x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TEXAS | 75-1848732 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1201 S. Beckham Avenue, Tyler, Texas | 75701 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer x |
Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
PART I. FINANCIAL INFORMATION | |
PART II. OTHER INFORMATION | |
EXHIBIT 31.1 – CERTIFICATION PURSUANT TO SECTION 302 | |
EXHIBIT 31.2 – CERTIFICATION PURSUANT TO SECTION 302 | |
EXHIBIT 32 – CERTIFICATION PURSUANT TO SECTION 906 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share amounts) | ||||||||
June 30, 2016 | December 31, 2015 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 45,663 | $ | 54,288 | ||||
Interest earning deposits | 18,450 | 26,687 | ||||||
Total cash and cash equivalents | 64,113 | 80,975 | ||||||
Securities available for sale, at estimated fair value | 1,416,335 | 1,460,492 | ||||||
Securities held to maturity, at carrying value (estimated fair value of $829,003 and $799,763, respectively) | 784,925 | 784,296 | ||||||
FHLB stock, at cost | 47,702 | 51,047 | ||||||
Other investments | 5,428 | 5,462 | ||||||
Loans held for sale | 5,883 | 3,811 | ||||||
Loans: | ||||||||
Loans | 2,384,321 | 2,431,753 | ||||||
Less: Allowance for loan losses | (14,908 | ) | (19,736 | ) | ||||
Net Loans | 2,369,413 | 2,412,017 | ||||||
Premises and equipment, net | 107,242 | 107,929 | ||||||
Goodwill | 91,520 | 91,520 | ||||||
Other intangible assets, net | 5,534 | 6,548 | ||||||
Interest receivable | 22,194 | 22,700 | ||||||
Deferred tax asset | 6,651 | 19,903 | ||||||
Unsettled trades to sell securities | — | 9,343 | ||||||
Bank owned life insurance | 96,375 | 95,080 | ||||||
Other assets | 11,690 | 10,953 | ||||||
TOTAL ASSETS | $ | 5,035,005 | $ | 5,162,076 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 679,831 | $ | 672,470 | ||||
Interest bearing | 2,890,418 | 2,782,937 | ||||||
Total deposits | 3,570,249 | 3,455,407 | ||||||
Short-term obligations: | ||||||||
Federal funds purchased and repurchase agreements | 11,065 | 2,429 | ||||||
FHLB advances | 374,652 | 645,407 | ||||||
Total short-term obligations | 385,717 | 647,836 | ||||||
Long-term obligations: | ||||||||
FHLB advances | 498,837 | 502,281 | ||||||
Long-term debt | 60,311 | 60,311 | ||||||
Total long-term obligations | 559,148 | 562,592 | ||||||
Unsettled trades to purchase securities | 11,793 | 19,350 | ||||||
Other liabilities | 35,798 | 32,829 | ||||||
TOTAL LIABILITIES | 4,562,705 | 4,718,014 | ||||||
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Note 13) | ||||||||
Shareholders’ equity: | ||||||||
Common stock ($1.25 par value, 40,000,000 shares authorized, 29,164,334 shares issued at June 30, 2016 and 27,865,798 shares issued at December 31, 2015) | 36,455 | 34,832 | ||||||
Paid-in capital | 458,817 | 424,078 | ||||||
Retained earnings | 19,874 | 41,527 | ||||||
Treasury stock, at cost (2,913,064 at June 30, 2016 and 2,469,638 at December 31, 2015) | (47,891 | ) | (37,692 | ) | ||||
Accumulated other comprehensive income (loss) | 5,045 | (18,683 | ) | |||||
TOTAL SHAREHOLDERS’ EQUITY | 472,300 | 444,062 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,035,005 | $ | 5,162,076 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest income | |||||||||||||||
Loans | $ | 26,233 | $ | 23,887 | $ | 53,998 | $ | 47,803 | |||||||
Investment securities – taxable | 107 | 459 | 321 | 696 | |||||||||||
Investment securities – tax-exempt | 5,137 | 5,644 | 10,492 | 11,509 | |||||||||||
Mortgage-backed securities | 9,366 | 7,666 | 18,757 | 16,128 | |||||||||||
FHLB stock and other investments | 185 | 65 | 402 | 158 | |||||||||||
Other interest earning assets | 61 | 29 | 131 | 63 | |||||||||||
Total interest income | 41,089 | 37,750 | 84,101 | 76,357 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 3,515 | 2,493 | 6,771 | 5,022 | |||||||||||
Short-term obligations | 906 | 154 | 1,602 | 296 | |||||||||||
Long-term obligations | 2,289 | 2,198 | 4,732 | 4,343 | |||||||||||
Total interest expense | 6,710 | 4,845 | 13,105 | 9,661 | |||||||||||
Net interest income | 34,379 | 32,905 | 70,996 | 66,696 | |||||||||||
Provision for loan losses | 3,768 | 268 | 6,084 | 4,116 | |||||||||||
Net interest income after provision for loan losses | 30,611 | 32,637 | 64,912 | 62,580 | |||||||||||
Noninterest income | |||||||||||||||
Deposit services | 5,099 | 4,920 | 10,184 | 9,909 | |||||||||||
Net gain on sale of securities available for sale | 728 | 105 | 3,169 | 2,581 | |||||||||||
Gain on sale of loans | 873 | 822 | 1,516 | 1,199 | |||||||||||
Trust income | 869 | 820 | 1,724 | 1,713 | |||||||||||
Bank owned life insurance income | 647 | 653 | 1,321 | 1,322 | |||||||||||
Brokerage services | 535 | 472 | 1,110 | 1,111 | |||||||||||
Other | 619 | 1,139 | 1,942 | 1,884 | |||||||||||
Total noninterest income | 9,370 | 8,931 | 20,966 | 19,719 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 14,849 | 16,869 | 32,581 | 35,068 | |||||||||||
Occupancy expense | 2,993 | 3,105 | 6,328 | 6,304 | |||||||||||
Advertising, travel & entertainment | 722 | 683 | 1,407 | 1,340 | |||||||||||
ATM and debit card expense | 736 | 750 | 1,448 | 1,429 | |||||||||||
Professional fees | 1,478 | 793 | 2,816 | 1,535 | |||||||||||
Software and data processing expense | 739 | 1,237 | 1,488 | 2,268 | |||||||||||
Telephone and communications | 468 | 603 | 952 | 1,072 | |||||||||||
FDIC insurance | 645 | 629 | 1,283 | 1,267 | |||||||||||
FHLB prepayment fees | 148 | — | 148 | — | |||||||||||
Other | 3,036 | 3,768 | 6,771 | 7,603 | |||||||||||
Total noninterest expense | 25,814 | 28,437 | 55,222 | 57,886 | |||||||||||
Income before income tax expense | 14,167 | 13,131 | 30,656 | 24,413 | |||||||||||
Income tax expense | 2,772 | 1,967 | 5,745 | 3,870 | |||||||||||
Net income | $ | 11,395 | $ | 11,164 | $ | 24,911 | $ | 20,543 | |||||||
Earnings per common share – basic | $ | 0.43 | $ | 0.42 | $ | 0.94 | $ | 0.77 | |||||||
Earnings per common share – diluted | $ | 0.43 | $ | 0.42 | $ | 0.94 | $ | 0.77 | |||||||
Dividends paid per common share | $ | 0.24 | $ | 0.23 | $ | 0.47 | $ | 0.46 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (in thousands) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 11,395 | $ | 11,164 | $ | 24,911 | $ | 20,543 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Securities available for sale and transferred securities: | |||||||||||||||
Net unrealized holding gains (losses) on available for sale securities during the period | 16,247 | (16,244 | ) | 43,991 | (6,724 | ) | |||||||||
Change in net unrealized loss on securities transferred to held to maturity | — | 1,329 | — | 1,329 | |||||||||||
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity | 87 | 244 | 144 | 526 | |||||||||||
Reclassification adjustment for net gain on sale of available for sale securities, included in net income | (728 | ) | (105 | ) | (3,169 | ) | (2,581 | ) | |||||||
Derivatives: | |||||||||||||||
Change in net unrealized loss on effective cash flow hedge interest rate swap derivatives | (3,134 | ) | — | (5,378 | ) | — | |||||||||
Pension plans: | |||||||||||||||
Amortization of net actuarial loss, included in net periodic benefit cost | 502 | 614 | 913 | 1,145 | |||||||||||
Amortization of prior service cost (credit), included in net periodic benefit cost | 8 | (4 | ) | 4 | (8 | ) | |||||||||
Other comprehensive income (loss), before tax | 12,982 | (14,166 | ) | 36,505 | (6,313 | ) | |||||||||
Income tax (benefit) expense related to other items of comprehensive income | (4,544 | ) | 4,959 | (12,777 | ) | 2,210 | |||||||||
Other comprehensive income (loss), net of tax | 8,438 | (9,207 | ) | 23,728 | (4,103 | ) | |||||||||
Comprehensive income | $ | 19,833 | $ | 1,957 | $ | 48,639 | $ | 16,440 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) (in thousands, except share and per share data) | |||||||||||||||||||||||
Common Stock | Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||
Balance at December 31, 2014 | $ | 33,223 | $ | 389,886 | $ | 55,396 | $ | (37,692 | ) | $ | (15,570 | ) | $ | 425,243 | |||||||||
Net income | — | — | 20,543 | — | — | 20,543 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (4,103 | ) | (4,103 | ) | |||||||||||||||
Issuance of common stock (21,499 shares) | 26 | 587 | — | — | — | 613 | |||||||||||||||||
Stock compensation expense | — | 567 | — | — | — | 567 | |||||||||||||||||
Tax benefits related to stock awards | — | 32 | — | — | — | 32 | |||||||||||||||||
Net issuance of common stock under employee stock plans | 15 | 157 | (21 | ) | — | — | 151 | ||||||||||||||||
Cash dividends paid on common stock ($0.46 per share) | — | — | (11,372 | ) | — | — | (11,372 | ) | |||||||||||||||
Stock dividend declared | 1,512 | 31,163 | (32,675 | ) | — | — | — | ||||||||||||||||
Balance at June 30, 2015 | $ | 34,776 | $ | 422,392 | $ | 31,871 | $ | (37,692 | ) | $ | (19,673 | ) | $ | 431,674 | |||||||||
Balance at December 31, 2015 | $ | 34,832 | $ | 424,078 | $ | 41,527 | $ | (37,692 | ) | $ | (18,683 | ) | $ | 444,062 | |||||||||
Net income | — | — | 24,911 | — | — | 24,911 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 23,728 | 23,728 | |||||||||||||||||
Issuance of common stock (23,015 shares) | 29 | 619 | — | — | — | 648 | |||||||||||||||||
Purchase of common stock (443,426 shares) | — | — | — | (10,199 | ) | — | (10,199 | ) | |||||||||||||||
Stock compensation expense | — | 758 | — | — | — | 758 | |||||||||||||||||
Tax benefits related to stock awards | — | 17 | — | — | — | 17 | |||||||||||||||||
Net issuance of common stock under employee stock plans | 29 | 145 | (31 | ) | — | — | 143 | ||||||||||||||||
Cash dividends paid on common stock ($0.47 per share) | — | — | (11,768 | ) | — | — | (11,768 | ) | |||||||||||||||
Stock dividend declared | 1,565 | 33,200 | (34,765 | ) | — | — | — | ||||||||||||||||
Balance at June 30, 2016 | $ | 36,455 | $ | 458,817 | $ | 19,874 | $ | (47,891 | ) | $ | 5,045 | $ | 472,300 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (in thousands) | |||||||
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 24,911 | $ | 20,543 | |||
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation and net amortization | 4,328 | 4,288 | |||||
Securities premium amortization (discount accretion), net | 9,366 | 11,276 | |||||
Loan (discount accretion) premium amortization, net | (1,680 | ) | (1,599 | ) | |||
Provision for loan losses | 6,084 | 4,116 | |||||
Stock compensation expense | 758 | 567 | |||||
Deferred tax expense (benefit) | 506 | (2,019 | ) | ||||
Tax benefit related to stock awards | (17 | ) | (32 | ) | |||
Net gain on sale of securities available for sale | (3,169 | ) | (2,581 | ) | |||
Net (gain) loss on premises and equipment | (19 | ) | 137 | ||||
Gross proceeds from sales of loans held for sale | 42,602 | 30,572 | |||||
Gross originations of loans held for sale | (44,674 | ) | (35,104 | ) | |||
Net loss on other real estate owned | 147 | 382 | |||||
Net change in: | |||||||
Interest receivable | 506 | (230 | ) | ||||
Other assets | (2,599 | ) | 2,070 | ||||
Interest payable | 378 | (52 | ) | ||||
Other liabilities | (1,872 | ) | (3,601 | ) | |||
Net cash provided by operating activities | 35,556 | 28,733 | |||||
INVESTING ACTIVITIES: | |||||||
Securities available for sale: | |||||||
Purchases | (355,720 | ) | (528,964 | ) | |||
Sales | 352,299 | 336,136 | |||||
Maturities, calls and principal repayments | 97,816 | 158,022 | |||||
Securities held to maturity: | |||||||
Purchases | (23,542 | ) | (56,752 | ) | |||
Maturities, calls and principal repayments | 9,206 | 11,411 | |||||
Proceeds from redemption of FHLB stock | 3,644 | 5,692 | |||||
Purchases of FHLB stock and other investments | (235 | ) | (3,594 | ) | |||
Net loans originated | 37,446 | 1,235 | |||||
Purchases of premises and equipment | (3,327 | ) | (1,828 | ) | |||
Proceeds from sales of premises and equipment | 51 | 6 | |||||
Proceeds from sales of other real estate owned | 587 | 634 | |||||
Proceeds from sales of repossessed assets | 568 | 1,619 | |||||
Net cash provided by (used in) investing activities | 118,793 | (76,383 | ) | ||||
(continued) |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (continued) (in thousands) | |||||||
Six Months Ended | |||||||
June 30, | |||||||
2016 | 2015 | ||||||
FINANCING ACTIVITIES: | |||||||
Net change in deposits | $ | 115,428 | $ | 94,908 | |||
Net increase (decrease) in federal funds purchased and repurchase agreements | 8,636 | (2,153 | ) | ||||
Proceeds from FHLB advances | 3,815,906 | 8,447,303 | |||||
Repayment of FHLB advances | (4,090,022 | ) | (8,489,458 | ) | |||
Tax benefit related to stock awards | 17 | 32 | |||||
Net issuance of common stock under employee stock plan | 143 | 151 | |||||
Purchase of common stock | (10,199 | ) | — | ||||
Proceeds from the issuance of common stock | 648 | 613 | |||||
Cash dividends paid | (11,768 | ) | (11,372 | ) | |||
Net cash (used in) provided by financing activities | (171,211 | ) | 40,024 | ||||
Net decrease in cash and cash equivalents | (16,862 | ) | (7,626 | ) | |||
Cash and cash equivalents at beginning of period | 80,975 | 84,655 | |||||
Cash and cash equivalents at end of period | $ | 64,113 | $ | 77,029 | |||
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: | |||||||
Interest paid | $ | 12,727 | $ | 9,713 | |||
Income taxes paid | $ | 5,500 | $ | 2,000 | |||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Loans transferred to other repossessed assets and real estate through foreclosure | $ | 764 | $ | 1,073 | |||
Transfer of available for sale securities to held to maturity securities | $ | — | $ | 57,724 | |||
Adjustment to pension liability | $ | (917 | ) | $ | (1,137 | ) | |
5% stock dividend | $ | 34,765 | $ | 32,675 | |||
Unsettled trades to purchase securities | $ | (11,793 | ) | $ | (3,453 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Basic and Diluted Earnings: | |||||||||||||||
Net income | $ | 11,395 | $ | 11,164 | $ | 24,911 | $ | 20,543 | |||||||
Basic weighted-average shares outstanding | 26,230 | 26,608 | 26,340 | 26,600 | |||||||||||
Add: Stock awards | 119 | 93 | 94 | 89 | |||||||||||
Diluted weighted-average shares outstanding | 26,349 | 26,701 | 26,434 | 26,689 | |||||||||||
Basic Earnings Per Share: | $ | 0.43 | $ | 0.42 | $ | 0.94 | $ | 0.77 | |||||||
Diluted Earnings Per Share: | $ | 0.43 | $ | 0.42 | $ | 0.94 | $ | 0.77 |
Three Months Ended June 30, 2016 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Unrealized Gains (Losses) on Derivatives | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | 16,245 | $ | (1,459 | ) | $ | (47 | ) | $ | (18,132 | ) | $ | (3,393 | ) | |||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 16,247 | (3,134 | ) | — | — | 13,113 | |||||||||||||
Reclassified from accumulated other comprehensive income | (641 | ) | — | 8 | 502 | (131 | ) | ||||||||||||
Income tax (expense) benefit | (5,462 | ) | 1,097 | (3 | ) | (176 | ) | (4,544 | ) | ||||||||||
Net current-period other comprehensive income (loss), net of tax | 10,144 | (2,037 | ) | 5 | 326 | 8,438 | |||||||||||||
Ending balance, net of tax | $ | 26,389 | $ | (3,496 | ) | $ | (42 | ) | $ | (17,806 | ) | $ | 5,045 | ||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Unrealized Gains (Losses) on Derivatives | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | (239 | ) | $ | — | $ | (44 | ) | $ | (18,400 | ) | $ | (18,683 | ) | |||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 43,991 | (5,378 | ) | — | — | 38,613 | |||||||||||||
Reclassified from accumulated other comprehensive income | (3,025 | ) | — | 4 | 913 | (2,108 | ) | ||||||||||||
Income tax (expense) benefit | (14,338 | ) | 1,882 | (2 | ) | (319 | ) | (12,777 | ) | ||||||||||
Net current-period other comprehensive income (loss), net of tax | 26,628 | (3,496 | ) | 2 | 594 | 23,728 | |||||||||||||
Ending balance, net of tax | $ | 26,389 | $ | (3,496 | ) | $ | (42 | ) | $ | (17,806 | ) | $ | 5,045 |
Three Months Ended June 30, 2015 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Unrealized Gains (Losses) on Derivatives | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | 11,000 | $ | — | $ | 4 | $ | (21,470 | ) | $ | (10,466 | ) | |||||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (14,915 | ) | — | — | — | (14,915 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | 139 | — | (4 | ) | 614 | 749 | |||||||||||||
Income tax (expense) benefit | 5,172 | — | 2 | (215 | ) | 4,959 | |||||||||||||
Net current-period other comprehensive income (loss), net of tax | (9,604 | ) | — | (2 | ) | 399 | (9,207 | ) | |||||||||||
Ending balance, net of tax | $ | 1,396 | $ | — | $ | 2 | $ | (21,071 | ) | $ | (19,673 | ) | |||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
Unrealized Gains (Losses) on Securities | Unrealized Gains (Losses) on Derivatives | Net Prior Service (Cost) Credit | Net Gain (Loss) | Total | |||||||||||||||
Beginning balance, net of tax | $ | 6,238 | $ | — | $ | 7 | $ | (21,815 | ) | $ | (15,570 | ) | |||||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (5,395 | ) | — | — | — | (5,395 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | (2,055 | ) | — | (8 | ) | 1,145 | (918 | ) | |||||||||||
Income tax (expense) benefit | 2,608 | — | 3 | (401 | ) | 2,210 | |||||||||||||
Net current-period other comprehensive income (loss), net of tax | (4,842 | ) | — | (5 | ) | 744 | (4,103 | ) | |||||||||||
Ending balance, net of tax | $ | 1,396 | $ | — | $ | 2 | $ | (21,071 | ) | $ | (19,673 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Unrealized losses on securities transferred to held to maturity: | |||||||||||||||
Amortization of unrealized losses (1) | $ | (87 | ) | $ | (244 | ) | $ | (144 | ) | $ | (526 | ) | |||
Tax benefit | 30 | 85 | 50 | 184 | |||||||||||
Net of tax | (57 | ) | (159 | ) | (94 | ) | (342 | ) | |||||||
Unrealized gains and losses on available for sale securities: | |||||||||||||||
Realized net gain on sale of securities (2) | $ | 728 | $ | 105 | $ | 3,169 | $ | 2,581 | |||||||
Tax expense | (255 | ) | (36 | ) | (1,109 | ) | (903 | ) | |||||||
Net of tax | 473 | 69 | 2,060 | 1,678 | |||||||||||
Amortization of pension plan: | |||||||||||||||
Net actuarial loss (3) | $ | (502 | ) | $ | (614 | ) | $ | (913 | ) | $ | (1,145 | ) | |||
Prior service credit (3) | (8 | ) | 4 | (4 | ) | 8 | |||||||||
Total before tax | (510 | ) | (610 | ) | (917 | ) | (1,137 | ) | |||||||
Tax benefit | 179 | 213 | 321 | 398 | |||||||||||
Net of tax | (331 | ) | (397 | ) | (596 | ) | (739 | ) | |||||||
Total reclassifications for the period, net of tax | $ | 85 | $ | (487 | ) | $ | 1,370 | $ | 597 |
(3) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 8 - Employee Benefit Plans.” |
June 30, 2016 | ||||||||||||||||||||||||||||
Recognized in OCI | Not recognized in OCI | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Carrying | Gross Unrealized | Gross Unrealized | Estimated | ||||||||||||||||||||||
AVAILABLE FOR SALE | Cost | Gains | Losses | Value | Gains | Losses | Fair Value | |||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
State and Political Subdivisions | $ | 282,422 | $ | 15,013 | $ | 19 | $ | 297,416 | $ | — | $ | — | $ | 297,416 | ||||||||||||||
Other Stocks and Bonds | 7,774 | 64 | 16 | 7,822 | — | — | 7,822 | |||||||||||||||||||||
Other Equity Securities | 6,045 | 94 | — | 6,139 | — | — | 6,139 | |||||||||||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||||||||||||||
Residential | 660,953 | 15,504 | 155 | 676,302 | — | — | 676,302 | |||||||||||||||||||||
Commercial | 409,828 | 18,828 | — | 428,656 | — | — | 428,656 | |||||||||||||||||||||
Total | $ | 1,367,022 | $ | 49,503 | $ | 190 | $ | 1,416,335 | $ | — | $ | — | $ | 1,416,335 | ||||||||||||||
HELD TO MATURITY | ||||||||||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
State and Political Subdivisions | $ | 385,387 | $ | 4,207 | $ | 8,899 | $ | 380,695 | $ | 21,710 | $ | 883 | $ | 401,522 | ||||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||||||||||||||
Residential | 37,493 | — | 41 | 37,452 | 2,272 | 3 | 39,721 | |||||||||||||||||||||
Commercial | 370,759 | 1,150 | 5,131 | 366,778 | 20,982 | — | 387,760 | |||||||||||||||||||||
Total | $ | 793,639 | $ | 5,357 | $ | 14,071 | $ | 784,925 | $ | 44,964 | $ | 886 | $ | 829,003 |
December 31, 2015 | ||||||||||||||||||||||||||||
Recognized in OCI | Not recognized in OCI | |||||||||||||||||||||||||||
Amortized | Gross Unrealized | Gross Unrealized | Carrying | Gross Unrealized | Gross Unrealized | Estimated | ||||||||||||||||||||||
AVAILABLE FOR SALE | Cost | Gains | Losses | Value | Gains | Losses | Fair Value | |||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
U.S. Treasury | $ | 103,906 | $ | 61 | $ | 380 | $ | 103,587 | $ | — | $ | — | $ | 103,587 | ||||||||||||||
State and Political Subdivisions | 236,534 | 8,323 | 611 | 244,246 | — | — | 244,246 | |||||||||||||||||||||
Other Stocks and Bonds | 12,772 | 63 | 45 | 12,790 | — | — | 12,790 | |||||||||||||||||||||
Other Equity Securities | 6,052 | — | 36 | 6,016 | — | — | 6,016 | |||||||||||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||||||||||||||
Residential | 580,621 | 9,120 | 1,239 | 588,502 | — | — | 588,502 | |||||||||||||||||||||
Commercial | 512,116 | 466 | 7,231 | 505,351 | — | — | 505,351 | |||||||||||||||||||||
Total | $ | 1,452,001 | $ | 18,033 | $ | 9,542 | $ | 1,460,492 | $ | — | $ | — | $ | 1,460,492 | ||||||||||||||
HELD TO MATURITY | ||||||||||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
State and Political Subdivisions | $ | 389,997 | $ | 4,772 | $ | 9,273 | $ | 385,496 | $ | 13,061 | $ | 1,363 | $ | 397,194 | ||||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||||||||||||||
Residential | 31,430 | — | 51 | 31,379 | 2,018 | 1 | 33,396 | |||||||||||||||||||||
Commercial | 371,727 | 1,233 | 5,539 | 367,421 | 4,232 | 2,480 | 369,173 | |||||||||||||||||||||
Total | $ | 793,154 | $ | 6,005 | $ | 14,863 | $ | 784,296 | $ | 19,311 | $ | 3,844 | $ | 799,763 |
As of June 30, 2016 | |||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
AVAILABLE FOR SALE | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 3,037 | $ | 13 | $ | 1,110 | $ | 6 | $ | 4,147 | $ | 19 | |||||||||||
Other Stocks and Bonds | 2,984 | 16 | — | — | 2,984 | 16 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 45,178 | 116 | 16,400 | 39 | 61,578 | 155 | |||||||||||||||||
Total | $ | 51,199 | $ | 145 | $ | 17,510 | $ | 45 | $ | 68,709 | $ | 190 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 2,925 | $ | 21 | $ | 38,851 | $ | 862 | $ | 41,776 | $ | 883 | |||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 5,375 | 3 | — | — | 5,375 | 3 | |||||||||||||||||
Total | $ | 8,300 | $ | 24 | $ | 38,851 | $ | 862 | $ | 47,151 | $ | 886 | |||||||||||
As of December 31, 2015 | |||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
AVAILABLE FOR SALE | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
U.S. Treasury | $ | 64,172 | $ | 380 | $ | — | $ | — | $ | 64,172 | $ | 380 | |||||||||||
State and Political Subdivisions | 15,550 | 116 | 19,270 | 495 | 34,820 | 611 | |||||||||||||||||
Other Stocks and Bonds | 2,954 | 45 | — | — | 2,954 | 45 | |||||||||||||||||
Other Equity Securities | 6,016 | 36 | — | — | 6,016 | 36 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 229,514 | 1,215 | 3,817 | 24 | 233,331 | 1,239 | |||||||||||||||||
Commercial | 422,316 | 7,039 | 5,110 | 192 | 427,426 | 7,231 | |||||||||||||||||
Total | $ | 740,522 | $ | 8,831 | $ | 28,197 | $ | 711 | $ | 768,719 | $ | 9,542 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 24,340 | $ | 214 | $ | 62,240 | $ | 1,149 | $ | 86,580 | $ | 1,363 | |||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 1,717 | 1 | — | — |