UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
 
(Mark One)
  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2017.
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________.
 
COMMISSION FILE NUMBER 0-14703
 
NBT BANCORP INC.
(Exact Name of Registrant as Specified in its Charter)
 
DELAWARE
 
16-1268674
(State of Incorporation)
 
(I.R.S. Employer Identification No.)
52 SOUTH BROAD STREET, NORWICH, NEW YORK 13815
(Address of Principal Executive Offices) (Zip Code)
 
Registrant’s Telephone Number, Including Area Code: (607) 337-2265
 
None
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes    No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes   No
 
As of October 31, 2017, there were 43,537,673 shares outstanding of the Registrant’s common stock, $0.01 par value per share.
 

 
NBT BANCORP INC.
FORM 10-Q - Quarter Ended September 30, 2017

TABLE OF CONTENTS
 PART I
FINANCIAL INFORMATION

Item 1
Financial Statements
 
     
 
3
     
 
4
     
 
5
     
 
6
     
 
7
     
 
9
     
Item 2
39
     
Item 3
53
     
Item 4
53
     
PART II
OTHER INFORMATION
 
     
Item 1
54
Item 1A
 
Item 2
54
Item 3
54
Item 4
54
Item 5
54
Item 6
55
 
56


Item 1 – FINANCIAL STATEMENTS

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)

 
 
September 30,
   
December 31,
 
   
2017
   
2016
 
(In thousands, except share and per share data)
           
Assets
           
Cash and due from banks
 
$
175,804
   
$
147,789
 
Short-term interest bearing accounts
   
6,012
     
1,392
 
Securities available for sale, at fair value
   
1,357,614
     
1,338,290
 
Securities held to maturity (fair value $495,411 and $525,050)
   
494,309
     
527,948
 
Trading securities
   
10,883
     
9,259
 
Federal Reserve and Federal Home Loan Bank stock
   
45,070
     
47,033
 
Loans
   
6,466,934
     
6,198,057
 
Less allowance for loan losses
   
68,350
     
65,200
 
Net loans
   
6,398,584
     
6,132,857
 
Premises and equipment, net
   
81,421
     
84,187
 
Goodwill
   
268,043
     
265,439
 
Intangible assets, net
   
15,911
     
15,815
 
Bank owned life insurance
   
171,125
     
168,012
 
Other assets
   
130,620
     
129,247
 
Total assets
 
$
9,155,396
   
$
8,867,268
 
                 
Liabilities
               
Demand (noninterest bearing)
 
$
2,312,715
   
$
2,195,845
 
Savings, NOW and money market
   
4,141,765
     
3,905,432
 
Time
   
776,756
     
872,411
 
Total deposits
   
7,231,236
     
6,973,688
 
Short-term borrowings
   
681,950
     
681,703
 
Long-term debt
   
88,914
     
104,087
 
Junior subordinated debt
   
101,196
     
101,196
 
Other liabilities
   
96,862
     
93,278
 
Total liabilities
   
8,200,158
     
7,953,952
 
                 
Stockholders’ equity
               
Preferred stock, $0.01 par value. Authorized 2,500,000 shares at September 30, 2017 and December 31, 2016
   
-
     
-
 
Common stock, $0.01 par value. Authorized 100,000,000 shares at September 30, 2017 and December 31, 2016; issued 49,651,493 at September 30, 2017 and December 31, 2016
   
497
     
497
 
Additional paid-in-capital
   
573,772
     
575,078
 
Retained earnings
   
536,107
     
501,761
 
Accumulated other comprehensive loss
   
(16,664
)
   
(21,520
)
Common stock in treasury, at cost, 6,122,595 and 6,393,743 shares at September 30, 2017 and December 31, 2016, respectively
   
(138,474
)
   
(142,500
)
Total stockholders’ equity
   
955,238
     
913,316
 
Total liabilities and stockholders’ equity
 
$
9,155,396
   
$
8,867,268
 
 
See accompanying notes to unaudited interim consolidated financial statements.
 

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Income (unaudited)

   
Three months ended
September 30,
   
Nine months ended
September 30,
 
   
2017
   
2016
   
2017
   
2016
 
(In thousands, except per share data)
                       
Interest, fee and dividend income
                       
Interest and fees on loans
 
$
68,086
   
$
63,414
   
$
197,399
   
$
187,093
 
Securities available for sale
   
7,278
     
6,013
     
21,505
     
17,976
 
Securities held to maturity
   
2,746
     
2,544
     
8,263
     
7,328
 
Other
   
737
     
538
     
2,010
     
1,441
 
Total interest, fee and dividend income
   
78,847
     
72,509
     
229,177
     
213,838
 
Interest expense
                               
Deposits
   
3,648
     
3,607
     
10,658
     
10,809
 
Short-term borrowings
   
1,870
     
761
     
4,375
     
1,668
 
Long-term debt
   
589
     
819
     
1,794
     
2,425
 
Junior subordinated debt
   
810
     
660
     
2,308
     
1,920
 
Total interest expense
   
6,917
     
5,847
     
19,135
     
16,822
 
Net interest income
   
71,930
     
66,662
     
210,042
     
197,016
 
Provision for loan losses
   
7,889
     
6,388
     
22,835
     
17,266
 
Net interest income after provision for loan losses
   
64,041
     
60,274
     
187,207
     
179,750
 
Noninterest income
                               
Insurance and other financial services revenue
   
5,536
     
6,114
     
17,927
     
18,685
 
Service charges on deposit accounts
   
4,261
     
4,354
     
12,399
     
12,459
 
ATM and debit card fees
   
5,557
     
5,063
     
16,025
     
14,580
 
Retirement plan administration fees
   
5,272
     
4,129
     
14,881
     
11,937
 
Trust
   
4,927
     
4,535
     
14,620
     
13,848
 
Bank owned life insurance
   
1,284
     
1,336
     
3,913
     
3,898
 
Net securities (losses) gains
   
(4
)
   
-
     
(2
)
   
30
 
Other
   
3,945
     
4,113
     
10,069
     
12,188
 
Total noninterest income
   
30,778
     
29,644
     
89,832
     
87,625
 
Noninterest expense
                               
Salaries and employee benefits
   
32,740
     
32,783
     
99,081
     
98,155
 
Occupancy
   
5,174
     
5,035
     
16,528
     
15,780
 
Data processing and communications
   
4,399
     
4,183
     
12,826
     
12,354
 
Professional fees and outside services
   
3,107
     
3,343
     
9,748
     
9,905
 
Equipment
   
3,733
     
3,656
     
11,224
     
10,663
 
Office supplies and postage
   
1,432
     
1,438
     
4,680
     
4,661
 
FDIC expenses
   
1,257
     
1,287
     
3,571
     
3,838
 
Advertising
   
665
     
634
     
1,711
     
1,733
 
Amortization of intangible assets
   
993
     
952
     
2,999
     
2,976
 
Loan collection and other real estate owned, net
   
1,684
     
985
     
3,627
     
2,535
 
Other
   
5,417
     
5,318
     
16,209
     
15,683
 
Total noninterest expense
   
60,601
     
59,614
     
182,204
     
178,283
 
Income before income tax expense
   
34,218
     
30,304
     
94,835
     
89,092
 
Income tax expense
   
11,342
     
10,303
     
30,321
     
30,291
 
Net income
 
$
22,876
   
$
20,001
   
$
64,514
   
$
58,801
 
Earnings per share
                               
Basic
 
$
0.52
   
$
0.46
   
$
1.48
   
$
1.36
 
Diluted
 
$
0.52
   
$
0.46
   
$
1.47
   
$
1.35
 

See accompanying notes to unaudited interim consolidated financial statements.


NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (unaudited)

   
Three months ended
September 30,
   
Nine months ended
September 30,
 
 
 
2017
   
2016
   
2017
   
2016
 
(In thousands)
                       
Net income
 
$
22,876
   
$
20,001
   
$
64,514
   
$
58,801
 
Other comprehensive income, net of tax:
                               
Unrealized net holding gains (losses) arising during the period (pre-tax amounts of $1,355, $(2,931), $4,719 and $14,010)
   
837
     
(1,790
)
   
2,896
     
8,560
 
Reclassification adjustment for net losses (gains) related to securities available for sale included in net income (pre-tax amounts of $(4), $-, $(2) and $30)
   
2
     
-
     
1
     
(19
)
Reclassification adjustment for an impairment write-down of equity security (pre-tax amounts of $-, $-, $1,312 and $-)
   
-
     
-
     
811
     
-
 
Unrealized (loss) gain on derivatives (cash flow hedges) (pre-tax amounts of $(63), $782, $(167) and $719)
   
(40
)
   
478
     
(103
)
   
439
 
Amortization of unrealized net gains related to the reclassification of available for sale investment securities to held to maturity (pre-tax amounts of $212, $267, $675 and $843)
   
131
     
162
     
417
     
515
 
Pension and other benefits:
                               
Amortization of prior service cost and actuarial loss (pre-tax amounts of $480, $519, $1,350, $1,544)
   
297
     
317
     
834
     
943
 
Total other comprehensive income (loss)
   
1,227
     
(833
)
   
4,856
     
10,438
 
Comprehensive income
 
$
24,103
   
$
19,168
   
$
69,370
   
$
69,239
 

See accompanying notes to unaudited interim consolidated financial statements.
NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity (unaudited)
 
   
Common
Stock
   
Additional
Paid-in-
Capital
   
Retained
Earnings
   
Accumulated Other
Comprehensive (Loss) Income
   
Common Stock
in Treasury
   
Total
 
(In thousands, except share and per share data)
                                   
Balance at December 31, 2015
 
$
497
   
$
576,726
   
$
462,232
   
$
(22,418
)
 
$
(135,033
)
 
$
882,004
 
Net income
   
-
     
-
     
58,801
     
-
     
-
     
58,801
 
Cash dividends - $0.67 per share
   
-
     
-
     
(28,903
)
   
-
     
-
     
(28,903
)
Purchase of 675,535 treasury shares
   
-
     
-
     
-
     
-
     
(17,193
)
   
(17,193
)
Net issuance of 389,058 shares to employee benefit plans and other stock plans, including tax benefit
   
-
     
(6,164
)
   
-
     
-
     
7,270
     
1,106
 
Stock-based compensation
   
-
     
3,096
     
-
     
-
     
-
     
3,096
 
Other comprehensive income
   
-
     
-
     
-
     
10,438
     
-
     
10,438
 
Balance at September 30, 2016
 
$
497
   
$
573,658
   
$
492,130
   
$
(11,980
)
 
$
(144,956
)
 
$
909,349
 
 
                                               
Balance at December 31, 2016
 
$
497
   
$
575,078
   
$
501,761
   
$
(21,520
)
 
$
(142,500
)
 
$
913,316
 
Net income
   
-
     
-
     
64,514
     
-
     
-
     
64,514
 
Cash dividends - $0.69 per share
   
-
     
-
     
(30,073
)
   
-
     
-
     
(30,073
)
Net issuance of 271,148 shares to employee benefit plans and other stock plans, including tax benefit
   
-
     
(4,596
)
   
-
     
-
     
4,026
     
(570
)
Stock-based compensation
   
-
     
3,290
     
(95
)
   
-
     
-
     
3,195
 
Other comprehensive income
   
-
     
-
     
-
     
4,856
     
-
     
4,856
 
Balance at September 30, 2017
 
$
497
   
$
573,772
   
$
536,107
   
$
(16,664
)
 
$
(138,474
)
 
$
955,238
 
 
See accompanying notes to unaudited interim consolidated financial statements.

NBT Bancorp Inc. and Subsidiaries
Consolidated Statements of Cash Flows (unaudited)

   
Nine months ended
September 30,
 
   
2017
   
2016
 
(In thousands)
           
Operating activities
           
Net income
 
$
64,514
   
$
58,801
 
Adjustments to reconcile net income to net cash provided by operating activities
               
Provision for loan losses
   
22,835
     
17,266
 
Depreciation and amortization of premises and equipment
   
6,759
     
6,765
 
Net accretion on securities
   
3,628
     
3,781
 
Amortization of intangible assets
   
2,999
     
2,976
 
Excess tax benefit on stock-based compensation
   
1,697
     
-
 
Stock-based compensation
   
3,195
     
3,096
 
Bank owned life insurance income
   
(3,913
)
   
(3,898
)
Trading security purchases
   
(1,470
)
   
(34
)
Gains on trading securities
   
(154
)
   
(441
)
Proceeds from sales of loans held for sale
   
87,095
     
71,170
 
Originations and purchases of loans held for sale
   
(87,246
)
   
(73,393
)
Net gains on sales of loans held for sale
   
(292
)
   
(459
)
Net security losses (gains)
   
2
     
(30
)
Net (gain) on sales and write-down of other real estate owned
   
(189
)
   
(625
)
Gain on asset sold
   
-
     
(2,462
)
Impairment write-down of equity security
   
1,312
     
2,565
 
Net (increase) in other assets
   
(6,076
)
   
(16,599
)
Net increase in other liabilities
   
1,872
     
11,395
 
Net cash provided by operating activities
   
96,568
     
79,874
 
Investing activities
               
Net cash used in acquisitions
   
(4,000
)
   
(2,000
)
Securities available for sale:
               
Proceeds from maturities, calls and principal paydowns
   
205,327
     
250,441
 
Proceeds from sales
   
9,997
     
48
 
Purchases
   
(232,850
)
   
(352,056
)
Securities held to maturity:
               
Proceeds from maturities, calls and principal paydowns
   
86,055
     
76,676
 
Proceeds from sales
   
764
     
-
 
Purchases
   
(53,212
)
   
(90,476
)
Other:
               
Net increase in loans
   
(293,346
)
   
(291,349
)
Proceeds from Federal Home Loan Bank stock redemption
   
177,803
     
108,227
 
Purchases of Federal Reserve and Federal Home Loan Bank stock
   
(175,840
)
   
(113,872
)
Proceeds from settlement of bank owned life insurance
   
800
     
1,478
 
Purchase of bank owned life insurance
   
-
     
(45,000
)
Purchases of premises and equipment, net
   
(4,177
)
   
(4,652
)
Proceeds from the sales of other real estate owned
   
6,767
     
5,153
 
Net cash used in investing activities
   
(275,912
)
   
(457,382
)
Financing activities
               
Net increase in deposits
   
257,548
     
344,395
 
Net increase in short-term borrowings
   
248
     
142,546
 
Proceeds from issuance of long-term debt
   
-
     
3,880
 
Repayments of long-term debt
   
(15,174
)
   
(20,183
)
Proceeds from the issuance of shares to employee benefit plans and other stock plans
   
3,012
     
4,234
 
Cash paid by employer for tax-withholdings on stock issuance
   
(3,582
)
   
(3,128
)
Purchase of treasury stock
   
-
     
(17,193
)
Cash dividends
   
(30,073
)
   
(28,903
)
Net cash provided by financing activities
   
211,979
     
425,648
 
Net increase in cash and cash equivalents
   
32,635
     
48,140
 
Cash and cash equivalents at beginning of period
   
149,181
     
140,297
 
Cash and cash equivalents at end of period
 
$
181,816
   
$
188,437
 

Supplemental disclosure of cash flow information
 
Nine months ended
September 30,
 
Cash paid during the period for:
 
2017
   
2016
 
Interest
 
$
19,771
   
$
17,269
 
Income taxes paid
   
22,230
     
29,173
 
Noncash investing activities:
               
Loans transferred to other real estate owned
 
$
5,227
   
$
2,363
 
Acquisitions:
               
Fair value of assets acquired
 
$
3,096
   
$
1,703
 

See accompanying notes to unaudited interim consolidated financial statements.


NBT BANCORP INC. and Subsidiaries
NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2017
 
1.
Description of Business
 
NBT Bancorp Inc. (the “Registrant” or the “Company”) is a registered financial holding company incorporated in the state of Delaware in 1986, with its principal headquarters located in Norwich, New York. The principal assets of the Registrant consist of all of the outstanding shares of common stock of its subsidiaries, including:  NBT Bank, National Association (the “Bank”), NBT Financial Services, Inc. (“NBT Financial”), NBT Holdings, Inc. (“NBT Holdings”), Hathaway Agency, Inc. and CNBF Capital Trust I, NBT Statutory Trust I, NBT Statutory Trust II, Alliance Financial Capital Trust I and Alliance Financial Capital Trust II (collectively, the “Trusts”). The Company’s principal sources of revenue are the management fees and dividends it receives from the Bank, NBT Financial and NBT Holdings.
 
The Company’s business, primarily conducted through the Bank but also through its other subsidiaries, consists of providing commercial banking and financial services to customers in its market area, which includes central and upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont and the greater Portland, Maine area. The Company has been and intends to continue to be, a community-oriented financial institution offering a variety of financial services. The Company’s business philosophy is to operate as a community bank with local decision-making, principally in non-metropolitan markets, providing a broad array of banking and financial services to retail, commercial and municipal customers.

2.
Basis of Presentation
 
The accompanying unaudited interim consolidated financial statements include the accounts of the Registrant and its wholly owned subsidiaries, the Bank, NBT Financial and NBT Holdings. Collectively, the Registrant and its subsidiaries are referred to herein as “the Company.” The interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods in accordance with generally accepted accounting principles in the United States of America (“GAAP”). These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2016 Annual Report on Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. All intercompany transactions have been eliminated in consolidation. Amounts in the prior period financial statements are reclassified whenever necessary to conform to current period presentation. The Company has evaluated subsequent events for potential recognition and/or disclosure and there were none identified.

3.
Securities
 
The amortized cost, estimated fair value and unrealized gains and losses of available for sale (“AFS”) securities are as follows:
 
(In thousands)
 
Amortized
cost
   
Unrealized
gains
   
Unrealized
losses
   
Estimated
fair value
 
September 30, 2017
                       
Federal agency
 
$
139,935
   
$
27
   
$
544
   
$
139,418
 
State & municipal
   
42,880
     
127
     
88
     
42,919
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
554,466
     
3,879
     
1,115
     
557,230
 
U.S. government agency securities
   
26,760
     
404
     
168
     
26,996
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
523,682
     
626
     
5,592
     
518,716
 
U.S. government agency securities
   
53,089
     
169
     
662
     
52,596
 
Other securities
   
13,537
     
6,332
     
130
     
19,739
 
Total securities AFS
 
$
1,354,349
   
$
11,564
   
$
8,299
   
$
1,357,614
 
December 31, 2016
                               
Federal agency
 
$
175,135
   
$
78
   
$
805
   
$
174,408
 
State & municipal
   
47,053
     
153
     
480
     
46,726
 
Mortgage-backed:
                               
Government-sponsored enterprises
   
513,814
     
3,345
     
2,492
     
514,667
 
U.S. government agency securities
   
14,955
     
411
     
189
     
15,177
 
Collateralized mortgage obligations:
                               
Government-sponsored enterprises
   
513,431
     
532
     
7,688
     
506,275
 
U.S. government agency securities
   
60,822
     
184
     
708
     
60,298
 
Other securities
   
15,849
     
6,394
     
1,504
     
20,739
 
Total securities AFS
 
$
1,341,059
   
$
11,097
   
$
13,866
   
$
1,338,290
 
 
The amortized cost, estimated fair value and unrealized gains and losses of held to maturity (“HTM”) securities are as follows:

(In thousands)
 
Amortized
cost
   
Unrealized
gains
   
Unrealized
losses
   
Estimated
fair value
 
September 30, 2017
                       
Mortgage-backed:
                       
     Government-sponsored enterprises
 
$
99,502
   
$
239
   
$
685
   
$
99,056
 
     U.S. government agency securities
   
447
     
67
     
-
     
514
 
Collateralized mortgage obligations:
                               
     Government-sponsored enterprises
   
195,388
     
1,135
     
1,103
     
195,420
 
State & municipal
   
198,972
     
1,983
     
534
     
200,421
 
Total securities HTM
 
$
494,309
   
$
3,424
   
$
2,322
   
$
495,411
 
December 31, 2016
                               
Mortgage-backed:
                               
     Government-sponsored enterprises
 
$
96,668
   
$
-
   
$
1,176
   
$
95,492
 
     U.S. government agency securities
   
533
     
87
     
-
     
620
 
Collateralized mortgage obligations:
                               
     Government-sponsored enterprises
   
225,213
     
1,060
     
1,508
     
224,765
 
State & municipal
   
205,534
     
434
     
1,795
     
204,173
 
Total securities HTM
 
$
527,948
   
$
1,581
   
$
4,479
   
$
525,050
 

Securities with amortized costs totaling $1.2 billion at September 30, 2017 and $1.5 billion at December 31, 2016 were pledged to secure public deposits and for other purposes required or permitted by law.  At September 30, 2017 and December 31, 2016, securities with an amortized cost of $242.6 million and $235.6 million, respectively, were pledged as collateral for securities sold under repurchase agreements.
 
The following table sets forth information with regard to investment securities with unrealized losses, segregated according to the length of time the securities had been in a continuous unrealized loss position:
 
(Dollars in thousands)
 
Less than 12 months
   
12 months or longer
   
Total
 
Security Type:
 
Fair
Value
   
Unrealized
losses
   
Number of
Positions
   
Fair
Value
   
Unrealized
losses
   
Number of
Positions
   
Fair
Value
   
Unrealized
losses
   
Number of
Positions
 
 
                                                     
September 30, 2017
                                                     
AFS securities:
                                                     
Federal agency
 
$
45,209
   
$
(49
)
   
3
   
$
54,465
   
$
(495
)
   
5
   
$
99,674
   
$
(544
)
   
8
 
State & municipal
   
14,720
     
(39
)
   
24
     
6,015
     
(49
)
   
8
     
20,735
     
(88
)
   
32
 
Mortgage-backed
   
181,600
     
(1,176
)
   
42
     
6,577
     
(107
)
   
5
     
188,177
     
(1,283
)
   
47
 
Collateralized mortgage obligations
   
339,415
     
(3,175
)
   
50
     
119,108
     
(3,079
)
   
16
     
458,523
     
(6,254
)
   
66
 
Other securities
   
1,997
     
(3
)
   
1
     
2,979
     
(127
)
   
1
     
4,976
     
(130
)
   
2
 
Total securities with unrealized losses
 
$
582,941
   
$
(4,442
)
   
120
   
$
189,144
   
$
(3,857
)
   
35
   
$
772,085
   
$
(8,299
)
   
155
 
                                                                         
HTM securities:
                                                                       
Mortgage-backed
 
$
51,166
   
$
(685
)
   
4
   
$
-
   
$
-
     
-
   
$
51,166
   
$
(685
)
   
4
 
Collateralized mortgage obligations
   
49,394
     
(160
)
   
7
     
31,627
     
(943
)
   
4
     
81,021
     
(1,103
)
   
11
 
  State & municipal
   
16,811
     
(188
)
   
21
     
12,591
     
(346
)
   
21
     
29,402
     
(534
)
   
42
 
Total securities with unrealized losses
 
$
117,371
   
$
(1,033
)
   
32
   
$
44,218
   
$
(1,289
)
   
25
   
$
161,589
   
$
(2,322
)
   
57
 
                                                                         
December 31, 2016
                                                                       
AFS securities:
                                                                       
Federal agency
 
$
119,363
   
$
(805
)
   
10
   
$
-
   
$
-
     
-
   
$
119,363
   
$
(805
)
   
10
 
State & municipal
   
31,873
     
(478
)
   
55
     
483
     
(2
)
   
1
     
32,356
     
(480
)
   
56
 
Mortgage-backed
   
277,524
     
(2,668
)
   
49
     
985
     
(13
)
   
4
     
278,509
     
(2,681
)
   
53
 
Collateralized mortgage obligations
   
473,746
     
(8,396
)
   
57
     
-
     
-
     
-
     
473,746
     
(8,396
)
   
57
 
Other securities
   
-
     
-
     
-
     
4,363
     
(1,504
)
   
2
     
4,363
     
(1,504
)
   
2
 
Total securities with unrealized losses
 
$
902,506
   
$
(12,347
)
   
171
   
$
5,831
   
$
(1,519
)
   
7
   
$
908,337
   
$
(13,866
)
   
178
 
 
                                                                       
HTM securities:
                                                                       
Mortgage-backed
 
$
95,492
   
$
(1,176
)
   
5
   
$
-
   
$
-
     
-
   
$
95,492
   
$
(1,176
)
   
5
 
Collateralized mortgage obligations
   
108,587
     
(319
)
   
12
     
35,209
     
(1,189
)
   
4
     
143,796
     
(1,508
)
   
16
 
State & municipal
   
81,984
     
(1,795
)
   
155
     
-
     
-
     
-
     
81,984
     
(1,795
)
   
155
 
Total securities with unrealized losses
 
$
286,063
   
$
(3,290
)
   
172
   
$
35,209
   
$
(1,189
)
   
4
   
$
321,272
   
$
(4,479
)
   
176
 
 
Declines in the fair value of HTM and AFS securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses or in other comprehensive income. Depending on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI shall be separated into (a) the amount representing the credit loss and (b) the amount related to all other factors. The amount of the total OTTI related to the credit loss shall be recognized in earnings. The amount of the total OTTI related to other factors shall be recognized in other comprehensive income, net of applicable taxes.

In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the historical and implied volatility of the fair value of the security.

Management has the intent to hold the securities classified as HTM until they mature, at which time it is believed the Company will receive full value for the securities. The unrealized losses on HTM debt securities are due to increases in market interest rates over yields at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. The fair value is expected to recover as the bond approaches their maturity date or repricing date or if market yields for such investments decline.

Management also has the intent to hold and will not be required to sell, the securities classified as AFS for a period of time sufficient for a recovery of cost, which may be until maturity. The unrealized losses on AFS debt securities are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. For AFS debt and equity securities, OTTI losses are recognized in earnings if the Company intends to sell the security. In other cases the Company considers the relevant factors noted above, as well as the Company’s intent and ability to retain its investment for a period of time sufficient to allow for any anticipated recovery in market value and whether evidence exists to support a realizable value equal to or greater than the cost basis. Any impairment loss on an equity security is equal to the full difference between the cost basis and the fair value of the security.

As of September 30, 2017 and December 31, 2016, management believes the impairments detailed in the table above are temporary. There were no impairments realized in the three months ended September 30, 2017. For the nine months ended September 30, 2017, $1.3 million of an OTTI loss on an AFS equity investment was realized in the Company’s unaudited interim consolidated statements of income. There were no OTTI losses realized in the Company’s unaudited interim consolidated statements of income for the three and nine months ended September 30, 2016.

During the three and nine months ended September 30, 2017, the Company sold HTM securities with an amortized cost of $0.8 million and an unrealized loss of $2 thousand. Due to significant deterioration in the creditworthiness of the issuers of the HTM securities, the circumstances caused the Company to change its intent to hold the HTM securities sold to maturity, which did not affect the Company’s intent to hold the remainder of the HTM portfolio to maturity. There were no sales of HTM securities in the three and nine month periods ended September 30, 2016.

The following tables set forth information with regard to contractual maturities of debt securities at September 30, 2017:
 
(In thousands)
 
Amortized
cost
   
Estimated
fair value
 
AFS debt securities:
           
Within one year
 
$
92,405
   
$
92,429
 
From one to five years
   
84,442
     
84,598
 
From five to ten years
   
179,854
     
180,667
 
After ten years
   
984,111
     
980,181
 
 
 
$
1,340,812
   
$
1,337,875
 
HTM debt securities:
               
Within one year
 
$
28,489
   
$
28,493
 
From one to five years
   
38,321
     
38,702
 
From five to ten years
   
144,621
     
145,547
 
After ten years
   
282,878
     
282,669
 
 
 
$
494,309
   
$
495,411
 
 
Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
 
Except for U.S. Government securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at September 30, 2017 and December 31, 2016.

4.
Allowance for Loan Losses and Credit Quality of Loans

Allowance for Loan Losses

The allowance for loan losses is maintained at a level estimated by management to provide adequately for probable incurred losses inherent in the current loan portfolio. The appropriateness of the allowance for loan losses is continuously monitored. It is assessed for appropriateness using a methodology designed to ensure the level of the allowance reasonably reflects the loan portfolio’s risk profile. It is evaluated to ensure that it is sufficient to absorb all reasonably estimable credit losses inherent in the current loan portfolio.

To develop and document a systematic methodology for determining the allowance for loan losses, the Company has divided the loan portfolio into three segments, each with different risk characteristics and methodologies for assessing risk. Those segments are further segregated between our loans accounted for under the amortized cost method (referred to as “originated” loans) and loans acquired in a business combination (referred to as “acquired” loans). Each portfolio segment is broken down into class segments where appropriate. Class segments contain unique measurement attributes, risk characteristics and methods for monitoring and assessing risk that are necessary to develop the allowance for loan losses. Unique characteristics such as borrower type, loan type, collateral type and risk characteristics define each class segment. The following table illustrates the portfolio and class segments for the Company’s loan portfolio:

Portfolio
Class
Commercial Loans
Commercial
 
Commercial Real Estate
 
Agricultural
 
Agricultural Real Estate
 
Business Banking
Consumer Loans
Indirect
 
Home Equity
 
Direct
Residential Real Estate Mortgages
 

Commercial Loans

The Company offers a variety of commercial loan products including commercial (non-real estate), commercial real estate, agricultural, agricultural real estate and business banking loans. The Company’s underwriting analysis for commercial loans typically includes credit verification, independent appraisals, a review of the borrower’s financial condition and a detailed analysis of the borrower’s underlying cash flows.

Commercial The Company offers a variety of loan options to meet the specific needs of our commercial customers including term loans, time notes and lines of credit. Such loans are made available to businesses for working capital needs such as inventory and receivables, business expansion and equipment purchases. Generally, a collateral lien is placed on equipment or other assets owned by the borrower. These loans typically carry a higher risk than commercial real estate loans due to the nature of the underlying collateral, which can be business assets such as equipment and accounts receivable, which are generally less liquid than real estate. To reduce the risk, management also attempts to secure real estate as collateral and obtain personal guarantees of the borrowers.

Commercial Real Estate – The Company offers commercial real estate loans to finance real estate purchases, refinancings, expansions and improvements to commercial properties. Commercial real estate loans are made to finance the purchases of real property, which generally consist of real estate with completed structures. These commercial real estate loans are secured by liens on the real estate, which may include both owner occupied and non-owner-occupied properties, such as apartments, commercial structures, housing businesses, health care facilities and other facilities. These loans are typically less risky than commercial loans, since they are secured by real estate and buildings. The Company’s underwriting analysis includes credit verification, independent appraisals, a review of the borrower’s financial condition and a detailed analysis of the borrower’s underlying cash flows. These loans are typically originated in amounts of no more than 80% of the appraised value of the property.

Agricultural – The Company offers a variety of agricultural loans to meet the needs of our agricultural customers including term loans, time notes and lines of credit. These loans are made to purchase livestock, purchase and modernize equipment and finance seasonal crop expenses. Generally, a collateral lien is placed on the livestock, equipment, produce inventories and/or receivables owned by the borrower. These loans may carry a higher risk than commercial and agricultural real estate loans due to the industry price volatility and in some cases, the perishable nature of the underlying collateral. To reduce these risks, management may attempt to secure these loans with additional real estate collateral, obtain personal guarantees of the borrowers or obtain government loan guarantees to provide further support.
 
Agricultural Real Estate – The Company offers real estate loans to our agricultural customers to finance farm related real estate purchases, refinancings, expansions and improvements to agricultural properties. Agricultural real estate loans are made to finance the purchase and improvements of farm properties that generally consist of barns, production facilities and land. The agricultural real estate loans are secured by liens on the farm real estate. Because they are secured by land and buildings, these loans may be less risky than agricultural loans. The Company’s underwriting analysis includes credit verification, independent appraisals, a review of the borrower’s financial condition and a detailed analysis of the borrower’s underlying cash flows. These loans are typically originated in amounts of no more than 75% of the appraised value of the property. Government loan guarantees may be obtained to provide further support.

Business Banking  The Company offers a variety of loan options to meet the specific needs of our business banking customers including term loans, business banking mortgages and lines of credit. Such loans are generally less than $0.8 million and are made available to businesses for working capital such as inventory and receivables, business expansion, equipment purchases and agricultural needs. Generally, a collateral lien is placed on equipment or other assets owned by the borrower such as inventory and/or receivables. These loans carry a higher risk than commercial loans due to the smaller size of the borrower and lower levels of capital. To reduce these risks, the Company obtains personal guarantees of the owners for a majority of the loans.

Consumer Loans

The Company offers a variety of consumer loan products including indirect, home equity and direct loans.

Indirect – The Company maintains relationships with many dealers primarily in the communities that we serve. Through these relationships, the Company primarily finances the purchases of automobiles and recreational vehicles (such as campers, boats, etc.) indirectly through dealer relationships. Approximately 70% of the indirect relationships represent automobile financing. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from three to six years, based upon the nature of the collateral and the size of the loan.  The majority of indirect consumer loans are underwritten on a secured basis using the underlying collateral being financed. As of September 30, 2017 and December 31, 2016, respectively, the consumer loan portfolio includes $400.9 million and $374.9 million of unsecured consumer loans across a national footprint originated through our relationship with national technology-driven consumer lending companies. Advances of credit through this specialty lending business line are to prime borrowers and are subject to the Company’s underwriting standards.

Home Equity The Company offers fixed home equity loans as well as home equity lines of credit to consumers to finance home improvements, debt consolidation, education and other uses. Consumers are able to borrow up to 85% of the equity in their homes. The Company originates home equity lines of credit and second mortgage loans (loans secured by a second lien position on one-to-four-family residential real estate). These loans carry a higher risk than first mortgage residential loans as they are in a second position with respect to collateral. Risk is reduced through underwriting criteria, which include credit verification, appraisals, a review of the borrower’s financial condition and personal cash flows. A security interest, with title insurance when necessary, is taken in the underlying real estate.

Direct – The Company offers a variety of consumer installment loans to finance vehicle purchases, mobile home purchases and personal expenditures. Most of these loans carry a fixed rate of interest with principal repayment terms typically ranging from one to ten years, based upon the nature of the collateral and the size of the loan. The majority of consumer loans are underwritten on a secured basis using the underlying collateral being financed or a customer’s deposit account. In addition to installment loans, the Company also offers personal lines of credit and overdraft protection. A minimal amount of loans are unsecured, which carry a higher risk of loss.

Residential Real Estate Mortgages

Residential real estate loans consist primarily of loans secured by first or second deeds of trust on primary residences. We originate adjustable-rate and fixed-rate, one-to-four-family residential real estate loans for the construction, purchase or refinancing of a mortgage. These loans are collateralized by owner-occupied properties located in the Company’s market area. When market conditions are favorable, for longer term, fixed-rate residential mortgages without escrow, the Company retains the servicing, but sells the right to receive principal and interest to Freddie Mac. This practice allows the Company to manage interest rate, liquidity risk and credit risk. Loans on one-to-four-family residential real estate are generally originated in amounts of no more than 85% of the purchase price or appraised value (whichever is lower) or have private mortgage insurance. Mortgage title insurance and hazard insurance are normally required. Construction loans have a unique risk, because they are secured by an incomplete dwelling. This risk is reduced through periodic site inspections, including one at each loan draw period.
 
Allowance for Loan Loss Calculation

For purposes of evaluating the adequacy of the allowance, the Company considers a number of significant factors that affect the collectability of the portfolio. For individually analyzed loans, these include estimates of loss exposure, which reflect the facts and circumstances that affect the likelihood of repayment of such loans as of the evaluation date. For homogeneous pools of loans, estimates of the Company’s exposure to credit loss reflect a current assessment of a number of factors, which could affect collectability. These factors include:  past loss experience, size, trend, composition and nature of loans;  changes in lending policies and procedures, including underwriting standards and collection,  charge-offs  and  recoveries; trends experienced in nonperforming and delinquent loans; current economic conditions in the Company’s market; portfolio concentrations that may affect loss experienced across one or more components of the portfolio; the effect of external factors such as competition, legal and regulatory requirements; and the experience, ability and depth of lending management and staff.

In addition, various regulatory agencies, as an integral component of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to make loan grade changes as well as recognize additions to the allowance based on their examinations.
 
After a thorough consideration of the factors discussed above, any required additions or reductions to the allowance for loan losses are made periodically by charges or credits to the provision for loan losses. These charges are necessary to maintain the allowance at a level that management believes is reflective of overall inherent risk of probable loss in the portfolio. While management uses available information to recognize losses on loans, additions and reductions of the allowance may fluctuate from one reporting period to another. These fluctuations are reflective of changes in risk associated with portfolio content and/or changes in management’s assessment of any or all of the determining factors discussed above.
 
The following tables illustrate the changes in the allowance for loan losses by our portfolio segments:
 
Three months ended September 30,
(In thousands)
 
Commercial
Loans
   
Consumer
Loans
   
Residential
Real Estate
Mortgages
   
Unallocated
   
Total
 
Balance as of June 30, 2017
 
$
24,428
   
$
35,523
   
$
6,649
   
$
-
   
$
66,600
 
Charge-offs
   
(574
)
   
(6,979
)
   
(421
)
   
-
     
(7,974
)
Recoveries
   
266
     
1,446
     
123
     
-
     
1,835
 
Provision
   
1,434
     
6,197
     
258
     
-
     
7,889
 
Ending Balance as of September 30, 2017
 
$
25,554
   
$
36,187
   
$
6,609
   
$
-
   
$
68,350
 
 
                                       
Balance as of June 30, 2016
 
$
25,222
   
$
31,471
   
$
7,875
   
$
-
   
$
64,568
 
Charge-offs
   
(637
)
   
(6,046
)
   
(142
)
   
-
     
(6,825
)
Recoveries
   
512
     
898
     
127
     
-
     
1,537
 
Provision
   
1,514
     
6,078
     
(1,481
)
   
277
     
6,388
 
Ending Balance as of September 30, 2016
 
$
26,611
   
$
32,401
   
$
6,379
   
$
277
   
$
65,668
 
  
Nine months ended September 30,
 
 
Commercial
Loans
   
Consumer
Loans
   
Residential
Real Estate
Mortgages
   
Unallocated
   
Total
 
Balance as of December 31, 2016
 
$
25,444
   
$
33,375
   
$
6,381
   
$
-
   
$
65,200
 
Charge-offs
   
(2,991
)
   
(19,742
)
   
(1,717
)
   
-
     
(24,450
)
Recoveries
   
919
     
3,680
     
166
     
-
     
4,765
 
Provision
   
2,182
     
18,874
     
1,779
     
-
     
22,835
 
Ending Balance as of September 30, 2017
 
$
25,554
   
$
36,187
   
$
6,609
   
$
-
   
$
68,350
 
 
                                       
Balance as of December 31, 2015
 
$
25,545
   
$
29,253
   
$
7,960
   
$
260
   
$
63,018
 
Charge-offs
   
(1,723
)
   
(16,409
)
   
(1,119
)
   
-
     
(19,251
)
Recoveries
   
1,616
     
2,779
     
240
     
-
     
4,635
 
Provision
   
1,173
     
16,778
     
(702
)
   
17
     
17,266
 
Ending Balance as of September 30, 2016
 
$
26,611
   
$
32,401
   
$
6,379
   
$
277
   
$
65,668
 

For acquired loans, to the extent that we experience deterioration in borrower credit quality resulting in a decrease in our expected cash flows subsequent to the acquisition of the loans, an allowance for loan losses would be established based on our estimate of future credit losses over the remaining life of the loan. There was no allowance for loan losses for the acquired loan portfolio as of September 30, 2017 and $0.7 million as of September 30, 2016. There were no charge-offs related to acquired loans during the three months ended September 30, 2017 and totaled $0.1 million during the three months ended September 30, 2016. Net charge-offs related to acquired loans were $0.7 million and $0.4 million during the nine months ended September 30, 2017 and 2016, respectively and are included in the table above.

The following tables illustrate the allowance for loan losses and the recorded investment by portfolio segments:
  
As of September 30, 2017
(In thousands)
 
Commercial
Loans
   
Consumer
Loans
   
Residential
Real Estate Mortgages
   
Total
 
                         
Allowance for loan losses
 
$
25,554
   
$
36,187
   
$
6,609
   
$
68,350
 
Allowance for loans individually evaluated for impairment
   
30
     
-
     
-
     
30
 
Allowance for loans collectively evaluated for impairment
 
$
25,524
   
$
36,187
   
$
6,609
   
$
68,320
 
Ending balance of loans
 
$
2,962,287
   
$
2,202,070
   
$
1,302,577
   
$
6,466,934
 
Ending balance of originated loans individually evaluated for impairment
 
$
4,855
   
$
8,307
   
$
6,574
   
$
19,736
 
Ending balance of acquired loans collectively evaluated for impairment
 
$
196,444
   
$
47,986
   
$
177,393
   
$
421,823
 
Ending balance of originated loans collectively evaluated for impairment
 
$
2,760,988
   
$
2,145,777
   
$
1,118,610
   
$
6,025,375
 
 
                               
As of December 31, 2016
                               
Allowance for loan losses
 
$
25,444
   
$
33,375
   
$
6,381
   
$
65,200
 
Allowance for loans individually evaluated for impairment
   
1,517
     
-
     
-
     
1,517
 
Allowance for loans collectively evaluated for impairment
 
$
23,927
   
$
33,375
   
$
6,381
   
$
63,683
 
Ending balance of loans
 
$
2,786,002
   
$
2,149,441
   
$
1,262,614
   
$
6,198,057
 
Ending balance of originated loans individually evaluated for impairment
 
$
13,070
   
$
8,488
   
$
6,111
   
$
27,669
 
Ending balance of acquired loans individually evaluated for impairment
 
$
1,205
   
$
-
   
$
-
   
$
1,205
 
Ending balance of acquired loans collectively evaluated for impairment
 
$
236,413
   
$
63,005
   
$
199,471
   
$
498,889
 
Ending balance of originated loans collectively evaluated for impairment
 
$
2,535,314
   
$
2,077,948
   
$
1,057,032
   
$
5,670,294
 
 
Credit Quality of Loans

For all loan classes within the Company’s loan portfolio, loans are placed on nonaccrual status when timely collection of principal and interest in accordance with contractual terms is doubtful. Loans are transferred to nonaccrual status generally when principal or interest payments become ninety days delinquent, unless the loan is well-secured and in the process of collection or sooner when management concludes or circumstances indicate that borrowers may be unable to meet contractual principal or interest payments. When a loan is transferred to a nonaccrual status, all interest previously accrued in the current period but not collected is reversed against interest income in that period. Any payment received on a nonaccrual loan is applied to principal. For all loan classes within the Company’s loan portfolio, nonaccrual loans are returned to accrual status when they become current as to principal and interest and demonstrate a period of performance under the contractual terms and, in the opinion of management, are fully collectible as to principal and interest. For loans in all portfolios, the principal amount is charged off in full or in part as soon as management determines, based on available facts, that the collection of principal in full is improbable. For commercial loans, management considers specific facts and circumstances relative to individual credits in making such a determination. For consumer and residential loan classes, management uses specific guidance and thresholds from the Federal Financial Institutions Examination Council’s Uniform Retail Credit Classification and Account Management Policy.

The following tables set forth information with regard to past due and nonperforming loans by loan class:

As of September 30, 2017
(In thousands)
 
31-60 Days
Past Due
Accruing
   
61-90 Days
Past Due
Accruing
   
Greater Than
90 Days
Past Due
Accruing
   
Total
Past Due
Accruing
   
Nonaccrual
   
Current
   
Recorded
Total
Loans
 
Originated
                                         
Commercial Loans:
                                         
Commercial
 
$
1
   
$
156
   
$
-
   
$
157
   
$
430
   
$
732,535
   
$
733,122
 
Commercial Real Estate
   
1,274
     
-
     
-
     
1,274
     
2,020
     
1,477,265
     
1,480,559
 
Agricultural
   
-
     
-
     
-
     
-
     
391
     
34,448
     
34,839
 
Agricultural Real Estate
   
234
     
-
     
-
     
234
     
1,658
     
33,499
     
35,391
 
Business Banking
   
2,057
     
91
     
-
     
2,148
     
4,640
     
475,144
     
481,932
 
Total Commercial Loans
 
$
3,566
   
$
247
   
$
-
   
$
3,813
   
$
9,139
   
$
2,752,891
   
$
2,765,843
 
Consumer Loans:
                                                       
Indirect
 
$
18,755
   
$
5,112
   
$
2,452
   
$
26,319
   
$
2,069
   
$
1,602,890
   
$
1,631,278
 
Home Equity
   
2,933
     
628
     
213
     
3,774
     
2,790
     
452,189
     
458,753
 
Direct
   
319
     
47
     
79
     
445
     
78
     
63,530
     
64,053
 
Total Consumer Loans
 
$
22,007
   
$
5,787
   
$
2,744
   
$
30,538
   
$
4,937
   
$
2,118,609
   
$
2,154,084
 
Residential Real Estate Mortgages
 
$
3,812
   
$
246
   
$
597
   
$
4,655
   
$
6,180
   
$
1,114,349
   
$
1,125,184
 
Total Originated Loans
 
$
29,385
   
$
6,280
   
$
3,341
   
$
39,006
   
$
20,256
   
$
5,985,849
   
$
6,045,111
 
 
                                                       
Acquired
                                                       
Commercial Loans:
                                                       
Commercial
 
$
-
   
$
-
   
$
-
   
$
-
   
$
-
   
$
39,037
   
$
39,037
 
Commercial Real Estate
   
-
     
-
     
-
     
-
     
501
     
112,810
     
113,311
 
Business Banking
   
355
     
275
     
-
     
630
     
773
     
42,693
     
44,096
 
Total Commercial Loans
 
$
355
   
$
275
   
$
-
   
$
630
   
$
1,274
   
$
194,540
   
$
196,444
 
Consumer Loans: