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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Park National Corp | AMEX:PRK | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.39 | 0.29% | 136.79 | 138.60 | 136.145 | 138.60 | 24,435 | 21:15:08 |
Commission File Number
|
1-13006
|
Park National Corporation
|
(Exact name of registrant as specified in its charter)
|
Ohio
|
|
31-1179518
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
50 North Third Street, Newark, Ohio 43055
|
(Address of principal executive offices) (Zip Code)
|
(740) 349-8451
|
(Registrant’s telephone number, including area code)
|
N/A
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer
|
ý
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
(Do not check if a smaller reporting company)
|
Emerging growth company
|
¨
|
|
Page
|
PART I. FINANCIAL INFORMATION
|
|
|
|
Item 1. Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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June 30,
2017 |
|
December 31, 2016
|
||||
Assets:
|
|
|
|
|
|
||
Cash and due from banks
|
$
|
128,420
|
|
|
$
|
122,811
|
|
Money market instruments
|
282,659
|
|
|
23,635
|
|
||
Cash and cash equivalents
|
411,079
|
|
|
146,446
|
|
||
Investment securities:
|
|
|
|
|
|
||
Securities available-for-sale, at fair value (amortized cost of $1,194,533 and $1,262,761 at June 30, 2017 and December 31, 2016, respectively)
|
1,196,115
|
|
|
1,258,139
|
|
||
Securities held-to-maturity, at amortized cost (fair value of $324,827 and $256,672 at June 30, 2017 and December 31, 2016, respectively)
|
322,008
|
|
|
259,833
|
|
||
Other investment securities
|
61,811
|
|
|
61,811
|
|
||
Total investment securities
|
1,579,934
|
|
|
1,579,783
|
|
||
|
|
|
|
||||
Loans
|
5,365,437
|
|
|
5,271,857
|
|
||
Allowance for loan losses
|
(53,822
|
)
|
|
(50,624
|
)
|
||
Net loans
|
5,311,615
|
|
|
5,221,233
|
|
||
Bank owned life insurance
|
187,644
|
|
|
185,234
|
|
||
Prepaid assets
|
94,692
|
|
|
88,874
|
|
||
Goodwill
|
72,334
|
|
|
72,334
|
|
||
Premises and equipment, net
|
56,108
|
|
|
57,971
|
|
||
Affordable housing tax credit investments
|
56,219
|
|
|
52,947
|
|
||
Other real estate owned
|
14,881
|
|
|
13,926
|
|
||
Accrued interest receivable
|
19,274
|
|
|
18,822
|
|
||
Mortgage loan servicing rights
|
9,476
|
|
|
9,266
|
|
||
Other
|
18,836
|
|
|
20,750
|
|
||
Total assets
|
$
|
7,832,092
|
|
|
$
|
7,467,586
|
|
|
|
|
|
||||
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
||
Noninterest bearing
|
$
|
1,545,279
|
|
|
$
|
1,523,417
|
|
Interest bearing
|
4,416,297
|
|
|
3,998,539
|
|
||
Total deposits
|
5,961,576
|
|
|
5,521,956
|
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||
Short-term borrowings
|
183,788
|
|
|
394,795
|
|
||
Long-term debt
|
847,388
|
|
|
694,281
|
|
||
Subordinated notes
|
15,000
|
|
|
45,000
|
|
||
Unfunded commitments in affordable housing tax credit investments
|
21,282
|
|
|
14,282
|
|
||
Accrued interest payable
|
2,394
|
|
|
2,151
|
|
||
Other
|
48,416
|
|
|
52,881
|
|
||
Total liabilities
|
$
|
7,079,844
|
|
|
$
|
6,725,346
|
|
|
|
|
|
||||
|
|
|
|
|
|
||
Shareholders' equity:
|
|
|
|
|
|
||
Preferred shares (200,000 shares authorized; 0 shares issued)
|
$
|
—
|
|
|
$
|
—
|
|
Common shares (No par value; 20,000,000 shares authorized; 16,150,788 shares issued at June 30, 2017 and 16,150,807 shares issued at December 31, 2016)
|
306,418
|
|
|
305,826
|
|
||
Retained earnings
|
545,794
|
|
|
535,631
|
|
||
Treasury shares (853,708 shares at June 30, 2017 and 810,089 at December 31, 2016)
|
(86,252
|
)
|
|
(81,472
|
)
|
||
Accumulated other comprehensive loss, net of taxes
|
(13,712
|
)
|
|
(17,745
|
)
|
||
Total shareholders' equity
|
752,248
|
|
|
742,240
|
|
||
Total liabilities and shareholders’ equity
|
$
|
7,832,092
|
|
|
$
|
7,467,586
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
61,222
|
|
|
$
|
58,401
|
|
|
$
|
121,130
|
|
|
$
|
118,453
|
|
|
|
|
|
|
|
|
|
||||||||
Interest and dividends on:
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of U.S. Government, its agencies and other securities
|
6,892
|
|
|
7,770
|
|
|
14,030
|
|
|
16,379
|
|
||||
Obligations of states and political subdivisions
|
1,664
|
|
|
591
|
|
|
3,124
|
|
|
964
|
|
||||
Other interest income
|
698
|
|
|
249
|
|
|
947
|
|
|
523
|
|
||||
Total interest and dividend income
|
70,476
|
|
|
67,011
|
|
|
139,231
|
|
|
136,319
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Interest on deposits:
|
|
|
|
|
|
|
|
|
|
||||||
Demand and savings deposits
|
2,291
|
|
|
933
|
|
|
3,905
|
|
|
1,757
|
|
||||
Time deposits
|
2,457
|
|
|
2,389
|
|
|
4,618
|
|
|
4,776
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest on borrowings:
|
|
|
|
|
|
|
|
|
|
||||||
Short-term borrowings
|
184
|
|
|
82
|
|
|
419
|
|
|
246
|
|
||||
Long-term debt
|
5,766
|
|
|
6,122
|
|
|
11,559
|
|
|
12,236
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total interest expense
|
10,698
|
|
|
9,526
|
|
|
20,501
|
|
|
19,015
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
59,778
|
|
|
57,485
|
|
|
118,730
|
|
|
117,304
|
|
||||
|
|
|
|
|
|
|
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||||||||
Provision for loan losses
|
4,581
|
|
|
2,637
|
|
|
5,457
|
|
|
3,547
|
|
||||
Net interest income after provision for loan losses
|
55,197
|
|
|
54,848
|
|
|
113,273
|
|
|
113,757
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other income:
|
|
|
|
|
|
|
|
|
|
||||||
Income from fiduciary activities
|
6,025
|
|
|
5,438
|
|
|
11,539
|
|
|
10,551
|
|
||||
Service charges on deposit accounts
|
3,156
|
|
|
3,575
|
|
|
6,295
|
|
|
6,998
|
|
||||
Other service income
|
3,447
|
|
|
3,351
|
|
|
6,251
|
|
|
5,925
|
|
||||
Checkcard fee income
|
4,040
|
|
|
3,868
|
|
|
7,801
|
|
|
7,400
|
|
||||
Bank owned life insurance income
|
1,114
|
|
|
1,049
|
|
|
2,217
|
|
|
2,246
|
|
||||
ATM fees
|
561
|
|
|
570
|
|
|
1,103
|
|
|
1,153
|
|
||||
OREO valuation adjustments
|
(272
|
)
|
|
(221
|
)
|
|
(345
|
)
|
|
(339
|
)
|
||||
Gain on sale of OREO, net
|
53
|
|
|
162
|
|
|
153
|
|
|
296
|
|
||||
Miscellaneous
|
1,127
|
|
|
944
|
|
|
1,744
|
|
|
1,895
|
|
||||
Total other income
|
19,251
|
|
|
18,736
|
|
|
36,758
|
|
|
36,125
|
|
||||
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Other expense:
|
|
|
|
|
|
|
|
|
|
||||||
Salaries
|
$
|
23,001
|
|
|
$
|
21,256
|
|
|
$
|
45,718
|
|
|
$
|
42,810
|
|
Employee benefits
|
4,919
|
|
|
4,894
|
|
|
10,100
|
|
|
9,667
|
|
||||
Occupancy expense
|
2,565
|
|
|
2,639
|
|
|
5,200
|
|
|
5,187
|
|
||||
Furniture and equipment expense
|
3,640
|
|
|
3,416
|
|
|
7,258
|
|
|
6,859
|
|
||||
Data processing fees
|
1,676
|
|
|
1,373
|
|
|
3,641
|
|
|
2,590
|
|
||||
Professional fees and services
|
6,018
|
|
|
5,401
|
|
|
10,847
|
|
|
12,068
|
|
||||
Marketing
|
1,084
|
|
|
1,073
|
|
|
2,140
|
|
|
2,184
|
|
||||
Insurance
|
1,517
|
|
|
1,438
|
|
|
3,087
|
|
|
2,849
|
|
||||
Communication
|
1,155
|
|
|
1,353
|
|
|
2,488
|
|
|
2,574
|
|
||||
State tax expense
|
943
|
|
|
798
|
|
|
2,006
|
|
|
1,724
|
|
||||
Miscellaneous
|
1,588
|
|
|
1,665
|
|
|
3,083
|
|
|
6,693
|
|
||||
Total other expense
|
48,106
|
|
|
45,306
|
|
|
95,568
|
|
|
95,205
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
26,342
|
|
|
28,278
|
|
|
54,463
|
|
|
54,677
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Federal income taxes
|
7,310
|
|
|
8,280
|
|
|
15,164
|
|
|
15,993
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
19,032
|
|
|
$
|
19,998
|
|
|
$
|
39,299
|
|
|
$
|
38,684
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per Common Share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.24
|
|
|
$
|
1.30
|
|
|
$
|
2.57
|
|
|
$
|
2.52
|
|
Diluted
|
$
|
1.24
|
|
|
$
|
1.30
|
|
|
$
|
2.55
|
|
|
$
|
2.51
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
|
|
||||||
Basic
|
15,297,085
|
|
|
15,330,802
|
|
|
15,304,572
|
|
|
15,330,808
|
|
||||
Diluted
|
15,398,865
|
|
|
15,399,283
|
|
|
15,415,765
|
|
|
15,402,896
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared
|
$
|
0.94
|
|
|
$
|
0.94
|
|
|
$
|
1.88
|
|
|
$
|
1.88
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
$
|
19,032
|
|
|
$
|
19,998
|
|
|
$
|
39,299
|
|
|
$
|
38,684
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrecognized net holding gain on securities available-for-sale, net of federal income taxes of $1,621 and $2,343 for the three months ended June 30, 2017 and 2016, and $2,171 and $8,633 for the six months ended June 30, 2017 and 2016, respectively
|
3,011
|
|
|
4,352
|
|
|
4,033
|
|
|
16,032
|
|
||||
Other comprehensive income
|
$
|
3,011
|
|
|
$
|
4,352
|
|
|
$
|
4,033
|
|
|
$
|
16,032
|
|
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
22,043
|
|
|
$
|
24,350
|
|
|
$
|
43,332
|
|
|
$
|
54,716
|
|
|
|
Preferred
Shares
|
|
Common
Shares
|
|
Retained
Earnings
|
|
Treasury
Shares
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
||||||||||
Balance at January 1, 2016
|
|
$
|
—
|
|
|
$
|
303,966
|
|
|
$
|
507,505
|
|
|
$
|
(82,473
|
)
|
|
$
|
(15,643
|
)
|
Net income
|
|
|
|
|
|
|
|
38,684
|
|
|
|
|
|
|
|
|||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
16,032
|
|
||||||||
Dividends on common shares at $1.88 per share
|
|
|
|
|
|
|
|
(28,974
|
)
|
|
|
|
|
|
|
|||||
Cash payment for fractional common shares in dividend reinvestment plan
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|||||
Share-based compensation expense
|
|
|
|
792
|
|
|
|
|
|
|
|
|||||||||
Balance at June 30, 2016
|
|
$
|
—
|
|
|
$
|
304,756
|
|
|
$
|
517,215
|
|
|
$
|
(82,473
|
)
|
|
$
|
389
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at January 1, 2017
|
|
$
|
—
|
|
|
$
|
305,826
|
|
|
$
|
535,631
|
|
|
$
|
(81,472
|
)
|
|
$
|
(17,745
|
)
|
Net income
|
|
|
|
|
|
|
|
39,299
|
|
|
|
|
|
|
|
|||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,033
|
|
|||||
Dividends on common shares at $1.88 per share
|
|
|
|
|
|
|
|
(28,939
|
)
|
|
|
|
|
|
|
|||||
Cash payment for fractional common shares in dividend reinvestment plan
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|||||
Issuance of 9,674 common shares under share-based compensation awards, net of 3,293 common shares withheld to pay employee income taxes
|
|
|
|
(795
|
)
|
|
(197
|
)
|
|
645
|
|
|
|
|||||||
Repurchase of 50,000 common shares to be held as treasury shares
|
|
|
|
|
|
|
|
(5,425
|
)
|
|
|
|||||||||
Share-based compensation expense
|
|
|
|
1,389
|
|
|
|
|
|
|
|
|||||||||
Balance at June 30, 2017
|
|
$
|
—
|
|
|
$
|
306,418
|
|
|
$
|
545,794
|
|
|
$
|
(86,252
|
)
|
|
$
|
(13,712
|
)
|
|
Six Months Ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Operating activities:
|
|
|
|
|
|
||
Net income
|
$
|
39,299
|
|
|
$
|
38,684
|
|
|
|
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Provision for loan losses
|
5,457
|
|
|
3,547
|
|
||
Amortization of loan fees and costs, net
|
4,604
|
|
|
3,504
|
|
||
Provision for depreciation
|
4,284
|
|
|
4,178
|
|
||
Amortization of investment securities, net
|
597
|
|
|
38
|
|
||
Amortization of prepayment penalty on long-term debt
|
3,107
|
|
|
3,069
|
|
||
Loan originations to be sold in secondary market
|
(106,685
|
)
|
|
(110,666
|
)
|
||
Proceeds from sale of loans in secondary market
|
107,046
|
|
|
108,009
|
|
||
Gain on sale of loans in secondary market
|
(2,063
|
)
|
|
(2,162
|
)
|
||
Share-based compensation expense
|
1,389
|
|
|
792
|
|
||
OREO valuation adjustments
|
345
|
|
|
339
|
|
||
Gain on sale of OREO, net
|
(153
|
)
|
|
(296
|
)
|
||
Bank owned life insurance income
|
(2,217
|
)
|
|
(2,246
|
)
|
||
|
|
|
|
||||
Changes in assets and liabilities:
|
|
|
|
|
|
||
Increase in other assets
|
(10,610
|
)
|
|
(7,074
|
)
|
||
Decrease in other liabilities
|
(4,394
|
)
|
|
(2,543
|
)
|
||
Net cash provided by operating activities
|
$
|
40,006
|
|
|
$
|
37,173
|
|
|
|
|
|
||||
Investing activities:
|
|
|
|
|
|
||
Proceeds from calls and maturities of:
|
|
|
|
|
|
||
Available-for-sale securities
|
$
|
83,308
|
|
|
$
|
570,242
|
|
Held-to-maturity securities
|
9,371
|
|
|
11,155
|
|
||
Purchases of:
|
|
|
|
|
|
||
Available-for-sale securities
|
(14,965
|
)
|
|
(414,700
|
)
|
||
Held-to-maturity securities
|
(72,258
|
)
|
|
(41,566
|
)
|
||
Net loan originations, portfolio loans
|
(94,207
|
)
|
|
(55,675
|
)
|
||
Investments in qualified affordable housing projects
|
—
|
|
|
(4,316
|
)
|
||
Proceeds from the sale of OREO
|
1,688
|
|
|
3,092
|
|
||
Life insurance death benefits
|
74
|
|
|
1,050
|
|
||
Purchases of premises and equipment, net
|
(2,474
|
)
|
|
(3,929
|
)
|
||
Net cash (used in) provided by investing activities
|
$
|
(89,463
|
)
|
|
$
|
65,353
|
|
|
|
|
|
||||
|
|
|
|
PARK NATIONAL CORPORATION AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows (Unaudited) (Continued)
(in thousands)
|
|||||||
|
Six Months Ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Financing activities:
|
|
|
|
|
|
||
Net increase in deposits
|
$
|
439,620
|
|
|
$
|
276,237
|
|
Net decrease in short-term borrowings
|
(211,007
|
)
|
|
(183,511
|
)
|
||
Proceeds from issuance of long-term debt
|
150,000
|
|
|
—
|
|
||
Repayment of subordinated notes
|
(30,000
|
)
|
|
—
|
|
||
Value of common shares withheld to pay employee income taxes
|
(347
|
)
|
|
—
|
|
||
Repurchase of common shares to be held as treasury shares
|
(5,425
|
)
|
|
—
|
|
||
Cash dividends paid
|
(28,751
|
)
|
|
(28,822
|
)
|
||
Net cash provided by financing activities
|
$
|
314,090
|
|
|
$
|
63,904
|
|
|
|
|
|
||||
Increase in cash and cash equivalents
|
264,633
|
|
|
166,430
|
|
||
|
|
|
|
||||
Cash and cash equivalents at beginning of year
|
146,446
|
|
|
149,459
|
|
||
|
|
|
|
||||
Cash and cash equivalents at end of period
|
$
|
411,079
|
|
|
$
|
315,889
|
|
|
|
|
|
||||
Supplemental disclosures of cash flow information:
|
|
|
|
|
|
||
|
|
|
|
||||
Cash paid for:
|
|
|
|
|
|
||
Interest
|
$
|
20,258
|
|
|
$
|
19,017
|
|
|
|
|
|
||||
Income taxes
|
$
|
11,220
|
|
|
$
|
8,980
|
|
|
|
|
|
||||
Non-cash items:
|
|
|
|
||||
Loans transferred to OREO
|
$
|
2,891
|
|
|
$
|
2,147
|
|
|
|
|
|
||||
Securities purchase commitments
|
$
|
—
|
|
|
$
|
4,631
|
|
|
|
|
|
||||
New commitments in affordable housing tax credit investments
|
$
|
7,000
|
|
|
$
|
—
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
||||||||||||||||||||
(In thousands)
|
Loan
Balance
|
|
Accrued
Interest
Receivable
|
|
Recorded
Investment
|
|
|
Loan
Balance
|
|
Accrued
Interest
Receivable
|
|
Recorded
Investment
|
||||||||||||
Commercial, financial and agricultural *
|
$
|
1,006,479
|
|
|
$
|
3,837
|
|
|
$
|
1,010,316
|
|
|
|
$
|
994,619
|
|
|
$
|
3,558
|
|
|
$
|
998,177
|
|
Commercial real estate *
|
1,191,881
|
|
|
3,960
|
|
|
1,195,841
|
|
|
|
1,155,703
|
|
|
4,161
|
|
|
1,159,864
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
118,605
|
|
|
367
|
|
|
118,972
|
|
|
|
135,343
|
|
|
398
|
|
|
135,741
|
|
||||||
Mortgage
|
47,028
|
|
|
103
|
|
|
47,131
|
|
|
|
48,699
|
|
|
106
|
|
|
48,805
|
|
||||||
Installment
|
4,766
|
|
|
15
|
|
|
4,781
|
|
|
|
4,903
|
|
|
17
|
|
|
4,920
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
397,762
|
|
|
949
|
|
|
398,711
|
|
|
|
406,687
|
|
|
940
|
|
|
407,627
|
|
||||||
Mortgage
|
1,150,606
|
|
|
1,219
|
|
|
1,151,825
|
|
|
|
1,169,495
|
|
|
1,459
|
|
|
1,170,954
|
|
||||||
HELOC
|
209,251
|
|
|
873
|
|
|
210,124
|
|
|
|
212,441
|
|
|
853
|
|
|
213,294
|
|
||||||
Installment
|
18,948
|
|
|
52
|
|
|
19,000
|
|
|
|
19,874
|
|
|
67
|
|
|
19,941
|
|
||||||
Consumer
|
1,216,764
|
|
|
3,190
|
|
|
1,219,954
|
|
|
|
1,120,850
|
|
|
3,385
|
|
|
1,124,235
|
|
||||||
Leases
|
3,347
|
|
|
30
|
|
|
3,377
|
|
|
|
3,243
|
|
|
29
|
|
|
3,272
|
|
||||||
Total loans
|
$
|
5,365,437
|
|
|
$
|
14,595
|
|
|
$
|
5,380,032
|
|
|
|
$
|
5,271,857
|
|
|
$
|
14,973
|
|
|
$
|
5,286,830
|
|
|
|
June 30, 2017
|
||||||||||||||
(In thousands)
|
|
Nonaccrual
Loans
|
|
Accruing Troubled Debt Restructurings
|
|
Loans Past Due
90 Days or More
and Accruing
|
|
Total
Nonperforming
Loans
|
||||||||
Commercial, financial and agricultural
|
|
$
|
28,179
|
|
|
$
|
325
|
|
|
$
|
—
|
|
|
$
|
28,504
|
|
Commercial real estate
|
|
16,459
|
|
|
5,331
|
|
|
—
|
|
|
21,790
|
|
||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
|
1,269
|
|
|
367
|
|
|
—
|
|
|
1,636
|
|
||||
Mortgage
|
|
8
|
|
|
101
|
|
|
—
|
|
|
109
|
|
||||
Installment
|
|
31
|
|
|
92
|
|
|
29
|
|
|
152
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
|
21,149
|
|
|
86
|
|
|
—
|
|
|
21,235
|
|
||||
Mortgage
|
|
17,752
|
|
|
10,151
|
|
|
867
|
|
|
28,770
|
|
||||
HELOC
|
|
1,671
|
|
|
994
|
|
|
19
|
|
|
2,684
|
|
||||
Installment
|
|
587
|
|
|
539
|
|
|
—
|
|
|
1,126
|
|
||||
Consumer
|
|
3,273
|
|
|
736
|
|
|
1,032
|
|
|
5,041
|
|
||||
Total loans
|
|
$
|
90,378
|
|
|
$
|
18,722
|
|
|
$
|
1,947
|
|
|
$
|
111,047
|
|
|
|
December 31, 2016
|
||||||||||||||
(In thousands)
|
|
Nonaccrual
Loans
|
|
Accruing Troubled Debt Restructurings
|
|
Loans Past Due
90 Days or More
and Accruing
|
|
Total
Nonperforming
Loans
|
||||||||
Commercial, financial and agricultural
|
|
$
|
20,057
|
|
|
$
|
600
|
|
|
$
|
15
|
|
|
$
|
20,672
|
|
Commercial real estate
|
|
19,169
|
|
|
5,305
|
|
|
—
|
|
|
24,474
|
|
||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
|
1,833
|
|
|
393
|
|
|
—
|
|
|
2,226
|
|
||||
Mortgage
|
|
—
|
|
|
104
|
|
|
—
|
|
|
104
|
|
||||
Installment
|
|
61
|
|
|
95
|
|
|
12
|
|
|
168
|
|
||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
|
23,013
|
|
|
89
|
|
|
—
|
|
|
23,102
|
|
||||
Mortgage
|
|
18,313
|
|
|
9,612
|
|
|
887
|
|
|
28,812
|
|
||||
HELOC
|
|
1,783
|
|
|
673
|
|
|
25
|
|
|
2,481
|
|
||||
Installment
|
|
644
|
|
|
609
|
|
|
60
|
|
|
1,313
|
|
||||
Consumer
|
|
2,949
|
|
|
748
|
|
|
1,139
|
|
|
4,836
|
|
||||
Total loans
|
|
$
|
87,822
|
|
|
$
|
18,228
|
|
|
$
|
2,138
|
|
|
$
|
108,188
|
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
||||||||||||||||||||
(In thousands)
|
|
Nonaccrual and Accruing TDRs
|
|
Loans
Individually
Evaluated for
Impairment
|
|
Loans
Collectively
Evaluated for
Impairment
|
|
|
Nonaccrual and Accruing TDRs
|
|
Loans
Individually
Evaluated for
Impairment
|
|
Loans
Collectively
Evaluated for
Impairment
|
||||||||||||
Commercial, financial and agricultural
|
|
$
|
28,504
|
|
|
$
|
28,475
|
|
|
$
|
29
|
|
|
|
$
|
20,657
|
|
|
$
|
20,624
|
|
|
$
|
33
|
|
Commercial real estate
|
|
21,790
|
|
|
21,790
|
|
|
—
|
|
|
|
24,474
|
|
|
24,474
|
|
|
—
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
1,636
|
|
|
1,636
|
|
|
—
|
|
|
|
2,226
|
|
|
2,226
|
|
|
—
|
|
||||||
Mortgage
|
|
109
|
|
|
—
|
|
|
109
|
|
|
|
104
|
|
|
—
|
|
|
104
|
|
||||||
Installment
|
|
123
|
|
|
—
|
|
|
123
|
|
|
|
156
|
|
|
—
|
|
|
156
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
21,235
|
|
|
21,235
|
|
|
—
|
|
|
|
23,102
|
|
|
23,102
|
|
|
—
|
|
||||||
Mortgage
|
|
27,903
|
|
|
—
|
|
|
27,903
|
|
|
|
27,925
|
|
|
—
|
|
|
27,925
|
|
||||||
HELOC
|
|
2,665
|
|
|
—
|
|
|
2,665
|
|
|
|
2,456
|
|
|
—
|
|
|
2,456
|
|
||||||
Installment
|
|
1,126
|
|
|
—
|
|
|
1,126
|
|
|
|
1,253
|
|
|
—
|
|
|
1,253
|
|
||||||
Consumer
|
|
4,009
|
|
|
8
|
|
|
4,001
|
|
|
|
3,697
|
|
|
—
|
|
|
3,697
|
|
||||||
Total loans
|
|
$
|
109,100
|
|
|
$
|
73,144
|
|
|
$
|
35,956
|
|
|
|
$
|
106,050
|
|
|
$
|
70,426
|
|
|
$
|
35,624
|
|
|
|
June 30, 2017
|
|
|
December 31, 2016
|
||||||||||||||||||||
(In thousands)
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Allowance
for Loan
Losses
Allocated
|
|
|
Unpaid
Principal
Balance
|
|
Recorded
Investment
|
|
Allowance
for Loan
Losses
Allocated
|
||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial, financial and agricultural
|
|
$
|
17,871
|
|
|
$
|
12,837
|
|
|
$
|
—
|
|
|
|
$
|
41,075
|
|
|
$
|
19,965
|
|
|
$
|
—
|
|
Commercial real estate
|
|
20,199
|
|
|
20,014
|
|
|
—
|
|
|
|
23,961
|
|
|
23,474
|
|
|
—
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
1,457
|
|
|
1,431
|
|
|
—
|
|
|
|
3,662
|
|
|
2,226
|
|
|
—
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
21,261
|
|
|
20,873
|
|
|
—
|
|
|
|
24,409
|
|
|
22,687
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial, financial and agricultural
|
|
17,505
|
|
|
15,638
|
|
|
3,774
|
|
|
|
810
|
|
|
659
|
|
|
152
|
|
||||||
Commercial real estate
|
|
1,969
|
|
|
1,776
|
|
|
290
|
|
|
|
1,014
|
|
|
1,000
|
|
|
309
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
1,592
|
|
|
205
|
|
|
44
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
|
362
|
|
|
362
|
|
|
29
|
|
|
|
427
|
|
|
415
|
|
|
87
|
|
||||||
Consumer
|
|
8
|
|
|
8
|
|
|
8
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
82,224
|
|
|
$
|
73,144
|
|
|
$
|
4,145
|
|
|
|
$
|
95,358
|
|
|
$
|
70,426
|
|
|
$
|
548
|
|
|
Three Months Ended
June 30, 2017 |
|
|
Three Months Ended
June 30, 2016 |
||||||||||||||||||||
(In thousands)
|
Recorded Investment as of June 30, 2017
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
|
Recorded Investment as of June 30, 2016
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||||
Commercial, financial and agricultural
|
$
|
28,475
|
|
|
$
|
23,320
|
|
|
$
|
120
|
|
|
|
$
|
29,779
|
|
|
$
|
28,600
|
|
|
$
|
308
|
|
Commercial real estate
|
21,790
|
|
|
21,768
|
|
|
240
|
|
|
|
29,889
|
|
|
22,177
|
|
|
185
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,636
|
|
|
1,843
|
|
|
16
|
|
|
|
6,086
|
|
|
6,395
|
|
|
15
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
21,235
|
|
|
20,732
|
|
|
61
|
|
|
|
25,070
|
|
|
24,648
|
|
|
340
|
|
||||||
Consumer
|
8
|
|
|
9
|
|
|
—
|
|
|
|
20
|
|
|
5
|
|
|
—
|
|
||||||
Total
|
$
|
73,144
|
|
|
$
|
67,672
|
|
|
$
|
437
|
|
|
|
$
|
90,844
|
|
|
$
|
81,825
|
|
|
$
|
848
|
|
|
Six Months Ended
June 30, 2017 |
|
|
Six Months Ended
June 30, 2016 |
||||||||||||||||||||
(In thousands)
|
Recorded Investment as of June 30, 2017
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
|
Recorded Investment as of June 30, 2016
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||||||
Commercial, financial and agricultural
|
$
|
28,475
|
|
|
$
|
21,789
|
|
|
$
|
340
|
|
|
|
$
|
29,779
|
|
|
$
|
29,319
|
|
|
$
|
546
|
|
Commercial real estate
|
21,790
|
|
|
22,504
|
|
|
471
|
|
|
|
29,889
|
|
|
19,863
|
|
|
365
|
|
||||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
1,636
|
|
|
1,960
|
|
|
31
|
|
|
|
6,086
|
|
|
6,564
|
|
|
28
|
|
||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
21,235
|
|
|
21,220
|
|
|
406
|
|
|
|
25,070
|
|
|
24,795
|
|
|
2,305
|
|
||||||
Consumer
|
8
|
|
|
6
|
|
|
—
|
|
|
|
20
|
|
|
3
|
|
|
—
|
|
||||||
Total
|
$
|
73,144
|
|
|
$
|
67,479
|
|
|
$
|
1,248
|
|
|
|
$
|
90,844
|
|
|
$
|
80,544
|
|
|
$
|
3,244
|
|
|
June 30, 2017
|
||||||||||||||||||
(In thousands)
|
Accruing Loans
Past Due 30-89
Days
|
|
Past Due
Nonaccrual
Loans and Loans Past
Due 90 Days or
More and
Accruing
(1)
|
|
Total Past Due
|
|
Total Current
(2)
|
|
Total Recorded
Investment
|
||||||||||
Commercial, financial and agricultural
|
$
|
227
|
|
|
$
|
10,364
|
|
|
$
|
10,591
|
|
|
$
|
999,725
|
|
|
$
|
1,010,316
|
|
Commercial real estate
|
290
|
|
|
2,572
|
|
|
2,862
|
|
|
1,192,979
|
|
|
1,195,841
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
—
|
|
|
24
|
|
|
24
|
|
|
118,948
|
|
|
118,972
|
|
|||||
Mortgage
|
155
|
|
|
—
|
|
|
155
|
|
|
46,976
|
|
|
47,131
|
|
|||||
Installment
|
133
|
|
|
50
|
|
|
183
|
|
|
4,598
|
|
|
4,781
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
39
|
|
|
1,715
|
|
|
1,754
|
|
|
396,957
|
|
|
398,711
|
|
|||||
Mortgage
|
8,333
|
|
|
10,278
|
|
|
18,611
|
|
|
1,133,214
|
|
|
1,151,825
|
|
|||||
HELOC
|
379
|
|
|
1,118
|
|
|
1,497
|
|
|
208,627
|
|
|
210,124
|
|
|||||
Installment
|
250
|
|
|
308
|
|
|
558
|
|
|
18,442
|
|
|
19,000
|
|
|||||
Consumer
|
9,073
|
|
|
2,232
|
|
|
11,305
|
|
|
1,208,649
|
|
|
1,219,954
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
3,377
|
|
|
3,377
|
|
|||||
Total loans
|
$
|
18,879
|
|
|
$
|
28,661
|
|
|
$
|
47,540
|
|
|
$
|
5,332,492
|
|
|
$
|
5,380,032
|
|
|
December 31, 2016
|
||||||||||||||||||
(in thousands)
|
Accruing Loans
Past Due 30-89
Days
|
|
Past Due
Nonaccrual Loans and Loans Past Due 90 Days or More and Accruing (1) |
|
Total Past Due
|
|
Total Current
(2)
|
|
Total Recorded
Investment
|
||||||||||
Commercial, financial and agricultural
|
$
|
371
|
|
|
$
|
4,113
|
|
|
$
|
4,484
|
|
|
$
|
993,693
|
|
|
$
|
998,177
|
|
Commercial real estate
|
355
|
|
|
2,499
|
|
|
2,854
|
|
|
1,157,010
|
|
|
1,159,864
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
—
|
|
|
541
|
|
|
541
|
|
|
135,200
|
|
|
135,741
|
|
|||||
Mortgage
|
559
|
|
|
—
|
|
|
559
|
|
|
48,246
|
|
|
48,805
|
|
|||||
Installment
|
223
|
|
|
64
|
|
|
287
|
|
|
4,633
|
|
|
4,920
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
330
|
|
|
3,631
|
|
|
3,961
|
|
|
403,666
|
|
|
407,627
|
|
|||||
Mortgage
|
10,854
|
|
|
9,769
|
|
|
20,623
|
|
|
1,150,331
|
|
|
1,170,954
|
|
|||||
HELOC
|
970
|
|
|
1,020
|
|
|
1,990
|
|
|
211,304
|
|
|
213,294
|
|
|||||
Installment
|
350
|
|
|
319
|
|
|
669
|
|
|
19,272
|
|
|
19,941
|
|
|||||
Consumer
|
12,579
|
|
|
2,094
|
|
|
14,673
|
|
|
1,109,562
|
|
|
1,124,235
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
3,272
|
|
|
3,272
|
|
|||||
Total loans
|
$
|
26,591
|
|
|
$
|
24,050
|
|
|
$
|
50,641
|
|
|
$
|
5,236,189
|
|
|
$
|
5,286,830
|
|
|
June 30, 2017
|
||||||||||||||||||
(In thousands)
|
5 Rated
|
|
6 Rated
|
|
Nonaccrual and Accruing Troubled Debt Restructurings
|
|
Pass-Rated
|
|
Recorded
Investment
|
||||||||||
Commercial, financial and agricultural *
|
$
|
3,230
|
|
|
$
|
136
|
|
|
$
|
28,504
|
|
|
$
|
978,446
|
|
|
$
|
1,010,316
|
|
Commercial real estate *
|
7,248
|
|
|
—
|
|
|
21,790
|
|
|
1,166,803
|
|
|
1,195,841
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
—
|
|
|
115
|
|
|
1,636
|
|
|
117,221
|
|
|
118,972
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
1,071
|
|
|
254
|
|
|
21,235
|
|
|
376,151
|
|
|
398,711
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
3,377
|
|
|
3,377
|
|
|||||
Total commercial loans
|
$
|
11,549
|
|
|
$
|
505
|
|
|
$
|
73,165
|
|
|
$
|
2,641,998
|
|
|
$
|
2,727,217
|
|
|
December 31, 2016
|
||||||||||||||||||
(In thousands)
|
5 Rated
|
|
6 Rated
|
|
Nonaccrual and Accruing Troubled Debt Restructurings
|
|
Pass-Rated
|
|
Recorded
Investment
|
||||||||||
Commercial, financial and agricultural *
|
$
|
5,826
|
|
|
$
|
—
|
|
|
$
|
20,657
|
|
|
$
|
971,694
|
|
|
$
|
998,177
|
|
Commercial real estate *
|
7,548
|
|
|
190
|
|
|
24,474
|
|
|
1,127,652
|
|
|
1,159,864
|
|
|||||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
287
|
|
|
118
|
|
|
2,226
|
|
|
133,110
|
|
|
135,741
|
|
|||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial
|
1,055
|
|
|
124
|
|
|
23,102
|
|
|
383,346
|
|
|
407,627
|
|
|||||
Leases
|
—
|
|
|
—
|
|
|
—
|
|
|
3,272
|
|
|
3,272
|
|
|||||
Total Commercial Loans
|
$
|
14,716
|
|
|
$
|
432
|
|
|
$
|
70,459
|
|
|
$
|
2,619,074
|
|
|
$
|
2,704,681
|
|
|
Three Months Ended
June 30, 2017 |
|||||||||||||
(In thousands)
|
Number of
Contracts
|
|
Accruing
|
|
Nonaccrual
|
|
Total
Recorded
Investment
|
|||||||
Commercial, financial and agricultural
|
3
|
|
|
$
|
—
|
|
|
$
|
164
|
|
|
$
|
164
|
|
Commercial real estate
|
2
|
|
|
802
|
|
|
—
|
|
|
802
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Mortgage
|
1
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|||
Installment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
4
|
|
|
—
|
|
|
282
|
|
|
282
|
|
|||
Mortgage
|
10
|
|
|
438
|
|
|
506
|
|
|
944
|
|
|||
HELOC
|
9
|
|
|
160
|
|
|
48
|
|
|
208
|
|
|||
Installment
|
2
|
|
|
40
|
|
|
—
|
|
|
40
|
|
|||
Consumer
|
72
|
|
|
37
|
|
|
551
|
|
|
588
|
|
|||
Total loans
|
103
|
|
|
$
|
1,477
|
|
|
$
|
1,559
|
|
|
$
|
3,036
|
|
|
Three Months Ended
June 30, 2016 |
|||||||||||||
(In thousands)
|
Number of
Contracts
|
|
Accruing
|
|
Nonaccrual
|
|
Total
Recorded
Investment
|
|||||||
Commercial, financial and agricultural
|
10
|
|
|
$
|
51
|
|
|
$
|
3,248
|
|
|
$
|
3,299
|
|
Commercial real estate
|
4
|
|
|
3,326
|
|
|
581
|
|
|
3,907
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
1
|
|
|
—
|
|
|
196
|
|
|
196
|
|
|||
Mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Installment
|
1
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
1
|
|
|
—
|
|
|
132
|
|
|
132
|
|
|||
Mortgage
|
4
|
|
|
—
|
|
|
441
|
|
|
441
|
|
|||
HELOC
|
2
|
|
|
17
|
|
|
38
|
|
|
55
|
|
|||
Installment
|
2
|
|
|
39
|
|
|
3
|
|
|
42
|
|
|||
Consumer
|
85
|
|
|
122
|
|
|
623
|
|
|
745
|
|
|||
Total loans
|
110
|
|
|
$
|
3,555
|
|
|
$
|
5,272
|
|
|
$
|
8,827
|
|
|
Six Months Ended
June 30, 2017 |
|||||||||||||
(In thousands)
|
Number of
Contracts
|
|
Accruing
|
|
Nonaccrual
|
|
Total
Recorded
Investment
|
|||||||
Commercial, financial and agricultural
|
11
|
|
|
$
|
—
|
|
|
$
|
3,052
|
|
|
$
|
3,052
|
|
Commercial real estate
|
6
|
|
|
803
|
|
|
380
|
|
|
1,183
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Mortgage
|
1
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|||
Installment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
5
|
|
|
—
|
|
|
282
|
|
|
282
|
|
|||
Mortgage
|
19
|
|
|
438
|
|
|
1,110
|
|
|
1,548
|
|
|||
HELOC
|
12
|
|
|
359
|
|
|
47
|
|
|
406
|
|
|||
Installment
|
3
|
|
|
73
|
|
|
—
|
|
|
73
|
|
|||
Consumer
|
129
|
|
|
52
|
|
|
965
|
|
|
1,017
|
|
|||
Total loans
|
186
|
|
|
$
|
1,725
|
|
|
$
|
5,844
|
|
|
$
|
7,569
|
|
|
Six Months Ended
June 30, 2016 |
|||||||||||||
(In thousands)
|
Number of
Contracts
|
|
Accruing
|
|
Nonaccrual
|
|
Total
Recorded
Investment
|
|||||||
Commercial, financial and agricultural
|
17
|
|
|
$
|
51
|
|
|
$
|
3,945
|
|
|
$
|
3,996
|
|
Commercial real estate
|
4
|
|
|
3,327
|
|
|
581
|
|
|
3,908
|
|
|||
Construction real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
1
|
|
|
—
|
|
|
196
|
|
|
196
|
|
|||
Mortgage
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Installment
|
1
|
|
|
—
|
|
|
10
|
|
|
10
|
|
|||
Residential real estate:
|
|
|
|
|
|
|
|
|||||||
Commercial
|
3
|
|
|
—
|
|
|
695
|
|
|
695
|
|
|||
Mortgage
|
9
|
|
|
98
|
|
|
654
|
|
|
752
|
|
|||
HELOC
|
8
|
|
|
80
|
|
|
157
|
|
|
237
|
|
|||
Installment
|
2
|
|
|
39
|
|
|
3
|
|
|
42
|
|
|||
Consumer
|
149
|
|
|
134
|
|
|
824
|
|
|
958
|
|
|||
Total loans
|
194
|
|
|
$
|
3,729
|
|
|
$
|
7,065
|
|
|
$
|
10,794
|
|
|
Three Months Ended
June 30, 2017 |
|
|
Three Months Ended
June 30, 2016 |
|
||||||||||
(In thousands)
|
Number of
Contracts
|
|
Recorded
Investment
|
|
|
Number of
Contracts
|
|
Recorded
Investment
|
|
||||||
Commercial, financial and agricultural
|
4
|
|
|
$
|
109
|
|
|
|
—
|
|
|
$
|
—
|
|
|
Commercial real estate
|
4
|
|
|
657
|
|
|
|
1
|
|
|
582
|
|
|
||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Mortgage
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Installment
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
1
|
|
|
29
|
|
|
|
2
|
|
|
563
|
|
|
||
Mortgage
|
10
|
|
|
724
|
|
|
|
3
|
|
|
288
|
|
|
||
HELOC
|
2
|
|
|
10
|
|
|
|
—
|
|
|
—
|
|
|
||
Installment
|
1
|
|
|
2
|
|
|
|
1
|
|
|
3
|
|
|
||
Consumer
|
48
|
|
|
579
|
|
|
|
39
|
|
|
311
|
|
|
||
Leases
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Total loans
|
70
|
|
|
$
|
2,110
|
|
|
|
46
|
|
|
$
|
1,747
|
|
|
|
Six Months Ended
June 30, 2017 |
|
|
Six Months Ended
June 30, 2016 |
|
||||||||||
(In thousands)
|
Number of
Contracts
|
|
Recorded
Investment
|
|
|
Number of
Contracts
|
|
Recorded
Investment
|
|
||||||
Commercial, financial and agricultural
|
4
|
|
|
$
|
109
|
|
|
|
—
|
|
|
$
|
—
|
|
|
Commercial real estate
|
5
|
|
|
834
|
|
|
|
1
|
|
|
582
|
|
|
||
Construction real estate:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Mortgage
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Installment
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
||||||
Commercial
|
1
|
|
|
29
|
|
|
|
2
|
|
|
563
|
|
|
||
Mortgage
|
10
|
|
|
724
|
|
|
|
3
|
|
|
288
|
|
|
||
HELOC
|
2
|
|
|
10
|
|
|
|
—
|
|
|
—
|
|
|
||
Installment
|
1
|
|
|
2
|
|
|
|
1
|
|
|
3
|
|
|
||
Consumer
|
56
|
|
|
618
|
|
|
|
42
|
|
|
339
|
|
|
||
Leases
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
||
Total loans
|
79
|
|
|
$
|
2,326
|
|
|
|
49
|
|
|
$
|
1,775
|
|
|
|
Three Months Ended
June 30, 2017 |
||||||||||||||||||||||||||
(In thousands)
|
Commercial,
financial and
agricultural
|
|
Commercial
real estate
|
|
Construction
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance
|
$
|
13,437
|
|
|
$
|
10,281
|
|
|
$
|
4,368
|
|
|
$
|
10,745
|
|
|
$
|
11,091
|
|
|
$
|
—
|
|
|
$
|
49,922
|
|
Charge-offs
|
318
|
|
|
310
|
|
|
—
|
|
|
290
|
|
|
2,128
|
|
|
—
|
|
|
3,046
|
|
|||||||
Recoveries
|
163
|
|
|
241
|
|
|
325
|
|
|
336
|
|
|
1,300
|
|
|
—
|
|
|
2,365
|
|
|||||||
Net charge-offs/(recoveries)
|
155
|
|
|
69
|
|
|
(325
|
)
|
|
(46
|
)
|
|
828
|
|
|
—
|
|
|
681
|
|
|||||||
Provision/(recovery)
|
3,464
|
|
|
239
|
|
|
(16
|
)
|
|
(472
|
)
|
|
1,366
|
|
|
—
|
|
|
4,581
|
|
|||||||
Ending balance
|
$
|
16,746
|
|
|
$
|
10,451
|
|
|
$
|
4,677
|
|
|
$
|
10,319
|
|
|
$
|
11,629
|
|
|
$
|
—
|
|
|
$
|
53,822
|
|
|
Three Months Ended
June 30, 2016 |
||||||||||||||||||||||||||
(In thousands)
|
Commercial,
financial and
agricultural
|
|
Commercial
real estate
|
|
Construction
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance
|
$
|
14,240
|
|
|
$
|
9,452
|
|
|
$
|
8,687
|
|
|
$
|
13,388
|
|
|
$
|
11,180
|
|
|
$
|
1
|
|
|
$
|
56,948
|
|
Charge-offs
|
870
|
|
|
77
|
|
|
18
|
|
|
736
|
|
|
2,718
|
|
|
—
|
|
|
4,419
|
|
|||||||
Recoveries
|
216
|
|
|
1,814
|
|
|
110
|
|
|
407
|
|
|
985
|
|
|
1
|
|
|
3,533
|
|
|||||||
Net charge-offs/(recoveries)
|
654
|
|
|
(1,737
|
)
|
|
(92
|
)
|
|
329
|
|
|
1,733
|
|
|
(1
|
)
|
|
886
|
|
|||||||
Provision/(recovery)
|
2,892
|
|
|
(1,986
|
)
|
|
(523
|
)
|
|
121
|
|
|
2,134
|
|
|
(1
|
)
|
|
2,637
|
|
|||||||
Ending balance
|
$
|
16,478
|
|
|
$
|
9,203
|
|
|
$
|
8,256
|
|
|
$
|
13,180
|
|
|
$
|
11,581
|
|
|
$
|
1
|
|
|
$
|
58,699
|
|
|
Six Months Ended
June 30, 2017 |
||||||||||||||||||||||||||
(In thousands)
|
Commercial,
financial and
agricultural
|
|
Commercial
real estate
|
|
Construction
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance
|
$
|
13,434
|
|
|
$
|
10,432
|
|
|
$
|
5,247
|
|
|
$
|
10,958
|
|
|
$
|
10,553
|
|
|
$
|
—
|
|
|
$
|
50,624
|
|
Charge-offs
|
657
|
|
|
422
|
|
|
27
|
|
|
770
|
|
|
4,878
|
|
|
—
|
|
|
6,754
|
|
|||||||
Recoveries
|
532
|
|
|
355
|
|
|
383
|
|
|
627
|
|
|
2,598
|
|
|
—
|
|
|
4,495
|
|
|||||||
Net charge-offs/(recoveries)
|
125
|
|
|
67
|
|
|
(356
|
)
|
|
143
|
|
|
2,280
|
|
|
—
|
|
|
2,259
|
|
|||||||
Provision/(recovery)
|
3,437
|
|
|
86
|
|
|
(926
|
)
|
|
(496
|
)
|
|
3,356
|
|
|
—
|
|
|
5,457
|
|
|||||||
Ending balance
|
$
|
16,746
|
|
|
$
|
10,451
|
|
|
$
|
4,677
|
|
|
$
|
10,319
|
|
|
$
|
11,629
|
|
|
$
|
—
|
|
|
$
|
53,822
|
|
|
Six Months Ended
June 30, 2016 |
||||||||||||||||||||||||||
(In thousands)
|
Commercial,
financial and
agricultural
|
|
Commercial
real estate
|
|
Construction
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Beginning balance
|
$
|
13,694
|
|
|
$
|
9,197
|
|
|
$
|
8,564
|
|
|
$
|
13,514
|
|
|
$
|
11,524
|
|
|
$
|
1
|
|
|
$
|
56,494
|
|
Charge-offs
|
1,144
|
|
|
78
|
|
|
18
|
|
|
1,483
|
|
|
5,097
|
|
|
—
|
|
|
7,820
|
|
|||||||
Recoveries
|
643
|
|
|
2,032
|
|
|
1,049
|
|
|
878
|
|
|
1,875
|
|
|
1
|
|
|
6,478
|
|
|||||||
Net charge-offs/(recoveries)
|
501
|
|
|
(1,954
|
)
|
|
(1,031
|
)
|
|
605
|
|
|
3,222
|
|
|
(1
|
)
|
|
1,342
|
|
|||||||
Provision/(recovery)
|
3,285
|
|
|
(1,948
|
)
|
|
(1,339
|
)
|
|
271
|
|
|
3,279
|
|
|
(1
|
)
|
|
3,547
|
|
|||||||
Ending balance
|
$
|
16,478
|
|
|
$
|
9,203
|
|
|
$
|
8,256
|
|
|
$
|
13,180
|
|
|
$
|
11,581
|
|
|
$
|
1
|
|
|
$
|
58,699
|
|
|
June 30, 2017
|
||||||||||||||||||||||||||
(In thousands)
|
Commercial,
financial and
agricultural
|
|
Commercial
real estate
|
|
Construction
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Ending allowance balance attributed to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Individually evaluated for impairment
|
$
|
3,774
|
|
|
$
|
290
|
|
|
$
|
44
|
|
|
$
|
29
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
4,145
|
|
Collectively evaluated for impairment
|
12,972
|
|
|
10,161
|
|
|
4,633
|
|
|
10,290
|
|
|
11,621
|
|
|
—
|
|
|
49,677
|
|
|||||||
Total ending allowance balance
|
$
|
16,746
|
|
|
$
|
10,451
|
|
|
$
|
4,677
|
|
|
$
|
10,319
|
|
|
$
|
11,629
|
|
|
$
|
—
|
|
|
$
|
53,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loan balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans individually evaluated for impairment
|
$
|
28,475
|
|
|
$
|
21,742
|
|
|
$
|
1,634
|
|
|
$
|
21,236
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
73,095
|
|
Loans collectively evaluated for impairment
|
978,004
|
|
|
1,170,139
|
|
|
168,765
|
|
|
1,755,331
|
|
|
1,216,756
|
|
|
3,347
|
|
|
5,292,342
|
|
|||||||
Total ending loan balance
|
$
|
1,006,479
|
|
|
$
|
1,191,881
|
|
|
$
|
170,399
|
|
|
$
|
1,776,567
|
|
|
$
|
1,216,764
|
|
|
$
|
3,347
|
|
|
$
|
5,365,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan losses as a percentage of loan balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans individually evaluated for impairment
|
13.25
|
%
|
|
1.33
|
%
|
|
2.69
|
%
|
|
0.14
|
%
|
|
—
|
%
|
|
—
|
%
|
|
5.67
|
%
|
|||||||
Loans collectively evaluated for impairment
|
1.33
|
%
|
|
0.87
|
%
|
|
2.75
|
%
|
|
0.59
|
%
|
|
0.96
|
%
|
|
—
|
%
|
|
0.94
|
%
|
|||||||
Total
|
1.66
|
%
|
|
0.88
|
%
|
|
2.74
|
%
|
|
0.58
|
%
|
|
0.96
|
%
|
|
—
|
%
|
|
1.00
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Recorded investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans individually evaluated for impairment
|
$
|
28,475
|
|
|
$
|
21,790
|
|
|
$
|
1,636
|
|
|
$
|
21,235
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
73,144
|
|
Loans collectively evaluated for impairment
|
981,841
|
|
|
1,174,051
|
|
|
169,248
|
|
|
1,758,425
|
|
|
1,219,946
|
|
|
3,377
|
|
|
5,306,888
|
|
|||||||
Total ending recorded investment
|
$
|
1,010,316
|
|
|
$
|
1,195,841
|
|
|
$
|
170,884
|
|
|
$
|
1,779,660
|
|
|
$
|
1,219,954
|
|
|
$
|
3,377
|
|
|
$
|
5,380,032
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
(In thousands)
|
|
Commercial,
financial and
agricultural
|
|
Commercial
real estate
|
|
Construction
real estate
|
|
Residential
real estate
|
|
Consumer
|
|
Leases
|
|
Total
|
||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Ending allowance balance attributed to loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Individually evaluated for impairment
|
|
$
|
152
|
|
|
$
|
309
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
548
|
|
Collectively evaluated for impairment
|
|
13,282
|
|
|
10,123
|
|
|
5,247
|
|
|
10,871
|
|
|
10,553
|
|
|
—
|
|
|
50,076
|
|
|||||||
Total ending allowance balance
|
|
$
|
13,434
|
|
|
$
|
10,432
|
|
|
$
|
5,247
|
|
|
$
|
10,958
|
|
|
$
|
10,553
|
|
|
$
|
—
|
|
|
$
|
50,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loan balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans individually evaluated for impairment
|
|
$
|
20,622
|
|
|
$
|
24,465
|
|
|
$
|
2,226
|
|
|
$
|
23,102
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,415
|
|
Loans collectively evaluated for impairment
|
|
973,997
|
|
|
1,131,238
|
|
|
186,719
|
|
|
1,785,395
|
|
|
1,120,850
|
|
|
3,243
|
|
|
5,201,442
|
|
|||||||
Total ending loan balance
|
|
$
|
994,619
|
|
|
$
|
1,155,703
|
|
|
$
|
188,945
|
|
|
$
|
1,808,497
|
|
|
$
|
1,120,850
|
|
|
$
|
3,243
|
|
|
$
|
5,271,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan losses as a percentage of loan balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans individually evaluated for impairment
|
|
0.74
|
%
|
|
1.26
|
%
|
|
—
|
%
|
|
0.38
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.78
|
%
|
|||||||
Loans collectively evaluated for impairment
|
|
1.36
|
%
|
|
0.89
|
%
|
|
2.81
|
%
|
|
0.61
|
%
|
|
0.94
|
%
|
|
—
|
%
|
|
0.96
|
%
|
|||||||
Total
|
|
1.35
|
%
|
|
0.90
|
%
|
|
2.78
|
%
|
|
0.61
|
%
|
|
0.94
|
%
|
|
—
|
%
|
|
0.96
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Recorded investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Loans individually evaluated for impairment
|
|
$
|
20,624
|
|
|
$
|
24,474
|
|
|
$
|
2,226
|
|
|
$
|
23,102
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
70,426
|
|
Loans collectively evaluated for impairment
|
|
977,553
|
|
|
1,135,390
|
|
|
187,240
|
|
|
1,788,714
|
|
|
1,124,235
|
|
|
3,272
|
|
|
5,216,404
|
|
|||||||
Total ending recorded investment
|
|
$
|
998,177
|
|
|
$
|
1,159,864
|
|
|
$
|
189,466
|
|
|
$
|
1,811,816
|
|
|
$
|
1,124,235
|
|
|
$
|
3,272
|
|
|
$
|
5,286,830
|
|
(in thousands)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
OREO:
|
|
|
|
|
||||
Commercial real estate
|
|
$
|
8,228
|
|
|
$
|
7,642
|
|
Construction real estate
|
|
4,980
|
|
|
4,624
|
|
||
Residential real estate
|
|
1,673
|
|
|
1,660
|
|
||
Total OREO
|
|
$
|
14,881
|
|
|
$
|
13,926
|
|
|
|
|
|
|
||||
Loans in process of foreclosure:
|
|
|
|
|
||||
Residential real estate
|
|
$
|
3,280
|
|
|
$
|
3,250
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands, except share and per common share data)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
19,032
|
|
|
$
|
19,998
|
|
|
$
|
39,299
|
|
|
$
|
38,684
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding
|
|
15,297,085
|
|
|
15,330,802
|
|
|
15,304,572
|
|
|
15,330,808
|
|
||||
Effect of dilutive performance-based restricted stock units
|
|
101,780
|
|
|
68,481
|
|
|
111,193
|
|
|
72,088
|
|
||||
Weighted-average common shares outstanding adjusted for the effect of dilutive performance-based restricted stock units
|
|
15,398,865
|
|
|
15,399,283
|
|
|
15,415,765
|
|
|
15,402,896
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per common share
|
|
$
|
1.24
|
|
|
$
|
1.30
|
|
|
$
|
2.57
|
|
|
$
|
2.52
|
|
Diluted earnings per common share
|
|
$
|
1.24
|
|
|
$
|
1.30
|
|
|
$
|
2.55
|
|
|
$
|
2.51
|
|
|
|
Operating Results for the three months ended June 30, 2017
|
||||||||||||||||||
(In thousands)
|
|
PNB
|
|
GFSC
|
|
SEPH
|
|
All Other
|
|
Total
|
||||||||||
Net interest income (expense)
|
|
$
|
57,822
|
|
|
$
|
1,491
|
|
|
$
|
282
|
|
|
$
|
183
|
|
|
$
|
59,778
|
|
Provision for (recovery of) loan losses
|
|
4,574
|
|
|
373
|
|
|
(366
|
)
|
|
—
|
|
|
4,581
|
|
|||||
Other income (loss)
|
|
19,179
|
|
|
(8
|
)
|
|
(21
|
)
|
|
101
|
|
|
19,251
|
|
|||||
Other expense
|
|
43,877
|
|
|
825
|
|
|
1,238
|
|
|
2,166
|
|
|
48,106
|
|
|||||
Income (loss) before income taxes
|
|
$
|
28,550
|
|
|
$
|
285
|
|
|
$
|
(611
|
)
|
|
$
|
(1,882
|
)
|
|
$
|
26,342
|
|
Federal income taxes (benefit)
|
|
8,387
|
|
|
99
|
|
|
(213
|
)
|
|
(963
|
)
|
|
7,310
|
|
|||||
Net income (loss)
|
|
$
|
20,163
|
|
|
$
|
186
|
|
|
$
|
(398
|
)
|
|
$
|
(919
|
)
|
|
$
|
19,032
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets (as of June 30, 2017)
|
|
$
|
7,754,898
|
|
|
$
|
33,860
|
|
|
$
|
24,595
|
|
|
$
|
18,739
|
|
|
$
|
7,832,092
|
|
|
|
Operating Results for the three months ended June 30, 2016
|
||||||||||||||||||
(In thousands)
|
|
PNB
|
|
GFSC
|
|
SEPH
|
|
All Other
|
|
Total
|
||||||||||
Net interest income (expense)
|
|
$
|
56,006
|
|
|
$
|
1,440
|
|
|
$
|
71
|
|
|
$
|
(32
|
)
|
|
$
|
57,485
|
|
Provision for (recovery of) loan losses
|
|
1,362
|
|
|
1,444
|
|
|
(169
|
)
|
|
—
|
|
|
2,637
|
|
|||||
Other income
|
|
18,508
|
|
|
—
|
|
|
112
|
|
|
116
|
|
|
18,736
|
|
|||||
Other expense (income)
|
|
42,731
|
|
|
(966
|
)
|
|
1,332
|
|
|
2,209
|
|
|
45,306
|
|
|||||
Income (loss) before income taxes
|
|
$
|
30,421
|
|
|
$
|
962
|
|
|
$
|
(980
|
)
|
|
$
|
(2,125
|
)
|
|
$
|
28,278
|
|
Federal income taxes (benefit)
|
|
9,343
|
|
|
336
|
|
|
(343
|
)
|
|
(1,056
|
)
|
|
8,280
|
|
|||||
Net income (loss)
|
|
$
|
21,078
|
|
|
$
|
626
|
|
|
$
|
(637
|
)
|
|
$
|
(1,069
|
)
|
|
$
|
19,998
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets (as of June 30, 2016)
|
|
$
|
7,351,293
|
|
|
$
|
32,546
|
|
|
$
|
32,822
|
|
|
$
|
14,949
|
|
|
$
|
7,431,610
|
|
|
|
Operating Results for the six months ended June 30, 2017
|
||||||||||||||||||
(In thousands)
|
|
PNB
|
|
GFSC
|
|
SEPH
|
|
All Other
|
|
Total
|
||||||||||
Net interest income (expense)
|
|
$
|
115,302
|
|
|
$
|
2,969
|
|
|
$
|
483
|
|
|
$
|
(24
|
)
|
|
$
|
118,730
|
|
Provision for (recovery of) loan losses
|
|
5,294
|
|
|
810
|
|
|
(647
|
)
|
|
—
|
|
|
5,457
|
|
|||||
Other income (loss)
|
|
36,890
|
|
|
(8
|
)
|
|
(21
|
)
|
|
(103
|
)
|
|
36,758
|
|
|||||
Other expense
|
|
87,680
|
|
|
1,561
|
|
|
2,014
|
|
|
4,313
|
|
|
95,568
|
|
|||||
Income (loss) before income taxes
|
|
$
|
59,218
|
|
|
$
|
590
|
|
|
$
|
(905
|
)
|
|
$
|
(4,440
|
)
|
|
$
|
54,463
|
|
Federal income taxes (benefit)
|
|
17,569
|
|
|
206
|
|
|
(316
|
)
|
|
(2,295
|
)
|
|
15,164
|
|
|||||
Net income (loss)
|
|
$
|
41,649
|
|
|
$
|
384
|
|
|
$
|
(589
|
)
|
|
$
|
(2,145
|
)
|
|
$
|
39,299
|
|
|
|
Operating Results for the six months ended June 30, 2016
|
||||||||||||||||||
(In thousands)
|
|
PNB
|
|
GFSC
|
|
SEPH
|
|
All Other
|
|
Total
|
||||||||||
Net interest income (expense)
|
|
$
|
113,161
|
|
|
$
|
2,944
|
|
|
$
|
1,232
|
|
|
$
|
(33
|
)
|
|
$
|
117,304
|
|
Provision for (recovery of) loan losses
|
|
2,895
|
|
|
1,971
|
|
|
(1,319
|
)
|
|
—
|
|
|
3,547
|
|
|||||
Other income
|
|
35,731
|
|
|
—
|
|
|
146
|
|
|
248
|
|
|
36,125
|
|
|||||
Other expense
|
|
84,091
|
|
|
2,832
|
|
|
2,736
|
|
|
5,546
|
|
|
95,205
|
|
|||||
Income (loss) before income taxes
|
|
$
|
61,906
|
|
|
$
|
(1,859
|
)
|
|
$
|
(39
|
)
|
|
$
|
(5,331
|
)
|
|
$
|
54,677
|
|
Federal income taxes (benefit)
|
|
19,084
|
|
|
(649
|
)
|
|
(14
|
)
|
|
(2,428
|
)
|
|
15,993
|
|
|||||
Net income (loss)
|
|
$
|
42,822
|
|
|
$
|
(1,210
|
)
|
|
$
|
(25
|
)
|
|
$
|
(2,903
|
)
|
|
$
|
38,684
|
|
Securities Available-for-Sale (In thousands)
|
|
Amortized
Cost
|
|
Gross
Unrecognized
Holding
Gains
|
|
Gross
Unrecognized
Holding
Losses
|
|
Estimated
Fair Value
|
||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
270,000
|
|
|
$
|
—
|
|
|
$
|
1,314
|
|
|
$
|
268,686
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
923,424
|
|
|
6,273
|
|
|
6,104
|
|
|
923,593
|
|
||||
Other equity securities
|
|
1,109
|
|
|
2,727
|
|
|
—
|
|
|
3,836
|
|
||||
Total
|
|
$
|
1,194,533
|
|
|
$
|
9,000
|
|
|
$
|
7,418
|
|
|
$
|
1,196,115
|
|
Securities Held-to-Maturity (In thousands)
|
|
Amortized
Cost
|
|
Gross
Unrecognized Holding Gains |
|
Gross
Unrecognized Holding Losses |
|
Estimated
Fair Value
|
||||||||
U.S. Government sponsored entities' asset-backed securities
|
|
$
|
61,840
|
|
|
$
|
1,065
|
|
|
$
|
24
|
|
|
$
|
62,881
|
|
Obligations of states and political subdivisions
|
|
260,168
|
|
|
3,900
|
|
|
$
|
2,122
|
|
|
261,946
|
|
|||
Total
|
|
$
|
322,008
|
|
|
$
|
4,965
|
|
|
$
|
2,146
|
|
|
$
|
324,827
|
|
|
|
Unrecognized loss position for less than 12 months
|
|
Unrecognized loss position for 12 months or longer
|
|
Total
|
||||||||||||||||||
(In thousands)
|
|
Fair value
|
|
Unrecognized
losses
|
|
Fair value
|
|
Unrecognized
losses |
|
Fair
value
|
|
Unrecognized
losses |
||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
174,542
|
|
|
$
|
458
|
|
|
$
|
94,144
|
|
|
$
|
856
|
|
|
$
|
268,686
|
|
|
$
|
1,314
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
570,691
|
|
|
5,863
|
|
|
$
|
24,672
|
|
|
241
|
|
|
$
|
595,363
|
|
|
6,104
|
|
||||
Total
|
|
$
|
745,233
|
|
|
$
|
6,321
|
|
|
$
|
118,816
|
|
|
$
|
1,097
|
|
|
$
|
864,049
|
|
|
$
|
7,418
|
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Government sponsored entities' asset-backed securities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,481
|
|
|
$
|
24
|
|
|
$
|
7,481
|
|
|
$
|
24
|
|
Obligations of states and political subdivisions
|
|
116,083
|
|
|
$
|
2,122
|
|
|
—
|
|
|
—
|
|
|
$
|
116,083
|
|
|
2,122
|
|
||||
Total
|
|
$
|
116,083
|
|
|
$
|
2,122
|
|
|
$
|
7,481
|
|
|
$
|
24
|
|
|
$
|
123,564
|
|
|
$
|
2,146
|
|
Securities Available-for-Sale (In thousands)
|
|
Amortized
Cost
|
|
Gross
Unrecognized Holding Gains |
|
Gross
Unrecognized Holding Losses |
|
Estimated
Fair Value
|
||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
270,000
|
|
|
$
|
—
|
|
|
$
|
2,467
|
|
|
$
|
267,533
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
991,642
|
|
|
5,372
|
|
|
9,842
|
|
|
987,172
|
|
||||
Other equity securities
|
|
1,119
|
|
|
2,315
|
|
|
—
|
|
|
3,434
|
|
||||
Total
|
|
$
|
1,262,761
|
|
|
$
|
7,687
|
|
|
$
|
12,309
|
|
|
$
|
1,258,139
|
|
Securities Held-to-Maturity (In thousands)
|
|
Amortized
Cost
|
|
Gross
Unrecognized Holding Gains |
|
Gross
Unrecognized Holding Losses |
|
Estimated
Fair Value
|
||||||||
Obligations of states and political subdivision
|
|
$
|
188,622
|
|
|
$
|
977
|
|
|
$
|
5,148
|
|
|
$
|
184,451
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
71,211
|
|
|
1,097
|
|
|
87
|
|
|
72,221
|
|
||||
Total
|
|
$
|
259,833
|
|
|
$
|
2,074
|
|
|
$
|
5,235
|
|
|
$
|
256,672
|
|
|
|
Unrecognized loss position for less than 12 months
|
|
Unrecognized loss position for 12 months or longer
|
|
Total
|
||||||||||||||||||
(In thousands)
|
|
Fair value
|
|
Unrecognized
losses
|
|
Fair value
|
|
Unrecognized
losses |
|
Fair value
|
|
Unrecognized
losses |
||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
247,695
|
|
|
$
|
2,305
|
|
|
$
|
19,838
|
|
|
$
|
162
|
|
|
$
|
267,533
|
|
|
$
|
2,467
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
612,321
|
|
|
9,473
|
|
|
27,325
|
|
|
369
|
|
|
639,646
|
|
|
9,842
|
|
||||||
Total
|
|
$
|
860,016
|
|
|
$
|
11,778
|
|
|
$
|
47,163
|
|
|
$
|
531
|
|
|
$
|
907,179
|
|
|
$
|
12,309
|
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivision
|
|
$
|
134,909
|
|
|
$
|
5,148
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
134,909
|
|
|
$
|
5,148
|
|
U.S. Government sponsored entities' asset-backed securities
|
|
—
|
|
|
—
|
|
|
7,564
|
|
|
87
|
|
|
7,564
|
|
|
87
|
|
||||||
Total
|
|
$
|
134,909
|
|
|
$
|
5,148
|
|
|
$
|
7,564
|
|
|
$
|
87
|
|
|
$
|
142,473
|
|
|
$
|
5,235
|
|
Securities Available-for-Sale (In thousands)
|
|
Amortized
cost
|
|
Fair value
|
|
Tax equivalent yield
|
|||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities' obligations:
|
|
|
|
|
|
|
|
|
|||
Due less than one year
|
|
$
|
75,000
|
|
|
$
|
74,900
|
|
|
1.02
|
%
|
Due one through five years
|
|
195,000
|
|
|
193,786
|
|
|
1.25
|
%
|
||
Total
|
|
$
|
270,000
|
|
|
$
|
268,686
|
|
|
1.18
|
%
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
U.S. Government sponsored entities' asset-backed securities
|
|
$
|
923,424
|
|
|
$
|
923,593
|
|
|
2.09
|
%
|
Securities Held-to-Maturity (In thousands)
|
|
Amortized
cost
|
|
Fair value
|
|
Tax equivalent yield
(1)
|
|||||
Obligations of state and political subdivisions:
|
|
|
|
|
|
|
|||||
Due over ten years
|
|
$
|
260,168
|
|
|
$
|
261,946
|
|
|
4.49
|
%
|
Total
(1)
|
|
$
|
260,168
|
|
|
$
|
261,946
|
|
|
4.49
|
%
|
|
|
|
|
|
|
|
|||||
U.S. Government sponsored entities' asset-backed securities
|
|
$
|
61,840
|
|
|
$
|
62,881
|
|
|
3.23
|
%
|
|
|
June 30,
2017 |
|
December 31, 2016
|
||||
(In thousands)
|
|
|
||||||
FHLB stock
|
|
$
|
50,086
|
|
|
$
|
50,086
|
|
FRB stock
|
|
8,225
|
|
|
8,225
|
|
||
Other equity investments carried at cost
|
|
3,500
|
|
|
3,500
|
|
||
Total other investment securities
|
|
$
|
61,811
|
|
|
$
|
61,811
|
|
|
Common shares subject to PBRSUs
|
|
Nonvested at January 1, 2017
|
85,425
|
|
Granted
|
45,788
|
|
Vested
|
9,674
|
|
Forfeited
|
150
|
|
Adjustment for performance conditions of PBRSUs
(1)
|
(1,802
|
)
|
Nonvested at June 30, 2017
|
119,587
|
|
(In thousands)
|
|
|
||
Six months ending December 31, 2017
|
|
$
|
1,249
|
|
2018
|
|
2,211
|
|
|
2019
|
|
1,655
|
|
|
2020
|
|
746
|
|
|
2021
|
|
124
|
|
|
Total
|
|
$
|
5,985
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Service cost
|
|
$
|
1,317
|
|
|
$
|
1,264
|
|
|
$
|
2,634
|
|
|
$
|
2,528
|
|
Interest cost
|
|
1,271
|
|
|
1,217
|
|
|
2,542
|
|
|
2,434
|
|
||||
Expected return on plan assets
|
|
(2,863
|
)
|
|
(2,737
|
)
|
|
(5,726
|
)
|
|
(5,474
|
)
|
||||
Amortization of prior service cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Recognized net actuarial loss
|
|
144
|
|
|
193
|
|
|
288
|
|
|
386
|
|
||||
Net periodic benefit income
|
|
$
|
(131
|
)
|
|
$
|
(63
|
)
|
|
$
|
(262
|
)
|
|
$
|
(126
|
)
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Mortgage servicing rights:
|
|
|
|
|
|
|
|
|
||||||||
Carrying amount, net, beginning of period
|
|
$
|
9,321
|
|
|
$
|
8,949
|
|
|
$
|
9,266
|
|
|
$
|
9,008
|
|
Additions
|
|
521
|
|
|
555
|
|
|
875
|
|
|
871
|
|
||||
Amortization
|
|
(407
|
)
|
|
(415
|
)
|
|
(765
|
)
|
|
(790
|
)
|
||||
Changes in valuation allowance
|
|
41
|
|
|
(209
|
)
|
|
100
|
|
|
(209
|
)
|
||||
Carrying amount, net, end of period
|
|
$
|
9,476
|
|
|
$
|
8,880
|
|
|
$
|
9,476
|
|
|
$
|
8,880
|
|
|
|
|
|
|
|
|
|
|
||||||||
Valuation allowance:
|
|
|
|
|
|
|
|
|
||||||||
Beginning of period
|
|
$
|
676
|
|
|
$
|
542
|
|
|
$
|
735
|
|
|
$
|
542
|
|
Changes in valuation allowance
|
|
(41
|
)
|
|
209
|
|
|
(100
|
)
|
|
209
|
|
||||
End of period
|
|
$
|
635
|
|
|
$
|
751
|
|
|
$
|
635
|
|
|
$
|
751
|
|
•
|
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that Park has the ability to access as of the measurement date.
|
•
|
Level 2: Level 1 inputs for assets or liabilities that are not actively traded. Also consists of an observable market price for a similar asset or liability. This includes the use of “matrix pricing” to value debt securities absent the exclusive use of quoted prices.
|
•
|
Level 3: Consists of unobservable inputs that are used to measure fair value when observable market inputs are not available. This could include the use of internally developed models, financial forecasting and similar inputs.
|
Fair Value Measurements at June 30, 2017 using:
|
||||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at June 30, 2017
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of U.S. Treasury and other U.S. Government sponsored entities
|
|
$
|
—
|
|
|
$
|
268,686
|
|
|
$
|
—
|
|
|
$
|
268,686
|
|
U.S. Government sponsored entities’ asset-backed securities
|
|
—
|
|
|
923,593
|
|
|
—
|
|
|
923,593
|
|
||||
Equity securities
|
|
3,378
|
|
|
—
|
|
|
458
|
|
|
3,836
|
|
||||
Mortgage loans held for sale
|
|
—
|
|
|
12,115
|
|
|
—
|
|
|
12,115
|
|
||||
Mortgage IRLCs
|
|
—
|
|
|
223
|
|
|
—
|
|
|
223
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fair value swap
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
226
|
|
|
$
|
226
|
|
(In thousands)
|
|
Equity
Securities
|
|
Fair value
swap
|
||||
Balance at April 1, 2017
|
|
$
|
776
|
|
|
$
|
(226
|
)
|
Total gains/(losses)
|
|
|
|
|
|
|
||
Transfers out of Level 3
(1)
|
|
(330
|
)
|
|
—
|
|
||
Included in other comprehensive income
|
|
12
|
|
|
—
|
|
||
Balance at June 30, 2017
|
|
$
|
458
|
|
|
$
|
(226
|
)
|
|
|
|
|
|
||||
Balance at April 1, 2016
|
|
$
|
813
|
|
|
$
|
(226
|
)
|
Total gains/(losses)
|
|
|
|
|
|
|
||
Included in other comprehensive income
|
|
8
|
|
|
—
|
|
||
Balance at June 30, 2016
|
|
$
|
821
|
|
|
$
|
(226
|
)
|
(In thousands)
|
|
Equity
Securities
|
|
Fair value
swap
|
||||
Balance at January 1, 2017
|
|
$
|
790
|
|
|
$
|
(226
|
)
|
Total gains/(losses)
|
|
|
|
|
|
|
||
Transfers out of Level 3
(1)
|
|
(346
|
)
|
|
—
|
|
||
Included in other comprehensive income
|
|
14
|
|
|
—
|
|
||
Balance at June 30, 2017
|
|
$
|
458
|
|
|
$
|
(226
|
)
|
|
|
|
|
|
||||
Balance at January 1, 2016
|
|
$
|
769
|
|
|
$
|
(226
|
)
|
Total gains/(losses)
|
|
|
|
|
|
|
||
Included in other comprehensive income
|
|
52
|
|
|
—
|
|
||
Balance at June 30, 2016
|
|
$
|
821
|
|
|
$
|
(226
|
)
|
•
|
Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management generally applies a
15%
discount to real estate appraised values which management expects will cover all disposition costs (including selling costs). This
15%
discount is based on historical discounts to appraised values on sold OREO properties.
|
•
|
Income approach appraisals typically incorporate the annual net operating income of the business divided by an appropriate capitalization rate, as determined by the appraiser. Management generally applies a
15%
discount to income approach appraised values which management expects will cover all disposition costs (including selling costs).
|
•
|
Lot development loan appraisals are typically performed using a discounted cash flow analysis. Appraisers determine an anticipated absorption period and a discount rate that takes into account an investor’s required rate of return based on recent comparable sales. Management generally applies a
6%
discount to lot development appraised values, which is an additional discount above the net present value calculation included in the appraisal, to account for selling costs.
|
Fair Value Measurements at June 30, 2017 using:
|
||||||||||||||||
(In thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance at June 30, 2017
|
||||||||
Impaired loans recorded at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial real estate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,900
|
|
|
$
|
2,900
|
|
Construction real estate
|
|
—
|
|
|
—
|
|
|
185
|
|
|
185
|
|
||||
Residential real estate
|
|
—
|
|
|
—
|
|
|
882
|
|
|
882
|
|
||||
Total impaired loans recorded at fair value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,967
|
|
|
$
|
3,967
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
|
$
|
—
|
|
|
$
|
7,058
|
|
|
$
|
—
|
|
|
$
|
7,058
|
|
|
|
|
|
|
|
|
|
|
||||||||
OREO:
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
2,635
|
|
|
2,635
|
|
||||
Construction real estate
|
|
—
|
|
|
—
|
|
|
3,331
|
|
|
3,331
|
|
||||
Residential real estate
|
|
—
|
|
|
—
|
|
|
1,087
|
|
|
1,087
|
|
||||
Total OREO recorded at fair value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,053
|
|
|
$
|
7,053
|
|
|
|
June 30, 2017
|
||||||||||||||
(In thousands)
|
|
Recorded Investment
|
|
Prior Charge-Offs
|
|
Specific Valuation Allowance
|
|
Carrying Balance
|
||||||||
Impaired loans recorded at fair value
|
|
$
|
4,329
|
|
|
$
|
2,228
|
|
|
$
|
362
|
|
|
$
|
3,967
|
|
Remaining impaired loans
|
|
68,815
|
|
|
6,902
|
|
|
3,783
|
|
|
65,032
|
|
||||
Total impaired loans
|
|
$
|
73,144
|
|
|
$
|
9,130
|
|
|
$
|
4,145
|
|
|
$
|
68,999
|
|
|
|
December 31, 2016
|
||||||||||||||
(In thousands)
|
|
Recorded Investment
|
|
Prior Charge-Offs
|
|
Specific Valuation Allowance
|
|
Carrying Balance
|
||||||||
Impaired loans recorded at fair value
|
|
$
|
6,379
|
|
|
$
|
3,681
|
|
|
$
|
396
|
|
|
$
|
5,983
|
|
Remaining impaired loans
|
|
64,047
|
|
|
21,262
|
|
|
152
|
|
|
63,895
|
|
||||
Total impaired loans
|
|
$
|
70,426
|
|
|
$
|
24,943
|
|
|
$
|
548
|
|
|
$
|
69,878
|
|
June 30, 2017
|
||||||||||
(In thousands)
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average)
|
||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
$
|
2,900
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 90.0% (20.8%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
9.2% - 11.0% (10.3%)
|
||
|
|
|
|
Cost approach
|
|
Accumulated depreciation
|
|
90.1% (90.1%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate
|
|
$
|
185
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 4.8% (2.5%)
|
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
882
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.3% - 60.3% (14.6%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
10.5% (10.5%)
|
||
|
|
|
|
|
|
|
|
|
||
Other real estate owned:
|
|
|
|
|
|
|
|
|
||
Commercial real estate
|
|
$
|
2,635
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 68.4% (28.9%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
12.0% - 13.0% (12.9%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate
|
|
$
|
3,331
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 90.0% (24.7%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
15.0% (15.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
1,087
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.6% - 79.7% (28.8%)
|
Balance at December 31, 2016
|
||||||||||
(In thousands)
|
|
Fair Value
|
|
Valuation Technique
|
|
Unobservable Input(s)
|
|
Range
(Weighted Average)
|
||
Impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
$
|
3,057
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 90.0% (20.2%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
9.0% - 10.6% (10.1%)
|
||
|
|
|
|
Cost approach
|
|
Accumulated depreciation
|
|
17.0% - 18.0% (17.8%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate
|
|
$
|
541
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 11.1% (1.6%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
10.0% (10.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
2,385
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.3% - 110.0% (17.0%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
10.0% (10.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Other real estate owned:
|
|
|
|
|
|
|
|
|
||
Commercial real estate
|
|
$
|
2,644
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 68.4% (26.5%)
|
|
|
|
|
Income approach
|
|
Capitalization rate
|
|
13.0% - 14.0% (13.1%)
|
||
|
|
|
|
|
|
|
|
|
||
Construction real estate
|
|
$
|
3,322
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
0.0% - 90.0% (24.7%)
|
|
|
|
|
Bulk sale approach
|
|
Discount rate
|
|
15.0% (15.0%)
|
||
|
|
|
|
|
|
|
|
|
||
Residential real estate
|
|
$
|
931
|
|
|
Sales comparison approach
|
|
Adj to comparables
|
|
3.2% - 79.7% (30.6%)
|
|
|
June 30, 2017
|
||||||||||||||||||
|
|
|
|
Fair Value Measurements
|
||||||||||||||||
(In thousands)
|
|
Carrying value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total fair value
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and money market instruments
|
|
$
|
411,079
|
|
|
$
|
411,079
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
411,079
|
|
Investment securities
(1)
|
|
1,518,123
|
|
|
3,378
|
|
|
1,517,106
|
|
|
458
|
|
|
1,520,942
|
|
|||||
Accrued interest receivable - securities
|
|
4,679
|
|
|
—
|
|
|
4,679
|
|
|
—
|
|
|
4,679
|
|
|||||
Accrued interest receivable - loans
|
|
14,595
|
|
|
—
|
|
|
—
|
|
|
14,595
|
|
|
14,595
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale
|
|
12,115
|
|
|
—
|
|
|
12,115
|
|
|
—
|
|
|
12,115
|
|
|||||
Mortgage IRLCs
|
|
223
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
223
|
|
|||||
Impaired loans carried at fair value
|
|
3,967
|
|
|
—
|
|
|
—
|
|
|
3,967
|
|
|
3,967
|
|
|||||
Other loans, net
|
|
5,295,310
|
|
|
—
|
|
|
—
|
|
|
5,273,219
|
|
|
5,273,219
|
|
|||||
Loans receivable, net
|
|
$
|
5,311,615
|
|
|
$
|
—
|
|
|
$
|
12,338
|
|
|
$
|
5,277,186
|
|
|
$
|
5,289,524
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest bearing checking accounts
|
|
$
|
1,545,279
|
|
|
$
|
1,545,279
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,545,279
|
|
Interest bearing transactions accounts
|
|
1,299,951
|
|
|
1,229,951
|
|
|
—
|
|
|
—
|
|
|
1,229,951
|
|
|||||
Savings accounts
|
|
2,001,231
|
|
|
2,001,231
|
|
|
—
|
|
|
—
|
|
|
2,001,231
|
|
|||||
Time deposits
|
|
1,111,094
|
|
|
—
|
|
|
1,113,903
|
|
|
—
|
|
|
1,113,903
|
|
|||||
Other
|
|
4,021
|
|
|
4,021
|
|
|
—
|
|
|
—
|
|
|
4,021
|
|
|||||
Total deposits
|
|
$
|
5,961,576
|
|
|
$
|
4,780,482
|
|
|
$
|
1,113,903
|
|
|
$
|
—
|
|
|
$
|
5,894,385
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
$
|
183,788
|
|
|
$
|
—
|
|
|
$
|
183,788
|
|
|
$
|
—
|
|
|
$
|
183,788
|
|
Long-term debt
|
|
847,388
|
|
|
—
|
|
|
860,590
|
|
|
—
|
|
|
860,590
|
|
|||||
Subordinated notes
|
|
15,000
|
|
|
—
|
|
|
12,034
|
|
|
—
|
|
|
12,034
|
|
|||||
Accrued interest payable – deposits
|
|
990
|
|
|
50
|
|
|
940
|
|
|
—
|
|
|
990
|
|
|||||
Accrued interest payable – debt/borrowings
|
|
1,404
|
|
|
278
|
|
|
1,404
|
|
|
—
|
|
|
1,682
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fair value swap
|
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
226
|
|
|
$
|
226
|
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
|
|
Fair Value Measurements
|
||||||||||||||||
(In thousands)
|
|
Carrying value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total fair value
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and money market instruments
|
|
$
|
146,466
|
|
|
$
|
146,466
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
146,466
|
|
Investment securities
(1)
|
|
1,517,972
|
|
|
2,644
|
|
|
1,511,377
|
|
|
790
|
|
|
1,514,811
|
|
|||||
Accrued interest receivable - securities
|
|
3,849
|
|
|
—
|
|
|
3,849
|
|
|
—
|
|
|
3,849
|
|
|||||
Accrued interest receivable - loans
|
|
14,973
|
|
|
—
|
|
|
—
|
|
|
14,973
|
|
|
14,973
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held for sale
|
|
10,413
|
|
|
—
|
|
|
10,413
|
|
|
—
|
|
|
10,413
|
|
|||||
Mortgage IRLCs
|
|
124
|
|
|
—
|
|
|
124
|
|
|
—
|
|
|
124
|
|
|||||
Impaired loans carried at fair value
|
|
5,983
|
|
|
—
|
|
|
—
|
|
|
5,983
|
|
|
5,983
|
|
|||||
Other loans, net
|
|
5,204,713
|
|
|
—
|
|
|
—
|
|
|
5,161,919
|
|
|
5,161,919
|
|
|||||
Loans receivable, net
|
|
$
|
5,221,233
|
|
|
$
|
—
|
|
|
$
|
10,537
|
|
|
$
|
5,167,902
|
|
|
$
|
5,178,439
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Noninterest bearing checking accounts
|
|
$
|
1,523,417
|
|
|
$
|
1,523,417
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,523,417
|
|
Interest bearing transactions accounts
|
|
1,174,448
|
|
|
1,174,448
|
|
|
—
|
|
|
—
|
|
|
1,174,448
|
|
|||||
Savings accounts
|
|
1,704,920
|
|
|
1,704,920
|
|
|
—
|
|
|
—
|
|
|
1,704,920
|
|
|||||
Time deposits
|
|
1,117,870
|
|
|
—
|
|
|
1,122,598
|
|
|
—
|
|
|
1,122,598
|
|
|||||
Other
|
|
1,301
|
|
|
1,301
|
|
|
—
|
|
|
—
|
|
|
1,301
|
|
|||||
Total deposits
|
|
$
|
5,521,956
|
|
|
$
|
4,404,086
|
|
|
$
|
1,122,598
|
|
|
$
|
—
|
|
|
$
|
5,526,684
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term borrowings
|
|
$
|
394,795
|
|
|
$
|
—
|
|
|
$
|
394,795
|
|
|
$
|
—
|
|
|
$
|
394,795
|
|
Long-term debt
|
|
694,281
|
|
|
—
|
|
|
712,958
|
|
|
—
|
|
|
712,958
|
|
|||||
Subordinated notes
|
|
45,000
|
|
|
—
|
|
|
40,903
|
|
|
—
|
|
|
40,903
|
|
|||||
Accrued interest payable – deposits
|
|
900
|
|
|
82
|
|
|
818
|
|
|
—
|
|
|
900
|
|
|||||
Accrued interest payable – debt/borrowings
|
|
1,251
|
|
|
1
|
|
|
1,250
|
|
|
—
|
|
|
1,251
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fair value swap
|
|
$
|
226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
226
|
|
|
$
|
226
|
|
(in thousands)
|
|
Changes in pension plan assets and benefit obligations
|
|
Unrecognized gains and losses on available for sale securities
|
|
Total
|
|||||||
Beginning balance at April 1, 2017
|
|
$
|
(14,740
|
)
|
|
$
|
(1,983
|
)
|
|
$
|
(16,723
|
)
|
|
|
Other comprehensive income before reclassifications
|
|
—
|
|
|
3,011
|
|
|
3,011
|
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net current period other comprehensive income
|
|
—
|
|
|
3,011
|
|
|
3,011
|
|
||||
Ending balance at June 30, 2017
|
|
$
|
(14,740
|
)
|
|
$
|
1,028
|
|
|
$
|
(13,712
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Beginning balance at April 1, 2016
|
|
$
|
(15,351
|
)
|
|
$
|
11,388
|
|
|
$
|
(3,963
|
)
|
|
|
Other comprehensive income before reclassifications
|
|
—
|
|
|
4,352
|
|
|
4,352
|
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net current period other comprehensive income
|
|
—
|
|
|
4,352
|
|
|
4,352
|
|
||||
Ending balance at June 30, 2016
|
|
$
|
(15,351
|
)
|
|
$
|
15,740
|
|
|
$
|
389
|
|
(in thousands)
|
|
Changes in pension plan assets and benefit obligations
|
|
Unrecognized gains and losses on available for sale securities
|
|
Total
|
|||||||
Beginning balance at January 1, 2017
|
|
$
|
(14,740
|
)
|
|
$
|
(3,005
|
)
|
|
$
|
(17,745
|
)
|
|
|
Other comprehensive income before reclassifications
|
|
—
|
|
|
4,033
|
|
|
4,033
|
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net current period other comprehensive income
|
|
—
|
|
|
4,033
|
|
|
4,033
|
|
||||
Ending balance at June 30, 2017
|
|
$
|
(14,740
|
)
|
|
$
|
1,028
|
|
|
$
|
(13,712
|
)
|
|
|
|
|
|
|
|
|
|
||||||
Beginning balance at January 1, 2016
|
|
$
|
(15,351
|
)
|
|
$
|
(292
|
)
|
|
$
|
(15,643
|
)
|
|
|
Other comprehensive income before reclassifications
|
|
—
|
|
|
16,032
|
|
|
16,032
|
|
|||
|
Amounts reclassified from accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net current period other comprehensive income
|
|
—
|
|
|
16,032
|
|
|
16,032
|
|
||||
Ending balance at June 30, 2016
|
|
$
|
(15,351
|
)
|
|
$
|
15,740
|
|
|
$
|
389
|
|
(in thousands)
|
|
June 30, 2017
|
December 31, 2016
|
||||
Affordable housing tax credit investments
|
|
$
|
56,219
|
|
$
|
52,947
|
|
Unfunded commitments
|
|
21,282
|
|
14,282
|
|
|
|
June 30, 2017
|
||||||||||||||||||
(in thousands)
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
|
Overnight and Continuous
|
|
Up to 30 days
|
|
30 - 90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
U.S. government and agency securities
|
|
$
|
182,684
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
301,104
|
|
|
$
|
483,788
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31, 2016
|
||||||||||||||||||
(in thousands)
|
|
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||
|
|
Overnight and Continuous
|
|
Up to 30 days
|
|
30 - 90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
U.S. government and agency securities
|
|
$
|
208,691
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
301,104
|
|
|
$
|
509,795
|
|
•
|
the interest rate used to determine the present value of liabilities (discount rate);
|
•
|
certain employee-related factors, such as turnover, retirement age and mortality;
|
•
|
the expected return on assets in our funded plan; and
|
•
|
for pension expense, the rate of salary increases where benefits are based on earnings.
|
(In thousands)
|
Q2 2017
|
Q1 2017
|
Six months YTD 2017
|
Six months YTD 2016
|
2016
|
2015
|
||||||||||||
Net interest income
|
$
|
57,822
|
|
$
|
57,480
|
|
$
|
115,302
|
|
$
|
113,161
|
|
$
|
227,576
|
|
$
|
220,879
|
|
Provision for loan losses
|
4,574
|
|
720
|
|
5,294
|
|
2,895
|
|
2,611
|
|
7,665
|
|
||||||
Other income
|
19,179
|
|
17,711
|
|
36,890
|
|
35,731
|
|
74,803
|
|
75,188
|
|
||||||
Other expense
|
43,877
|
|
43,803
|
|
87,680
|
|
84,091
|
|
177,562
|
|
167,476
|
|
||||||
Income before income taxes
|
$
|
28,550
|
|
$
|
30,668
|
|
$
|
59,218
|
|
$
|
61,906
|
|
$
|
122,206
|
|
$
|
120,926
|
|
Federal income tax expense
|
8,387
|
|
9,182
|
|
17,569
|
|
19,084
|
|
37,755
|
|
36,581
|
|
||||||
Net income
|
$
|
20,163
|
|
$
|
21,486
|
|
$
|
41,649
|
|
$
|
42,822
|
|
$
|
84,451
|
|
$
|
84,345
|
|
|
Six months YTD 2017
|
|
Six months YTD 2016
|
|
2016
|
||||||||||||||||||||||||
(In thousands)
|
PNB as reported
|
Adjustments
(1)
|
PNB as adjusted
|
|
PNB as reported
|
Adjustments
(1)
|
PNB as adjusted
|
|
PNB as reported
|
Adjustments
(1)
|
PNB as adjusted
|
||||||||||||||||||
Net interest income
|
$
|
115,302
|
|
$
|
—
|
|
$
|
115,302
|
|
|
$
|
113,161
|
|
$
|
649
|
|
$
|
112,512
|
|
|
$
|
227,576
|
|
$
|
801
|
|
$
|
226,775
|
|
Provision for (recovery of) loan losses
|
5,294
|
|
(5
|
)
|
5,299
|
|
|
2,895
|
|
(1,784
|
)
|
4,679
|
|
|
2,611
|
|
(3,118
|
)
|
5,729
|
|
|||||||||
Other income (loss)
|
36,890
|
|
24
|
|
36,866
|
|
|
35,731
|
|
(253
|
)
|
35,984
|
|
|
74,803
|
|
194
|
|
74,609
|
|
|||||||||
Other expense
|
87,680
|
|
222
|
|
87,458
|
|
|
84,091
|
|
330
|
|
83,761
|
|
|
177,562
|
|
662
|
|
176,900
|
|
|||||||||
Income (loss) before income taxes
|
$
|
59,218
|
|
$
|
(193
|
)
|
$
|
59,411
|
|
|
$
|
61,906
|
|
$
|
1,850
|
|
$
|
60,056
|
|
|
$
|
122,206
|
|
$
|
3,451
|
|
$
|
118,755
|
|
Federal income tax expense (benefit)
|
17,569
|
|
(57
|
)
|
17,626
|
|
|
19,084
|
|
571
|
|
18,513
|
|
|
37,755
|
|
1,066
|
|
36,689
|
|
|||||||||
Net income (expense)
|
$
|
41,649
|
|
$
|
(136
|
)
|
$
|
41,785
|
|
|
$
|
42,822
|
|
$
|
1,279
|
|
$
|
41,543
|
|
|
$
|
84,451
|
|
$
|
2,385
|
|
$
|
82,066
|
|
(In thousands)
|
June 30, 2017
|
March 31, 2017
|
December 31, 2016
|
June 30, 2016
|
|
% change from 3/31/17
|
% change from 12/31/16
|
% change from 06/30/16
|
|||||||||||
Loans
|
$
|
5,329,172
|
|
$
|
5,276,643
|
|
$
|
5,234,828
|
|
$
|
5,088,014
|
|
|
1.00
|
%
|
1.80
|
%
|
4.74
|
%
|
Allowance for loan losses
|
51,699
|
|
47,983
|
|
48,782
|
|
56,293
|
|
|
7.74
|
%
|
5.98
|
%
|
(8.16
|
)%
|
||||
Net loans
|
5,277,473
|
|
5,228,660
|
|
5,186,046
|
|
5,031,721
|
|
|
0.93
|
%
|
1.76
|
%
|
4.88
|
%
|
||||
Investment securities
|
1,573,092
|
|
1,559,241
|
|
1,573,320
|
|
1,545,823
|
|
|
0.89
|
%
|
(0.01
|
)%
|
1.76
|
%
|
||||
Total assets
|
7,754,898
|
|
7,667,288
|
|
7,389,538
|
|
7,351,293
|
|
|
1.14
|
%
|
4.94
|
%
|
5.49
|
%
|
||||
Total deposits
|
6,037,148
|
|
6,022,912
|
|
5,630,199
|
|
5,727,070
|
|
|
0.24
|
%
|
7.23
|
%
|
5.41
|
%
|
||||
Average assets
(1)
|
7,571,295
|
|
7,481,810
|
|
7,337,438
|
|
7,314,230
|
|
|
1.20
|
%
|
3.19
|
%
|
3.51
|
%
|
||||
Efficiency ratio
|
56.77
|
%
|
57.44
|
%
|
58.26
|
%
|
56.10
|
%
|
|
(1.17
|
)%
|
(2.56
|
)%
|
1.19
|
%
|
||||
Return on average assets
(2)
|
1.11
|
%
|
1.16
|
%
|
1.15
|
%
|
1.18
|
%
|
|
(4.31
|
)%
|
(3.48
|
)%
|
(5.93
|
)%
|
(In thousands)
|
Q2 2017
|
Q1 2017
|
Six months YTD 2017
|
Six months YTD 2016
|
2016
|
2015
|
||||||||||||
Net interest income
|
$
|
1,491
|
|
$
|
1,478
|
|
$
|
2,969
|
|
$
|
2,944
|
|
$
|
5,874
|
|
$
|
6,588
|
|
Provision for loan losses
|
373
|
|
437
|
|
810
|
|
1,971
|
|
1,887
|
|
1,415
|
|
||||||
Other (loss) income
|
(8
|
)
|
—
|
|
(8
|
)
|
—
|
|
(1
|
)
|
2
|
|
||||||
Other expense
|
825
|
|
736
|
|
1,561
|
|
2,832
|
|
4,457
|
|
2,984
|
|
||||||
Income (loss) before income taxes
|
$
|
285
|
|
$
|
305
|
|
$
|
590
|
|
$
|
(1,859
|
)
|
$
|
(471
|
)
|
$
|
2,191
|
|
Federal income tax expense (benefit)
|
99
|
|
107
|
|
206
|
|
(649
|
)
|
(164
|
)
|
768
|
|
||||||
Net income (loss)
|
$
|
186
|
|
$
|
198
|
|
$
|
384
|
|
$
|
(1,210
|
)
|
$
|
(307
|
)
|
$
|
1,423
|
|
(In thousands)
|
June 30, 2017
|
December 31, 2016
|
June 30, 2016
|
|
% change from 12/31/16
|
% change from 06/30/16
|
||||||||
Loans
|
$
|
34,179
|
|
$
|
32,661
|
|
$
|
32,883
|
|
|
4.65
|
%
|
3.94
|
%
|
Allowance for loan losses
|
2,123
|
|
1,842
|
|
2,406
|
|
|
15.26
|
%
|
(11.76
|
)%
|
|||
Net loans
|
32,056
|
|
30,819
|
|
30,477
|
|
|
4.01
|
%
|
5.18
|
%
|
|||
Total assets
|
33,860
|
|
32,268
|
|
32,546
|
|
|
4.93
|
%
|
4.04
|
%
|
|||
Average assets
(1)
|
33,691
|
|
33,370
|
|
34,522
|
|
|
0.96
|
%
|
(2.41
|
)%
|
|||
Return on average assets
(2)
|
2.29
|
%
|
(0.92
|
)%
|
(7.05
|
)%
|
|
N.M.
|
|
N.M.
|
|
(In thousands)
|
Q2 2017
|
Q1 2017
|
Six months YTD 2017
|
Six months YTD 2016
|
2016
|
2015
|
||||||||||||
Net interest income (expense)
|
$
|
183
|
|
$
|
(207
|
)
|
$
|
(24
|
)
|
$
|
(33
|
)
|
$
|
(138
|
)
|
$
|
239
|
|
Provision for loan losses
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Other income (loss)
|
101
|
|
(204
|
)
|
(103
|
)
|
248
|
|
955
|
|
513
|
|
||||||
Other expense
|
2,166
|
|
2,147
|
|
4,313
|
|
5,546
|
|
9,731
|
|
9,972
|
|
||||||
Loss before income tax benefit
|
$
|
(1,882
|
)
|
$
|
(2,558
|
)
|
$
|
(4,440
|
)
|
$
|
(5,331
|
)
|
$
|
(8,914
|
)
|
$
|
(9,220
|
)
|
Federal income tax benefit
|
(963
|
)
|
(1,332
|
)
|
(2,295
|
)
|
(2,428
|
)
|
(4,357
|
)
|
(4,671
|
)
|
||||||
Net loss
|
$
|
(919
|
)
|
$
|
(1,226
|
)
|
$
|
(2,145
|
)
|
$
|
(2,903
|
)
|
$
|
(4,557
|
)
|
$
|
(4,549
|
)
|
(In thousands)
|
Q2 2017
|
Q1 2017
|
Six months YTD 2017
|
Six months YTD 2016
|
2016
|
2015
|
||||||||||||
Net interest income (expense)
|
$
|
282
|
|
$
|
201
|
|
$
|
483
|
|
$
|
1,232
|
|
$
|
4,774
|
|
$
|
(74
|
)
|
Recovery of loan losses
|
(366
|
)
|
(281
|
)
|
(647
|
)
|
(1,319
|
)
|
(9,599
|
)
|
(4,090
|
)
|
||||||
Other (loss) income
|
(21
|
)
|
—
|
|
(21
|
)
|
146
|
|
2,974
|
|
1,848
|
|
||||||
Other expense
|
1,238
|
|
776
|
|
2,014
|
|
2,736
|
|
7,273
|
|
6,182
|
|
||||||
(Loss) income before income taxes
|
$
|
(611
|
)
|
$
|
(294
|
)
|
$
|
(905
|
)
|
$
|
(39
|
)
|
$
|
10,074
|
|
$
|
(318
|
)
|
Federal income tax (benefit) expense
|
(213
|
)
|
(103
|
)
|
(316
|
)
|
(14
|
)
|
3,526
|
|
(111
|
)
|
||||||
Net (loss) income
|
$
|
(398
|
)
|
$
|
(191
|
)
|
$
|
(589
|
)
|
$
|
(25
|
)
|
$
|
6,548
|
|
$
|
(207
|
)
|
(In thousands)
|
Q2 2017
|
Q1 2017
|
Six months YTD 2017
|
Six months YTD 2016
|
2016
|
2015
|
||||||||||||
Net interest income
|
$
|
59,778
|
|
$
|
58,952
|
|
$
|
118,730
|
|
$
|
117,304
|
|
$
|
238,086
|
|
$
|
227,632
|
|
Provision for (recovery of) loan losses
|
4,581
|
|
876
|
|
5,457
|
|
3,547
|
|
(5,101
|
)
|
4,990
|
|
||||||
Other income
|
19,251
|
|
17,507
|
|
36,758
|
|
36,125
|
|
78,731
|
|
77,551
|
|
||||||
Other expense
|
48,106
|
|
47,462
|
|
95,568
|
|
95,205
|
|
199,023
|
|
186,614
|
|
||||||
Income before income taxes
|
$
|
26,342
|
|
$
|
28,121
|
|
$
|
54,463
|
|
$
|
54,677
|
|
$
|
122,895
|
|
$
|
113,579
|
|
Federal income taxes
|
7,310
|
|
7,854
|
|
15,164
|
|
15,993
|
|
36,760
|
|
32,567
|
|
||||||
Net income
|
$
|
19,032
|
|
$
|
20,267
|
|
$
|
39,299
|
|
$
|
38,684
|
|
$
|
86,135
|
|
$
|
81,012
|
|
|
|
Three months ended
June 30, 2017 |
|
Three months ended
June 30, 2016 |
||||||||||||||
(In thousands)
|
|
Average
balance
|
Interest
|
Tax
equivalent
yield/cost
|
|
Average
balance
|
Interest
|
Tax
equivalent yield/cost |
||||||||||
Loans
(1)
|
|
$
|
5,327,114
|
|
$
|
61,512
|
|
4.63
|
%
|
|
$
|
5,083,802
|
|
$
|
58,637
|
|
4.64
|
%
|
Taxable investments
|
|
1,325,807
|
|
6,892
|
|
2.09
|
%
|
|
1,439,330
|
|
7,770
|
|
2.17
|
%
|
||||
Tax-exempt investments
(2)
|
|
226,579
|
|
2,559
|
|
4.53
|
%
|
|
81,078
|
|
910
|
|
4.51
|
%
|
||||
Money market instruments
|
|
265,791
|
|
698
|
|
1.05
|
%
|
|
196,226
|
|
249
|
|
0.51
|
%
|
||||
Interest earning assets
|
|
$
|
7,145,291
|
|
$
|
71,661
|
|
4.02
|
%
|
|
$
|
6,800,436
|
|
$
|
67,566
|
|
4.00
|
%
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing deposits
|
|
$
|
4,370,710
|
|
4,748
|
|
0.44
|
%
|
|
$
|
4,175,344
|
|
3,322
|
|
0.32
|
%
|
||
Short-term borrowings
|
|
202,352
|
|
184
|
|
0.37
|
%
|
|
212,540
|
|
82
|
|
0.16
|
%
|
||||
Long-term debt
|
|
801,153
|
|
5,766
|
|
2.89
|
%
|
|
785,655
|
|
6,122
|
|
3.13
|
%
|
||||
Interest bearing liabilities
|
|
$
|
5,374,215
|
|
$
|
10,698
|
|
0.80
|
%
|
|
$
|
5,173,539
|
|
$
|
9,526
|
|
0.74
|
%
|
Excess interest earning assets
|
|
$
|
1,771,076
|
|
|
|
|
|
$
|
1,626,897
|
|
|
|
|
||||
Tax equivalent net interest income
|
|
|
$
|
60,963
|
|
|
|
|
$
|
58,040
|
|
|
||||||
Net interest spread
|
|
|
|
|
3.22
|
%
|
|
|
|
|
3.26
|
%
|
||||||
Net interest margin
|
|
|
|
|
3.42
|
%
|
|
|
|
|
3.43
|
%
|
|
|
Three months ended
June 30, 2017 |
|
Three months ended
June 30, 2016 |
||||||||||
(In thousands)
|
|
Average
balance
|
|
Tax
equivalent yield |
|
Average
balance
|
|
Tax
equivalent yield |
||||||
Home equity
|
|
$
|
210,479
|
|
|
4.39
|
%
|
|
$
|
211,583
|
|
|
4.05
|
%
|
Installment and indirect loans
|
|
1,232,396
|
|
|
4.94
|
%
|
|
1,028,862
|
|
|
5.42
|
%
|
||
Real estate loans
|
|
1,200,915
|
|
|
3.83
|
%
|
|
1,237,633
|
|
|
3.79
|
%
|
||
Commercial loans
(1)
|
|
2,678,602
|
|
|
4.85
|
%
|
|
2,600,184
|
|
|
4.77
|
%
|
||
Other
|
|
4,722
|
|
|
12.96
|
%
|
|
5,540
|
|
|
11.94
|
%
|
||
Total loans and leases before allowance
|
|
$
|
5,327,114
|
|
|
4.63
|
%
|
|
$
|
5,083,802
|
|
|
4.64
|
%
|
|
|
Three months ended
June 30, 2017 |
|
Three months ended
June 30, 2016 |
||||||||||
(In thousands)
|
|
Average
balance
|
|
Cost of funds
|
|
Average
balance
|
|
Cost of funds
|
||||||
Transaction accounts
|
|
$
|
1,308,516
|
|
|
0.25
|
%
|
|
$
|
1,225,379
|
|
|
0.10
|
%
|
Savings deposits and clubs
|
|
1,935,474
|
|
|
0.31
|
%
|
|
1,695,670
|
|
|
0.15
|
%
|
||
Time deposits
|
|
1,126,720
|
|
|
0.87
|
%
|
|
1,254,295
|
|
|
0.77
|
%
|
||
Total interest bearing deposits
|
|
$
|
4,370,710
|
|
|
0.44
|
%
|
|
$
|
4,175,344
|
|
|
0.32
|
%
|
|
|
Six months ended
June 30, 2017 |
|
Six months ended
June 30, 2016 |
||||||||||||||
(In thousands)
|
|
Average
balance
|
Interest
|
Tax
equivalent
yield/cost
|
|
Average
balance
|
Interest
|
Tax
equivalent yield/cost |
||||||||||
Loans
(1)
|
|
$
|
5,302,961
|
|
$
|
121,697
|
|
4.63
|
%
|
|
$
|
5,066,565
|
|
$
|
118,933
|
|
4.72
|
%
|
Taxable investments
|
|
1,347,896
|
|
14,030
|
|
2.10
|
%
|
|
1,470,549
|
|
16,379
|
|
2.24
|
%
|
||||
Tax-exempt investments
(2)
|
|
213,155
|
|
4,805
|
|
4.55
|
%
|
|
65,440
|
|
1,483
|
|
4.56
|
%
|
||||
Money market instruments
|
|
192,800
|
|
947
|
|
0.99
|
%
|
|
206,805
|
|
523
|
|
0.51
|
%
|
||||
Interest earning assets
|
|
$
|
7,056,812
|
|
$
|
141,479
|
|
4.04
|
%
|
|
$
|
6,809,359
|
|
$
|
137,318
|
|
4.06
|
%
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest bearing deposits
|
|
$
|
4,290,900
|
|
8,523
|
|
0.40
|
%
|
|
$
|
4,173,605
|
|
6,533
|
|
0.31
|
%
|
||
Short-term borrowings
|
|
241,201
|
|
419
|
|
0.35
|
%
|
|
250,623
|
|
246
|
|
0.20
|
%
|
||||
Long-term debt
|
|
777,804
|
|
11,559
|
|
3.00
|
%
|
|
784,882
|
|
12,236
|
|
3.14
|
%
|
||||
Interest bearing liabilities
|
|
$
|
5,309,905
|
|
$
|
20,501
|
|
0.78
|
%
|
|
$
|
5,209,110
|
|
$
|
19,015
|
|
0.73
|
%
|
Excess interest earning assets
|
|
$
|
1,746,907
|
|
|
|
|
|
$
|
1,600,249
|
|
|
|
|
||||
Tax equivalent net interest income
|
|
|
$
|
120,978
|
|
|
|
|
$
|
118,303
|
|
|
||||||
Net interest spread
|
|
|
|
|
3.26
|
%
|
|
|
|
|
3.33
|
%
|
||||||
Net interest margin
|
|
|
|
|
3.46
|
%
|
|
|
|
|
3.49
|
%
|
|
|
Six months ended
June 30, 2017 |
|
Six months ended
June 30, 2016 |
||||||||||
(In thousands)
|
|
Average
balance
|
|
Tax
equivalent yield |
|
Average
balance
|
|
Tax
equivalent yield |
||||||
Home equity
|
|
$
|
211,618
|
|
|
4.29
|
%
|
|
$
|
211,113
|
|
|
4.05
|
%
|
Installment and indirect loans
|
|
1,208,701
|
|
|
4.97
|
%
|
|
1,016,349
|
|
|
5.44
|
%
|
||
Real estate loans
|
|
1,204,936
|
|
|
3.83
|
%
|
|
1,239,307
|
|
|
3.78
|
%
|
||
Commercial loans
(1)
|
|
2,672,223
|
|
|
4.85
|
%
|
|
2,593,924
|
|
|
4.92
|
%
|
||
Other
|
|
5,483
|
|
|
11.35
|
%
|
|
5,872
|
|
|
11.57
|
%
|
||
Total loans and leases before allowance
|
|
$
|
5,302,961
|
|
|
4.63
|
%
|
|
$
|
5,066,565
|
|
|
4.72
|
%
|
(Dollars in thousands)
|
|
Loans
(1)
|
|
Investments
(2)
|
|
Money Market
Instruments
|
|
Total
|
||||
2014 - year
|
|
4.84
|
%
|
|
2.58
|
%
|
|
0.25
|
%
|
|
4.19
|
%
|
2015 - year
|
|
4.66
|
%
|
|
2.46
|
%
|
|
0.26
|
%
|
|
3.95
|
%
|
2016 - year
|
|
4.74
|
%
|
|
2.30
|
%
|
|
0.51
|
%
|
|
4.08
|
%
|
2017 - first six months
|
|
4.63
|
%
|
|
2.43
|
%
|
|
0.99
|
%
|
|
4.04
|
%
|
|
|
Six months ended
June 30, 2017 |
|
Six months ended
June 30, 2016 |
||||||||||
(In thousands)
|
|
Average
balance
|
|
Cost of funds
|
|
Average
balance
|
|
Cost of funds
|
||||||
Transaction accounts
|
|
$
|
1,280,645
|
|
|
0.21
|
%
|
|
$
|
1,228,928
|
|
|
0.09
|
%
|
Savings deposits and clubs
|
|
1,897,580
|
|
|
0.27
|
%
|
|
1,680,378
|
|
|
0.14
|
%
|
||
Time deposits
|
|
1,112,675
|
|
|
0.84
|
%
|
|
1,264,299
|
|
|
0.76
|
%
|
||
Total interest bearing deposits
|
|
$
|
4,290,900
|
|
|
0.40
|
%
|
|
$
|
4,173,605
|
|
|
0.31
|
%
|
(Dollars in thousands)
|
|
Interest bearing deposits
|
|
Short-term borrowings
|
|
Long-term debt
|
|
Total
|
||||
2014 - year
|
|
0.29
|
%
|
|
0.20
|
%
|
|
3.29
|
%
|
|
0.81
|
%
|
2015 - year
|
|
0.30
|
%
|
|
0.18
|
%
|
|
3.10
|
%
|
|
0.72
|
%
|
2016 - year
|
|
0.32
|
%
|
|
0.19
|
%
|
|
3.13
|
%
|
|
0.74
|
%
|
2017 - first six months
|
|
0.40
|
%
|
|
0.35
|
%
|
|
3.00
|
%
|
|
0.78
|
%
|
Park Ohio-based operations - Allowance for Loan Losses
|
||||||||||||
(In thousands)
|
|
June 30, 2017
|
|
December 31, 2016
|
|
June 30, 2016
|
||||||
Total allowance for loan losses
|
|
$
|
53,822
|
|
|
$
|
50,624
|
|
|
$
|
58,699
|
|
Specific reserves
|
|
4,145
|
|
|
548
|
|
|
6,287
|
|
|||
General reserves
|
|
$
|
49,677
|
|
|
$
|
50,076
|
|
|
$
|
52,412
|
|
|
|
|
|
|
|
|
||||||
Total loans
|
|
$
|
5,354,148
|
|
|
$
|
5,259,503
|
|
|
$
|
5,113,242
|
|
Impaired commercial loans
|
|
62,405
|
|
|
58,676
|
|
|
77,155
|
|
|||
Non-impaired loans
|
|
$
|
5,291,743
|
|
|
$
|
5,200,827
|
|
|
$
|
5,036,087
|
|
|
|
|
|
|
|
|
||||||
Total allowance for loan losses to total loans ratio
|
|
1.01
|
%
|
|
0.96
|
%
|
|
1.15
|
%
|
|||
General reserves as a % of non-impaired loans
|
|
0.94
|
%
|
|
0.96
|
%
|
|
1.04
|
%
|
(In thousands)
|
|
June 30, 2017
|
|
December 31, 2016
|
|
June 30, 2016
|
||||||
Nonaccrual loans
|
|
$
|
90,378
|
|
|
$
|
87,822
|
|
|
$
|
111,429
|
|
Accruing TDRs
|
|
18,631
|
|
|
18,175
|
|
|
17,722
|
|
|||
Loans past due 90 days or more
|
|
1,895
|
|
|
2,086
|
|
|
2,305
|
|
|||
Total nonperforming loans
|
|
$
|
110,904
|
|
|
$
|
108,083
|
|
|
$
|
131,456
|
|
|
|
|
|
|
|
|
||||||
OREO – PNB
|
|
7,108
|
|
|
6,025
|
|
|
7,038
|
|
|||
OREO – SEPH
|
|
7,773
|
|
|
7,901
|
|
|
10,528
|
|
|||
Total nonperforming assets
|
|
$
|
125,785
|
|
|
$
|
122,009
|
|
|
$
|
149,022
|
|
|
|
|
|
|
|
|
||||||
Percentage of nonaccrual loans to total loans
|
|
1.68
|
%
|
|
1.67
|
%
|
|
2.17
|
%
|
|||
Percentage of nonperforming loans to total loans
|
|
2.07
|
%
|
|
2.05
|
%
|
|
2.56
|
%
|
|||
Percentage of nonperforming assets to total loans
|
|
2.34
|
%
|
|
2.31
|
%
|
|
2.91
|
%
|
|||
Percentage of nonperforming assets to total assets
|
|
1.61
|
%
|
|
1.63
|
%
|
|
2.01
|
%
|
(In thousands)
|
|
June 30, 2017
|
|
December 31, 2016
|
|
June 30, 2016
|
||||||
Nonaccrual loans
|
|
$
|
79,688
|
|
|
$
|
76,084
|
|
|
$
|
97,642
|
|
Accruing TDRs
|
|
18,631
|
|
|
18,175
|
|
|
17,722
|
|
|||
Loans past due 90 days or more
|
|
1,895
|
|
|
2,086
|
|
|
2,305
|
|
|||
Total nonperforming loans
|
|
$
|
100,214
|
|
|
$
|
96,345
|
|
|
$
|
117,669
|
|
|
|
|
|
|
|
|
||||||
OREO – PNB
|
|
7,108
|
|
|
6,025
|
|
|
7,038
|
|
|||
Total nonperforming assets
|
|
$
|
107,322
|
|
|
$
|
102,370
|
|
|
$
|
124,707
|
|
|
|
|
|
|
|
|
||||||
Percentage of nonaccrual loans to total loans
|
|
1.49
|
%
|
|
1.45
|
%
|
|
1.91
|
%
|
|||
Percentage of nonperforming loans to total loans
|
|
1.87
|
%
|
|
1.83
|
%
|
|
2.30
|
%
|
|||
Percentage of nonperforming assets to total loans
|
|
2.00
|
%
|
|
1.95
|
%
|
|
2.44
|
%
|
|||
Percentage of nonperforming assets to total assets
|
|
1.38
|
%
|
|
1.38
|
%
|
|
1.69
|
%
|
(In thousands)
|
|
June 30, 2017
|
|
December 31, 2016
|
|
June 30, 2016
|
||||||
Nonaccrual loans
|
|
$
|
10,690
|
|
|
$
|
11,738
|
|
|
$
|
13,787
|
|
Accruing TDRs
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Loans past due 90 days or more
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total nonperforming loans
|
|
$
|
10,690
|
|
|
$
|
11,738
|
|
|
$
|
13,787
|
|
|
|
|
|
|
|
|
||||||
OREO – SEPH
|
|
7,773
|
|
|
7,901
|
|
|
10,528
|
|
|||
Total nonperforming assets
|
|
$
|
18,463
|
|
|
$
|
19,639
|
|
|
$
|
24,315
|
|
•
|
Loss Emergence Period Factor:
At least annually, management calculates the loss emergence period for each commercial loan segment. Each loss emergence period is calculated based upon the average period of time it takes from the probable occurrence of a loss event to a credit being moved to nonaccrual status. If the loss emergence period for any commercial loan segment is greater than one year, management applies additional general reserves to all performing loans within that segment of the commercial loan portfolio. The loss emergence periods were last updated in the fourth quarter of 2016.
|
•
|
Loss Migration Factor:
Park’s commercial loans are individually risk graded. If loan downgrades occur, the probability of default increases, and accordingly, management allocates a higher percentage reserve to those accruing commercial loans graded special mention and substandard. Annually, management calculates a loss migration factor for each commercial loan segment for special mention and substandard credits based on a review of losses over the period of time a loan takes to migrate from pass-rated to impaired. The loss migration factors were last updated in the fourth quarter of 2016.
|
•
|
Environmental Loss Factor:
Management has identified certain macroeconomic factors that trend in accordance with losses in Park’s commercial loan portfolio. These macroeconomic factors are reviewed quarterly and the adjustments made to the environmental loss factor impacting each segment in the performing commercial loan portfolio correlate to changes in the macroeconomic environment.
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30, |
||||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||||
Income from fiduciary activities
|
|
$
|
6,025
|
|
|
$
|
5,438
|
|
|
$
|
587
|
|
|
$
|
11,539
|
|
|
$
|
10,551
|
|
|
$
|
988
|
|
Service charges on deposit accounts
|
|
3,156
|
|
|
3,575
|
|
|
(419
|
)
|
|
6,295
|
|
|
6,998
|
|
|
(703
|
)
|
||||||
Other service income
|
|
3,447
|
|
|
3,351
|
|
|
96
|
|
|
6,251
|
|
|
5,925
|
|
|
326
|
|
||||||
Checkcard fee income
|
|
4,040
|
|
|
3,868
|
|
|
172
|
|
|
7,801
|
|
|
7,400
|
|
|
401
|
|
||||||
Bank owned life insurance income
|
|
1,114
|
|
|
1,049
|
|
|
65
|
|
|
2,217
|
|
|
2,246
|
|
|
(29
|
)
|
||||||
ATM fees
|
|
561
|
|
|
570
|
|
|
(9
|
)
|
|
1,103
|
|
|
1,153
|
|
|
(50
|
)
|
||||||
OREO valuation adjustments
|
|
(272
|
)
|
|
(221
|
)
|
|
(51
|
)
|
|
(345
|
)
|
|
(339
|
)
|
|
(6
|
)
|
||||||
Gain on sale of OREO, net
|
|
53
|
|
|
162
|
|
|
(109
|
)
|
|
153
|
|
|
296
|
|
|
(143
|
)
|
||||||
Miscellaneous
|
|
1,127
|
|
|
944
|
|
|
183
|
|
|
1,744
|
|
|
1,895
|
|
|
(151
|
)
|
||||||
Total other income
|
|
$
|
19,251
|
|
|
$
|
18,736
|
|
|
$
|
515
|
|
|
$
|
36,758
|
|
|
$
|
36,125
|
|
|
$
|
633
|
|
|
|
Change from 2016 to 2017 for the three months ended June 30
|
|
Change from 2016 to 2017 for the six months ended June 30
|
||||||||||||||||||||
(In thousands)
|
|
Ohio-based operations
|
|
SEPH
|
|
Total
|
|
Ohio-based operations
|
|
SEPH
|
|
Total
|
||||||||||||
Income from fiduciary activities
|
|
$
|
587
|
|
|
$
|
—
|
|
|
$
|
587
|
|
|
$
|
988
|
|
|
$
|
—
|
|
|
$
|
988
|
|
Service charges on deposit accounts
|
|
(419
|
)
|
|
—
|
|
|
(419
|
)
|
|
(703
|
)
|
|
—
|
|
|
(703
|
)
|
||||||
Other service income
|
|
248
|
|
|
(152
|
)
|
|
96
|
|
|
609
|
|
|
(283
|
)
|
|
326
|
|
||||||
Checkcard fee income
|
|
172
|
|
|
—
|
|
|
172
|
|
|
401
|
|
|
—
|
|
|
401
|
|
||||||
Bank owned life insurance income
|
|
65
|
|
|
—
|
|
|
65
|
|
|
(29
|
)
|
|
—
|
|
|
(29
|
)
|
||||||
ATM fees
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
||||||
OREO valuation adjustments
|
|
(51
|
)
|
|
—
|
|
|
(51
|
)
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Gain on sale of OREO, net
|
|
(72
|
)
|
|
(37
|
)
|
|
(109
|
)
|
|
(78
|
)
|
|
(65
|
)
|
|
(143
|
)
|
||||||
Miscellaneous
|
|
127
|
|
|
56
|
|
|
183
|
|
|
(332
|
)
|
|
181
|
|
|
(151
|
)
|
||||||
Total other income
|
|
$
|
648
|
|
|
$
|
(133
|
)
|
|
$
|
515
|
|
|
$
|
800
|
|
|
$
|
(167
|
)
|
|
$
|
633
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
||||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
Change
|
|
2017
|
|
2016
|
|
Change
|
||||||||||||
Salaries
|
|
$
|
23,001
|
|
|
$
|
21,256
|
|
|
$
|
1,745
|
|
|
$
|
45,718
|
|
|
$
|
42,810
|
|
|
$
|
2,908
|
|
Employee benefits
|
|
4,919
|
|
|
4,894
|
|
|
25
|
|
|
10,100
|
|
|
9,667
|
|
|
433
|
|
||||||
Occupancy expense
|
|
2,565
|
|
|
2,639
|
|
|
(74
|
)
|
|
5,200
|
|
|
5,187
|
|
|
13
|
|
||||||
Furniture and equipment expense
|
|
3,640
|
|
|
3,416
|
|
|
224
|
|
|
7,258
|
|
|
6,859
|
|
|
399
|
|
||||||
Data processing fees
|
|
1,676
|
|
|
1,373
|
|
|
303
|
|
|
3,641
|
|
|
2,590
|
|
|
1,051
|
|
||||||
Professional fees and services
|
|
6,018
|
|
|
5,401
|
|
|
617
|
|
|
10,847
|
|
|
12,068
|
|
|
(1,221
|
)
|
||||||
Marketing
|
|
1,084
|
|
|
1,073
|
|
|
11
|
|
|
2,140
|
|
|
2,184
|
|
|
(44
|
)
|
||||||
Insurance
|
|
1,517
|
|
|
1,438
|
|
|
79
|
|
|
3,087
|
|
|
2,849
|
|
|
238
|
|
||||||
Communication
|
|
1,155
|
|
|
1,353
|
|
|
(198
|
)
|
|
2,488
|
|
|
2,574
|
|
|
(86
|
)
|
||||||
State tax expense
|
|
943
|
|
|
798
|
|
|
145
|
|
|
2,006
|
|
|
1,724
|
|
|
282
|
|
||||||
Miscellaneous
|
|
1,588
|
|
|
1,665
|
|
|
(77
|
)
|
|
3,083
|
|
|
6,693
|
|
|
(3,610
|
)
|
||||||
Total other expense
|
|
$
|
48,106
|
|
|
$
|
45,306
|
|
|
$
|
2,800
|
|
|
$
|
95,568
|
|
|
$
|
95,205
|
|
|
$
|
363
|
|
|
|
Change from 2016 to 2017 for the three months ended June 30
|
|
Change from 2016 to 2017 for the six months ended June 30
|
||||||||||||||||||||
(In thousands)
|
|
Ohio based operations
|
|
SEPH
|
|
Total
|
|
Ohio based operations
|
|
SEPH
|
|
Total
|
||||||||||||
Salaries
|
|
$
|
1,750
|
|
|
$
|
(5
|
)
|
|
$
|
1,745
|
|
|
$
|
2,914
|
|
|
$
|
(6
|
)
|
|
$
|
2,908
|
|
Employee benefits
|
|
40
|
|
|
(15
|
)
|
|
25
|
|
|
462
|
|
|
(29
|
)
|
|
433
|
|
||||||
Occupancy expense
|
|
(74
|
)
|
|
—
|
|
|
(74
|
)
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Furniture and equipment expense
|
|
224
|
|
|
—
|
|
|
224
|
|
|
399
|
|
|
—
|
|
|
399
|
|
||||||
Data processing fees
|
|
303
|
|
|
—
|
|
|
303
|
|
|
1,051
|
|
|
—
|
|
|
1,051
|
|
||||||
Professional fees and services
|
|
585
|
|
|
32
|
|
|
617
|
|
|
(589
|
)
|
|
(632
|
)
|
|
(1,221
|
)
|
||||||
Marketing
|
|
11
|
|
|
—
|
|
|
11
|
|
|
(41
|
)
|
|
(3
|
)
|
|
(44
|
)
|
||||||
Insurance
|
|
79
|
|
|
—
|
|
|
79
|
|
|
239
|
|
|
(1
|
)
|
|
238
|
|
||||||
Communication
|
|
(197
|
)
|
|
(1
|
)
|
|
(198
|
)
|
|
(84
|
)
|
|
(2
|
)
|
|
(86
|
)
|
||||||
State tax expense
|
|
145
|
|
|
—
|
|
|
145
|
|
|
302
|
|
|
(20
|
)
|
|
282
|
|
||||||
Miscellaneous
|
|
28
|
|
|
(105
|
)
|
|
(77
|
)
|
|
(3,581
|
)
|
|
(29
|
)
|
|
(3,610
|
)
|
||||||
Total other expense
|
|
$
|
2,894
|
|
|
$
|
(94
|
)
|
|
$
|
2,800
|
|
|
$
|
1,085
|
|
|
$
|
(722
|
)
|
|
$
|
363
|
|
•
|
Cash and cash equivalents increased by $264.6 million to $411.1 million at June 30, 2017, compared to $146.4 million at December 31, 2016. Money market instruments represented the majority of this increase, and were $282.7 million at June 30, 2017, compared to $23.6 million at December 31, 2016.
|
•
|
Loans increased by $93.6 million, or 1.8%, to $5,365 million at June 30, 2017, compared to $5,272 million at December 31, 2016.
|
•
|
Total deposits increased by $439.6 million, or 8.0%, to $5,962 million at June 30, 2017, compared to $5,522 million at December 31, 2016. The increase in deposits in the first six months of 2017 was largely the result of the product offering for Promontory's Insured Cash Sweep ("ICS") deposits.
|
•
|
Short-term borrowings decreased by $211.0 million, or 53.4%, to $183.8 million at June 30, 2017, compared to $394.8 million at December 31, 2016.
|
•
|
Long-term borrowings increased by $153.1 million, or 22.1%, to $847.4 million at June 30, 2017, compared to $694.3 million at December 31, 2016.
|
•
|
Retained earnings increased by $10.2 million during the period as a result of net income of $39.3 million, offset by common share dividends of $28.9 million.
|
•
|
Treasury shares increased by $4.8 million during the period as a result of the repurchase of treasury shares in the total amount of $5.4 million, offset by the issuance of treasury shares of $0.6 million.
|
•
|
Accumulated other comprehensive loss, net of taxes decreased during the period as a result of unrecognized net holding gains on securities available for sale, net of taxes, of $4.0 million.
|
|
As of June 30, 2017
|
||||||||||
|
Leverage
|
|
Tier 1
Risk-Based
|
|
Common Equity Tier 1
|
|
Total
Risk-Based
|
||||
The Park National Bank
|
7.16
|
%
|
|
10.11
|
%
|
|
10.11
|
%
|
|
11.54
|
%
|
Park National Corporation
|
9.22
|
%
|
|
12.97
|
%
|
|
12.69
|
%
|
|
13.98
|
%
|
Adequately capitalized ratio
|
4.00
|
%
|
|
6.00
|
%
|
|
4.50
|
%
|
|
8.00
|
%
|
Adequately capitalized ratio plus capital conservation buffer
|
4.00
|
%
|
|
8.50
|
%
|
|
7.00
|
%
|
|
10.50
|
%
|
Well capitalized ratio (PNB only)
|
5.00
|
%
|
|
8.00
|
%
|
|
6.50
|
%
|
|
10.00
|
%
|
|
As of December 31, 2016
|
||||||||||
|
Leverage
|
|
Tier 1
Risk-Based
|
|
Common Equity Tier 1
|
|
Total
Risk-Based
|
||||
The Park National Bank
|
7.34
|
%
|
|
9.87
|
%
|
|
9.87
|
%
|
|
11.24
|
%
|
Park National Corporation
|
9.56
|
%
|
|
12.83
|
%
|
|
12.55
|
%
|
|
14.32
|
%
|
Adequately capitalized ratio
|
4.00
|
%
|
|
6.00
|
%
|
|
4.50
|
%
|
|
8.00
|
%
|
Adequately capitalized ratio plus capital conservation buffer
|
4.00
|
%
|
|
8.50
|
%
|
|
7.00
|
%
|
|
10.50
|
%
|
Well capitalized ratio (PNB only)
|
5.00
|
%
|
|
8.00
|
%
|
|
6.50
|
%
|
|
10.00
|
%
|
(In thousands)
|
|
June 30,
2017 |
|
December 31, 2016
|
||||
Loan commitments
|
|
$
|
973,586
|
|
|
$
|
912,007
|
|
Standby letters of credit
|
|
$
|
13,140
|
|
|
$
|
13,746
|
|
•
|
information required to be disclosed by Park in this Quarterly Report on Form 10-Q and other reports that Park files or submits under the Exchange Act would be accumulated and communicated to Park’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure;
|
•
|
information required to be disclosed by Park in this Quarterly Report on Form 10-Q and the other reports that Park files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and
|
•
|
Park’s disclosure controls and procedures were effective as of the end of the quarterly period covered by this Quarterly Report on Form 10-Q.
|
(a)
|
Not applicable
|
(b)
|
Not applicable
|
(c)
|
The following table provides information concerning purchases of Park’s common shares made by or on behalf of Park or any “affiliated purchaser” as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended, during the three months ended June 30, 2017, as well as the maximum number of common shares that may be purchased under Park’s previously announced stock repurchase authorization to fund the 2013 Long-Term Incentive Plan (the "2013 Incentive Plan"), which was replaced on April 24, 2017, the 2017 Long-Term Incentive Plan for Employees (the "2017 Employees LTIP") and the 2017 Long-Term Incentive Plan for Non-Employee Directors (the "2017 Non-Employee Directors LTIP") and Park's previously announced 2017 stock repurchase authorization:
|
Period
|
|
Total number of
common shares
purchased
|
|
Average price
paid per
common
share
|
|
Total number of common
shares purchased as part of
publicly announced plans
or programs
|
|
Maximum number of
common shares that may
yet be purchased under the
plans or programs (1)
|
|||||
April 1 through April 30, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,400,000
|
|
May 1 through May 31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,400,000
|
|
|
June 1 through June 30, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,400,000
|
|
|
Total
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,400,000
|
|
(1)
|
The number shown represents, as of the end of each period, the maximum number of common shares that may yet be purchased as part of Park’s publicly announced stock repurchase authorization to fund the 2017 Employees LTIP which became effective on April 24, 2017, the 2017 Non-Employee Directors LTIP which became effective on April 24, 2017 and Park's publicly announced 2017 stock repurchase authorization which became effective on January 23, 2017.
|
|
3.1(a)
|
Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on March 24, 1992 (Incorporated herein by reference to Exhibit 3(a) to Park National Corporation’s Form 8-B, filed on May 20, 1992 (File No. 0-18772) (“Park’s Form 8-B”))
|
|
|
|
|
3.1(b)
|
Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on May 6, 1993 (Incorporated herein by reference to Exhibit 3(b) to Park National Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 0-18772))
|
|
|
|
|
3.1(c)
|
Certificate of Amendment to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 16, 1996 (Incorporated herein by reference to Exhibit 3(a) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1996 (File No. 1-13006))
|
|
|
|
|
3.1(d)
|
Certificate of Amendment by Shareholders to the Articles of Incorporation of Park National Corporation as filed with the Ohio Secretary of State on April 22, 1997 (Incorporated herein by reference to Exhibit 3(a)(1) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997 (File No. 1-13006) (“Park’s June 30, 1997 Form 10-Q”))
|
|
|
|
|
3.1(e)
|
Certificate of Amendment by Shareholders as filed with the Ohio Secretary of State on December 18, 2008 in order to evidence the adoption by the shareholders of Park National Corporation on December 18, 2008 of an amendment to Article FOURTH of Park National Corporation’s Articles of Incorporation to authorize Park National Corporation to issue up to 200,000 preferred shares, without par value (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed December 19, 2008 (File No. 1-13006))
|
|
|
|
|
3.1(f)
|
Certificate of Amendment by Directors to Articles as filed with the Ohio Secretary of State on December 19, 2008, evidencing adoption of amendment by Board of Directors of Park National Corporation to Article FOURTH of Articles of Incorporation to establish express terms of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value, of Park National Corporation (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed December 23, 2008 (File No. 1-13006))
|
|
|
|
|
3.1(g)
|
Certificate of Amendment by Shareholders as filed with the Ohio Secretary of State on April 18, 2011 in order to evidence the adoption by Park National Corporation’s shareholders of an amendment to Article SIXTH of Park National Corporation’s Articles of Incorporation in order to provide that shareholders do not have preemptive rights (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed April 19, 2011 (File No. 1-13006))
|
|
|
|
|
3.1(h)
|
Articles of Incorporation of Park National Corporation [This document represents the Articles of Incorporation of Park National Corporation in compiled form incorporating all amendments. This compiled document has not been filed with the Ohio Secretary of State.] (Incorporated herein by reference to Exhibit 3.1(h) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011 (File No. 1-13006))
|
|
|
|
|
3.2(a)
|
Regulations of Park National Corporation (Incorporated herein by reference to Exhibit 3(b) to Park’s Form 8-B)
|
|
|
|
|
3.2(b)
|
Certified Resolution regarding Adoption of Amendment to Subsection 2.02(A) of the Regulations of Park National Corporation by Shareholders on April 21, 1997 (Incorporated herein by reference to Exhibit 3(b)(1) to Park’s June 30, 1997 Form 10-Q)
|
|
|
|
|
3.2(c)
|
Certificate Regarding Adoption of Amendments to Sections 1.04 and 1.11 of Park National Corporation’s Regulations by the Shareholders on April 17, 2006 (Incorporated herein by reference to Exhibit 3.1 to Park National Corporation’s Current Report on Form 8-K dated and filed on April 18, 2006 (File No. 1-13006))
|
|
|
|
|
3.2(d)
|
Certificate Regarding Adoption by the Shareholders of Park National Corporation on April 21, 2008 of Amendment to Regulations to Add New Section 5.10 to Article Five (Incorporated herein by reference to Exhibit 3.2(d) to Park National Corporation’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2008 (File No. 1-13006) (“Park’s March 31, 2008 Form 10-Q”))
|
|
|
|
|
3.2(e)
|
Regulations of Park National Corporation [This document represents the Regulations of Park National Corporation in compiled form incorporating all amendments] (Incorporated herein by reference to Exhibit 3.2(e) to Park’s March 31, 2008 Form 10-Q)
|
|
|
|
|
10.1
|
Park National Corporation 2017 Long-Term Incentive Plan for Employees (Incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed on April 26, 2017 (File No. 1-13006))
|
|
|
|
|
10.2
|
Park National Corporation 2017 Long-Term Incentive Plan for Non-Employee Directors (Incorporated herein by reference to Exhibit 10.2 to Park National Corporation's Current Report on Form 8-K dated and filed on April 26, 2017 (File No. 1-13006))
|
|
|
|
|
10.3
|
First Amendment to Credit Agreement, made and entered into as of June 15, 2017, by and between Park National Corporation and U.S. Bank National Association (Incorporated herein by reference to Exhibit 10.1 to Park National Corporation's Current Report on Form 8-K dated and filed on June 16, 2017 (File No. 1-13006))
|
|
|
|
|
31.1
|
Rule 13a – 14(a) / 15d – 14(a) Certifications (Principal Executive Officer) (Filed herewith)
|
|
|
|
|
31.2
|
Rule 13a – 14(a) / 15d – 14(a) Certifications (Principal Financial Officer) (Filed herewith)
|
|
|
|
|
32.1
|
Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (Principal Executive Officer) (Furnished herewith)
|
|
|
|
|
32.2
|
Certifications Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code (Principal Financial Officer) (Furnished herewith)
|
|
|
|
|
101
|
The following information from Park’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Condensed Balance Sheets as of June 30, 2017 and December 31, 2016 (unaudited); (ii) the Consolidated Condensed Statements of Income for the three and six months ended June 30, 2017 and 2016 (unaudited); (iii) the Consolidated Condensed Statements of Comprehensive Income for the three and six months ended June 30, 2017 and 2016 (unaudited); (iv) the Consolidated Condensed Statements of Changes in Shareholders’ Equity for the six months ended June 30, 2017 and 2016 (unaudited); (v) the Consolidated Condensed Statements of Cash Flows for the six months ended June 30, 2017 and 2016 (unaudited); and (vi) the Notes to Unaudited Consolidated Condensed Financial Statements (electronically submitted herewith).
|
|
|
PARK NATIONAL CORPORATION
|
|
|
|
DATE: July 27, 2017
|
|
/s/ David L. Trautman
|
|
|
David L. Trautman
|
|
|
Chief Executive Officer and President
|
|
|
|
|
|
|
DATE: July 27, 2017
|
|
/s/ Brady T. Burt
|
|
|
Brady T. Burt
|
|
|
Chief Financial Officer, Secretary and Treasurer
|
|
|
|
1 Year Park National Chart |
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