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) | ||||||||
September 30, 2016 | December 31, 2015 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 54,255 | $ | 54,288 | ||||
Interest earning deposits | 144,833 | 26,687 | ||||||
Total cash and cash equivalents | 199,088 | 80,975 | ||||||
Securities available for sale, at estimated fair value | 1,622,128 | 1,460,492 | ||||||
Securities held to maturity, at carrying value (estimated fair value of $814,112 and $799,763, respectively) | 775,682 | 784,296 | ||||||
FHLB stock, at cost | 51,901 | 51,047 | ||||||
Other investments | 5,442 | 5,462 | ||||||
Loans held for sale | 5,301 | 3,811 | ||||||
Loans: | ||||||||
Loans | 2,483,641 | 2,431,753 | ||||||
Less: Allowance for loan losses | (15,993 | ) | (19,736 | ) | ||||
Net Loans | 2,467,648 | 2,412,017 | ||||||
Premises and equipment, net | 106,777 | 107,929 | ||||||
Goodwill | 91,520 | 91,520 | ||||||
Other intangible assets, net | 5,060 | 6,548 | ||||||
Interest receivable | 17,458 | 22,700 | ||||||
Deferred tax asset, net | 9,236 | 19,903 | ||||||
Unsettled trades to sell securities | — | 9,343 | ||||||
Bank owned life insurance | 97,002 | 95,080 | ||||||
Other assets | 10,660 | 10,873 | ||||||
TOTAL ASSETS | $ | 5,464,903 | $ | 5,161,996 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 747,270 | $ | 672,470 | ||||
Interest bearing | 2,834,117 | 2,782,937 | ||||||
Total deposits | 3,581,387 | 3,455,407 | ||||||
Short-term obligations: | ||||||||
Federal funds purchased and repurchase agreements | 11,516 | 2,429 | ||||||
FHLB advances | 709,118 | 645,407 | ||||||
Total short-term obligations | 720,634 | 647,836 | ||||||
Long-term obligations: | ||||||||
FHLB advances | 463,316 | 502,281 | ||||||
Subordinated notes, net of unamortized debt issuance costs | 98,089 | — | ||||||
Long-term debt, net of unamortized debt issuance costs | 60,235 | 60,231 | ||||||
Total long-term obligations | 621,640 | 562,512 | ||||||
Unsettled trades to purchase securities | 30,214 | 19,350 | ||||||
Other liabilities | 38,468 | 32,829 | ||||||
TOTAL LIABILITIES | 4,992,343 | 4,717,934 | ||||||
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Note 13) | ||||||||
Shareholders’ equity: | ||||||||
Common stock ($1.25 par value, 40,000,000 shares authorized, 29,191,241 shares issued at September 30, 2016 and 27,865,798 shares issued at December 31, 2015) | 36,489 | 34,832 | ||||||
Paid-in capital | 459,808 | 424,078 | ||||||
Retained earnings | 26,420 | 41,527 | ||||||
Treasury stock, at cost (2,913,064 at September 30, 2016 and 2,469,638 at December 31, 2015) | (47,891 | ) | (37,692 | ) | ||||
Accumulated other comprehensive income (loss) | (2,266 | ) | (18,683 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | 472,560 | 444,062 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,464,903 | $ | 5,161,996 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (in thousands, except per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest income | |||||||||||||||
Loans | $ | 25,740 | $ | 23,787 | $ | 79,738 | $ | 71,590 | |||||||
Investment securities – taxable | 251 | 475 | 572 | 1,171 | |||||||||||
Investment securities – tax-exempt | 5,467 | 5,551 | 15,959 | 17,060 | |||||||||||
Mortgage-backed securities | 9,399 | 8,318 | 28,156 | 24,446 | |||||||||||
FHLB stock and other investments | 186 | 65 | 588 | 223 | |||||||||||
Other interest earning assets | 89 | 15 | 220 | 78 | |||||||||||
Total interest income | 41,132 | 38,211 | 125,233 | 114,568 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 3,604 | 2,485 | 10,375 | 7,507 | |||||||||||
Short-term obligations | 1,122 | 354 | 2,724 | 650 | |||||||||||
Long-term obligations | 2,476 | 2,089 | 7,210 | 6,434 | |||||||||||
Total interest expense | 7,202 | 4,928 | 20,309 | 14,591 | |||||||||||
Net interest income | 33,930 | 33,283 | 104,924 | 99,977 | |||||||||||
Provision for loan losses | 1,631 | 2,276 | 7,715 | 6,392 | |||||||||||
Net interest income after provision for loan losses | 32,299 | 31,007 | 97,209 | 93,585 | |||||||||||
Noninterest income | |||||||||||||||
Deposit services | 5,335 | 5,213 | 15,519 | 15,122 | |||||||||||
Net gain on sale of securities available for sale | 2,343 | 875 | 5,512 | 3,456 | |||||||||||
Gain on sale of loans | 818 | 305 | 2,334 | 1,504 | |||||||||||
Trust income | 867 | 835 | 2,591 | 2,548 | |||||||||||
Bank owned life insurance income | 656 | 661 | 1,977 | 1,983 | |||||||||||
Brokerage services | 551 | 540 | 1,661 | 1,651 | |||||||||||
Other | 1,162 | 932 | 3,104 | 2,816 | |||||||||||
Total noninterest income | 11,732 | 9,361 | 32,698 | 29,080 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 15,203 | 15,733 | 47,784 | 50,801 | |||||||||||
Occupancy expense | 4,569 | 3,316 | 10,897 | 9,620 | |||||||||||
Advertising, travel & entertainment | 588 | 642 | 1,995 | 1,982 | |||||||||||
ATM and debit card expense | 868 | 617 | 2,316 | 2,046 | |||||||||||
Professional fees | 1,148 | 825 | 3,964 | 2,360 | |||||||||||
Software and data processing expense | 736 | 819 | 2,224 | 3,087 | |||||||||||
Telephone and communications | 407 | 534 | 1,359 | 1,606 | |||||||||||
FDIC insurance | 643 | 624 | 1,926 | 1,891 | |||||||||||
FHLB prepayment fees | — | — | 148 | — | |||||||||||
Other | 4,263 | 3,525 | 11,032 | 11,126 | |||||||||||
Total noninterest expense | 28,425 | 26,635 | 83,645 | 84,519 | |||||||||||
Income before income tax expense | 15,606 | 13,733 | 46,262 | 38,146 | |||||||||||
Income tax expense | 2,741 | 1,971 | 8,486 | 5,841 | |||||||||||
Net income | $ | 12,865 | $ | 11,762 | $ | 37,776 | $ | 32,305 | |||||||
Earnings per common share – basic | $ | 0.49 | $ | 0.44 | $ | 1.43 | $ | 1.21 | |||||||
Earnings per common share – diluted | $ | 0.49 | $ | 0.44 | $ | 1.43 | $ | 1.21 | |||||||
Dividends paid per common share | $ | 0.24 | $ | 0.23 | $ | 0.71 | $ | 0.69 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 12,865 | $ | 11,762 | $ | 37,776 | $ | 32,305 | |||||||
Other comprehensive income (loss): | |||||||||||||||
Securities available for sale and transferred securities: | |||||||||||||||
Net unrealized holding (losses) gains on available for sale securities during the period | (10,960 | ) | 13,446 | 33,031 | 6,722 | ||||||||||
Change in net unrealized loss on securities transferred to held to maturity | — | — | — | 1,329 | |||||||||||
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity | 16 | 220 | 160 | 746 | |||||||||||
Reclassification adjustment for net gain on sale of available for sale securities, included in net income | (2,343 | ) | (875 | ) | (5,512 | ) | (3,456 | ) | |||||||
Derivatives: | |||||||||||||||
Change in net unrealized loss on effective cash flow hedge interest rate swap derivatives | 1,070 | — | (5,125 | ) | — | ||||||||||
Reclassification adjustment for net loss on interest rate swap derivatives, included in net income | 521 | — | 1,338 | — | |||||||||||
Pension plans: | |||||||||||||||
Amortization of net actuarial loss, included in net periodic benefit cost | 458 | 691 | 1,371 | 1,836 | |||||||||||
Amortization of prior service credit, included in net periodic benefit cost | (10 | ) | (4 | ) | (6 | ) | (12 | ) | |||||||
Other comprehensive (loss) income, before tax | (11,248 | ) | 13,478 | 25,257 | 7,165 | ||||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | 3,937 | (4,718 | ) | (8,840 | ) | (2,508 | ) | ||||||||
Other comprehensive (loss) income, net of tax | (7,311 | ) | 8,760 | 16,417 | 4,657 | ||||||||||
Comprehensive income | $ | 5,554 | $ | 20,522 | $ | 54,193 | $ | 36,962 |
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 | — | — | 32,305 | — | — | 32,305 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 4,657 | 4,657 | |||||||||||||||||
Issuance of common stock (33,948 shares) | 42 | 894 | — | — | — | 936 | |||||||||||||||||
Stock compensation expense | — | 981 | — | — | — | 981 | |||||||||||||||||
Tax benefits related to stock awards | — | 61 | — | — | — | 61 | |||||||||||||||||
Net issuance of common stock under employee stock plans | 26 | 182 | (39 | ) | — | — | 169 | ||||||||||||||||
Cash dividends paid on common stock ($0.69 per share) | — | — | (17,204 | ) | — | — | (17,204 | ) | |||||||||||||||
Stock dividend declared | 1,512 | 31,163 | (32,675 | ) | — | — | — | ||||||||||||||||
Balance at September 30, 2015 | $ | 34,803 | $ | 423,167 | $ | 37,783 | $ | (37,692 | ) | $ | (10,913 | ) | $ | 447,148 | |||||||||
Balance at December 31, 2015 | $ | 34,832 | $ | 424,078 | $ | 41,527 | $ | (37,692 | ) | $ | (18,683 | ) | $ | 444,062 | |||||||||
Net income | — | — | 37,776 | — | — | 37,776 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 16,417 | 16,417 | |||||||||||||||||
Issuance of common stock (33,622 shares) | 42 | 950 | — | — | — | 992 | |||||||||||||||||
Purchase of common stock (443,426 shares) | — | — | — | (10,199 | ) | — | (10,199 | ) | |||||||||||||||
Stock compensation expense | — | 1,156 | — | — | — | 1,156 | |||||||||||||||||
Tax benefits related to stock awards | — | 79 | — | — | — | 79 | |||||||||||||||||
Net issuance of common stock under employee stock plans | 50 | 345 | (49 | ) | — | — | 346 | ||||||||||||||||
Cash dividends paid on common stock ($0.71 per share) | — | — | (18,069 | ) | — | — | (18,069 | ) | |||||||||||||||
Stock dividend declared | 1,565 | 33,200 | (34,765 | ) | — | — | — | ||||||||||||||||
Balance at September 30, 2016 | $ | 36,489 | $ | 459,808 | $ | 26,420 | $ | (47,891 | ) | $ | (2,266 | ) | $ | 472,560 |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (in thousands) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 37,776 | $ | 32,305 | |||
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation and net amortization | 6,612 | 6,470 | |||||
Securities premium amortization (discount accretion), net | 14,245 | 16,895 | |||||
Loan (discount accretion) premium amortization, net | (2,113 | ) | (2,065 | ) | |||
Provision for loan losses | 7,715 | 6,392 | |||||
Stock compensation expense | 1,156 | 981 | |||||
Deferred tax expense (benefit) | 1,916 | (2,714 | ) | ||||
Tax benefit related to stock awards | (79 | ) | (61 | ) | |||
Net gain on sale of securities available for sale | (5,512 | ) | (3,456 | ) | |||
Net loss on premises and equipment | 235 | 211 | |||||
Gross proceeds from sales of loans held for sale | 67,144 | 51,610 | |||||
Gross originations of loans held for sale | (68,634 | ) | (53,594 | ) | |||
Net loss on other real estate owned | 224 | 387 | |||||
Net gain on sale of customer receivables | (144 | ) | — | ||||
Net change in: | |||||||
Interest receivable | 5,242 | 5,293 | |||||
Other assets | (2,094 | ) | 2,121 | ||||
Interest payable | 726 | 28 | |||||
Other liabilities | 2,182 | (1,064 | ) | ||||
Net cash provided by operating activities | 66,597 | 59,739 | |||||
INVESTING ACTIVITIES: | |||||||
Securities available for sale: | |||||||
Purchases | (761,900 | ) | (697,879 | ) | |||
Sales | 495,011 | 543,456 | |||||
Maturities, calls and principal repayments | 160,676 | 226,125 | |||||
Securities held to maturity: | |||||||
Purchases | (29,725 | ) | (80,714 | ) | |||
Maturities, calls and principal repayments | 22,029 | 17,994 | |||||
Proceeds from redemption of FHLB stock | 3,644 | 8,603 | |||||
Purchases of FHLB stock and other investments | (4,433 | ) | (12,248 | ) | |||
Net loans originated | (66,633 | ) | (58,658 | ) | |||
Proceeds from sales of customer receivables | 3,314 | — | |||||
Purchases of premises and equipment | (5,189 | ) | (2,524 | ) | |||
Proceeds from sales of premises and equipment | 120 | 10 | |||||
Proceeds from sales of other real estate owned | 1,918 | 634 | |||||
Proceeds from sales of repossessed assets | 767 | 2,008 | |||||
Net cash used in investing activities | (180,401 | ) | (53,193 | ) | |||
(continued) |
SOUTHSIDE BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) (continued) (in thousands) | |||||||
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
FINANCING ACTIVITIES: | |||||||
Net change in deposits | $ | 126,748 | $ | (45,588 | ) | ||
Net increase (decrease) in federal funds purchased and repurchase agreements | 9,087 | (1,967 | ) | ||||
Proceeds from FHLB advances | 6,548,551 | 13,860,663 | |||||
Repayment of FHLB advances | (6,523,701 | ) | (13,816,377 | ) | |||
Net proceeds from issuance of subordinated long-term debt | 98,083 | — | |||||
Tax benefit related to stock awards | 79 | 61 | |||||
Net issuance of common stock under employee stock plan | 346 | 169 | |||||
Purchase of common stock | (10,199 | ) | — | ||||
Proceeds from the issuance of common stock | 992 | 936 | |||||
Cash dividends paid | (18,069 | ) | (17,204 | ) | |||
Net cash provided by (used in) financing activities | 231,917 | (19,307 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 118,113 | (12,761 | ) | ||||
Cash and cash equivalents at beginning of period | 80,975 | 84,655 | |||||
Cash and cash equivalents at end of period | $ | 199,088 | $ | 71,894 | |||
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: | |||||||
Interest paid | $ | 19,583 | $ | 14,558 | |||
Income taxes paid | $ | 5,700 | $ | 5,250 | |||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | |||||||
Loans transferred to other repossessed assets and real estate through foreclosure | $ | 5,434 | $ | 1,453 | |||
Transfer of available for sale securities to held to maturity securities | $ | — | $ | 57,724 | |||
Adjustment to pension liability | $ | (1,365 | ) | $ | (1,824 | ) | |
5% stock dividend | $ | 34,765 | $ | 32,675 | |||
Unsettled trades to purchase securities | $ | (30,214 | ) | $ | (21,783 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Basic and Diluted Earnings: | |||||||||||||||
Net income | $ | 12,865 | $ | 11,762 | $ | 37,776 | $ | 32,305 | |||||||
Basic weighted-average shares outstanding | 26,262 | 26,632 | 26,314 | 26,611 | |||||||||||
Add: Stock awards | 153 | 89 | 111 | 89 | |||||||||||
Diluted weighted-average shares outstanding | 26,415 | 26,721 | 26,425 | 26,700 | |||||||||||
Basic Earnings Per Share: | $ | 0.49 | $ | 0.44 | $ | 1.43 | $ | 1.21 | |||||||
Diluted Earnings Per Share: | $ | 0.49 | $ | 0.44 | $ | 1.43 | $ | 1.21 |
Three Months Ended September 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 | $ | 26,389 | $ | (3,496 | ) | $ | (42 | ) | $ | (17,806 | ) | $ | 5,045 | ||||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (10,960 | ) | 1,070 | — | — | (9,890 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | (2,327 | ) | 521 | (10 | ) | 458 | (1,358 | ) | |||||||||||
Income tax benefit (expense) | 4,650 | (557 | ) | 4 | (160 | ) | 3,937 | ||||||||||||
Net current-period other comprehensive income (loss), net of tax | (8,637 | ) | 1,034 | (6 | ) | 298 | (7,311 | ) | |||||||||||
Ending balance, net of tax | $ | 17,752 | $ | (2,462 | ) | $ | (48 | ) | $ | (17,508 | ) | $ | (2,266 | ) | |||||
Nine Months Ended September 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 | 33,031 | (5,125 | ) | — | — | 27,906 | |||||||||||||
Reclassified from accumulated other comprehensive income | (5,352 | ) | 1,338 | (6 | ) | 1,371 | (2,649 | ) | |||||||||||
Income tax (expense) benefit | (9,688 | ) | 1,325 | 2 | (479 | ) | (8,840 | ) | |||||||||||
Net current-period other comprehensive income (loss), net of tax | 17,991 | (2,462 | ) | (4 | ) | 892 | 16,417 | ||||||||||||
Ending balance, net of tax | $ | 17,752 | $ | (2,462 | ) | $ | (48 | ) | $ | (17,508 | ) | $ | (2,266 | ) |
Three Months Ended September 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 | $ | 1,396 | $ | — | $ | 2 | $ | (21,071 | ) | $ | (19,673 | ) | |||||||
Other comprehensive income (loss): | |||||||||||||||||||
Other comprehensive income before reclassifications | 13,446 | — | — | — | 13,446 | ||||||||||||||
Reclassified from accumulated other comprehensive income | (655 | ) | — | (4 | ) | 691 | 32 | ||||||||||||
Income tax (expense) benefit | (4,477 | ) | — | 1 | (242 | ) | (4,718 | ) | |||||||||||
Net current-period other comprehensive income (loss), net of tax | 8,314 | — | (3 | ) | 449 | 8,760 | |||||||||||||
Ending balance, net of tax | $ | 9,710 | $ | — | $ | (1 | ) | $ | (20,622 | ) | $ | (10,913 | ) | ||||||
Nine Months Ended September 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 before reclassifications | 8,051 | — | — | — | 8,051 | ||||||||||||||
Reclassified from accumulated other comprehensive income | (2,710 | ) | — | (12 | ) | 1,836 | (886 | ) | |||||||||||
Income tax (expense) benefit | (1,869 | ) | — | 4 | (643 | ) | (2,508 | ) | |||||||||||
Net current-period other comprehensive income (loss), net of tax | 3,472 | — | (8 | ) | 1,193 | 4,657 | |||||||||||||
Ending balance, net of tax | $ | 9,710 | $ | — | $ | (1 | ) | $ | (20,622 | ) | $ | (10,913 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Unrealized losses on securities transferred to held to maturity: | |||||||||||||||
Amortization of unrealized losses (1) | $ | (16 | ) | $ | (220 | ) | $ | (160 | ) | $ | (746 | ) | |||
Tax benefit | 6 | 77 | 56 | 261 | |||||||||||
Net of tax | (10 | ) | (143 | ) | (104 | ) | (485 | ) | |||||||
Unrealized gains and losses on available for sale securities: | |||||||||||||||
Realized net gain on sale of securities (2) | $ | 2,343 | $ | 875 | $ | 5,512 | $ | 3,456 | |||||||
Tax expense | (820 | ) | (307 | ) | (1,929 | ) | (1,210 | ) | |||||||
Net of tax | 1,523 | 568 | 3,583 | 2,246 | |||||||||||
Derivatives: | |||||||||||||||
Realized net loss on interest rate swap derivatives (3) | (521 | ) | — | (1,338 | ) | — | |||||||||
Tax benefit | 182 | — | 468 | — | |||||||||||
Net of tax | (339 | ) | — | (870 | ) | — | |||||||||
Amortization of pension plan: | |||||||||||||||
Net actuarial loss (4) | $ | (458 | ) | $ | (691 | ) | $ | (1,371 | ) | $ | (1,836 | ) | |||
Prior service credit (4) | 10 | 4 | 6 | 12 | |||||||||||
Total before tax | (448 | ) | (687 | ) | (1,365 | ) | (1,824 | ) | |||||||
Tax benefit | 156 | 241 | 477 | 639 | |||||||||||
Net of tax | (292 | ) | (446 | ) | (888 | ) | (1,185 | ) | |||||||
Total reclassifications for the period, net of tax | $ | 882 | $ | (21 | ) | $ | 1,721 | $ | 576 |
(4) | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 8 - Employee Benefit Plans.” |
September 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: | ||||||||||||||||||||||||||||
U.S. Treasury | $ | 79,841 | $ | 109 | $ | 103 | $ | 79,847 | $ | — | $ | — | $ | 79,847 | ||||||||||||||
State and Political Subdivisions | 414,383 | 10,299 | 942 | 423,740 | — | — | 423,740 | |||||||||||||||||||||
Other Stocks and Bonds | 7,766 | 64 | — | 7,830 | — | — | 7,830 | |||||||||||||||||||||
Other Equity Securities | 6,042 | 69 | — | 6,111 | — | — | 6,111 | |||||||||||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||||||||||||||
Residential | 691,406 | 11,732 | 1,652 | 701,486 | — | — | 701,486 | |||||||||||||||||||||
Commercial | 386,680 | 16,438 | 4 | 403,114 | — | — | 403,114 | |||||||||||||||||||||
Total | $ | 1,586,118 | $ | 38,711 | $ | 2,701 | $ | 1,622,128 | $ | — | $ | — | $ | 1,622,128 | ||||||||||||||
HELD TO MATURITY | ||||||||||||||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
State and Political Subdivisions | $ | 384,010 | $ | 3,867 | $ | 8,710 | $ | 379,167 | $ | 18,018 | $ | 1,141 | $ | 396,044 | ||||||||||||||
Mortgage-backed Securities: (1) | ||||||||||||||||||||||||||||
Residential | 34,045 | — | 39 | 34,006 | 1,971 | 25 | 35,952 | |||||||||||||||||||||
Commercial | 366,325 | 1,109 | 4,925 | 362,509 | 19,607 | — | 382,116 | |||||||||||||||||||||
Total | $ | 784,380 | $ | 4,976 | $ | 13,674 | $ | 775,682 | $ | 39,596 | $ | 1,166 | $ | 814,112 |
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 |
(1) | All mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
As of September 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: | |||||||||||||||||||||||
U.S. Treasury | $ | 35,058 | $ | 103 | $ | — | $ | — | $ | 35,058 | $ | 103 | |||||||||||
State and Political Subdivisions | 139,145 | 941 | 887 | 1 | 140,032 | 942 | |||||||||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 192,591 | 1,600 | 10,063 | 52 | 202,654 | 1,652 | |||||||||||||||||
Commercial | 5,163 | 4 | — | — | 5,163 | 4 | |||||||||||||||||
Total | $ | 371,957 | $ | 2,648 | $ | 10,950 | $ | 53 | $ | 382,907 | $ | 2,701 | |||||||||||
HELD TO MATURITY | |||||||||||||||||||||||
Investment Securities: | |||||||||||||||||||||||
State and Political Subdivisions | $ | 21,479 | $ | 176 | $ | 27,610 | $ | 965 | $ | 49,089 | $ | 1,141 | |||||||||||
Mortgage-backed Securities: | |||||||||||||||||||||||
Residential | 8,182 | 25 | — | — | 8,182 | 25 | |||||||||||||||||
Total | $ | 29,661 | $ | 201 | $ | 27,610 | $ | 965 | $ | 57,271 | $ | 1,166 | |||||||||||
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: |