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ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Maine
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01-0393663
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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PO Box 400
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82 Main Street, Bar Harbor, ME
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|
04609-0400
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, par value $2.00 per share
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BHB
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NYSE American
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Page
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•
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Employee and customer experience is the foundation of superior performance, which leads to significant financial benefit to shareholders
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•
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Geography, heritage and performance are key while remaining true to a community culture
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•
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Strong commitment to risk management while balancing growth and earnings
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•
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Service and sales driven culture with a focus on core business growth
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•
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Fee income is fundamental to the Company's profitability through trust and treasury management services, customer derivatives and secondary market mortgage sales
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•
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Investment in processes, products, technology, training, leadership and infrastructure
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•
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Expansion of the Company’s brand and business to deepen market presence
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•
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Opportunity and growth for existing employees while adding catalyst recruits across all levels of the Company
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(in thousands, except percentages)
|
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
|
Amount
|
|
Percent of Total
|
|||||||||||||||
Commercial real estate
|
|
$
|
930,661
|
|
|
35
|
%
|
|
$
|
826,699
|
|
|
33
|
%
|
|
$
|
826,746
|
|
|
34
|
%
|
|
$
|
418,119
|
|
|
37
|
%
|
|
$
|
396,032
|
|
|
40
|
%
|
Commercial and industrial
|
|
423,291
|
|
|
16
|
|
|
404,870
|
|
|
16
|
|
|
379,423
|
|
|
15
|
|
|
151,240
|
|
|
13
|
|
|
126,158
|
|
|
13
|
|
|||||
Total commercial
|
|
1,353,952
|
|
|
51
|
|
|
1,231,569
|
|
|
49
|
|
|
1,206,169
|
|
|
49
|
|
|
569,359
|
|
|
50
|
|
|
522,190
|
|
|
53
|
|
|||||
Residential real estate
|
|
1,151,857
|
|
|
44
|
|
|
1,144,698
|
|
|
46
|
|
|
1,155,682
|
|
|
46
|
|
|
506,612
|
|
|
45
|
|
|
408,401
|
|
|
41
|
|
|||||
Consumer
|
|
135,283
|
|
|
5
|
|
|
113,960
|
|
|
5
|
|
|
123,762
|
|
|
5
|
|
|
53,093
|
|
|
5
|
|
|
59,479
|
|
|
6
|
|
|||||
Total loans
|
|
2,641,092
|
|
|
100
|
%
|
|
2,490,227
|
|
|
100
|
%
|
|
2,485,613
|
|
|
100
|
%
|
|
1,129,064
|
|
|
100
|
%
|
|
990,070
|
|
|
100
|
%
|
|||||
Allowance for loan losses
|
|
(15,353
|
)
|
|
|
|
(13,866
|
)
|
|
|
|
(12,325
|
)
|
|
|
|
(10,419
|
)
|
|
|
|
(9,439
|
)
|
|
|
||||||||||
Net loans
|
|
$
|
2,625,739
|
|
|
|
|
$
|
2,476,361
|
|
|
|
|
$
|
2,473,288
|
|
|
|
|
$
|
1,118,645
|
|
|
|
|
$
|
980,631
|
|
|
|
(in thousands)
|
|
Within 1 year
|
|
1 to 5 Years
|
|
More than 5 Years
|
|
Total
|
||||||||
Commercial real estate
|
|
$
|
18,647
|
|
|
$
|
122,942
|
|
|
$
|
789,072
|
|
|
$
|
930,661
|
|
Commercial and industrial
|
|
36,105
|
|
|
129,781
|
|
|
257,405
|
|
|
423,291
|
|
||||
Total commercial
|
|
54,752
|
|
|
252,723
|
|
|
1,046,477
|
|
|
1,353,952
|
|
||||
Residential real estate
|
|
389
|
|
|
15,489
|
|
|
1,135,979
|
|
|
1,151,857
|
|
||||
Consumer
|
|
5,784
|
|
|
30,928
|
|
|
98,571
|
|
|
135,283
|
|
||||
Total
|
|
$
|
60,925
|
|
|
$
|
299,140
|
|
|
$
|
2,281,027
|
|
|
$
|
2,641,092
|
|
(in thousands, except ratios)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Non-accruing loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
$
|
3,489
|
|
|
$
|
8,156
|
|
|
$
|
8,343
|
|
|
$
|
2,564
|
|
|
$
|
2,390
|
|
Commercial and industrial
|
|
1,836
|
|
|
2,331
|
|
|
1,209
|
|
|
315
|
|
|
308
|
|
|||||
Residential real estate
|
|
5,335
|
|
|
7,210
|
|
|
4,266
|
|
|
3,419
|
|
|
3,452
|
|
|||||
Consumer
|
|
890
|
|
|
538
|
|
|
500
|
|
|
198
|
|
|
830
|
|
|||||
Total non-performing loans
|
|
11,550
|
|
|
18,235
|
|
|
14,318
|
|
|
6,496
|
|
|
6,980
|
|
|||||
Real estate owned
|
|
2,236
|
|
|
2,351
|
|
|
122
|
|
|
90
|
|
|
256
|
|
|||||
Total non-performing assets
|
|
$
|
13,786
|
|
|
$
|
20,586
|
|
|
$
|
14,440
|
|
|
$
|
6,586
|
|
|
$
|
7,236
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Troubled debt restructurings (accruing)
|
|
$
|
890
|
|
|
$
|
1,657
|
|
|
$
|
1,046
|
|
|
$
|
2,713
|
|
|
$
|
2,336
|
|
Accruing loans 90+ days past due
|
|
267
|
|
|
246
|
|
|
510
|
|
|
—
|
|
|
28
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-performing loans/total loans
|
|
0.44
|
%
|
|
0.73
|
%
|
|
0.58
|
%
|
|
0.58
|
%
|
|
0.71
|
%
|
|||||
Total non-performing assets/total assets
|
|
0.38
|
|
|
0.57
|
|
|
0.41
|
|
|
0.38
|
|
|
0.46
|
|
(in thousands, except ratios)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance at beginning of year
|
|
$
|
13,866
|
|
|
$
|
12,325
|
|
|
$
|
10,419
|
|
|
$
|
9,439
|
|
|
$
|
8,969
|
|
Charged-off loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
212
|
|
|
553
|
|
|
275
|
|
|
133
|
|
|
667
|
|
|||||
Commercial and industrial
|
|
359
|
|
|
277
|
|
|
207
|
|
|
90
|
|
|
395
|
|
|||||
Residential real estate
|
|
349
|
|
|
383
|
|
|
255
|
|
|
141
|
|
|
70
|
|
|||||
Consumer
|
|
233
|
|
|
694
|
|
|
289
|
|
|
47
|
|
|
487
|
|
|||||
Total charged-off loans
|
|
1,153
|
|
|
1,907
|
|
|
1,026
|
|
|
411
|
|
|
1,619
|
|
|||||
Recoveries on charged-off loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
194
|
|
|
318
|
|
|
50
|
|
|
40
|
|
|
98
|
|
|||||
Commercial and industrial
|
|
65
|
|
|
83
|
|
|
11
|
|
|
289
|
|
|
54
|
|
|||||
Residential real estate
|
|
55
|
|
|
166
|
|
|
65
|
|
|
44
|
|
|
129
|
|
|||||
Consumer
|
|
9
|
|
|
101
|
|
|
18
|
|
|
39
|
|
|
23
|
|
|||||
Total recoveries on charged-off loans
|
|
323
|
|
|
668
|
|
|
144
|
|
|
412
|
|
|
304
|
|
|||||
Net charged-off
|
|
830
|
|
|
1,239
|
|
|
882
|
|
|
(1
|
)
|
|
1,315
|
|
|||||
Provision for loan losses
|
|
2,317
|
|
|
2,780
|
|
|
2,788
|
|
|
979
|
|
|
1,785
|
|
|||||
Balance at end of year
|
|
$
|
15,353
|
|
|
$
|
13,866
|
|
|
$
|
12,325
|
|
|
$
|
10,419
|
|
|
$
|
9,439
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs/average loans
|
|
0.03
|
%
|
|
0.05
|
%
|
|
0.04
|
%
|
|
—
|
%
|
|
0.14
|
%
|
|||||
Recoveries/charged-off loans
|
|
28.01
|
|
|
35.03
|
|
|
14.04
|
|
|
100.24
|
|
|
18.78
|
|
|||||
Allowance for loan losses/total loans
|
|
0.58
|
|
|
0.56
|
|
|
0.50
|
|
|
0.92
|
|
|
0.95
|
|
|||||
Allowance for loan losses/non-accruing loans
|
|
132.93
|
|
|
76.04
|
|
|
86.08
|
|
|
160.39
|
|
|
135.23
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(in thousands, except ratios)
|
|
Amount Allocated
|
|
Percent Allocated to Total Loans In Each Category
|
|
Amount Allocated
|
|
Percent Allocated to Total Loans In Each Category
|
|
Amount Allocated
|
|
Percent Allocated to Total Loans In Each Category
|
|
Amount Allocated
|
|
Percent Allocated to Total Loans In Each Category
|
|
Amount Allocated
|
|
Percent Allocated to Total Loans In Each Category
|
|||||||||||||||
Commercial real estate
|
|
$
|
7,816
|
|
|
0.84
|
%
|
|
$
|
6,984
|
|
|
0.84
|
%
|
|
$
|
6,134
|
|
|
0.74
|
%
|
|
$
|
5,145
|
|
|
1.23
|
%
|
|
$
|
4,430
|
|
|
1.12
|
%
|
Commercial and industrial
|
|
3,613
|
|
|
0.85
|
|
|
2,415
|
|
|
0.60
|
|
|
2,389
|
|
|
0.63
|
|
|
1,952
|
|
|
1.29
|
|
|
1,590
|
|
|
1.26
|
|
|||||
Residential real estate
|
|
3,545
|
|
|
0.31
|
|
|
4,059
|
|
|
0.35
|
|
|
3,416
|
|
|
0.30
|
|
|
2,721
|
|
|
0.54
|
|
|
2,747
|
|
|
0.67
|
|
|||||
Consumer
|
|
379
|
|
|
0.28
|
|
|
408
|
|
|
0.36
|
|
|
386
|
|
|
0.31
|
|
|
601
|
|
|
1.13
|
|
|
672
|
|
|
1.13
|
|
|||||
Total
|
|
$
|
15,353
|
|
|
0.58
|
%
|
|
$
|
13,866
|
|
|
0.56
|
%
|
|
$
|
12,325
|
|
|
0.50
|
%
|
|
$
|
10,419
|
|
|
0.92
|
%
|
|
$
|
9,439
|
|
|
0.95
|
%
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||
Obligations of US Government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,967
|
|
|
$
|
6,972
|
|
US Government-sponsored enterprises
|
|
319,065
|
|
|
321,969
|
|
|
413,492
|
|
|
404,952
|
|
|
447,081
|
|
|
443,003
|
|
||||||
US Government agency
|
|
98,568
|
|
|
99,661
|
|
|
111,938
|
|
|
110,512
|
|
|
96,357
|
|
|
95,596
|
|
||||||
Private label
|
|
20,212
|
|
|
19,533
|
|
|
20,353
|
|
|
20,382
|
|
|
529
|
|
|
674
|
|
||||||
Obligations of states and political subdivisions thereof
|
|
139,240
|
|
|
142,006
|
|
|
133,260
|
|
|
132,265
|
|
|
138,522
|
|
|
140,200
|
|
||||||
Corporate bonds
|
|
78,804
|
|
|
80,061
|
|
|
58,098
|
|
|
57,726
|
|
|
30,527
|
|
|
30,797
|
|
||||||
Total
|
|
$
|
655,889
|
|
|
$
|
663,230
|
|
|
$
|
737,141
|
|
|
$
|
725,837
|
|
|
$
|
719,983
|
|
|
$
|
717,242
|
|
|
|
Available for sale
|
|||||
(in thousands, except ratios)
|
|
Amortized Cost
|
|
Weighted Average Yield
|
|||
Within 1 year
|
|
$
|
—
|
|
|
—
|
%
|
Over 1 year to 5 years
|
|
33,179
|
|
|
4.66
|
|
|
Over 5 years to 10 years
|
|
55,285
|
|
|
3.83
|
|
|
Over 10 years
|
|
129,580
|
|
|
3.94
|
|
|
Total bonds and obligations
|
|
218,044
|
|
|
4.03
|
|
|
Mortgage-backed securities
|
|
437,845
|
|
|
2.88
|
|
|
Total securities available for sale
|
|
$
|
655,889
|
|
|
3.21
|
%
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(in thousands, except ratios)
|
|
Average Balance
|
|
Percent of Total Average Deposits
|
|
Weighted Average Rate
|
|
Average Balance
|
|
Percent of Total Average Deposits
|
|
Weighted Average Rate
|
|
Average Balance
|
|
Percent of Total Average Deposits
|
|
Weighted Average Rate
|
||||||||||||
Demand
|
|
$
|
394,243
|
|
|
16
|
%
|
|
—
|
%
|
|
$
|
354,499
|
|
|
15
|
%
|
|
—
|
%
|
|
$
|
339,303
|
|
|
15
|
%
|
|
—
|
%
|
NOW
|
|
491,701
|
|
|
20
|
|
|
0.49
|
|
|
456,591
|
|
|
20
|
|
|
0.42
|
|
|
455,064
|
|
|
20
|
|
|
0.25
|
|
|||
Savings
|
|
359,422
|
|
|
14
|
|
|
0.19
|
|
|
354,453
|
|
|
15
|
|
|
0.17
|
|
|
367,785
|
|
|
17
|
|
|
0.16
|
|
|||
Money market
|
|
347,963
|
|
|
13
|
|
|
1.32
|
|
|
281,258
|
|
|
12
|
|
|
0.78
|
|
|
300,905
|
|
|
14
|
|
|
0.49
|
|
|||
Time deposits
|
|
924,063
|
|
|
37
|
|
|
2.09
|
|
|
902,507
|
|
|
38
|
|
|
1.64
|
|
|
760,544
|
|
|
34
|
|
|
1.07
|
|
|||
Total
|
|
$
|
2,517,392
|
|
|
100
|
%
|
|
1.07
|
%
|
|
$
|
2,349,308
|
|
|
100
|
%
|
|
0.83
|
%
|
|
$
|
2,223,601
|
|
|
100
|
%
|
|
0.51
|
%
|
(in thousands, except ratios)
|
|
Amount
|
|
Weighted Average Rate
|
|||
Three months or less
|
|
$
|
103,071
|
|
|
1.58
|
%
|
Over 3 months through 6 months
|
|
33,219
|
|
|
2.05
|
|
|
Over 6 months through 12 months
|
|
45,212
|
|
|
1.68
|
|
|
Over 12 months
|
|
150,386
|
|
|
1.77
|
|
|
Total
|
|
$
|
331,888
|
|
|
1.83
|
%
|
|
|
Period Ending
|
||||||||||||||||
Index
|
|
12/31/14
|
|
|
12/31/15
|
|
|
12/31/16
|
|
|
12/31/17
|
|
|
12/31/18
|
|
|
12/31/19
|
|
Bar Harbor Bankshares
|
|
100.00
|
|
|
110.8
|
|
|
157.31
|
|
|
138.34
|
|
|
118.15
|
|
|
138.44
|
|
NYSE American Composite Index
|
|
100.00
|
|
|
96.03
|
|
|
107.62
|
|
|
127.96
|
|
|
116.72
|
|
|
146.76
|
|
SNL Bank $1B - $5B Index
|
|
100.00
|
|
|
111.94
|
|
|
161.04
|
|
|
171.69
|
|
|
150.42
|
|
|
182.85
|
|
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
(in millions, except ratios and share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Financial Condition Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
3,669
|
|
|
$
|
3,608
|
|
|
$
|
3,565
|
|
|
$
|
1,755
|
|
|
$
|
1,580
|
|
Total earning assets(1)
|
|
3,318
|
|
|
3,263
|
|
|
3,244
|
|
|
1,683
|
|
|
1,517
|
|
|||||
Total investments
|
|
684
|
|
|
761
|
|
|
755
|
|
|
554
|
|
|
526
|
|
|||||
Total loans
|
|
2,641
|
|
|
2,490
|
|
|
2,486
|
|
|
1,129
|
|
|
990
|
|
|||||
Allowance for loan losses
|
|
15
|
|
|
14
|
|
|
12
|
|
|
10
|
|
|
9
|
|
|||||
Total goodwill and intangible assets
|
|
127
|
|
|
108
|
|
|
108
|
|
|
5
|
|
|
5
|
|
|||||
Total deposits
|
|
2,696
|
|
|
2,483
|
|
|
2,352
|
|
|
1,050
|
|
|
943
|
|
|||||
Total borrowings
|
|
531
|
|
|
724
|
|
|
830
|
|
|
537
|
|
|
475
|
|
|||||
Total shareholders' equity
|
|
396
|
|
|
371
|
|
|
355
|
|
|
157
|
|
|
154
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest and dividend income
|
|
$
|
135
|
|
|
$
|
127
|
|
|
$
|
116
|
|
|
$
|
57
|
|
|
$
|
55
|
|
Total interest expense
|
|
45
|
|
|
36
|
|
|
24
|
|
|
12
|
|
|
10
|
|
|||||
Net interest income
|
|
90
|
|
|
91
|
|
|
92
|
|
|
45
|
|
|
45
|
|
|||||
Non-interest income
|
|
29
|
|
|
28
|
|
|
26
|
|
|
13
|
|
|
9
|
|
|||||
Net revenue(2)
|
|
119
|
|
|
119
|
|
|
118
|
|
|
58
|
|
|
54
|
|
|||||
Provision for loan losses
|
|
2
|
|
|
3
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|||||
Total non-interest expense
|
|
90
|
|
|
75
|
|
|
72
|
|
|
36
|
|
|
31
|
|
|||||
Income tax expense(3)
|
|
4
|
|
|
8
|
|
|
17
|
|
|
6
|
|
|
6
|
|
|||||
Net income
|
|
23
|
|
|
33
|
|
|
27
|
|
|
15
|
|
|
15
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios and Other Data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per Common Share Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings
|
|
$
|
1.46
|
|
|
$
|
2.13
|
|
|
$
|
1.71
|
|
|
$
|
1.65
|
|
|
$
|
1.69
|
|
Diluted earnings
|
|
1.45
|
|
|
2.12
|
|
|
1.70
|
|
|
1.63
|
|
|
1.67
|
|
|||||
Total book value
|
|
25.48
|
|
|
23.87
|
|
|
22.96
|
|
|
17.19
|
|
|
17.10
|
|
|||||
Dividends
|
|
0.86
|
|
|
0.79
|
|
|
0.75
|
|
|
0.73
|
|
|
0.67
|
|
|||||
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
High
|
|
27.58
|
|
|
30.95
|
|
|
33.41
|
|
|
33.25
|
|
|
25.32
|
|
|||||
Low
|
|
21.24
|
|
|
21.25
|
|
|
25.09
|
|
|
19.69
|
|
|
19.31
|
|
|||||
Close
|
|
25.39
|
|
|
22.43
|
|
|
27.01
|
|
|
31.55
|
|
|
22.95
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
|
15,541
|
|
|
15,488
|
|
|
15,184
|
|
|
9,069
|
|
|
8,970
|
|
|||||
Diluted
|
|
15,587
|
|
|
15,564
|
|
|
15,290
|
|
|
9,143
|
|
|
9,090
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
(in millions, except ratios and share data)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Performance Ratios:(4)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on assets
|
|
0.62
|
%
|
|
0.93
|
%
|
|
0.75
|
%
|
|
0.89
|
%
|
|
0.98
|
%
|
|||||
Return on equity
|
|
5.82
|
|
|
9.22
|
|
|
7.41
|
|
|
9.21
|
|
|
10.01
|
|
|||||
Interest rate spread
|
|
2.56
|
|
|
2.68
|
|
|
2.99
|
|
|
2.86
|
|
|
3.09
|
|
|||||
Net interest margin (fully taxable equivalent)(5)
|
|
2.78
|
|
|
2.87
|
|
|
3.10
|
|
|
2.96
|
|
|
3.19
|
|
|||||
Dividend payout ratio
|
|
59.09
|
|
|
36.99
|
|
|
44.26
|
|
|
44.04
|
|
|
39.86
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Organic Growth Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total commercial loans
|
|
6.0
|
%
|
|
1.4
|
%
|
|
23.8
|
%
|
|
9.2
|
%
|
|
11.2
|
%
|
|||||
Total loans
|
|
1.9
|
|
|
0.2
|
|
|
13.1
|
|
|
14.0
|
|
|
7.7
|
|
|||||
Total deposits
|
|
(1.8
|
)
|
|
5.6
|
|
|
14.4
|
|
|
11.4
|
|
|
9.9
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality and Condition Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-accruing loans/total loans
|
|
0.44
|
%
|
|
0.73
|
%
|
|
0.58
|
%
|
|
0.58
|
%
|
|
0.71
|
%
|
|||||
Net charge-offs/average loans
|
|
0.03
|
|
|
0.05
|
|
|
0.04
|
|
|
—
|
|
|
0.14
|
|
|||||
Allowance for loan losses/total loans(6)
|
|
0.58
|
|
|
0.56
|
|
|
0.50
|
|
|
0.92
|
|
|
0.95
|
|
|||||
Loans/deposits
|
|
98
|
|
|
100
|
|
|
106
|
|
|
108
|
|
|
105
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 capital to average assets - Company
|
|
8.13
|
%
|
|
8.53
|
%
|
|
8.10
|
%
|
|
8.94
|
%
|
|
9.37
|
%
|
|||||
Tier 1 capital to risk-weighted assets - Company
|
|
11.39
|
|
|
12.68
|
|
|
12.19
|
|
|
15.01
|
|
|
15.55
|
|
|||||
Tier 1 capital to average assets - Bank
|
|
8.39
|
|
|
8.74
|
|
|
8.58
|
|
|
9.06
|
|
|
9.49
|
|
|||||
Tier 1 capital to risk-weighted assets - Bank
|
|
11.79
|
|
|
12.99
|
|
|
12.92
|
|
|
15.20
|
|
|
15.77
|
|
|||||
Shareholders equity to total assets
|
|
10.80
|
|
|
10.27
|
|
|
9.95
|
|
|
8.93
|
|
|
9.76
|
|
(1)
|
Earning assets includes non-accruing loans and securities that are valued at amortized cost.
|
(2)
|
Net revenue is defined as net interest income plus non-interest income.
|
(3)
|
In December 2017, the Tax Cuts and Jobs Act of 2017 was enacted, and the Company recognized a $4.0 million write-down of its deferred tax assets and liabilities upon revaluation using the lower federal corporate income tax rate of 21.0%
|
(4)
|
All performance ratios are based on average balance sheet amounts, where applicable.
|
(5)
|
Fully taxable equivalent considers the impact of tax advantaged securities and loans.
|
(6)
|
Generally accepted accounting principles require that loans acquired in a business combination be recorded at fair value, whereas loans from business activities are recorded at cost. The fair value of loans acquired in a business combination includes expected loan losses, and there is no loan loss allowance recorded for these loans at the time of acquisition. Accordingly, the ratio of the loan loss allowance to total loans is reduced as a result of the existence of such loans, and this measure is not directly comparable to prior periods. Similarly, net loan charge-offs are normally reduced for loans acquired in a business combination since these loans are recorded net of expected loan losses. Therefore, the ratio of net loan charge-offs to average loans is reduced as a result of the existence of such loans, and this measure is not directly comparable to prior periods. Other institutions may have loans acquired in a business combination, and therefore there may be no direct comparability of these ratios between and among other institutions.
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
(in millions, except ratios)
|
|
Average Balance
|
|
Interest(3)
|
|
Average Yield/Rate (3)
|
|
Average Balance
|
|
Interest(3)
|
|
Average Yield/Rate (3)
|
|
Average Balance
|
|
Interest(3)
|
|
Average Yield/Rate (3)
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial real estate
|
|
$
|
875
|
|
|
$
|
42
|
|
|
4.73
|
%
|
|
$
|
829
|
|
|
$
|
38
|
|
|
4.56
|
%
|
|
$
|
774
|
|
|
$
|
33
|
|
|
4.24
|
%
|
Commercial and industrial
|
|
411
|
|
|
19
|
|
|
4.72
|
|
|
390
|
|
|
18
|
|
|
4.57
|
|
|
337
|
|
|
16
|
|
|
4.73
|
|
||||||
Residential real estate
|
|
1,158
|
|
|
45
|
|
|
3.91
|
|
|
1,133
|
|
|
44
|
|
|
3.85
|
|
|
1,159
|
|
|
44
|
|
|
3.79
|
|
||||||
Consumer
|
|
116
|
|
|
6
|
|
|
5.11
|
|
|
118
|
|
|
6
|
|
|
4.73
|
|
|
127
|
|
|
6
|
|
|
4.34
|
|
||||||
Total loans(1)
|
|
2,560
|
|
|
113
|
|
|
4.38
|
|
|
2,470
|
|
|
106
|
|
|
4.24
|
|
|
2,397
|
|
|
99
|
|
|
4.10
|
|
||||||
Securities and other(2)
|
|
743
|
|
|
25
|
|
|
3.42
|
|
|
762
|
|
|
25
|
|
|
3.23
|
|
|
757
|
|
|
24
|
|
|
3.10
|
|
||||||
Total earning assets
|
|
3,303
|
|
|
138
|
|
|
4.16
|
%
|
|
3,232
|
|
|
131
|
|
|
4.00
|
%
|
|
3,154
|
|
|
123
|
|
|
3.86
|
%
|
||||||
Cash and due from banks
|
|
81
|
|
|
|
|
|
|
58
|
|
|
|
|
|
|
67
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
(15
|
)
|
|
|
|
|
|
(13
|
)
|
|
|
|
|
|
(12
|
)
|
|
|
|
|
||||||||||||
Goodwill and other intangible assets
|
|
109
|
|
|
|
|
|
|
108
|
|
|
|
|
|
|
108
|
|
|
|
|
|
||||||||||||
Other assets
|
|
170
|
|
|
|
|
|
|
140
|
|
|
|
|
|
|
148
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
3,648
|
|
|
|
|
|
|
$
|
3,525
|
|
|
|
|
|
|
$
|
3,465
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NOW
|
|
$
|
492
|
|
|
$
|
2
|
|
|
0.49
|
%
|
|
$
|
457
|
|
|
$
|
2
|
|
|
0.42
|
%
|
|
$
|
455
|
|
|
$
|
1
|
|
|
0.25
|
%
|
Savings
|
|
359
|
|
|
1
|
|
|
0.19
|
|
|
354
|
|
|
1
|
|
|
0.17
|
|
|
368
|
|
|
1
|
|
|
0.16
|
|
||||||
Money market
|
|
348
|
|
|
5
|
|
|
1.32
|
|
|
281
|
|
|
2
|
|
|
0.78
|
|
|
301
|
|
|
2
|
|
|
0.49
|
|
||||||
Time
|
|
924
|
|
|
19
|
|
|
2.09
|
|
|
903
|
|
|
15
|
|
|
1.64
|
|
|
760
|
|
|
8
|
|
|
1.07
|
|
||||||
Total interest bearing deposits
|
|
2,123
|
|
|
27
|
|
|
1.27
|
|
|
1,995
|
|
|
20
|
|
|
0.98
|
|
|
1,884
|
|
|
12
|
|
|
0.60
|
|
||||||
Borrowings
|
|
708
|
|
|
19
|
|
|
2.61
|
|
|
790
|
|
|
17
|
|
|
2.16
|
|
|
863
|
|
|
13
|
|
|
1.46
|
|
||||||
Total interest bearing liabilities
|
|
2,831
|
|
|
46
|
|
|
1.61
|
%
|
|
2,785
|
|
|
37
|
|
|
1.31
|
%
|
|
2,747
|
|
|
25
|
|
|
0.87
|
%
|
||||||
Non-interest bearing demand deposits
|
|
394
|
|
|
|
|
|
|
355
|
|
|
|
|
|
|
340
|
|
|
|
|
|
||||||||||||
Other liabilities
|
|
34
|
|
|
|
|
|
|
28
|
|
|
|
|
|
|
27
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
3,259
|
|
|
|
|
|
|
3,168
|
|
|
|
|
|
|
3,114
|
|
|
|
|
|
||||||||||||
Total shareholders' equity
|
|
389
|
|
|
|
|
|
|
357
|
|
|
|
|
|
|
351
|
|
|
|
|
|
||||||||||||
Total liabilities and shareholders' equity
|
|
$
|
3,648
|
|
|
|
|
|
|
$
|
3,525
|
|
|
|
|
|
|
$
|
3,465
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income
|
|
|
|
$
|
92
|
|
|
|
|
|
|
$
|
93
|
|
|
|
|
|
|
$
|
98
|
|
|
|
|||||||||
Net interest margin
|
|
|
|
|
|
2.78
|
%
|
|
|
|
|
|
2.87
|
%
|
|
|
|
|
|
3.10
|
%
|
||||||||||||
Net interest spread
|
|
|
|
|
|
2.56
|
|
|
|
|
|
|
2.68
|
|
|
|
|
|
|
2.99
|
|
(1)
|
The average balances of loans include non-accrual loans and unamortized deferred fees and costs.
|
(2)
|
The average balance for securities is based on amortized cost.
|
(3)
|
Fully taxable equivalent considers the impact of tax-advantaged securities and loans.
|
|
|
2019 Compared with 2018
|
|
2018 Compared with 2017
|
||||||||||||||||||||
|
|
Increases (Decreases) due to
|
|
Increases (Decreases) due to
|
||||||||||||||||||||
(in thousands)
|
|
Rate
|
|
Volume
|
|
Net
|
|
Rate
|
|
Volume
|
|
Net
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
|
$
|
1,631
|
|
|
$
|
2,123
|
|
|
$
|
3,754
|
|
|
$
|
2,583
|
|
|
$
|
2,295
|
|
|
$
|
4,878
|
|
Commercial and industrial(1)
|
|
619
|
|
|
962
|
|
|
1,581
|
|
|
(644
|
)
|
|
2,553
|
|
|
1,909
|
|
||||||
Residential
|
|
708
|
|
|
920
|
|
|
1,628
|
|
|
655
|
|
|
(961
|
)
|
|
(306
|
)
|
||||||
Consumer
|
|
373
|
|
|
(120
|
)
|
|
253
|
|
|
616
|
|
|
(486
|
)
|
|
130
|
|
||||||
Total loans
|
|
3,331
|
|
|
3,885
|
|
|
7,216
|
|
|
3,210
|
|
|
3,401
|
|
|
6,611
|
|
||||||
Securities
|
|
1,394
|
|
|
(608
|
)
|
|
786
|
|
|
818
|
|
|
323
|
|
|
1,141
|
|
||||||
Total interest income
|
|
$
|
4,725
|
|
|
$
|
3,277
|
|
|
$
|
8,002
|
|
|
$
|
4,028
|
|
|
$
|
3,724
|
|
|
$
|
7,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NOW
|
|
$
|
344
|
|
|
$
|
142
|
|
|
$
|
486
|
|
|
$
|
736
|
|
|
$
|
4
|
|
|
$
|
740
|
|
Savings
|
|
108
|
|
|
13
|
|
|
121
|
|
|
113
|
|
|
(72
|
)
|
|
41
|
|
||||||
Money market
|
|
1,897
|
|
|
527
|
|
|
2,424
|
|
|
842
|
|
|
(98
|
)
|
|
744
|
|
||||||
Time deposits
|
|
4,130
|
|
|
352
|
|
|
4,482
|
|
|
5,163
|
|
|
1,525
|
|
|
6,688
|
|
||||||
Total deposits
|
|
6,479
|
|
|
1,034
|
|
|
7,513
|
|
|
6,854
|
|
|
1,359
|
|
|
8,213
|
|
||||||
Borrowings
|
|
3,357
|
|
|
(1,857
|
)
|
|
1,500
|
|
|
5,507
|
|
|
(1,067
|
)
|
|
4,440
|
|
||||||
Total interest expense
|
|
$
|
9,836
|
|
|
$
|
(823
|
)
|
|
$
|
9,013
|
|
|
$
|
12,361
|
|
|
$
|
292
|
|
|
$
|
12,653
|
|
Change in net interest income
|
|
$
|
(5,111
|
)
|
|
$
|
4,100
|
|
|
$
|
(1,011
|
)
|
|
$
|
(8,333
|
)
|
|
$
|
3,432
|
|
|
$
|
(4,901
|
)
|
(1)
|
Includes a lower tax equivalency adjustment due to a lower federal corporate tax rate of 21% in 2019 and 2018 and 35% in 2017.
|
|
|
|
|
At or For The Years Ended December 31,
|
||||||||||
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
(in thousands)
|
|
|
|
|
|
|
|
|
||||||
GAAP net income
|
|
|
|
$
|
22,620
|
|
|
$
|
32,937
|
|
|
$
|
25,993
|
|
Plus (less):
|
|
|
|
|
|
|
|
|
||||||
(Gain) loss on sale of securities, net
|
|
|
|
(237
|
)
|
|
924
|
|
|
(19
|
)
|
|||
Loss on sale of premises and equipment, net
|
|
|
|
18
|
|
|
—
|
|
|
94
|
|
|||
Loss on other real estate owned
|
|
|
|
166
|
|
|
20
|
|
|
—
|
|
|||
Loss on debt extinguishment
|
|
|
|
1,096
|
|
|
—
|
|
|
—
|
|
|||
Acquisition, restructuring and other expenses
|
|
|
|
8,317
|
|
|
1,728
|
|
|
3,302
|
|
|||
Income tax expense(1)
|
|
|
|
(2,232
|
)
|
|
(635
|
)
|
|
(1,269
|
)
|
|||
Tax reform charge
|
|
|
|
—
|
|
|
—
|
|
|
3,988
|
|
|||
Total adjusted income(2)
|
|
(A)
|
|
$
|
29,748
|
|
|
$
|
34,974
|
|
|
$
|
32,089
|
|
GAAP net interest income
|
|
(B)
|
|
$
|
89,810
|
|
|
$
|
90,883
|
|
|
$
|
92,155
|
|
Plus: Non-interest income
|
|
|
|
29,069
|
|
|
27,935
|
|
|
25,982
|
|
|||
Total Revenue
|
|
|
|
118,879
|
|
|
118,818
|
|
|
118,137
|
|
|||
(Less) plus: (Gain) loss on sale of securities, net
|
|
|
|
(237
|
)
|
|
924
|
|
|
(19
|
)
|
|||
Total adjusted revenue(2)
|
|
(C)
|
|
$
|
118,642
|
|
|
$
|
119,742
|
|
|
$
|
118,118
|
|
GAAP total non-interest expense
|
|
|
|
$
|
89,733
|
|
|
$
|
75,539
|
|
|
$
|
72,726
|
|
Less: Loss on sale of premises and equipment, net
|
|
|
|
(18
|
)
|
|
—
|
|
|
(94
|
)
|
|||
Less: Loss on other real estate owned
|
|
|
|
(166
|
)
|
|
(20
|
)
|
|
—
|
|
|||
Less: Loss on debt extinguishment
|
|
|
|
(1,096
|
)
|
|
—
|
|
|
—
|
|
|||
Less: Acquisition, restructuring and other expenses
|
|
|
|
(8,317
|
)
|
|
(1,728
|
)
|
|
(3,302
|
)
|
|||
Adjusted non-interest expense(2)
|
|
(D)
|
|
$
|
80,136
|
|
|
$
|
73,791
|
|
|
$
|
69,330
|
|
|
|
|
|
|
|
|
|
|
||||||
(in millions)
|
|
|
|
|
|
|
|
|
|
|||||
Average earning assets
|
|
(E)
|
|
$
|
3,303
|
|
|
$
|
3,233
|
|
|
$
|
3,154
|
|
Average assets
|
|
(F)
|
|
3,649
|
|
|
3,525
|
|
|
3,464
|
|
|||
Average shareholders' equity
|
|
(G)
|
|
389
|
|
|
357
|
|
|
351
|
|
|||
Average tangible shareholders' equity(2)(3)
|
|
(H)
|
|
280
|
|
|
249
|
|
|
243
|
|
|||
Tangible shareholders' equity, period-end(2)(3)
|
|
(I)
|
|
269
|
|
|
263
|
|
|
246
|
|
|||
Tangible assets, period-end(2)(3)
|
|
(J)
|
|
3,542
|
|
|
3,501
|
|
|
3,457
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
(in thousands)
|
|
|
|
|
|
|
|
|
||||||
Common shares outstanding, period-end
|
|
(K)
|
|
15,558
|
|
|
15,523
|
|
|
15,443
|
|
|||
Average diluted shares outstanding
|
|
(L)
|
|
15,587
|
|
|
15,564
|
|
|
15,290
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Adjusted earnings per share, diluted(2)
|
|
(A/L)
|
|
$
|
1.91
|
|
|
$
|
2.25
|
|
|
$
|
2.10
|
|
Tangible book value per share, period-end(2)
|
|
(I/K)
|
|
17.30
|
|
|
16.94
|
|
|
15.94
|
|
|||
Securities adjustment, net of tax(1)(4)
|
|
(M)
|
|
5,549
|
|
|
(8,663
|
)
|
|
1,711
|
|
|||
Tangible book value per share, excluding securities adjustment(2)
|
|
(I+M)/K
|
|
16.94
|
|
|
17.50
|
|
|
15.83
|
|
|||
Tangible shareholders' equity/tangible assets(2)
|
|
(I/J)
|
|
7.60
|
|
|
7.51
|
|
|
7.12
|
|
|
|
|
|
At or For The Years Ended December 31,
|
||||||||||
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Performance ratios(5)
|
|
|
|
|
|
|
|
|
|
|||||
GAAP return on assets
|
|
|
|
0.62
|
%
|
|
0.93
|
%
|
|
0.75
|
%
|
|||
Adjusted return on assets(2)
|
|
(A/F)
|
|
0.82
|
|
|
0.99
|
|
|
0.93
|
|
|||
GAAP return on equity
|
|
|
|
5.82
|
|
|
9.22
|
|
|
7.41
|
|
|||
Adjusted return on equity(2)
|
|
(A/G)
|
|
7.65
|
|
|
9.79
|
|
|
9.15
|
|
|||
Adjusted return on tangible equity(2)(3)(6)
|
|
(A/H)
|
|
10.86
|
|
|
14.29
|
|
|
13.40
|
|
|||
Efficiency ratio(2)(7)
|
|
(D-O-Q)/(C+N)
|
|
64.95
|
|
|
59.27
|
|
|
55.44
|
|
|||
Net interest margin(2)
|
|
(B+P)/E
|
|
2.78
|
|
|
2.87
|
|
|
3.10
|
|
|||
|
|
|
|
|
|
|
|
|
||||||
Supplementary data
|
|
|
|
|
|
|
|
|
||||||
Taxable equivalent adjustment for efficiency ratio
|
|
(N)
|
|
$
|
2,692
|
|
|
$
|
2,554
|
|
|
$
|
4,391
|
|
Franchise taxes included in non-interest expense
|
|
(O)
|
|
469
|
|
|
479
|
|
|
599
|
|
|||
Tax equivalent adjustment for net interest margin
|
|
(P)
|
|
2,048
|
|
|
1,986
|
|
|
5,615
|
|
|||
Intangible amortization
|
|
(Q)
|
|
861
|
|
|
828
|
|
|
812
|
|
(1)
|
Assumes a marginal tax rate of 23.87% in 2019, 23.78% in 2018 and 37.57% in 2017.
|
(2)
|
Non-GAAP financial measure.
|
(3)
|
Tangible shareholders' equity is computed by taking total shareholders' equity less the intangible assets at period-end. Tangible assets is computed by taking total assets less the intangible assets at period-end.
|
(4)
|
Securities adjustment, net of tax represents the total unrealized gain on securities recorded on the Company's consolidated balance sheets within total common shareholders' equity.
|
(5)
|
All performance ratios are based on average balance sheet amounts, where applicable.
|
(6)
|
Adjusted return on tangible equity is computed by taking adjusted income divided by shareholder's equity less tax-effected amortization of intangibles assets, assuming a marginal tax rate of 23.87% in 2019, 23.78% in 2018 and 37.57% in 2017%.
|
(7)
|
Efficiency ratio is computed by using adjusted non-interest expense net of franchise taxes and intangible amortization divided by adjusted revenue tax effected for tax-advantaged assets using a marginal tax rate of 23.87% in 2019, 23.78% in 2018 and 37.57% in 2017.
|
(in thousands)
|
|
Total
|
|
Less than One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
After Five Years
|
||||||||||
FHLB Borrowings
|
|
$
|
426,564
|
|
|
$
|
303,286
|
|
|
$
|
114,662
|
|
|
$
|
8,300
|
|
|
$
|
316
|
|
Subordinated Notes
|
|
59,920
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,920
|
|
|||||
Operating lease obligations
|
|
12,008
|
|
|
1,194
|
|
|
2,421
|
|
|
2,409
|
|
|
5,984
|
|
|||||
Purchase obligations
|
|
20,398
|
|
|
3,369
|
|
|
6,659
|
|
|
5,812
|
|
|
4,558
|
|
|||||
Total Contractual Obligations
|
|
$
|
518,890
|
|
|
$
|
307,849
|
|
|
$
|
123,742
|
|
|
$
|
16,521
|
|
|
$
|
70,778
|
|
•
|
Allowance for Loan Losses
|
•
|
Acquired Loans
|
•
|
Income Taxes
|
•
|
Goodwill and Identifiable Intangible Assets
|
•
|
Determination of Other-Than-Temporary Impairment of Securities
|
•
|
Fair Value of Financial Instruments
|
•
|
A flat interest rate scenario in which current prevailing rates are locked in and the only balance sheet fluctuations that occur are due to cash flows, maturities, new volumes, and re-pricing volumes consistent with this flat rate assumption;
|
•
|
A 200 basis point rise or decline in interest rates applied against a parallel shift in the yield curve over a twelve-month horizon together with a dynamic balance sheet anticipated to be consistent with such interest rate changes;
|
•
|
Various non-parallel shifts in the yield curve, including changes in either short-term or long-term rates over a twelve-month horizon, together with a dynamic balance sheet anticipated to be consistent with such interest rate changes; and
|
•
|
An extension of the foregoing simulations to each of two, three, four and five year horizons to determine the interest rate risk with the level of interest rates stabilizing in years two through five. Even though rates remain stable during this two to five year time period, re-pricing opportunities driven by maturities, cash flow, and adjustable rate products will continue to change the balance sheet profile for each of the interest rate conditions.
|
Change in Interest Rates-Basis Points (Rate Ramp)
|
|
1 - 12 Months
|
|
13 - 24 Months
|
||||||||||
(in thousands, except ratios)
|
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
||||||
At December 31, 2019
|
|
|
|
|
|
|
|
|
||||||
-100
|
|
$
|
(961
|
)
|
|
(1.0
|
)%
|
|
$
|
(3,645
|
)
|
|
(3.7
|
)%
|
+200
|
|
651
|
|
|
0.7
|
|
|
3,246
|
|
|
3.3
|
|
||
|
|
|
|
|
|
|
|
|
||||||
At December 31, 2018
|
|
|
|
|
|
|
|
|
||||||
-100
|
|
1,471
|
|
|
1.7
|
|
|
603
|
|
|
0.7
|
|
||
+200
|
|
(3,220
|
)
|
|
(3.7
|
)
|
|
(7,161
|
)
|
|
(8.3
|
)
|
(in thousands, except share data)
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
37,261
|
|
|
$
|
35,208
|
|
Interest-bearing deposit with the Federal Reserve Bank
|
|
19,649
|
|
|
63,546
|
|
||
Total cash and cash equivalents
|
|
56,910
|
|
|
98,754
|
|
||
Securities available for sale, at fair value
|
|
663,230
|
|
|
725,837
|
|
||
Federal Home Loan Bank stock
|
|
20,679
|
|
|
35,659
|
|
||
Total securities
|
|
683,909
|
|
|
761,496
|
|
||
Loans:
|
|
|
|
|
||||
Commercial real estate
|
|
930,661
|
|
|
826,699
|
|
||
Commercial and industrial
|
|
423,291
|
|
|
404,870
|
|
||
Residential real estate
|
|
1,151,857
|
|
|
1,144,698
|
|
||
Consumer
|
|
135,283
|
|
|
113,960
|
|
||
Total loans
|
|
2,641,092
|
|
|
2,490,227
|
|
||
Less: Allowance for loan losses
|
|
(15,353
|
)
|
|
(13,866
|
)
|
||
Net loans
|
|
2,625,739
|
|
|
2,476,361
|
|
||
Premises and equipment, net
|
|
51,205
|
|
|
48,804
|
|
||
Other real estate owned
|
|
2,236
|
|
|
2,351
|
|
||
Goodwill
|
|
118,649
|
|
|
100,085
|
|
||
Other intangible assets, net
|
|
8,641
|
|
|
7,459
|
|
||
Cash surrender value of bank-owned life insurance
|
|
75,863
|
|
|
73,810
|
|
||
Deferred tax assets, net
|
|
3,865
|
|
|
9,514
|
|
||
Other assets
|
|
42,111
|
|
|
29,853
|
|
||
Total assets
|
|
$
|
3,669,128
|
|
|
$
|
3,608,487
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
||||
Demand
|
|
$
|
414,534
|
|
|
$
|
370,889
|
|
NOW
|
|
575,809
|
|
|
484,717
|
|
||
Savings
|
|
388,683
|
|
|
358,888
|
|
||
Money market
|
|
384,090
|
|
|
335,951
|
|
||
Time
|
|
932,635
|
|
|
932,793
|
|
||
Total deposits
|
|
2,695,751
|
|
|
2,483,238
|
|
||
Borrowings:
|
|
|
|
|
||||
Senior
|
|
471,396
|
|
|
680,823
|
|
||
Subordinated
|
|
59,920
|
|
|
42,973
|
|
||
Total borrowings
|
|
531,316
|
|
|
723,796
|
|
||
Other liabilities
|
|
45,654
|
|
|
30,874
|
|
||
Total liabilities
|
|
3,272,721
|
|
|
3,237,908
|
|
||
(continued)
|
||||||||
|
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
|
|
|
||
Capital stock, par value $2.00; authorized 20,000,000 shares; issued 16,428,388 and 16,428,388 shares at December 31, 2019 and December 31, 2018, respectively
|
|
32,857
|
|
|
32,857
|
|
||
Additional paid-in capital
|
|
188,536
|
|
|
187,653
|
|
||
Retained earnings
|
|
175,780
|
|
|
166,526
|
|
||
Accumulated other comprehensive loss
|
|
3,911
|
|
|
(11,802
|
)
|
||
Less: 870,257 and 905,201 shares of treasury stock at December 31, 2019 and December 31, 2018, respectively, at cost
|
|
(4,677
|
)
|
|
(4,655
|
)
|
||
Total shareholders’ equity
|
|
396,407
|
|
|
370,579
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
3,669,128
|
|
|
$
|
3,608,487
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|||||
Loans
|
|
$
|
111,042
|
|
|
$
|
104,015
|
|
|
$
|
94,976
|
|
Securities and other
|
|
24,349
|
|
|
23,436
|
|
|
21,093
|
|
|||
Total interest and dividend income
|
|
135,391
|
|
|
127,451
|
|
|
116,069
|
|
|||
Interest expense
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
27,034
|
|
|
19,521
|
|
|
11,307
|
|
|||
Borrowings
|
|
18,547
|
|
|
17,047
|
|
|
12,607
|
|
|||
Total interest expense
|
|
45,581
|
|
|
36,568
|
|
|
23,914
|
|
|||
Net interest income
|
|
89,810
|
|
|
90,883
|
|
|
92,155
|
|
|||
Provision for loan losses
|
|
2,317
|
|
|
2,780
|
|
|
2,788
|
|
|||
Net interest income after provision for loan losses
|
|
87,493
|
|
|
88,103
|
|
|
89,367
|
|
|||
Non-interest income
|
|
|
|
|
|
|
|
|
|
|||
Trust and investment management fee income
|
|
12,063
|
|
|
11,985
|
|
|
12,270
|
|
|||
Insurance brokerage service income
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|||
Customer service fees
|
|
10,127
|
|
|
9,538
|
|
|
8,484
|
|
|||
(Loss) gain on sales of securities, net
|
|
237
|
|
|
(924
|
)
|
|
19
|
|
|||
Bank-owned life insurance income
|
|
2,053
|
|
|
1,821
|
|
|
1,539
|
|
|||
Customer derivative income
|
|
2,028
|
|
|
860
|
|
|
—
|
|
|||
Other income
|
|
2,561
|
|
|
4,655
|
|
|
2,573
|
|
|||
Total non-interest income
|
|
29,069
|
|
|
27,935
|
|
|
25,982
|
|
|||
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
45,000
|
|
|
40,964
|
|
|
39,589
|
|
|||
Occupancy and equipment
|
|
14,214
|
|
|
12,386
|
|
|
11,061
|
|
|||
Loss on premises and equipment, net
|
|
18
|
|
|
—
|
|
|
94
|
|
|||
Outside services
|
|
1,818
|
|
|
2,408
|
|
|
3,000
|
|
|||
Professional services
|
|
2,191
|
|
|
1,474
|
|
|
1,655
|
|
|||
Communication
|
|
821
|
|
|
804
|
|
|
1,289
|
|
|||
Marketing
|
|
1,872
|
|
|
1,743
|
|
|
945
|
|
|||
Amortization of intangible assets
|
|
861
|
|
|
828
|
|
|
812
|
|
|||
Loss on debt extinguishment
|
|
1,096
|
|
|
—
|
|
|
—
|
|
|||
Acquisition, restructuring and other expenses
|
|
8,317
|
|
|
1,728
|
|
|
3,302
|
|
|||
Other expenses
|
|
13,525
|
|
|
13,204
|
|
|
10,979
|
|
|||
Total non-interest expense
|
|
89,733
|
|
|
75,539
|
|
|
72,726
|
|
|||
|
|
|
|
|
|
|
||||||
Income before income taxes
|
|
26,829
|
|
|
40,499
|
|
|
42,623
|
|
|||
Income tax expense
|
|
4,209
|
|
|
7,562
|
|
|
16,630
|
|
|||
Net income
|
|
$
|
22,620
|
|
|
$
|
32,937
|
|
|
$
|
25,993
|
|
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|||
Basic
|
|
$
|
1.46
|
|
|
$
|
2.13
|
|
|
$
|
1.71
|
|
Diluted
|
|
$
|
1.45
|
|
|
$
|
2.12
|
|
|
$
|
1.70
|
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
||||||
Basic
|
|
15,541
|
|
|
15,488
|
|
|
15,184
|
|
|||
Diluted
|
|
15,587
|
|
|
15,564
|
|
|
15,290
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
22,620
|
|
|
$
|
32,937
|
|
|
$
|
25,993
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
||||||
Changes in unrealized loss on securities available for sale
|
|
18,646
|
|
|
(8,563
|
)
|
|
526
|
|
|||
Changes in unrealized loss on derivative hedges
|
|
2,216
|
|
|
654
|
|
|
(838
|
)
|
|||
Changes in unrealized loss on post-retirement plans
|
|
(350
|
)
|
|
(216
|
)
|
|
(326
|
)
|
|||
Income taxes related to other comprehensive income (loss):
|
|
|
|
|
|
|
||||||
Changes in unrealized loss on securities available for sale
|
|
(4,434
|
)
|
|
1,978
|
|
|
(114
|
)
|
|||
Changes in unrealized loss on derivative hedges
|
|
(448
|
)
|
|
(168
|
)
|
|
386
|
|
|||
Changes in unrealized loss on post-retirement plans
|
|
83
|
|
|
47
|
|
|
138
|
|
|||
Total other comprehensive income (loss)
|
|
15,713
|
|
|
(6,268
|
)
|
|
(228
|
)
|
|||
Total comprehensive income
|
|
$
|
38,333
|
|
|
$
|
26,669
|
|
|
$
|
25,765
|
|
(in thousands, except share data)
|
|
Common stock amount
|
|
Additional paid-in capital
|
|
Retained earnings
|
|
Accumulated other comprehensive income (loss)
|
|
Treasury stock
|
|
Total
|
||||||||||||
Balance at December 31, 2016
|
|
$
|
13,577
|
|
|
$
|
23,027
|
|
|
$
|
130,489
|
|
|
$
|
(4,326
|
)
|
|
$
|
(6,027
|
)
|
|
$
|
156,740
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
25,993
|
|
|
—
|
|
|
—
|
|
|
25,993
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
|
(228
|
)
|
||||||
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
25,993
|
|
|
(228
|
)
|
|
—
|
|
|
25,765
|
|
||||||
Cash dividends declared ($0.75 per share)
|
|
—
|
|
|
—
|
|
|
(11,505
|
)
|
|
—
|
|
|
—
|
|
|
(11,505
|
)
|
||||||
Acquisition of Lake Sunapee Bank Group (6,245,780 shares)
|
|
8,328
|
|
|
173,591
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
181,919
|
|
||||||
Treasury stock purchased (9,603 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(282
|
)
|
|
(282
|
)
|
||||||
Net issuance (91,517 shares) to employee stock plans, including related tax effects
|
|
—
|
|
|
(222
|
)
|
|
—
|
|
|
—
|
|
|
968
|
|
|
746
|
|
||||||
Three-for-two stock split
|
|
10,952
|
|
|
(10,968
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
||||||
Recognition of stock based compensation
|
|
—
|
|
|
1,274
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,274
|
|
||||||
Balance at December 31, 2017
|
|
$
|
32,857
|
|
|
$
|
186,702
|
|
|
$
|
144,977
|
|
|
$
|
(4,554
|
)
|
|
$
|
(5,341
|
)
|
|
$
|
354,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
32,937
|
|
|
—
|
|
|
—
|
|
|
32,937
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,268
|
)
|
|
—
|
|
|
(6,268
|
)
|
||||||
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
32,937
|
|
|
(6,268
|
)
|
|
—
|
|
|
26,669
|
|
||||||
Cash dividends declared ($0.79 per share)
|
|
—
|
|
|
—
|
|
|
(12,184
|
)
|
|
—
|
|
|
—
|
|
|
(12,184
|
)
|
||||||
Treasury stock purchased (10,899 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(324
|
)
|
|
(324
|
)
|
||||||
Net issuance (101,460 shares) to employee stock plans, including related tax effects
|
|
—
|
|
|
(395
|
)
|
|
—
|
|
|
—
|
|
|
1,010
|
|
|
615
|
|
||||||
Modified retrospective basis adoption of Revenue Recognition Accounting Codification Standard 606
|
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
—
|
|
|
(184
|
)
|
||||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income for adoption of ASU 2018-02
|
|
—
|
|
|
—
|
|
|
980
|
|
|
(980
|
)
|
|
—
|
|
|
—
|
|
||||||
Recognition of stock based compensation
|
|
—
|
|
|
1,346
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,346
|
|
||||||
Balance at December 31, 2018
|
|
$
|
32,857
|
|
|
$
|
187,653
|
|
|
$
|
166,526
|
|
|
$
|
(11,802
|
)
|
|
$
|
(4,655
|
)
|
|
$
|
370,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
|
—
|
|
|
—
|
|
|
22,620
|
|
|
—
|
|
|
—
|
|
|
22,620
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,713
|
|
|
—
|
|
|
15,713
|
|
||||||
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
22,620
|
|
|
15,713
|
|
|
—
|
|
|
38,333
|
|
||||||
Cash dividends declared ($0.86 per share)
|
|
—
|
|
|
—
|
|
|
(13,366
|
)
|
|
—
|
|
|
—
|
|
|
(13,366
|
)
|
||||||
Treasury stock purchased (9,195 shares)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(239
|
)
|
|
(239
|
)
|
||||||
Net issuance (34,944 shares) to employee stock plans, including related tax effects
|
|
—
|
|
|
(490
|
)
|
|
—
|
|
|
—
|
|
|
217
|
|
|
(273
|
)
|
||||||
Recognition of stock based compensation
|
|
—
|
|
|
1,373
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,373
|
|
||||||
Balance at December 31, 2019
|
|
$
|
32,857
|
|
|
$
|
188,536
|
|
|
$
|
175,780
|
|
|
$
|
3,911
|
|
|
$
|
(4,677
|
)
|
|
$
|
396,407
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
||||
Net income
|
|
$
|
22,620
|
|
|
$
|
32,937
|
|
|
$
|
25,993
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Provision for loan losses
|
|
2,317
|
|
|
2,780
|
|
|
2,788
|
|
|||
Net amortization of securities
|
|
3,341
|
|
|
3,945
|
|
|
5,214
|
|
|||
Deferred tax benefit
|
|
1,101
|
|
|
(443
|
)
|
|
6,886
|
|
|||
Change in unamortized net loan costs and premiums
|
|
(555
|
)
|
|
(600
|
)
|
|
(933
|
)
|
|||
Premises and equipment depreciation
|
|
4,136
|
|
|
3,704
|
|
|
3,553
|
|
|||
Stock-based compensation expense
|
|
1,373
|
|
|
1,346
|
|
|
1,274
|
|
|||
Accretion of purchase accounting entries, net
|
|
(3,806
|
)
|
|
(3,512
|
)
|
|
(3,337
|
)
|
|||
Amortization of other intangibles
|
|
861
|
|
|
828
|
|
|
812
|
|
|||
Income from cash surrender value of bank-owned life insurance policies
|
|
(2,053
|
)
|
|
(1,821
|
)
|
|
(1,539
|
)
|
|||
(Gain) loss on sales of securities, net
|
|
(237
|
)
|
|
924
|
|
|
(19
|
)
|
|||
Loss on other real estate owned
|
|
166
|
|
|
—
|
|
|
—
|
|
|||
Loss on premises and equipment, net
|
|
18
|
|
|
—
|
|
|
94
|
|
|||
Net change in other assets and liabilities
|
|
7,121
|
|
|
(2,366
|
)
|
|
(432
|
)
|
|||
Net cash provided by operating activities
|
|
36,403
|
|
|
37,722
|
|
|
40,354
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
||||
Proceeds from sales of securities available for sale
|
|
92,315
|
|
|
29,107
|
|
|
1,599
|
|
|||
Proceeds from maturities, calls and prepayments of securities available for sale
|
|
115,334
|
|
|
95,629
|
|
|
121,583
|
|
|||
Purchases of securities available for sale
|
|
(129,189
|
)
|
|
(146,763
|
)
|
|
(172,116
|
)
|
|||
Net change in loans
|
|
(150,831
|
)
|
|
(5,158
|
)
|
|
(145,449
|
)
|
|||
Purchase of Federal Home Loan Bank stock
|
|
(11,687
|
)
|
|
(2,676
|
)
|
|
(11,986
|
)
|
|||
Proceeds from sale of Federal Home Loan Bank stock
|
|
26,667
|
|
|
5,122
|
|
|
10,661
|
|
|||
Purchase of premises and equipment, net
|
|
(9,185
|
)
|
|
(4,793
|
)
|
|
(3,157
|
)
|
|||
Purchase of bank-owned life insurance
|
|
—
|
|
|
(14,000
|
)
|
|
—
|
|
|||
Acquisitions, net of cash acquired
|
|
(18,383
|
)
|
|
—
|
|
|
39,537
|
|
|||
Net investment in tax credit limited partnerships
|
|
(22
|
)
|
|
(585
|
)
|
|
—
|
|
|||
Proceeds from sale of other real estate owned
|
|
—
|
|
|
153
|
|
|
322
|
|
|||
Net cash used in investing activities
|
|
(84,981
|
)
|
|
(43,964
|
)
|
|
(159,006
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
||||
Net increase in deposits
|
|
212,693
|
|
|
131,981
|
|
|
151,900
|
|
|||
Net change in short-term FHLB borrowings
|
|
(308,380
|
)
|
|
37,000
|
|
|
(68,368
|
)
|
|||
Proceeds from advances from the Federal Home Loan Bank
|
|
328,097
|
|
|
42,700
|
|
|
221,168
|
|
|||
Repayments of advances from the Federal Home Loan Bank
|
|
(237,719
|
)
|
|
(180,982
|
)
|
|
(92,539
|
)
|
|||
Net change in short-term other borrowings
|
|
8,621
|
|
|
(4,495
|
)
|
|
(222
|
)
|
|||
Proceeds from subordinated debt issuance
|
|
40,000
|
|
|
—
|
|
|
—
|
|
|||
Repayments of subordinated debt
|
|
(22,000
|
)
|
|
—
|
|
|
—
|
|
|||
Payment of subordinated debt issuance costs
|
|
(700
|
)
|
|
—
|
|
|
—
|
|
|||
Exercise of stock options
|
|
(273
|
)
|
|
615
|
|
|
746
|
|
|||
Purchase of treasury stock
|
|
(239
|
)
|
|
(324
|
)
|
|
(282
|
)
|
|||
Cash dividends paid on common stock
|
|
(13,366
|
)
|
|
(12,184
|
)
|
|
(11,505
|
)
|
|||
Net cash provided by financing activities
|
|
6,734
|
|
|
14,311
|
|
|
200,898
|
|
|||
(continued)
|
||||||||||||
Net change in cash and cash equivalents
|
|
(41,844
|
)
|
|
8,069
|
|
|
82,246
|
|
|||
Cash and cash equivalents at beginning of year
|
|
98,754
|
|
|
90,685
|
|
|
8,439
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
56,910
|
|
|
$
|
98,754
|
|
|
$
|
90,685
|
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
||||
Interest paid
|
|
$
|
45,755
|
|
|
$
|
36,511
|
|
|
$
|
21,399
|
|
Income taxes paid, net
|
|
2,371
|
|
|
9,891
|
|
|
9,084
|
|
|||
|
|
|
|
|
|
|
||||||
Acquisition of non-cash assets and liabilities:
|
|
|
|
|
|
|
||||||
Assets acquired
|
|
243,676
|
|
|
—
|
|
|
1,454,076
|
|
|||
Liabilities assumed
|
|
261,814
|
|
|
—
|
|
|
1,406,672
|
|
|||
|
|
|
|
|
|
|
||||||
Other non-cash changes:
|
|
|
|
|
|
|
||||||
Real estate owned acquired in settlement of loans
|
|
250
|
|
|
2,380
|
|
|
32
|
|
|||
Initial recognition of operating lease right-of-use assets
|
|
8,991
|
|
|
—
|
|
|
—
|
|
|||
Initial recognition of operating lease liabilities
|
|
8,991
|
|
|
—
|
|
|
—
|
|
Standard
|
Description
|
Required Date of Adoption
|
Effect on financial statements
|
Standards Adopted in 2019
|
|||
ASU 2016-02, Leases
|
This ASU creates ASU Topic 842, Leases, and supersedes Topic 840, Leases. The new guidance requires lessees to record a right-of-use asset and a corresponding liability equal to the present value of future rental payments on their balance sheets for all leases with a term greater than one year. There are not significant changes to lessor accounting; however, there are certain improvements made to align lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. This guidance expands both quantitative and qualitative required disclosures. This ASU is required to be adopted on a modified retrospective basis and allows for practical expedients and elections in conjunction with implementation. The Company may elect some of the expedients upon the adoption date, which may be applied prospectively or retrospectively.
|
January 1, 2019
|
The Company adopted this ASU as of January 1, 2019 including the election of the practical expedients, allowing for existing leases to be accounted for consistent with current guidance, with the exception of balance sheet recognition for lessees. A modified retrospective transition approach was utilized, applying the new standard to all leases existing at the date of initial application. At January 1, 2019 the Company recognized a right-of-use asset and corresponding lease liability of $9.0 million. This computation is based, primarily, on the present value of unpaid future minimum lease payments. Additionally, that amount is impacted by assumptions around renewals and/or extensions, and the interest rate used to discount those future lease obligations. Due to the limited size of the Company's leasing portfolio, many other items related to this standard don't apply, or had an immaterial impact on the Company's consolidated financial statements. For transitional disclosures see Note 17 - Leases.
|
ASU 2018-11 Practical Expedients to Topic 842, Leases
|
|||
ASU 2018-20 Scope Improvements for Lessors
|
|||
ASU 2019-01 Leases: Codification Improvements
|
|||
ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities
|
This ASU amends Accounting Standards Codification ("ASC") 815, Derivatives and Hedging to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities by better aligning the entity's financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers.
|
January 1, 2019
|
The Company adopted this ASU as of January 1, 2019, although it did not have a material impact on the Company's consolidated financial statements, disclosures were updated to comply with the guidance. For further detail see Note 13 - Derivative Financial Instruments and Hedging Activities.
|
ASU 2018-16, Inclusion of Overnight Financing Rate or Overnight Swap Rate as a Benchmark for Hedge Accounting
|
|||
ASU 2018-07, Share Based Payment Accounting
|
This ASU expands the scope of Topic 718, Compensation- Stock Compensation to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity-Based Payments to non-employees.
|
January 1, 2019
|
The Company adopted this ASU as of January 1, 2019, with no material impact on the Company's consolidated financial statements.
|
(in thousands)
|
|
Amortized Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|||||||
US Government-sponsored enterprises
|
|
$
|
319,064
|
|
|
$
|
4,985
|
|
|
$
|
(2,080
|
)
|
|
$
|
321,969
|
|
US Government agency
|
|
98,568
|
|
|
1,640
|
|
|
(547
|
)
|
|
99,661
|
|
||||
Private label
|
|
20,212
|
|
|
68
|
|
|
(747
|
)
|
|
19,533
|
|
||||
Obligations of states and political subdivisions thereof
|
|
139,240
|
|
|
3,034
|
|
|
(268
|
)
|
|
142,006
|
|
||||
Corporate bonds
|
|
78,804
|
|
|
1,478
|
|
|
(221
|
)
|
|
80,061
|
|
||||
Total securities available for sale
|
|
$
|
655,888
|
|
|
$
|
11,205
|
|
|
$
|
(3,863
|
)
|
|
$
|
663,230
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
US Government-sponsored enterprises
|
|
$
|
413,492
|
|
|
$
|
904
|
|
|
$
|
(9,444
|
)
|
|
$
|
404,952
|
|
US Government agency
|
|
111,938
|
|
|
509
|
|
|
(1,935
|
)
|
|
110,512
|
|
||||
Private label
|
|
20,353
|
|
|
113
|
|
|
(84
|
)
|
|
20,382
|
|
||||
Obligations of states and political subdivisions thereof
|
|
133,260
|
|
|
1,081
|
|
|
(2,076
|
)
|
|
132,265
|
|
||||
Corporate bonds
|
|
58,098
|
|
|
264
|
|
|
(636
|
)
|
|
57,726
|
|
||||
Total securities available for sale
|
|
$
|
737,141
|
|
|
$
|
2,871
|
|
|
$
|
(14,175
|
)
|
|
$
|
725,837
|
|
|
|
Available for sale
|
||||||
(in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Within 1 year
|
|
$
|
—
|
|
|
$
|
—
|
|
Over 1 year to 5 years
|
|
33,179
|
|
|
34,004
|
|
||
Over 5 years to 10 years
|
|
57,285
|
|
|
58,138
|
|
||
Over 10 years
|
|
127,580
|
|
|
129,925
|
|
||
Total bonds and obligations
|
|
218,044
|
|
|
222,067
|
|
||
Mortgage-backed securities
|
|
437,844
|
|
|
441,163
|
|
||
Total securities available for sale
|
|
$
|
655,888
|
|
|
$
|
663,230
|
|
(in thousands)
|
|
Proceeds from Sale of Securities Available for Sale
|
|
Realized Gains
|
|
Realized Losses
|
|
Net
|
||||||||
2019
|
|
$
|
92,315
|
|
|
$
|
993
|
|
|
$
|
(756
|
)
|
|
$
|
237
|
|
2018
|
|
29,107
|
|
|
—
|
|
|
(924
|
)
|
|
(924
|
)
|
||||
2017
|
|
1,599
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
|
Less Than Twelve Months
|
|
Over Twelve Months
|
|
Total
|
||||||||||||||||||
(in thousands)
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses |
|
Fair
Value |
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
US Government-sponsored enterprises
|
|
$
|
1,074
|
|
|
$
|
43,429
|
|
|
$
|
1,006
|
|
|
$
|
49,712
|
|
|
$
|
2,080
|
|
|
$
|
93,141
|
|
US Government agency
|
|
432
|
|
|
19,717
|
|
|
115
|
|
|
9,120
|
|
|
547
|
|
|
28,837
|
|
||||||
Private label
|
|
380
|
|
|
9,843
|
|
|
367
|
|
|
9,411
|
|
|
747
|
|
|
19,254
|
|
||||||
Obligations of states and political subdivisions thereof
|
|
137
|
|
|
29,355
|
|
|
131
|
|
|
1,682
|
|
|
268
|
|
|
31,037
|
|
||||||
Corporate bonds
|
|
142
|
|
|
9,888
|
|
|
79
|
|
|
12,276
|
|
|
221
|
|
|
22,164
|
|
||||||
Total securities available for sale
|
|
$
|
2,165
|
|
|
$
|
112,232
|
|
|
$
|
1,698
|
|
|
$
|
82,201
|
|
|
$
|
3,863
|
|
|
$
|
194,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
US Government-sponsored enterprises
|
|
$
|
155
|
|
|
$
|
19,367
|
|
|
$
|
9,289
|
|
|
$
|
297,569
|
|
|
$
|
9,444
|
|
|
$
|
316,936
|
|
US Government agency
|
|
16
|
|
|
2,570
|
|
|
1,919
|
|
|
68,266
|
|
|
1,935
|
|
|
70,836
|
|
||||||
Private label
|
|
79
|
|
|
10,393
|
|
|
5
|
|
|
47
|
|
|
84
|
|
|
10,440
|
|
||||||
Obligations of states and political subdivisions thereof
|
|
43
|
|
|
6,784
|
|
|
2,033
|
|
|
47,930
|
|
|
2,076
|
|
|
54,714
|
|
||||||
Corporate bonds
|
|
224
|
|
|
11,759
|
|
|
412
|
|
|
14,460
|
|
|
636
|
|
|
26,219
|
|
||||||
Total securities available for sale
|
|
$
|
517
|
|
|
$
|
50,873
|
|
|
$
|
13,658
|
|
|
$
|
428,272
|
|
|
$
|
14,175
|
|
|
$
|
479,145
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
(in thousands)
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Carrying Value
|
|
Estimated Fair Value
|
||||||||
Securities pledged for deposits
|
|
$
|
217,009
|
|
|
$
|
220,054
|
|
|
$
|
128,949
|
|
|
$
|
126,649
|
|
Securities pledged for repurchase agreements
|
|
96,007
|
|
|
96,477
|
|
|
55,656
|
|
|
54,189
|
|
||||
Securities pledged for other borrowings (1)
|
|
157,172
|
|
|
157,458
|
|
|
270,252
|
|
|
265,334
|
|
||||
Total securities pledged
|
|
$
|
470,188
|
|
|
$
|
473,989
|
|
|
$
|
454,857
|
|
|
$
|
446,172
|
|
|
|
Twelve Months Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Estimated credit losses as of prior year-end,
|
|
$
|
1,697
|
|
|
$
|
1,697
|
|
|
$
|
1,697
|
|
Reductions for securities paid off during the period
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Estimated credit losses at end of the period
|
|
$
|
1,697
|
|
|
$
|
1,697
|
|
|
$
|
1,697
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
|
Business
Activities Loans
|
|
Acquired
Loans
|
|
Total
|
|
Business
Activities Loans
|
|
Acquired
Loans
|
|
Total
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
|
$
|
31,387
|
|
|
$
|
2,903
|
|
|
$
|
34,290
|
|
|
$
|
23,754
|
|
|
$
|
2,890
|
|
|
$
|
26,644
|
|
Other commercial real estate
|
|
666,051
|
|
|
230,320
|
|
|
896,371
|
|
|
555,980
|
|
|
244,075
|
|
|
800,055
|
|
||||||
Total commercial real estate
|
|
697,438
|
|
|
233,223
|
|
|
930,661
|
|
|
579,734
|
|
|
246,965
|
|
|
826,699
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
239,692
|
|
|
59,072
|
|
|
298,764
|
|
|
234,757
|
|
|
52,470
|
|
|
287,227
|
|
||||||
Agricultural
|
|
20,018
|
|
|
206
|
|
|
20,224
|
|
|
22,317
|
|
|
—
|
|
|
22,317
|
|
||||||
Tax exempt
|
|
66,860
|
|
|
37,443
|
|
|
104,303
|
|
|
56,588
|
|
|
38,738
|
|
|
95,326
|
|
||||||
Total commercial and industrial
|
|
326,570
|
|
|
96,721
|
|
|
423,291
|
|
|
313,662
|
|
|
91,208
|
|
|
404,870
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total commercial loans
|
|
1,024,008
|
|
|
329,944
|
|
|
1,353,952
|
|
|
893,396
|
|
|
338,173
|
|
|
1,231,569
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential mortgages
|
|
740,687
|
|
|
411,170
|
|
|
1,151,857
|
|
|
670,189
|
|
|
474,509
|
|
|
1,144,698
|
|
||||||
Total residential real estate
|
|
740,687
|
|
|
411,170
|
|
|
1,151,857
|
|
|
670,189
|
|
|
474,509
|
|
|
1,144,698
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Home equity
|
|
59,368
|
|
|
63,033
|
|
|
122,401
|
|
|
57,898
|
|
|
45,291
|
|
|
103,189
|
|
||||||
Other consumer
|
|
11,167
|
|
|
1,715
|
|
|
12,882
|
|
|
9,414
|
|
|
1,357
|
|
|
10,771
|
|
||||||
Total consumer
|
|
70,535
|
|
|
64,748
|
|
|
135,283
|
|
|
67,312
|
|
|
46,648
|
|
|
113,960
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
1,835,230
|
|
|
$
|
805,862
|
|
|
$
|
2,641,092
|
|
|
$
|
1,630,897
|
|
|
$
|
859,330
|
|
|
$
|
2,490,227
|
|
(in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Unamortized net loan origination costs
|
|
$
|
3,603
|
|
|
$
|
3,064
|
|
Unamortized net premium on purchased loans
|
|
(134
|
)
|
|
(127
|
)
|
||
Total unamortized net costs and premiums
|
|
$
|
3,469
|
|
|
$
|
2,937
|
|
|
|
Twelve Months Ended December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Balance at beginning of period
|
|
$
|
4,377
|
|
|
$
|
3,509
|
|
Acquisitions
|
|
4,391
|
|
|
—
|
|
||
Reclassification from nonaccretable difference for loans with improved cash flows
|
|
541
|
|
|
2,240
|
|
||
Changes in expected cash flows that do not affect the nonaccretable difference
|
|
—
|
|
|
—
|
|
||
Reclassification to TDR
|
|
—
|
|
|
(30
|
)
|
||
Accretion
|
|
(1,942
|
)
|
|
(1,342
|
)
|
||
Balance at end of period
|
|
$
|
7,367
|
|
|
$
|
4,377
|
|
(in thousands)
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
90 Days or Greater Past Due
|
|
Total Past Due
|
|
Current
|
|
Total Loans
|
|
Past Due > 90 days and Accruing
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and land development
|
|
$
|
205
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
258
|
|
|
$
|
31,129
|
|
|
$
|
31,387
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
40
|
|
|
1,534
|
|
|
1,810
|
|
|
3,384
|
|
|
662,667
|
|
|
666,051
|
|
|
—
|
|
|||||||
Total commercial real estate
|
|
245
|
|
|
1,587
|
|
|
1,810
|
|
|
3,642
|
|
|
693,796
|
|
|
697,438
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
452
|
|
|
50
|
|
|
894
|
|
|
1,396
|
|
|
238,296
|
|
|
239,692
|
|
|
—
|
|
|||||||
Agricultural
|
|
62
|
|
|
34
|
|
|
96
|
|
|
192
|
|
|
19,826
|
|
|
20,018
|
|
|
—
|
|
|||||||
Tax exempt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,860
|
|
|
66,860
|
|
|
—
|
|
|||||||
Total commercial and industrial
|
|
514
|
|
|
84
|
|
|
990
|
|
|
1,588
|
|
|
324,982
|
|
|
326,570
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total commercial loans
|
|
759
|
|
|
1,671
|
|
|
2,800
|
|
|
5,230
|
|
|
1,018,778
|
|
|
1,024,008
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgages
|
|
7,293
|
|
|
1,243
|
|
|
668
|
|
|
9,204
|
|
|
731,483
|
|
|
740,687
|
|
|
—
|
|
|||||||
Total residential real estate
|
|
7,293
|
|
|
1,243
|
|
|
668
|
|
|
9,204
|
|
|
731,483
|
|
|
740,687
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
|
597
|
|
|
43
|
|
|
429
|
|
|
1,069
|
|
|
58,299
|
|
|
59,368
|
|
|
50
|
|
|||||||
Other consumer
|
|
36
|
|
|
12
|
|
|
—
|
|
|
48
|
|
|
11,119
|
|
|
11,167
|
|
|
—
|
|
|||||||
Total consumer
|
|
633
|
|
|
55
|
|
|
429
|
|
|
1,117
|
|
|
69,418
|
|
|
70,535
|
|
|
50
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total loans
|
|
$
|
8,685
|
|
|
$
|
2,969
|
|
|
$
|
3,897
|
|
|
$
|
15,551
|
|
|
$
|
1,819,679
|
|
|
$
|
1,835,230
|
|
|
$
|
50
|
|
(in thousands)
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
90 Days or Greater Past Due
|
|
Total Past Due
|
|
Acquired Credit Impaired
|
|
Total Loans
|
|
Past Due > 90 days and Accruing
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
384
|
|
|
$
|
2,903
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
2,029
|
|
|
245
|
|
|
231
|
|
|
2,505
|
|
|
8,289
|
|
|
230,320
|
|
|
—
|
|
|||||||
Total commercial real estate
|
|
2,029
|
|
|
257
|
|
|
231
|
|
|
2,517
|
|
|
8,673
|
|
|
233,223
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
440
|
|
|
335
|
|
|
140
|
|
|
915
|
|
|
2,723
|
|
|
59,072
|
|
|
—
|
|
|||||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
173
|
|
|
206
|
|
|
—
|
|
|||||||
Tax exempt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
37,443
|
|
|
—
|
|
|||||||
Total commercial and industrial
|
|
440
|
|
|
335
|
|
|
140
|
|
|
915
|
|
|
2,932
|
|
|
96,721
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total commercial loans
|
|
2,469
|
|
|
592
|
|
|
371
|
|
|
3,432
|
|
|
11,605
|
|
|
329,944
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgages
|
|
3,185
|
|
|
864
|
|
|
1,015
|
|
|
5,064
|
|
|
5,591
|
|
|
411,170
|
|
|
—
|
|
|||||||
Total residential real estate
|
|
3,185
|
|
|
864
|
|
|
1,015
|
|
|
5,064
|
|
|
5,591
|
|
|
411,170
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
|
208
|
|
|
548
|
|
|
217
|
|
|
973
|
|
|
1,291
|
|
|
63,033
|
|
|
217
|
|
|||||||
Other consumer
|
|
2
|
|
|
9
|
|
|
—
|
|
|
11
|
|
|
66
|
|
|
1,715
|
|
|
—
|
|
|||||||
Total consumer
|
|
210
|
|
|
557
|
|
|
217
|
|
|
984
|
|
|
1,357
|
|
|
64,748
|
|
|
217
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total loans
|
|
$
|
5,864
|
|
|
$
|
2,013
|
|
|
$
|
1,603
|
|
|
$
|
9,480
|
|
|
$
|
18,553
|
|
|
$
|
805,862
|
|
|
$
|
217
|
|
(in thousands)
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
90 Days or Greater Past Due
|
|
Total Past Due
|
|
Current
|
|
Total Loans
|
|
Past Due > 90 days and Accruing
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,754
|
|
|
$
|
23,754
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
1,146
|
|
|
—
|
|
|
6,725
|
|
|
7,871
|
|
|
548,109
|
|
|
555,980
|
|
|
—
|
|
|||||||
Total commercial real estate
|
|
1,146
|
|
|
—
|
|
|
6,725
|
|
|
7,871
|
|
|
571,863
|
|
|
579,734
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
395
|
|
|
60
|
|
|
402
|
|
|
857
|
|
|
233,900
|
|
|
234,757
|
|
|
50
|
|
|||||||
Agricultural
|
|
65
|
|
|
6
|
|
|
25
|
|
|
96
|
|
|
22,221
|
|
|
22,317
|
|
|
—
|
|
|||||||
Tax exempt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,588
|
|
|
56,588
|
|
|
—
|
|
|||||||
Total commercial and industrial
|
|
460
|
|
|
66
|
|
|
427
|
|
|
953
|
|
|
312,709
|
|
|
313,662
|
|
|
50
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total commercial loans
|
|
1,606
|
|
|
66
|
|
|
7,152
|
|
|
8,824
|
|
|
884,572
|
|
|
893,396
|
|
|
50
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgages
|
|
3,565
|
|
|
641
|
|
|
1,309
|
|
|
5,515
|
|
|
664,674
|
|
|
670,189
|
|
|
—
|
|
|||||||
Total residential real estate
|
|
3,565
|
|
|
641
|
|
|
1,309
|
|
|
5,515
|
|
|
664,674
|
|
|
670,189
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
|
72
|
|
|
—
|
|
|
—
|
|
|
72
|
|
|
57,826
|
|
|
57,898
|
|
|
—
|
|
|||||||
Other consumer
|
|
17
|
|
|
—
|
|
|
11
|
|
|
28
|
|
|
9,386
|
|
|
9,414
|
|
|
—
|
|
|||||||
Total consumer
|
|
89
|
|
|
—
|
|
|
11
|
|
|
100
|
|
|
67,212
|
|
|
67,312
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total loans
|
|
$
|
5,260
|
|
|
$
|
707
|
|
|
$
|
8,472
|
|
|
$
|
14,439
|
|
|
$
|
1,616,458
|
|
|
$
|
1,630,897
|
|
|
$
|
50
|
|
(in thousands)
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
90 Days or Greater Past Due
|
|
Total Past Due
|
|
Acquired Credit Impaired
|
|
Total Loans
|
|
Past Due > 90 days and Accruing
|
||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
2,890
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
631
|
|
|
99
|
|
|
211
|
|
|
941
|
|
|
6,143
|
|
|
244,075
|
|
|
—
|
|
|||||||
Total commercial real estate
|
|
631
|
|
|
99
|
|
|
211
|
|
|
941
|
|
|
6,307
|
|
|
246,965
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial
|
|
149
|
|
|
26
|
|
|
494
|
|
|
669
|
|
|
679
|
|
|
52,470
|
|
|
—
|
|
|||||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Tax exempt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,738
|
|
|
—
|
|
|||||||
Total commercial and industrial
|
|
149
|
|
|
26
|
|
|
494
|
|
|
669
|
|
|
679
|
|
|
91,208
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total commercial loans
|
|
780
|
|
|
125
|
|
|
705
|
|
|
1,610
|
|
|
6,986
|
|
|
338,173
|
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgages
|
|
3,419
|
|
|
254
|
|
|
1,792
|
|
|
5,465
|
|
|
3,095
|
|
|
474,509
|
|
|
189
|
|
|||||||
Total residential real estate
|
|
3,419
|
|
|
254
|
|
|
1,792
|
|
|
5,465
|
|
|
3,095
|
|
|
474,509
|
|
|
189
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Home equity
|
|
198
|
|
|
—
|
|
|
66
|
|
|
264
|
|
|
22
|
|
|
45,291
|
|
|
7
|
|
|||||||
Other consumer
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
3
|
|
|
1,357
|
|
|
—
|
|
|||||||
Total consumer
|
|
215
|
|
|
—
|
|
|
66
|
|
|
281
|
|
|
25
|
|
|
46,648
|
|
|
7
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total loans
|
|
$
|
4,414
|
|
|
$
|
379
|
|
|
$
|
2,563
|
|
|
$
|
7,356
|
|
|
$
|
10,106
|
|
|
$
|
859,330
|
|
|
$
|
196
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
|
Business
Activities Loans
|
|
Acquired
Loans
|
|
Total
|
|
Business
Activities Loans
|
|
Acquired
Loans
|
|
Total
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
|
$
|
258
|
|
|
$
|
—
|
|
|
$
|
258
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Other commercial real estate
|
|
2,888
|
|
|
343
|
|
|
3,231
|
|
|
7,873
|
|
|
282
|
|
|
8,155
|
|
||||||
Total commercial real estate
|
|
3,146
|
|
|
343
|
|
|
3,489
|
|
|
7,874
|
|
|
282
|
|
|
8,156
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
932
|
|
|
626
|
|
|
1,558
|
|
|
1,423
|
|
|
643
|
|
|
2,066
|
|
||||||
Agricultural
|
|
278
|
|
|
—
|
|
|
278
|
|
|
265
|
|
|
—
|
|
|
265
|
|
||||||
Tax exempt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial and industrial
|
|
1,210
|
|
|
626
|
|
|
1,836
|
|
|
1,688
|
|
|
643
|
|
|
2,331
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total commercial loans
|
|
4,356
|
|
|
969
|
|
|
5,325
|
|
|
9,562
|
|
|
925
|
|
|
10,487
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages
|
|
3,362
|
|
|
1,973
|
|
|
5,335
|
|
|
4,213
|
|
|
2,997
|
|
|
7,210
|
|
||||||
Total residential real estate
|
|
3,362
|
|
|
1,973
|
|
|
5,335
|
|
|
4,213
|
|
|
2,997
|
|
|
7,210
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Home equity
|
|
615
|
|
|
254
|
|
|
869
|
|
|
246
|
|
|
201
|
|
|
447
|
|
||||||
Other consumer
|
|
21
|
|
|
—
|
|
|
21
|
|
|
90
|
|
|
1
|
|
|
91
|
|
||||||
Total consumer
|
|
636
|
|
|
254
|
|
|
890
|
|
|
336
|
|
|
202
|
|
|
538
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
8,354
|
|
|
$
|
3,196
|
|
|
$
|
11,550
|
|
|
$
|
14,111
|
|
|
$
|
4,124
|
|
|
$
|
18,235
|
|
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and
industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
3,964
|
|
|
$
|
1,353
|
|
|
$
|
2,620
|
|
|
$
|
13
|
|
|
$
|
7,950
|
|
Collectively evaluated
|
|
693,474
|
|
|
325,217
|
|
|
738,067
|
|
|
70,522
|
|
|
1,827,280
|
|
|||||
Total
|
|
$
|
697,438
|
|
|
$
|
326,570
|
|
|
$
|
740,687
|
|
|
$
|
70,535
|
|
|
$
|
1,835,230
|
|
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and
industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
258
|
|
|
$
|
385
|
|
|
$
|
1,032
|
|
|
$
|
—
|
|
|
$
|
1,675
|
|
Purchased credit impaired
|
|
8,673
|
|
|
2,932
|
|
|
5,591
|
|
|
1,357
|
|
|
18,553
|
|
|||||
Collectively evaluated
|
|
224,292
|
|
|
93,404
|
|
|
404,547
|
|
|
63,391
|
|
|
785,634
|
|
|||||
Total
|
|
$
|
233,223
|
|
|
$
|
96,721
|
|
|
$
|
411,170
|
|
|
$
|
64,748
|
|
|
$
|
805,862
|
|
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and
industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
9,835
|
|
|
$
|
1,445
|
|
|
$
|
2,562
|
|
|
$
|
13
|
|
|
$
|
13,855
|
|
Collectively evaluated
|
|
569,899
|
|
|
312,217
|
|
|
667,627
|
|
|
67,299
|
|
|
1,617,042
|
|
|||||
Total
|
|
$
|
579,734
|
|
|
$
|
313,662
|
|
|
$
|
670,189
|
|
|
$
|
67,312
|
|
|
$
|
1,630,897
|
|
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and
industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
188
|
|
|
$
|
426
|
|
|
$
|
744
|
|
|
$
|
—
|
|
|
$
|
1,358
|
|
Purchased credit impaired
|
|
6,307
|
|
|
679
|
|
|
3,095
|
|
|
25
|
|
|
10,106
|
|
|||||
Collectively evaluated
|
|
240,470
|
|
|
90,103
|
|
|
470,670
|
|
|
46,623
|
|
|
847,866
|
|
|||||
Total
|
|
$
|
246,965
|
|
|
$
|
91,208
|
|
|
$
|
474,509
|
|
|
$
|
46,648
|
|
|
$
|
859,330
|
|
|
|
December 31, 2019
|
||||||||||
(in thousands)
|
|
Recorded Investment
|
|
Unpaid Principal
Balance
|
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
1,911
|
|
|
1,957
|
|
|
—
|
|
|||
Commercial
|
|
710
|
|
|
773
|
|
|
—
|
|
|||
Agricultural
|
|
361
|
|
|
361
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
2,067
|
|
|
2,227
|
|
|
—
|
|
|||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
||||||
Construction and land development
|
|
$
|
258
|
|
|
$
|
258
|
|
|
$
|
205
|
|
Other commercial real estate
|
|
1,795
|
|
|
1,940
|
|
|
1,026
|
|
|||
Commercial
|
|
282
|
|
|
289
|
|
|
164
|
|
|||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
553
|
|
|
590
|
|
|
57
|
|
|||
Home equity
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
$
|
3,964
|
|
|
$
|
4,155
|
|
|
$
|
1,231
|
|
Commercial and industrial
|
|
1,353
|
|
|
1,423
|
|
|
164
|
|
|||
Residential real estate
|
|
2,620
|
|
|
2,817
|
|
|
57
|
|
|||
Consumer
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Total impaired loans
|
|
$
|
7,950
|
|
|
$
|
8,408
|
|
|
$
|
1,452
|
|
|
|
December 31, 2019
|
||||||||||
(in thousands)
|
|
Recorded Investment
|
|
Unpaid Principal
Balance
|
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
90
|
|
|
90
|
|
|
—
|
|
|||
Commercial
|
|
385
|
|
|
481
|
|
|
—
|
|
|||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
678
|
|
|
938
|
|
|
—
|
|
|||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
||||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
168
|
|
|
168
|
|
|
12
|
|
|||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
354
|
|
|
376
|
|
|
49
|
|
|||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
$
|
258
|
|
|
$
|
258
|
|
|
$
|
12
|
|
Commercial and industrial
|
|
385
|
|
|
481
|
|
|
—
|
|
|||
Residential real estate
|
|
1,032
|
|
|
1,314
|
|
|
49
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total impaired loans
|
|
$
|
1,675
|
|
|
$
|
2,053
|
|
|
$
|
61
|
|
|
|
December 31, 2018
|
||||||||||
(in thousands)
|
|
Recorded Investment
|
|
Unpaid Principal
Balance |
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
8,209
|
|
|
8,301
|
|
|
—
|
|
|||
Commercial
|
|
649
|
|
|
669
|
|
|
—
|
|
|||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
1,671
|
|
|
1,709
|
|
|
—
|
|
|||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
||||||
Construction and land development
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Other commercial real estate
|
|
1,625
|
|
|
1,660
|
|
|
421
|
|
|||
Commercial
|
|
796
|
|
|
855
|
|
|
78
|
|
|||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
891
|
|
|
916
|
|
|
111
|
|
|||
Home equity
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
$
|
9,835
|
|
|
$
|
9,962
|
|
|
$
|
422
|
|
Commercial and industrial
|
|
1,445
|
|
|
1,524
|
|
|
78
|
|
|||
Residential real estate
|
|
2,562
|
|
|
2,625
|
|
|
111
|
|
|||
Consumer
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Total impaired loans
|
|
$
|
13,855
|
|
|
$
|
14,124
|
|
|
$
|
611
|
|
|
|
December 31, 2018
|
||||||||||
(in thousands)
|
|
Recorded Investment
|
|
Unpaid Principal
Balance
|
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
188
|
|
|
187
|
|
|
—
|
|
|||
Commercial
|
|
426
|
|
|
510
|
|
|
—
|
|
|||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
375
|
|
|
524
|
|
|
—
|
|
|||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
||||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial
|
|
|
|
|
—
|
|
|
—
|
|
|||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate
|
|
369
|
|
|
379
|
|
|
41
|
|
|||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
$
|
188
|
|
|
$
|
187
|
|
|
$
|
—
|
|
Commercial and industrial
|
|
426
|
|
|
510
|
|
|
—
|
|
|||
Residential real estate
|
|
744
|
|
|
903
|
|
|
41
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total impaired loans
|
|
$
|
1,358
|
|
|
$
|
1,600
|
|
|
$
|
41
|
|
|
|
Twelve Months Ended December 31, 2019
|
|
Twelve Months Ended December 31, 2018
|
||||||||||||
(in thousands)
|
|
Average Recorded
Investment
|
|
Interest Income Recognized
|
|
Average Recorded
Investment
|
|
Interest
Income Recognized |
||||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
5,434
|
|
|
55
|
|
|
6,878
|
|
|
77
|
|
||||
Commercial
|
|
871
|
|
|
5
|
|
|
634
|
|
|
9
|
|
||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
|
2,089
|
|
|
47
|
|
|
1,693
|
|
|
39
|
|
||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
|
$
|
56
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
1,737
|
|
|
—
|
|
|
1,140
|
|
|
—
|
|
||||
Commercial
|
|
153
|
|
|
—
|
|
|
735
|
|
|
—
|
|
||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
|
540
|
|
|
7
|
|
|
826
|
|
|
9
|
|
||||
Home equity
|
|
13
|
|
|
—
|
|
|
13
|
|
|
1
|
|
||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
$
|
7,227
|
|
|
$
|
56
|
|
|
$
|
8,019
|
|
|
$
|
77
|
|
Commercial and industrial
|
|
1,024
|
|
|
5
|
|
|
1,369
|
|
|
9
|
|
||||
Residential real estate
|
|
2,629
|
|
|
54
|
|
|
2,519
|
|
|
48
|
|
||||
Consumer
|
|
13
|
|
|
—
|
|
|
13
|
|
|
1
|
|
||||
Total impaired loans
|
|
$
|
10,893
|
|
|
$
|
115
|
|
|
$
|
11,920
|
|
|
$
|
135
|
|
|
|
Twelve Months Ended December 31, 2019
|
|
Twelve Months Ended December 31, 2018
|
||||||||||||
(in thousands)
|
|
Average Recorded
Investment
|
|
Interest Income Recognized
|
|
Average Recorded
Investment
|
|
Interest
Income Recognized |
||||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
89
|
|
|
—
|
|
|
112
|
|
|
1
|
|
||||
Commercial
|
|
429
|
|
|
—
|
|
|
441
|
|
|
1
|
|
||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
|
652
|
|
|
—
|
|
|
442
|
|
|
—
|
|
||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
||||||||
Construction and land development
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Tax exempt loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential real estate
|
|
361
|
|
|
—
|
|
|
218
|
|
|
3
|
|
||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
$
|
212
|
|
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
1
|
|
Commercial and industrial
|
|
429
|
|
|
—
|
|
|
441
|
|
|
1
|
|
||||
Residential real estate
|
|
1,013
|
|
|
—
|
|
|
660
|
|
|
3
|
|
||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total impaired loans
|
|
$
|
1,654
|
|
|
$
|
—
|
|
|
$
|
1,213
|
|
|
$
|
5
|
|
|
|
Twelve Months Ended December 31, 2019
|
|||||||||||||
(in thousands, except modifications)
|
|
Number of
Modifications
|
|
Pre-Modification
Outstanding Recorded Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|
Specific Reserve
|
|||||||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
|
|
||||
Construction and land development
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other commercial real estate
|
|
10
|
|
|
630
|
|
|
529
|
|
|
69
|
|
|||
Other commercial
|
|
7
|
|
|
366
|
|
|
271
|
|
|
—
|
|
|||
Agricultural
|
|
2
|
|
|
500
|
|
|
503
|
|
|
—
|
|
|||
Tax exempt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential mortgages
|
|
12
|
|
|
1,427
|
|
|
1,327
|
|
|
—
|
|
|||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
31
|
|
|
$
|
2,923
|
|
|
$
|
2,630
|
|
|
$
|
69
|
|
|
|
Twelve Months Ended December 31, 2018
|
|||||||||||||
(in thousands, except modifications)
|
|
Number of
Modifications
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|
Specific Reserve
|
|||||||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
||||||
Construction and land development
|
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Other commercial real estate
|
|
9
|
|
|
1,896
|
|
|
1,564
|
|
|
153
|
|
|||
Other commercial
|
|
7
|
|
|
556
|
|
|
486
|
|
|
55
|
|
|||
Agricultural
|
|
1
|
|
|
167
|
|
|
—
|
|
|
—
|
|
|||
Residential mortgages
|
|
19
|
|
|
3,348
|
|
|
2,752
|
|
|
145
|
|
|||
Home equity
|
|
1
|
|
|
100
|
|
|
100
|
|
|
—
|
|
|||
Other consumer
|
|
3
|
|
|
13
|
|
|
11
|
|
|
—
|
|
|||
Total
|
|
41
|
|
|
$
|
6,081
|
|
|
$
|
4,914
|
|
|
$
|
354
|
|
|
|
Twelve Months Ended December 31, 2017
|
|||||||||||||
(in thousands, except modifications)
|
|
Number of
Modifications
|
|
Pre-Modification
Outstanding Recorded
Investment
|
|
Post-Modification
Outstanding Recorded
Investment
|
|
Specific Reserve
|
|||||||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
||||||
Other commercial real estate
|
|
6
|
|
|
$
|
388
|
|
|
$
|
222
|
|
|
$
|
—
|
|
Other commercial
|
|
6
|
|
|
563
|
|
|
545
|
|
|
—
|
|
|||
Agricultural
|
|
1
|
|
|
19
|
|
|
18
|
|
|
—
|
|
|||
Residential mortgages
|
|
3
|
|
|
692
|
|
|
670
|
|
|
—
|
|
|||
Home equity
|
|
1
|
|
|
13
|
|
|
13
|
|
|
—
|
|
|||
Other consumer
|
|
1
|
|
|
38
|
|
|
36
|
|
|
—
|
|
|||
Total
|
|
18
|
|
|
$
|
1,713
|
|
|
$
|
1,504
|
|
|
$
|
—
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(in thousands, except modifications)
|
|
Number of
Modifications
|
|
Post-Modification
Outstanding Recorded
Investment
|
|
Number of
Modifications
|
|
Post-Modification
Outstanding Recorded
Investment
|
|
Number of
Modifications
|
|
Post-Modification
Outstanding Recorded
Investment
|
|||||||||
Interest rate and maturity concession
|
|
2
|
|
|
$
|
73
|
|
|
1
|
|
|
$
|
16
|
|
|
6
|
|
|
$
|
725
|
|
Amortization and maturity concession
|
|
4
|
|
|
273
|
|
|
1
|
|
|
286
|
|
|
6
|
|
|
490
|
|
|||
Amortization concession
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
94
|
|
|||
Amortization, interest rate and maturity concession
|
|
5
|
|
|
539
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
36
|
|
|||
Amortization and interest rate concession
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Forbearance
|
|
5
|
|
|
346
|
|
|
3
|
|
|
271
|
|
|
—
|
|
|
—
|
|
|||
Forbearance and interest only payments
|
|
7
|
|
|
692
|
|
|
6
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|||
Forbearance and interest rate concession
|
|
—
|
|
|
—
|
|
|
1
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|||
Forbearance and maturity concession
|
|
4
|
|
|
472
|
|
|
20
|
|
|
2,030
|
|
|
—
|
|
|
—
|
|
|||
Maturity concession
|
|
—
|
|
|
—
|
|
|
2
|
|
|
440
|
|
|
—
|
|
|
—
|
|
|||
Restructure without concession
|
|
—
|
|
|
—
|
|
|
5
|
|
|
1,419
|
|
|
—
|
|
|
—
|
|
|||
Court ordered
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
4
|
|
|
235
|
|
|
2
|
|
|
282
|
|
|
4
|
|
|
159
|
|
|||
Total
|
|
31
|
|
|
$
|
2,630
|
|
|
41
|
|
|
$
|
4,914
|
|
|
18
|
|
|
$
|
1,504
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Beginning balance
|
|
$
|
8,395
|
|
|
$
|
10,487
|
|
Changes in composition(1)
|
|
(302
|
)
|
|
—
|
|
||
New Loans
|
|
242
|
|
|
—
|
|
||
Less: repayments
|
|
(126
|
)
|
|
(2,092
|
)
|
||
Ending balance
|
|
$
|
8,209
|
|
|
$
|
8,395
|
|
|
|
At or for the Twelve Months Ended December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Balance at beginning of year
|
|
$
|
3,086
|
|
|
$
|
3,232
|
|
Acquired
|
|
—
|
|
|
—
|
|
||
Additions
|
|
160
|
|
|
99
|
|
||
Amortization
|
|
(245
|
)
|
|
(245
|
)
|
||
Balance at end of year
|
|
$
|
3,001
|
|
|
$
|
3,086
|
|
Business Activities Loans
|
|
At or for the Twelve Months Ended December 31, 2019
|
||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of period
|
|
$
|
6,811
|
|
|
$
|
2,380
|
|
|
$
|
3,982
|
|
|
$
|
408
|
|
|
$
|
13,581
|
|
Charged-off loans
|
|
(212
|
)
|
|
(336
|
)
|
|
(109
|
)
|
|
(228
|
)
|
|
(885
|
)
|
|||||
Recoveries on charged-off loans
|
|
194
|
|
|
65
|
|
|
55
|
|
|
6
|
|
|
320
|
|
|||||
Provision/(releases) for loan losses
|
|
875
|
|
|
1,499
|
|
|
(526
|
)
|
|
193
|
|
|
2,041
|
|
|||||
Balance at end of period
|
|
$
|
7,668
|
|
|
$
|
3,608
|
|
|
$
|
3,402
|
|
|
$
|
379
|
|
|
$
|
15,057
|
|
Individually evaluated for impairment
|
|
1,231
|
|
|
164
|
|
|
57
|
|
|
—
|
|
|
1,452
|
|
|||||
Collectively evaluated
|
|
6,437
|
|
|
3,444
|
|
|
3,345
|
|
|
379
|
|
|
13,605
|
|
|||||
Total
|
|
$
|
7,668
|
|
|
$
|
3,608
|
|
|
$
|
3,402
|
|
|
$
|
379
|
|
|
$
|
15,057
|
|
Acquired Loans
|
|
At or for the Twelve Months Ended December 31, 2019
|
||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of period
|
|
$
|
173
|
|
|
$
|
35
|
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
285
|
|
Charged-off loans
|
|
—
|
|
|
(23
|
)
|
|
(240
|
)
|
|
(5
|
)
|
|
(268
|
)
|
|||||
Recoveries on charged-off loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||
Provision/(releases) for loan losses
|
|
(26
|
)
|
|
(6
|
)
|
|
306
|
|
|
2
|
|
|
276
|
|
|||||
Balance at end of period
|
|
$
|
147
|
|
|
$
|
6
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
296
|
|
Individually evaluated for impairment
|
|
12
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
61
|
|
|||||
Collectively evaluated
|
|
135
|
|
|
6
|
|
|
94
|
|
|
—
|
|
|
235
|
|
|||||
Total
|
|
$
|
147
|
|
|
$
|
6
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
296
|
|
Business Activities Loans
|
|
At or for the Twelve Months Ended December 31, 2018
|
||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of period
|
|
$
|
6,037
|
|
|
$
|
2,373
|
|
|
$
|
3,357
|
|
|
$
|
386
|
|
|
$
|
12,153
|
|
Charged-off loans
|
|
(417
|
)
|
|
(111
|
)
|
|
(225
|
)
|
|
(629
|
)
|
|
(1,382
|
)
|
|||||
Recoveries on charged-off loans
|
|
275
|
|
|
76
|
|
|
166
|
|
|
18
|
|
|
535
|
|
|||||
Provision/(releases) for loan losses
|
|
916
|
|
|
42
|
|
|
684
|
|
|
633
|
|
|
2,275
|
|
|||||
Balance at end of period
|
|
$
|
6,811
|
|
|
$
|
2,380
|
|
|
$
|
3,982
|
|
|
$
|
408
|
|
|
$
|
13,581
|
|
Individually evaluated for impairment
|
|
422
|
|
|
78
|
|
|
111
|
|
|
—
|
|
|
611
|
|
|||||
Collectively evaluated
|
|
6,389
|
|
|
2,302
|
|
|
3,871
|
|
|
408
|
|
|
12,970
|
|
|||||
Total
|
|
$
|
6,811
|
|
|
$
|
2,380
|
|
|
$
|
3,982
|
|
|
$
|
408
|
|
|
$
|
13,581
|
|
Acquired Loans
|
|
At or for the Twelve Months Ended December 31, 2018
|
||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of period
|
|
$
|
97
|
|
|
$
|
16
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
172
|
|
Charged-off loans
|
|
(136
|
)
|
|
(166
|
)
|
|
(158
|
)
|
|
(65
|
)
|
|
(525
|
)
|
|||||
Recoveries on charged-off loans
|
|
43
|
|
|
7
|
|
|
—
|
|
|
83
|
|
|
133
|
|
|||||
Provision/(releases) for loan losses
|
|
169
|
|
|
178
|
|
|
176
|
|
|
(18
|
)
|
|
505
|
|
|||||
Balance at end of period
|
|
$
|
173
|
|
|
$
|
35
|
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
285
|
|
Individually evaluated for impairment
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|||||
Collectively evaluated
|
|
173
|
|
|
35
|
|
|
36
|
|
|
—
|
|
|
244
|
|
|||||
Total
|
|
$
|
173
|
|
|
$
|
35
|
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
285
|
|
Business Activities Loans
|
|
At or for the Twelve Months Ended December 31, 2017
|
||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of period
|
|
$
|
5,145
|
|
|
$
|
1,952
|
|
|
$
|
2,721
|
|
|
$
|
601
|
|
|
$
|
10,419
|
|
Charged-off loans
|
|
(124
|
)
|
|
(189
|
)
|
|
(226
|
)
|
|
(162
|
)
|
|
(701
|
)
|
|||||
Recoveries on charged-off loans
|
|
49
|
|
|
11
|
|
|
65
|
|
|
18
|
|
|
143
|
|
|||||
Provision/(releases) for loan losses
|
|
967
|
|
|
599
|
|
|
797
|
|
|
(71
|
)
|
|
2,292
|
|
|||||
Balance at end of period
|
|
$
|
6,037
|
|
|
$
|
2,373
|
|
|
$
|
3,357
|
|
|
$
|
386
|
|
|
$
|
12,153
|
|
Individually evaluated for impairment
|
|
447
|
|
|
3
|
|
|
9
|
|
|
—
|
|
|
459
|
|
|||||
Collectively evaluated
|
|
5,590
|
|
|
2,370
|
|
|
3,348
|
|
|
386
|
|
|
11,694
|
|
|||||
Total
|
|
$
|
6,037
|
|
|
$
|
2,373
|
|
|
$
|
3,357
|
|
|
$
|
386
|
|
|
$
|
12,153
|
|
Acquired Loans
|
|
At or for the Twelve Months Ended December 31, 2017
|
||||||||||||||||||
(in thousands)
|
|
Commercial
real estate
|
|
Commercial and industrial
|
|
Residential
real estate
|
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charged-off loans
|
|
(151
|
)
|
|
(18
|
)
|
|
(29
|
)
|
|
(127
|
)
|
|
(325
|
)
|
|||||
Recoveries on charged-off loans
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Provision/(releases) for loan losses
|
|
247
|
|
|
34
|
|
|
88
|
|
|
127
|
|
|
496
|
|
|||||
Balance at end of period
|
|
$
|
97
|
|
|
$
|
16
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
172
|
|
Individually evaluated for impairment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Collectively evaluated
|
|
97
|
|
|
16
|
|
|
59
|
|
|
—
|
|
|
172
|
|
|||||
Total
|
|
$
|
97
|
|
|
$
|
16
|
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
172
|
|
|
|
Commercial construction and land development
|
|
Commercial real estate other
|
|
Total commercial real estate
|
||||||||||||||||||
(in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
31,057
|
|
|
$
|
23,680
|
|
|
$
|
646,886
|
|
|
$
|
532,386
|
|
|
$
|
677,943
|
|
|
$
|
556,066
|
|
Special mention
|
|
—
|
|
|
73
|
|
|
5,483
|
|
|
8,319
|
|
|
5,483
|
|
|
8,392
|
|
||||||
Substandard
|
|
330
|
|
|
—
|
|
|
11,974
|
|
|
13,914
|
|
|
12,304
|
|
|
13,914
|
|
||||||
Doubtful
|
|
—
|
|
|
1
|
|
|
1,708
|
|
|
1,361
|
|
|
1,708
|
|
|
1,362
|
|
||||||
Total
|
|
$
|
31,387
|
|
|
$
|
23,754
|
|
|
$
|
666,051
|
|
|
$
|
555,980
|
|
|
$
|
697,438
|
|
|
$
|
579,734
|
|
|
|
Commercial
|
|
Agricultural
|
|
Tax exempt loans
|
|
Total commercial and industrial
|
||||||||||||||||||||||||
(in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pass
|
|
$
|
221,329
|
|
|
$
|
226,353
|
|
|
$
|
18,940
|
|
|
$
|
21,680
|
|
|
$
|
66,860
|
|
|
$
|
56,588
|
|
|
$
|
307,129
|
|
|
$
|
304,621
|
|
Special mention
|
|
2,744
|
|
|
6,730
|
|
|
298
|
|
|
215
|
|
|
—
|
|
|
—
|
|
|
3,042
|
|
|
6,945
|
|
||||||||
Substandard
|
|
14,866
|
|
|
924
|
|
|
780
|
|
|
422
|
|
|
—
|
|
|
—
|
|
|
15,646
|
|
|
1,346
|
|
||||||||
Doubtful
|
|
753
|
|
|
750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
753
|
|
|
750
|
|
||||||||
Total
|
|
$
|
239,692
|
|
|
$
|
234,757
|
|
|
$
|
20,018
|
|
|
$
|
22,317
|
|
|
$
|
66,860
|
|
|
$
|
56,588
|
|
|
$
|
326,570
|
|
|
$
|
313,662
|
|
|
|
Residential real estate
|
|
Home equity
|
|
Other consumer
|
|
Total residential real estate and consumer
|
||||||||||||||||||||||||
(in thousands)
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
||||||||||||||||
Performing
|
|
$
|
737,325
|
|
|
$
|
665,976
|
|
|
$
|
58,753
|
|
|
$
|
57,652
|
|
|
$
|
11,146
|
|
|
$
|
9,324
|
|
|
$
|
807,224
|
|
|
$
|
732,952
|
|
Non-performing
|
|
3,362
|
|
|
4,213
|
|
|
615
|
|
|
246
|
|
|
21
|
|
|
90
|
|
|
3,998
|
|
|
4,549
|
|
||||||||
Total
|
|
$
|
740,687
|
|
|
$
|
670,189
|
|
|
$
|
59,368
|
|
|
$
|
57,898
|
|
|
$
|
11,167
|
|
|
$
|
9,414
|
|
|
$
|
811,222
|
|
|
$
|
737,501
|
|
|
|
Commercial construction and land development
|
|
Commercial real estate other
|
|
Total commercial real estate
|
||||||||||||||||||
(in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
2,412
|
|
|
$
|
2,626
|
|
|
$
|
218,491
|
|
|
$
|
236,393
|
|
|
$
|
220,903
|
|
|
$
|
239,019
|
|
Special mention
|
|
12
|
|
|
—
|
|
|
2,261
|
|
|
1,574
|
|
|
2,273
|
|
|
1,574
|
|
||||||
Substandard
|
|
479
|
|
|
264
|
|
|
9,400
|
|
|
6,009
|
|
|
9,879
|
|
|
6,273
|
|
||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
168
|
|
|
99
|
|
|
168
|
|
|
99
|
|
||||||
Total
|
|
$
|
2,903
|
|
|
$
|
2,890
|
|
|
$
|
230,320
|
|
|
$
|
244,075
|
|
|
$
|
233,223
|
|
|
$
|
246,965
|
|
|
|
Commercial
|
|
Agricultural
|
|
Tax exempt loans
|
|
Total commercial and industrial
|
||||||||||||||||||||||||
(in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Pass
|
|
$
|
51,184
|
|
|
$
|
46,120
|
|
|
$
|
58
|
|
|
$
|
—
|
|
|
$
|
37,407
|
|
|
$
|
38,738
|
|
|
$
|
88,649
|
|
|
$
|
84,858
|
|
Special mention
|
|
5,432
|
|
|
4,825
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,432
|
|
|
4,825
|
|
||||||||
Substandard
|
|
2,115
|
|
|
1,222
|
|
|
148
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
2,299
|
|
|
1,222
|
|
||||||||
Doubtful
|
|
341
|
|
|
303
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
341
|
|
|
303
|
|
||||||||
Total
|
|
$
|
59,072
|
|
|
$
|
52,470
|
|
|
$
|
206
|
|
|
$
|
—
|
|
|
$
|
37,443
|
|
|
$
|
38,738
|
|
|
$
|
96,721
|
|
|
$
|
91,208
|
|
|
|
Residential real estate
|
|
Home equity
|
|
Other consumer
|
|
Total residential real estate and consumer
|
||||||||||||||||||||||||
(in thousands)
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
|
Dec 31, 2019
|
|
Dec 31, 2018
|
||||||||||||||||
Performing
|
|
$
|
407,811
|
|
|
$
|
470,497
|
|
|
$
|
62,504
|
|
|
$
|
45,090
|
|
|
$
|
1,707
|
|
|
$
|
1,356
|
|
|
$
|
472,022
|
|
|
$
|
516,943
|
|
Non-performing
|
|
3,359
|
|
|
4,012
|
|
|
529
|
|
|
201
|
|
|
8
|
|
|
1
|
|
|
3,896
|
|
|
4,214
|
|
||||||||
Total
|
|
$
|
411,170
|
|
|
$
|
474,509
|
|
|
$
|
63,033
|
|
|
$
|
45,291
|
|
|
$
|
1,715
|
|
|
$
|
1,357
|
|
|
$
|
475,918
|
|
|
$
|
521,157
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
|
Business
Activities Loans
|
|
Acquired Loans
|
|
Total
|
|
Business
Activities Loans
|
|
Acquired Loans
|
|
Total
|
||||||||||||
Non-accrual
|
|
$
|
8,354
|
|
|
$
|
3,196
|
|
|
$
|
11,550
|
|
|
$
|
14,111
|
|
|
$
|
4,124
|
|
|
$
|
18,235
|
|
Substandard accruing
|
|
26,055
|
|
|
13,387
|
|
|
39,442
|
|
|
7,810
|
|
|
7,987
|
|
|
15,797
|
|
||||||
Doubtful accruing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total classified
|
|
34,409
|
|
|
16,583
|
|
|
50,992
|
|
|
21,921
|
|
|
12,111
|
|
|
34,032
|
|
||||||
Special mention
|
|
8,525
|
|
|
7,705
|
|
|
16,230
|
|
|
15,337
|
|
|
6,399
|
|
|
21,736
|
|
||||||
Total Criticized
|
|
$
|
42,934
|
|
|
$
|
24,288
|
|
|
$
|
67,222
|
|
|
$
|
37,258
|
|
|
$
|
18,510
|
|
|
$
|
55,768
|
|
(in thousands, except years)
|
|
2019
|
|
2018
|
|
Estimated Useful Life
|
||||
Land
|
|
$
|
5,028
|
|
|
$
|
4,837
|
|
|
N/A
|
Buildings and improvements
|
|
52,363
|
|
|
50,933
|
|
|
5 -39 years
|
||
Furniture and equipment
|
|
13,573
|
|
|
9,098
|
|
|
3 - 7 years
|
||
Premises and equipment, gross
|
|
70,964
|
|
|
64,868
|
|
|
|
||
Accumulated depreciation
|
|
(19,759
|
)
|
|
(16,064
|
)
|
|
|
||
Premises and equipment, net
|
|
$
|
51,205
|
|
|
$
|
48,804
|
|
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Balance at beginning of year
|
|
$
|
100,085
|
|
|
$
|
100,085
|
|
Acquisition
|
|
18,564
|
|
|
—
|
|
||
Balance at end of year
|
|
$
|
118,649
|
|
|
$
|
100,085
|
|
|
|
2019
|
||||||||||
(in thousands)
|
|
Gross Intangible Assets
|
|
Accumulated Amortization
|
|
Net Intangible Assets
|
||||||
Core deposit intangible (non-maturity deposits)
|
|
$
|
9,483
|
|
|
$
|
(2,635
|
)
|
|
$
|
6,848
|
|
Customer list and other intangibles
|
|
2,065
|
|
|
(272
|
)
|
|
1,793
|
|
|||
Total
|
|
$
|
11,548
|
|
|
$
|
(2,907
|
)
|
|
$
|
8,641
|
|
|
|
2018
|
||||||||||
(in thousands)
|
|
Gross Intangible Assets
|
|
Accumulated Amortization
|
|
Net Intangible Assets
|
||||||
Core deposit intangible (non-maturity deposits)
|
|
$
|
8,586
|
|
|
$
|
(1,878
|
)
|
|
$
|
6,708
|
|
Customer list and other intangibles
|
|
919
|
|
|
(168
|
)
|
|
751
|
|
|||
Total
|
|
$
|
9,505
|
|
|
$
|
(2,046
|
)
|
|
$
|
7,459
|
|
(in thousands)
|
|
Other Intangible Assets
|
||
2020
|
|
$
|
975
|
|
2021
|
|
932
|
|
|
2022
|
|
932
|
|
|
2023
|
|
932
|
|
|
2024
|
|
932
|
|
|
and thereafter
|
|
3,938
|
|
|
Total other intangible assets
|
|
$
|
8,641
|
|
(in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Time less than $100,000
|
|
$
|
600,747
|
|
|
$
|
622,478
|
|
Time $100,000 through $250,000
|
|
225,505
|
|
|
193,535
|
|
||
Time $250,000 or more
|
|
106,383
|
|
|
116,780
|
|
||
Total time deposits
|
|
$
|
932,635
|
|
|
$
|
932,793
|
|
(in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Within 1 year
|
|
$
|
555,074
|
|
|
$
|
505,313
|
|
Over 1 year to 2 years
|
|
287,934
|
|
|
258,176
|
|
||
Over 2 years to 3 years
|
|
51,444
|
|
|
123,337
|
|
||
Over 3 years to 4 years
|
|
31,262
|
|
|
14,494
|
|
||
Over 4 years to 5 years
|
|
6,883
|
|
|
31,353
|
|
||
Over 5 years
|
|
38
|
|
|
120
|
|
||
Total
|
|
$
|
932,635
|
|
|
$
|
932,793
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(in thousands, except ratios)
|
|
Amount
|
|
Weighted Average Rate
|
|
Amount
|
|
Weighted Average Rate
|
||||||
Short-term borrowings
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Advances from the FHLB
|
|
$
|
303,286
|
|
|
1.83
|
%
|
|
$
|
611,683
|
|
|
2.47
|
%
|
Other borrowings
|
|
44,832
|
|
|
0.99
|
|
|
36,211
|
|
|
1.09
|
|
||
Total short-term borrowings
|
|
348,118
|
|
|
1.73
|
|
|
647,894
|
|
|
2.39
|
|
||
Long-term borrowings
|
|
|
|
|
|
|
|
|
||||||
Advances from the FHLB
|
|
123,278
|
|
|
1.93
|
|
|
32,929
|
|
|
1.86
|
|
||
Subordinated borrowings
|
|
59,920
|
|
|
5.53
|
|
|
37,973
|
|
|
5.58
|
|
||
Junior subordinated borrowings
|
|
—
|
|
|
—
|
|
|
5,000
|
|
|
5.96
|
|
||
Total long-term borrowings
|
|
183,198
|
|
|
2.87
|
|
|
75,902
|
|
|
3.99
|
|
||
Total
|
|
$
|
531,316
|
|
|
2.11
|
%
|
|
$
|
723,796
|
|
|
2.56
|
%
|
|
|
December 31, 2019
|
|||||
(in thousands, except rates)
|
|
Amount
|
|
Weighted
Average Rate |
|||
Fixed rate advances maturing:
|
|
|
|
|
|
|
|
2020
|
|
$
|
303,286
|
|
|
1.83
|
%
|
2021
|
|
10,662
|
|
|
2.21
|
|
|
2022
|
|
104,000
|
|
|
1.97
|
|
|
2023
|
|
1,000
|
|
|
—
|
|
|
2024
|
|
7,300
|
|
|
1.16
|
|
|
2025 and thereafter
|
|
316
|
|
|
4.05
|
|
|
Total FHLB advances
|
|
$
|
426,564
|
|
|
1.85
|
%
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Change in projected benefit obligation:
|
|
|
|
|
||||
Projected benefit obligation at beginning of year
|
|
$
|
8,009
|
|
|
$
|
9,020
|
|
Service cost
|
|
—
|
|
|
—
|
|
||
Interest cost
|
|
331
|
|
|
315
|
|
||
Actuarial loss (gain)
|
|
1,068
|
|
|
(771
|
)
|
||
Benefits paid
|
|
(300
|
)
|
|
(291
|
)
|
||
Settlements
|
|
(182
|
)
|
|
(264
|
)
|
||
Projected benefit obligation at end of year
|
|
8,926
|
|
|
8,009
|
|
||
|
|
|
|
|
||||
Change in fair value of plan assets:
|
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
|
9,990
|
|
|
11,026
|
|
||
Expected return on plan assets
|
|
1,570
|
|
|
(481
|
)
|
||
Contributions by employer
|
|
—
|
|
|
—
|
|
||
Benefits paid
|
|
(300
|
)
|
|
(291
|
)
|
||
Settlements
|
|
(182
|
)
|
|
(264
|
)
|
||
Fair value of plan assets at end of year
|
|
11,078
|
|
|
9,990
|
|
||
|
|
|
|
|
||||
Overfunded status
|
|
$
|
(2,152
|
)
|
|
$
|
(1,981
|
)
|
|
|
|
|
|
||||
Amounts recognized in consolidated balance sheet:
|
|
|
|
|
||||
Other assets
|
|
$
|
2,152
|
|
|
$
|
1,981
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Interest cost
|
|
$
|
331
|
|
|
$
|
315
|
|
Expected return on plan assets
|
|
(638
|
)
|
|
(706
|
)
|
||
Settlement Charge
|
|
—
|
|
|
—
|
|
||
Net periodic pension benefit credit
|
|
$
|
(307
|
)
|
|
$
|
(391
|
)
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Net actuarial loss
|
|
$
|
145
|
|
|
$
|
415
|
|
Settlement charge
|
|
—
|
|
|
—
|
|
||
Net period pension benefit credit
|
|
(307
|
)
|
|
(391
|
)
|
||
Total recognized in net periodic benefit (credit) cost and other comprehensive (income) loss
|
|
$
|
(162
|
)
|
|
$
|
24
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Net actuarial loss
|
|
$
|
145
|
|
|
$
|
415
|
|
Settlement charge
|
|
—
|
|
|
—
|
|
||
Prior service cost
|
|
748
|
|
|
333
|
|
||
Total accumulated other comprehensive loss (pre-tax)
|
|
$
|
893
|
|
|
$
|
748
|
|
|
|
2019
|
|
2018
|
||
Projected benefit obligation
|
|
|
|
|
||
Discount rate
|
|
3.23
|
%
|
|
4.23
|
%
|
Net periodic pension cost
|
|
|
|
|
||
Discount rate
|
|
4.23
|
%
|
|
3.56
|
%
|
Long-term rate of return on plan assets
|
|
6.50
|
|
|
6.50
|
|
|
|
2019
|
||||||||||
(in thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
Asset Category
|
|
|
|
|
|
|
||||||
Equity mutual funds:
|
|
|
|
|
|
|
||||||
Large-cap
|
|
$
|
2,144
|
|
|
$
|
2,144
|
|
|
$
|
—
|
|
Mid-cap
|
|
590
|
|
|
590
|
|
|
—
|
|
|||
Small-cap
|
|
557
|
|
|
557
|
|
|
—
|
|
|||
International
|
|
1,009
|
|
|
1,009
|
|
|
|
||||
Fixed income funds:
|
|
|
|
|
|
|
||||||
Fixed-income - core plus
|
|
4,028
|
|
|
4,028
|
|
|
—
|
|
|||
Intermediate duration
|
|
1,371
|
|
|
1,371
|
|
|
—
|
|
|||
Common stock
|
|
574
|
|
|
574
|
|
|
—
|
|
|||
Common/collective trusts - large-cap
|
|
566
|
|
|
—
|
|
|
566
|
|
|||
Cash equivalents - money market
|
|
230
|
|
|
230
|
|
|
—
|
|
|||
Total
|
|
$
|
11,069
|
|
|
$
|
10,503
|
|
|
$
|
566
|
|
|
|
2018
|
||||||||||
(in thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
Asset Category
|
|
|
|
|
|
|
||||||
Equity mutual funds:
|
|
|
|
|
|
|
||||||
Large-cap
|
|
$
|
1,730
|
|
|
$
|
1,730
|
|
|
$
|
—
|
|
Mid-cap
|
|
477
|
|
|
477
|
|
|
—
|
|
|||
Small-cap
|
|
469
|
|
|
469
|
|
|
—
|
|
|||
International
|
|
845
|
|
|
845
|
|
|
|
||||
Fixed income funds:
|
|
|
|
|
|
|
||||||
Fixed-income - core plus
|
|
3,945
|
|
|
3,945
|
|
|
—
|
|
|||
Intermediate duration
|
|
1,321
|
|
|
1,321
|
|
|
—
|
|
|||
Common stock
|
|
506
|
|
|
506
|
|
|
—
|
|
|||
Common/collective trusts - large-cap
|
|
469
|
|
|
—
|
|
|
469
|
|
|||
Cash equivalents - money market
|
|
228
|
|
|
228
|
|
|
—
|
|
|||
Total
|
|
$
|
9,990
|
|
|
$
|
9,521
|
|
|
$
|
469
|
|
Year
|
|
Payments in Thousands
|
||
2020
|
|
$
|
365
|
|
2021
|
|
364
|
|
|
2022
|
|
383
|
|
|
2023
|
|
379
|
|
|
2024
|
|
394
|
|
|
2025-2029
|
|
2,262
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Change in benefit obligation:
|
|
|
|
|
||||
Projected benefit obligation at beginning of year
|
|
$
|
3,033
|
|
|
$
|
3,451
|
|
Service cost
|
|
—
|
|
|
—
|
|
||
Interest cost
|
|
103
|
|
|
102
|
|
||
Actuarial loss/(gain)
|
|
221
|
|
|
(142
|
)
|
||
Benefits paid
|
|
(378
|
)
|
|
(378
|
)
|
||
Projected benefit obligation at end of year
|
|
$
|
2,979
|
|
|
$
|
3,033
|
|
|
|
|
|
|
||||
Change in fair value of plan assets:
|
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
|
$
|
—
|
|
|
$
|
—
|
|
Expected return on plan assets
|
|
—
|
|
|
—
|
|
||
Contributions by employer
|
|
378
|
|
|
378
|
|
||
Benefits paid
|
|
(378
|
)
|
|
(378
|
)
|
||
Fair value of plan assets at end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
||||
Underfunded status
|
|
$
|
2,979
|
|
|
$
|
3,033
|
|
|
|
|
|
|
||||
Amounts recognized in consolidated balance sheet
|
|
|
|
|
||||
Other liabilities
|
|
$
|
2,979
|
|
|
$
|
3,033
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Interest cost
|
|
$
|
103
|
|
|
$
|
102
|
|
Expected return on plan assets
|
|
—
|
|
|
—
|
|
||
Amortization of unrecognized actuarial loss
|
|
15
|
|
|
29
|
|
||
Net periodic benefit cost
|
|
$
|
118
|
|
|
$
|
131
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Net actuarial loss (gain)
|
|
$
|
220
|
|
|
$
|
(142
|
)
|
Amortization of unrecognized actuarial loss
|
|
(15
|
)
|
|
(29
|
)
|
||
Total recognized in net periodic benefit cost and other comprehensive loss
|
|
$
|
205
|
|
|
$
|
(171
|
)
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Accumulated other comprehensive income at beginning of the year (pre-tax)
|
|
$
|
414
|
|
|
$
|
585
|
|
Actuarial loss (gain)
|
|
220
|
|
|
(142
|
)
|
||
Amortization of actuarial loss
|
|
(15
|
)
|
|
(29
|
)
|
||
Accumulated other comprehensive income at end of year (pre-tax)
|
|
$
|
619
|
|
|
$
|
414
|
|
|
|
2019
|
|
2018
|
||
Discount rate beginning of year
|
|
3.83
|
%
|
|
3.13
|
%
|
Discount rate end of year
|
|
2.65
|
|
|
3.83
|
|
(in thousands)
|
|
Payments
|
||
2020
|
|
$
|
293
|
|
2021
|
|
260
|
|
|
2022
|
|
260
|
|
|
2023
|
|
260
|
|
|
2024
|
|
260
|
|
|
2025-2036
|
|
2,027
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
|
||||||
Federal tax expense
|
|
$
|
2,639
|
|
|
$
|
6,775
|
|
|
$
|
8,705
|
|
State tax expense
|
|
550
|
|
|
1,230
|
|
|
1,039
|
|
|||
Total current tax expense
|
|
3,189
|
|
|
8,005
|
|
|
9,744
|
|
|||
|
|
|
|
|
|
|
||||||
Deferred tax expense
|
|
1,020
|
|
|
(443
|
)
|
|
2,898
|
|
|||
Impact of federal tax reform enactment
|
|
—
|
|
|
—
|
|
|
3,988
|
|
|||
Total income tax expense
|
|
$
|
4,209
|
|
|
$
|
7,562
|
|
|
$
|
16,630
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(in thousands, except ratios)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||||
Statutory tax rate
|
|
$
|
5,633
|
|
|
21.00
|
%
|
|
$
|
8,505
|
|
|
21.00
|
%
|
|
$
|
14,918
|
|
|
35.00
|
%
|
Increase (decrease) resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
State taxes, net of federal benefit
|
|
547
|
|
|
2.04
|
|
|
908
|
|
|
2.24
|
|
|
986
|
|
|
2.31
|
|
|||
Tax exempt interest
|
|
(1,375
|
)
|
|
(5.13
|
)
|
|
(1,315
|
)
|
|
(3.25
|
)
|
|
(2,074
|
)
|
|
(4.87
|
)
|
|||
Federal tax credits
|
|
(282
|
)
|
|
(1.05
|
)
|
|
(125
|
)
|
|
(0.31
|
)
|
|
(130
|
)
|
|
(0.3
|
)
|
|||
Officers' life insurance
|
|
(431
|
)
|
|
(1.61
|
)
|
|
(382
|
)
|
|
(0.94
|
)
|
|
(538
|
)
|
|
(1.26
|
)
|
|||
Acquisition costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
0.21
|
|
|||
Stock-based compensation plans
|
|
(20
|
)
|
|
(0.07
|
)
|
|
(120
|
)
|
|
(0.3
|
)
|
|
(241
|
)
|
|
(0.57
|
)
|
|||
Impact of federal tax reform enactment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,988
|
|
|
9.36
|
|
|||
Other
|
|
137
|
|
|
0.51
|
|
|
91
|
|
|
0.23
|
|
|
(368
|
)
|
|
(0.86
|
)
|
|||
Effective tax rate
|
|
$
|
4,209
|
|
|
15.69
|
%
|
|
$
|
7,562
|
|
|
18.67
|
%
|
|
$
|
16,630
|
|
|
39.02
|
%
|
|
|
2019
|
|
2018
|
||||||||||||
(in thousands)
|
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Allowance for loan losses
|
|
$
|
3,507
|
|
|
$
|
—
|
|
|
$
|
3,085
|
|
|
$
|
—
|
|
Deferred compensation
|
|
3,383
|
|
|
—
|
|
|
3,242
|
|
|
—
|
|
||||
Unrealized gain or loss on securities available for sale
|
|
—
|
|
|
1,858
|
|
|
2,641
|
|
|
—
|
|
||||
Unrealized gain or loss on derivatives
|
|
307
|
|
|
—
|
|
|
685
|
|
|
—
|
|
||||
Depreciation
|
|
—
|
|
|
1,722
|
|
|
—
|
|
|
1,517
|
|
||||
Deferred loan origination costs
|
|
—
|
|
|
862
|
|
|
—
|
|
|
725
|
|
||||
Non-accrual interest
|
|
381
|
|
|
—
|
|
|
374
|
|
|
—
|
|
||||
Branch acquisition costs and goodwill
|
|
—
|
|
|
712
|
|
|
—
|
|
|
784
|
|
||||
Core deposit intangible
|
|
—
|
|
|
1,231
|
|
|
—
|
|
|
1,309
|
|
||||
Acquisition fair value adjustments
|
|
2,223
|
|
|
—
|
|
|
3,171
|
|
|
—
|
|
||||
Prepaid expenses
|
|
—
|
|
|
311
|
|
|
—
|
|
|
215
|
|
||||
Interest rate cap premium amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
257
|
|
||||
Mortgage servicing rights
|
|
—
|
|
|
703
|
|
|
—
|
|
|
721
|
|
||||
Equity compensation
|
|
468
|
|
|
—
|
|
|
335
|
|
|
—
|
|
||||
Prepaid pension
|
|
—
|
|
|
359
|
|
|
—
|
|
|
366
|
|
||||
Contract incentives
|
|
1,167
|
|
|
—
|
|
|
1,658
|
|
|
—
|
|
||||
Right of use asset
|
|
—
|
|
|
2,253
|
|
|
—
|
|
|
—
|
|
||||
Lease liability
|
|
2,273
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
160
|
|
|
—
|
|
|
217
|
|
|
—
|
|
||||
Total
|
|
$
|
13,869
|
|
|
$
|
10,011
|
|
|
$
|
15,408
|
|
|
$
|
5,894
|
|
|
|
December 31, 2019
|
||||||||||
|
|
Notional
Amount
|
|
Weighted Average Maturity
|
|
Fair Value Asset (Liability)
|
|
Location Fair Value Asset (Liability)
|
||||
|
|
(in thousands)
|
|
(in years)
|
|
(in thousands)
|
|
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate swap on deposits
|
|
$
|
100,000
|
|
|
4.6
|
|
$
|
(1,311
|
)
|
|
Other liabilities
|
Total cash flow hedges
|
|
100,000
|
|
|
|
|
(1,311
|
)
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate swap on securities
|
|
37,190
|
|
|
9.6
|
|
593
|
|
|
Other liabilities
|
||
Total fair value hedges
|
|
37,190
|
|
|
|
|
593
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Economic hedges:
|
|
|
|
|
|
|
|
|
|
|
||
Forward sale commitments
|
|
11,228
|
|
|
0.1
|
|
(84
|
)
|
|
Other liabilities
|
||
Customer Loan Swaps - MNA Counterparty
|
|
135,598
|
|
|
7.5
|
|
(4,669
|
)
|
|
(1)
|
||
Customer Loan Swaps - RPA Counterparty
|
|
69,505
|
|
|
8.8
|
|
(3,377
|
)
|
|
(1)
|
||
Customer Loan Swaps - Customer
|
|
205,103
|
|
|
8.1
|
|
8,046
|
|
|
(1)
|
||
Total economic hedges
|
|
421,434
|
|
|
|
|
(84
|
)
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Non-hedging derivatives:
|
|
|
|
|
|
|
|
|
||||
Interest rate lock commitments
|
|
21,748
|
|
|
0.1
|
|
59
|
|
|
Other assets
|
||
Total non-hedging derivatives
|
|
21,748
|
|
|
|
|
59
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Total
|
|
$
|
580,372
|
|
|
|
|
$
|
(743
|
)
|
|
|
(1)
|
Customer loan derivatives are subject to MNA or RPA arrangements with financial institution counterparties, thus assets and liabilities with the counterparty are netted for financial statement presentation.
|
|
|
December 31, 2018
|
||||||||||
|
|
Notional
Amount
|
|
Weighted Average Maturity
|
|
Fair Value Asset (Liability)
|
|
Location Fair Value Asset (Liability)
|
||||
|
|
(in thousands)
|
|
(in years)
|
|
(in thousands)
|
|
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate caps agreements
|
|
$
|
90,000
|
|
|
4.1
|
|
$
|
803
|
|
|
Other liabilities
|
Total cash flow hedges
|
|
90,000
|
|
|
|
|
803
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Non-hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate lock commitments
|
|
957
|
|
|
0.1
|
|
8
|
|
|
Other assets
|
||
Customer loan derivative liability
|
|
45,641
|
|
|
9.9
|
|
(1,353
|
)
|
|
(1)
|
||
Customer loan derivative asset
|
|
45,641
|
|
|
9.9
|
|
1,353
|
|
|
(1)
|
||
Total non-hedging derivatives
|
|
92,239
|
|
|
|
|
8
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||
Total
|
|
$
|
182,239
|
|
|
|
|
$
|
811
|
|
|
|
(1)
|
Customer loan derivatives are subject to MNA or RPA arrangements with financial institution counterparties, thus assets and liabilities with the counterparty are netted for financial statement presentation.
|
|
|
Location of Hedged Item on Balance Sheet
|
|
Carrying Amount of Hedged Assets (Liabilities)
|
|
Cumulative Amount of Fair Value Hedging Adjustment in Carrying Amount
|
||||
December 31, 2019
|
|
|
|
|
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
||||
Interest rate swap on securities
|
|
Securities Available for Sale
|
|
$
|
39,026
|
|
|
$
|
523
|
|
|
|
|
|
|
|
|
||||
December 31, 2018
|
|
|
|
|
|
|
||||
Fair value hedges:
|
|
|
|
|
|
|
||||
Interest rate swap on securities
|
|
Securities Available for Sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Twelve Months Ended December 31, 2019
|
||||||||||||||
(in thousands)
|
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income
|
|
Location of Gain (Loss) Reclassified from Other Comprehensive Income
|
|
Amount of Gain (Loss) Reclassified from Other Comprehensive Income(1)
|
|
Location of Gain (Loss) Recognized in
Income |
|
Amount of Gain (Loss) Recognized in Income
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate cap agreements
|
|
$
|
—
|
|
|
Acquisition, restructuring, and other expenses
|
|
$
|
3,156
|
|
|
Interest expense
|
|
$
|
(603
|
)
|
Interest rate swap on deposits
|
|
2,291
|
|
|
Interest expense
|
|
—
|
|
|
Interest expense
|
|
(2
|
)
|
|||
Total cash flow hedges
|
|
2,291
|
|
|
|
|
3,156
|
|
|
|
|
(605
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Fair value hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap on securities
|
|
(523
|
)
|
|
Interest income
|
|
—
|
|
|
Interest income
|
|
7
|
|
|||
Total fair value hedges
|
|
(523
|
)
|
|
|
|
—
|
|
|
|
|
7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Economic hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Forward commitments
|
|
—
|
|
|
Other income
|
|
—
|
|
|
Other income
|
|
(84
|
)
|
|||
Total economic hedges
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(84
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments
|
|
—
|
|
|
Other Income
|
|
—
|
|
|
Other Income
|
|
52
|
|
|||
Total non-hedging derivatives
|
|
—
|
|
|
|
|
—
|
|
|
|
|
52
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
1,768
|
|
|
|
|
$
|
3,156
|
|
|
|
|
$
|
(630
|
)
|
(1)
|
As of December 31, 2019 the Company does not expect any gains or losses from accumulated other comprehensive income into earnings withing the next 12 months.
|
|
|
Twelve Months Ended December 31, 2018
|
||||||||||||||
(in thousands)
|
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income
|
|
Location of Gain (Loss) Reclassified from Other Comprehensive Income
|
|
Amount of Gain (Loss) Reclassified from Other Comprehensive Income(1)
|
|
Location of Gain (Loss) Recognized in
Income |
|
Amount of Gain (Loss) Recognized in Income
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate cap agreements
|
|
$
|
486
|
|
|
Acquisition, restructuring, and other expenses
|
|
$
|
—
|
|
|
Interest expense
|
|
$
|
(519
|
)
|
Total cash flow hedges
|
|
486
|
|
|
|
|
—
|
|
|
|
|
(519
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Economic hedges:
|
|
|
|
|
|
|
|
|
|
|
||||||
Forward commitments
|
|
—
|
|
|
Other income
|
|
—
|
|
|
Other income
|
|
221
|
|
|||
Total economic hedges
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate lock commitments
|
|
—
|
|
|
Other Income
|
|
—
|
|
|
Other Income
|
|
9
|
|
|||
Total non-hedging derivatives
|
|
—
|
|
|
|
|
—
|
|
|
|
|
9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
486
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
(510
|
)
|
(1)
|
As of December 31, 2019 the Company does not expect any gains or losses from accumulated other comprehensive income into earnings withing the next 12 months.
|
|
|
Gross Amounts Offset in the Consolidated Balance Sheet
|
||||||||||||||
(in thousands)
|
|
Derivative Liabilities
|
|
Derivative Assets
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Customer Loan Derivatives:
|
|
|
|
|
|
|
|
|
||||||||
MNA counterparty
|
|
$
|
(4,669
|
)
|
|
$
|
4,669
|
|
|
$
|
10,700
|
|
|
$
|
—
|
|
RPA counterparty
|
|
(3,377
|
)
|
|
3,377
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
(8,046
|
)
|
|
$
|
8,046
|
|
|
$
|
10,700
|
|
|
$
|
—
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Commitments to originate new loans
|
|
$
|
112,669
|
|
|
$
|
20,431
|
|
Unused funds on commercial and other lines of credit
|
|
188,098
|
|
|
169,063
|
|
||
Unadvanced funds on home equity lines of credit
|
|
114,711
|
|
|
106,121
|
|
||
Unadvanced funds on construction and real estate loans
|
|
97,500
|
|
|
133,130
|
|
||
Commercial letters of credit
|
|
2,941
|
|
|
1,171
|
|
||
Standby letters of credit
|
|
—
|
|
|
486
|
|
||
Total
|
|
$
|
515,919
|
|
|
$
|
430,402
|
|
|
|
2019
|
||||||||||||
|
|
Actual
|
|
Regulatory Minimum to be "Well-Capitalized"
|
||||||||||
(in thousands, except ratios)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
Company (consolidated)
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets
|
|
$
|
341,492
|
|
|
13.61
|
%
|
|
$
|
263,377
|
|
|
10.50
|
%
|
Common equity tier 1 capital to risk-weighted assets
|
|
265,205
|
|
|
10.57
|
|
|
175,584
|
|
|
7.00
|
|
||
Tier 1 capital to risk-weighted assets
|
|
285,825
|
|
|
11.39
|
|
|
213,211
|
|
|
8.50
|
|
||
Tier 1 capital to average assets
|
|
285,825
|
|
|
8.13
|
|
|
175,890
|
|
|
5.00
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Bank
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets
|
|
$
|
310,982
|
|
|
12.42
|
%
|
|
$
|
262,999
|
|
|
10.50
|
%
|
Common equity tier 1 capital to risk-weighted assets
|
|
295,315
|
|
|
11.79
|
|
|
175,332
|
|
|
7.00
|
|
||
Tier 1 capital to risk-weighted assets
|
|
295,315
|
|
|
11.79
|
|
|
212,904
|
|
|
8.50
|
|
||
Tier 1 capital to average assets
|
|
295,315
|
|
|
8.39
|
|
|
175,996
|
|
|
5.00
|
|
|
|
2018
|
||||||||||||
|
|
Actual
|
|
Regulatory Minimum to be "Well-Capitalized"
|
||||||||||
(in thousands, except ratios)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
Company (consolidated)
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets
|
|
$
|
331,628
|
|
|
14.23
|
%
|
|
$
|
230,093
|
|
|
9.88
|
%
|
Common equity tier 1 capital to risk-weighted assets
|
|
274,838
|
|
|
11.80
|
|
|
148,542
|
|
|
6.38
|
|
||
Tier 1 capital to risk-weighted assets
|
|
295,458
|
|
|
12.68
|
|
|
183,492
|
|
|
7.88
|
|
||
Tier 1 capital to average assets
|
|
295,458
|
|
|
8.53
|
|
|
173,102
|
|
|
5.00
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Bank
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets
|
|
$
|
321,390
|
|
|
13.82
|
%
|
|
$
|
229,707
|
|
|
9.88
|
%
|
Common equity tier 1 capital to risk-weighted assets
|
|
302,220
|
|
|
12.99
|
|
|
148,292
|
|
|
6.38
|
|
||
Tier 1 capital to risk-weighted assets
|
|
302,220
|
|
|
12.99
|
|
|
183,184
|
|
|
7.88
|
|
||
Tier 1 capital to average assets
|
|
302,220
|
|
|
8.74
|
|
|
172,990
|
|
|
5.00
|
|
(in thousands)
|
|
2019
|
|
2018
|
||||
Other accumulated comprehensive income (loss), before tax:
|
|
|
|
|
||||
Net unrealized gain (loss) on AFS securities
|
|
$
|
7,342
|
|
|
$
|
(11,304
|
)
|
Net unrealized loss on derivative hedges
|
|
(718
|
)
|
|
(2,934
|
)
|
||
Net unrealized loss on post-retirement plans
|
|
(1,512
|
)
|
|
(1,162
|
)
|
||
|
|
|
|
|
||||
Income taxes related to items of accumulated other comprehensive (income) loss:
|
|
|
|
|
||||
Net unrealized (gain) loss on AFS securities
|
|
(1,793
|
)
|
|
2,641
|
|
||
Net unrealized loss on derivative hedges
|
|
237
|
|
|
685
|
|
||
Net unrealized loss on post-retirement plans
|
|
355
|
|
|
272
|
|
||
Accumulated other comprehensive income (loss)
|
|
$
|
3,911
|
|
|
$
|
(11,802
|
)
|
|
|
2019
|
||||||||||
(in thousands)
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
Net unrealized gain on AFS securities:
|
|
|
|
|
|
|
||||||
Net unrealized gain arising during the period
|
|
$
|
18,883
|
|
|
$
|
(4,489
|
)
|
|
$
|
14,394
|
|
Less: reclassification adjustment for gains (losses) realized in net income
|
|
237
|
|
|
(55
|
)
|
|
182
|
|
|||
Net unrealized gain on AFS securities
|
|
18,646
|
|
|
(4,434
|
)
|
|
14,212
|
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized loss on derivative hedges:
|
|
|
|
|
|
|
||||||
Net unrealized loss arising during the period
|
|
(940
|
)
|
|
289
|
|
|
(651
|
)
|
|||
Less: reclassification adjustment for gains (losses) realized in net income
|
|
(3,156
|
)
|
|
737
|
|
|
(2,419
|
)
|
|||
Net unrealized gain on derivative hedges
|
|
2,216
|
|
|
(448
|
)
|
|
1,768
|
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized gain on post-retirement plans:
|
|
|
|
|
|
|
||||||
Net unrealized gain arising during the period
|
|
(350
|
)
|
|
83
|
|
|
(267
|
)
|
|||
Less: reclassification adjustment for gains (losses) realized in net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net unrealized gain on post-retirement plans
|
|
(350
|
)
|
|
83
|
|
|
(267
|
)
|
|||
Other comprehensive income
|
|
$
|
20,512
|
|
|
$
|
(4,799
|
)
|
|
$
|
15,713
|
|
|
|
2018
|
||||||||||
(in thousands)
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
Net unrealized loss on AFS securities:
|
|
|
|
|
|
|
||||||
Net unrealized loss arising during the period
|
|
$
|
(9,487
|
)
|
|
$
|
2,194
|
|
|
$
|
(7,293
|
)
|
Less: reclassification adjustment for gains (losses) realized in net income
|
|
(924
|
)
|
|
216
|
|
|
(708
|
)
|
|||
Net unrealized loss on AFS securities
|
|
(8,563
|
)
|
|
1,978
|
|
|
(6,585
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized gain on derivative hedges:
|
|
|
|
|
|
|
||||||
Net unrealized gain arising during the period
|
|
654
|
|
|
(168
|
)
|
|
486
|
|
|||
Less: reclassification adjustment for gains (losses) realized in net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net unrealized gain on derivative hedges
|
|
654
|
|
|
(168
|
)
|
|
486
|
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized loss on post-retirement plans:
|
|
|
|
|
|
|
||||||
Net unrealized loss arising during the period
|
|
(245
|
)
|
|
54
|
|
|
(191
|
)
|
|||
Less: reclassification adjustment for gains (losses) realized in net income
|
|
(29
|
)
|
|
7
|
|
|
(22
|
)
|
|||
Net unrealized loss on post-retirement plans
|
|
(216
|
)
|
|
47
|
|
|
(169
|
)
|
|||
Other comprehensive loss
|
|
$
|
(8,125
|
)
|
|
$
|
1,857
|
|
|
$
|
(6,268
|
)
|
|
|
2017
|
||||||||||
(in thousands)
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
Net unrealized gain on AFS securities:
|
|
|
|
|
|
|
||||||
Net unrealized gain arising during the period
|
|
$
|
545
|
|
|
$
|
(121
|
)
|
|
$
|
424
|
|
Less: reclassification adjustment for gains (losses) realized in net income
|
|
19
|
|
|
(7
|
)
|
|
12
|
|
|||
Net unrealized gain on AFS securities
|
|
526
|
|
|
(114
|
)
|
|
412
|
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized loss on derivative hedges:
|
|
|
|
|
|
|
||||||
Net unrealized loss arising during the period
|
|
(838
|
)
|
|
386
|
|
|
(452
|
)
|
|||
Less: reclassification adjustment for gains (losses) realized in net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net unrealized loss on derivative hedges
|
|
(838
|
)
|
|
386
|
|
|
(452
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized loss on post-retirement plans:
|
|
|
|
|
|
|
||||||
Net unrealized loss arising during the period
|
|
(347
|
)
|
|
146
|
|
|
(201
|
)
|
|||
Less: reclassification adjustment for gains (losses) realized in net income
|
|
(21
|
)
|
|
8
|
|
|
(13
|
)
|
|||
Net unrealized loss on post-retirement plans
|
|
(326
|
)
|
|
138
|
|
|
(188
|
)
|
|||
Other comprehensive loss
|
|
$
|
(638
|
)
|
|
$
|
410
|
|
|
$
|
(228
|
)
|
|
|
2019
|
||||||||||||||
(in thousands)
|
|
Net unrealized gain on AFS Securities
|
|
Net loss on effective derivative hedges
|
|
Net unrealized loss on post-retirement plans
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$
|
(8,665
|
)
|
|
$
|
(2,249
|
)
|
|
$
|
(888
|
)
|
|
$
|
(11,802
|
)
|
Other comprehensive gain/(loss) before reclassifications
|
|
14,394
|
|
|
(651
|
)
|
|
(267
|
)
|
|
13,476
|
|
||||
Less: amounts reclassified from accumulated other comprehensive income
|
|
182
|
|
|
(2,419
|
)
|
|
—
|
|
|
(2,237
|
)
|
||||
Total other comprehensive loss
|
|
14,212
|
|
|
1,768
|
|
|
(267
|
)
|
|
15,713
|
|
||||
Balance at end of period
|
|
$
|
5,547
|
|
|
$
|
(481
|
)
|
|
$
|
(1,155
|
)
|
|
$
|
3,911
|
|
|
|
2018
|
||||||||||||||
(in thousands)
|
|
Net unrealized gain on AFS Securities
|
|
Net loss on effective derivative hedges
|
|
Net unrealized loss on post-retirement plans
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$
|
(1,713
|
)
|
|
$
|
(2,250
|
)
|
|
$
|
(591
|
)
|
|
$
|
(4,554
|
)
|
Other comprehensive gain/(loss) before reclassifications
|
|
(7,293
|
)
|
|
486
|
|
|
(191
|
)
|
|
(6,998
|
)
|
||||
Less: amounts reclassified from accumulated other comprehensive income
|
|
(708
|
)
|
|
—
|
|
|
(22
|
)
|
|
(730
|
)
|
||||
Total other comprehensive loss
|
|
(6,585
|
)
|
|
486
|
|
|
(169
|
)
|
|
(6,268
|
)
|
||||
Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02
|
|
(367
|
)
|
|
(485
|
)
|
|
(128
|
)
|
|
(980
|
)
|
||||
Balance at end of period
|
|
$
|
(8,665
|
)
|
|
$
|
(2,249
|
)
|
|
$
|
(888
|
)
|
|
$
|
(11,802
|
)
|
|
|
2017
|
||||||||||||||
(in thousands)
|
|
Net unrealized gain on AFS Securities
|
|
Net loss on effective derivative hedges
|
|
Net unrealized loss on post-retirement plans
|
|
Total
|
||||||||
Balance at beginning of period
|
|
$
|
(2,125
|
)
|
|
$
|
(1,798
|
)
|
|
$
|
(403
|
)
|
|
$
|
(4,326
|
)
|
Other comprehensive gain/(loss) before reclassifications
|
|
424
|
|
|
(452
|
)
|
|
(201
|
)
|
|
(229
|
)
|
||||
Less: amounts reclassified from accumulated other comprehensive income
|
|
12
|
|
|
—
|
|
|
(13
|
)
|
|
(1
|
)
|
||||
Total other comprehensive loss
|
|
412
|
|
|
(452
|
)
|
|
(188
|
)
|
|
(228
|
)
|
||||
Balance at end of period
|
|
$
|
(1,713
|
)
|
|
$
|
(2,250
|
)
|
|
$
|
(591
|
)
|
|
$
|
(4,554
|
)
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Affected Line Item where Net Income is Presented
|
||||||
Realized gains on AFS securities:
|
|
|
|
|
|
|
|
|
||||||
Before tax
|
|
$
|
237
|
|
|
$
|
(924
|
)
|
|
$
|
19
|
|
|
Non-interest income
|
Tax effect
|
|
(55
|
)
|
|
216
|
|
|
(7
|
)
|
|
Tax expense
|
|||
Total reclassifications for the period
|
|
$
|
182
|
|
|
$
|
(708
|
)
|
|
$
|
12
|
|
|
Net of tax
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Affected Line Item where Net Income is Presented
|
||||||
Realized loss on effective derivative hedges:
|
|
|
|
|
|
|
|
|
||||||
Before tax
|
|
$
|
(3,156
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Non-interest expense
|
Tax effect
|
|
737
|
|
|
—
|
|
|
—
|
|
|
Tax benefit
|
|||
Total reclassifications for the period
|
|
$
|
(2,419
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Net of tax
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
Affected Line Item where Net Income is Presented
|
||||||
Realized loss on post-retirement plans:
|
|
|
|
|
|
|
|
|
||||||
Before tax
|
|
$
|
—
|
|
|
$
|
(29
|
)
|
|
$
|
(21
|
)
|
|
Salaries and benefits
|
Tax effect
|
|
—
|
|
|
7
|
|
|
8
|
|
|
Tax benefit
|
|||
Total reclassifications for the period
|
|
$
|
—
|
|
|
$
|
(22
|
)
|
|
$
|
(13
|
)
|
|
Net of tax
|
(in thousands, except per share and share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
22,620
|
|
|
$
|
32,937
|
|
|
$
|
25,993
|
|
|
|
|
|
|
|
|
||||||
Average number of basic common shares outstanding
|
|
15,540,884
|
|
|
15,487,686
|
|
|
15,183,615
|
|
|||
Plus: dilutive effect of stock options and awards outstanding
|
|
46,109
|
|
|
76,778
|
|
|
106,795
|
|
|||
Average number of diluted common shares outstanding
|
|
15,586,993
|
|
|
15,564,464
|
|
|
15,290,410
|
|
|||
|
|
|
|
|
|
|
||||||
Anti-dilutive options excluded from earnings calculation
|
|
—
|
|
|
7,991
|
|
|
8,659
|
|
|||
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
1.46
|
|
|
$
|
2.13
|
|
|
$
|
1.71
|
|
Diluted
|
|
$
|
1.45
|
|
|
$
|
2.12
|
|
|
$
|
1.70
|
|
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Stock options and restricted stock awards
|
|
$
|
328
|
|
|
$
|
350
|
|
|
$
|
399
|
|
Performance stock units
|
|
170
|
|
|
237
|
|
|
290
|
|
|||
Restricted stock units
|
|
854
|
|
|
711
|
|
|
585
|
|
|||
Total compensation expense
|
|
$
|
1,352
|
|
|
$
|
1,298
|
|
|
$
|
1,274
|
|
Stock Options
|
|
Number of Stock Options Outstanding
|
|
Weighted Average Exercise Price
|
|
Aggregate Intrinsic Value (in thousands)
|
|||||
Outstanding at January 1, 2019
|
|
121,637
|
|
|
$
|
19.96
|
|
|
|
||
Granted
|
|
—
|
|
|
—
|
|
|
|
|||
Exercised
|
|
(13,853
|
)
|
|
18.44
|
|
|
|
|||
Forfeited
|
|
—
|
|
|
—
|
|
|
|
|||
Outstanding at December 31, 2019
|
|
107,784
|
|
|
$
|
20.15
|
|
|
$
|
565
|
|
|
|
|
|
|
|
|
|||||
Ending vested and expected to vest December 31, 2019
|
|
107,784
|
|
|
$
|
20.15
|
|
|
$
|
565
|
|
Exercisable at December 31, 2019
|
|
98,460
|
|
|
20.48
|
|
|
483
|
|
Stock Options
|
|
Number of Stock Options Outstanding
|
|
Weighted Average Exercise Price
|
|
Aggregate Intrinsic Value (in thousands)
|
|||||
Outstanding at January 1, 2018
|
|
169,921
|
|
|
$
|
18.95
|
|
|
|
||
Granted
|
|
—
|
|
|
—
|
|
|
|
|||
Exercised
|
|
(47,534
|
)
|
|
16.32
|
|
|
|
|||
Forfeited
|
|
(750
|
)
|
|
22.16
|
|
|
|
|||
Outstanding at December 31, 2018
|
|
121,637
|
|
|
$
|
19.96
|
|
|
$
|
313
|
|
|
|
|
|
|
|
|
|||||
Ending vested and expected to vest December 31, 2018
|
|
121,637
|
|
|
$
|
19.96
|
|
|
$
|
313
|
|
Exercisable at December 31, 2018
|
|
101,554
|
|
|
20.66
|
|
|
192
|
|
Restricted Stock Awards
|
|
Number of Restricted Stock Awards Outstanding
|
|
Weighted Average Grant Date Fair Value
|
|||
Outstanding at January 1, 2018
|
|
—
|
|
|
$
|
—
|
|
Awarded
|
|
12,420
|
|
|
24.14
|
|
|
Vested
|
|
(12,420
|
)
|
|
24.14
|
|
|
Forfeited
|
|
—
|
|
|
—
|
|
|
Outstanding at December 31, 2018
|
|
—
|
|
|
$
|
—
|
|
Performance Stock Units
|
|
Number of Performance Stock Units Outstanding
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at January 1, 2019
|
|
37,865
|
|
|
$
|
26.77
|
|
Awarded
|
|
17,968
|
|
|
23.24
|
|
|
Vested and exercised
|
|
(11,801
|
)
|
|
23.92
|
|
|
Forfeited
|
|
(974
|
)
|
|
28.78
|
|
|
Nonvested at December 31, 2019
|
|
43,058
|
|
|
$
|
26.01
|
|
Performance Stock Units
|
|
Number of Performance Stock Units Outstanding
|
|
Weighted Average Grant Date Fair Value
|
|||
Nonvested at January 1, 2018
|
|
33,627
|
|
|
$
|
25.21
|
|
Awarded
|
|
23,011
|
|
|
26.30
|
|
|
Vested and exercised
|
|
(15,017
|
)
|
|
22.25
|
|
|
Forfeited
|
|
(3,756
|
)
|
|
27.94
|
|
|
Nonvested at December 31, 2018
|
|
37,865
|
|
|
$
|
26.77
|
|
Restricted Stock Units
|
|
Number of Restricted Stock Units Outstanding
|
|
Weighted Average Grant Date Fair Value
|
|||
Outstanding at January 1, 2019
|
|
80,740
|
|
|
$
|
28.24
|
|
Granted
|
|
50,352
|
|
|
22.45
|
|
|
Vested and exercised
|
|
(19,411
|
)
|
|
26.11
|
|
|
Forfeited
|
|
(5,129
|
)
|
|
29.28
|
|
|
Outstanding at December 31, 2019
|
|
106,552
|
|
|
$
|
25.82
|
|
Restricted Stock Units
|
|
Number of Restricted Stock Units Outstanding
|
|
Weighted Average Grant Date Fair Value
|
|||
Outstanding at January 1, 2018
|
|
74,168
|
|
|
$
|
26.60
|
|
Granted
|
|
46,743
|
|
|
28.66
|
|
|
Vested and exercised
|
|
(26,489
|
)
|
|
24.36
|
|
|
Forfeited
|
|
(13,682
|
)
|
|
28.28
|
|
|
Outstanding at December 31, 2018
|
|
80,740
|
|
|
$
|
28.24
|
|
|
|
December 31, 2019
|
||||||||||||||
(in thousands)
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
|
Total Fair Value
|
||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
US Government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
321,969
|
|
|
$
|
—
|
|
|
$
|
321,969
|
|
US Government agency
|
|
—
|
|
|
99,661
|
|
|
—
|
|
|
99,661
|
|
||||
Private label
|
|
—
|
|
|
19,533
|
|
|
—
|
|
|
19,533
|
|
||||
Obligations of states and political subdivisions thereof
|
|
—
|
|
|
142,006
|
|
|
—
|
|
|
142,006
|
|
||||
Corporate bonds
|
|
—
|
|
|
80,061
|
|
|
—
|
|
|
80,061
|
|
||||
Derivative assets
|
|
—
|
|
|
6,791
|
|
|
59
|
|
|
6,850
|
|
||||
Derivative liabilities
|
|
—
|
|
|
(8,102
|
)
|
|
(84
|
)
|
|
(8,186
|
)
|
|
|
December 31, 2018
|
||||||||||||||
(in thousands)
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
|
Total Fair Value
|
||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
|
||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
||||||||
US Government-sponsored enterprises
|
|
$
|
—
|
|
|
$
|
404,952
|
|
|
$
|
—
|
|
|
$
|
404,952
|
|
US Government agency
|
|
—
|
|
|
110,512
|
|
|
—
|
|
|
110,512
|
|
||||
Private label
|
|
—
|
|
|
20,382
|
|
|
—
|
|
|
20,382
|
|
||||
Obligations of states and political subdivisions thereof
|
|
—
|
|
|
132,265
|
|
|
—
|
|
|
132,265
|
|
||||
Corporate bonds
|
|
—
|
|
|
57,726
|
|
|
—
|
|
|
57,726
|
|
||||
Derivative assets
|
|
—
|
|
|
2,156
|
|
|
8
|
|
|
2,164
|
|
||||
Derivative liabilities
|
|
—
|
|
|
(1,353
|
)
|
|
—
|
|
|
(1,353
|
)
|
|
|
Assets (Liabilities)
|
||||||
(in thousands)
|
|
Interest Rate Lock Commitments
|
|
Forward Commitments
|
||||
December 31, 2017
|
|
$
|
(1
|
)
|
|
$
|
(221
|
)
|
Realized loss recognized in non-interest income
|
|
9
|
|
|
221
|
|
||
December 31, 2018
|
|
8
|
|
|
—
|
|
||
Realized gain (loss) recognized in non-interest income
|
|
51
|
|
|
(84
|
)
|
||
December 31, 2019
|
|
$
|
59
|
|
|
$
|
(84
|
)
|
(in thousands, except ratios)
|
|
Fair Value
December 31, 2019 |
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
Significant Unobservable Input Value
|
||||
Assets (Liabilities)
|
|
|
|
|
|
|
|
|
|
|
||
Interest Rate Lock Commitment
|
|
$
|
59
|
|
|
Historical trend
|
|
Closing Ratio
|
|
90
|
%
|
|
|
|
|
|
Pricing Model
|
|
Origination Costs, per loan
|
|
$
|
1.7
|
|
||
|
|
|
|
|
|
|
|
|
||||
Forward Commitments
|
|
(84
|
)
|
|
Quoted prices for similar loans in active markets.
|
|
Freddie Mac pricing system
|
|
Pair-off contract price
|
|
||
Total
|
|
$
|
(25
|
)
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2019
|
|
Fair Value Measurement Date as of December 31, 2019
|
||||||
(in thousands)
|
|
Level 3
Inputs
|
|
Level 3
Inputs |
|
Total
Gains (Losses)
|
|
Level 3
Inputs
|
||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
$
|
9,625
|
|
|
$
|
15,213
|
|
|
$
|
5,588
|
|
|
December 2019
|
Capitalized servicing rights
|
|
4,301
|
|
|
4,882
|
|
|
—
|
|
|
December 2019
|
|||
Other real estate owned
|
|
2,236
|
|
|
2,351
|
|
|
(166
|
)
|
|
August 2019
|
|||
Premises held for sale
|
|
1,764
|
|
|
—
|
|
|
—
|
|
|
September 2019
|
|||
Total
|
|
$
|
17,926
|
|
|
$
|
22,446
|
|
|
$
|
5,422
|
|
|
|
|
|
Fair Value
|
|
|
|
|
|
Range (Weighted Average) (a)
|
||||
(in thousands, except ratios)
|
|
December 31, 2019
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
6,137
|
|
|
Fair value of collateral - appraised value
|
|
Loss severity
|
|
0% to 55.00%
|
|
|
|
|
|
|
|
|
Appraised value
|
|
$0 to $6,915
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
3,488
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
2.88% to 9.50%
|
|
||
|
|
|
|
|
|
Cash flows
|
|
$22 to $1,002
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Capitalized servicing rights
|
|
4,301
|
|
|
Discounted cash flow
|
|
Constant prepayment rate (CPR)
|
|
9.95
|
%
|
||
|
|
|
|
|
|
Discount rate
|
|
10.07
|
%
|
|||
|
|
|
|
|
|
|
|
|
||||
Other real estate owned
|
|
2,236
|
|
|
Fair value of collateral less selling costs
|
|
Appraised value
|
|
|
$2,695
|
|
|
|
|
|
|
|
|
Selling costs
|
|
10% to 20%
|
|
|||
Premises held for sale(b)
|
|
1,764
|
|
|
Fair value of asset less selling costs
|
|
Appraised value
|
|
$136 to $527
|
|
||
|
|
|
|
|
|
Selling Costs
|
|
6.00
|
%
|
|||
Total
|
|
$
|
17,926
|
|
|
|
|
|
|
|
(a)
|
Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.
|
(b)
|
The carrying value of premises held for sale was $1.8 million as of December 31, 2019. There were no premises held for sale as of December 31, 2018.
|
|
|
Fair Value
|
|
|
|
|
|
Range (Weighted Average) (a)
|
||||
(in thousands, except ratios)
|
|
December 31, 2018
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||
Impaired loans
|
|
$
|
11,676
|
|
|
Fair value of collateral - appraised value
|
|
Loss severity
|
|
0% to 55.00%
|
|
|
|
|
|
|
|
|
Appraised value
|
|
$0 to $6,915
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
3,537
|
|
|
Discount cash flow
|
|
Discount rate
|
|
2.88% to 9.50%
|
|
||
|
|
|
|
|
|
Cash flows
|
|
$22 to $1,072
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Capitalized servicing rights
|
|
4,882
|
|
|
Discounted cash flow
|
|
Constant prepayment rate (CPR)
|
|
8.19
|
%
|
||
|
|
|
|
|
|
Discount rate
|
|
10.08
|
%
|
|||
|
|
|
|
|
|
|
|
|
||||
Other real estate owned
|
|
2,351
|
|
|
Fair value of collateral less selling costs
|
|
Appraised value
|
|
|
$2,700
|
|
|
|
|
|
|
|
|
|
Selling costs
|
|
12.93
|
%
|
||
Total
|
|
$
|
22,446
|
|
|
|
|
|
|
|
(a)
|
Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties.
|
|
|
December 31, 2019
|
||||||||||||||||||
(in thousands)
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
56,910
|
|
|
$
|
56,910
|
|
|
$
|
56,910
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available for sale
|
|
663,230
|
|
|
663,230
|
|
|
—
|
|
|
663,230
|
|
|
—
|
|
|||||
FHLB bank stock
|
|
20,679
|
|
|
20,679
|
|
|
—
|
|
|
20,679
|
|
|
—
|
|
|||||
Net loans
|
|
2,625,739
|
|
|
2,634,147
|
|
|
—
|
|
|
—
|
|
|
2,634,147
|
|
|||||
Accrued interest receivable
|
|
3,294
|
|
|
3,294
|
|
|
—
|
|
|
3,294
|
|
|
—
|
|
|||||
Cash surrender value of bank-owned life insurance policies
|
|
75,863
|
|
|
75,863
|
|
|
—
|
|
|
75,863
|
|
|
—
|
|
|||||
Derivative assets
|
|
6,850
|
|
|
6,850
|
|
|
—
|
|
|
6,791
|
|
|
59
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-maturity deposits
|
|
$
|
1,763,116
|
|
|
$
|
1,751,481
|
|
|
$
|
—
|
|
|
$
|
1,751,481
|
|
|
$
|
—
|
|
Time deposits
|
|
932,635
|
|
|
932,886
|
|
|
—
|
|
|
932,886
|
|
|
—
|
|
|||||
Other short-term borrowings
|
|
44,832
|
|
|
44,831
|
|
|
—
|
|
|
44,831
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances
|
|
426,564
|
|
|
425,989
|
|
|
—
|
|
|
425,989
|
|
|
—
|
|
|||||
Subordinated borrowings
|
|
59,920
|
|
|
59,920
|
|
|
—
|
|
|
59,920
|
|
|
—
|
|
|||||
Derivative liabilities
|
|
(8,186
|
)
|
|
(8,186
|
)
|
|
—
|
|
|
(8,102
|
)
|
|
(84
|
)
|
|
|
December 31, 2018
|
||||||||||||||||||
(in thousands)
|
|
Carrying
Amount |
|
Fair
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
98,754
|
|
|
$
|
98,754
|
|
|
$
|
98,754
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Securities available for sale
|
|
725,837
|
|
|
725,837
|
|
|
—
|
|
|
725,837
|
|
|
—
|
|
|||||
FHLB bank stock
|
|
35,659
|
|
|
35,659
|
|
|
—
|
|
|
35,659
|
|
|
—
|
|
|||||
Net loans
|
|
2,476,361
|
|
|
2,415,863
|
|
|
—
|
|
|
—
|
|
|
2,415,863
|
|
|||||
Accrued interest receivable
|
|
3,533
|
|
|
3,533
|
|
|
—
|
|
|
3,533
|
|
|
—
|
|
|||||
Cash surrender value of bank-owned life insurance policies
|
|
73,810
|
|
|
73,810
|
|
|
—
|
|
|
73,810
|
|
|
—
|
|
|||||
Derivative assets
|
|
2,164
|
|
|
2,164
|
|
|
—
|
|
|
2,156
|
|
|
8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-maturity deposits
|
|
$
|
1,550,445
|
|
|
$
|
1,476,673
|
|
|
$
|
—
|
|
|
$
|
1,476,673
|
|
|
$
|
—
|
|
Time deposits
|
|
932,793
|
|
|
927,577
|
|
|
—
|
|
|
927,577
|
|
|
—
|
|
|||||
Other short-term borrowings
|
|
36,211
|
|
|
36,171
|
|
|
—
|
|
|
36,171
|
|
|
—
|
|
|||||
Federal Home Loan Bank advances
|
|
644,611
|
|
|
643,065
|
|
|
—
|
|
|
643,065
|
|
|
—
|
|
|||||
Subordinated borrowings
|
|
37,973
|
|
|
37,973
|
|
|
—
|
|
|
37,973
|
|
|
—
|
|
|||||
Junior subordinated borrowings
|
|
5,000
|
|
|
3,923
|
|
|
—
|
|
|
3,923
|
|
|
—
|
|
|||||
Derivative liabilities
|
|
(1,353
|
)
|
|
(1,353
|
)
|
|
—
|
|
|
—
|
|
|
(1,353
|
)
|
|
|
Twelve Months Ended December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Major Products/Service Lines
|
|
|
|
|
||||
Trust management fees
|
|
$
|
11,098
|
|
|
$
|
11,017
|
|
Financial services fees
|
|
966
|
|
|
968
|
|
||
Interchange fees
|
|
4,899
|
|
|
4,434
|
|
||
Customer deposit fees
|
|
4,281
|
|
|
3,800
|
|
||
Other customer service fees
|
|
946
|
|
|
1,304
|
|
||
Total
|
|
$
|
22,190
|
|
|
$
|
21,523
|
|
|
|
Twelve Months Ended December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Timing of Revenue Recognition
|
|
|
|
|
||||
Products and services transferred at a point in time
|
|
$
|
10,748
|
|
|
$
|
9,766
|
|
Products and services transferred over time
|
|
11,442
|
|
|
11,757
|
|
||
Total
|
|
$
|
22,190
|
|
|
$
|
21,523
|
|
(in thousands)
|
|
Balance at December 31, 2019
|
|
Balance at December 31, 2018
|
||||
Balances from contracts with customers only:
|
|
|
|
|
||||
Other Assets
|
|
$
|
1,703
|
|
|
$
|
2,866
|
|
Other Liabilities
|
|
3,114
|
|
|
4,923
|
|
•
|
Package of practical expedients:
|
◦
|
Lease classification as an operating lease under the prior standards is grandfathered.
|
◦
|
Re-evaluation of embedded leases evaluated under the prior standards is not required.
|
◦
|
No re-assessment of previously recorded initial direct lease costs.
|
•
|
Election to exclude short-term leases (i.e., leases with initial terms of twelve months or less), from capitalization on the consolidated balance sheets.
|
(in thousands)
|
|
|
|
December 31, 2019
|
||
Lease Right-of-Use Assets
|
|
Classification
|
|
|
||
Operating lease right-of-use assets
|
|
Other assets
|
|
$
|
9,623
|
|
|
|
|
|
|
||
Lease Liabilities
|
|
|
|
|
||
Operating lease liabilities
|
|
Other liabilities
|
|
9,651
|
|
|
|
December 31, 2019
|
|
Weighted-average remaining lease term
|
|
|
|
Operating leases
|
|
8.96
|
|
|
|
|
|
Weighted-average discount rate
|
|
|
|
Operating leases
|
|
3.27
|
%
|
(in thousands)
|
|
Twelve Months Ended December 31, 2019
|
||
Lease Costs
|
|
|
||
Operating lease cost
|
|
$
|
698
|
|
Variable lease cost
|
|
711
|
|
|
Total lease cost
|
|
$
|
1,409
|
|
(in thousands)
|
|
Operating Leases
|
||
Twelve Months Ended:
|
|
|
||
December 31, 2020
|
|
$
|
1,194
|
|
December 31, 2021
|
|
1,199
|
|
|
December 31, 2022
|
|
1,222
|
|
|
December 31, 2023
|
|
1,219
|
|
|
December 31, 2024
|
|
1,190
|
|
|
Thereafter
|
|
5,984
|
|
|
Total future minimum lease payments
|
|
12,008
|
|
|
Amounts representing interest
|
|
(2,357
|
)
|
|
Present value of net future minimum lease payments
|
|
$
|
9,651
|
|
|
|
December 31,
|
||||||
(in thousands)
|
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
||||
Cash due from Bar Harbor Bank and Trust
|
|
$
|
29,223
|
|
|
$
|
9,993
|
|
Investment in subsidiaries
|
|
427,536
|
|
|
398,821
|
|
||
Premises and equipment
|
|
687
|
|
|
687
|
|
||
Other assets
|
|
4,586
|
|
|
3,416
|
|
||
Total assets
|
|
$
|
462,032
|
|
|
$
|
412,917
|
|
|
|
|
|
|
||||
Liabilities and Shareholders Equity
|
|
|
|
|
||||
Subordinated notes
|
|
$
|
59,920
|
|
|
$
|
37,973
|
|
Accrued expenses
|
|
5,705
|
|
|
4,365
|
|
||
Shareholders equity
|
|
396,407
|
|
|
370,579
|
|
||
Total Liabilities and shareholders equity
|
|
$
|
462,032
|
|
|
$
|
412,917
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Income:
|
|
|
|
|
|
|
||||||
Dividends from subsidiaries
|
|
$
|
21,734
|
|
|
$
|
23,705
|
|
|
$
|
13,907
|
|
Other
|
|
337
|
|
|
31
|
|
|
25
|
|
|||
Total income
|
|
22,071
|
|
|
23,736
|
|
|
13,932
|
|
|||
Interest expense
|
|
2,188
|
|
|
2,121
|
|
|
1,857
|
|
|||
Non-interest expense
|
|
3,208
|
|
|
3,147
|
|
|
2,979
|
|
|||
Total expense
|
|
5,396
|
|
|
5,268
|
|
|
4,836
|
|
|||
Income before taxes and equity in undistributed income of subsidiaries
|
|
16,675
|
|
|
18,468
|
|
|
9,096
|
|
|||
Income tax benefit
|
|
(1,100
|
)
|
|
(1,136
|
)
|
|
(1,210
|
)
|
|||
Income before equity in undistributed income of subsidiaries
|
|
17,775
|
|
|
19,604
|
|
|
10,306
|
|
|||
Equity in undistributed income of subsidiaries
|
|
4,845
|
|
|
13,333
|
|
|
15,687
|
|
|||
Net income
|
|
$
|
22,620
|
|
|
$
|
32,937
|
|
|
$
|
25,993
|
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
22,620
|
|
|
$
|
32,937
|
|
|
$
|
25,993
|
|
Adjustments to reconcile net income to net cash (used) provided by operating activities:
|
|
|
|
|
|
|
||||||
Equity in undistributed income of subsidiaries
|
|
(4,845
|
)
|
|
(13,333
|
)
|
|
(15,687
|
)
|
|||
Other, net
|
|
(1,040
|
)
|
|
(1,457
|
)
|
|
(1,364
|
)
|
|||
Net cash provided by operating activities
|
|
16,735
|
|
|
18,147
|
|
|
8,942
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
||||||
Acquisitions, net of cash paid
|
|
—
|
|
|
—
|
|
|
1,939
|
|
|||
Purchase of securities
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|||
Other, net
|
|
(8,000
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash (used in) provided by investing activities
|
|
(8,000
|
)
|
|
(7
|
)
|
|
1,939
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
||||||
Proceeds from issuance of subordinated debt
|
|
40,000
|
|
|
—
|
|
|
—
|
|
|||
Repayment of subordinated debt
|
|
(17,000
|
)
|
|
—
|
|
|
—
|
|
|||
Net proceeds from common stock
|
|
883
|
|
|
951
|
|
|
1,052
|
|
|||
Net proceeds from reissuance of treasury stock
|
|
(22
|
)
|
|
686
|
|
|
686
|
|
|||
Common stock cash dividends paid
|
|
(13,366
|
)
|
|
(12,184
|
)
|
|
(11,505
|
)
|
|||
Other, net
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||
Net cash provided by (used in) financing activities
|
|
10,495
|
|
|
(10,547
|
)
|
|
(9,783
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents
|
|
19,230
|
|
|
7,593
|
|
|
1,098
|
|
|||
Cash and cash equivalents at beginning of year
|
|
9,993
|
|
|
2,400
|
|
|
1,302
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
29,223
|
|
|
$
|
9,993
|
|
|
$
|
2,400
|
|
|
|
2019
|
||||||||||||||
(in thousands, except per share data)
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
Interest and dividend income
|
|
$
|
34,117
|
|
|
$
|
34,262
|
|
|
$
|
33,785
|
|
|
$
|
33,227
|
|
Interest expense
|
|
10,013
|
|
|
11,817
|
|
|
12,289
|
|
|
11,462
|
|
||||
Net interest income
|
|
24,104
|
|
|
22,445
|
|
|
21,496
|
|
|
21,765
|
|
||||
Non-interest income
|
|
7,806
|
|
|
7,643
|
|
|
7,453
|
|
|
6,167
|
|
||||
Provision for loan losses
|
|
538
|
|
|
893
|
|
|
562
|
|
|
324
|
|
||||
Non-interest expense
|
|
26,803
|
|
|
23,400
|
|
|
20,906
|
|
|
18,624
|
|
||||
Income before income taxes
|
|
4,569
|
|
|
5,795
|
|
|
7,481
|
|
|
8,984
|
|
||||
Income tax expense
|
|
362
|
|
|
780
|
|
|
1,364
|
|
|
1,703
|
|
||||
Net income
|
|
$
|
4,207
|
|
|
$
|
5,015
|
|
|
$
|
6,117
|
|
|
$
|
7,281
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
$
|
0.39
|
|
|
$
|
0.47
|
|
Diluted
|
|
$
|
0.27
|
|
|
$
|
0.32
|
|
|
$
|
0.39
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
15,554
|
|
|
15,547
|
|
|
15,538
|
|
|
15,523
|
|
||||
Diluted
|
|
15,602
|
|
|
15,581
|
|
|
15,586
|
|
|
15,587
|
|
|
|
2018
|
||||||||||||||
(in thousands, except per share data)
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||
Interest and dividend income
|
|
$
|
32,772
|
|
|
$
|
32,184
|
|
|
$
|
31,718
|
|
|
$
|
30,777
|
|
Interest expense
|
|
10,508
|
|
|
9,715
|
|
|
8,726
|
|
|
7,619
|
|
||||
Net interest income
|
|
22,264
|
|
|
22,469
|
|
|
22,992
|
|
|
23,158
|
|
||||
Non-interest income
|
|
7,450
|
|
|
7,126
|
|
|
7,121
|
|
|
6,238
|
|
||||
Provision for loan losses
|
|
572
|
|
|
643
|
|
|
770
|
|
|
795
|
|
||||
Non-interest expense
|
|
20,096
|
|
|
17,906
|
|
|
18,685
|
|
|
18,852
|
|
||||
Income before income taxes
|
|
9,046
|
|
|
11,046
|
|
|
10,658
|
|
|
9,749
|
|
||||
Income tax expense
|
|
1,426
|
|
|
2,076
|
|
|
2,123
|
|
|
1,937
|
|
||||
Net income
|
|
$
|
7,620
|
|
|
$
|
8,970
|
|
|
$
|
8,535
|
|
|
$
|
7,812
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.49
|
|
|
$
|
0.58
|
|
|
$
|
0.55
|
|
|
$
|
0.51
|
|
Diluted
|
|
$
|
0.49
|
|
|
$
|
0.58
|
|
|
$
|
0.55
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
15,516
|
|
|
15,503
|
|
|
15,482
|
|
|
15,448
|
|
||||
Diluted
|
|
15,574
|
|
|
15,580
|
|
|
15,571
|
|
|
15,553
|
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
Exhibit No.
|
|
Description
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
4.6*
|
|
|
|
|
|
4.7
|
|
|
|
|
|
10.1†
|
|
|
|
|
|
10.2†
|
|
|
|
|
|
10.3†
|
|
|
|
|
|
10.4†
|
|
|
|
|
|
10.5†
|
|
|
|
|
|
10.6†
|
|
|
|
|
|
10.7†
|
|
|
|
|
|
10.8†
|
|
|
|
|
|
10.9†
|
|
|
|
|
|
10.10†
|
|
|
|
|
|
10.11
|
|
|
|
|
|
10.12*
|
|
|
|
|
|
10.13
|
|
|
|
|
|
10.14*
|
|
|
|
|
|
21.1
|
|
|
|
|
|
23.1
|
|
|
|
|
|
31.1
|
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31.2
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32.1
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32.2
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Exhibit No.
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Description
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101
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The following financial information from the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 is formatted in XBRL: (i) Consolidated Condensed Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) the Condensed Consolidated Statements of Changes in Shareholders’ Equity, (iv) Consolidated Statements of Cash Flows and (v) Notes to the Consolidated Condensed Financial Statements
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/s/ David B. Woodside
David B. Woodside, Chairman, Board of Directors
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/s/ Curtis C. Simard
Curtis C. Simard, Director
President & Chief Executive Officer
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/s/ Daina H. Belair
Daina H. Belair, Director |
/s/ Josephine Iannelli
Josephine Iannelli Executive Vice President and Chief Financial Officer |
/s/ Matthew L. Caras
Matthew Caras, Director |
/s/ Brendan O'Halloran
Brendan O'Halloran, Director
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/s/ David M. Colter
David M. Colter, Director |
/s/ Kenneth E. Smith
Kenneth E. Smith, Director |
/s/ Steven H. Dimick
Steven H. Dimick, Director |
/s/ Stephen R. Theroux
Stephen R. Theroux, Director |
/s/ Martha Tod Dudman
Martha Tod Dudman, Director |
/s/ Scott G. Toothaker
Scott G. Toothaker, Director |
/s/ Lauri E. Fernald
Lauri E. Fernald, Director |
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