374
|
|
||
Restricted stock, at cost
|
60,782
|
|
|
51,828
|
|
||
Loans held for sale, at fair value
|
36,487
|
|
|
36,030
|
|
||
Loans held for investment, net of deferred fees and costs
|
6,307,060
|
|
|
5,671,462
|
|
||
Less allowance for loan losses
|
37,192
|
|
|
34,047
|
|
||
Net loans held for investment
|
6,269,868
|
|
|
5,637,415
|
|
||
Premises and equipment, net
|
122,027
|
|
|
126,028
|
|
||
Other real estate owned, net of valuation allowance
|
10,084
|
|
|
15,299
|
|
||
Goodwill
|
298,191
|
|
|
293,522
|
|
||
Amortizable intangibles, net
|
20,602
|
|
|
23,310
|
|
||
Bank owned life insurance
|
179,318
|
|
|
173,687
|
|
||
Other assets
|
101,907
|
|
|
84,846
|
|
||
Total assets
|
$
|
8,426,793
|
|
|
$
|
7,693,291
|
|
LIABILITIES
|
|
|
|
|
|
||
Noninterest-bearing demand deposits
|
$
|
1,393,625
|
|
|
$
|
1,372,937
|
|
Interest-bearing deposits
|
4,985,864
|
|
|
4,590,999
|
|
||
Total deposits
|
6,379,489
|
|
|
5,963,936
|
|
||
Securities sold under agreements to repurchase
|
59,281
|
|
|
84,977
|
|
||
Other short-term borrowings
|
517,500
|
|
|
304,000
|
|
||
Long-term borrowings
|
413,308
|
|
|
291,198
|
|
||
Other liabilities
|
56,183
|
|
|
53,813
|
|
||
Total liabilities
|
7,425,761
|
|
|
6,697,924
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 43,609,317 shares and 44,785,674 shares, respectively.
|
57,506
|
|
|
59,159
|
|
||
Additional paid-in capital
|
605,397
|
|
|
631,822
|
|
||
Retained earnings
|
341,938
|
|
|
298,134
|
|
||
Accumulated other comprehensive income
|
(3,809
|
)
|
|
6,252
|
|
||
Total stockholders' equity
|
1,001,032
|
|
|
995,367
|
|
||
Total liabilities and stockholders' equity
|
$
|
8,426,793
|
|
|
$
|
7,693,291
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||
YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014
|
|||||||||||
(Dollars in thousands, except per share amounts)
|
|||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|||
Interest and fees on loans
|
$
|
262,567
|
|
|
$
|
247,587
|
|
|
$
|
246,366
|
|
Interest on deposits in other banks
|
244
|
|
|
94
|
|
|
60
|
|
|||
Interest and dividends on securities:
|
|
|
|
|
|
|
|
|
|||
Taxable
|
18,319
|
|
|
15,606
|
|
|
15,226
|
|
|||
Nontaxable
|
13,790
|
|
|
13,484
|
|
|
13,293
|
|
|||
Total interest and dividend income
|
294,920
|
|
|
276,771
|
|
|
274,945
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest on deposits
|
17,731
|
|
|
15,553
|
|
|
11,034
|
|
|||
Interest on short-term borrowings
|
2,894
|
|
|
944
|
|
|
566
|
|
|||
Interest on long-term borrowings
|
9,145
|
|
|
8,440
|
|
|
8,327
|
|
|||
Total interest expense
|
29,770
|
|
|
24,937
|
|
|
19,927
|
|
|||
Net interest income
|
265,150
|
|
|
251,834
|
|
|
255,018
|
|
|||
Provision for credit losses
|
9,100
|
|
|
9,571
|
|
|
7,800
|
|
|||
Net interest income after provision for credit losses
|
256,050
|
|
|
242,263
|
|
|
247,218
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
19,496
|
|
|
18,904
|
|
|
17,721
|
|
|||
Other service charges, commissions and fees
|
17,175
|
|
|
15,575
|
|
|
14,983
|
|
|||
Fiduciary and asset management fees
|
10,199
|
|
|
9,141
|
|
|
9,036
|
|
|||
Mortgage banking income, net
|
10,953
|
|
|
9,767
|
|
|
9,707
|
|
|||
Gains on securities transactions, net
|
205
|
|
|
1,486
|
|
|
1,695
|
|
|||
Other-than-temporary impairment losses
|
—
|
|
|
(300
|
)
|
|
—
|
|
|||
Bank owned life insurance income
|
5,513
|
|
|
4,593
|
|
|
4,648
|
|
|||
Loan-related interest rate swap fees
|
4,254
|
|
|
412
|
|
|
293
|
|
|||
Other operating income
|
3,112
|
|
|
5,429
|
|
|
3,204
|
|
|||
Total noninterest income
|
70,907
|
|
|
65,007
|
|
|
61,287
|
|
|||
Noninterest expenses:
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
117,103
|
|
|
104,192
|
|
|
107,804
|
|
|||
Occupancy expenses
|
19,528
|
|
|
20,053
|
|
|
20,136
|
|
|||
Furniture and equipment expenses
|
10,475
|
|
|
11,674
|
|
|
11,872
|
|
|||
Printing, postage, and supplies
|
4,692
|
|
|
5,124
|
|
|
4,924
|
|
|||
Communications expense
|
3,850
|
|
|
4,634
|
|
|
4,902
|
|
|||
Technology and data processing
|
15,368
|
|
|
13,667
|
|
|
12,465
|
|
|||
Professional services
|
8,085
|
|
|
6,309
|
|
|
5,594
|
|
|||
Marketing and advertising expense
|
7,784
|
|
|
7,215
|
|
|
6,406
|
|
|||
FDIC assessment premiums and other insurance
|
5,406
|
|
|
5,376
|
|
|
6,125
|
|
|||
Other taxes
|
5,456
|
|
|
6,227
|
|
|
5,784
|
|
|||
Loan-related expenses
|
4,790
|
|
|
4,097
|
|
|
3,469
|
|
|||
OREO and credit-related expenses
|
2,602
|
|
|
8,911
|
|
|
10,164
|
|
|||
Amortization of intangible assets
|
7,210
|
|
|
8,445
|
|
|
9,795
|
|
|||
Training and other personnel costs
|
3,435
|
|
|
3,675
|
|
|
2,893
|
|
|||
Acquisition and conversion costs
|
—
|
|
|
—
|
|
|
20,345
|
|
|||
Other expenses
|
6,919
|
|
|
7,283
|
|
|
5,538
|
|
|||
Total noninterest expenses
|
222,703
|
|
|
216,882
|
|
|
238,216
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
104,254
|
|
|
90,388
|
|
|
70,289
|
|
|||
Income tax expense
|
26,778
|
|
|
23,309
|
|
|
18,125
|
|
|||
Net income
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Basic earnings per common share
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.13
|
|
Diluted earnings per common share
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.13
|
|
Dividends declared per common share
|
$
|
0.77
|
|
|
$
|
0.68
|
|
|
$
|
0.58
|
|
Basic weighted average number of common shares outstanding
|
43,784,193
|
|
|
45,054,938
|
|
|
46,036,023
|
|
|||
Diluted weighted average number of common shares outstanding
|
43,890,271
|
|
|
45,138,891
|
|
|
46,130,895
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||
YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|||
Change in fair value of cash flow hedges
|
270
|
|
|
(1,394
|
)
|
|
(2,393
|
)
|
|||
Reclassification adjustment for losses (gains) included in net income (net of tax, $274, $335, and $318 for the years ended December 31, 2016, 2015, and 2014, respectively)
|
508
|
|
|
621
|
|
|
591
|
|
|||
AFS securities:
|
|
|
|
|
|
|
|
|
|||
Unrealized holding gains (losses) arising during period (net of tax, $4,408, $1,960, and $9,202 for the years ended December 31, 2016, 2015, and 2014, respectively)
|
(8,186
|
)
|
|
(3,640
|
)
|
|
17,089
|
|
|||
Reclassification adjustment for losses (gains) included in net income (net of tax, $72, $415, and $453 for the years ended December 31, 2016, 2015, and 2014, respectively)
|
(133
|
)
|
|
(771
|
)
|
|
(842
|
)
|
|||
HTM securities:
|
|
|
|
|
|
|
|
|
|||
Accretion of unrealized gain for AFS securities transferred to HTM (net of tax, $568, $441, and $0 for the years ended December 31, 2016, 2015 and 2014, respectively)
|
(1,055
|
)
|
|
(819
|
)
|
|
—
|
|
|||
Bank owned life insurance:
|
|
|
|
|
|
||||||
Unrealized holding losses arising during period
|
(1,728
|
)
|
|
—
|
|
|
—
|
|
|||
Reclassification adjustment for losses included in net income
|
263
|
|
|
—
|
|
|
—
|
|
|||
Other comprehensive income (loss)
|
(10,061
|
)
|
|
(6,003
|
)
|
|
14,445
|
|
|||
Comprehensive income
|
$
|
67,415
|
|
|
$
|
61,076
|
|
|
$
|
66,609
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
|
|||||||||||||||||||
YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014
|
|||||||||||||||||||
(Dollars in thousands, except share amounts)
|
|||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
(1)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||||
Balance - December 31, 2013
|
$
|
33,020
|
|
|
170,770
|
|
|
236,210
|
|
|
(2,190
|
)
|
|
$
|
437,810
|
|
|||
Net income - 2014
|
|
|
|
|
|
|
52,164
|
|
|
|
|
|
52,164
|
|
|||||
Other comprehensive income (net of taxes of $9,067)
|
|
|
|
|
|
|
|
|
|
14,445
|
|
|
14,445
|
|
|||||
Issuance of common stock in regard to acquisition (22,147,874 shares)
|
29,457
|
|
|
520,066
|
|
|
|
|
|
|
|
|
549,523
|
|
|||||
Dividends on common stock ($0.58 per share)
|
|
|
|
|
|
|
(25,494
|
)
|
|
|
|
|
(25,494
|
)
|
|||||
Stock purchased under stock repurchase plan (2,125,264 shares)
|
(2,826
|
)
|
|
(49,773
|
)
|
|
|
|
|
|
|
|
(52,599
|
)
|
|||||
Issuance of common stock under Dividend Reinvestment Plan (52,252 shares)
|
69
|
|
|
1,135
|
|
|
(1,204
|
)
|
|
|
|
|
—
|
|
|||||
Issuance of common stock under Equity Compensation Plans (75,282 shares)
|
100
|
|
|
1,130
|
|
|
|
|
|
|
|
|
1,230
|
|
|||||
Issuance of common stock for services rendered (30,057 shares)
|
39
|
|
|
674
|
|
|
|
|
|
|
|
|
713
|
|
|||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (47,954 shares)
|
(64
|
)
|
|
(1,538
|
)
|
|
|
|
|
|
|
|
(1,602
|
)
|
|||||
Stock-based compensation expense
|
|
|
|
979
|
|
|
|
|
|
|
|
|
979
|
|
|||||
Balance - December 31, 2014
|
59,795
|
|
|
643,443
|
|
|
261,676
|
|
|
12,255
|
|
|
977,169
|
|
|||||
Net income - 2015
|
|
|
|
|
|
|
67,079
|
|
|
|
|
|
67,079
|
|
|||||
Other comprehensive income (net of taxes of $2,481)
|
|
|
|
|
|
|
|
|
|
(6,003
|
)
|
|
(6,003
|
)
|
|||||
Dividends on common stock ($0.68 per share)
|
|
|
|
|
|
|
(29,082
|
)
|
|
|
|
|
(29,082
|
)
|
|||||
Stock purchased under stock repurchase plan (668,522 shares)
|
(889
|
)
|
|
(15,371
|
)
|
|
|
|
|
|
|
|
(16,260
|
)
|
|||||
Issuance of common stock under Dividend Reinvestment Plan (69,628 shares)
|
93
|
|
|
1,446
|
|
|
(1,539
|
)
|
|
|
|
|
—
|
|
|||||
Issuance of common stock under Equity Compensation Plans (60,637 shares)
|
80
|
|
|
848
|
|
|
|
|
|
|
|
|
928
|
|
|||||
Issuance of common stock for services rendered (23,800 shares)
|
32
|
|
|
532
|
|
|
|
|
|
|
|
|
564
|
|
|||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (36,373 shares)
|
48
|
|
|
(464
|
)
|
|
|
|
|
|
|
|
(416
|
)
|
|||||
Stock-based compensation expense
|
|
|
|
1,388
|
|
|
|
|
|
|
|
|
1,388
|
|
|||||
Balance - December 31, 2015
|
59,159
|
|
|
631,822
|
|
|
298,134
|
|
|
6,252
|
|
|
995,367
|
|
|||||
Net income - 2016
|
|
|
|
|
|
|
77,476
|
|
|
|
|
|
77,476
|
|
|||||
Other comprehensive income (net of taxes of $4,774)
|
|
|
|
|
|
|
|
|
|
(10,061
|
)
|
|
(10,061
|
)
|
|||||
Issuance of common stock in regard to acquisition (17,232 shares)
|
23
|
|
|
430
|
|
|
|
|
|
|
453
|
|
|||||||
Dividends on common stock ($0.77 per share)
|
|
|
|
|
|
|
(33,672
|
)
|
|
|
|
|
(33,672
|
)
|
|||||
Stock purchased under stock repurchase plan (1,411,131 shares)
|
(1,877
|
)
|
|
(31,300
|
)
|
|
|
|
|
|
|
|
(33,177
|
)
|
|||||
Issuance of common stock under Equity Compensation Plans (88,409 shares)
|
118
|
|
|
1,311
|
|
|
|
|
|
|
|
|
1,429
|
|
|||||
Issuance of common stock for services rendered (19,132 shares)
|
25
|
|
|
508
|
|
|
|
|
|
|
|
|
533
|
|
|||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (43,620 shares)
|
58
|
|
|
(644
|
)
|
|
|
|
|
|
|
|
(586
|
)
|
|||||
Stock-based compensation expense
|
|
|
|
3,270
|
|
|
|
|
|
|
|
|
3,270
|
|
|||||
Balance - December 31, 2016
|
$
|
57,506
|
|
|
$
|
605,397
|
|
|
$
|
341,938
|
|
|
$
|
(3,809
|
)
|
|
$
|
1,001,032
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||
YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation of premises and equipment
|
10,215
|
|
|
10,776
|
|
|
10,742
|
|
|||
Writedown of OREO
|
1,017
|
|
|
6,002
|
|
|
7,646
|
|
|||
Other-than-temporary impairment recognized in earnings
|
—
|
|
|
300
|
|
|
—
|
|
|||
Amortization, net
|
13,555
|
|
|
14,951
|
|
|
16,337
|
|
|||
Amortization (accretion) related to acquisition, net
|
1,534
|
|
|
1,823
|
|
|
(255
|
)
|
|||
Provision for credit losses
|
9,100
|
|
|
9,571
|
|
|
7,800
|
|
|||
Gains on securities transactions, net
|
(205
|
)
|
|
(1,486
|
)
|
|
(1,695
|
)
|
|||
Bank owned life insurance income
|
(5,513
|
)
|
|
(4,593
|
)
|
|
(4,648
|
)
|
|||
Deferred tax expense (benefit)
|
243
|
|
|
(1,212
|
)
|
|
2,644
|
|
|||
Decrease (increase) in loans held for sale, net
|
(457
|
)
|
|
6,489
|
|
|
21,530
|
|
|||
Gains on sales of other real estate owned, net
|
(342
|
)
|
|
(260
|
)
|
|
(1,381
|
)
|
|||
Losses on sales of premises, net
|
125
|
|
|
89
|
|
|
184
|
|
|||
Gains on sale of loans held for investment
|
—
|
|
|
(470
|
)
|
|
—
|
|
|||
Stock-based compensation expenses
|
3,270
|
|
|
1,388
|
|
|
979
|
|
|||
Issuance of common stock for services
|
533
|
|
|
564
|
|
|
713
|
|
|||
Net decrease (increase) in other assets
|
(14,810
|
)
|
|
2,692
|
|
|
9,896
|
|
|||
Net increase (decrease) in other liabilities
|
(1,898
|
)
|
|
(2,780
|
)
|
|
4,564
|
|
|||
Net cash and cash equivalents provided by operating activities
|
93,843
|
|
|
110,923
|
|
|
127,220
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|||
Purchases of securities available for sale and restricted stock
|
(259,020
|
)
|
|
(259,761
|
)
|
|
(411,916
|
)
|
|||
Purchases of securities held to maturity
|
(2,390
|
)
|
|
(9,830
|
)
|
|
—
|
|
|||
Proceeds from sales of securities available for sale and restricted stock
|
69,516
|
|
|
101,154
|
|
|
289,389
|
|
|||
Proceeds from maturities, calls and paydowns of securities available for sale
|
115,670
|
|
|
142,644
|
|
|
143,656
|
|
|||
Proceeds from maturities, calls and paydowns of securities held to maturity
|
2,686
|
|
|
3,680
|
|
|
—
|
|
|||
Net increase in loans held for investment
|
(637,207
|
)
|
|
(356,300
|
)
|
|
(74,753
|
)
|
|||
Proceeds from sale of loans held for investment
|
—
|
|
|
27,351
|
|
|
—
|
|
|||
Net increase in premises and equipment
|
(6,339
|
)
|
|
(3,870
|
)
|
|
(7,124
|
)
|
|||
Proceeds from sales of other real estate owned
|
5,837
|
|
|
10,309
|
|
|
17,808
|
|
|||
Improvements to other real estate owned
|
—
|
|
|
(308
|
)
|
|
(686
|
)
|
|||
Purchases of BOLI policies
|
—
|
|
|
(30,000
|
)
|
|
—
|
|
|||
Cash paid for equity-method investments
|
—
|
|
|
(355
|
)
|
|
(60
|
)
|
|||
Cash paid in acquisition
|
(4,077
|
)
|
|
—
|
|
|
—
|
|
|||
Cash acquired in bank acquisitions
|
207
|
|
|
—
|
|
|
49,989
|
|
|||
Net cash and cash equivalents provided by (used in) investing activities
|
(715,117
|
)
|
|
(375,286
|
)
|
|
6,303
|
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|||
Net increase in noninterest-bearing deposits
|
20,688
|
|
|
173,559
|
|
|
95,664
|
|
|||
Net increase (decrease) in interest-bearing deposits
|
394,865
|
|
|
153,450
|
|
|
(164,696
|
)
|
|||
Net increase in short-term borrowings
|
187,804
|
|
|
1,584
|
|
|
74,211
|
|
|||
Proceeds from issuance of long-term debt
|
178,000
|
|
|
—
|
|
|
—
|
|
|||
Repayments of long-term debt
|
(57,500
|
)
|
|
(10,000
|
)
|
|
—
|
|
|||
Cash dividends paid - common stock
|
(33,672
|
)
|
|
(29,082
|
)
|
|
(25,494
|
)
|
|||
Repurchase of common stock
|
(33,177
|
)
|
|
(16,260
|
)
|
|
(52,599
|
)
|
|||
Issuance of common stock
|
1,429
|
|
|
928
|
|
|
1,230
|
|
|||
Vesting of restricted stock, including tax effects
|
(586
|
)
|
|
(416
|
)
|
|
(1,602
|
)
|
|||
Net cash and cash equivalents provided by (used in) financing activities
|
657,851
|
|
|
273,763
|
|
|
(73,286
|
)
|
|||
Increase in cash and cash equivalents
|
36,577
|
|
|
9,400
|
|
|
60,237
|
|
|||
Cash and cash equivalents at beginning of the period
|
142,660
|
|
|
133,260
|
|
|
73,023
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
179,237
|
|
|
$
|
142,660
|
|
|
$
|
133,260
|
|
|
|
|
|
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||
YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
|
|
|
|
|||
Cash payments for:
|
|
|
|
|
|
|
|
|
|||
Interest
|
$
|
29,576
|
|
|
$
|
27,526
|
|
|
$
|
28,394
|
|
Income taxes
|
27,900
|
|
|
21,400
|
|
|
17,500
|
|
|||
|
|
|
|
|
|
||||||
Supplemental schedule of noncash investing and financing activities
|
|
|
|
|
|
|
|
|
|||
Transfer from securities available for sale to securities held to maturity
|
—
|
|
|
201,822
|
|
|
—
|
|
|||
Transfers between loans and other real estate owned
|
1,297
|
|
|
700
|
|
|
2,141
|
|
|||
Transfers from bank premises to other real estate owned
|
—
|
|
|
2,224
|
|
|
10,929
|
|
|||
Issuance of common stock in exchange for net assets in acquisition
|
453
|
|
|
—
|
|
|
549,523
|
|
|||
|
|
|
|
|
|
||||||
Transactions related to bank acquisition
|
|
|
|
|
|
|
|
|
|||
Assets acquired
|
4,668
|
|
|
—
|
|
|
2,957,521
|
|
|||
Liabilities assumed
(1)
|
4,807
|
|
|
—
|
|
|
2,642,120
|
|
|||
|
|
|
|
|
|
||||||
(1)
2016 includes contingent consideration related to ODCM acquisition.
|
|
|
|
|
|
ENVIRONMENTAL FACTORS
|
||||
Portfolio
|
|
National / International
|
|
Local
|
Experience and ability of lending team
|
|
Interest rates
|
|
Level of economic activity
|
Compare ratio consideration
|
|
Inflation
|
|
Unemployment
|
Pace of loan growth
|
|
Unemployment
|
|
Competition
|
Footprint and expansion
|
|
Gross domestic product
|
|
Military/government impact
|
Execution of loan risk rating process
|
|
General market risk and other concerns
|
|
|
Degree of oversight
|
|
Legislative and regulatory environment
|
|
|
Underwriting standards
|
|
International uncertainty
|
|
|
Delinquency levels in portfolio
|
|
Home Price Index
|
|
|
Charge-off levels in portfolio
|
|
Commercial Real Estate Price Index
|
|
|
Credit concentrations / nature and volume of the portfolio
|
|
|
|
|
|
For the year ended
December 31,
|
||
|
2014
|
||
Salaries and employee benefits
|
$
|
7,875
|
|
Professional services
|
3,736
|
|
|
Other costs of operations
|
8,734
|
|
|
Total
|
$
|
20,345
|
|
|
For the years ended
December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Loans
(1)
|
$
|
5,218
|
|
|
$
|
4,355
|
|
|
$
|
586
|
|
Core deposit intangible
(2)
|
(6,930
|
)
|
|
(8,445
|
)
|
|
(9,795
|
)
|
|||
Borrowings
(3)
|
458
|
|
|
424
|
|
|
550
|
|
|||
Time deposits
(4)
|
—
|
|
|
1,843
|
|
|
8,914
|
|
|||
Other amortizable intangibles
(2)
|
(280
|
)
|
|
—
|
|
|
—
|
|
|||
Net impact to income before taxes
|
$
|
(1,534
|
)
|
|
$
|
(1,823
|
)
|
|
$
|
255
|
|
|
Amortized
|
|
Gross Unrealized
|
|
Estimated
|
||||||||||
|
Cost
|
|
Gains
|
|
(Losses)
|
|
Fair Value
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
274,007
|
|
|
$
|
4,962
|
|
|
$
|
(3,079
|
)
|
|
$
|
275,890
|
|
Corporate bonds
|
123,674
|
|
|
892
|
|
|
(2,786
|
)
|
|
121,780
|
|
||||
Mortgage-backed securities
|
536,031
|
|
|
4,626
|
|
|
(5,371
|
)
|
|
535,286
|
|
||||
Other securities
|
13,885
|
|
|
—
|
|
|
(77
|
)
|
|
13,808
|
|
||||
Total available for sale securities
|
$
|
947,597
|
|
|
$
|
10,480
|
|
|
$
|
(11,313
|
)
|
|
$
|
946,764
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
257,740
|
|
|
$
|
10,479
|
|
|
$
|
(140
|
)
|
|
$
|
268,079
|
|
Corporate bonds
|
77,628
|
|
|
55
|
|
|
(1,704
|
)
|
|
75,979
|
|
||||
Mortgage-backed securities
|
544,823
|
|
|
6,127
|
|
|
(2,779
|
)
|
|
548,171
|
|
||||
Other securities
|
11,085
|
|
|
—
|
|
|
(22
|
)
|
|
11,063
|
|
||||
Total available for sale securities
|
$
|
891,276
|
|
|
$
|
16,661
|
|
|
$
|
(4,645
|
)
|
|
$
|
903,292
|
|
|
Less than 12 months
|
|
More than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
108,440
|
|
|
$
|
(3,007
|
)
|
|
$
|
588
|
|
|
$
|
(72
|
)
|
|
$
|
109,028
|
|
|
$
|
(3,079
|
)
|
Mortgage-backed securities
|
316,469
|
|
|
(4,979
|
)
|
|
42,096
|
|
|
(392
|
)
|
|
358,565
|
|
|
(5,371
|
)
|
||||||
Corporate bonds and other securities
|
47,388
|
|
|
(1,537
|
)
|
|
40,468
|
|
|
(1,326
|
)
|
|
87,856
|
|
|
(2,863
|
)
|
||||||
Total available for sale
|
$
|
472,297
|
|
|
$
|
(9,523
|
)
|
|
$
|
83,152
|
|
|
$
|
(1,790
|
)
|
|
$
|
555,449
|
|
|
$
|
(11,313
|
)
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
8,114
|
|
|
$
|
(70
|
)
|
|
$
|
4,950
|
|
|
$
|
(70
|
)
|
|
$
|
13,064
|
|
|
$
|
(140
|
)
|
Mortgage-backed securities
|
287,113
|
|
|
(2,442
|
)
|
|
21,660
|
|
|
(337
|
)
|
|
308,773
|
|
|
(2,779
|
)
|
||||||
Corporate bonds and other securities
|
36,157
|
|
|
(751
|
)
|
|
19,558
|
|
|
(975
|
)
|
|
55,715
|
|
|
(1,726
|
)
|
||||||
Total available for sale
|
$
|
331,384
|
|
|
$
|
(3,263
|
)
|
|
$
|
46,168
|
|
|
$
|
(1,382
|
)
|
|
$
|
377,552
|
|
|
$
|
(4,645
|
)
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||||||
Due in one year or less
|
$
|
21,403
|
|
|
$
|
21,517
|
|
|
$
|
8,380
|
|
|
$
|
8,370
|
|
Due after one year through five years
|
108,198
|
|
|
109,778
|
|
|
65,326
|
|
|
66,996
|
|
||||
Due after five years through ten years
|
300,552
|
|
|
301,888
|
|
|
296,864
|
|
|
301,920
|
|
||||
Due after ten years
|
517,444
|
|
|
513,581
|
|
|
520,706
|
|
|
526,006
|
|
||||
Total securities available for sale
|
$
|
947,597
|
|
|
$
|
946,764
|
|
|
$
|
891,276
|
|
|
$
|
903,292
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
|
Estimated
Fair Value
|
|
Estimated
Fair Value
|
||||
Public deposits
|
$
|
210,546
|
|
|
$
|
184,635
|
|
Repurchase agreements
|
108,208
|
|
|
126,120
|
|
||
Other purposes
(1)
|
23,350
|
|
|
26,546
|
|
||
Total pledged securities
|
$
|
342,104
|
|
|
$
|
337,301
|
|
|
Carrying
|
|
Gross Unrealized
|
|
Estimated
|
||||||||||
|
Value
(1)
|
|
Gains
|
|
(Losses)
|
|
Fair Value
|
||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
201,526
|
|
|
$
|
1,617
|
|
|
$
|
(828
|
)
|
|
$
|
202,315
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
205,374
|
|
|
$
|
5,748
|
|
|
$
|
(1,685
|
)
|
|
$
|
209,437
|
|
|
Less than 12 months
|
|
More than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
92,841
|
|
|
$
|
(747
|
)
|
|
$
|
648
|
|
|
$
|
(81
|
)
|
|
$
|
93,489
|
|
|
$
|
(828
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
7,056
|
|
|
$
|
(1,685
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,056
|
|
|
$
|
(1,685
|
)
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying
Value
(1)
|
|
Estimated
Fair Value
|
|
Carrying
Value
(1)
|
|
Estimated
Fair Value
|
||||||||
Due in one year or less
|
$
|
4,403
|
|
|
$
|
4,440
|
|
|
$
|
1,488
|
|
|
$
|
1,491
|
|
Due after one year through five years
|
28,383
|
|
|
28,763
|
|
|
4,294
|
|
|
4,348
|
|
||||
Due after five years through ten years
|
51,730
|
|
|
51,522
|
|
|
44,736
|
|
|
45,501
|
|
||||
Due after ten years
|
117,010
|
|
|
117,590
|
|
|
154,856
|
|
|
158,097
|
|
||||
Total securities held to maturity
|
$
|
201,526
|
|
|
$
|
202,315
|
|
|
$
|
205,374
|
|
|
$
|
209,437
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
|
Estimated
|
|
Estimated
|
||||
|
Fair Value
|
|
Fair Value
|
||||
Public deposits
|
$
|
197,889
|
|
|
$
|
207,140
|
|
Total pledged securities
|
$
|
197,889
|
|
|
$
|
207,140
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Realized gains (losses):
|
|
|
|
|
|
|
|
|
|||
Gross realized gains
|
$
|
302
|
|
|
$
|
1,597
|
|
|
$
|
1,757
|
|
Gross realized losses
|
(97
|
)
|
|
(111
|
)
|
|
(62
|
)
|
|||
Net realized gains
|
$
|
205
|
|
|
$
|
1,486
|
|
|
$
|
1,695
|
|
Proceeds from sales of securities
|
$
|
69,516
|
|
|
$
|
101,154
|
|
|
$
|
289,389
|
|
|
2016
|
|
2015
|
||||
Construction and Land Development
|
$
|
751,131
|
|
|
$
|
749,720
|
|
Commercial Real Estate - Owner Occupied
|
857,805
|
|
|
860,086
|
|
||
Commercial Real Estate - Non-Owner Occupied
|
1,564,295
|
|
|
1,270,480
|
|
||
Multifamily Real Estate
|
334,276
|
|
|
322,528
|
|
||
Commercial & Industrial
|
551,526
|
|
|
435,365
|
|
||
Residential 1-4 Family
|
1,029,547
|
|
|
978,469
|
|
||
Auto
|
262,071
|
|
|
234,061
|
|
||
HELOC
|
526,884
|
|
|
516,726
|
|
||
Consumer and all other
|
429,525
|
|
|
304,027
|
|
||
Total loans held for investment, net
(1)
|
$
|
6,307,060
|
|
|
$
|
5,671,462
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than
90 Days and
still Accruing
|
|
PCI
|
|
Nonaccrual
|
|
Current
|
|
Total Loans
|
||||||||||||||
Construction and Land Development
|
$
|
1,162
|
|
|
$
|
232
|
|
|
$
|
76
|
|
|
$
|
2,922
|
|
|
$
|
2,037
|
|
|
$
|
744,702
|
|
|
$
|
751,131
|
|
Commercial Real Estate - Owner Occupied
|
1,842
|
|
|
109
|
|
|
35
|
|
|
18,343
|
|
|
794
|
|
|
836,682
|
|
|
857,805
|
|
|||||||
Commercial Real Estate - Non-Owner Occupied
|
2,369
|
|
|
—
|
|
|
—
|
|
|
17,303
|
|
|
—
|
|
|
1,544,623
|
|
|
1,564,295
|
|
|||||||
Multifamily Real Estate
|
147
|
|
|
—
|
|
|
—
|
|
|
2,066
|
|
|
—
|
|
|
332,063
|
|
|
334,276
|
|
|||||||
Commercial & Industrial
|
759
|
|
|
858
|
|
|
9
|
|
|
1,074
|
|
|
124
|
|
|
548,702
|
|
|
551,526
|
|
|||||||
Residential 1-4 Family
|
7,038
|
|
|
534
|
|
|
2,048
|
|
|
16,200
|
|
|
5,279
|
|
|
998,448
|
|
|
1,029,547
|
|
|||||||
Auto
|
2,570
|
|
|
317
|
|
|
111
|
|
|
—
|
|
|
169
|
|
|
258,904
|
|
|
262,071
|
|
|||||||
HELOC
|
1,836
|
|
|
1,140
|
|
|
635
|
|
|
1,161
|
|
|
1,279
|
|
|
520,833
|
|
|
526,884
|
|
|||||||
Consumer and all other
|
2,522
|
|
|
1,431
|
|
|
91
|
|
|
223
|
|
|
291
|
|
|
424,967
|
|
|
429,525
|
|
|||||||
Total loans held for investment
|
$
|
20,245
|
|
|
$
|
4,621
|
|
|
$
|
3,005
|
|
|
$
|
59,292
|
|
|
$
|
9,973
|
|
|
$
|
6,209,924
|
|
|
$
|
6,307,060
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Greater than
90 Days and
still Accruing
|
|
PCI
|
|
Nonaccrual
|
|
Current
|
|
Total Loans
|
||||||||||||||
Construction and Land Development
|
$
|
3,155
|
|
|
$
|
380
|
|
|
$
|
128
|
|
|
$
|
5,986
|
|
|
$
|
2,113
|
|
|
$
|
737,958
|
|
|
$
|
749,720
|
|
Commercial Real Estate - Owner Occupied
|
1,714
|
|
|
118
|
|
|
103
|
|
|
27,388
|
|
|
3,904
|
|
|
826,859
|
|
|
860,086
|
|
|||||||
Commercial Real Estate - Non-Owner Occupied
|
771
|
|
|
—
|
|
|
723
|
|
|
13,519
|
|
|
100
|
|
|
1,255,367
|
|
|
1,270,480
|
|
|||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
272
|
|
|
1,555
|
|
|
—
|
|
|
320,701
|
|
|
322,528
|
|
|||||||
Commercial & Industrial
|
1,056
|
|
|
27
|
|
|
124
|
|
|
1,813
|
|
|
429
|
|
|
431,916
|
|
|
435,365
|
|
|||||||
Residential 1-4 Family
|
15,023
|
|
|
6,774
|
|
|
3,638
|
|
|
21,159
|
|
|
3,563
|
|
|
928,312
|
|
|
978,469
|
|
|||||||
Auto
|
2,312
|
|
|
233
|
|
|
60
|
|
|
—
|
|
|
192
|
|
|
231,264
|
|
|
234,061
|
|
|||||||
HELOC
|
2,589
|
|
|
1,112
|
|
|
762
|
|
|
1,791
|
|
|
1,348
|
|
|
509,124
|
|
|
516,726
|
|
|||||||
Consumer and all other
|
1,167
|
|
|
689
|
|
|
19
|
|
|
526
|
|
|
287
|
|
|
301,339
|
|
|
304,027
|
|
|||||||
Total loans held for investment
|
$
|
27,787
|
|
|
$
|
9,333
|
|
|
$
|
5,829
|
|
|
$
|
73,737
|
|
|
$
|
11,936
|
|
|
$
|
5,542,840
|
|
|
$
|
5,671,462
|
|
|
30-89 Days
Past Due
|
|
Greater than
90 Days
|
|
Current
|
|
Total
|
||||||||
Construction and Land Development
|
$
|
—
|
|
|
$
|
84
|
|
|
$
|
2,838
|
|
|
$
|
2,922
|
|
Commercial Real Estate - Owner Occupied
|
271
|
|
|
519
|
|
|
17,553
|
|
|
18,343
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
409
|
|
|
126
|
|
|
16,768
|
|
|
17,303
|
|
||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
2,066
|
|
|
2,066
|
|
||||
Commercial & Industrial
|
44
|
|
|
56
|
|
|
974
|
|
|
1,074
|
|
||||
Residential 1-4 Family
|
1,298
|
|
|
945
|
|
|
13,957
|
|
|
16,200
|
|
||||
HELOC
|
175
|
|
|
121
|
|
|
865
|
|
|
1,161
|
|
||||
Consumer and all other
|
—
|
|
|
—
|
|
|
223
|
|
|
223
|
|
||||
Total
|
$
|
2,197
|
|
|
$
|
1,851
|
|
|
$
|
55,244
|
|
|
$
|
59,292
|
|
|
30-89 Days
Past Due
|
|
Greater than
90 Days
|
|
Current
|
|
Total
|
||||||||
Construction and Land Development
|
$
|
369
|
|
|
$
|
241
|
|
|
$
|
5,376
|
|
|
$
|
5,986
|
|
Commercial Real Estate - Owner Occupied
|
1,139
|
|
|
1,412
|
|
|
24,837
|
|
|
27,388
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
755
|
|
|
202
|
|
|
12,562
|
|
|
13,519
|
|
||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
1,555
|
|
|
1,555
|
|
||||
Commercial & Industrial
|
209
|
|
|
21
|
|
|
1,583
|
|
|
1,813
|
|
||||
Residential 1-4 Family
|
2,143
|
|
|
1,923
|
|
|
17,093
|
|
|
21,159
|
|
||||
HELOC
|
410
|
|
|
458
|
|
|
923
|
|
|
1,791
|
|
||||
Consumer and all other
|
—
|
|
|
—
|
|
|
526
|
|
|
526
|
|
||||
Total
|
$
|
5,025
|
|
|
$
|
4,257
|
|
|
$
|
64,455
|
|
|
$
|
73,737
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||||||||
Loans without a specific allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and Land Development
|
$
|
13,877
|
|
|
$
|
14,353
|
|
|
$
|
—
|
|
|
$
|
33,250
|
|
|
$
|
33,731
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
5,886
|
|
|
6,042
|
|
|
—
|
|
|
7,781
|
|
|
8,983
|
|
|
—
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
1,399
|
|
|
1,399
|
|
|
—
|
|
|
5,328
|
|
|
5,325
|
|
|
—
|
|
||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
|
3,828
|
|
|
3,828
|
|
|
—
|
|
||||||
Commercial & Industrial
|
648
|
|
|
890
|
|
|
—
|
|
|
711
|
|
|
951
|
|
|
—
|
|
||||||
Residential 1-4 Family
|
8,496
|
|
|
9,518
|
|
|
—
|
|
|
7,564
|
|
|
8,829
|
|
|
—
|
|
||||||
Auto
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
—
|
|
||||||
HELOC
|
1,017
|
|
|
1,094
|
|
|
—
|
|
|
1,786
|
|
|
2,028
|
|
|
—
|
|
||||||
Consumer and all other
|
230
|
|
|
427
|
|
|
—
|
|
|
211
|
|
|
211
|
|
|
—
|
|
||||||
Total impaired loans without a specific allowance
|
$
|
31,553
|
|
|
$
|
33,723
|
|
|
$
|
—
|
|
|
$
|
60,466
|
|
|
$
|
63,893
|
|
|
$
|
—
|
|
Loans with a specific allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction and Land Development
|
$
|
1,395
|
|
|
$
|
1,404
|
|
|
$
|
107
|
|
|
$
|
3,167
|
|
|
$
|
3,218
|
|
|
$
|
538
|
|
Commercial Real Estate - Owner Occupied
|
646
|
|
|
646
|
|
|
4
|
|
|
3,237
|
|
|
3,239
|
|
|
358
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
2,809
|
|
|
2,809
|
|
|
474
|
|
|
907
|
|
|
907
|
|
|
75
|
|
||||||
Commercial & Industrial
|
857
|
|
|
880
|
|
|
14
|
|
|
1,952
|
|
|
1,949
|
|
|
441
|
|
||||||
Residential 1-4 Family
|
3,335
|
|
|
3,535
|
|
|
200
|
|
|
6,065
|
|
|
6,153
|
|
|
418
|
|
||||||
Auto
|
169
|
|
|
235
|
|
|
1
|
|
|
192
|
|
|
199
|
|
|
1
|
|
||||||
HELOC
|
323
|
|
|
433
|
|
|
15
|
|
|
769
|
|
|
925
|
|
|
76
|
|
||||||
Consumer and all other
|
62
|
|
|
298
|
|
|
1
|
|
|
363
|
|
|
512
|
|
|
95
|
|
||||||
Total impaired loans with a specific allowance
|
$
|
9,596
|
|
|
$
|
10,240
|
|
|
$
|
816
|
|
|
$
|
16,652
|
|
|
$
|
17,102
|
|
|
$
|
2,002
|
|
Total impaired loans
|
$
|
41,149
|
|
|
$
|
43,963
|
|
|
$
|
816
|
|
|
$
|
77,118
|
|
|
$
|
80,995
|
|
|
$
|
2,002
|
|
|
December 31, 2016
|
|
December 31, 2015
|
|
December 31, 2014
|
||||||||||||||||||
|
Average
Investment
|
|
Interest
Income
Recognized
|
|
Average
Investment
|
|
Interest
Income
Recognized
|
|
Average
Investment
|
|
Interest
Income
Recognized
|
||||||||||||
Construction and Land Development
|
$
|
15,346
|
|
|
$
|
681
|
|
|
$
|
36,441
|
|
|
$
|
2,265
|
|
|
$
|
56,183
|
|
|
$
|
2,382
|
|
Commercial Real Estate - Owner Occupied
|
6,290
|
|
|
242
|
|
|
11,409
|
|
|
348
|
|
|
22,719
|
|
|
1,017
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
4,188
|
|
|
134
|
|
|
6,201
|
|
|
250
|
|
|
29,136
|
|
|
1,292
|
|
||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
3,854
|
|
|
244
|
|
|
4,657
|
|
|
284
|
|
||||||
Commercial & Industrial
|
2,800
|
|
|
95
|
|
|
3,404
|
|
|
139
|
|
|
6,426
|
|
|
195
|
|
||||||
Residential 1-4 Family
|
12,716
|
|
|
291
|
|
|
14,468
|
|
|
410
|
|
|
18,244
|
|
|
571
|
|
||||||
Auto
|
244
|
|
|
5
|
|
|
235
|
|
|
6
|
|
|
7
|
|
|
—
|
|
||||||
HELOC
|
1,513
|
|
|
19
|
|
|
2,757
|
|
|
54
|
|
|
1,522
|
|
|
35
|
|
||||||
Consumer and all other
|
567
|
|
|
8
|
|
|
639
|
|
|
19
|
|
|
2,287
|
|
|
95
|
|
||||||
Total impaired loans
|
$
|
43,664
|
|
|
$
|
1,475
|
|
|
$
|
79,408
|
|
|
$
|
3,735
|
|
|
$
|
141,181
|
|
|
$
|
5,871
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
No. of
Loans
|
|
Recorded
Investment
|
|
Outstanding
Commitment
|
|
No. of
Loans
|
|
Recorded
Investment
|
|
Outstanding
Commitment
|
||||||||||
Performing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
8
|
|
|
$
|
3,793
|
|
|
$
|
—
|
|
|
6
|
|
|
$
|
3,349
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
7
|
|
|
3,106
|
|
|
—
|
|
|
5
|
|
|
1,530
|
|
|
—
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
2
|
|
|
2,390
|
|
|
—
|
|
|
2
|
|
|
2,390
|
|
|
—
|
|
||||
Commercial & Industrial
|
3
|
|
|
533
|
|
|
—
|
|
|
5
|
|
|
261
|
|
|
—
|
|
||||
Residential 1-4 Family
|
28
|
|
|
4,145
|
|
|
—
|
|
|
27
|
|
|
3,173
|
|
|
—
|
|
||||
Consumer and all other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
77
|
|
|
—
|
|
||||
Total performing
|
48
|
|
|
$
|
13,967
|
|
|
$
|
—
|
|
|
46
|
|
|
$
|
10,780
|
|
|
$
|
—
|
|
Nonperforming
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
2
|
|
|
$
|
215
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
321
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
2
|
|
|
156
|
|
|
—
|
|
|
1
|
|
|
137
|
|
|
—
|
|
||||
Commercial & Industrial
|
1
|
|
|
116
|
|
|
—
|
|
|
1
|
|
|
2
|
|
|
—
|
|
||||
Residential 1-4 Family
|
8
|
|
|
948
|
|
|
—
|
|
|
6
|
|
|
1,142
|
|
|
—
|
|
||||
HELOC
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
319
|
|
|
—
|
|
||||
Total nonperforming
|
13
|
|
|
$
|
1,435
|
|
|
$
|
—
|
|
|
11
|
|
|
$
|
1,921
|
|
|
$
|
—
|
|
Total performing and nonperforming
|
61
|
|
|
$
|
15,402
|
|
|
$
|
—
|
|
|
57
|
|
|
$
|
12,701
|
|
|
$
|
—
|
|
|
2016
|
|
2015
|
||||||||||
|
No. of
Loans
|
|
Recorded
Investment at
Period End
|
|
No. of
Loans
|
|
Recorded
Investment at
Period End
|
||||||
Modified to interest only, at a market rate
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
2
|
|
|
$
|
325
|
|
|
—
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
2
|
|
|
483
|
|
|
—
|
|
|
—
|
|
||
Commercial & Industrial
|
1
|
|
|
34
|
|
|
1
|
|
|
19
|
|
||
Residential 1-4 Family
|
1
|
|
|
158
|
|
|
1
|
|
|
21
|
|
||
Total interest only at market rate of interest
|
6
|
|
|
$
|
1,000
|
|
|
2
|
|
|
$
|
40
|
|
|
|
|
|
|
|
|
|
||||||
Term modification, at a market rate
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
2
|
|
|
$
|
1,444
|
|
|
—
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
3
|
|
|
1,326
|
|
|
3
|
|
|
282
|
|
||
Commercial & Industrial
|
1
|
|
|
444
|
|
|
2
|
|
|
162
|
|
||
Residential 1-4 Family
|
6
|
|
|
980
|
|
|
11
|
|
|
936
|
|
||
Consumer and all other
|
—
|
|
|
—
|
|
|
1
|
|
|
77
|
|
||
Total loan term extended at a market rate
|
12
|
|
|
$
|
4,194
|
|
|
17
|
|
|
$
|
1,457
|
|
|
|
|
|
|
|
|
|
||||||
Term modification, below market rate
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
400
|
|
Commercial Real Estate - Owner Occupied
|
—
|
|
|
—
|
|
|
1
|
|
|
866
|
|
||
Residential 1-4 Family
|
7
|
|
|
1,309
|
|
|
7
|
|
|
1,039
|
|
||
Total loan term extended at a below market rate
|
7
|
|
|
$
|
1,309
|
|
|
9
|
|
|
$
|
2,305
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate modification, below market rate
|
|
|
|
|
|
|
|
||||||
Commercial & Industrial
|
1
|
|
|
$
|
116
|
|
|
—
|
|
|
$
|
—
|
|
Total interest only at below market rate of interest
|
1
|
|
|
$
|
116
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
26
|
|
|
$
|
6,619
|
|
|
28
|
|
|
$
|
3,802
|
|
|
Allowance for loan losses
|
||||||||||||||||||
|
Balance,
beginning of the year
|
|
Recoveries
credited to
allowance
|
|
Loans charged
off
|
|
Provision
charged to
operations
|
|
Balance, end of
period
|
||||||||||
Construction and Land Development
|
$
|
6,040
|
|
|
$
|
505
|
|
|
$
|
(958
|
)
|
|
$
|
4,468
|
|
|
$
|
10,055
|
|
Commercial Real Estate - Owner Occupied
|
4,614
|
|
|
152
|
|
|
(809
|
)
|
|
(156
|
)
|
|
3,801
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
6,929
|
|
|
80
|
|
|
(1
|
)
|
|
(386
|
)
|
|
6,622
|
|
|||||
Multifamily Real Estate
|
1,606
|
|
|
—
|
|
|
—
|
|
|
(370
|
)
|
|
1,236
|
|
|||||
Commercial & Industrial
|
3,163
|
|
|
483
|
|
|
(1,920
|
)
|
|
2,901
|
|
|
4,627
|
|
|||||
Residential 1-4 Family
|
5,414
|
|
|
585
|
|
|
(900
|
)
|
|
1,300
|
|
|
6,399
|
|
|||||
Auto
|
1,703
|
|
|
327
|
|
|
(1,052
|
)
|
|
(32
|
)
|
|
946
|
|
|||||
HELOC
|
2,934
|
|
|
459
|
|
|
(1,457
|
)
|
|
(608
|
)
|
|
1,328
|
|
|||||
Consumer and all other
|
1,644
|
|
|
434
|
|
|
(1,458
|
)
|
|
1,558
|
|
|
2,178
|
|
|||||
Total
|
$
|
34,047
|
|
|
$
|
3,025
|
|
|
$
|
(8,555
|
)
|
|
$
|
8,675
|
|
|
$
|
37,192
|
|
|
Loans individually evaluated
for impairment
|
|
Loans collectively evaluated for
impairment
|
|
Loans acquired with
deteriorated credit quality
|
|
Total
|
||||||||||||||||||||||||
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
||||||||||||||||
Construction and Land Development
|
$
|
15,272
|
|
|
$
|
107
|
|
|
$
|
732,937
|
|
|
$
|
9,948
|
|
|
$
|
2,922
|
|
|
$
|
—
|
|
|
$
|
751,131
|
|
|
$
|
10,055
|
|
Commercial Real Estate - Owner Occupied
|
6,532
|
|
|
4
|
|
|
832,930
|
|
|
3,797
|
|
|
18,343
|
|
|
—
|
|
|
857,805
|
|
|
3,801
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
4,208
|
|
|
474
|
|
|
1,542,784
|
|
|
6,148
|
|
|
17,303
|
|
|
—
|
|
|
1,564,295
|
|
|
6,622
|
|
||||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
332,210
|
|
|
1,236
|
|
|
2,066
|
|
|
—
|
|
|
334,276
|
|
|
1,236
|
|
||||||||
Commercial & Industrial
|
1,505
|
|
|
14
|
|
|
548,947
|
|
|
4,613
|
|
|
1,074
|
|
|
—
|
|
|
551,526
|
|
|
4,627
|
|
||||||||
Residential 1-4 Family
|
11,831
|
|
|
200
|
|
|
1,001,516
|
|
|
6,199
|
|
|
16,200
|
|
|
—
|
|
|
1,029,547
|
|
|
6,399
|
|
||||||||
Auto
|
169
|
|
|
1
|
|
|
261,902
|
|
|
945
|
|
|
—
|
|
|
—
|
|
|
262,071
|
|
|
946
|
|
||||||||
HELOC
|
1,340
|
|
|
15
|
|
|
524,383
|
|
|
1,313
|
|
|
1,161
|
|
|
—
|
|
|
526,884
|
|
|
1,328
|
|
||||||||
Consumer and all other
|
292
|
|
|
1
|
|
|
429,010
|
|
|
2,177
|
|
|
223
|
|
|
—
|
|
|
429,525
|
|
|
2,178
|
|
||||||||
Total loans held for investment, net
|
$
|
41,149
|
|
|
$
|
816
|
|
|
$
|
6,206,619
|
|
|
$
|
36,376
|
|
|
$
|
59,292
|
|
|
$
|
—
|
|
|
$
|
6,307,060
|
|
|
$
|
37,192
|
|
|
Allowance for loan losses
|
||||||||||||||||||
|
Balance,
beginning of the year
|
|
Recoveries
credited to
allowance
|
|
Loans charged
off
|
|
Provision
charged to
operations
|
|
Balance, end of
period
|
||||||||||
Construction and Land Development
|
$
|
4,856
|
|
|
$
|
720
|
|
|
$
|
(650
|
)
|
|
$
|
1,114
|
|
|
$
|
6,040
|
|
Commercial Real Estate - Owner Occupied
|
4,640
|
|
|
143
|
|
|
(481
|
)
|
|
312
|
|
|
4,614
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
7,256
|
|
|
239
|
|
|
(3,137
|
)
|
|
2,571
|
|
|
6,929
|
|
|||||
Multifamily Real Estate
|
1,374
|
|
|
200
|
|
|
—
|
|
|
32
|
|
|
1,606
|
|
|||||
Commercial & Industrial
|
2,610
|
|
|
958
|
|
|
(2,361
|
)
|
|
1,956
|
|
|
3,163
|
|
|||||
Residential 1-4 Family
|
5,607
|
|
|
554
|
|
|
(1,789
|
)
|
|
1,042
|
|
|
5,414
|
|
|||||
Auto
|
1,297
|
|
|
290
|
|
|
(768
|
)
|
|
884
|
|
|
1,703
|
|
|||||
HELOC
|
2,675
|
|
|
298
|
|
|
(1,100
|
)
|
|
1,061
|
|
|
2,934
|
|
|||||
Consumer and all other
|
2,069
|
|
|
525
|
|
|
(1,249
|
)
|
|
299
|
|
|
1,644
|
|
|||||
Total
|
$
|
32,384
|
|
|
$
|
3,927
|
|
|
$
|
(11,535
|
)
|
|
$
|
9,271
|
|
|
$
|
34,047
|
|
|
Loans individually evaluated
for impairment
|
|
Loans collectively evaluated for
impairment
|
|
Loans acquired with
deteriorated credit quality
|
|
Total
|
||||||||||||||||||||||||
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
||||||||||||||||
Construction and Land Development
|
$
|
36,417
|
|
|
$
|
538
|
|
|
$
|
707,317
|
|
|
$
|
5,502
|
|
|
$
|
5,986
|
|
|
$
|
—
|
|
|
$
|
749,720
|
|
|
$
|
6,040
|
|
Commercial Real Estate - Owner Occupied
|
11,018
|
|
|
358
|
|
|
821,680
|
|
|
4,256
|
|
|
27,388
|
|
|
—
|
|
|
860,086
|
|
|
4,614
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
6,235
|
|
|
75
|
|
|
1,250,726
|
|
|
6,854
|
|
|
13,519
|
|
|
—
|
|
|
1,270,480
|
|
|
6,929
|
|
||||||||
Multifamily Real Estate
|
3,828
|
|
|
—
|
|
|
317,145
|
|
|
1,606
|
|
|
1,555
|
|
|
—
|
|
|
322,528
|
|
|
1,606
|
|
||||||||
Commercial & Industrial
|
2,663
|
|
|
441
|
|
|
430,889
|
|
|
2,722
|
|
|
1,813
|
|
|
—
|
|
|
435,365
|
|
|
3,163
|
|
||||||||
Residential 1-4 Family
|
13,150
|
|
|
418
|
|
|
944,160
|
|
|
4,996
|
|
|
21,159
|
|
|
—
|
|
|
978,469
|
|
|
5,414
|
|
||||||||
Auto
|
199
|
|
|
1
|
|
|
233,862
|
|
|
1,702
|
|
|
—
|
|
|
—
|
|
|
234,061
|
|
|
1,703
|
|
||||||||
HELOC
|
2,478
|
|
|
76
|
|
|
512,457
|
|
|
2,858
|
|
|
1,791
|
|
|
—
|
|
|
516,726
|
|
|
2,934
|
|
||||||||
Consumer and all other
|
574
|
|
|
95
|
|
|
302,927
|
|
|
1,549
|
|
|
526
|
|
|
—
|
|
|
304,027
|
|
|
1,644
|
|
||||||||
Total loans held for investment, net
|
$
|
76,562
|
|
|
$
|
2,002
|
|
|
$
|
5,521,163
|
|
|
$
|
32,045
|
|
|
$
|
73,737
|
|
|
$
|
—
|
|
|
$
|
5,671,462
|
|
|
$
|
34,047
|
|
|
Allowance for loan losses
|
||||||||||||||||||
|
Balance,
beginning of the year
|
|
Recoveries
credited to
allowance
|
|
Loans charged
off
|
|
Provision
charged to
operations
|
|
Balance, end of
period
|
||||||||||
Construction and Land Development
|
$
|
4,387
|
|
|
$
|
150
|
|
|
$
|
(1,095
|
)
|
|
$
|
1,414
|
|
|
$
|
4,856
|
|
Commercial Real Estate - Owner Occupied
|
4,716
|
|
|
247
|
|
|
(643
|
)
|
|
320
|
|
|
4,640
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
5,285
|
|
|
41
|
|
|
(282
|
)
|
|
2,212
|
|
|
7,256
|
|
|||||
Multifamily Real Estate
|
1,227
|
|
|
4
|
|
|
(3
|
)
|
|
146
|
|
|
1,374
|
|
|||||
Commercial & Industrial
|
2,021
|
|
|
316
|
|
|
(1,557
|
)
|
|
1,830
|
|
|
2,610
|
|
|||||
Residential 1-4 Family
|
6,272
|
|
|
1,753
|
|
|
(2,856
|
)
|
|
438
|
|
|
5,607
|
|
|||||
Auto
|
1,414
|
|
|
325
|
|
|
(596
|
)
|
|
154
|
|
|
1,297
|
|
|||||
HELOC
|
2,697
|
|
|
113
|
|
|
(976
|
)
|
|
841
|
|
|
2,675
|
|
|||||
Consumer and all other
|
2,116
|
|
|
520
|
|
|
(1,012
|
)
|
|
445
|
|
|
2,069
|
|
|||||
Total
|
$
|
30,135
|
|
|
$
|
3,469
|
|
|
$
|
(9,020
|
)
|
|
$
|
7,800
|
|
|
$
|
32,384
|
|
|
Loans individually evaluated
for impairment
|
|
Loans collectively evaluated for
impairment
|
|
Loans acquired with
deteriorated credit quality
|
|
Total
|
||||||||||||||||||||||||
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
|
Loans
|
|
ALL
|
||||||||||||||||
Construction and Land Development
|
$
|
51,342
|
|
|
$
|
266
|
|
|
$
|
593,148
|
|
|
$
|
4,590
|
|
|
$
|
11,890
|
|
|
$
|
—
|
|
|
$
|
656,380
|
|
|
$
|
4,856
|
|
Commercial Real Estate - Owner Occupied
|
21,673
|
|
|
355
|
|
|
816,360
|
|
|
4,285
|
|
|
31,167
|
|
|
—
|
|
|
869,200
|
|
|
4,640
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
28,648
|
|
|
2,017
|
|
|
1,129,032
|
|
|
5,239
|
|
|
25,834
|
|
|
—
|
|
|
1,183,514
|
|
|
7,256
|
|
||||||||
Multifamily Real Estate
|
4,608
|
|
|
—
|
|
|
289,764
|
|
|
1,374
|
|
|
2,994
|
|
|
—
|
|
|
297,366
|
|
|
1,374
|
|
||||||||
Commercial & Industrial
|
5,813
|
|
|
570
|
|
|
364,843
|
|
|
2,040
|
|
|
3,440
|
|
|
—
|
|
|
374,096
|
|
|
2,610
|
|
||||||||
Residential 1-4 Family
|
14,905
|
|
|
1,210
|
|
|
941,550
|
|
|
4,397
|
|
|
26,619
|
|
|
—
|
|
|
983,074
|
|
|
5,607
|
|
||||||||
Auto
|
2
|
|
|
—
|
|
|
207,811
|
|
|
1,297
|
|
|
—
|
|
|
—
|
|
|
207,813
|
|
|
1,297
|
|
||||||||
HELOC
|
1,325
|
|
|
12
|
|
|
520,016
|
|
|
2,663
|
|
|
2,000
|
|
|
—
|
|
|
523,341
|
|
|
2,675
|
|
||||||||
Consumer and all other
|
2,097
|
|
|
101
|
|
|
247,271
|
|
|
1,968
|
|
|
1,844
|
|
|
—
|
|
|
251,212
|
|
|
2,069
|
|
||||||||
Total loans held for investment, net
|
$
|
130,413
|
|
|
$
|
4,531
|
|
|
$
|
5,109,795
|
|
|
$
|
27,853
|
|
|
$
|
105,788
|
|
|
$
|
—
|
|
|
$
|
5,345,996
|
|
|
$
|
32,384
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and Land Development
|
$
|
667,018
|
|
|
$
|
69,311
|
|
|
$
|
11,857
|
|
|
$
|
23
|
|
|
$
|
748,209
|
|
Commercial Real Estate - Owner Occupied
|
801,565
|
|
|
32,364
|
|
|
5,533
|
|
|
—
|
|
|
839,462
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
1,505,153
|
|
|
37,631
|
|
|
4,208
|
|
|
—
|
|
|
1,546,992
|
|
|||||
Multifamily Real Estate
|
312,711
|
|
|
19,499
|
|
|
—
|
|
|
—
|
|
|
332,210
|
|
|||||
Commercial & Industrial
|
539,999
|
|
|
9,391
|
|
|
1,062
|
|
|
—
|
|
|
550,452
|
|
|||||
Residential 1-4 Family
|
986,973
|
|
|
18,518
|
|
|
4,813
|
|
|
3,043
|
|
|
1,013,347
|
|
|||||
Auto
|
258,188
|
|
|
3,648
|
|
|
135
|
|
|
100
|
|
|
262,071
|
|
|||||
HELOC
|
519,928
|
|
|
4,225
|
|
|
969
|
|
|
601
|
|
|
525,723
|
|
|||||
Consumer and all other
|
425,520
|
|
|
3,491
|
|
|
40
|
|
|
251
|
|
|
429,302
|
|
|||||
Total
|
$
|
6,017,055
|
|
|
$
|
198,078
|
|
|
$
|
28,617
|
|
|
$
|
4,018
|
|
|
$
|
6,247,768
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and Land Development
|
$
|
663,067
|
|
|
$
|
52,650
|
|
|
$
|
27,980
|
|
|
$
|
37
|
|
|
$
|
743,734
|
|
Commercial Real Estate - Owner Occupied
|
800,979
|
|
|
20,856
|
|
|
8,931
|
|
|
1,932
|
|
|
832,698
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
1,228,956
|
|
|
22,341
|
|
|
5,664
|
|
|
—
|
|
|
1,256,961
|
|
|||||
Multifamily Real Estate
|
315,128
|
|
|
2,017
|
|
|
3,828
|
|
|
—
|
|
|
320,973
|
|
|||||
Commercial & Industrial
|
414,333
|
|
|
16,724
|
|
|
2,396
|
|
|
99
|
|
|
433,552
|
|
|||||
Residential 1-4 Family
|
912,839
|
|
|
34,728
|
|
|
8,037
|
|
|
1,706
|
|
|
957,310
|
|
|||||
Auto
|
230,670
|
|
|
3,109
|
|
|
194
|
|
|
88
|
|
|
234,061
|
|
|||||
HELOC
|
507,514
|
|
|
4,801
|
|
|
1,611
|
|
|
1,009
|
|
|
514,935
|
|
|||||
Consumer and all other
|
299,014
|
|
|
3,996
|
|
|
231
|
|
|
260
|
|
|
303,501
|
|
|||||
Total
|
$
|
5,372,500
|
|
|
$
|
161,222
|
|
|
$
|
58,872
|
|
|
$
|
5,131
|
|
|
$
|
5,597,725
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and Land Development
|
$
|
1,092
|
|
|
$
|
1,432
|
|
|
$
|
398
|
|
|
$
|
—
|
|
|
$
|
2,922
|
|
Commercial Real Estate - Owner Occupied
|
5,520
|
|
|
8,889
|
|
|
3,934
|
|
|
—
|
|
|
18,343
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
10,927
|
|
|
4,638
|
|
|
1,738
|
|
|
—
|
|
|
17,303
|
|
|||||
Multifamily Real Estate
|
343
|
|
|
1,723
|
|
|
—
|
|
|
—
|
|
|
2,066
|
|
|||||
Commercial & Industrial
|
107
|
|
|
480
|
|
|
487
|
|
|
—
|
|
|
1,074
|
|
|||||
Residential 1-4 Family
|
8,557
|
|
|
4,455
|
|
|
2,672
|
|
|
516
|
|
|
16,200
|
|
|||||
HELOC
|
857
|
|
|
183
|
|
|
7
|
|
|
114
|
|
|
1,161
|
|
|||||
Consumer and all other
|
166
|
|
|
37
|
|
|
20
|
|
|
—
|
|
|
223
|
|
|||||
Total
|
$
|
27,569
|
|
|
$
|
21,837
|
|
|
$
|
9,256
|
|
|
$
|
630
|
|
|
$
|
59,292
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and Land Development
|
$
|
2,059
|
|
|
$
|
1,778
|
|
|
$
|
1,908
|
|
|
$
|
241
|
|
|
$
|
5,986
|
|
Commercial Real Estate - Owner Occupied
|
5,260
|
|
|
15,530
|
|
|
6,598
|
|
|
—
|
|
|
27,388
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
4,442
|
|
|
7,827
|
|
|
1,250
|
|
|
—
|
|
|
13,519
|
|
|||||
Multifamily Real Estate
|
356
|
|
|
1,199
|
|
|
—
|
|
|
—
|
|
|
1,555
|
|
|||||
Commercial & Industrial
|
144
|
|
|
359
|
|
|
1,289
|
|
|
21
|
|
|
1,813
|
|
|||||
Residential 1-4 Family
|
9,098
|
|
|
6,380
|
|
|
4,605
|
|
|
1,076
|
|
|
21,159
|
|
|||||
HELOC
|
923
|
|
|
410
|
|
|
20
|
|
|
438
|
|
|
1,791
|
|
|||||
Consumer and all other
|
57
|
|
|
379
|
|
|
90
|
|
|
—
|
|
|
526
|
|
|||||
Total
|
$
|
22,339
|
|
|
$
|
33,862
|
|
|
$
|
15,760
|
|
|
$
|
1,776
|
|
|
$
|
73,737
|
|
|
For the year ended
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Balance at beginning of period
|
$
|
22,139
|
|
|
$
|
28,956
|
|
Accretion
|
(5,611
|
)
|
|
(6,084
|
)
|
||
Reclass of nonaccretable difference due to improvement in expected cash flows
|
5,089
|
|
|
3,886
|
|
||
Other, net
(1)
|
(1,878
|
)
|
|
(4,619
|
)
|
||
Balance at end of period
|
$
|
19,739
|
|
|
$
|
22,139
|
|
|
2016
|
|
2015
|
||||
Land
|
$
|
29,708
|
|
|
$
|
29,839
|
|
Land improvements and buildings
|
97,341
|
|
|
96,943
|
|
||
Leasehold improvements
|
8,760
|
|
|
8,313
|
|
||
Furniture and equipment
|
54,188
|
|
|
49,914
|
|
||
Construction in progress
|
8,827
|
|
|
9,030
|
|
||
Total
|
198,824
|
|
|
194,039
|
|
||
Less accumulated depreciation and amortization
|
76,797
|
|
|
68,011
|
|
||
Bank premises and equipment, net
|
$
|
122,027
|
|
|
$
|
126,028
|
|
2017
|
$
|
6,418
|
|
2018
|
6,037
|
|
|
2019
|
5,197
|
|
|
2020
|
4,345
|
|
|
2021
|
3,959
|
|
|
Thereafter
|
7,080
|
|
|
Total of future payments
|
$
|
33,036
|
|
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
|
Net Carrying
Value
|
||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|||
Amortizable core deposit intangibles
|
$
|
68,367
|
|
|
$
|
51,987
|
|
|
$
|
16,380
|
|
Other amortizable intangibles
|
4,502
|
|
|
280
|
|
|
4,222
|
|
|||
December 31, 2015
|
|
|
|
|
|
|
|
|
|||
Amortizable core deposit intangibles
|
$
|
76,185
|
|
|
$
|
52,875
|
|
|
$
|
23,310
|
|
2017
|
$
|
6,070
|
|
2018
|
4,625
|
|
|
2019
|
3,573
|
|
|
2020
|
2,509
|
|
|
2021
|
1,481
|
|
|
Thereafter
|
2,344
|
|
|
Total estimated amortization expense
|
$
|
20,602
|
|
|
2016
|
|
2015
|
||||
Interest-bearing deposits:
|
|
|
|
|
|
||
NOW accounts
|
$
|
1,765,956
|
|
|
$
|
1,521,906
|
|
Money market accounts
|
1,435,591
|
|
|
1,312,612
|
|
||
Savings accounts
|
591,742
|
|
|
572,800
|
|
||
Time deposits of $250,000 and over
|
189,647
|
|
|
183,520
|
|
||
Other time deposits
|
1,002,928
|
|
|
1,000,161
|
|
||
Total interest-bearing deposits
|
$
|
4,985,864
|
|
|
$
|
4,590,999
|
|
2017
|
$
|
463,884
|
|
2018
|
381,063
|
|
|
2019
|
159,011
|
|
|
2020
|
141,145
|
|
|
2021
|
47,472
|
|
|
Total scheduled maturities of time deposits
|
$
|
1,192,575
|
|
|
2016
|
|
2015
|
||||
Securities sold under agreements to repurchase
|
$
|
59,281
|
|
|
$
|
84,977
|
|
Other short-term borrowings
|
517,500
|
|
|
304,000
|
|
||
Total short-term borrowings
|
$
|
576,781
|
|
|
$
|
388,977
|
|
Maximum month-end outstanding balance
|
$
|
678,262
|
|
|
$
|
445,761
|
|
Average outstanding balance during the period
|
590,074
|
|
|
379,783
|
|
||
Average interest rate during the period
|
0.49
|
%
|
|
0.25
|
%
|
||
Average interest rate at end of period
|
0.60
|
%
|
|
0.27
|
%
|
||
Other short-term borrowings:
|
|
|
|
|
|
||
FHLB
|
$
|
517,500
|
|
|
$
|
304,000
|
|
Other lines of credit
|
—
|
|
|
—
|
|
|
Trust
Preferred
Capital
Securities
(1)
|
|
Investment
(1)
|
|
Spread to
3-Month LIBOR
|
|
Rate
|
|
Maturity
|
||||||
Trust Preferred Capital Note - Statutory Trust I
|
$
|
22,500,000
|
|
|
$
|
696,000
|
|
|
2.75
|
%
|
|
3.75
|
%
|
|
6/17/2034
|
Trust Preferred Capital Note - Statutory Trust II
|
36,000,000
|
|
|
1,114,000
|
|
|
1.40
|
%
|
|
2.40
|
%
|
|
6/15/2036
|
||
VFG Limited Liability Trust I Indenture
|
20,000,000
|
|
|
619,000
|
|
|
2.73
|
%
|
|
3.73
|
%
|
|
3/18/2034
|
||
FNB Statutory Trust II Indenture
|
12,000,000
|
|
|
372,000
|
|
|
3.10
|
%
|
|
4.10
|
%
|
|
6/26/2033
|
||
Total
|
$
|
90,500,000
|
|
|
$
|
2,801,000
|
|
|
|
|
|
|
|
|
|
Long-term Type
|
Spread to
3-Month LIBOR
|
|
Interest Rate
|
|
Maturity Date
|
|
Advance Amount
|
||||
Adjustable Rate Credit
|
0.44
|
%
|
|
1.44
|
%
|
|
8/23/2022
|
|
$
|
55,000
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
1.45
|
%
|
|
11/23/2022
|
|
65,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
1.45
|
%
|
|
11/23/2022
|
|
10,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
1.45
|
%
|
|
11/23/2022
|
|
10,000
|
|
|
Fixed Rate
|
—
|
|
|
3.62
|
%
|
|
11/28/2017
|
|
10,000
|
|
|
Fixed Rate
|
—
|
|
|
3.75
|
%
|
|
7/30/2018
|
|
5,000
|
|
|
Fixed Rate
|
—
|
|
|
3.97
|
%
|
|
7/30/2018
|
|
5,000
|
|
|
Fixed Rate Hybrid
|
—
|
|
|
0.99
|
%
|
|
10/19/2018
|
|
30,000
|
|
|
|
|
|
|
|
|
|
|
|
$
|
190,000
|
|
Long-term Type
|
Spread to
3-Month LIBOR
|
|
Interest Rate
|
|
Maturity Date
|
|
Advance Amount
|
||||
Adjustable Rate Credit
|
0.44
|
%
|
|
1.05
|
%
|
|
8/23/2022
|
|
$
|
55,000
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
1.07
|
%
|
|
11/23/2022
|
|
65,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
1.07
|
%
|
|
11/23/2022
|
|
10,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
1.07
|
%
|
|
11/23/2022
|
|
10,000
|
|
|
Fixed Rate
|
—
|
|
|
3.62
|
%
|
|
11/28/2017
|
|
10,000
|
|
|
Fixed Rate
|
—
|
|
|
3.75
|
%
|
|
7/30/2018
|
|
5,000
|
|
|
Fixed Rate
|
—
|
|
|
3.97
|
%
|
|
7/30/2018
|
|
5,000
|
|
|
Fixed Rate Hybrid
|
—
|
|
|
2.11
|
%
|
|
10/5/2016
|
|
25,000
|
|
|
Fixed Rate Hybrid
|
—
|
|
|
0.91
|
%
|
|
7/25/2016
|
|
15,000
|
|
|
|
|
|
|
|
|
|
|
|
$
|
200,000
|
|
|
Trust
Preferred
Capital Notes
|
|
Subordinated
Debt
|
|
FHLB
Advances
|
|
Premium
(Discount)
|
|
Prepayment
Penalty
|
|
Total Long-term
Borrowings
|
||||||||||||
2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
|
$
|
(30
|
)
|
|
$
|
(1,922
|
)
|
|
$
|
8,048
|
|
2018
|
—
|
|
|
—
|
|
|
40,000
|
|
|
(343
|
)
|
|
(1,970
|
)
|
|
37,687
|
|
||||||
2019
|
—
|
|
|
—
|
|
|
—
|
|
|
(486
|
)
|
|
(2,018
|
)
|
|
(2,504
|
)
|
||||||
2020
|
—
|
|
|
—
|
|
|
—
|
|
|
(501
|
)
|
|
(2,074
|
)
|
|
(2,575
|
)
|
||||||
2021
|
—
|
|
|
—
|
|
|
—
|
|
|
(516
|
)
|
|
(2,119
|
)
|
|
(2,635
|
)
|
||||||
Thereafter
|
93,301
|
|
|
150,000
|
|
|
140,000
|
|
|
(6,307
|
)
|
|
(1,707
|
)
|
|
375,287
|
|
||||||
Total Long-term borrowings
|
$
|
93,301
|
|
|
$
|
150,000
|
|
|
$
|
190,000
|
|
|
$
|
(8,183
|
)
|
|
$
|
(11,810
|
)
|
|
$
|
413,308
|
|
|
2016
|
|
2015
|
||||
Commitments with off-balance sheet risk:
|
|
|
|
|
|
||
Commitments to extend credit
(1)
|
$
|
1,924,885
|
|
|
$
|
1,557,350
|
|
Standby letters of credit
|
84,212
|
|
|
139,371
|
|
||
Total commitments with off-balance sheet risk
|
$
|
2,009,097
|
|
|
$
|
1,696,721
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
|
|
Derivative
(2)
|
|
|
|
Derivative
(2)
|
|
||||||||||||||||||||||||
|
Notional or
Contractual
Amount (1) |
|
Assets
|
|
Liabilities
|
|
Collateral
Pledged
(3)
|
|
Notional or
Contractual
Amount (1) |
|
Assets
|
|
Liabilities
|
|
Collateral
Pledged
(3)
|
||||||||||||||||
Derivatives designated as accounting hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedges
|
$
|
188,500
|
|
|
$
|
211
|
|
|
$
|
9,619
|
|
|
$
|
21,938
|
|
|
$
|
263,000
|
|
|
$
|
946
|
|
|
$
|
10,352
|
|
|
$
|
14,449
|
|
Fair value hedges
|
65,920
|
|
|
1,437
|
|
|
296
|
|
|
—
|
|
|
61,150
|
|
|
—
|
|
|
888
|
|
|
—
|
|
||||||||
Derivatives not designated as accounting hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loan Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pay fixed-receive floating interest rate swaps
|
373,355
|
|
|
—
|
|
|
1,005
|
|
|
—
|
|
|
138,969
|
|
|
3,758
|
|
|
—
|
|
|
—
|
|
||||||||
Pay floating-receive fixed interest rate swaps
|
373,355
|
|
|
1,005
|
|
|
—
|
|
|
16,033
|
|
|
138,969
|
|
|
—
|
|
|
3,758
|
|
|
5,983
|
|
||||||||
Other contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest rate lock commitments
|
48,743
|
|
|
610
|
|
|
—
|
|
|
—
|
|
|
50,369
|
|
|
701
|
|
|
—
|
|
|
—
|
|
||||||||
Best efforts forward delivery commitments
|
85,400
|
|
|
1,469
|
|
|
—
|
|
|
—
|
|
|
84,050
|
|
|
370
|
|
|
—
|
|
|
—
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
Gains (Losses)
on AFS
Securities
|
|
Unrealized
Gain for AFS
Securities
Transferred
to HTM
|
|
Change in Fair
Value of Cash
Flow Hedges
|
|
Unrealized Gains (Losses) on BOLI
|
|
Total
|
||||||||||
Balance - December 31, 2015
|
$
|
7,777
|
|
|
$
|
4,432
|
|
|
$
|
(5,957
|
)
|
|
$
|
—
|
|
|
$
|
6,252
|
|
Other comprehensive income (loss)
|
(8,186
|
)
|
|
—
|
|
|
270
|
|
|
(1,728
|
)
|
|
(9,644
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
(133
|
)
|
|
(1,055
|
)
|
|
508
|
|
|
263
|
|
|
(417
|
)
|
|||||
Net current period other comprehensive income (loss)
|
(8,319
|
)
|
|
(1,055
|
)
|
|
778
|
|
|
(1,465
|
)
|
|
(10,061
|
)
|
|||||
Balance - December 31, 2016
|
$
|
(542
|
)
|
|
$
|
3,377
|
|
|
$
|
(5,179
|
)
|
|
$
|
(1,465
|
)
|
|
$
|
(3,809
|
)
|
|
Unrealized Gains
(Losses) on AFS
Securities
|
|
Unrealized
Gain for AFS
Securities
Transferred
to HTM
|
|
Change in Fair
Value of Cash
Flow Hedges
|
|
Total
|
||||||||
Balance - December 31, 2014
|
$
|
17,439
|
|
|
$
|
—
|
|
|
$
|
(5,184
|
)
|
|
$
|
12,255
|
|
Unrealized gain transferred from AFS to HTM
|
(5,251
|
)
|
|
5,251
|
|
|
—
|
|
|
—
|
|
||||
Other comprehensive income (loss)
|
(3,640
|
)
|
|
—
|
|
|
(1,394
|
)
|
|
(5,034
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
(771
|
)
|
|
(819
|
)
|
|
621
|
|
|
(969
|
)
|
||||
Net current period other comprehensive income (loss)
|
(4,411
|
)
|
|
(819
|
)
|
|
(773
|
)
|
|
(6,003
|
)
|
||||
Balance - December 31, 2015
|
$
|
7,777
|
|
|
$
|
4,432
|
|
|
$
|
(5,957
|
)
|
|
$
|
6,252
|
|
|
Unrealized Gains
(Losses) on AFS
Securities
|
|
Change in Fair
Value of Cash
Flow Hedges
|
|
Total
|
||||||
Balance - December 31, 2013
|
$
|
1,192
|
|
|
$
|
(3,382
|
)
|
|
$
|
(2,190
|
)
|
Other comprehensive income (loss)
|
17,089
|
|
|
(2,393
|
)
|
|
14,696
|
|
|||
Amounts reclassified from accumulated other comprehensive income
|
(842
|
)
|
|
591
|
|
|
(251
|
)
|
|||
Net current period other comprehensive income (loss)
|
16,247
|
|
|
(1,802
|
)
|
|
14,445
|
|
|||
Balance - December 31, 2014
|
$
|
17,439
|
|
|
$
|
(5,184
|
)
|
|
$
|
12,255
|
|
|
Actual
|
|
Required for Capital
Adequacy Purposes
|
|
Required in Order to Be
Well Capitalized Under
PCA
|
||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
$
|
699,728
|
|
|
9.72
|
%
|
|
$
|
324,035
|
|
|
4.50
|
%
|
|
NA
|
|
|
NA
|
|
Union Bank & Trust
|
901,783
|
|
|
12.58
|
%
|
|
322,531
|
|
|
4.50
|
%
|
|
465,878
|
|
|
6.50
|
%
|
||
Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
790,228
|
|
|
10.97
|
%
|
|
432,047
|
|
|
6.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
901,783
|
|
|
12.58
|
%
|
|
430,042
|
|
|
6.00
|
%
|
|
573,389
|
|
|
8.00
|
%
|
||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
976,145
|
|
|
13.56
|
%
|
|
576,062
|
|
|
8.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
939,700
|
|
|
13.11
|
%
|
|
573,390
|
|
|
8.00
|
%
|
|
716,737
|
|
|
10.00
|
%
|
||
Tier 1 capital to average adjusted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
790,228
|
|
|
9.87
|
%
|
|
320,316
|
|
|
4.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
901,783
|
|
|
11.31
|
%
|
|
319,046
|
|
|
4.00
|
%
|
|
398,807
|
|
|
5.00
|
%
|
||
As of December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common equity Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated
|
$
|
691,195
|
|
|
10.55
|
%
|
|
$
|
294,823
|
|
|
4.50
|
%
|
|
NA
|
|
|
NA
|
|
Union Bank & Trust
|
751,992
|
|
|
11.52
|
%
|
|
293,747
|
|
|
4.50
|
%
|
|
424,301
|
|
|
6.50
|
%
|
||
Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
781,695
|
|
|
11.93
|
%
|
|
393,141
|
|
|
6.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
751,992
|
|
|
11.52
|
%
|
|
391,663
|
|
|
6.00
|
%
|
|
522,217
|
|
|
8.00
|
%
|
||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
816,041
|
|
|
12.46
|
%
|
|
523,943
|
|
|
8.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
786,339
|
|
|
12.05
|
%
|
|
522,051
|
|
|
8.00
|
%
|
|
652,563
|
|
|
10.00
|
%
|
||
Tier 1 capital to average adjusted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
781,695
|
|
|
10.68
|
%
|
|
292,770
|
|
|
4.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
751,992
|
|
|
10.31
|
%
|
|
291,752
|
|
|
4.00
|
%
|
|
364,691
|
|
|
5.00
|
%
|
Level 1
|
|
Valuation is based on quoted prices in active markets for identical assets and liabilities.
|
|
|
|
Level 2
|
|
Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the markets.
|
|
|
|
Level 3
|
|
Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. These unobservable inputs reflect the Company’s assumptions about what market participants would use and information that is reasonably available under the circumstances without undue cost and effort.
|
|
Fair Value Measurements at December 31, 2016 using
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
|
||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
—
|
|
|
$
|
275,890
|
|
|
$
|
—
|
|
|
$
|
275,890
|
|
Corporate and other bonds
|
—
|
|
|
121,780
|
|
|
—
|
|
|
121,780
|
|
||||
Mortgage-backed securities
|
—
|
|
|
535,286
|
|
|
—
|
|
|
535,286
|
|
||||
Other securities
|
—
|
|
|
13,808
|
|
|
—
|
|
|
13,808
|
|
||||
Loans held for sale
|
—
|
|
|
36,487
|
|
|
—
|
|
|
36,487
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
—
|
|
|
1,005
|
|
|
—
|
|
|
1,005
|
|
||||
Cash flow hedges
|
—
|
|
|
211
|
|
|
—
|
|
|
211
|
|
||||
Fair value hedge
|
—
|
|
|
1,437
|
|
|
—
|
|
|
1,437
|
|
||||
Interest rate lock commitments
|
—
|
|
|
—
|
|
|
610
|
|
|
610
|
|
||||
Best efforts forward delivery commitments
|
—
|
|
|
—
|
|
|
1,469
|
|
|
1,469
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
$
|
—
|
|
|
$
|
1,005
|
|
|
$
|
—
|
|
|
$
|
1,005
|
|
Cash flow hedges
|
—
|
|
|
9,619
|
|
|
—
|
|
|
9,619
|
|
||||
Fair value hedges
|
—
|
|
|
296
|
|
|
—
|
|
|
296
|
|
|
Fair Value Measurements at December 31, 2015 using
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
|
||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
—
|
|
|
$
|
268,079
|
|
|
$
|
—
|
|
|
$
|
268,079
|
|
Corporate and other bonds
|
—
|
|
|
75,979
|
|
|
—
|
|
|
75,979
|
|
||||
Mortgage-backed securities
|
—
|
|
|
548,171
|
|
|
—
|
|
|
548,171
|
|
||||
Other securities
|
—
|
|
|
11,063
|
|
|
—
|
|
|
11,063
|
|
||||
Loans held for sale
|
—
|
|
|
36,030
|
|
|
—
|
|
|
36,030
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
—
|
|
|
3,758
|
|
|
—
|
|
|
3,758
|
|
||||
Cash flow hedges
|
—
|
|
|
946
|
|
|
—
|
|
|
946
|
|
||||
Interest rate lock commitments
|
—
|
|
|
—
|
|
|
701
|
|
|
701
|
|
||||
Best efforts forward delivery commitments
|
—
|
|
|
—
|
|
|
370
|
|
|
370
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
$
|
—
|
|
|
$
|
3,758
|
|
|
$
|
—
|
|
|
$
|
3,758
|
|
Cash flow hedges
|
—
|
|
|
10,352
|
|
|
—
|
|
|
10,352
|
|
||||
Fair value hedges
|
—
|
|
|
888
|
|
|
—
|
|
|
888
|
|
|
Fair Value Measurements at December 31, 2016 using
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
|
||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,344
|
|
|
$
|
4,344
|
|
Other real estate owned
|
—
|
|
|
—
|
|
|
10,084
|
|
|
10,084
|
|
|
Fair Value Measurements at December 31, 2015 using
|
||||||||||||||
|
Quoted Prices in
Active Markets
for Identical
Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
|
||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,214
|
|
|
$
|
2,214
|
|
Other real estate owned
|
—
|
|
|
—
|
|
|
15,299
|
|
|
15,299
|
|
|
|
|
Fair Value Measurements at December 31, 2016 using
|
||||||||||||||||
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
Total Fair
Value
|
||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
179,237
|
|
|
$
|
179,237
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
179,237
|
|
Securities available for sale
|
946,764
|
|
|
—
|
|
|
946,764
|
|
|
—
|
|
|
946,764
|
|
|||||
Held to maturity securities
|
201,526
|
|
|
—
|
|
|
202,315
|
|
|
—
|
|
|
202,315
|
|
|||||
Restricted stock
|
60,782
|
|
|
—
|
|
|
60,782
|
|
|
—
|
|
|
60,782
|
|
|||||
Loans held for sale
|
36,487
|
|
|
—
|
|
|
36,487
|
|
|
—
|
|
|
36,487
|
|
|||||
Net loans
|
6,269,868
|
|
|
—
|
|
|
—
|
|
|
6,265,443
|
|
|
6,265,443
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
1,005
|
|
|
—
|
|
|
1,005
|
|
|
—
|
|
|
1,005
|
|
|||||
Cash flow hedges
|
211
|
|
|
—
|
|
|
211
|
|
|
—
|
|
|
211
|
|
|||||
Fair value hedges
|
1,437
|
|
|
—
|
|
|
1,437
|
|
|
—
|
|
|
1,437
|
|
|||||
Interest rate lock commitments
|
610
|
|
|
—
|
|
|
—
|
|
|
610
|
|
|
610
|
|
|||||
Best efforts forward delivery commitments
|
1,469
|
|
|
—
|
|
|
—
|
|
|
1,469
|
|
|
1,469
|
|
|||||
Accrued interest receivable
|
23,448
|
|
|
—
|
|
|
23,448
|
|
|
—
|
|
|
23,448
|
|
|||||
Bank owned life insurance
|
179,318
|
|
|
—
|
|
|
179,318
|
|
|
—
|
|
|
179,318
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
$
|
6,379,489
|
|
|
$
|
—
|
|
|
$
|
6,370,457
|
|
|
$
|
—
|
|
|
$
|
6,370,457
|
|
Borrowings
|
990,089
|
|
|
—
|
|
|
970,195
|
|
|
—
|
|
|
970,195
|
|
|||||
Accrued interest payable
|
2,230
|
|
|
—
|
|
|
2,230
|
|
|
—
|
|
|
2,230
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
1,005
|
|
|
—
|
|
|
1,005
|
|
|
—
|
|
|
1,005
|
|
|||||
Cash flow hedges
|
9,619
|
|
|
—
|
|
|
9,619
|
|
|
—
|
|
|
9,619
|
|
|||||
Fair value hedges
|
296
|
|
|
—
|
|
|
296
|
|
|
—
|
|
|
296
|
|
|
|
|
Fair Value Measurements at December 31, 2015 using
|
||||||||||||||||
|
|
|
Quoted Prices
in Active
Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
Total Fair
Value
|
||||||||||
|
Carrying Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
142,660
|
|
|
$
|
142,660
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142,660
|
|
Securities available for sale
|
903,292
|
|
|
—
|
|
|
903,292
|
|
|
—
|
|
|
903,292
|
|
|||||
Held to maturity securities
|
205,374
|
|
|
—
|
|
|
209,437
|
|
|
—
|
|
|
209,437
|
|
|||||
Restricted stock
|
51,828
|
|
|
—
|
|
|
51,828
|
|
|
—
|
|
|
51,828
|
|
|||||
Loans held for sale
|
36,030
|
|
|
—
|
|
|
36,030
|
|
|
—
|
|
|
36,030
|
|
|||||
Net loans
|
5,637,415
|
|
|
—
|
|
|
—
|
|
|
5,671,155
|
|
|
5,671,155
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
3,758
|
|
|
—
|
|
|
3,758
|
|
|
—
|
|
|
3,758
|
|
|||||
Cash flow hedges
|
946
|
|
|
—
|
|
|
946
|
|
|
—
|
|
|
946
|
|
|||||
Interest rate lock commitments
|
701
|
|
|
—
|
|
|
—
|
|
|
701
|
|
|
701
|
|
|||||
Best efforts forward delivery commitments
|
370
|
|
|
—
|
|
|
—
|
|
|
370
|
|
|
370
|
|
|||||
Accrued interest receivable
|
20,760
|
|
|
—
|
|
|
20,760
|
|
|
—
|
|
|
20,760
|
|
|||||
Bank owned life insurance
|
173,687
|
|
|
—
|
|
|
173,687
|
|
|
—
|
|
|
173,687
|
|
|||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
$
|
5,963,936
|
|
|
$
|
—
|
|
|
$
|
5,957,484
|
|
|
$
|
—
|
|
|
$
|
5,957,484
|
|
Borrowings
|
680,175
|
|
|
—
|
|
|
659,364
|
|
|
—
|
|
|
659,364
|
|
|||||
Accrued interest payable
|
1,578
|
|
|
—
|
|
|
1,578
|
|
|
—
|
|
|
1,578
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
3,758
|
|
|
—
|
|
|
3,758
|
|
|
—
|
|
|
3,758
|
|
|||||
Cash flow hedges
|
10,352
|
|
|
—
|
|
|
10,352
|
|
|
—
|
|
|
10,352
|
|
|||||
Fair value hedges
|
888
|
|
|
—
|
|
|
888
|
|
|
—
|
|
|
888
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
401(k) Plan
|
$
|
3,263
|
|
|
$
|
3,120
|
|
|
$
|
3,715
|
|
ESOP
|
1,425
|
|
|
1,146
|
|
|
3,440
|
|
|||
Cash
|
1,496
|
|
|
1,146
|
|
|
983
|
|
|||
Total
|
$
|
6,184
|
|
|
$
|
5,412
|
|
|
$
|
8,138
|
|
|
Year Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Stock-based compensation expense
|
$
|
3,270
|
|
|
$
|
1,388
|
|
|
$
|
979
|
|
Reduction of income tax expense
|
1,104
|
|
|
405
|
|
|
234
|
|
|||
Per share compensation cost
|
$
|
0.05
|
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
Stock Options
(shares)
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Aggregate
Intrinsic Value
|
|||||
Outstanding as of December 31, 2015
|
298,743
|
|
|
$
|
16.40
|
|
|
|
|
|
|
|
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Exercised
|
(88,409
|
)
|
|
16.10
|
|
|
|
|
|
|
||
Forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Expired
|
(22,074
|
)
|
|
30.12
|
|
|
|
|
|
|||
Outstanding as of December 31, 2016
|
188,260
|
|
|
14.94
|
|
|
3.67
|
|
$
|
3,915,988
|
|
|
Exercisable as of December 31, 2016
|
170,466
|
|
|
15.00
|
|
|
3.53
|
|
3,536,264
|
|
|
Number of Shares of
RSAs
|
|
Weighted Average
Grant-Date Fair
Value
|
|||
Balance, December 31, 2015
|
305,056
|
|
|
$
|
22.64
|
|
Granted
|
137,690
|
|
|
23.94
|
|
|
Net settle for taxes
|
(23,123
|
)
|
|
26.30
|
|
|
Vested
|
(43,618
|
)
|
|
19.39
|
|
|
Forfeited
|
(4,567
|
)
|
|
23.05
|
|
|
Balance, December 31, 2016
|
371,438
|
|
|
23.70
|
|
|
Number of Shares of
PSUs
|
|
Weighted Average Grant-
Date Fair Value
|
|||
Balance, December 31, 2015
|
95,742
|
|
|
$
|
18.51
|
|
Granted
|
76,469
|
|
|
15.06
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
(29,808
|
)
|
|
18.23
|
|
|
Balance, December 31, 2016
|
142,403
|
|
|
16.72
|
|
|
2016
|
|
Dividend yield
(1)
|
3.36
|
%
|
Expected life in years
(2)
|
2.85
|
|
Expected volatility
(3)
|
22.16
|
%
|
Risk-free interest rate
(4)
|
0.83
|
%
|
|
Stock Options
|
|
Restricted Stock
|
|
Performance
Stock
|
|
Total
|
||||||||
2017
|
$
|
13
|
|
|
$
|
2,353
|
|
|
$
|
604
|
|
|
$
|
2,970
|
|
2018
|
—
|
|
|
1,919
|
|
|
395
|
|
|
2,314
|
|
||||
2019
|
—
|
|
|
1,164
|
|
|
—
|
|
|
1,164
|
|
||||
2020
|
—
|
|
|
100
|
|
|
—
|
|
|
100
|
|
||||
Total
|
$
|
13
|
|
|
$
|
5,536
|
|
|
$
|
999
|
|
|
$
|
6,548
|
|
|
2016
|
|
2015
|
||||
Deferred tax assets:
|
|
|
|
|
|
||
Allowance for loan losses
|
$
|
13,017
|
|
|
$
|
11,916
|
|
Benefit plans
|
3,898
|
|
|
3,475
|
|
||
Acquisition accounting
|
11,297
|
|
|
13,888
|
|
||
Stock grants
|
1,371
|
|
|
1,679
|
|
||
Other real estate owned
|
3,156
|
|
|
4,589
|
|
||
Securities available for sale
|
291
|
|
|
105
|
|
||
Prime loan swap
|
3,147
|
|
|
2,724
|
|
||
Investments in pass through entities
|
835
|
|
|
1,366
|
|
||
Other
|
2,408
|
|
|
2,212
|
|
||
Total deferred tax assets
|
$
|
39,420
|
|
|
$
|
41,954
|
|
Deferred tax liabilities:
|
|
|
|
|
|
||
Acquisition accounting
|
$
|
11,645
|
|
|
$
|
13,282
|
|
Premises and equipment
|
4,843
|
|
|
4,588
|
|
||
Securities available for sale
|
1,818
|
|
|
6,861
|
|
||
Other
|
806
|
|
|
2,429
|
|
||
Total deferred tax liabilities
|
19,112
|
|
|
27,160
|
|
||
Net deferred tax asset
|
$
|
20,308
|
|
|
$
|
14,794
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Current tax expense
|
$
|
26,535
|
|
|
$
|
24,521
|
|
|
$
|
15,481
|
|
Deferred tax expense (benefit)
|
243
|
|
|
(1,212
|
)
|
|
2,644
|
|
|||
Income tax expense
|
$
|
26,778
|
|
|
$
|
23,309
|
|
|
$
|
18,125
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Computed "expected" tax expense
|
$
|
36,489
|
|
|
$
|
31,636
|
|
|
$
|
24,601
|
|
(Decrease) in taxes resulting from:
|
|
|
|
|
|
|
|
|
|||
Tax-exempt interest income, net
|
(6,087
|
)
|
|
(5,865
|
)
|
|
(5,181
|
)
|
|||
Other, net
|
(3,624
|
)
|
|
(2,462
|
)
|
|
(1,295
|
)
|
|||
Income tax expense
|
$
|
26,778
|
|
|
$
|
23,309
|
|
|
$
|
18,125
|
|
|
Net Income
(Numerator)
|
|
Weighted Average
Shares
(Denominator)
|
|
Per Share
Amount
|
|||||
For the Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
||
Basic EPS
|
$
|
77,476
|
|
|
43,784
|
|
|
$
|
1.77
|
|
Effect of dilutive stock awards
|
—
|
|
|
106
|
|
|
—
|
|
||
Diluted EPS
|
$
|
77,476
|
|
|
43,890
|
|
|
$
|
1.77
|
|
For the Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|||
Basic EPS
|
$
|
67,079
|
|
|
45,055
|
|
|
$
|
1.49
|
|
Effect of dilutive stock awards
|
—
|
|
|
84
|
|
|
—
|
|
||
Diluted EPS
|
$
|
67,079
|
|
|
45,139
|
|
|
$
|
1.49
|
|
For the Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|||
Basic EPS
|
$
|
52,164
|
|
|
46,036
|
|
|
$
|
1.13
|
|
Effect of dilutive stock awards
|
—
|
|
|
95
|
|
|
—
|
|
||
Diluted EPS
|
$
|
52,164
|
|
|
46,131
|
|
|
$
|
1.13
|
|
|
Community Bank
|
|
Mortgage
|
|
Eliminations
|
|
Consolidated
|
||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income
|
$
|
263,714
|
|
|
$
|
1,436
|
|
|
$
|
—
|
|
|
$
|
265,150
|
|
Provision for credit losses
|
8,883
|
|
|
217
|
|
|
—
|
|
|
9,100
|
|
||||
Net interest income after provision for credit losses
|
254,831
|
|
|
1,219
|
|
|
—
|
|
|
256,050
|
|
||||
Noninterest income
|
59,505
|
|
|
12,008
|
|
|
(606
|
)
|
|
70,907
|
|
||||
Noninterest expenses
|
212,774
|
|
|
10,535
|
|
|
(606
|
)
|
|
222,703
|
|
||||
Income before income taxes
|
101,562
|
|
|
2,692
|
|
|
—
|
|
|
104,254
|
|
||||
Income tax expense
|
25,846
|
|
|
932
|
|
|
—
|
|
|
26,778
|
|
||||
Net income
|
$
|
75,716
|
|
|
$
|
1,760
|
|
|
$
|
—
|
|
|
$
|
77,476
|
|
Total assets
|
$
|
8,419,625
|
|
|
$
|
93,581
|
|
|
$
|
(86,413
|
)
|
|
$
|
8,426,793
|
|
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income
|
$
|
250,510
|
|
|
$
|
1,324
|
|
|
$
|
—
|
|
|
$
|
251,834
|
|
Provision for credit losses
|
9,450
|
|
|
121
|
|
|
—
|
|
|
9,571
|
|
||||
Net interest income after provision for credit losses
|
241,060
|
|
|
1,203
|
|
|
—
|
|
|
242,263
|
|
||||
Noninterest income
|
55,645
|
|
|
10,044
|
|
|
(682
|
)
|
|
65,007
|
|
||||
Noninterest expenses
|
205,993
|
|
|
11,571
|
|
|
(682
|
)
|
|
216,882
|
|
||||
Income (loss) before income taxes
|
90,712
|
|
|
(324
|
)
|
|
—
|
|
|
90,388
|
|
||||
Income tax expense (benefit)
|
23,431
|
|
|
(122
|
)
|
|
—
|
|
|
23,309
|
|
||||
Net income (loss)
|
$
|
67,281
|
|
|
$
|
(202
|
)
|
|
$
|
—
|
|
|
$
|
67,079
|
|
Total assets
|
$
|
7,690,132
|
|
|
$
|
57,900
|
|
|
$
|
(54,741
|
)
|
|
$
|
7,693,291
|
|
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income
|
$
|
253,956
|
|
|
$
|
1,062
|
|
|
$
|
—
|
|
|
$
|
255,018
|
|
Provision for credit losses
|
7,800
|
|
|
—
|
|
|
—
|
|
|
7,800
|
|
||||
Net interest income after provision for credit losses
|
246,156
|
|
|
1,062
|
|
|
—
|
|
|
247,218
|
|
||||
Noninterest income
|
51,878
|
|
|
10,091
|
|
|
(682
|
)
|
|
61,287
|
|
||||
Noninterest expenses
|
222,311
|
|
|
16,587
|
|
|
(682
|
)
|
|
238,216
|
|
||||
Income (loss) before income taxes
|
75,723
|
|
|
(5,434
|
)
|
|
—
|
|
|
70,289
|
|
||||
Income tax expense (benefit)
|
20,061
|
|
|
(1,936
|
)
|
|
—
|
|
|
18,125
|
|
||||
Net income (loss)
|
$
|
55,662
|
|
|
$
|
(3,498
|
)
|
|
$
|
—
|
|
|
$
|
52,164
|
|
Total assets
|
$
|
7,354,058
|
|
|
$
|
51,485
|
|
|
$
|
(46,900
|
)
|
|
$
|
7,358,643
|
|
|
2016
|
|
2015
|
||||
ASSETS
|
|
|
|
|
|
||
Cash
|
$
|
10,681
|
|
|
$
|
10,386
|
|
Premises and equipment, net
|
11,470
|
|
|
11,875
|
|
||
Other assets
|
10,864
|
|
|
8,462
|
|
||
Investment in subsidiaries
|
1,213,484
|
|
|
1,067,611
|
|
||
Total assets
|
$
|
1,246,499
|
|
|
$
|
1,098,334
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Long-term borrowings
|
148,000
|
|
|
7,500
|
|
||
Trust preferred capital notes
|
86,559
|
|
|
86,312
|
|
||
Other liabilities
|
10,908
|
|
|
9,155
|
|
||
Total liabilities
|
245,467
|
|
|
102,967
|
|
||
Total stockholders' equity
|
1,001,032
|
|
|
995,367
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,246,499
|
|
|
$
|
1,098,334
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Income:
|
|
|
|
|
|
|
|
|
|||
Interest and dividend income
|
$
|
23
|
|
|
$
|
8
|
|
|
$
|
5
|
|
Dividends received from subsidiaries
|
51,439
|
|
|
51,496
|
|
|
75,470
|
|
|||
Equity in (distributed) undistributed net income from subsidiaries
|
31,984
|
|
|
20,800
|
|
|
(15,909
|
)
|
|||
Other operating income
|
1,314
|
|
|
1,228
|
|
|
1,393
|
|
|||
Total income
|
84,760
|
|
|
73,532
|
|
|
60,959
|
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|||
Interest expense
|
5,656
|
|
|
4,697
|
|
|
4,581
|
|
|||
Occupancy expenses
|
549
|
|
|
556
|
|
|
573
|
|
|||
Furniture and equipment expenses
|
18
|
|
|
9
|
|
|
20
|
|
|||
Other operating expenses
|
1,061
|
|
|
1,191
|
|
|
3,621
|
|
|||
Total expenses
|
7,284
|
|
|
6,453
|
|
|
8,795
|
|
|||
Net income
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Comprehensive income
|
$
|
67,415
|
|
|
$
|
61,076
|
|
|
$
|
66,609
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Equity in distributed (undistributed) net income of subsidiaries
|
(31,984
|
)
|
|
(20,800
|
)
|
|
15,909
|
|
|||
Depreciation of premises and equipment
|
438
|
|
|
435
|
|
|
464
|
|
|||
Acquisition accounting amortization, net
|
247
|
|
|
235
|
|
|
224
|
|
|||
Issuance of common stock grants for services
|
533
|
|
|
564
|
|
|
713
|
|
|||
Net (increase) decrease in other assets
|
(2,402
|
)
|
|
902
|
|
|
2,964
|
|
|||
Net (decrease) increase in other liabilities
|
5,533
|
|
|
6,124
|
|
|
(7,286
|
)
|
|||
Net cash and cash equivalents provided by operating activities
|
49,841
|
|
|
54,539
|
|
|
65,152
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|||
Net decrease (increase) in premises and equipment
|
(33
|
)
|
|
(35
|
)
|
|
863
|
|
|||
Payments for equity method investment
|
—
|
|
|
(355
|
)
|
|
(60
|
)
|
|||
Payments for investments in and advances to subsidiaries
|
(125,000
|
)
|
|
—
|
|
|
—
|
|
|||
Repayment of investments in and advances to subsidiaries
|
540
|
|
|
—
|
|
|
—
|
|
|||
Cash received in acquisitions
|
—
|
|
|
—
|
|
|
4,735
|
|
|||
Net cash and cash equivalents provided by (used in) investing activities
|
(124,493
|
)
|
|
(390
|
)
|
|
5,538
|
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|||
Advances (repayments) of short-term borrowings
|
—
|
|
|
(8,000
|
)
|
|
8,000
|
|
|||
Repayments of long-term borrowings
|
(7,500
|
)
|
|
(625
|
)
|
|
(625
|
)
|
|||
Proceeds from issuance of long-term borrowings
|
148,000
|
|
|
—
|
|
|
—
|
|
|||
Cash dividends paid
|
(33,672
|
)
|
|
(29,082
|
)
|
|
(25,494
|
)
|
|||
Net Issuance (repurchase) of common stock
|
(31,881
|
)
|
|
(15,748
|
)
|
|
(52,971
|
)
|
|||
Net cash and cash equivalents provided by (used in) financing activities
|
74,947
|
|
|
(53,455
|
)
|
|
(71,090
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
295
|
|
|
694
|
|
|
(400
|
)
|
|||
Cash and cash equivalents at beginning of the period
|
10,386
|
|
|
9,692
|
|
|
10,092
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
10,681
|
|
|
$
|
10,386
|
|
|
$
|
9,692
|
|
Supplemental schedule of noncash investing and financing activities
|
|
|
|
|
|
|
|
|
|||
Issuance of common stock in exchange for net assets in acquisition
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
549,523
|
|
|
|
|
|
|
|
||||||
Transactions related to bank acquisition
|
|
|
|
|
|
|
|
|
|||
Assets acquired
|
—
|
|
|
—
|
|
|
2,957,521
|
|
|||
Liabilities assumed
|
—
|
|
|
—
|
|
|
2,642,120
|
|
Name (Age)
|
|
Title and Principal Occupation
During at Least the Past Five Years
|
|
|
|
John C. Asbury (51)
|
|
Chief Executive Officer of the Company since January 2017 and President since October 2016; President and Chief Executive Officer of Union Bank & Trust since October 2016; President and Chief Executive Officer of First National Bank of Santa Fe from February 2015 until August 2016; prior to that, Senior Executive Vice President and Head of the Business Services Group at Regions Bank from May 2010 until July 2014; also served as a Senior Vice President at Bank of America in a variety of roles; received his B.S. degree in Business from Virginia Tech and his M.B.A. from The College of William & Mary.
|
|
|
|
G. William Beale (67)
|
|
Chief Executive Officer of the Company from February 2010 until January 2017 and President of the Company from October 2013 until January 2017; President and Chief Executive Officer of the Company from its inception in 1993 to February 2010; Chief Executive Officer of Union Bank & Trust, the Company’s wholly owned bank subsidiary, from February 2010 to October 2016 and President of Union Bank & Trust from January 2016 to October 2016; President and Chief Executive Officer of Union Bank and Trust Company, a predecessor of Union Bank & Trust, from 1991 to 2004.
|
|
|
|
Robert M. Gorman (58)
|
|
Executive Vice President and Chief Financial Officer of the Company since joining the Company in July 2012; Senior Vice President and Director of Corporate Support Services in 2011, and Senior Vice President and Strategic Financial Officer of SunTrust Banks, Inc., from 2002 to 2011; serves as a member of the Board of Directors of the Company's affiliate, Old Dominion Capital Management, Inc.
|
|
|
|
D. Anthony Peay (57)
|
|
Executive Vice President of the Company since 2003; Chief Banking Officer of Union Bank & Trust since April 2012; Chief Financial Officer of the Company from 1994 to June 2012.
|
|
|
|
Elizabeth M. Bentley (56)
|
|
Executive Vice President of the Company since 2007; Chief Retail Officer of Union Bank & Trust since 2007; Senior Vice President of Union Bank & Trust from 2005 to 2007; Vice President of Union Bank & Trust from 2002 to 2005; joined the Company in 1998 as an Assistant Vice President.
|
|
|
|
David G. Bilko (58)
|
|
Executive Vice President and Chief Risk Officer of the Company since joining the Company in January 2014; Chief Risk Officer of StellarOne Corporation from January 2012 to January 2014; Chief Audit Officer of StellarOne Corporation from June 2011 to January 2012; Corporate Operational Risk Officer of SunTrust Banks, Inc. from May 2010 to May 2011; Chief Audit Executive of SunTrust Banks, Inc. from November 2005 to April 2010; various positions with SunTrust Banks, Inc. since 1987; serves as a member of the Board of Directors of the Company's affiliate, Old Dominion Capital Management, Inc.
|
|
|
|
M. Dean Brown (52)
|
|
Executive Vice President and Chief Information Officer & Head of Bank Operations since joining the Company in February 2015; Chief Information and Back Office Operations Officer of Intersections Inc. from 2012 to 2014; Chief Information Officer of Advance America from 2009 to 2012; Senior Vice President and General Manager of Revolution Money from 2007 to 2008; Executive Vice President, Chief Information Officer and Chief Operating Officer from 2006 to 2007, and Executive Vice President and Chief Information Officer from 2005 to 2007, of Upromise LLC.
|
Name (Age)
|
|
Title and Principal Occupation
During at Least the Past Five Years
|
|
|
|
Jeffrey W. Farrar (56)
|
|
Executive Vice President and Director of Wealth Management, Mortgage & Insurance of the Company since January 2014; Executive Vice President and Chief Financial Officer of StellarOne Corporation from January 2002 to January 2014; Executive Vice President and Chief Financial Officer of Virginia Commonwealth Financial Corporation and its predecessor, Second National Financial Corporation since 1996; serves as Chairman of the Boards of Directors of the Company’s affiliates, Union Mortgage Group, Inc. and Old Dominion Capital Management, Inc.
|
|
|
|
Loreen A. Lagatta (48)
|
|
Executive Vice President and Chief Human Resources Officer of the Company since 2015; Senior Vice President and Director of Human Resources of Union Bank & Trust from 2011 to 2015; Director of Human Resources of Capital One Financial Corporation from June 2008 to October 2011; Vice President, Compensation – Brokerage Division of Wells Fargo Securities (formerly, Wachovia Corporation) from 2006 to June 2008; Vice President, Senior HR Business Partner – Alternative Investments of Citigroup Inc. from 2000 to 2006, and various positions with Citigroup, Inc. since 1991.
|
|
Number of securities to be
issued upon exercise of
outstanding warrants and
rights
(A)
|
|
Weighted-average
exercise price of
outstanding options,
warrants and rights
(B)
|
|
Number of securities remaining
available for future issuance
under equity compensation
plans (excluding securities
reflected in column (A))
(C)
|
||||
Equity compensation plans approved by security holders
|
188,260
|
|
|
$
|
14.94
|
|
|
1,666,637
|
|
|
|
|
|
|
|
||||
Total
|
188,260
|
|
|
$
|
14.94
|
|
|
1,666,637
|
|
Exhibit No.
|
|
|
Description
|
2.01
|
|
|
Agreement and Plan of Reorganization, dated as of June 9, 2013, between Union First Market Bankshares Corporation and StellarOne Corporation (incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K filed on June 12, 2013)
|
|
|
|
|
3.01
|
|
|
Articles of Incorporation of Union Bankshares Corporation, as amended April 25, 2014 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K filed on April 29, 2014)
|
|
|
|
|
3.02
|
|
|
Bylaws of Union Bankshares Corporation, as amended January 21, 2017.
|
|
|
|
|
4.01
|
|
|
Subordinated Indenture, dated as of December 5, 2016, between Union Bankshares Corporation and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed on December 5, 2016)
|
|
|
|
|
4.02
|
|
|
First Supplemental Indenture, dated as of December 5, 2016, between Union Bankshares Corporation and U.S. Bank National Association as Trustee (incorporated by reference to Exhibit 4.2 to Current Report on Form 8-K filed on December 5, 2016)
|
|
|
|
|
4.03
|
|
|
Form of 5.00% Fixed-to-Floating Rate Subordinated Note due 2016 (included as Exhibit A in Exhibit 4.2 filed with, and incorporated herein by reference, to the Company’s Current Report on Form 8-K filed December 5, 2016)
|
|
|
Certain instruments relating to trust preferred securities not being registered have been omitted in accordance with Item 601(b)(4)(iii) of Regulation S-K. The registrant will furnish a copy of any such instrument to the Securities and Exchange Commission upon its request.
|
10.01
|
|
|
Amended and Restated Management Continuity Agreement between Union Bankshares Corporation and G. William Beale, dated November 21, 2000 (incorporated by reference to Exhibit 10.01 to Annual Report on Form 10-K filed on March 16, 2009)
|
|
|
|
|
10.02
|
|
|
Amended and Restated Employment Agreement by and between Union Bankshares Corporation and G. William Beale, dated May 1, 2006 (incorporated by reference to Exhibit 10.02 to Annual Report on Form 10-K filed on March 16, 2009)
|
|
|
|
|
10.03
|
|
|
Amended and Restated Management Continuity Agreement between Union Bankshares Corporation and D. Anthony Peay, dated November 21, 2000 (incorporated by reference to Exhibit 10.03 to Annual Report on Form 10-K filed on March 16, 2009)
|
|
|
|
|
10.04
|
|
|
Letter Agreement, dated September 28, 2015, between Union Bankshares Corporation and John C. Neal (incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K filed on October 1, 2015)
|
|
|
|
|
10.05
|
|
|
Amended and Restated Management Continuity Agreement of John C. Neal (incorporated by reference to Exhibit 10.04 to Annual Report on Form 10-K filed on March 16, 2009)
|
|
|
|
|
10.06
|
|
|
Amended and Restated Employment Agreement of John C. Neal (incorporated by reference to Exhibit 10.04 to Annual Report on Form 10-K filed on March 16, 2009)
|
|
|
|
|
10.07
|
|
|
Amended and Restated Employment Agreement by and between Union Bankshares Corporation and D. Anthony Peay, dated December 31, 2008 (incorporated by reference to Exhibit 10.09 to Annual Report on Form 10-K filed on March 16, 2009)
|
|
|
|
|
10.08
|
|
|
Amended and Restated Employment Agreement by and between Union First Market Bankshares Corporation and Elizabeth M. Bentley, dated October 24, 2011 (incorporated by reference to Exhibit 99.2 to Current Report on Form 8-K filed on October 25, 2011)
|
|
|
|
|
10.09
|
|
|
Management Continuity Agreement by and between Union First Market Bankshares Corporation and Elizabeth M. Bentley, dated October 24, 2011 (incorporated by reference to Exhibit 99.3 to Current Report on Form 8-K filed on October 25, 2011)
|
|
|
|
|
10.10
|
|
|
Amended and Restated Management Continuity Agreement between Union First Market Bankshares Corporation and Robert M. Gorman, dated July 17, 2012 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on December 11, 2012)
|
|
|
|
|
10.11
|
|
|
Employment Agreement by and between Union First Market Bankshares and Robert M. Gorman, dated July 17, 2012 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on July 20, 2012)
|
|
|
|
|
10.12
|
|
|
Management Continuity Agreement of M. Dean Brown (incorporated by Reference to Exhibit 10.12 to Annual Report on Form 10-K filed February 25, 2016)
|
|
|
|
|
10.13
|
|
|
Union Bankshares Corporation 2003 Stock Incentive Plan (incorporated by reference to Exhibit 99.0 to Form S-8 Registration Statement filed on March 3, 2004; SEC file no. 333-113839)
|
|
|
|
|
10.14
|
|
|
Union Bankshares Corporation Stock and Incentive Plan (as amended and restated effective April 21, 2015) (incorporated by reference to Exhibit 99.1 to Form S-8 Registration Statement filed April 23, 2015; SEC file no. 333-203580)
|
|
|
|
|
10.15
|
|
|
1995 Supplemental Compensation Agreement between Union Bank and Trust Company and G. William Beale, as amended, dated October 20, 2014 (incorporated by reference to Exhibit 10.14 to Annual Report on Form 10-K filed on February 27, 2015)
|
|
|
|
|
10.16
|
|
|
1995 Supplemental Compensation Agreement between Union Bank and Trust Company and Daniel I. Hansen, as amended, dated July 18, 1995 (incorporated by reference to Exhibit 10.15 to Annual Report on Form 10-K filed on February 27, 2015)
|
|
|
|
|
10.17
|
|
|
Supplemental Compensation Agreement between Union Bank & Trust and Ronald L. Hicks (incorporated by reference to Exhibit 10.16 to Annual Report on Form 10-K filed on February 27, 2015)
|
|
|
|
|
10.18
|
|
|
Restated Virginia Bankers Association Non-Qualified Deferred Compensation Plan for Executives of Union Bankshares Corporation, as restated effective January 1, 2008 (incorporated by reference to Exhibit 10.17 to Annual Report on Form 10-K filed on February 27, 2015)
|
|
|
|
|
10.19
|
|
|
Restated Virginia Bankers Association Non-Qualified Deferred Compensation Plan for Directors of Union Bankshares Corporation, as restated effective January 1, 2008 (incorporated by reference to Exhibit 10.18 to Annual Report on Form 10-K filed on February 27, 2015)
|
|
|
|
|
10.20
|
|
|
Registration Rights Agreement, dated February 1, 2010, by and among Union Bankshares Corporation and the shareholders of First Market Bank, FSB (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on February 5, 2010)
|
10.21
|
|
|
Stock Purchase Agreement, dated as of March 7, 2013, by and between Union Bankshares Corporation and Markel Corporation (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on March 8, 2013)
|
|
|
|
|
10.22
|
|
|
Form of Time-Based Restricted Stock Agreement under Union Bankshares Corporation Stock and Incentive Plan (incorporated by reference to Exhibit 10.23 to Current Report on Form 8-K filed on April 27, 2015)
|
|
|
|
|
10.23
|
|
|
Form of Performance Share Unit Agreement under Union Bankshares Corporation Stock and Incentive Plan (incorporated by reference to Exhibit 10.24 to Current Report on Form 8-K filed on April 27, 2015)
|
|
|
|
|
10.24
|
|
|
Union Bankshares Corporation Executive Severance Plan (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on December 16, 2015)
|
|
|
|
|
10.25
|
|
|
Employment Agreement by and between Union Bankshares Corporation and John C. Asbury, dated August 23, 2016 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on August 24, 2016).
|
|
|
|
|
10.26
|
|
|
Management Continuity Agreement by and between Union Bankshares Corporation and John C. Asbury, dated August 23, 2016 (incorporated by reference to Exhibit 10.2 to Current Report on Form 8-K on August 24, 2016).
|
|
|
|
|
10.27
|
|
|
Transition Agreement by and between Union Bankshares Corporation and G. William Beale, dated August 23, 2016 (incorporated by reference to Exhibit 10.3 to Current Report on Form 8-K filed on August 24, 2016).
|
|
|
|
|
10.28
|
|
|
Change of Control Waiver between Union Bankshares Corporation and David G. Bilko, dated August 14, 2013 and Change of Control Agreement between StellarOne Corporation and David G. Bilko, dated June 23, 2011
|
|
|
|
|
10.29
|
|
|
Schedule of Union Bankshares Corporation Non-Employee Directors' Annual Compensation
|
|
|
|
|
10.30
|
|
|
Management Incentive Plan
|
|
|
|
|
11.01
|
|
|
Statement re: Computation of Per Share Earnings (incorporated by reference to Note 16 of the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K)
|
|
|
|
|
12.01
|
|
|
Computation of Ratios of Earnings to Fixed Charges and Preferred Dividends
|
|
|
|
|
21.01
|
|
|
Subsidiaries of Union Bankshares Corporation
|
|
|
|
|
23.01
|
|
|
Consent of Ernst & Young LLP
|
|
|
|
|
23.02
|
|
|
Consent of Yount, Hyde & Barbour, P.C.
|
|
|
|
|
31.01
|
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
31.02
|
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
32.01
|
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
101.00
|
|
|
Interactive data filed pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2016 and 2015, (ii) the Consolidated Statements of Income for the years ended December 31, 2016, 2015, and 2014, (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2016, 2015, and 2014, (iv) the Consolidated Statements of Changes in Shareholders’ Equity for the years ended December 31, 2016, 2015, and 2014, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015, and 2014 and (vi) the Notes to the Consolidated Financial Statements.
|
By:
|
/s/ John C. Asbury
|
|
Date: February 28, 2017
|
|
John C. Asbury
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
/s/ L. Bradford Armstrong
|
|
Director
|
L. Bradford Armstrong
|
|
|
|
|
|
/s/ John C. Asbury
|
|
President and Chief Executive Officer (principal executive officer)
|
John C. Asbury
|
|
|
|
|
|
/s/ G. William Beale
|
|
Executive Vice Chairman of the Board of Directors
|
G. William Beale
|
|
|
|
|
|
/s/ Glen C. Combs
|
|
Director
|
Glen C. Combs
|
|
|
|
|
|
/s/ Beverley E. Dalton
|
|
Director
|
Beverley E. Dalton
|
|
|
|
|
|
/s/ Gregory L. Fisher
|
|
Director
|
Gregory L. Fisher
|
|
|
|
|
|
/s/ Robert M. Gorman
|
|
Executive Vice President and Chief Financial Officer (principal financial and accounting officer)
|
Robert M. Gorman
|
|
|
|
|
|
/s/ Daniel I. Hansen
|
|
Director
|
Daniel I. Hansen
|
|
|
|
|
|
/s/ Jan S. Hoover
|
|
Director
|
Jan S. Hoover
|
|
|
|
|
|
/s/ Patrick J. McCann
|
|
Director
|
Patrick J. McCann
|
|
|
|
|
|
/s/ W. Tayloe Murphy, Jr.
|
|
Director
|
W. Tayloe Murphy, Jr.
|
|
|
|
|
|
/s/ Alan W. Myers
|
|
Director
|
Alan W. Myers
|
|
|
Signature
|
|
Title
|
|
|
|
/s/ Thomas P. Rohman
|
|
Director
|
Thomas P. Rohman
|
|
|
|
|
|
/s/ Linda V. Schreiner
|
|
Director
|
Linda V. Schreiner
|
|
|
|
|
|
/s/ Raymond L. Slaughter
|
|
Director
|
Raymond L. Slaughter
|
|
|
|
|
|
/s/ Raymond D. Smoot, Jr.
|
|
Chairman of the Board of Directors
|
Raymond D. Smoot, Jr.
|
|
|
|
|
|
/s/ Charles W. Steger
|
|
Director
|
Charles W. Steger
|
|
|
|
|
|
/s/ Ronald L. Tillett
|
|
Vice Chairman of the Board of Directors
|
Ronald L. Tillett
|
|
|
|
|
|
/s/ Keith L. Wampler
|
|
Director
|
Keith L. Wampler
|
|
|
|
|
PAGE
|
|
ARTICLE I
|
|||
MEETINGS OF SHAREHOLDERS
|
|||
|
|
|
|
Section 1.
|
Places of Meetings
|
1
|
|
Section 2.
|
Annual Meeting
|
1
|
|
Section 3.
|
Special Meetings
|
1
|
|
Section 4.
|
Notice of Shareholder Business
|
1
|
|
Section 5.
|
Notice of Meeting
|
2
|
|
Section 6.
|
Waiver of Notice
|
3
|
|
Section 7.
|
Quorum
|
3
|
|
Section 8.
|
Proxies
|
3
|
|
Section 9.
|
Organization
|
3
|
|
Section 10.
|
Voting
|
3
|
|
Section 11.
|
List of Shareholders
|
3
|
|
Section 12.
|
Conduct of Meetings
|
4
|
|
|
|
|
|
ARTICLE II
|
|||
DIRECTORS
|
|||
|
|
|
|
Section 1.
|
General Powers
|
4
|
|
Section 2.
|
Number and Qualification
|
4
|
|
Section 3.
|
Election of Directors
|
5
|
|
Section 4.
|
Chairman of the Board
|
5
|
|
Section 5.
|
Meetings of Directors
|
5
|
|
Section 6.
|
Action Without a Meeting
|
6
|
|
Section 7.
|
Participation by Conference Telephone
|
6
|
|
Section 8.
|
Maximum Age for Directors
|
6
|
|
|
|
|
|
ARTICLE III
|
|||
COMMITTEES OF THE BOARD
|
|||
|
|
|
|
Section 1.
|
Committees
|
6
|
|
Section 2.
|
Executive Committee
|
6
|
|
Section 3.
|
Nominating and Corporate Governance Committee
|
7
|
|
Section 4.
|
Audit Committee
|
7
|
|
Section 5.
|
Compensation Committee
|
7
|
|
Section 6.
|
Meetings
|
7
|
|
ARTICLE IV
|
|||
OFFICERS
|
|||
|
|
|
|
Section 1.
|
Officers Generally
|
8
|
|
Section 2.
|
Officer Vacancies
|
8
|
|
Section 3.
|
Powers and Duties
|
8
|
|
|
|
|
|
ARTICLE V
|
|||
CAPITAL STOCK
|
|||
|
|
|
|
Section 1.
|
Evidence of Shares of Capital Stock
|
8
|
|
Section 2.
|
Certificates to be Entered
|
9
|
|
Section 3.
|
Transfer of Stock
|
9
|
|
Section 4.
|
Lost, Destroyed and Mutilated Certificates
|
9
|
|
Section 5.
|
Regulations
|
9
|
|
Section 6.
|
Determination of Shareholders of Record
|
9
|
|
|
|
|
|
ARTICLE VI
|
|||
MISCELLANEOUS PROVISIONS
|
|||
|
|
|
|
Section 1.
|
Seal
|
10
|
|
Section 2.
|
Fiscal Year
|
10
|
|
Section 3.
|
Examination of Books
|
10
|
|
Section 4.
|
Execution of Instruments
|
10
|
|
Section 5.
|
Construction
|
10
|
|
Section 6.
|
Amendment of Bylaws
|
11
|
|
Section 7.
|
Redemption of Certain Shares
|
11
|
|
(i)
|
Salary Death Benefit
- the "Salary Death Benefit" is a payment of an amount equal
|
|
Amount
|
Annual Retainer Cash Fees
(1)
|
|
Service as a Director
|
$25,000
|
Service as Chairman of the Board of Directors
|
$80,000 (additional)
|
Service as Vice Chairman of the Board of Directors
|
$20,000 (additional)
|
Service as Chairman of Audit Committee
|
$15,000 (additional)
|
Service as Chairman of Compensation and Risk Committees
|
$10,000 (additional)
|
Service as Chairman of Nominating and Corporate Governance Committee
|
$7,500 (additional)
|
Members of Audit, Risk, Compensation and Nominating and Corporate Governance Committees
|
$8,000 (additional)
|
|
|
Meeting Fees
|
|
Executive Committee per meeting (in person)
|
$1,000
|
Executive Committee per meeting (telephonic lasting under an hour)
|
$500
|
Meetings above maximum per year number per Meeting
|
$1,000
|
|
|
Equity Compensation
|
|
In addition to cash compensation, non-employee directors receive an annual stock retainer of $35,000 paid quarterly in advance in unrestricted shares of the Company’s stock.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||
Ratios of earnings to fixed charges
(1)
:
|
|
|
|
|
|
|
|
|
|
|||||
Including deposit interest
|
4.24
|
|
|
4.28
|
|
|
4.11
|
|
|
3.11
|
|
|
2.69
|
|
Excluding deposit interest
|
8.24
|
|
|
8.54
|
|
|
7.06
|
|
|
6.69
|
|
|
5.96
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratios of earnings to fixed charges and preferred dividends
(1)(2)
:
|
|
|
|
|
|
|
|
|
|
|||||
Including deposit interest
|
4.24
|
|
|
4.28
|
|
|
4.11
|
|
|
3.11
|
|
|
2.69
|
|
Excluding deposit interest
|
8.24
|
|
|
8.54
|
|
|
7.06
|
|
|
6.69
|
|
|
5.96
|
|
Subsidiary
|
|
State of Incorporation or Organization
|
Union Bank & Trust
|
|
Virginia
|
Union Mortgage Group, Inc.
|
|
Virginia
|
Union Insurance Group, LLC
|
|
Virginia
|
Carmel Church Properties, LLC
|
|
Virginia
|
UB Properties, LLC
|
|
Virginia
|
Manquin Properties, LLC
|
|
Virginia
|
Guaranty Investments Corporation
|
|
Virginia
|
King Carter, LLC
|
|
Virginia
|
UB Eight, LLC
|
|
Virginia
|
Union Service Corporation
|
|
Virginia
|
Union Bank Community Development Corporation
|
|
Virginia
|
Union Bankshares Corporation Statutory Trust I
|
|
Connecticut
|
Union Bankshares Corporation Statutory Trust II
|
|
Delaware
|
VFG Limited Liability Trust (assumed January 1, 2014)
|
|
Connecticut
|
FNB (VA) Statutory Trust II (assumed January 1, 2014)
|
|
Connecticut
|
Old Dominion Capital Management, Inc.
|
|
Virginia
|
Registration Statement Number
|
|
Form
|
|
Description
|
333-198710
|
|
Form S-3
|
|
Common Stock, Preferred Stock, Debt Securities, Warrants, Purchase Contracts, Units
|
333-175807
|
|
Form S-3
|
|
Common Stock, Preferred Stock, Debt Securities, Warrants, Purchase Contracts, Units
|
333-166520
|
|
Form S-3
|
|
Fixed Rate Cumulative Perpetual Preferred Stock, Series B
|
333-165874
|
|
Form S-3
|
|
Common stock
|
333-161860
|
|
Form S-3
|
|
Common stock
|
333-156946
|
|
Form S-3
|
|
Fixed Rate Cumulative Perpetual Preferred Stock, Series A; Warrant to Purchase 422,636 Shares of Common Stock; 422,636 Shares of Common Stock
|
333-154730
|
|
Form S-3
|
|
Common Stock, Preferred Stock, Depositary Shares, Debt Securities, Warrants, Purchase Contracts, Units
|
333-144481
|
|
Form S-3
|
|
Dividend Reinvestment and Stock Purchase Plan
|
033-78060
|
|
Form S-3
|
|
Dividend Reinvestment and Stock Purchase Plan
|
333-102012
|
|
Form S-3
|
|
Common stock
|
333-81199
|
|
Form S-3
|
|
Common stock
|
333-203580
|
|
Form S-8
|
|
Union Bankshares Corporation Stock and Incentive Plan
|
333-193364
|
|
Form S-8
|
|
FNB Corporation 2000 Incentive Stock Plan, FNB Corporation 2006 Incentive Stock Plan, StellarOne Corporation Stock Incentive Plan and StellarOne Corporation Stock and Incentive Compensation Plan
|
333-175808
|
|
Form S-8
|
|
Union First Market Bankshares Corporation 2011 Stock Incentive Plan
|
333-113842
|
|
Form S-8
|
|
Union Bankshares Corporation Non-Employee Directors’ Stock Plan
|
333-113839
|
|
Form S-8
|
|
Union Bankshares Corporation 2003 Stock Incentive Plan
|
|
/s/ John C. Asbury
|
|
John C. Asbury,
|
|
President and Chief Executive Officer
|
|
/s/ Robert M. Gorman
|
|
Robert M. Gorman,
|
|
Executive Vice President and Chief Financial Officer
|
/s/ John C. Asbury
|
|
John C. Asbury,
|
|
President and Chief Executive Officer
|
|
|
|
/s/ Robert M. Gorman
|
|
Robert M. Gorman,
|
|
Executive Vice President and Chief Financial Officer
|
|