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
|
¨
|
|
|
|
|
|
|
Emerging growth 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.
|
||
|
|
|
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
|
|
|
|
|
Item 15.
|
||
Item 16.
|
||
|
Glossary of Acronyms and 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
|
BHCA
|
–
|
Bank Holding Company Act of 1956
|
BOLI
|
–
|
Bank owned life insurance
|
bps
|
–
|
Basis points
|
CAMELS
|
–
|
International rating system bank supervisory authorities use to rate financial institutions.
|
CDARS
|
–
|
Certificates of Deposit Account Registry Service
|
CECL
|
–
|
Current expected credit loss
|
CFPB
|
–
|
Consumer Financial Protection Bureau
|
Code
|
–
|
Internal Revenue Code of 1986
|
Company
|
–
|
Union Bankshares Corporation and its subsidiaries
|
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 or U.S. GAAP
|
–
|
Accounting principles generally accepted in the United States
|
HELOC
|
–
|
Home equity line of credit
|
HTM
|
–
|
Held to maturity
|
LIBOR
|
–
|
London Interbank Offered Rate
|
NOL
|
–
|
Net operating losses
|
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
|
PSU
|
–
|
Performance stock units
|
REVG
|
–
|
Real Estate Valuation Group
|
ROA
|
–
|
Return on average assets
|
ROE
|
–
|
Return on average equity
|
ROTCE
|
–
|
Return on average tangible common equity
|
SAB
|
–
|
Staff Accounting Bulletin
|
SCC
|
–
|
Virginia State Corporation Commission
|
SEC
|
–
|
U.S. Securities and Exchange Commission
|
Tax Act
|
–
|
Tax Cuts and Jobs Act
|
TDR
|
–
|
Troubled debt restructuring
|
Treasury
|
–
|
U.S. Department of the Treasury
|
UIG
|
–
|
Union Insurance Group, LLC
|
UISI
|
–
|
Union Investment Services, Inc.
|
UMG
|
–
|
Union Mortgage Group, Inc.
|
VFG
|
–
|
Virginia Financial Group, Inc.
|
Xenith
|
–
|
Xenith Bankshares, Inc.
|
•
|
the
possibility that any of the anticipated benefits of the merger of Xenith with and into the Company on January 1, 2018 (“the Merger”) will not be realized or will not be realized within the expected time period, the businesses of the Company and Xenith may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected, the expected revenue synergies and cost savings from the Merger may not be fully realized or realized within the expected time frame, revenues following the Merger may be lower than expected, or customer and employee relationships and business operations may be disrupted by the Merger,
|
•
|
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 allowance for loan losses,
|
•
|
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,
|
•
|
the impact of the Tax Act, including, but not limited to, the effect of the lower corporate tax rate, including on the valuation of the Company's tax assets and liabilities,
|
•
|
any future refinements to the Company's preliminary analysis of the impact of the Tax Act on the Company,
|
•
|
changes in the effect of the Tax Act due to issuance of interpretive regulatory guidance or enactment of corrective or supplement legislation,
|
•
|
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
|
1994
|
|
2014
|
|
2014
|
Xenith Bank
|
1987
|
|
2018
|
|
2018
|
|
Period Ending
|
||||||||||||||||||||||
Index
|
12/31/2012
|
|
|
12/31/2013
|
|
|
12/31/2014
|
|
|
12/31/2015
|
|
|
12/31/2016
|
|
|
12/31/2017
|
|
||||||
Union Bankshares Corporation
|
$
|
100.00
|
|
|
$
|
161.43
|
|
|
$
|
160.47
|
|
|
$
|
173.14
|
|
|
$
|
252.67
|
|
|
$
|
261.96
|
|
NASDAQ Composite
|
100.00
|
|
|
140.12
|
|
|
160.78
|
|
|
171.97
|
|
|
187.22
|
|
|
242.71
|
|
||||||
SNL U.S. Bank NASDAQ
|
100.00
|
|
|
143.73
|
|
|
148.86
|
|
|
160.70
|
|
|
222.81
|
|
|
234.58
|
|
|
Sales Prices
|
|
Dividends
Declared
|
||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
|
High
|
|
Low
|
|
High
|
|
Low
|
|
|
|
|
||||||||||||
First Quarter
|
$
|
39.37
|
|
|
$
|
33.23
|
|
|
$
|
25.48
|
|
|
$
|
20.57
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
Second Quarter
|
36.49
|
|
|
29.50
|
|
|
27.39
|
|
|
23.79
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
||||
Third Quarter
|
35.41
|
|
|
30.45
|
|
|
27.96
|
|
|
23.28
|
|
|
$
|
0.20
|
|
|
$
|
0.19
|
|
||||
Fourth Quarter
|
39.02
|
|
|
31.77
|
|
|
36.69
|
|
|
26.13
|
|
|
$
|
0.21
|
|
|
$
|
0.20
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.81
|
|
|
$
|
0.77
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
(1)
|
|
2013
(1)
|
||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and dividend income
|
$
|
330,194
|
|
|
$
|
294,920
|
|
|
$
|
276,771
|
|
|
$
|
274,945
|
|
|
$
|
172,127
|
|
Interest expense
|
50,037
|
|
|
29,770
|
|
|
24,937
|
|
|
19,927
|
|
|
20,501
|
|
|||||
Net interest income
|
280,157
|
|
|
265,150
|
|
|
251,834
|
|
|
255,018
|
|
|
151,626
|
|
|||||
Provision for credit losses
|
10,756
|
|
|
9,100
|
|
|
9,571
|
|
|
7,800
|
|
|
6,056
|
|
|||||
Net interest income after provision for credit losses
|
269,401
|
|
|
256,050
|
|
|
242,263
|
|
|
247,218
|
|
|
145,570
|
|
|||||
Noninterest income
|
71,674
|
|
|
70,907
|
|
|
65,007
|
|
|
61,287
|
|
|
38,728
|
|
|||||
Noninterest expenses
|
234,765
|
|
|
222,703
|
|
|
216,882
|
|
|
238,216
|
|
|
137,047
|
|
|||||
Income before income taxes
|
106,310
|
|
|
104,254
|
|
|
90,388
|
|
|
70,289
|
|
|
47,251
|
|
|||||
Income tax expense
|
33,387
|
|
|
26,778
|
|
|
23,309
|
|
|
18,125
|
|
|
12,885
|
|
|||||
Net income
(2)
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
|
$
|
34,366
|
|
Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets
|
$
|
9,315,179
|
|
|
$
|
8,426,793
|
|
|
$
|
7,693,291
|
|
|
$
|
7,358,643
|
|
|
$
|
4,176,353
|
|
Securities available for sale, at fair value
|
974,222
|
|
|
946,764
|
|
|
903,292
|
|
|
1,102,114
|
|
|
677,348
|
|
|||||
Securities held to maturity, at carrying value
|
199,639
|
|
|
201,526
|
|
|
205,374
|
|
|
—
|
|
|
—
|
|
|||||
Loans held for sale, at fair value
|
40,662
|
|
|
36,487
|
|
|
36,030
|
|
|
42,519
|
|
|
53,185
|
|
|||||
Loans held for investment, net of deferred fees and costs
|
7,141,552
|
|
|
6,307,060
|
|
|
5,671,462
|
|
|
5,345,996
|
|
|
3,039,368
|
|
|||||
Allowance for loan losses
|
38,208
|
|
|
37,192
|
|
|
34,047
|
|
|
32,384
|
|
|
30,135
|
|
|||||
Intangible assets, net
|
313,331
|
|
|
318,793
|
|
|
316,832
|
|
|
325,277
|
|
|
71,380
|
|
|||||
Tangible assets, net
(3)
|
9,001,848
|
|
|
8,108,000
|
|
|
7,376,459
|
|
|
7,033,366
|
|
|
4,104,973
|
|
|||||
Deposits
|
6,991,718
|
|
|
6,379,489
|
|
|
5,963,936
|
|
|
5,638,770
|
|
|
3,236,842
|
|
|||||
Total borrowings
|
1,219,414
|
|
|
990,089
|
|
|
680,175
|
|
|
686,935
|
|
|
463,314
|
|
|||||
Total liabilities
|
8,268,850
|
|
|
7,425,761
|
|
|
6,697,924
|
|
|
6,381,474
|
|
|
3,783,543
|
|
|||||
Common stockholders' equity
|
1,046,329
|
|
|
1,001,032
|
|
|
995,367
|
|
|
977,169
|
|
|
437,810
|
|
|||||
Tangible common stockholders' equity
(3)
|
732,998
|
|
|
682,239
|
|
|
678,535
|
|
|
651,892
|
|
|
366,430
|
|
|||||
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest margin
(2)
|
3.49
|
%
|
|
3.66
|
%
|
|
3.75
|
%
|
|
3.96
|
%
|
|
4.08
|
%
|
|||||
Net interest margin (FTE)
(3)
|
3.63
|
%
|
|
3.80
|
%
|
|
3.89
|
%
|
|
4.09
|
%
|
|
4.22
|
%
|
|||||
Return on average assets
(2)
|
0.83
|
%
|
|
0.96
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|
0.85
|
%
|
|||||
Return on average common stockholders' equity
(2)
|
7.07
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
5.30
|
%
|
|
7.89
|
%
|
|||||
Return on average tangible common stockholders' equity
(2)(3)
|
10.20
|
%
|
|
11.45
|
%
|
|
10.00
|
%
|
|
8.02
|
%
|
|
9.48
|
%
|
|||||
Efficiency ratio
(2)
|
66.73
|
%
|
|
66.27
|
%
|
|
68.45
|
%
|
|
75.31
|
%
|
|
72.00
|
%
|
|||||
Efficiency ratio (FTE)
(3)
|
64.77
|
%
|
|
64.31
|
%
|
|
66.54
|
%
|
|
73.43
|
%
|
|
70.06
|
%
|
|||||
CET1 capital (to risk weighted assets)
|
9.04
|
%
|
|
9.72
|
%
|
|
10.55
|
%
|
|
11.20
|
%
|
|
11.26
|
%
|
|||||
Tier 1 capital (to risk weighted assets)
|
10.14
|
%
|
|
10.97
|
%
|
|
11.93
|
%
|
|
12.76
|
%
|
|
13.03
|
%
|
|||||
Total capital (to risk weighted assets)
|
12.43
|
%
|
|
13.56
|
%
|
|
12.46
|
%
|
|
13.38
|
%
|
|
14.16
|
%
|
|||||
Leverage Ratio
|
9.42
|
%
|
|
9.87
|
%
|
|
10.68
|
%
|
|
10.62
|
%
|
|
10.69
|
%
|
|||||
Common equity to total assets
|
11.23
|
%
|
|
11.88
|
%
|
|
12.94
|
%
|
|
13.28
|
%
|
|
10.48
|
%
|
|||||
Tangible common equity / tangible assets
(3)
|
8.14
|
%
|
|
8.41
|
%
|
|
9.20
|
%
|
|
9.27
|
%
|
|
8.93
|
%
|
|
2017
|
|
2016
|
|
2015
|
|
2014
(1)
|
|
2013
(1)
|
||||||||||
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
$
|
38,208
|
|
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
Nonaccrual loans
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
OREO
|
$
|
6,636
|
|
|
$
|
10,084
|
|
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
ALL / total outstanding loans
|
0.54
|
%
|
|
0.59
|
%
|
|
0.60
|
%
|
|
0.61
|
%
|
|
0.99
|
%
|
|||||
Nonaccrual loans/total loans
|
0.30
|
%
|
|
0.16
|
%
|
|
0.21
|
%
|
|
0.36
|
%
|
|
0.49
|
%
|
|||||
ALL / nonaccrual loans
|
175.73
|
%
|
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|
200.43
|
%
|
|||||
NPAs / total outstanding loans
|
0.40
|
%
|
|
0.32
|
%
|
|
0.48
|
%
|
|
0.89
|
%
|
|
1.62
|
%
|
|||||
Net charge-offs / total average loans
|
0.15
|
%
|
|
0.09
|
%
|
|
0.14
|
%
|
|
0.11
|
%
|
|
0.36
|
%
|
|||||
Provision / total average loans
|
0.17
|
%
|
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.20
|
%
|
|||||
Per Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share, basic
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.13
|
|
|
$
|
1.38
|
|
Earnings per share, diluted
(2)
|
1.67
|
|
|
1.77
|
|
|
1.49
|
|
|
1.13
|
|
|
1.37
|
|
|||||
Cash dividends paid per share
|
0.81
|
|
|
0.77
|
|
|
0.68
|
|
|
0.58
|
|
|
0.54
|
|
|||||
Market value per share
|
36.17
|
|
|
35.74
|
|
|
25.24
|
|
|
24.08
|
|
|
24.81
|
|
|||||
Book value per share
|
24.10
|
|
|
23.15
|
|
|
22.38
|
|
|
21.73
|
|
|
17.63
|
|
|||||
Tangible book value per share
(3)
|
16.88
|
|
|
15.78
|
|
|
15.25
|
|
|
14.50
|
|
|
14.76
|
|
|||||
Dividend payout ratio
|
48.50
|
%
|
|
43.50
|
%
|
|
45.64
|
%
|
|
51.33
|
%
|
|
39.42
|
%
|
|||||
Weighted average shares outstanding, basic
|
43,698,897
|
|
|
43,784,193
|
|
|
45,054,938
|
|
|
46,036,023
|
|
|
24,975,077
|
|
|||||
Weighted average shares outstanding, diluted
|
43,779,744
|
|
|
43,890,271
|
|
|
45,138,891
|
|
|
46,130,895
|
|
|
25,030,711
|
|
QUALITATIVE FACTORS
|
||||
Portfolio
|
|
National / International
|
|
Local
|
Experience and ability of lending team
|
|
Interest rates
|
|
Level of economic activity
|
Pace of loan growth
|
|
Inflation
|
|
Unemployment
|
Footprint and expansion
|
|
Unemployment
|
|
Competition
|
Execution of loan risk rating process
|
|
Gross domestic product
|
|
Military/government impact
|
Degree of credit oversight
|
|
International uncertainty
|
|
|
Underwriting standards
|
|
Home Price Index
|
|
|
Delinquency levels in portfolio
|
|
Commercial Real Estate Price Index
|
|
|
Charge-off trends in portfolio
|
|
|
|
|
Credit concentrations / nature and volume of the portfolio
|
|
|
|
|
•
|
The Company reported net income of
$72.9 million
and earnings per share of
$1.67
for the year ended
December 31, 2017
compared to net income of
$77.5 million
and earnings per share of
$1.77
for the year ended
December 31, 2016
.
|
•
|
The Company's net operating earnings
(1)
were $83.6 million and operating earnings per share
(1)
were $1.91 for 2017.
|
•
|
ROA was 0.83% for 2017 compared to 0.96% for 2016; operating ROA
(1)
was 0.95% for 2017.
|
•
|
ROE was 7.07% for 2017 compared to 7.79% for 2016; operating ROE
(1)
was 8.11% for 2017.
|
•
|
ROTCE
(1)
was 10.20% for 2017 compared to 11.45% for 2016; operating ROTCE
(1)
was 11.69% for 2017.
|
•
|
The Company’s community banking segment reported net income of
$71.8 million
and earnings per share of $1.64 for the year ended
December 31, 2017
, compared to net income of $75.7 million and earnings per share of $1.73 for the year ended December 31, 2016. Net operating earnings
(1)
were $82.3 million and net operating earnings per share
(1)
were $1.88 for 2017.
|
•
|
The Company’s mortgage segment reported net income of
$1.1 million
for the year ended
December 31, 2017
, compared to $1.8 million for the year ended
December 31, 2016
. Net operating earnings
(1)
were $1.2 million for 2017.
|
•
|
Loans held for investment, net of deferred fees and costs, were
$7.1 billion
at
December 31, 2017
, an increase of $834.4 million, or 13.2%, from
December 31, 2016
. The increase was primarily driven by growth in the commercial loan portfolio.
|
•
|
Total deposits at
December 31, 2017
were
$7.0 billion
, an increase of $612.2 million, or 9.6%, when compared to
$6.4 billion
at
December 31, 2016
. The increase was primarily driven by growth in low-cost deposits.
|
•
|
Cash dividends per common share increased to $0.81 during 2017 from $0.77 per common share during 2016.
|
•
|
The Company acquired Xenith January 1, 2018. The 2017 results included herein are prior to the effective date of the Merger.
|
|
For the Year Ended
December 31,
|
|
|
||||||||||
|
2017
|
|
2016
|
|
Change
|
||||||||
|
(Dollars in thousands)
|
||||||||||||
Average interest-earning assets
|
$
|
8,016,311
|
|
|
$
|
7,249,090
|
|
|
$
|
767,221
|
|
|
|
Interest income
|
$
|
330,194
|
|
|
$
|
294,920
|
|
|
$
|
35,274
|
|
|
|
Interest income (FTE)
(1)
|
$
|
340,810
|
|
|
$
|
305,164
|
|
|
$
|
35,646
|
|
|
|
Yield on interest-earning assets
|
4.12
|
%
|
|
4.07
|
%
|
|
5
|
|
|
bps
|
|||
Yield on interest-earning assets (FTE)
(1)
|
4.25
|
%
|
|
4.21
|
%
|
|
4
|
|
|
bps
|
|||
Average interest-bearing liabilities
|
$
|
6,262,536
|
|
|
$
|
5,600,174
|
|
|
$
|
662,362
|
|
|
|
Interest expense
|
$
|
50,037
|
|
|
$
|
29,770
|
|
|
$
|
20,267
|
|
|
|
Cost of interest-bearing liabilities
|
0.80
|
%
|
|
0.53
|
%
|
|
27
|
|
|
bps
|
|||
Cost of funds
|
0.62
|
%
|
|
0.41
|
%
|
|
21
|
|
|
bps
|
|||
Net interest income
|
$
|
280,157
|
|
|
$
|
265,150
|
|
|
$
|
15,007
|
|
|
|
Net interest income (FTE)
(1)
|
$
|
290,773
|
|
|
$
|
275,394
|
|
|
$
|
15,379
|
|
|
|
Net interest margin
|
3.49
|
%
|
|
3.66
|
%
|
|
(17
|
)
|
|
bps
|
|||
Net interest margin (FTE)
(1)
|
3.63
|
%
|
|
3.80
|
%
|
|
(17
|
)
|
|
bps
|
|
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
|
$
|
294,920
|
|
|
$
|
276,771
|
|
|
$
|
18,149
|
|
|
|
Interest income (FTE)
(1)
|
$
|
305,164
|
|
|
$
|
285,850
|
|
|
$
|
19,314
|
|
|
|
Yield on interest-earning assets
|
4.07
|
%
|
|
4.12
|
%
|
|
(5
|
)
|
|
bps
|
|||
Yield on interest-earning assets (FTE)
(1)
|
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
|
$
|
265,150
|
|
|
$
|
251,834
|
|
|
$
|
13,316
|
|
|
|
Net interest income (FTE)
(1)
|
$
|
275,394
|
|
|
$
|
260,913
|
|
|
$
|
14,481
|
|
|
|
Net interest margin
|
3.66
|
%
|
|
3.75
|
%
|
|
(9
|
)
|
|
bps
|
|||
Net interest margin (FTE)
(1)
|
3.80
|
%
|
|
3.89
|
%
|
|
(9
|
)
|
|
bps
|
|
For the Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
|
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
|
$
|
761,994
|
|
|
$
|
20,305
|
|
|
2.66
|
%
|
|
$
|
754,287
|
|
|
$
|
18,319
|
|
|
2.43
|
%
|
|
$
|
717,816
|
|
|
$
|
15,606
|
|
|
2.17
|
%
|
Tax-exempt
|
468,111
|
|
|
21,852
|
|
|
4.67
|
%
|
|
448,405
|
|
|
21,216
|
|
|
4.73
|
%
|
|
426,000
|
|
|
20,744
|
|
|
4.87
|
%
|
||||||
Total securities
|
1,230,105
|
|
|
42,157
|
|
|
3.43
|
%
|
|
1,202,692
|
|
|
39,535
|
|
|
3.29
|
%
|
|
1,143,816
|
|
|
36,350
|
|
|
3.18
|
%
|
||||||
Loans, net
(3) (4)
|
6,701,101
|
|
|
296,958
|
|
|
4.43
|
%
|
|
5,956,125
|
|
|
264,197
|
|
|
4.44
|
%
|
|
5,487,367
|
|
|
248,021
|
|
|
4.52
|
%
|
||||||
Other earning assets
|
85,105
|
|
|
1,695
|
|
|
1.99
|
%
|
|
90,273
|
|
|
1,432
|
|
|
1.59
|
%
|
|
82,056
|
|
|
1,479
|
|
|
1.80
|
%
|
||||||
Total earning assets
|
8,016,311
|
|
|
$
|
340,810
|
|
|
4.25
|
%
|
|
7,249,090
|
|
|
$
|
305,164
|
|
|
4.21
|
%
|
|
6,713,239
|
|
|
$
|
285,850
|
|
|
4.26
|
%
|
|||
Allowance for loan losses
|
(38,014
|
)
|
|
|
|
|
|
|
|
(36,034
|
)
|
|
|
|
|
|
|
|
(32,779
|
)
|
|
|
|
|
|
|
||||||
Total non-earning assets
|
841,845
|
|
|
|
|
|
|
|
|
833,249
|
|
|
|
|
|
|
|
|
812,435
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
8,820,142
|
|
|
|
|
|
|
|
|
$
|
8,046,305
|
|
|
|
|
|
|
|
|
$
|
7,492,895
|
|
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transaction and money market accounts
|
$
|
3,396,552
|
|
|
$
|
11,892
|
|
|
0.35
|
%
|
|
$
|
2,952,625
|
|
|
$
|
6,327
|
|
|
0.21
|
%
|
|
$
|
2,676,012
|
|
|
$
|
5,032
|
|
|
0.19
|
%
|
Regular savings
|
565,901
|
|
|
643
|
|
|
0.11
|
%
|
|
592,215
|
|
|
850
|
|
|
0.14
|
%
|
|
564,265
|
|
|
1,021
|
|
|
0.18
|
%
|
||||||
Time deposits
(5)
|
1,271,649
|
|
|
13,571
|
|
|
1.07
|
%
|
|
1,177,732
|
|
|
10,554
|
|
|
0.90
|
%
|
|
1,231,593
|
|
|
9,500
|
|
|
0.77
|
%
|
||||||
Total interest-bearing deposits
|
5,234,102
|
|
|
26,106
|
|
|
0.50
|
%
|
|
4,722,572
|
|
|
17,731
|
|
|
0.38
|
%
|
|
4,471,870
|
|
|
15,553
|
|
|
0.35
|
%
|
||||||
Other borrowings
(6)
|
1,028,434
|
|
|
23,931
|
|
|
2.33
|
%
|
|
877,602
|
|
|
12,039
|
|
|
1.37
|
%
|
|
675,819
|
|
|
9,384
|
|
|
1.39
|
%
|
||||||
Total interest-bearing liabilities
|
6,262,536
|
|
|
$
|
50,037
|
|
|
0.80
|
%
|
|
5,600,174
|
|
|
$
|
29,770
|
|
|
0.53
|
%
|
|
5,147,689
|
|
|
$
|
24,937
|
|
|
0.48
|
%
|
|||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand deposits
|
1,467,373
|
|
|
|
|
|
|
|
|
1,388,216
|
|
|
|
|
|
|
|
|
1,296,343
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
59,386
|
|
|
|
|
|
|
|
|
63,130
|
|
|
|
|
|
|
|
|
56,886
|
|
|
|
|
|
|
|
||||||
Total liabilities
|
7,789,295
|
|
|
|
|
|
|
|
|
7,051,520
|
|
|
|
|
|
|
|
|
6,500,918
|
|
|
|
|
|
|
|
||||||
Stockholders' equity
|
1,030,847
|
|
|
|
|
|
|
|
|
994,785
|
|
|
|
|
|
|
|
|
991,977
|
|
|
|
|
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
8,820,142
|
|
|
|
|
|
|
|
|
$
|
8,046,305
|
|
|
|
|
|
|
|
|
$
|
7,492,895
|
|
|
|
|
|
|
|
|||
Net interest income
|
|
|
|
$290,773
|
|
|
|
|
|
|
|
$275,394
|
|
|
|
|
|
|
|
$260,913
|
|
|
|
|||||||||
Interest rate spread
(1)
|
|
|
|
|
|
|
3.45
|
%
|
|
|
|
|
|
|
|
3.68
|
%
|
|
|
|
|
|
|
|
3.78
|
%
|
||||||
Cost of funds
|
|
|
|
|
|
|
0.62
|
%
|
|
|
|
|
|
|
|
0.41
|
%
|
|
|
|
|
|
|
|
0.37
|
%
|
||||||
Net interest margin
|
|
|
|
|
|
|
3.63
|
%
|
|
|
|
|
|
|
|
3.80
|
%
|
|
|
|
|
|
|
|
3.89
|
%
|
|
2017 vs. 2016
Increase (Decrease) Due to Change in:
|
|
2016 vs. 2015
Increase (Decrease) Due to Change in:
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
$
|
189
|
|
|
$
|
1,797
|
|
|
$
|
1,986
|
|
|
$
|
821
|
|
|
$
|
1,892
|
|
|
$
|
2,713
|
|
Tax-exempt
|
923
|
|
|
(287
|
)
|
|
636
|
|
|
1,071
|
|
|
(599
|
)
|
|
472
|
|
||||||
Total securities
|
1,112
|
|
|
1,510
|
|
|
2,622
|
|
|
1,892
|
|
|
1,293
|
|
|
3,185
|
|
||||||
Loans, net
(1)
|
33,014
|
|
|
(253
|
)
|
|
32,761
|
|
|
20,864
|
|
|
(4,688
|
)
|
|
16,176
|
|
||||||
Other earning assets
|
(86
|
)
|
|
349
|
|
|
263
|
|
|
139
|
|
|
(186
|
)
|
|
(47
|
)
|
||||||
Total earning assets
|
$
|
34,040
|
|
|
$
|
1,606
|
|
|
$
|
35,646
|
|
|
$
|
22,895
|
|
|
$
|
(3,581
|
)
|
|
$
|
19,314
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transaction and money market accounts
|
$
|
1,067
|
|
|
$
|
4,498
|
|
|
$
|
5,565
|
|
|
$
|
550
|
|
|
$
|
745
|
|
|
$
|
1,295
|
|
Regular savings
|
(36
|
)
|
|
(171
|
)
|
|
(207
|
)
|
|
49
|
|
|
(220
|
)
|
|
(171
|
)
|
||||||
Time deposits
(2)
|
889
|
|
|
2,128
|
|
|
3,017
|
|
|
(430
|
)
|
|
1,484
|
|
|
1,054
|
|
||||||
Total interest-bearing deposits
|
1,920
|
|
|
6,455
|
|
|
8,375
|
|
|
169
|
|
|
2,009
|
|
|
2,178
|
|
||||||
Other borrowings
(3)
|
2,354
|
|
|
9,538
|
|
|
11,892
|
|
|
2,770
|
|
|
(115
|
)
|
|
2,655
|
|
||||||
Total interest-bearing liabilities
|
4,274
|
|
|
15,993
|
|
|
20,267
|
|
|
2,939
|
|
|
1,894
|
|
|
4,833
|
|
||||||
Change in net interest income
|
$
|
29,766
|
|
|
$
|
(14,387
|
)
|
|
$
|
15,379
|
|
|
$
|
19,956
|
|
|
$
|
(5,475
|
)
|
|
$
|
14,481
|
|
|
Accretion (Amortization)
|
|
|
||||||||||||
|
Loans
|
|
Certificates of
Deposit
|
|
Borrowings
|
|
Total
|
||||||||
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 year ended December 31, 2017
|
6,784
|
|
|
—
|
|
|
170
|
|
|
6,954
|
|
||||
For the years ending (estimated)
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
2018
|
4,544
|
|
|
—
|
|
|
(143
|
)
|
|
4,401
|
|
||||
2019
|
3,371
|
|
|
—
|
|
|
(286
|
)
|
|
3,085
|
|
||||
2020
|
2,825
|
|
|
—
|
|
|
(301
|
)
|
|
2,524
|
|
||||
2021
|
2,259
|
|
|
—
|
|
|
(316
|
)
|
|
1,943
|
|
||||
2022
|
1,815
|
|
|
—
|
|
|
(332
|
)
|
|
1,483
|
|
||||
Thereafter
|
6,493
|
|
|
—
|
|
|
(4,974
|
)
|
|
1,519
|
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
$
|
20,212
|
|
|
$
|
19,496
|
|
|
$
|
716
|
|
|
3.7
|
%
|
Other service charges, commissions and fees
|
18,205
|
|
|
17,175
|
|
|
1,030
|
|
|
6.0
|
%
|
|||
Fiduciary and asset management fees
|
11,245
|
|
|
10,199
|
|
|
1,046
|
|
|
10.3
|
%
|
|||
Mortgage banking income, net
|
9,241
|
|
|
10,953
|
|
|
(1,712
|
)
|
|
(15.6
|
)%
|
|||
Gains on securities transactions, net
|
800
|
|
|
205
|
|
|
595
|
|
|
290.2
|
%
|
|||
BOLI income
|
6,144
|
|
|
5,513
|
|
|
631
|
|
|
11.4
|
%
|
|||
Loan-related interest rate swap fees
|
3,051
|
|
|
4,254
|
|
|
(1,203
|
)
|
|
(28.3
|
)%
|
|||
Other operating income
|
2,776
|
|
|
3,112
|
|
|
(336
|
)
|
|
(10.8
|
)%
|
|||
Total noninterest income
|
$
|
71,674
|
|
|
$
|
70,907
|
|
|
$
|
767
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|||||||
Community bank segment
|
$
|
62,120
|
|
|
$
|
59,505
|
|
|
$
|
2,615
|
|
|
4.4
|
%
|
Mortgage segment
|
10,073
|
|
|
12,008
|
|
|
(1,935
|
)
|
|
(16.1
|
)%
|
|||
Intercompany eliminations
|
(519
|
)
|
|
(606
|
)
|
|
87
|
|
|
14.4
|
%
|
|||
Total noninterest income
|
$
|
71,674
|
|
|
$
|
70,907
|
|
|
$
|
767
|
|
|
1.1
|
%
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|||||||
Community bank segment
|
$
|
59,505
|
|
|
$
|
55,645
|
|
|
$
|
3,860
|
|
|
6.9
|
%
|
Mortgage segment
|
12,008
|
|
|
10,044
|
|
|
1,964
|
|
|
19.6
|
%
|
|||
Intercompany eliminations
|
(606
|
)
|
|
(682
|
)
|
|
76
|
|
|
11.1
|
%
|
|||
Total noninterest income
|
$
|
70,907
|
|
|
$
|
65,007
|
|
|
$
|
5,900
|
|
|
9.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
$
|
122,222
|
|
|
$
|
117,103
|
|
|
$
|
5,119
|
|
|
4.4
|
%
|
Occupancy expenses
|
19,594
|
|
|
19,528
|
|
|
66
|
|
|
0.3
|
%
|
|||
Furniture and equipment expenses
|
10,503
|
|
|
10,475
|
|
|
28
|
|
|
0.3
|
%
|
|||
Printing, postage, and supplies
|
4,962
|
|
|
4,692
|
|
|
270
|
|
|
5.8
|
%
|
|||
Communications expense
|
3,319
|
|
|
3,850
|
|
|
(531
|
)
|
|
(13.8
|
)%
|
|||
Technology and data processing
|
16,485
|
|
|
15,368
|
|
|
1,117
|
|
|
7.3
|
%
|
|||
Professional services
|
7,925
|
|
|
8,085
|
|
|
(160
|
)
|
|
(2.0
|
)%
|
|||
Marketing and advertising expense
|
7,838
|
|
|
7,784
|
|
|
54
|
|
|
0.7
|
%
|
|||
FDIC assessment premiums and other insurance
|
4,048
|
|
|
5,406
|
|
|
(1,358
|
)
|
|
(25.1
|
)%
|
|||
Other taxes
|
8,087
|
|
|
5,456
|
|
|
2,631
|
|
|
48.2
|
%
|
|||
Loan-related expenses
|
5,328
|
|
|
4,790
|
|
|
538
|
|
|
11.2
|
%
|
|||
OREO and credit-related expenses
(1)
|
3,764
|
|
|
2,602
|
|
|
1,162
|
|
|
44.7
|
%
|
|||
Amortization of intangible assets
|
6,088
|
|
|
7,210
|
|
|
(1,122
|
)
|
|
(15.6
|
)%
|
|||
Training and other personnel costs
|
3,934
|
|
|
3,435
|
|
|
499
|
|
|
14.5
|
%
|
|||
Merger-related costs
|
5,393
|
|
|
—
|
|
|
5,393
|
|
|
NM
|
|
|||
Other operating expenses
|
5,275
|
|
|
6,919
|
|
|
(1,644
|
)
|
|
(23.8
|
)%
|
|||
Total noninterest expense
|
$
|
234,765
|
|
|
$
|
222,703
|
|
|
$
|
12,062
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|||||||
Community bank segment
|
$
|
225,366
|
|
|
$
|
212,774
|
|
|
$
|
12,592
|
|
|
5.9
|
%
|
Mortgage segment
|
9,918
|
|
|
10,535
|
|
|
(617
|
)
|
|
(5.9
|
)%
|
|||
Intercompany eliminations
|
(519
|
)
|
|
(606
|
)
|
|
87
|
|
|
14.4
|
%
|
|||
Total noninterest expense
|
$
|
234,765
|
|
|
$
|
222,703
|
|
|
$
|
12,062
|
|
|
5.4
|
%
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|||||||
Community bank segment
|
$
|
212,774
|
|
|
$
|
205,993
|
|
|
$
|
6,781
|
|
|
3.3
|
%
|
Mortgage segment
|
10,535
|
|
|
11,571
|
|
|
(1,036
|
)
|
|
(9.0
|
)%
|
|||
Intercompany eliminations
|
(606
|
)
|
|
(682
|
)
|
|
76
|
|
|
11.1
|
%
|
|||
Total noninterest expense
|
$
|
222,703
|
|
|
$
|
216,882
|
|
|
$
|
5,821
|
|
|
2.7
|
%
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Available for Sale:
|
|
|
|
|
|
||
Obligations of states and political subdivisions
|
$
|
301,824
|
|
|
$
|
275,890
|
|
Corporate bonds
|
113,880
|
|
|
121,780
|
|
||
Mortgage-backed securities
|
548,858
|
|
|
535,286
|
|
||
Other securities
|
9,660
|
|
|
13,808
|
|
||
Total securities available for sale, at fair value
|
974,222
|
|
|
946,764
|
|
||
Held to Maturity:
|
|
|
|
|
|
||
Obligations of states and political subdivisions, at carrying value
|
199,639
|
|
|
201,526
|
|
||
Restricted Stock:
|
|
|
|
||||
Federal Reserve Bank stock
|
27,558
|
|
|
23,808
|
|
||
FHLB stock
|
47,725
|
|
|
36,974
|
|
||
Total restricted stock, at cost
|
75,283
|
|
|
60,782
|
|
||
Total investments
|
$
|
1,249,144
|
|
|
$
|
1,209,072
|
|
|
1 Year or Less
|
|
1 - 5 Years
|
|
5 - 10 Years
|
|
Over 10 Years
|
|
Total
|
||||||||||
Mortgage backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
347
|
|
|
$
|
99,652
|
|
|
$
|
79,810
|
|
|
$
|
372,622
|
|
|
$
|
552,431
|
|
Fair value
|
$
|
352
|
|
|
$
|
99,140
|
|
|
$
|
79,139
|
|
|
$
|
370,227
|
|
|
$
|
548,858
|
|
Weighted average yield
(1)
|
2.20
|
|
|
2.23
|
|
|
2.23
|
|
|
2.51
|
|
|
2.42
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
17,589
|
|
|
$
|
45,124
|
|
|
$
|
80,244
|
|
|
$
|
152,589
|
|
|
$
|
295,546
|
|
Fair value
|
$
|
17,808
|
|
|
$
|
46,340
|
|
|
$
|
83,039
|
|
|
$
|
154,637
|
|
|
$
|
301,824
|
|
Weighted average yield
(1)
|
5.39
|
|
|
4.93
|
|
|
4.25
|
|
|
3.74
|
|
|
4.16
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate bonds and other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Amortized cost
|
$
|
7,243
|
|
|
$
|
500
|
|
|
$
|
63,156
|
|
|
$
|
52,463
|
|
|
$
|
123,362
|
|
Fair value
|
$
|
7,166
|
|
|
$
|
500
|
|
|
$
|
64,073
|
|
|
$
|
51,801
|
|
|
$
|
123,540
|
|
Weighted average yield
(1)
|
1.27
|
|
|
1.35
|
|
|
4.54
|
|
|
2.39
|
|
|
3.42
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
25,179
|
|
|
$
|
145,276
|
|
|
$
|
223,210
|
|
|
$
|
577,674
|
|
|
$
|
971,339
|
|
Fair value
|
$
|
25,326
|
|
|
$
|
145,980
|
|
|
$
|
226,251
|
|
|
$
|
576,665
|
|
|
$
|
974,222
|
|
Weighted average yield
(1)
|
4.16
|
|
|
3.07
|
|
|
3.61
|
|
|
2.82
|
|
|
3.07
|
|
|
1 Year or Less
|
|
1 - 5 Years
|
|
5 - 10 Years
|
|
Over 10 Years
|
|
Total
|
||||||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying Value
|
$
|
3,221
|
|
|
$
|
44,289
|
|
|
$
|
79,114
|
|
|
$
|
73,015
|
|
|
$
|
199,639
|
|
Fair value
|
$
|
3,230
|
|
|
$
|
44,601
|
|
|
$
|
80,532
|
|
|
$
|
75,120
|
|
|
$
|
203,483
|
|
Weighted average yield
(1)
|
2.99
|
|
|
2.80
|
|
|
3.26
|
|
|
3.90
|
|
|
3.39
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
Construction and Land Development
|
$
|
948,791
|
|
|
13.3
|
%
|
|
$
|
751,131
|
|
|
11.9
|
%
|
|
$
|
749,720
|
|
|
13.2
|
%
|
|
$
|
656,380
|
|
|
12.3
|
%
|
|
$
|
470,684
|
|
|
15.5
|
%
|
Commercial Real Estate - Owner Occupied
|
943,933
|
|
|
13.2
|
%
|
|
857,805
|
|
|
13.6
|
%
|
|
860,086
|
|
|
15.2
|
%
|
|
869,200
|
|
|
16.3
|
%
|
|
503,318
|
|
|
16.6
|
%
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
1,713,659
|
|
|
24.0
|
%
|
|
1,564,295
|
|
|
24.8
|
%
|
|
1,270,480
|
|
|
22.3
|
%
|
|
1,183,514
|
|
|
22.0
|
%
|
|
591,133
|
|
|
19.4
|
%
|
|||||
Multifamily Real Estate
|
357,079
|
|
|
5.0
|
%
|
|
334,276
|
|
|
5.3
|
%
|
|
322,528
|
|
|
5.7
|
%
|
|
297,366
|
|
|
5.6
|
%
|
|
146,433
|
|
|
4.8
|
%
|
|||||
Commercial & Industrial
|
612,023
|
|
|
8.6
|
%
|
|
551,526
|
|
|
8.7
|
%
|
|
435,365
|
|
|
7.7
|
%
|
|
374,096
|
|
|
7.0
|
%
|
|
194,809
|
|
|
6.4
|
%
|
|||||
Residential 1-4 Family - Commercial
|
612,395
|
|
|
8.6
|
%
|
|
551,636
|
|
|
8.7
|
%
|
|
517,063
|
|
|
9.2
|
%
|
|
508,503
|
|
|
9.5
|
%
|
|
273,920
|
|
|
9.0
|
%
|
|||||
Residential 1-4 Family - Mortgage
|
485,690
|
|
|
6.8
|
%
|
|
477,911
|
|
|
7.6
|
%
|
|
461,406
|
|
|
8.1
|
%
|
|
474,571
|
|
|
8.9
|
%
|
|
236,659
|
|
|
7.8
|
%
|
|||||
Auto
|
282,474
|
|
|
4.0
|
%
|
|
262,071
|
|
|
4.2
|
%
|
|
234,061
|
|
|
4.1
|
%
|
|
207,813
|
|
|
3.9
|
%
|
|
179,976
|
|
|
5.9
|
%
|
|||||
HELOC
|
537,521
|
|
|
7.5
|
%
|
|
526,884
|
|
|
8.4
|
%
|
|
516,726
|
|
|
9.1
|
%
|
|
523,341
|
|
|
9.8
|
%
|
|
302,965
|
|
|
10.0
|
%
|
|||||
Consumer and all other
|
647,987
|
|
|
9.0
|
%
|
|
429,525
|
|
|
6.8
|
%
|
|
304,027
|
|
|
5.4
|
%
|
|
251,212
|
|
|
4.7
|
%
|
|
139,471
|
|
|
4.6
|
%
|
|||||
Total loans held for investment
|
$
|
7,141,552
|
|
|
100.0
|
%
|
|
$
|
6,307,060
|
|
|
100.0
|
%
|
|
$
|
5,671,462
|
|
|
100.0
|
%
|
|
$
|
5,345,996
|
|
|
100.0
|
%
|
|
$
|
3,039,368
|
|
|
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
|
$
|
948,791
|
|
|
$
|
504,153
|
|
|
$
|
268,758
|
|
|
$
|
229,770
|
|
|
$
|
38,988
|
|
|
$
|
175,880
|
|
|
$
|
126,013
|
|
|
$
|
49,867
|
|
Commercial Real Estate - Owner Occupied
|
943,933
|
|
|
92,727
|
|
|
273,992
|
|
|
49,722
|
|
|
224,270
|
|
|
577,214
|
|
|
412,034
|
|
|
165,180
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
1,713,659
|
|
|
191,657
|
|
|
570,772
|
|
|
189,356
|
|
|
381,416
|
|
|
951,230
|
|
|
681,199
|
|
|
270,031
|
|
||||||||
Multifamily Real Estate
|
357,079
|
|
|
29,653
|
|
|
135,585
|
|
|
38,772
|
|
|
96,813
|
|
|
191,841
|
|
|
167,708
|
|
|
24,133
|
|
||||||||
Commercial & Industrial
|
612,023
|
|
|
174,798
|
|
|
205,834
|
|
|
165,974
|
|
|
39,860
|
|
|
231,391
|
|
|
159,920
|
|
|
71,471
|
|
||||||||
Residential 1-4 Family - Commercial
|
612,395
|
|
|
68,304
|
|
|
88,702
|
|
|
9,180
|
|
|
79,522
|
|
|
455,389
|
|
|
370,224
|
|
|
85,165
|
|
||||||||
Residential 1-4 Family - Mortgage
|
485,690
|
|
|
11,560
|
|
|
247,983
|
|
|
4,838
|
|
|
243,145
|
|
|
226,147
|
|
|
8,541
|
|
|
217,606
|
|
||||||||
Auto
|
282,474
|
|
|
2,356
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
280,118
|
|
|
138,291
|
|
|
141,827
|
|
||||||||
HELOC
|
537,521
|
|
|
39,324
|
|
|
495,337
|
|
|
52,070
|
|
|
443,267
|
|
|
2,860
|
|
|
2,261
|
|
|
599
|
|
||||||||
Consumer and all other
|
647,987
|
|
|
54,535
|
|
|
100,923
|
|
|
10,936
|
|
|
89,987
|
|
|
492,529
|
|
|
201,546
|
|
|
290,983
|
|
||||||||
Total loans held for investment
|
$
|
7,141,552
|
|
|
$
|
1,169,067
|
|
|
$
|
2,387,886
|
|
|
$
|
750,618
|
|
|
$
|
1,637,268
|
|
|
$
|
3,584,599
|
|
|
$
|
2,267,737
|
|
|
$
|
1,316,862
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Nonaccrual loans, excluding PCI loans
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
Foreclosed properties
|
5,253
|
|
|
7,430
|
|
|
11,994
|
|
|
23,058
|
|
|
34,116
|
|
|||||
Former Bank premises
|
1,383
|
|
|
2,654
|
|
|
3,305
|
|
|
5,060
|
|
|
—
|
|
|||||
Total NPAs
|
28,379
|
|
|
20,057
|
|
|
27,235
|
|
|
47,373
|
|
|
49,151
|
|
|||||
Loans past due 90 days and accruing interest
|
3,532
|
|
|
3,005
|
|
|
5,829
|
|
|
10,047
|
|
|
6,746
|
|
|||||
Total NPAs and loans past due 90 days and accruing interest
|
$
|
31,911
|
|
|
$
|
23,062
|
|
|
$
|
33,064
|
|
|
$
|
57,420
|
|
|
$
|
55,897
|
|
Performing TDRs
|
$
|
14,553
|
|
|
$
|
13,967
|
|
|
$
|
10,780
|
|
|
$
|
22,829
|
|
|
$
|
34,520
|
|
PCI loans
|
39,021
|
|
|
59,292
|
|
|
73,737
|
|
|
105,788
|
|
|
3,622
|
|
|||||
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan losses
|
$
|
38,208
|
|
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
Average loans, net of deferred fees and costs
|
6,701,101
|
|
|
5,956,125
|
|
|
5,487,367
|
|
|
5,235,471
|
|
|
2,985,733
|
|
|||||
Loans, net of deferred fees and costs
|
7,141,552
|
|
|
6,307,060
|
|
|
5,671,462
|
|
|
5,345,996
|
|
|
3,039,368
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NPAs to total loans
|
0.40
|
%
|
|
0.32
|
%
|
|
0.48
|
%
|
|
0.89
|
%
|
|
1.62
|
%
|
|||||
NPAs & loans 90 days past due to total loans
|
0.45
|
%
|
|
0.37
|
%
|
|
0.58
|
%
|
|
1.07
|
%
|
|
1.84
|
%
|
|||||
NPAs to total loans & OREO
|
0.40
|
%
|
|
0.32
|
%
|
|
0.48
|
%
|
|
0.88
|
%
|
|
1.60
|
%
|
|||||
NPAs & loans 90 days past due to total loans & OREO
|
0.45
|
%
|
|
0.37
|
%
|
|
0.58
|
%
|
|
1.07
|
%
|
|
1.82
|
%
|
|||||
ALL to nonaccrual loans
|
175.73
|
%
|
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|
200.43
|
%
|
|||||
ALL to nonaccrual loans & loans 90 days past due
|
151.17
|
%
|
|
286.58
|
%
|
|
191.65
|
%
|
|
110.52
|
%
|
|
138.35
|
%
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Beginning Balance
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
|
$
|
26,206
|
|
Net customer payments
|
(7,976
|
)
|
|
(7,159
|
)
|
|
(10,240
|
)
|
|
(8,053
|
)
|
|
(12,393
|
)
|
|||||
Additions
|
27,985
|
|
|
13,171
|
|
|
12,517
|
|
|
20,961
|
|
|
16,725
|
|
|||||
Charge-offs
|
(6,782
|
)
|
|
(4,418
|
)
|
|
(7,064
|
)
|
|
(2,732
|
)
|
|
(8,743
|
)
|
|||||
Loans returning to accruing status
|
(609
|
)
|
|
(2,390
|
)
|
|
(1,497
|
)
|
|
(3,492
|
)
|
|
(2,718
|
)
|
|||||
Transfers to OREO
|
(848
|
)
|
|
(1,167
|
)
|
|
(1,035
|
)
|
|
(2,464
|
)
|
|
(4,042
|
)
|
|||||
Ending Balance
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
Nonaccrual loans to total loans
|
0.30
|
%
|
|
0.16
|
%
|
|
0.21
|
%
|
|
0.36
|
%
|
|
0.49
|
%
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Construction and Land Development
|
$
|
5,610
|
|
|
$
|
2,037
|
|
|
$
|
2,113
|
|
|
$
|
3,419
|
|
|
$
|
4,156
|
|
Commercial Real Estate - Owner Occupied
|
2,708
|
|
|
794
|
|
|
3,904
|
|
|
1,060
|
|
|
2,037
|
|
|||||
Commercial Real Estate - Non-owner Occupied
|
2,992
|
|
|
—
|
|
|
100
|
|
|
5,903
|
|
|
175
|
|
|||||
Commercial & Industrial
|
316
|
|
|
124
|
|
|
429
|
|
|
2,754
|
|
|
3,475
|
|
|||||
Residential 1-4 Family - Commercial
|
1,085
|
|
|
1,071
|
|
|
1,566
|
|
|
2,660
|
|
|
2,042
|
|
|||||
Residential 1-4 Family - Mortgage
|
6,269
|
|
|
4,208
|
|
|
1,997
|
|
|
2,484
|
|
|
2,446
|
|
|||||
Auto
|
413
|
|
|
169
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|||||
HELOC
|
2,075
|
|
|
1,279
|
|
|
1,348
|
|
|
604
|
|
|
416
|
|
|||||
Consumer and All Other
|
275
|
|
|
291
|
|
|
287
|
|
|
371
|
|
|
288
|
|
|||||
Total
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
Coverage Ratio
|
175.73
|
%
|
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|
200.43
|
%
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Beginning Balance
|
$
|
10,084
|
|
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
|
$
|
32,834
|
|
Additions
|
1,078
|
|
|
2,062
|
|
|
4,602
|
|
|
20,872
|
|
|
9,542
|
|
|||||
Capitalized Improvements
|
—
|
|
|
—
|
|
|
308
|
|
|
686
|
|
|
561
|
|
|||||
Valuation Adjustments
|
(1,891
|
)
|
|
(1,017
|
)
|
|
(6,002
|
)
|
|
(7,646
|
)
|
|
(791
|
)
|
|||||
Proceeds from sales
|
(2,616
|
)
|
|
(6,602
|
)
|
|
(11,987
|
)
|
|
(21,291
|
)
|
|
(7,569
|
)
|
|||||
Gains (losses) from sales
|
(19
|
)
|
|
342
|
|
|
260
|
|
|
1,381
|
|
|
(461
|
)
|
|||||
Ending Balance
|
$
|
6,636
|
|
|
$
|
10,084
|
|
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Land
|
$
|
2,755
|
|
|
$
|
3,328
|
|
|
$
|
5,731
|
|
|
$
|
8,726
|
|
|
$
|
10,310
|
|
Land Development
|
1,045
|
|
|
2,379
|
|
|
2,918
|
|
|
7,162
|
|
|
10,904
|
|
|||||
Residential Real Estate
|
1,314
|
|
|
1,549
|
|
|
2,601
|
|
|
5,736
|
|
|
7,379
|
|
|||||
Commercial Real Estate
|
139
|
|
|
174
|
|
|
744
|
|
|
1,434
|
|
|
5,523
|
|
|||||
Former Bank Premises
(1)
|
1,383
|
|
|
2,654
|
|
|
3,305
|
|
|
5,060
|
|
|
—
|
|
|||||
Total
|
$
|
6,636
|
|
|
$
|
10,084
|
|
|
$
|
15,299
|
|
|
$
|
28,118
|
|
|
$
|
34,116
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Balance, beginning of year
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
|
$
|
34,916
|
|
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
2,277
|
|
|
1,920
|
|
|
2,361
|
|
|
1,557
|
|
|
3,080
|
|
|||||
Real estate
|
5,486
|
|
|
4,125
|
|
|
7,158
|
|
|
5,855
|
|
|
8,596
|
|
|||||
Consumer
|
5,547
|
|
|
2,510
|
|
|
2,016
|
|
|
1,608
|
|
|
1,942
|
|
|||||
Total loans charged-off
|
13,310
|
|
|
8,555
|
|
|
11,535
|
|
|
9,020
|
|
|
13,618
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial
|
483
|
|
|
483
|
|
|
958
|
|
|
316
|
|
|
746
|
|
|||||
Real estate
|
1,130
|
|
|
1,781
|
|
|
2,154
|
|
|
2,314
|
|
|
1,125
|
|
|||||
Consumer
|
1,642
|
|
|
761
|
|
|
815
|
|
|
839
|
|
|
910
|
|
|||||
Total recoveries
|
3,255
|
|
|
3,025
|
|
|
3,927
|
|
|
3,469
|
|
|
2,781
|
|
|||||
Net charge-offs
|
10,055
|
|
|
5,530
|
|
|
7,608
|
|
|
5,551
|
|
|
10,837
|
|
|||||
Provision for loan losses
|
11,071
|
|
|
8,675
|
|
|
9,271
|
|
|
7,800
|
|
|
6,056
|
|
|||||
Balance, end of year
|
$
|
38,208
|
|
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
ALL to loans
|
0.54
|
%
|
|
0.59
|
%
|
|
0.60
|
%
|
|
0.61
|
%
|
|
0.99
|
%
|
|||||
Net charge-offs to average loans
|
0.15
|
%
|
|
0.09
|
%
|
|
0.14
|
%
|
|
0.11
|
%
|
|
0.36
|
%
|
|||||
Provision to average loans
|
0.17
|
%
|
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.20
|
%
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
|
$
|
|
%(1)
|
|
$
|
|
%(1)
|
|
$
|
|
%(1)
|
|
$
|
|
%(1)
|
|
$
|
|
%(1)
|
|||||||||||||||
Commercial
|
$
|
4,552
|
|
|
8.6
|
%
|
|
$
|
4,627
|
|
|
8.7
|
%
|
|
$
|
3,163
|
|
|
7.7
|
%
|
|
$
|
2,610
|
|
|
7.0
|
%
|
|
$
|
2,021
|
|
|
6.4
|
%
|
Real estate
|
28,597
|
|
|
78.4
|
%
|
|
29,441
|
|
|
80.3
|
%
|
|
27,537
|
|
|
82.8
|
%
|
|
26,408
|
|
|
84.4
|
%
|
|
24,584
|
|
|
83.1
|
%
|
|||||
Consumer
|
5,059
|
|
|
13.0
|
%
|
|
3,124
|
|
|
11.0
|
%
|
|
3,347
|
|
|
9.5
|
%
|
|
3,366
|
|
|
8.6
|
%
|
|
3,530
|
|
|
10.5
|
%
|
|||||
Total
|
$
|
38,208
|
|
|
100.0
|
%
|
|
$
|
37,192
|
|
|
100.0
|
%
|
|
$
|
34,047
|
|
|
100.0
|
%
|
|
$
|
32,384
|
|
|
100.0
|
%
|
|
$
|
30,135
|
|
|
100.0
|
%
|
|
2017
|
|
2016
|
||||||||||
Deposits:
|
Amount
|
|
% of total
deposits
|
|
Amount
|
|
% of total
deposits
|
||||||
Non-interest bearing
|
$
|
1,502,208
|
|
|
21.5
|
%
|
|
$
|
1,393,625
|
|
|
21.8
|
%
|
NOW accounts
|
1,929,416
|
|
|
27.6
|
%
|
|
1,765,956
|
|
|
27.7
|
%
|
||
Money market accounts
|
1,685,174
|
|
|
24.1
|
%
|
|
1,435,591
|
|
|
22.5
|
%
|
||
Savings accounts
|
546,274
|
|
|
7.8
|
%
|
|
591,742
|
|
|
9.3
|
%
|
||
Time deposits of $100,000 and over
|
624,112
|
|
|
8.9
|
%
|
|
530,275
|
|
|
8.3
|
%
|
||
Other time deposits
|
704,534
|
|
|
10.1
|
%
|
|
662,300
|
|
|
10.4
|
%
|
||
Total Deposits
|
$
|
6,991,718
|
|
|
100.0
|
%
|
|
$
|
6,379,489
|
|
|
100.0
|
%
|
|
Within 3
Months
|
|
3 - 12
Months
|
|
Over 12
Months
|
|
Total
|
||||||||
Maturities of time deposits of $100,000 and over
|
$
|
88,086
|
|
|
$
|
199,369
|
|
|
$
|
336,657
|
|
|
$
|
624,112
|
|
Maturities of other time deposits
|
102,398
|
|
|
268,439
|
|
|
333,697
|
|
|
704,534
|
|
||||
Total time deposits
|
$
|
190,484
|
|
|
$
|
467,808
|
|
|
$
|
670,354
|
|
|
$
|
1,328,646
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Common equity Tier 1 capital
|
$
|
737,204
|
|
|
$
|
699,728
|
|
|
$
|
691,195
|
|
Tier 1 capital
|
826,979
|
|
|
790,228
|
|
|
781,695
|
|
|||
Tier 2 capital
|
186,809
|
|
|
185,917
|
|
|
34,346
|
|
|||
Total risk-based capital
|
1,013,788
|
|
|
976,145
|
|
|
816,041
|
|
|||
Risk-weighted assets
|
8,157,174
|
|
|
7,200,778
|
|
|
6,551,028
|
|
|||
|
|
|
|
|
|
||||||
Capital ratios:
|
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital ratio
|
9.04
|
%
|
|
9.72
|
%
|
|
10.55
|
%
|
|||
Tier 1 capital ratio
|
10.14
|
%
|
|
10.97
|
%
|
|
11.93
|
%
|
|||
Total capital ratio
|
12.43
|
%
|
|
13.56
|
%
|
|
12.46
|
%
|
|||
Leverage ratio (Tier 1 capital to average assets)
|
9.42
|
%
|
|
9.87
|
%
|
|
10.68
|
%
|
|||
Capital conservation buffer ratio
(1)
|
4.14
|
%
|
|
4.97
|
%
|
|
N/A
|
|
|||
Common equity to total assets
|
11.23
|
%
|
|
11.88
|
%
|
|
12.94
|
%
|
|||
Tangible common equity to tangible assets
(2)
|
8.14
|
%
|
|
8.41
|
%
|
|
9.20
|
%
|
|
2017
|
|
2016
|
||||
Commitments with off-balance sheet risk:
|
|
|
|
|
|
||
Commitments to extend credit
(1)
|
$
|
2,192,812
|
|
|
$
|
1,924,885
|
|
Standby letters of credit
|
127,435
|
|
|
84,212
|
|
||
Total commitments with off-balance sheet risk
|
$
|
2,320,247
|
|
|
$
|
2,009,097
|
|
|
Total
|
|
Less than 1
year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5
years
|
||||||||||
Long-term debt
(1)
|
$
|
350,000
|
|
|
$
|
40,000
|
|
|
$
|
20,000
|
|
|
$
|
140,000
|
|
|
$
|
150,000
|
|
Trust preferred capital notes
(1)
|
93,301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93,301
|
|
|||||
Operating leases
|
29,054
|
|
|
6,713
|
|
|
10,777
|
|
|
6,939
|
|
|
4,625
|
|
|||||
Other short-term borrowings
|
745,000
|
|
|
745,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Repurchase agreements
|
49,152
|
|
|
49,152
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
1,266,507
|
|
|
$
|
840,865
|
|
|
$
|
30,777
|
|
|
$
|
146,939
|
|
|
$
|
247,926
|
|
|
Change In Net Interest Income
December 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
|
%
|
|
$
|
|
%
|
|
$
|
||||
Change in Yield Curve:
|
|
|
|
|
|
|
|
|
|
|
|
+300 bps
|
5.34
|
|
|
16,691
|
|
|
11.73
|
|
|
34,485
|
|
+200 bps
|
3.81
|
|
|
11,905
|
|
|
7.98
|
|
|
23,459
|
|
+100 bps
|
2.11
|
|
|
6,597
|
|
|
4.10
|
|
|
12,058
|
|
Most likely rate scenario
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
-100 bps
|
(2.70
|
)
|
|
(8,430
|
)
|
|
(4.14
|
)
|
|
(12,162
|
)
|
-200 bps
|
(6.78
|
)
|
|
(21,181
|
)
|
|
(7.57
|
)
|
|
(22,257
|
)
|
-300 bps
|
(8.01
|
)
|
|
(25,041
|
)
|
|
(8.34
|
)
|
|
(24,515
|
)
|
|
Change In Economic Value of Equity
December 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
|
%
|
|
$
|
|
%
|
|
$
|
||||
Change in Yield Curve:
|
|
|
|
|
|
|
|
|
|
|
|
+300 bps
|
(2.69
|
)
|
|
(40,737
|
)
|
|
2.43
|
|
|
35,121
|
|
+200 bps
|
(1.26
|
)
|
|
(19,010
|
)
|
|
2.13
|
|
|
30,752
|
|
+100 bps
|
(0.19
|
)
|
|
(2,889
|
)
|
|
1.43
|
|
|
20,715
|
|
Most likely rate scenario
|
|
|
|
|
|
|
|
||||
-100 bps
|
(2.23
|
)
|
|
(33,689
|
)
|
|
(3.61
|
)
|
|
(52,094
|
)
|
-200 bps
|
(6.34
|
)
|
|
(96,010
|
)
|
|
(9.93
|
)
|
|
(143,307
|
)
|
-300 bps
|
(9.62
|
)
|
|
(145,534
|
)
|
|
(13.28
|
)
|
|
(191,720
|
)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Interest Income (FTE)
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Income (GAAP)
|
$
|
330,194
|
|
|
$
|
294,920
|
|
|
$
|
276,771
|
|
|
$
|
274,945
|
|
|
$
|
172,127
|
|
FTE adjustment
|
10,616
|
|
|
10,244
|
|
|
9,079
|
|
|
8,127
|
|
|
5,256
|
|
|||||
Interest Income FTE (non-GAAP)
|
$
|
340,810
|
|
|
$
|
305,164
|
|
|
$
|
285,850
|
|
|
$
|
283,072
|
|
|
$
|
177,383
|
|
Average earning assets
|
$
|
8,016,311
|
|
|
$
|
7,249,090
|
|
|
$
|
6,713,239
|
|
|
$
|
6,437,681
|
|
|
$
|
3,716,849
|
|
Yield on interest-earning assets (GAAP)
|
4.12
|
%
|
|
4.07
|
%
|
|
4.12
|
%
|
|
4.27
|
%
|
|
4.63
|
%
|
|||||
Yield on interest-earning assets (FTE) (non-GAAP)
|
4.25
|
%
|
|
4.21
|
%
|
|
4.26
|
%
|
|
4.40
|
%
|
|
4.77
|
%
|
|||||
Net Interest Income (FTE)
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income (GAAP)
|
$
|
280,157
|
|
|
$
|
265,150
|
|
|
$
|
251,834
|
|
|
$
|
255,018
|
|
|
$
|
151,626
|
|
FTE adjustment
|
10,616
|
|
|
10,244
|
|
|
9,079
|
|
|
8,127
|
|
|
5,256
|
|
|||||
Net Interest Income FTE (non-GAAP)
|
$
|
290,773
|
|
|
$
|
275,394
|
|
|
$
|
260,913
|
|
|
$
|
263,145
|
|
|
$
|
156,882
|
|
Average earning assets
|
$
|
8,016,311
|
|
|
$
|
7,249,090
|
|
|
$
|
6,713,239
|
|
|
$
|
6,437,681
|
|
|
$
|
3,716,849
|
|
Net interest margin (GAAP)
|
3.49
|
%
|
|
3.66
|
%
|
|
3.75
|
%
|
|
3.96
|
%
|
|
4.08
|
%
|
|||||
Net interest margin (FTE) (non-GAAP)
|
3.63
|
%
|
|
3.80
|
%
|
|
3.89
|
%
|
|
4.09
|
%
|
|
4.22
|
%
|
|||||
Tangible Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Assets (GAAP)
|
$
|
9,315,179
|
|
|
$
|
8,426,793
|
|
|
$
|
7,693,291
|
|
|
$
|
7,358,643
|
|
|
$
|
4,176,353
|
|
Less: Ending goodwill
|
298,528
|
|
|
298,191
|
|
|
293,522
|
|
|
293,522
|
|
|
59,400
|
|
|||||
Less: Ending amortizable intangibles
|
14,803
|
|
|
20,602
|
|
|
23,310
|
|
|
31,755
|
|
|
11,980
|
|
|||||
Ending tangible assets (non-GAAP)
|
$
|
9,001,848
|
|
|
$
|
8,108,000
|
|
|
$
|
7,376,459
|
|
|
$
|
7,033,366
|
|
|
$
|
4,104,973
|
|
Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Ending equity (GAAP)
|
$
|
1,046,329
|
|
|
$
|
1,001,032
|
|
|
$
|
995,367
|
|
|
$
|
977,169
|
|
|
$
|
437,810
|
|
Less: Ending goodwill
|
298,528
|
|
|
298,191
|
|
|
293,522
|
|
|
293,522
|
|
|
59,400
|
|
|||||
Less: Ending amortizable intangibles
|
14,803
|
|
|
20,602
|
|
|
23,310
|
|
|
31,755
|
|
|
11,980
|
|
|||||
Ending tangible common equity (non-GAAP)
|
$
|
732,998
|
|
|
$
|
682,239
|
|
|
$
|
678,535
|
|
|
$
|
651,892
|
|
|
$
|
366,430
|
|
Average equity (GAAP)
|
$
|
1,030,847
|
|
|
$
|
994,785
|
|
|
$
|
991,977
|
|
|
$
|
983,727
|
|
|
$
|
435,635
|
|
Less: Average goodwill
|
298,240
|
|
|
296,087
|
|
|
293,522
|
|
|
296,870
|
|
|
59,400
|
|
|||||
Less: Average amortizable intangibles
|
17,482
|
|
|
22,044
|
|
|
27,384
|
|
|
36,625
|
|
|
13,805
|
|
|||||
Average tangible common equity (non-GAAP)
|
$
|
715,125
|
|
|
$
|
676,654
|
|
|
$
|
671,071
|
|
|
$
|
650,232
|
|
|
$
|
362,430
|
|
ROE (GAAP)
|
7.07
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
5.30
|
%
|
|
7.89
|
%
|
|||||
ROTCE (non-GAAP)
|
10.20
|
%
|
|
11.45
|
%
|
|
10.00
|
%
|
|
8.02
|
%
|
|
9.48
|
%
|
|||||
Common equity to assets (GAAP)
|
11.23
|
%
|
|
11.88
|
%
|
|
12.94
|
%
|
|
13.28
|
%
|
|
10.48
|
%
|
|||||
Tangible common equity to tangible assets (non-GAAP)
|
8.14
|
%
|
|
8.41
|
%
|
|
9.20
|
%
|
|
9.27
|
%
|
|
8.93
|
%
|
|||||
Book value per share (GAAP)
|
24.10
|
|
|
23.15
|
|
|
22.38
|
|
|
21.73
|
|
|
17.63
|
|
|||||
Tangible book value per share (non-GAAP)
|
16.88
|
|
|
15.78
|
|
|
15.25
|
|
|
14.50
|
|
|
14.76
|
|
|||||
Operating Earnings & EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net Income (GAAP)
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
|
$
|
34,366
|
|
Plus: Merger-related costs, net of tax
|
4,405
|
|
|
—
|
|
|
—
|
|
|
13,724
|
|
|
2,042
|
|
|||||
Plus: Nonrecurring tax expenses
|
6,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net operating earnings (non-GAAP)
|
$
|
83,578
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
65,888
|
|
|
$
|
36,408
|
|
Weighted average common shares outstanding, diluted
|
43,779,744
|
|
|
43,890,271
|
|
|
45,138,891
|
|
|
46,130,895
|
|
|
25,030,711
|
|
|||||
Earnings per common share, diluted (GAAP)
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.13
|
|
|
$
|
1.37
|
|
Operating earnings per common share, diluted (non-GAAP)
|
$
|
1.91
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.43
|
|
|
$
|
1.45
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Operating Performance Metrics
|
|
|
|
|
|
|
|
|
|
||||||||||
Average assets (GAAP)
|
$
|
8,820,142
|
|
|
$
|
8,046,305
|
|
|
$
|
7,492,895
|
|
|
$
|
7,250,494
|
|
|
$
|
4,051,850
|
|
ROA (GAAP)
|
0.83
|
%
|
|
0.96
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|
0.85
|
%
|
|||||
Operating ROA (non-GAAP)
|
0.95
|
%
|
|
0.96
|
%
|
|
0.90
|
%
|
|
0.91
|
%
|
|
0.90
|
%
|
|||||
Average common equity (GAAP)
|
$
|
1,030,847
|
|
|
$
|
994,785
|
|
|
$
|
991,977
|
|
|
$
|
983,727
|
|
|
$
|
435,635
|
|
ROE (GAAP)
|
7.07
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
5.30
|
%
|
|
7.89
|
%
|
|||||
Operating ROE (non-GAAP)
|
8.11
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
6.70
|
%
|
|
8.36
|
%
|
|||||
Average tangible common equity (non-GAAP)
|
$
|
715,125
|
|
|
$
|
676,654
|
|
|
$
|
671,071
|
|
|
$
|
650,232
|
|
|
$
|
362,430
|
|
ROTCE (non-GAAP)
|
10.20
|
%
|
|
11.45
|
%
|
|
10.00
|
%
|
|
8.02
|
%
|
|
9.48
|
%
|
|||||
Operating ROTCE (non-GAAP)
|
11.69
|
%
|
|
11.45
|
%
|
|
10.00
|
%
|
|
10.13
|
%
|
|
10.05
|
%
|
|||||
Operating Noninterest Expense & Efficiency Ratio
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest expense (GAAP)
|
$
|
234,765
|
|
|
$
|
222,703
|
|
|
$
|
216,882
|
|
|
$
|
238,216
|
|
|
$
|
137,047
|
|
Less: Merger-related costs
|
5,393
|
|
|
—
|
|
|
—
|
|
|
20,345
|
|
|
2,132
|
|
|||||
Operating noninterest expense (non-GAAP)
|
$
|
229,372
|
|
|
$
|
222,703
|
|
|
$
|
216,882
|
|
|
$
|
217,871
|
|
|
$
|
134,915
|
|
Net interest income (GAAP)
|
$
|
280,157
|
|
|
$
|
265,150
|
|
|
$
|
251,834
|
|
|
$
|
255,018
|
|
|
$
|
151,626
|
|
Net interest income (FTE) (non-GAAP)
|
290,773
|
|
|
275,394
|
|
|
260,913
|
|
|
263,145
|
|
|
156,882
|
|
|||||
Noninterest income (GAAP)
|
71,674
|
|
|
70,907
|
|
|
65,007
|
|
|
61,287
|
|
|
38,728
|
|
|||||
Efficiency Ratio (GAAP)
|
66.73
|
%
|
|
66.27
|
%
|
|
68.45
|
%
|
|
75.31
|
%
|
|
72.00
|
%
|
|||||
Efficiency Ratio (FTE) (non-GAAP)
|
64.77
|
%
|
|
64.31
|
%
|
|
66.54
|
%
|
|
73.43
|
%
|
|
70.06
|
%
|
|||||
Operating efficiency ratio (FTE) (non-GAAP)
|
63.28
|
%
|
|
64.31
|
%
|
|
66.54
|
%
|
|
67.15
|
%
|
|
68.97
|
%
|
|||||
Operating Earnings & EPS - Community Bank Segment
|
|
|
|
|
|
|
|
|
|||||||||||
Community Bank Segment net income (GAAP)
|
$
|
71,822
|
|
|
$
|
75,716
|
|
|
$
|
67,281
|
|
|
$
|
55,662
|
|
|
$
|
37,025
|
|
Plus: Merger-related costs, net of tax
|
4,405
|
|
|
—
|
|
|
—
|
|
|
13,724
|
|
|
2,042
|
|
|||||
Plus: Nonrecurring tax expenses
|
6,120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Community bank segment net operating earnings (non-GAAP)
|
$
|
82,347
|
|
|
$
|
75,716
|
|
|
$
|
67,281
|
|
|
$
|
69,386
|
|
|
$
|
39,067
|
|
Weighted average common shares outstanding, diluted
|
43,779,744
|
|
|
43,890,271
|
|
|
45,138,891
|
|
|
46,130,895
|
|
|
25,030,711
|
|
|||||
Community bank earnings per common share, diluted (GAAP)
|
$
|
1.64
|
|
|
$
|
1.73
|
|
|
$
|
1.49
|
|
|
$
|
1.21
|
|
|
$
|
1.48
|
|
Community bank operating earnings per common share, diluted (non-GAAP)
|
$
|
1.88
|
|
|
$
|
1.73
|
|
|
$
|
1.49
|
|
|
$
|
1.50
|
|
|
$
|
1.56
|
|
Operating Noninterest Expense - Community Bank Segment
|
|
|
|
|
|
|
|
|
|||||||||||
Community bank segment noninterest expense (GAAP)
|
$
|
225,366
|
|
|
$
|
212,774
|
|
|
$
|
205,993
|
|
|
$
|
222,311
|
|
|
$
|
120,014
|
|
Less: Merger-related costs
|
5,393
|
|
|
—
|
|
|
—
|
|
|
20,345
|
|
|
2,132
|
|
|||||
Community bank segment operating noninterest expense (non-GAAP)
|
$
|
219,973
|
|
|
$
|
212,774
|
|
|
$
|
205,993
|
|
|
$
|
201,966
|
|
|
$
|
117,882
|
|
Operating Earnings - Mortgage Bank Segment
|
|
|
|
|
|
|
|
|
|||||||||||
Mortgage segment net income (GAAP)
|
$
|
1,101
|
|
|
$
|
1,760
|
|
|
$
|
(202
|
)
|
|
$
|
(3,498
|
)
|
|
$
|
(2,659
|
)
|
Plus: Nonrecurring tax expenses
|
130
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage segment net operating earnings (non-GAAP)
|
$
|
1,231
|
|
|
$
|
1,760
|
|
|
$
|
(202
|
)
|
|
$
|
(3,498
|
)
|
|
$
|
(2,659
|
)
|
|
Quarter
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
For the Year 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income
|
$
|
76,640
|
|
|
$
|
81,221
|
|
|
$
|
84,850
|
|
|
$
|
87,482
|
|
Interest expense
|
10,073
|
|
|
12,222
|
|
|
13,652
|
|
|
14,090
|
|
||||
Net interest income
|
66,567
|
|
|
68,999
|
|
|
71,198
|
|
|
73,392
|
|
||||
Provision for credit losses
|
2,122
|
|
|
2,173
|
|
|
3,050
|
|
|
3,411
|
|
||||
Net interest income after provision for credit losses
|
64,445
|
|
|
66,826
|
|
|
68,148
|
|
|
69,981
|
|
||||
Noninterest income
|
18,839
|
|
|
18,056
|
|
|
17,536
|
|
|
17,243
|
|
||||
Noninterest expenses
|
57,395
|
|
|
59,930
|
|
|
57,496
|
|
|
59,944
|
|
||||
Income before income taxes
|
25,889
|
|
|
24,952
|
|
|
28,188
|
|
|
27,280
|
|
||||
Income tax expense
|
6,765
|
|
|
6,996
|
|
|
7,530
|
|
|
12,095
|
|
||||
Net income
|
$
|
19,124
|
|
|
$
|
17,956
|
|
|
$
|
20,658
|
|
|
$
|
15,185
|
|
Earnings per share, basic
|
$
|
0.44
|
|
|
$
|
0.41
|
|
|
$
|
0.47
|
|
|
$
|
0.35
|
|
Earnings per share, diluted
|
$
|
0.44
|
|
|
$
|
0.41
|
|
|
$
|
0.47
|
|
|
$
|
0.35
|
|
Basic weighted average number of common shares outstanding
|
43,654,498
|
|
|
43,693,427
|
|
|
43,706,635
|
|
|
43,740,001
|
|
||||
Diluted weighted average number of common shares outstanding
|
43,725,923
|
|
|
43,783,952
|
|
|
43,792,058
|
|
|
43,816,018
|
|
||||
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
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||
CONSOLIDATED BALANCE SHEETS
|
|||||||
AS OF DECEMBER 31, 2017 AND 2016
|
|||||||
(Dollars in thousands, except share data)
|
|||||||
|
2017
|
|
2016
|
||||
ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents:
|
|
|
|
|
|
||
Cash and due from banks
|
$
|
117,586
|
|
|
$
|
120,758
|
|
Interest-bearing deposits in other banks
|
81,291
|
|
|
58,030
|
|
||
Federal funds sold
|
496
|
|
|
449
|
|
||
Total cash and cash equivalents
|
199,373
|
|
|
179,237
|
|
||
Securities available for sale, at fair value
|
974,222
|
|
|
946,764
|
|
||
Securities held to maturity, at carrying value
|
199,639
|
|
|
201,526
|
|
||
Restricted stock, at cost
|
75,283
|
|
|
60,782
|
|
||
Loans held for sale, at fair value
|
40,662
|
|
|
36,487
|
|
||
Loans held for investment, net of deferred fees and costs
|
7,141,552
|
|
|
6,307,060
|
|
||
Less allowance for loan losses
|
38,208
|
|
|
37,192
|
|
||
Net loans held for investment
|
7,103,344
|
|
|
6,269,868
|
|
||
Premises and equipment, net
|
119,981
|
|
|
122,027
|
|
||
Other real estate owned, net of valuation allowance
|
6,636
|
|
|
10,084
|
|
||
Goodwill
|
298,528
|
|
|
298,191
|
|
||
Amortizable intangibles, net
|
14,803
|
|
|
20,602
|
|
||
Bank owned life insurance
|
182,854
|
|
|
179,318
|
|
||
Other assets
|
99,854
|
|
|
101,907
|
|
||
Total assets
|
$
|
9,315,179
|
|
|
$
|
8,426,793
|
|
LIABILITIES
|
|
|
|
|
|
||
Noninterest-bearing demand deposits
|
$
|
1,502,208
|
|
|
$
|
1,393,625
|
|
Interest-bearing deposits
|
5,489,510
|
|
|
4,985,864
|
|
||
Total deposits
|
6,991,718
|
|
|
6,379,489
|
|
||
Securities sold under agreements to repurchase
|
49,152
|
|
|
59,281
|
|
||
Other short-term borrowings
|
745,000
|
|
|
517,500
|
|
||
Long-term borrowings
|
425,262
|
|
|
413,308
|
|
||
Other liabilities
|
57,718
|
|
|
56,183
|
|
||
Total liabilities
|
8,268,850
|
|
|
7,425,761
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 43,743,318 shares and 43,609,317 shares, respectively.
|
57,744
|
|
|
57,506
|
|
||
Additional paid-in capital
|
610,001
|
|
|
605,397
|
|
||
Retained earnings
|
379,468
|
|
|
341,938
|
|
||
Accumulated other comprehensive income (loss)
|
(884
|
)
|
|
(3,809
|
)
|
||
Total stockholders' equity
|
1,046,329
|
|
|
1,001,032
|
|
||
Total liabilities and stockholders' equity
|
$
|
9,315,179
|
|
|
$
|
8,426,793
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||
YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
|
|||||||||||
(Dollars in thousands, except per share amounts)
|
|||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|||
Interest and fees on loans
|
$
|
295,146
|
|
|
$
|
262,567
|
|
|
$
|
247,587
|
|
Interest on deposits in other banks
|
539
|
|
|
244
|
|
|
94
|
|
|||
Interest and dividends on securities:
|
|
|
|
|
|
|
|
|
|||
Taxable
|
20,305
|
|
|
18,319
|
|
|
15,606
|
|
|||
Nontaxable
|
14,204
|
|
|
13,790
|
|
|
13,484
|
|
|||
Total interest and dividend income
|
330,194
|
|
|
294,920
|
|
|
276,771
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest on deposits
|
26,106
|
|
|
17,731
|
|
|
15,553
|
|
|||
Interest on short-term borrowings
|
6,035
|
|
|
2,894
|
|
|
944
|
|
|||
Interest on long-term borrowings
|
17,896
|
|
|
9,145
|
|
|
8,440
|
|
|||
Total interest expense
|
50,037
|
|
|
29,770
|
|
|
24,937
|
|
|||
Net interest income
|
280,157
|
|
|
265,150
|
|
|
251,834
|
|
|||
Provision for credit losses
|
10,756
|
|
|
9,100
|
|
|
9,571
|
|
|||
Net interest income after provision for credit losses
|
269,401
|
|
|
256,050
|
|
|
242,263
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
20,212
|
|
|
19,496
|
|
|
18,904
|
|
|||
Other service charges, commissions and fees
|
18,205
|
|
|
17,175
|
|
|
15,575
|
|
|||
Fiduciary and asset management fees
|
11,245
|
|
|
10,199
|
|
|
9,141
|
|
|||
Mortgage banking income, net
|
9,241
|
|
|
10,953
|
|
|
9,767
|
|
|||
Gains on securities transactions, net
|
800
|
|
|
205
|
|
|
1,486
|
|
|||
Other-than-temporary impairment losses
|
—
|
|
|
—
|
|
|
(300
|
)
|
|||
Bank owned life insurance income
|
6,144
|
|
|
5,513
|
|
|
4,593
|
|
|||
Loan-related interest rate swap fees
|
3,051
|
|
|
4,254
|
|
|
412
|
|
|||
Other operating income
|
2,776
|
|
|
3,112
|
|
|
5,429
|
|
|||
Total noninterest income
|
71,674
|
|
|
70,907
|
|
|
65,007
|
|
|||
Noninterest expenses:
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
122,222
|
|
|
117,103
|
|
|
104,192
|
|
|||
Occupancy expenses
|
19,594
|
|
|
19,528
|
|
|
20,053
|
|
|||
Furniture and equipment expenses
|
10,503
|
|
|
10,475
|
|
|
11,674
|
|
|||
Printing, postage, and supplies
|
4,962
|
|
|
4,692
|
|
|
5,124
|
|
|||
Communications expense
|
3,319
|
|
|
3,850
|
|
|
4,634
|
|
|||
Technology and data processing
|
16,485
|
|
|
15,368
|
|
|
13,667
|
|
|||
Professional services
|
7,925
|
|
|
8,085
|
|
|
6,309
|
|
|||
Marketing and advertising expense
|
7,838
|
|
|
7,784
|
|
|
7,215
|
|
|||
FDIC assessment premiums and other insurance
|
4,048
|
|
|
5,406
|
|
|
5,376
|
|
|||
Other taxes
|
8,087
|
|
|
5,456
|
|
|
6,227
|
|
|||
Loan-related expenses
|
5,328
|
|
|
4,790
|
|
|
4,097
|
|
|||
OREO and credit-related expenses
|
3,764
|
|
|
2,602
|
|
|
8,911
|
|
|||
Amortization of intangible assets
|
6,088
|
|
|
7,210
|
|
|
8,445
|
|
|||
Training and other personnel costs
|
3,934
|
|
|
3,435
|
|
|
3,675
|
|
|||
Merger-related costs
|
5,393
|
|
|
—
|
|
|
—
|
|
|||
Other expenses
|
5,275
|
|
|
6,919
|
|
|
7,283
|
|
|||
Total noninterest expenses
|
234,765
|
|
|
222,703
|
|
|
216,882
|
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
106,310
|
|
|
104,254
|
|
|
90,388
|
|
|||
Income tax expense
|
33,387
|
|
|
26,778
|
|
|
23,309
|
|
|||
Net income
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
Basic earnings per common share
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
Diluted earnings per common share
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
Dividends declared per common share
|
$
|
0.81
|
|
|
$
|
0.77
|
|
|
$
|
0.68
|
|
Basic weighted average number of common shares outstanding
|
43,698,897
|
|
|
43,784,193
|
|
|
45,054,938
|
|
|||
Diluted weighted average number of common shares outstanding
|
43,779,744
|
|
|
43,890,271
|
|
|
45,138,891
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||
YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|||
Change in fair value of cash flow hedges
|
(44
|
)
|
|
270
|
|
|
(1,394
|
)
|
|||
Reclassification adjustment for losses included in net income (net of tax, $464, $274, and $335 for the years ended December 31, 2017, 2016, and 2015, respectively)
|
862
|
|
|
508
|
|
|
621
|
|
|||
AFS securities:
|
|
|
|
|
|
|
|
|
|||
Unrealized holding gains (losses) arising during period (net of tax, $1,580, $4,408, and $1,960 for the years ended December 31, 2017, 2016, and 2015, respectively)
|
2,936
|
|
|
(8,186
|
)
|
|
(3,640
|
)
|
|||
Reclassification adjustment for gains included in net income (net of tax, $280, $72, and $415 for the years ended December 31, 2017, 2016, and 2015, respectively)
|
(520
|
)
|
|
(133
|
)
|
|
(771
|
)
|
|||
HTM securities:
|
|
|
|
|
|
|
|
|
|||
Reclassification adjustment for accretion of unrealized gain on AFS securities transferred to HTM (net of tax, $362, $568, and $441 for the years ended December 31, 2017, 2016 and 2015, respectively)
|
(672
|
)
|
|
(1,055
|
)
|
|
(819
|
)
|
|||
BOLI:
|
|
|
|
|
|
||||||
Unrealized holding losses arising during period
|
—
|
|
|
(1,728
|
)
|
|
—
|
|
|||
Reclassification adjustment for losses included in net income
|
363
|
|
|
263
|
|
|
—
|
|
|||
Other comprehensive income (loss)
|
2,925
|
|
|
(10,061
|
)
|
|
(6,003
|
)
|
|||
Comprehensive income
|
$
|
75,848
|
|
|
$
|
67,415
|
|
|
$
|
61,076
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
|
|||||||||||||||||||
YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
|
|||||||||||||||||||
(Dollars in thousands, except share amounts)
|
|||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
(1)
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||||
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
|
|
|||||
Net income - 2017
|
|
|
|
|
|
|
72,923
|
|
|
|
|
|
72,923
|
|
|||||
Other comprehensive income (net of taxes of $1,402)
|
|
|
|
|
|
|
|
|
|
2,925
|
|
|
2,925
|
|
|||||
Dividends on common stock ($0.81 per share)
|
|
|
|
|
|
|
(35,393
|
)
|
|
|
|
|
(35,393
|
)
|
|||||
Issuance of common stock under Equity Compensation Plans (63,476 shares)
|
84
|
|
|
953
|
|
|
|
|
|
|
|
|
1,037
|
|
|||||
Issuance of common stock for services rendered (20,857 shares)
|
28
|
|
|
696
|
|
|
|
|
|
|
|
|
724
|
|
|||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (94,370 shares)
|
126
|
|
|
(1,693
|
)
|
|
|
|
|
|
|
|
(1,567
|
)
|
|||||
Stock-based compensation expense
|
|
|
|
4,648
|
|
|
|
|
|
|
|
|
4,648
|
|
|||||
Balance - December 31, 2017
|
$
|
57,744
|
|
|
$
|
610,001
|
|
|
$
|
379,468
|
|
|
$
|
(884
|
)
|
|
$
|
1,046,329
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||
YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation of premises and equipment
|
11,183
|
|
|
10,215
|
|
|
10,776
|
|
|||
Writedown of OREO
|
1,891
|
|
|
1,017
|
|
|
6,002
|
|
|||
Other-than-temporary impairment recognized in earnings
|
—
|
|
|
—
|
|
|
300
|
|
|||
Amortization, net
|
14,021
|
|
|
13,555
|
|
|
14,951
|
|
|||
Amortization (accretion) related to acquisition, net
|
(866
|
)
|
|
1,534
|
|
|
1,823
|
|
|||
Provision for credit losses
|
10,756
|
|
|
9,100
|
|
|
9,571
|
|
|||
Gains on securities transactions, net
|
(800
|
)
|
|
(205
|
)
|
|
(1,486
|
)
|
|||
BOLI income
|
(5,306
|
)
|
|
(5,513
|
)
|
|
(4,593
|
)
|
|||
Deferred tax expense (benefit)
|
5,624
|
|
|
243
|
|
|
(1,212
|
)
|
|||
Decrease (increase) in loans held for sale, net
|
(4,175
|
)
|
|
(457
|
)
|
|
6,489
|
|
|||
Losses (gains) on sales of OREO, net
|
19
|
|
|
(342
|
)
|
|
(260
|
)
|
|||
Losses on sales of premises, net
|
124
|
|
|
125
|
|
|
89
|
|
|||
Gains on sale of loans held for investment
|
—
|
|
|
—
|
|
|
(470
|
)
|
|||
Stock-based compensation expenses
|
4,648
|
|
|
3,270
|
|
|
1,388
|
|
|||
Issuance of common stock for services
|
724
|
|
|
533
|
|
|
564
|
|
|||
Net decrease (increase) in other assets
|
(5,785
|
)
|
|
(14,810
|
)
|
|
2,692
|
|
|||
Net increase (decrease) in other liabilities
|
5,352
|
|
|
(1,898
|
)
|
|
(2,780
|
)
|
|||
Net cash and cash equivalents provided by operating activities
|
110,333
|
|
|
93,843
|
|
|
110,923
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|||
Purchases of securities available for sale and restricted stock
|
(298,958
|
)
|
|
(259,020
|
)
|
|
(259,761
|
)
|
|||
Purchases of securities held to maturity
|
(7,836
|
)
|
|
(2,390
|
)
|
|
(9,830
|
)
|
|||
Proceeds from sales of securities available for sale and restricted stock
|
139,046
|
|
|
69,516
|
|
|
101,154
|
|
|||
Proceeds from maturities, calls and paydowns of securities available for sale
|
115,124
|
|
|
115,670
|
|
|
142,644
|
|
|||
Proceeds from maturities, calls and paydowns of securities held to maturity
|
5,048
|
|
|
2,686
|
|
|
3,680
|
|
|||
Net increase in loans held for investment
|
(838,668
|
)
|
|
(637,207
|
)
|
|
(356,300
|
)
|
|||
Proceeds from sale of loans held for investment
|
—
|
|
|
—
|
|
|
27,351
|
|
|||
Net increase in premises and equipment
|
(9,261
|
)
|
|
(6,339
|
)
|
|
(3,870
|
)
|
|||
Proceeds from BOLI settlements
|
2,497
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sales of OREO
|
2,448
|
|
|
5,837
|
|
|
10,309
|
|
|||
Improvements to OREO
|
—
|
|
|
—
|
|
|
(308
|
)
|
|||
Purchases of BOLI policies
|
—
|
|
|
—
|
|
|
(30,000
|
)
|
|||
Cash paid for equity-method investments
|
—
|
|
|
—
|
|
|
(355
|
)
|
|||
Cash paid in acquisitions
|
(231
|
)
|
|
(4,077
|
)
|
|
—
|
|
|||
Cash acquired in acquisitions
|
5,038
|
|
|
207
|
|
|
—
|
|
|||
Net cash and cash equivalents used in investing activities
|
(885,753
|
)
|
|
(715,117
|
)
|
|
(375,286
|
)
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|||
Net increase in noninterest-bearing deposits
|
105,093
|
|
|
20,688
|
|
|
173,559
|
|
|||
Net increase in interest-bearing deposits
|
502,018
|
|
|
394,865
|
|
|
153,450
|
|
|||
Net increase in short-term borrowings
|
217,371
|
|
|
187,804
|
|
|
1,584
|
|
|||
Cash paid for contingent consideration
|
(3,003
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of long-term debt
|
20,000
|
|
|
178,000
|
|
|
—
|
|
|||
Repayments of long-term debt
|
(10,000
|
)
|
|
(57,500
|
)
|
|
(10,000
|
)
|
|||
Cash dividends paid - common stock
|
(35,393
|
)
|
|
(33,672
|
)
|
|
(29,082
|
)
|
|||
Repurchase of common stock
|
—
|
|
|
(33,177
|
)
|
|
(16,260
|
)
|
|||
Issuance of common stock
|
1,037
|
|
|
1,429
|
|
|
928
|
|
|||
Vesting of restricted stock, including tax effects
|
(1,567
|
)
|
|
(586
|
)
|
|
(416
|
)
|
|||
Net cash and cash equivalents provided by financing activities
|
795,556
|
|
|
657,851
|
|
|
273,763
|
|
|||
Increase in cash and cash equivalents
|
20,136
|
|
|
36,577
|
|
|
9,400
|
|
|||
Cash and cash equivalents at beginning of the period
|
179,237
|
|
|
142,660
|
|
|
133,260
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
199,373
|
|
|
$
|
179,237
|
|
|
$
|
142,660
|
|
|
|
|
|
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||
YEARS ENDED DECEMBER 31, 2017, 2016, AND 2015
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
|
|
|
|
|||
Cash payments for:
|
|
|
|
|
|
|
|
|
|||
Interest
|
$
|
47,775
|
|
|
$
|
29,576
|
|
|
$
|
27,526
|
|
Income taxes
|
24,000
|
|
|
27,900
|
|
|
21,400
|
|
|||
|
|
|
|
|
|
||||||
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 OREO
|
910
|
|
|
1,297
|
|
|
700
|
|
|||
Transfers from Bank premises to OREO
|
—
|
|
|
—
|
|
|
2,224
|
|
|||
Issuance of common stock in exchange for net assets in acquisition
|
—
|
|
|
453
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Transactions related to acquisitions
|
|
|
|
|
|
|
|
|
|||
Assets acquired
|
293
|
|
|
4,668
|
|
|
—
|
|
|||
Liabilities assumed
|
5,437
|
|
|
4,807
|
|
|
—
|
|
QUALITATIVE FACTORS
|
||||
Portfolio
|
|
National / International
|
|
Local
|
Experience and ability of lending team
|
|
Interest rates
|
|
Level of economic activity
|
Pace of loan growth
|
|
Inflation
|
|
Unemployment
|
Footprint and expansion
|
|
Unemployment
|
|
Competition
|
Execution of loan risk rating process
|
|
Gross domestic product
|
|
Military/government impact
|
Degree of credit oversight
|
|
International uncertainty
|
|
|
Underwriting standards
|
|
Home Price Index
|
|
|
Delinquency levels in portfolio
|
|
Commercial Real Estate Price Index
|
|
|
Charge-off trends in portfolio
|
|
|
|
|
Credit concentrations / nature and volume of the portfolio
|
|
|
|
|
|
For the years ended
December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Loans
(1)
|
$
|
6,784
|
|
|
$
|
5,218
|
|
|
$
|
4,355
|
|
Core deposit intangible
(2)
|
(5,603
|
)
|
|
(6,930
|
)
|
|
(8,445
|
)
|
|||
Borrowings
(3)
|
170
|
|
|
458
|
|
|
424
|
|
|||
Time deposits
(4)
|
—
|
|
|
—
|
|
|
1,843
|
|
|||
Other amortizable intangibles
(2)
|
(485
|
)
|
|
(280
|
)
|
|
—
|
|
|||
Net impact to income before taxes
|
$
|
866
|
|
|
$
|
(1,534
|
)
|
|
$
|
(1,823
|
)
|
|
Amortized
|
|
Gross Unrealized
|
|
Estimated
|
||||||||||
|
Cost
|
|
Gains
|
|
(Losses)
|
|
Fair Value
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
295,546
|
|
|
$
|
6,842
|
|
|
$
|
(564
|
)
|
|
$
|
301,824
|
|
Corporate bonds
|
113,625
|
|
|
1,131
|
|
|
(876
|
)
|
|
113,880
|
|
||||
Mortgage-backed securities
|
552,431
|
|
|
2,596
|
|
|
(6,169
|
)
|
|
548,858
|
|
||||
Other securities
|
9,737
|
|
|
—
|
|
|
(77
|
)
|
|
9,660
|
|
||||
Total available for sale securities
|
$
|
971,339
|
|
|
$
|
10,569
|
|
|
$
|
(7,686
|
)
|
|
$
|
974,222
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
Less than 12 months
|
|
More than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
25,790
|
|
|
$
|
(132
|
)
|
|
$
|
16,934
|
|
|
$
|
(432
|
)
|
|
$
|
42,724
|
|
|
$
|
(564
|
)
|
Mortgage-backed securities
|
298,439
|
|
|
(3,267
|
)
|
|
136,298
|
|
|
(2,902
|
)
|
|
434,737
|
|
|
(6,169
|
)
|
||||||
Corporate bonds and other securities
|
10,976
|
|
|
(99
|
)
|
|
44,408
|
|
|
(854
|
)
|
|
55,384
|
|
|
(953
|
)
|
||||||
Total available for sale
|
$
|
335,205
|
|
|
$
|
(3,498
|
)
|
|
$
|
197,640
|
|
|
$
|
(4,188
|
)
|
|
$
|
532,845
|
|
|
$
|
(7,686
|
)
|
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, 2017
|
|
December 31, 2016
|
||||||||||||
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||||||
Due in one year or less
|
$
|
25,179
|
|
|
$
|
25,326
|
|
|
$
|
21,403
|
|
|
$
|
21,517
|
|
Due after one year through five years
|
145,276
|
|
|
145,980
|
|
|
108,198
|
|
|
109,778
|
|
||||
Due after five years through ten years
|
223,210
|
|
|
226,251
|
|
|
300,552
|
|
|
301,888
|
|
||||
Due after ten years
|
577,674
|
|
|
576,665
|
|
|
517,444
|
|
|
513,581
|
|
||||
Total securities available for sale
|
$
|
971,339
|
|
|
$
|
974,222
|
|
|
$
|
947,597
|
|
|
$
|
946,764
|
|
|
Carrying
|
|
Gross Unrealized
|
|
Estimated
|
||||||||||
|
Value
(1)
|
|
Gains
|
|
(Losses)
|
|
Fair Value
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
199,639
|
|
|
$
|
4,014
|
|
|
$
|
(170
|
)
|
|
$
|
203,483
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
201,526
|
|
|
$
|
1,617
|
|
|
$
|
(828
|
)
|
|
$
|
202,315
|
|
|
Less than 12 months
|
|
More than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
18,896
|
|
|
$
|
(139
|
)
|
|
$
|
1,084
|
|
|
$
|
(31
|
)
|
|
$
|
19,980
|
|
|
$
|
(170
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
92,841
|
|
|
$
|
(747
|
)
|
|
$
|
648
|
|
|
$
|
(81
|
)
|
|
$
|
93,489
|
|
|
$
|
(828
|
)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
Value
(1)
|
|
Estimated
Fair Value
|
|
Carrying
Value
(1)
|
|
Estimated
Fair Value
|
||||||||
Due in one year or less
|
$
|
3,221
|
|
|
$
|
3,230
|
|
|
$
|
4,403
|
|
|
$
|
4,440
|
|
Due after one year through five years
|
44,289
|
|
|
44,601
|
|
|
28,383
|
|
|
28,763
|
|
||||
Due after five years through ten years
|
79,114
|
|
|
80,532
|
|
|
51,730
|
|
|
51,522
|
|
||||
Due after ten years
|
73,015
|
|
|
75,120
|
|
|
117,010
|
|
|
117,590
|
|
||||
Total securities held to maturity
|
$
|
199,639
|
|
|
$
|
203,483
|
|
|
$
|
201,526
|
|
|
$
|
202,315
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Realized gains (losses):
|
|
|
|
|
|
|
|
|
|||
Gross realized gains
|
$
|
1,170
|
|
|
$
|
302
|
|
|
$
|
1,597
|
|
Gross realized losses
|
(370
|
)
|
|
(97
|
)
|
|
(111
|
)
|
|||
Net realized gains
|
$
|
800
|
|
|
$
|
205
|
|
|
$
|
1,486
|
|
Proceeds from sales of securities
|
$
|
139,046
|
|
|
$
|
69,516
|
|
|
$
|
101,154
|
|
|
2017
|
|
2016
|
||||
Construction and Land Development
|
$
|
948,791
|
|
|
$
|
751,131
|
|
Commercial Real Estate - Owner Occupied
|
943,933
|
|
|
857,805
|
|
||
Commercial Real Estate - Non-Owner Occupied
|
1,713,659
|
|
|
1,564,295
|
|
||
Multifamily Real Estate
|
357,079
|
|
|
334,276
|
|
||
Commercial & Industrial
|
612,023
|
|
|
551,526
|
|
||
Residential 1-4 Family - Commercial
|
612,395
|
|
|
551,636
|
|
||
Residential 1-4 Family - Mortgage
|
485,690
|
|
|
477,911
|
|
||
Auto
|
282,474
|
|
|
262,071
|
|
||
HELOC
|
537,521
|
|
|
526,884
|
|
||
Consumer and all other
|
647,987
|
|
|
429,525
|
|
||
Total loans held for investment, net
(1)
|
$
|
7,141,552
|
|
|
$
|
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
|
$
|
1,248
|
|
|
$
|
898
|
|
|
$
|
1,340
|
|
|
$
|
2,838
|
|
|
$
|
5,610
|
|
|
$
|
936,857
|
|
|
$
|
948,791
|
|
Commercial Real Estate - Owner Occupied
|
444
|
|
|
81
|
|
|
—
|
|
|
14,790
|
|
|
2,708
|
|
|
925,910
|
|
|
943,933
|
|
|||||||
Commercial Real Estate - Non-Owner Occupied
|
187
|
|
|
84
|
|
|
194
|
|
|
6,610
|
|
|
2,992
|
|
|
1,703,592
|
|
|
1,713,659
|
|
|||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
356,999
|
|
|
357,079
|
|
|||||||
Commercial & Industrial
|
1,147
|
|
|
109
|
|
|
214
|
|
|
408
|
|
|
316
|
|
|
609,829
|
|
|
612,023
|
|
|||||||
Residential 1-4 Family - Commercial
|
1,682
|
|
|
700
|
|
|
579
|
|
|
9,414
|
|
|
1,085
|
|
|
598,935
|
|
|
612,395
|
|
|||||||
Residential 1-4 Family - Mortgage
|
3,838
|
|
|
2,541
|
|
|
546
|
|
|
3,733
|
|
|
6,269
|
|
|
468,763
|
|
|
485,690
|
|
|||||||
Auto
|
3,541
|
|
|
185
|
|
|
40
|
|
|
—
|
|
|
413
|
|
|
278,295
|
|
|
282,474
|
|
|||||||
HELOC
|
2,382
|
|
|
717
|
|
|
217
|
|
|
950
|
|
|
2,075
|
|
|
531,180
|
|
|
537,521
|
|
|||||||
Consumer and all other
|
2,404
|
|
|
2,052
|
|
|
402
|
|
|
198
|
|
|
275
|
|
|
642,656
|
|
|
647,987
|
|
|||||||
Total loans held for investment
|
$
|
16,873
|
|
|
$
|
7,367
|
|
|
$
|
3,532
|
|
|
$
|
39,021
|
|
|
$
|
21,743
|
|
|
$
|
7,053,016
|
|
|
$
|
7,141,552
|
|
|
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 - Commercial
|
1,722
|
|
|
147
|
|
|
600
|
|
|
12,222
|
|
|
1,071
|
|
|
535,874
|
|
|
551,636
|
|
|||||||
Residential 1-4 Family - Mortgage
|
5,316
|
|
|
387
|
|
|
1,448
|
|
|
3,978
|
|
|
4,208
|
|
|
462,574
|
|
|
477,911
|
|
|||||||
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
|
|
|
30-89 Days
Past Due
|
|
Greater than
90 Days
|
|
Current
|
|
Total
|
||||||||
Construction and Land Development
|
$
|
8
|
|
|
$
|
57
|
|
|
$
|
2,773
|
|
|
$
|
2,838
|
|
Commercial Real Estate - Owner Occupied
|
381
|
|
|
478
|
|
|
13,931
|
|
|
14,790
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
188
|
|
|
233
|
|
|
6,189
|
|
|
6,610
|
|
||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
80
|
|
|
80
|
|
||||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
408
|
|
|
408
|
|
||||
Residential 1-4 Family - Commercial
|
433
|
|
|
351
|
|
|
8,630
|
|
|
9,414
|
|
||||
Residential 1-4 Family - Mortgage
|
343
|
|
|
626
|
|
|
2,764
|
|
|
3,733
|
|
||||
HELOC
|
291
|
|
|
214
|
|
|
445
|
|
|
950
|
|
||||
Consumer and all other
|
—
|
|
|
—
|
|
|
198
|
|
|
198
|
|
||||
Total
|
$
|
1,644
|
|
|
$
|
1,959
|
|
|
$
|
35,418
|
|
|
$
|
39,021
|
|
|
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 - Commercial
|
964
|
|
|
93
|
|
|
11,165
|
|
|
12,222
|
|
||||
Residential 1-4 Family - Mortgage
|
334
|
|
|
852
|
|
|
2,792
|
|
|
3,978
|
|
||||
HELOC
|
175
|
|
|
121
|
|
|
865
|
|
|
1,161
|
|
||||
Consumer and all other
|
—
|
|
|
—
|
|
|
223
|
|
|
223
|
|
||||
Total
|
$
|
2,197
|
|
|
$
|
1,851
|
|
|
$
|
55,244
|
|
|
$
|
59,292
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||||||||
Loans without a specific allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and Land Development
|
$
|
16,035
|
|
|
$
|
16,214
|
|
|
$
|
—
|
|
|
$
|
13,877
|
|
|
$
|
14,353
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
5,427
|
|
|
5,527
|
|
|
—
|
|
|
5,886
|
|
|
6,042
|
|
|
—
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
6,017
|
|
|
6,103
|
|
|
—
|
|
|
1,399
|
|
|
1,399
|
|
|
—
|
|
||||||
Commercial & Industrial
|
1,681
|
|
|
1,933
|
|
|
—
|
|
|
648
|
|
|
890
|
|
|
—
|
|
||||||
Residential 1-4 Family - Commercial
|
4,098
|
|
|
4,879
|
|
|
—
|
|
|
4,301
|
|
|
5,208
|
|
|
—
|
|
||||||
Residential 1-4 Family - Mortgage
|
9,512
|
|
|
9,786
|
|
|
—
|
|
|
4,195
|
|
|
4,310
|
|
|
—
|
|
||||||
HELOC
|
2,056
|
|
|
2,144
|
|
|
—
|
|
|
1,017
|
|
|
1,094
|
|
|
—
|
|
||||||
Consumer and all other
|
567
|
|
|
734
|
|
|
—
|
|
|
230
|
|
|
427
|
|
|
—
|
|
||||||
Total impaired loans without a specific allowance
|
$
|
45,393
|
|
|
$
|
47,320
|
|
|
$
|
—
|
|
|
$
|
31,553
|
|
|
$
|
33,723
|
|
|
$
|
—
|
|
Loans with a specific allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction and Land Development
|
$
|
1,536
|
|
|
$
|
1,573
|
|
|
$
|
122
|
|
|
$
|
1,395
|
|
|
$
|
1,404
|
|
|
$
|
107
|
|
Commercial Real Estate - Owner Occupied
|
1,161
|
|
|
1,161
|
|
|
94
|
|
|
646
|
|
|
646
|
|
|
4
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
—
|
|
|
—
|
|
|
—
|
|
|
2,809
|
|
|
2,809
|
|
|
474
|
|
||||||
Commercial & Industrial
|
1,295
|
|
|
1,319
|
|
|
128
|
|
|
857
|
|
|
880
|
|
|
14
|
|
||||||
Residential 1-4 Family - Commercial
|
1,062
|
|
|
1,068
|
|
|
35
|
|
|
1,182
|
|
|
1,282
|
|
|
66
|
|
||||||
Residential 1-4 Family - Mortgage
|
1,953
|
|
|
2,070
|
|
|
36
|
|
|
2,153
|
|
|
2,253
|
|
|
134
|
|
||||||
Auto
|
413
|
|
|
577
|
|
|
2
|
|
|
169
|
|
|
235
|
|
|
1
|
|
||||||
HELOC
|
464
|
|
|
535
|
|
|
51
|
|
|
323
|
|
|
433
|
|
|
15
|
|
||||||
Consumer and all other
|
204
|
|
|
309
|
|
|
35
|
|
|
62
|
|
|
298
|
|
|
1
|
|
||||||
Total impaired loans with a specific allowance
|
$
|
8,088
|
|
|
$
|
8,612
|
|
|
$
|
503
|
|
|
$
|
9,596
|
|
|
$
|
10,240
|
|
|
$
|
816
|
|
Total impaired loans
|
$
|
53,481
|
|
|
$
|
55,932
|
|
|
$
|
503
|
|
|
$
|
41,149
|
|
|
$
|
43,963
|
|
|
$
|
816
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
Average
Investment
|
|
Interest
Income
Recognized
|
|
Average
Investment
|
|
Interest
Income
Recognized
|
|
Average
Investment
|
|
Interest
Income
Recognized
|
||||||||||||
Construction and Land Development
|
$
|
17,080
|
|
|
$
|
590
|
|
|
$
|
15,346
|
|
|
$
|
681
|
|
|
$
|
36,441
|
|
|
$
|
2,265
|
|
Commercial Real Estate - Owner Occupied
|
6,580
|
|
|
306
|
|
|
6,290
|
|
|
242
|
|
|
11,409
|
|
|
348
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
6,083
|
|
|
172
|
|
|
4,188
|
|
|
134
|
|
|
6,201
|
|
|
250
|
|
||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,854
|
|
|
244
|
|
||||||
Commercial & Industrial
|
3,208
|
|
|
150
|
|
|
2,800
|
|
|
95
|
|
|
3,404
|
|
|
139
|
|
||||||
Residential 1-4 Family - Commercial
|
5,428
|
|
|
190
|
|
|
6,225
|
|
|
205
|
|
|
9,990
|
|
|
383
|
|
||||||
Residential 1-4 Family - Mortgage
|
11,806
|
|
|
194
|
|
|
6,491
|
|
|
86
|
|
|
4,478
|
|
|
27
|
|
||||||
Auto
|
579
|
|
|
19
|
|
|
244
|
|
|
5
|
|
|
235
|
|
|
6
|
|
||||||
HELOC
|
2,659
|
|
|
36
|
|
|
1,513
|
|
|
19
|
|
|
2,757
|
|
|
54
|
|
||||||
Consumer and all other
|
810
|
|
|
36
|
|
|
567
|
|
|
8
|
|
|
639
|
|
|
19
|
|
||||||
Total impaired loans
|
$
|
54,233
|
|
|
$
|
1,693
|
|
|
$
|
43,664
|
|
|
$
|
1,475
|
|
|
$
|
79,408
|
|
|
$
|
3,735
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
No. of
Loans
|
|
Recorded
Investment
|
|
Outstanding
Commitment
|
|
No. of
Loans
|
|
Recorded
Investment
|
|
Outstanding
Commitment
|
||||||||||
Performing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
7
|
|
|
$
|
2,803
|
|
|
$
|
—
|
|
|
8
|
|
|
$
|
3,793
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
5
|
|
|
2,221
|
|
|
—
|
|
|
7
|
|
|
3,106
|
|
|
—
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
2
|
|
|
715
|
|
|
—
|
|
|
2
|
|
|
2,390
|
|
|
—
|
|
||||
Commercial & Industrial
|
12
|
|
|
2,057
|
|
|
—
|
|
|
3
|
|
|
533
|
|
|
—
|
|
||||
Residential 1-4 Family - Commercial
|
16
|
|
|
1,048
|
|
|
—
|
|
|
16
|
|
|
1,623
|
|
|
—
|
|
||||
Residential 1-4 Family - Mortgage
|
24
|
|
|
5,194
|
|
|
—
|
|
|
12
|
|
|
2,522
|
|
|
—
|
|
||||
HELOC
|
1
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and all other
|
1
|
|
|
495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total performing
|
68
|
|
|
$
|
14,553
|
|
|
$
|
—
|
|
|
48
|
|
|
$
|
13,967
|
|
|
$
|
—
|
|
Nonperforming
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
2
|
|
|
$
|
702
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
215
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
2
|
|
|
134
|
|
|
—
|
|
|
2
|
|
|
156
|
|
|
—
|
|
||||
Commercial & Industrial
|
2
|
|
|
108
|
|
|
—
|
|
|
1
|
|
|
116
|
|
|
—
|
|
||||
Residential 1-4 Family - Commercial
|
5
|
|
|
558
|
|
|
—
|
|
|
4
|
|
|
157
|
|
|
—
|
|
||||
Residential 1-4 Family - Mortgage
|
7
|
|
|
1,264
|
|
|
—
|
|
|
4
|
|
|
791
|
|
|
—
|
|
||||
HELOC
|
1
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and all other
|
1
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total nonperforming
|
20
|
|
|
$
|
2,849
|
|
|
$
|
—
|
|
|
13
|
|
|
$
|
1,435
|
|
|
$
|
—
|
|
Total performing and nonperforming
|
88
|
|
|
$
|
17,402
|
|
|
$
|
—
|
|
|
61
|
|
|
$
|
15,402
|
|
|
$
|
—
|
|
|
All Restructurings
|
|
Restructurings with Payment Default
|
||||||||||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
No. of
Loans
|
|
Recorded
Investment at
Period End
|
|
No. of
Loans
|
|
Recorded
Investment at
Period End
|
|
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
|
5
|
|
|
631
|
|
|
1
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential 1-4 Family - Commercial
|
—
|
|
|
—
|
|
|
1
|
|
|
158
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total interest only at market rate of interest
|
5
|
|
|
$
|
631
|
|
|
6
|
|
|
$
|
1,000
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Term modification, at a market rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction and Land Development
|
4
|
|
|
$
|
1,564
|
|
|
2
|
|
|
$
|
1,444
|
|
|
1
|
|
|
$
|
160
|
|
|
—
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
1
|
|
|
378
|
|
|
3
|
|
|
1,326
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
2
|
|
|
715
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial & Industrial
|
5
|
|
|
1,040
|
|
|
1
|
|
|
444
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential 1-4 Family - Commercial
|
5
|
|
|
764
|
|
|
3
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential 1-4 Family - Mortgage
|
9
|
|
|
2,461
|
|
|
3
|
|
|
580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and all other
|
2
|
|
|
519
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total loan term extended at a market rate
|
28
|
|
|
$
|
7,441
|
|
|
12
|
|
|
$
|
4,194
|
|
|
1
|
|
|
$
|
160
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Term modification, below market rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial Real Estate - Owner Occupied
|
1
|
|
|
$
|
837
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Commercial & Industrial
|
2
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential 1-4 Family - Commercial
|
5
|
|
|
183
|
|
|
2
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential 1-4 Family - Mortgage
|
11
|
|
|
1,803
|
|
|
5
|
|
|
1,245
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
HELOC
|
2
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total loan term extended at a below market rate
|
21
|
|
|
$
|
2,980
|
|
|
7
|
|
|
$
|
1,309
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate modification, below market rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial & Industrial
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
116
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Total interest only at below market rate of interest
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
116
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
54
|
|
|
$
|
11,052
|
|
|
26
|
|
|
$
|
6,619
|
|
|
1
|
|
|
$
|
160
|
|
|
—
|
|
|
$
|
—
|
|
|
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
|
$
|
10,055
|
|
|
$
|
206
|
|
|
$
|
(2,190
|
)
|
|
$
|
1,638
|
|
|
$
|
9,709
|
|
Commercial Real Estate - Owner Occupied
|
3,801
|
|
|
171
|
|
|
(46
|
)
|
|
(995
|
)
|
|
2,931
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
6,622
|
|
|
2
|
|
|
(1,180
|
)
|
|
2,100
|
|
|
7,544
|
|
|||||
Multifamily Real Estate
|
1,236
|
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
1,092
|
|
|||||
Commercial & Industrial
|
4,627
|
|
|
483
|
|
|
(2,277
|
)
|
|
1,719
|
|
|
4,552
|
|
|||||
Residential 1-4 Family - Commercial
|
3,698
|
|
|
329
|
|
|
(463
|
)
|
|
873
|
|
|
4,437
|
|
|||||
Residential 1-4 Family - Mortgage
|
2,701
|
|
|
102
|
|
|
(588
|
)
|
|
(691
|
)
|
|
1,524
|
|
|||||
Auto
|
946
|
|
|
459
|
|
|
(1,038
|
)
|
|
608
|
|
|
975
|
|
|||||
HELOC
|
1,328
|
|
|
314
|
|
|
(1,019
|
)
|
|
737
|
|
|
1,360
|
|
|||||
Consumer and all other
|
2,178
|
|
|
1,189
|
|
|
(4,509
|
)
|
|
5,226
|
|
|
4,084
|
|
|||||
Total
|
$
|
37,192
|
|
|
$
|
3,255
|
|
|
$
|
(13,310
|
)
|
|
$
|
11,071
|
|
|
$
|
38,208
|
|
|
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
|
$
|
17,571
|
|
|
$
|
122
|
|
|
$
|
928,382
|
|
|
$
|
9,587
|
|
|
$
|
2,838
|
|
|
$
|
—
|
|
|
$
|
948,791
|
|
|
$
|
9,709
|
|
Commercial Real Estate - Owner Occupied
|
6,588
|
|
|
94
|
|
|
922,555
|
|
|
2,837
|
|
|
14,790
|
|
|
—
|
|
|
943,933
|
|
|
2,931
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
6,017
|
|
|
—
|
|
|
1,701,032
|
|
|
7,544
|
|
|
6,610
|
|
|
—
|
|
|
1,713,659
|
|
|
7,544
|
|
||||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
356,999
|
|
|
1,092
|
|
|
80
|
|
|
—
|
|
|
357,079
|
|
|
1,092
|
|
||||||||
Commercial & Industrial
|
2,976
|
|
|
128
|
|
|
608,639
|
|
|
4,424
|
|
|
408
|
|
|
—
|
|
|
612,023
|
|
|
4,552
|
|
||||||||
Residential 1-4 Family - Commercial
|
5,160
|
|
|
35
|
|
|
597,821
|
|
|
4,402
|
|
|
9,414
|
|
|
—
|
|
|
612,395
|
|
|
4,437
|
|
||||||||
Residential 1-4 Family - Mortgage
|
11,465
|
|
|
36
|
|
|
470,492
|
|
|
1,488
|
|
|
3,733
|
|
|
—
|
|
|
485,690
|
|
|
1,524
|
|
||||||||
Auto
|
413
|
|
|
2
|
|
|
282,061
|
|
|
973
|
|
|
—
|
|
|
—
|
|
|
282,474
|
|
|
975
|
|
||||||||
HELOC
|
2,520
|
|
|
51
|
|
|
534,051
|
|
|
1,309
|
|
|
950
|
|
|
—
|
|
|
537,521
|
|
|
1,360
|
|
||||||||
Consumer and all other
|
771
|
|
|
35
|
|
|
647,018
|
|
|
4,049
|
|
|
198
|
|
|
—
|
|
|
647,987
|
|
|
4,084
|
|
||||||||
Total loans held for investment, net
|
$
|
53,481
|
|
|
$
|
503
|
|
|
$
|
7,049,050
|
|
|
$
|
37,705
|
|
|
$
|
39,021
|
|
|
$
|
—
|
|
|
$
|
7,141,552
|
|
|
$
|
38,208
|
|
|
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 - Commercial
|
3,025
|
|
|
318
|
|
|
(716
|
)
|
|
1,071
|
|
|
3,698
|
|
|||||
Residential 1-4 Family - Mortgage
|
2,389
|
|
|
267
|
|
|
(184
|
)
|
|
229
|
|
|
2,701
|
|
|||||
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 - Commercial
|
5,483
|
|
|
66
|
|
|
533,931
|
|
|
3,632
|
|
|
12,222
|
|
|
—
|
|
|
551,636
|
|
|
3,698
|
|
||||||||
Residential 1-4 Family - Mortgage
|
6,348
|
|
|
134
|
|
|
467,585
|
|
|
2,567
|
|
|
3,978
|
|
|
—
|
|
|
477,911
|
|
|
2,701
|
|
||||||||
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 - Commercial
|
2,743
|
|
|
526
|
|
|
(506
|
)
|
|
262
|
|
|
3,025
|
|
|||||
Residential 1-4 Family - Mortgage
|
2,864
|
|
|
28
|
|
|
(1,283
|
)
|
|
780
|
|
|
2,389
|
|
|||||
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 - Commercial
|
9,105
|
|
|
266
|
|
|
491,839
|
|
|
2,759
|
|
|
16,119
|
|
|
—
|
|
|
517,063
|
|
|
3,025
|
|
||||||||
Residential 1-4 Family - Mortgage
|
4,045
|
|
|
152
|
|
|
452,321
|
|
|
2,237
|
|
|
5,040
|
|
|
—
|
|
|
461,406
|
|
|
2,389
|
|
||||||||
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
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and Land Development
|
$
|
869,111
|
|
|
$
|
62,517
|
|
|
$
|
14,325
|
|
|
$
|
—
|
|
|
$
|
945,953
|
|
Commercial Real Estate - Owner Occupied
|
872,130
|
|
|
52,268
|
|
|
4,745
|
|
|
—
|
|
|
929,143
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
1,681,314
|
|
|
19,899
|
|
|
5,836
|
|
|
—
|
|
|
1,707,049
|
|
|||||
Multifamily Real Estate
|
349,625
|
|
|
7,374
|
|
|
—
|
|
|
—
|
|
|
356,999
|
|
|||||
Commercial & Industrial
|
595,923
|
|
|
13,533
|
|
|
2,159
|
|
|
—
|
|
|
611,615
|
|
|||||
Residential 1-4 Family - Commercial
|
587,169
|
|
|
12,117
|
|
|
3,650
|
|
|
45
|
|
|
602,981
|
|
|||||
Residential 1-4 Family - Mortgage
|
470,646
|
|
|
7,190
|
|
|
1,642
|
|
|
2,479
|
|
|
481,957
|
|
|||||
Auto
|
278,063
|
|
|
4,131
|
|
|
119
|
|
|
161
|
|
|
282,474
|
|
|||||
HELOC
|
531,358
|
|
|
3,867
|
|
|
857
|
|
|
489
|
|
|
536,571
|
|
|||||
Consumer and all other
|
645,187
|
|
|
1,758
|
|
|
781
|
|
|
63
|
|
|
647,789
|
|
|||||
Total
|
$
|
6,880,526
|
|
|
$
|
184,654
|
|
|
$
|
34,114
|
|
|
$
|
3,237
|
|
|
$
|
7,102,531
|
|
|
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 - Commercial
|
523,964
|
|
|
11,715
|
|
|
3,534
|
|
|
201
|
|
|
539,414
|
|
|||||
Residential 1-4 Family - Mortgage
|
463,009
|
|
|
6,803
|
|
|
1,279
|
|
|
2,842
|
|
|
473,933
|
|
|||||
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
|
$
|
1,462
|
|
|
$
|
1,260
|
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
2,838
|
|
Commercial Real Estate - Owner Occupied
|
4,958
|
|
|
7,486
|
|
|
2,346
|
|
|
—
|
|
|
14,790
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
3,920
|
|
|
1,394
|
|
|
1,296
|
|
|
—
|
|
|
6,610
|
|
|||||
Multifamily Real Estate
|
—
|
|
|
80
|
|
|
—
|
|
|
—
|
|
|
80
|
|
|||||
Commercial & Industrial
|
85
|
|
|
123
|
|
|
200
|
|
|
—
|
|
|
408
|
|
|||||
Residential 1-4 Family - Commercial
|
5,234
|
|
|
2,877
|
|
|
1,303
|
|
|
—
|
|
|
9,414
|
|
|||||
Residential 1-4 Family - Mortgage
|
2,764
|
|
|
329
|
|
|
71
|
|
|
569
|
|
|
3,733
|
|
|||||
HELOC
|
446
|
|
|
291
|
|
|
94
|
|
|
119
|
|
|
950
|
|
|||||
Consumer and all other
|
148
|
|
|
41
|
|
|
9
|
|
|
—
|
|
|
198
|
|
|||||
Total
|
$
|
19,017
|
|
|
$
|
13,881
|
|
|
$
|
5,435
|
|
|
$
|
688
|
|
|
$
|
39,021
|
|
|
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 - Commercial
|
5,959
|
|
|
3,943
|
|
|
2,320
|
|
|
—
|
|
|
12,222
|
|
|||||
Residential 1-4 Family - Mortgage
|
2,598
|
|
|
512
|
|
|
352
|
|
|
516
|
|
|
3,978
|
|
|||||
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
|
|
|
For the year ended
December 31,
|
||||||
|
2017
|
|
2016
|
||||
Balance at beginning of period
|
$
|
19,739
|
|
|
$
|
22,139
|
|
Accretion
|
(6,426
|
)
|
|
(5,611
|
)
|
||
Reclass of nonaccretable difference due to improvement in expected cash flows
|
2,237
|
|
|
5,089
|
|
||
Other, net
(1)
|
(987
|
)
|
|
(1,878
|
)
|
||
Balance at end of period
|
$
|
14,563
|
|
|
$
|
19,739
|
|
|
2017
|
|
2016
|
||||
Land
|
$
|
29,706
|
|
|
$
|
29,708
|
|
Land improvements and buildings
|
99,199
|
|
|
97,341
|
|
||
Leasehold improvements
|
10,247
|
|
|
8,760
|
|
||
Furniture and equipment
|
59,041
|
|
|
54,188
|
|
||
Construction in progress
|
8,509
|
|
|
8,827
|
|
||
Total
|
206,702
|
|
|
198,824
|
|
||
Less accumulated depreciation and amortization
|
86,721
|
|
|
76,797
|
|
||
Bank premises and equipment, net
|
$
|
119,981
|
|
|
$
|
122,027
|
|
2018
|
$
|
6,713
|
|
2019
|
5,865
|
|
|
2020
|
4,912
|
|
|
2021
|
4,329
|
|
|
2022
|
2,610
|
|
|
Thereafter
|
4,625
|
|
|
Total of future payments
|
$
|
29,054
|
|
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
|
Net Carrying
Value
|
||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|||
Amortizable core deposit intangibles
|
$
|
56,046
|
|
|
$
|
45,193
|
|
|
$
|
10,853
|
|
Other amortizable intangibles
|
4,715
|
|
|
765
|
|
|
3,950
|
|
|||
December 31, 2016
|
|
|
|
|
|
|
|
|
|||
Amortizable core deposit intangibles
|
$
|
68,367
|
|
|
$
|
51,987
|
|
|
$
|
16,380
|
|
Other amortizable intangibles
|
4,502
|
|
|
280
|
|
|
4,222
|
|
2018
|
$
|
4,689
|
|
2019
|
3,625
|
|
|
2020
|
2,536
|
|
|
2021
|
1,508
|
|
|
2022
|
698
|
|
|
Thereafter
|
1,747
|
|
|
Total estimated amortization expense
|
$
|
14,803
|
|
|
2017
|
|
2016
|
||||
Interest-bearing deposits:
|
|
|
|
|
|
||
NOW accounts
|
$
|
1,929,416
|
|
|
$
|
1,765,956
|
|
Money market accounts
|
1,685,174
|
|
|
1,435,591
|
|
||
Savings accounts
|
546,274
|
|
|
591,742
|
|
||
Time deposits of $250,000 and over
|
226,205
|
|
|
189,647
|
|
||
Other time deposits
|
1,102,441
|
|
|
1,002,928
|
|
||
Total interest-bearing deposits
|
$
|
5,489,510
|
|
|
$
|
4,985,864
|
|
2018
|
$
|
658,292
|
|
2019
|
340,351
|
|
|
2020
|
162,693
|
|
|
2021
|
126,807
|
|
|
2022
|
40,503
|
|
|
Total scheduled maturities of time deposits
|
$
|
1,328,646
|
|
|
2017
|
|
2016
|
||||
Securities sold under agreements to repurchase
|
$
|
49,152
|
|
|
$
|
59,281
|
|
Other short-term borrowings
(1)
|
745,000
|
|
|
517,500
|
|
||
Total short-term borrowings
|
$
|
794,152
|
|
|
$
|
576,781
|
|
|
|
|
|
||||
Maximum month-end outstanding balance
|
$
|
794,152
|
|
|
$
|
678,262
|
|
Average outstanding balance during the period
|
602,553
|
|
|
590,074
|
|
||
Average interest rate
|
1.00
|
%
|
|
0.49
|
%
|
||
Average interest rate at end of period
|
1.32
|
%
|
|
0.60
|
%
|
|
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
|
%
|
|
4.44
|
%
|
|
6/17/2034
|
Trust Preferred Capital Note - Statutory Trust II
|
36,000,000
|
|
|
1,114,000
|
|
|
1.40
|
%
|
|
3.09
|
%
|
|
6/15/2036
|
||
VFG Limited Liability Trust I Indenture
|
20,000,000
|
|
|
619,000
|
|
|
2.73
|
%
|
|
4.42
|
%
|
|
3/18/2034
|
||
FNB Statutory Trust II Indenture
|
12,000,000
|
|
|
372,000
|
|
|
3.10
|
%
|
|
4.79
|
%
|
|
6/26/2033
|
||
Total
|
$
|
90,500,000
|
|
|
$
|
2,801,000
|
|
|
|
|
|
|
|
|
|
Long-term Type
|
Spread to
3-Month LIBOR
|
|
Interest Rate
(1)
|
|
Maturity Date
|
|
Advance Amount
|
||||
Adjustable Rate Credit
|
0.44
|
%
|
|
2.13
|
%
|
|
8/23/2022
|
|
$
|
55,000
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
2.15
|
%
|
|
11/23/2022
|
|
65,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
2.15
|
%
|
|
11/23/2022
|
|
10,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
2.15
|
%
|
|
11/23/2022
|
|
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
|
|
|
Fixed Rate Hybrid
|
—
|
|
|
1.58
|
%
|
|
5/18/2020
|
|
20,000
|
|
|
|
|
|
|
|
|
|
|
|
$
|
200,000
|
|
Long-term Type
|
Spread to
3-Month LIBOR
|
|
Interest Rate
(1)
|
|
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
|
|
|
Trust
Preferred
Capital Notes
|
|
Subordinated
Notes
|
|
FHLB
Advances
|
|
Premium
(Discount)
|
|
Prepayment
Penalty
|
|
Total Long-term
Borrowings
|
||||||||||||
2018
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,000
|
|
|
$
|
(345
|
)
|
|
$
|
(1,970
|
)
|
|
$
|
37,685
|
|
2019
|
—
|
|
|
—
|
|
|
—
|
|
|
(488
|
)
|
|
(2,018
|
)
|
|
(2,506
|
)
|
||||||
2020
|
—
|
|
|
—
|
|
|
20,000
|
|
|
(503
|
)
|
|
(2,074
|
)
|
|
17,423
|
|
||||||
2021
|
—
|
|
|
—
|
|
|
—
|
|
|
(518
|
)
|
|
(2,119
|
)
|
|
(2,637
|
)
|
||||||
2022
|
—
|
|
|
—
|
|
|
140,000
|
|
|
(534
|
)
|
|
(1,707
|
)
|
|
137,759
|
|
||||||
Thereafter
|
93,301
|
|
|
150,000
|
|
|
—
|
|
|
(5,763
|
)
|
|
—
|
|
|
237,538
|
|
||||||
Total Long-term borrowings
|
$
|
93,301
|
|
|
$
|
150,000
|
|
|
$
|
200,000
|
|
|
$
|
(8,151
|
)
|
|
$
|
(9,888
|
)
|
|
$
|
425,262
|
|
|
2017
|
|
2016
|
||||
Commitments with off-balance sheet risk:
|
|
|
|
|
|
||
Commitments to extend credit
(1)
|
$
|
2,192,812
|
|
|
$
|
1,924,885
|
|
Standby letters of credit
|
127,435
|
|
|
84,212
|
|
||
Total commitments with off-balance sheet risk
|
$
|
2,320,247
|
|
|
$
|
2,009,097
|
|
|
Pledged Assets as of December 31, 2017
|
|
|||||||||||||||||
|
Cash
|
|
AFS Securities
(1)
|
|
HTM Securities
(1)
|
|
Loans
(2)
|
|
Total
|
||||||||||
Public deposits
|
$
|
—
|
|
|
$
|
242,472
|
|
|
$
|
197,482
|
|
|
$
|
—
|
|
|
$
|
439,954
|
|
Repurchase agreements
|
—
|
|
|
77,942
|
|
|
—
|
|
|
—
|
|
|
77,942
|
|
|||||
FHLB advances
|
—
|
|
|
878
|
|
|
—
|
|
|
2,390,509
|
|
|
2,391,387
|
|
|||||
Derivatives
|
23,870
|
|
|
3,656
|
|
|
—
|
|
|
—
|
|
|
27,526
|
|
|||||
Other purposes
|
—
|
|
|
15,043
|
|
|
—
|
|
|
—
|
|
|
15,043
|
|
|||||
Total pledged assets
|
$
|
23,870
|
|
|
$
|
339,991
|
|
|
$
|
197,482
|
|
|
$
|
2,390,509
|
|
|
$
|
2,951,852
|
|
|
Pledged Assets as of December 31, 2016
|
|
|||||||||||||||||
|
Cash
|
|
AFS Securities
(1)
|
|
HTM Securities
(1)
|
|
Loans
(2)
|
|
Total
|
||||||||||
Public deposits
|
$
|
—
|
|
|
$
|
210,546
|
|
|
$
|
197,889
|
|
|
$
|
—
|
|
|
$
|
408,435
|
|
Repurchase agreements
|
—
|
|
|
108,208
|
|
|
—
|
|
|
—
|
|
|
108,208
|
|
|||||
FHLB advances
|
—
|
|
|
1,475
|
|
|
—
|
|
|
1,959,929
|
|
|
1,961,404
|
|
|||||
Derivatives
|
33,595
|
|
|
4,376
|
|
|
—
|
|
|
—
|
|
|
37,971
|
|
|||||
Other purposes
|
—
|
|
|
17,499
|
|
|
—
|
|
|
—
|
|
|
17,499
|
|
|||||
Total pledged assets
|
$
|
33,595
|
|
|
$
|
342,104
|
|
|
$
|
197,889
|
|
|
$
|
1,959,929
|
|
|
$
|
2,533,517
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
|
Derivative
(2)
|
|
|
|
Derivative
(2)
|
||||||||||||||||
|
Notional or
Contractual
Amount (1) |
|
Assets
|
|
Liabilities
|
|
Notional or
Contractual
Amount (1) |
|
Assets
|
|
Liabilities
|
||||||||||||
Derivatives designated as accounting hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash flow hedges
|
$
|
152,500
|
|
|
$
|
49
|
|
|
$
|
8,005
|
|
|
$
|
188,500
|
|
|
$
|
211
|
|
|
$
|
9,619
|
|
Fair value hedges
|
80,973
|
|
|
1,598
|
|
|
76
|
|
|
65,920
|
|
|
1,437
|
|
|
296
|
|
||||||
Derivatives not designated as accounting hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loan Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pay fixed-receive floating interest rate swaps
|
529,736
|
|
|
—
|
|
|
1,350
|
|
|
373,355
|
|
|
—
|
|
|
1,005
|
|
||||||
Pay floating-receive fixed interest rate swaps
|
529,736
|
|
|
1,350
|
|
|
—
|
|
|
373,355
|
|
|
1,005
|
|
|
—
|
|
||||||
Other contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments
|
34,314
|
|
|
559
|
|
|
—
|
|
|
48,743
|
|
|
610
|
|
|
—
|
|
||||||
Best efforts forward delivery commitments
|
73,777
|
|
|
12
|
|
|
—
|
|
|
85,400
|
|
|
1,469
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2016
|
$
|
(542
|
)
|
|
$
|
3,377
|
|
|
$
|
(5,179
|
)
|
|
$
|
(1,465
|
)
|
|
$
|
(3,809
|
)
|
Other comprehensive income (loss)
|
2,936
|
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
2,892
|
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
(520
|
)
|
|
(672
|
)
|
|
862
|
|
|
363
|
|
|
33
|
|
|||||
Net current period other comprehensive income (loss)
|
2,416
|
|
|
(672
|
)
|
|
818
|
|
|
363
|
|
|
2,925
|
|
|||||
Balance - December 31, 2017
|
$
|
1,874
|
|
|
$
|
2,705
|
|
|
$
|
(4,361
|
)
|
|
$
|
(1,102
|
)
|
|
$
|
(884
|
)
|
|
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
|
|
|
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, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
$
|
737,204
|
|
|
9.04
|
%
|
|
$
|
367,073
|
|
|
4.50
|
%
|
|
NA
|
|
|
NA
|
|
Union Bank & Trust
|
947,432
|
|
|
11.66
|
%
|
|
365,616
|
|
|
4.50
|
%
|
|
528,111
|
|
|
6.50
|
%
|
||
Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
826,979
|
|
|
10.14
|
%
|
|
489,428
|
|
|
6.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
947,432
|
|
|
11.66
|
%
|
|
487,488
|
|
|
6.00
|
%
|
|
649,983
|
|
|
8.00
|
%
|
||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
1,013,788
|
|
|
12.43
|
%
|
|
652,573
|
|
|
8.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
986,040
|
|
|
12.14
|
%
|
|
649,983
|
|
|
8.00
|
%
|
|
812,478
|
|
|
10.00
|
%
|
||
Tier 1 capital to average adjusted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
826,979
|
|
|
9.42
|
%
|
|
351,230
|
|
|
4.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
947,432
|
|
|
10.82
|
%
|
|
350,126
|
|
|
4.00
|
%
|
|
437,657
|
|
|
5.00
|
%
|
||
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
|
%
|
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, 2017 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
|
$
|
—
|
|
|
$
|
301,824
|
|
|
$
|
—
|
|
|
$
|
301,824
|
|
Corporate bonds
|
—
|
|
|
113,880
|
|
|
—
|
|
|
113,880
|
|
||||
Mortgage-backed securities
|
—
|
|
|
548,858
|
|
|
—
|
|
|
548,858
|
|
||||
Other securities
|
—
|
|
|
9,660
|
|
|
—
|
|
|
9,660
|
|
||||
Loans held for sale
|
—
|
|
|
40,662
|
|
|
—
|
|
|
40,662
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
—
|
|
|
1,350
|
|
|
—
|
|
|
1,350
|
|
||||
Cash flow hedges
|
—
|
|
|
49
|
|
|
—
|
|
|
49
|
|
||||
Fair value hedges
|
—
|
|
|
1,598
|
|
|
—
|
|
|
1,598
|
|
||||
Interest rate lock commitments
|
—
|
|
|
—
|
|
|
559
|
|
|
559
|
|
||||
Best efforts forward delivery commitments
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
$
|
—
|
|
|
$
|
1,350
|
|
|
$
|
—
|
|
|
$
|
1,350
|
|
Cash flow hedges
|
—
|
|
|
8,005
|
|
|
—
|
|
|
8,005
|
|
||||
Fair value hedges
|
—
|
|
|
76
|
|
|
—
|
|
|
76
|
|
|
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 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 hedges
|
—
|
|
|
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, 2017 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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,229
|
|
|
$
|
3,229
|
|
OREO
|
—
|
|
|
—
|
|
|
6,636
|
|
|
6,636
|
|
|
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
|
|
OREO
|
—
|
|
|
—
|
|
|
10,084
|
|
|
10,084
|
|
|
|
|
Fair Value Measurements at December 31, 2017 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
|
$
|
199,373
|
|
|
$
|
199,373
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
199,373
|
|
Securities available for sale
|
974,222
|
|
|
—
|
|
|
974,222
|
|
|
—
|
|
|
974,222
|
|
|||||
Held to maturity securities
|
199,639
|
|
|
—
|
|
|
203,483
|
|
|
—
|
|
|
203,483
|
|
|||||
Restricted stock
|
75,283
|
|
|
—
|
|
|
75,283
|
|
|
—
|
|
|
75,283
|
|
|||||
Loans held for sale
|
40,662
|
|
|
—
|
|
|
40,662
|
|
|
—
|
|
|
40,662
|
|
|||||
Net loans
|
7,103,344
|
|
|
—
|
|
|
—
|
|
|
7,117,593
|
|
|
7,117,593
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
1,350
|
|
|
—
|
|
|
1,350
|
|
|
—
|
|
|
1,350
|
|
|||||
Cash flow hedges
|
49
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
49
|
|
|||||
Fair value hedges
|
1,598
|
|
|
—
|
|
|
1,598
|
|
|
—
|
|
|
1,598
|
|
|||||
Interest rate lock commitments
|
559
|
|
|
—
|
|
|
—
|
|
|
559
|
|
|
559
|
|
|||||
Best efforts forward delivery commitments
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|||||
Accrued interest receivable
|
26,427
|
|
|
—
|
|
|
26,427
|
|
|
—
|
|
|
26,427
|
|
|||||
BOLI
|
182,854
|
|
|
—
|
|
|
182,854
|
|
|
—
|
|
|
182,854
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
$
|
6,991,718
|
|
|
$
|
—
|
|
|
$
|
6,977,845
|
|
|
$
|
—
|
|
|
$
|
6,977,845
|
|
Borrowings
|
1,219,414
|
|
|
—
|
|
|
1,198,645
|
|
|
—
|
|
|
1,198,645
|
|
|||||
Accrued interest payable
|
2,538
|
|
|
—
|
|
|
2,538
|
|
|
—
|
|
|
2,538
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
1,350
|
|
|
—
|
|
|
1,350
|
|
|
—
|
|
|
1,350
|
|
|||||
Cash flow hedges
|
8,005
|
|
|
—
|
|
|
8,005
|
|
|
—
|
|
|
8,005
|
|
|||||
Fair value hedges
|
76
|
|
|
—
|
|
|
76
|
|
|
—
|
|
|
76
|
|
|
|
|
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
|
|
|||||
BOLI
|
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
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
401(k) Plan
|
$
|
3,505
|
|
|
$
|
3,263
|
|
|
$
|
3,120
|
|
ESOP
|
1,255
|
|
|
1,425
|
|
|
1,146
|
|
|||
Cash
|
1,461
|
|
|
1,496
|
|
|
1,146
|
|
|||
Total
|
$
|
6,221
|
|
|
$
|
6,184
|
|
|
$
|
5,412
|
|
|
Year Ended December 31,
|
||||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Stock-based compensation expense
|
$
|
4,648
|
|
|
$
|
3,270
|
|
|
$
|
1,388
|
|
Reduction of income tax expense
|
1,467
|
|
|
1,104
|
|
|
405
|
|
|||
Per share compensation cost
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
$
|
0.02
|
|
|
Stock Options
(shares)
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Aggregate
Intrinsic Value
|
|||||
Outstanding as of December 31, 2016
|
188,260
|
|
|
$
|
14.94
|
|
|
|
|
|
|
|
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Exercised
|
(63,476
|
)
|
|
16.35
|
|
|
|
|
|
|
||
Forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Expired
|
(3,041
|
)
|
|
26.10
|
|
|
|
|
|
|||
Outstanding as of December 31, 2017
|
121,743
|
|
|
13.93
|
|
|
1.65
|
|
$
|
2,708,076
|
|
|
Exercisable as of December 31, 2017
|
121,743
|
|
|
13.93
|
|
|
1.65
|
|
2,708,076
|
|
|
Number of Shares of
RSAs
|
|
Weighted Average
Grant-Date Fair
Value
|
|||
Balance, December 31, 2016
|
371,438
|
|
|
$
|
23.70
|
|
Granted
|
125,738
|
|
|
35.89
|
|
|
Net settle for taxes
|
(47,187
|
)
|
|
37.80
|
|
|
Vested
|
(110,057
|
)
|
|
24.93
|
|
|
Forfeited
|
(13,196
|
)
|
|
26.55
|
|
|
Balance, December 31, 2017
|
326,736
|
|
|
27.68
|
|
|
Number of Shares of
PSUs
|
|
Weighted Average Grant-
Date Fair Value
|
|||
Balance, December 31, 2016
|
145,757
|
|
|
$
|
21.05
|
|
Granted
|
37,249
|
|
|
39.31
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
(48,656
|
)
|
|
24.19
|
|
|
Balance, December 31, 2017
|
134,350
|
|
|
24.98
|
|
|
2017
|
2016
|
2015
|
|||
Dividend yield
(1)
|
2.15
|
%
|
3.36
|
%
|
3.12
|
%
|
Expected life in years
(2)
|
2.85
|
|
2.85
|
|
2.70
|
|
Expected volatility
(3)
|
23.35
|
%
|
22.16
|
%
|
21.50
|
%
|
Risk-free interest rate
(4)
|
1.40
|
%
|
0.83
|
%
|
0.75
|
%
|
|
Restricted Stock
|
|
Performance
Stock
|
|
Total
|
||||||
2018
|
$
|
3,539
|
|
|
$
|
907
|
|
|
$
|
4,446
|
|
2019
|
2,725
|
|
|
624
|
|
|
3,349
|
|
|||
2020
|
1,156
|
|
|
41
|
|
|
1,197
|
|
|||
2021
|
97
|
|
|
—
|
|
|
97
|
|
|||
Total
|
$
|
7,517
|
|
|
$
|
1,572
|
|
|
$
|
9,089
|
|
|
2017
|
|
2016
|
||||
Deferred tax assets:
|
|
|
|
|
|
||
Allowance for loan losses
|
$
|
8,024
|
|
|
$
|
13,017
|
|
Benefit plans
|
2,517
|
|
|
3,898
|
|
||
Acquisition accounting
|
4,911
|
|
|
11,297
|
|
||
OREO
|
1,673
|
|
|
3,156
|
|
||
Prime loan swap
|
1,640
|
|
|
3,147
|
|
||
Net operating losses, net of valuation allowance
|
3,624
|
|
|
—
|
|
||
Other
|
2,393
|
|
|
4,905
|
|
||
Total deferred tax assets
|
$
|
24,782
|
|
|
$
|
39,420
|
|
Deferred tax liabilities:
|
|
|
|
|
|
||
Acquisition accounting
|
$
|
5,923
|
|
|
$
|
11,645
|
|
Premises and equipment
|
3,626
|
|
|
4,843
|
|
||
Securities available for sale
|
1,479
|
|
|
1,818
|
|
||
Other
|
529
|
|
|
806
|
|
||
Total deferred tax liabilities
|
11,557
|
|
|
19,112
|
|
||
Net deferred tax asset
|
$
|
13,225
|
|
|
$
|
20,308
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Current tax expense
|
$
|
27,763
|
|
|
$
|
26,535
|
|
|
$
|
24,521
|
|
Deferred tax expense (benefit)
(1)
|
5,624
|
|
|
243
|
|
|
(1,212
|
)
|
|||
Income tax expense
|
$
|
33,387
|
|
|
$
|
26,778
|
|
|
$
|
23,309
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Computed "expected" tax expense
|
$
|
37,208
|
|
|
$
|
36,489
|
|
|
$
|
31,636
|
|
(Decrease) in taxes resulting from:
|
|
|
|
|
|
|
|
|
|||
Tax-exempt interest income, net
|
(6,112
|
)
|
|
(6,087
|
)
|
|
(5,865
|
)
|
|||
Valuation allowance adjustment
|
(2,982
|
)
|
|
—
|
|
|
—
|
|
|||
Impact of the Tax Act
|
6,250
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
(977
|
)
|
|
(3,624
|
)
|
|
(2,462
|
)
|
|||
Income tax expense
|
$
|
33,387
|
|
|
$
|
26,778
|
|
|
$
|
23,309
|
|
|
Net Income
(Numerator)
|
|
Weighted Average
Shares
(Denominator)
|
|
Per Share
Amount
|
|||||
For the Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
||
Basic EPS
|
$
|
72,923
|
|
|
43,699
|
|
|
$
|
1.67
|
|
Effect of dilutive stock awards
|
—
|
|
|
81
|
|
|
—
|
|
||
Diluted EPS
|
$
|
72,923
|
|
|
43,780
|
|
|
$
|
1.67
|
|
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
|
|
|
Community Bank
|
|
Mortgage
|
|
Eliminations
|
|
Consolidated
|
||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income
|
$
|
278,470
|
|
|
$
|
1,687
|
|
|
$
|
—
|
|
|
$
|
280,157
|
|
Provision for credit losses
|
10,802
|
|
|
(46
|
)
|
|
—
|
|
|
10,756
|
|
||||
Net interest income after provision for credit losses
|
267,668
|
|
|
1,733
|
|
|
—
|
|
|
269,401
|
|
||||
Noninterest income
|
62,120
|
|
|
10,073
|
|
|
(519
|
)
|
|
71,674
|
|
||||
Noninterest expenses
|
225,366
|
|
|
9,918
|
|
|
(519
|
)
|
|
234,765
|
|
||||
Income before income taxes
|
104,422
|
|
|
1,888
|
|
|
—
|
|
|
106,310
|
|
||||
Income tax expense
|
32,600
|
|
|
787
|
|
|
—
|
|
|
33,387
|
|
||||
Net income
|
$
|
71,822
|
|
|
$
|
1,101
|
|
|
$
|
—
|
|
|
$
|
72,923
|
|
Total assets
|
$
|
9,305,660
|
|
|
$
|
111,845
|
|
|
$
|
(102,326
|
)
|
|
$
|
9,315,179
|
|
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
|
|
|
2017
|
|
2016
|
||||
ASSETS
|
|
|
|
|
|
||
Cash
|
$
|
2,611
|
|
|
$
|
10,681
|
|
Premises and equipment, net
|
11,061
|
|
|
11,470
|
|
||
Other assets
|
15,036
|
|
|
10,864
|
|
||
Investment in subsidiaries
|
1,263,545
|
|
|
1,213,484
|
|
||
Total assets
|
$
|
1,292,253
|
|
|
$
|
1,246,499
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Long-term borrowings
|
148,201
|
|
|
148,000
|
|
||
Trust preferred capital notes
|
86,819
|
|
|
86,559
|
|
||
Other liabilities
|
10,904
|
|
|
10,908
|
|
||
Total liabilities
|
245,924
|
|
|
245,467
|
|
||
Total stockholders' equity
|
1,046,329
|
|
|
1,001,032
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,292,253
|
|
|
$
|
1,246,499
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Income:
|
|
|
|
|
|
|
|
|
|||
Interest and dividend income
|
$
|
3
|
|
|
$
|
23
|
|
|
$
|
8
|
|
Dividends received from subsidiaries
|
33,350
|
|
|
51,439
|
|
|
51,496
|
|
|||
Other operating income
|
1,308
|
|
|
1,314
|
|
|
1,228
|
|
|||
Total income
|
34,661
|
|
|
52,776
|
|
|
52,732
|
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|||
Interest expense
|
11,423
|
|
|
5,656
|
|
|
4,697
|
|
|||
Other operating expenses
|
7,130
|
|
|
5,214
|
|
|
4,807
|
|
|||
Total expenses
|
18,553
|
|
|
10,870
|
|
|
9,504
|
|
|||
Income before income taxes and equity in undistributed net income from subsidiaries
|
16,108
|
|
|
41,906
|
|
|
43,228
|
|
|||
Income tax benefit
|
(9,169
|
)
|
|
(3,586
|
)
|
|
(3,051
|
)
|
|||
Equity in undistributed net income from subsidiaries
|
47,646
|
|
|
31,984
|
|
|
20,800
|
|
|||
Net income
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
Comprehensive income
|
$
|
75,848
|
|
|
$
|
67,415
|
|
|
$
|
61,076
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Equity in undistributed net income of subsidiaries
|
(47,646
|
)
|
|
(31,984
|
)
|
|
(20,800
|
)
|
|||
Depreciation of premises and equipment
|
439
|
|
|
438
|
|
|
435
|
|
|||
Acquisition accounting amortization, net
|
260
|
|
|
247
|
|
|
235
|
|
|||
Issuance of common stock grants for services
|
724
|
|
|
533
|
|
|
564
|
|
|||
Net (increase) decrease in other assets
|
(4,167
|
)
|
|
(2,402
|
)
|
|
902
|
|
|||
Net increase in other liabilities
|
5,283
|
|
|
5,533
|
|
|
6,124
|
|
|||
Net cash and cash equivalents provided by operating activities
|
27,816
|
|
|
49,841
|
|
|
54,539
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|||
Net increase in premises and equipment
|
(35
|
)
|
|
(33
|
)
|
|
(35
|
)
|
|||
Proceeds from (payments for) equity method investment
|
72
|
|
|
—
|
|
|
(355
|
)
|
|||
Payments for investments in and advances to subsidiaries
|
—
|
|
|
(125,000
|
)
|
|
—
|
|
|||
Repayment of investments in and advances to subsidiaries
|
—
|
|
|
540
|
|
|
—
|
|
|||
Net cash and cash equivalents provided by (used in) investing activities
|
37
|
|
|
(124,493
|
)
|
|
(390
|
)
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|||
Repayments of short-term borrowings
|
—
|
|
|
—
|
|
|
(8,000
|
)
|
|||
Repayments of long-term borrowings
|
—
|
|
|
(7,500
|
)
|
|
(625
|
)
|
|||
Proceeds from issuance of long-term borrowings
|
—
|
|
|
148,000
|
|
|
—
|
|
|||
Cash dividends paid
|
(35,393
|
)
|
|
(33,672
|
)
|
|
(29,082
|
)
|
|||
Issuance (repurchase) of common stock
|
1,037
|
|
|
(31,295
|
)
|
|
(15,332
|
)
|
|||
Vesting of restricted stock, including tax effects
|
(1,567
|
)
|
|
(586
|
)
|
|
(416
|
)
|
|||
Net cash and cash equivalents provided by (used in) financing activities
|
(35,923
|
)
|
|
74,947
|
|
|
(53,455
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
(8,070
|
)
|
|
295
|
|
|
694
|
|
|||
Cash and cash equivalents at beginning of the period
|
10,681
|
|
|
10,386
|
|
|
9,692
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
2,611
|
|
|
$
|
10,681
|
|
|
$
|
10,386
|
|
Name (Age)
|
|
Title and Principal Occupation
During at Least the Past Five Years
|
|
|
|
John C. Asbury (52)
|
|
Chief Executive Officer of the Company since January 2017 and President since October 2016;
Chief Executive Officer of Union Bank & Trust since October 2016 and President from October 2016 until September 2017;
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; joined the Company's Board of Directors in 2016.
|
|
|
|
Robert M. Gorman (59)
|
|
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.
|
|
|
|
John C. Stallings, Jr. (51)
|
|
President of Union Bank & Trust since joining the Company in September 2017; President and CEO of the Virginia Division of SunTrust (“STI”) from 2013 until September 2017; President and CEO of the Mid-Atlantic Division of STI from 2010 to 2013, President and CEO of the Central Carolina Region of STI from 2007 to 2010, EVP and Carolinas Group Retail Line of Business Manager of STI from 2004 to 2007, Head of Retail Banking for National Commerce Financial (“NCF”) from 2002 to 2004, and a variety of positions in regional leadership and commercial banking at NCF from 1993 to 2004, and 1988 to 1991; received his B.A. degree from Vanderbilt, and M.B.A. from Washington University in St. Louis; serves as a member of the Board of Directors of UMG.
|
|
|
|
David G. Bilko (59)
|
|
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 ODCM.
|
|
|
|
M. Dean Brown (53)
|
|
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
|
|
|
|
Loreen A. Lagatta (49)
|
|
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.
|
David V. Ring (54)
|
|
Executive Vice President and Commercial Banking Group Executive since joining the Company in September 2017; Executive Vice President and Executive Managing Director at Huntington National Bank from December 2014 to May 2017; Managing Director and Head of Enterprise Banking at First Niagara Financial Group from April 2011 to December 2014; various positions at Wells Fargo and predecessor banks from January 1996 to April 2011, including Wholesale Banking Executive for Virginia to Massachusetts at Wachovia and Greater New York & Connecticut Region Manager; received his B.S degree in Finance from Providence College.
|
|
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
|
121,743
|
|
|
$
|
13.93
|
|
|
1,560,728
|
|
|
|
|
|
|
|
||||
Total
|
121,743
|
|
|
$
|
13.93
|
|
|
1,560,728
|
|
Exhibit No.
|
|
|
Description
|
2.01
|
|
|
|
|
|
|
|
3.01
|
|
|
|
|
|
|
|
3.02
|
|
|
|
|
|
|
|
4.01
|
|
|
|
|
|
|
|
4.02
|
|
|
|
|
|
|
|
4.03
|
|
|
|
|
|
Certain instruments relating to long-term debt 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.
|
|
|
|
|
10.02*
|
|
|
|
|
|
|
|
10.07*
|
|
|
|
|
|
|
|
10.08*
|
|
|
|
|
|
|
|
10.10*
|
|
|
|
|
|
|
|
10.11*
|
|
|
|
|
|
|
|
10.13*
|
|
|
|
|
|
|
|
10.14*
|
|
|
|
|
|
|
|
10.15*
|
|
|
|
|
|
|
|
10.16*
|
|
|
|
|
|
|
|
10.18*
|
|
|
|
|
|
|
|
10.19*
|
|
|
|
|
|
|
|
10.22*
|
|
|
|
|
|
|
|
10.23*
|
|
|
|
|
|
|
|
10.24*
|
|
|
|
|
|
|
|
10.25*
|
|
|
|
|
|
|
|
10.26*
|
|
|
|
|
|
|
|
10.27*
|
|
|
|
|
|
|
|
10.29*
|
|
|
|
|
|
|
|
10.30*
|
|
|
|
|
|
|
|
10.31*
|
|
|
|
|
|
|
10.32*
|
|
|
|
|
|
|
|
10.33*
|
|
|
|
|
|
|
|
10.34
|
|
|
|
|
|
|
|
10.35*
|
|
|
|
|
|
|
|
10.36*
|
|
|
|
|
|
|
|
11.01
|
|
|
|
|
|
|
|
12.01
|
|
|
|
|
|
|
|
21.01
|
|
|
|
|
|
|
|
23.01
|
|
|
|
|
|
|
|
31.01
|
|
|
|
|
|
|
|
31.02
|
|
|
|
|
|
|
|
32.01
|
|
|
|
|
|
|
|
101.00
|
|
|
Interactive data filed pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2017 and 2016, (ii) the Consolidated Statements of Income for the years ended December 31, 2017, 2016, and 2015, (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 2016, and 2015, (iv) the Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2017, 2016, and 2015, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016, and 2015 and (vi) the Notes to the Consolidated Financial Statements for the years ended December 31, 2017, 2016, and 2015.
|
By:
|
/s/ John C. Asbury
|
|
Date: February 27, 2018
|
|
John C. Asbury
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
|
|
/s/ L. Bradford Armstrong
|
|
Director
|
L. Bradford Armstrong
|
|
|
|
|
|
/s/ John C. Asbury
|
|
Director, President, and Chief Executive Officer (principal executive officer)
|
John C. Asbury
|
|
|
|
|
|
/s/ G. William Beale
|
|
Director
|
G. William Beale
|
|
|
|
|
|
/s/ Glen C. Combs
|
|
Director
|
Glen C. Combs
|
|
|
|
|
|
/s/ Patrick E. Corbin
|
|
Director
|
Patrick E. Corbin
|
|
|
|
|
|
/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
|
|
|
|
|
|
/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/ Thomas G. Snead, Jr.
|
|
Director
|
Thomas G. Snead, 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
|
|
|
Participant
|
Value of Shares Owned
|
Chief Executive Officer
|
3x Base Salary
|
President and Chief Financial Officer
|
2x Base Salary
|
Other Executive Officers
|
1x Base Salary
|
1.
|
Award of Performance Share Units
. Subject to the terms and conditions of the Plan, the Committee or the Board has awarded to the Participant as of %%OPTION_DATE,’Month DD, YYYY’%-% (“Award Date”) a certain number of Performance Share Units (the “Performance Share Units”) which the Participant will have an opportunity to earn over the Performance Period (as defined below) if certain performance goals are met in accordance with Section 4, and certain vesting requirements are met in accordance with Section 5, subject to the terms, conditions and restrictions set forth in this Agreement. Each Performance Share Unit represents the right to receive one share of Common Stock upon satisfaction of the performance, vesting and other conditions set forth in this Agreement.
|
2.
|
Target Number of Performance Share Units
. The target number of Performance Share Units awarded is %%TOTAL_SHARES_GRANTED,’999,999,999’%-%. The Participant can earn up to 200% of the target number of Performance Share Units or as little as no Performance Share Units, depending upon actual performance during the Performance Period compared to the performance goals established by the Committee.
|
3.
|
Performance Period
. The period during which the performance goals apply (the “Performance Period”) begins January 1, 2018 and ends December 31, 2020.
|
4.
|
Performance Goals
.
|
(a)
|
The performance goals and the level of performance for the performance goals that is required to earn the Performance Share Units were established by the Committee. The number of Performance Share Units earned will be determined based on the Company’s achievement of Total Shareholder Return (“TSR”) as compared to the TSR of each of the
|
(b)
|
The following terms have the following meanings for purposes hereof:
|
(i)
|
“Total Shareholder Return” for a company (including the Company) shall be computed as the average closing stock price of the company’s common stock for the last fifteen (15) trading days of the Performance Period minus the average closing stock price of the company’s common stock for the first fifteen (15) trading days of the Performance Period plus the amount of dividends paid by the company per share of common stock during the Performance Period, divided by the average closing stock price of the company’s common stock for the first fifteen (15) trading days of the Performance Period.
|
(ii)
|
“Peer Companies” shall mean all of the companies comprising the KBW Regional Banking Index as of the last day of the Performance Period.
|
5.
|
Vesting and Payment
.
|
(a)
|
Vesting Determination
. Subject to accelerated vesting or forfeiture as hereinafter provided, the Performance Share Units that are earned in accordance with Section 4 shall be vested and non-forfeitable (“Vested” or “Vesting”) as of the date the Committee certifies the performance results which certification date shall occur within the sixty (60) day period following the end of the Performance Period (the certification date is defined as the “Payment Date”), but only if the Participant has remained continuously employed with the Company or any of its Subsidiaries through the Payment Date, except as provided in Section 5(b) below, and any unearned or unvested Performance Share Units shall be automatically forfeited to the Company and cancelled. The Performance Shares (as defined below) for the Performance Share Units that become Vested under this
|
(b)
|
Vesting Acceleration
.
|
(i)
|
Death or Disability
: If the Participant does not remain continuously employed through the Payment Date due to the Participant’s death or permanent and total disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code) (“Disability”), then a Pro-Rata Portion (rounded to the nearest whole Performance Share Unit) of the Performance Share Units earned based on the Committee’s determination of the level of achievement for the performance goals for the entire Performance Period in accordance with Section 4 shall become Vested on the later of (A) the last day of the Performance Period or (B) the earlier of the date of the Participant’s death or Disability and any unearned or unvested Performance Share Units shall be automatically forfeited to the Company and cancelled. The Performance Shares for the Performance Share Units that become Vested under this Section 5(b)(i) shall be paid to the Participant’s designated beneficiary (or, if none, to his estate) or to the Participant, whichever is applicable, on the Payment Date as defined in Section 5(a).
|
(ii)
|
Normal Retirement
:
|
(iii)
|
Other Retirements
: If the Participant does not remain continuously employed through the Payment Date due to the Participant’s retirement that does not meet the standard for Normal Retirement, then, provided no Cause exists for the Company to terminate his employment at such time, the Committee may, in its sole discretion, waive the automatic forfeiture of any or all unvested Performance Share Units otherwise provided in Section 7 and provide for such Vesting and other restrictions as its deems appropriate; provided, however, that any additional vesting provisions shall not extend Vesting beyond the original Payment Date and such Performance Share Units shall remain subject to the performance criteria set forth in Section 4 for the entire Performance Period and shall be subject to pro-ration. The Pro-Rata Portion (rounded to the nearest whole Performance Share Unit) of the Performance Share Units earned based on the Committee’s determination of the level of achievement for the performance goals for the entire Performance Period in accordance with Section 4 shall become Vested as provided by the Committee and any unearned or unvested Performance Share Units shall be automatically forfeited to the Company and cancelled. The Performance Shares for the Performance Share Units that become Vested under this Section 5(b)(iii) shall be paid to the Participant on the Payment Date as defined in Section 5(a).
|
(iv)
|
Involuntary Termination under Executive Severance Plan:
If the Participant’s employment with the Company and its subsidiaries is involuntarily terminated prior to the Payment Date and the Participant is eligible to receive severance pay under the Union Bankshares Corporation Executive Severance Plan and the Participant has signed, submitted and not revoked any release agreement required thereunder, then a Pro-Rata Portion (rounded to the nearest whole Performance Share Unit) of the Performance Share Units earned based on the Committee’s determination of the level of achievement for the performance goals for the entire Performance Period in accordance with Section 4 shall become Vested on the last day of the Performance Period and any unearned or unvested Performance Share Units shall be automatically forfeited to the Company and cancelled. The Performance Shares for the Performance Share Units that become Vested under this Section 5(b)(iv) shall be paid to the Participant on the Payment Date as defined in Section 5(a).
|
(v)
|
Change in Control
: Notwithstanding any other provision of Section 5, in the event of a Change in Control of the Company, Vesting and payment of the Performance Share Units that have not previously become Vested or have not previously been forfeited under Section 5(a), 5(b)(i)-(iv) or Section 7, shall be determined under this Section 5(b)(v). If a Change in Control occurs on or before the end of the Performance Period, and provided the Participant has remained in employment with the Company or any of its subsidiaries until the Change in Control, the target number of Performance Share Units shall be deemed earned and shall become Vested and shall be paid upon the Change in Control. In the event a Change in Control occurs following the end of the Performance Period but before the Payment Date defined in Section 5(a), and
|
(c)
|
Payment; Delivery of Shares of Common Stock
. Shares of Common Stock corresponding to the number of Performance Share Units that have been earned and become Vested (“Performance Shares”) shall be paid to the Participant, or, if deceased, to the Participant’s designated beneficiary (or, if none, to his estate), in settlement of the Performance Share Units, at the times provided in Sections 5(a) and 5(b). Payment only may be delayed by the Company to the extent permitted by Code Section 409A although no interest shall be payable in the event there is a delay for any reason. Such payment shall be accomplished either by delivering a share certificate or by providing evidence of electronic delivery, and the Performance Shares shall be registered in the name of the Participant or, if deceased, the Participant’s designated beneficiary (or, if none, his estate). Such Performance Shares shall be fully paid and nonassessable when issued.
|
6.
|
No Dividend Equivalents
. The Participant shall have no right to dividend equivalents or dividends on the Performance Share Units.
|
7.
|
Termination of Employment
. If the Participant’s employment with the Company and its subsidiaries ceases prior to the Payment Date and Section 5(b) does not or has not applied, then all Performance Share Units shall be automatically forfeited to the Company and cancelled on the date the Participant’s employment terminates and no Performance Shares shall be issued to the Participant.
|
8.
|
Employment
. Nothing under the Plan or in this Agreement shall confer upon the Participant any right to continue in the employ of the Company or its subsidiaries or in any way affect the Company’s right to terminate Participant’s employment without prior notice at any time for any or no reason (subject to the terms of any employment agreement between the Participant and the Company or a subsidiary).
|
9.
|
Withholding Taxes
. The Company shall have the right to retain and withhold the amount of taxes (at the statutorily required rates) required by any government to be withheld or otherwise deducted and paid with respect to the Performance Share Units and any such withholding will be accomplished in compliance with Code Section 409A to the extent applicable. At its discretion, the Committee may require the Participant to reimburse the Company for any such taxes required to be withheld by the Company and to withhold any distribution in whole or in part until the Company is so reimbursed. The Participant or any successor in interest is authorized to deliver shares of Common Stock having a Fair Market Value equal to the amount of tax to be withheld on the date that the amount of tax to be withheld is to be determined and cancel any such shares so delivered in order to satisfy the Company’s withholding obligations. The Participant or any successor in interest is also authorized to elect to have the Company retain and withhold from any Performance Shares deliverable in payment of the Performance Share Units the number of Performance Shares having a Fair Market Value equal to the amount of tax to be withheld on the date that the amount of tax to be withheld is to be determined and cancel any such shares so withheld in order to satisfy the Company’s withholding obligations. In the event the Participant does not deliver or elect to have the Company retain and withhold shares of Common Stock as described in this Section 9, the Company shall have the right to withhold from any other cash amounts due to or to become due from the Company or a subsidiary to the Participant an amount equal to such taxes required to be withheld by the Company to reimburse the Company for any such taxes.
|
10.
|
Administration
. The Committee shall have full authority and discretion (subject only to the express provisions of the Plan) to decide all matters relating to the administration and interpretation of the Plan and this Agreement. All such Committee determinations shall be final, conclusive and binding upon the Company and the Participant.
|
11.
|
Notices
. Any notice to the Company required under or relating to this Agreement shall be in writing and addressed to:
|
12.
|
Governing Law
. This Agreement shall be construed and administered in accordance with and governed by the laws of the Commonwealth of Virginia.
|
13.
|
Successors
. This Agreement shall be binding upon and inure to the benefit of the successors, assigns, heirs and legal representatives of the respective parties.
|
14.
|
Entire Agreement
. This Agreement contains the entire understanding of the parties and shall not be modified or amended except in writing signed by the parties or as otherwise provided in the
|
15.
|
Severability
. The various provisions of this Agreement are severable in their entirety. Any determination of invalidity or unenforceability of any one provision shall have no effect on the continuing force and effect of the remaining provisions.
|
16.
|
Construction and Capitalized Terms
. This Agreement shall be administered, interpreted and construed in accordance with the applicable provisions of the Plan and in accordance with the Performance Share Units being a Performance-Based Compensation Award. Capitalized terms in this Agreement have the meaning assigned to them in the Plan, unless this Agreement provides, or the context requires, otherwise.
|
17.
|
Rights as Shareholder
. The holder of Performance Share Units shall not be, nor have any of the rights or privileges of, a shareholder of the Company in respect of any Performance Shares issuable upon the payment of a Vested Performance Share Unit unless and until a certificate or certificates representing such shares of Common Stock shall have been issued by the Company to such holder or a book entry representing such shares of Common Stock has been made by the registrar of the Company.
|
18.
|
Clawback
. As a condition of receiving the Performance Share Units, the Participant acknowledges and agrees that the Participant’s rights, payments and benefits with respect to the Performance Share Units and any Performance Shares shall be subject to the terms of the Company’s Compensation Clawback Policy or similar policy as such may be in effect from time to time, as well as any similar provisions of applicable federal law or regulation and any applicable listing standard of the national securities exchange on which the Common Stock is listed, which could in certain circumstances require repayment or forfeiture of the Performance Share Units or Performance Shares.
|
19.
|
Code Section 409A
. The provisions of Section 17.15 of the Plan are hereby incorporated by reference. Notwithstanding the foregoing, the Company shall not be liable to the Participant in the event this Agreement fails to be exempt from, or comply with, Code Section 409A.
|
1.
|
Award of Shares
. Under the terms and conditions of the Plan, the Committee or the Board has awarded to the Participant a restricted stock award as of
%%OPTION_DATE,’Month DD, YYYY’%-%
(“Award Date”), covering %%TOTAL_SHARES_GRANTED,’999,999,999’%-% shares of Common Stock (the “Award Shares”), subject to the terms, conditions and restrictions set forth in this Agreement.
|
2.
|
Period of Restriction
.
|
(a)
|
Subject to accelerated vesting or forfeiture as hereinafter provided, the Participant’s interest in the Award Shares shall become transferable and non-forfeitable (“Vested” or “Vesting”) on the following vesting dates, provided he remains in employment with the Company or any of its subsidiaries on the applicable date:
|
(b)
|
Notwithstanding any other provision of this Agreement to the contrary:
|
(i)
|
If the Participant’s employment with the Company and its subsidiaries is terminated during the Period of Restriction due to his death or permanent and total disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code), any remaining unvested Award Shares at the date of such termination of employment shall automatically be Vested.
|
(ii)
|
If the Participant’s employment with the Company and its subsidiaries is involuntarily terminated during the Period of Restriction and the Participant is eligible to receive severance pay under the Union Bankshares Corporation Executive Severance Plan and the Participant has signed, submitted and not revoked any release agreement required thereunder, any remaining unvested Award Shares at the date of such termination of employment shall automatically be Vested on the date any such release agreement becomes irrevocable.
|
(iii)
|
If the Participant’s employment with the Company and its subsidiaries is terminated during the Period of Restriction due to retirement at or after age 65 with the consent of the Committee or its delegate and provided no Cause (as defined below) exists to terminate his employment (“Normal Retirement”), then, provided either (i) upon such Normal Retirement the Participant will be subject to a non-competition covenant pursuant to an existing agreement with the Company or a subsidiary or (ii) the Participant executes and delivers to the Company, no later than the date of such Normal Retirement, a non-competition agreement in a form acceptable to the Company, any remaining unvested Award Shares at the date of such termination of employment shall automatically be Vested.
|
(iv)
|
If the Participant’s employment with the Company and its subsidiaries is terminated during the Period of Restriction due to retirement that does not meet the standard for Normal Retirement, then, provided no Cause exists to terminate his employment, the Committee may, in its sole discretion, waive the automatic forfeiture of any or all unvested Award Shares otherwise provided in Section 6 and provide for such Vesting as its deems appropriate subject to such new restrictions, if any, applicable to the Award Shares as it deems appropriate.
|
(v)
|
If a “Change in Control” of the Company occurs during the Period of Restriction and the Participant has remained in employment with the Company or any of its subsidiaries through the date such “Change in Control” occurs:
|
(A)
|
if the surviving corporation assumes or otherwise equitably converts or substitutes this Agreement and within two (2) years after the date the Change in Control occurs the Participant’s employment with the Company and its subsidiaries is involuntarily terminated by the Company without Cause or the Participant resigns for good reason under an applicable employment or change in control agreement, then any remaining unvested Award Shares at the date of such termination of employment shall automatically be Vested; or
|
(B)
|
if the surviving corporation does not assume or otherwise equitably convert or substitute this Agreement, then any remaining unvested Award Shares at the date such Change in Control occurs shall automatically be Vested.
|
(c)
|
Except as contemplated in Section 2(a) or 2(b), the Award Shares may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated during the Period of Restriction; provided, however, that this Section 2(c) shall not prevent transfers by will or by the applicable laws of descent and distribution.
|
3.
|
Stock Certificates
. The stock certificate(s) for the Award Shares shall be registered on the Company’s stock transfer books in the name of the Participant in book-entry or electronic form or in certificated form as determined by the Committee. If issued in certificated form, physical possession of the stock certificate(s) shall be retained by the Company until such time as the Period of Restriction lapses.
|
4.
|
Voting Rights
. During the Period of Restriction, the Participant may exercise full voting rights with respect to the Award Shares.
|
5.
|
Dividends and Other Distributions
. During the Period of Restriction, the Participant shall be entitled to receive all dividends and other distributions paid with respect to the Award Shares (other than dividends or distributions that are paid in shares of Common Stock). If, during the Period of Restriction, any such dividends or distributions are paid in shares of Common Stock with respect to the Award Shares, such shares shall be registered in the name of the Participant and, if issued in certificated form, deposited with the Company as provided in Section 3, and such shares shall be subject to the same restrictions on Vesting and transferability as the Award Shares with respect to which they were paid.
|
6.
|
Forfeiture on Termination of Employment
. Except as provided in Section 2(b) or in Section 12.4 of the Plan, the balance of any Award Shares which are not considered Vested by or at the Participant’s termination of employment with the Company and its subsidiaries shall be automatically forfeited to the Company.
|
7.
|
Employment
. Nothing under the Plan or in this Agreement shall confer upon the Participant any right to continue in the employ of the Company or its subsidiaries or in any way affect the Company’s right to terminate Participant’s employment without prior notice at any time for any or no reason (subject to the terms of any employment agreement between the Participant and the Company or a subsidiary).
|
8.
|
Withholding Taxes
. The Company shall have the right to retain and withhold the amount of taxes (at the statutorily required rates) required by any government to be withheld or otherwise deducted and paid with respect to the Award Shares. At its discretion, the Committee may require the Participant to reimburse the Company for any such taxes required to be withheld by the Company and to withhold any distribution in whole or in part until the Company is so reimbursed. In accordance with procedures established by the Committee, the Participant or any successor in interest is authorized to deliver shares of Common Stock having a Fair Market Value on the date that the amount of tax to be withheld is to be determined and cancel any such shares so delivered in order to satisfy the Company’s withholding obligations. In accordance with procedures established by the Committee, the Participant or any successor in interest is also authorized to elect to have the Company retain and withhold shares of Vesting Common Stock having a Fair Market Value on the date that the amount of tax to be withheld is to be determined and cancel any such shares so withheld in order to satisfy the Company’s withholding obligations. In the event the Participant does not deliver or elect to have the Company retain and withhold shares of Common Stock as described in this Section 8, the Company shall have the right to withhold from any other cash amounts due to or to become due from the Company or a subsidiary to the Participant an amount equal to such taxes required to be withheld by the Company to reimburse the Company for any such taxes.
|
9.
|
Administration
. The Committee shall have full authority and discretion (subject only to the express provisions of the Plan) to decide all matters relating to the administration and interpretation of the Plan and this Agreement. All such Committee determinations shall be final, conclusive and binding upon the Company and the Participant.
|
10.
|
Notices
. Any notice to the Company required under or relating to this Agreement shall be in writing and addressed to:
|
11.
|
Governing Law
. This Agreement shall be construed and administered in accordance with and governed by the laws of the Commonwealth of Virginia.
|
12.
|
Successors
. This Agreement shall be binding upon and inure to the benefit of the successors, assigns, heirs and legal representatives of the respective parties.
|
13.
|
Entire Agreement
. This Agreement contains the entire understanding of the parties and shall not be modified or amended except in writing signed by the parties or as otherwise provided in the Plan.
|
14.
|
Severability
. The various provisions of this Agreement are severable in their entirety. Any determination of invalidity or unenforceability of any one provision shall have no effect on the continuing force and effect of the remaining provisions.
|
15.
|
Capitalized Terms
. Capitalized terms in this Agreement have the meaning assigned to them in the Plan, unless this Agreement provides, or the context requires, otherwise.
|
|
For the Years Ended December 31,
|
|||||||||||||
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||
Ratios of earnings to fixed charges
(1)
:
|
|
|
|
|
|
|
|
|
|
|||||
Including deposit interest
|
3.03
|
|
|
4.24
|
|
|
4.28
|
|
|
4.11
|
|
|
3.11
|
|
Excluding deposit interest
|
5.05
|
|
|
8.24
|
|
|
8.54
|
|
|
7.06
|
|
|
6.69
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Ratios of earnings to fixed charges and preferred dividends
(1)(2)
:
|
|
|
|
|
|
|
|
|
|
|||||
Including deposit interest
|
3.03
|
|
|
4.24
|
|
|
4.28
|
|
|
4.11
|
|
|
3.11
|
|
Excluding deposit interest
|
5.05
|
|
|
8.24
|
|
|
8.54
|
|
|
7.06
|
|
|
6.69
|
|
Subsidiary
|
|
State of Incorporation or Organization
|
Union Bank & Trust
|
|
Virginia
|
Union Mortgage Group, Inc.
|
|
Virginia
|
Union Insurance Group, LLC
|
|
Virginia
|
Old Dominion Capital Management, Inc.
|
|
Virginia
|
Registration Statement Number
|
|
Form
|
|
Description
|
333-220398
|
|
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
|
333-144481
|
|
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
|
|