Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 03, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'ENTERPRISE BANCORP INC /MA/ | ' | ' |
Entity Central Index Key | '0001018399 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 10,036,489 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $134,603,520 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ' | ' |
Cash and due from banks | $41,362 | $38,007 |
Interest-earning deposits | 10,153 | 12,218 |
Fed funds sold | 2,218 | 2,510 |
Total cash and cash equivalents | 53,733 | 52,735 |
Investment securities at fair value | 215,369 | 184,464 |
Federal Home Loan Bank Stock | 4,324 | 4,260 |
Loans held for sale | 1,255 | 8,557 |
Loans, less allowance for loan losses of $26,967 and $24,254 at December 31, 2013 and 2012, respectively | 1,497,089 | 1,335,401 |
Premises and equipment | 29,891 | 27,206 |
Accrued interest receivable | 6,186 | 5,828 |
Deferred income taxes, net | 13,927 | 12,548 |
Bank-owned life insurance | 15,902 | 15,443 |
Prepaid income taxes | 443 | 174 |
Prepaid expenses and other assets | 6,150 | 13,454 |
Goodwill | 5,656 | 5,656 |
Total assets | 1,849,925 | 1,665,726 |
Liabilities | ' | ' |
Deposits | 1,635,992 | 1,475,027 |
Borrowed funds | 36,534 | 26,540 |
Junior subordinated debentures | 10,825 | 10,825 |
Accrued expenses and other liabilities | 14,675 | 13,182 |
Accrued interest payable | 565 | 603 |
Total liabilities | 1,698,591 | 1,526,177 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock $0.01 par value per share; 20,000,000 shares authorized; 9,992,560 issued and outstanding at December 31, 2013 (including 170,365 shares of unvested participating restricted awards) and 9,676,477 shares issued and outstanding at December 31, 2012 (including 154,186 shares of unvested participating restricted awards) | 100 | 97 |
Additional paid-in capital | 52,936 | 48,194 |
Retained earnings | 96,153 | 87,159 |
Accumulated other comprehensive income | 2,145 | 4,099 |
Total stockholders’ equity | 151,334 | 139,549 |
Total liabilities and stockholders' equity | $1,849,925 | $1,665,726 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, except Share data, unless otherwise specified | ||||
Statement of Financial Position [Abstract] | ' | ' | ' | ' |
Allowance for loan losses | $26,967 | $24,254 | $23,160 | $19,415 |
Common stock, par value | $0.01 | $0.01 | ' | ' |
Common stock, shares authorized | 20,000,000 | 20,000,000 | ' | ' |
Common stock, shares issued | 9,992,560 | 9,676,477 | ' | ' |
Common stock, shares outstanding | 9,992,560 | 9,676,477 | ' | ' |
Preferred stock, par value | $0.01 | $0.01 | ' | ' |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ' | ' |
Preferred stock, shares issued | 0 | 0 | ' | ' |
Unvested participating restricted stock awards | 170,365 | 154,186 | ' | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest and dividend income: | ' | ' | ' |
Loans and loans held for sale | $67,673 | $64,945 | $63,363 |
Investment securities | 3,381 | 3,378 | 3,539 |
Other interest-earning assets | 68 | 82 | 67 |
Total interest and dividend income | 71,122 | 68,405 | 66,969 |
Interest expense: | ' | ' | ' |
Deposits | 4,058 | 5,264 | 7,379 |
Borrowed funds | 96 | 54 | 87 |
Junior subordinated debentures | 1,177 | 1,177 | 1,177 |
Total interest expense | 5,331 | 6,495 | 8,643 |
Net interest income | 65,791 | 61,910 | 58,326 |
Provision for loan losses | 3,279 | 2,750 | 5,197 |
Net interest income after provision for loan losses | 62,512 | 59,160 | 53,129 |
Non-interest income: | ' | ' | ' |
Investment advisory fees | 4,285 | 3,838 | 3,728 |
Deposit and interchange fees | 4,788 | 4,500 | 4,438 |
Income on bank-owned life insurance,net | 459 | 506 | 548 |
Net gains on sales of investment securities | 1,239 | 236 | 791 |
Gains on sales of loans | 792 | 989 | 687 |
Other income | 2,229 | 2,106 | 1,750 |
Total non-interest income | 13,792 | 12,175 | 11,942 |
Non-interest expense: | ' | ' | ' |
Salaries and employee benefits | 33,551 | 32,034 | 28,671 |
Occupancy and equipment expenses | 6,035 | 5,678 | 5,485 |
Technology and telecommunications expenses | 4,647 | 4,316 | 3,886 |
Advertising and public relations expenses | 2,708 | 2,267 | 2,661 |
Audit, legal and other professional fees | 1,742 | 1,675 | 1,393 |
Deposit insurance premiums | 1,118 | 1,064 | 1,319 |
Supplies and postage expenses | 967 | 925 | 882 |
Investment advisory and custodial expenses | 540 | 438 | 412 |
Other operating expenses | 4,516 | 4,215 | 4,257 |
Total non-interest expense | 55,824 | 52,612 | 48,966 |
Income before income taxes | 20,480 | 18,723 | 16,105 |
Provision for income taxes | 6,951 | 6,348 | 5,161 |
Net income | $13,529 | $12,375 | $10,944 |
Basic earnings per share | $1.37 | $1.29 | $1.16 |
Diluted earnings per share | $1.36 | $1.28 | $1.16 |
Basic weighted average common shares outstanding | 9,862,678 | 9,586,783 | 9,401,714 |
Diluted weighted average common shares outstanding | 9,950,609 | 9,660,676 | 9,445,725 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $13,529 | $12,375 | $10,944 |
Other comprehensive income, net of taxes: | ' | ' | ' |
Gross unrealized holding gains on investments arising during the period | -1,910 | 1,625 | 2,670 |
Income tax expense | 752 | -569 | -953 |
Net unrealized holding gains, net of tax | -1,158 | 1,056 | 1,717 |
Less: Reclassification adjustment for impairment included in net income: | ' | ' | ' |
Other than temporary impairment loss arising during the period | 0 | 0 | -3 |
Income tax benefit | 0 | 0 | 1 |
Reclassification adjustment for impairment realized, net of tax | 0 | 0 | -2 |
Less: Reclassification adjustment for net gains included in net income | ' | ' | ' |
Net realized gains on sales of securities during the period | 1,239 | 236 | 791 |
Income tax expense | -443 | -83 | -278 |
Reclassification adjustment for gains realized, net of tax | 796 | 153 | 513 |
Total other comprehensive income (loss) | -1,954 | 903 | 1,206 |
Comprehensive income | $11,575 | $13,278 | $12,150 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated OtherComprehensive Income/(Loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Balance, beginning at Dec. 31, 2010 | $116,673 | $93 | $42,590 | $72,000 | $1,990 |
Balance, beginning, shares, outstanding at Dec. 31, 2010 | ' | 9,290,465 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 10,944 | ' | ' | 10,944 | ' |
Other comprehensive income (loss), net | 1,206 | ' | ' | ' | 1,206 |
Tax benefit from exercise of stock options | 4 | ' | 4 | ' | ' |
Common stock dividend paid | -3,945 | ' | ' | -3,945 | ' |
Common stock issued under dividend reinvestment plan, shares | ' | 84,760 | ' | ' | ' |
Common stock issued under dividend reinvestment plan | 1,254 | 1 | 1,253 | ' | ' |
Stock-based compensation, shares | ' | 72,405 | ' | ' | ' |
Stock-based compensation | 1,003 | 1 | 1,002 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net of Stock Swaps | ' | 25,118 | ' | ' | ' |
Stock options exercised, net | 309 | 0 | 309 | ' | ' |
Balance, ending at Dec. 31, 2011 | 127,448 | 95 | 45,158 | 78,999 | 3,196 |
Balance, ending, shares, outstanding at Dec. 31, 2011 | ' | 9,472,748 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 12,375 | ' | ' | 12,375 | ' |
Other comprehensive income (loss), net | 903 | ' | ' | ' | 903 |
Tax benefit from exercise of stock options | 2 | ' | 2 | ' | ' |
Common stock dividend paid | -4,215 | ' | ' | -4,215 | ' |
Common stock issued under dividend reinvestment plan, shares | ' | 80,392 | ' | ' | ' |
Common stock issued under dividend reinvestment plan | 1,274 | 1 | 1,273 | ' | ' |
Stock-based compensation, shares | ' | 82,955 | ' | ' | ' |
Stock-based compensation | 1,253 | 1 | 1,252 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net of Stock Swaps | ' | 40,382 | ' | ' | ' |
Stock options exercised, net | 509 | 0 | 509 | ' | ' |
Balance, ending at Dec. 31, 2012 | 139,549 | 97 | 48,194 | 87,159 | 4,099 |
Balance, ending, shares, outstanding at Dec. 31, 2012 | 9,676,477 | 9,676,477 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 13,529 | ' | ' | 13,529 | ' |
Other comprehensive income (loss), net | -1,954 | ' | ' | ' | -1,954 |
Tax benefit from exercise of stock options | 25 | ' | 25 | ' | ' |
Common stock dividend paid | -4,535 | ' | ' | -4,535 | ' |
Common stock issued under dividend reinvestment plan, shares | ' | 69,633 | ' | ' | ' |
Common stock issued under dividend reinvestment plan | 1,239 | 1 | 1,238 | ' | ' |
Stock-based compensation, shares | ' | 90,824 | ' | ' | ' |
Stock-based compensation | 1,652 | 1 | 1,651 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Net of Stock Swaps | ' | 155,626 | ' | ' | ' |
Stock options exercised, net | 1,829 | 1 | 1,828 | ' | ' |
Balance, ending at Dec. 31, 2013 | $151,334 | $100 | $52,936 | $96,153 | $2,145 |
Balance, ending, shares, outstanding at Dec. 31, 2013 | 9,992,560 | 9,992,560 | ' | ' | ' |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Common stock dividend paid, per share | $0.46 | $0.44 | $0.42 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $13,529 | $12,375 | $10,944 |
Adjustments to reconcile net income to net cash | ' | ' | ' |
Provision for loan losses | 3,279 | 2,750 | 5,197 |
Depreciation and amortization | 5,015 | 4,485 | 4,125 |
Stock-based compensation expense | 1,662 | 1,271 | 1,035 |
Mortgage loans originated for sale | -35,284 | -54,248 | -35,717 |
Proceeds from mortgage loans sold | 43,378 | 51,741 | 37,751 |
Net gains on sales of loans | -792 | -989 | -687 |
Net gains on sales of OREO | -121 | -87 | 0 |
Net gains on sales of investment | -1,239 | -236 | -791 |
Other-than-temporary-impairment of investments | 0 | 0 | 3 |
Income on bank-owned life insurance, net | -459 | -506 | -548 |
OREO fair value adjustment | 23 | 0 | 0 |
Changes in: | ' | ' | ' |
Accrued interest receivable | -358 | -7 | -289 |
Prepaid expenses and other assets | 6,592 | -3,207 | -824 |
Deferred income taxes | -183 | -625 | -2,039 |
Accrued expenses and other liabilities | 780 | 1,387 | 2,456 |
Accrued interest payable | -38 | -148 | -163 |
Net cash provided by operating activities | 35,784 | 13,956 | 20,453 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sales of investment securities available for sale | 9,564 | 3,545 | 11,344 |
Net proceeds (purchase) from FHLB capital stock | -64 | 480 | 0 |
Proceeds from maturities, calls and pay-downs of investment securities | 27,923 | 37,283 | 55,746 |
Purchase of investment securities | -70,663 | -83,964 | -63,085 |
Net increase in loans | -165,135 | -116,458 | -111,162 |
Additions to premises and equipment, net | -6,580 | -4,330 | -5,433 |
Proceeds from OREO sales and payments | 652 | 1,852 | 600 |
Purchase of OREO | 0 | -245 | 0 |
Net cash used in investing activities | -204,303 | -161,837 | -111,990 |
Cash flows from financing activities: | ' | ' | ' |
Net increase in deposits | 160,965 | 141,869 | 89,087 |
Net increase (decrease) in borrowed funds | 9,994 | 22,046 | -11,047 |
Cash dividends paid | -4,535 | -4,215 | -3,945 |
Proceeds from issuance of common stock | 1,239 | 1,274 | 1,254 |
Proceeds from exercise of stock options | 1,829 | 509 | 309 |
Tax benefit from exercise of stock options | 25 | 2 | 4 |
Net cash used in financing activities | 169,517 | 161,485 | 75,662 |
Net increase (decrease) in cash and cash equivalents | 998 | 13,604 | -15,875 |
Cash and cash equivalents, beginning of year | 52,735 | 39,131 | 55,006 |
Cash and cash equivalents, end of year | 53,733 | 52,735 | 39,131 |
Supplemental financial data: | ' | ' | ' |
Cash Paid For: Interest | 5,369 | 6,643 | 7,542 |
Cash Paid For: Income taxes | 7,342 | 6,611 | 7,112 |
Supplemental schedule of non-cash activity: | ' | ' | ' |
Purchase of investment securities not yet settled | 703 | 0 | 0 |
Transfer from loans to other real estate owned | 168 | 575 | 1,220 |
Capital expenditures incurred not yet paid | $0 | $0 | $710 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Summary of Significant Accounting Policies | ' | ||
Summary of Significant Accounting Policies | |||
(a) Organization of Holding Company and Basis of Presentation | |||
The consolidated financial statements of Enterprise Bancorp, Inc. (the “Company” or “Enterprise”), a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary Enterprise Bank and Trust Company (the “Bank”). The Bank is a Massachusetts trust company organized in 1989. Substantially all of the Company’s operations are conducted through the Bank. | |||
The Bank’s subsidiaries include Enterprise Insurance Services, LLC and Enterprise Investment Services, LLC, organized under the laws of the state of Delaware for the purposes of engaging in insurance sales activities and offering non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III, which hold various types of qualifying securities. The security corporations are limited to conducting securities investment activities that the Bank itself would be allowed to conduct under applicable laws. | |||
The Company has 22 full service branches serving the Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. Through the Bank and its subsidiaries, the Company offers a range of commercial and consumer loan products, deposit and cash management products, investment advisory and wealth management, trust and insurance services. The services offered through the Bank and its subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. | |||
Pursuant to the Accounting Standards Codification (“ASC”) Topic 810 “Consolidation of Variable Interest Entities,” issued by the Financial Accounting Standards Board ("FASB"), the Company carries Junior Subordinated Debentures as a liability on its consolidated financial statements, along with the related interest expense. The debentures were issued by a statutory business trust (the "Trust") created by the Company in March 2000 under the laws of the State of Delaware, and the trust preferred securities issued by the Trust, and the related non-interest expense, are excluded from the Company’s consolidated financial statements. | |||
The Federal Deposit Insurance Corporation (“FDIC”) and the Massachusetts Division of Banks (the “Division”) have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Commissioner also retains supervisory jurisdiction over the Company. | |||
In preparing the financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), management is required to exercise judgment in determining many of the methodologies, estimates and assumptions to be utilized. These estimates and assumptions affect the reported values of assets and liabilities at the balance sheet date and income and expenses for the years then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used change over time due to changes in circumstances. Changes in those estimates resulting from continuing change in the economic environment and other factors will be reflected in the financial statements and results of operations in future periods. The three most significant areas in which management applies critical assumptions and estimates are the estimate of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. | |||
The accompanying audited consolidated financial statements and notes thereto have been prepared in accordance with GAAP and the instructions for Form 10-K through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying consolidated financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying consolidated financial statements. | |||
(b) Cash and cash equivalents | |||
Cash equivalents are defined as highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of changes in value due to changes in interest rates. The Company's cash and cash equivalents are comprised of cash on hand and cash items due from banks, interest-earning deposits (deposit, money market, and money market mutual fund accounts) and overnight and term federal funds sold ("fed funds"). Balances in cash and cash equivalents will fluctuate resulting primarily from the timing of net deposit flows, borrowing and loan inflows and outflows, investment purchases and maturities, calls and sales proceeds, and the immediate liquidity needs of the Company. | |||
(c) Investments | |||
Investments that are intended to be held for indefinite periods of time but which may not be held to maturity or on a long-term basis are considered to be “available for sale” and are carried at fair value. Net unrealized appreciation and depreciation on investments available for sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income. Included as available for sale are securities that are purchased in connection with the Company’s asset-liability risk management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk and other related factors. In instances where the Company has the positive intent to hold investment securities to maturity, investment securities will be classified as held to maturity and carried at amortized cost. As of the balance sheet dates, all of the Company’s investment securities were classified as available for sale and carried at fair value. | |||
There are inherent risks associated with the Company’s investment activities which could adversely impact the fair market value and the ultimate collectability of the Company’s investments. Management regularly reviews the portfolio for securities with unrealized losses that are other than temporarily impaired. The determination of other-than-temporary impairment (“OTTI”) involves a high degree of judgment and requires management to make significant estimates of current market risks and future trends. Management's assessment, depending on the type of security includes: reviews of market pricing, evaluating the level and duration of the loss on individual securities; ongoing credit quality evaluations; determining if any individual security or mutual fund or other fund exhibits fundamental deterioration; and estimating whether it is unlikely that the individual security or fund will completely recover its unrealized loss within a reasonable period of time, or in the case of fixed income securities prior to maturity. While management uses available information to measure OTTI at the balance sheet date, future write-downs may be necessary based on extended duration of current unrealized losses, changing market conditions, or circumstances surrounding individual issuers and funds. | |||
Should an investment be deemed have OTTI, the Company is required to write-down the carrying value of the investment. OTTI on equity securities are recognized through a charge to earnings. OTTI on fixed income securities are assessed in order to determine the impairment attributed to underlying credit quality of the issuer and the portion of noncredit impairment. When there are credit losses on a fixed income security that management does not intend to sell and it is more likely than not that the Company will not be required to sell prior to a marketplace recovery or maturity, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the security’s amortized cost basis and its fair value would be included in other comprehensive income. Once written-down, a security may not be written-up in excess of its new cost basis to reflect future increases in market prices. Any OTTI charges, depending upon the magnitude of the charges, could have a material adverse effect on the Company’s financial condition and results of operations. | |||
Investment securities’ discounts are accreted and premiums are amortized over the period of estimated principal repayment using methods that approximate the interest method. | |||
Gains or losses on the sale of investment securities are recognized on the trade date on a specific identification basis. | |||
(d) Restricted Investments | |||
As a member of the Federal Home Loan Bank of Boston (“FHLB”), the Bank is required to purchase certain levels of FHLB stock in association with outstanding advances from the FHLB; this restricted stock investment is carried at cost on the balance sheet, which management believes approximates fair value. FHLB stock represents the only restricted investment held by the Company. | |||
In conjunction with the OTTI review noted above under investments, management also regularly reviews its holdings of FHLB stock for OTTI. Based on management’s ongoing review, the Company has not recorded any OTTI charges on this investment to date. However, if negative events or deterioration in the FHLB financial condition or capital levels occurs, the Company’s investment in FHLB capital stock may become other-than-temporarily impaired to some degree. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. | |||
(e) Loans Held for Sale | |||
Depending on the current interest rate environment, management projections of future interest rates and the overall asset-liability management program of the Company, management may elect to sell those fixed and adjustable rate residential mortgage loans which are eligible for sale in the secondary market. Loans held for sale are carried at the lower of aggregate amortized cost or market value. Market value is based on comparable market prices for loans with similar rates and terms. Mortgage loans are generally not pooled for sale, but instead sold on an individual basis. Enterprise may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan, and are subject to an early payment default period covering the first four payments for certain loan sales. When loans are sold, a gain or loss is recognized to the extent that the sales proceeds plus unamortized fees and costs exceed, or are less than, the carrying value of the loans. Gains and losses are determined using the specific identification method. | |||
(f) Loans | |||
Loans made by the Company to businesses include commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and standby letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner occupied primary and secondary residences, secured and unsecured personal loans and lines of credit. Most loans granted by the Company are collateralized by real estate or equipment and/or are guaranteed by the principals of the borrower. The ability and willingness of the single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity and real estate values within the borrowers’ geographic areas. The ability and willingness of commercial real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic areas and the general economy, among other factors. | |||
Loans are reported at the principal amount outstanding, net of deferred origination fees and costs. The aggregate amount of overdrawn deposit accounts are reclassified as loan balances. Loan origination fees received, offset by direct loan origination costs, are deferred and amortized using the straight line method over three to five years for lines of credit and demand notes or over the life of the related loans using the level-yield method for all other types of loans. When loans are paid off, the unamortized fees and costs are recognized as an adjustment to interest income. | |||
Loans acquired at a net premium are initially measured at fair value as of the acquisition date without carryover of historical allowance for loan losses. Credit discounts representing losses of unpaid loan principal balances expected over the life of the loans are included in the determination of acquisition date fair value. The fair-market valuation of loans acquired at a premium is amortized into interest income on a level-yield basis over the life of the loan. Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses are similar to originated loans. | |||
(g) Allowance for Loan Losses | |||
The allowance for loan losses is an estimate of credit risk inherent in the loan portfolio as of the specified balance sheet dates. The allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated losses from specifically known and other credit risks associated with the portfolio. | |||
The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology uses a two-tiered approach that makes use of specific reserves for loans individually evaluated and deemed impaired and general reserves for larger groups of homogeneous loans. | |||
On a quarterly basis, the Company prepares an estimate of the allowance necessary to cover estimated credit risk inherent in the portfolio as of the specified balance sheet dates. The adequacy of the allowance for loan losses is reviewed and evaluated on a regular basis by an internal management committee, a sub-committee of the Board of Directors and the full Board itself. | |||
While management uses available information to recognize losses on loans, future additions to the allowance may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. | |||
See Note 4, "Allowance for Loan Losses," for additional accounting policies related to non-accrual, impaired and troubled debt restructured loans and to the allowance for loan losses. | |||
(h) Other Real Estate Owned | |||
Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as Other Real Estate Owned (“OREO”). When property is acquired, it is generally recorded at the lesser of the loan’s remaining principal balance, net of unamortized deferred fees, or the estimated fair value of the property acquired, less estimated costs to sell. The estimated fair value is based on market appraisals and the Company’s internal analysis. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value are charged to non-interest expense. | |||
(i) Premises and Equipment | |||
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: | |||
Buildings, renovations and leasehold improvements | 10 to 39 years | ||
Computer software and equipment | 3 to 5 years | ||
Furniture, fixtures and equipment | 3 to 10 years | ||
(j) Bank Owned Life Insurance | |||
The Company has purchased bank owned life insurance (“BOLI”) on certain current and former senior and executive officers. The cash surrender value carried on the balance sheet at December 31, 2013 and December 31, 2012 amounted to $15.9 million and $15.4 million, respectively. There are no associated surrender charges under the outstanding policies. | |||
(k) Impairment of Long-Lived Assets Other than Goodwill | |||
The Company reviews long-lived assets, including premises and equipment, for impairment on an ongoing basis or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is recognized through a charge to earnings. Impairment losses on assets disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. | |||
(l) Goodwill | |||
Goodwill carried on the Company’s consolidated financial statements was $5.7 million at both December 31, 2013 and December 31, 2012. This asset is related to the Company’s acquisition of two branch offices in July 2000. | |||
In accordance with generally accepted accounting principles, the Company does not amortize goodwill and instead, at least annually, evaluates whether the carrying value of goodwill has become impaired. Impairment of the goodwill may occur when the estimated fair value of the Company is less than its recorded book value. A determination that goodwill has become impaired results in an immediate write-down of goodwill to its determined value with a resulting charge to operations. | |||
The annual impairment test begins with a qualitative assessment of whether it is more likely than not that the reporting unit's fair value is less than its carrying amount. The assessment is performed at the operating unit level. If an entity concludes it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. In the case of the Company, the services offered through the Bank and subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. | |||
Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was not considered to be impaired at December 31, 2013. | |||
If the Company's qualitative assessment concluded that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test, used to identify potential impairment, compares the estimated fair value of the reporting unit with its carrying amount, or the book value of the reporting unit, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. | |||
The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair values for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of that goodwill, an impairment loss is recognized in the amount required to write down the goodwill to the implied fair value. | |||
(m) Investment Assets Under Management | |||
Investment assets under management, consisting of assets managed through Enterprise Investment Advisors and Enterprise Investment Services and the commercial sweep product, totaled $667.3 million and $592.4 million at December 31, 2013 and 2012, respectively. Fee income is recorded on an accrual basis and recognized over the period in which it is earned. Securities and other property held in a fiduciary or agency capacity are not included in the consolidated balance sheets because they are not assets of the Company. | |||
(n) Derivatives | |||
The Company recognizes all derivatives as either assets or liabilities on its balance sheet and measures those instruments at fair market value. | |||
Interest rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. | |||
At December 31, 2013 and 2012, the estimated fair values of the Company’s derivative instruments were considered to be immaterial. These commitments represent the Company’s only derivative instruments. | |||
(o) Stock Based Compensation | |||
The Company’s financial statements include stock-based compensation expense for the portion of stock option awards, net of estimated forfeitures, and restricted stock awards for which the requisite service has been rendered during the period. The compensation expense has been estimated based on the estimated grant-date fair value of the awards, or in the case of restricted stock awards, the market value of the common stock on the date of grant. The Company will recognize the remaining estimated compensation expense for the portion of outstanding awards and compensation expense for any future awards, net of estimated forfeitures, as the requisite service is rendered (i.e., on a straight-line basis over the remaining vesting period of each award). Stock awards that do not require future service (“vested awards”) will be expensed immediately. Stock-based compensation also includes stock compensation for Directors in lieu of cash fees, which is described in more detail in Note 11 "Stock-Based Compensation Plans." | |||
(p) Income Taxes | |||
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities will be adjusted accordingly through the provision for income taxes. | |||
The Company’s policy is to classify interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law. The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position. | |||
The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at December 31, 2013 or December 31, 2012. The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2007 through 2013 tax years. | |||
(q) Earnings Per Share | |||
Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding (including participating securities) during the year. The Company's only participating securities are unvested restricted stock awards that contain non-forfeitable rights to dividends. Diluted earnings per share reflects the effect on weighted average shares outstanding of the number of additional shares outstanding if dilutive stock options were converted into common stock using the treasury stock method. | |||
(r) Reporting Comprehensive Income | |||
Comprehensive income is defined as all changes to equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. The Company’s only other comprehensive income component is the net unrealized holding gains or losses on investments available-for-sale, net of deferred income taxes. Pursuant to Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income, the Company initially excludes these unrealized holding gains and losses from net income; however, they are later reported as reclassifications out of accumulated other comprehensive income into net income when the securities are sold. When securities are sold, the reclassification of realized gains and losses on available-for-sale securities are included on the Consolidated Statements of Income under the "non-interest income" subheading on the line item "net gains on sales of investment securities" and the related income tax expense is included in the line item "provision for income taxes," both of which are also detailed on the Consolidated Statements of Comprehensive Income under the subheading "reclassification adjustment for net gains included in net income." | |||
(s) Recent Accounting Pronouncements | |||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments are intended to reduce diversity of practice by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a residential mortgage loan, such that the loan should be removed, and the real estate property recognized, on the financial statements. Additionally, the amendments require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in collateralized residential mortgage loans that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods beginning after December 15, 2014. As this ASU primarily offers clarification of existing standards and added disclosures, the adoption of this ASU in the first quarter of 2015 is not expected to have a material impact on the Company's financial statements, or results of operations. | |||
In January 2014, the FASB issued ASU No. 2014-01, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for such investments using the proportional amortization method if certain conditions are met. The investor must recognize any subsequent impairment loss when it is more likely than not that the carrying amount of the investment will not be realized. Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The decision to apply the proportional amortization method of accounting is an accounting policy decision that must be applied consistently to all qualifying affordable housing project investments rather than a decision to be applied to individual investments. A reporting entity must disclose information that enables users of its financial statements to understand the nature of such investments and the effect of the measurement, and the related tax credits, on its financial position and results of operations. The amendments in this Update are to be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption by the Company of this ASU is not expected to have a material impact on the Company's financial statements, or results of operations. | |||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2013-02, Comprehensive Income (Topic 220): Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income. The new amendments require an organization to present the effects on the income statement of significant amounts reclassified out of accumulated other comprehensive income or cross-reference to other disclosures currently required under U.S. GAAP for certain items. The new amended standard is effective for annual periods beginning after December 15, 2012, and interim periods within those annual periods. As this ASU addresses only disclosure requirements, this adoption in the first quarter of 2013 did not have a material impact on the Company's financial statements. See subsection (r) "Reporting Comprehensive Income" contained within this Note 1, for the disclosure of the effects of amounts reclassified out of accumulated other comprehensive income. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||
The amortized cost and fair values of investments at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||||||
cost | gains | losses | |||||||||||||||||||||||||||
Federal agency obligations(1) | $ | 55,440 | $ | 146 | $ | 43 | $ | 55,543 | |||||||||||||||||||||
Federal agency mortgage backed securities (MBS)(1) | 80,997 | 367 | 1,714 | 79,650 | |||||||||||||||||||||||||
Municipal securities | 60,675 | 1,604 | 325 | 61,954 | |||||||||||||||||||||||||
Corporate bonds | 5,080 | 29 | 55 | 5,054 | |||||||||||||||||||||||||
Total fixed income securities | 202,192 | 2,146 | 2,137 | 202,201 | |||||||||||||||||||||||||
Equity investments | 9,960 | 3,228 | 20 | 13,168 | |||||||||||||||||||||||||
Total available for sale investments, at fair value | $ | 212,152 | $ | 5,374 | $ | 2,157 | $ | 215,369 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||||||
cost | gains | losses | |||||||||||||||||||||||||||
Federal Agency Obligations(1) | $ | 65,247 | $ | 438 | $ | — | $ | 65,685 | |||||||||||||||||||||
Federal Agency mortgage backed securities (MBS)(1) | 48,429 | 1,287 | 42 | 49,674 | |||||||||||||||||||||||||
Municipal securities | 53,437 | 3,103 | 17 | 56,523 | |||||||||||||||||||||||||
Corporate bonds | 1,905 | 15 | 6 | 1,914 | |||||||||||||||||||||||||
Total fixed income securities | 169,018 | 4,843 | 65 | 173,796 | |||||||||||||||||||||||||
Equity investments | 9,080 | 1,622 | 34 | 10,668 | |||||||||||||||||||||||||
Total available for sales investments, at fair value | $ | 178,098 | $ | 6,465 | $ | 99 | $ | 184,464 | |||||||||||||||||||||
-1 | These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae (FNMA), Freddie Mac (FHLMC), Ginnie Mae (GNMA), Federal Farm Credit Bank (FFCB), or one of several Federal Home Loan Banks (FHLBs). All agency MBS/CMO investments owned by the Company are backed by residential mortgages. | ||||||||||||||||||||||||||||
Included in federal agency MBS were Collateralized Mortgage Obligations (“CMO’s”) with fair values totaling $17.4 million and $23.6 million at December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
At December 31, 2013, the equity portfolio consisted primarily of investments in a diversified group of mutual funds, with a small portion of the portfolio (approximately 14%) invested in exchange traded funds and individual common stock of entities in the financial services industry. | |||||||||||||||||||||||||||||
The following tables summarize investments having temporary impairment, due to the fair market values having declined below the amortized costs of the individual investments, and the period that the investments have been impaired at December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
Value | Losses | value | Losses | Value | Losses | ||||||||||||||||||||||||
Federal Agency Obligations | $ | 14,026 | $ | 43 | $ | — | $ | — | $ | 14,026 | $ | 43 | |||||||||||||||||
Federal agency MBS | $ | 56,554 | $ | 1,176 | $ | 8,457 | $ | 538 | $ | 65,011 | $ | 1,714 | |||||||||||||||||
Municipal securities | 12,791 | 292 | 609 | 33 | 13,400 | 325 | |||||||||||||||||||||||
Corporate bonds | 2,100 | 39 | 433 | 16 | 2,533 | 55 | |||||||||||||||||||||||
Equity investments | 749 | 16 | 21 | 4 | 770 | 20 | |||||||||||||||||||||||
Total temporarily impaired investments | $ | 86,220 | $ | 1,566 | $ | 9,520 | $ | 591 | $ | 95,740 | $ | 2,157 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
Value | Losses | value | Losses | Value | Losses | ||||||||||||||||||||||||
Federal agency MBS | $ | 9,954 | $ | 42 | $ | — | $ | — | $ | 9,954 | $ | 42 | |||||||||||||||||
Municipal securities | 1,996 | 17 | — | — | 1,996 | 17 | |||||||||||||||||||||||
Corporate bonds | 1,063 | 6 | — | — | 1,063 | 6 | |||||||||||||||||||||||
Equity investments | 172 | 2 | 453 | 32 | 625 | 34 | |||||||||||||||||||||||
Total temporarily impaired investments | $ | 13,185 | $ | 67 | $ | 453 | $ | 32 | $ | 13,638 | $ | 99 | |||||||||||||||||
The net unrealized gain or loss in the Company's fixed income portfolio fluctuates as market interest rates rise and fall. Due to the fixed rate nature of this portfolio, as market rates fall the value of the portfolio rises, and as market rates rise, the value of the portfolio declines. The unrealized gains or losses on fixed income investments will also decline as the securities approach maturity or if the issuer is credit impaired. Unrealized gains or losses will be recognized in the statements of income if the securities are sold. However, if an unrealized loss on the fixed income portfolio is deemed to be other than temporary, the credit loss portion is charged to earnings and the noncredit portion is recognized in accumulated other comprehensive income. Net unrealized appreciation and depreciation on investments available for sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income. | |||||||||||||||||||||||||||||
The net unrealized gain or loss on equity securities will fluctuate based on changes in the market value of the mutual funds and individual securities held in the portfolio. Unrealized gains or losses will be recognized in the statements of income if the securities are sold. However, if an unrealized loss on an equity security is deemed to be other than temporary prior to a sale, the loss is charged to earnings. | |||||||||||||||||||||||||||||
Management regularly reviews the portfolio for securities with unrealized losses that are other-than-temporarily impaired. During the years ended December 31, 2013 and 2012, the Company did not record any fair value impairment charges on its investments. As of December 31, 2013, there were 73 securities in an unrealized loss position in the Company's portfolio (fixed income and equity), with a fair value of $95.7 million, in an unrealized loss position totaling $2.2 million. Management attributes these unrealized losses to increases in current market yields compared to the yields at the time the investments were purchased by the Company. Management does not consider these investments to be other-than-temporarily impaired at December 31, 2013 because the decline in market value is attributable to changes in interest rates and not credit quality for fixed income securities, or a fundamental deterioration in the equity funds or issuers, and because the Company does not intend to, and it is more likely than not that it will not be required to, sell those investments prior to a market price recovery or maturity. | |||||||||||||||||||||||||||||
In assessing MBS investments, the contractual cash flows of these investments are guaranteed by an agency of the U.S. Government, and the agency that issued these securities is sponsored by the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. Management's assessment of other fixed income investments within the portfolio includes reviews of market pricing, ongoing credit evaluations, assessment of the investment's materiality, and duration of the unrealized loss position. In addition, the Company utilizes an outside registered investment adviser to manage the corporate and municipal bond portfolios, within prescribed guidelines set by management. For equities and funds, management's assessment includes the severity of the declines, whether it is unlikely that the security or fund will completely recover its unrealized loss within a reasonable time period and if the equity security or fund exhibits fundamental deterioration. | |||||||||||||||||||||||||||||
The contractual maturity distribution of total fixed income investments at December 31, 2013 is as follows: | |||||||||||||||||||||||||||||
Within One Year | After One, but within | After Five, but within | After Ten Years | ||||||||||||||||||||||||||
Five Years | Ten Years | ||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||
At amortized cost: | |||||||||||||||||||||||||||||
Federal agency obligations | $ | 10,030 | 0.82 | % | $ | 42,443 | 0.78 | % | $ | 2,967 | 1.97 | % | $ | — | — | % | |||||||||||||
MBS | — | — | % | 3,341 | 2.45 | % | 7,562 | 3.02 | % | 70,094 | 2.14 | % | |||||||||||||||||
Municipal securities | 3,349 | 2.04 | % | 20,023 | 2.83 | % | 31,135 | 4.4 | % | 6,168 | 6.42 | % | |||||||||||||||||
Corporate bonds | — | — | % | 3,387 | 1.54 | % | 1,693 | 2.68 | % | — | — | % | |||||||||||||||||
Total fixed income securities | $ | 13,379 | 1.12 | % | $ | 69,194 | 1.49 | % | $ | 43,357 | 3.93 | % | $ | 76,262 | 2.49 | % | |||||||||||||
At fair value: | |||||||||||||||||||||||||||||
Total fixed income securities | $ | 13,439 | $ | 69,864 | $ | 43,996 | $ | 74,902 | |||||||||||||||||||||
Scheduled contractual maturities may not reflect the actual maturities of the investments. MBS/CMO securities are shown at their final maturity, however due to prepayments and amortization the actual MBS/CMO cash flows likely will be faster than presented above. Similarly, included in the carrying value of fixed income investments above are callable securities, comprised of municipal securities, federal agency obligations and corporate bonds with amortized cost and fair values of $46.7 million and $47.7 million, respectively, at December 31, 2013. Management considers these factors when evaluating the net interest margin in the Company's asset-liability management program. | |||||||||||||||||||||||||||||
From time to time the Company may pledge securities as collateral against deposit account balances of municipal deposit customers, for FHLB borrowing capacity and collateral for borrowing from the Federal Reserve Bank of Boston ("FRB"). The fair value of securities pledged as collateral for these purposes was $202.2 million at December 31, 2013 and $173.6 million at December 31, 2012. | |||||||||||||||||||||||||||||
Sales of investments for the years ended December 31, 2013, 2012, and 2011 are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Amortized cost of investments sold | $ | 8,325 | $ | 3,309 | $ | 10,553 | |||||||||||||||||||||||
Gross realized gains on sales | 1,243 | 241 | 791 | ||||||||||||||||||||||||||
Gross realized losses on sales | (4 | ) | (5 | ) | — | ||||||||||||||||||||||||
Total proceeds from sales of investments | $ | 9,564 | $ | 3,545 | $ | 11,344 | |||||||||||||||||||||||
Tax exempt interest earned on the municipal securities portfolio was $2.1 million for the year ended December 31, 2013, $1.9 million for the year ended December 31, 2012 and $1.7 million for the year ended December 31, 2011. | |||||||||||||||||||||||||||||
See Item (c) “Investments,” contained in Note 1, “Summary of Significant Accounting Policies,” for additional information regarding the accounting for the Company’s investments portfolio. See also Note 14, “Fair Value Measurements,” for additional information regarding the Company’s fair value measurement of investments. |
Loans
Loans | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Loans | ' | ||||||||
Loans | |||||||||
The Company specializes in lending to business entities, non-profit organizations, professionals and individuals. The Company’s primary lending focus is on the development of high quality commercial relationships achieved through active business development efforts, long-term relationships with established commercial developers, strong community involvement and focused marketing strategies. Loans made to businesses include commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and standby letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on primary and secondary residences, and secured and unsecured personal loans and lines of credit. The Company manages its loan portfolio to avoid concentration by industry and loan size to lessen its credit risk exposure. | |||||||||
See Note 4, "Allowance for Loan Losses," for Information on the Company's credit risk management, non-accrual, impaired and troubled debt restructured loans and the allowance for loan losses. | |||||||||
Major classifications of loans at the periods indicated, are as follows: | |||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | |||||||
Real estate: | |||||||||
Commercial real estate | $ | 820,299 | $ | 710,265 | |||||
Commercial construction | 132,507 | 121,367 | |||||||
Residential mortgages | 132,721 | 120,278 | |||||||
Total real estate | 1,085,527 | 951,910 | |||||||
Commercial and industrial | 357,056 | 328,579 | |||||||
Home equity | 74,354 | 75,648 | |||||||
Consumer | 8,643 | 4,911 | |||||||
Gross loans | 1,525,580 | 1,361,048 | |||||||
Deferred loan origination fees, net | (1,524 | ) | (1,393 | ) | |||||
Total loans | 1,524,056 | 1,359,655 | |||||||
Allowance for loan losses | (26,967 | ) | (24,254 | ) | |||||
Net loans | $ | 1,497,089 | $ | 1,335,401 | |||||
Loan Categories | |||||||||
Commercial loans: | |||||||||
Commercial real estate loans include loans secured by both owner-use and non-owner occupied real estate. These loans are typically secured by a variety of commercial and industrial property types including one-to-four family and multi-family apartment buildings, office or mixed-use facilities, strip shopping centers, or other commercial properties and are generally guaranteed by the principals of the borrower. Commercial real estate loans generally have repayment periods of approximately fifteen to twenty-five years. Variable interest rate loans have a variety of adjustment terms and indices, and are generally fixed for an initial period before periodic rate adjustments begin. | |||||||||
Commercial and industrial loans include seasonal revolving lines of credit, working capital loans, equipment financing (including equipment leases), and term loans. Also included in commercial and industrial loans are loans partially guaranteed by the U. S. Small Business Administration (SBA), and loans under various programs issued in conjunction with the Massachusetts Development Finance Agency and other agencies. Commercial and industrial credits may be unsecured loans and lines to financially strong borrowers, secured in whole or in part by real estate unrelated to the principal purpose of the loan or secured by inventories, equipment, or receivables, and are generally guaranteed by the principals of the borrower. Variable rate loans and lines in this portfolio have interest rates that are periodically adjusted, with loans generally having fixed initial periods. Commercial and industrial loans have average repayment periods of one to seven years. | |||||||||
Commercial construction loans include the development of residential housing and condominium projects, the development of commercial and industrial use property, and loans for the purchase and improvement of raw land. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrowers. Construction lenders work to cultivate long-term relationships with established developers. The Company limits the amount of financing provided to any single developer for the construction of properties built on a speculative basis. Funds for construction projects are disbursed as pre-specified stages of construction are completed. Regular site inspections are performed, either by experienced construction lenders on staff or by independent outside inspection companies, at each construction phase, prior to advancing additional funds. Commercial construction loans generally are periodically adjusted variable rate loans and lines and generally have terms of one to three years. | |||||||||
From time to time, the Company participates with other banks in the financing of certain commercial projects. In some cases, the Company may act as the lead lender, originating and servicing the loans, but participating out a portion of the funding to other banks. In other cases, the Company may participate in loans originated by other institutions. In each case, the participating bank funds a percentage of the loan commitment and takes on the related risk. In each case in which the Company participates in a loan, the rights and obligations of each participating bank are divided proportionately among the participating banks in an amount equal to their share of ownership and with equal priority among all banks. The balances participated out to other institutions are not carried as assets on the Company's financial statements. Loans originated by other banks in which the Company is the participating institution are carried in the loan portfolio at the Company's pro rata share of ownership. The Company performs an independent credit analysis of each commitment and a review of the participating institution prior to participation in the loan. Loans originated by other banks in which the Company is the participating institution amounted to $34.5 million at December 31, 2013 and $28.6 million at December 31, 2012. | |||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. If the letter of credit is drawn upon, a loan is created for the customer, generally a commercial loan, with the same criteria associated with similar commercial loans. | |||||||||
Residential loans: | |||||||||
Enterprise originates conventional mortgage loans on one-to-four family residential properties. These properties may serve as the borrower's primary residence, or be vacation homes or investment properties. Loan to value limits vary, generally from 80% for adjustable rate and multi-family, owner occupied properties, up to 97% for fixed rate loans on single family, owner occupied properties, with mortgage insurance coverage required for loan-to-value ratios greater than 80% based on program parameters. In addition, financing is provided for the construction of owner occupied primary and secondary residences. Residential mortgage loans may have terms of up to 30 years at either fixed or adjustable rates of interest. Fixed and adjustable rate residential mortgage loans are generally originated using secondary market underwriting and documentation standards. | |||||||||
Depending on the current interest rate environment, management projections of future interest rates and the overall asset-liability management program of the Company, management may elect to sell those fixed and adjustable rate residential mortgage loans which are eligible for sale in the secondary market, or hold some or all of this residential loan production for the Company's portfolio. Mortgage loans are generally not pooled for sale, but instead sold on an individual basis. The Company may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan and are subject to an early payment default period covering the first four payments for certain loan sales. Loans classified as held for sale are carried as a separate line item on the balance sheet. | |||||||||
Home equity loans and lines of credit: | |||||||||
Home equity term loans are originated for one-to-four family residential properties with maximum original loan to value ratios generally up to 80% of the assessed or appraised value of the property securing the loan. Home equity loan payments consist of monthly principal and interest based on amortization ranging from three to fifteen years. The rates may also be fixed for three to fifteen years. | |||||||||
The Company originates home equity revolving lines of credit for one-to-four family residential properties with maximum original loan to value ratios generally up to 80% of the appraised value of the property securing the loan. Home equity lines generally have interest rates that adjust monthly based on changes in the Prime Rate, although minimum rates may be applicable. Some home equity line rates may be fixed for a period of time and then adjusted monthly thereafter. The payment schedule for home equity lines requires interest only payments for the first ten years of the lines. Generally at the end of ten years, the line may be frozen to future advances, and principal plus interest payments are collected over a fifteen-year amortization schedule or, for eligible borrowers meeting certain requirements, the line availability may be extended for an additional interest only period. | |||||||||
Consumer loans: | |||||||||
Consumer loans primarily consist of secured or unsecured personal loans, loans under energy efficiency financing programs in conjunction with Massachusetts public utilities, and overdraft protection lines on checking accounts extended to individual customers. The aggregate amounts of overdrawn deposit accounts are reclassified as loan balances. | |||||||||
Related Party Loans | |||||||||
Certain of the Company's directors, officers, principal stockholders and their associates are credit customers of the Company in the ordinary course of business. In addition, certain directors are also directors, trustees, officers or stockholders of corporations and non-profit entities or members of partnerships that are customers of the Bank and that enter into loan and other transactions with the Bank in the ordinary course of business. All loans and commitments included in such transactions are on such terms, including interest rates, repayment terms and collateral, as those prevailing at the time for comparable transactions with persons who are not affiliated with the Bank and do not involve more than a normal risk of collectability or present other features unfavorable to the Bank. | |||||||||
As of December 31, 2013 and 2012, the outstanding loan balances to directors, officers, principal stockholders and their associates were $12.1 million and $12.4 million, respectively. All loans to these related parties were current and accruing at those dates. Unadvanced portions of lines of credit available to these individuals were $4.1 million and $2.7 million, as of December 31, 2013 and 2012, respectively. During 2013, new loans and net increases in loan balances or lines of credit under existing commitments of $654 thousand were made and principal paydowns of $988 thousand were received. | |||||||||
Loans Serviced for Others | |||||||||
At December 31, 2013 and 2012, the Company was servicing residential mortgage loans owned by investors amounting to $20.6 million and $22.2 million, respectively. Additionally, the Company was servicing commercial loans participated out to various other institutions amounting to $52.1 million and $53.6 million at December 31, 2013 and 2012, respectively. See the discussion above for further information regarding commercial participations. | |||||||||
Loans Serving as Collateral | |||||||||
Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity for the periods indicated are summarized below: | |||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | |||||||
Commercial real estate | $ | 320,908 | $ | 216,080 | |||||
Residential mortgages | 97,626 | 94,552 | |||||||
Home equity | 17,548 | 18,907 | |||||||
Total loans pledged to FHLB | $ | 436,082 | $ | 329,539 | |||||
During the third quarter of 2013, as part of its regular liquidity management review, the Company pledged additional commercial real estate loans to the FHLB to provide additional borrowing capacity. | |||||||||
Tax Exempt Interest | |||||||||
Tax exempt interest earned on qualified commercial loans was $1.3 million for the year ended December 31, 2013 and $1.4 million and $1.2 million for the years ended December 31, 2012 and 2011, respectively. Average tax exempt loan balances were $31.1 million and $31.6 million for the years ended December 31, 2013 and 2012, respectively. |
Allowance_For_Loan_Losses
Allowance For Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Allowance for Loan Loss | ' | ||||||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||||||
While Company manages its loan portfolio to avoid concentration by industry and loan size to lessen its credit risk exposure, inherent in the lending process is the risk of loss due to customer non-payment, or “credit risk.” The Company endeavors to minimize this risk through sound underwriting practices and the risk management function, however, management recognizes that loan losses will occur and that the amount of these losses will fluctuate depending on the risk characteristics of the loan portfolio and economic conditions. | |||||||||||||||||||||||||||||
The allowance for loan losses is an estimate of probable credit risk inherent in the loan portfolio as of the specified balance sheet dates. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated losses from specifically known and other credit risks associated with the portfolio. In making its assessment on the adequacy of the allowance, management considers several quantitative and qualitative factors that could have an effect on the credit quality of the portfolio including, individual assessment of larger and high risk credits, delinquency trends and the level of non-performing loans, impaired and restructured loans, net charge-offs, the growth and composition of the loan portfolio, expansion in geographic market area and the strength of the local and national economy, among other factors. | |||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||
The level of adversely classified loans, delinquent and non-performing assets is largely a function of economic conditions, the overall banking environment, the Company's underwriting and credit risk management standards. The Company’s commercial lending focus may entail significant additional risks compared to long term financing on existing, owner-occupied residential real estate. The Company endeavors to minimize this risk through sound underwriting practices and the risk management function. The credit risk management function focuses on a wide variety of factors, including, among others, current and expected economic conditions, the real estate market, the financial condition of borrowers, the ability of borrowers to adapt to changing conditions or circumstances affecting their business and the continuity of borrowers’ management teams. Early detection of credit issues is critical to minimize credit losses. Accordingly, management regularly monitors these factors, among others, through ongoing credit reviews by the Credit Department, an external loan review service, reviews by members of senior management and the Loan Committee of the Board of Directors. This review includes the assessment of internal credit quality indicators such as the risk classification of individual loans, individual review of adversely classified loans, past due and non-accrual loans, impaired and restructured loans, and the level of foreclosure activity, as well as trends in the general levels of these indicators. | |||||||||||||||||||||||||||||
However, despite prudent loan underwriting and ongoing credit risk management, adverse changes within the Company's market area or deterioration in the local, regional or national economic conditions could negatively impact the portfolio's credit risk profile and the Company's asset quality in the future. | |||||||||||||||||||||||||||||
The loan portfolio continued to show improving statistics related to migration of adversely classified, non-accrual, impaired loans and the level of Other Real Estate Owned ("OREO") properties held during the year ended December 31, 2013. However, management believes that the general credit profile of the portfolio and individual commercial relationships will continue to be affected by lagging effects that the economic environment has had on the regional and local commercial markets. | |||||||||||||||||||||||||||||
Adversely Classified Loans | |||||||||||||||||||||||||||||
The Company's loan risk rating system classifies loans depending on risk of loss characteristics. The classifications range from “substantially risk free” for the highest quality loans and loans that are secured by cash collateral, to the more severe adverse classifications of "substandard," "doubtful" and “loss” based on criteria established under banking regulations. | |||||||||||||||||||||||||||||
Loans classified as substandard include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. These loans are inadequately protected by the sound net worth and paying capacity of the borrower; repayment has become increasingly reliant on collateral liquidation or reliance on guaranties; credit weaknesses are well-defined; borrower cash flow is insufficient to meet the required debt service specified in the loan terms and to meet other obligations, such as trade debt and tax payments. | |||||||||||||||||||||||||||||
Loans classified as doubtful have all the weaknesses inherent in a substandard rated loan with the added characteristic that the weaknesses make collection or full payment from liquidation, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until more exact status may be determined. | |||||||||||||||||||||||||||||
Loans classified as loss are generally considered uncollectible at present, although long term recovery of part or all of loan proceeds may be possible. These “loss” loans would require a specific loss reserve or charge-off. | |||||||||||||||||||||||||||||
Adversely classified loans may be accruing or in non-accrual status and may be additionally designated as impaired or restructured, or some combination thereof. Loans which are evaluated to be of weaker credit quality are reviewed on a more frequent basis by management. | |||||||||||||||||||||||||||||
The following tables present the credit risk profile by internally assigned risk rating category at the periods indicated. | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Adversely Classified | Not Adversely Classified | Gross Loans | ||||||||||||||||||||||||||
Substandard | Doubtful | Loss | |||||||||||||||||||||||||||
Commercial real estate | $ | 13,545 | $ | 1,266 | $ | — | $ | 805,488 | $ | 820,299 | |||||||||||||||||||
Commercial and industrial | 7,908 | 51 | 236 | 348,861 | 357,056 | ||||||||||||||||||||||||
Commercial construction | 3,358 | — | — | 129,149 | 132,507 | ||||||||||||||||||||||||
Residential | 1,012 | — | — | 131,709 | 132,721 | ||||||||||||||||||||||||
Home Equity | 500 | — | — | 73,854 | 74,354 | ||||||||||||||||||||||||
Consumer | 40 | — | — | 8,603 | 8,643 | ||||||||||||||||||||||||
Total gross loans | $ | 26,363 | $ | 1,317 | $ | 236 | $ | 1,497,664 | $ | 1,525,580 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Adversely Classified | Not Adversely Classified | Gross Loans | ||||||||||||||||||||||||||
Substandard | Doubtful | Loss | |||||||||||||||||||||||||||
Commercial real estate | $ | 21,999 | $ | — | $ | — | $ | 688,266 | $ | 710,265 | |||||||||||||||||||
Commercial and industrial | 5,993 | 1,460 | 48 | 321,078 | 328,579 | ||||||||||||||||||||||||
Commercial construction | 2,986 | — | — | 118,381 | 121,367 | ||||||||||||||||||||||||
Residential | 1,254 | — | — | 119,024 | 120,278 | ||||||||||||||||||||||||
Home Equity | 661 | — | — | 74,987 | 75,648 | ||||||||||||||||||||||||
Consumer | 34 | — | — | 4,877 | 4,911 | ||||||||||||||||||||||||
Total gross loans | $ | 32,927 | $ | 1,460 | $ | 48 | $ | 1,326,613 | $ | 1,361,048 | |||||||||||||||||||
The decrease in adversely classified loans as of December 31, 2013, as compared to December 2012, was primarily due to paydowns on several commercial relationships, upgraded commercial loans and charge-offs, partially offset by additional credit downgrades during the period. | |||||||||||||||||||||||||||||
Past Due and Non-Accrual Loans | |||||||||||||||||||||||||||||
Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest on loans is generally discontinued when a loan becomes contractually past due, with respect to interest or principal, by 90 days, or when reasonable doubt exists as to the full and timely collection of interest or principal. When a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest accruals are resumed on such loans only when payments are brought current and have remained current for a period of 180 days and when, in the judgment of management, the collectability of both principal and interest is reasonably assured. Interest payments received on loans in a non-accrual status are generally applied to principal on the books of the Company. Additionally, deposit accounts overdrawn for 90 or more days are included in the consumer non-accrual numbers below. | |||||||||||||||||||||||||||||
The following table presents an age analysis of past due loans as of December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Non-accrual Loans | Total Past Due Loans | Current Loans | Gross Loans | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | ||||||||||||||||||||||||||||
Commercial real estate | $ | 1,142 | $ | 1,575 | $ | 10,561 | $ | 13,278 | $ | 807,021 | $ | 820,299 | |||||||||||||||||
Commercial and industrial | 680 | 908 | 5,743 | 7,331 | 349,725 | 357,056 | |||||||||||||||||||||||
Commercial construction | 196 | — | 1,118 | 1,314 | 131,193 | 132,507 | |||||||||||||||||||||||
Residential | 1,110 | 127 | 633 | 1,870 | 130,851 | 132,721 | |||||||||||||||||||||||
Home Equity | 211 | 10 | 281 | 502 | 73,852 | 74,354 | |||||||||||||||||||||||
Consumer | 106 | 18 | 10 | 134 | 8,509 | 8,643 | |||||||||||||||||||||||
Total gross loans | $ | 3,445 | $ | 2,638 | $ | 18,346 | $ | 24,429 | $ | 1,501,151 | $ | 1,525,580 | |||||||||||||||||
The following table presents an age analysis of past due loans as of December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Non-accrual Loans | Total Past Due Loans | Current Loans | Gross Loans | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | ||||||||||||||||||||||||||||
Commercial real estate | $ | 1,560 | $ | 551 | $ | 12,608 | $ | 14,719 | $ | 695,546 | $ | 710,265 | |||||||||||||||||
Commercial and industrial | 472 | 55 | 6,993 | 7,520 | 321,059 | 328,579 | |||||||||||||||||||||||
Commercial construction | — | — | 743 | 743 | 120,624 | 121,367 | |||||||||||||||||||||||
Residential | 42 | 558 | 862 | 1,462 | 118,816 | 120,278 | |||||||||||||||||||||||
Home Equity | 73 | 9 | 390 | 472 | 75,176 | 75,648 | |||||||||||||||||||||||
Consumer | 42 | 11 | 5 | 58 | 4,853 | 4,911 | |||||||||||||||||||||||
Total gross loans | $ | 2,189 | $ | 1,184 | $ | 21,601 | $ | 24,974 | $ | 1,336,074 | $ | 1,361,048 | |||||||||||||||||
At December 31, 2013 and December 31, 2012, all loans 90 or more days past due were carried as non-accruing. Included in the consumer non-accrual numbers in the table above were $3 thousand and $5 thousand of overdraft deposit account balances 90 days or more past due at December 31, 2013 and December 31, 2012, respectively. Non-accrual loans which were not adversely classified amounted to $577 thousand at December 31, 2013 and $1.2 million at December 31, 2012. These balances primarily represented the guaranteed portions of non-performing U.S. Small Business Administration loans. The majority of the non-accrual loan balances were also carried as impaired loans during the periods and are discussed further below. | |||||||||||||||||||||||||||||
The ratio of non-accrual loans to total loans amounted to 1.20% and 1.59% at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||||
At December 31, 2013, additional funding commitments for loans on non-accrual status totaled $313 thousand. The Company's obligation to fulfill the additional funding commitments on non-accrual loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. | |||||||||||||||||||||||||||||
The reduction in interest income for the years ended December 31, associated with non-accruing loans is summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Income in accordance with original loan terms | $ | 1,171 | $ | 1,490 | $ | 1,545 | |||||||||||||||||||||||
Less income recognized | 680 | 380 | 140 | ||||||||||||||||||||||||||
Reduction in interest income | $ | 491 | $ | 1,110 | $ | 1,405 | |||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Impaired loans are individually significant loans for which management considers it probable that not all amounts due (principal and interest) in accordance with original contractual terms will be collected. The majority of impaired loans are included within the non-accrual balances; however, not every loan in non-accrual status has been designated as impaired. Impaired loans include loans that have been modified in a troubled debt restructuring (or "TDR", see below). Impaired loans exclude large groups of smaller-balance homogeneous loans, such as residential mortgage loans and consumer loans, which are collectively evaluated for impairment, and loans that are measured at fair value, unless the loan is amended in a TDR. | |||||||||||||||||||||||||||||
Management does not set any minimum delay of payments as a factor in reviewing for impaired classification. Management considers the individual payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. An impaired or TDR loan classification will be considered for upgrade based on the borrower's sustained performance over time and their improving financial condition, the expectation of the borrower's ability to continue to service the loan in accordance the original or modified terms and the collectability of the remaining balance, and in the case of TDR loans, an interest rate at or greater than a market rate for a similar credit at the time of modification. | |||||||||||||||||||||||||||||
Impaired loans are individually evaluated for credit loss and a specific reserve is assigned for the amount of the estimated credit loss. Refer to heading “Allowance for probable loan losses methodology” contained within this Note 4 for further discussion of management’s methodology used to estimate specific reserves for impaired loans. | |||||||||||||||||||||||||||||
Total impaired loans amounted to $29.8 million and $37.4 million at December 31, 2013 and December 31, 2012, respectively. Total accruing impaired loans amounted to $11.9 million and $16.6 million at December 31, 2013 and December 31, 2012, respectively, while non-accrual impaired loans amounted to $17.9 million and $20.8 million as of December 31, 2013 and December 31, 2012, respectively. The net decrease in the impaired loans since the prior year was primarily within the commercial real estate portfolio of $7.7 million. The decrease in impaired loans as of December 31, 2013, as compared to December 31, 2012, was primarily due to paydowns on several commercial relationships, upgraded commercial loans and charge-offs, partially offset by additional credit downgrades during the period. | |||||||||||||||||||||||||||||
The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated as of December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid contractual principal balance | Total recorded investment in impaired loans | Recorded investment with no allowance | Recorded investment with allowance | Related specific allowance | ||||||||||||||||||||||||
Commercial real estate | $ | 17,420 | $ | 15,139 | $ | 12,105 | $ | 3,034 | $ | 507 | |||||||||||||||||||
Commercial and industrial | 12,220 | 10,579 | 4,902 | 5,677 | 2,901 | ||||||||||||||||||||||||
Commercial construction | 3,464 | 3,358 | 1,426 | 1,932 | 830 | ||||||||||||||||||||||||
Residential | 673 | 619 | 365 | 254 | 107 | ||||||||||||||||||||||||
Home Equity | 110 | 108 | — | 108 | 31 | ||||||||||||||||||||||||
Consumer | 23 | 23 | — | 23 | 23 | ||||||||||||||||||||||||
Total | $ | 33,910 | $ | 29,826 | $ | 18,798 | $ | 11,028 | $ | 4,399 | |||||||||||||||||||
The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated as of December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid contractual principal balance | Total recorded investment in impaired loans | Recorded investment with no allowance | Recorded investment with allowance | Related specific allowance | ||||||||||||||||||||||||
Commercial real estate | $ | 24,760 | $ | 22,859 | $ | 18,735 | $ | 4,124 | $ | 1,041 | |||||||||||||||||||
Commercial and industrial | 12,184 | 10,831 | 6,016 | 4,815 | 2,186 | ||||||||||||||||||||||||
Commercial construction | 3,091 | 2,932 | 995 | 1,937 | 753 | ||||||||||||||||||||||||
Residential | 687 | 648 | 390 | 258 | 65 | ||||||||||||||||||||||||
Home Equity | 110 | 109 | — | 109 | 87 | ||||||||||||||||||||||||
Consumer | 14 | 14 | — | 14 | 14 | ||||||||||||||||||||||||
Total | $ | 40,846 | $ | 37,393 | $ | 26,136 | $ | 11,257 | $ | 4,146 | |||||||||||||||||||
The following table presents the average recorded investment in impaired loans and the related interest recognized during the year ends indicated. | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||
(Dollars in thousands) | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | |||||||||||||||||||||||
Commercial real estate | $ | 17,673 | $ | 237 | $ | 23,629 | $ | 560 | $ | 27,404 | $ | 698 | |||||||||||||||||
Commercial and industrial | 9,444 | 92 | 9,846 | 116 | 9,571 | 61 | |||||||||||||||||||||||
Commercial construction | 3,227 | 77 | 2,377 | 65 | 3,880 | 83 | |||||||||||||||||||||||
Residential | 745 | 9 | 753 | 11 | 621 | 2 | |||||||||||||||||||||||
Home Equity | 120 | — | 54 | — | — | 2 | |||||||||||||||||||||||
Consumer | 18 | 2 | 16 | 1 | 19 | 3 | |||||||||||||||||||||||
Total | $ | 31,227 | $ | 417 | $ | 36,675 | $ | 753 | $ | 41,495 | $ | 849 | |||||||||||||||||
Interest income that was not recognized on loans that were deemed impaired as of December 31, 2013, 2012 and 2011, amounted to $445 thousand, $1.1 million, and $847 thousand, respectively. All payments received on impaired loans in non-accrual status are applied to principal. At December 31, 2013, additional funding commitments for impaired loans totaled $457 thousand. The Company's obligation to fulfill the additional funding commitments on impaired loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. | |||||||||||||||||||||||||||||
Troubled Debt Restructures | |||||||||||||||||||||||||||||
Loans are designated as a TDR when, as part of an agreement to modify the original contractual terms of the loan, the Bank grants the borrower a concession on the terms, that would otherwise not be considered, as a result of financial difficulties of the borrower. Typically, such concessions consist of a reduction in interest rate to a below market rate, taking into account the credit quality of the note, or a deferment or reduction of payments (principal or interest), which materially alters the Bank’s position or significantly extends the note’s maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan’s origination. All loans that are modified are reviewed by the Company to identify if a TDR has occurred. Restructured loans are included in the impaired loan category and as such, these loans are individually reviewed and evaluated, and a specific reserve is assigned for the amount of the estimated credit loss. | |||||||||||||||||||||||||||||
Total TDR loans, included in the impaired loan figures above as of December 31, 2013 and December 31, 2012, were $20.9 million and $26.6 million, respectively. The change in balances since December 31, 2012 is discussed above. TDR loans on accrual status amounted to $11.4 million and $16.0 million at December 31, 2013 and December 31, 2012, respectively. TDR loans included in non-performing loans amounted to $9.5 million and $10.5 million at December 31, 2013 and December 31, 2012, respectively. The Company continues to work with commercial relationships and enters into loan modifications to the extent deemed to be necessary or appropriate to ensure the best mutual outcome given the current economic environment. | |||||||||||||||||||||||||||||
At December 31, 2013, additional funding commitments for TDR loans totaled $145 thousand. The Company's obligation to fulfill the additional funding commitments on non-accrual loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. | |||||||||||||||||||||||||||||
The following tables present certain information regarding loan modifications classified as troubled debt restructures. | |||||||||||||||||||||||||||||
Troubled debt restructure agreements entered into during the year ended December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of restructurings | Pre-modification outstanding recorded investment | Post-modification outstanding recorded investment | ||||||||||||||||||||||||||
Commercial real estate | 2 | $ | 724 | $ | 673 | ||||||||||||||||||||||||
Commercial and industrial | 5 | 1,903 | 1,818 | ||||||||||||||||||||||||||
Commercial construction | 1 | 769 | 769 | ||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||||||||||
Consumer | 1 | 4 | 4 | ||||||||||||||||||||||||||
Total | 9 | $ | 3,400 | $ | 3,264 | ||||||||||||||||||||||||
Loans modified as troubled debt restructuring within the previous twelve months for which there was a subsequent payment default during the year ended December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post-modification outstanding recorded investment | |||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 1 | 62 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 1 | $ | 62 | ||||||||||||||||||||||||||
There were $38 thousand in charge-offs associated with TDRs modified during 2013. At December 31, 2013, specific reserves allocated to the 2013 TDRs amounted to $142 thousand, as management considers it likely the principal will ultimately be collected. Interest payments received on non-accruing 2013 TDR loans which were applied to principal and not recognized as interest income amounted to $55 thousand. | |||||||||||||||||||||||||||||
Troubled debt restructure agreements entered into during the year ended December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of restructurings | Pre-modification outstanding recorded investment | Post-modification outstanding recorded investment | ||||||||||||||||||||||||||
Commercial real estate | 3 | $ | 423 | $ | 388 | ||||||||||||||||||||||||
Commercial and industrial | 7 | 2,980 | 2,975 | ||||||||||||||||||||||||||
Commercial construction | 3 | 802 | 746 | ||||||||||||||||||||||||||
Residential | 2 | 386 | 383 | ||||||||||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 15 | $ | 4,591 | $ | 4,492 | ||||||||||||||||||||||||
Loans modified as troubled debt restructuring within the previous twelve months for which there was a subsequent payment default during the year ended December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post-modification outstanding recorded investment | |||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 2 | 10 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | 1 | 125 | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 3 | $ | 135 | ||||||||||||||||||||||||||
There were $91 thousand in charge-offs associated with TDRs noted in the table above. At December 31, 2012, specific reserves allocated to the 2012 TDRs amounted to $802 thousand as management considered it likely the principal would ultimately be collected. Interest payments received on non-accruing 2012 TDR loans which were applied to principal and not recognized as interest income amounted to $6 thousand. | |||||||||||||||||||||||||||||
Other Real Estate Owned | |||||||||||||||||||||||||||||
Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as Other Real Estate Owned (“OREO”). When property is acquired, it is generally recorded at the lesser of the loan’s remaining principal balance, net of any unamortized deferred fees, or the estimated fair value of the property acquired, less estimated costs to sell. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value are charged to non-interest expense. | |||||||||||||||||||||||||||||
The carrying value of OREO at December 31, 2013 was $114 thousand and consisted of 1 property, compared to $500 thousand comprised of 1 property at December 31, 2012. During 2013, 2 properties were added to OREO and 2 properties were sold, 1 of which was held at December 31, 2012. There were $121 thousand of gains realized on the sale of OREO in 2013 and a write down of $23 thousand was recorded on the remaining property to reflect current expected realizable value. There were $87 thousand in gains on OREO sales in 2012. | |||||||||||||||||||||||||||||
Allowance for probable loan losses methodology | |||||||||||||||||||||||||||||
On a quarterly basis, management prepares an estimate of the allowance necessary to cover estimated credit losses. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated losses from specifically known and other credit risks associated with the portfolio. The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology makes use of specific reserves, for loans individually evaluated and deemed impaired, and general reserves, for larger groups of homogeneous loans, which rely on a combination of qualitative and quantitative factors that could have an impact on the credit quality of the portfolio. | |||||||||||||||||||||||||||||
Specific Reserves | |||||||||||||||||||||||||||||
When a loan is deemed to be impaired, management estimates the credit loss by comparing the loan's carrying value against either 1) the present value of the expected future cash flows discounted at the loan's effective interest rate; 2) the loan's observable market price; or 3) the expected realizable fair value of the collateral, in the case of collateral dependent loans. A specific allowance is assigned to the impaired loan for the amount of estimated credit loss. Impaired loans are charged off, in whole or in part, when management believes that the recorded investment in the loan is uncollectible. | |||||||||||||||||||||||||||||
General Reserves | |||||||||||||||||||||||||||||
In assessing the general reserves for groups of loans with similar risk characteristics, management has segmented the portfolio by I. Non-classified loans, and II. Adversely classified loans. These groups are further subdivided by loan category or risk rating. Allowance allocation factors for groups of loans with similar risk characteristics are based on each group's historical net charge off rate, which is then adjusted for current qualitative or environmental factors that are likely to cause estimated credit losses associated with the existing portfolio to differ from historical loss experience. Management considers the risk factors and assesses the impact of current issues and changes in those factors to the various portfolio categories on an ongoing basis. | |||||||||||||||||||||||||||||
I.Non-classified loans by credit type: | |||||||||||||||||||||||||||||
Management has established the historic loss factor for non-classified loans by first calculating average net charge-offs over a period of time, divided by the average loan balance over that same period. The time period utilized equates to the average estimated life for each loan category. This average period may be changed from time to time to be reflective of the most appropriate corresponding conditions (market, economic, etc.). | |||||||||||||||||||||||||||||
Key qualitative factors that are likely to cause estimated credit losses as of the evaluation date to differ from the group's historical charge-off rates include: | |||||||||||||||||||||||||||||
• | Several key areas of expansion and growth, including geographic market, changes in lending staff, new or expanded product lines, changes in and portfolio concentrations; | ||||||||||||||||||||||||||||
• | Changes in the trend and current volume and severity of past due loans, non-accrual loans and the severity of adversely classified and impaired loans compared to historical levels; and | ||||||||||||||||||||||||||||
• | The current economic environment and conditions (local, state and national) and their general implications to each loan category. | ||||||||||||||||||||||||||||
Management weighs the current effect of each of these areas on each particular loan category in determining the allowance allocation factors. | |||||||||||||||||||||||||||||
II.Adversely classified loans by credit rating: | |||||||||||||||||||||||||||||
Management has established the historic loss factor for classified loans by first calculating total annual net charge-offs divided by the average annual classified loans. An average of the charge-off ratio is then determined over a trailing period of time. The time period utilized equates to the estimated average period that loans might remain in a particular classified category. This average period may be changed from time to time to be reflective of the most appropriate corresponding conditions (market, economic, etc.). | |||||||||||||||||||||||||||||
As with the non-classified loans, management has identified several factors as likely to cause estimated credit losses associated with the adversely classified portfolio to differ from historical loss experience based on management's estimate as to the effect of the qualitative or environmental factors on the level of credit losses inherent in each specific classified category. These factors reflect the significant consideration of the risk inherent in these adversely classified categories already contained in the related historic loss factor, and the fact that individually significant loans with probable loss are excluded from the group and assessed separately. | |||||||||||||||||||||||||||||
Key qualitative factors that are likely to cause estimated credit losses as of the evaluation date to differ from the adversely classified group's historical charge-off rates include: | |||||||||||||||||||||||||||||
• | Key areas of expansion consistent with the non-classified loan expansion and growth noted above and the impact of this growth on adversely classified loans. | ||||||||||||||||||||||||||||
• | Changes in the current volume and severity of past due loans, the volume of non-accrual loans and the volume and severity of adversely classified loans compared to historical levels. | ||||||||||||||||||||||||||||
• | The current economic environment and conditions (local, state and national) and their general implications to adversely classified loans that are already experiencing difficulties. | ||||||||||||||||||||||||||||
Management weighs the current effect of each of these areas on each particular adversely classified category in determining the allowance allocation factors. | |||||||||||||||||||||||||||||
Management must exercise significant judgment when evaluating the effect of these factors on the amount of the allowance for loan losses because data may not be reasonably available or directly applicable to determine the precise impact of a factor on the collectability of the loan portfolio as of the evaluation date. | |||||||||||||||||||||||||||||
Management has identified above what it deems to be the most significant qualitative factors, however, management recognizes that additional issues may also impact the estimate of credit losses to some degree. From time to time management will re-evaluate the qualitative factors in use in order to consider the impact of other issues which, based on changing circumstances, may become more significant in the future. | |||||||||||||||||||||||||||||
Allowance for Loan Loss Activity | |||||||||||||||||||||||||||||
The allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. | |||||||||||||||||||||||||||||
During the fourth quarter of 2012, the Company purchased a group of residential mortgage loans with a December 31, 2013 carrying value of $14.1 million. These purchased loans were initially booked at fair market value and, in accordance with accounting guidance, do not carry an initial allowance for loan losses. Management will continue to closely monitor this portfolio of non-classified loans for estimated credit loss under general loss allocations taking into account the loss experience as well as the quantitative and qualitative factors identified above. | |||||||||||||||||||||||||||||
Changes in the allowance for loan losses for the years ended December 31, are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Balance at beginning of year | $ | 24,254 | $ | 23,160 | $ | 19,415 | |||||||||||||||||||||||
Provision charged to operations | 3,279 | 2,750 | 5,197 | ||||||||||||||||||||||||||
Loan recoveries | 415 | 519 | 294 | ||||||||||||||||||||||||||
Less: Loans charged-off | 981 | 2,175 | 1,746 | ||||||||||||||||||||||||||
Balance at end of year | $ | 26,967 | $ | 24,254 | $ | 23,160 | |||||||||||||||||||||||
The level of loan growth for the year ended December 31, 2013 was $164.4 million, compared to $87.8 million, excluding $26.4 million of purchased residential loans, during the same period in 2012. For the year ended December 31, 2013, the Company recorded net charge-offs of $566 thousand, the majority of which had reserves specifically allocated in prior periods. Management continues to closely monitor the non-performing assets, charge-offs and necessary allowance levels, including specific reserves. The allowance for loan losses to total loans ratio was 1.77% at December 31, 2013, compared to 1.78% at December 31, 2012. Contributing to the decline in this ratio was the improving credit quality statistics discussed above. Based on the foregoing, as well as management’s judgment as to the existing credit risks inherent in the loan portfolio, Management believes the Company’s allowance for loan losses is deemed adequate to absorb probable losses from specifically known and other credit risks associated with the portfolio as of December 31, 2013. | |||||||||||||||||||||||||||||
Changes in the allowance for loan losses by segment for the year ended December 31, 2013, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real Estate | Cmml and Industrial | Cmml Constr | Resid. Mortgage | Home Equity | Cnsmr | Total | ||||||||||||||||||||||
Beg. Balance, 12/31/12 | $ | 11,793 | $ | 7,297 | $ | 3,456 | $ | 854 | $ | 728 | $ | 126 | $ | 24,254 | |||||||||||||||
Provision | 1,491 | 1,658 | (41 | ) | 111 | (52 | ) | 112 | 3,279 | ||||||||||||||||||||
Recoveries | 96 | 80 | 78 | 128 | 21 | 12 | 415 | ||||||||||||||||||||||
Less: Charge offs | 206 | 670 | — | 36 | 44 | 25 | 981 | ||||||||||||||||||||||
Ending Balance, 12/31/13 | $ | 13,174 | $ | 8,365 | $ | 3,493 | $ | 1,057 | $ | 653 | $ | 225 | $ | 26,967 | |||||||||||||||
Ending allowance balance allotted to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 507 | $ | 2,901 | $ | 830 | $ | 107 | $ | 31 | $ | 23 | $ | 4,399 | |||||||||||||||
Loans collectively evaluated for impairment | $ | 12,667 | $ | 5,464 | $ | 2,663 | $ | 950 | $ | 622 | $ | 202 | $ | 22,568 | |||||||||||||||
Changes in the allowance for loan losses by segment for the year ended December 31, 2012, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real Estate | Cmml and Industrial | Cmml Constr | Resid. Mortgage | Home Equity | Cnsmr | Total | ||||||||||||||||||||||
Beg. Balance, 12/31/11 | $ | 10,855 | $ | 7,568 | $ | 3,013 | $ | 995 | $ | 615 | $ | 114 | $ | 23,160 | |||||||||||||||
Provision | 1,185 | 656 | 597 | 34 | 251 | 27 | 2,750 | ||||||||||||||||||||||
Recoveries | 29 | 461 | 2 | 10 | 2 | 15 | 519 | ||||||||||||||||||||||
Less: Charge offs | 276 | 1,388 | 156 | 185 | 140 | 30 | 2,175 | ||||||||||||||||||||||
Ending Balance, 12/31/12 | $ | 11,793 | $ | 7,297 | $ | 3,456 | $ | 854 | $ | 728 | $ | 126 | $ | 24,254 | |||||||||||||||
Ending allowance balance allotted to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,041 | $ | 2,186 | $ | 753 | $ | 65 | $ | 87 | $ | 14 | $ | 4,146 | |||||||||||||||
Loans collectively evaluated for impairment | $ | 10,752 | $ | 5,111 | $ | 2,703 | $ | 789 | $ | 641 | $ | 112 | $ | 20,108 | |||||||||||||||
The balances of loans as of December 31, 2013 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually evaluated for impairment | Loans collectively evaluated for impairment | Total Loans | ||||||||||||||||||||||||||
Commercial real estate | $ | 15,139 | $ | 805,160 | $ | 820,299 | |||||||||||||||||||||||
Commercial and industrial | 10,579 | 346,477 | 357,056 | ||||||||||||||||||||||||||
Commercial construction | 3,358 | 129,149 | 132,507 | ||||||||||||||||||||||||||
Residential | 619 | 132,102 | 132,721 | ||||||||||||||||||||||||||
Home Equity | 108 | 74,246 | 74,354 | ||||||||||||||||||||||||||
Consumer | 23 | 8,620 | 8,643 | ||||||||||||||||||||||||||
Deferred Fees | — | (1,524 | ) | (1,524 | ) | ||||||||||||||||||||||||
Total loans | $ | 29,826 | $ | 1,494,230 | $ | 1,524,056 | |||||||||||||||||||||||
See the section titled "Impaired Loans" above, for information regarding the changes in impaired loans balances at December 31, 2013 compared to the prior year. | |||||||||||||||||||||||||||||
The balances of loans as of December 31, 2012 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually evaluated for impairment | Loans collectively evaluated for impairment | Total Loans | ||||||||||||||||||||||||||
Commercial real estate | $ | 22,859 | $ | 687,406 | $ | 710,265 | |||||||||||||||||||||||
Commercial and industrial | 10,831 | 317,748 | 328,579 | ||||||||||||||||||||||||||
Commercial construction | 2,932 | 118,435 | 121,367 | ||||||||||||||||||||||||||
Residential | 648 | 119,630 | 120,278 | ||||||||||||||||||||||||||
Home Equity | 109 | 75,539 | 75,648 | ||||||||||||||||||||||||||
Consumer | 14 | 4,897 | 4,911 | ||||||||||||||||||||||||||
Deferred Fees | — | (1,393 | ) | (1,393 | ) | ||||||||||||||||||||||||
Total loans | $ | 37,393 | $ | 1,322,262 | $ | 1,359,655 | |||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Premises and Equipment | ' | ||||||||
Premises and Equipment | |||||||||
Premises and equipment at December 31 are summarized as follows: | |||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||
Land | $ | 4,594 | $ | 4,594 | |||||
Buildings, renovations and leasehold improvements | 30,516 | 28,283 | |||||||
Computer software and equipment | 8,088 | 7,560 | |||||||
Furniture, fixtures and equipment | 14,239 | 12,254 | |||||||
Total premises and equipment, before accumulated depreciation | 57,437 | 52,691 | |||||||
Less accumulated depreciation | (27,546 | ) | (25,485 | ) | |||||
Total premises and equipment, net of accumulated depreciation | $ | 29,891 | $ | 27,206 | |||||
Total depreciation expense related to premises and equipment amounted to $3.9 million, $3.7 million and $3.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Total rent expense for the years ended December 31, 2013, 2012 and 2011 amounted to $910 thousand, $858 thousand and $809 thousand, respectively. | |||||||||
The Company's leased facilities are contracted under various non-cancelable operating leases, most of which provide options to extend lease periods and periodic rent adjustments. Several leases provide the Company the right of first refusal should the property be offered for sale or purchase options at specified periods mutually agreeable to the parties. | |||||||||
At December 31, 2013, minimum lease payments for these operating leases were as follows: | |||||||||
(Dollars in thousands) | |||||||||
Payable in: | |||||||||
2014 | $ | 1,087 | |||||||
2015 | 882 | ||||||||
2016 | 911 | ||||||||
2017 | 908 | ||||||||
2018 | 747 | ||||||||
Thereafter | 3,842 | ||||||||
Total minimum lease payments | $ | 8,377 | |||||||
The Company currently collects rent through leases for a small portion of the overall square-footage within its campus headquarters. Rental income was $150 thousand, $198 thousand and $255 thousand for the years ended December 31, 2013, 2012 and 2011, respectively. |
Deposits
Deposits | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Deposits [Abstract] | ' | ||||||||||||
Deposits | ' | ||||||||||||
Deposits | |||||||||||||
Deposits at December 31 are summarized as follows: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||
Non-interest demand deposits | $ | 435,465 | $ | 386,643 | |||||||||
Interest bearing checking | 222,837 | 210,564 | |||||||||||
Savings | 150,215 | 154,680 | |||||||||||
Money market | 575,825 | 491,942 | |||||||||||
Certificates of deposit less than $100,000 | 95,530 | 106,904 | |||||||||||
Certificates of deposit of $100,000 or more | 104,553 | 121,262 | |||||||||||
Total non-brokered deposits (1) | 1,584,425 | 1,471,995 | |||||||||||
Brokered deposits (2) | 51,567 | 3,032 | |||||||||||
Total deposits | $ | 1,635,992 | $ | 1,475,027 | |||||||||
(1) Includes reciprocal money market deposits and CDs received from participating banks in nationwide networks as a result of our customers electing to participate in programs to obtain full FDIC insurance. Essentially, the equivalent of the original deposit comes back to the Company as non-brokered deposits within the appropriate category under total deposits on the balance sheet. | |||||||||||||
(2) Primarily brokered CDs under $100,000. | |||||||||||||
The aggregate amount of overdrawn deposits that have been reclassified as loan balances were $1.4 million and $700 thousand at December 31, 2013 and 2012, respectively. | |||||||||||||
The following table shows the scheduled maturities of certificates of deposit (including brokered deposits with average maturities of 5 years) with balances less than $100,000 and greater than $100,000 at December 31, 2013: | |||||||||||||
(Dollars in thousands) | Less | $100,000 | Total | ||||||||||
than | and | ||||||||||||
$100,000 | Greater | ||||||||||||
Due in less than twelve months | $ | 75,065 | $ | 83,296 | $ | 158,361 | |||||||
Due in over one year through two years | 14,137 | 12,806 | 26,943 | ||||||||||
Due in over two years through three years | 5,213 | 9,085 | 14,298 | ||||||||||
Due in over three years through four years | 17,954 | 1,399 | 19,353 | ||||||||||
Due in over four years through five years | 16,577 | — | 16,577 | ||||||||||
Due in over five years | 16,118 | — | 16,118 | ||||||||||
Total certificates of deposit | $ | 145,064 | $ | 106,586 | $ | 251,650 | |||||||
Interest expense on certificates of deposit with balances of $100,000 or more amounted to $872 thousand, $1.4 million and $1.9 million, in 2013, 2012 and 2011, respectively. |
Borrowed_Funds_and_Debentures
Borrowed Funds and Debentures | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Borrowed Funds and Debentures | ' | |||||||||||||||||||||
Borrowed Funds and Debentures | ||||||||||||||||||||||
Borrowed funds and debentures outstanding at December 31 are summarized as follows: | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | Amount | Average | Amount | Average | Amount | Average | ||||||||||||||||
Rate | Rate | Rate | ||||||||||||||||||||
Borrowed funds | 36,534 | 0.3 | % | 26,540 | 0.44 | % | 4,494 | 1.83 | % | |||||||||||||
Junior subordinated debentures | 10,825 | 10.88 | % | 10,825 | 10.88 | % | 10,825 | 10.88 | % | |||||||||||||
Total borrowed funds and debentures | $ | 47,359 | 2.72 | % | $ | 37,365 | 3.46 | % | $ | 15,319 | 8.22 | % | ||||||||||
At December 31, 2013, 2012, and 2011, borrowed funds were comprised of FHLB borrowings. | ||||||||||||||||||||||
FHLB borrowings at December 31, 2013 consisted of $34.8 million of overnight borrowings, with a weighted average rate of 0.28%, and term borrowings of $1.7 million, scheduled to mature within the next year, with a weighted average rate of 0.66%. These term borrowings, with original maturities of one to two years, are linked to certain outstanding commercial loans under various community investment programs of the FHLB. | ||||||||||||||||||||||
Maximum FHLB and other borrowings outstanding at any month end during 2013, 2012, and 2011 were $57.4 million, $26.5 million, and $4.8 million, respectively. | ||||||||||||||||||||||
The Company did not have any repurchase agreements for securities sold during the years ended December 31, 2013 or December 31, 2012. The maximum amount outstanding at any month end during 2011 was $763 thousand. | ||||||||||||||||||||||
The following table summarizes the average balance and average cost of borrowed funds for the years ended December 31, | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | Average | Average | Average | Average | Average | Average | ||||||||||||||||
Balance | Cost | Balance | Cost | Balance | Cost | |||||||||||||||||
FHLB advances | $ | 24,385 | 0.39 | % | $ | 3,552 | 1.5 | % | $ | 4,684 | 1.82 | % | ||||||||||
Other borrowings | 14 | 0.46 | % | 89 | 0.27 | % | 170 | 0.25 | % | |||||||||||||
Repurchase agreements | — | — | % | — | — | % | 373 | 0.31 | % | |||||||||||||
Total borrowed funds | $ | 24,399 | 0.39 | % | $ | 3,641 | 1.47 | % | $ | 5,227 | 1.66 | % | ||||||||||
The Company’s primary borrowing source is the FHLB, but the Company may choose to borrow from other established business partners. “Other borrowings” represents overnight advances from the FRB or federal funds purchased from correspondent banks. | ||||||||||||||||||||||
As a member of the FHLB, the Bank has the potential capacity to borrow an amount up to the value of its discounted qualified collateral. Borrowings from the FHLB are secured by certain securities from the Company’s investment portfolio not otherwise pledged and certain residential and commercial real estate loans. At December 31, 2013, based on qualifying collateral less outstanding advances, the Bank had the capacity to borrow additional funds from the FHLB of up to approximately $300.0 million. In addition, based on qualifying collateral, the Bank had the capacity to borrow funds from the FRB Discount Window of up to approximately $60.0 million. The Bank also has pre-approved borrowing arrangements with large correspondent banks in order to provide overnight and short-term borrowing capacity. | ||||||||||||||||||||||
See Note 2, "Investments," and Note 3, "Loans" above to these consolidated financial statements for further information regarding securities and loans pledged for borrowed funds. | ||||||||||||||||||||||
In March 2000, Enterprise (MA) Capital Trust I (the “Trust”), a subsidiary of Enterprise Bancorp, issued $10.5 million of 10.875% trust preferred securities that mature in 2030 and are callable, at a premium if called between 2010 and 2020. To date, the Company has not called any portion of these trust preferred securities. The proceeds from the sale of the trust preferred securities in March 2000 were used by the Trust, along with the Company’s $325 thousand capital contribution, to acquire $10.8 million in aggregate principal amount of the Company’s 10.875% Junior Subordinated Debt Securities that mature in 2030 and are callable. |
Commitments_Contingencies_and_
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | ' | ||||||||
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | |||||||||
The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, standby letters of credit and unadvanced portions of loans and lines of credit. | |||||||||
The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in the particular classes of financial instruments. | |||||||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||
Financial instruments with off-balance sheet credit risk at December 31, 2013 and 2012 are as follows: | |||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||
Commitments to originate loans | $ | 34,182 | $ | 46,408 | |||||
Commitments to originate residential mortgages loans for sale | 2,007 | 9,325 | |||||||
Commitments to sell residential mortgage loans | 3,262 | 17,882 | |||||||
Standby letters of credit | 17,116 | 13,547 | |||||||
Unadvanced portions of commercial real estate loans | 11,640 | 8,445 | |||||||
Unadvanced portions of commercial loans and lines | 261,356 | 233,274 | |||||||
Unadvanced portions of construction loans (commercial & residential) | 131,183 | 78,428 | |||||||
Unadvanced portions of home equity lines | 60,281 | 57,511 | |||||||
Unadvanced portions of consumer loans | 3,056 | 3,059 | |||||||
Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. Unadvanced portions of consumer loans include credit card loans and overdraft protection lines. | |||||||||
The Company originates residential mortgage loans under agreements to sell such loans, and may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan, and are subject to an early payment default period covering the first four payments for certain loan sales. | |||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. If the letter of credit is drawn upon, the Company creates a loan for the customer with the same criteria associated with similar loans. | |||||||||
Unadvanced portions of loans and lines of credit represent credit extended to customers but not yet drawn upon, and are secured or guaranteed under preexisting loan agreements. Commercial loans and lines may be collateralized by the assets underlying the borrower’s business such as accounts receivable, equipment, inventory and real property or may be unsecured loans and lines to financially strong borrowers and are generally guaranteed by the principals of the borrower. Commercial real estate loans are generally secured by the underlying real property and rental agreements. Residential mortgage and home equity loans are secured by the real property financed. Consumer loans such as installment loans are generally secured by the personal property financed, while credit card loans are generally unsecured. The Company manages its loan portfolio to avoid concentration by industry or loan size to minimize its credit risk exposure. | |||||||||
The Bank is required by the FRB to maintain in reserves certain amounts of vault cash and/or deposits with the FRB. The average daily reserve requirement included in “Cash and Due from Banks” was approximately $11.2 million and $7.8 million, based on the two week computation periods encompassing December 31, 2013, and 2012, respectively. | |||||||||
There are no material pending legal proceedings to which the Company or its subsidiaries are a party or to which any of its property is subject, other than ordinary routine litigation incidental to the business of the Company. Management does not believe resolution of any present litigation will have a material adverse effect on the financial condition or results of operations of the Company. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||||||
Stockholders’ Equity | ||||||||||||||||||||||
The Company’s authorized capital is divided into common stock and preferred stock. The Company is authorized to issue 20,000,000 shares of common stock and 1,000,000 shares of preferred stock. | ||||||||||||||||||||||
Holders of common stock are entitled to one vote per share, and are entitled to receive dividends if and when declared by the Board of Directors. Dividend and liquidation rights of the common stock may be subject to the rights of any outstanding preferred stock. | ||||||||||||||||||||||
The Company has a shareholders rights plan. Under the plan each share of common stock includes a right to purchase under certain circumstances one one-hundredth of a share of the Company’s Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of $52.00 per one one-hundredth of a preferred share, subject to adjustment, or, in certain circumstances, to receive cash, property, shares of common stock or other securities of the Company. The rights are not presently exercisable and remain attached to the shares of common stock until the occurrence of certain triggering events that would ordinarily be associated with an unsolicited acquisition or attempted acquisition of 10% or more of the Company’s outstanding shares of common stock. The rights will expire, unless earlier redeemed, exchanged, or otherwise rescinded by the Company, on January 13, 2018. The rights have no voting or dividend privileges, and unless and until they become exercisable, have no dilutive effect on the earnings of the Company. | ||||||||||||||||||||||
Capital Adequacy Requirements | ||||||||||||||||||||||
Capital planning by the Company and the Bank considers current needs and anticipated future growth. The primary sources of capital have been the original capitalization of the Bank of $15.5 million from the sale of common stock in 1988 and 1989, the issuance of $10.5 million of trust preferred securities in 2000 by the Trust, and net proceeds of $8.8 million from the 2009 Shareholder Subscription Rights Offering and Supplemental Community Offering (the net proceeds from these offerings were contributed to the Bank). Ongoing sources of capital include the retention of earnings less dividends paid since the Bank commenced operations, proceeds from the exercise of employee stock options and proceeds from purchases of shares pursuant to the Company’s dividend reinvestment plan. | ||||||||||||||||||||||
Although management believes its current capital is adequate to support ongoing operations, on July 18, 2013, the Company filed a shelf registration of common stock, rights or preferred stock with the Securities and Exchange Commission for the flexibility to raise, over a three year period, up to $40 million in capital to position the Company to take advantage of future growth and market share opportunities. | ||||||||||||||||||||||
Applicable regulatory requirements require the Company to maintain minimum total capital equal to 8% of total risk-weighted assets (total capital ratio), minimum Tier 1 capital equal to 4% of total risk-weighted assets (Tier 1 capital ratio) and minimum Tier 1 capital equal to 4% of quarterly average total assets (leverage capital ratio). Tier 1 capital, in the case of the Company, is composed of common equity and, subject to regulatory limits, trust preferred securities, reduced by certain intangible assets. Total capital includes Tier 1 capital plus Tier 2 capital which, in the case of the Company, is composed of the allowance for loan losses up to 1.25% of risk-weighted assets. Applicable regulatory requirements for the Bank are not materially different from those of the Company. | ||||||||||||||||||||||
Failure to meet minimum capital requirements can initiate or result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material adverse effect on the Company’s financial statements. Under applicable capital adequacy requirements and the regulatory framework for prompt corrective action applicable to the Bank, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | ||||||||||||||||||||||
Management believes, as of December 31, 2013, that the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2013 and 2012, both the Company and the Bank qualified as “well capitalized” under applicable Federal Reserve Board and FDIC regulations. To be categorized as well capitalized under prompt corrective action framework, the Company and the Bank must maintain minimum Total and Tier 1 capital ratios, and in the case of the Bank, leverage capital ratios, as set forth in the table below. | ||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios are presented in the following tables. | ||||||||||||||||||||||
Actual | Minimum Capital | Minimum Capital | ||||||||||||||||||||
for Capital | To Be | |||||||||||||||||||||
Adequacy | Well | |||||||||||||||||||||
Purposes | Capitalized* | |||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
The Company | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 174,145 | 11.35 | % | $ | 122,752 | 8 | % | $ | 153,440 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 153,425 | 10 | % | 61,376 | 4 | % | 92,064 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets)* | 153,425 | 8.48 | % | 72,375 | 4 | % | N/A | N/A | ||||||||||||||
The Bank | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 173,126 | 11.28 | % | $ | 122,744 | 8 | % | $ | 153,430 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 152,408 | 9.93 | % | 61,372 | 4 | % | 92,058 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets) | 152,408 | 8.43 | % | 72,343 | 4 | % | 90,428 | 5 | % | |||||||||||||
____________________ | ||||||||||||||||||||||
* For the Bank to qualify as “well capitalized”, it must maintain a leverage capital ratio (Tier 1 capital to average assets) of at least 5%. This requirement does not apply to the Company. | ||||||||||||||||||||||
Actual | Minimum Capital | Minimum Capital | ||||||||||||||||||||
for Capital | To Be | |||||||||||||||||||||
Adequacy | Well | |||||||||||||||||||||
Purposes | Capitalized* | |||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
The Company | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 157,716 | 11.46 | % | $ | 110,079 | 8 | % | $ | 137,599 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 139,714 | 10.15 | % | 55,040 | 4 | % | 82,560 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets)* | 139,714 | 8.64 | % | 64,716 | 4 | % | N/A | N/A | ||||||||||||||
The Bank | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 156,883 | 11.4 | % | $ | 110,075 | 8 | % | $ | 137,594 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 138,882 | 10.09 | % | 55,037 | 4 | % | 82,556 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets) | 138,882 | 8.59 | % | 64,684 | 4 | % | 80,855 | 5 | % | |||||||||||||
_____________________ | ||||||||||||||||||||||
* For the Bank to qualify as “well capitalized”, it must maintain a leverage capital ratio (Tier 1 capital to average assets) of at least 5%. This requirement does not apply to the Company. | ||||||||||||||||||||||
In July 2013, the Federal Reserve, the FDIC and OCC, adopted a final rule that implements the Basel III changes to the international regulatory capital framework and revises the U.S. risk-based and leverage capital requirements for U.S. banking organizations. As a result of these regulatory changes, beginning January 1, 2015, with a phase in period that extends to January 2019, the Company will be subject to changes in the capital ratio calculations and the methodology used to calculate such ratios. For further information on the Basel III requirements see the “Supervision and Regulation” contained in Item 1, "Business" in this Form 10-K. | ||||||||||||||||||||||
Dividends | ||||||||||||||||||||||
Neither the Company nor the Bank may declare or pay dividends on its stock if the effect thereof would cause stockholders’ equity to be reduced below applicable regulatory capital requirements or if such declaration and payment would otherwise violate regulatory requirements. | ||||||||||||||||||||||
As the principal asset of the Company, the Bank currently provides the only source of cash for the payment of dividends by the Company. Under Massachusetts law, trust companies such as the Bank may pay dividends only out of “net profits” and only to the extent that such payments will not impair the Bank’s capital stock. Any dividend payment that would exceed the total of the Bank’s net profits for the current year plus its retained net profits of the preceding two years would require the Massachusetts Division of Banks' approval. Applicable provisions of the FDIC Improvement Act also prohibits a bank from paying any dividends on its capital stock if the bank is in default on the payment of any assessment to the FDIC or if the payment of dividends would otherwise cause the bank to become undercapitalized. These restrictions on the ability of the Bank to pay dividends to the Company may restrict the ability of the Company to pay dividends to the holders of its common stock. | ||||||||||||||||||||||
The statutory term “net profits” essentially equates with the accounting term “net income” and is defined under the Massachusetts banking statutes to mean the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets after deducting from such total all current operating expenses, actual losses, accrued dividends on any preferred stock and all federal and state taxes. | ||||||||||||||||||||||
The Company maintains a dividend reinvestment plan (the “DRP”). The DRP enables stockholders, at their discretion, to elect to reinvest dividends paid on their shares of the Company’s common stock by purchasing additional shares of common stock from the Company at a purchase price equal to fair market value. Shareholders utilized the DRP to reinvest $1.2 million, of the $4.5 million total dividends paid by the Company in 2013, into 69,633 shares of the Company’s common stock, and $1.3 million, of the $4.2 million total dividends paid by the Company in 2012, into 80,392 shares of the Company’s common stock. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Employee Benefit Plans | ' | ||||||||||||
Employee Benefit Plans | |||||||||||||
401(k) Defined Contribution Plan and Profit Sharing | |||||||||||||
The Company has a 401(k) defined contribution employee benefit plan. The 401(k) plan allows eligible employees to contribute a percentage of their earnings to the plan. A portion of the employee contribution, as determined by the Compensation Committee of the Board of Directors, is matched by the Company. The Company’s current percentage match has been 60% up to the first 6% contributed by the employee. | |||||||||||||
All eligible employees, at least 18 years of age and completing 1 hour of service, may participate in the 401(k) plan. Vesting for the Company’s 401(k) plan matching contribution is based on years of service with participants becoming 20% vested on January 1st of the year following their date of hire and each subsequent January 1st increasing pro-rata to 100% vesting on January1st following five years of service. Amounts not distributable to an employee following termination of employment are used to offset plan expenses and other contributions. | |||||||||||||
The Company also has a profit sharing component to the 401(k) plan that vests in the same manner as the 401(k) employer match noted above. Employees are not required to participate in the 401(k) plan to receive a profit sharing contribution. All eligible employees, at least 18 years of age, completing 1 hour of service and employed on the last day of the year, may receive a profit sharing contribution. The Company’s contribution is based on company-wide net income targets that are determined at the beginning of the fiscal year and is calculated as a percentage of an employee’s base salary, including overtime and differentials, earned during the plan year up to a maximum salary amount determined by the Compensation Committee of the Board of Directors, which is currently $75 thousand. | |||||||||||||
From time to time, the Company may also make a discretionary employer contribution to the 401(k) plan. No amounts were contributed as discretionary contributions in 2013, 2012 or 2011. | |||||||||||||
The Company’s expense for the 401(k) plan match (excluding the profit sharing component) was $692 thousand, $629 thousand and $591 thousand, respectively, for the years ended December 31, 2013, 2012, and 2011. | |||||||||||||
The Company’s expense for the profit sharing contribution to the 401(k) plan was $458 thousand, $618 thousand and $399 thousand for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Supplemental Retirement Plan (SERP) | |||||||||||||
The Company has salary continuation agreements with two of its active executive officers, and one former executive officer, who currently works on a part-time basis. These salary continuation agreements provide for a predetermined fixed-cash supplemental retirement benefit to be provided for a period of 20 years after the individual reaches a defined “benefit age.” The Company has not recognized service cost in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the plan. | |||||||||||||
This non-qualified plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the “Accumulated Benefit Obligation,” which is equal to the present value of the benefits to be provided to the employee or any beneficiary. Because the Company’s benefit obligations provide for predetermined fixed-cash payments, the Company does not have any unrecognized costs to be included as a component of accumulated other comprehensive income. | |||||||||||||
The amounts charged to expense for this plan are included in the table below. The Company anticipates accruing an additional $142 thousand to the plan for the year ending December 31, 2014. | |||||||||||||
The following table provides a reconciliation of the changes in the supplemental retirement benefit obligation and the net periodic benefit cost for the years ended December 31: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Reconciliation of benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 3,181 | $ | 3,203 | $ | 3,135 | |||||||
Interest cost | 157 | 134 | 171 | ||||||||||
Actuarial loss (gain) (1) | (173 | ) | 120 | 173 | |||||||||
Benefits paid | (276 | ) | (276 | ) | (276 | ) | |||||||
Benefit obligation at end of year | $ | 2,889 | $ | 3,181 | $ | 3,203 | |||||||
Funded status: | |||||||||||||
Accrued liability as of December 31 | $ | (2,889 | ) | $ | (3,181 | ) | $ | (3,203 | ) | ||||
Discount rate used for benefit obligation | 5 | % | 4.25 | % | 4.75 | % | |||||||
Net periodic benefit cost: | |||||||||||||
Interest cost | 157 | 134 | 171 | ||||||||||
Actuarial loss (gain) (1) | (173 | ) | 120 | 173 | |||||||||
Net periodic benefit costs | $ | (16 | ) | $ | 254 | $ | 344 | ||||||
-1 | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. | ||||||||||||
Benefits expected to be paid in each of the next five years and in the aggregate five years thereafter: | |||||||||||||
(Dollars in thousands) | |||||||||||||
2014 | $ | 276 | |||||||||||
2015 | 276 | ||||||||||||
2016 | 276 | ||||||||||||
2017 | 276 | ||||||||||||
2018 | 276 | ||||||||||||
2019-2023 | 1,379 | ||||||||||||
Supplemental Life Insurance | |||||||||||||
For certain senior and executive officers on whom the Bank owns BOLI, the Bank has provided supplement life insurance, through endorsement split-dollar life insurance arrangements, which provides a death benefit to the officer’s designated beneficiaries. See Item (j) "Bank Owned Life Insurance" in Note 1, "Summary of Significant Accounting Policies," for further information regarding BOLI. | |||||||||||||
The Company has recognized a liability for future benefits associated with the supplemental life insurance plan, which is a non-qualified plan, that provides benefit to employees that extends to postretirement periods. | |||||||||||||
This plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the “Accumulated Postretirement Benefit Obligation,” which is the present value of the future retirement benefits associated with this arrangement. | |||||||||||||
The following table provides a reconciliation of the changes in the supplemental life insurance plan obligation and the net periodic benefit cost for the years ended December 31: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Reconciliation of benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 1,664 | $ | 1,414 | $ | 1,317 | |||||||
Service cost | 2 | 8 | 15 | ||||||||||
Interest cost | 74 | 67 | 72 | ||||||||||
Actuarial loss (gain) (1) | (164 | ) | 175 | 10 | |||||||||
Benefit obligation at end of year | $ | 1,576 | $ | 1,664 | $ | 1,414 | |||||||
Funded status: | |||||||||||||
Accrued liability as of December 31 | $ | (1,576 | ) | $ | (1,664 | ) | $ | (1,414 | ) | ||||
Discount rate used for benefit obligation | 5 | % | 4.25 | % | 4.75 | % | |||||||
Net periodic benefit cost: | |||||||||||||
Service cost | $ | 2 | $ | 8 | $ | 15 | |||||||
Interest cost | 74 | 67 | 72 | ||||||||||
Actuarial loss (gain) (1) | (164 | ) | 175 | 10 | |||||||||
Total net period (benefit) cost | $ | (88 | ) | $ | 250 | $ | 97 | ||||||
(1) | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. | ||||||||||||
The amounts charged to expense for the postretirement cost of insurance for split dollar insurance coverage are included in the table above. The Company anticipates accruing an additional $74 thousand to the plan for the year ending December 31, 2014. | |||||||||||||
See Note 11, “Stock-Based Compensation Plans” below, for additional information regarding employee benefits offered in the form of stock option and restricted stock awards. |
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation Plans | ' | |||||||||||||
Stock-Based Compensation Plans | ||||||||||||||
The Company currently has two individual stock incentive plans: the 2003 plan as amended in 2009, and the 2009 plan as amended in 2012. The plans permit the Board of Directors to grant, under various terms, both incentive and non-qualified stock options (for the purchase of newly issued shares of common stock), restricted stock, restricted stock units and stock appreciation rights to officers and other employees, directors and consultants. These plans also allow for newly issued shares of common stock to be issued without restrictions, to officers and other employees, directors and consultants. As of December 31, 2013, 400,301 shares remain available for future grants under the 2009 plan. The 2003 plan is closed to future grants, although several awards previously granted under this plan remain outstanding and may be exercised in the future. | ||||||||||||||
To date, the Company has utilized the plans to issue stock option awards and restricted stock awards to officers, other employees and directors, and stock compensation in lieu of cash fees to directors. No options or other awards of any kind have been granted to consultants. | ||||||||||||||
Total stock-based compensation expense related to these plans was $1.7 million, $1.3 million and $1.0 million for the years ended 2013, 2012 and 2011 respectively. The total tax benefit recognized related to the stock-based compensation expense was $660 thousand, $507 thousand and $415 thousand for the years ended 2013, 2012 and 2011, respectively. | ||||||||||||||
Stock Option Awards | ||||||||||||||
Accounting guidance requires that the stock-based compensation expense recognized in earnings be based on the amount of awards ultimately expected to vest; therefore, a forfeiture assumption must be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has estimated forfeitures based on historical experience for the portion of the grant which had vested and/or grants already vested based on similarities in the type of options and employee group. | ||||||||||||||
Options granted in 2013 will vest 50% in year two and 50% in year four, on the anniversary date of the awards. Options that are outstanding and have been granted under the plans prior to 2013 generally vest ratably over four years. Vested options are only exercisable while the employee remains employed with the Bank and for a limited period thereafter. Options outstanding at December 31, 2013 consist of options granted in 2007 through 2012 which expire seven years from the grant date, and options granted in 2013 which expire ten years from the grant date. The 2010 and prior awards provide for accelerated vesting of the entire grant for those who are age 62 on the grant date or upon attaining age 62 during the normal vesting period. For all awards, if a grantee’s employment or other service relationship, such as service as a director, is terminated for any reason, then any stock options granted that have not vested as of the time of such termination generally must be forfeited, unless the Compensation Committee or the Board of Directors, as the case may be, waives such forfeiture requirement. | ||||||||||||||
Under the terms of the plans, stock options may not be granted at less than 100% of the fair market value of the shares on the date of grant and may not have a term of more than ten years. Any shares of common stock reserved for issuance pursuant to options granted under the 2009 plan that are returned to the Company unexercised shall remain available for issuance under such plan, while the plan is open. For participants owning 10% or more of the Company’s outstanding common stock (of which there are currently none), incentive stock options may not be granted at less than 110% of the fair market value of the shares on the date of grant and may not have an expiration term of more than five years. | ||||||||||||||
The Company utilizes the Black-Scholes option valuation model in order to determine the per share grant date fair value of option grants. The table below provides a summary of the options granted, fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the years indicated. | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Options granted | 47,684 | 68,750 | 83,075 | |||||||||||
Average assumptions used in the model: | ||||||||||||||
Expected volatility | 48 | % | 50 | % | 45 | % | ||||||||
Expected dividend yield | 2.96 | % | 2.89 | % | 2.91 | % | ||||||||
Expected life in years | 7 | 5.5 | 5.5 | |||||||||||
Risk-free interest rate | 1.35 | % | 1.37 | % | 2.17 | % | ||||||||
Market price on date of grant | $ | 16.61 | $ | 16.25 | $ | 14.88 | ||||||||
Per share weighted average fair value | $ | 6.66 | $ | 6.33 | $ | 5.28 | ||||||||
Fair Value as a percentage of market value at grant date | 40 | % | 39 | % | 35 | % | ||||||||
The expected volatility is the anticipated variability in the Company’s share price over the expected life of the option base on the Company's historical volatility. | ||||||||||||||
The expected dividend yield is the Company’s projected dividends based on historical annualized dividend yield to coincide with volatility divided by its share price at the date of grant. | ||||||||||||||
The expected life represents the period of time that the option is expected to be outstanding. The Company utilized the simplified method and under this method, the expected term equals the vesting term plus the contractual term divided by 2. | ||||||||||||||
The risk-free interest rate is based on the U.S. Treasury rate in effect at the time of grant for a period equivalent to the expected life of the option. | ||||||||||||||
Stock option transactions during the year ended December 31, 2013 are summarized as follows: | ||||||||||||||
(Dollars in thousands, except per share data) | Options | Weighted Average Exercise | Weighted Average Remaining Life in Years | Aggregate | ||||||||||
Price Per Share | Intrinsic | |||||||||||||
Value | ||||||||||||||
Outstanding December 31, 2012 | 649,211 | $ | 14.28 | 2.6 | $ | 1,462 | ||||||||
Granted | 47,684 | 16.61 | ||||||||||||
Exercised | 273,529 | 14.63 | ||||||||||||
Forfeited/Expired | 6,014 | 13.31 | ||||||||||||
Outstanding December 31, 2013 | 417,352 | $ | 14.32 | 3.5 | $ | 2,857 | ||||||||
Vested and Exercisable at December 31, 2013 | 265,252 | $ | 13.59 | 2.1 | $ | 2,012 | ||||||||
The aggregate intrinsic value in the table above represents the difference between the closing price of the Company’s common stock on December 31, 2013 and the exercise price, multiplied by the number of options. If the closing price was less than the exercise price of the option, no intrinsic value was assigned to the grant. At December 31, 2013, vested and exercisable options totaling 265,252 were in-the money. The intrinsic value of options vested and exercisable represents the total pretax intrinsic value that would have been received by the option holders had all in-the-money vested option holders exercised their options on December 31, 2013. The intrinsic value will change based on the fair market value of the Company’s stock. | ||||||||||||||
Cash received from option exercises was $1.8 million, $509 thousand and $309 thousand in 2013, 2012 and 2011, respectively. Total intrinsic value of options exercised was $1.1 million, $151 thousand and $101 thousand in 2013, 2012 and 2011, respectively. | ||||||||||||||
The actual tax benefit arising during the period for the tax deduction from the disqualifying disposition of shares acquired upon exercise was $25 thousand, $2 thousand and $4 thousand in 2013, 2012, and 2011, respectively. | ||||||||||||||
Compensation expense recognized in association with the stock option awards amounted to $422 thousand, $255 thousand and $230 thousand for the years ended 2013, 2012 and 2011, respectively. The total tax benefit recognized related to the stock option expense was $165 thousand, $101 thousand, and $91 thousand for the years ended 2013, 2012, and 2011, respectively. | ||||||||||||||
As of December 31, 2013, there was $620 thousand of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested stock options. That cost is expected to be recognized over the remaining weighted average vesting period of 2.3 years. | ||||||||||||||
Restricted Stock Awards | ||||||||||||||
Stock-based compensation expense recognized in association with the restricted stock award amounted to $1.0 million for the year ended December 31, 2013, $832 thousand for the year ended December 31, 2012, and $639 thousand for the year ended December 31, 2011. The total tax benefit recognized related to restricted stock compensation expense was $418 thousand, $332 thousand, and $257 thousand for the years ended 2013, 2012, and 2011, respectively. | ||||||||||||||
During 2013, the Company granted 80,541 shares of common stock in the form of restricted stock awards. The awards were comprised of 26,660 shares awarded to employees, generally vesting over four years beginning on or about the first anniversary date of the award, 47,735 shares awarded to certain individuals that are performance based awards which vest upon the Company achieving certain predefined performance objectives, and 6,146 shares awarded to directors vesting over two years in equal portions beginning on or about the first anniversary date of the award. The weighted average grant date fair value of the restricted stock awarded during 2013 was $16.43 per share, which reflects the market value of the common stock on the grant dates. | ||||||||||||||
During 2012, the Company granted 72,376 shares of common stock in the form of restricted stock awards comprised of 63,160 shares awarded to employees, generally vesting over four years, 6,216 shares awarded to directors vesting over two years, and 3,000 shares awarded to an executive officer vesting immediately. The weighted average grant date fair value of the restricted stock awarded during 2012 was $16.24 per share, which reflects the market value of the common stock on the grant dates. The unvested 2012 awards generally vest, in each case, in equal portions beginning on or about the first anniversary date of the award. | ||||||||||||||
The restricted stock awards allow for the receipt of dividends, and the voting of all shares, whether or not vested, throughout the vesting periods at the same proportional level as common shares outstanding. | ||||||||||||||
If a grantee’s employment or other service relationship, such as service as a director, is terminated for any reason, then any shares of restricted stock that have not vested as of the time of such termination generally must be forfeited, unless the Compensation Committee or the Board of Directors, as the case may be, waives such forfeiture requirement. | ||||||||||||||
The following table sets forth a summary of the activity for the Company’s restricted stock awards. | ||||||||||||||
(Dollars in thousands, except per share data) | Restricted | Weighted Average Grant Price Per Share | Weighted Average Remaining | Aggregate | ||||||||||
Stock | Life In Years | Intrinsic | ||||||||||||
Value | ||||||||||||||
Unvested at December 31, 2012 | 154,186 | $ | 14.58 | 2.3 | $ | 2,547 | ||||||||
Granted | 80,541 | 16.43 | ||||||||||||
Vested/released | 62,053 | 13.65 | ||||||||||||
Forfeited | 2,309 | 15.72 | ||||||||||||
Unvested at December 31, 2013 | 170,365 | $ | 15.77 | 2.2 | $ | 3,607 | ||||||||
As of December 31, 2013, there remained $1.8 million of unrecognized compensation expense related to the restricted stock awards. That cost is expected to be recognized over the remaining vesting period of 2.5 years. | ||||||||||||||
Director Stock Compensation in Lieu of Fees | ||||||||||||||
In addition to restricted stock awards discussed above, the members of the Company’s Board of Directors may opt to receive newly issued shares of the Company’s common stock in lieu of cash compensation for attendance at Board and Board Committee meetings. Directors must make an irrevocable election to receive shares of common stock in lieu of cash fees prior to December 31st of the preceding year. Directors are granted shares of common stock in lieu of cash fees at a per share price which reflects the market value of the common stock on the first business day of the year. | ||||||||||||||
Total directors' fee expense amounted to $356 thousand, $355 thousand and $368 thousand for the years ended December 31, 2013, 2012 and 2011, respectively. Included in the 2013 expense was stock compensation in lieu of cash fees of $194 thousand, which represented 11,136 shares issued to Directors in January 2014, at a fair market value price of $17.43 per share, which reflected the fair value of the common stock on January 2, 2013. Included in the 2012 expense was stock compensation of $184 thousand, which represented 12,592 shares issued to Directors in January 2013, at a fair market value price of $14.63 per share, which reflected the fair value of the common stock on January 3, 2012. Included in the 2011 expense was stock compensation of $166 thousand, which represented 12,132 shares issued to Directors in January 2012, at a fair market value price of $13.65 per share, which reflected the fair value of the common stock on January 3, 2011. | ||||||||||||||
The total tax benefit recognized related to the expense of Director stock compensation for attendance was $77 thousand, $74 thousand and $67 thousand, for the years ended 2013, 2012 and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
The components of income tax expense for the years ended December 31 were calculated using the asset and liability method as follows: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Current tax expense: | |||||||||||||
Federal | $ | 5,492 | $ | 5,368 | $ | 5,501 | |||||||
State | 1,642 | 1,605 | 1,699 | ||||||||||
Total current tax expense | 7,134 | 6,973 | 7,200 | ||||||||||
Deferred tax (benefit)/ expense: | |||||||||||||
Federal | (100 | ) | (487 | ) | (1,602 | ) | |||||||
State | (83 | ) | (138 | ) | (437 | ) | |||||||
Total deferred tax benefit | (183 | ) | (625 | ) | (2,039 | ) | |||||||
Total income tax expense | $ | 6,951 | $ | 6,348 | $ | 5,161 | |||||||
The provision for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate (34%) to income before taxes as follows: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Computed income tax expense at statutory rate | $ | 6,963 | $ | 6,366 | $ | 5,476 | |||||||
State income taxes, net of federal tax benefit | 1,029 | 968 | 833 | ||||||||||
Tax exempt income, net of disallowance | (988 | ) | (1,020 | ) | (972 | ) | |||||||
Bank-owned life insurance income, net | (156 | ) | (171 | ) | (182 | ) | |||||||
Other | 103 | 205 | 6 | ||||||||||
Total income tax expense | $ | 6,951 | $ | 6,348 | $ | 5,161 | |||||||
Effective income tax rate | 33.9 | % | 33.9 | % | 32 | % | |||||||
At December 31 the tax effects of each type of income and expense item that give rise to deferred taxes are: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||
Deferred tax asset: | |||||||||||||
Allowance for loan losses | $ | 10,959 | $ | 9,841 | |||||||||
Depreciation | 2,804 | 2,811 | |||||||||||
Other-than-temporary impairment on equity securities | 238 | 419 | |||||||||||
Supplemental employee retirement plans | 1,174 | 1,291 | |||||||||||
Non-accrual interest | 1,514 | 1,465 | |||||||||||
Stock-based compensation expense | 661 | 866 | |||||||||||
Impairment of OREO | — | 203 | |||||||||||
Other | 137 | 114 | |||||||||||
Total | 17,487 | 17,010 | |||||||||||
Deferred tax liability: | |||||||||||||
Goodwill | 1,928 | 1,713 | |||||||||||
Net unrealized gains on investments securities | 1,071 | 2,267 | |||||||||||
Deferred origination costs | 561 | 482 | |||||||||||
Total | 3,560 | 4,462 | |||||||||||
Net deferred tax asset | $ | 13,927 | $ | 12,548 | |||||||||
Management believes that it is more likely than not that current recoverable income taxes and the expectation of future taxable income, based on the Company’s history of reporting taxable income, will generate sufficient taxable income to realize the deferred tax asset existing at December 31, 2013. However, factors, beyond management’s control, such as the general state of the economy can affect future levels of taxable income and there can be no assurances that sufficient taxable income will be generated to fully realize the deferred tax assets in the future. In addition, management has the ability to sell any of the equity securities affected by the OTTI charge. A sale of the equity securities would ensure that, for tax purposes, a portion of the losses on sales could be applied against investment gains realized on the portfolio during the past three years, before the ability to carry back losses against these gains expires. | |||||||||||||
The Company paid total income taxes in 2013, 2012, and 2011 of $7.3 million, $6.6 million, and $7.1 million, respectively. | |||||||||||||
The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at December 31, 2013 or December 31, 2012. | |||||||||||||
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and in the states of Massachusetts and New Hampshire. The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2007 through 2013 tax years. | |||||||||||||
The Company invests in qualified affordable housing projects as a limited partner. In 2013, the Company estimated approximately $71 thousand of Federal Low Income Housing tax credits to be recognized. In 2012, the Company recognized approximately $235 thousand in Federal Historic Rehabilitation tax credits and $35 thousand of Federal Low Income Housing tax credits. The Company anticipates that it will receive additional tax credits related to Federal Low Income Housing Tax Credit program in the amount of $607 thousand which are expected to be realized over the next 9 years. |
Earnings_per_share
Earnings per share | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Earnings per share | ' | |||||||||
Earnings per share | ||||||||||
The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the years ended December 31st: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Basic weighted average common shares outstanding | 9,862,678 | 9,586,783 | 9,401,714 | |||||||
Dilutive shares | 87,931 | 73,893 | 44,011 | |||||||
Diluted weighted average common shares outstanding | 9,950,609 | 9,660,676 | 9,445,725 | |||||||
At December 31, 2013 and 2012 there were 527 and 119,236 average outstanding stock options, respectively, which were excluded from the calculations of diluted earnings per share, due to the exercise price exceeding the average market price of the Company’s common stock. These options, which were not dilutive at that date, may potentially dilute earnings per share in the future. | ||||||||||
See Item (q) “Earnings Per Share,” contained in Note 1, “Summary of Significant Accounting Policies,” for additional information regarding the earnings per share calculation. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
The FASB defines the fair value of an asset or liability to be the price which a seller would receive in an orderly transaction between market participants (an exit price) and also establishes a fair value hierarchy segregating fair value measurements using three levels of inputs: (Level 1) quoted market prices in active markets for identical assets or liabilities; (Level 2) significant other observable inputs, including quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs such as interest rates and yield curves, volatilities, prepayment speeds, credit risks and default rates which provide a reasonable basis for fair value determination or inputs derived principally from observed market data; (Level 3) significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability. Unobservable inputs must reflect reasonable assumptions that market participants would use in pricing the asset or liability, which are developed on the basis of the best information available under the circumstances. | |||||||||||||||||||||
The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: | |||||||||||||||||||||
December 31, 2013 | Fair Value Measurements using: | ||||||||||||||||||||
(Dollars in thousands) | Fair Value | (level 1) | (level 2) | (level 3) | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||||||
Fixed income securities | $ | 202,201 | $ | — | $ | 202,201 | $ | — | |||||||||||||
Equity securities | 13,168 | 13,168 | — | — | |||||||||||||||||
FHLB Stock | 4,324 | — | — | 4,324 | |||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||||||
Impaired loans (collateral dependent) | 6,542 | — | — | 6,542 | |||||||||||||||||
Other real estate owned | 114 | — | — | 114 | |||||||||||||||||
December 31, | Fair Value Measurements using: | ||||||||||||||||||||
2012 | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | (level 1) | (level 2) | (level 3) | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||||||
Fixed income securities | $ | 173,796 | $ | — | $ | 173,796 | $ | — | |||||||||||||
Equity securities | 10,668 | 10,668 | — | — | |||||||||||||||||
FHLB Stock | 4,260 | — | — | 4,260 | |||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||||||
Impaired loans (collateral dependent) | 7,110 | — | — | 7,110 | |||||||||||||||||
Other real estate owned | 500 | — | — | 500 | |||||||||||||||||
The Company did not have cause to transfer any assets between the fair value measurement levels during the year ended December 31, 2013 or the year ended December 31, 2012. There were no liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2013, or December 31, 2012. | |||||||||||||||||||||
All of the Company's fixed income investments and equity securities that are considered “available for sale” are carried at fair value. The fixed income category above includes federal agency obligations, federal agency MBS, municipal securities, and corporate bonds, as held at those dates. The Company utilizes third-party pricing vendors to provide valuations on its fixed income securities. Fair values provided by the vendors were generally determined based upon pricing matrices utilizing observable market data inputs for similar or benchmark securities in active markets and/or based on a matrix pricing methodology which employs The Bond Market Association’s standard calculations for cash flow and price/yield analysis, live benchmark bond pricing and terms/condition data available from major pricing sources. Therefore, management regards the inputs and methods used by third party pricing vendors to be “Level 2 inputs and methods” as defined in the “fair value hierarchy.” The Company periodically obtains a second price from an impartial third party on fixed income securities to assess the reasonableness of prices provided by the primary independent pricing vendor. | |||||||||||||||||||||
The Company’s equity portfolio fair value is measured based on quoted market prices for the shares, therefore these securities are categorized as Level 1 within the fair value hierarchy. | |||||||||||||||||||||
Net unrealized appreciation and depreciation on investments available for sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income. | |||||||||||||||||||||
The Bank is required to purchase FHLB stock at par value in association with advances from the FHLB; this stock is classified as a restricted investment and carried at cost which management believes approximates fair value, therefore these securities are categorized as Level 3 measures. See the discussion regarding FHLB stock in Note 1, “Summary of Significant Accounting Policies,” under Item d above, for further information regarding the Company’s fair value assessment of FHLB capital stock. | |||||||||||||||||||||
Impaired loan balances in the table above represent those collateral dependent impaired commercial loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral (appraised value or internal analysis less estimated cost to sell, adjusted as necessary for changes in relevant valuation factors subsequent to the measurement date). Certain inputs used in these assessments, and possible subsequent adjustments, are not always observable, and therefore, collateral dependent impaired loans are categorized as Level 3 within the fair value hierarchy. A specific allowance is assigned to the collateral dependent impaired loan for the amount of management’s estimated credit loss. The specific allowances assigned to the collateral dependent impaired loans at December 31, 2013 amounted to $3.2 million compared to $3.3 million at December 31, 2012. | |||||||||||||||||||||
Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as OREO. When property is acquired, it is generally recorded at the lesser of the loan’s remaining principal balance, net of unamortized deferred fees, or the estimated fair value of the property acquired, less estimated costs to sell. The estimated fair value is based on market appraisals and the Company’s internal analysis. Certain inputs used in appraisals or the Company's internal analysis, are not always observable, and therefore, OREO may be categorized as Level 3 within the fair value hierarchy. There were $121 thousand of gains realized on the sale of OREO in 2013 and a $23 thousand loss was recorded on the remaining property to reflect current expected realizable value. There were $87 thousand in gains on OREO sales in 2012. | |||||||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a recurring and non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of December 31, 2013. | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Unobservable Input Value or Range | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||||||
FHLB Stock | $4,324 | FHLB Stated Par Value | N/A | N/A | |||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||||||
Impaired loans (collateral dependent) | $6,542 | Appraisal of collateral | Appraisal adjustments (1) | 5% - 50% | |||||||||||||||||
Other real estate owned | $114 | Appraisal of collateral | Appraisal adjustments (1) | 0% - 30% | |||||||||||||||||
-1 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||||||
Other Guarantees and Commitments | |||||||||||||||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance by a customer to a third party. The fair value of these commitments was estimated to be the fees charged to enter into similar agreements, and accordingly these fair value measures are deemed to be FASB Level 2 measurements. In accordance with the FASB, the estimated fair values of these commitments are carried on the balance sheet as a liability and amortized to income over the life of the letters of credit, which are typically one year. The estimated fair value of these commitments carried on the balance sheet were deemed immaterial. | |||||||||||||||||||||
Interest rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. These commitments represent the Company’s only derivative instruments and are accounted for in accordance with FASB guidance. The fair values of the Company’s derivative instruments are deemed to be FASB Level 2 measurements. At December 31, 2013 and December 31, 2012, the estimated fair value of the Company’s derivative instruments was considered to be immaterial. | |||||||||||||||||||||
Estimated Fair Values of Assets and Liabilities | |||||||||||||||||||||
In addition to disclosures regarding the measurement of assets and liabilities carried at fair value on the balance sheet, the Company is also required to disclose fair value information about financial instruments for which it is practicable to estimate that value, whether or not recognized on the balance sheet. In cases where quoted fair values are not available, fair values are based upon estimates using various valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following methods and assumptions were used by the Company in estimating fair values of its financial instruments: | |||||||||||||||||||||
Loans held for sale: Loans held for sale are recorded at the lower of aggregate amortized cost or market value. The fair value is based on comparable market prices for loans with similar rates and terms. | |||||||||||||||||||||
Loans: The fair value of loans was determined using discounted cash flow analysis, using interest rates currently being offered by the Company. The incremental credit risk for non-accrual loans was considered in the determination of the fair value of the loans. This method of estimating fair value does not incorporate the exit price concept of fair value. | |||||||||||||||||||||
Commitments: The fair values of the unused portion of lines of credit and letters of credit were estimated to be the fees currently charged to enter into similar agreements. Commitments to originate non-mortgage loans were short-term and were at current market rates and estimated to have no significant change in fair value. | |||||||||||||||||||||
Financial liabilities: The fair values of certificates of deposit and borrowings were estimated using discounted cash flow analysis using rates offered by the Bank, or advance rates offered by the FHLB on December 31, 2013 and December 31, 2012 for similar instruments. The fair value of junior subordinated debentures was estimated using discounted cash flow analysis using a market rate of interest at December 31, 2013 and December 31, 2012. | |||||||||||||||||||||
Limitations: The estimates of fair value of financial instruments were based on information available at December 31, 2013 and December 31, 2012 and are not indicative of the fair market value of those instruments as of the date of this report. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. The fair value of the Company's time deposit liabilities do not take into consideration the value of the Company's long-term relationships with depositors, which may have significant value. | |||||||||||||||||||||
Because no active market exists for a portion of the Company’s financial instruments, fair value estimates were based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||||||
Fair value estimates were based on existing on- and off-balance sheet financial instruments without an attempt to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. | |||||||||||||||||||||
In addition, the tax ramifications related to the realization of the unrealized appreciation and depreciation can have a significant effect on fair value estimates and have not been considered in any of the estimates. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. | |||||||||||||||||||||
The carrying values, estimated fair values and placement in the fair value hierarchy of the Company’s financial instruments(1) for which fair value is only disclosed but not recognized on the balance sheet at the dates indicated are summarized as follows: | |||||||||||||||||||||
December 31, 2013 | Fair value measurement | ||||||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Loans held for sale | $ | 1,255 | $ | 1,255 | $ | — | $ | 1,255 | $ | — | |||||||||||
Loans, net | 1,497,089 | 1,516,809 | — | — | 1,516,809 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Certificates of deposit (including brokered) | 251,650 | 250,045 | — | 250,045 | — | ||||||||||||||||
Borrowed funds | 36,534 | 36,535 | — | 36,535 | — | ||||||||||||||||
Junior subordinated debentures | 10,825 | 11,358 | — | — | 11,358 | ||||||||||||||||
December 31, 2012 | Fair value measurement | ||||||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Loans held for sale | $ | 8,557 | $ | 8,603 | $ | — | $ | 8,603 | $ | — | |||||||||||
Loans, net | 1,335,401 | 1,355,893 | — | — | 1,355,893 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Certificates of deposit (including brokered) | 231,198 | 231,687 | — | 231,687 | — | ||||||||||||||||
Borrowed funds | 26,540 | 26,553 | — | 26,553 | — | ||||||||||||||||
Junior subordinated debentures | 10,825 | 12,597 | — | — | 12,597 | ||||||||||||||||
(1) Excluded from this table are certain financial instruments that approximated their fair value, as they were short-term in nature or payable on demand. These include cash and cash equivalents, accrued interest receivable, non-term deposit accounts, and accrued interest payable. The respective carrying values of these instruments would all be considered to be classified within Level 1 of their fair value hierarchy. |
Parent_Company_Only_Financial_
Parent Company Only Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Parent Company Only Financial Statements | ' | ||||||||||||
Parent Company Only Financial Statements | |||||||||||||
Balance Sheets | |||||||||||||
December 31, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||
Assets | |||||||||||||
Cash | $ | 729 | $ | 542 | |||||||||
Investment in subsidiaries | 161,580 | 149,963 | |||||||||||
Other assets | 233 | 242 | |||||||||||
Total assets | $ | 162,542 | $ | 150,747 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Liabilities | |||||||||||||
Junior subordinated debentures | $ | 10,825 | $ | 10,825 | |||||||||
Accrued interest payable | 370 | 370 | |||||||||||
Other liabilities | 13 | 3 | |||||||||||
Total liabilities | 11,208 | 11,198 | |||||||||||
Stockholders' equity: | |||||||||||||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | — | — | |||||||||||
Common stock $0.01 par value per share; 20,000,000 shares authorized; 9,992,560 issued and outstanding at December 31, 2013 (including 170,365 shares of unvested participating restricted awards) and 9,676,477 shares issued and outstanding at December 31, 2012 (including 154,186 shares of unvested participating restricted awards) | 100 | 97 | |||||||||||
Additional paid-in capital | 52,936 | 48,194 | |||||||||||
Retained earnings | 96,153 | 87,159 | |||||||||||
Accumulated other comprehensive income | 2,145 | 4,099 | |||||||||||
Total stockholders’ equity | $ | 151,334 | $ | 139,549 | |||||||||
Total liabilities and stockholders’ equity | $ | 162,542 | $ | 150,747 | |||||||||
Statements of Income | |||||||||||||
For the years ended December 31, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Equity in undistributed net income of subsidiaries | $ | 13,571 | $ | 10,910 | $ | 9,356 | |||||||
Dividends distributed by subsidiaries | 950 | 2,350 | 3,000 | ||||||||||
Total income | 14,521 | 13,260 | 12,356 | ||||||||||
Interest expense | 1,177 | 1,177 | 1,177 | ||||||||||
Other operating expenses | 225 | 171 | 225 | ||||||||||
Total operating expenses | 1,402 | 1,348 | 1,402 | ||||||||||
Income before income taxes | 13,119 | 11,912 | 10,954 | ||||||||||
Provision for (benefit from) income taxes | (410 | ) | (463 | ) | 10 | ||||||||
Net income | $ | 13,529 | $ | 12,375 | $ | 10,944 | |||||||
Parent Company Only Financial Statements | |||||||||||||
Statements of Cash Flows | |||||||||||||
For the years ended December 31, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 13,529 | $ | 12,375 | $ | 10,944 | |||||||
Adjustments to reconcile net income to net cash | |||||||||||||
Equity in undistributed net income of subsidiaries | (13,571 | ) | (10,910 | ) | (9,356 | ) | |||||||
Payment from subsidiary bank for stock compensation expense | 1,652 | 1,253 | 1,003 | ||||||||||
Changes in: | |||||||||||||
Other assets | 9 | (145 | ) | 5 | |||||||||
Other liabilities | 10 | (2 | ) | 2 | |||||||||
Net cash provided by operating activities | 1,629 | 2,571 | 2,598 | ||||||||||
Cash flows from financing activities: | |||||||||||||
Cash dividends paid | (4,535 | ) | (4,215 | ) | (3,945 | ) | |||||||
Proceeds from issuance of common stock | 1,239 | 1,274 | 1,254 | ||||||||||
Proceeds from exercise of stock options | 1,829 | 509 | 309 | ||||||||||
Tax benefit from exercise of stock options | 25 | 2 | 4 | ||||||||||
Net cash used in financing activities | (1,442 | ) | (2,430 | ) | (2,378 | ) | |||||||
Net increase in cash and cash equivalents | 187 | 141 | 220 | ||||||||||
Cash and cash equivalents, beginning of year | 542 | 401 | 181 | ||||||||||
Cash and cash equivalents, end of year | $ | 729 | $ | 542 | $ | 401 | |||||||
The Parent Company’s Statements of Comprehensive Income and Statements of Changes in Stockholders’ Equity are identical to the Consolidated Statements of Changes in Stockholders’ Equity and therefore are not presented here. |
Quarterly_Results_of_Operation
Quarterly Results of Operations | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Results of Operations (Unaudited) | ' | ||||||||||||||||
Quarterly Results of Operations (Unaudited) | |||||||||||||||||
2013 | |||||||||||||||||
(Dollars in thousands, except share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest and dividend income | $ | 17,193 | $ | 17,458 | $ | 17,946 | $ | 18,525 | |||||||||
Interest expense | 1,374 | 1,331 | 1,313 | 1,313 | |||||||||||||
Net interest income | 15,819 | 16,127 | 16,633 | 17,212 | |||||||||||||
Provision for loan losses | 783 | 534 | 583 | 1,379 | |||||||||||||
Net interest income after provision for loan losses | 15,036 | 15,593 | 16,050 | 15,833 | |||||||||||||
Non-interest income | 3,159 | 3,085 | 3,085 | 3,224 | |||||||||||||
Net gains on sales of investment securities | 480 | 468 | 83 | 208 | |||||||||||||
Non-interest expense | 13,454 | 14,461 | 13,781 | 14,128 | |||||||||||||
Income before income taxes | 5,221 | 4,685 | 5,437 | 5,137 | |||||||||||||
Provision for income taxes | 1,788 | 1,606 | 1,904 | 1,653 | |||||||||||||
Net income | $ | 3,433 | $ | 3,079 | $ | 3,533 | $ | 3,484 | |||||||||
Basic earnings per share | $ | 0.35 | $ | 0.31 | $ | 0.36 | $ | 0.35 | |||||||||
Diluted earnings per share | $ | 0.35 | $ | 0.31 | $ | 0.35 | $ | 0.35 | |||||||||
2012 | |||||||||||||||||
(Dollars in thousands, except share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest and dividend income | $ | 16,776 | $ | 17,087 | $ | 17,182 | $ | 17,360 | |||||||||
Interest expense | 1,847 | 1,676 | 1,534 | 1,438 | |||||||||||||
Net interest income | 14,929 | 15,411 | 15,648 | 15,922 | |||||||||||||
Provision for loan losses | 300 | 1,050 | 800 | 600 | |||||||||||||
Net interest income after provision for loan losses | 14,629 | 14,361 | 14,848 | 15,322 | |||||||||||||
Non-interest income | 2,927 | 2,840 | 2,947 | 3,225 | |||||||||||||
Net gains on sales of investment securities | 47 | 112 | 38 | 39 | |||||||||||||
Non-interest expense | 12,818 | 12,972 | 13,010 | 13,812 | |||||||||||||
Income before income taxes | 4,785 | 4,341 | 4,823 | 4,774 | |||||||||||||
Provision for income taxes | 1,612 | 1,436 | 1,760 | 1,540 | |||||||||||||
Net income | $ | 3,173 | $ | 2,905 | $ | 3,063 | $ | 3,234 | |||||||||
Basic earnings per share | $ | 0.33 | $ | 0.3 | $ | 0.32 | $ | 0.34 | |||||||||
Diluted earnings per share | $ | 0.33 | $ | 0.3 | $ | 0.32 | $ | 0.33 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Principles of Consolidation | ' | ||
The consolidated financial statements of Enterprise Bancorp, Inc. (the “Company” or “Enterprise”), a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary Enterprise Bank and Trust Company (the “Bank”). The Bank is a Massachusetts trust company organized in 1989. Substantially all of the Company’s operations are conducted through the Bank. | |||
The Bank’s subsidiaries include Enterprise Insurance Services, LLC and Enterprise Investment Services, LLC, organized under the laws of the state of Delaware for the purposes of engaging in insurance sales activities and offering non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III, which hold various types of qualifying securities. The security corporations are limited to conducting securities investment activities that the Bank itself would be allowed to conduct under applicable laws. | |||
The Company has 22 full service branches serving the Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. Through the Bank and its subsidiaries, the Company offers a range of commercial and consumer loan products, deposit and cash management products, investment advisory and wealth management, trust and insurance services. The services offered through the Bank and its subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. | |||
Pursuant to the Accounting Standards Codification (“ASC”) Topic 810 “Consolidation of Variable Interest Entities,” issued by the Financial Accounting Standards Board ("FASB"), the Company carries Junior Subordinated Debentures as a liability on its consolidated financial statements, along with the related interest expense. The debentures were issued by a statutory business trust (the "Trust") created by the Company in March 2000 under the laws of the State of Delaware, and the trust preferred securities issued by the Trust, and the related non-interest expense, are excluded from the Company’s consolidated financial statements. | |||
The Federal Deposit Insurance Corporation (“FDIC”) and the Massachusetts Division of Banks (the “Division”) have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Commissioner also retains supervisory jurisdiction over the Company. | |||
Use of Estimates | ' | ||
In preparing the financial statements in conformity with U.S. generally accepted accounting principles ("GAAP"), management is required to exercise judgment in determining many of the methodologies, estimates and assumptions to be utilized. These estimates and assumptions affect the reported values of assets and liabilities at the balance sheet date and income and expenses for the years then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used change over time due to changes in circumstances. Changes in those estimates resulting from continuing change in the economic environment and other factors will be reflected in the financial statements and results of operations in future periods. The three most significant areas in which management applies critical assumptions and estimates are the estimate of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. | |||
Basis of Accounting | ' | ||
The accompanying audited consolidated financial statements and notes thereto have been prepared in accordance with GAAP and the instructions for Form 10-K through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying consolidated financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying consolidated financial statements. | |||
Cash and Cash Equivalents | ' | ||
Cash and cash equivalents | |||
Cash equivalents are defined as highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of changes in value due to changes in interest rates. The Company's cash and cash equivalents are comprised of cash on hand and cash items due from banks, interest-earning deposits (deposit, money market, and money market mutual fund accounts) and overnight and term federal funds sold ("fed funds"). Balances in cash and cash equivalents will fluctuate resulting primarily from the timing of net deposit flows, borrowing and loan inflows and outflows, investment purchases and maturities, calls and sales proceeds, and the immediate liquidity needs of the Company. | |||
Investments | ' | ||
Investments | |||
Investments that are intended to be held for indefinite periods of time but which may not be held to maturity or on a long-term basis are considered to be “available for sale” and are carried at fair value. Net unrealized appreciation and depreciation on investments available for sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income. Included as available for sale are securities that are purchased in connection with the Company’s asset-liability risk management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk and other related factors. In instances where the Company has the positive intent to hold investment securities to maturity, investment securities will be classified as held to maturity and carried at amortized cost. As of the balance sheet dates, all of the Company’s investment securities were classified as available for sale and carried at fair value. | |||
There are inherent risks associated with the Company’s investment activities which could adversely impact the fair market value and the ultimate collectability of the Company’s investments. Management regularly reviews the portfolio for securities with unrealized losses that are other than temporarily impaired. The determination of other-than-temporary impairment (“OTTI”) involves a high degree of judgment and requires management to make significant estimates of current market risks and future trends. Management's assessment, depending on the type of security includes: reviews of market pricing, evaluating the level and duration of the loss on individual securities; ongoing credit quality evaluations; determining if any individual security or mutual fund or other fund exhibits fundamental deterioration; and estimating whether it is unlikely that the individual security or fund will completely recover its unrealized loss within a reasonable period of time, or in the case of fixed income securities prior to maturity. While management uses available information to measure OTTI at the balance sheet date, future write-downs may be necessary based on extended duration of current unrealized losses, changing market conditions, or circumstances surrounding individual issuers and funds. | |||
Should an investment be deemed have OTTI, the Company is required to write-down the carrying value of the investment. OTTI on equity securities are recognized through a charge to earnings. OTTI on fixed income securities are assessed in order to determine the impairment attributed to underlying credit quality of the issuer and the portion of noncredit impairment. When there are credit losses on a fixed income security that management does not intend to sell and it is more likely than not that the Company will not be required to sell prior to a marketplace recovery or maturity, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the security’s amortized cost basis and its fair value would be included in other comprehensive income. Once written-down, a security may not be written-up in excess of its new cost basis to reflect future increases in market prices. Any OTTI charges, depending upon the magnitude of the charges, could have a material adverse effect on the Company’s financial condition and results of operations. | |||
Investment securities’ discounts are accreted and premiums are amortized over the period of estimated principal repayment using methods that approximate the interest method. | |||
Gains or losses on the sale of investment securities are recognized on the trade date on a specific identification basis. | |||
(d) Restricted Investments | |||
As a member of the Federal Home Loan Bank of Boston (“FHLB”), the Bank is required to purchase certain levels of FHLB stock in association with outstanding advances from the FHLB; this restricted stock investment is carried at cost on the balance sheet, which management believes approximates fair value. FHLB stock represents the only restricted investment held by the Company. | |||
In conjunction with the OTTI review noted above under investments, management also regularly reviews its holdings of FHLB stock for OTTI. Based on management’s ongoing review, the Company has not recorded any OTTI charges on this investment to date. However, if negative events or deterioration in the FHLB financial condition or capital levels occurs, the Company’s investment in FHLB capital stock may become other-than-temporarily impaired to some degree. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. | |||
Loans Held for Sale | ' | ||
Loans Held for Sale | |||
Depending on the current interest rate environment, management projections of future interest rates and the overall asset-liability management program of the Company, management may elect to sell those fixed and adjustable rate residential mortgage loans which are eligible for sale in the secondary market. Loans held for sale are carried at the lower of aggregate amortized cost or market value. Market value is based on comparable market prices for loans with similar rates and terms. Mortgage loans are generally not pooled for sale, but instead sold on an individual basis. Enterprise may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan, and are subject to an early payment default period covering the first four payments for certain loan sales. When loans are sold, a gain or loss is recognized to the extent that the sales proceeds plus unamortized fees and costs exceed, or are less than, the carrying value of the loans. Gains and losses are determined using the specific identification method. | |||
Loans | ' | ||
Loans | |||
Loans made by the Company to businesses include commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and standby letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner occupied primary and secondary residences, secured and unsecured personal loans and lines of credit. Most loans granted by the Company are collateralized by real estate or equipment and/or are guaranteed by the principals of the borrower. The ability and willingness of the single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity and real estate values within the borrowers’ geographic areas. The ability and willingness of commercial real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic areas and the general economy, among other factors. | |||
Loans are reported at the principal amount outstanding, net of deferred origination fees and costs. The aggregate amount of overdrawn deposit accounts are reclassified as loan balances. Loan origination fees received, offset by direct loan origination costs, are deferred and amortized using the straight line method over three to five years for lines of credit and demand notes or over the life of the related loans using the level-yield method for all other types of loans. When loans are paid off, the unamortized fees and costs are recognized as an adjustment to interest income. | |||
Loans acquired at a net premium are initially measured at fair value as of the acquisition date without carryover of historical allowance for loan losses. Credit discounts representing losses of unpaid loan principal balances expected over the life of the loans are included in the determination of acquisition date fair value. The fair-market valuation of loans acquired at a premium is amortized into interest income on a level-yield basis over the life of the loan. Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses are similar to originated loans. | |||
Allowance for Loan Losses | ' | ||
Allowance for Loan Losses | |||
The allowance for loan losses is an estimate of credit risk inherent in the loan portfolio as of the specified balance sheet dates. The allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated losses from specifically known and other credit risks associated with the portfolio. | |||
The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology uses a two-tiered approach that makes use of specific reserves for loans individually evaluated and deemed impaired and general reserves for larger groups of homogeneous loans. | |||
On a quarterly basis, the Company prepares an estimate of the allowance necessary to cover estimated credit risk inherent in the portfolio as of the specified balance sheet dates. The adequacy of the allowance for loan losses is reviewed and evaluated on a regular basis by an internal management committee, a sub-committee of the Board of Directors and the full Board itself. | |||
While management uses available information to recognize losses on loans, future additions to the allowance may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. | |||
See Note 4, "Allowance for Loan Losses," for additional accounting policies related to non-accrual, impaired and troubled debt restructured loans and to the allowance for loan losses. | |||
Other Real Estate Owned | ' | ||
Other Real Estate Owned | |||
Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as Other Real Estate Owned (“OREO”). When property is acquired, it is generally recorded at the lesser of the loan’s remaining principal balance, net of unamortized deferred fees, or the estimated fair value of the property acquired, less estimated costs to sell. The estimated fair value is based on market appraisals and the Company’s internal analysis. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value are charged to non-interest expense. | |||
Premises and Equipment | ' | ||
Premises and Equipment | |||
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: | |||
Buildings, renovations and leasehold improvements | 10 to 39 years | ||
Computer software and equipment | 3 to 5 years | ||
Furniture, fixtures and equipment | 3 to 10 years | ||
Bank Owned Life Insurance | ' | ||
Bank Owned Life Insurance | |||
The Company has purchased bank owned life insurance (“BOLI”) on certain current and former senior and executive officers. The cash surrender value carried on the balance sheet at December 31, 2013 and December 31, 2012 amounted to $15.9 million and $15.4 million, respectively. There are no associated surrender charges under the outstanding policies. | |||
Impairment of Long-Lived Assets Other than Goodwill | ' | ||
Impairment of Long-Lived Assets Other than Goodwill | |||
The Company reviews long-lived assets, including premises and equipment, for impairment on an ongoing basis or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is recognized through a charge to earnings. Impairment losses on assets disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. | |||
Goodwill | ' | ||
Goodwill | |||
Goodwill carried on the Company’s consolidated financial statements was $5.7 million at both December 31, 2013 and December 31, 2012. This asset is related to the Company’s acquisition of two branch offices in July 2000. | |||
In accordance with generally accepted accounting principles, the Company does not amortize goodwill and instead, at least annually, evaluates whether the carrying value of goodwill has become impaired. Impairment of the goodwill may occur when the estimated fair value of the Company is less than its recorded book value. A determination that goodwill has become impaired results in an immediate write-down of goodwill to its determined value with a resulting charge to operations. | |||
The annual impairment test begins with a qualitative assessment of whether it is more likely than not that the reporting unit's fair value is less than its carrying amount. The assessment is performed at the operating unit level. If an entity concludes it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. In the case of the Company, the services offered through the Bank and subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. | |||
Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was not considered to be impaired at December 31, 2013. | |||
If the Company's qualitative assessment concluded that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test, used to identify potential impairment, compares the estimated fair value of the reporting unit with its carrying amount, or the book value of the reporting unit, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. | |||
The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair values for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of that goodwill, an impairment loss is recognized in the amount required to write down the goodwill to the implied fair value. | |||
Investment Assets Under Management | ' | ||
Investment Assets Under Management | |||
Investment assets under management, consisting of assets managed through Enterprise Investment Advisors and Enterprise Investment Services and the commercial sweep product, totaled $667.3 million and $592.4 million at December 31, 2013 and 2012, respectively. Fee income is recorded on an accrual basis and recognized over the period in which it is earned. Securities and other property held in a fiduciary or agency capacity are not included in the consolidated balance sheets because they are not assets of the Company. | |||
Derivatives | ' | ||
Derivatives | |||
The Company recognizes all derivatives as either assets or liabilities on its balance sheet and measures those instruments at fair market value. | |||
Interest rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. | |||
At December 31, 2013 and 2012, the estimated fair values of the Company’s derivative instruments were considered to be immaterial. | |||
Stock Based Compensation | ' | ||
Stock Based Compensation | |||
The Company’s financial statements include stock-based compensation expense for the portion of stock option awards, net of estimated forfeitures, and restricted stock awards for which the requisite service has been rendered during the period. The compensation expense has been estimated based on the estimated grant-date fair value of the awards, or in the case of restricted stock awards, the market value of the common stock on the date of grant. The Company will recognize the remaining estimated compensation expense for the portion of outstanding awards and compensation expense for any future awards, net of estimated forfeitures, as the requisite service is rendered (i.e., on a straight-line basis over the remaining vesting period of each award). Stock awards that do not require future service (“vested awards”) will be expensed immediately. Stock-based compensation also includes stock compensation for Directors in lieu of cash fees, which is described in more detail in Note 11 "Stock-Based Compensation Plans." | |||
Income Taxes | ' | ||
Income Taxes | |||
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities will be adjusted accordingly through the provision for income taxes. | |||
The Company’s policy is to classify interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law. The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position. | |||
The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at December 31, 2013 or December 31, 2012. The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2007 through 2013 tax years. | |||
Earnings Per Share | ' | ||
Earnings Per Share | |||
Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding (including participating securities) during the year. The Company's only participating securities are unvested restricted stock awards that contain non-forfeitable rights to dividends. Diluted earnings per share reflects the effect on weighted average shares outstanding of the number of additional shares outstanding if dilutive stock options were converted into common stock using the treasury stock method. | |||
Reporting Comprehensive Income | ' | ||
Reporting Comprehensive Income | |||
Comprehensive income is defined as all changes to equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. The Company’s only other comprehensive income component is the net unrealized holding gains or losses on investments available-for-sale, net of deferred income taxes. Pursuant to Accounting Standards Update (“ASU”) No. 2013-02, Comprehensive Income (Topic 220): Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income, the Company initially excludes these unrealized holding gains and losses from net income; however, they are later reported as reclassifications out of accumulated other comprehensive income into net income when the securities are sold. When securities are sold, the reclassification of realized gains and losses on available-for-sale securities are included on the Consolidated Statements of Income under the "non-interest income" subheading on the line item "net gains on sales of investment securities" and the related income tax expense is included in the line item "provision for income taxes," both of which are also detailed on the Consolidated Statements of Comprehensive Income under the subheading "reclassification adjustment for net gains included in net income." | |||
Recent Accounting Pronouncements | ' | ||
Recent Accounting Pronouncements | |||
In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments are intended to reduce diversity of practice by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a residential mortgage loan, such that the loan should be removed, and the real estate property recognized, on the financial statements. Additionally, the amendments require interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in collateralized residential mortgage loans that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods beginning after December 15, 2014. As this ASU primarily offers clarification of existing standards and added disclosures, the adoption of this ASU in the first quarter of 2015 is not expected to have a material impact on the Company's financial statements, or results of operations. | |||
In January 2014, the FASB issued ASU No. 2014-01, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for such investments using the proportional amortization method if certain conditions are met. The investor must recognize any subsequent impairment loss when it is more likely than not that the carrying amount of the investment will not be realized. Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The decision to apply the proportional amortization method of accounting is an accounting policy decision that must be applied consistently to all qualifying affordable housing project investments rather than a decision to be applied to individual investments. A reporting entity must disclose information that enables users of its financial statements to understand the nature of such investments and the effect of the measurement, and the related tax credits, on its financial position and results of operations. The amendments in this Update are to be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods beginning after December 15, 2014. Early adoption is permitted. The adoption by the Company of this ASU is not expected to have a material impact on the Company's financial statements, or results of operations. | |||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2013-02, Comprehensive Income (Topic 220): Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income. The new amendments require an organization to present the effects on the income statement of significant amounts reclassified out of accumulated other comprehensive income or cross-reference to other disclosures currently required under U.S. GAAP for certain items. The new amended standard is effective for annual periods beginning after December 15, 2012, and interim periods within those annual periods. As this ASU addresses only disclosure requirements, this adoption in the first quarter of 2013 did not have a material impact on the Company's financial statements. See subsection (r) "Reporting Comprehensive Income" contained within this Note 1, for the disclosure of the effects of amounts reclassified out of accumulated other comprehensive income. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Property, Plant and Equipment, Useful Lives | ' | ||
Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: | |||
Buildings, renovations and leasehold improvements | 10 to 39 years | ||
Computer software and equipment | 3 to 5 years | ||
Furniture, fixtures and equipment | 3 to 10 years | ||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | ||||||||||||||||||||||||||||
The amortized cost and fair values of investments at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||||||
cost | gains | losses | |||||||||||||||||||||||||||
Federal agency obligations(1) | $ | 55,440 | $ | 146 | $ | 43 | $ | 55,543 | |||||||||||||||||||||
Federal agency mortgage backed securities (MBS)(1) | 80,997 | 367 | 1,714 | 79,650 | |||||||||||||||||||||||||
Municipal securities | 60,675 | 1,604 | 325 | 61,954 | |||||||||||||||||||||||||
Corporate bonds | 5,080 | 29 | 55 | 5,054 | |||||||||||||||||||||||||
Total fixed income securities | 202,192 | 2,146 | 2,137 | 202,201 | |||||||||||||||||||||||||
Equity investments | 9,960 | 3,228 | 20 | 13,168 | |||||||||||||||||||||||||
Total available for sale investments, at fair value | $ | 212,152 | $ | 5,374 | $ | 2,157 | $ | 215,369 | |||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||||||
cost | gains | losses | |||||||||||||||||||||||||||
Federal Agency Obligations(1) | $ | 65,247 | $ | 438 | $ | — | $ | 65,685 | |||||||||||||||||||||
Federal Agency mortgage backed securities (MBS)(1) | 48,429 | 1,287 | 42 | 49,674 | |||||||||||||||||||||||||
Municipal securities | 53,437 | 3,103 | 17 | 56,523 | |||||||||||||||||||||||||
Corporate bonds | 1,905 | 15 | 6 | 1,914 | |||||||||||||||||||||||||
Total fixed income securities | 169,018 | 4,843 | 65 | 173,796 | |||||||||||||||||||||||||
Equity investments | 9,080 | 1,622 | 34 | 10,668 | |||||||||||||||||||||||||
Total available for sales investments, at fair value | $ | 178,098 | $ | 6,465 | $ | 99 | $ | 184,464 | |||||||||||||||||||||
-1 | These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae (FNMA), Freddie Mac (FHLMC), Ginnie Mae (GNMA), Federal Farm Credit Bank (FFCB), or one of several Federal Home Loan Banks (FHLBs). All agency MBS/CMO investments owned by the Company are backed by residential mortgages. | ||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | ' | ||||||||||||||||||||||||||||
The following tables summarize investments having temporary impairment, due to the fair market values having declined below the amortized costs of the individual investments, and the period that the investments have been impaired at December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
Value | Losses | value | Losses | Value | Losses | ||||||||||||||||||||||||
Federal Agency Obligations | $ | 14,026 | $ | 43 | $ | — | $ | — | $ | 14,026 | $ | 43 | |||||||||||||||||
Federal agency MBS | $ | 56,554 | $ | 1,176 | $ | 8,457 | $ | 538 | $ | 65,011 | $ | 1,714 | |||||||||||||||||
Municipal securities | 12,791 | 292 | 609 | 33 | 13,400 | 325 | |||||||||||||||||||||||
Corporate bonds | 2,100 | 39 | 433 | 16 | 2,533 | 55 | |||||||||||||||||||||||
Equity investments | 749 | 16 | 21 | 4 | 770 | 20 | |||||||||||||||||||||||
Total temporarily impaired investments | $ | 86,220 | $ | 1,566 | $ | 9,520 | $ | 591 | $ | 95,740 | $ | 2,157 | |||||||||||||||||
2012 | |||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
Value | Losses | value | Losses | Value | Losses | ||||||||||||||||||||||||
Federal agency MBS | $ | 9,954 | $ | 42 | $ | — | $ | — | $ | 9,954 | $ | 42 | |||||||||||||||||
Municipal securities | 1,996 | 17 | — | — | 1,996 | 17 | |||||||||||||||||||||||
Corporate bonds | 1,063 | 6 | — | — | 1,063 | 6 | |||||||||||||||||||||||
Equity investments | 172 | 2 | 453 | 32 | 625 | 34 | |||||||||||||||||||||||
Total temporarily impaired investments | $ | 13,185 | $ | 67 | $ | 453 | $ | 32 | $ | 13,638 | $ | 99 | |||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | ||||||||||||||||||||||||||||
The contractual maturity distribution of total fixed income investments at December 31, 2013 is as follows: | |||||||||||||||||||||||||||||
Within One Year | After One, but within | After Five, but within | After Ten Years | ||||||||||||||||||||||||||
Five Years | Ten Years | ||||||||||||||||||||||||||||
(Dollars in thousands) | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | |||||||||||||||||||||
At amortized cost: | |||||||||||||||||||||||||||||
Federal agency obligations | $ | 10,030 | 0.82 | % | $ | 42,443 | 0.78 | % | $ | 2,967 | 1.97 | % | $ | — | — | % | |||||||||||||
MBS | — | — | % | 3,341 | 2.45 | % | 7,562 | 3.02 | % | 70,094 | 2.14 | % | |||||||||||||||||
Municipal securities | 3,349 | 2.04 | % | 20,023 | 2.83 | % | 31,135 | 4.4 | % | 6,168 | 6.42 | % | |||||||||||||||||
Corporate bonds | — | — | % | 3,387 | 1.54 | % | 1,693 | 2.68 | % | — | — | % | |||||||||||||||||
Total fixed income securities | $ | 13,379 | 1.12 | % | $ | 69,194 | 1.49 | % | $ | 43,357 | 3.93 | % | $ | 76,262 | 2.49 | % | |||||||||||||
At fair value: | |||||||||||||||||||||||||||||
Total fixed income securities | $ | 13,439 | $ | 69,864 | $ | 43,996 | $ | 74,902 | |||||||||||||||||||||
Schedule of Realized Gain (Loss) on Sales of Investments | ' | ||||||||||||||||||||||||||||
Sales of investments for the years ended December 31, 2013, 2012, and 2011 are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Amortized cost of investments sold | $ | 8,325 | $ | 3,309 | $ | 10,553 | |||||||||||||||||||||||
Gross realized gains on sales | 1,243 | 241 | 791 | ||||||||||||||||||||||||||
Gross realized losses on sales | (4 | ) | (5 | ) | — | ||||||||||||||||||||||||
Total proceeds from sales of investments | $ | 9,564 | $ | 3,545 | $ | 11,344 | |||||||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Loans by Loan Classification | ' | ||||||||
Major classifications of loans at the periods indicated, are as follows: | |||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | |||||||
Real estate: | |||||||||
Commercial real estate | $ | 820,299 | $ | 710,265 | |||||
Commercial construction | 132,507 | 121,367 | |||||||
Residential mortgages | 132,721 | 120,278 | |||||||
Total real estate | 1,085,527 | 951,910 | |||||||
Commercial and industrial | 357,056 | 328,579 | |||||||
Home equity | 74,354 | 75,648 | |||||||
Consumer | 8,643 | 4,911 | |||||||
Gross loans | 1,525,580 | 1,361,048 | |||||||
Deferred loan origination fees, net | (1,524 | ) | (1,393 | ) | |||||
Total loans | 1,524,056 | 1,359,655 | |||||||
Allowance for loan losses | (26,967 | ) | (24,254 | ) | |||||
Net loans | $ | 1,497,089 | $ | 1,335,401 | |||||
Schedule of Loans Pledged as Collateral | ' | ||||||||
Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity for the periods indicated are summarized below: | |||||||||
(Dollars in thousands) | December 31, 2013 | December 31, 2012 | |||||||
Commercial real estate | $ | 320,908 | $ | 216,080 | |||||
Residential mortgages | 97,626 | 94,552 | |||||||
Home equity | 17,548 | 18,907 | |||||||
Total loans pledged to FHLB | $ | 436,082 | $ | 329,539 | |||||
Allowance_For_Loan_Losses_Tabl
Allowance For Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | ||||||||||||||||||||||||||||
The following tables present the credit risk profile by internally assigned risk rating category at the periods indicated. | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Adversely Classified | Not Adversely Classified | Gross Loans | ||||||||||||||||||||||||||
Substandard | Doubtful | Loss | |||||||||||||||||||||||||||
Commercial real estate | $ | 13,545 | $ | 1,266 | $ | — | $ | 805,488 | $ | 820,299 | |||||||||||||||||||
Commercial and industrial | 7,908 | 51 | 236 | 348,861 | 357,056 | ||||||||||||||||||||||||
Commercial construction | 3,358 | — | — | 129,149 | 132,507 | ||||||||||||||||||||||||
Residential | 1,012 | — | — | 131,709 | 132,721 | ||||||||||||||||||||||||
Home Equity | 500 | — | — | 73,854 | 74,354 | ||||||||||||||||||||||||
Consumer | 40 | — | — | 8,603 | 8,643 | ||||||||||||||||||||||||
Total gross loans | $ | 26,363 | $ | 1,317 | $ | 236 | $ | 1,497,664 | $ | 1,525,580 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Adversely Classified | Not Adversely Classified | Gross Loans | ||||||||||||||||||||||||||
Substandard | Doubtful | Loss | |||||||||||||||||||||||||||
Commercial real estate | $ | 21,999 | $ | — | $ | — | $ | 688,266 | $ | 710,265 | |||||||||||||||||||
Commercial and industrial | 5,993 | 1,460 | 48 | 321,078 | 328,579 | ||||||||||||||||||||||||
Commercial construction | 2,986 | — | — | 118,381 | 121,367 | ||||||||||||||||||||||||
Residential | 1,254 | — | — | 119,024 | 120,278 | ||||||||||||||||||||||||
Home Equity | 661 | — | — | 74,987 | 75,648 | ||||||||||||||||||||||||
Consumer | 34 | — | — | 4,877 | 4,911 | ||||||||||||||||||||||||
Total gross loans | $ | 32,927 | $ | 1,460 | $ | 48 | $ | 1,326,613 | $ | 1,361,048 | |||||||||||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||||||
The following table presents an age analysis of past due loans as of December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Non-accrual Loans | Total Past Due Loans | Current Loans | Gross Loans | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | ||||||||||||||||||||||||||||
Commercial real estate | $ | 1,142 | $ | 1,575 | $ | 10,561 | $ | 13,278 | $ | 807,021 | $ | 820,299 | |||||||||||||||||
Commercial and industrial | 680 | 908 | 5,743 | 7,331 | 349,725 | 357,056 | |||||||||||||||||||||||
Commercial construction | 196 | — | 1,118 | 1,314 | 131,193 | 132,507 | |||||||||||||||||||||||
Residential | 1,110 | 127 | 633 | 1,870 | 130,851 | 132,721 | |||||||||||||||||||||||
Home Equity | 211 | 10 | 281 | 502 | 73,852 | 74,354 | |||||||||||||||||||||||
Consumer | 106 | 18 | 10 | 134 | 8,509 | 8,643 | |||||||||||||||||||||||
Total gross loans | $ | 3,445 | $ | 2,638 | $ | 18,346 | $ | 24,429 | $ | 1,501,151 | $ | 1,525,580 | |||||||||||||||||
The following table presents an age analysis of past due loans as of December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Non-accrual Loans | Total Past Due Loans | Current Loans | Gross Loans | |||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | ||||||||||||||||||||||||||||
Commercial real estate | $ | 1,560 | $ | 551 | $ | 12,608 | $ | 14,719 | $ | 695,546 | $ | 710,265 | |||||||||||||||||
Commercial and industrial | 472 | 55 | 6,993 | 7,520 | 321,059 | 328,579 | |||||||||||||||||||||||
Commercial construction | — | — | 743 | 743 | 120,624 | 121,367 | |||||||||||||||||||||||
Residential | 42 | 558 | 862 | 1,462 | 118,816 | 120,278 | |||||||||||||||||||||||
Home Equity | 73 | 9 | 390 | 472 | 75,176 | 75,648 | |||||||||||||||||||||||
Consumer | 42 | 11 | 5 | 58 | 4,853 | 4,911 | |||||||||||||||||||||||
Total gross loans | $ | 2,189 | $ | 1,184 | $ | 21,601 | $ | 24,974 | $ | 1,336,074 | $ | 1,361,048 | |||||||||||||||||
Schedule of Interest Lost on Nonaccrual Loans | ' | ||||||||||||||||||||||||||||
The reduction in interest income for the years ended December 31, associated with non-accruing loans is summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Income in accordance with original loan terms | $ | 1,171 | $ | 1,490 | $ | 1,545 | |||||||||||||||||||||||
Less income recognized | 680 | 380 | 140 | ||||||||||||||||||||||||||
Reduction in interest income | $ | 491 | $ | 1,110 | $ | 1,405 | |||||||||||||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||||||
The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated as of December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid contractual principal balance | Total recorded investment in impaired loans | Recorded investment with no allowance | Recorded investment with allowance | Related specific allowance | ||||||||||||||||||||||||
Commercial real estate | $ | 17,420 | $ | 15,139 | $ | 12,105 | $ | 3,034 | $ | 507 | |||||||||||||||||||
Commercial and industrial | 12,220 | 10,579 | 4,902 | 5,677 | 2,901 | ||||||||||||||||||||||||
Commercial construction | 3,464 | 3,358 | 1,426 | 1,932 | 830 | ||||||||||||||||||||||||
Residential | 673 | 619 | 365 | 254 | 107 | ||||||||||||||||||||||||
Home Equity | 110 | 108 | — | 108 | 31 | ||||||||||||||||||||||||
Consumer | 23 | 23 | — | 23 | 23 | ||||||||||||||||||||||||
Total | $ | 33,910 | $ | 29,826 | $ | 18,798 | $ | 11,028 | $ | 4,399 | |||||||||||||||||||
The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated as of December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid contractual principal balance | Total recorded investment in impaired loans | Recorded investment with no allowance | Recorded investment with allowance | Related specific allowance | ||||||||||||||||||||||||
Commercial real estate | $ | 24,760 | $ | 22,859 | $ | 18,735 | $ | 4,124 | $ | 1,041 | |||||||||||||||||||
Commercial and industrial | 12,184 | 10,831 | 6,016 | 4,815 | 2,186 | ||||||||||||||||||||||||
Commercial construction | 3,091 | 2,932 | 995 | 1,937 | 753 | ||||||||||||||||||||||||
Residential | 687 | 648 | 390 | 258 | 65 | ||||||||||||||||||||||||
Home Equity | 110 | 109 | — | 109 | 87 | ||||||||||||||||||||||||
Consumer | 14 | 14 | — | 14 | 14 | ||||||||||||||||||||||||
Total | $ | 40,846 | $ | 37,393 | $ | 26,136 | $ | 11,257 | $ | 4,146 | |||||||||||||||||||
The following table presents the average recorded investment in impaired loans and the related interest recognized during the year ends indicated. | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||
(Dollars in thousands) | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | Average recorded investment | Interest income recognized | |||||||||||||||||||||||
Commercial real estate | $ | 17,673 | $ | 237 | $ | 23,629 | $ | 560 | $ | 27,404 | $ | 698 | |||||||||||||||||
Commercial and industrial | 9,444 | 92 | 9,846 | 116 | 9,571 | 61 | |||||||||||||||||||||||
Commercial construction | 3,227 | 77 | 2,377 | 65 | 3,880 | 83 | |||||||||||||||||||||||
Residential | 745 | 9 | 753 | 11 | 621 | 2 | |||||||||||||||||||||||
Home Equity | 120 | — | 54 | — | — | 2 | |||||||||||||||||||||||
Consumer | 18 | 2 | 16 | 1 | 19 | 3 | |||||||||||||||||||||||
Total | $ | 31,227 | $ | 417 | $ | 36,675 | $ | 753 | $ | 41,495 | $ | 849 | |||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||||||
The following tables present certain information regarding loan modifications classified as troubled debt restructures. | |||||||||||||||||||||||||||||
Troubled debt restructure agreements entered into during the year ended December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of restructurings | Pre-modification outstanding recorded investment | Post-modification outstanding recorded investment | ||||||||||||||||||||||||||
Commercial real estate | 2 | $ | 724 | $ | 673 | ||||||||||||||||||||||||
Commercial and industrial | 5 | 1,903 | 1,818 | ||||||||||||||||||||||||||
Commercial construction | 1 | 769 | 769 | ||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||||||||||
Consumer | 1 | 4 | 4 | ||||||||||||||||||||||||||
Total | 9 | $ | 3,400 | $ | 3,264 | ||||||||||||||||||||||||
Loans modified as troubled debt restructuring within the previous twelve months for which there was a subsequent payment default during the year ended December 31, 2013. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post-modification outstanding recorded investment | |||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 1 | 62 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 1 | $ | 62 | ||||||||||||||||||||||||||
Troubled debt restructure agreements entered into during the year ended December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of restructurings | Pre-modification outstanding recorded investment | Post-modification outstanding recorded investment | ||||||||||||||||||||||||||
Commercial real estate | 3 | $ | 423 | $ | 388 | ||||||||||||||||||||||||
Commercial and industrial | 7 | 2,980 | 2,975 | ||||||||||||||||||||||||||
Commercial construction | 3 | 802 | 746 | ||||||||||||||||||||||||||
Residential | 2 | 386 | 383 | ||||||||||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 15 | $ | 4,591 | $ | 4,492 | ||||||||||||||||||||||||
Loans modified as troubled debt restructuring within the previous twelve months for which there was a subsequent payment default during the year ended December 31, 2012. | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post-modification outstanding recorded investment | |||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 2 | 10 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | 1 | 125 | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 3 | $ | 135 | ||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||||||
Changes in the allowance for loan losses for the years ended December 31, are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Balance at beginning of year | $ | 24,254 | $ | 23,160 | $ | 19,415 | |||||||||||||||||||||||
Provision charged to operations | 3,279 | 2,750 | 5,197 | ||||||||||||||||||||||||||
Loan recoveries | 415 | 519 | 294 | ||||||||||||||||||||||||||
Less: Loans charged-off | 981 | 2,175 | 1,746 | ||||||||||||||||||||||||||
Balance at end of year | $ | 26,967 | $ | 24,254 | $ | 23,160 | |||||||||||||||||||||||
Changes in the allowance for loan losses by segment for the year ended December 31, 2013, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real Estate | Cmml and Industrial | Cmml Constr | Resid. Mortgage | Home Equity | Cnsmr | Total | ||||||||||||||||||||||
Beg. Balance, 12/31/12 | $ | 11,793 | $ | 7,297 | $ | 3,456 | $ | 854 | $ | 728 | $ | 126 | $ | 24,254 | |||||||||||||||
Provision | 1,491 | 1,658 | (41 | ) | 111 | (52 | ) | 112 | 3,279 | ||||||||||||||||||||
Recoveries | 96 | 80 | 78 | 128 | 21 | 12 | 415 | ||||||||||||||||||||||
Less: Charge offs | 206 | 670 | — | 36 | 44 | 25 | 981 | ||||||||||||||||||||||
Ending Balance, 12/31/13 | $ | 13,174 | $ | 8,365 | $ | 3,493 | $ | 1,057 | $ | 653 | $ | 225 | $ | 26,967 | |||||||||||||||
Ending allowance balance allotted to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 507 | $ | 2,901 | $ | 830 | $ | 107 | $ | 31 | $ | 23 | $ | 4,399 | |||||||||||||||
Loans collectively evaluated for impairment | $ | 12,667 | $ | 5,464 | $ | 2,663 | $ | 950 | $ | 622 | $ | 202 | $ | 22,568 | |||||||||||||||
Changes in the allowance for loan losses by segment for the year ended December 31, 2012, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real Estate | Cmml and Industrial | Cmml Constr | Resid. Mortgage | Home Equity | Cnsmr | Total | ||||||||||||||||||||||
Beg. Balance, 12/31/11 | $ | 10,855 | $ | 7,568 | $ | 3,013 | $ | 995 | $ | 615 | $ | 114 | $ | 23,160 | |||||||||||||||
Provision | 1,185 | 656 | 597 | 34 | 251 | 27 | 2,750 | ||||||||||||||||||||||
Recoveries | 29 | 461 | 2 | 10 | 2 | 15 | 519 | ||||||||||||||||||||||
Less: Charge offs | 276 | 1,388 | 156 | 185 | 140 | 30 | 2,175 | ||||||||||||||||||||||
Ending Balance, 12/31/12 | $ | 11,793 | $ | 7,297 | $ | 3,456 | $ | 854 | $ | 728 | $ | 126 | $ | 24,254 | |||||||||||||||
Ending allowance balance allotted to: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,041 | $ | 2,186 | $ | 753 | $ | 65 | $ | 87 | $ | 14 | $ | 4,146 | |||||||||||||||
Loans collectively evaluated for impairment | $ | 10,752 | $ | 5,111 | $ | 2,703 | $ | 789 | $ | 641 | $ | 112 | $ | 20,108 | |||||||||||||||
Financing Receivables by Evaluation Method for Impairment | ' | ||||||||||||||||||||||||||||
The balances of loans as of December 31, 2013 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually evaluated for impairment | Loans collectively evaluated for impairment | Total Loans | ||||||||||||||||||||||||||
Commercial real estate | $ | 15,139 | $ | 805,160 | $ | 820,299 | |||||||||||||||||||||||
Commercial and industrial | 10,579 | 346,477 | 357,056 | ||||||||||||||||||||||||||
Commercial construction | 3,358 | 129,149 | 132,507 | ||||||||||||||||||||||||||
Residential | 619 | 132,102 | 132,721 | ||||||||||||||||||||||||||
Home Equity | 108 | 74,246 | 74,354 | ||||||||||||||||||||||||||
Consumer | 23 | 8,620 | 8,643 | ||||||||||||||||||||||||||
Deferred Fees | — | (1,524 | ) | (1,524 | ) | ||||||||||||||||||||||||
Total loans | $ | 29,826 | $ | 1,494,230 | $ | 1,524,056 | |||||||||||||||||||||||
The balances of loans as of December 31, 2012 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually evaluated for impairment | Loans collectively evaluated for impairment | Total Loans | ||||||||||||||||||||||||||
Commercial real estate | $ | 22,859 | $ | 687,406 | $ | 710,265 | |||||||||||||||||||||||
Commercial and industrial | 10,831 | 317,748 | 328,579 | ||||||||||||||||||||||||||
Commercial construction | 2,932 | 118,435 | 121,367 | ||||||||||||||||||||||||||
Residential | 648 | 119,630 | 120,278 | ||||||||||||||||||||||||||
Home Equity | 109 | 75,539 | 75,648 | ||||||||||||||||||||||||||
Consumer | 14 | 4,897 | 4,911 | ||||||||||||||||||||||||||
Deferred Fees | — | (1,393 | ) | (1,393 | ) | ||||||||||||||||||||||||
Total loans | $ | 37,393 | $ | 1,322,262 | $ | 1,359,655 | |||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Premises and Equipment | ' | ||||||||
Premises and equipment at December 31 are summarized as follows: | |||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||
Land | $ | 4,594 | $ | 4,594 | |||||
Buildings, renovations and leasehold improvements | 30,516 | 28,283 | |||||||
Computer software and equipment | 8,088 | 7,560 | |||||||
Furniture, fixtures and equipment | 14,239 | 12,254 | |||||||
Total premises and equipment, before accumulated depreciation | 57,437 | 52,691 | |||||||
Less accumulated depreciation | (27,546 | ) | (25,485 | ) | |||||
Total premises and equipment, net of accumulated depreciation | $ | 29,891 | $ | 27,206 | |||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | ||||||||
At December 31, 2013, minimum lease payments for these operating leases were as follows: | |||||||||
(Dollars in thousands) | |||||||||
Payable in: | |||||||||
2014 | $ | 1,087 | |||||||
2015 | 882 | ||||||||
2016 | 911 | ||||||||
2017 | 908 | ||||||||
2018 | 747 | ||||||||
Thereafter | 3,842 | ||||||||
Total minimum lease payments | $ | 8,377 | |||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Deposits [Abstract] | ' | ||||||||||||
Schedule of Deposit Liabilities | ' | ||||||||||||
Deposits at December 31 are summarized as follows: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||
Non-interest demand deposits | $ | 435,465 | $ | 386,643 | |||||||||
Interest bearing checking | 222,837 | 210,564 | |||||||||||
Savings | 150,215 | 154,680 | |||||||||||
Money market | 575,825 | 491,942 | |||||||||||
Certificates of deposit less than $100,000 | 95,530 | 106,904 | |||||||||||
Certificates of deposit of $100,000 or more | 104,553 | 121,262 | |||||||||||
Total non-brokered deposits (1) | 1,584,425 | 1,471,995 | |||||||||||
Brokered deposits (2) | 51,567 | 3,032 | |||||||||||
Total deposits | $ | 1,635,992 | $ | 1,475,027 | |||||||||
(1) Includes reciprocal money market deposits and CDs received from participating banks in nationwide networks as a result of our customers electing to participate in programs to obtain full FDIC insurance. Essentially, the equivalent of the original deposit comes back to the Company as non-brokered deposits within the appropriate category under total deposits on the balance sheet. | |||||||||||||
(2) Primarily brokered CDs under $100,000. | |||||||||||||
Schedule of Maturities of Time Deposits | ' | ||||||||||||
The following table shows the scheduled maturities of certificates of deposit (including brokered deposits with average maturities of 5 years) with balances less than $100,000 and greater than $100,000 at December 31, 2013: | |||||||||||||
(Dollars in thousands) | Less | $100,000 | Total | ||||||||||
than | and | ||||||||||||
$100,000 | Greater | ||||||||||||
Due in less than twelve months | $ | 75,065 | $ | 83,296 | $ | 158,361 | |||||||
Due in over one year through two years | 14,137 | 12,806 | 26,943 | ||||||||||
Due in over two years through three years | 5,213 | 9,085 | 14,298 | ||||||||||
Due in over three years through four years | 17,954 | 1,399 | 19,353 | ||||||||||
Due in over four years through five years | 16,577 | — | 16,577 | ||||||||||
Due in over five years | 16,118 | — | 16,118 | ||||||||||
Total certificates of deposit | $ | 145,064 | $ | 106,586 | $ | 251,650 | |||||||
Borrowed_Funds_and_Debentures_
Borrowed Funds and Debentures (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Schedule of Borrowed Funds and Debentures | ' | |||||||||||||||||||||
Borrowed funds and debentures outstanding at December 31 are summarized as follows: | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | Amount | Average | Amount | Average | Amount | Average | ||||||||||||||||
Rate | Rate | Rate | ||||||||||||||||||||
Borrowed funds | 36,534 | 0.3 | % | 26,540 | 0.44 | % | 4,494 | 1.83 | % | |||||||||||||
Junior subordinated debentures | 10,825 | 10.88 | % | 10,825 | 10.88 | % | 10,825 | 10.88 | % | |||||||||||||
Total borrowed funds and debentures | $ | 47,359 | 2.72 | % | $ | 37,365 | 3.46 | % | $ | 15,319 | 8.22 | % | ||||||||||
Schedule of Average Balances and Rates for Securities Sold Under Agreements to Repurchase and Borrowed Funds | ' | |||||||||||||||||||||
The following table summarizes the average balance and average cost of borrowed funds for the years ended December 31, | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||
(Dollars in thousands) | Average | Average | Average | Average | Average | Average | ||||||||||||||||
Balance | Cost | Balance | Cost | Balance | Cost | |||||||||||||||||
FHLB advances | $ | 24,385 | 0.39 | % | $ | 3,552 | 1.5 | % | $ | 4,684 | 1.82 | % | ||||||||||
Other borrowings | 14 | 0.46 | % | 89 | 0.27 | % | 170 | 0.25 | % | |||||||||||||
Repurchase agreements | — | — | % | — | — | % | 373 | 0.31 | % | |||||||||||||
Total borrowed funds | $ | 24,399 | 0.39 | % | $ | 3,641 | 1.47 | % | $ | 5,227 | 1.66 | % | ||||||||||
Commitments_Contingencies_and_1
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule of Financial Instruments with Off-Balance Sheet Risk | ' | ||||||||
Financial instruments with off-balance sheet credit risk at December 31, 2013 and 2012 are as follows: | |||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||
Commitments to originate loans | $ | 34,182 | $ | 46,408 | |||||
Commitments to originate residential mortgages loans for sale | 2,007 | 9,325 | |||||||
Commitments to sell residential mortgage loans | 3,262 | 17,882 | |||||||
Standby letters of credit | 17,116 | 13,547 | |||||||
Unadvanced portions of commercial real estate loans | 11,640 | 8,445 | |||||||
Unadvanced portions of commercial loans and lines | 261,356 | 233,274 | |||||||
Unadvanced portions of construction loans (commercial & residential) | 131,183 | 78,428 | |||||||
Unadvanced portions of home equity lines | 60,281 | 57,511 | |||||||
Unadvanced portions of consumer loans | 3,056 | 3,059 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | ' | |||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios are presented in the following tables. | ||||||||||||||||||||||
Actual | Minimum Capital | Minimum Capital | ||||||||||||||||||||
for Capital | To Be | |||||||||||||||||||||
Adequacy | Well | |||||||||||||||||||||
Purposes | Capitalized* | |||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
The Company | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 174,145 | 11.35 | % | $ | 122,752 | 8 | % | $ | 153,440 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 153,425 | 10 | % | 61,376 | 4 | % | 92,064 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets)* | 153,425 | 8.48 | % | 72,375 | 4 | % | N/A | N/A | ||||||||||||||
The Bank | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 173,126 | 11.28 | % | $ | 122,744 | 8 | % | $ | 153,430 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 152,408 | 9.93 | % | 61,372 | 4 | % | 92,058 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets) | 152,408 | 8.43 | % | 72,343 | 4 | % | 90,428 | 5 | % | |||||||||||||
____________________ | ||||||||||||||||||||||
* For the Bank to qualify as “well capitalized”, it must maintain a leverage capital ratio (Tier 1 capital to average assets) of at least 5%. This requirement does not apply to the Company. | ||||||||||||||||||||||
Actual | Minimum Capital | Minimum Capital | ||||||||||||||||||||
for Capital | To Be | |||||||||||||||||||||
Adequacy | Well | |||||||||||||||||||||
Purposes | Capitalized* | |||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
The Company | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 157,716 | 11.46 | % | $ | 110,079 | 8 | % | $ | 137,599 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 139,714 | 10.15 | % | 55,040 | 4 | % | 82,560 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets)* | 139,714 | 8.64 | % | 64,716 | 4 | % | N/A | N/A | ||||||||||||||
The Bank | ||||||||||||||||||||||
Total Capital (to risk weighted assets) | $ | 156,883 | 11.4 | % | $ | 110,075 | 8 | % | $ | 137,594 | 10 | % | ||||||||||
Tier 1 Capital (to risk weighted assets) | 138,882 | 10.09 | % | 55,037 | 4 | % | 82,556 | 6 | % | |||||||||||||
Tier 1 Capital (to average assets) | 138,882 | 8.59 | % | 64,684 | 4 | % | 80,855 | 5 | % | |||||||||||||
_____________________ | ||||||||||||||||||||||
* For the Bank to qualify as “well capitalized”, it must maintain a leverage capital ratio (Tier 1 capital to average assets) of at least 5%. This requirement does not apply to the Company. |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Retirement Plan | ' | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||
Schedule of Expected Benefit Payments | ' | ||||||||||||
Benefits expected to be paid in each of the next five years and in the aggregate five years thereafter: | |||||||||||||
(Dollars in thousands) | |||||||||||||
2014 | $ | 276 | |||||||||||
2015 | 276 | ||||||||||||
2016 | 276 | ||||||||||||
2017 | 276 | ||||||||||||
2018 | 276 | ||||||||||||
2019-2023 | 1,379 | ||||||||||||
Schedule of Changes in Projected Benefit Obligations | ' | ||||||||||||
The following table provides a reconciliation of the changes in the supplemental retirement benefit obligation and the net periodic benefit cost for the years ended December 31: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Reconciliation of benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 3,181 | $ | 3,203 | $ | 3,135 | |||||||
Interest cost | 157 | 134 | 171 | ||||||||||
Actuarial loss (gain) (1) | (173 | ) | 120 | 173 | |||||||||
Benefits paid | (276 | ) | (276 | ) | (276 | ) | |||||||
Benefit obligation at end of year | $ | 2,889 | $ | 3,181 | $ | 3,203 | |||||||
Funded status: | |||||||||||||
Accrued liability as of December 31 | $ | (2,889 | ) | $ | (3,181 | ) | $ | (3,203 | ) | ||||
Discount rate used for benefit obligation | 5 | % | 4.25 | % | 4.75 | % | |||||||
Net periodic benefit cost: | |||||||||||||
Interest cost | 157 | 134 | 171 | ||||||||||
Actuarial loss (gain) (1) | (173 | ) | 120 | 173 | |||||||||
Net periodic benefit costs | $ | (16 | ) | $ | 254 | $ | 344 | ||||||
-1 | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. | ||||||||||||
Supplemental Life Insurance Benefit [Member] | ' | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||
Schedule of Changes in Projected Benefit Obligations | ' | ||||||||||||
The following table provides a reconciliation of the changes in the supplemental life insurance plan obligation and the net periodic benefit cost for the years ended December 31: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Reconciliation of benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 1,664 | $ | 1,414 | $ | 1,317 | |||||||
Service cost | 2 | 8 | 15 | ||||||||||
Interest cost | 74 | 67 | 72 | ||||||||||
Actuarial loss (gain) (1) | (164 | ) | 175 | 10 | |||||||||
Benefit obligation at end of year | $ | 1,576 | $ | 1,664 | $ | 1,414 | |||||||
Funded status: | |||||||||||||
Accrued liability as of December 31 | $ | (1,576 | ) | $ | (1,664 | ) | $ | (1,414 | ) | ||||
Discount rate used for benefit obligation | 5 | % | 4.25 | % | 4.75 | % | |||||||
Net periodic benefit cost: | |||||||||||||
Service cost | $ | 2 | $ | 8 | $ | 15 | |||||||
Interest cost | 74 | 67 | 72 | ||||||||||
Actuarial loss (gain) (1) | (164 | ) | 175 | 10 | |||||||||
Total net period (benefit) cost | $ | (88 | ) | $ | 250 | $ | 97 | ||||||
(1) | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | |||||||||||||
The table below provides a summary of the options granted, fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the years indicated. | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Options granted | 47,684 | 68,750 | 83,075 | |||||||||||
Average assumptions used in the model: | ||||||||||||||
Expected volatility | 48 | % | 50 | % | 45 | % | ||||||||
Expected dividend yield | 2.96 | % | 2.89 | % | 2.91 | % | ||||||||
Expected life in years | 7 | 5.5 | 5.5 | |||||||||||
Risk-free interest rate | 1.35 | % | 1.37 | % | 2.17 | % | ||||||||
Market price on date of grant | $ | 16.61 | $ | 16.25 | $ | 14.88 | ||||||||
Per share weighted average fair value | $ | 6.66 | $ | 6.33 | $ | 5.28 | ||||||||
Fair Value as a percentage of market value at grant date | 40 | % | 39 | % | 35 | % | ||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||||
Stock option transactions during the year ended December 31, 2013 are summarized as follows: | ||||||||||||||
(Dollars in thousands, except per share data) | Options | Weighted Average Exercise | Weighted Average Remaining Life in Years | Aggregate | ||||||||||
Price Per Share | Intrinsic | |||||||||||||
Value | ||||||||||||||
Outstanding December 31, 2012 | 649,211 | $ | 14.28 | 2.6 | $ | 1,462 | ||||||||
Granted | 47,684 | 16.61 | ||||||||||||
Exercised | 273,529 | 14.63 | ||||||||||||
Forfeited/Expired | 6,014 | 13.31 | ||||||||||||
Outstanding December 31, 2013 | 417,352 | $ | 14.32 | 3.5 | $ | 2,857 | ||||||||
Vested and Exercisable at December 31, 2013 | 265,252 | $ | 13.59 | 2.1 | $ | 2,012 | ||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | |||||||||||||
The following table sets forth a summary of the activity for the Company’s restricted stock awards. | ||||||||||||||
(Dollars in thousands, except per share data) | Restricted | Weighted Average Grant Price Per Share | Weighted Average Remaining | Aggregate | ||||||||||
Stock | Life In Years | Intrinsic | ||||||||||||
Value | ||||||||||||||
Unvested at December 31, 2012 | 154,186 | $ | 14.58 | 2.3 | $ | 2,547 | ||||||||
Granted | 80,541 | 16.43 | ||||||||||||
Vested/released | 62,053 | 13.65 | ||||||||||||
Forfeited | 2,309 | 15.72 | ||||||||||||
Unvested at December 31, 2013 | 170,365 | $ | 15.77 | 2.2 | $ | 3,607 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||||||
The components of income tax expense for the years ended December 31 were calculated using the asset and liability method as follows: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Current tax expense: | |||||||||||||
Federal | $ | 5,492 | $ | 5,368 | $ | 5,501 | |||||||
State | 1,642 | 1,605 | 1,699 | ||||||||||
Total current tax expense | 7,134 | 6,973 | 7,200 | ||||||||||
Deferred tax (benefit)/ expense: | |||||||||||||
Federal | (100 | ) | (487 | ) | (1,602 | ) | |||||||
State | (83 | ) | (138 | ) | (437 | ) | |||||||
Total deferred tax benefit | (183 | ) | (625 | ) | (2,039 | ) | |||||||
Total income tax expense | $ | 6,951 | $ | 6,348 | $ | 5,161 | |||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
The provision for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate (34%) to income before taxes as follows: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Computed income tax expense at statutory rate | $ | 6,963 | $ | 6,366 | $ | 5,476 | |||||||
State income taxes, net of federal tax benefit | 1,029 | 968 | 833 | ||||||||||
Tax exempt income, net of disallowance | (988 | ) | (1,020 | ) | (972 | ) | |||||||
Bank-owned life insurance income, net | (156 | ) | (171 | ) | (182 | ) | |||||||
Other | 103 | 205 | 6 | ||||||||||
Total income tax expense | $ | 6,951 | $ | 6,348 | $ | 5,161 | |||||||
Effective income tax rate | 33.9 | % | 33.9 | % | 32 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
At December 31 the tax effects of each type of income and expense item that give rise to deferred taxes are: | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||
Deferred tax asset: | |||||||||||||
Allowance for loan losses | $ | 10,959 | $ | 9,841 | |||||||||
Depreciation | 2,804 | 2,811 | |||||||||||
Other-than-temporary impairment on equity securities | 238 | 419 | |||||||||||
Supplemental employee retirement plans | 1,174 | 1,291 | |||||||||||
Non-accrual interest | 1,514 | 1,465 | |||||||||||
Stock-based compensation expense | 661 | 866 | |||||||||||
Impairment of OREO | — | 203 | |||||||||||
Other | 137 | 114 | |||||||||||
Total | 17,487 | 17,010 | |||||||||||
Deferred tax liability: | |||||||||||||
Goodwill | 1,928 | 1,713 | |||||||||||
Net unrealized gains on investments securities | 1,071 | 2,267 | |||||||||||
Deferred origination costs | 561 | 482 | |||||||||||
Total | 3,560 | 4,462 | |||||||||||
Net deferred tax asset | $ | 13,927 | $ | 12,548 | |||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Schedule of Weighted Average Number of Shares | ' | |||||||||
The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the years ended December 31st: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Basic weighted average common shares outstanding | 9,862,678 | 9,586,783 | 9,401,714 | |||||||
Dilutive shares | 87,931 | 73,893 | 44,011 | |||||||
Diluted weighted average common shares outstanding | 9,950,609 | 9,660,676 | 9,445,725 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ' | ||||||||||||||||||||
The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: | |||||||||||||||||||||
December 31, 2013 | Fair Value Measurements using: | ||||||||||||||||||||
(Dollars in thousands) | Fair Value | (level 1) | (level 2) | (level 3) | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||||||
Fixed income securities | $ | 202,201 | $ | — | $ | 202,201 | $ | — | |||||||||||||
Equity securities | 13,168 | 13,168 | — | — | |||||||||||||||||
FHLB Stock | 4,324 | — | — | 4,324 | |||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||||||
Impaired loans (collateral dependent) | 6,542 | — | — | 6,542 | |||||||||||||||||
Other real estate owned | 114 | — | — | 114 | |||||||||||||||||
December 31, | Fair Value Measurements using: | ||||||||||||||||||||
2012 | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | (level 1) | (level 2) | (level 3) | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||||||
Fixed income securities | $ | 173,796 | $ | — | $ | 173,796 | $ | — | |||||||||||||
Equity securities | 10,668 | 10,668 | — | — | |||||||||||||||||
FHLB Stock | 4,260 | — | — | 4,260 | |||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||||||
Impaired loans (collateral dependent) | 7,110 | — | — | 7,110 | |||||||||||||||||
Other real estate owned | 500 | — | — | 500 | |||||||||||||||||
Quantitative Information About Significant Unobservable Inputs for Fair Value Measurements | ' | ||||||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a recurring and non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of December 31, 2013. | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Unobservable Input Value or Range | |||||||||||||||||
Assets measured on a recurring basis: | |||||||||||||||||||||
FHLB Stock | $4,324 | FHLB Stated Par Value | N/A | N/A | |||||||||||||||||
Assets measured on a non-recurring basis: | |||||||||||||||||||||
Impaired loans (collateral dependent) | $6,542 | Appraisal of collateral | Appraisal adjustments (1) | 5% - 50% | |||||||||||||||||
Other real estate owned | $114 | Appraisal of collateral | Appraisal adjustments (1) | 0% - 30% | |||||||||||||||||
-1 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | ||||||||||||||||||||
The carrying values, estimated fair values and placement in the fair value hierarchy of the Company’s financial instruments(1) for which fair value is only disclosed but not recognized on the balance sheet at the dates indicated are summarized as follows: | |||||||||||||||||||||
December 31, 2013 | Fair value measurement | ||||||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Loans held for sale | $ | 1,255 | $ | 1,255 | $ | — | $ | 1,255 | $ | — | |||||||||||
Loans, net | 1,497,089 | 1,516,809 | — | — | 1,516,809 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Certificates of deposit (including brokered) | 251,650 | 250,045 | — | 250,045 | — | ||||||||||||||||
Borrowed funds | 36,534 | 36,535 | — | 36,535 | — | ||||||||||||||||
Junior subordinated debentures | 10,825 | 11,358 | — | — | 11,358 | ||||||||||||||||
December 31, 2012 | Fair value measurement | ||||||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value | Level 1 inputs | Level 2 Inputs | Level 3 Inputs | ||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Loans held for sale | $ | 8,557 | $ | 8,603 | $ | — | $ | 8,603 | $ | — | |||||||||||
Loans, net | 1,335,401 | 1,355,893 | — | — | 1,355,893 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Certificates of deposit (including brokered) | 231,198 | 231,687 | — | 231,687 | — | ||||||||||||||||
Borrowed funds | 26,540 | 26,553 | — | 26,553 | — | ||||||||||||||||
Junior subordinated debentures | 10,825 | 12,597 | — | — | 12,597 | ||||||||||||||||
(1) Excluded from this table are certain financial instruments that approximated their fair value, as they were short-term in nature or payable on demand. These include cash and cash equivalents, accrued interest receivable, non-term deposit accounts, and accrued interest payable. The respective carrying values of these instruments would all be considered to be classified within Level 1 of their fair value hierarchy. |
Parent_Company_Only_Financial_1
Parent Company Only Financial Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Schedule of Condensed Balance Sheet | ' | ||||||||||||
Balance Sheets | |||||||||||||
December 31, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | |||||||||||
Assets | |||||||||||||
Cash | $ | 729 | $ | 542 | |||||||||
Investment in subsidiaries | 161,580 | 149,963 | |||||||||||
Other assets | 233 | 242 | |||||||||||
Total assets | $ | 162,542 | $ | 150,747 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Liabilities | |||||||||||||
Junior subordinated debentures | $ | 10,825 | $ | 10,825 | |||||||||
Accrued interest payable | 370 | 370 | |||||||||||
Other liabilities | 13 | 3 | |||||||||||
Total liabilities | 11,208 | 11,198 | |||||||||||
Stockholders' equity: | |||||||||||||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | — | — | |||||||||||
Common stock $0.01 par value per share; 20,000,000 shares authorized; 9,992,560 issued and outstanding at December 31, 2013 (including 170,365 shares of unvested participating restricted awards) and 9,676,477 shares issued and outstanding at December 31, 2012 (including 154,186 shares of unvested participating restricted awards) | 100 | 97 | |||||||||||
Additional paid-in capital | 52,936 | 48,194 | |||||||||||
Retained earnings | 96,153 | 87,159 | |||||||||||
Accumulated other comprehensive income | 2,145 | 4,099 | |||||||||||
Total stockholders’ equity | $ | 151,334 | $ | 139,549 | |||||||||
Total liabilities and stockholders’ equity | $ | 162,542 | $ | 150,747 | |||||||||
Schedule of Condensed Income Statement | ' | ||||||||||||
Statements of Income | |||||||||||||
For the years ended December 31, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Equity in undistributed net income of subsidiaries | $ | 13,571 | $ | 10,910 | $ | 9,356 | |||||||
Dividends distributed by subsidiaries | 950 | 2,350 | 3,000 | ||||||||||
Total income | 14,521 | 13,260 | 12,356 | ||||||||||
Interest expense | 1,177 | 1,177 | 1,177 | ||||||||||
Other operating expenses | 225 | 171 | 225 | ||||||||||
Total operating expenses | 1,402 | 1,348 | 1,402 | ||||||||||
Income before income taxes | 13,119 | 11,912 | 10,954 | ||||||||||
Provision for (benefit from) income taxes | (410 | ) | (463 | ) | 10 | ||||||||
Net income | $ | 13,529 | $ | 12,375 | $ | 10,944 | |||||||
Schedule of Condensed Cash Flow Statement | ' | ||||||||||||
Parent Company Only Financial Statements | |||||||||||||
Statements of Cash Flows | |||||||||||||
For the years ended December 31, | |||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2011 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 13,529 | $ | 12,375 | $ | 10,944 | |||||||
Adjustments to reconcile net income to net cash | |||||||||||||
Equity in undistributed net income of subsidiaries | (13,571 | ) | (10,910 | ) | (9,356 | ) | |||||||
Payment from subsidiary bank for stock compensation expense | 1,652 | 1,253 | 1,003 | ||||||||||
Changes in: | |||||||||||||
Other assets | 9 | (145 | ) | 5 | |||||||||
Other liabilities | 10 | (2 | ) | 2 | |||||||||
Net cash provided by operating activities | 1,629 | 2,571 | 2,598 | ||||||||||
Cash flows from financing activities: | |||||||||||||
Cash dividends paid | (4,535 | ) | (4,215 | ) | (3,945 | ) | |||||||
Proceeds from issuance of common stock | 1,239 | 1,274 | 1,254 | ||||||||||
Proceeds from exercise of stock options | 1,829 | 509 | 309 | ||||||||||
Tax benefit from exercise of stock options | 25 | 2 | 4 | ||||||||||
Net cash used in financing activities | (1,442 | ) | (2,430 | ) | (2,378 | ) | |||||||
Net increase in cash and cash equivalents | 187 | 141 | 220 | ||||||||||
Cash and cash equivalents, beginning of year | 542 | 401 | 181 | ||||||||||
Cash and cash equivalents, end of year | $ | 729 | $ | 542 | $ | 401 | |||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
2013 | |||||||||||||||||
(Dollars in thousands, except share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest and dividend income | $ | 17,193 | $ | 17,458 | $ | 17,946 | $ | 18,525 | |||||||||
Interest expense | 1,374 | 1,331 | 1,313 | 1,313 | |||||||||||||
Net interest income | 15,819 | 16,127 | 16,633 | 17,212 | |||||||||||||
Provision for loan losses | 783 | 534 | 583 | 1,379 | |||||||||||||
Net interest income after provision for loan losses | 15,036 | 15,593 | 16,050 | 15,833 | |||||||||||||
Non-interest income | 3,159 | 3,085 | 3,085 | 3,224 | |||||||||||||
Net gains on sales of investment securities | 480 | 468 | 83 | 208 | |||||||||||||
Non-interest expense | 13,454 | 14,461 | 13,781 | 14,128 | |||||||||||||
Income before income taxes | 5,221 | 4,685 | 5,437 | 5,137 | |||||||||||||
Provision for income taxes | 1,788 | 1,606 | 1,904 | 1,653 | |||||||||||||
Net income | $ | 3,433 | $ | 3,079 | $ | 3,533 | $ | 3,484 | |||||||||
Basic earnings per share | $ | 0.35 | $ | 0.31 | $ | 0.36 | $ | 0.35 | |||||||||
Diluted earnings per share | $ | 0.35 | $ | 0.31 | $ | 0.35 | $ | 0.35 | |||||||||
2012 | |||||||||||||||||
(Dollars in thousands, except share data) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest and dividend income | $ | 16,776 | $ | 17,087 | $ | 17,182 | $ | 17,360 | |||||||||
Interest expense | 1,847 | 1,676 | 1,534 | 1,438 | |||||||||||||
Net interest income | 14,929 | 15,411 | 15,648 | 15,922 | |||||||||||||
Provision for loan losses | 300 | 1,050 | 800 | 600 | |||||||||||||
Net interest income after provision for loan losses | 14,629 | 14,361 | 14,848 | 15,322 | |||||||||||||
Non-interest income | 2,927 | 2,840 | 2,947 | 3,225 | |||||||||||||
Net gains on sales of investment securities | 47 | 112 | 38 | 39 | |||||||||||||
Non-interest expense | 12,818 | 12,972 | 13,010 | 13,812 | |||||||||||||
Income before income taxes | 4,785 | 4,341 | 4,823 | 4,774 | |||||||||||||
Provision for income taxes | 1,612 | 1,436 | 1,760 | 1,540 | |||||||||||||
Net income | $ | 3,173 | $ | 2,905 | $ | 3,063 | $ | 3,234 | |||||||||
Basic earnings per share | $ | 0.33 | $ | 0.3 | $ | 0.32 | $ | 0.34 | |||||||||
Diluted earnings per share | $ | 0.33 | $ | 0.3 | $ | 0.32 | $ | 0.33 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2000 | |
segment | branches | ||
branches | |||
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of branches | 22 | ' | ' |
Number of operating segments | 1 | ' | ' |
Bank-owned life insurance | $15,902,000 | $15,443,000 | ' |
Goodwill | 5,656,000 | 5,656,000 | ' |
Number of offices related to the goodwill in acquisition | ' | ' | 2 |
Investment assets under management | $667,300,000 | $592,400,000 | ' |
Minimum | Buildings, renovations, and leasehold improvements | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Minimum | Computer software and equipment | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Minimum | Furniture, fixtures and equipment | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '3 years | ' | ' |
Maximum | Buildings, renovations, and leasehold improvements | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '39 years | ' | ' |
Maximum | Computer software and equipment | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '5 years | ' | ' |
Maximum | Furniture, fixtures and equipment | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Residential | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Early payment default period | 4 | ' | ' |
Lines of Credit and Demand Notes | Minimum | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Period that loan deferred income is amortized | '3 years | ' | ' |
Lines of Credit and Demand Notes | Maximum | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' |
Period that loan deferred income is amortized | '5 years | ' | ' |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Fair Value | $215,369,000 | $184,464,000 | ' | ||
Securities pledged as collateral | 202,200,000 | 173,600,000 | ' | ||
Callable debt securities, amortized cost | 46,700,000 | ' | ' | ||
Callable debt securities, fair value | 47,700,000 | ' | ' | ||
Total fixed income securities | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Amortized cost | 202,192,000 | 169,018,000 | ' | ||
Unrealized gains | 2,146,000 | 4,843,000 | ' | ||
Unrealized losses | 2,137,000 | 65,000 | ' | ||
Fair Value | 202,201,000 | 173,796,000 | ' | ||
Federal agency obligations | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Amortized cost | 55,440,000 | [1] | 65,247,000 | [1] | ' |
Unrealized gains | 146,000 | [1] | 438,000 | [1] | ' |
Unrealized losses | 43,000 | [1] | 0 | [1] | ' |
Fair Value | 55,543,000 | [1] | 65,685,000 | [1] | ' |
Federal Agency mortgage backed securities (MBS) | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Amortized cost | 80,997,000 | [1] | 48,429,000 | [1] | ' |
Unrealized gains | 367,000 | [1] | 1,287,000 | [1] | ' |
Unrealized losses | 1,714,000 | [1] | 42,000 | [1] | ' |
Fair Value | 79,650,000 | [1] | 49,674,000 | [1] | ' |
Collateralized Mortgage Obligations (CMOs) | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Fair Value | 17,400,000 | 23,600,000 | ' | ||
Municipal securities | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Amortized cost | 60,675,000 | 53,437,000 | ' | ||
Unrealized gains | 1,604,000 | 3,103,000 | ' | ||
Unrealized losses | 325,000 | 17,000 | ' | ||
Fair Value | 61,954,000 | 56,523,000 | ' | ||
Tax exempt interest earned on municipal securities | 2,100,000 | 1,900,000 | 1,700,000 | ||
Corporate bonds | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Amortized cost | 5,080,000 | 1,905,000 | ' | ||
Unrealized gains | 29,000 | 15,000 | ' | ||
Unrealized losses | 55,000 | 6,000 | ' | ||
Fair Value | 5,054,000 | 1,914,000 | ' | ||
Equity investments | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Amortized cost | 9,960,000 | 9,080,000 | ' | ||
Unrealized gains | 3,228,000 | 1,622,000 | ' | ||
Unrealized losses | 20,000 | 34,000 | ' | ||
Fair Value | 13,168,000 | 10,668,000 | ' | ||
Percent of portfolio invested in financial services | 14.00% | ' | ' | ||
Total available for sale securities, at fair value | ' | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ' | ||
Amortized cost | 212,152,000 | 178,098,000 | ' | ||
Unrealized gains | 5,374,000 | 6,465,000 | ' | ||
Unrealized losses | 2,157,000 | 99,000 | ' | ||
Fair Value | $215,369,000 | $184,464,000 | ' | ||
[1] | These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae (FNMA), Freddie Mac (FHLMC), Ginnie Mae (GNMA), Federal Farm Credit Bank (FFCB), or one of several Federal Home Loan Banks (FHLBs). All agency MBS/CMO investments owned by the Company are backed by residential mortgages. |
Investments_Continuous_Loss_Po
Investments - Continuous Loss Position (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | investments | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Number of securities in loss position | 73 | ' |
Investments Temporarily Impaired, Less than 12 months, Fair Value | $86,220 | $13,185 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 1,566 | 67 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 9,520 | 453 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 591 | 32 |
Investments Temporarily Impaired, Fair Value | 95,740 | 13,638 |
Investments Temporarily Impaired, Unrealized Losses | 2,157 | 99 |
Federal agency obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments Temporarily Impaired, Less than 12 months, Fair Value | 14,026 | ' |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 43 | ' |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 0 | ' |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 0 | ' |
Investments Temporarily Impaired, Fair Value | 14,026 | ' |
Investments Temporarily Impaired, Unrealized Losses | 43 | ' |
Federal Agency mortgage backed securities (MBS) | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments Temporarily Impaired, Less than 12 months, Fair Value | 56,554 | 9,954 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 1,176 | 42 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 8,457 | 0 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 538 | 0 |
Investments Temporarily Impaired, Fair Value | 65,011 | 9,954 |
Investments Temporarily Impaired, Unrealized Losses | 1,714 | 42 |
Municipal securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments Temporarily Impaired, Less than 12 months, Fair Value | 12,791 | 1,996 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 292 | 17 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 609 | 0 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 33 | 0 |
Investments Temporarily Impaired, Fair Value | 13,400 | 1,996 |
Investments Temporarily Impaired, Unrealized Losses | 325 | 17 |
Corporate bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments Temporarily Impaired, Less than 12 months, Fair Value | 2,100 | 1,063 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 39 | 6 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 433 | 0 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 16 | 0 |
Investments Temporarily Impaired, Fair Value | 2,533 | 1,063 |
Investments Temporarily Impaired, Unrealized Losses | 55 | 6 |
Equity investments | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Investments Temporarily Impaired, Less than 12 months, Fair Value | 749 | 172 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 16 | 2 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 21 | 453 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 4 | 32 |
Investments Temporarily Impaired, Fair Value | 770 | 625 |
Investments Temporarily Impaired, Unrealized Losses | $20 | $34 |
Investments_Maturities_Details
Investments - Maturities (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Total fixed income securities | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | $13,379 |
Amortized Cost, Within One Year, Yield | 1.12% |
Fair Value, Within One Year | 13,439 |
Amortized Cost Basis, After One, But Within Five Years | 69,194 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 1.49% |
Fair Value, After One, But Within Five Years | 69,864 |
Amortized Cost, After Five, But Within Ten Years | 43,357 |
Amortized Cost, After Five, But Within Ten Years, Yield | 3.93% |
Fair Value, After Five, But Within Ten Years | 43,996 |
Amortized Cost Basis, After Ten Years | 76,262 |
Amortized Cost Basis, After Ten Years, Yield | 2.49% |
Fair Value, After Ten Years | 74,902 |
Federal agency obligations | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 10,030 |
Amortized Cost, Within One Year, Yield | 0.82% |
Amortized Cost Basis, After One, But Within Five Years | 42,443 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 0.78% |
Amortized Cost, After Five, But Within Ten Years | 2,967 |
Amortized Cost, After Five, But Within Ten Years, Yield | 1.97% |
Amortized Cost Basis, After Ten Years | 0 |
Amortized Cost Basis, After Ten Years, Yield | 0.00% |
MBS | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 0 |
Amortized Cost, Within One Year, Yield | 0.00% |
Amortized Cost Basis, After One, But Within Five Years | 3,341 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.45% |
Amortized Cost, After Five, But Within Ten Years | 7,562 |
Amortized Cost, After Five, But Within Ten Years, Yield | 3.02% |
Amortized Cost Basis, After Ten Years | 70,094 |
Amortized Cost Basis, After Ten Years, Yield | 2.14% |
Municipal securities | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 3,349 |
Amortized Cost, Within One Year, Yield | 2.04% |
Amortized Cost Basis, After One, But Within Five Years | 20,023 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.83% |
Amortized Cost, After Five, But Within Ten Years | 31,135 |
Amortized Cost, After Five, But Within Ten Years, Yield | 4.40% |
Amortized Cost Basis, After Ten Years | 6,168 |
Amortized Cost Basis, After Ten Years, Yield | 6.42% |
Corporate bonds | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 0 |
Amortized Cost, Within One Year, Yield | 0.00% |
Amortized Cost Basis, After One, But Within Five Years | 3,387 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 1.54% |
Amortized Cost, After Five, But Within Ten Years | 1,693 |
Amortized Cost, After Five, But Within Ten Years, Yield | 2.68% |
Amortized Cost Basis, After Ten Years | $0 |
Amortized Cost Basis, After Ten Years, Yield | 0.00% |
Investments_Sales_Details
Investments - Sales (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Amortized cost of investments sold | $8,325 | $3,309 | $10,553 |
Gross realized gains on sales | 1,243 | 241 | 791 |
Gross realized losses on sales | -4 | -5 | 0 |
Total proceeds from sales of investments | $9,564 | $3,545 | $11,344 |
Loans_Balance_by_Class_of_Loan
Loans - Balance by Class of Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | $1,525,580 | $1,361,048 | ' | ' |
Deferred loan origination fees, net | -1,524 | -1,393 | ' | ' |
Total loans | 1,524,056 | 1,359,655 | ' | ' |
Allowance for loan losses | -26,967 | -24,254 | -23,160 | -19,415 |
Net loans | 1,497,089 | 1,335,401 | ' | ' |
Commercial real estate | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | 820,299 | 710,265 | ' | ' |
Allowance for loan losses | -13,174 | -11,793 | -10,855 | ' |
Commercial construction | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | 132,507 | 121,367 | ' | ' |
Allowance for loan losses | -3,493 | -3,456 | -3,013 | ' |
Residential | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | 132,721 | 120,278 | ' | ' |
Allowance for loan losses | -1,057 | -854 | -995 | ' |
Real Estate Loans | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | 1,085,527 | 951,910 | ' | ' |
Commercial and industrial | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | 357,056 | 328,579 | ' | ' |
Allowance for loan losses | -8,365 | -7,297 | -7,568 | ' |
Home Equity | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | 74,354 | 75,648 | ' | ' |
Allowance for loan losses | -653 | -728 | -615 | ' |
Consumer | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' |
Gross loans | 8,643 | 4,911 | ' | ' |
Allowance for loan losses | ($225) | ($126) | ($114) | ' |
Loans_Loan_Categories_Narrativ
Loans - Loan Categories Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Outstanding loan balances to related parties | $12,100,000 | $12,400,000 | ' |
Unadvanced lines of credit available to related parties | 4,100,000 | 2,700,000 | ' |
New loans and net increases to loan balances to related parties during period | 654,000 | ' | ' |
Principal paydowns on related party loans | 988,000 | ' | ' |
Commercial real estate | Minimum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '15 years | ' | ' |
Commercial real estate | Maximum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '25 years | ' | ' |
Commercial and industrial | Minimum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '1 year | ' | ' |
Commercial and industrial | Maximum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '7 years | ' | ' |
Commercial construction | Minimum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '1 year | ' | ' |
Commercial construction | Maximum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '3 years | ' | ' |
Commercial | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Participation loans amount | 34,500,000 | 28,600,000 | ' |
Participations loans sold that are still serviced | 52,100,000 | 53,600,000 | ' |
Tax exempt interest income on qualified commercial loans | 1,300,000 | 1,400,000 | 1,200,000 |
Average tax exempt loan balances | 31,100,000 | 31,600,000 | ' |
Residential | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Early payment default period | 4 | ' | ' |
Amount of loans serviced for others | $20,600,000 | $22,200,000 | ' |
Residential | Maximum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '30 years | ' | ' |
Adjustable rate mortgage | Minimum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Loan-to-value ratio | 80.00% | ' | ' |
Fixed Rate Residential Mortgage | Maximum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Loan-to-value ratio | 97.00% | ' | ' |
Home Equity | Maximum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Loan-to-value ratio | 80.00% | ' | ' |
Home Equity Lines of Credit Financing Receivable [Member] | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Term of interest only payments | '10 years | ' | ' |
Term of principal and interest payments after Interest only term | '15 years | ' | ' |
Home equity loans | Minimum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '3 years | ' | ' |
Period a loan has a fixed rate | '3 years | ' | ' |
Home equity loans | Maximum | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' |
Repayment period, term of loan | '15 years | ' | ' |
Period a loan has a fixed rate | '15 years | ' | ' |
Loans_Loans_Serving_as_Collate
Loans - Loans Serving as Collateral (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | $436,082 | $329,539 |
Commercial real estate | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | 320,908 | 216,080 |
Residential | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | 97,626 | 94,552 |
Home Equity | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | $17,548 | $18,907 |
Allowance_For_Loan_Losses_Adve
Allowance For Loan Losses - Adversely Classified Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | $1,525,580 | $1,361,048 |
Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 820,299 | 710,265 |
Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 357,056 | 328,579 |
Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 132,507 | 121,367 |
Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 132,721 | 120,278 |
Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 74,354 | 75,648 |
Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 8,643 | 4,911 |
Not Adversely Classified | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,497,664 | 1,326,613 |
Not Adversely Classified | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 805,488 | 688,266 |
Not Adversely Classified | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 348,861 | 321,078 |
Not Adversely Classified | Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 129,149 | 118,381 |
Not Adversely Classified | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 131,709 | 119,024 |
Not Adversely Classified | Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 73,854 | 74,987 |
Not Adversely Classified | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 8,603 | 4,877 |
Loss | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 236 | 48 |
Loss | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Loss | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 236 | 48 |
Loss | Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Loss | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Loss | Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Loss | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,317 | 1,460 |
Doubtful | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,266 | 0 |
Doubtful | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 51 | 1,460 |
Doubtful | Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Doubtful | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Doubtful | Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Doubtful | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 26,363 | 32,927 |
Substandard | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 13,545 | 21,999 |
Substandard | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 7,908 | 5,993 |
Substandard | Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 3,358 | 2,986 |
Substandard | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,012 | 1,254 |
Substandard | Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 500 | 661 |
Substandard | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | $40 | $34 |
Allowance_For_Loan_Losses_Past
Allowance For Loan Losses - Past Due and Non-Accrual Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Number of days a loan must be paid current before accrual of interest is resumed | '180 days | ' |
Loans 30-59 Days Past Due | $3,445 | $2,189 |
Loans 60-89 Days Past Due | 2,638 | 1,184 |
Non-accrual loans | 18,346 | 21,601 |
Total Past Due Loans | 24,429 | 24,974 |
Current Loans | 1,501,151 | 1,336,074 |
Gross loans | 1,525,580 | 1,361,048 |
The ratio of non-accrual loans to total loans | 1.20% | 1.59% |
Additional funding commitments for loans on non-accrual | 313 | ' |
Commercial real estate | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Loans 30-59 Days Past Due | 1,142 | 1,560 |
Loans 60-89 Days Past Due | 1,575 | 551 |
Non-accrual loans | 10,561 | 12,608 |
Total Past Due Loans | 13,278 | 14,719 |
Current Loans | 807,021 | 695,546 |
Gross loans | 820,299 | 710,265 |
Commercial and industrial | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Loans 30-59 Days Past Due | 680 | 472 |
Loans 60-89 Days Past Due | 908 | 55 |
Non-accrual loans | 5,743 | 6,993 |
Total Past Due Loans | 7,331 | 7,520 |
Current Loans | 349,725 | 321,059 |
Gross loans | 357,056 | 328,579 |
Commercial construction | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Loans 30-59 Days Past Due | 196 | 0 |
Loans 60-89 Days Past Due | 0 | 0 |
Non-accrual loans | 1,118 | 743 |
Total Past Due Loans | 1,314 | 743 |
Current Loans | 131,193 | 120,624 |
Gross loans | 132,507 | 121,367 |
Residential | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Loans 30-59 Days Past Due | 1,110 | 42 |
Loans 60-89 Days Past Due | 127 | 558 |
Non-accrual loans | 633 | 862 |
Total Past Due Loans | 1,870 | 1,462 |
Current Loans | 130,851 | 118,816 |
Gross loans | 132,721 | 120,278 |
Home Equity | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Loans 30-59 Days Past Due | 211 | 73 |
Loans 60-89 Days Past Due | 10 | 9 |
Non-accrual loans | 281 | 390 |
Total Past Due Loans | 502 | 472 |
Current Loans | 73,852 | 75,176 |
Gross loans | 74,354 | 75,648 |
Consumer | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Deposit liabilities reclassified as loans receivable, 90 days or more past due | 3 | 5 |
Loans 30-59 Days Past Due | 106 | 42 |
Loans 60-89 Days Past Due | 18 | 11 |
Non-accrual loans | 10 | 5 |
Total Past Due Loans | 134 | 58 |
Current Loans | 8,509 | 4,853 |
Gross loans | 8,643 | 4,911 |
Not Adversely Classified | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Gross loans | 1,497,664 | 1,326,613 |
Non-accrual loans not adversely classified | 577 | 1,200 |
Not Adversely Classified | Commercial real estate | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Gross loans | 805,488 | 688,266 |
Not Adversely Classified | Commercial and industrial | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Gross loans | 348,861 | 321,078 |
Not Adversely Classified | Commercial construction | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Gross loans | 129,149 | 118,381 |
Not Adversely Classified | Residential | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Gross loans | 131,709 | 119,024 |
Not Adversely Classified | Home Equity | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Gross loans | 73,854 | 74,987 |
Not Adversely Classified | Consumer | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' |
Gross loans | $8,603 | $4,877 |
Allowance_For_Loan_Losses_Inte
Allowance For Loan Losses - Interest Income Lost on Nonaccrual Loans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Income in accordance with original loan terms | $1,171 | $1,490 | $1,545 |
Less income recognized | 680 | 380 | 140 |
Reduction in interest income | $491 | $1,110 | $1,405 |
Allowance_For_Loan_Losses_Impa
Allowance For Loan Losses - Impaired Loans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Total accruing impaired loans | $11,900,000 | $16,600,000 | ' |
Impaired non-accrual loans | 17,900,000 | 20,800,000 | ' |
Interest income that was not recognized on loans that were deem impaired | 445,000 | 1,100,000 | 847,000 |
Additional funding commitments on impaired loans | 457,000 | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Unpaid contractual principal balance | 33,910,000 | 40,846,000 | ' |
Total recorded investment in impaired loans | 29,826,000 | 37,393,000 | ' |
Recorded investment with no allowance | 18,798,000 | 26,136,000 | ' |
Recorded investment with allowance | 11,028,000 | 11,257,000 | ' |
Related allowance | 4,399,000 | 4,146,000 | ' |
Average recorded investment | 31,227,000 | 36,675,000 | 41,495,000 |
Interest income recognized | 417,000 | 753,000 | 849,000 |
Commercial real estate | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Increase (decrease) in impaired loans | -7,700,000 | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Unpaid contractual principal balance | 17,420,000 | 24,760,000 | ' |
Total recorded investment in impaired loans | 15,139,000 | 22,859,000 | ' |
Recorded investment with no allowance | 12,105,000 | 18,735,000 | ' |
Recorded investment with allowance | 3,034,000 | 4,124,000 | ' |
Related allowance | 507,000 | 1,041,000 | ' |
Average recorded investment | 17,673,000 | 23,629,000 | 27,404,000 |
Interest income recognized | 237,000 | 560,000 | 698,000 |
Commercial and industrial | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Unpaid contractual principal balance | 12,220,000 | 12,184,000 | ' |
Total recorded investment in impaired loans | 10,579,000 | 10,831,000 | ' |
Recorded investment with no allowance | 4,902,000 | 6,016,000 | ' |
Recorded investment with allowance | 5,677,000 | 4,815,000 | ' |
Related allowance | 2,901,000 | 2,186,000 | ' |
Average recorded investment | 9,444,000 | 9,846,000 | 9,571,000 |
Interest income recognized | 92,000 | 116,000 | 61,000 |
Commercial construction | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Unpaid contractual principal balance | 3,464,000 | 3,091,000 | ' |
Total recorded investment in impaired loans | 3,358,000 | 2,932,000 | ' |
Recorded investment with no allowance | 1,426,000 | 995,000 | ' |
Recorded investment with allowance | 1,932,000 | 1,937,000 | ' |
Related allowance | 830,000 | 753,000 | ' |
Average recorded investment | 3,227,000 | 2,377,000 | 3,880,000 |
Interest income recognized | 77,000 | 65,000 | 83,000 |
Residential | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Unpaid contractual principal balance | 673,000 | 687,000 | ' |
Total recorded investment in impaired loans | 619,000 | 648,000 | ' |
Recorded investment with no allowance | 365,000 | 390,000 | ' |
Recorded investment with allowance | 254,000 | 258,000 | ' |
Related allowance | 107,000 | 65,000 | ' |
Average recorded investment | 745,000 | 753,000 | 621,000 |
Interest income recognized | 9,000 | 11,000 | 2,000 |
Home Equity | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Unpaid contractual principal balance | 110,000 | 110,000 | ' |
Total recorded investment in impaired loans | 108,000 | 109,000 | ' |
Recorded investment with no allowance | 0 | 0 | ' |
Recorded investment with allowance | 108,000 | 109,000 | ' |
Related allowance | 31,000 | 87,000 | ' |
Average recorded investment | 120,000 | 54,000 | 0 |
Interest income recognized | 0 | 0 | 2,000 |
Consumer | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Unpaid contractual principal balance | 23,000 | 14,000 | ' |
Total recorded investment in impaired loans | 23,000 | 14,000 | ' |
Recorded investment with no allowance | 0 | 0 | ' |
Recorded investment with allowance | 23,000 | 14,000 | ' |
Related allowance | 23,000 | 14,000 | ' |
Average recorded investment | 18,000 | 16,000 | 19,000 |
Interest income recognized | $2,000 | $1,000 | $3,000 |
Allowance_For_Loan_Losses_Trou
Allowance For Loan Losses - Troubled Debt Restructures (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
restructuring | restructuring | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total Troubled Debt Restructure (TDR) loans | $20,900,000 | $26,600,000 |
TDR loans on accrual status | 11,400,000 | 16,000,000 |
TDR loans included in non-performing loans | 9,500,000 | 10,500,000 |
Number of restructurings | 9 | 15 |
Pre-modification outstanding recorded investment | 3,400,000 | 4,591,000 |
Post-modification outstanding recorded investment | 3,264,000 | 4,492,000 |
Number of TDR's that defaulted | 1 | 3 |
Post-modification outstanding recorded investment | 62,000 | 135,000 |
Charge-offs associated with TDRs | 38,000 | 91,000 |
Specific reserves allocated to TDRs | 142,000 | 802,000 |
Interest payments received on nonaccruing loans excluded from income | 55,000 | 6,000 |
Additional funding commitment on TDRs | 145,000 | ' |
Commercial real estate | Commercial real estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of restructurings | 2 | 3 |
Pre-modification outstanding recorded investment | 724,000 | 423,000 |
Post-modification outstanding recorded investment | 673,000 | 388,000 |
Number of TDR's that defaulted | 0 | 0 |
Post-modification outstanding recorded investment | 0 | 0 |
Commercial real estate | Commercial construction | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of restructurings | 1 | 3 |
Pre-modification outstanding recorded investment | 769,000 | 802,000 |
Post-modification outstanding recorded investment | 769,000 | 746,000 |
Number of TDR's that defaulted | 0 | 0 |
Post-modification outstanding recorded investment | 0 | 0 |
Commercial | Commercial and industrial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of restructurings | 5 | 7 |
Pre-modification outstanding recorded investment | 1,903,000 | 2,980,000 |
Post-modification outstanding recorded investment | 1,818,000 | 2,975,000 |
Number of TDR's that defaulted | 1 | 2 |
Post-modification outstanding recorded investment | 62,000 | 10,000 |
Residential | Residential | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of restructurings | 0 | 2 |
Pre-modification outstanding recorded investment | 0 | 386,000 |
Post-modification outstanding recorded investment | 0 | 383,000 |
Number of TDR's that defaulted | 0 | 1 |
Post-modification outstanding recorded investment | 0 | 125,000 |
Residential | Home Equity | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of restructurings | 0 | 0 |
Pre-modification outstanding recorded investment | 0 | 0 |
Post-modification outstanding recorded investment | 0 | 0 |
Number of TDR's that defaulted | 0 | 0 |
Post-modification outstanding recorded investment | 0 | 0 |
Consumer | Consumer | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of restructurings | 1 | 0 |
Pre-modification outstanding recorded investment | 4,000 | 0 |
Post-modification outstanding recorded investment | 4,000 | 0 |
Number of TDR's that defaulted | 0 | 0 |
Post-modification outstanding recorded investment | $0 | $0 |
Allowance_For_Loan_Losses_Othe
Allowance For Loan Losses - Other Real Estate Owned (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
property | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Carrying value of OREO | $114 | $500 | ' |
Number of OREO properties sold | 2 | ' | ' |
Net gains on sales of OREO | 121 | 87 | 0 |
OREO fair value adjustment | 23 | 0 | 0 |
Other real estate owned | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Number of OREO properties owned | 1 | 1 | ' |
Number of OREO properties added | 2 | ' | ' |
Number of OREO properties sold from prior year | 1 | ' | ' |
OREO fair value adjustment | $23 | ' | ' |
Allowance_For_Loan_Losses_Allo
Allowance For Loan Losses - Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan growth excluding loans purchased | ' | ' | ' | ' | ' | ' | ' | ' | $164,400,000 | $87,800,000 | ' |
Net charge-offs on loans | ' | ' | ' | ' | ' | ' | ' | ' | 566,000 | ' | ' |
Allowance for loan losses to total loans ratio | 1.77% | ' | ' | ' | 1.78% | ' | ' | ' | 1.77% | 1.78% | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 24,254,000 | ' | ' | ' | 23,160,000 | 24,254,000 | 23,160,000 | 19,415,000 |
Provision for loan losses | 1,379,000 | 583,000 | 534,000 | 783,000 | 600,000 | 800,000 | 1,050,000 | 300,000 | 3,279,000 | 2,750,000 | 5,197,000 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 415,000 | 519,000 | 294,000 |
Less: Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 981,000 | 2,175,000 | 1,746,000 |
Ending Balance | 26,967,000 | ' | ' | ' | 24,254,000 | ' | ' | ' | 26,967,000 | 24,254,000 | 23,160,000 |
Allotted to loans individually evaluated for impairment | 4,399,000 | ' | ' | ' | 4,146,000 | ' | ' | ' | 4,399,000 | 4,146,000 | ' |
Allotted to loans collectively evaluated for impairment | 22,568,000 | ' | ' | ' | 20,108,000 | ' | ' | ' | 22,568,000 | 20,108,000 | ' |
Loans individually evaluated for impairment | 29,826,000 | ' | ' | ' | 37,393,000 | ' | ' | ' | 29,826,000 | 37,393,000 | ' |
Loans collectively evaluated for impairment | 1,494,230,000 | ' | ' | ' | 1,322,262,000 | ' | ' | ' | 1,494,230,000 | 1,322,262,000 | ' |
Deferred loan origination fees, net | -1,524,000 | ' | ' | ' | -1,393,000 | ' | ' | ' | -1,524,000 | -1,393,000 | ' |
Gross loans | 1,525,580,000 | ' | ' | ' | 1,361,048,000 | ' | ' | ' | 1,525,580,000 | 1,361,048,000 | ' |
Total loans | 1,524,056,000 | ' | ' | ' | 1,359,655,000 | ' | ' | ' | 1,524,056,000 | 1,359,655,000 | ' |
Commercial real estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 11,793,000 | ' | ' | ' | 10,855,000 | 11,793,000 | 10,855,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 1,491,000 | 1,185,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 96,000 | 29,000 | ' |
Less: Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 206,000 | 276,000 | ' |
Ending Balance | 13,174,000 | ' | ' | ' | 11,793,000 | ' | ' | ' | 13,174,000 | 11,793,000 | ' |
Allotted to loans individually evaluated for impairment | 507,000 | ' | ' | ' | 1,041,000 | ' | ' | ' | 507,000 | 1,041,000 | ' |
Allotted to loans collectively evaluated for impairment | 12,667,000 | ' | ' | ' | 10,752,000 | ' | ' | ' | 12,667,000 | 10,752,000 | ' |
Loans individually evaluated for impairment | 15,139,000 | ' | ' | ' | 22,859,000 | ' | ' | ' | 15,139,000 | 22,859,000 | ' |
Loans collectively evaluated for impairment | 805,160,000 | ' | ' | ' | 687,406,000 | ' | ' | ' | 805,160,000 | 687,406,000 | ' |
Gross loans | 820,299,000 | ' | ' | ' | 710,265,000 | ' | ' | ' | 820,299,000 | 710,265,000 | ' |
Commercial and industrial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 7,297,000 | ' | ' | ' | 7,568,000 | 7,297,000 | 7,568,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 1,658,000 | 656,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | 461,000 | ' |
Less: Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 670,000 | 1,388,000 | ' |
Ending Balance | 8,365,000 | ' | ' | ' | 7,297,000 | ' | ' | ' | 8,365,000 | 7,297,000 | ' |
Allotted to loans individually evaluated for impairment | 2,901,000 | ' | ' | ' | 2,186,000 | ' | ' | ' | 2,901,000 | 2,186,000 | ' |
Allotted to loans collectively evaluated for impairment | 5,464,000 | ' | ' | ' | 5,111,000 | ' | ' | ' | 5,464,000 | 5,111,000 | ' |
Loans individually evaluated for impairment | 10,579,000 | ' | ' | ' | 10,831,000 | ' | ' | ' | 10,579,000 | 10,831,000 | ' |
Loans collectively evaluated for impairment | 346,477,000 | ' | ' | ' | 317,748,000 | ' | ' | ' | 346,477,000 | 317,748,000 | ' |
Gross loans | 357,056,000 | ' | ' | ' | 328,579,000 | ' | ' | ' | 357,056,000 | 328,579,000 | ' |
Commercial construction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 3,456,000 | ' | ' | ' | 3,013,000 | 3,456,000 | 3,013,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -41,000 | 597,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 78,000 | 2,000 | ' |
Less: Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 156,000 | ' |
Ending Balance | 3,493,000 | ' | ' | ' | 3,456,000 | ' | ' | ' | 3,493,000 | 3,456,000 | ' |
Allotted to loans individually evaluated for impairment | 830,000 | ' | ' | ' | 753,000 | ' | ' | ' | 830,000 | 753,000 | ' |
Allotted to loans collectively evaluated for impairment | 2,663,000 | ' | ' | ' | 2,703,000 | ' | ' | ' | 2,663,000 | 2,703,000 | ' |
Loans individually evaluated for impairment | 3,358,000 | ' | ' | ' | 2,932,000 | ' | ' | ' | 3,358,000 | 2,932,000 | ' |
Loans collectively evaluated for impairment | 129,149,000 | ' | ' | ' | 118,435,000 | ' | ' | ' | 129,149,000 | 118,435,000 | ' |
Gross loans | 132,507,000 | ' | ' | ' | 121,367,000 | ' | ' | ' | 132,507,000 | 121,367,000 | ' |
Residential | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 854,000 | ' | ' | ' | 995,000 | 854,000 | 995,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 111,000 | 34,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 128,000 | 10,000 | ' |
Less: Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 36,000 | 185,000 | ' |
Ending Balance | 1,057,000 | ' | ' | ' | 854,000 | ' | ' | ' | 1,057,000 | 854,000 | ' |
Allotted to loans individually evaluated for impairment | 107,000 | ' | ' | ' | 65,000 | ' | ' | ' | 107,000 | 65,000 | ' |
Allotted to loans collectively evaluated for impairment | 950,000 | ' | ' | ' | 789,000 | ' | ' | ' | 950,000 | 789,000 | ' |
Loans individually evaluated for impairment | 619,000 | ' | ' | ' | 648,000 | ' | ' | ' | 619,000 | 648,000 | ' |
Loans collectively evaluated for impairment | 132,102,000 | ' | ' | ' | 119,630,000 | ' | ' | ' | 132,102,000 | 119,630,000 | ' |
Gross loans | 132,721,000 | ' | ' | ' | 120,278,000 | ' | ' | ' | 132,721,000 | 120,278,000 | ' |
Home Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 728,000 | ' | ' | ' | 615,000 | 728,000 | 615,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | -52,000 | 251,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 21,000 | 2,000 | ' |
Less: Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 44,000 | 140,000 | ' |
Ending Balance | 653,000 | ' | ' | ' | 728,000 | ' | ' | ' | 653,000 | 728,000 | ' |
Allotted to loans individually evaluated for impairment | 31,000 | ' | ' | ' | 87,000 | ' | ' | ' | 31,000 | 87,000 | ' |
Allotted to loans collectively evaluated for impairment | 622,000 | ' | ' | ' | 641,000 | ' | ' | ' | 622,000 | 641,000 | ' |
Loans individually evaluated for impairment | 108,000 | ' | ' | ' | 109,000 | ' | ' | ' | 108,000 | 109,000 | ' |
Loans collectively evaluated for impairment | 74,246,000 | ' | ' | ' | 75,539,000 | ' | ' | ' | 74,246,000 | 75,539,000 | ' |
Gross loans | 74,354,000 | ' | ' | ' | 75,648,000 | ' | ' | ' | 74,354,000 | 75,648,000 | ' |
Consumer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | 126,000 | ' | ' | ' | 114,000 | 126,000 | 114,000 | ' |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 112,000 | 27,000 | ' |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 | 15,000 | ' |
Less: Charge offs | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | 30,000 | ' |
Ending Balance | 225,000 | ' | ' | ' | 126,000 | ' | ' | ' | 225,000 | 126,000 | ' |
Allotted to loans individually evaluated for impairment | 23,000 | ' | ' | ' | 14,000 | ' | ' | ' | 23,000 | 14,000 | ' |
Allotted to loans collectively evaluated for impairment | 202,000 | ' | ' | ' | 112,000 | ' | ' | ' | 202,000 | 112,000 | ' |
Loans individually evaluated for impairment | 23,000 | ' | ' | ' | 14,000 | ' | ' | ' | 23,000 | 14,000 | ' |
Loans collectively evaluated for impairment | 8,620,000 | ' | ' | ' | 4,897,000 | ' | ' | ' | 8,620,000 | 4,897,000 | ' |
Gross loans | 8,643,000 | ' | ' | ' | 4,911,000 | ' | ' | ' | 8,643,000 | 4,911,000 | ' |
Purchased Loans [Member] | Residential | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross loans | $14,100,000 | ' | ' | ' | $26,400,000 | ' | ' | ' | $14,100,000 | $26,400,000 | ' |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross premises and equipment | $57,437,000 | $52,691,000 | ' |
Less accumulated depreciation | -27,546,000 | -25,485,000 | ' |
Total premises and equipment, net of accumulated depreciation | 29,891,000 | 27,206,000 | ' |
Depreciation expense | 3,900,000 | 3,700,000 | 3,800,000 |
Land | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross premises and equipment | 4,594,000 | 4,594,000 | ' |
Buildings, renovations, and leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross premises and equipment | 30,516,000 | 28,283,000 | ' |
Computer software and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross premises and equipment | 8,088,000 | 7,560,000 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Gross premises and equipment | $14,239,000 | $12,254,000 | ' |
Premises_and_Equipment_Operati
Premises and Equipment - Operating Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
2014 | $1,087 | ' | ' |
2015 | 882 | ' | ' |
2016 | 911 | ' | ' |
2017 | 908 | ' | ' |
2018 | 747 | ' | ' |
Thereafter | 3,842 | ' | ' |
Total minimum lease payments | 8,377 | ' | ' |
Operating Leases, Rent Expense | 910 | 858 | 809 |
Rental income | $150 | $198 | $255 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Deposits [Abstract] | ' | ' | ||
Non-interest demand deposits | $435,465 | $386,643 | ||
Interest bearing checking | 222,837 | 210,564 | ||
Savings | 150,215 | 154,680 | ||
Money market | 575,825 | 491,942 | ||
Certificates of deposit less than $100,000 | 95,530 | 106,904 | ||
Certificates of deposit of $100,000 or more | 104,553 | 121,262 | ||
Total non-brokered deposits | 1,584,425 | [1] | 1,471,995 | [1] |
Brokered deposits | 51,567 | [2] | 3,032 | [2] |
Total deposits | 1,635,992 | 1,475,027 | ||
Overdrawn deposits reclassified as loans | $1,400 | $700 | ||
[1] | Includes reciprocal money market deposits and CDs received from participating banks in nationwide networks as a result of our customers electing to participate in programs to obtain full FDIC insurance. Essentially, the equivalent of the original deposit comes back to the Company as non-brokered deposits within the appropriate category under total deposits on the balance sheet. | |||
[2] | Primarily brokered CDs under $100,000. |
Deposits_Maturities_Details
Deposits - Maturities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deposits [Abstract] | ' | ' | ' |
Average maturity of brokered deposits | '5 years | ' | ' |
Due in less than twelve months, Less than $100,000 | $75,065 | ' | ' |
Due in less than twelve months, $100,000 and Greater | 83,296 | ' | ' |
Due in less than twelve months, Total | 158,361 | ' | ' |
Due in over one year through two years, Less than $100,000 | 14,137 | ' | ' |
Due in over one year through two years, $100,000 and Greater | 12,806 | ' | ' |
Due in over one year through two years, Total | 26,943 | ' | ' |
Due in over two years through three years, Less than $100,000 | 5,213 | ' | ' |
Due in over two years through three years, $100,000 and Greater | 9,085 | ' | ' |
Due in over two years through three years, Total | 14,298 | ' | ' |
Due in over three years through four years, Less than $100,000 | 17,954 | ' | ' |
Due in over three years through four years, $100,000 and Greater | 1,399 | ' | ' |
Due in over three years through four years, Total | 19,353 | ' | ' |
Due in over four years through five years, Less than $100,000 | 16,577 | ' | ' |
Due in over four years through five years, $100,000 and Greater | 0 | ' | ' |
Due in over four years through five years, Total | 16,577 | ' | ' |
Due in over five years, Less than $100,000 | 16,118 | ' | ' |
Due in over five years, $100,000 and Greater | 0 | ' | ' |
Due in over five years, Total | 16,118 | ' | ' |
Total certificates of deposit, Less than $100,000 | 145,064 | ' | ' |
Total of certificates of deposit, $100,000 and Greater | 106,586 | ' | ' |
Total certificates of deposit | 251,650 | ' | ' |
Interest expense on certificates of deposit with balances of $100,000 or more | $872 | $1,400 | $1,900 |
Borrowed_Funds_and_Debentures_1
Borrowed Funds and Debentures (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2000 |
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Borrowed funds | $36,534 | $26,540 | ' | ' |
Federal Home Loan Bank of Boston borrowings, Average Rate | 0.30% | 0.44% | 1.83% | ' |
Junior subordinated debentures, Amount | 10,825 | 10,825 | 10,825 | 10,825 |
Junior subordinated debentures, Average Rate | 10.88% | 10.88% | 10.88% | ' |
Total borrowed funds and debentures, Amount | 47,359 | 37,365 | 15,319 | ' |
Total borrowed funds and debentures, Average Rate | 2.72% | 3.46% | 8.22% | ' |
Federal Home Loan Bank of Boston borrowings | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Borrowed funds | $36,534 | $26,540 | $4,494 | ' |
Borrowed_Funds_and_Debentures_2
Borrowed Funds and Debentures - Textual (Details) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2000 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2000 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2000 | |
Junior Subordinated Debt Securities | Minimum | Maximum | Line of credit | Line of credit | Enterprise (MA) Capital Trust I | |||||
Federal Home Loan Bank of Boston borrowings | Federal Home Loan Bank of Boston borrowings | FHLB | Federal Reserve Bank of Boston | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FHLB advances, due in less than twelve months | ' | ' | $1,700,000 | ' | ' | ' | ' | ' | ' | ' |
FHLB advances, due in less than twelve months, weighted average rate | ' | ' | 0.66% | ' | ' | ' | ' | ' | ' | ' |
FHLB overnight borrowings | ' | ' | 34,800,000 | ' | ' | ' | ' | ' | ' | ' |
FHLB overnight borrowings, weighted average rate | ' | ' | 0.28% | ' | ' | ' | ' | ' | ' | ' |
Term for FHLB borrowings | ' | ' | ' | ' | ' | '1 year | '2 years | ' | ' | ' |
Maximum amount of FHLB borrowings outstanding during period | ' | 4,800,000 | 57,400,000 | 26,500,000 | ' | ' | ' | ' | ' | ' |
Maximum amount outstanding during period of repurchase agreements for securities sold | ' | 763,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity at FHLB | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' |
Remaining borrowing capacity at FRB | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' |
Trust preferred securities, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,500,000 |
Trust preferred securities, stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.88% |
Proceeds from capital contribution | 325,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Junior subordinated debentures | $10,825,000 | $10,825,000 | $10,825,000 | $10,825,000 | ' | ' | ' | ' | ' | ' |
Junior Subordinated Debt Securities, stated interest rate | ' | ' | ' | ' | 10.88% | ' | ' | ' | ' | ' |
Borrowed_Funds_and_Debentures_3
Borrowed Funds and Debentures - Average Balances (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Debt Disclosure [Abstract] | ' | ' | ' |
FHLB advances, Average Balance | $24,385 | $3,552 | $4,684 |
FHLB advances, Average Rate | 0.39% | 1.50% | 1.82% |
Other borrowings, Average Balance | 14 | 89 | 170 |
Other borrowings, Average Rate | 0.46% | 0.27% | 0.25% |
Repurchase agreements, Average Balance | 0 | 0 | 373 |
Repurchase agreements, Average Rate | 0.00% | 0.00% | 0.31% |
Total borrowed funds, Average Balance | $24,399 | $3,641 | $5,227 |
Total borrowed funds, Average Rate | 0.39% | 1.47% | 1.66% |
Commitments_Contingencies_and_2
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Commercial real estate | Commercial real estate | Commercial and industrial | Commercial and industrial | Commercial and residential | Commercial and residential | Home Equity | Home Equity | Consumer | Consumer | Residential | |||
payment | |||||||||||||
Other Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments to Originate Loans | $34,182,000 | $46,408,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments to Originate Loans for Sale | 2,007,000 | 9,325,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments to Sell Residential Mortgage Loans | 3,262,000 | 17,882,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby Letters of Credit | 17,116,000 | 13,547,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial instruments with off-balance sheet credit risk | ' | ' | 11,640,000 | 8,445,000 | 261,356,000 | 233,274,000 | 131,183,000 | 78,428,000 | 60,281,000 | 57,511,000 | 3,056,000 | 3,059,000 | ' |
Federal Reserve Bank average daily reserve requirement included in Cash and Due from Banks | $11,200,000 | $7,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Early payment default period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 |
Stockholders_Equity_Narrative_
Stockholders' Equity - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 1989 | Jul. 18, 2013 | Mar. 31, 2000 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Enterprise (MA) Capital Trust I | Retained Earnings | Retained Earnings | Retained Earnings | Common Stock | Common Stock | Common Stock | Common Stock | Series A Junior Participating Preferred Stock | |||||||
vote | |||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares authorized | ' | 20,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Votes Per Share, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Preferred stock, par value | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of a share allowed to be purchased under right to purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.01 |
Price per one one-hundredth of a share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $52 |
Minimum acquisition percentage to trigger the exercise of the right to purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Proceeds from issuance of common stock | ' | $1,239,000 | $1,274,000 | $1,254,000 | $15,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities issued, value | ' | ' | ' | ' | ' | ' | 10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from 2009 Shareholder Subscription Rights Offering and Supplemental Community Offering | 8,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount available to be raised under 2013 shelf registration | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued under dividend reinvestment plan, value | ' | 1,239,000 | 1,274,000 | 1,254,000 | ' | ' | ' | ' | ' | ' | 1,000 | 1,000 | 1,000 | ' | ' |
Common stock dividend | ' | $4,535,000 | $4,215,000 | $3,945,000 | ' | ' | ' | $4,535,000 | $4,215,000 | $3,945,000 | ' | ' | ' | ' | ' |
Common stock issued under dividend reinvestment plan, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,633 | 80,392 | 84,760 | ' | ' |
Stockholders_Equity_Regulatory
Stockholders' Equity - Regulatory Capital Requirements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ||
Allowance for Loan Losses Included in Total Capital, as Percentage of Risk Weighted Assets | 1.25% | ' | ||
Total Capital, Actual, Amount | $174,145 | $157,716 | ||
Total Capital (to risk weighted assets), Actual, Ratio | 11.35% | 11.46% | ||
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount | 122,752 | 110,079 | ||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | ||
Total Capital, Minimum Capital To Be Well Capitalized, Amount | 153,440 | 137,599 | ||
Total Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | 10.00% | 10.00% | ||
Tier 1 Risk Based Capital, Actual, Amount | 153,425 | 139,714 | ||
Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 10.00% | 10.15% | ||
Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | 61,376 | 55,040 | ||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | ||
Tier 1 Risk Based Capital, Minimum Capital To Be Well Capitalized, Amount | 92,064 | 82,560 | ||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | 6.00% | 6.00% | ||
Tier 1 Leverage Capital, Actual, Amount | 153,425 | 139,714 | ||
Tier 1 Leverage Capital (to average assets), Actual, Ratio | 8.48% | 8.64% | ||
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount | 72,375 | 64,716 | ||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | ||
The Bank | ' | ' | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ||
Total Capital, Actual, Amount | 173,126 | 156,883 | ||
Total Capital (to risk weighted assets), Actual, Ratio | 11.28% | 11.40% | ||
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount | 122,744 | 110,075 | ||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | ||
Total Capital, Minimum Capital To Be Well Capitalized, Amount | 153,430 | 137,594 | ||
Total Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | 10.00% | 10.00% | ||
Tier 1 Risk Based Capital, Actual, Amount | 152,408 | 138,882 | ||
Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 9.93% | 10.09% | ||
Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | 61,372 | 55,037 | ||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | ||
Tier 1 Risk Based Capital, Minimum Capital To Be Well Capitalized, Amount | 92,058 | 82,556 | ||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | 6.00% | 6.00% | ||
Tier 1 Leverage Capital, Actual, Amount | 152,408 | 138,882 | ||
Tier 1 Leverage Capital (to average assets), Actual, Ratio | 8.43% | 8.59% | ||
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount | 72,343 | 64,684 | ||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | ||
Tier 1 Leverage Capital, Minimum Capital To Be Well Capitalized, Amount | $90,428 | $80,855 | ||
Tier 1 Leverage Capital (to average assets), Minimum Capital To Be Well Capitalized, Ratio | 5.00% | [1] | 5.00% | [1] |
[1] | For the Bank to qualify as “well capitalizedâ€, it must maintain a leverage capital ratio (Tier 1 capital to average assets) of at least 5%. This requirement does not apply to the Company. |
Employee_Benefit_Plans_Defined
Employee Benefit Plans - Defined Contribution Plan and Profit Sharing (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
H | |||
Y | |||
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Company's percentage match on 401(k) defined contribution plan | 60.00% | ' | ' |
Maximum percentage of employee contribution fully matched by Company | 6.00% | ' | ' |
Minimum age to be eligible for 401(k) plan | 18 | ' | ' |
Number of minimum hours required to work for 401(k) plan eligibility | 1 | ' | ' |
Employer's matching contribution, annual vesting percentage for 401(k) plan | 20.00% | ' | ' |
Number of years to be fully vested for 401(k) plan | '5 years | ' | ' |
Minimum age to be eligible for profit sharing component of 401(k) plan | 18 | ' | ' |
Number of minimum hours required to work for profit sharing component of 401(k) plan | 1 | ' | ' |
Maximum salary used in calculation of profit sharing contribution paid by company | $75 | ' | ' |
Discretionary employer contributions | 0 | 0 | 0 |
Expense for the 401(k) plan match (excluding profit sharing component) | 692 | 629 | 591 |
Expense for profit sharing contributions to the 401(k) plan | $458 | $618 | $399 |
Employee_Benefit_Plans_Supplem
Employee Benefit Plans - Supplemental Retirement Plan (SERP) (Details) (Supplemental Retirement Plan, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
officer | ||||||
Supplemental Retirement Plan | ' | ' | ' | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | |||
Number of active executive officers under plan | 2 | ' | ' | |||
Number of former executive officers under plan | 1 | ' | ' | |||
Term of SERP benefits | '20 years | ' | ' | |||
Accrual for benefit obligation for following year | $142 | ' | ' | |||
Benefit obligation at beginning of year | 3,181 | 3,203 | 3,135 | |||
Interest cost | 157 | 134 | 171 | |||
Actuarial loss(gain) | -173 | [1] | 120 | [1] | 173 | [1] |
Benefits paid | 276 | 276 | 276 | |||
Benefit obligation at end of year | 2,889 | 3,181 | 3,203 | |||
Accrued liability at end of year | -2,889 | -3,181 | -3,203 | |||
Discount rate used for benefit obligation | 5.00% | 4.25% | 4.75% | |||
Net periodic benefit cost(benefit) | ($16) | $254 | $344 | |||
[1] | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Employee_Benefit_Plans_Expecte
Employee Benefit Plans - Expected Future Benefit Payments for SERP (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | ' |
2014 | $276 |
2015 | 276 |
2016 | 276 |
2017 | 276 |
2018 | 276 |
2019-2023 | $1,379 |
Employee_Benefit_Plans_Supplem1
Employee Benefit Plans - Supplemental Life Insurance (Details) (Supplemental Life Insurance Benefit [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Supplemental Life Insurance Benefit [Member] | ' | ' | ' | |||
Other Postretirement Benefit Plan Disclosures [Line Items] | ' | ' | ' | |||
Benefit obligation at beginning of year | $1,664 | $1,414 | $1,317 | |||
Service cost | 2 | 8 | 15 | |||
Interest cost | 74 | 67 | 72 | |||
Actuarial loss(gain) | -164 | [1] | 175 | [1] | 10 | [1] |
Benefit obligation at end of year | 1,576 | 1,664 | 1,414 | |||
Accrued liability at end of year | -1,576 | -1,664 | -1,414 | |||
Discount rate used for benefit obligation | 5.00% | 4.25% | 4.75% | |||
Net periodic benefit cost(benefit) | -88 | 250 | 97 | |||
Accrual for benefit obligation for following year | $74 | ' | ' | |||
[1] | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans - Stock Options, Restricted Stock Awards, and Stock in Lieu of Directors' Fees (Details) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2013 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2013 | Jan. 03, 2012 | Jan. 03, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
plans | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Director | Director | Director | Options granted 2007 through 2012 | Options Granted in 2013 | Options Granted 2010 and Prior | Stock options | Stock options | Stock options | Stock options | Restricted stock award, common stock | Restricted stock award, common stock | Restricted stock award, common stock | Restricted stock award, common stock | Restricted stock award, common stock | Restricted stock award, common stock | Restricted stock award, common stock | Restricted stock award, common stock | Company Performance Based | Common stock in lieu of cash | Common stock in lieu of cash | Common stock in lieu of cash | Subsequent Event | Vesting, Year Two | Vesting, Year Four | ||||||||
Y | Options granted 2007 through 2012 | Employee | Employee | Executive Officer | Director | Director | Director | Director | Director | Stock options | Stock options | |||||||||||||||||||||||||
Options Granted in 2013 | Options Granted in 2013 | |||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individual stock incentive plans | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares remain available for future grants under the 2009 plan | ' | ' | 400,301 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | $1,662 | $1,271 | $1,035 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $422 | $255 | $230 | ' | $1,000 | $832 | $639 | ' | ' | ' | ' | ' | ' | $194 | $184 | $166 | ' | ' | ' |
Tax benefit from stock-based compensation expense | ' | ' | 660 | 507 | 415 | ' | ' | ' | ' | ' | ' | 77 | 74 | 67 | ' | ' | ' | 165 | 101 | 91 | ' | 418 | 332 | 257 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted, vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | '4 years | '4 years | ' | '2 years | '2 years | ' | ' | ' | ' | ' | ' | ' |
Expiration period of options granted | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Age that prompts accelerated vesting of unvested options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price as a percentage of fair market value that stock options may not be granted below | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership of common stock by participants that if greater causes greater grant price | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price as a percentage of fair market value that stock options may not be granted below for anyone who owns more than 10% common stock | ' | ' | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration period of options granted for those who own more than 10% common stock | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
In-the-money vested and exercisable options | ' | ' | 265,252 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from option exercises | ' | ' | 1,829 | 509 | 309 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | ' | ' | 1,100 | 151 | 101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit from exercise of stock options | ' | ' | 25 | 2 | 4 | ' | ' | ' | 25 | 2 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense, net of estimated forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 620 | ' | ' | ' | 1,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining vesting period unrecognized compensation expense is to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 3 months 18 days | ' | ' | ' | '2 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock as restricted stock awards granted in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,541 | 72,376 | ' | 26,660 | 63,160 | 3,000 | 6,146 | 6,216 | 47,735 | ' | ' | ' | ' | ' | ' |
Granted, Weighted Average Grant Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16.43 | $16.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Directors fee expense | ' | ' | $356 | $355 | $368 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued in lieu of cash to directors | 12,592 | 12,132 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,136 | ' | ' |
Fair market share price | ' | ' | ' | ' | ' | $17.43 | $14.63 | $13.65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans - Summary of Options Granted (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Options granted | 47,684 | 68,750 | 83,075 |
Stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 48.00% | 50.00% | 45.00% |
Market price on date of grant | 16.61 | 16.25 | 14.88 |
Per share weighted average fair value | 6.66 | 6.33 | 5.28 |
Weighted Average | Stock options | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected dividend yield | 2.96% | 2.89% | 2.91% |
Expected life in years | '7 years | '5 years 6 months | '5 years 6 months |
Risk-free interest rate | 1.35% | 1.37% | 2.17% |
Fair Value as a percentage of market value at grant date | 40.00% | 39.00% | 35.00% |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans - Stock Options Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Outstanding Options, beginning balance | 649,211 | ' | ' |
Granted, Options | 47,684 | 68,750 | 83,075 |
Exercised, Options | 273,529 | ' | ' |
Forfeited/Expired, Options | 6,014 | ' | ' |
Outstanding Options, ending balance | 417,352 | 649,211 | ' |
Outstanding Options, Weighted Average Exercise Price, beginning balance | $14.28 | ' | ' |
Granted, Weighted Average Exercise Price | $16.61 | ' | ' |
Exercised, Weighted Average Exercise Price | $14.63 | ' | ' |
Forfeited/Expired, Weighted Average Exercise Price | $13.31 | ' | ' |
Outstanding Options, Weighted Average Exercise Price, ending balance | $14.32 | $14.28 | ' |
Outstanding Options, Weighted Average Remaining Life, beginning balance | '3 years 6 months | '2 years 7 months 8 days | ' |
Outstanding Options, Weighted Average Remaining Life, ending balance | '3 years 6 months | '2 years 7 months 8 days | ' |
Options Outstanding, Aggregate Intrinsic Value, beginning balance | $1,462 | ' | ' |
Options Outstanding, Aggregate Intrinsic Value, ending balance | 2,857 | 1,462 | ' |
Vested and Exercisable, ending balance, Options | 265,252 | ' | ' |
Vested and Exercisable, ending balance, Weighted Average Exercise Price | $13.59 | ' | ' |
Vested and Exercisable, ending balance, Weighted Average Remaining Life | '2 years 0 months 22 days | ' | ' |
Vested and Exercisable, ending balance, Aggregate Intrinsic Value | $2,012 | ' | ' |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans - Restricted Stock Award Activity and Weighted Average Price (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Unvested, ending balance, Restricted Stock | 170,365 | 154,186 |
Restricted stock award, common stock | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Unvested, beginning balance, Restricted Stock | 154,186 | ' |
Granted, Restricted Stock | 80,541 | 72,376 |
Vested/released, Restricted Stock | 62,053 | ' |
Forfeited, Restricted Stock | 2,309 | ' |
Unvested, ending balance, Restricted Stock | 170,365 | 154,186 |
Unvested, beginning balance, Weighted Average Grant Price Per Share | $14.58 | ' |
Granted, Weighted Average Grant Price Per Share | $16.43 | $16.24 |
Vested/released, Weighted Average Grant Price Per Share | $13.65 | ' |
Forfeited, Weighted Average Grant Price Per Share | $15.72 | ' |
Unvested, ending balance, Weighted Average Grant Price Per Share | $15.77 | $14.58 |
Unvested, Weighted Average Remaining Life In Years | '2 years 2 months 12 days | '2 years 3 months 18 days |
Unvested, Aggregate Intrinsic Value | $3,607,000 | $2,547,000 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $5,492 | $5,368 | $5,501 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 1,642 | 1,605 | 1,699 |
Total current tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 7,134 | 6,973 | 7,200 |
Deferred tax (benefit)/expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -100 | -487 | -1,602 |
State | ' | ' | ' | ' | ' | ' | ' | ' | -83 | -138 | -437 |
Total deferred tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -183 | -625 | -2,039 |
Total income tax expense | $1,653 | $1,904 | $1,606 | $1,788 | $1,540 | $1,760 | $1,436 | $1,612 | $6,951 | $6,348 | $5,161 |
Income_Taxes_Effective_Income_
Income Taxes - Effective Income Tax Rate (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | 34.00% | 34.00% | 34.00% |
Computed income tax expense at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $6,963 | $6,366 | $5,476 |
State income taxes, net of federal tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 1,029 | 968 | 833 |
Tax exempt income, net of disallowance | ' | ' | ' | ' | ' | ' | ' | ' | -988 | -1,020 | -972 |
Bank Owned Life Insurance, net | ' | ' | ' | ' | ' | ' | ' | ' | -156 | -171 | -182 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 103 | 205 | 6 |
Total income tax expense | $1,653 | $1,904 | $1,606 | $1,788 | $1,540 | $1,760 | $1,436 | $1,612 | $6,951 | $6,348 | $5,161 |
Effective income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | 33.90% | 33.90% | 32.00% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Asset and Liabilities (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of Deferred Tax Assets [Abstract] | ' | ' | ' |
Allowance for loan losses | $10,959 | $9,841 | ' |
Depreciation | 2,804 | 2,811 | ' |
Other-than-temporary impairment on equity securities | 238 | 419 | ' |
Supplemental employee retirement plans | 1,174 | 1,291 | ' |
Non-accrual interest | 1,514 | 1,465 | ' |
Stock-based compensation expense | 661 | 866 | ' |
Impairment of OREO | 0 | 203 | ' |
Other | 137 | 114 | ' |
Total | 17,487 | 17,010 | ' |
Components of Deferred Tax Liabilities [Abstract] | ' | ' | ' |
Goodwill | 1,928 | 1,713 | ' |
Net unrealized gains on investments securities | 1,071 | 2,267 | ' |
Deferred origination costs | 561 | 482 | ' |
Total | 3,560 | 4,462 | ' |
Net deferred tax asset | 13,927 | 12,548 | ' |
Total income taxes paid, net | 7,342 | 6,611 | 7,112 |
Federal Historic Rehabilitation Tax Credit | ' | ' | ' |
Components of Deferred Tax Liabilities [Abstract] | ' | ' | ' |
Tax credit carryforward recognized during period | ' | 235 | ' |
Federal Low Income Housing Tax Credit | ' | ' | ' |
Components of Deferred Tax Liabilities [Abstract] | ' | ' | ' |
Tax credit carryforward recognized during period | 71 | 35 | ' |
Anticipated additional tax credits | $607 | ' | ' |
Number of years tax credit to be recognized over | '9 years | ' | ' |
Earnings_per_share_Details
Earnings per share (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Basic weighted average common shares outstanding | 9,862,678 | 9,586,783 | 9,401,714 |
Dilutive shares | 87,931 | 73,893 | 44,011 |
Diluted weighted average common shares outstanding | 9,950,609 | 9,660,676 | 9,445,725 |
Stock options | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | 527 | 119,236 | ' |
Fair_Value_Measurements_Recurr
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Specific allowance for collateral dependent impaired loans | $3,200,000 | $3,300,000 | ' |
Net gains on sales of OREO | 121,000 | 87,000 | 0 |
OREO fair value adjustment | 23,000 | 0 | 0 |
Other real estate owned | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
OREO fair value adjustment | 23,000 | ' | ' |
Fair Value, Measurements, Recurring | Fair Value | Fixed income securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 202,201,000 | 173,796,000 | ' |
Fair Value, Measurements, Recurring | Fair Value | Equity securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 13,168,000 | 10,668,000 | ' |
Fair Value, Measurements, Recurring | Fair Value | FHLB Stock | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 4,324,000 | 4,260,000 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Fixed income securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Equity securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 13,168,000 | 10,668,000 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | FHLB Stock | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed income securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 202,201,000 | 173,796,000 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Equity securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | FHLB Stock | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Fixed income securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Equity securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | FHLB Stock | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of assets | 4,324,000 | 4,260,000 | ' |
Fair Value, Measurements, Nonrecurring | Fair Value | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired loans (collateral dependent), Fair Value | 6,542,000 | 7,110,000 | ' |
Other real estate owned, Fair Value | 114,000 | 500,000 | ' |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired loans (collateral dependent), Fair Value | 0 | 0 | ' |
Other real estate owned, Fair Value | 0 | 0 | ' |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired loans (collateral dependent), Fair Value | 0 | 0 | ' |
Other real estate owned, Fair Value | 0 | 0 | ' |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired loans (collateral dependent), Fair Value | 6,542,000 | 7,110,000 | ' |
Other real estate owned, Fair Value | $114,000 | $500,000 | ' |
Fair_Value_Measurements_Quanti
Fair Value Measurements - Quantitative (Details) (Fair Value, Inputs, Level 3, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | ||
FHLB Stock | FHLB Stock | FHLB Stock | Impaired loans (collateral dependent) | Impaired loans (collateral dependent) | Impaired loans (collateral dependent) | Other real estate owned | Other real estate owned | Other real estate owned | |||||
FHLB Stated Par Value | Appraisal of collateral | Appraisal of collateral | Appraisal of collateral | Appraisal of collateral | Appraisal of collateral | Appraisal of collateral | |||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair value of assets | $4,324 | $4,260 | $4,324 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Impaired loans (collateral dependent), Fair Value | ' | ' | ' | 6,542 | 7,110 | 6,542 | [1] | ' | ' | ' | ' | ' | |
Other real estate owned, Fair Value | ' | ' | ' | $114 | $500 | ' | ' | ' | $114 | [1] | ' | ' | |
Unobservable Input Value or Range | ' | ' | ' | ' | ' | ' | 5.00% | 50.00% | ' | 0.00% | 30.00% | ||
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair_Value_Measurements_Other_
Fair Value Measurements Other Guarantees and Commitments (Details) (Financial Standby Letter of Credit) | 12 Months Ended |
Dec. 31, 2013 | |
Financial Standby Letter of Credit | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Amortization period of estimated fair value on standby letters of credit | '1 year |
Fair_Value_Measurements_Balanc
Fair Value Measurements - Balance Sheet Grouping (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Inputs, Level 1 | ' | ' | ||
Financial assets: | ' | ' | ||
Loans held for sale | $0 | [1] | $0 | [1] |
Loans, net | 0 | [1] | 0 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 0 | [1] | 0 | [1] |
Junior subordinated debentures | 0 | [1] | 0 | [1] |
Fair Value, Inputs, Level 2 | ' | ' | ||
Financial assets: | ' | ' | ||
Loans held for sale | 1,255 | [1] | 8,603 | [1] |
Loans, net | 0 | [1] | 0 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 36,535 | [1] | 26,553 | [1] |
Junior subordinated debentures | 0 | [1] | 0 | [1] |
Fair Value, Inputs, Level 3 | ' | ' | ||
Financial assets: | ' | ' | ||
Loans held for sale | 0 | [1] | 0 | [1] |
Loans, net | 1,516,809 | [1] | 1,355,893 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 0 | [1] | 0 | [1] |
Junior subordinated debentures | 11,358 | [1] | 12,597 | [1] |
Fair Value | ' | ' | ||
Financial assets: | ' | ' | ||
Loans held for sale | 1,255 | [1] | 8,603 | [1] |
Loans, net | 1,516,809 | [1] | 1,355,893 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 36,535 | [1] | 26,553 | [1] |
Junior subordinated debentures | 11,358 | [1] | 12,597 | [1] |
Carrying Amount | ' | ' | ||
Financial assets: | ' | ' | ||
Loans held for sale | 1,255 | [1] | 8,557 | [1] |
Loans, net | 1,497,089 | [1] | 1,335,401 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 36,534 | [1] | 26,540 | [1] |
Junior subordinated debentures | 10,825 | [1] | 10,825 | [1] |
Certificates of Deposit | Fair Value, Inputs, Level 1 | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | 0 | [1] | 0 | [1] |
Certificates of Deposit | Fair Value, Inputs, Level 2 | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | 250,045 | [1] | 231,687 | [1] |
Certificates of Deposit | Fair Value, Inputs, Level 3 | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | 0 | [1] | 0 | [1] |
Certificates of Deposit | Fair Value | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | 250,045 | [1] | 231,687 | [1] |
Certificates of Deposit | Carrying Amount | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | $251,650 | [1] | $231,198 | [1] |
[1] | Excluded from this table are certain financial instruments that approximated their fair value, as they were short-term in nature or payable on demand. These include cash and cash equivalents, accrued interest receivable, non-term deposit accounts, and accrued interest payable. The respective carrying values of these instruments would all be considered to be classified within Level 1 of their fair value hierarchy. |
Parent_Company_Only_Financial_2
Parent Company Only Financial Statements - Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2000 |
In Thousands, unless otherwise specified | |||||
Assets | ' | ' | ' | ' | ' |
Cash | $53,733 | $52,735 | $39,131 | $55,006 | ' |
Total assets | 1,849,925 | 1,665,726 | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' |
Junior subordinated debentures | 10,825 | 10,825 | 10,825 | ' | 10,825 |
Accrued interest payable | 565 | 603 | ' | ' | ' |
Other liabilities | 14,675 | 13,182 | ' | ' | ' |
Total liabilities | 1,698,591 | 1,526,177 | ' | ' | ' |
Stockholders' Equity | ' | ' | ' | ' | ' |
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 | ' | ' | ' |
Common stock $0.01 par value per share; 20,000,000 shares authorized; 9,992,560 issued and outstanding at December 31, 2013 (including 170,365 shares of unvested participating restricted awards) and 9,676,477 shares issued and outstanding at December 31, 2012 (including 154,186 shares of unvested participating restricted awards) | 100 | 97 | ' | ' | ' |
Additional paid-in capital | 52,936 | 48,194 | ' | ' | ' |
Retained earnings | 96,153 | 87,159 | ' | ' | ' |
Accumulated other comprehensive income | 2,145 | 4,099 | ' | ' | ' |
Total stockholders’ equity | 151,334 | 139,549 | 127,448 | 116,673 | ' |
Total liabilities and stockholders’ equity | 1,849,925 | 1,665,726 | ' | ' | ' |
Parent | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' |
Cash | 729 | 542 | 401 | 181 | ' |
Investment in subsidiaries | 161,580 | 149,963 | ' | ' | ' |
Other assets | 233 | 242 | ' | ' | ' |
Total assets | 162,542 | 150,747 | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' |
Junior subordinated debentures | 10,825 | 10,825 | ' | ' | ' |
Accrued interest payable | 370 | 370 | ' | ' | ' |
Other liabilities | 13 | 3 | ' | ' | ' |
Total liabilities | 11,208 | 11,198 | ' | ' | ' |
Stockholders' Equity | ' | ' | ' | ' | ' |
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 | ' | ' | ' |
Common stock $0.01 par value per share; 20,000,000 shares authorized; 9,992,560 issued and outstanding at December 31, 2013 (including 170,365 shares of unvested participating restricted awards) and 9,676,477 shares issued and outstanding at December 31, 2012 (including 154,186 shares of unvested participating restricted awards) | 100 | 97 | ' | ' | ' |
Additional paid-in capital | 52,936 | 48,194 | ' | ' | ' |
Retained earnings | 96,153 | 87,159 | ' | ' | ' |
Accumulated other comprehensive income | 2,145 | 4,099 | ' | ' | ' |
Total stockholders’ equity | 151,334 | 139,549 | ' | ' | ' |
Total liabilities and stockholders’ equity | $162,542 | $150,747 | ' | ' | ' |
Parent_Company_Only_Financial_3
Parent Company Only Financial Statements - Income Statement (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | $1,313 | $1,313 | $1,331 | $1,374 | $1,438 | $1,534 | $1,676 | $1,847 | $5,331 | $6,495 | $8,643 |
Income before income taxes | 5,137 | 5,437 | 4,685 | 5,221 | 4,774 | 4,823 | 4,341 | 4,785 | 20,480 | 18,723 | 16,105 |
Provision for (benefit from) income tax | 1,653 | 1,904 | 1,606 | 1,788 | 1,540 | 1,760 | 1,436 | 1,612 | 6,951 | 6,348 | 5,161 |
Net income | 3,484 | 3,533 | 3,079 | 3,433 | 3,234 | 3,063 | 2,905 | 3,173 | 13,529 | 12,375 | 10,944 |
Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in undistributed net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 13,571 | 10,910 | 9,356 |
Dividend distributed by subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 950 | 2,350 | 3,000 |
Total income | ' | ' | ' | ' | ' | ' | ' | ' | 14,521 | 13,260 | 12,356 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,177 | 1,177 | 1,177 |
Other operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 225 | 171 | 225 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,402 | 1,348 | 1,402 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 13,119 | 11,912 | 10,954 |
Provision for (benefit from) income tax | ' | ' | ' | ' | ' | ' | ' | ' | -410 | -463 | 10 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $13,529 | $12,375 | $10,944 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Statements - Cash Flows (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 1989 |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income | $13,529 | $12,375 | $10,944 | ' |
Changes in: | ' | ' | ' | ' |
Net cash provided by operating activities | 35,784 | 13,956 | 20,453 | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Cash dividends paid | -4,535 | -4,215 | -3,945 | ' |
Proceeds from issuance of common stock | 1,239 | 1,274 | 1,254 | 15,500 |
Proceeds from exercise of stock options | 1,829 | 509 | 309 | ' |
Tax benefit from exercise of stock options | 25 | 2 | 4 | ' |
Net cash used in financing activities | 169,517 | 161,485 | 75,662 | ' |
Net increase in cash and cash equivalents | 998 | 13,604 | -15,875 | ' |
Cash and cash equivalents, beginning of year | 52,735 | 39,131 | 55,006 | ' |
Cash and cash equivalents, end of year | 53,733 | 52,735 | 39,131 | ' |
Parent | ' | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income | 13,529 | 12,375 | 10,944 | ' |
Adjustments to reconcile net income to net cash | ' | ' | ' | ' |
Equity in undistributed net income of subsidiaries | -13,571 | -10,910 | -9,356 | ' |
Payment from subsidiary bank for stock compensation expense | 1,652 | 1,253 | 1,003 | ' |
Changes in: | ' | ' | ' | ' |
Other assets | 9 | -145 | 5 | ' |
Other liabilities | 10 | -2 | 2 | ' |
Net cash provided by operating activities | 1,629 | 2,571 | 2,598 | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Cash dividends paid | -4,535 | -4,215 | -3,945 | ' |
Proceeds from issuance of common stock | 1,239 | 1,274 | 1,254 | ' |
Proceeds from exercise of stock options | 1,829 | 509 | 309 | ' |
Tax benefit from exercise of stock options | 25 | 2 | 4 | ' |
Net cash used in financing activities | -1,442 | -2,430 | -2,378 | ' |
Net increase in cash and cash equivalents | 187 | 141 | 220 | ' |
Cash and cash equivalents, beginning of year | 542 | 401 | 181 | ' |
Cash and cash equivalents, end of year | $729 | $542 | $401 | ' |
Parent_Company_Only_Financial_5
Parent Company Only Financial Statements - Parent Balance Sheet Parenthetical (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,992,560 | 9,676,477 |
Common stock, shares outstanding | 9,992,560 | 9,676,477 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Unvested participating restricted stock awards | 170,365 | 154,186 |
Parent | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,992,560 | 9,676,477 |
Common stock, shares outstanding | 9,992,560 | 9,676,477 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Unvested participating restricted stock awards | 170,365 | 154,186 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and dividend income | $18,525 | $17,946 | $17,458 | $17,193 | $17,360 | $17,182 | $17,087 | $16,776 | $71,122 | $68,405 | $66,969 |
Interest expense | 1,313 | 1,313 | 1,331 | 1,374 | 1,438 | 1,534 | 1,676 | 1,847 | 5,331 | 6,495 | 8,643 |
Net interest income | 17,212 | 16,633 | 16,127 | 15,819 | 15,922 | 15,648 | 15,411 | 14,929 | 65,791 | 61,910 | 58,326 |
Provision for loan losses | 1,379 | 583 | 534 | 783 | 600 | 800 | 1,050 | 300 | 3,279 | 2,750 | 5,197 |
Net interest income after provision for loan losses | 15,833 | 16,050 | 15,593 | 15,036 | 15,322 | 14,848 | 14,361 | 14,629 | 62,512 | 59,160 | 53,129 |
Non-interest income | 3,224 | 3,085 | 3,085 | 3,159 | 3,225 | 2,947 | 2,840 | 2,927 | ' | ' | ' |
Net gains on sales of investment securities | 208 | 83 | 468 | 480 | 39 | 38 | 112 | 47 | 1,239 | 236 | 791 |
Non-interest expense | 14,128 | 13,781 | 14,461 | 13,454 | 13,812 | 13,010 | 12,972 | 12,818 | 55,824 | 52,612 | 48,966 |
Income before income taxes | 5,137 | 5,437 | 4,685 | 5,221 | 4,774 | 4,823 | 4,341 | 4,785 | 20,480 | 18,723 | 16,105 |
Provision for income taxes | 1,653 | 1,904 | 1,606 | 1,788 | 1,540 | 1,760 | 1,436 | 1,612 | 6,951 | 6,348 | 5,161 |
Net income | $3,484 | $3,533 | $3,079 | $3,433 | $3,234 | $3,063 | $2,905 | $3,173 | $13,529 | $12,375 | $10,944 |
Basic earnings per share | $0.35 | $0.36 | $0.31 | $0.35 | $0.34 | $0.32 | $0.30 | $0.33 | $1.37 | $1.29 | $1.16 |
Diluted earnings per share | $0.35 | $0.35 | $0.31 | $0.35 | $0.33 | $0.32 | $0.30 | $0.33 | $1.36 | $1.28 | $1.16 |