Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 04, 2014 | |
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-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 10,138,268 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ' | ' |
Cash and due from banks | $51,637 | $41,362 |
Interest-earning deposits | 17,114 | 10,153 |
Fed funds sold | 0 | 2,218 |
Total cash and cash equivalents | 68,751 | 53,733 |
Investment securities at fair value | 214,845 | 215,369 |
Federal Home Loan Bank Stock | 3,357 | 4,324 |
Loans held for sale | 2,431 | 1,255 |
Loans, less allowance for loan losses of $26,528 at June 30, 2014 and $26,967 at December 31, 2013 | 1,564,875 | 1,497,089 |
Premises and equipment | 29,193 | 29,891 |
Accrued interest receivable | 6,101 | 6,186 |
Deferred income taxes, net | 12,984 | 13,927 |
Bank-owned life insurance | 16,116 | 15,902 |
Prepaid income taxes | 840 | 443 |
Prepaid expenses and other assets | 8,099 | 6,150 |
Goodwill | 5,656 | 5,656 |
Total assets | 1,933,248 | 1,849,925 |
Liabilities | ' | ' |
Deposits | 1,746,794 | 1,635,992 |
Borrowed funds | 484 | 36,534 |
Junior subordinated debentures | 10,825 | 10,825 |
Accrued expenses and other liabilities | 15,092 | 14,675 |
Accrued interest payable | 551 | 565 |
Total liabilities | 1,773,746 | 1,698,591 |
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; 10,137,443 shares issued and outstanding at June 30, 2014 (including 160,521 shares of unvested participating restricted awards) and 9,992,560 shares issued and outstanding at December 31, 2013 (including 170,365 shares of unvested participating restricted awards) | 101 | 100 |
Additional paid-in-capital | 55,068 | 52,936 |
Retained earnings | 100,558 | 96,153 |
Accumulated other comprehensive income | 3,775 | 2,145 |
Total stockholders' equity | 159,502 | 151,334 |
Total liabilities and stockholders' equity | $1,933,248 | $1,849,925 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for loan losses | $26,528 | $26,967 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 10,137,443 | 9,992,560 |
Common stock, shares outstanding | 10,137,443 | 9,992,560 |
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 | 160,521 | 170,365 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest and dividend income: | ' | ' | ' | ' |
Loans and loans held for sale | $17,707 | $16,653 | $34,883 | $33,026 |
Investment securities | 1,051 | 794 | 2,073 | 1,604 |
Other interest-earning assets | 22 | 11 | 55 | 21 |
Total interest and dividend income | 18,780 | 17,458 | 37,011 | 34,651 |
Interest expense: | ' | ' | ' | ' |
Deposits | 1,025 | 996 | 2,026 | 2,030 |
Borrowed funds | 8 | 40 | 30 | 86 |
Junior subordinated debentures | 295 | 295 | 589 | 589 |
Total interest expense | 1,328 | 1,331 | 2,645 | 2,705 |
Net interest income | 17,452 | 16,127 | 34,366 | 31,946 |
Provision for loan losses | 200 | 534 | 400 | 1,317 |
Net interest income after provision for loan losses | 17,252 | 15,593 | 33,966 | 30,629 |
Non-interest income: | ' | ' | ' | ' |
Investment advisory fees | 1,145 | 1,045 | 2,249 | 2,061 |
Deposit and interchange fees | 1,261 | 1,181 | 2,459 | 2,289 |
Income on bank-owned life insurance,net | 106 | 119 | 214 | 235 |
Net gains on sales of investment securities | 127 | 468 | 615 | 948 |
Gains on sales of loans | 75 | 222 | 148 | 557 |
Other income | 550 | 518 | 1,058 | 1,102 |
Total non-interest income | 3,264 | 3,553 | 6,743 | 7,192 |
Non-interest expense: | ' | ' | ' | ' |
Salaries and employee benefits | 9,324 | 8,651 | 18,398 | 16,699 |
Occupancy and equipment expenses | 1,597 | 1,488 | 3,293 | 3,059 |
Technology and telecommunications expenses | 1,334 | 1,203 | 2,596 | 2,356 |
Advertising and public relations expenses | 771 | 946 | 1,357 | 1,566 |
Audit, legal and other professional fees | 492 | 411 | 841 | 825 |
Deposit insurance premiums | 289 | 284 | 554 | 533 |
Supplies and postage expenses | 255 | 250 | 519 | 487 |
Investment advisory and custodial expenses | 128 | 134 | 266 | 260 |
Other operating expenses | 1,255 | 1,094 | 2,446 | 2,130 |
Total non-interest expense | 15,445 | 14,461 | 30,270 | 27,915 |
Income before income taxes | 5,071 | 4,685 | 10,439 | 9,906 |
Provision for income taxes | 1,757 | 1,606 | 3,619 | 3,394 |
Net income | $3,314 | $3,079 | $6,820 | $6,512 |
Basic earnings per share | $0.33 | $0.31 | $0.68 | $0.67 |
Diluted earnings per share | $0.32 | $0.31 | $0.67 | $0.66 |
Basic weighted average common shares outstanding | 10,124,372 | 9,825,335 | 10,077,502 | 9,770,559 |
Diluted weighted average common shares outstanding | 10,204,976 | 9,889,639 | 10,162,187 | 9,840,016 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $3,314 | $3,079 | $6,820 | $6,512 |
Other comprehensive income (loss), net of taxes: | ' | ' | ' | ' |
Gross unrealized holding gains (losses) on investments arising during the period | 1,700 | -2,744 | 3,188 | -2,386 |
Income tax (expense) benefit | -620 | 999 | -1,162 | 884 |
Net unrealized holding gains (losses), net of tax | 1,080 | -1,745 | 2,026 | -1,502 |
Less: Reclassification adjustment for net gains included in net income | ' | ' | ' | ' |
Net realized gains on sales of securities during the period | 127 | 468 | 615 | 948 |
Income tax expense | -49 | -163 | -219 | -339 |
Reclassification adjustment for gains realized, net of tax | 78 | 305 | 396 | 609 |
Total other comprehensive income (loss) | 1,002 | -2,050 | 1,630 | -2,111 |
Comprehensive income | $4,316 | $1,029 | $8,450 | $4,401 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
In Thousands, unless otherwise specified | |||||
Balance, beginning at Dec. 31, 2013 | $151,334 | $100 | $52,936 | $96,153 | $2,145 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 6,820 | ' | ' | 6,820 | ' |
Other comprehensive income, net | 1,630 | ' | ' | ' | 1,630 |
Tax benefit from exercise of stock options | 3 | ' | 3 | ' | ' |
Common stock dividend paid ($0.24 per share) | -2,415 | ' | ' | -2,415 | ' |
Common stock issued under dividend reinvestment plan | 609 | 0 | 609 | ' | ' |
Stock-based compensation | 974 | 1 | 973 | ' | ' |
Stock options exercised, net | 547 | 0 | 547 | ' | ' |
Balance, ending at Jun. 30, 2014 | $159,502 | $101 | $55,068 | $100,558 | $3,775 |
Consolidated_Statement_of_Chan1
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ' |
Common stock dividend paid, per share | $0.24 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $6,820 | $6,512 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | 400 | 1,317 |
Depreciation and amortization | 2,756 | 2,458 |
Stock-based compensation expense | 916 | 859 |
Mortgage loans originated for sale | -7,806 | -25,274 |
Proceeds from mortgage loans sold | 6,778 | 30,471 |
Net gains on sales of loans | -148 | -557 |
Net gains on sales of OREO | 0 | -121 |
Net gains on sales of investments | -615 | -948 |
Income on bank-owned life insurance,net | -214 | -235 |
Changes in: | ' | ' |
Accrued interest receivable | 85 | -264 |
Prepaid expenses and other assets | -2,375 | 1,802 |
Accrued expenses and other liabilities | -363 | -1,319 |
Accrued interest payable | -14 | -24 |
Net cash provided by operating activities | 6,220 | 14,677 |
Cash flows from investing activities: | ' | ' |
Proceeds from sales of investment securities available for sale | 21,415 | 7,361 |
Net proceeds (purchases) from FHLB capital stock | 967 | -64 |
Proceeds from maturities, calls and pay-downs of investment securities | 23,773 | 8,040 |
Purchase of investment securities | -41,273 | -19,297 |
Net increase in loans | -68,186 | -87,759 |
Additions to premises and equipment, net | -1,394 | -3,332 |
Proceeds from OREO sales and payments | 0 | 652 |
Net cash used in investing activities | -64,698 | -94,399 |
Cash flows from financing activities: | ' | ' |
Net increase in deposits | 110,802 | 104,266 |
Net decrease in borrowed funds | -36,050 | -24,660 |
Cash dividends paid | -2,415 | -2,244 |
Proceeds from issuance of common stock | 609 | 630 |
Proceeds from the exercise of stock options | 547 | 716 |
Tax benefit from the exercise of stock options | 3 | 7 |
Net cash provided by financing activities | 73,496 | 78,715 |
Net increase (decrease) in cash and cash equivalents | 15,018 | -1,007 |
Cash and cash equivalents at beginning of period | 53,733 | 52,735 |
Cash and cash equivalents at end of period | 68,751 | 51,728 |
Supplemental financial data: | ' | ' |
Cash Paid For: Interest | 2,659 | 2,729 |
Cash Paid For: Income Taxes | 3,995 | 4,583 |
Supplemental schedule of non-cash investing activity: | ' | ' |
Purchases of investment securities not yet settled | -1,541 | -4,978 |
Transfer from loans to other real estate owned | $0 | $167 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
(a) Organization of Holding Company and Basis of Presentation | |
The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2013 audited consolidated financial statements and notes thereto contained in the 2013 Annual Report on Form 10-K of Enterprise Bancorp, Inc. (the “Company” or “Enterprise”), a Massachusetts corporation, as filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2014. The Company has not changed its reporting policies from those disclosed in its 2013 Annual Report on Form 10-K. | |
The Company's unaudited consolidated interim financial statements 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 (the “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 Division also retains supervisory jurisdiction over the Company. | |
The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions for Form 10-Q through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying unaudited consolidated interim 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 unaudited consolidated interim financial statements. Interim results are not necessarily indicative of results to be expected for the entire year. | |
(b) Critical Accounting Estimates | |
In preparing the consolidated financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These estimates and assumptions affect the reported values of assets and liabilities as of the balance sheet date and income and expenses for the period 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. | |
As discussed in the Company’s 2013 Annual Report on Form 10-K, the three most significant areas in which management applies critical assumptions and estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. Refer to Note 1,“Summary of Significant Accounting Policies,” to the Company’s consolidated financial statements included in the Company’s 2013 Annual Report on Form 10-K for significant accounting policies. The Company has not changed its significant accounting policies from those disclosed in its 2013 Annual Report filed on Form 10-K. | |
(c) 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.” | |
(d) Restricted Investments | |
As a member of the Federal Home Loan Bank of Boston (“FHLB”), the Company is required to purchase certain levels of FHLB capital stock in association with the Company’s borrowing relationship from the FHLB. This stock is classified as a restricted investment and carried at cost, which management believes approximates fair value. FHLB stock represents the only restricted investment held by the Company. | |
In conjunction with the other-than-temporary-impairment (“OTTI”) review on available-for-sale investments (See Note 2, "Investments," for additional information), 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. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. | |
(e) 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 income tax provisions will differ from the expense that would result from applying the federal statutory rate to income before taxes, primarily due to the impact of tax exempt interest from certain investment securities, loans and bank owned life insurance. | |
The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at June 30, 2014. The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2007 through 2013 tax years. | |
(f) Recent Accounting Pronouncements | |
In January 2014, FASB issued 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. 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. The amendments in this Update are to be applied retrospectively to all periods presented. 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, on the effective date, is not expected to have a material impact on the Company's financial statements, or results of operations. |
Investments
Investments | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||
The amortized cost and carrying values of investment securities at the dates specified are summarized as follows: | ||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||
cost | gains | losses | ||||||||||||||||||||||||||
Federal agency obligations (1) | $ | 31,851 | $ | 121 | $ | 5 | $ | 31,967 | ||||||||||||||||||||
Federal agency mortgage backed securities (MBS) (1) | 95,576 | 740 | 886 | 95,430 | ||||||||||||||||||||||||
Municipal securities | 64,688 | 2,040 | 102 | 66,626 | ||||||||||||||||||||||||
Corporate bonds | 6,046 | 69 | 18 | 6,097 | ||||||||||||||||||||||||
Total fixed income securities | 198,161 | 2,970 | 1,011 | 200,120 | ||||||||||||||||||||||||
Equity investments | 10,893 | 3,836 | 4 | 14,725 | ||||||||||||||||||||||||
Total available for sale securities, at fair value | $ | 209,054 | $ | 6,806 | $ | 1,015 | $ | 214,845 | ||||||||||||||||||||
December 31, 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 securities, at fair value | $ | 212,152 | $ | 5,374 | $ | 2,157 | $ | 215,369 | ||||||||||||||||||||
__________________________________________ | ||||||||||||||||||||||||||||
-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, or one of several Federal Home Loan Banks. All agency MBS/Collateralized Mortgage Obligations ("CMOs") investments owned by the Company are backed by residential mortgages. | |||||||||||||||||||||||||||
Included in the carrying amount of the federal agency MBS category were CMOs totaling $15.4 million and $17.4 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||
At June 30, 2014, the equity portfolio consisted primarily of investments in a diversified group of mutual funds, with a small portion of the portfolio (approximately 15%) invested in individual common stock of entities in the financial services industry. | ||||||||||||||||||||||||||||
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 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 a fixed income investment 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. | ||||||||||||||||||||||||||||
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 six months ended June 30, 2014 and 2013, the Company did not record any fair value impairment charges on its investments. As of June 30, 2014, there were a total of 41 investments (fixed income and equity), with a fair market value of $46.2 million, in an unrealized loss position totaling $1.0 million, including unrealized losses of $985 thousand that have been temporarily impaired for 12 months or longer. 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 June 30, 2014, because (1) the decline in market value is not attributable to credit quality for fixed income securities or a fundamental deterioration in the equity fund or issuers, and (2) 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 and federal agency obligations, 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 quality 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. At June 30, 2014, the Company's corporate and municipal bond portfolios did not contain any securities below investment grade, as reported by major credit rating agencies. 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 at June 30, 2014 of total fixed income investments is as follows: | ||||||||||||||||||||||||||||
Within One Year | After One, But Within | After Five, But Within | After Ten Years | |||||||||||||||||||||||||
Five Years | Ten Years | |||||||||||||||||||||||||||
Amortized | Yields | Amortized | Yields | Amortized | Yields | Amortized | Yields | |||||||||||||||||||||
Cost | Cost | Cost | Cost | |||||||||||||||||||||||||
At amortized cost: | ||||||||||||||||||||||||||||
Federal agency obligations | $ | 7,011 | 0.79 | % | $ | 20,997 | 1.3 | % | $ | 3,843 | 2.09 | % | $ | — | — | % | ||||||||||||
MBS | 11 | 1.42 | % | 2,706 | 2.48 | % | 6,454 | 3 | % | 86,405 | 2.18 | % | ||||||||||||||||
Municipal securities | 4,195 | 2.02 | % | 21,531 | 2.86 | % | 28,860 | 4.35 | % | 10,102 | 5.59 | % | ||||||||||||||||
Corporate bonds | 101 | 1.26 | % | 4,195 | 1.6 | % | 1,750 | 2.99 | % | — | — | % | ||||||||||||||||
Total fixed income securities | $ | 11,318 | 1.25 | % | $ | 49,429 | 2.07 | % | $ | 40,907 | 3.86 | % | $ | 96,507 | 2.54 | % | ||||||||||||
At fair value: | ||||||||||||||||||||||||||||
Total fixed income securities | $ | 11,364 | $ | 50,145 | $ | 42,006 | $ | 96,605 | ||||||||||||||||||||
Scheduled contractual maturities may not reflect the actual maturities of the investments. 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 totaling $37.5 million, which can be redeemed by the issuer prior to the maturity presented above. Management considers these early payment factors when evaluating the interest rate risk 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, and for borrowing capacity with the FHLB and the Federal Reserve Bank of Boston (the "FRB"). The fair value of securities pledged as collateral for these purposes was $200.1 million at June 30, 2014. | ||||||||||||||||||||||||||||
See Note 8, “Fair Value Measurements” below for further information regarding the Company’s fair value measurements for available-for-sale securities. |
Loans
Loans | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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) | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Commercial real estate | $ | 838,715 | $ | 820,299 | |||||
Commercial and industrial | 385,991 | 357,056 | |||||||
Commercial construction | 144,553 | 132,507 | |||||||
Total commercial loans | 1,369,259 | 1,309,862 | |||||||
Residential mortgages | 139,134 | 132,721 | |||||||
Home equity loans and lines | 76,234 | 74,354 | |||||||
Consumer | 8,286 | 8,643 | |||||||
Total retail loans | 223,654 | 215,718 | |||||||
Gross loans | 1,592,913 | 1,525,580 | |||||||
Deferred loan origination fees, net | (1,510 | ) | (1,524 | ) | |||||
Total loans | 1,591,403 | 1,524,056 | |||||||
Allowance for loan losses | (26,528 | ) | (26,967 | ) | |||||
Net loans | $ | 1,564,875 | $ | 1,497,089 | |||||
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 and multi-family apartment buildings, office or mixed-use facilities, strip shopping centers, or other commercial property 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"), 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 variable rate loans and lines with interest rates that are periodically adjusted 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 $47.7 million at June 30, 2014 and $34.5 million at December 31, 2013. | |||||||||
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, 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 amount of overdrawn deposit accounts are reclassified as loan balances. | |||||||||
Loans serviced for others | |||||||||
At June 30, 2014 and December 31, 2013, the Company was servicing residential mortgage loans owned by investors amounting to $19.9 million and $20.6 million, respectively. Additionally, the Company was servicing commercial loans participated out to various other institutions amounting to $48.3 million and $52.1 million at June 30, 2014 and December 31, 2013, 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 are summarized below: | |||||||||
(Dollars in thousands) | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Commercial real estate | $ | 298,401 | $ | 320,908 | |||||
Residential mortgages | 102,464 | 97,626 | |||||||
Home equity | 16,994 | 17,548 | |||||||
Total loans pledged to FHLB | $ | 417,859 | $ | 436,082 | |||||
Allowance_For_Loan_Loss
Allowance For Loan Loss | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Allowance for Loan Loss | ' | ||||||||||||||||||||||||||||
Allowance for Loan Loss | |||||||||||||||||||||||||||||
While the 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, and 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, 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, and impaired loans and the low level of Other Real Estate Owned ("OREO") properties held during the quarter ended June 30, 2014. 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 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; and, borrower cash flow is insufficient to meet required debt service specified in 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 Company's credit risk profile for each class of loan in its portfolio by internally assigned risk rating category at the periods indicated. | |||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||
Adversely Classified | Not Adversely | ||||||||||||||||||||||||||||
(Dollars in thousands) | Substandard | Doubtful | Loss | Classified | Gross Loans | ||||||||||||||||||||||||
Commercial real estate | $ | 11,993 | $ | 1,227 | $ | 111 | $ | 825,384 | $ | 838,715 | |||||||||||||||||||
Commercial and industrial | 8,804 | 57 | 61 | 377,069 | 385,991 | ||||||||||||||||||||||||
Commercial construction | 3,370 | — | — | 141,183 | 144,553 | ||||||||||||||||||||||||
Residential | 1,599 | — | — | 137,535 | 139,134 | ||||||||||||||||||||||||
Home equity | 573 | 27 | — | 75,634 | 76,234 | ||||||||||||||||||||||||
Consumer | 47 | — | — | 8,239 | 8,286 | ||||||||||||||||||||||||
Total gross loans | $ | 26,386 | $ | 1,311 | $ | 172 | $ | 1,565,044 | $ | 1,592,913 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Adversely Classified | Not Adversely | ||||||||||||||||||||||||||||
(Dollars in thousands) | Substandard | Doubtful | Loss | Classified | Gross Loans | ||||||||||||||||||||||||
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 | |||||||||||||||||||
The minor shift in adversely classified loan balances amongst the categories since the prior period was due to a variety of activity including: credit rating upgrades, primarily in commercial real estate; payoffs; the foreclosure sale of underlying collateral with payoff on a larger commercial real estate relationship; and charge-offs, primarily commercial real estate and C&I loans; partially offset by additional credit downgrades, particularly in residential mortgage loans 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 tables present age analysis of past due loans as of the dates indicated. | |||||||||||||||||||||||||||||
Balance at June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Loans 90 or | Total Past | Current Loans | Gross | |||||||||||||||||||||||
30-59 Days | 60-89 Days | More Days | Due Loans | Loans | |||||||||||||||||||||||||
Past Due | Past Due | Past Due (non- | |||||||||||||||||||||||||||
accrual) | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,554 | $ | 1,590 | $ | 10,131 | $ | 16,275 | $ | 822,440 | $ | 838,715 | |||||||||||||||||
Commercial and industrial | 1,470 | 399 | 5,045 | 6,914 | 379,077 | 385,991 | |||||||||||||||||||||||
Commercial construction | 185 | — | 1,053 | 1,238 | 143,315 | 144,553 | |||||||||||||||||||||||
Residential | 1,789 | — | 1,224 | 3,013 | 136,121 | 139,134 | |||||||||||||||||||||||
Home equity | 310 | — | 381 | 691 | 75,543 | 76,234 | |||||||||||||||||||||||
Consumer | 30 | 13 | 120 | 163 | 8,123 | 8,286 | |||||||||||||||||||||||
Total gross loans | $ | 8,338 | $ | 2,002 | $ | 17,954 | $ | 28,294 | $ | 1,564,619 | $ | 1,592,913 | |||||||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Loans 90 or | Total Past | Current Loans | Gross Loans | |||||||||||||||||||||||
30-59 Days | 60-89 Days | More Days | Due Loans | ||||||||||||||||||||||||||
Past Due | Past Due | Past Due (non- | |||||||||||||||||||||||||||
accrual) | |||||||||||||||||||||||||||||
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 | |||||||||||||||||
At June 30, 2014 and December 31, 2013, all loans 90 days or more past due were carried as non-accrual. Included in the consumer non-accrual numbers in the table above were $105 thousand and $3 thousand of overdraft deposit account balances 90 days or more past due at June 30, 2014 and December 31, 2013, respectively. Total non-performing loans amounted to $18.0 million and $18.3 million at June 30, 2014 and December 31, 2013, respectively. Non-accrual loans which were not adversely classified amounted to $267 thousand at June 30, 2014 and $577 thousand at December 31, 2013. 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 noted, and are discussed further below. The increase in loans 30-59 days past due occurred primarily within the commercial real estate and commercial and industrial portfolios at June 30, 2014, with the majority of these loans having subsequent payments made by mid-July. | |||||||||||||||||||||||||||||
The ratio of non-accrual loans to total loans amounted to 1.13% at June 30, 2014, 1.20% at December 31, 2013, and 1.49% at June 30, 2013. | |||||||||||||||||||||||||||||
At June 30, 2014, additional funding commitments for loans on non-accrual status totaled $1.0 million. 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. | |||||||||||||||||||||||||||||
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 the 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 troubled debt restructured ("TDR") loans. 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, consistent with the criteria for returning non-accrual loans to accrual status, 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 in Note 4 “Allowance For Loan Losses,” to the Company’s consolidated financial statements contained in the Company’s 2013 Annual Report on Form 10-K for further discussion of management’s methodology used to estimate specific reserves for impaired loans. | |||||||||||||||||||||||||||||
Total impaired loans amounted to $28.9 million and $29.8 million, at June 30, 2014 and December 31, 2013, respectively. Total accruing impaired loans amounted to $11.6 million and $11.9 million at June 30, 2014 and December 31, 2013, respectively, while non-accrual impaired loans amounted to $17.3 million and $17.9 million as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||
The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated as of the dated indicated. | |||||||||||||||||||||||||||||
Balance at June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related specific | ||||||||||||||||||||||||
contractual | investment in | investment | investment | allowance | |||||||||||||||||||||||||
principal balance | impaired loans | with no | with | ||||||||||||||||||||||||||
allowance | allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 16,284 | $ | 14,210 | $ | 13,495 | $ | 715 | $ | 191 | |||||||||||||||||||
Commercial and industrial | 11,603 | 10,041 | 4,342 | 5,699 | 1,632 | ||||||||||||||||||||||||
Commercial construction | 3,411 | 3,287 | 1,410 | 1,877 | 827 | ||||||||||||||||||||||||
Residential | 1,100 | 1,040 | 356 | 684 | 171 | ||||||||||||||||||||||||
Home equity | 306 | 302 | 94 | 208 | 52 | ||||||||||||||||||||||||
Consumer | 28 | 28 | 1 | 27 | 27 | ||||||||||||||||||||||||
Total | $ | 32,732 | $ | 28,908 | $ | 19,698 | $ | 9,210 | $ | 2,900 | |||||||||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related specific | ||||||||||||||||||||||||
contractual | investment in | investment | investment | allowance | |||||||||||||||||||||||||
principal balance | impaired loans | with no | with | ||||||||||||||||||||||||||
allowance | 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 reduction in related specific reserves on impaired loans was due primarily to increases in estimated current realizable collateral values and current charge-offs of previously allocated specific reserves on commercial relationships for which management deemed collectability of amounts due was unlikely based on current realizable collateral values. | |||||||||||||||||||||||||||||
The following table presents the average recorded investment in impaired loans and the related interest recognized during the three month periods indicated. | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | |||||||||||||||||||||||||
investment | recognized | investment | recognized | ||||||||||||||||||||||||||
Commercial real estate | 13,357 | 44 | 17,868 | 51 | |||||||||||||||||||||||||
Commercial and industrial | 10,337 | 42 | 9,252 | 24 | |||||||||||||||||||||||||
Commercial construction | 3,249 | 26 | 2,906 | 9 | |||||||||||||||||||||||||
Residential | 1,043 | 3 | 804 | 3 | |||||||||||||||||||||||||
Home equity | 294 | — | 109 | — | |||||||||||||||||||||||||
Consumer | 27 | — | 19 | — | |||||||||||||||||||||||||
Total | $ | 28,307 | $ | 115 | $ | 30,958 | $ | 87 | |||||||||||||||||||||
The following table presents the average recorded investment in impaired loans and the related interest recognized during the six month periods indicated. | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | |||||||||||||||||||||||||
investment | recognized | investment | recognized | ||||||||||||||||||||||||||
Commercial real estate | $ | 13,758 | $ | 94 | $ | 20,155 | $ | 149 | |||||||||||||||||||||
Commercial and industrial | 10,583 | 80 | 9,427 | 54 | |||||||||||||||||||||||||
Commercial construction | 3,277 | 52 | 2,902 | 33 | |||||||||||||||||||||||||
Residential | 901 | 3 | 807 | 4 | |||||||||||||||||||||||||
Home equity | 201 | — | 124 | — | |||||||||||||||||||||||||
Consumer | 25 | — | 16 | — | |||||||||||||||||||||||||
Total | $ | 28,745 | $ | 229 | $ | 33,431 | $ | 240 | |||||||||||||||||||||
At June 30, 2014, additional funding commitments for impaired loans totaled $1.0 million. 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 not otherwise be considered, as a result of financial difficulties of the borrower. Typically, such concessions may 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. TDR loans are included in the impaired loan category and, as such, these loans are individually 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 June 30, 2014 and December 31, 2013, were $19.5 million and $20.9 million, respectively. TDR loans on accrual status amounted to $11.2 million and $11.4 million at June 30, 2014 and December 31, 2013, respectively. TDR loans included in non-performing loans amounted to $8.4 million and $9.5 million at June 30, 2014 and December 31, 2013, respectively. The Company continues to work with commercial relationships and enters into loan modifications to the extent deemed to be necessary or appropriate while attempting to achieve the best mutual outcome given the current economic environment. | |||||||||||||||||||||||||||||
At June 30, 2014, additional funding commitments for TDR loans totaled $52 thousand. The Company's obligation to fulfill the additional funding commitments on TDR 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. | |||||||||||||||||||||||||||||
Loans modified as trouble debt restructurings during the three month period ended June 30, 2014 are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial and industrial | 4 | 159 | 157 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | 1 | 125 | 124 | ||||||||||||||||||||||||||
Home equity | 1 | 73 | 73 | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 6 | $ | 357 | $ | 354 | ||||||||||||||||||||||||
Loans modified as troubled debt restructurings within the preceding twelve month period for which there was a subsequent payment default during the periods noted are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 1 | 66 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 1 | $ | 66 | ||||||||||||||||||||||||||
Loans modified as troubled debt restructurings during the six month period ended June 30, 2014 are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 450 | $ | 434 | ||||||||||||||||||||||||
Commercial and industrial | 6 | 226 | 222 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | 1 | 125 | 124 | ||||||||||||||||||||||||||
Home equity | 1 | 73 | 73 | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 9 | $ | 874 | $ | 853 | ||||||||||||||||||||||||
Loans modified as troubled debt restructurings within the preceding twelve month period for which there was a subsequent payment default during the period noted are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 1 | 66 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 1 | $ | 66 | ||||||||||||||||||||||||||
At June 30, 2014, there were specific reserves of $24 thousand allocated to the TDRs entered into during the 2014 period as management considered it likely the majority of principal would ultimately be collected. Interest payments received on non-accruing TDRs in the table above which were applied to principal and not recognized in interest income during the six months ended June 30, 2014 amounted to $21 thousand. | |||||||||||||||||||||||||||||
There were subsequent charge-offs of $66 thousand associated with the TDRs noted in the table above during the six months ended June 30, 2014. | |||||||||||||||||||||||||||||
Loans modified as troubled debt restructurings during the three month period ended June 30, 2013 are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial and industrial | 1 | 100 | 62 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 1 | $ | 100 | $ | 62 | ||||||||||||||||||||||||
Loans modified as troubled debt restructurings within the preceding twelve month period for which there was a subsequent payment default during the period noted are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | — | — | |||||||||||||||||||||||||||
Commercial construction | 2 | 715 | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 2 | $ | 715 | ||||||||||||||||||||||||||
Loans modified as troubled debt restructurings during the six month period ended June 30, 2013 are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial and industrial | 1 | 100 | 62 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 1 | $ | 100 | $ | 62 | ||||||||||||||||||||||||
Loans modified as troubled debt restructuring within the twelve month period previous to June 30, 2013 for which there was a subsequent payment default during the period noted are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 137 | ||||||||||||||||||||||||||
Commercial and industrial | — | — | |||||||||||||||||||||||||||
Commercial construction | 3 | 746 | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 4 | $ | 883 | ||||||||||||||||||||||||||
There were subsequent charge-offs of $38 thousand associated with the TDRs noted in the table above during the six months ended June 30, 2013. Included in the table above were two TDRs which defaulted, with total post modification outstanding balances of $167 thousand, and were subsequently transferred to OREO during the June 30, 2013 period. At June 30, 2013, specific reserves allocated to the TDRs entered into during the 2013 period amounted to $1 thousand, as management considered it likely the principal would ultimately be collected. | |||||||||||||||||||||||||||||
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 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 June 30, 2014 and December 31, 2013 was $114 thousand and consisted of the same single property at the end of both periods. There were no sales of OREO during the six months ended June 30, 2014. There were $121 thousand of gains realized on OREO sales during the six months ended June 30, 2013. | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
There have been no material changes in the Company’s underwriting practices, credit risk management system, or to the allowance assessment methodology used to estimate loan loss exposure as reported in the Company’s most recent Annual Report on Form 10-K. Refer to heading “Allowance for probable loan losses methodology” contained in Note 4 “Allowance For Loan Losses,” to the Company’s consolidated financial statements contained in the Company’s 2013 Annual Report on Form 10-K for further discussion of management’s methodology used to estimate the loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance. | |||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
The allowance for loan losses amounted to $26.5 million at June 30, 2014 compared to $27.0 million at December 31, 2013. The allowance for loan losses to total loans ratio was 1.67% at June 30, 2014 compared to 1.77% at both December 31, 2013 and June 30, 2013. The decline in the overall allowance to total loan ratio at June 30, 2014 primarily resulted from a reduction in specific reserves. Specific reserves declined due to current charge-offs, the majority of which were previously allocated specific reserves on commercial relationships for which management deemed collectability of amounts due was unlikely based on current realizable collateral values. | |||||||||||||||||||||||||||||
Based on management’s judgment as to the existing credit risks inherent in the loan portfolio, as discussed above under the heading "Credit Quality Indicators," management believes that the Company’s allowance for loan losses is adequate to absorb probable losses from specifically known and other credit risks associated with the portfolio as of June 30, 2014. | |||||||||||||||||||||||||||||
Changes in the allowance for loan losses by segment for the three months ended June 30, 2014, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at March 31, 2014 | $ | 12,870 | $ | 7,697 | $ | 3,589 | $ | 1,176 | $ | 634 | $ | 206 | $ | 26,172 | |||||||||||||||
Provision | 195 | (270 | ) | 122 | 90 | 51 | 12 | 200 | |||||||||||||||||||||
Recoveries | — | 198 | 30 | — | — | 10 | 238 | ||||||||||||||||||||||
Less: Charge offs | — | 75 | — | — | — | 7 | 82 | ||||||||||||||||||||||
Ending Balance at June 30, 2014 | $ | 13,065 | $ | 7,550 | $ | 3,741 | $ | 1,266 | $ | 685 | $ | 221 | $ | 26,528 | |||||||||||||||
Changes in the allowance for loan losses by segment for the six months ended June 30, 2014, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at December 31, 2013 | $ | 13,174 | $ | 8,365 | $ | 3,493 | $ | 1,057 | $ | 653 | $ | 225 | $ | 26,967 | |||||||||||||||
Provision | 94 | (152 | ) | 218 | 209 | 32 | (1 | ) | 400 | ||||||||||||||||||||
Recoveries | — | 224 | 30 | — | — | 22 | 276 | ||||||||||||||||||||||
Less: Charge offs | 203 | 887 | — | — | — | 25 | 1,115 | ||||||||||||||||||||||
Ending Balance at June 30, 2014 | $ | 13,065 | $ | 7,550 | $ | 3,741 | $ | 1,266 | $ | 685 | $ | 221 | $ | 26,528 | |||||||||||||||
Ending allowance balance: | |||||||||||||||||||||||||||||
Allotted to loans individually evaluated for impairment | $ | 191 | $ | 1,632 | $ | 827 | $ | 171 | $ | 52 | $ | 27 | $ | 2,900 | |||||||||||||||
Allotted to loans collectively evaluated for impairment | $ | 12,874 | $ | 5,918 | $ | 2,914 | $ | 1,095 | $ | 633 | $ | 194 | $ | 23,628 | |||||||||||||||
Changes in the allowance for loan losses by segment for the three months ended June 30, 2013, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at March 31, 2013 | $ | 12,359 | $ | 7,396 | $ | 3,486 | $ | 975 | $ | 672 | $ | 128 | $ | 25,016 | |||||||||||||||
Provision | 614 | 207 | (382 | ) | 58 | 10 | 27 | 534 | |||||||||||||||||||||
Recoveries | 61 | 31 | 50 | — | — | 3 | 145 | ||||||||||||||||||||||
Less: Charge offs | 14 | 1 | — | — | — | 9 | 24 | ||||||||||||||||||||||
Balance at June 30, 2013 | $ | 13,020 | $ | 7,633 | $ | 3,154 | $ | 1,033 | $ | 682 | $ | 149 | $ | 25,671 | |||||||||||||||
Changes in the allowance for loan losses by segment for the six months ended June 30, 2013, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at December 31, 2012 | 11,793 | 7,297 | 3,456 | 854 | 728 | 126 | 24,254 | ||||||||||||||||||||||
Provision | 1,180 | 428 | (352 | ) | 51 | (23 | ) | 33 | 1,317 | ||||||||||||||||||||
Recoveries | 61 | 41 | 50 | 128 | 21 | 6 | 307 | ||||||||||||||||||||||
Less: Charge offs | 14 | 133 | — | — | 44 | 16 | 207 | ||||||||||||||||||||||
Ending Balance at June 30, 2013 | 13,020 | 7,633 | 3,154 | 1,033 | 682 | 149 | 25,671 | ||||||||||||||||||||||
Ending allowance balance: | |||||||||||||||||||||||||||||
Allotted to loans individually evaluated for impairment | 915 | 2,302 | 739 | 163 | 36 | 19 | 4,174 | ||||||||||||||||||||||
Allotted to loans collectively evaluated for impairment | 12,105 | 5,331 | 2,415 | 870 | 646 | 130 | 21,497 | ||||||||||||||||||||||
The balances of loans as of June 30, 2014 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually | Loans collectively | Total Loans | ||||||||||||||||||||||||||
evaluated for | evaluated for | ||||||||||||||||||||||||||||
impairment | impairment | ||||||||||||||||||||||||||||
Commercial real estate | $ | 14,210 | $ | 824,505 | $ | 838,715 | |||||||||||||||||||||||
Commercial and industrial | 10,041 | 375,950 | 385,991 | ||||||||||||||||||||||||||
Commercial construction | 3,287 | 141,266 | 144,553 | ||||||||||||||||||||||||||
Residential | 1,040 | 138,094 | 139,134 | ||||||||||||||||||||||||||
Home equity | 302 | 75,932 | 76,234 | ||||||||||||||||||||||||||
Consumer | 28 | 8,258 | 8,286 | ||||||||||||||||||||||||||
Deferred Fees | — | (1,510 | ) | (1,510 | ) | ||||||||||||||||||||||||
Total loans | $ | 28,908 | $ | 1,562,495 | $ | 1,591,403 | |||||||||||||||||||||||
The balances of loans as of December 31, 2013 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually | Loans collectively | Total Loans | ||||||||||||||||||||||||||
evaluated for | evaluated for | ||||||||||||||||||||||||||||
impairment | impairment | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Supplemental_Retirement_Plan_a
Supplemental Retirement Plan and Other Postretirement Benefit Obligations | 6 Months Ended |
Jun. 30, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Supplemental Retirement Plan and Other Postretirement Benefit Obligations | ' |
Supplemental Retirement Plan and Other Postretirement Benefit Obligations | |
Supplemental Retirement Plan (SERPs) | |
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 agreements provide for predetermined fixed-cash supplemental retirement benefits to be provided for a period of 20 years after each 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 in exchange for the employee’s service rendered to that date. 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 total net periodic benefit cost, which was comprised of interest cost only, was $35 thousand for the three months ended June 30, 2014 compared to $34 thousand for the three months ended June 30, 2013, and $71 thousand for the six months ended June 30, 2014 compared to $67 thousand for the six months ended June 30, 2013. | |
Benefits paid amounted to $69 thousand and $138 thousand for the three and six months ended June 30, 2014 and June 30, 2013, respectively. The Company anticipates accruing an additional $71 thousand to the plan during the remainder of 2014. | |
Supplemental Life Insurance | |
For certain senior and executive officers on whom the Bank owns bank owned life insurance ("BOLI"), the Company has provided supplemental life insurance, through split-dollar life insurance arrangements, which provides a death benefit to the officer’s designated beneficiaries. | |
The Company has recognized a liability for future benefits associated with supplemental life insurance plan, which is a non-qualified plan, which provides a benefit to an employee 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 post- retirement benefits associated with this arrangement. | |
The total net periodic benefit cost, which was comprised of interest cost only, amounted to $18 thousand and $36 thousand for the three and six months ended June 30, 2014 and June 30, 2013, respectively. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ||||||||
The Company has individual stock incentive plans and has not changed the general terms and conditions of these plans from those disclosed in the Company’s 2013 Annual Report on Form 10-K. | ||||||||
The Company’s stock-based compensation expense includes stock option awards and stock awards to officers, other employees and directors, and stock compensation in lieu of cash fees to directors. Total stock-based compensation expense was $435 thousand and $916 thousand for the three and six months ended June 30, 2014, respectively, compared to $520 thousand and $859 thousand for the three and six months ended June 30, 2013, respectively. | ||||||||
Stock Option Awards | ||||||||
The Company recognized stock-based compensation expense related to stock option awards of $86 thousand and $190 thousand for the three and six months ended June 30, 2014, respectively, compared to $202 thousand and $269 thousand for the three and six months ended June 30, 2013, respectively. | ||||||||
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 options granted in 2014 and 2013. | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Options granted | 31,229 | 44,175 | ||||||
Term in years | 10 | 10 | ||||||
Average assumptions used in the model: | ||||||||
Expected volatility | 47 | % | 48 | % | ||||
Expected dividend yield | 2.88 | % | 2.99 | % | ||||
Expected life in years | 7 | 7 | ||||||
Risk-free interest rate | 2.19 | % | 1.29 | % | ||||
Market price on date of grant | $ | 20.29 | $ | 16.43 | ||||
Per share weighted average fair value | $ | 8.32 | $ | 6.56 | ||||
Fair value as a percentage of market value at grant date | 41 | % | 40 | % | ||||
Options granted during the first six months of 2014 and 2013 vest 50% in year two and 50% in year four, on the anniversary date of the awards. Vested options are only exercisable while the employee remains employed with the Bank and for a limited time thereafter. 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. | ||||||||
The Company utilizes the Black-Scholes option valuation model in order to determine the per share grant date fair value of option grants. | ||||||||
Refer to Note 11 “Stock-Based Compensation Plans” in the Company’s 2013 Annual Report on Form 10-K for a further description of the assumptions used in the valuation model. | ||||||||
Stock Awards | ||||||||
Stock-based compensation expense recognized in association with stock awards amounted to $282 thousand and $590 thousand for the three and six months ended June 30, 2014, respectively, compared to $264 thousand and $481 thousand for the three and six months ended June 30, 2013, respectively. | ||||||||
Restricted stock awards are granted at the market price on the date of the grant. Employee awards generally vest over four years in equal portions beginning on or about the first anniversary date of the award. Employee performance based awards vest upon the Company achieving certain predefined performance objectives. Director awards generally vest over two years in equal portions beginning on or about the first anniversary date of the award. | ||||||||
The table below provides a summary of stock awards granted in 2014 and 2013. | ||||||||
Six Months Ended June 30, | ||||||||
Restricted Stock Awards | 2014 | 2013 | ||||||
Two Year Vesting | 6,660 | 6,146 | ||||||
Four Year Vesting | 19,167 | 24,925 | ||||||
Performance-Based Vesting | 33,017 | 47,735 | ||||||
Total Restricted Stock Awards | 58,844 | 78,806 | ||||||
Weighted average grant date fair value | $ | 20.29 | $ | 16.43 | ||||
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 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. | ||||||||
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. | ||||||||
In January 2014, the Company also granted 2,142 shares of fully vested stock to employees as anniversary awards at a fair market value of $20.95 per share. | ||||||||
Stock in Lieu of Directors’ 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. Stock-based compensation expense related to directors’ election to receive shares of common stock in lieu of cash fees for meetings amounted to $67 thousand and $136 thousand for the three and six months ended June 30, 2014, respectively, compared to $54 thousand and $109 thousand for the three and six months ended June 30, 2013, respectively. In January 2014, directors were issued 11,136 shares of common stock in lieu of cash fees based on their 2013 annual stock-based compensation expense of $194 thousand and a market value price of $17.43 per share, the market value of the common stock on the opt-in measurement date of January 2, 2013. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
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. | ||||||||||||
The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the periods indicated: | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Basic weighted average common shares outstanding | 10,124,372 | 9,825,335 | 10,077,502 | 9,770,559 | ||||||||
Dilutive shares | 80,604 | 64,304 | 84,685 | 69,457 | ||||||||
Diluted weighted average common shares outstanding | 10,204,976 | 9,889,639 | 10,162,187 | 9,840,016 | ||||||||
For the six months ended June 30, 2014, there were an additional 18,392 average stock options outstanding, which were excluded from the year-to-date calculation of diluted earnings per share due to the exercise price of these options exceeding the average market price of the Company’s common stock for the period. These options, which were not dilutive at that date, may potentially dilute earnings per share in the future. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
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; and (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: | ||||||||||||||||||||
June 30, 2014 | Fair Value Measurements using: | |||||||||||||||||||
(Dollars in thousands) | Fair Value | (level 1) | (level 2) | (level 3) | ||||||||||||||||
Assets measured on a recurring basis: | ||||||||||||||||||||
Fixed income securities | $ | 200,120 | $ | — | $ | 200,120 | $ | — | ||||||||||||
Equity securities | 14,725 | 14,725 | — | — | ||||||||||||||||
FHLB Stock | 3,357 | — | — | 3,357 | ||||||||||||||||
Assets measured on a non-recurring basis: | ||||||||||||||||||||
Impaired loans (collateral dependent) | 6,250 | — | — | 6,250 | ||||||||||||||||
Other real estate owned | 114 | — | — | 114 | ||||||||||||||||
December 31, | Fair Value Measurements using: | |||||||||||||||||||
2013 | ||||||||||||||||||||
(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 | ||||||||||||||||
The Company did not have cause to transfer any assets between the fair value measurement levels during the six months ended June 30, 2014 or the year ended December 31, 2013. There were no liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2014 or December 31, 2013. | ||||||||||||||||||||
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 Note 1, "Summary of Significant Accounting Policies," Item (d) 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 June 30, 2014 amounted to $2.2 million compared to $3.2 million at December 31, 2013. | ||||||||||||||||||||
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 no sales of OREO during the six months ended June 30, 2014. There were $121 thousand of gains realized on OREO sales during the six months ended June 30, 2013. | ||||||||||||||||||||
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 June 30, 2014. | ||||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Unobservable Input Value or Range | ||||||||||||||||
Assets measured on a recurring basis: | ||||||||||||||||||||
FHLB Stock | $3,357 | FHLB Stated Par Value | N/A | N/A | ||||||||||||||||
Assets measured on a non-recurring basis: | ||||||||||||||||||||
Impaired loans (collateral dependent) | $6,250 | 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 at June 30, 2014 and December 31, 2013 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 June 30, 2014 and December 31, 2013, 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 adversely classified 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 June 30, 2014 and December 31, 2013 for similar instruments. The fair value of junior subordinated debentures was estimated using discounted cash flow analysis using a market rate of interest at June 30, 2014 and December 31, 2013. | ||||||||||||||||||||
Limitations: The estimates of fair value of financial instruments were based on information available at June 30, 2014 and December 31, 2013 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, including premises and equipment and foreclosed real estate. | ||||||||||||||||||||
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: | ||||||||||||||||||||
June 30, 2014 | 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 | $ | 2,431 | $ | 2,453 | $ | — | $ | 2,453 | — | |||||||||||
Loans, net | 1,564,875 | 1,588,955 | — | — | 1,588,955 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Certificates of deposit (including brokered) | 278,487 | 277,484 | — | 277,484 | — | |||||||||||||||
Borrowed funds | 484 | 485 | — | 485 | — | |||||||||||||||
Junior subordinated debentures | 10,825 | 12,529 | — | — | 12,529 | |||||||||||||||
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 | |||||||||||||||
-1 | Excluded from this table are certain financial instruments with carrying values that approximated their fair value at the dates indicated, 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. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2013 audited consolidated financial statements and notes thereto contained in the 2013 Annual Report on Form 10-K of Enterprise Bancorp, Inc. (the “Company” or “Enterprise”), a Massachusetts corporation, as filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2014. The Company has not changed its reporting policies from those disclosed in its 2013 Annual Report on Form 10-K. | |
The Company's unaudited consolidated interim financial statements 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 (the “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 Division also retains supervisory jurisdiction over the Company. | |
Basis of Accounting | ' |
The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions for Form 10-Q through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying unaudited consolidated interim 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 unaudited consolidated interim financial statements. | |
Interim results are not necessarily indicative of results to be expected for the entire year. | |
Critical Accounting Estimates | ' |
Critical Accounting Estimates | |
In preparing the consolidated financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These estimates and assumptions affect the reported values of assets and liabilities as of the balance sheet date and income and expenses for the period 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. | |
As discussed in the Company’s 2013 Annual Report on Form 10-K, the three most significant areas in which management applies critical assumptions and estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. Refer to Note 1,“Summary of Significant Accounting Policies,” to the Company’s consolidated financial statements included in the Company’s 2013 Annual Report on Form 10-K for significant accounting policies. The Company has not changed its significant accounting policies from those disclosed in its 2013 Annual Report filed on Form 10-K. | |
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.” | |
Restricted Investments | ' |
Restricted Investments | |
As a member of the Federal Home Loan Bank of Boston (“FHLB”), the Company is required to purchase certain levels of FHLB capital stock in association with the Company’s borrowing relationship from the FHLB. This stock is classified as a restricted investment and carried at cost, which management believes approximates fair value. FHLB stock represents the only restricted investment held by the Company. | |
In conjunction with the other-than-temporary-impairment (“OTTI”) review on available-for-sale investments (See Note 2, "Investments," for additional information), 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. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. | |
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 income tax provisions will differ from the expense that would result from applying the federal statutory rate to income before taxes, primarily due to the impact of tax exempt interest from certain investment securities, loans and bank owned life insurance. | |
The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at June 30, 2014. The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2007 through 2013 tax years. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In January 2014, FASB issued 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. 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. The amendments in this Update are to be applied retrospectively to all periods presented. 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, on the effective date, is not expected to have a material impact on the Company's financial statements, or results of operations. |
Investments_Tables
Investments (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | ' | |||||||||||||||||||||||||||
The amortized cost and carrying values of investment securities at the dates specified are summarized as follows: | ||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||
cost | gains | losses | ||||||||||||||||||||||||||
Federal agency obligations (1) | $ | 31,851 | $ | 121 | $ | 5 | $ | 31,967 | ||||||||||||||||||||
Federal agency mortgage backed securities (MBS) (1) | 95,576 | 740 | 886 | 95,430 | ||||||||||||||||||||||||
Municipal securities | 64,688 | 2,040 | 102 | 66,626 | ||||||||||||||||||||||||
Corporate bonds | 6,046 | 69 | 18 | 6,097 | ||||||||||||||||||||||||
Total fixed income securities | 198,161 | 2,970 | 1,011 | 200,120 | ||||||||||||||||||||||||
Equity investments | 10,893 | 3,836 | 4 | 14,725 | ||||||||||||||||||||||||
Total available for sale securities, at fair value | $ | 209,054 | $ | 6,806 | $ | 1,015 | $ | 214,845 | ||||||||||||||||||||
December 31, 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 securities, at fair value | $ | 212,152 | $ | 5,374 | $ | 2,157 | $ | 215,369 | ||||||||||||||||||||
__________________________________________ | ||||||||||||||||||||||||||||
-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, or one of several Federal Home Loan Banks. All agency MBS/Collateralized Mortgage Obligations ("CMOs") investments owned by the Company are backed by residential mortgages. | |||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | ' | |||||||||||||||||||||||||||
The contractual maturity distribution at June 30, 2014 of total fixed income investments is as follows: | ||||||||||||||||||||||||||||
Within One Year | After One, But Within | After Five, But Within | After Ten Years | |||||||||||||||||||||||||
Five Years | Ten Years | |||||||||||||||||||||||||||
Amortized | Yields | Amortized | Yields | Amortized | Yields | Amortized | Yields | |||||||||||||||||||||
Cost | Cost | Cost | Cost | |||||||||||||||||||||||||
At amortized cost: | ||||||||||||||||||||||||||||
Federal agency obligations | $ | 7,011 | 0.79 | % | $ | 20,997 | 1.3 | % | $ | 3,843 | 2.09 | % | $ | — | — | % | ||||||||||||
MBS | 11 | 1.42 | % | 2,706 | 2.48 | % | 6,454 | 3 | % | 86,405 | 2.18 | % | ||||||||||||||||
Municipal securities | 4,195 | 2.02 | % | 21,531 | 2.86 | % | 28,860 | 4.35 | % | 10,102 | 5.59 | % | ||||||||||||||||
Corporate bonds | 101 | 1.26 | % | 4,195 | 1.6 | % | 1,750 | 2.99 | % | — | — | % | ||||||||||||||||
Total fixed income securities | $ | 11,318 | 1.25 | % | $ | 49,429 | 2.07 | % | $ | 40,907 | 3.86 | % | $ | 96,507 | 2.54 | % | ||||||||||||
At fair value: | ||||||||||||||||||||||||||||
Total fixed income securities | $ | 11,364 | $ | 50,145 | $ | 42,006 | $ | 96,605 | ||||||||||||||||||||
Loans_Tables
Loans (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Loans by Loan Classification | ' | ||||||||
Major classifications of loans at the periods indicated, are as follows: | |||||||||
(Dollars in thousands) | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Commercial real estate | $ | 838,715 | $ | 820,299 | |||||
Commercial and industrial | 385,991 | 357,056 | |||||||
Commercial construction | 144,553 | 132,507 | |||||||
Total commercial loans | 1,369,259 | 1,309,862 | |||||||
Residential mortgages | 139,134 | 132,721 | |||||||
Home equity loans and lines | 76,234 | 74,354 | |||||||
Consumer | 8,286 | 8,643 | |||||||
Total retail loans | 223,654 | 215,718 | |||||||
Gross loans | 1,592,913 | 1,525,580 | |||||||
Deferred loan origination fees, net | (1,510 | ) | (1,524 | ) | |||||
Total loans | 1,591,403 | 1,524,056 | |||||||
Allowance for loan losses | (26,528 | ) | (26,967 | ) | |||||
Net loans | $ | 1,564,875 | $ | 1,497,089 | |||||
Schedule of Loans Pledged as Collateral | ' | ||||||||
Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity are summarized below: | |||||||||
(Dollars in thousands) | June 30, | December 31, | |||||||
2014 | 2013 | ||||||||
Commercial real estate | $ | 298,401 | $ | 320,908 | |||||
Residential mortgages | 102,464 | 97,626 | |||||||
Home equity | 16,994 | 17,548 | |||||||
Total loans pledged to FHLB | $ | 417,859 | $ | 436,082 | |||||
Allowance_For_Loan_Loss_Tables
Allowance For Loan Loss (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | ||||||||||||||||||||||||||||
The following tables present the Company's credit risk profile for each class of loan in its portfolio by internally assigned risk rating category at the periods indicated. | |||||||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||||||
Adversely Classified | Not Adversely | ||||||||||||||||||||||||||||
(Dollars in thousands) | Substandard | Doubtful | Loss | Classified | Gross Loans | ||||||||||||||||||||||||
Commercial real estate | $ | 11,993 | $ | 1,227 | $ | 111 | $ | 825,384 | $ | 838,715 | |||||||||||||||||||
Commercial and industrial | 8,804 | 57 | 61 | 377,069 | 385,991 | ||||||||||||||||||||||||
Commercial construction | 3,370 | — | — | 141,183 | 144,553 | ||||||||||||||||||||||||
Residential | 1,599 | — | — | 137,535 | 139,134 | ||||||||||||||||||||||||
Home equity | 573 | 27 | — | 75,634 | 76,234 | ||||||||||||||||||||||||
Consumer | 47 | — | — | 8,239 | 8,286 | ||||||||||||||||||||||||
Total gross loans | $ | 26,386 | $ | 1,311 | $ | 172 | $ | 1,565,044 | $ | 1,592,913 | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Adversely Classified | Not Adversely | ||||||||||||||||||||||||||||
(Dollars in thousands) | Substandard | Doubtful | Loss | Classified | Gross Loans | ||||||||||||||||||||||||
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 | |||||||||||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||||||
The following tables present age analysis of past due loans as of the dates indicated. | |||||||||||||||||||||||||||||
Balance at June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Loans 90 or | Total Past | Current Loans | Gross | |||||||||||||||||||||||
30-59 Days | 60-89 Days | More Days | Due Loans | Loans | |||||||||||||||||||||||||
Past Due | Past Due | Past Due (non- | |||||||||||||||||||||||||||
accrual) | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,554 | $ | 1,590 | $ | 10,131 | $ | 16,275 | $ | 822,440 | $ | 838,715 | |||||||||||||||||
Commercial and industrial | 1,470 | 399 | 5,045 | 6,914 | 379,077 | 385,991 | |||||||||||||||||||||||
Commercial construction | 185 | — | 1,053 | 1,238 | 143,315 | 144,553 | |||||||||||||||||||||||
Residential | 1,789 | — | 1,224 | 3,013 | 136,121 | 139,134 | |||||||||||||||||||||||
Home equity | 310 | — | 381 | 691 | 75,543 | 76,234 | |||||||||||||||||||||||
Consumer | 30 | 13 | 120 | 163 | 8,123 | 8,286 | |||||||||||||||||||||||
Total gross loans | $ | 8,338 | $ | 2,002 | $ | 17,954 | $ | 28,294 | $ | 1,564,619 | $ | 1,592,913 | |||||||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans | Loans | Loans 90 or | Total Past | Current Loans | Gross Loans | |||||||||||||||||||||||
30-59 Days | 60-89 Days | More Days | Due Loans | ||||||||||||||||||||||||||
Past Due | Past Due | Past Due (non- | |||||||||||||||||||||||||||
accrual) | |||||||||||||||||||||||||||||
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 | |||||||||||||||||
Impaired Financing Receivables | ' | ||||||||||||||||||||||||||||
The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated as of the dated indicated. | |||||||||||||||||||||||||||||
Balance at June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related specific | ||||||||||||||||||||||||
contractual | investment in | investment | investment | allowance | |||||||||||||||||||||||||
principal balance | impaired loans | with no | with | ||||||||||||||||||||||||||
allowance | allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 16,284 | $ | 14,210 | $ | 13,495 | $ | 715 | $ | 191 | |||||||||||||||||||
Commercial and industrial | 11,603 | 10,041 | 4,342 | 5,699 | 1,632 | ||||||||||||||||||||||||
Commercial construction | 3,411 | 3,287 | 1,410 | 1,877 | 827 | ||||||||||||||||||||||||
Residential | 1,100 | 1,040 | 356 | 684 | 171 | ||||||||||||||||||||||||
Home equity | 306 | 302 | 94 | 208 | 52 | ||||||||||||||||||||||||
Consumer | 28 | 28 | 1 | 27 | 27 | ||||||||||||||||||||||||
Total | $ | 32,732 | $ | 28,908 | $ | 19,698 | $ | 9,210 | $ | 2,900 | |||||||||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Unpaid | Total recorded | Recorded | Recorded | Related specific | ||||||||||||||||||||||||
contractual | investment in | investment | investment | allowance | |||||||||||||||||||||||||
principal balance | impaired loans | with no | with | ||||||||||||||||||||||||||
allowance | 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 reduction in related specific reserves on impaired loans was due primarily to increases in estimated current realizable collateral values and current charge-offs of previously allocated specific reserves on commercial relationships for which management deemed collectability of amounts due was unlikely based on current realizable collateral values. | |||||||||||||||||||||||||||||
The following table presents the average recorded investment in impaired loans and the related interest recognized during the three month periods indicated. | |||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | |||||||||||||||||||||||||
investment | recognized | investment | recognized | ||||||||||||||||||||||||||
Commercial real estate | 13,357 | 44 | 17,868 | 51 | |||||||||||||||||||||||||
Commercial and industrial | 10,337 | 42 | 9,252 | 24 | |||||||||||||||||||||||||
Commercial construction | 3,249 | 26 | 2,906 | 9 | |||||||||||||||||||||||||
Residential | 1,043 | 3 | 804 | 3 | |||||||||||||||||||||||||
Home equity | 294 | — | 109 | — | |||||||||||||||||||||||||
Consumer | 27 | — | 19 | — | |||||||||||||||||||||||||
Total | $ | 28,307 | $ | 115 | $ | 30,958 | $ | 87 | |||||||||||||||||||||
The following table presents the average recorded investment in impaired loans and the related interest recognized during the six month periods indicated. | |||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Average recorded | Interest income | Average recorded | Interest income | |||||||||||||||||||||||||
investment | recognized | investment | recognized | ||||||||||||||||||||||||||
Commercial real estate | $ | 13,758 | $ | 94 | $ | 20,155 | $ | 149 | |||||||||||||||||||||
Commercial and industrial | 10,583 | 80 | 9,427 | 54 | |||||||||||||||||||||||||
Commercial construction | 3,277 | 52 | 2,902 | 33 | |||||||||||||||||||||||||
Residential | 901 | 3 | 807 | 4 | |||||||||||||||||||||||||
Home equity | 201 | — | 124 | — | |||||||||||||||||||||||||
Consumer | 25 | — | 16 | — | |||||||||||||||||||||||||
Total | $ | 28,745 | $ | 229 | $ | 33,431 | $ | 240 | |||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables | ' | ||||||||||||||||||||||||||||
Loans modified as troubled debt restructurings during the three month period ended June 30, 2013 are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial and industrial | 1 | 100 | 62 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 1 | $ | 100 | $ | 62 | ||||||||||||||||||||||||
Loans modified as troubled debt restructurings within the preceding twelve month period for which there was a subsequent payment default during the period noted are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | — | — | |||||||||||||||||||||||||||
Commercial construction | 2 | 715 | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 2 | $ | 715 | ||||||||||||||||||||||||||
Loans modified as troubled debt restructurings during the six month period ended June 30, 2013 are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial and industrial | 1 | 100 | 62 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 1 | $ | 100 | $ | 62 | ||||||||||||||||||||||||
Loans modified as troubled debt restructuring within the twelve month period previous to June 30, 2013 for which there was a subsequent payment default during the period noted are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 137 | ||||||||||||||||||||||||||
Commercial and industrial | — | — | |||||||||||||||||||||||||||
Commercial construction | 3 | 746 | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 4 | $ | 883 | ||||||||||||||||||||||||||
Loans modified as trouble debt restructurings during the three month period ended June 30, 2014 are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | $ | — | ||||||||||||||||||||||||
Commercial and industrial | 4 | 159 | 157 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | 1 | 125 | 124 | ||||||||||||||||||||||||||
Home equity | 1 | 73 | 73 | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 6 | $ | 357 | $ | 354 | ||||||||||||||||||||||||
Loans modified as troubled debt restructurings within the preceding twelve month period for which there was a subsequent payment default during the periods noted are detailed below. | |||||||||||||||||||||||||||||
Three months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 1 | 66 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 1 | $ | 66 | ||||||||||||||||||||||||||
Loans modified as troubled debt restructurings during the six month period ended June 30, 2014 are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||||
restructurings | outstanding recorded | outstanding recorded | |||||||||||||||||||||||||||
investment | investment | ||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 450 | $ | 434 | ||||||||||||||||||||||||
Commercial and industrial | 6 | 226 | 222 | ||||||||||||||||||||||||||
Commercial construction | — | — | — | ||||||||||||||||||||||||||
Residential | 1 | 125 | 124 | ||||||||||||||||||||||||||
Home equity | 1 | 73 | 73 | ||||||||||||||||||||||||||
Consumer | — | — | — | ||||||||||||||||||||||||||
Total | 9 | $ | 874 | $ | 853 | ||||||||||||||||||||||||
Loans modified as troubled debt restructurings within the preceding twelve month period for which there was a subsequent payment default during the period noted are detailed below. | |||||||||||||||||||||||||||||
Six months ended June 30, 2014 | |||||||||||||||||||||||||||||
(Dollars in thousands) | Number of TDRs that defaulted | Post- | |||||||||||||||||||||||||||
modification outstanding | |||||||||||||||||||||||||||||
recorded investment | |||||||||||||||||||||||||||||
Commercial real estate | — | $ | — | ||||||||||||||||||||||||||
Commercial and industrial | 1 | 66 | |||||||||||||||||||||||||||
Commercial construction | — | — | |||||||||||||||||||||||||||
Residential | — | — | |||||||||||||||||||||||||||
Home Equity | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 1 | $ | 66 | ||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||||||
Changes in the allowance for loan losses by segment for the three months ended June 30, 2014, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at March 31, 2014 | $ | 12,870 | $ | 7,697 | $ | 3,589 | $ | 1,176 | $ | 634 | $ | 206 | $ | 26,172 | |||||||||||||||
Provision | 195 | (270 | ) | 122 | 90 | 51 | 12 | 200 | |||||||||||||||||||||
Recoveries | — | 198 | 30 | — | — | 10 | 238 | ||||||||||||||||||||||
Less: Charge offs | — | 75 | — | — | — | 7 | 82 | ||||||||||||||||||||||
Ending Balance at June 30, 2014 | $ | 13,065 | $ | 7,550 | $ | 3,741 | $ | 1,266 | $ | 685 | $ | 221 | $ | 26,528 | |||||||||||||||
Changes in the allowance for loan losses by segment for the six months ended June 30, 2014, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at December 31, 2013 | $ | 13,174 | $ | 8,365 | $ | 3,493 | $ | 1,057 | $ | 653 | $ | 225 | $ | 26,967 | |||||||||||||||
Provision | 94 | (152 | ) | 218 | 209 | 32 | (1 | ) | 400 | ||||||||||||||||||||
Recoveries | — | 224 | 30 | — | — | 22 | 276 | ||||||||||||||||||||||
Less: Charge offs | 203 | 887 | — | — | — | 25 | 1,115 | ||||||||||||||||||||||
Ending Balance at June 30, 2014 | $ | 13,065 | $ | 7,550 | $ | 3,741 | $ | 1,266 | $ | 685 | $ | 221 | $ | 26,528 | |||||||||||||||
Ending allowance balance: | |||||||||||||||||||||||||||||
Allotted to loans individually evaluated for impairment | $ | 191 | $ | 1,632 | $ | 827 | $ | 171 | $ | 52 | $ | 27 | $ | 2,900 | |||||||||||||||
Allotted to loans collectively evaluated for impairment | $ | 12,874 | $ | 5,918 | $ | 2,914 | $ | 1,095 | $ | 633 | $ | 194 | $ | 23,628 | |||||||||||||||
Changes in the allowance for loan losses by segment for the three months ended June 30, 2013, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at March 31, 2013 | $ | 12,359 | $ | 7,396 | $ | 3,486 | $ | 975 | $ | 672 | $ | 128 | $ | 25,016 | |||||||||||||||
Provision | 614 | 207 | (382 | ) | 58 | 10 | 27 | 534 | |||||||||||||||||||||
Recoveries | 61 | 31 | 50 | — | — | 3 | 145 | ||||||||||||||||||||||
Less: Charge offs | 14 | 1 | — | — | — | 9 | 24 | ||||||||||||||||||||||
Balance at June 30, 2013 | $ | 13,020 | $ | 7,633 | $ | 3,154 | $ | 1,033 | $ | 682 | $ | 149 | $ | 25,671 | |||||||||||||||
Changes in the allowance for loan losses by segment for the six months ended June 30, 2013, are presented below: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Cmml Real | Cmml and | Cmml | Resid. | Home | Consumer | Total | ||||||||||||||||||||||
Estate | Industrial | Constr | Mortgage | Equity | |||||||||||||||||||||||||
Beginning Balance at December 31, 2012 | 11,793 | 7,297 | 3,456 | 854 | 728 | 126 | 24,254 | ||||||||||||||||||||||
Provision | 1,180 | 428 | (352 | ) | 51 | (23 | ) | 33 | 1,317 | ||||||||||||||||||||
Recoveries | 61 | 41 | 50 | 128 | 21 | 6 | 307 | ||||||||||||||||||||||
Less: Charge offs | 14 | 133 | — | — | 44 | 16 | 207 | ||||||||||||||||||||||
Ending Balance at June 30, 2013 | 13,020 | 7,633 | 3,154 | 1,033 | 682 | 149 | 25,671 | ||||||||||||||||||||||
Ending allowance balance: | |||||||||||||||||||||||||||||
Allotted to loans individually evaluated for impairment | 915 | 2,302 | 739 | 163 | 36 | 19 | 4,174 | ||||||||||||||||||||||
Allotted to loans collectively evaluated for impairment | 12,105 | 5,331 | 2,415 | 870 | 646 | 130 | 21,497 | ||||||||||||||||||||||
Financing Receivables by Evaluation Method for Impairment | ' | ||||||||||||||||||||||||||||
The balances of loans as of June 30, 2014 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually | Loans collectively | Total Loans | ||||||||||||||||||||||||||
evaluated for | evaluated for | ||||||||||||||||||||||||||||
impairment | impairment | ||||||||||||||||||||||||||||
Commercial real estate | $ | 14,210 | $ | 824,505 | $ | 838,715 | |||||||||||||||||||||||
Commercial and industrial | 10,041 | 375,950 | 385,991 | ||||||||||||||||||||||||||
Commercial construction | 3,287 | 141,266 | 144,553 | ||||||||||||||||||||||||||
Residential | 1,040 | 138,094 | 139,134 | ||||||||||||||||||||||||||
Home equity | 302 | 75,932 | 76,234 | ||||||||||||||||||||||||||
Consumer | 28 | 8,258 | 8,286 | ||||||||||||||||||||||||||
Deferred Fees | — | (1,510 | ) | (1,510 | ) | ||||||||||||||||||||||||
Total loans | $ | 28,908 | $ | 1,562,495 | $ | 1,591,403 | |||||||||||||||||||||||
The balances of loans as of December 31, 2013 by segment and evaluation method are summarized as follows: | |||||||||||||||||||||||||||||
(Dollars in thousands) | Loans individually | Loans collectively | Total Loans | ||||||||||||||||||||||||||
evaluated for | evaluated for | ||||||||||||||||||||||||||||
impairment | impairment | ||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
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 options granted in 2014 and 2013. | ||||||||
Six Months Ended June 30, | ||||||||
2014 | 2013 | |||||||
Options granted | 31,229 | 44,175 | ||||||
Term in years | 10 | 10 | ||||||
Average assumptions used in the model: | ||||||||
Expected volatility | 47 | % | 48 | % | ||||
Expected dividend yield | 2.88 | % | 2.99 | % | ||||
Expected life in years | 7 | 7 | ||||||
Risk-free interest rate | 2.19 | % | 1.29 | % | ||||
Market price on date of grant | $ | 20.29 | $ | 16.43 | ||||
Per share weighted average fair value | $ | 8.32 | $ | 6.56 | ||||
Fair value as a percentage of market value at grant date | 41 | % | 40 | % | ||||
Schedule of Restricted Stock Awards Granted | ' | |||||||
The table below provides a summary of stock awards granted in 2014 and 2013. | ||||||||
Six Months Ended June 30, | ||||||||
Restricted Stock Awards | 2014 | 2013 | ||||||
Two Year Vesting | 6,660 | 6,146 | ||||||
Four Year Vesting | 19,167 | 24,925 | ||||||
Performance-Based Vesting | 33,017 | 47,735 | ||||||
Total Restricted Stock Awards | 58,844 | 78,806 | ||||||
Weighted average grant date fair value | $ | 20.29 | $ | 16.43 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
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 periods indicated: | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Basic weighted average common shares outstanding | 10,124,372 | 9,825,335 | 10,077,502 | 9,770,559 | ||||||||
Dilutive shares | 80,604 | 64,304 | 84,685 | 69,457 | ||||||||
Diluted weighted average common shares outstanding | 10,204,976 | 9,889,639 | 10,162,187 | 9,840,016 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
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: | ||||||||||||||||||||
June 30, 2014 | Fair Value Measurements using: | |||||||||||||||||||
(Dollars in thousands) | Fair Value | (level 1) | (level 2) | (level 3) | ||||||||||||||||
Assets measured on a recurring basis: | ||||||||||||||||||||
Fixed income securities | $ | 200,120 | $ | — | $ | 200,120 | $ | — | ||||||||||||
Equity securities | 14,725 | 14,725 | — | — | ||||||||||||||||
FHLB Stock | 3,357 | — | — | 3,357 | ||||||||||||||||
Assets measured on a non-recurring basis: | ||||||||||||||||||||
Impaired loans (collateral dependent) | 6,250 | — | — | 6,250 | ||||||||||||||||
Other real estate owned | 114 | — | — | 114 | ||||||||||||||||
December 31, | Fair Value Measurements using: | |||||||||||||||||||
2013 | ||||||||||||||||||||
(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 | ||||||||||||||||
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 June 30, 2014. | ||||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation Technique | Unobservable Input | Unobservable Input Value or Range | ||||||||||||||||
Assets measured on a recurring basis: | ||||||||||||||||||||
FHLB Stock | $3,357 | FHLB Stated Par Value | N/A | N/A | ||||||||||||||||
Assets measured on a non-recurring basis: | ||||||||||||||||||||
Impaired loans (collateral dependent) | $6,250 | 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: | ||||||||||||||||||||
June 30, 2014 | 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 | $ | 2,431 | $ | 2,453 | $ | — | $ | 2,453 | — | |||||||||||
Loans, net | 1,564,875 | 1,588,955 | — | — | 1,588,955 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Certificates of deposit (including brokered) | 278,487 | 277,484 | — | 277,484 | — | |||||||||||||||
Borrowed funds | 484 | 485 | — | 485 | — | |||||||||||||||
Junior subordinated debentures | 10,825 | 12,529 | — | — | 12,529 | |||||||||||||||
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 | |||||||||||||||
-1 | Excluded from this table are certain financial instruments with carrying values that approximated their fair value at the dates indicated, 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. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2014 | |
segment | |
branches | |
Accounting Policies [Abstract] | ' |
Number of branches | 22 |
Reportable operating segments | 1 |
Investments_Availableforsale_D
Investments Available-for-sale (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
investments | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Fair Value | $214,845,000 | $215,369,000 | ||
Number of securities in loss position | 41 | ' | ||
Investments Temporarily Impaired, Fair Value | 46,200,000 | ' | ||
Securities pledged as collateral | 200,100,000 | ' | ||
Total fixed income securities | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Amortized cost | 198,161,000 | 202,192,000 | ||
Unrealized Gains | 2,970,000 | 2,146,000 | ||
Unrealized Losses | 1,011,000 | 2,137,000 | ||
Fair Value | 200,120,000 | 202,201,000 | ||
Federal Agency Obligations | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Amortized cost | 31,851,000 | [1] | 55,440,000 | [1] |
Unrealized Gains | 121,000 | [1] | 146,000 | [1] |
Unrealized Losses | 5,000 | [1] | 43,000 | [1] |
Fair Value | 31,967,000 | [1] | 55,543,000 | [1] |
Federal Agency mortgage backed securities (MBS) | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Amortized cost | 95,576,000 | [1] | 80,997,000 | [1] |
Unrealized Gains | 740,000 | [1] | 367,000 | [1] |
Unrealized Losses | 886,000 | [1] | 1,714,000 | [1] |
Fair Value | 95,430,000 | [1] | 79,650,000 | [1] |
Collateralized Mortgage Obligations (CMOs) | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Fair Value | 15,400,000 | 17,400,000 | ||
Municipal securities | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Amortized cost | 64,688,000 | 60,675,000 | ||
Unrealized Gains | 2,040,000 | 1,604,000 | ||
Unrealized Losses | 102,000 | 325,000 | ||
Fair Value | 66,626,000 | 61,954,000 | ||
Corporate bonds | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Amortized cost | 6,046,000 | 5,080,000 | ||
Unrealized Gains | 69,000 | 29,000 | ||
Unrealized Losses | 18,000 | 55,000 | ||
Fair Value | 6,097,000 | 5,054,000 | ||
Equity investments | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Amortized cost | 10,893,000 | 9,960,000 | ||
Unrealized Gains | 3,836,000 | 3,228,000 | ||
Unrealized Losses | 4,000 | 20,000 | ||
Fair Value | 14,725,000 | 13,168,000 | ||
Percent of portfolio invested in financial services | 15.00% | ' | ||
Total available for sale securities, at fair value | ' | ' | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ' | ' | ||
Amortized cost | 209,054,000 | 212,152,000 | ||
Unrealized Gains | 6,806,000 | 5,374,000 | ||
Unrealized Losses | 1,015,000 | 2,157,000 | ||
Fair Value | 214,845,000 | 215,369,000 | ||
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | $985,000 | ' | ||
[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, or one of several Federal Home Loan Banks. All agency MBS/Collateralized Mortgage Obligations ("CMOs") investments owned by the Company are backed by residential mortgages. |
Investments_Maturities_Details
Investments Maturities (Details) (USD $) | Jun. 30, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ' |
Callable Securities, Fair Value Disclosure | $37,500,000 |
Total fixed income securities | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 11,318,000 |
Amortized Cost, Within One Year, Yield | 1.25% |
Fair Value, Within One Year | 11,364,000 |
Amortized Cost Basis, After One, But Within Five Years | 49,429,000 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.07% |
Fair Value, After One, But Within Five Years | 50,145,000 |
Amortized Cost, After Five, But Within Ten Years | 40,907,000 |
Amortized Cost, After Five, But Within Ten Years, Yield | 3.86% |
Fair Value, after Five but Within Ten Years | 42,006,000 |
Amortized Cost Basis, After Ten Years | 96,507,000 |
Amortized Cost after Ten Years, Yield | 2.54% |
Fair Value, After Ten Years | 96,605,000 |
Federal agency obligations | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 7,011,000 |
Amortized Cost, Within One Year, Yield | 0.79% |
Amortized Cost Basis, After One, But Within Five Years | 20,997,000 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 1.30% |
Amortized Cost, After Five, But Within Ten Years | 3,843,000 |
Amortized Cost, After Five, But Within Ten Years, Yield | 2.09% |
Amortized Cost Basis, After Ten Years | 0 |
Amortized Cost after Ten Years, Yield | 0.00% |
MBS | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 11,000 |
Amortized Cost, Within One Year, Yield | 1.42% |
Amortized Cost Basis, After One, But Within Five Years | 2,706,000 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.48% |
Amortized Cost, After Five, But Within Ten Years | 6,454,000 |
Amortized Cost, After Five, But Within Ten Years, Yield | 3.00% |
Amortized Cost Basis, After Ten Years | 86,405,000 |
Amortized Cost after Ten Years, Yield | 2.18% |
Municipal securities | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 4,195,000 |
Amortized Cost, Within One Year, Yield | 2.02% |
Amortized Cost Basis, After One, But Within Five Years | 21,531,000 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.86% |
Amortized Cost, After Five, But Within Ten Years | 28,860,000 |
Amortized Cost, After Five, But Within Ten Years, Yield | 4.35% |
Amortized Cost Basis, After Ten Years | 10,102,000 |
Amortized Cost after Ten Years, Yield | 5.59% |
Corporate bonds | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Amortized Cost, Within One Year | 101,000 |
Amortized Cost, Within One Year, Yield | 1.26% |
Amortized Cost Basis, After One, But Within Five Years | 4,195,000 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 1.60% |
Amortized Cost, After Five, But Within Ten Years | 1,750,000 |
Amortized Cost, After Five, But Within Ten Years, Yield | 2.99% |
Amortized Cost Basis, After Ten Years | $0 |
Amortized Cost after Ten Years, Yield | 0.00% |
Loans_Balance_by_Class_of_Loan
Loans - Balance by Class of Loans (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | $1,592,913 | ' | $1,525,580 | ' | ' | ' |
Deferred loan origination fees, net | -1,510 | ' | -1,524 | ' | ' | ' |
Total loans | 1,591,403 | ' | 1,524,056 | ' | ' | ' |
Allowance for loan losses | -26,528 | -26,172 | -26,967 | -25,671 | -25,016 | -24,254 |
Net Loans | 1,564,875 | ' | 1,497,089 | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 1,369,259 | ' | 1,309,862 | ' | ' | ' |
Commercial real estate | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 838,715 | ' | 820,299 | ' | ' | ' |
Allowance for loan losses | -13,065 | -12,870 | -13,174 | -13,020 | -12,359 | -11,793 |
Commercial and industrial | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 385,991 | ' | 357,056 | ' | ' | ' |
Allowance for loan losses | -7,550 | -7,697 | -8,365 | -7,633 | -7,396 | -7,297 |
Commercial construction | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 144,553 | ' | 132,507 | ' | ' | ' |
Allowance for loan losses | -3,741 | -3,589 | -3,493 | -3,154 | -3,486 | -3,456 |
Retail | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 223,654 | ' | 215,718 | ' | ' | ' |
Residential | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 139,134 | ' | 132,721 | ' | ' | ' |
Allowance for loan losses | -1,266 | -1,176 | -1,057 | -1,033 | -975 | -854 |
Home Equity | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 76,234 | ' | 74,354 | ' | ' | ' |
Allowance for loan losses | -685 | -634 | -653 | -682 | -672 | -728 |
Consumer | ' | ' | ' | ' | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans | 8,286 | ' | 8,643 | ' | ' | ' |
Allowance for loan losses | ($221) | ($206) | ($225) | ($149) | ($128) | ($126) |
Loans_Loan_Categories_Narrativ
Loans - Loan Categories Narrative (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
payment | ||
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 | $47.70 | $34.50 |
Participations loans sold that are still serviced amount | 48.3 | 52.1 |
Residential | ' | ' |
Schedule of Loans by Loan Classification [Line Items] | ' | ' |
Early Payment Default Period | 4 | ' |
Amount of loans serviced for others | $19.90 | $20.60 |
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 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 | ' | ' |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | $417,859 | $436,082 |
Commercial Real Estate | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | 298,401 | 320,908 |
Residential | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | 102,464 | 97,626 |
Home Equity | ' | ' |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Loans pledged to the FHLB for borrowing capacity | $16,994 | $17,548 |
Allowance_For_Loan_Loss_Advers
Allowance For Loan Loss - Adversely Classified Loans (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | $1,592,913 | $1,525,580 |
Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 838,715 | 820,299 |
Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 385,991 | 357,056 |
Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 144,553 | 132,507 |
Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 139,134 | 132,721 |
Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 76,234 | 74,354 |
Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 8,286 | 8,643 |
Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 26,386 | 26,363 |
Substandard | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 11,993 | 13,545 |
Substandard | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 8,804 | 7,908 |
Substandard | Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 3,370 | 3,358 |
Substandard | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,599 | 1,012 |
Substandard | Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 573 | 500 |
Substandard | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 47 | 40 |
Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,311 | 1,317 |
Doubtful | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,227 | 1,266 |
Doubtful | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 57 | 51 |
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 | 27 | 0 |
Doubtful | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 0 | 0 |
Loss | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 172 | 236 |
Loss | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 111 | 0 |
Loss | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 61 | 236 |
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 |
Not Adversely Classified | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 1,565,044 | 1,497,664 |
Not Adversely Classified | Commercial real estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 825,384 | 805,488 |
Not Adversely Classified | Commercial and industrial | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 377,069 | 348,861 |
Not Adversely Classified | Commercial construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 141,183 | 129,149 |
Not Adversely Classified | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 137,535 | 131,709 |
Not Adversely Classified | Home Equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | 75,634 | 73,854 |
Not Adversely Classified | Consumer | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Gross loans | $8,239 | $8,603 |
Allowance_For_Loan_Loss_Past_D
Allowance For Loan Loss - Past Due and Non-Accrual Loans (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |
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 | $8,338,000 | $3,445,000 | ' |
Loans 60-89 Days Past Due | 2,002,000 | 2,638,000 | ' |
Non-accrual loans | 17,954,000 | 18,346,000 | ' |
Total Past Due Loans | 28,294,000 | 24,429,000 | ' |
Current Loans | 1,564,619,000 | 1,501,151,000 | ' |
Gross loans | 1,592,913,000 | 1,525,580,000 | ' |
The ratio of non-accrual loans to total loans | 1.13% | 1.20% | 1.49% |
Additional funding commitments for loans on non-accrual | 1,000,000 | ' | ' |
Commercial real estate | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Loans 30-59 Days Past Due | 4,554,000 | 1,142,000 | ' |
Loans 60-89 Days Past Due | 1,590,000 | 1,575,000 | ' |
Non-accrual loans | 10,131,000 | 10,561,000 | ' |
Total Past Due Loans | 16,275,000 | 13,278,000 | ' |
Current Loans | 822,440,000 | 807,021,000 | ' |
Gross loans | 838,715,000 | 820,299,000 | ' |
Commercial and industrial | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Loans 30-59 Days Past Due | 1,470,000 | 680,000 | ' |
Loans 60-89 Days Past Due | 399,000 | 908,000 | ' |
Non-accrual loans | 5,045,000 | 5,743,000 | ' |
Total Past Due Loans | 6,914,000 | 7,331,000 | ' |
Current Loans | 379,077,000 | 349,725,000 | ' |
Gross loans | 385,991,000 | 357,056,000 | ' |
Commercial construction | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Loans 30-59 Days Past Due | 185,000 | 196,000 | ' |
Loans 60-89 Days Past Due | 0 | 0 | ' |
Non-accrual loans | 1,053,000 | 1,118,000 | ' |
Total Past Due Loans | 1,238,000 | 1,314,000 | ' |
Current Loans | 143,315,000 | 131,193,000 | ' |
Gross loans | 144,553,000 | 132,507,000 | ' |
Residential | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Loans 30-59 Days Past Due | 1,789,000 | 1,110,000 | ' |
Loans 60-89 Days Past Due | 0 | 127,000 | ' |
Non-accrual loans | 1,224,000 | 633,000 | ' |
Total Past Due Loans | 3,013,000 | 1,870,000 | ' |
Current Loans | 136,121,000 | 130,851,000 | ' |
Gross loans | 139,134,000 | 132,721,000 | ' |
Home Equity | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Loans 30-59 Days Past Due | 310,000 | 211,000 | ' |
Loans 60-89 Days Past Due | 0 | 10,000 | ' |
Non-accrual loans | 381,000 | 281,000 | ' |
Total Past Due Loans | 691,000 | 502,000 | ' |
Current Loans | 75,543,000 | 73,852,000 | ' |
Gross loans | 76,234,000 | 74,354,000 | ' |
Consumer | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Loans 30-59 Days Past Due | 30,000 | 106,000 | ' |
Loans 60-89 Days Past Due | 13,000 | 18,000 | ' |
Non-accrual loans | 120,000 | 10,000 | ' |
Total Past Due Loans | 163,000 | 134,000 | ' |
Current Loans | 8,123,000 | 8,509,000 | ' |
Gross loans | 8,286,000 | 8,643,000 | ' |
Deposit liabilities reclassified as loans receivable, 90 days or more past due | 105,000 | 3,000 | ' |
Not Adversely Classified | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Gross loans | 1,565,044,000 | 1,497,664,000 | ' |
Non-accrual loans not adversely classified | 267,000 | 577,000 | ' |
Not Adversely Classified | Commercial real estate | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Gross loans | 825,384,000 | 805,488,000 | ' |
Not Adversely Classified | Commercial and industrial | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Gross loans | 377,069,000 | 348,861,000 | ' |
Not Adversely Classified | Commercial construction | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Gross loans | 141,183,000 | 129,149,000 | ' |
Not Adversely Classified | Residential | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Gross loans | 137,535,000 | 131,709,000 | ' |
Not Adversely Classified | Home Equity | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Gross loans | 75,634,000 | 73,854,000 | ' |
Not Adversely Classified | Consumer | ' | ' | ' |
Schedule of Aging of Financing Receivables [Line Items] | ' | ' | ' |
Gross loans | $8,239,000 | $8,603,000 | ' |
Allowance_For_Loan_Loss_Impair
Allowance For Loan Loss - Impaired Loans (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Total recorded investment in impaired loans | $28,908,000 | ' | $28,908,000 | ' | $29,826,000 |
Total accruing impaired loans | 11,600,000 | ' | 11,600,000 | ' | 11,900,000 |
Impaired non-accrual loans | 17,300,000 | ' | 17,300,000 | ' | 17,900,000 |
Unpaid contractual principal balance | 32,732,000 | ' | 32,732,000 | ' | 33,910,000 |
Recorded investment with no allowance | 19,698,000 | ' | 19,698,000 | ' | 18,798,000 |
Recorded investment with allowance | 9,210,000 | ' | 9,210,000 | ' | 11,028,000 |
Related allowance | 2,900,000 | ' | 2,900,000 | ' | 4,399,000 |
Average recorded investment | 28,307,000 | 30,958,000 | 28,745,000 | 33,431,000 | ' |
Interest income recognized | 115,000 | 87,000 | 229,000 | 240,000 | ' |
Additional funding commitments on impaired loans | 1,000,000 | ' | 1,000,000 | ' | ' |
Commercial real estate | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Total recorded investment in impaired loans | 14,210,000 | ' | 14,210,000 | ' | 15,139,000 |
Unpaid contractual principal balance | 16,284,000 | ' | 16,284,000 | ' | 17,420,000 |
Recorded investment with no allowance | 13,495,000 | ' | 13,495,000 | ' | 12,105,000 |
Recorded investment with allowance | 715,000 | ' | 715,000 | ' | 3,034,000 |
Related allowance | 191,000 | ' | 191,000 | ' | 507,000 |
Average recorded investment | 13,357,000 | 17,868,000 | 13,758,000 | 20,155,000 | ' |
Interest income recognized | 44,000 | 51,000 | 94,000 | 149,000 | ' |
Commercial and industrial | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Total recorded investment in impaired loans | 10,041,000 | ' | 10,041,000 | ' | 10,579,000 |
Unpaid contractual principal balance | 11,603,000 | ' | 11,603,000 | ' | 12,220,000 |
Recorded investment with no allowance | 4,342,000 | ' | 4,342,000 | ' | 4,902,000 |
Recorded investment with allowance | 5,699,000 | ' | 5,699,000 | ' | 5,677,000 |
Related allowance | 1,632,000 | ' | 1,632,000 | ' | 2,901,000 |
Average recorded investment | 10,337,000 | 9,252,000 | 10,583,000 | 9,427,000 | ' |
Interest income recognized | 42,000 | 24,000 | 80,000 | 54,000 | ' |
Commercial construction | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Total recorded investment in impaired loans | 3,287,000 | ' | 3,287,000 | ' | 3,358,000 |
Unpaid contractual principal balance | 3,411,000 | ' | 3,411,000 | ' | 3,464,000 |
Recorded investment with no allowance | 1,410,000 | ' | 1,410,000 | ' | 1,426,000 |
Recorded investment with allowance | 1,877,000 | ' | 1,877,000 | ' | 1,932,000 |
Related allowance | 827,000 | ' | 827,000 | ' | 830,000 |
Average recorded investment | 3,249,000 | 2,906,000 | 3,277,000 | 2,902,000 | ' |
Interest income recognized | 26,000 | 9,000 | 52,000 | 33,000 | ' |
Residential | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Total recorded investment in impaired loans | 1,040,000 | ' | 1,040,000 | ' | 619,000 |
Unpaid contractual principal balance | 1,100,000 | ' | 1,100,000 | ' | 673,000 |
Recorded investment with no allowance | 356,000 | ' | 356,000 | ' | 365,000 |
Recorded investment with allowance | 684,000 | ' | 684,000 | ' | 254,000 |
Related allowance | 171,000 | ' | 171,000 | ' | 107,000 |
Average recorded investment | 1,043,000 | 804,000 | 901,000 | 807,000 | ' |
Interest income recognized | 3,000 | 3,000 | 3,000 | 4,000 | ' |
Home Equity | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Total recorded investment in impaired loans | 302,000 | ' | 302,000 | ' | 108,000 |
Unpaid contractual principal balance | 306,000 | ' | 306,000 | ' | 110,000 |
Recorded investment with no allowance | 94,000 | ' | 94,000 | ' | 0 |
Recorded investment with allowance | 208,000 | ' | 208,000 | ' | 108,000 |
Related allowance | 52,000 | ' | 52,000 | ' | 31,000 |
Average recorded investment | 294,000 | 109,000 | 201,000 | 124,000 | ' |
Interest income recognized | 0 | 0 | 0 | 0 | ' |
Consumer | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Total recorded investment in impaired loans | 28,000 | ' | 28,000 | ' | 23,000 |
Unpaid contractual principal balance | 28,000 | ' | 28,000 | ' | 23,000 |
Recorded investment with no allowance | 1,000 | ' | 1,000 | ' | 0 |
Recorded investment with allowance | 27,000 | ' | 27,000 | ' | 23,000 |
Related allowance | 27,000 | ' | 27,000 | ' | 23,000 |
Average recorded investment | 27,000 | 19,000 | 25,000 | 16,000 | ' |
Interest income recognized | $0 | $0 | $0 | $0 | ' |
Allowance_For_Loan_Loss_Troubl
Allowance For Loan Loss - Troubled Debt Restructures (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
restructuring | restructuring | restructuring | restructuring | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Total Troubled Debt Restructure (TDR) loans | $19,500,000 | ' | $19,500,000 | ' | $20,900,000 |
TDR loans on accrual status | 11,200,000 | ' | 11,200,000 | ' | 11,400,000 |
TDR loans included in non-performing loans | 8,400,000 | ' | 8,400,000 | ' | 9,500,000 |
Additional Funding Commitments on TDR loans | 52,000 | ' | 52,000 | ' | ' |
Number of restructurings | 6 | 1 | 9 | 1 | ' |
Pre-modification outstanding recorded investment | 357,000 | 100,000 | 874,000 | 100,000 | ' |
Post-modification outstanding recorded investment | 354,000 | 62,000 | 853,000 | 62,000 | ' |
Number of TDR's that defaulted | 1 | 2 | 1 | 4 | ' |
Post-modification outstanding recorded investment | 66,000 | 715,000 | 66,000 | 883,000 | ' |
Specific reserves allocated to TDRs | 24,000 | 1,000 | 24,000 | 1,000 | ' |
Interest payments received on nonaccruing TDR loans excluded from income | ' | ' | 21,000 | ' | ' |
Charge-offs associated with TDRs | ' | ' | 66,000 | 38,000 | ' |
Number of TDRs transferred to OREO durng the period | ' | ' | ' | 2 | ' |
Carry value of TDRs transferred to OREO during the period | ' | ' | ' | 167,000 | ' |
Commercial real estate | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Number of restructurings | 0 | 0 | 1 | 0 | ' |
Pre-modification outstanding recorded investment | 0 | 0 | 450,000 | 0 | ' |
Post-modification outstanding recorded investment | 0 | 0 | 434,000 | 0 | ' |
Number of TDR's that defaulted | 0 | 0 | 0 | 1 | ' |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 137,000 | ' |
Commercial and industrial | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Number of restructurings | 4 | 1 | 6 | 1 | ' |
Pre-modification outstanding recorded investment | 159,000 | 100,000 | 226,000 | 100,000 | ' |
Post-modification outstanding recorded investment | 157,000 | 62,000 | 222,000 | 62,000 | ' |
Number of TDR's that defaulted | 1 | 0 | 1 | 0 | ' |
Post-modification outstanding recorded investment | 66,000 | 0 | 66,000 | 0 | ' |
Commercial construction | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Number of restructurings | 0 | 0 | 0 | 0 | ' |
Pre-modification outstanding recorded investment | 0 | 0 | 0 | 0 | ' |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 0 | ' |
Number of TDR's that defaulted | 0 | 2 | 0 | 3 | ' |
Post-modification outstanding recorded investment | 0 | 715,000 | 0 | 746,000 | ' |
Residential | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Number of restructurings | 1 | 0 | 1 | 0 | ' |
Pre-modification outstanding recorded investment | 125,000 | 0 | 125,000 | 0 | ' |
Post-modification outstanding recorded investment | 124,000 | 0 | 124,000 | 0 | ' |
Number of TDR's that defaulted | 0 | 0 | 0 | 0 | ' |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 0 | ' |
Home Equity | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Number of restructurings | 1 | 0 | 1 | 0 | ' |
Pre-modification outstanding recorded investment | 73,000 | 0 | 73,000 | 0 | ' |
Post-modification outstanding recorded investment | 73,000 | 0 | 73,000 | 0 | ' |
Number of TDR's that defaulted | 0 | 0 | 0 | 0 | ' |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 0 | ' |
Consumer | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Number of restructurings | 0 | 0 | 0 | 0 | ' |
Pre-modification outstanding recorded investment | 0 | 0 | 0 | 0 | ' |
Post-modification outstanding recorded investment | 0 | 0 | 0 | 0 | ' |
Number of TDR's that defaulted | 0 | 0 | 0 | 0 | ' |
Post-modification outstanding recorded investment | $0 | $0 | $0 | $0 | ' |
Allowance_For_Loan_Loss_Other_
Allowance For Loan Loss - Other Real Estate Owned (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Carry value of OREO | $114 | ' | $114 |
Net gains on sales of OREO | $0 | $121 | ' |
Other real estate owned | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Number of OREO properties owned | 1 | ' | 1 |
Allowance_For_Loan_Loss_Allowa
Allowance For Loan Loss - Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Allowance for loan losses to total loans ratio | 1.67% | 1.77% | 1.67% | 1.77% | 1.77% |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning Balance | $26,172 | $25,016 | $26,967 | $24,254 | ' |
Provision for loan losses | 200 | 534 | 400 | 1,317 | ' |
Recoveries | 238 | 145 | 276 | 307 | ' |
Less: Charge offs | 82 | 24 | 1,115 | 207 | ' |
Ending Balance | 26,528 | 25,671 | 26,528 | 25,671 | ' |
Allotted to loans individually evaluated for impairment | 2,900 | 4,174 | 2,900 | 4,174 | ' |
Allotted to loans collectively evaluated for impairment | 23,628 | 21,497 | 23,628 | 21,497 | ' |
Loans individually evaluated for impairment | 28,908 | ' | 28,908 | ' | 29,826 |
Loans collectively evaluated for impairment | 1,562,495 | ' | 1,562,495 | ' | 1,494,230 |
Deferred loan origination fees, net | -1,510 | ' | -1,510 | ' | -1,524 |
Gross loans | 1,592,913 | ' | 1,592,913 | ' | 1,525,580 |
Total loans | 1,591,403 | ' | 1,591,403 | ' | 1,524,056 |
Commercial real estate | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning Balance | 12,870 | 12,359 | 13,174 | 11,793 | ' |
Provision for loan losses | 195 | 614 | 94 | 1,180 | ' |
Recoveries | 0 | 61 | 0 | 61 | ' |
Less: Charge offs | 0 | 14 | 203 | 14 | ' |
Ending Balance | 13,065 | 13,020 | 13,065 | 13,020 | ' |
Allotted to loans individually evaluated for impairment | 191 | 915 | 191 | 915 | ' |
Allotted to loans collectively evaluated for impairment | 12,874 | 12,105 | 12,874 | 12,105 | ' |
Loans individually evaluated for impairment | 14,210 | ' | 14,210 | ' | 15,139 |
Loans collectively evaluated for impairment | 824,505 | ' | 824,505 | ' | 805,160 |
Gross loans | 838,715 | ' | 838,715 | ' | 820,299 |
Commercial and industrial | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning Balance | 7,697 | 7,396 | 8,365 | 7,297 | ' |
Provision for loan losses | -270 | 207 | -152 | 428 | ' |
Recoveries | 198 | 31 | 224 | 41 | ' |
Less: Charge offs | 75 | 1 | 887 | 133 | ' |
Ending Balance | 7,550 | 7,633 | 7,550 | 7,633 | ' |
Allotted to loans individually evaluated for impairment | 1,632 | 2,302 | 1,632 | 2,302 | ' |
Allotted to loans collectively evaluated for impairment | 5,918 | 5,331 | 5,918 | 5,331 | ' |
Loans individually evaluated for impairment | 10,041 | ' | 10,041 | ' | 10,579 |
Loans collectively evaluated for impairment | 375,950 | ' | 375,950 | ' | 346,477 |
Gross loans | 385,991 | ' | 385,991 | ' | 357,056 |
Commercial construction | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning Balance | 3,589 | 3,486 | 3,493 | 3,456 | ' |
Provision for loan losses | 122 | -382 | 218 | -352 | ' |
Recoveries | 30 | 50 | 30 | 50 | ' |
Less: Charge offs | 0 | 0 | 0 | 0 | ' |
Ending Balance | 3,741 | 3,154 | 3,741 | 3,154 | ' |
Allotted to loans individually evaluated for impairment | 827 | 739 | 827 | 739 | ' |
Allotted to loans collectively evaluated for impairment | 2,914 | 2,415 | 2,914 | 2,415 | ' |
Loans individually evaluated for impairment | 3,287 | ' | 3,287 | ' | 3,358 |
Loans collectively evaluated for impairment | 141,266 | ' | 141,266 | ' | 129,149 |
Gross loans | 144,553 | ' | 144,553 | ' | 132,507 |
Residential | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning Balance | 1,176 | 975 | 1,057 | 854 | ' |
Provision for loan losses | 90 | 58 | 209 | 51 | ' |
Recoveries | 0 | 0 | 0 | 128 | ' |
Less: Charge offs | 0 | 0 | 0 | 0 | ' |
Ending Balance | 1,266 | 1,033 | 1,266 | 1,033 | ' |
Allotted to loans individually evaluated for impairment | 171 | 163 | 171 | 163 | ' |
Allotted to loans collectively evaluated for impairment | 1,095 | 870 | 1,095 | 870 | ' |
Loans individually evaluated for impairment | 1,040 | ' | 1,040 | ' | 619 |
Loans collectively evaluated for impairment | 138,094 | ' | 138,094 | ' | 132,102 |
Gross loans | 139,134 | ' | 139,134 | ' | 132,721 |
Home Equity | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning Balance | 634 | 672 | 653 | 728 | ' |
Provision for loan losses | 51 | 10 | 32 | -23 | ' |
Recoveries | 0 | 0 | 0 | 21 | ' |
Less: Charge offs | 0 | 0 | 0 | 44 | ' |
Ending Balance | 685 | 682 | 685 | 682 | ' |
Allotted to loans individually evaluated for impairment | 52 | 36 | 52 | 36 | ' |
Allotted to loans collectively evaluated for impairment | 633 | 646 | 633 | 646 | ' |
Loans individually evaluated for impairment | 302 | ' | 302 | ' | 108 |
Loans collectively evaluated for impairment | 75,932 | ' | 75,932 | ' | 74,246 |
Gross loans | 76,234 | ' | 76,234 | ' | 74,354 |
Consumer | ' | ' | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning Balance | 206 | 128 | 225 | 126 | ' |
Provision for loan losses | 12 | 27 | -1 | 33 | ' |
Recoveries | 10 | 3 | 22 | 6 | ' |
Less: Charge offs | 7 | 9 | 25 | 16 | ' |
Ending Balance | 221 | 149 | 221 | 149 | ' |
Allotted to loans individually evaluated for impairment | 27 | 19 | 27 | 19 | ' |
Allotted to loans collectively evaluated for impairment | 194 | 130 | 194 | 130 | ' |
Loans individually evaluated for impairment | 28 | ' | 28 | ' | 23 |
Loans collectively evaluated for impairment | 8,258 | ' | 8,258 | ' | 8,620 |
Gross loans | $8,286 | ' | $8,286 | ' | $8,643 |
Supplemental_Retirement_Plan_a1
Supplemental Retirement Plan and Other Postretirement Benefit Obligations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
officer | officer | |||
Supplemental Retirement Plan | ' | ' | ' | ' |
Defined Benefit Plan Disclosures [Line Items] | ' | ' | ' | ' |
Defined Benefit Plan, Number of Active Executive Officers under Plan | 2 | ' | 2 | ' |
Defined Benefit Plan, Number of Former Executive Officers under Plan | 1 | ' | 1 | ' |
Term of SERP benefits | ' | ' | '20 years | ' |
Net Periodic Benefit Cost, Interest Only | $35 | $34 | $71 | $67 |
Benefits Paid | 69 | 69 | 138 | 138 |
Remaining accrual for benefit obligation in current year | ' | ' | 71 | ' |
Supplemental Life Insurance Plan | ' | ' | ' | ' |
Defined Benefit Plan Disclosures [Line Items] | ' | ' | ' | ' |
Net Periodic Benefit Cost, Interest Only | $18 | $18 | $36 | $36 |
StockBased_Compensation_Summar
Stock-Based Compensation Summary Information for Options Granted (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock option awards granted | 31,229 | 44,175 |
Stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Term in years | '10 years | '10 years |
Expected volatility | 47.00% | 48.00% |
Market price on date of grant | 20.29 | 16.43 |
Per share weighted average fair value | 8.32 | 6.56 |
Weighted Average | Stock options | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected dividend yield | 2.88% | 2.99% |
Expected life in years | '7 years | '7 years |
Risk-free interest rate | 2.19% | 1.29% |
Fair Value as a percentage of market value at grant date | 41.00% | 40.00% |
StockBased_Compensation_Stock_
Stock-Based Compensation Stock Options, Restricted Stock Awards, and Stock in Lieu of Directors' Fees (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||||||||||||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 02, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock options | Stock options | Stock options | Stock options | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Common Stock | Common stock in lieu of cash | Common stock in lieu of cash | Common stock in lieu of cash | Common stock in lieu of cash | Common stock in lieu of cash | Year Two | Year Two | Vesting, Year Four | Vesting, Year Four | |||||||
Employee | Director | Director | Director | Director | Director | Director | Stock options | Stock options | Stock options | Stock options | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | $435 | $520 | $916 | $859 | ' | $86 | $202 | $190 | $269 | $282 | $264 | $590 | $481 | ' | ' | ' | $67 | $54 | $136 | $109 | $194 | ' | ' | ' | ' |
Options granted, vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | 50.00% | 50.00% |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock awards in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,844 | 78,806 | ' | ' | 2,142 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Restricted Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20.29 | $16.43 | ' | ' | $20.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued in lieu of cash to directors | 11,136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair market share price | ' | ' | ' | ' | ' | $17.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Restri
Stock-Based Compensation Restricted Stock Grants (Details) (Restricted Stock, USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock awards in period | 58,844 | 78,806 |
Weighted Average Grant Date Fair Value, Restricted Stock | $20.29 | $16.43 |
Employee | Four year vesting | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock awards in period | 19,167 | 24,925 |
Employee | Performance-based vesting | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock awards in period | 33,017 | 47,735 |
Director | Two year vesting | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock awards in period | 6,660 | 6,146 |
Earnings_Per_Share_Earnings_Pe
Earnings Per Share Earnings Per Share (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Basic weighted average common shares outstanding | 10,124,372 | 9,825,335 | 10,077,502 | 9,770,559 |
Dilutive shares | 80,604 | 64,304 | 84,685 | 69,457 |
Diluted weighted average common shares outstanding | 10,204,976 | 9,889,639 | 10,162,187 | 9,840,016 |
Stock options | ' | ' | ' | ' |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | 18,392 | ' |
Fair_Value_Measurements_Recurr
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Specific allowance for collateral dependent impaired loans | $2,200,000 | ' | $3,200,000 |
Net gains on sales of OREO | 0 | 121,000 | ' |
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 | 200,120,000 | ' | 202,201,000 |
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 | 14,725,000 | ' | 13,168,000 |
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 | 3,357,000 | ' | 4,324,000 |
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 | 14,725,000 | ' | 13,168,000 |
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 | 200,120,000 | ' | 202,201,000 |
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 | 3,357,000 | ' | 4,324,000 |
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 | 6,250,000 | ' | 6,542,000 |
Other real estate owned, Fair Value | 114,000 | ' | 114,000 |
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 | 6,250,000 | ' | 6,542,000 |
Other real estate owned, Fair Value | $114,000 | ' | $114,000 |
Fair_Value_Measurements_Quanti
Fair Value Measurements - Quantitative (Details) (Fair Value, Inputs, Level 3, USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||
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 | $3,357 | $4,324 | $3,357 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Impaired loans (collateral dependent), Fair Value | ' | ' | ' | 6,250 | 6,542 | 6,250 | [1] | ' | ' | ' | ' | ' | |
Other real estate owned, Fair Value | ' | ' | ' | $114 | $114 | ' | ' | ' | $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) | 6 Months Ended |
Jun. 30, 2014 | |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Fair Value | ' | ' | ||
Financial assets: | ' | ' | ||
Loans held for sale | $2,453 | [1] | $1,255 | [1] |
Loans, net | 1,588,955 | [1] | 1,516,809 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 485 | [1] | 36,535 | [1] |
Junior subordinated debentures | 12,529 | [1] | 11,358 | [1] |
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 | 2,453 | [1] | 1,255 | [1] |
Loans, net | 0 | [1] | 0 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 485 | [1] | 36,535 | [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 | 1,588,955 | [1] | 1,516,809 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 0 | [1] | 0 | [1] |
Junior subordinated debentures | 12,529 | [1] | 11,358 | [1] |
Carrying Amount | ' | ' | ||
Financial assets: | ' | ' | ||
Loans held for sale | 2,431 | [1] | 1,255 | [1] |
Loans, net | 1,564,875 | [1] | 1,497,089 | [1] |
Financial liabilities: | ' | ' | ||
Borrowed funds | 484 | [1] | 36,534 | [1] |
Junior subordinated debentures | 10,825 | [1] | 10,825 | [1] |
Certificates of deposit | Fair Value | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | 277,484 | [1] | 250,045 | [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 | 277,484 | [1] | 250,045 | [1] |
Certificates of deposit | Fair Value, Inputs, Level 3 | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | 0 | [1] | 0 | [1] |
Certificates of deposit | Carrying Amount | ' | ' | ||
Financial liabilities: | ' | ' | ||
Certificates of deposit | $278,487 | [1] | $251,650 | [1] |
[1] | Excluded from this table are certain financial instruments with carrying values that approximated their fair value at the dates indicated, 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. |