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.
|
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Item 1A.
|
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Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
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|
|
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|
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Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
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||
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|
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|
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Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
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|
|
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|
|
Item 15.
|
||
Item 16.
|
||
|
Glossary of Acronyms and Defined Terms
|
||
|
|
|
Access
|
–
|
Access National Corporation and its subsidiaries
|
AFS
|
–
|
Available for sale
|
ALCO
|
–
|
Asset Liability Committee
|
ALL
|
–
|
Allowance for loan losses
|
AOCI
|
–
|
Accumulated other comprehensive income (loss)
|
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 losses
|
CFPB
|
–
|
Consumer Financial Protection Bureau
|
Code
|
–
|
Internal Revenue Code of 1986
|
the Company
|
–
|
Union Bankshares Corporation and its subsidiaries
|
CRA
|
–
|
Community Reinvestment Act of 1977
|
DHFB
|
–
|
Dixon, Hubard, Feinour & Brown, Inc.
|
DIF
|
–
|
Deposit Insurance Fund
|
Dodd-Frank Act
|
–
|
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
|
EGRRCPA
|
–
|
Economic Growth, Regulatory Relief, and Consumer Protection Act
|
EPS
|
–
|
Earnings per share
|
ESOP
|
–
|
Employee Stock Ownership Plan
|
Exchange Act
|
–
|
Securities Exchange Act of 1934, as amended
|
FASB
|
–
|
Financial Accounting Standards Board
|
FDIA
|
–
|
Federal Deposit Insurance Act
|
FDIC
|
–
|
Federal Deposit Insurance Corporation
|
FDICIA
|
–
|
Federal Deposit Insurance Corporation Improvement Act
|
Federal Reserve Act
|
–
|
Federal Reserve Act of 1913, as amended
|
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
|
IDC
|
–
|
Interactive Data Corporation
|
LIBOR
|
–
|
London Interbank Offered Rate
|
NOL
|
–
|
Net operating losses
|
NPA
|
–
|
Nonperforming assets
|
OCI
|
–
|
Other comprehensive income
|
OAL
|
–
|
Outfitter Advisors, Ltd.
|
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 common equity
|
ROTCE
|
–
|
Return on average tangible common equity
|
SAB
|
–
|
Staff Accounting Bulletin
|
SCC
|
–
|
Virginia State Corporation Commission
|
SEC
|
–
|
U.S. Securities and Exchange Commission
|
Securities Act
|
–
|
Securities Act of 1933, as amended
|
Shore Premier
|
–
|
Shore Premier Finance
|
Shore Premier sale
|
–
|
The sale of substantially all of the assets and certain liabilities of Shore Premier
|
Tax Act
|
–
|
Tax Cuts and Jobs Act of 2017
|
TFSB
|
–
|
The Federal Savings Bank
|
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.
|
•
|
changes in interest rates,
|
•
|
general economic and financial market conditions in the United States generally and particularly in the markets in which the Company operates and which its loans are concentrated, including the effects of declines in real estate values, an increase in unemployment levels, slowdowns in economic growth and any prolonged government shutdown,
|
•
|
the Company’s ability to manage its growth or implement its growth strategy,
|
•
|
the
possibility that any of the anticipated benefits of the merger of Access with and into the Company on February 1, 2019 (the "Merger”) will not be realized or will not be realized within the expected time period, the businesses of the Company and Access 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,
|
•
|
the Company’s ability to recruit and retain key employees,
|
•
|
the incremental cost and/or decreased revenues associated with exceeding $10 billion in assets,
|
•
|
real estate values in the Bank's lending area.
|
•
|
an insufficient ALL,
|
•
|
the quality or composition of the loan or investment portfolios,
|
•
|
concentrations of loans secured by real estate, particularly commercial real estate,
|
•
|
the effectiveness of the Company’s credit processes and management of the Company’s credit risk,
|
•
|
demand for loan products and financial services in the Company’s market area,
|
•
|
the Company’s ability to compete in the market for financial services,
|
•
|
technological risks and developments, and cyber-threats, 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
;
|
•
|
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,
|
•
|
changes to applicable accounting principles and guidelines, and
|
•
|
other factors, many of which are beyond the control of the Company.
|
Community Bank
|
|
Union Bank & Trust
|
Richmond, Virginia
|
|
|
Financial Services Affiliates
|
|
Capital Fiduciary Advisors, L.L.C
|
Reston, Virginia
|
Dixon, Hubard, Feinour & Brown, Inc.
|
Roanoke, Virginia
|
Middleburg Investment Services, LLC
|
Reston, Virginia
|
Middleburg Trust Company
|
Richmond, Virginia
|
Old Dominion Capital Management, Inc.
|
Charlottesville, Virginia
|
Outfitter Advisors, Ltd.
|
McLean, Virginia
|
Union Insurance Group, LLC
|
Richmond, 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
|
Access National Bank
|
1999
|
|
2019
|
|
2019
|
|
Period Ended
|
||||||||||||||||||||||
Index
|
12/31/2013
|
|
|
12/31/2014
|
|
|
12/31/2015
|
|
|
12/31/2016
|
|
|
12/31/2017
|
|
|
12/31/2018
|
|
||||||
Union Bankshares Corporation
|
$
|
100.00
|
|
|
$
|
99.41
|
|
|
$
|
107.26
|
|
|
$
|
156.52
|
|
|
$
|
162.28
|
|
|
$
|
129.61
|
|
NASDAQ Composite
|
100.00
|
|
|
114.75
|
|
|
122.74
|
|
|
133.62
|
|
|
173.22
|
|
|
168.30
|
|
||||||
SNL U.S. Bank NASDAQ
|
100.00
|
|
|
103.57
|
|
|
111.80
|
|
|
155.02
|
|
|
163.20
|
|
|
137.56
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
(1)
|
||||||||||
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest and dividend income
|
$
|
528,788
|
|
|
$
|
329,044
|
|
|
$
|
293,736
|
|
|
$
|
275,387
|
|
|
$
|
273,140
|
|
Interest expense
|
102,097
|
|
|
50,037
|
|
|
29,770
|
|
|
24,937
|
|
|
19,927
|
|
|||||
Net interest income
|
426,691
|
|
|
279,007
|
|
|
263,966
|
|
|
250,450
|
|
|
253,213
|
|
|||||
Provision for credit losses
|
13,736
|
|
|
10,802
|
|
|
8,883
|
|
|
9,450
|
|
|
7,800
|
|
|||||
Net interest income after provision for credit losses
|
412,955
|
|
|
268,205
|
|
|
255,083
|
|
|
241,000
|
|
|
245,413
|
|
|||||
Noninterest income
|
104,241
|
|
|
62,429
|
|
|
59,849
|
|
|
54,993
|
|
|
51,220
|
|
|||||
Noninterest expenses
|
337,767
|
|
|
225,668
|
|
|
213,090
|
|
|
206,310
|
|
|
222,419
|
|
|||||
Income before income taxes
|
179,429
|
|
|
104,966
|
|
|
101,842
|
|
|
89,683
|
|
|
74,214
|
|
|||||
Income tax expense
|
30,016
|
|
|
32,790
|
|
|
25,944
|
|
|
23,071
|
|
|
19,533
|
|
|||||
Income from continuing operations
|
149,413
|
|
|
72,176
|
|
|
75,898
|
|
|
66,612
|
|
|
54,681
|
|
|||||
Discontinued operations, net of tax
|
(3,165
|
)
|
|
747
|
|
|
1,578
|
|
|
467
|
|
|
(2,517
|
)
|
|||||
Net income
(2)
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets
|
$
|
13,765,599
|
|
|
$
|
9,315,179
|
|
|
$
|
8,426,793
|
|
|
$
|
7,693,291
|
|
|
$
|
7,358,643
|
|
Securities available for sale, at fair value
|
1,774,821
|
|
|
974,222
|
|
|
946,764
|
|
|
903,292
|
|
|
1,102,114
|
|
|||||
Securities held to maturity, at carrying value
|
492,272
|
|
|
199,639
|
|
|
201,526
|
|
|
205,374
|
|
|
—
|
|
|||||
Loans held for investment, net of deferred fees and costs
|
9,716,207
|
|
|
7,141,552
|
|
|
6,307,060
|
|
|
5,671,462
|
|
|
5,345,996
|
|
|||||
Allowance for loan losses
|
41,045
|
|
|
38,208
|
|
|
37,192
|
|
|
34,047
|
|
|
32,384
|
|
|||||
Intangible assets, net
|
775,853
|
|
|
313,331
|
|
|
318,793
|
|
|
316,832
|
|
|
325,277
|
|
|||||
Tangible assets, net
(3)
|
12,989,746
|
|
|
9,001,848
|
|
|
8,108,000
|
|
|
7,376,459
|
|
|
7,033,366
|
|
|||||
Deposits
|
9,970,960
|
|
|
6,991,718
|
|
|
6,379,489
|
|
|
5,963,936
|
|
|
5,638,770
|
|
|||||
Total borrowings
|
1,756,278
|
|
|
1,219,414
|
|
|
990,089
|
|
|
680,175
|
|
|
686,935
|
|
|||||
Total liabilities
|
11,841,018
|
|
|
8,268,850
|
|
|
7,425,761
|
|
|
6,697,924
|
|
|
6,381,474
|
|
|||||
Common stockholders' equity
|
1,924,581
|
|
|
1,046,329
|
|
|
1,001,032
|
|
|
995,367
|
|
|
977,169
|
|
|||||
Tangible common stockholders' equity
(3)
|
1,148,728
|
|
|
732,998
|
|
|
682,239
|
|
|
678,535
|
|
|
651,892
|
|
|||||
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest margin
(2)
|
3.67
|
%
|
|
3.48
|
%
|
|
3.64
|
%
|
|
3.73
|
%
|
|
3.93
|
%
|
|||||
Net interest margin (FTE)
(3)
|
3.74
|
%
|
|
3.63
|
%
|
|
3.80
|
%
|
|
3.89
|
%
|
|
4.09
|
%
|
|||||
Return on average assets
(2)
|
1.11
|
%
|
|
0.83
|
%
|
|
0.96
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|||||
Return on average common stockholders' equity
(2)
|
7.85
|
%
|
|
7.07
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
5.30
|
%
|
|||||
Return on average tangible common stockholders' equity
(2)(3)
|
14.40
|
%
|
|
10.75
|
%
|
|
12.14
|
%
|
|
10.81
|
%
|
|
9.00
|
%
|
|||||
Efficiency ratio
(2)
|
63.62
|
%
|
|
66.09
|
%
|
|
65.81
|
%
|
|
67.54
|
%
|
|
73.06
|
%
|
|||||
CET1 capital (to risk weighted assets)
|
9.93
|
%
|
|
9.04
|
%
|
|
9.72
|
%
|
|
10.55
|
%
|
|
11.20
|
%
|
|||||
Tier 1 capital (to risk weighted assets)
|
11.10
|
%
|
|
10.14
|
%
|
|
10.97
|
%
|
|
11.93
|
%
|
|
12.76
|
%
|
|||||
Total capital (to risk weighted assets)
|
12.88
|
%
|
|
12.43
|
%
|
|
13.56
|
%
|
|
12.46
|
%
|
|
13.38
|
%
|
|||||
Leverage Ratio
|
9.71
|
%
|
|
9.42
|
%
|
|
9.87
|
%
|
|
10.68
|
%
|
|
10.62
|
%
|
|||||
Common equity to total assets
|
13.98
|
%
|
|
11.23
|
%
|
|
11.88
|
%
|
|
12.94
|
%
|
|
13.28
|
%
|
|||||
Tangible common equity / tangible assets
(3)
|
8.84
|
%
|
|
8.14
|
%
|
|
8.41
|
%
|
|
9.20
|
%
|
|
9.27
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
(1)
|
||||||||||
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowance for loan losses
|
$
|
41,045
|
|
|
$
|
38,208
|
|
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
Nonaccrual loans
|
$
|
26,953
|
|
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
Foreclosed property
|
$
|
6,722
|
|
|
$
|
5,253
|
|
|
$
|
7,430
|
|
|
$
|
11,994
|
|
|
$
|
23,058
|
|
ALL / total outstanding loans
|
0.42
|
%
|
|
0.54
|
%
|
|
0.59
|
%
|
|
0.60
|
%
|
|
0.61
|
%
|
|||||
Nonaccrual loans/total loans
|
0.28
|
%
|
|
0.30
|
%
|
|
0.16
|
%
|
|
0.21
|
%
|
|
0.36
|
%
|
|||||
ALL / nonaccrual loans
|
152.28
|
%
|
|
175.73
|
%
|
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|||||
NPAs / total outstanding loans
|
0.35
|
%
|
|
0.38
|
%
|
|
0.28
|
%
|
|
0.42
|
%
|
|
0.79
|
%
|
|||||
Net charge-offs / total average loans
|
0.12
|
%
|
|
0.15
|
%
|
|
0.09
|
%
|
|
0.14
|
%
|
|
0.11
|
%
|
|||||
Provision / total average loans
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|||||
Per Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share, basic
|
$
|
2.22
|
|
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.13
|
|
Earnings per share, diluted
(2)
|
2.22
|
|
|
1.67
|
|
|
1.77
|
|
|
1.49
|
|
|
1.13
|
|
|||||
Cash dividends paid per share
|
0.88
|
|
|
0.81
|
|
|
0.77
|
|
|
0.68
|
|
|
0.58
|
|
|||||
Market value per share
|
28.23
|
|
|
36.17
|
|
|
35.74
|
|
|
25.24
|
|
|
24.08
|
|
|||||
Book value per share
|
29.34
|
|
|
24.10
|
|
|
23.15
|
|
|
22.38
|
|
|
21.73
|
|
|||||
Tangible book value per share
(3)
|
17.51
|
|
|
16.88
|
|
|
15.78
|
|
|
15.25
|
|
|
14.50
|
|
|||||
Dividend payout ratio
|
39.64
|
%
|
|
48.50
|
%
|
|
43.50
|
%
|
|
45.64
|
%
|
|
51.33
|
%
|
|||||
Weighted average shares outstanding, basic
|
65,859,166
|
|
|
43,698,897
|
|
|
43,784,193
|
|
|
45,054,938
|
|
|
46,036,023
|
|
|||||
Weighted average shares outstanding, diluted
|
65,908,573
|
|
|
43,779,744
|
|
|
43,890,271
|
|
|
45,138,891
|
|
|
46,130,895
|
|
QUALITATIVE FACTORS
|
||||
Portfolio
|
|
National / International
|
|
Local
|
Experience and ability of lending team
|
|
Interest rates
|
|
Gross state product
|
Pace of loan growth
|
|
Inflation
|
|
Unemployment rate
|
Footprint and expansion
|
|
Unemployment
|
|
Home prices
|
Execution of loan risk rating process
|
|
Level of economic activity
|
|
CRE Prices
|
Degree of credit oversight
|
|
Political and trade uncertainty
|
|
|
Underwriting standards
|
|
Asset prices
|
|
|
Delinquency levels in portfolio
|
|
|
|
|
Charge-off trends in portfolio
|
|
|
|
|
Credit concentrations / nature and volume of the portfolio
|
|
|
|
|
•
|
The Company reported net income of
$146.2 million
and earnings per share of
$2.22
for the year ended
December 31, 2018
compared to net income of
$72.9 million
and earnings per share of
$1.67
for the year ended
December 31, 2017
.
|
•
|
The Company's net operating earnings
(1)
were $178.3 million and operating earnings per share
(1)
were $2.71 for 2018 compared to net operating earnings
(1)
of $83.6 million and operating earnings per share
(1)
of $1.91 for 2017.
|
•
|
ROA was 1.11% for 2018 compared to 0.83% for 2017; operating ROA
(1)
was 1.35% for 2018 compared to 0.95% for 2017.
|
•
|
ROE was 7.85% for 2018 compared to 7.07% for 2017; operating ROE
(1)
was 9.57% for 2018 compared to 8.11% for 2017.
|
•
|
ROTCE
(1)
was 14.40% for 2018 compared to 10.75% for 2017; operating ROTCE
(1)
was 17.35% for 2018 compared to 12.24% for 2017.
|
•
|
Loans held for investment from continuing operations, net of deferred fees and costs, were
$9.7 billion
at
December 31, 2018
, an increase of $2.6 billion from
December 31, 2017
. The increase was primarily a result of the Xenith acquisition.
|
•
|
Total deposits from continuing operations at
December 31, 2018
were
$10.0 billion
, an increase of $3.0 billion from
December 31, 2017
. The increase was primarily a result of the Xenith acquisition.
|
•
|
Cash dividends per common share increased to $0.88 during 2018 from $0.81 per common share during 2017.
|
•
|
The Company acquired Access on February 1, 2019. The 2018 results included herein are prior to the effective date of the Merger.
|
|
For the Year Ended
December 31,
|
|
|
||||||||||
|
2018
|
|
2017
|
|
Change
|
||||||||
|
(Dollars in thousands)
|
||||||||||||
Average interest-earning assets
|
$
|
11,620,893
|
|
|
$
|
8,016,311
|
|
|
$
|
3,604,582
|
|
|
|
Interest income
|
$
|
528,788
|
|
|
$
|
329,044
|
|
|
$
|
199,744
|
|
|
|
Interest income (FTE)
(1)
|
$
|
536,981
|
|
|
$
|
340,810
|
|
|
$
|
196,171
|
|
|
|
Yield on interest-earning assets
|
4.55
|
%
|
|
4.10
|
%
|
|
45
|
|
|
bps
|
|||
Yield on interest-earning assets (FTE)
(1)
|
4.62
|
%
|
|
4.25
|
%
|
|
37
|
|
|
bps
|
|||
Average interest-bearing liabilities
|
$
|
9,106,716
|
|
|
$
|
6,262,536
|
|
|
$
|
2,844,180
|
|
|
|
Interest expense
|
$
|
102,097
|
|
|
$
|
50,037
|
|
|
$
|
52,060
|
|
|
|
Cost of interest-bearing liabilities
|
1.12
|
%
|
|
0.80
|
%
|
|
32
|
|
|
bps
|
|||
Cost of funds
|
0.88
|
%
|
|
0.62
|
%
|
|
26
|
|
|
bps
|
|||
Net interest income
|
$
|
426,691
|
|
|
$
|
279,007
|
|
|
$
|
147,684
|
|
|
|
Net interest income (FTE)
(1)
|
$
|
434,884
|
|
|
$
|
290,773
|
|
|
$
|
144,111
|
|
|
|
Net interest margin
|
3.67
|
%
|
|
3.48
|
%
|
|
19
|
|
|
bps
|
|||
Net interest margin (FTE)
(1)
|
3.74
|
%
|
|
3.63
|
%
|
|
11
|
|
|
bps
|
|
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
|
$
|
329,044
|
|
|
$
|
293,736
|
|
|
$
|
35,308
|
|
|
|
Interest income (FTE)
(1)
|
$
|
340,810
|
|
|
$
|
305,164
|
|
|
$
|
35,646
|
|
|
|
Yield on interest-earning assets
|
4.10
|
%
|
|
4.05
|
%
|
|
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
|
$
|
279,007
|
|
|
$
|
263,966
|
|
|
$
|
15,041
|
|
|
|
Net interest income (FTE)
(1)
|
$
|
290,773
|
|
|
$
|
275,394
|
|
|
$
|
15,379
|
|
|
|
Net interest margin
|
3.48
|
%
|
|
3.64
|
%
|
|
(16
|
)
|
|
bps
|
|||
Net interest margin (FTE)
(1)
|
3.63
|
%
|
|
3.80
|
%
|
|
(17
|
)
|
|
bps
|
|
For the Year Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||||||||
|
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
|
$
|
1,229,038
|
|
|
$
|
36,851
|
|
|
3.00
|
%
|
|
$
|
761,994
|
|
|
$
|
20,305
|
|
|
2.66
|
%
|
|
$
|
754,287
|
|
|
$
|
18,319
|
|
|
2.43
|
%
|
Tax-exempt
|
647,980
|
|
|
25,262
|
|
|
3.90
|
%
|
|
468,111
|
|
|
21,852
|
|
|
4.67
|
%
|
|
448,405
|
|
|
21,216
|
|
|
4.73
|
%
|
||||||
Total securities
|
1,877,018
|
|
|
62,113
|
|
|
3.31
|
%
|
|
1,230,105
|
|
|
42,157
|
|
|
3.43
|
%
|
|
1,202,692
|
|
|
39,535
|
|
|
3.29
|
%
|
||||||
Loans, net
(3) (4)
|
9,584,785
|
|
|
471,768
|
|
|
4.92
|
%
|
|
6,701,101
|
|
|
296,958
|
|
|
4.43
|
%
|
|
5,956,125
|
|
|
264,197
|
|
|
4.44
|
%
|
||||||
Other earning assets
|
159,090
|
|
|
3,100
|
|
|
1.95
|
%
|
|
85,105
|
|
|
1,695
|
|
|
1.99
|
%
|
|
90,273
|
|
|
1,432
|
|
|
1.59
|
%
|
||||||
Total earning assets
|
11,620,893
|
|
|
$
|
536,981
|
|
|
4.62
|
%
|
|
8,016,311
|
|
|
$
|
340,810
|
|
|
4.25
|
%
|
|
7,249,090
|
|
|
$
|
305,164
|
|
|
4.21
|
%
|
|||
Allowance for loan losses
|
(41,218
|
)
|
|
|
|
|
|
|
|
(38,014
|
)
|
|
|
|
|
|
|
|
(36,034
|
)
|
|
|
|
|
|
|
||||||
Total non-earning assets
|
1,601,934
|
|
|
|
|
|
|
|
|
841,845
|
|
|
|
|
|
|
|
|
833,249
|
|
|
|
|
|
|
|
||||||
Total assets
|
$
|
13,181,609
|
|
|
|
|
|
|
|
|
$
|
8,820,142
|
|
|
|
|
|
|
|
|
$
|
8,046,305
|
|
|
|
|
|
|
|
|||
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transaction and money market accounts
|
$
|
4,898,764
|
|
|
$
|
32,222
|
|
|
0.66
|
%
|
|
$
|
3,396,552
|
|
|
$
|
11,892
|
|
|
0.35
|
%
|
|
$
|
2,952,625
|
|
|
$
|
6,327
|
|
|
0.21
|
%
|
Regular savings
|
640,337
|
|
|
847
|
|
|
0.13
|
%
|
|
565,901
|
|
|
643
|
|
|
0.11
|
%
|
|
592,215
|
|
|
850
|
|
|
0.14
|
%
|
||||||
Time deposits
(5)
|
2,078,073
|
|
|
26,267
|
|
|
1.26
|
%
|
|
1,271,649
|
|
|
13,571
|
|
|
1.07
|
%
|
|
1,177,732
|
|
|
10,554
|
|
|
0.90
|
%
|
||||||
Total interest-bearing deposits
|
7,617,174
|
|
|
59,336
|
|
|
0.78
|
%
|
|
5,234,102
|
|
|
26,106
|
|
|
0.50
|
%
|
|
4,722,572
|
|
|
17,731
|
|
|
0.38
|
%
|
||||||
Other borrowings
(6)
|
1,489,542
|
|
|
42,761
|
|
|
2.87
|
%
|
|
1,028,434
|
|
|
23,931
|
|
|
2.33
|
%
|
|
877,602
|
|
|
12,039
|
|
|
1.37
|
%
|
||||||
Total interest-bearing liabilities
|
9,106,716
|
|
|
$
|
102,097
|
|
|
1.12
|
%
|
|
6,262,536
|
|
|
$
|
50,037
|
|
|
0.80
|
%
|
|
5,600,174
|
|
|
$
|
29,770
|
|
|
0.53
|
%
|
|||
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand deposits
|
2,100,489
|
|
|
|
|
|
|
|
|
1,467,373
|
|
|
|
|
|
|
|
|
1,388,216
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
111,189
|
|
|
|
|
|
|
|
|
59,386
|
|
|
|
|
|
|
|
|
63,130
|
|
|
|
|
|
|
|
||||||
Total liabilities
|
11,318,394
|
|
|
|
|
|
|
|
|
7,789,295
|
|
|
|
|
|
|
|
|
7,051,520
|
|
|
|
|
|
|
|
||||||
Stockholders' equity
|
1,863,215
|
|
|
|
|
|
|
|
|
1,030,847
|
|
|
|
|
|
|
|
|
994,785
|
|
|
|
|
|
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
13,181,609
|
|
|
|
|
|
|
|
|
$
|
8,820,142
|
|
|
|
|
|
|
|
|
$
|
8,046,305
|
|
|
|
|
|
|
|
|||
Net interest income
|
|
|
|
$434,884
|
|
|
|
|
|
|
|
$290,773
|
|
|
|
|
|
|
|
$275,394
|
|
|
|
|||||||||
Interest rate spread
|
|
|
|
|
|
|
3.50
|
%
|
|
|
|
|
|
|
|
3.45
|
%
|
|
|
|
|
|
|
|
3.68
|
%
|
||||||
Cost of funds
|
|
|
|
|
|
|
0.88
|
%
|
|
|
|
|
|
|
|
0.62
|
%
|
|
|
|
|
|
|
|
0.41
|
%
|
||||||
Net interest margin
|
|
|
|
|
|
|
3.74
|
%
|
|
|
|
|
|
|
|
3.63
|
%
|
|
|
|
|
|
|
|
3.80
|
%
|
|
2018 vs. 2017
Increase (Decrease) Due to Change in:
|
|
2017 vs. 2016
Increase (Decrease) Due to Change in:
|
||||||||||||||||||||
|
Volume
|
|
Rate
|
|
Total
|
|
Volume
|
|
Rate
|
|
Total
|
||||||||||||
Earning Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
$
|
13,740
|
|
|
$
|
2,806
|
|
|
$
|
16,546
|
|
|
$
|
189
|
|
|
$
|
1,797
|
|
|
$
|
1,986
|
|
Tax-exempt
|
7,428
|
|
|
(4,018
|
)
|
|
3,410
|
|
|
923
|
|
|
(287
|
)
|
|
636
|
|
||||||
Total securities
|
21,168
|
|
|
(1,212
|
)
|
|
19,956
|
|
|
1,112
|
|
|
1,510
|
|
|
2,622
|
|
||||||
Loans, net
(1)
|
139,042
|
|
|
35,768
|
|
|
174,810
|
|
|
33,014
|
|
|
(253
|
)
|
|
32,761
|
|
||||||
Other earning assets
|
1,443
|
|
|
(38
|
)
|
|
1,405
|
|
|
(86
|
)
|
|
349
|
|
|
263
|
|
||||||
Total earning assets
|
$
|
161,653
|
|
|
$
|
34,518
|
|
|
$
|
196,171
|
|
|
$
|
34,040
|
|
|
$
|
1,606
|
|
|
$
|
35,646
|
|
Interest-Bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-Bearing Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Transaction and money market accounts
|
$
|
6,808
|
|
|
$
|
13,522
|
|
|
$
|
20,330
|
|
|
$
|
1,067
|
|
|
$
|
4,498
|
|
|
$
|
5,565
|
|
Regular savings
|
90
|
|
|
114
|
|
|
204
|
|
|
(36
|
)
|
|
(171
|
)
|
|
(207
|
)
|
||||||
Time deposits
(2)
|
9,835
|
|
|
2,861
|
|
|
12,696
|
|
|
889
|
|
|
2,128
|
|
|
3,017
|
|
||||||
Total interest-bearing deposits
|
16,733
|
|
|
16,497
|
|
|
33,230
|
|
|
1,920
|
|
|
6,455
|
|
|
8,375
|
|
||||||
Other borrowings
(3)
|
12,378
|
|
|
6,452
|
|
|
18,830
|
|
|
2,354
|
|
|
9,538
|
|
|
11,892
|
|
||||||
Total interest-bearing liabilities
|
29,111
|
|
|
22,949
|
|
|
52,060
|
|
|
4,274
|
|
|
15,993
|
|
|
20,267
|
|
||||||
Change in net interest income
|
$
|
132,542
|
|
|
$
|
11,569
|
|
|
$
|
144,111
|
|
|
$
|
29,766
|
|
|
$
|
(14,387
|
)
|
|
$
|
15,379
|
|
|
Loans Accretion
|
|
Deposit Accretion
|
|
Borrowings Accretion (Amortization)
|
|
Total
|
||||||||
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 year ended December 31, 2018
|
17,145
|
|
|
2,553
|
|
|
(506
|
)
|
|
19,192
|
|
||||
For the years ending (estimated)
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
2019
|
10,538
|
|
|
1,170
|
|
|
(660
|
)
|
|
11,048
|
|
||||
2020
|
8,130
|
|
|
284
|
|
|
(734
|
)
|
|
7,680
|
|
||||
2021
|
6,614
|
|
|
108
|
|
|
(805
|
)
|
|
5,917
|
|
||||
2022
|
4,984
|
|
|
21
|
|
|
(827
|
)
|
|
4,178
|
|
||||
2023
|
2,996
|
|
|
—
|
|
|
(850
|
)
|
|
2,146
|
|
||||
Thereafter
|
10,550
|
|
|
—
|
|
|
(11,633
|
)
|
|
(1,083
|
)
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
$
|
25,439
|
|
|
$
|
18,850
|
|
|
$
|
6,589
|
|
|
35.0
|
%
|
Other service charges, commissions and fees
|
5,603
|
|
|
4,593
|
|
|
1,010
|
|
|
22.0
|
%
|
|||
Interchange fees, net
|
18,803
|
|
|
14,974
|
|
|
3,829
|
|
|
25.6
|
%
|
|||
Fiduciary and asset management fees
|
16,150
|
|
|
11,245
|
|
|
4,905
|
|
|
43.6
|
%
|
|||
Gains (losses) on securities transactions, net
|
383
|
|
|
800
|
|
|
(417
|
)
|
|
(52.1
|
)%
|
|||
Bank owned life insurance income
|
7,198
|
|
|
6,144
|
|
|
1,054
|
|
|
17.2
|
%
|
|||
Loan-related interest rate swap fees
|
3,554
|
|
|
3,051
|
|
|
503
|
|
|
16.5
|
%
|
|||
Gain on Shore Premier sale
|
19,966
|
|
|
—
|
|
|
19,966
|
|
|
—
|
%
|
|||
Other operating income
|
7,145
|
|
|
2,772
|
|
|
4,373
|
|
|
157.8
|
%
|
|||
Total noninterest income
|
$
|
104,241
|
|
|
$
|
62,429
|
|
|
$
|
41,812
|
|
|
67.0
|
%
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
$
|
18,850
|
|
|
$
|
18,168
|
|
|
$
|
682
|
|
|
3.8
|
%
|
Other service charges, commissions and fees
|
4,593
|
|
|
4,445
|
|
|
148
|
|
|
3.3
|
%
|
|||
Interchange fees, net
|
14,974
|
|
|
14,058
|
|
|
916
|
|
|
6.5
|
%
|
|||
Fiduciary and asset management fees
|
11,245
|
|
|
10,199
|
|
|
1,046
|
|
|
10.3
|
%
|
|||
Gains (losses) on securities transactions, net
|
800
|
|
|
205
|
|
|
595
|
|
|
290.2
|
%
|
|||
Bank owned life insurance 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
|
2,772
|
|
|
3,007
|
|
|
(235
|
)
|
|
(7.8
|
)%
|
|||
Total noninterest income
|
$
|
62,429
|
|
|
$
|
59,849
|
|
|
$
|
2,580
|
|
|
4.3
|
%
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2018
|
|
2017
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
$
|
159,378
|
|
|
$
|
115,968
|
|
|
$
|
43,410
|
|
|
37.4
|
%
|
Occupancy expenses
|
25,368
|
|
|
18,558
|
|
|
6,810
|
|
|
36.7
|
%
|
|||
Furniture and equipment expenses
|
11,991
|
|
|
10,047
|
|
|
1,944
|
|
|
19.3
|
%
|
|||
Printing, postage, and supplies
|
4,650
|
|
|
4,901
|
|
|
(251
|
)
|
|
(5.1
|
)%
|
|||
Communications expense
|
3,898
|
|
|
3,304
|
|
|
594
|
|
|
18.0
|
%
|
|||
Technology and data processing
|
18,397
|
|
|
16,132
|
|
|
2,265
|
|
|
14.0
|
%
|
|||
Professional services
|
10,283
|
|
|
7,767
|
|
|
2,516
|
|
|
32.4
|
%
|
|||
Marketing and advertising expense
|
10,043
|
|
|
7,795
|
|
|
2,248
|
|
|
28.8
|
%
|
|||
FDIC assessment premiums and other insurance
|
6,644
|
|
|
4,048
|
|
|
2,596
|
|
|
64.1
|
%
|
|||
Other taxes
|
11,542
|
|
|
8,087
|
|
|
3,455
|
|
|
42.7
|
%
|
|||
Loan-related expenses
|
7,206
|
|
|
4,733
|
|
|
2,473
|
|
|
52.3
|
%
|
|||
OREO and credit-related expenses
|
4,131
|
|
|
3,764
|
|
|
367
|
|
|
9.8
|
%
|
|||
Amortization of intangible assets
|
12,839
|
|
|
6,088
|
|
|
6,751
|
|
|
110.9
|
%
|
|||
Training and other personnel costs
|
4,259
|
|
|
3,843
|
|
|
416
|
|
|
10.8
|
%
|
|||
Merger-related costs
|
39,728
|
|
|
5,393
|
|
|
34,335
|
|
|
NM
|
|
|||
Other expenses
|
7,410
|
|
|
5,240
|
|
|
2,170
|
|
|
41.4
|
%
|
|||
Total noninterest expense
|
$
|
337,767
|
|
|
$
|
225,668
|
|
|
$
|
112,099
|
|
|
49.7
|
%
|
|
For the Year Ended
December 31,
|
|
Change
|
|||||||||||
|
2017
|
|
2016
|
|
$
|
|
%
|
|||||||
|
(Dollars in thousands)
|
|||||||||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
$
|
115,968
|
|
|
$
|
110,521
|
|
|
$
|
5,447
|
|
|
4.9
|
%
|
Occupancy expenses
|
18,558
|
|
|
18,502
|
|
|
56
|
|
|
0.3
|
%
|
|||
Furniture and equipment expenses
|
10,047
|
|
|
9,814
|
|
|
233
|
|
|
2.4
|
%
|
|||
Printing, postage, and supplies
|
4,901
|
|
|
4,610
|
|
|
291
|
|
|
6.3
|
%
|
|||
Communications expense
|
3,304
|
|
|
3,744
|
|
|
(440
|
)
|
|
(11.8
|
)%
|
|||
Technology and data processing
|
16,132
|
|
|
15,032
|
|
|
1,100
|
|
|
7.3
|
%
|
|||
Professional services
|
7,767
|
|
|
8,051
|
|
|
(284
|
)
|
|
(3.5
|
)%
|
|||
Marketing and advertising expense
|
7,795
|
|
|
7,756
|
|
|
39
|
|
|
0.5
|
%
|
|||
FDIC assessment premiums and other insurance
|
4,048
|
|
|
5,406
|
|
|
(1,358
|
)
|
|
(25.1
|
)%
|
|||
Other taxes
|
8,087
|
|
|
5,448
|
|
|
2,639
|
|
|
48.4
|
%
|
|||
Loan-related expenses
|
4,733
|
|
|
4,168
|
|
|
565
|
|
|
13.6
|
%
|
|||
OREO and credit-related expenses
|
3,764
|
|
|
2,600
|
|
|
1,164
|
|
|
44.8
|
%
|
|||
Amortization of intangible assets
|
6,088
|
|
|
7,210
|
|
|
(1,122
|
)
|
|
(15.6
|
)%
|
|||
Training and other personnel costs
|
3,843
|
|
|
3,359
|
|
|
484
|
|
|
14.4
|
%
|
|||
Merger-related expenses
|
5,393
|
|
|
—
|
|
|
5,393
|
|
|
—
|
%
|
|||
Other expenses
|
5,240
|
|
|
6,869
|
|
|
(1,629
|
)
|
|
(23.7
|
)%
|
|||
Total noninterest expense
|
$
|
225,668
|
|
|
$
|
213,090
|
|
|
$
|
12,578
|
|
|
5.9
|
%
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
Available for Sale:
|
|
|
|
|
|
||
Obligations of states and political subdivisions
|
$
|
468,491
|
|
|
$
|
301,824
|
|
Corporate bonds
|
167,696
|
|
|
113,880
|
|
||
Mortgage-backed securities
|
1,129,865
|
|
|
548,858
|
|
||
Other securities
|
8,769
|
|
|
9,660
|
|
||
Total securities available for sale, at fair value
|
1,774,821
|
|
|
974,222
|
|
||
Held to Maturity:
|
|
|
|
|
|
||
Obligations of states and political subdivisions, at carrying value
|
492,272
|
|
|
199,639
|
|
||
Restricted Stock:
|
|
|
|
||||
Federal Reserve Bank stock
|
52,576
|
|
|
27,558
|
|
||
FHLB stock
|
72,026
|
|
|
47,725
|
|
||
Total restricted stock, at cost
|
124,602
|
|
|
75,283
|
|
||
Total investments
|
$
|
2,391,695
|
|
|
$
|
1,249,144
|
|
|
1 Year or Less
|
|
1 - 5 Years
|
|
5 - 10 Years
|
|
Over 10 Years
|
|
Total
|
||||||||||
Mortgage backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
29
|
|
|
$
|
156,830
|
|
|
$
|
91,347
|
|
|
$
|
889,828
|
|
|
$
|
1,138,034
|
|
Fair value
|
$
|
29
|
|
|
$
|
154,387
|
|
|
$
|
89,433
|
|
|
$
|
886,016
|
|
|
$
|
1,129,865
|
|
Weighted average yield
(1)
|
3.73
|
|
|
2.30
|
|
|
2.40
|
|
|
3.12
|
|
|
2.95
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
16,355
|
|
|
$
|
29,194
|
|
|
$
|
42,994
|
|
|
$
|
378,045
|
|
|
$
|
466,588
|
|
Fair value
|
$
|
16,491
|
|
|
$
|
29,667
|
|
|
$
|
43,527
|
|
|
$
|
378,806
|
|
|
$
|
468,491
|
|
Weighted average yield
(1)
|
5.10
|
|
|
4.15
|
|
|
4.05
|
|
|
3.64
|
|
|
3.76
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate bonds and other securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Amortized cost
|
$
|
6,269
|
|
|
$
|
4,979
|
|
|
$
|
83,870
|
|
|
$
|
81,212
|
|
|
$
|
176,330
|
|
Fair value
|
$
|
6,269
|
|
|
$
|
4,945
|
|
|
$
|
84,344
|
|
|
$
|
80,907
|
|
|
$
|
176,465
|
|
Weighted average yield
(1)
|
2.11
|
|
|
3.65
|
|
|
4.54
|
|
|
3.40
|
|
|
3.90
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Total securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Amortized cost
|
$
|
22,653
|
|
|
$
|
191,003
|
|
|
$
|
218,211
|
|
|
$
|
1,349,085
|
|
|
$
|
1,780,952
|
|
Fair value
|
$
|
22,789
|
|
|
$
|
188,999
|
|
|
$
|
217,304
|
|
|
$
|
1,345,729
|
|
|
$
|
1,774,821
|
|
Weighted average yield
(1)
|
4.27
|
|
|
2.62
|
|
|
3.55
|
|
|
3.28
|
|
|
3.26
|
|
|
1 Year or Less
|
|
1 - 5 Years
|
|
5 - 10 Years
|
|
Over 10 Years
|
|
Total
|
||||||||||
Obligations of states and political subdivisions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Carrying Value
|
$
|
—
|
|
|
$
|
3,893
|
|
|
$
|
3,480
|
|
|
$
|
484,899
|
|
|
$
|
492,272
|
|
Fair value
|
$
|
—
|
|
|
$
|
3,900
|
|
|
$
|
3,507
|
|
|
$
|
492,094
|
|
|
$
|
499,501
|
|
Weighted average yield
(1)
|
—
|
|
|
2.31
|
|
|
2.64
|
|
|
4.12
|
|
|
4.09
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
Construction and Land Development
|
$
|
1,194,821
|
|
|
12.3
|
%
|
|
$
|
948,791
|
|
|
13.3
|
%
|
|
$
|
751,131
|
|
|
11.9
|
%
|
|
$
|
749,720
|
|
|
13.2
|
%
|
|
$
|
656,380
|
|
|
12.3
|
%
|
Commercial Real Estate - Owner Occupied
|
1,337,345
|
|
|
13.8
|
%
|
|
943,933
|
|
|
13.2
|
%
|
|
857,805
|
|
|
13.6
|
%
|
|
860,086
|
|
|
15.2
|
%
|
|
869,200
|
|
|
16.3
|
%
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
2,467,410
|
|
|
25.4
|
%
|
|
1,713,659
|
|
|
24.0
|
%
|
|
1,564,295
|
|
|
24.8
|
%
|
|
1,270,480
|
|
|
22.3
|
%
|
|
1,183,514
|
|
|
22.0
|
%
|
|||||
Multifamily Real Estate
|
548,231
|
|
|
5.6
|
%
|
|
357,079
|
|
|
5.0
|
%
|
|
334,276
|
|
|
5.3
|
%
|
|
322,528
|
|
|
5.7
|
%
|
|
297,366
|
|
|
5.6
|
%
|
|||||
Commercial & Industrial
|
1,317,135
|
|
|
13.6
|
%
|
|
612,023
|
|
|
8.6
|
%
|
|
551,526
|
|
|
8.7
|
%
|
|
435,365
|
|
|
7.7
|
%
|
|
374,096
|
|
|
7.0
|
%
|
|||||
Residential 1-4 Family - Commercial
|
713,750
|
|
|
7.3
|
%
|
|
612,395
|
|
|
8.6
|
%
|
|
551,636
|
|
|
8.7
|
%
|
|
517,063
|
|
|
9.2
|
%
|
|
508,503
|
|
|
9.5
|
%
|
|||||
Residential 1-4 Family - Mortgage
|
600,578
|
|
|
6.2
|
%
|
|
485,690
|
|
|
6.8
|
%
|
|
477,911
|
|
|
7.6
|
%
|
|
461,406
|
|
|
8.1
|
%
|
|
474,571
|
|
|
8.9
|
%
|
|||||
Auto
|
301,943
|
|
|
3.1
|
%
|
|
282,474
|
|
|
4.0
|
%
|
|
262,071
|
|
|
4.2
|
%
|
|
234,061
|
|
|
4.1
|
%
|
|
207,813
|
|
|
3.9
|
%
|
|||||
HELOC
|
613,383
|
|
|
6.3
|
%
|
|
537,521
|
|
|
7.5
|
%
|
|
526,884
|
|
|
8.4
|
%
|
|
516,726
|
|
|
9.1
|
%
|
|
523,341
|
|
|
9.8
|
%
|
|||||
Consumer
|
379,694
|
|
|
3.9
|
%
|
|
408,667
|
|
|
5.7
|
%
|
|
278,549
|
|
|
4.4
|
%
|
|
169,903
|
|
|
3.0
|
%
|
|
125,313
|
|
|
2.3
|
%
|
|||||
Other Commercial
|
241,917
|
|
|
2.5
|
%
|
|
239,320
|
|
|
3.3
|
%
|
|
150,976
|
|
|
2.4
|
%
|
|
134,124
|
|
|
2.4
|
%
|
|
125,899
|
|
|
2.4
|
%
|
|||||
Total loans held for investment
|
$
|
9,716,207
|
|
|
100.0
|
%
|
|
$
|
7,141,552
|
|
|
100.0
|
%
|
|
$
|
6,307,060
|
|
|
100.0
|
%
|
|
$
|
5,671,462
|
|
|
100.0
|
%
|
|
$
|
5,345,996
|
|
|
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
|
$
|
1,194,821
|
|
|
$
|
567,346
|
|
|
$
|
356,970
|
|
|
$
|
289,810
|
|
|
$
|
67,160
|
|
|
$
|
270,505
|
|
|
$
|
211,573
|
|
|
$
|
58,932
|
|
Commercial Real Estate - Owner Occupied
|
1,337,345
|
|
|
160,235
|
|
|
298,962
|
|
|
59,819
|
|
|
239,143
|
|
|
878,148
|
|
|
600,108
|
|
|
278,040
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
2,467,410
|
|
|
252,925
|
|
|
882,486
|
|
|
390,913
|
|
|
491,573
|
|
|
1,331,999
|
|
|
996,827
|
|
|
335,172
|
|
||||||||
Multifamily Real Estate
|
548,231
|
|
|
39,765
|
|
|
224,044
|
|
|
110,156
|
|
|
113,888
|
|
|
284,422
|
|
|
258,886
|
|
|
25,536
|
|
||||||||
Commercial & Industrial
|
1,317,135
|
|
|
426,303
|
|
|
527,440
|
|
|
437,448
|
|
|
89,992
|
|
|
363,392
|
|
|
261,907
|
|
|
101,485
|
|
||||||||
Residential 1-4 Family - Commercial
|
713,750
|
|
|
102,873
|
|
|
96,286
|
|
|
12,815
|
|
|
83,471
|
|
|
514,591
|
|
|
407,804
|
|
|
106,787
|
|
||||||||
Residential 1-4 Family - Mortgage
|
600,578
|
|
|
11,197
|
|
|
300,784
|
|
|
6,203
|
|
|
294,581
|
|
|
288,597
|
|
|
21,895
|
|
|
266,702
|
|
||||||||
Auto
|
301,943
|
|
|
2,663
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
299,276
|
|
|
154,437
|
|
|
144,839
|
|
||||||||
HELOC
|
613,383
|
|
|
51,678
|
|
|
555,051
|
|
|
96,695
|
|
|
458,356
|
|
|
6,654
|
|
|
1,207
|
|
|
5,447
|
|
||||||||
Consumer
|
379,694
|
|
|
5,226
|
|
|
14,883
|
|
|
13,005
|
|
|
1,878
|
|
|
359,585
|
|
|
247,414
|
|
|
112,171
|
|
||||||||
Other Commercial
|
241,917
|
|
|
48,965
|
|
|
84,322
|
|
|
7,701
|
|
|
76,621
|
|
|
108,630
|
|
|
46,440
|
|
|
62,190
|
|
||||||||
Total loans held for investment
|
$
|
9,716,207
|
|
|
$
|
1,669,176
|
|
|
$
|
3,341,232
|
|
|
$
|
1,424,569
|
|
|
$
|
1,916,663
|
|
|
$
|
4,705,799
|
|
|
$
|
3,208,498
|
|
|
$
|
1,497,301
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Nonaccrual loans, excluding PCI loans
|
$
|
26,953
|
|
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
Foreclosed properties
|
6,722
|
|
|
5,253
|
|
|
7,430
|
|
|
11,994
|
|
|
23,058
|
|
|||||
Total NPAs
|
33,675
|
|
|
26,996
|
|
|
17,403
|
|
|
23,930
|
|
|
42,313
|
|
|||||
Loans past due 90 days and accruing interest
|
8,856
|
|
|
3,532
|
|
|
3,005
|
|
|
5,829
|
|
|
10,047
|
|
|||||
Total NPAs and loans past due 90 days and accruing interest
|
$
|
42,531
|
|
|
$
|
30,528
|
|
|
$
|
20,408
|
|
|
$
|
29,759
|
|
|
$
|
52,360
|
|
Performing TDRs
|
$
|
19,201
|
|
|
$
|
14,553
|
|
|
$
|
13,967
|
|
|
$
|
10,780
|
|
|
$
|
22,829
|
|
PCI loans
|
90,221
|
|
|
39,021
|
|
|
59,292
|
|
|
73,737
|
|
|
105,788
|
|
|||||
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan losses
|
$
|
41,045
|
|
|
$
|
38,208
|
|
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
Average loans, net of deferred fees and costs
|
9,584,785
|
|
|
6,701,101
|
|
|
5,956,125
|
|
|
5,487,367
|
|
|
5,235,471
|
|
|||||
Loans, net of deferred fees and costs
|
9,716,207
|
|
|
7,141,552
|
|
|
6,307,060
|
|
|
5,671,462
|
|
|
5,345,996
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NPAs to total loans
|
0.35
|
%
|
|
0.38
|
%
|
|
0.28
|
%
|
|
0.42
|
%
|
|
0.79
|
%
|
|||||
NPAs & loans 90 days past due to total loans
|
0.44
|
%
|
|
0.43
|
%
|
|
0.32
|
%
|
|
0.52
|
%
|
|
0.98
|
%
|
|||||
NPAs to total loans & foreclosed property
|
0.35
|
%
|
|
0.38
|
%
|
|
0.28
|
%
|
|
0.42
|
%
|
|
0.79
|
%
|
|||||
NPAs & loans 90 days past due to total loans & foreclosed property
|
0.44
|
%
|
|
0.43
|
%
|
|
0.32
|
%
|
|
0.52
|
%
|
|
0.98
|
%
|
|||||
ALL to nonaccrual loans
|
152.28
|
%
|
|
175.73
|
%
|
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|||||
ALL to nonaccrual loans & loans 90 days past due
|
114.62
|
%
|
|
151.17
|
%
|
|
286.58
|
%
|
|
191.65
|
%
|
|
110.52
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Beginning Balance
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
|
$
|
15,035
|
|
Net customer payments
|
(9,642
|
)
|
|
(7,976
|
)
|
|
(7,159
|
)
|
|
(10,240
|
)
|
|
(8,053
|
)
|
|||||
Additions
|
21,441
|
|
|
27,985
|
|
|
13,171
|
|
|
12,517
|
|
|
20,961
|
|
|||||
Charge-offs
|
(4,148
|
)
|
|
(6,782
|
)
|
|
(4,418
|
)
|
|
(7,064
|
)
|
|
(2,732
|
)
|
|||||
Loans returning to accruing status
|
(2,021
|
)
|
|
(609
|
)
|
|
(2,390
|
)
|
|
(1,497
|
)
|
|
(3,492
|
)
|
|||||
Transfers to foreclosed property
|
(420
|
)
|
|
(848
|
)
|
|
(1,167
|
)
|
|
(1,035
|
)
|
|
(2,464
|
)
|
|||||
Ending Balance
|
$
|
26,953
|
|
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
Nonaccrual loans to total loans
|
0.28
|
%
|
|
0.30
|
%
|
|
0.16
|
%
|
|
0.21
|
%
|
|
0.36
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Construction and Land Development
|
$
|
8,018
|
|
|
$
|
5,610
|
|
|
$
|
2,037
|
|
|
$
|
2,113
|
|
|
$
|
3,419
|
|
Commercial Real Estate - Owner Occupied
|
3,636
|
|
|
2,708
|
|
|
794
|
|
|
3,904
|
|
|
1,060
|
|
|||||
Commercial Real Estate - Non-owner Occupied
|
1,789
|
|
|
2,992
|
|
|
—
|
|
|
100
|
|
|
5,903
|
|
|||||
Commercial & Industrial
|
1,524
|
|
|
316
|
|
|
124
|
|
|
429
|
|
|
2,754
|
|
|||||
Residential 1-4 Family - Commercial
|
2,481
|
|
|
1,085
|
|
|
1,071
|
|
|
1,566
|
|
|
2,660
|
|
|||||
Residential 1-4 Family - Mortgage
|
7,276
|
|
|
6,269
|
|
|
4,208
|
|
|
1,997
|
|
|
2,484
|
|
|||||
Auto
|
576
|
|
|
413
|
|
|
169
|
|
|
192
|
|
|
—
|
|
|||||
HELOC
|
1,518
|
|
|
2,075
|
|
|
1,279
|
|
|
1,348
|
|
|
604
|
|
|||||
Consumer and all other
|
135
|
|
|
275
|
|
|
291
|
|
|
287
|
|
|
371
|
|
|||||
Total
|
$
|
26,953
|
|
|
$
|
21,743
|
|
|
$
|
9,973
|
|
|
$
|
11,936
|
|
|
$
|
19,255
|
|
Coverage Ratio
|
152.28
|
%
|
|
175.73
|
%
|
|
372.93
|
%
|
|
285.25
|
%
|
|
168.18
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Beginning Balance
|
$
|
5,253
|
|
|
$
|
7,430
|
|
|
$
|
11,994
|
|
|
$
|
23,058
|
|
|
$
|
34,116
|
|
Additions of foreclosed property
|
924
|
|
|
1,078
|
|
|
2,062
|
|
|
2,378
|
|
|
5,991
|
|
|||||
Acquisitions of foreclosed property
(1)
|
4,042
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,319
|
|
|||||
Capitalized Improvements
|
—
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|
686
|
|
|||||
Valuation Adjustments
|
(1,324
|
)
|
|
(1,552
|
)
|
|
(1,017
|
)
|
|
(6,002
|
)
|
|
(7,646
|
)
|
|||||
Proceeds from sales
|
(2,439
|
)
|
|
(1,676
|
)
|
|
(5,707
|
)
|
|
(7,929
|
)
|
|
(13,639
|
)
|
|||||
Gains (losses) from sales
|
266
|
|
|
(27
|
)
|
|
98
|
|
|
181
|
|
|
(769
|
)
|
|||||
Ending Balance
|
$
|
6,722
|
|
|
$
|
5,253
|
|
|
$
|
7,430
|
|
|
$
|
11,994
|
|
|
$
|
23,058
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Land
|
$
|
2,306
|
|
|
$
|
2,755
|
|
|
$
|
3,328
|
|
|
$
|
5,731
|
|
|
$
|
8,726
|
|
Land Development
|
2,809
|
|
|
1,045
|
|
|
2,379
|
|
|
2,918
|
|
|
7,162
|
|
|||||
Residential Real Estate
|
1,204
|
|
|
1,314
|
|
|
1,549
|
|
|
2,601
|
|
|
5,736
|
|
|||||
Commercial Real Estate
|
403
|
|
|
139
|
|
|
174
|
|
|
744
|
|
|
1,434
|
|
|||||
Total
|
$
|
6,722
|
|
|
$
|
5,253
|
|
|
$
|
7,430
|
|
|
$
|
11,994
|
|
|
$
|
23,058
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Balance, beginning of year
|
$
|
38,208
|
|
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
|
$
|
30,135
|
|
Loans charged-off:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
833
|
|
|
2,277
|
|
|
1,920
|
|
|
2,361
|
|
|
1,557
|
|
|||||
Real estate
|
5,042
|
|
|
5,486
|
|
|
4,125
|
|
|
7,158
|
|
|
5,855
|
|
|||||
Consumer
|
10,355
|
|
|
5,547
|
|
|
2,510
|
|
|
2,016
|
|
|
1,608
|
|
|||||
Total loans charged-off
|
16,230
|
|
|
13,310
|
|
|
8,555
|
|
|
11,535
|
|
|
9,020
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial
|
534
|
|
|
483
|
|
|
483
|
|
|
958
|
|
|
316
|
|
|||||
Real estate
|
2,461
|
|
|
1,130
|
|
|
1,781
|
|
|
2,154
|
|
|
2,314
|
|
|||||
Consumer
|
2,173
|
|
|
1,642
|
|
|
761
|
|
|
815
|
|
|
839
|
|
|||||
Total recoveries
|
5,168
|
|
|
3,255
|
|
|
3,025
|
|
|
3,927
|
|
|
3,469
|
|
|||||
Net charge-offs
|
11,062
|
|
|
10,055
|
|
|
5,530
|
|
|
7,608
|
|
|
5,551
|
|
|||||
Provision for loan losses - continuing operations
|
14,084
|
|
|
11,117
|
|
|
8,458
|
|
|
9,150
|
|
|
7,800
|
|
|||||
Provision for loan losses - discontinued operations
|
(185
|
)
|
|
(46
|
)
|
|
217
|
|
|
121
|
|
|
—
|
|
|||||
Balance, end of year
|
$
|
41,045
|
|
|
$
|
38,208
|
|
|
$
|
37,192
|
|
|
$
|
34,047
|
|
|
$
|
32,384
|
|
ALL to loans
|
0.42
|
%
|
|
0.54
|
%
|
|
0.59
|
%
|
|
0.60
|
%
|
|
0.61
|
%
|
|||||
Net charge-offs to average loans
|
0.12
|
%
|
|
0.15
|
%
|
|
0.09
|
%
|
|
0.14
|
%
|
|
0.11
|
%
|
|||||
Provision to average loans
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
0.17
|
%
|
|
0.15
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
|
$
|
|
%
(1)
|
|
$
|
|
%
(1)
|
|
$
|
|
%
(1)
|
|
$
|
|
%
(1)
|
|
$
|
|
%
(1)
|
|||||||||||||||
Commercial
|
$
|
7,636
|
|
|
13.6
|
%
|
|
$
|
4,552
|
|
|
8.6
|
%
|
|
$
|
4,627
|
|
|
8.7
|
%
|
|
$
|
3,163
|
|
|
7.7
|
%
|
|
$
|
2,610
|
|
|
7.0
|
%
|
Real estate
|
24,821
|
|
|
76.9
|
%
|
|
28,597
|
|
|
78.4
|
%
|
|
29,441
|
|
|
80.3
|
%
|
|
27,537
|
|
|
82.8
|
%
|
|
26,408
|
|
|
84.4
|
%
|
|||||
Consumer
|
8,588
|
|
|
9.5
|
%
|
|
5,059
|
|
|
13.0
|
%
|
|
3,124
|
|
|
11.0
|
%
|
|
3,347
|
|
|
9.5
|
%
|
|
3,366
|
|
|
8.6
|
%
|
|||||
Total
|
$
|
41,045
|
|
|
100.0
|
%
|
|
$
|
38,208
|
|
|
100.0
|
%
|
|
$
|
37,192
|
|
|
100.0
|
%
|
|
$
|
34,047
|
|
|
100.0
|
%
|
|
$
|
32,384
|
|
|
100.0
|
%
|
|
2018
|
|
2017
|
||||||||||
Deposits:
|
Amount
|
|
% of total
deposits
|
|
Amount
|
|
% of total
deposits
|
||||||
Non-interest bearing
|
$
|
2,094,607
|
|
|
21.0
|
%
|
|
$
|
1,502,208
|
|
|
21.5
|
%
|
NOW accounts
|
2,288,523
|
|
|
23.0
|
%
|
|
1,929,416
|
|
|
27.6
|
%
|
||
Money market accounts
|
2,875,301
|
|
|
28.8
|
%
|
|
1,685,174
|
|
|
24.1
|
%
|
||
Savings accounts
|
622,823
|
|
|
6.2
|
%
|
|
546,274
|
|
|
7.8
|
%
|
||
Time deposits of $100,000 and over
(1)
|
1,067,181
|
|
|
10.7
|
%
|
|
624,112
|
|
|
8.9
|
%
|
||
Other time deposits
|
1,022,525
|
|
|
10.3
|
%
|
|
704,534
|
|
|
10.1
|
%
|
||
Total Deposits
|
$
|
9,970,960
|
|
|
100.0
|
%
|
|
$
|
6,991,718
|
|
|
100.0
|
%
|
|
Amount
|
||
Within 3 Months
|
$
|
433,492
|
|
3 - 12 Months
|
764,474
|
|
|
Over 12 Months
|
891,740
|
|
|
Total
|
$
|
2,089,706
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Common equity Tier 1 capital
|
$
|
1,106,871
|
|
|
$
|
737,204
|
|
|
$
|
699,728
|
|
Tier 1 capital
|
1,236,709
|
|
|
826,979
|
|
|
790,228
|
|
|||
Tier 2 capital
|
199,002
|
|
|
186,809
|
|
|
185,917
|
|
|||
Total risk-based capital
|
1,435,711
|
|
|
1,013,788
|
|
|
976,145
|
|
|||
Risk-weighted assets
|
11,146,898
|
|
|
8,157,174
|
|
|
7,200,778
|
|
|||
|
|
|
|
|
|
||||||
Capital ratios:
|
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital ratio
|
9.93
|
%
|
|
9.04
|
%
|
|
9.72
|
%
|
|||
Tier 1 capital ratio
|
11.09
|
%
|
|
10.14
|
%
|
|
10.97
|
%
|
|||
Total capital ratio
|
12.88
|
%
|
|
12.43
|
%
|
|
13.56
|
%
|
|||
Leverage ratio (Tier 1 capital to average assets)
|
9.71
|
%
|
|
9.42
|
%
|
|
9.87
|
%
|
|||
Capital conservation buffer ratio
(1)
|
4.88
|
%
|
|
4.14
|
%
|
|
4.97
|
%
|
|||
Common equity to total assets
|
13.98
|
%
|
|
11.23
|
%
|
|
11.88
|
%
|
|||
Tangible common equity to tangible assets
(2)
|
8.84
|
%
|
|
8.14
|
%
|
|
8.41
|
%
|
|
2018
|
|
2017
|
||||
Commitments with off-balance sheet risk:
|
|
|
|
|
|
||
Commitments to extend credit
(1)
|
$
|
3,167,085
|
|
|
$
|
2,192,812
|
|
Standby letters of credit
|
167,597
|
|
|
127,435
|
|
||
Total commitments with off-balance sheet risk
|
$
|
3,334,682
|
|
|
$
|
2,320,247
|
|
|
Total
|
|
Less than 1
year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5
years
|
||||||||||
Long-term debt
(1)
|
$
|
543,500
|
|
|
$
|
25,000
|
|
|
$
|
20,000
|
|
|
$
|
140,000
|
|
|
$
|
358,500
|
|
Trust preferred capital notes
(1)
|
150,004
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150,004
|
|
|||||
Operating leases
|
61,770
|
|
|
11,805
|
|
|
18,334
|
|
|
13,302
|
|
|
18,329
|
|
|||||
Other short-term borrowings
|
1,048,600
|
|
|
1,048,600
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Repurchase agreements
|
39,197
|
|
|
39,197
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
1,843,071
|
|
|
$
|
1,124,602
|
|
|
$
|
38,334
|
|
|
$
|
153,302
|
|
|
$
|
526,833
|
|
|
Change In Net Interest Income
December 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||
|
%
|
|
$
|
|
%
|
|
$
|
||||
Change in Yield Curve:
|
|
|
|
|
|
|
|
|
|
|
|
+300 bps
|
8.58
|
|
|
38,997
|
|
|
5.34
|
|
|
16,691
|
|
+200 bps
|
6.26
|
|
|
28,464
|
|
|
3.81
|
|
|
11,905
|
|
+100 bps
|
3.24
|
|
|
14,744
|
|
|
2.11
|
|
|
6,597
|
|
Most likely rate scenario
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
-100 bps
|
(4.38
|
)
|
|
(19,892
|
)
|
|
(2.70
|
)
|
|
(8,430
|
)
|
-200 bps
|
(10.03
|
)
|
|
(45,583
|
)
|
|
(6.78
|
)
|
|
(21,181
|
)
|
|
Change In Economic Value of Equity
December 31,
|
||||||||||
|
2018
|
|
2017
|
||||||||
|
%
|
|
$
|
|
%
|
|
$
|
||||
Change in Yield Curve:
|
|
|
|
|
|
|
|
|
|
|
|
+300 bps
|
(5.44
|
)
|
|
(142,691
|
)
|
|
(2.69
|
)
|
|
(40,737
|
)
|
+200 bps
|
(3.26
|
)
|
|
(85,657
|
)
|
|
(1.26
|
)
|
|
(19,010
|
)
|
+100 bps
|
(1.35
|
)
|
|
(35,425
|
)
|
|
(0.19
|
)
|
|
(2,889
|
)
|
Most likely rate scenario
|
|
|
|
|
|
|
|
||||
-100 bps
|
(0.90
|
)
|
|
(23,496
|
)
|
|
(2.23
|
)
|
|
(33,689
|
)
|
-200 bps
|
(4.80
|
)
|
|
(125,969
|
)
|
|
(6.34
|
)
|
|
(96,010
|
)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Interest Income (FTE)
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and Dividend Income (GAAP)
|
$
|
528,788
|
|
|
$
|
329,044
|
|
|
$
|
293,736
|
|
|
$
|
275,387
|
|
|
$
|
273,140
|
|
FTE adjustment
|
8,195
|
|
|
11,767
|
|
|
11,428
|
|
|
10,463
|
|
|
9,932
|
|
|||||
Interest and Dividend Income FTE (non-GAAP)
|
$
|
536,983
|
|
|
$
|
340,811
|
|
|
$
|
305,164
|
|
|
$
|
285,850
|
|
|
$
|
283,072
|
|
Average earning assets
|
$
|
11,620,893
|
|
|
$
|
8,016,311
|
|
|
$
|
7,249,090
|
|
|
$
|
6,713,239
|
|
|
$
|
6,437,681
|
|
Yield on interest-earning assets (GAAP)
|
4.55
|
%
|
|
4.10
|
%
|
|
4.05
|
%
|
|
4.10
|
%
|
|
4.24
|
%
|
|||||
Yield on interest-earning assets (FTE) (non-GAAP)
|
4.62
|
%
|
|
4.25
|
%
|
|
4.21
|
%
|
|
4.26
|
%
|
|
4.40
|
%
|
|||||
Net Interest Income (FTE)
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income (GAAP)
|
$
|
426,691
|
|
|
$
|
279,007
|
|
|
$
|
263,966
|
|
|
$
|
250,450
|
|
|
$
|
253,213
|
|
FTE adjustment
|
8,195
|
|
|
11,767
|
|
|
11,428
|
|
|
10,463
|
|
|
9,932
|
|
|||||
Net Interest Income FTE (non-GAAP)
|
$
|
434,886
|
|
|
$
|
290,774
|
|
|
$
|
275,394
|
|
|
$
|
260,913
|
|
|
$
|
263,145
|
|
Average earning assets
|
$
|
11,620,893
|
|
|
$
|
8,016,311
|
|
|
$
|
7,249,090
|
|
|
$
|
6,713,239
|
|
|
$
|
6,437,681
|
|
Net interest margin (GAAP)
|
3.67
|
%
|
|
3.48
|
%
|
|
3.64
|
%
|
|
3.73
|
%
|
|
3.93
|
%
|
|||||
Net interest margin (FTE) (non-GAAP)
|
3.74
|
%
|
|
3.63
|
%
|
|
3.80
|
%
|
|
3.89
|
%
|
|
4.09
|
%
|
|||||
Tangible Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending Assets (GAAP)
|
$
|
13,765,599
|
|
|
$
|
9,315,179
|
|
|
$
|
8,426,793
|
|
|
$
|
7,693,291
|
|
|
$
|
7,358,643
|
|
Less: Ending goodwill
|
727,168
|
|
|
298,528
|
|
|
298,191
|
|
|
293,522
|
|
|
293,522
|
|
|||||
Less: Ending amortizable intangibles
|
48,685
|
|
|
14,803
|
|
|
20,602
|
|
|
23,310
|
|
|
31,755
|
|
|||||
Ending tangible assets (non-GAAP)
|
$
|
12,989,746
|
|
|
$
|
9,001,848
|
|
|
$
|
8,108,000
|
|
|
$
|
7,376,459
|
|
|
$
|
7,033,366
|
|
Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ending equity (GAAP)
|
$
|
1,924,581
|
|
|
$
|
1,046,329
|
|
|
$
|
1,001,032
|
|
|
$
|
995,367
|
|
|
$
|
977,169
|
|
Less: Ending goodwill
|
727,168
|
|
|
298,528
|
|
|
298,191
|
|
|
293,522
|
|
|
293,522
|
|
|||||
Less: Ending amortizable intangibles
|
48,685
|
|
|
14,803
|
|
|
20,602
|
|
|
23,310
|
|
|
31,755
|
|
|||||
Ending tangible common equity (non-GAAP)
|
$
|
1,148,728
|
|
|
$
|
732,998
|
|
|
$
|
682,239
|
|
|
$
|
678,535
|
|
|
$
|
651,892
|
|
Average equity (GAAP)
|
$
|
1,863,216
|
|
|
$
|
1,030,847
|
|
|
$
|
994,785
|
|
|
$
|
991,977
|
|
|
$
|
983,727
|
|
Less: Average goodwill
|
725,597
|
|
|
298,240
|
|
|
296,087
|
|
|
293,522
|
|
|
296,870
|
|
|||||
Less: Average amortizable intangibles
|
51,347
|
|
|
17,482
|
|
|
22,044
|
|
|
27,384
|
|
|
36,625
|
|
|||||
Average tangible common equity (non-GAAP)
|
$
|
1,086,272
|
|
|
$
|
715,125
|
|
|
$
|
676,654
|
|
|
$
|
671,071
|
|
|
$
|
650,232
|
|
ROE (GAAP)
|
7.85
|
%
|
|
7.07
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
5.30
|
%
|
|||||
ROTCE (non-GAAP)
|
14.40
|
%
|
|
10.75
|
%
|
|
12.14
|
%
|
|
10.81
|
%
|
|
9.00
|
%
|
|||||
Common equity to assets (GAAP)
|
13.98
|
%
|
|
11.23
|
%
|
|
11.88
|
%
|
|
12.94
|
%
|
|
13.28
|
%
|
|||||
Tangible common equity to tangible assets (non-GAAP)
|
8.84
|
%
|
|
8.14
|
%
|
|
8.41
|
%
|
|
9.20
|
%
|
|
9.27
|
%
|
|||||
Book value per share (GAAP)
|
$
|
29.34
|
|
|
$
|
24.10
|
|
|
$
|
23.15
|
|
|
$
|
22.38
|
|
|
$
|
21.73
|
|
Tangible book value per share (non-GAAP)
|
$
|
17.51
|
|
|
$
|
16.88
|
|
|
$
|
15.78
|
|
|
$
|
15.25
|
|
|
$
|
14.50
|
|
Operating Earnings & EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net Income (GAAP)
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Plus: Merger-related costs, net of tax
|
32,065
|
|
|
4,405
|
|
|
—
|
|
|
—
|
|
|
13,724
|
|
|||||
Plus: Nonrecurring tax expenses
|
—
|
|
|
6,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net operating earnings (non-GAAP)
|
$
|
178,313
|
|
|
$
|
83,578
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
65,888
|
|
Weighted average common shares outstanding, diluted
|
65,908,573
|
|
|
43,779,744
|
|
|
43,890,271
|
|
|
45,138,891
|
|
|
46,130,895
|
|
|||||
Earnings per common share, diluted (GAAP)
|
$
|
2.22
|
|
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.13
|
|
Operating earnings per common share, diluted (non-GAAP)
|
$
|
2.71
|
|
|
$
|
1.91
|
|
|
$
|
1.77
|
|
|
$
|
1.49
|
|
|
$
|
1.43
|
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Operating Performance Metrics
|
|
|
|
|
|
|
|
|
|
||||||||||
Average assets (GAAP)
|
$
|
13,181,609
|
|
|
$
|
8,820,142
|
|
|
$
|
8,046,305
|
|
|
$
|
7,492,895
|
|
|
$
|
7,250,494
|
|
ROA (GAAP)
|
1.11
|
%
|
|
0.83
|
%
|
|
0.96
|
%
|
|
0.90
|
%
|
|
0.72
|
%
|
|||||
Operating ROA (non-GAAP)
|
1.35
|
%
|
|
0.95
|
%
|
|
0.96
|
%
|
|
0.90
|
%
|
|
0.91
|
%
|
|||||
Average common equity (GAAP)
|
$
|
1,863,216
|
|
|
$
|
1,030,847
|
|
|
$
|
994,785
|
|
|
$
|
991,977
|
|
|
$
|
983,727
|
|
ROE (GAAP)
|
7.85
|
%
|
|
7.07
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
5.30
|
%
|
|||||
Operating ROE (non-GAAP)
|
9.57
|
%
|
|
8.11
|
%
|
|
7.79
|
%
|
|
6.76
|
%
|
|
6.70
|
%
|
|||||
Average tangible common equity (non-GAAP)
|
$
|
1,086,272
|
|
|
$
|
715,125
|
|
|
$
|
676,654
|
|
|
$
|
671,071
|
|
|
$
|
650,232
|
|
ROTCE (non-GAAP)
|
14.40
|
%
|
|
10.75
|
%
|
|
12.14
|
%
|
|
10.81
|
%
|
|
9.00
|
%
|
|||||
Operating ROTCE (non-GAAP)
|
17.35
|
%
|
|
12.24
|
%
|
|
12.14
|
%
|
|
10.81
|
%
|
|
11.11
|
%
|
|||||
Operating Noninterest Expense & Efficiency Ratio
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest expense (GAAP)
|
$
|
337,767
|
|
|
$
|
225,668
|
|
|
$
|
213,090
|
|
|
$
|
206,310
|
|
|
$
|
222,419
|
|
Less: Merger-related costs
|
39,728
|
|
|
5,393
|
|
|
—
|
|
|
—
|
|
|
20,345
|
|
|||||
Operating noninterest expense (non-GAAP)
|
$
|
298,039
|
|
|
$
|
220,275
|
|
|
$
|
213,090
|
|
|
$
|
206,310
|
|
|
$
|
202,074
|
|
Net interest income (GAAP)
|
$
|
426,691
|
|
|
$
|
279,007
|
|
|
$
|
263,966
|
|
|
$
|
250,450
|
|
|
$
|
253,213
|
|
Net interest income (FTE) (non-GAAP)
|
434,886
|
|
|
290,774
|
|
|
275,394
|
|
|
260,913
|
|
|
263,145
|
|
|||||
Noninterest income (GAAP)
|
104,241
|
|
|
62,429
|
|
|
59,849
|
|
|
54,993
|
|
|
51,220
|
|
|||||
Efficiency Ratio (GAAP)
|
63.62
|
%
|
|
66.09
|
%
|
|
65.81
|
%
|
|
67.54
|
%
|
|
73.06
|
%
|
|||||
Operating efficiency ratio (FTE) (non-GAAP)
|
55.28
|
%
|
|
62.36
|
%
|
|
63.56
|
%
|
|
65.31
|
%
|
|
64.28
|
%
|
|||||
ROTCE
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income (GAAP)
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
52,164
|
|
Plus: Amortization of intangibles, tax effected
|
10,143
|
|
|
3,957
|
|
|
4,687
|
|
|
5,489
|
|
|
6,367
|
|
|||||
Net Income before amortization of intangibles (non-GAAP)
|
$
|
156,391
|
|
|
$
|
76,880
|
|
|
$
|
82,163
|
|
|
$
|
72,568
|
|
|
$
|
58,531
|
|
Average tangible common equity (non-GAAP)
|
$
|
1,086,272
|
|
|
$
|
715,125
|
|
|
$
|
676,654
|
|
|
$
|
671,071
|
|
|
$
|
650,232
|
|
ROTCE (non-GAAP)
|
14.40
|
%
|
|
10.75
|
%
|
|
12.14
|
%
|
|
10.81
|
%
|
|
9.00
|
%
|
|||||
Operating ROTCE
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Net Income (GAAP)
|
$
|
178,313
|
|
|
$
|
83,578
|
|
|
$
|
77,476
|
|
|
$
|
67,079
|
|
|
$
|
65,888
|
|
Plus: Amortization of intangibles, tax effected
|
10,143
|
|
|
3,957
|
|
|
4,687
|
|
|
5,489
|
|
|
6,367
|
|
|||||
Net Income before amortization of intangibles (non-GAAP)
|
$
|
188,456
|
|
|
$
|
87,535
|
|
|
$
|
82,163
|
|
|
$
|
72,568
|
|
|
$
|
72,255
|
|
Average tangible common equity (non-GAAP)
|
$
|
1,086,272
|
|
|
$
|
715,125
|
|
|
$
|
676,654
|
|
|
$
|
671,071
|
|
|
$
|
650,232
|
|
Operating ROTCE (non-GAAP)
|
17.35
|
%
|
|
12.24
|
%
|
|
12.14
|
%
|
|
10.81
|
%
|
|
11.11
|
%
|
|
Quarter
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
For the Year 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income
|
$
|
124,379
|
|
|
$
|
132,409
|
|
|
$
|
131,363
|
|
|
$
|
140,636
|
|
Interest expense
|
20,907
|
|
|
24,241
|
|
|
25,400
|
|
|
31,547
|
|
||||
Net interest income
|
103,472
|
|
|
108,168
|
|
|
105,963
|
|
|
109,089
|
|
||||
Provision for credit losses
|
3,524
|
|
|
2,147
|
|
|
3,340
|
|
|
4,725
|
|
||||
Net interest income after provision for credit losses
|
99,948
|
|
|
106,021
|
|
|
102,623
|
|
|
104,364
|
|
||||
Noninterest income
|
20,267
|
|
|
40,597
|
|
|
19,887
|
|
|
23,487
|
|
||||
Noninterest expenses
|
101,743
|
|
|
85,140
|
|
|
76,349
|
|
|
74,533
|
|
||||
Income before income taxes
|
18,472
|
|
|
61,478
|
|
|
46,161
|
|
|
53,318
|
|
||||
Income tax expense
|
1,897
|
|
|
11,678
|
|
|
7,399
|
|
|
9,041
|
|
||||
Income from continuing operations
|
$
|
16,575
|
|
|
$
|
49,800
|
|
|
$
|
38,762
|
|
|
44,277
|
|
|
Discontinued operations, net of tax
|
64
|
|
|
(2,473
|
)
|
|
(565
|
)
|
|
(192
|
)
|
||||
Net income
|
$
|
16,639
|
|
|
$
|
47,327
|
|
|
$
|
38,197
|
|
|
$
|
44,085
|
|
Earnings per share, basic
|
$
|
0.25
|
|
|
$
|
0.72
|
|
|
$
|
0.58
|
|
|
$
|
0.67
|
|
Earnings per share, diluted
|
$
|
0.25
|
|
|
$
|
0.72
|
|
|
$
|
0.58
|
|
|
$
|
0.67
|
|
Basic weighted average number of common shares outstanding
|
65,554,630
|
|
|
65,919,055
|
|
|
65,974,702
|
|
|
65,982,304
|
|
||||
Diluted weighted average number of common shares outstanding
|
65,636,262
|
|
|
65,965,577
|
|
|
66,013,152
|
|
|
66,013,326
|
|
||||
For the Year 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and dividend income
|
$
|
76,438
|
|
|
$
|
80,926
|
|
|
$
|
84,499
|
|
|
$
|
87,179
|
|
Interest expense
|
10,073
|
|
|
12,222
|
|
|
13,652
|
|
|
14,089
|
|
||||
Net interest income
|
66,365
|
|
|
68,704
|
|
|
70,847
|
|
|
73,090
|
|
||||
Provision for credit losses
|
2,104
|
|
|
2,184
|
|
|
3,056
|
|
|
3,458
|
|
||||
Net interest income after provision for credit losses
|
64,261
|
|
|
66,520
|
|
|
67,791
|
|
|
69,632
|
|
||||
Noninterest income
|
16,813
|
|
|
15,262
|
|
|
15,230
|
|
|
15,124
|
|
||||
Noninterest expenses
|
55,092
|
|
|
57,575
|
|
|
55,204
|
|
|
57,796
|
|
||||
Income before income taxes
|
25,982
|
|
|
24,207
|
|
|
27,817
|
|
|
26,960
|
|
||||
Income tax expense
|
6,791
|
|
|
6,725
|
|
|
7,397
|
|
|
11,867
|
|
||||
Income from continuing operations
|
$
|
19,191
|
|
|
$
|
17,482
|
|
|
$
|
20,420
|
|
|
15,093
|
|
|
Discontinued operations, net of tax
|
$
|
(67
|
)
|
|
474
|
|
|
238
|
|
|
92
|
|
|||
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
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||
CONSOLIDATED BALANCE SHEETS
|
|||||||
AS OF DECEMBER 31, 2018 AND 2017
|
|||||||
(Dollars in thousands, except share data)
|
|||||||
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents:
|
|
|
|
|
|
||
Cash and due from banks
|
$
|
166,927
|
|
|
$
|
117,586
|
|
Interest-bearing deposits in other banks
|
94,056
|
|
|
81,291
|
|
||
Federal funds sold
|
216
|
|
|
496
|
|
||
Total cash and cash equivalents
|
261,199
|
|
|
199,373
|
|
||
Securities available for sale, at fair value
|
1,774,821
|
|
|
974,222
|
|
||
Securities held to maturity, at carrying value
|
492,272
|
|
|
199,639
|
|
||
Restricted stock, at cost
|
124,602
|
|
|
75,283
|
|
||
Loans held for investment, net of deferred fees
|
9,716,207
|
|
|
7,141,552
|
|
||
Less allowance for loan losses
|
41,045
|
|
|
38,208
|
|
||
Total loans held for investment, net
|
9,675,162
|
|
|
7,103,344
|
|
||
Premises and equipment, net
|
146,967
|
|
|
119,604
|
|
||
Goodwill
|
727,168
|
|
|
298,528
|
|
||
Amortizable intangibles, net
|
48,685
|
|
|
14,803
|
|
||
Bank owned life insurance
|
263,034
|
|
|
182,854
|
|
||
Other assets
|
250,210
|
|
|
102,871
|
|
||
Assets of discontinued operations
|
1,479
|
|
|
44,658
|
|
||
Total assets
|
$
|
13,765,599
|
|
|
$
|
9,315,179
|
|
LIABILITIES
|
|
|
|
|
|
||
Noninterest-bearing demand deposits
|
$
|
2,094,607
|
|
|
$
|
1,502,208
|
|
Interest-bearing deposits
|
7,876,353
|
|
|
5,489,510
|
|
||
Total deposits
|
9,970,960
|
|
|
6,991,718
|
|
||
Securities sold under agreements to repurchase
|
39,197
|
|
|
49,152
|
|
||
Other short-term borrowings
|
1,048,600
|
|
|
745,000
|
|
||
Long-term borrowings
|
668,481
|
|
|
425,262
|
|
||
Other liabilities
|
112,093
|
|
|
54,008
|
|
||
Liabilities of discontinued operations
|
1,687
|
|
|
3,710
|
|
||
Total liabilities
|
11,841,018
|
|
|
8,268,850
|
|
||
Commitments and contingencies (Note 9)
|
|
|
|
|
|
||
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Common stock, $1.33 par value, shares authorized 100,000,000; issued and outstanding, 65,977,149 shares and 43,743,318 shares, respectively.
|
87,250
|
|
|
57,744
|
|
||
Additional paid-in capital
|
1,380,259
|
|
|
610,001
|
|
||
Retained earnings
|
467,345
|
|
|
379,468
|
|
||
Accumulated other comprehensive income (loss)
|
(10,273
|
)
|
|
(884
|
)
|
||
Total stockholders' equity
|
1,924,581
|
|
|
1,046,329
|
|
||
Total liabilities and stockholders' equity
|
$
|
13,765,599
|
|
|
$
|
9,315,179
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016
|
|||||||||||
(Dollars in thousands, except per share amounts)
|
|||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|||
Interest and fees on loans
|
$
|
469,856
|
|
|
$
|
293,996
|
|
|
$
|
261,383
|
|
Interest on deposits in other banks
|
2,125
|
|
|
539
|
|
|
244
|
|
|||
Interest and dividends on securities:
|
|
|
|
|
|
|
|
|
|||
Taxable
|
36,851
|
|
|
20,305
|
|
|
18,319
|
|
|||
Nontaxable
|
19,956
|
|
|
14,204
|
|
|
13,790
|
|
|||
Total interest and dividend income
|
528,788
|
|
|
329,044
|
|
|
293,736
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|||
Interest on deposits
|
59,336
|
|
|
26,106
|
|
|
17,731
|
|
|||
Interest on short-term borrowings
|
18,458
|
|
|
6,035
|
|
|
2,894
|
|
|||
Interest on long-term borrowings
|
24,303
|
|
|
17,896
|
|
|
9,145
|
|
|||
Total interest expense
|
102,097
|
|
|
50,037
|
|
|
29,770
|
|
|||
Net interest income
|
426,691
|
|
|
279,007
|
|
|
263,966
|
|
|||
Provision for credit losses
|
13,736
|
|
|
10,802
|
|
|
8,883
|
|
|||
Net interest income after provision for credit losses
|
412,955
|
|
|
268,205
|
|
|
255,083
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
|
|
|||
Service charges on deposit accounts
|
25,439
|
|
|
18,850
|
|
|
18,168
|
|
|||
Other service charges, commissions and fees
|
5,603
|
|
|
4,593
|
|
|
4,445
|
|
|||
Interchange fees, net
|
18,803
|
|
|
14,974
|
|
|
14,058
|
|
|||
Fiduciary and asset management fees
|
16,150
|
|
|
11,245
|
|
|
10,199
|
|
|||
Gains (losses) on securities transactions, net
|
383
|
|
|
800
|
|
|
205
|
|
|||
Bank owned life insurance income
|
7,198
|
|
|
6,144
|
|
|
5,513
|
|
|||
Loan-related interest rate swap fees
|
3,554
|
|
|
3,051
|
|
|
4,254
|
|
|||
Gain on Shore Premier sale
|
19,966
|
|
|
—
|
|
|
—
|
|
|||
Other operating income
|
7,145
|
|
|
2,772
|
|
|
3,007
|
|
|||
Total noninterest income
|
104,241
|
|
|
62,429
|
|
|
59,849
|
|
|||
Noninterest expenses:
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits
|
159,378
|
|
|
115,968
|
|
|
110,521
|
|
|||
Occupancy expenses
|
25,368
|
|
|
18,558
|
|
|
18,502
|
|
|||
Furniture and equipment expenses
|
11,991
|
|
|
10,047
|
|
|
9,814
|
|
|||
Printing, postage, and supplies
|
4,650
|
|
|
4,901
|
|
|
4,610
|
|
|||
Communications expense
|
3,898
|
|
|
3,304
|
|
|
3,744
|
|
|||
Technology and data processing
|
18,397
|
|
|
16,132
|
|
|
15,032
|
|
|||
Professional services
|
10,283
|
|
|
7,767
|
|
|
8,051
|
|
|||
Marketing and advertising expense
|
10,043
|
|
|
7,795
|
|
|
7,756
|
|
|||
FDIC assessment premiums and other insurance
|
6,644
|
|
|
4,048
|
|
|
5,406
|
|
|||
Other taxes
|
11,542
|
|
|
8,087
|
|
|
5,448
|
|
|||
Loan-related expenses
|
7,206
|
|
|
4,733
|
|
|
4,168
|
|
|||
OREO and credit-related expenses
|
4,131
|
|
|
3,764
|
|
|
2,600
|
|
|||
Amortization of intangible assets
|
12,839
|
|
|
6,088
|
|
|
7,210
|
|
|||
Training and other personnel costs
|
4,259
|
|
|
3,843
|
|
|
3,359
|
|
|||
Merger-related costs
|
39,728
|
|
|
5,393
|
|
|
—
|
|
|||
Other expenses
|
7,410
|
|
|
5,240
|
|
|
6,869
|
|
|||
Total noninterest expenses
|
337,767
|
|
|
225,668
|
|
|
213,090
|
|
|||
Income from continuing operations before income taxes
|
179,429
|
|
|
104,966
|
|
|
101,842
|
|
|||
Income tax expense
|
30,016
|
|
|
32,790
|
|
|
25,944
|
|
|||
Income from continuing operations
|
149,413
|
|
|
72,176
|
|
|
75,898
|
|
|||
Discontinued operations:
|
|
|
|
|
|
||||||
Income (loss) from operations of discontinued mortgage segment
|
(4,280
|
)
|
|
1,344
|
|
|
2,412
|
|
|||
Income tax expense (benefit)
|
(1,115
|
)
|
|
597
|
|
|
834
|
|
|||
Income (loss) on discontinued operations
|
(3,165
|
)
|
|
747
|
|
|
1,578
|
|
|||
Net income
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
Basic earnings per common share
|
$
|
2.22
|
|
|
$
|
1.67
|
|
|
$
|
1.77
|
|
Diluted earnings per common share
|
$
|
2.22
|
|
|
$
|
1.67
|
|
|
$
|
1.77
|
|
Dividends declared per common share
|
$
|
0.88
|
|
|
$
|
0.81
|
|
|
$
|
0.77
|
|
Basic weighted average number of common shares outstanding
|
65,859,165
|
|
|
43,698,897
|
|
|
43,784,193
|
|
|||
Diluted weighted average number of common shares outstanding
|
65,908,573
|
|
|
43,779,744
|
|
|
43,890,271
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|||
Change in fair value of cash flow hedges
|
1,087
|
|
|
(44
|
)
|
|
270
|
|
|||
Reclassification adjustment for losses included in net income (net of tax, $259, $464, and $274 for the years ended December 31, 2018, 2017, and 2016, respectively)
(1)
|
975
|
|
|
862
|
|
|
508
|
|
|||
AFS securities:
|
|
|
|
|
|
|
|
|
|||
Unrealized holding gains (losses) arising during period (net of tax, $2,847, $1,580, and $4,408 for the years ended December 31, 2018, 2017, and 2016, respectively)
|
(10,711
|
)
|
|
2,936
|
|
|
(8,186
|
)
|
|||
Reclassification adjustment for gains included in net income (net of tax, $95, $280, and $72 for the years ended December 31, 2018, 2017, and 2016, respectively)
(2)
|
(362
|
)
|
|
(520
|
)
|
|
(133
|
)
|
|||
HTM securities:
|
|
|
|
|
|
|
|
|
|||
Reclassification adjustment for accretion of unrealized gain on AFS securities transferred to HTM (net of tax, $109, $362, and $568 for the years ended December 31, 2018, 2017 and 2016, respectively)
(3)
|
(408
|
)
|
|
(672
|
)
|
|
(1,055
|
)
|
|||
Bank owned life insurance:
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) arising during period
|
—
|
|
|
—
|
|
|
(1,728
|
)
|
|||
Reclassification adjustment for losses included in net income
(4)
|
76
|
|
|
363
|
|
|
263
|
|
|||
Other comprehensive income (loss)
|
(9,343
|
)
|
|
2,925
|
|
|
(10,061
|
)
|
|||
Comprehensive income
|
$
|
136,905
|
|
|
$
|
75,848
|
|
|
$
|
67,415
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
|
|||||||||||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016
|
|||||||||||||||||||
(Dollars in thousands, except share amounts)
|
|||||||||||||||||||
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
||||||||||
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
|
|
|||||
Net income - 2018
|
|
|
|
|
|
|
146,248
|
|
|
|
|
|
146,248
|
|
|||||
Other comprehensive income (net of taxes of $2,792)
|
|
|
|
|
|
|
|
|
|
(9,343
|
)
|
|
(9,343
|
)
|
|||||
Issuance of common stock in regard to acquisitions (21,922,077 shares)
(1)
|
29,156
|
|
|
765,653
|
|
|
|
|
|
|
|
|
794,809
|
|
|||||
Dividends on common stock ($0.88 per share)
|
|
|
|
|
|
|
(58,001
|
)
|
|
|
|
|
(58,001
|
)
|
|||||
Issuance of common stock under Equity Compensation Plans (121,438 shares)
|
162
|
|
|
2,185
|
|
|
|
|
|
|
|
|
2,347
|
|
|||||
Issuance of common stock for services rendered (23,581 shares)
|
31
|
|
|
883
|
|
|
|
|
|
|
|
|
914
|
|
|||||
Vesting of restricted stock, including tax effects, under Equity Compensation Plans (118,058 shares)
|
157
|
|
|
(3,065
|
)
|
|
|
|
|
|
|
|
(2,908
|
)
|
|||||
Cancellation of Warrants
|
|
|
|
(1,530
|
)
|
|
|
|
|
|
|
|
(1,530
|
)
|
|||||
Impact of adoption of new guidance
|
|
|
|
|
|
|
(370
|
)
|
|
(46
|
)
|
|
(416
|
)
|
|||||
Stock-based compensation expense
|
|
|
|
6,132
|
|
|
|
|
|
|
|
|
6,132
|
|
|||||
Balance - December 31, 2018
|
$
|
87,250
|
|
|
$
|
1,380,259
|
|
|
$
|
467,345
|
|
|
$
|
(10,273
|
)
|
|
$
|
1,924,581
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities
(1)
:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation of premises and equipment
|
13,725
|
|
|
11,183
|
|
|
10,215
|
|
|||
Writedown of foreclosed properties and former bank premises
|
1,324
|
|
|
1,891
|
|
|
1,017
|
|
|||
Amortization, net
|
12,603
|
|
|
14,021
|
|
|
13,555
|
|
|||
Amortization (accretion) related to acquisition, net
|
(6,711
|
)
|
|
(866
|
)
|
|
1,534
|
|
|||
Provision for credit losses
|
13,551
|
|
|
10,756
|
|
|
9,100
|
|
|||
Gains on securities transactions, net
|
(383
|
)
|
|
(800
|
)
|
|
(205
|
)
|
|||
BOLI income
|
(7,198
|
)
|
|
(5,306
|
)
|
|
(5,513
|
)
|
|||
Deferred tax expense (benefit)
|
17,821
|
|
|
5,624
|
|
|
243
|
|
|||
Decrease (increase) in loans held for sale, net
|
40,662
|
|
|
(4,175
|
)
|
|
(457
|
)
|
|||
Losses (gains) on sales of foreclosed properties and former bank premises, net
|
(220
|
)
|
|
143
|
|
|
(217
|
)
|
|||
Gain on Shore Premier sale
|
(19,966
|
)
|
|
—
|
|
|
—
|
|
|||
Goodwill impairment losses
|
864
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation expenses
|
6,132
|
|
|
4,648
|
|
|
3,270
|
|
|||
Issuance of common stock for services
|
914
|
|
|
724
|
|
|
533
|
|
|||
Net decrease (increase) in other assets
|
(26,606
|
)
|
|
(5,785
|
)
|
|
(14,810
|
)
|
|||
Net increase (decrease) in other liabilities
|
24,005
|
|
|
5,352
|
|
|
(1,898
|
)
|
|||
Net cash and cash equivalents provided by (used in) operating activities
|
216,765
|
|
|
110,333
|
|
|
93,843
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|||
Purchases of AFS securities and restricted stock
|
(1,047,611
|
)
|
|
(298,958
|
)
|
|
(259,020
|
)
|
|||
Purchases of HTM securities
|
(485,629
|
)
|
|
(7,836
|
)
|
|
(2,390
|
)
|
|||
Proceeds from sales of AFS securities and restricted stock
|
515,764
|
|
|
139,046
|
|
|
69,516
|
|
|||
Proceeds from maturities, calls and paydowns of AFS securities
|
173,597
|
|
|
115,124
|
|
|
115,670
|
|
|||
Proceeds from maturities, calls and paydowns of HTM securities
|
—
|
|
|
5,048
|
|
|
2,686
|
|
|||
Proceeds from sale of marketable equity securities
|
28,913
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of loans held for investment
|
581,324
|
|
|
—
|
|
|
—
|
|
|||
Net increase in loans held for investment
|
(704,582
|
)
|
|
(838,668
|
)
|
|
(637,207
|
)
|
|||
Net increase in premises and equipment
|
1,698
|
|
|
(9,261
|
)
|
|
(6,339
|
)
|
|||
Proceeds from BOLI settlements
|
—
|
|
|
2,497
|
|
|
—
|
|
|||
Proceeds from sales of foreclosed properties and former bank premises
|
6,295
|
|
|
2,448
|
|
|
5,837
|
|
|||
Cash paid in acquisitions
|
(14,304
|
)
|
|
(231
|
)
|
|
(4,077
|
)
|
|||
Cash acquired in acquisitions
|
174,496
|
|
|
5,038
|
|
|
207
|
|
|||
Net cash and cash equivalents provided by (used in) investing activities
|
(770,039
|
)
|
|
(885,753
|
)
|
|
(715,117
|
)
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|||
Net increase in noninterest-bearing deposits
|
81,028
|
|
|
105,093
|
|
|
20,688
|
|
|||
Net increase in interest-bearing deposits
|
351,084
|
|
|
502,018
|
|
|
394,865
|
|
|||
Net increase in short-term borrowings
|
58,645
|
|
|
217,371
|
|
|
187,804
|
|
|||
Cash paid for contingent consideration
|
(565
|
)
|
|
(3,003
|
)
|
|
—
|
|
|||
Proceeds from issuance of long-term debt
|
225,000
|
|
|
20,000
|
|
|
178,000
|
|
|||
Repayments of long-term debt
|
(40,000
|
)
|
|
(10,000
|
)
|
|
(57,500
|
)
|
|||
Cash dividends paid - common stock
|
(58,001
|
)
|
|
(35,393
|
)
|
|
(33,672
|
)
|
|||
Cancellation of warrants
|
(1,530
|
)
|
|
—
|
|
|
—
|
|
|||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
(33,177
|
)
|
|||
Issuance of common stock
|
2,347
|
|
|
1,037
|
|
|
1,429
|
|
|||
Vesting of restricted stock, net of shares held for taxes
|
(2,908
|
)
|
|
(1,567
|
)
|
|
(586
|
)
|
|||
Net cash and cash equivalents provided by financing activities
|
615,100
|
|
|
795,556
|
|
|
657,851
|
|
|||
Increase (decrease) in cash and cash equivalents
|
61,826
|
|
|
20,136
|
|
|
36,577
|
|
|||
Cash and cash equivalents at beginning of the period
|
199,373
|
|
|
179,237
|
|
|
142,660
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
261,199
|
|
|
$
|
199,373
|
|
|
$
|
179,237
|
|
UNION BANKSHARES CORPORATION AND SUBSIDIARIES
|
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||
YEARS ENDED DECEMBER 31, 2018, 2017, AND 2016
|
|||||||||||
(Dollars in thousands)
|
|||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
|
|
|
|
|||
Cash payments for:
|
|
|
|
|
|
|
|
|
|||
Interest
|
$
|
99,227
|
|
|
$
|
47,775
|
|
|
$
|
29,576
|
|
Income taxes
|
10,830
|
|
|
24,000
|
|
|
27,900
|
|
|||
|
|
|
|
|
|
||||||
Supplemental schedule of noncash investing and financing activities
|
|
|
|
|
|
|
|
|
|||
Transfers from loans (foreclosed properties) to foreclosed properties (loans)
|
493
|
|
|
910
|
|
|
1,297
|
|
|||
Stock received as consideration for sale of loans held for investment
|
28,913
|
|
|
—
|
|
|
—
|
|
|||
Securities transferred from HTM to AFS
|
187,425
|
|
|
—
|
|
|
—
|
|
|||
Issuance of common stock in exchange for net assets in acquisition
|
794,809
|
|
|
—
|
|
|
453
|
|
|||
|
|
|
|
|
|
||||||
Transactions related to acquisitions
|
|
|
|
|
|
|
|
|
|||
Assets acquired
|
3,253,328
|
|
|
293
|
|
|
4,668
|
|
|||
Liabilities assumed
(2)
|
2,873,718
|
|
|
5,437
|
|
|
4,807
|
|
QUALITATIVE FACTORS
|
||||
Portfolio
|
|
National / International
|
|
Local
|
Experience and ability of lending team
|
|
Interest rates
|
|
Gross state product
|
Pace of loan growth
|
|
Inflation
|
|
Unemployment rate
|
Footprint and expansion
|
|
Unemployment
|
|
Home prices
|
Execution of loan risk rating process
|
|
Level of economic activity
|
|
CRE prices
|
Degree of credit oversight
|
|
Political and trade uncertainty
|
|
|
Underwriting standards
|
|
Asset prices
|
|
|
Delinquency levels in portfolio
|
|
|
|
|
Charge-off trends in portfolio
|
|
|
|
|
Credit concentrations / nature and volume of the portfolio
|
|
|
|
|
Purchase Price:
|
|
|
||||
Fair value of shares of the Company's common stock issued & warrants converted
|
|
$
|
794,809
|
|
||
Cash paid for Xenith stock options
|
|
6,170
|
|
|||
Total purchase price
|
|
$
|
800,979
|
|
||
|
|
|
||||
Fair value of assets acquired:
|
|
|
||||
Cash and cash equivalents
|
$
|
174,218
|
|
|
||
AFS securities
|
295,782
|
|
|
|||
Restricted stock, at cost
|
27,569
|
|
|
|||
Net loans
|
2,453,856
|
|
|
|||
Premises and equipment
|
46,077
|
|
|
|||
OREO
|
5,250
|
|
|
|||
Core deposit intangibles
|
38,470
|
|
|
|||
Other assets
|
202,984
|
|
|
|||
Total assets
|
$
|
3,244,206
|
|
|
||
|
|
|
||||
Fair value of liabilities assumed:
|
|
|
||||
Deposits
|
$
|
2,549,683
|
|
|
||
Short-term borrowings
|
235,000
|
|
|
|||
Long-term borrowings
|
55,542
|
|
|
|||
Other liabilities
|
26,842
|
|
|
|||
Total liabilities
|
$
|
2,867,067
|
|
|
||
|
|
|
||||
Net assets acquired
|
|
$
|
377,139
|
|
||
Preliminary goodwill
|
|
$
|
423,840
|
|
Contractually required principal and interest payments
|
$
|
114,270
|
|
Nonaccretable difference
|
(19,800
|
)
|
|
Cash flows expected to be collected
|
94,470
|
|
|
Accretable difference
|
(15,206
|
)
|
|
Fair value of loans acquired with a deterioration of credit quality
|
$
|
79,264
|
|
|
For the years ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Total revenues
|
$
|
530,932
|
|
|
$
|
470,484
|
|
|
$
|
425,794
|
|
Net income
|
$
|
176,473
|
|
|
$
|
45,036
|
|
|
$
|
138,960
|
|
Earnings per share
|
$
|
2.68
|
|
|
$
|
0.68
|
|
|
$
|
2.23
|
|
|
For the years ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Loans
(1)
|
$
|
17,145
|
|
|
$
|
6,784
|
|
|
$
|
5,218
|
|
Buildings
(2)
|
228
|
|
|
—
|
|
|
—
|
|
|||
Core deposit intangible
(3)
|
(11,464
|
)
|
|
(5,603
|
)
|
|
(6,930
|
)
|
|||
Other amortizable intangibles
(3)
|
(1,375
|
)
|
|
(485
|
)
|
|
(280
|
)
|
|||
Borrowings
(4)
|
(506
|
)
|
|
170
|
|
|
458
|
|
|||
Time deposits
(5)
|
2,553
|
|
|
—
|
|
|
—
|
|
|||
Leases
(2)
|
130
|
|
|
—
|
|
|
—
|
|
|||
Net impact to income before taxes
|
$
|
6,711
|
|
|
$
|
866
|
|
|
$
|
(1,534
|
)
|
|
Amortized
|
|
Gross Unrealized
|
|
Estimated
|
||||||||||
|
Cost
|
|
Gains
|
|
(Losses)
|
|
Fair Value
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
466,588
|
|
|
$
|
3,844
|
|
|
$
|
(1,941
|
)
|
|
$
|
468,491
|
|
Corporate bonds
|
167,561
|
|
|
1,118
|
|
|
(983
|
)
|
|
167,696
|
|
||||
Mortgage-backed securities
|
1,138,034
|
|
|
4,452
|
|
|
(12,621
|
)
|
|
1,129,865
|
|
||||
Other securities
|
8,769
|
|
|
—
|
|
|
—
|
|
|
8,769
|
|
||||
Total available for sale securities
|
$
|
1,780,952
|
|
|
$
|
9,414
|
|
|
$
|
(15,545
|
)
|
|
$
|
1,774,821
|
|
|
|
|
|
|
|
|
|
||||||||
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
|
|
|
Less than 12 months
|
|
More than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
133,513
|
|
|
$
|
(1,566
|
)
|
|
$
|
10,145
|
|
|
$
|
(375
|
)
|
|
$
|
143,658
|
|
|
$
|
(1,941
|
)
|
Mortgage-backed securities
|
306,038
|
|
|
(3,480
|
)
|
|
341,400
|
|
|
(9,141
|
)
|
|
647,438
|
|
|
(12,621
|
)
|
||||||
Corporate bonds and other securities
|
35,478
|
|
|
(315
|
)
|
|
33,888
|
|
|
(668
|
)
|
|
69,366
|
|
|
(983
|
)
|
||||||
Total available for sale
|
$
|
475,029
|
|
|
$
|
(5,361
|
)
|
|
$
|
385,433
|
|
|
$
|
(10,184
|
)
|
|
$
|
860,462
|
|
|
$
|
(15,545
|
)
|
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, 2018
|
|
December 31, 2017
|
||||||||||||
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||||||
Due in one year or less
|
$
|
22,653
|
|
|
$
|
22,789
|
|
|
$
|
25,179
|
|
|
$
|
25,326
|
|
Due after one year through five years
|
191,003
|
|
|
188,999
|
|
|
145,276
|
|
|
145,980
|
|
||||
Due after five years through ten years
|
218,211
|
|
|
217,304
|
|
|
223,210
|
|
|
226,251
|
|
||||
Due after ten years
|
1,349,085
|
|
|
1,345,729
|
|
|
577,674
|
|
|
576,665
|
|
||||
Total securities available for sale
|
$
|
1,780,952
|
|
|
$
|
1,774,821
|
|
|
$
|
971,339
|
|
|
$
|
974,222
|
|
|
Carrying
|
|
Gross Unrealized
|
|
Estimated
|
||||||||||
|
Value
(1)
|
|
Gains
|
|
(Losses)
|
|
Fair Value
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
492,272
|
|
|
$
|
7,375
|
|
|
$
|
(146
|
)
|
|
$
|
499,501
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
199,639
|
|
|
$
|
4,014
|
|
|
$
|
(170
|
)
|
|
$
|
203,483
|
|
|
Less than 12 months
|
|
More than 12 months
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
43,206
|
|
|
$
|
(146
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,206
|
|
|
$
|
(146
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
18,896
|
|
|
$
|
(139
|
)
|
|
$
|
1,084
|
|
|
$
|
(31
|
)
|
|
$
|
19,980
|
|
|
$
|
(170
|
)
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||
|
Carrying
Value
(1)
|
|
Estimated
Fair Value
|
|
Carrying
Value
(1)
|
|
Estimated
Fair Value
|
||||||||
Due in one year or less
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,221
|
|
|
$
|
3,230
|
|
Due after one year through five years
|
3,893
|
|
|
3,900
|
|
|
44,289
|
|
|
44,601
|
|
||||
Due after five years through ten years
|
3,480
|
|
|
3,507
|
|
|
79,114
|
|
|
80,532
|
|
||||
Due after ten years
|
484,899
|
|
|
492,094
|
|
|
73,015
|
|
|
75,120
|
|
||||
Total securities held to maturity
|
$
|
492,272
|
|
|
$
|
499,501
|
|
|
$
|
199,639
|
|
|
$
|
203,483
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Realized gains (losses):
|
|
|
|
|
|
|
|
|
|||
Gross realized gains
|
$
|
4,221
|
|
|
$
|
1,170
|
|
|
$
|
302
|
|
Gross realized losses
|
(3,838
|
)
|
|
(370
|
)
|
|
(97
|
)
|
|||
Net realized gains
|
$
|
383
|
|
|
$
|
800
|
|
|
$
|
205
|
|
Proceeds from sales of securities
|
$
|
515,764
|
|
|
$
|
139,046
|
|
|
$
|
69,516
|
|
|
2018
|
|
2017
|
||||
Construction and Land Development
|
$
|
1,194,821
|
|
|
$
|
948,791
|
|
Commercial Real Estate - Owner Occupied
|
1,337,345
|
|
|
943,933
|
|
||
Commercial Real Estate - Non-Owner Occupied
|
2,467,410
|
|
|
1,713,659
|
|
||
Multifamily Real Estate
|
548,231
|
|
|
357,079
|
|
||
Commercial & Industrial
|
1,317,135
|
|
|
612,023
|
|
||
Residential 1-4 Family - Commercial
|
713,750
|
|
|
612,395
|
|
||
Residential 1-4 Family - Mortgage
|
600,578
|
|
|
485,690
|
|
||
Auto
|
301,943
|
|
|
282,474
|
|
||
HELOC
|
613,383
|
|
|
537,521
|
|
||
Consumer
|
379,694
|
|
|
408,667
|
|
||
Other Commercial
|
241,917
|
|
|
239,320
|
|
||
Total loans held for investment, net
(1)
|
$
|
9,716,207
|
|
|
$
|
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
|
$
|
759
|
|
|
$
|
6
|
|
|
$
|
180
|
|
|
$
|
8,654
|
|
|
$
|
8,018
|
|
|
$
|
1,177,204
|
|
|
$
|
1,194,821
|
|
Commercial Real Estate - Owner Occupied
|
8,755
|
|
|
1,142
|
|
|
3,193
|
|
|
25,644
|
|
|
3,636
|
|
|
1,294,975
|
|
|
1,337,345
|
|
|||||||
Commercial Real Estate - Non-Owner Occupied
|
338
|
|
|
41
|
|
|
—
|
|
|
17,335
|
|
|
1,789
|
|
|
2,447,907
|
|
|
2,467,410
|
|
|||||||
Multifamily Real Estate
|
—
|
|
|
146
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
547,997
|
|
|
548,231
|
|
|||||||
Commercial & Industrial
|
3,353
|
|
|
389
|
|
|
132
|
|
|
2,156
|
|
|
1,524
|
|
|
1,309,581
|
|
|
1,317,135
|
|
|||||||
Residential 1-4 Family - Commercial
|
6,619
|
|
|
1,577
|
|
|
1,409
|
|
|
13,707
|
|
|
2,481
|
|
|
687,957
|
|
|
713,750
|
|
|||||||
Residential 1-4 Family - Mortgage
|
12,049
|
|
|
5,143
|
|
|
2,437
|
|
|
16,766
|
|
|
7,276
|
|
|
556,907
|
|
|
600,578
|
|
|||||||
Auto
|
3,320
|
|
|
403
|
|
|
195
|
|
|
7
|
|
|
576
|
|
|
297,442
|
|
|
301,943
|
|
|||||||
HELOC
|
4,611
|
|
|
1,644
|
|
|
440
|
|
|
5,115
|
|
|
1,518
|
|
|
600,055
|
|
|
613,383
|
|
|||||||
Consumer and all other
(1)
|
1,630
|
|
|
1,096
|
|
|
870
|
|
|
749
|
|
|
135
|
|
|
617,131
|
|
|
621,611
|
|
|||||||
Total loans held for investment
|
$
|
41,434
|
|
|
$
|
11,587
|
|
|
$
|
8,856
|
|
|
$
|
90,221
|
|
|
$
|
26,953
|
|
|
$
|
9,537,156
|
|
|
$
|
9,716,207
|
|
|
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
(1)
|
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
|
|
|
30-89 Days
Past Due
|
|
Greater than
90 Days
|
|
Current
|
|
Total
|
||||||||
Construction and Land Development
|
$
|
108
|
|
|
$
|
1,424
|
|
|
$
|
7,122
|
|
|
$
|
8,654
|
|
Commercial Real Estate - Owner Occupied
|
658
|
|
|
4,281
|
|
|
20,705
|
|
|
25,644
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
61
|
|
|
1,810
|
|
|
15,464
|
|
|
17,335
|
|
||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
88
|
|
|
88
|
|
||||
Commercial & Industrial
|
47
|
|
|
1,092
|
|
|
1,017
|
|
|
2,156
|
|
||||
Residential 1-4 Family - Commercial
|
931
|
|
|
3,464
|
|
|
9,312
|
|
|
13,707
|
|
||||
Residential 1-4 Family - Mortgage
|
1,899
|
|
|
2,412
|
|
|
12,455
|
|
|
16,766
|
|
||||
Auto
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
||||
HELOC
|
498
|
|
|
252
|
|
|
4,365
|
|
|
5,115
|
|
||||
Consumer and all other
(1)
|
62
|
|
|
9
|
|
|
678
|
|
|
749
|
|
||||
Total
|
$
|
4,264
|
|
|
$
|
14,744
|
|
|
$
|
71,213
|
|
|
$
|
90,221
|
|
|
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
(1)
|
—
|
|
|
—
|
|
|
198
|
|
|
198
|
|
||||
Total
|
$
|
1,644
|
|
|
$
|
1,959
|
|
|
$
|
35,418
|
|
|
$
|
39,021
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||||||||
Loans without a specific allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and Land Development
|
$
|
10,290
|
|
|
$
|
12,038
|
|
|
$
|
—
|
|
|
$
|
16,035
|
|
|
$
|
16,214
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
8,386
|
|
|
9,067
|
|
|
—
|
|
|
5,427
|
|
|
5,527
|
|
|
—
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
6,578
|
|
|
6,929
|
|
|
—
|
|
|
6,017
|
|
|
6,103
|
|
|
—
|
|
||||||
Commercial & Industrial
|
3,059
|
|
|
3,251
|
|
|
—
|
|
|
1,681
|
|
|
1,933
|
|
|
—
|
|
||||||
Residential 1-4 Family - Commercial
|
4,516
|
|
|
4,576
|
|
|
—
|
|
|
4,098
|
|
|
4,879
|
|
|
—
|
|
||||||
Residential 1-4 Family - Mortgage
|
8,504
|
|
|
9,180
|
|
|
—
|
|
|
9,512
|
|
|
9,786
|
|
|
—
|
|
||||||
HELOC
|
1,150
|
|
|
1,269
|
|
|
—
|
|
|
2,056
|
|
|
2,144
|
|
|
—
|
|
||||||
Consumer and all other
(1)
|
508
|
|
|
580
|
|
|
—
|
|
|
567
|
|
|
734
|
|
|
—
|
|
||||||
Total impaired loans without a specific allowance
|
$
|
42,991
|
|
|
$
|
46,890
|
|
|
$
|
—
|
|
|
$
|
45,393
|
|
|
$
|
47,320
|
|
|
$
|
—
|
|
Loans with a specific allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction and Land Development
|
$
|
372
|
|
|
$
|
491
|
|
|
$
|
63
|
|
|
$
|
1,536
|
|
|
$
|
1,573
|
|
|
$
|
122
|
|
Commercial Real Estate - Owner Occupied
|
4,304
|
|
|
4,437
|
|
|
359
|
|
|
1,161
|
|
|
1,161
|
|
|
94
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
391
|
|
|
391
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial & Industrial
|
1,183
|
|
|
1,442
|
|
|
752
|
|
|
1,295
|
|
|
1,319
|
|
|
128
|
|
||||||
Residential 1-4 Family - Commercial
|
3,180
|
|
|
3,249
|
|
|
185
|
|
|
1,062
|
|
|
1,068
|
|
|
35
|
|
||||||
Residential 1-4 Family - Mortgage
|
5,329
|
|
|
5,548
|
|
|
374
|
|
|
1,953
|
|
|
2,070
|
|
|
36
|
|
||||||
Auto
|
576
|
|
|
830
|
|
|
231
|
|
|
413
|
|
|
577
|
|
|
2
|
|
||||||
HELOC
|
724
|
|
|
807
|
|
|
188
|
|
|
464
|
|
|
535
|
|
|
51
|
|
||||||
Consumer and all other
(1)
|
178
|
|
|
467
|
|
|
64
|
|
|
204
|
|
|
309
|
|
|
35
|
|
||||||
Total impaired loans with a specific allowance
|
$
|
16,237
|
|
|
$
|
17,662
|
|
|
$
|
2,217
|
|
|
$
|
8,088
|
|
|
$
|
8,612
|
|
|
$
|
503
|
|
Total impaired loans
|
$
|
59,228
|
|
|
$
|
64,552
|
|
|
$
|
2,217
|
|
|
$
|
53,481
|
|
|
$
|
55,932
|
|
|
$
|
503
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
Average
Investment
|
|
Interest
Income
Recognized
|
|
Average
Investment
|
|
Interest
Income
Recognized
|
|
Average
Investment
|
|
Interest
Income
Recognized
|
||||||||||||
Construction and Land Development
|
$
|
11,648
|
|
|
$
|
234
|
|
|
$
|
17,080
|
|
|
$
|
590
|
|
|
$
|
15,346
|
|
|
$
|
681
|
|
Commercial Real Estate - Owner Occupied
|
13,383
|
|
|
499
|
|
|
6,580
|
|
|
306
|
|
|
6,290
|
|
|
242
|
|
||||||
Commercial Real Estate - Non-Owner Occupied
|
7,157
|
|
|
246
|
|
|
6,083
|
|
|
172
|
|
|
4,188
|
|
|
134
|
|
||||||
Commercial & Industrial
|
4,672
|
|
|
232
|
|
|
3,208
|
|
|
150
|
|
|
2,800
|
|
|
95
|
|
||||||
Residential 1-4 Family - Commercial
|
7,904
|
|
|
264
|
|
|
5,428
|
|
|
190
|
|
|
6,225
|
|
|
205
|
|
||||||
Residential 1-4 Family - Mortgage
|
14,740
|
|
|
152
|
|
|
11,806
|
|
|
194
|
|
|
6,491
|
|
|
86
|
|
||||||
Auto
|
824
|
|
|
20
|
|
|
579
|
|
|
19
|
|
|
244
|
|
|
5
|
|
||||||
HELOC
|
2,000
|
|
|
23
|
|
|
2,659
|
|
|
36
|
|
|
1,513
|
|
|
19
|
|
||||||
Consumer and all other
(1)
|
749
|
|
|
32
|
|
|
810
|
|
|
36
|
|
|
567
|
|
|
8
|
|
||||||
Total impaired loans
|
$
|
63,077
|
|
|
$
|
1,702
|
|
|
$
|
54,233
|
|
|
$
|
1,693
|
|
|
$
|
43,664
|
|
|
$
|
1,475
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
No. of
Loans
|
|
Recorded
Investment
|
|
Outstanding
Commitment
|
|
No. of
Loans
|
|
Recorded
Investment
|
|
Outstanding
Commitment
|
||||||||||
Performing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
5
|
|
|
$
|
2,496
|
|
|
$
|
—
|
|
|
7
|
|
|
$
|
2,803
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
8
|
|
|
2,783
|
|
|
—
|
|
|
5
|
|
|
2,221
|
|
|
—
|
|
||||
Commercial Real Estate - Non-Owner Occupied
|
4
|
|
|
4,438
|
|
|
—
|
|
|
2
|
|
|
715
|
|
|
—
|
|
||||
Commercial & Industrial
|
4
|
|
|
978
|
|
|
—
|
|
|
12
|
|
|
2,057
|
|
|
—
|
|
||||
Residential 1-4 Family - Commercial
|
30
|
|
|
2,887
|
|
|
—
|
|
|
16
|
|
|
1,048
|
|
|
—
|
|
||||
Residential 1-4 Family - Mortgage
|
30
|
|
|
5,070
|
|
|
—
|
|
|
24
|
|
|
5,194
|
|
|
—
|
|
||||
HELOC
|
2
|
|
|
58
|
|
|
—
|
|
|
1
|
|
|
20
|
|
|
—
|
|
||||
Consumer and all other
(1)
|
2
|
|
|
491
|
|
|
—
|
|
|
1
|
|
|
495
|
|
|
—
|
|
||||
Total performing
|
85
|
|
|
$
|
19,201
|
|
|
$
|
—
|
|
|
68
|
|
|
$
|
14,553
|
|
|
$
|
—
|
|
Nonperforming
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
2
|
|
|
$
|
3,474
|
|
|
$
|
—
|
|
|
2
|
|
|
$
|
702
|
|
|
$
|
—
|
|
Commercial Real Estate - Owner Occupied
|
2
|
|
|
198
|
|
|
—
|
|
|
2
|
|
|
134
|
|
|
—
|
|
||||
Commercial & Industrial
|
6
|
|
|
461
|
|
|
—
|
|
|
2
|
|
|
108
|
|
|
—
|
|
||||
Residential 1-4 Family - Commercial
|
1
|
|
|
60
|
|
|
—
|
|
|
5
|
|
|
558
|
|
|
—
|
|
||||
Residential 1-4 Family - Mortgage
|
15
|
|
|
3,135
|
|
|
—
|
|
|
7
|
|
|
1,264
|
|
|
—
|
|
||||
HELOC
|
2
|
|
|
62
|
|
|
—
|
|
|
1
|
|
|
59
|
|
|
—
|
|
||||
Consumer and all other
(1)
|
1
|
|
|
7
|
|
|
—
|
|
|
1
|
|
|
24
|
|
|
—
|
|
||||
Total nonperforming
|
29
|
|
|
$
|
7,397
|
|
|
$
|
—
|
|
|
20
|
|
|
$
|
2,849
|
|
|
$
|
—
|
|
Total performing and nonperforming
|
114
|
|
|
$
|
26,598
|
|
|
$
|
—
|
|
|
88
|
|
|
$
|
17,402
|
|
|
$
|
—
|
|
|
All Restructurings
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
|
No. of
Loans
|
|
Recorded
Investment at
Period End
|
|
No. of
Loans
|
|
Recorded
Investment at
Period End
|
||||||
Modified to interest only, at a market rate
|
|
|
|
|
|
|
|
|
|||||
Commercial & Industrial
|
—
|
|
|
$
|
—
|
|
|
5
|
|
|
$
|
631
|
|
Total interest only at market rate of interest
|
—
|
|
|
$
|
—
|
|
|
5
|
|
|
$
|
631
|
|
|
|
|
|
|
|
|
|
||||||
Term modification, at a market rate
|
|
|
|
|
|
|
|
|
|
||||
Construction and Land Development
|
4
|
|
|
$
|
4,675
|
|
|
4
|
|
|
$
|
1,564
|
|
Commercial Real Estate - Owner Occupied
|
5
|
|
|
1,365
|
|
|
1
|
|
|
378
|
|
||
Commercial Real Estate - Non-Owner Occupied
|
1
|
|
|
1,089
|
|
|
2
|
|
|
715
|
|
||
Commercial & Industrial
|
3
|
|
|
334
|
|
|
5
|
|
|
1,040
|
|
||
Residential 1-4 Family - Commercial
|
2
|
|
|
219
|
|
|
5
|
|
|
764
|
|
||
Residential 1-4 Family - Mortgage
|
8
|
|
|
931
|
|
|
9
|
|
|
2,461
|
|
||
Consumer and all other
(1)
|
1
|
|
|
13
|
|
|
2
|
|
|
519
|
|
||
Total loan term extended at a market rate
|
24
|
|
|
$
|
8,626
|
|
|
28
|
|
|
$
|
7,441
|
|
|
|
|
|
|
|
|
|
||||||
Term modification, below market rate
|
|
|
|
|
|
|
|
|
|
||||
Commercial Real Estate - Owner Occupied
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
837
|
|
Commercial Real Estate - Non-Owner Occupied
|
1
|
|
|
2,782
|
|
|
—
|
|
|
—
|
|
||
Commercial & Industrial
|
—
|
|
|
—
|
|
|
2
|
|
|
78
|
|
||
Residential 1-4 Family - Commercial
|
10
|
|
|
1,064
|
|
|
5
|
|
|
183
|
|
||
Residential 1-4 Family - Mortgage
|
9
|
|
|
1,719
|
|
|
11
|
|
|
1,803
|
|
||
HELOC
|
2
|
|
|
46
|
|
|
2
|
|
|
79
|
|
||
Total loan term extended at a below market rate
|
22
|
|
|
$
|
5,611
|
|
|
21
|
|
|
$
|
2,980
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate modification, below market rate
|
|
|
|
|
|
|
|
||||||
Residential 1-4 Family - Commercial
|
1
|
|
|
$
|
265
|
|
|
—
|
|
|
$
|
—
|
|
Total interest only at below market rate of interest
|
1
|
|
|
$
|
265
|
|
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
47
|
|
|
$
|
14,502
|
|
|
54
|
|
|
$
|
11,052
|
|
|
Year Ended December 31, 2018
|
||||||||||||||||||
|
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
|
$
|
9,709
|
|
|
$
|
447
|
|
|
$
|
(2,005
|
)
|
|
$
|
(1,348
|
)
|
|
$
|
6,803
|
|
Commercial Real Estate - Owner Occupied
|
2,931
|
|
|
610
|
|
|
(709
|
)
|
|
1,191
|
|
|
4,023
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
7,544
|
|
|
100
|
|
|
(94
|
)
|
|
1,315
|
|
|
8,865
|
|
|||||
Multifamily Real Estate
|
1,092
|
|
|
5
|
|
|
—
|
|
|
(448
|
)
|
|
649
|
|
|||||
Commercial & Industrial
|
4,552
|
|
|
534
|
|
|
(833
|
)
|
|
3,383
|
|
|
7,636
|
|
|||||
Residential 1-4 Family - Commercial
|
4,437
|
|
|
353
|
|
|
(176
|
)
|
|
(2,630
|
)
|
|
1,984
|
|
|||||
Residential 1-4 Family - Mortgage
|
1,524
|
|
|
310
|
|
|
(852
|
)
|
|
218
|
|
|
1,200
|
|
|||||
Auto
|
975
|
|
|
436
|
|
|
(1,074
|
)
|
|
1,106
|
|
|
1,443
|
|
|||||
HELOC
|
1,360
|
|
|
636
|
|
|
(1,206
|
)
|
|
507
|
|
|
1,297
|
|
|||||
Consumer and all other
(1)
|
4,084
|
|
|
1,737
|
|
|
(9,281
|
)
|
|
10,605
|
|
|
7,145
|
|
|||||
Total
|
$
|
38,208
|
|
|
$
|
5,168
|
|
|
$
|
(16,230
|
)
|
|
$
|
13,899
|
|
|
$
|
41,045
|
|
|
Year Ended December 31, 2017
|
||||||||||||||||||
|
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
(1)
|
2,178
|
|
|
1,189
|
|
|
(4,509
|
)
|
|
5,226
|
|
|
4,084
|
|
|||||
Total
|
$
|
37,192
|
|
|
$
|
3,255
|
|
|
$
|
(13,310
|
)
|
|
$
|
11,071
|
|
|
$
|
38,208
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
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)
|
1,644
|
|
|
434
|
|
|
(1,458
|
)
|
|
1,558
|
|
|
2,178
|
|
|||||
Total
|
$
|
34,047
|
|
|
$
|
3,025
|
|
|
$
|
(8,555
|
)
|
|
$
|
8,675
|
|
|
$
|
37,192
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||
|
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
|
$
|
10,662
|
|
|
$
|
63
|
|
|
$
|
1,175,505
|
|
|
$
|
6,740
|
|
|
$
|
8,654
|
|
|
$
|
—
|
|
|
$
|
1,194,821
|
|
|
$
|
6,803
|
|
Commercial Real Estate - Owner Occupied
|
12,690
|
|
|
359
|
|
|
1,299,011
|
|
|
3,664
|
|
|
25,644
|
|
|
—
|
|
|
1,337,345
|
|
|
4,023
|
|
||||||||
Commercial Real Estate - Non-Owner Occupied
|
6,969
|
|
|
1
|
|
|
2,443,106
|
|
|
8,864
|
|
|
17,335
|
|
|
—
|
|
|
2,467,410
|
|
|
8,865
|
|
||||||||
Multifamily Real Estate
|
—
|
|
|
—
|
|
|
548,143
|
|
|
649
|
|
|
88
|
|
|
—
|
|
|
548,231
|
|
|
649
|
|
||||||||
Commercial & Industrial
|
4,242
|
|
|
752
|
|
|
1,310,737
|
|
|
6,884
|
|
|
2,156
|
|
|
—
|
|
|
1,317,135
|
|
|
7,636
|
|
||||||||
Residential 1-4 Family - Commercial
|
7,696
|
|
|
185
|
|
|
692,347
|
|
|
1,799
|
|
|
13,707
|
|
|
—
|
|
|
713,750
|
|
|
1,984
|
|
||||||||
Residential 1-4 Family - Mortgage
|
13,833
|
|
|
374
|
|
|
569,979
|
|
|
826
|
|
|
16,766
|
|
|
—
|
|
|
600,578
|
|
|
1,200
|
|
||||||||
Auto
|
576
|
|
|
231
|
|
|
301,360
|
|
|
1,212
|
|
|
7
|
|
|
—
|
|
|
301,943
|
|
|
1,443
|
|
||||||||
HELOC
|
1,874
|
|
|
188
|
|
|
606,394
|
|
|
1,109
|
|
|
5,115
|
|
|
—
|
|
|
613,383
|
|
|
1,297
|
|
||||||||
Consumer and all other
(1)
|
686
|
|
|
64
|
|
|
620,176
|
|
|
7,081
|
|
|
749
|
|
|
—
|
|
|
621,611
|
|
|
7,145
|
|
||||||||
Total loans held for investment, net
|
$
|
59,228
|
|
|
$
|
2,217
|
|
|
$
|
9,566,758
|
|
|
$
|
38,828
|
|
|
$
|
90,221
|
|
|
$
|
—
|
|
|
$
|
9,716,207
|
|
|
$
|
41,045
|
|
|
December 31, 2017
|
||||||||||||||||||||||||||||||
|
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
(1)
|
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
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||
Construction and Land Development
|
$
|
1,130,577
|
|
|
$
|
43,894
|
|
|
$
|
11,696
|
|
|
$
|
—
|
|
|
$
|
1,186,167
|
|
Commercial Real Estate - Owner Occupied
|
1,231,422
|
|
|
50,939
|
|
|
29,340
|
|
|
—
|
|
|
1,311,701
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
2,425,500
|
|
|
17,648
|
|
|
6,927
|
|
|
—
|
|
|
2,450,075
|
|
|||||
Multifamily Real Estate
|
537,572
|
|
|
10,571
|
|
|
—
|
|
|
—
|
|
|
548,143
|
|
|||||
Commercial & Industrial
|
1,273,549
|
|
|
34,864
|
|
|
6,566
|
|
|
—
|
|
|
1,314,979
|
|
|||||
Residential 1-4 Family - Commercial
|
677,109
|
|
|
17,086
|
|
|
5,848
|
|
|
—
|
|
|
700,043
|
|
|||||
Residential 1-4 Family - Mortgage
|
554,192
|
|
|
14,855
|
|
|
14,765
|
|
|
—
|
|
|
583,812
|
|
|||||
Auto
|
296,907
|
|
|
3,590
|
|
|
1,439
|
|
|
—
|
|
|
301,936
|
|
|||||
HELOC
|
598,444
|
|
|
6,316
|
|
|
3,508
|
|
|
—
|
|
|
608,268
|
|
|||||
Consumer and all other
(1)
|
618,730
|
|
|
1,411
|
|
|
721
|
|
|
—
|
|
|
620,862
|
|
|||||
Total
|
$
|
9,344,002
|
|
|
$
|
201,174
|
|
|
$
|
80,810
|
|
|
$
|
—
|
|
|
$
|
9,625,986
|
|
|
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
(1)
|
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
|
$
|
1,835
|
|
|
$
|
1,308
|
|
|
$
|
5,511
|
|
|
$
|
—
|
|
|
$
|
8,654
|
|
Commercial Real Estate - Owner Occupied
|
8,347
|
|
|
6,685
|
|
|
10,612
|
|
|
—
|
|
|
25,644
|
|
|||||
Commercial Real Estate - Non-Owner Occupied
|
4,789
|
|
|
7,992
|
|
|
4,554
|
|
|
—
|
|
|
17,335
|
|
|||||
Multifamily Real Estate
|
—
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|||||
Commercial & Industrial
|
762
|
|
|
134
|
|
|
1,260
|
|
|
—
|
|
|
2,156
|
|
|||||
Residential 1-4 Family - Commercial
|
6,512
|
|
|
2,771
|
|
|
4,424
|
|
|
—
|
|
|
13,707
|
|
|||||
Residential 1-4 Family - Mortgage
|
9,894
|
|
|
1,030
|
|
|
5,842
|
|
|
—
|
|
|
16,766
|
|
|||||
Auto
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|||||
HELOC
|
3,438
|
|
|
1,031
|
|
|
646
|
|
|
—
|
|
|
5,115
|
|
|||||
Consumer and all other
(1)
|
74
|
|
|
660
|
|
|
15
|
|
|
—
|
|
|
749
|
|
|||||
Total
|
$
|
35,658
|
|
|
$
|
21,699
|
|
|
$
|
32,864
|
|
|
$
|
—
|
|
|
$
|
90,221
|
|
|
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
(1)
|
148
|
|
|
41
|
|
|
9
|
|
|
—
|
|
|
198
|
|
|||||
Total
|
$
|
19,017
|
|
|
$
|
13,881
|
|
|
$
|
5,435
|
|
|
$
|
688
|
|
|
$
|
39,021
|
|
|
For the year ended
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Balance at beginning of period
|
$
|
14,563
|
|
|
$
|
19,739
|
|
Additions
|
12,225
|
|
|
—
|
|
||
Accretion
|
(8,654
|
)
|
|
(6,426
|
)
|
||
Reclass of nonaccretable difference due to improvement in expected cash flows
|
1,876
|
|
|
2,237
|
|
||
Measurement period adjustment
|
3,974
|
|
|
—
|
|
||
Other, net
(1)
|
7,217
|
|
|
(987
|
)
|
||
Balance at end of period
|
$
|
31,201
|
|
|
$
|
14,563
|
|
|
2018
|
|
2017
|
||||
Land
|
$
|
41,494
|
|
|
$
|
29,706
|
|
Land improvements and buildings
|
119,649
|
|
|
99,199
|
|
||
Leasehold improvements
|
10,266
|
|
|
9,712
|
|
||
Furniture and equipment
|
62,154
|
|
|
56,000
|
|
||
Construction in progress
|
6,956
|
|
|
8,509
|
|
||
Total
|
240,519
|
|
|
203,126
|
|
||
Less accumulated depreciation and amortization
|
93,552
|
|
|
83,522
|
|
||
Bank premises and equipment, net
|
$
|
146,967
|
|
|
$
|
119,604
|
|
2019
|
$
|
11,805
|
|
2020
|
10,061
|
|
|
2021
|
8,273
|
|
|
2022
|
7,032
|
|
|
2023
|
6,270
|
|
|
Thereafter
|
18,329
|
|
|
Total of future payments
|
$
|
61,770
|
|
|
Gross Carrying
Value
|
|
Accumulated
Amortization
|
|
Net Carrying
Value
|
||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|||
Amortizable core deposit intangibles
|
$
|
95,152
|
|
|
$
|
57,293
|
|
|
$
|
37,859
|
|
Other amortizable intangibles
|
12,695
|
|
|
1,870
|
|
|
10,825
|
|
|||
December 31, 2017
|
|
|
|
|
|
|
|
|
|||
Amortizable core deposit intangibles
|
$
|
56,046
|
|
|
$
|
45,193
|
|
|
$
|
10,853
|
|
Other amortizable intangibles
|
4,715
|
|
|
765
|
|
|
3,950
|
|
2019
|
$
|
11,092
|
|
2020
|
9,228
|
|
|
2021
|
7,438
|
|
|
2022
|
5,864
|
|
|
2023
|
4,871
|
|
|
Thereafter
|
10,192
|
|
|
Total estimated amortization expense
|
$
|
48,685
|
|
|
2018
|
|
2017
|
||||
Interest-bearing deposits:
|
|
|
|
|
|
||
NOW accounts
|
$
|
2,288,523
|
|
|
$
|
1,929,416
|
|
Money market accounts
|
2,875,301
|
|
|
1,685,174
|
|
||
Savings accounts
|
622,823
|
|
|
546,274
|
|
||
Time deposits of $250,000 and over
|
292,224
|
|
|
226,205
|
|
||
Other time deposits
|
1,797,482
|
|
|
1,102,441
|
|
||
Total interest-bearing deposits
|
$
|
7,876,353
|
|
|
$
|
5,489,510
|
|
2019
|
$
|
1,197,966
|
|
2020
|
558,280
|
|
|
2021
|
140,717
|
|
|
2022
|
107,898
|
|
|
2023
|
84,837
|
|
|
Thereafter
|
8
|
|
|
Total scheduled maturities of time deposits
|
$
|
2,089,706
|
|
|
2018
|
|
2017
|
||||
Securities sold under agreements to repurchase
|
$
|
39,197
|
|
|
$
|
49,152
|
|
FHLB advances
|
1,043,600
|
|
|
745,000
|
|
||
Other short-term borrowings
|
5,000
|
|
|
—
|
|
||
Total short-term borrowings
|
$
|
1,087,797
|
|
|
$
|
794,152
|
|
|
|
|
|
||||
Maximum month-end outstanding balance
|
$
|
1,087,797
|
|
|
$
|
794,152
|
|
Average outstanding balance during the period
|
968,014
|
|
|
602,553
|
|
||
Average interest rate
|
1.91
|
%
|
|
1.00
|
%
|
||
Average interest rate at end of period
|
2.43
|
%
|
|
1.32
|
%
|
|
Trust
Preferred
Capital
Securities
(1)
|
|
Investment
(1)
|
|
Spread to
3-Month LIBOR
|
|
Rate
(2)
|
|
Maturity
|
||||||
Trust Preferred Capital Note - Statutory Trust I
|
$
|
22,500,000
|
|
|
$
|
696,000
|
|
|
2.75
|
%
|
|
5.56
|
%
|
|
6/17/2034
|
Trust Preferred Capital Note - Statutory Trust II
|
36,000,000
|
|
|
1,114,000
|
|
|
1.40
|
%
|
|
4.21
|
%
|
|
6/15/2036
|
||
VFG Limited Liability Trust I Indenture
|
20,000,000
|
|
|
619,000
|
|
|
2.73
|
%
|
|
5.54
|
%
|
|
3/18/2034
|
||
FNB Statutory Trust II Indenture
|
12,000,000
|
|
|
372,000
|
|
|
3.10
|
%
|
|
5.91
|
%
|
|
6/26/2033
|
||
Gateway Capital Statutory Trust I
|
8,000,000
|
|
|
248,000
|
|
|
3.10
|
%
|
|
5.91
|
%
|
|
9/17/2033
|
||
Gateway Capital Statutory Trust II
|
7,000,000
|
|
|
217,000
|
|
|
2.65
|
%
|
|
5.46
|
%
|
|
6/17/2034
|
||
Gateway Capital Statutory Trust III
|
15,000,000
|
|
|
464,000
|
|
|
1.50
|
%
|
|
4.31
|
%
|
|
5/30/2036
|
||
Gateway Capital Statutory Trust IV
|
25,000,000
|
|
|
774,000
|
|
|
1.55
|
%
|
|
4.36
|
%
|
|
7/30/2037
|
||
Total
|
$
|
145,500,000
|
|
|
$
|
4,504,000
|
|
|
|
|
|
|
|
|
|
Long-term Type
|
Spread to
3-Month LIBOR
|
|
Interest Rate
(1)
|
|
Maturity Date
|
|
Advance Amount
|
||||
Adjustable Rate Credit
|
0.44
|
%
|
|
3.25
|
%
|
|
8/23/2022
|
|
$
|
55,000
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
3.26
|
%
|
|
11/23/2022
|
|
65,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
3.26
|
%
|
|
11/23/2022
|
|
10,000
|
|
|
Adjustable Rate Credit
|
0.45
|
%
|
|
3.26
|
%
|
|
11/23/2022
|
|
10,000
|
|
|
Fixed Rate Convertible
|
—
|
|
|
1.78
|
%
|
|
10/26/2028
|
|
200,000
|
|
|
Fixed Rate Hybrid
|
—
|
|
|
2.37
|
%
|
|
10/10/2019
|
|
25,000
|
|
|
Fixed Rate Hybrid
|
—
|
|
|
1.58
|
%
|
|
5/18/2020
|
|
20,000
|
|
|
|
|
|
|
|
|
|
|
|
$
|
385,000
|
|
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
|
|
|
Trust
Preferred
Capital Notes
|
|
Subordinated
Notes
|
|
FHLB
Advances
|
|
Premium
(Discount)
|
|
Prepayment
Penalty
|
|
Total Long-term
Borrowings
|
||||||||||||
2019
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,000
|
|
|
$
|
(862
|
)
|
|
$
|
(2,018
|
)
|
|
$
|
22,120
|
|
2020
|
—
|
|
|
—
|
|
|
20,000
|
|
|
(936
|
)
|
|
(2,074
|
)
|
|
16,990
|
|
||||||
2021
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,006
|
)
|
|
(2,119
|
)
|
|
(3,125
|
)
|
||||||
2022
|
—
|
|
|
—
|
|
|
140,000
|
|
|
(1,029
|
)
|
|
(1,707
|
)
|
|
137,264
|
|
||||||
2023
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,051
|
)
|
|
—
|
|
|
(1,051
|
)
|
||||||
Thereafter
|
150,004
|
|
|
158,500
|
|
|
200,000
|
|
|
(12,221
|
)
|
|
—
|
|
|
496,283
|
|
||||||
Total Long-term borrowings
|
$
|
150,004
|
|
|
$
|
158,500
|
|
|
$
|
385,000
|
|
|
$
|
(17,105
|
)
|
|
$
|
(7,918
|
)
|
|
$
|
668,481
|
|
|
2018
|
|
2017
|
||||
Commitments with off-balance sheet risk:
|
|
|
|
|
|
||
Commitments to extend credit
(1)
|
$
|
3,167,085
|
|
|
$
|
2,192,812
|
|
Standby letters of credit
|
167,597
|
|
|
127,435
|
|
||
Total commitments with off-balance sheet risk
|
$
|
3,334,682
|
|
|
$
|
2,320,247
|
|
|
Pledged Assets as of December 31, 2018
|
|
|||||||||||||||||
|
Cash
|
|
AFS Securities
(1)
|
|
HTM Securities
(1)
|
|
Loans
(2)
|
|
Total
|
||||||||||
Public deposits
|
$
|
—
|
|
|
$
|
293,169
|
|
|
$
|
7,407
|
|
|
$
|
—
|
|
|
$
|
300,576
|
|
Repurchase agreements
|
—
|
|
|
55,269
|
|
|
—
|
|
|
—
|
|
|
55,269
|
|
|||||
FHLB advances
|
—
|
|
|
488
|
|
|
—
|
|
|
3,337,289
|
|
|
3,337,777
|
|
|||||
Derivatives
|
13,509
|
|
|
1,938
|
|
|
—
|
|
|
—
|
|
|
15,447
|
|
|||||
Other purposes
|
—
|
|
|
23,217
|
|
|
—
|
|
|
—
|
|
|
23,217
|
|
|||||
Total pledged assets
|
$
|
13,509
|
|
|
$
|
374,081
|
|
|
$
|
7,407
|
|
|
$
|
3,337,289
|
|
|
$
|
3,732,286
|
|
|
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
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
|
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
|
|
|
$
|
—
|
|
|
$
|
4,786
|
|
|
$
|
152,500
|
|
|
$
|
49
|
|
|
$
|
8,005
|
|
Fair value hedges
|
137,596
|
|
|
1,872
|
|
|
1,684
|
|
|
80,973
|
|
|
1,598
|
|
|
76
|
|
||||||
Derivatives not designated as accounting hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loan Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pay fixed-receive floating interest rate swaps
|
878,446
|
|
|
10,120
|
|
|
9,306
|
|
|
529,736
|
|
|
—
|
|
|
1,350
|
|
||||||
Pay floating-receive fixed interest rate swaps
|
878,446
|
|
|
9,306
|
|
|
10,120
|
|
|
529,736
|
|
|
1,350
|
|
|
—
|
|
||||||
Other contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments
|
—
|
|
|
—
|
|
|
—
|
|
|
34,314
|
|
|
559
|
|
|
—
|
|
||||||
Best efforts forward delivery commitments
|
—
|
|
|
—
|
|
|
—
|
|
|
73,777
|
|
|
12
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||
|
Carrying Amount of Hedged Assets/(Liabilities)
|
|
Cumulative Amount of Basis Adjustments Included in the Carrying Amount of the Hedged Assets/(Liabilities)
|
||||
Line items on the Consolidated Balance Sheets in which the hedged item is included:
|
|
|
|
|
|
||
Securities available-for-sale
(1) (2)
|
$
|
224,241
|
|
|
$
|
1,399
|
|
Loans
|
87,596
|
|
|
(1,572
|
)
|
|
Unrealized
Gains (Losses) on AFS Securities |
|
Unrealized
Gains (Losses) for AFS Securities Transferred to HTM |
|
Change in Fair
Value of Cash Flow Hedges |
|
Unrealized Gains (Losses) on BOLI
|
|
Total
|
||||||||||
Balance - December 31, 2017
|
$
|
1,874
|
|
|
$
|
2,705
|
|
|
$
|
(4,361
|
)
|
|
$
|
(1,102
|
)
|
|
$
|
(884
|
)
|
Transfer of HTM securities to AFS securities
(1)
|
2,785
|
|
|
(2,785
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cumulative effects from adoption of new accounting standards
(2) (3)
|
465
|
|
|
583
|
|
|
(1,094
|
)
|
|
—
|
|
|
(46
|
)
|
|||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss) before reclassification
|
(10,711
|
)
|
|
—
|
|
|
1,087
|
|
|
—
|
|
|
(9,624
|
)
|
|||||
Amounts reclassified from AOCI into earnings
|
(362
|
)
|
|
(408
|
)
|
|
975
|
|
|
76
|
|
|
281
|
|
|||||
Net current period other comprehensive income (loss)
|
(11,073
|
)
|
|
(408
|
)
|
|
2,062
|
|
|
76
|
|
|
(9,343
|
)
|
|||||
Balance - December 31, 2018
|
$
|
(5,949
|
)
|
|
$
|
95
|
|
|
$
|
(3,393
|
)
|
|
$
|
(1,026
|
)
|
|
$
|
(10,273
|
)
|
|
Unrealized Gains (Losses) on AFS Securities
|
|
Unrealized
Gains (Losses) 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
|
)
|
|
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, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common equity Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
$
|
1,106,871
|
|
|
9.93
|
%
|
|
$
|
501,608
|
|
|
4.50
|
%
|
|
NA
|
|
|
NA
|
|
Union Bank & Trust
|
1,378,039
|
|
|
12.40
|
%
|
|
500,224
|
|
|
4.50
|
%
|
|
722,546
|
|
|
6.50
|
%
|
||
Tier 1 capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
1,236,709
|
|
|
11.09
|
%
|
|
668,817
|
|
|
6.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
1,378,039
|
|
|
12.40
|
%
|
|
666,965
|
|
|
6.00
|
%
|
|
889,287
|
|
|
8.00
|
%
|
||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
1,435,711
|
|
|
12.88
|
%
|
|
891,753
|
|
|
8.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
1,419,984
|
|
|
12.77
|
%
|
|
889,289
|
|
|
8.00
|
%
|
|
1,111,612
|
|
|
10.00
|
%
|
||
Tier 1 capital to average adjusted assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consolidated
|
1,236,709
|
|
|
9.71
|
%
|
|
509,678
|
|
|
4.00
|
%
|
|
NA
|
|
|
NA
|
|
||
Union Bank & Trust
|
1,378,039
|
|
|
10.84
|
%
|
|
508,412
|
|
|
4.00
|
%
|
|
635,515
|
|
|
5.00
|
%
|
||
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
|
%
|
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, 2018 using
|
||||||||||||||
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant
Other
Observable
Inputs
|
|
Significant
Unobservable
Inputs
|
|
|
||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFS securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
—
|
|
|
$
|
468,491
|
|
|
$
|
—
|
|
|
$
|
468,491
|
|
Corporate bonds
|
—
|
|
|
167,696
|
|
|
—
|
|
|
167,696
|
|
||||
Mortgage-backed securities
|
—
|
|
|
1,129,865
|
|
|
—
|
|
|
1,129,865
|
|
||||
Other securities
|
—
|
|
|
8,769
|
|
|
—
|
|
|
8,769
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
—
|
|
|
19,426
|
|
|
—
|
|
|
19,426
|
|
||||
Fair value hedges
|
—
|
|
|
1,872
|
|
|
—
|
|
|
1,872
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest rate swap
|
$
|
—
|
|
|
$
|
19,426
|
|
|
$
|
—
|
|
|
$
|
19,426
|
|
Cash flow hedges
|
—
|
|
|
4,786
|
|
|
—
|
|
|
4,786
|
|
||||
Fair value hedges
|
—
|
|
|
1,684
|
|
|
—
|
|
|
1,684
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFS securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
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, 2018 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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,734
|
|
|
$
|
3,734
|
|
Foreclosed properties
|
—
|
|
|
—
|
|
|
6,722
|
|
|
6,722
|
|
||||
Former bank premises
|
—
|
|
|
—
|
|
|
2,090
|
|
|
2,090
|
|
|
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
|
|
Foreclosed properties
|
—
|
|
|
—
|
|
|
5,253
|
|
|
5,253
|
|
||||
Former bank premises
|
—
|
|
|
—
|
|
|
1,383
|
|
|
1,383
|
|
|
|
|
Fair Value Measurements at December 31, 2018 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
|
$
|
261,199
|
|
|
$
|
261,199
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
261,199
|
|
AFS securities
|
1,774,821
|
|
|
—
|
|
|
1,774,821
|
|
|
—
|
|
|
1,774,821
|
|
|||||
HTM securities
|
492,272
|
|
|
—
|
|
|
499,501
|
|
|
—
|
|
|
499,501
|
|
|||||
Restricted stock
|
124,602
|
|
|
—
|
|
|
124,602
|
|
|
—
|
|
|
124,602
|
|
|||||
Net loans
|
9,675,162
|
|
|
—
|
|
|
—
|
|
|
9,534,717
|
|
|
9,534,717
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
19,426
|
|
|
—
|
|
|
19,426
|
|
|
—
|
|
|
19,426
|
|
|||||
Fair value hedges
|
1,872
|
|
|
—
|
|
|
1,872
|
|
|
—
|
|
|
1,872
|
|
|||||
Accrued interest receivable
|
46,062
|
|
|
—
|
|
|
46,062
|
|
|
—
|
|
|
46,062
|
|
|||||
BOLI
|
263,034
|
|
|
—
|
|
|
263,034
|
|
|
—
|
|
|
263,034
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
$
|
9,970,960
|
|
|
$
|
—
|
|
|
$
|
9,989,788
|
|
|
$
|
—
|
|
|
$
|
9,989,788
|
|
Borrowings
|
1,756,278
|
|
|
—
|
|
|
1,742,038
|
|
|
—
|
|
|
1,742,038
|
|
|||||
Accrued interest payable
|
5,284
|
|
|
—
|
|
|
5,284
|
|
|
—
|
|
|
5,284
|
|
|||||
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap
|
19,426
|
|
|
—
|
|
|
19,426
|
|
|
—
|
|
|
19,426
|
|
|||||
Cash flow hedges
|
4,786
|
|
|
—
|
|
|
4,786
|
|
|
—
|
|
|
4,786
|
|
|||||
Fair value hedges
|
1,684
|
|
|
—
|
|
|
1,684
|
|
|
—
|
|
|
1,684
|
|
|
|
|
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
|
|
AFS securities
|
974,222
|
|
|
—
|
|
|
974,222
|
|
|
—
|
|
|
974,222
|
|
|||||
HTM 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
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Noninterest income:
|
|
|
|
|
|
||||||
Deposit Service Charges
(1)
:
|
|
|
|
|
|
||||||
Overdraft fees, net
|
$
|
21,052
|
|
|
$
|
15,788
|
|
|
$
|
15,082
|
|
Maintenance fees & other
|
4,387
|
|
|
3,062
|
|
|
3,086
|
|
|||
Other service charges and fees
(1)
|
5,603
|
|
|
4,593
|
|
|
4,445
|
|
|||
Interchange fees, net
(1)
|
18,803
|
|
|
14,974
|
|
|
14,058
|
|
|||
Fiduciary and asset management fees
(1)
:
|
|
|
|
|
|
||||||
Trust asset management fees
|
5,536
|
|
|
5,128
|
|
|
4,812
|
|
|||
Registered advisor management fees, net
|
6,589
|
|
|
2,692
|
|
|
1,554
|
|
|||
Brokerage management fees, net
|
4,025
|
|
|
3,425
|
|
|
3,833
|
|
|||
Gains (losses) on securities transactions, net
|
383
|
|
|
800
|
|
|
205
|
|
|||
Bank owned life insurance income
|
7,198
|
|
|
6,144
|
|
|
5,513
|
|
|||
Loan-related interest rate swap fees
|
3,554
|
|
|
3,051
|
|
|
4,254
|
|
|||
Gain on Shore Premier sale
|
19,966
|
|
|
—
|
|
|
—
|
|
|||
Other operating income
(2)
|
7,145
|
|
|
2,772
|
|
|
3,007
|
|
|||
Total noninterest income
(3)
|
$
|
104,241
|
|
|
$
|
62,429
|
|
|
$
|
59,849
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
401(k) Plan
|
$
|
4,592
|
|
|
$
|
3,505
|
|
|
$
|
3,263
|
|
ESOP
|
1,005
|
|
|
1,255
|
|
|
1,425
|
|
|||
Cash
|
1,509
|
|
|
1,461
|
|
|
1,496
|
|
|||
Total
|
$
|
7,106
|
|
|
$
|
6,221
|
|
|
$
|
6,184
|
|
|
Year Ended December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Stock-based compensation expense
|
$
|
6,132
|
|
|
$
|
4,648
|
|
|
$
|
3,270
|
|
Reduction of income tax expense
|
1,287
|
|
|
1,467
|
|
|
1,104
|
|
|||
Per share compensation cost
|
$
|
0.07
|
|
|
$
|
0.06
|
|
|
$
|
0.05
|
|
|
Stock Options
(shares)
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Aggregate
Intrinsic Value
|
|||||
Outstanding as of December 31, 2017
|
121,743
|
|
|
$
|
13.93
|
|
|
|
|
|
|
|
Granted
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Exercised
|
(72,743
|
)
|
|
13.51
|
|
|
|
|
|
|
||
Forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|
||
Expired
|
(1,415
|
)
|
|
18.10
|
|
|
|
|
|
|||
Outstanding as of December 31, 2018
|
47,585
|
|
|
14.44
|
|
|
2.54
|
|
$
|
656,238
|
|
|
Exercisable as of December 31, 2018
|
47,585
|
|
|
14.44
|
|
|
2.54
|
|
656,238
|
|
|
Number of Shares of
RSAs
|
|
Weighted Average
Grant-Date Fair
Value
|
|||
Unvested as of December 31, 2017
|
326,736
|
|
|
$
|
27.68
|
|
Granted
|
212,749
|
|
|
37.36
|
|
|
Net settle for taxes
|
(38,700
|
)
|
|
40.23
|
|
|
Vested
|
(113,023
|
)
|
|
29.82
|
|
|
Forfeited
|
(12,348
|
)
|
|
30.57
|
|
|
Unvested as of December 31, 2018
|
375,414
|
|
|
32.41
|
|
|
Number of Shares of
PSUs
|
|
Weighted Average Grant-
Date Fair Value
|
|||
Unvested as of December 31, 2017
|
134,350
|
|
|
$
|
24.98
|
|
Granted
|
61,310
|
|
|
34.28
|
|
|
Net settle for taxes
|
(16,342
|
)
|
|
38.64
|
|
|
Vested
|
(26,977
|
)
|
|
14.32
|
|
|
Forfeited
|
(2,294
|
)
|
|
37.19
|
|
|
Unvested as of December 31, 2018
|
150,047
|
|
|
31.67
|
|
|
2018
(5)
|
2017
(5)
|
2016
(5)
|
|||
Dividend yield
(1)
|
2.25
|
%
|
2.15
|
%
|
3.36
|
%
|
Expected life in years
(2)
|
2.86
|
|
2.85
|
|
2.85
|
|
Expected volatility
(3)
|
23.47
|
%
|
23.35
|
%
|
22.16
|
%
|
Risk-free interest rate
(4)
|
2.38
|
%
|
1.40
|
%
|
0.83
|
%
|
|
Restricted Stock
|
|
Performance
Stock
|
|
Total
|
||||||
2019
|
$
|
4,644
|
|
|
$
|
1,267
|
|
|
$
|
5,911
|
|
2020
|
3,047
|
|
|
709
|
|
|
3,756
|
|
|||
2021
|
1,291
|
|
|
80
|
|
|
1,371
|
|
|||
2022
|
227
|
|
|
—
|
|
|
227
|
|
|||
Total
|
$
|
9,209
|
|
|
$
|
2,056
|
|
|
$
|
11,265
|
|
|
2018
|
|
2017
|
||||
Deferred tax assets:
|
|
|
|
||||
Allowance for loan losses
|
$
|
19,369
|
|
|
$
|
7,963
|
|
Benefit plans
|
3,925
|
|
|
2,511
|
|
||
Acquisition accounting
|
11,788
|
|
|
4,911
|
|
||
Stock grants
|
894
|
|
|
328
|
|
||
OREO
|
2,515
|
|
|
1,673
|
|
||
Securities available for sale
|
1,577
|
|
|
—
|
|
||
Prime loan swap
|
981
|
|
|
1,640
|
|
||
Investments in pass through entities
|
915
|
|
|
646
|
|
||
Net operating losses
|
66,037
|
|
|
3,624
|
|
||
Nonaccrual loans
|
3,990
|
|
|
—
|
|
||
Other
|
2,722
|
|
|
1,268
|
|
||
Total deferred tax assets
|
$
|
114,713
|
|
|
$
|
24,564
|
|
Deferred tax liabilities:
|
|
|
|
|
|
||
Acquisition accounting
|
$
|
13,053
|
|
|
$
|
5,923
|
|
Premises and equipment
|
3,877
|
|
|
3,600
|
|
||
Securities available for sale
|
25
|
|
|
1,479
|
|
||
Other
|
583
|
|
|
529
|
|
||
Total deferred tax liabilities
|
17,538
|
|
|
11,531
|
|
||
Net deferred tax asset
|
$
|
97,175
|
|
|
$
|
13,033
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Current tax expense
|
$
|
12,114
|
|
|
$
|
27,255
|
|
|
$
|
25,578
|
|
Deferred tax expense (benefit)
(1)
|
17,902
|
|
|
5,535
|
|
|
366
|
|
|||
Income tax expense
|
$
|
30,016
|
|
|
$
|
32,790
|
|
|
$
|
25,944
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Computed "expected" tax expense
|
$
|
37,680
|
|
|
$
|
36,738
|
|
|
$
|
35,645
|
|
(Decrease) in taxes resulting from:
|
|
|
|
|
|
|
|
|
|||
Tax-exempt interest income, net
|
(5,188
|
)
|
|
(6,112
|
)
|
|
(6,087
|
)
|
|||
Valuation allowance adjustment
|
—
|
|
|
(2,982
|
)
|
|
—
|
|
|||
Impact of the Tax Act
|
—
|
|
|
6,105
|
|
|
—
|
|
|||
Other, net
|
(2,476
|
)
|
|
(959
|
)
|
|
(3,614
|
)
|
|||
Income tax expense
|
$
|
30,016
|
|
|
$
|
32,790
|
|
|
$
|
25,944
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net Income:
|
|
|
|
|
|
||||||
Income from continuing operations
|
$
|
149,413
|
|
|
$
|
72,176
|
|
|
$
|
75,898
|
|
Income (loss) from discontinued operations
|
(3,165
|
)
|
|
747
|
|
|
1,578
|
|
|||
Net income available to common shareholders
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding, basic
|
65,859
|
|
|
43,699
|
|
|
43,784
|
|
|||
Dilutive effect of stock awards and warrants
|
50
|
|
|
81
|
|
|
106
|
|
|||
Weighted average shares outstanding, diluted
|
65,909
|
|
|
43,780
|
|
|
43,890
|
|
|||
|
|
|
|
|
|
||||||
Basic EPS:
|
|
|
|
|
|
||||||
EPS from continuing operations
|
$
|
2.27
|
|
|
$
|
1.65
|
|
|
$
|
1.73
|
|
EPS from discontinued operations
|
$
|
(0.05
|
)
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
EPS to common shareholders
|
$
|
2.22
|
|
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
|
|
|
|
|
||||||
Diluted EPS:
|
|
|
|
|
|
||||||
EPS from continuing operations
|
$
|
2.27
|
|
|
$
|
1.65
|
|
|
$
|
1.73
|
|
EPS from discontinued operations
|
$
|
(0.05
|
)
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
EPS to common shareholders
|
$
|
2.22
|
|
|
$
|
1.67
|
|
|
$
|
1.77
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net interest income
|
$
|
850
|
|
|
$
|
1,150
|
|
|
$
|
1,184
|
|
Provision for credit losses
|
(185
|
)
|
|
(46
|
)
|
|
217
|
|
|||
Net interest income after provision for credit losses
|
1,035
|
|
|
1,196
|
|
|
967
|
|
|||
Noninterest income
|
3,882
|
|
|
9,245
|
|
|
11,058
|
|
|||
Noninterest expenses
|
9,197
|
|
|
9,097
|
|
|
9,613
|
|
|||
Income before income taxes
|
(4,280
|
)
|
|
1,344
|
|
|
2,412
|
|
|||
Income tax expense (benefit)
|
(1,115
|
)
|
|
597
|
|
|
834
|
|
|||
Net income (loss) on discontinued operations
|
$
|
(3,165
|
)
|
|
$
|
747
|
|
|
$
|
1,578
|
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
||
Cash
|
$
|
3,681
|
|
|
$
|
2,611
|
|
Premises and equipment, net
|
10,637
|
|
|
11,061
|
|
||
Other assets
|
13,386
|
|
|
15,036
|
|
||
Investment in subsidiaries
|
2,202,530
|
|
|
1,263,545
|
|
||
Total assets
|
$
|
2,230,234
|
|
|
$
|
1,292,253
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Short-term borrowings
|
5,000
|
|
|
—
|
|
||
Long-term borrowings
|
157,057
|
|
|
148,201
|
|
||
Trust preferred capital notes
|
134,342
|
|
|
86,819
|
|
||
Other liabilities
|
9,254
|
|
|
10,904
|
|
||
Total liabilities
|
305,653
|
|
|
245,924
|
|
||
Total stockholders' equity
|
1,924,581
|
|
|
1,046,329
|
|
||
Total liabilities and stockholders' equity
|
$
|
2,230,234
|
|
|
$
|
1,292,253
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income:
|
|
|
|
|
|
|
|
|
|||
Interest and dividend income
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
23
|
|
Dividends received from subsidiaries
|
50,750
|
|
|
33,350
|
|
|
51,439
|
|
|||
Other operating income
|
2,719
|
|
|
1,308
|
|
|
1,314
|
|
|||
Total income
|
53,469
|
|
|
34,661
|
|
|
52,776
|
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|||
Interest expense
|
15,253
|
|
|
11,423
|
|
|
5,656
|
|
|||
Other operating expenses
|
13,782
|
|
|
7,130
|
|
|
5,214
|
|
|||
Total expenses
|
29,035
|
|
|
18,553
|
|
|
10,870
|
|
|||
Income before income taxes and equity in undistributed net income from subsidiaries
|
24,434
|
|
|
16,108
|
|
|
41,906
|
|
|||
Income tax benefit
|
(6,176
|
)
|
|
(9,169
|
)
|
|
(3,586
|
)
|
|||
Equity in undistributed net income from subsidiaries
|
115,638
|
|
|
47,646
|
|
|
31,984
|
|
|||
Net income
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
Comprehensive income
|
$
|
136,905
|
|
|
$
|
75,848
|
|
|
$
|
67,415
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
146,248
|
|
|
$
|
72,923
|
|
|
$
|
77,476
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Equity in undistributed net income of subsidiaries
|
(115,638
|
)
|
|
(47,646
|
)
|
|
(31,984
|
)
|
|||
Depreciation of premises and equipment
|
424
|
|
|
439
|
|
|
438
|
|
|||
Acquisition accounting amortization, net
|
636
|
|
|
260
|
|
|
247
|
|
|||
Gain on sale of investment
|
(1,416
|
)
|
|
—
|
|
|
—
|
|
|||
Issuance of common stock grants for services
|
914
|
|
|
724
|
|
|
533
|
|
|||
Net (increase) decrease in other assets
|
(584
|
)
|
|
(4,167
|
)
|
|
(2,402
|
)
|
|||
Net increase in other liabilities
|
(4,159
|
)
|
|
5,283
|
|
|
5,533
|
|
|||
Net cash and cash equivalents provided by operating activities
|
26,425
|
|
|
27,816
|
|
|
49,841
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|||
Net increase in premises and equipment
|
—
|
|
|
(35
|
)
|
|
(33
|
)
|
|||
Proceeds from sale of investment
|
3,761
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from (payments for) equity method investment
|
—
|
|
|
72
|
|
|
—
|
|
|||
Payments for investments in and advances to subsidiaries
|
—
|
|
|
—
|
|
|
(125,000
|
)
|
|||
Repayment of investments in and advances to subsidiaries
|
—
|
|
|
—
|
|
|
540
|
|
|||
Cash received in acquisitions
|
25,976
|
|
|
—
|
|
|
—
|
|
|||
Net cash and cash equivalents provided by (used in) investing activities
|
29,737
|
|
|
37
|
|
|
(124,493
|
)
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|||
Repayments of short-term borrowings
|
5,000
|
|
|
—
|
|
|
—
|
|
|||
Repayments of long-term borrowings
|
—
|
|
|
—
|
|
|
(7,500
|
)
|
|||
Proceeds from issuance of long-term borrowings
|
—
|
|
|
—
|
|
|
148,000
|
|
|||
Cash dividends paid
|
(58,001
|
)
|
|
(35,393
|
)
|
|
(33,672
|
)
|
|||
Cancellation of warrants
|
(1,530
|
)
|
|
—
|
|
|
—
|
|
|||
Issuance (repurchase) of common stock
|
2,347
|
|
|
1,037
|
|
|
(31,295
|
)
|
|||
Vesting of restricted stock, including tax effects
|
(2,908
|
)
|
|
(1,567
|
)
|
|
(586
|
)
|
|||
Net cash and cash equivalents provided by (used in) financing activities
|
(55,092
|
)
|
|
(35,923
|
)
|
|
74,947
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
1,070
|
|
|
(8,070
|
)
|
|
295
|
|
|||
Cash and cash equivalents at beginning of the period
|
2,611
|
|
|
10,681
|
|
|
10,386
|
|
|||
Cash and cash equivalents at end of the period
|
$
|
3,681
|
|
|
$
|
2,611
|
|
|
$
|
10,681
|
|
Supplemental schedule of noncash investing and financing activities
|
|
|
|
|
|
|
|
|
|||
Issuance of common stock in exchange for net assets in acquisition
|
$
|
794,809
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
Transactions related to bank acquisition
|
|
|
|
|
|
|
|
|
|||
Assets acquired
|
859,176
|
|
|
—
|
|
|
—
|
|
|||
Liabilities assumed
|
64,367
|
|
|
—
|
|
|
—
|
|
Name (Age)
|
|
Title and Principal Occupation
During at Least the Past Five Years
|
|
|
|
John C. Asbury (53)
|
|
Chief Executive Officer of the Company since January 2017 and President since October 2016;
Chief Executive Officer of the Bank since October 2016 and President of the Bank from October 2016 until September 2017 and May to September 2018;
President and Chief Executive Officer of First National Bank of Santa Fe from February 2015 until August 2016; Senior Executive Vice President and Head of the Business Services Group at Regions Bank from May 2010 until July 2014, after joining Regions Bank in March 2008 as Business Banking Division Executive; Senior Vice President at Bank of America in a variety of roles; joined the Company's Board of Directors in 2016.
|
|
|
|
Robert M. Gorman (60)
|
|
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 ODCM.
|
|
|
|
Maria P. Tedesco (58)
|
|
President of the Bank; most recently Chief Operating Officer for Retail at BMO Harris Bank based in Chicago from 2016 to 2018, where she was responsible for retail products, segments, customer experience, indirect auto, consumer lending, small business lending, business banking strategy, channels and risk; Senior Executive Vice President and Managing Director of the Retail Bank at Santander Bank, N.A., where she was responsible for leading the U.S. retail strategy and business channels, including branch network, online, mobile, investments, mortgage, call centers, ATMs, marketing, product marketing, customer experience and program management office; spent 19 years at Citizens Financial Group, Inc. ultimately becoming Group Executive Vice President and Executive Director of Retail Banking and Business Banking for the company.
|
|
|
|
David G. Bilko (60)
|
|
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 (54)
|
|
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 (50)
|
|
Executive Vice President and Chief Human Resources Officer of the Company since 2015; Senior Vice President and Director of Human Resources of the Bank 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.
|
Shawn E. O’Brien (46)
|
|
Executive Vice President and Consumer Banking Group Executive of the Bank since February 2019; Executive Vice President, Consumer Segment Group and Business Planning for BBVA Compass Bank from 2013 to 2018; various positions at BBVA Compass Bank, including Deposit and Payment Products, Strategic Planning and Corporate Planning and Analysis, from 2005 to 2013; retail brand strategy and product management at Huntington National Bank from 1998 to 2005.
|
David V. Ring (55)
|
|
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.
|
|
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
|
47,585
|
|
|
$
|
14.44
|
|
|
1,300,663
|
|
|
|
|
|
|
|
||||
Total
|
47,585
|
|
|
$
|
14.44
|
|
|
1,300,663
|
|
Exhibit No.
|
|
|
Description
|
2.01
|
|
|
|
|
|
|
|
2.02
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
10.01*
|
|
|
|
|
|
|
|
10.02*
|
|
|
|
|
|
|
|
10.03*
|
|
|
|
|
|
|
|
10.04*
|
|
|
|
|
|
|
|
10.05*
|
|
|
|
|
|
|
|
10.06*
|
|
|
|
|
|
|
|
10.07*
|
|
|
|
|
|
|
|
10.08*
|
|
|
|
|
|
|
|
10.08.1*
|
|
|
|
|
|
|
|
10.09*
|
|
|
|
|
|
|
|
10.10*
|
|
|
|
|
|
|
|
10.11*
|
|
|
|
|
|
|
|
10.12*
|
|
|
|
|
|
|
|
10.13*
|
|
|
|
|
|
|
|
10.14*
|
|
|
|
|
|
|
|
10.15*
|
|
|
|
|
|
|
|
10.16*
|
|
|
|
|
|
|
|
10.17*
|
|
|
|
|
|
|
|
10.18*
|
|
|
|
|
|
|
10.19
|
|
|
|
|
|
|
|
10.20*
|
|
|
|
|
|
|
|
10.21*
|
|
|
|
|
|
|
|
10.22
|
|
|
|
|
|
|
|
10.23
|
|
|
|
|
|
|
|
10.24*
|
|
|
|
|
|
|
|
10.25*
|
|
|
|
|
|
|
|
10.26*
|
|
|
|
|
|
|
|
10.27*
|
|
|
|
|
|
|
|
21.01
|
|
|
|
|
|
|
|
23.01
|
|
|
|
|
|
|
|
31.01
|
|
|
|
|
|
|
|
31.02
|
|
|
|
|
|
|
|
32.01
|
|
|
|
|
|
|
|
101.00
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Interactive data filed pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Balance Sheets as of December 31, 2018 and 2017, (ii) the Consolidated Statements of Income for the years ended December 31, 2018, 2017, and 2016, (iii) the Consolidated Statements of Comprehensive Income for the years ended December 31, 2018, 2017, and 2016, (iv) the Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2018, 2017, and 2016, (v) the Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017, and 2016 and (vi) the Notes to the Consolidated Financial Statements for the years ended December 31, 2018, 2017, and 2016.
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By:
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/s/ John C. Asbury
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Date: February 27, 2019
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John C. Asbury
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President and Chief Executive Officer
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Signature
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Title
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/s/ L. Bradford Armstrong
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Director
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L. Bradford Armstrong
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/s/ John C. Asbury
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Director, President, and Chief Executive Officer (principal executive officer)
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John C. Asbury
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/s/ Michael W. Clarke
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Director
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Michael W. Clarke
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/s/ Glen C. Combs
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Director
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Glen C. Combs
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/s/ Patrick E. Corbin
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Director
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Patrick E. Corbin
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/s/ Beverley E. Dalton
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Director
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Beverley E. Dalton
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/s/ Gregory L. Fisher
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Director
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Gregory L. Fisher
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/s/ Robert M. Gorman
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Executive Vice President and Chief Financial Officer (principal financial and accounting officer)
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Robert M. Gorman
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/s/ Daniel I. Hansen
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Director
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Daniel I. Hansen
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/s/ Jan S. Hoover
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Director
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Jan S. Hoover
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/s/ Patrick J. McCann
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Director
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Patrick J. McCann
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/s/ W. Tayloe Murphy, Jr.
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Director
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W. Tayloe Murphy, Jr.
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/s/ Alan W. Myers
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Director
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Alan W. Myers
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/s/ Thomas P. Rohman
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Director
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Thomas P. Rohman
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/s/ Linda V. Schreiner
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Director
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Linda V. Schreiner
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/s/ Raymond D. Smoot, Jr.
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Chairman of the Board of Directors
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Raymond D. Smoot, Jr.
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/s/ Thomas G. Snead, Jr.
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Director
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Thomas G. Snead, Jr.
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/s/ Ronald L. Tillett
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Vice Chairman of the Board of Directors
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Ronald L. Tillett
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/s/ Keith L. Wampler
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Director
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Keith L. Wampler
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/s/ F. Blair Wimbush
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Director
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F. Blair Wimbush
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Adoption Agreement Contents
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Page
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Option 1
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Employer's Adopting Plan
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Option 2
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General Plan Information
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Option 3
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Status of Plan and Effective Date(s)
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Option 4
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Definitions and Other Optional Provision
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Option 5
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Employer Contributions
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Option 6
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Vesting
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Option 7
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Retirement Dates
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Option 8
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Time and Form of Payments
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Option 9
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Hardship Withdrawals
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Option 10
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Participant Deemed Investment Direction
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2. GENERAL PLAN INFORMATION.
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(a) Name of Plan:
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Union Bankshares Corporation Executive's Deferred Compensation Plan
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(b) Name, Address and EIN of Plan Administrator(s): [If other than Plan Sponsor, appointment must be by resolution]
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3. STATUS OF PLAN AND EFFECTIVE DATE(S).
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(a)
Effective Date of Plan:
The Effective Date of the Plan is
January
1 ,
1998
.
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(b)
Plan Status
. The adoption of the Plan through this Adoption Agreement is:
[ ] (1)
Initial Establishment
. The initial adoption and establishment of the Plan.
[X] (2)
Restated Plan
. An amendment and restatement of the Plan (a Restated Plan).
(A)
Effective Date of this Restatement
. The Effective Date of this Restatement is
January
1 , 2019 .
(B)
Prior Plan
. The Plan was last maintained under document dated
January 1
,
2018
.
and was known as the Union Bankshares Corporation Executive's Deferred Compensation Plan
_______________________________________________________________________________
______________________________________________________________________________.
(C)
409A Transitional Provisions (grandfathering election)
:
[ ]
Election NOT to Grandfather Pre-January 1, 2005 Vested Balances
. If this Option is elected, all Deferral Accounts shall be subject to the rules set forth in the post-December 31, 2004 restatements.
If the Option is not elected, the Deferral Accounts attributable to transfers from predecessor plans prior to December 31, 2004 and contributions that are vested as of December 31, 2004 shall be segregated from the Deferral Accounts attributable to contributions that are not vested as of December 31, 2004 and to contributions and transfers made on and after January 1, 2005. The terms of the Plan in effect on and after January 1, 2005 shall only apply to transfers and contributions that are not vested as of December 31, 2004 and to contributions and transfers made on and after January 1, 2005.
[ ] (3)
Special or Other Transitional Provisions
. [Use attachment if additional space is needed]
[Enter any special provisions including alternate definitions or other transitional provisions relating to any Predecessor Plan Account and the Plan as restated]_________________________________
_______________________________________________________________________________
_______________________________________________________________________________
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[ ] (c) If elected, this Plan is intended to be paired with a qualified cash or deferred arrangement as described in subparagraph 3.1(d) of the basic plan document.
If Elected – Name of the paired plan __________________________________________________
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4. DEFINITIONS AND OTHER OPTIONAL PROVISIONS.
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(a) Compensation
Paragraph 1.10
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Compensation is used throughout the basic plan document for different purposes. The following specific rules apply.
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(1)
General Definition
. The Compensation definition in paragraph 1.10 of the basic plan document is modified as follows:
(A)
Salary
. Base salary and base wages subject to the following modifications or limitations:
_
including any commission based wages
_____________________________________
_________________________________________________________
_________________________________________________________
[Consider whether to fix the date for determining Salary. Consider whether to revise to exclude reductions for 401(k) and cafeteria plan contributions. Other revisions may be desired.]
(B)
Discretionary or Other Bonus
. All discretionary or other Bonuses unless otherwise provided:
_
Only bonuses or incentive payments that are considered Performance-Based Compensation under Treasury Reg 409A-1(e), with the exception of 2% bonus in lieu or the terminated Union Pension Plan which is also included as a qualified bonus under the plan.
_______________________________________________
[List excluded bonus or incentive programs. The Plan Sponsor may elect a Special Deferral Election Period for Performance-Based Compensation.]
(2)
Specific Definitions
. When used with respect to each type of contribution under the Plan, Compensation shall include:
(A)
Employee Deferral Contributions
. [Check all that apply]
[X] (a) Salary.
[X] (b) Bonuses.
(B)
Employer Non-Elective Contributions
. [Check all that apply]
(a) Salary.
(b) Bonuses.
(C)
Employer Matching Contributions
. [Check all that apply]
(a) Salary.
(b) Bonuses.
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(b) Eligible Employee
Paragraph 1.17
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Eligible Employee shall mean only the following:
[X] (1)
Determination by Board
. Any individual who is designated as an Eligible Employee by resolution of the [X] Plan Sponsor’s [ ]Employer’s Board. A copy of the resolution shall be attached to and incorporated by reference into the Plan.
[ ] (2)
Determination by CEO
. Any individual who is designated in writing as an Eligible Employee by resolution of the [ ] Plan Sponsor’s [ ] Employer’s Chief Executive Officer. A copy of the Chief Executive Officer’s designation shall be attached to and incorporated by reference into the Plan.
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[ ] (3)
Determined by Classification or Grade
. Any individual who is classified under the Employer’s personnel practices and policies as employed in the following grades or classifications:
_________________________________________________
_________________________________________________
[List executive classification to be included in plan coverage]
[ ] (4)
Determined by Position or Title
. Any individual who is employed in the following positions with the Employer:
_________________________________________________
_________________________________________________
[List the executive positions to be included in plan coverage]
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(c) Plan Year
Paragraph 1.24
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In the case of a Restated Plan which prior to the Effective Date of this Restatement was maintained on the basis of a Plan Year beginning on a date other than January 1, the Plan Year shall begin on
, ____ and end on ______, ______, with the short Plan Year beginning on
, _______ and ending on December 31, ________. Thereafter, the Plan Year shall be the 12-month period beginning each January 1.
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(d) Effective Date
of Coverage
Paragraph 2.1
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The effective date of coverage for an Eligible Employee shall be [Check one]
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[ ] (1)
Immediate
. The first day of the first payroll period beginning on or after the date the individual became an Eligible Employee.
[ ] (2)
Monthly
. The first day of the first payroll period beginning on or after the first day of _________ [Complete with 1
st
,
2
nd
, or other] month next following the date the individual became an Eligible Employee.
[ ] (3)
Semi-Annually
. The first day of the Plan Year or the first day of the seventh month of the Plan Year on or next following the date the individual became an Eligible Employee.
[X] (4)
Annually
. The first day of the Plan Year on or next following the date the individual became an Eligible Employee.
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(g) Rules Relating to
“Specified Employee”
Delay
Subparagraph 9.1(c)
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For purposes of applying the 6-month delay required by Section 409A for a Participant who is a “specified employee” (i.e., a “key employee” of any publicly-traded company):
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(1)
Specified Employee Identification Date
. Specified employees shall be identified in the following manner: [Check one of the following and complete, if applicable]
[ ] (A)
Established By Board Action or Other Document of Plan Sponsor
. The identification date and its effective date shall be established by the Plan Sponsor through the document set forth below, which may be an action of its Board or other written document: _________________________________
_________________________________________________ [Describe document establishing specified employee identification date]
[X] (B)
Default Dates in Regulations
. The identification date shall be December 31 and effective for distributions to be made during the 12-month period beginning on or after the following April 1, as provided in Treas. Reg. 1.409A-1(i).
[ ] (C)
Alternative Identification Date
. The identification date shall be ________________ (identification date) and effective for distributions to be made during the 12-month period beginning on or after the following _________ [enter date not later than the first day of the 4th month following the identification date]
The Specified Employee Identification Date must be the same date for all deferred compensation plans, programs, and agreements of the Plan Sponsor and its Affiliates.
(2)
Compensation to be Used in Determining Specified Employees
. Specified employees are (A) the 50 highest paid officers (or if less, the greater of 3 or 10% of employees) with compensation in excess of $175,000 (for 2017) (as adjusted from time to time), (B) 1% owners with compensation in excess of $150,000, or (C) 5% owners. The definition of compensation for this purpose shall be determined in the following manner: [Check one of the following and complete, if applicable]
[ ] (A)
Board Action or Other Document of Plan Sponsor
. The compensation used to identify specified employees shall be established by the Plan Sponsor though the document set forth below which may be an action of its Board or other written document that applies to all deferred compensation plans, programs, and agreements of the Plan Sponsor and its Affiliates.________________________________________________________________________________________
[Describe document establishing compensation definition]
[X] (B)
VBA Plan
. The compensation used to identify specified employees shall be the Total Compensation definition elected under the VBA Plan.
[ ] (C)
Alternative Compensation Definition
. The compensation used to determine specified employees shall be determined in the following manner _________________________________________________________[Describe the document establishing compensation definition or describe compensation based on an acceptable definition under Section 415 of the Code]
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(3)
Payment Rules Following Required Delay Period
. Upon the expiration of the required 6-month delay: [Check one of the following]
[X] (A)
Catch-Up Missed Payments
. Payments to which a specified employee would otherwise have been entitled during the 6-month delay will be accumulated and paid on the first day of the 7
th
month following the date of Separation from Service for reasons other than death.
[ ] (B)
Each Payment Delayed
. Each payment to which a specified employee would otherwise have been entitled during the 6-month delay will be delayed for 6 months.
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[X] (h) Rules Relating to
Final Check of Year
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If this Option is elected, Compensation payable after the last day of the calendar year solely for services performed during the final payroll period which contains the last day of the year will be treated as Compensation for services performed in the taxable year in which the payroll period began.
If this Option is not elected, Compensation payable after the last day of the calendar year solely for services performed during the final payroll period which contains the last day of the year will be treated as Compensation for services performed in the subsequent taxable year in which the payment is made.
Any change in election relating to the final check of the Participant’s taxable year may not be effective for 12 months from the date the amendment is adopted and executed.
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5. EMPLOYER CONTRIBUTIONS.
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(a) Employer Contributions
Paragraph 4.1
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The following contributions by the Employer are elected:
[X] (1)
None
. Employer contributions are not permitted.
(2)
Employer Non-Elective Contribution
.
(A)
Amount
. Each Employer shall make an Employer Non-Elective Contribution for each Plan Year in such amount, if any, which the Employer shall determine.
(i)
Flexible Formula
‑ Such amount, if any, which the Board of the Employer shall determine by resolution.
(ii)
Compensation Formula
- _________% [Insert percentage] of the Compensation for such Plan Year, plus any additional amount that the Board of the Employer shall determine by resolution.
(iii)
Fixed Amount
‑ $________________________ [Insert amount], plus any additional amount that the Board of the Employer shall determine by resolution.
(iv)
Other
- ________________________________
___________________________________________
___________________________________________
___________________________________________
(B)
Participants Entitled to Employer Non-Elective Contribution
. The Employer Non-Elective Contribution shall be allocated to the Employer Non-Elective Deferral Account of Participants who [Select applicable provisions which shall apply conjunctively unless otherwise noted]
(i) Are employed as Eligible Employees for at least ____________________
[Insert number of months] full calendar months in such Plan Year.
(ii) Are Eligible Employees at any time during such Plan Year.
(iii) Are Eligible Employees on the last day of such Plan Year.
(iv) If they died while Eligible Employees or retired on a Disability, Early, Normal or Delayed Retirement Date while an Eligible Employee during such Plan Year [Check one]
(a) But only if they are employed as an Eligible Employee for at least _________ [Insert number of months] full calendar months in such Plan Year.
(b) Regardless of the number of months employed during such Plan Year.
(v)
Other
- _____________________________________
___________________________________________
___________________________________________
___________________________________________
(3)
Employer Matching Contributions
.
(A)
Amount
. Each Employer shall make an Employer Matching Contribution for each Plan Year in an amount equal to the following percentage(s) of each Participant’s Deferral Contribution for such Plan Year [Check one]
(i)
Straight Percentage
‑ _______% [Insert percentage] of his Compensation contributed to the Plan (up to a maximum of _________% of such Compensation).
(ii)
Contribution Weighted Percentages
‑ _________% [Insert percentage] of the first _________% [Insert percentage] of his Compensation contributed to the Plan and ______% of his Compensation contributed to the Plan (up to a maximum of _________% of such Compensation).
(iii)
Other
- _____________________________________
___________________________________________
___________________________________________
___________________________________________
(B)
Participants Entitled to Employer Matching Contribution
. The Employer Matching Contribution shall be allocated to the Employer Matching Deferral Account of Participants who [Select applicable provisions which shall apply conjunctively unless otherwise noted]
(i) Are employed as an Eligible Employee for at least _________ [Insert number of months] full calendar months in such Plan Year.
(ii) Are Eligible Employees at any time during such Plan Year.
(iii) Are Eligible Employees on the last day of such Plan Year.
(iv) If they died while an Eligible Employee or retired on a Disability, Early, Normal or Delayed Retirement Date while an Eligible Employee during such Plan Year [Check one]
(a) But only if they are employed as an Eligible Employee for at least _____ [Insert number of months] full calendar months in such Plan Year.
(b) Regardless of the number of months employed during such Plan Year.
(v)
Other
- _____________________________________
___________________________________________
___________________________________________
___________________________________________
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6. VESTING.
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(a) Vesting Schedule
Paragraphs 6.2 and 6.3
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The following vesting schedule shall apply to the Employer Deferral Account
[Check one, and complete where applicable]
(1)
Employer Non-Elective Deferral Account
. The following vesting schedule shall apply to the Employer Non-Elective Deferral Account [Check one, and complete where applicable]
(A)
Apply Rules Described in Qualified Plan
. A Participant is vested in his Employer Non-Elective Deferral Account under the Plan in the same manner and applying the same rules applicable to employer profit sharing or other non-matching contributions under the following qualified retirement plan maintained by the Employer: ____________
________________________________________________
(B)
Always 100% Vested
. A Participant shall always have a non-forfeitable right to 100% of his Employer Non-Elective Deferral Account.
(C)
Other Applicable Rules
. A Participant shall be vested in his Employer Non-Elective Deferral Account in accordance with the following rules: __________________
________________________________________________
[Describe vesting provisions, including automatic vesting provisions, applicable schedule and rules for counting service]
(2)
Employer Matching Deferral Account
. The following vesting schedule shall apply to the Employer Matching Deferral Account [Check one, and complete where applicable]
(A)
Apply Rules Described in Qualified Plan
. A Participant is vested in his Employer Matching Deferral Account under the Plan in the same manner and applying the same rules applicable to matching contributions made under the following qualified retirement plan maintained by the Employer: _______________________________________
________________________________________________
(B)
Always 100% Vested
. A Participant shall always have a non-forfeitable right to 100% of his Employer Matching Deferral Account.
(C)
Other Applicable Rules
. A Participant shall be vested in his Employer Matching Deferral Account in accordance with the following rules: _________________
________________________________________________
________________________________________________
[Describe vesting provisions, including automatic vesting provisions, applicable schedule and rules for counting service]
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7. RETIREMENT DATES.
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(a) Normal Retirement Date Paragraph 8.1
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A participant's Normal Retirement Date shall be the day the Participant reaches age_________.
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(b) Early Retirement Date
Paragraph 8.3
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[X](1) None.
(2) No age requirement.
(3) Age requirement of _________________________ years.
(4) No service requirement.
(5) Service requirement of ________________________ years of continuous full-time service with the Employer.
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(c) Disability Retirement Date
Paragraph 8.4
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[Select and complete applicable provision(s)]
[X] (1) No age requirement.
(2) Age requirement of ________________________ years.
[X] (3) No service requirement.
(4) Service requirement of ________________________ years of continuous full-time service with the Employer.
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(1)
Selected By Plan Sponsor
. The Plan Sponsor selects the following time of payment:
(A)
Normal Retirement Date
. The later of the Participant’s Normal Retirement Date under the Plan or his Separation from Service (for reasons other than death).
(B)
Separation from Service
. The Participant’s Separation from Service for whatever reason.
(C)
Six Months Following Separation from Service
. Six months following the Participant’s Separation from Service (for reasons other than death).
If elected here , the Plan Sponsor elects for payment to be accelerated upon a Change in Control, but only with respect to contributions made after this Adoption Agreement is executed, unless the Plan Sponsor previously made such an election under Option 3(b)(3).
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[X] (2)
Selected By Participant
. The date selected by the Participant in accordance with the following:
(A)
Participant’s Options
. The Participant may elect that his Benefit Commencement Date be based on
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(i) The later of his Normal Retirement Date or his [X] Separation from Service (for reasons other than death) or [ ] six months following his Separation from Service (for reasons other than death). [Select one]
(ii) [X] His Separation from Service (for reasons other than death), or [ ] six months following his Separation from Service (for reasons other than death). [Select one]
(iii) A date certain stated clearly in his Deferred Compensation Election form which shall be without regard to when his employment with the Employer ends.
(iv) The later of a date certain or [X] his Separation from Service (for reasons other than death), or [ ] six months following his Separation from Service (for reasons other than death). [Select one]
(v) The earlier of a date certain or [X] his Separation from Service (for reasons other than death) or [ ] six months following his Separation from Service (for reasons other than death). [Select one]
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[X] (vi)
Change in Control
. The Participant may elect to have payment accelerated upon a Change in Control.
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(1)
Selected By Plan Sponsor
. The Plan Sponsor selects the following form of payment:
(A)
Lump Sum
. Deferral Benefits will be paid to the Participant in a single, lump-sum payment.
(B)
Periodic Installments
. Deferral Benefits will be paid to the Participant in periodic installment payments made:
(i)
Frequency
:
(a) Monthly.
(b) Annually.
(ii)
Duration
. Over the following period:
(a) Five (5) years.
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(b) Ten (10) years.
(c) Fifteen (15) years.
(d) Twenty (20) years.
[X] (2)
Selected By Participant
. The Participant may elect from among the following forms of payment [Select options to be available to Participants]
[X] (A)
Lump Sum
. Deferral Benefits may be paid to the Participant in a single, lump-sum payment.
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[X] (B)
Periodic Installments
. Deferral Benefits may be paid to the Participant in periodic installment payments made:
(i)
Frequency
:
[X] (a) Monthly.
[X] (b) Annually.
(ii)
Duration
. Over the following period:
[X] (a) Five (5) years.
[X] (b) Ten (10) years.
[X] (c) Fifteen (15) years.
[X] (d) Twenty (20) years.
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(c) Form of Payment to Beneficiary
Paragraph 9.2
|
Any unpaid portion of the Employer Non-Elective Deferral Account shall be paid in a single lump sum to the Beneficiary. The form of payment to the
Beneficiary for all other unpaid benefits will be determined as follows:
[Check one, and complete where applicable]
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(1)
Selected By Plan Sponsor
. The Plan Sponsor selects the following form of payment to the Beneficiary:
(A)
Lump Sum
. Deferral Benefits will be paid to the Beneficiary in a single, lump-sum payment.
(B)
Periodic Installments
. Deferral Benefits will be paid to the Beneficiary in periodic installment payments made:
(i)
Frequency
:
(a) Monthly.
(b) Annually.
(ii)
Duration
. Over the following period:
(a) Five (5) years.
(b) Ten (10) years.
(c) Fifteen (15) years.
(d) Twenty (20) years.
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(2)
Selected By Participant
. The Participant may elect the form of payment to the Beneficiary from among the following forms of payment [Select options to be available to Participants]
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[X] (A)
Lump Sum
. Deferral Benefits will be paid to the Beneficiary in a single, lump-sum payment.
[X] (B)
Periodic Installments
. Deferral Benefits will be paid to the Beneficiary in periodic installment payments made:
(i)
Frequency
:
[X] (a) Monthly.
[X] (b) Annually.
(ii)
Duration
. Over the following period:
[X] (a) Five (5) years.
[X] (b) Ten (10) years.
[X] (c) Fifteen (15) years.
[X] (d) Twenty (20) years.
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9. HARDSHIP WITHDRAWALS.
|
(a) Availability Generally
Paragraph 10.1
|
A Participant [Check one]
(1)
Not Permitted
. May not make Hardship Withdrawals.
[X] (2)
Permitted
. May make a Hardship Withdrawal for an Unforeseeable Emergency from the following accounts [Check one or more]
[X] (A) Employee Deferral Account.
(B) Employer Matching Deferral Account.
|
(C) Employer Non-Elective Deferral Account.
(D) Predecessor Plan Account.
|
10. PARTICIPANT DEEMED INVESTMENT DIRECTION.
|
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(a) Availability Generally
Paragraph 5.2
|
A Participant [Check one]
|
(1)
Not Permitted
. May not make deemed investment directions.
[X] (2)
Permitted
. May make deemed investment directions for the following accounts (“directable accounts”) [Check one or more]
[X] (A) Employee Deferral Account.
(B) Employer Matching Deferral Account.
(C) Employer Non-Elective Deferral Account.
(D) Predecessor Plan Account.
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(b) Permissible Investments
|
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Unless the Plan Sponsor elects a different option below, a Participant’s directable accounts may be invested in the investment funds which are designed to mirror the investment options available under the VBA Plan as adopted by the Plan Sponsor, to the extent legally practical, with alternate funds designated where collective investment funds may not be offered under a nonqualified plan.
[X] (1)
VBA Plan Plus Company Stock
. In addition to the funds available under the VBA Plan, a Company Stock Fund will also be available for directed investment.
(2)
VBA Plan Without Company Stock
. Regardless of whether a Company Stock Fund is available under the VBA Plan, no Company Stock Fund will be available for directed investment.
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(3)
Company Stock Only
. In lieu of the funds available under the VBA Plan, a Company Stock Fund will be the only fund available for directed investment.
|
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Union Bankshares Corporation
|
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[Enter Name of Plan Sponsor]
|
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By /s/ Loreen Lagatta
|
|
Its EVP, Chief Human Resource Officer
|
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[SEAL]
|
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ATTEST:
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/s/ Rachael R. Lape
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Its General Counsel and SVP
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[Enter Name of Employer]
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By
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Its
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[SEAL]
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ATTEST:
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Its
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[Enter Name of Employer]
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By
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Its
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[SEAL]
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ATTEST:
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Its
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UNION BANKSHARES CORPORATION
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RESOLUTIONS OF THE BOARD OF DIRECTORS
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December 6, 2018
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Amount
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Annual Retainer Cash Fees
(1)
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Service as a Director
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$35,000
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Service as Chairman of the Board of Directors
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$80,000 (additional)
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Service as Vice Chairman of the Board of Directors
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$20,000 (additional)
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Service as Chairman of Audit Committee
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$20,000 (additional)
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Service as Chairman of Compensation Committee
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$13,500 (additional)
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Service as Chairman of Risk Committee
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$15,000 (additional)
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Service as Chairman of Nominating and Corporate Governance Committee
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$10,000 (additional)
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Members of Audit, Risk, Compensation and Nominating and Corporate Governance Committees
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$8,000 (additional)
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Meeting Fees
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Executive Committee per meeting (in person)
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$1,000
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Executive Committee per meeting (telephonic lasting under an hour)
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$500
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Meetings above maximum per year number per Meeting
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$1,000
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Equity Compensation
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In addition to cash compensation, non-employee directors receive an annual stock retainer of $50,000 paid quarterly in advance in unrestricted shares of the Company’s stock.
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(1) The retainer fees are payable in advance in quarterly installments
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ACCESS NATIONAL CORPORATION
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Date: January 31, 2019
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By:
/s/ Robert C. Shoemaker
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Its:
EVP
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ACCESS NATIONAL BANK
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Date: January 31, 2019
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By:
/s/ Robert C. Shoemaker
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Its:
EVP
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EXECUTIVE
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Date: January 31, 2019
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/s/ Michael W. Clarke
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Agreed and Accepted:
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UNION BANKSHARES CORPORATION
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By: /s/ Loreen A. Lagatta
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Name: Loreen A. Lagatta
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Title: EVP & Chief Human Resource Officer
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Date:
January 31, 2019
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February 1, 2019
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/s/ Michael W. Clarke
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Date
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Michael W. Clarke
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Subsidiary
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State of Incorporation or Organization
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Union Bank & Trust
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Virginia
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Access Insurance Group, L.L.C.
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Virginia
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Capital Fiduciary Advisors, L.L.C.
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Virginia
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Dixon, Hubard, Feinour, & Brown, Inc.
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Virginia
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Middleburg Investment Services, LLC (formerly, Access Investment Services, L.L.C.)
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Virginia
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Middleburg Trust Company
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|
Virginia
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Old Dominion Capital Management, Inc.
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|
Virginia
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Outfitter Advisors. Ltd.
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Delaware
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Union Insurance Group, LLC
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Virginia
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Registration Statement Number
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Form
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Description
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333-220398
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Form S-3
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Common Stock, Preferred Stock, Debt Securities, Warrants, Purchase Contracts, Units
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333-156946
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Form S-3
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Fixed Rate Cumulative Perpetual Preferred Stock, Series A; Warrant to Purchase 422,636 Shares of Common Stock; 422,636 Shares of Common Stock
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333-102012
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Form S-3
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Common stock
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333-81199
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Form S-3
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Common stock
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333-203580
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Form S-8
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Union Bankshares Corporation Stock and Incentive Plan
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333-193364
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Form S-8
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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
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333-175808
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Form S-8
|
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Union First Market Bankshares Corporation 2011 Stock Incentive Plan
|
333-113842
|
|
Form S-8
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Union Bankshares Corporation Non-Employee Directors’ Stock Plan
|
333-113839
|
|
Form S-8
|
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Union Bankshares Corporation 2003 Stock Incentive Plan
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333-228455
|
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Form S-8 via post-effective amendment to Form S-4
|
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Access National Corporation 2017 Equity Compensation Plan and Access National Corporation 2009 Stock Option Plan
|
|
/s/ John C. Asbury
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|
John C. Asbury,
|
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President and Chief Executive Officer
|
|
/s/ Robert M. Gorman
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Robert M. Gorman,
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Executive Vice President and Chief Financial Officer
|
/s/ John C. Asbury
|
|
John C. Asbury,
|
|
President and Chief Executive Officer
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|
|
|
February 27, 2019
|
|
|
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/s/ Robert M. Gorman
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Robert M. Gorman,
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|
Executive Vice President and Chief Financial Officer
|
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