Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ENTERPRISE BANCORP INC /MA/ | |
Entity Central Index Key | 1,018,399 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 10,360,876 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 35,093 | $ 30,044 |
Interest-earning deposits | 20,693 | 10,102 |
Total cash and cash equivalents | 55,786 | 40,146 |
Investment securities at fair value | 281,027 | 245,065 |
Federal Home Loan Bank Stock | 4,239 | 3,357 |
Loans held for sale | 1,325 | 2,371 |
Loans, less allowance for loan losses of $28,130 at September 30, 2015 and $27,121 at December 31, 2014 | 1,762,478 | 1,645,483 |
Premises and equipment | 30,153 | 30,370 |
Accrued interest receivable | 7,734 | 6,733 |
Deferred income taxes, net | 13,684 | 12,852 |
Bank-owned life insurance | 28,063 | 16,315 |
Prepaid income taxes | 0 | 770 |
Prepaid expenses and other assets | 5,169 | 13,110 |
Goodwill | 5,656 | 5,656 |
Total assets | 2,195,314 | 2,022,228 |
Liabilities | ||
Deposits | 1,963,615 | 1,768,546 |
Borrowed funds | 24,171 | 58,900 |
Subordinated debt | 14,819 | 10,825 |
Accrued expenses and other liabilities | 15,440 | 16,441 |
Income taxes payable | 313 | 0 |
Accrued interest payable | 252 | 566 |
Total liabilities | $ 2,018,610 | $ 1,855,278 |
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; 10,359,395 shares issued and outstanding at September 30, 2015 (including 145,762 shares of unvested participating restricted awards), and 10,207,943 shares issued and outstanding at December 31, 2014 (including 157,694 shares of unvested participating restricted awards) | 104 | 102 |
Additional paid-in-capital | 60,042 | 57,130 |
Retained earnings | 113,515 | 105,951 |
Accumulated other comprehensive income | 3,043 | 3,767 |
Total stockholders' equity | 176,704 | 166,950 |
Total liabilities and stockholders' equity | $ 2,195,314 | $ 2,022,228 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 28,130 | $ 27,121 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 10,359,395 | 10,207,943 |
Common stock, shares outstanding | 10,359,395 | 10,207,943 |
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 | 145,762 | 157,694 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest and dividend income: | ||||
Loans and loans held for sale | $ 19,584 | $ 18,234 | $ 57,115 | $ 53,117 |
Investment securities | 1,377 | 1,131 | 3,825 | 3,204 |
Other interest-earning assets | 62 | 29 | 137 | 84 |
Total interest and dividend income | 21,023 | 19,394 | 61,077 | 56,405 |
Interest expense: | ||||
Deposits | 1,022 | 1,005 | 3,033 | 3,031 |
Borrowed funds | 10 | 3 | 32 | 33 |
Subordinated debt | 232 | 294 | 837 | 883 |
Total interest expense | 1,264 | 1,302 | 3,902 | 3,947 |
Net interest income | 19,759 | 18,092 | 57,175 | 52,458 |
Provision for loan losses | 250 | 765 | 2,100 | 1,165 |
Net interest income after provision for loan losses | 19,509 | 17,327 | 55,075 | 51,293 |
Non-interest income: | ||||
Investment advisory fees | 1,182 | 1,202 | 3,568 | 3,451 |
Deposit and interchange fees | 1,207 | 1,268 | 3,575 | 3,727 |
Income on bank-owned life insurance,net | 157 | 99 | 358 | 313 |
Net gains on sales of investment securities | 7 | 215 | 1,363 | 830 |
Gains on sales of loans | 89 | 135 | 373 | 283 |
Other income | 743 | 621 | 2,073 | 1,679 |
Total non-interest income | 3,385 | 3,540 | 11,310 | 10,283 |
Non-interest expense: | ||||
Salaries and employee benefits | 10,255 | 9,454 | 29,934 | 27,852 |
Occupancy and equipment expenses | 1,775 | 1,588 | 5,484 | 4,881 |
Technology and telecommunications expenses | 1,428 | 1,248 | 4,223 | 3,844 |
Advertising and public relations expenses | 641 | 575 | 2,180 | 1,932 |
Audit, legal and other professional fees | 564 | 453 | 1,305 | 1,294 |
Deposit insurance premiums | 299 | 297 | 889 | 851 |
Supplies and postage expenses | 226 | 257 | 736 | 776 |
Investment advisory and custodial expenses | 102 | 143 | 237 | 409 |
Other operating expenses | 1,258 | 1,100 | 4,037 | 3,546 |
Total non-interest expense | 16,548 | 15,115 | 49,025 | 45,385 |
Income before income taxes | 6,346 | 5,752 | 17,360 | 16,191 |
Provision for income taxes | 2,054 | 1,921 | 5,933 | 5,540 |
Net income | $ 4,292 | $ 3,831 | $ 11,427 | $ 10,651 |
Basic earnings per share | $ 0.41 | $ 0.38 | $ 1.11 | $ 1.05 |
Diluted earnings per share | $ 0.41 | $ 0.37 | $ 1.10 | $ 1.05 |
Basic weighted average common shares outstanding | 10,349,232 | 10,143,055 | 10,308,310 | 10,099,593 |
Diluted weighted average common shares outstanding | 10,414,254 | 10,228,501 | 10,373,464 | 10,184,264 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,292 | $ 3,831 | $ 11,427 | $ 10,651 |
Other comprehensive (loss) income, net of taxes: | ||||
Gross unrealized holding gains (losses) on investments arising during the period | 1,065 | (283) | 234 | 2,905 |
Income tax (expense) benefit | (388) | 113 | (70) | (1,049) |
Net unrealized holding gains (losses), net of tax | 677 | (170) | 164 | 1,856 |
Less: Reclassification adjustment for net gains included in net income | ||||
Net realized gains on sales of securities during the period | 7 | 215 | 1,363 | 830 |
Income tax expense | (2) | (75) | (475) | (294) |
Reclassification adjustment for gains realized, net of tax | 5 | 140 | 888 | 536 |
Total other comprehensive income (loss) | 672 | (310) | (724) | 1,320 |
Comprehensive income | $ 4,964 | $ 3,521 | $ 10,703 | $ 11,971 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Balance, beginning at Dec. 31, 2014 | $ 166,950 | $ 102 | $ 57,130 | $ 105,951 | $ 3,767 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 11,427 | 11,427 | |||
Total other comprehensive income (loss) | (724) | (724) | |||
Tax benefit from exercise of stock options | 4 | 4 | |||
Common stock dividend paid ($0.375 per share) | (3,863) | (3,863) | |||
Common stock issued under dividend reinvestment plan | 957 | 1 | 956 | ||
Common stock issued other | 129 | 0 | 129 | ||
Stock-based compensation | 1,417 | 1 | 1,416 | ||
Stock options exercised, net | 407 | 0 | 407 | ||
Balance, ending at Sep. 30, 2015 | $ 176,704 | $ 104 | $ 60,042 | $ 113,515 | $ 3,043 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 9 Months Ended |
Sep. 30, 2015$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Common stock dividend paid, per share | $ 0.375 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Cash flows from operating activities | |||||
Net income | $ 4,292 | $ 3,831 | $ 11,427 | $ 10,651 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for loan losses | 250 | 765 | 2,100 | 1,165 | |
Depreciation and amortization | 4,162 | 4,089 | |||
Stock-based compensation expense | 411 | 409 | 1,365 | 1,325 | |
Mortgage loans originated for sale | (18,013) | (13,948) | |||
Proceeds from mortgage loans sold | 19,432 | 13,841 | |||
Net gains on sales of loans | (373) | (283) | |||
Net gains on sales of OREO | (154) | 0 | |||
Net gains on sales of investments | (7) | (215) | (1,363) | (830) | |
Income on bank-owned life insurance,net | (157) | (99) | (358) | (313) | |
Changes in: | |||||
Accrued interest receivable | (1,001) | (498) | |||
Prepaid expenses and other assets | 7,807 | (1,726) | |||
Deferred income taxes | (427) | 527 | |||
Accrued expenses and other liabilities | 1,700 | 5,083 | |||
Subordinated debt issuance costs | (190) | 0 | |||
Accrued interest payable | (314) | (314) | |||
Net cash provided by operating activities | 25,800 | 18,769 | |||
Cash flows from investing activities: | |||||
Proceeds from sales of investment securities available for sale | 13,677 | 24,329 | |||
Net (purchases) proceeds from FHLB capital stock | (882) | 967 | |||
Proceeds from maturities, calls and pay-downs of investment securities | 21,276 | 30,311 | |||
Purchase of investment securities | (73,940) | (74,752) | |||
Net increase in loans | (119,095) | (90,316) | |||
Additions to premises and equipment, net | (2,970) | (2,949) | |||
Proceeds from OREO sales and payments | 1,015 | 0 | |||
Purchase of OREO | 0 | (457) | |||
Purchase of bank-owned life insurance | (11,390) | 0 | |||
Net cash used in investing activities | (172,309) | (112,867) | |||
Cash flows from financing activities: | |||||
Net increase in deposits | 195,069 | 132,804 | |||
Net decrease in borrowed funds | (34,729) | (35,530) | |||
Repayment of subordinated debt | (10,825) | 0 | |||
Proceeds from issuance of subordinated debt | 15,000 | 0 | |||
Cash dividends paid | (3,863) | (3,632) | |||
Proceeds from issuance of common stock | 1,086 | 917 | |||
Proceeds from the exercise of stock options | 407 | 570 | |||
Tax benefit from the exercise of stock options | 4 | 3 | |||
Net cash provided by financing activities | 162,149 | 95,132 | |||
Net increase in cash and cash equivalents | 15,640 | 1,034 | |||
Cash and cash equivalents at beginning of period | 40,146 | 53,733 | $ 53,733 | ||
Cash and cash equivalents at end of period | $ 55,786 | $ 54,767 | 55,786 | 54,767 | $ 40,146 |
Supplemental financial data: | |||||
Cash Paid For: Interest | 4,216 | 4,261 | |||
Cash Paid For: Income Taxes | 5,291 | 6,175 | |||
Supplemental schedule of non-cash investing activity: | |||||
Transfer from loans to other real estate owned | 0 | 290 | |||
Transfer From Loans To Other Assets | 0 | 205 | |||
Capital expenditures incurred not yet paid | $ 0 | $ 276 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 audited consolidated financial statements and notes thereto contained in the 2014 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 13, 2015 . The Company has not changed its accounting policies from those disclosed in its 2014 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 and its subsidiaries. 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. The security corporations, which hold various types of qualifying securities, 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 greater Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. The Company also plans to open its second Nashua, NH branch in the second quarter of 2016, pending regulatory approval. Through the Bank and its subsidiaries, the Company offers a range of commercial and consumer loan products, and deposit and cash management services. The Company also offers 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"), at December 31, 2014 , the Company carried 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, were excluded from the Company's consolidated financial statements. In March 2015 , the Company redeemed in full the Junior Subordinated Debentures, which in turned allowed the Trust to redeem in full the trust preferred securities. The Company also dissolved the Trust in April 2015. See Note 5, "Borrowed Funds and Subordinated Debt," below for further information on the Company's subordinated debt. 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 unaudited consolidated interim 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 assumptions and estimates 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 2014 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 2014 Annual Report on Form 10-K for significant accounting policies. The Company has not changed its significant accounting policies from those disclosed in its 2014 Annual Report filed on Form 10-K. (c) Reporting Comprehensive Income Comprehensive income is defined as all changes to stockholders' 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 at par value 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 periodic 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, due primarily 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 September 30, 2015 . The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2013 through 2015 tax years. (f) Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU No. 2015-03, Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. Entities are required to apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The Company early adopted this ASU as of January 1, 2015 in relation to the Company's Fixed-to-Floating Rate Subordinated Notes issued in January 2015. This adoption did not have a material impact on the Company's financial statements or results of operations. In January 2014, the 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 did not have a material impact on the Company's financial statements or results of operations. In January 2014, the FASB issued ASU No. 2014-01, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for such investments using the proportional amortization method if certain conditions are met. The investor must recognize any subsequent impairment loss when it is more likely than not that the carrying amount of the investment will not be realized. Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The decision to apply the proportional amortization method of accounting is an accounting policy decision that must be applied consistently to all qualifying affordable housing project investments rather than a decision to be applied to individual investments. A reporting entity must disclose information that enables users of its financial statements to understand the nature of such investments and the effect of the measurement, and the related tax credits, on its financial position and results of operations. The amendments in this ASU are to be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods beginning after December 15, 2014. The adoption of this ASU in the first quarter of 2015 did not have a material impact on the Company's financial statements or results of operations. For information regarding recent accounting pronouncements not yet adopted by the Company, see Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," under the heading "Recent Accounting Pronouncements." |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 68,507 $ 845 $ — $ 69,352 Federal agency mortgage backed securities (MBS) (1) 95,833 1,103 320 96,616 Municipal securities 89,343 1,725 166 90,902 Corporate bonds 9,272 65 28 9,309 Certificates of deposits (2) 3,834 — 12 3,822 Total fixed income securities 266,789 3,738 526 270,001 Equity investments 9,543 1,884 401 11,026 Total available-for-sale securities, at fair value $ 276,332 $ 5,622 $ 927 $ 281,027 December 31, 2014 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 59,518 $ 318 $ 24 $ 59,812 Federal agency mortgage backed securities (MBS) (1) 88,303 1,015 516 88,802 Municipal securities 72,113 2,157 66 74,204 Corporate bonds 7,937 61 26 7,972 Total fixed income securities 227,871 3,551 632 230,790 Equity investments 11,370 3,071 166 14,275 Total available-for-sale securities, at fair value $ 239,241 $ 6,622 $ 798 $ 245,065 __________________________________________ (1) These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae (FNMA), Freddie Mac (FHLMC), Federal Farm Credit Bank, or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae (GNMA), a wholly-owned government entity. (2) Certificates of deposit ("CDs") represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. At September 30, 2015, the carrying amount of the federal agency MBS category consisted of $67.4 million in pass-through securities backed by residential mortgages, $16.5 million in collateralized mortgage obligations ("CMOs") backed by residential mortgages and $12.7 million in CMOs backed by commercial mortgages. At December 31, 2014, all of the federal agency MBS investments were backed by residential mortgages, consisting of $ 75.5 million in pass through securities and $13.3 million in CMOs. At September 30, 2015 , the equity portfolio consisted primarily of investments in a diversified group of mutual funds, with a portion of the portfolio (approximately 16% ) 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 nine months ended September 30, 2015 and 2014 , the Company did not record any fair value impairment charges on its investments. As of September 30, 2015 , there were a total of 66 investments (fixed income and equity, excluding CDs), with a fair market value of $50.3 million , in an unrealized loss position totaling $915 thousand , including unrealized losses of $309 thousand that have been temporarily impaired for 12 months or longer. Management attributes these unrealized losses to increases in market yields compared to the yields at the time the investments were purchased by the Company and the impact of market value fluctuations on the equity portion of our portfolio. Management does not consider these investments to be other-than-temporarily impaired at September 30, 2015 , 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 the Company's investments in federal agency mortgage-backed securities and federal agency obligations, the contractual cash flows of these investments are guaranteed by the respective government sponsored enterprise (FHLMC, FNMA, FFCB, or FHLB) or wholly-owned government corporation (GNMA). 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 investments' materiality, and duration of the investments' 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, and to provide assistance in assessing the credit risk of those portfolios. At September 30, 2015 , 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. As noted in the table above, a small portion of the portfolio invested in short-term CDs was also in an unrealized loss position at September 30, 2015 due to market rates. The unrealized loss was not considered to be material and the securities are expected to mature at par value. The contractual maturity distribution at September 30, 2015 of total fixed income investments was as follows: Within One Year After One, But Within Five Years After Five, But Within Ten Years After Ten Years Amortized Cost Yields Amortized Cost Yields Amortized Cost Yields Amortized Cost Yields At amortized cost: Federal agency obligations $ — — % $ 56,019 1.57 % $ 12,488 2.19 % $ — — % MBS — — % 4,049 3.13 % 14,120 2.18 % 77,664 2.14 % Municipal securities 3,959 2.75 % 25,893 3.29 % 30,229 3.78 % 29,262 3.98 % Corporate bonds 532 1.32 % 4,724 2.08 % 4,016 2.94 % — — % CDs 2,884 0.29 % 950 2.13 % — — % — — % Total fixed income securities $ 7,375 1.69 % $ 91,635 2.16 % $ 60,853 3.03 % $ 106,926 2.64 % At fair value: Total fixed income securities $ 7,400 $ 93,098 $ 61,623 $ 107,880 Scheduled contractual maturities shown above may not reflect the actual maturities of the investments. The actual MBS/CMO cash flows likely will be faster than presented above due to prepayments and amortization. Similarly, included in the carrying value of fixed income investments above are callable securities, comprised of municipal securities and corporate bonds totaling $44.8 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 for 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 $ 266.2 million at September 30, 2015 . See Note 9, "Fair Value Measurements," below for further information regarding the Company's fair value measurements for available-for-sale securities. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2015 | |
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 were as follows: (Dollars in thousands) September 30, December 31, Commercial real estate $ 922,167 $ 862,747 Commercial and industrial 431,029 402,994 Commercial construction 184,927 168,044 Total commercial loans 1,538,123 1,433,785 Residential mortgages 162,414 149,959 Home equity loans and lines 81,195 80,018 Consumer 10,520 10,708 Total retail loans 254,129 240,685 Gross loans 1,792,252 1,674,470 Deferred loan origination fees, net (1,644 ) (1,866 ) Total loans 1,790,608 1,672,604 Allowance for loan losses (28,130 ) (27,121 ) Net loans $ 1,762,478 $ 1,645,483 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 underlying interest rate indices, and are generally fixed for an initial period before periodic rate adjustments begin. Commercial and industrial loans include seasonal revolving lines of credit, working capital loans, equipment financing (including equipment leases), and term loans. Also included in commercial and industrial loans are loans partially guaranteed by the U.S. Small Business Administration ("SBA"), and loans under various programs and agencies. Commercial and industrial credits may be unsecured loans and lines to financially strong borrowers, loans 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. Construction lenders work to cultivate long-term relationships with established commercial developers. 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 underlying real estate collateral and are generally guaranteed by the principals of the borrowers. 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, prior to advancing additional funds, at each construction phase, either by experienced construction lenders on staff or by independent outside inspection companies. 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. Participating loans with other institutions provide banks the opportunity to retain customer relationships and reduce credit risk exposure among each participating bank, while providing customers with larger credit vehicles than the individual bank might be willing or able to offer independently. 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 $65.7 million at September 30, 2015 and $65.3 million at December 31, 2014 . Standby letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance of 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 75% for multi-family, owner occupied properties, up to 97% for 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 consist primarily 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 September 30, 2015 and December 31, 2014 , the Company was servicing residential mortgage loans owned by investors amounting to $17.9 million and $19.3 million , respectively. Additionally, the Company was servicing commercial loans participated out to various other institutions amounting to $51.0 million and $44.8 million at September 30, 2015 and December 31, 2014 , 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) September 30, December 31, Commercial real estate $ 288,188 $ 276,657 Residential mortgages 112,499 107,906 Home equity 14,164 15,677 Total loans pledged to FHLB $ 414,851 $ 400,240 |
Allowance For Loan Loss
Allowance For Loan Loss | 9 Months Ended |
Sep. 30, 2015 | |
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 the geographic market area and the strength of the local and national economies, among other factors. 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 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 are collectively evaluated relying on a combination of qualitative and quantitative factors that may affect credit quality of the pool. There have been no material changes to 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 2014 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 2014 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. The balances of loans as of September 30, 2015 by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Total Loans Commercial real estate $ 13,104 $ 909,063 $ 922,167 Commercial and industrial 7,740 423,289 431,029 Commercial construction 1,780 183,147 184,927 Residential 436 161,978 162,414 Home equity 160 81,035 81,195 Consumer 45 10,475 10,520 Deferred Fees — (1,644 ) (1,644 ) Total loans $ 23,265 $ 1,767,343 $ 1,790,608 The balances of loans as of December 31, 2014 by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Total Loans Commercial real estate $ 15,003 $ 847,744 $ 862,747 Commercial and industrial 10,901 392,093 402,994 Commercial construction 2,675 165,369 168,044 Residential 465 149,494 149,959 Home equity 180 79,838 80,018 Consumer 28 10,680 10,708 Deferred Fees — (1,866 ) (1,866 ) Total loans $ 29,252 $ 1,643,352 $ 1,672,604 Credit quality indicators Early detection of credit issues is critical to minimize credit losses. Accordingly, management regularly monitors 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. 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 guarantees; 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. September 30, 2015 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 11,432 $ 1,144 $ 19 $ 909,572 $ 922,167 Commercial and industrial 7,743 5 221 423,060 431,029 Commercial construction 1,863 — — 183,064 184,927 Residential 797 — — 161,617 162,414 Home equity 426 — — 80,769 81,195 Consumer 53 17 — 10,450 10,520 Total gross loans $ 22,314 $ 1,166 $ 240 $ 1,768,532 $ 1,792,252 December 31, 2014 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 11,409 $ 1,188 $ 19 $ 850,131 $ 862,747 Commercial and industrial 11,298 51 57 391,588 402,994 Commercial construction 2,759 — — 165,285 168,044 Residential 1,133 — — 148,826 149,959 Home equity 464 — — 79,554 80,018 Consumer 48 — — 10,660 10,708 Total gross loans $ 27,111 $ 1,239 $ 76 $ 1,646,044 $ 1,674,470 Total adversely classified loans amounted to 1.32% of total loans at September 30, 2015 , as compared to 1.70% at December 31, 2014 . At September 30, 2015 , as compared to December 31, 2014 , adversely classified balances decreased, due primarily to several larger commercial loan payoffs, charge-offs and principal payments, partially offset by additional credit downgrades during the period. Past due and non-accrual loans Loans on which the accrual of interest has been discontinued are designated as non-accrual and are credit downgraded to one of the adversely classified categories noted above. 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 payments received on loans in a non-accrual status are generally applied to principal on the books of the Company. 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. Additionally, deposit accounts overdrawn for 90 or more days are included in the consumer non-accrual balances below. The following tables present age analysis of past due loans as of the dates indicated. Balance at September 30, 2015 (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due (non- accrual) Total Past Due Loans Current Loans Gross Loans Commercial real estate $ 3,533 $ 983 $ 8,762 $ 13,278 $ 908,889 $ 922,167 Commercial and industrial 1,408 1,262 4,673 7,343 423,686 431,029 Commercial construction 1,295 — 329 1,624 183,303 184,927 Residential 1,445 56 436 1,937 160,477 162,414 Home equity 280 98 206 584 80,611 81,195 Consumer 9 5 46 60 10,460 10,520 Total gross loans $ 7,970 $ 2,404 $ 14,452 $ 24,826 $ 1,767,426 $ 1,792,252 Balance at December 31, 2014 (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due (non- accrual) Total Past Due Loans Current Loans Gross Loans Commercial real estate $ 1,471 $ 1,235 $ 9,714 $ 12,420 $ 850,327 $ 862,747 Commercial and industrial 1,184 101 5,950 7,235 395,759 402,994 Commercial construction — — 447 447 167,597 168,044 Residential 1,328 370 763 2,461 147,498 149,959 Home equity 29 — 245 274 79,744 80,018 Consumer 94 1 17 112 10,596 10,708 Total gross loans $ 4,106 $ 1,707 $ 17,136 $ 22,949 $ 1,651,521 $ 1,674,470 At September 30, 2015 and September 30, 2014 , all loans 90 days or more past due were carried as non-accrual. Non-accrual loans which were not adversely classified amounted to $322 thousand at September 30, 2015 and $211 thousand at December 31, 2014 . These balances primarily represented the guaranteed portions of non-performing SBA 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 ratio of non-accrual loans to total loans amounted to 0.81% at September 30, 2015 , 1.02% at December 31, 2014 , and 1.03% at September 30, 2014 . Non-accrual loan balances decreased due primarily to several larger commercial loan payoffs, charge-offs and principal payments, partially offset by additional new non-accrual status loans added during the period. The increase in loans 30 - 59 days past due occurred primarily within the commercial portfolios at September 30, 2015 , with the majority of these loans having subsequent payments made by mid-October. At September 30, 2015 , additional funding commitments for loans on non-accrual status totaled $320 thousand . The Company's obligation to fulfill the additional funding commitments on non-accrual loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. 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 on non-accrual status has been designated as impaired. Impaired loans include loans that have been modified in a troubled debt restructuring ("TDR"). 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 borrower must demonstrate the ability to continue to service the loan in accordance with the original or modified terms and, in the judgment of management, the collectability of the remaining balances, both principal and interest, are reasonably assured. In the case of TDR loans having had a modified interest rate, that rate must be at, or greater than, a market rate for a similar credit at the time of modification for an upgrade to be considered. Impaired loans are individually evaluated for credit loss and a specific allowance 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 2014 Annual Report on Form 10-K for further discussion of management's methodology used to estimate specific reserves for impaired loans. The carrying value of impaired loans amounted to $23.3 million and $29.3 million at September 30, 2015 and December 31, 2014 , respectively. Total accruing impaired loans amounted to $8.9 million and $12.5 million at September 30, 2015 and December 31, 2014 , respectively, while non-accrual impaired loans amounted to $14.3 million and $16.7 million as of September 30, 2015 and December 31, 2014 , respectively. The decrease was due primarily to the several larger commercial loan payoffs, charge-offs and principal payments discussed above. The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated as of the dates indicated. Balance at September 30, 2015 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 15,758 $ 13,104 $ 12,640 $ 464 $ 160 Commercial and industrial 9,521 7,740 5,015 2,725 1,265 Commercial construction 1,889 1,780 221 1,559 516 Residential 525 436 436 — — Home equity 295 160 160 — — Consumer 47 45 — 45 44 Total $ 28,035 $ 23,265 $ 18,472 $ 4,793 $ 1,985 Balance at December 31, 2014 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 17,182 $ 15,003 $ 14,800 $ 203 $ 68 Commercial and industrial 11,991 10,901 5,461 5,440 1,516 Commercial construction 2,862 2,675 1,150 1,525 519 Residential 537 465 465 — — Home equity 183 180 — 180 26 Consumer 28 28 — 28 28 Total $ 32,783 $ 29,252 $ 21,876 $ 7,376 $ 2,157 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 September 30, 2015 Three Months Ended September 30, 2014 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 13,360 $ 56 $ 14,224 $ 75 Commercial and industrial 8,567 16 10,279 40 Commercial construction 1,834 17 3,174 27 Residential 440 — 1,294 (2 ) Home equity 174 1 243 (1 ) Consumer 47 — 25 1 Total $ 24,422 $ 90 $ 29,239 $ 140 The following table presents the average recorded investment in impaired loans and the related interest recognized during the nine month periods indicated. Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 14,277 $ 153 $ 13,913 $ 169 Commercial and industrial 9,881 74 10,482 120 Commercial construction 2,142 59 3,243 79 Residential 449 — 1,032 1 Home equity 177 2 215 (1 ) Consumer 48 — 25 1 Total $ 26,974 $ 288 $ 28,910 $ 369 At September 30, 2015 , additional funding commitments for impaired loans totaled $320 thousand . The Company's obligation to fulfill the additional funding commitments on impaired loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. Troubled debt restructurings Loans are designated as a TDR when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Bank grants the borrower a concession on the terms, that would not otherwise be considered. 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 balances above, as of September 30, 2015 and December 31, 2014 , were $15.4 million and $19.5 million , respectively. TDR loans on accrual status amounted to $8.4 million and $11.9 million at September 30, 2015 and December 31, 2014 , respectively. TDR loans included in non-performing loans amounted to $7.0 million and $7.5 million at September 30, 2015 and December 31, 2014 , 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 September 30, 2015 , additional funding commitments for TDR loans totaled $11 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. There were no loans modified as troubled debt restructurings during the three month period ended September 30, 2015 . Loans modified as troubled debt restructurings during the nine month period ended September 30, 2015 are detailed below. Nine months ended September 30, 2015 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 3 $ 269 $ 274 Commercial and industrial 4 869 823 Commercial construction — — — Residential — — — Home equity — — — Consumer 1 4 3 Total 8 $ 1,142 $ 1,100 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 September 30, 2015 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial 2 679 Commercial construction — — Residential — — Home Equity — — Consumer — — Total 2 679 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. Nine months ended September 30, 2015 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial 2 679 Commercial construction — — Residential — — Home Equity — — Consumer — — Total 2 $ 679 There were no subsequent charge-offs associated with the TDRs noted in the table above during the nine months ended September 30, 2015 . At September 30, 2015 , there were specific reserves of $20 thousand allocated to the TDRs entered into during the 2015 period as management considered it likely that 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 nine months ended September 30, 2015 amounted to $18 thousand . Loans modified as troubled debt restructurings during the three month period ended September 30, 2014 are detailed below. Three months ended September 30, 2014 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 2 $ 1,429 $ 1,429 Commercial and industrial 2 43 43 Commercial construction — — — Residential — — — Home equity — — — Consumer — — — Total 4 $ 1,472 $ 1,472 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 September 30, 2014 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial — — Commercial construction — — Residential 1 126 Home Equity — — Consumer — — Total 1 $ 126 Loans modified as troubled debt restructurings during the nine month period ended September 30, 2014 are detailed below. Nine months ended September 30, 2014 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 3 $ 1,979 $ 1,979 Commercial and industrial 8 268 263 Commercial construction — — — Residential 1 124 122 Home equity 1 73 73 Consumer — — — Total 13 $ 2,444 $ 2,437 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. Nine months ended September 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 1 126 Home Equity — — Consumer — — Total 2 $ 192 At September 30, 2014 , there were specific reserves of $45 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 nine months ended amounted to $5 thousand . There were subsequent charge-offs of $66 thousand associated with the TDRs noted in the table above during the nine months ended September 30, 2014 . Other real estate owned ( " OREO " ) 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. The estimated fair value is based on market appraisals and the Company's internal analysis. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value, are charged to non-interest expense. The Company carried no OREO at September 30, 2015 compared to $861 thousand at December 31, 2014 . During the nine months ended September 30, 2015 , the Company sold the three properties held at December 31, 2014 , recognizing net gains on OREO sales of $154 thousand ; there were no additions to OREO, or subsequent impairment write-downs during the period. During the nine months ended September 30, 2014 , there were no sales or subsequent impairment write-downs on OREO. 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 $28.1 million at September 30, 2015 , compared to $27.1 million at December 31, 2014 , and $27.0 million at September 30, 2014 . The allowance for loan losses to total loans ratio was 1.57% at September 30, 2015 , 1.62% at December 31, 2014 and 1.68% at September 30, 2014 . The declining trend in the allowance ratio reflects the improvement in credit quality statistics and general economic conditions over the period. 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 September 30, 2015 . Changes in the allowance for loan losses by portfolio segment for the three months ended September 30, 2015 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at June 30, 2015 $ 12,864 $ 10,022 $ 3,447 $ 1,022 $ 575 $ 232 $ 28,162 Provision 435 (311 ) 207 (50 ) (52 ) 21 250 Recoveries — 65 — — 1 2 68 Less: Charge offs 108 232 — — — 10 350 Ending Balance at September 30, 2015 $ 13,191 $ 9,544 $ 3,654 $ 972 $ 524 $ 245 $ 28,130 Changes in the allowance for loan losses by segment for the nine months ended September 30, 2015 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2014 $ 12,664 $ 9,245 $ 3,384 $ 989 $ 608 $ 231 $ 27,121 Provision 630 1,268 245 (17 ) (99 ) 73 2,100 Recoveries 5 232 25 — 15 14 291 Less: Charge offs 108 1,201 — — — 73 1,382 Ending Balance at September 30, 2015 $ 13,191 $ 9,544 $ 3,654 $ 972 $ 524 $ 245 $ 28,130 Ending allowance balance: Allotted to loans individually evaluated for impairment $ 160 $ 1,265 $ 516 $ — $ — $ 44 $ 1,985 Allotted to loans collectively evaluated for impairment $ 13,031 $ 8,279 $ 3,138 $ 972 $ 524 $ 201 $ 26,145 Changes in the allowance for loan losses by segment for the three months ended September 30, 2014 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at June 30, 2014 $ 13,065 $ 7,550 $ 3,741 $ 1,266 $ 685 $ 221 $ 26,528 Provision 154 664 (90 ) (38 ) 36 39 765 Recoveries — 286 17 — 1 2 306 Less: Charge offs 92 256 134 46 27 15 570 Ending Balance at September 30, 2014 $ 13,127 $ 8,244 $ 3,534 $ 1,182 $ 695 $ 247 $ 27,029 Changes in the allowance for loan losses by segment for the nine months ended September 30, 2014 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2013 $ 13,174 $ 8,365 $ 3,493 $ 1,057 $ 653 $ 225 $ 26,967 Provision 248 512 128 171 68 38 1,165 Recoveries — 510 47 — 1 24 582 Less: Charge offs 295 1,143 134 46 27 40 1,685 Ending Balance at September 30, 2014 $ 13,127 $ 8,244 $ 3,534 $ 1,182 $ 695 $ 247 $ 27,029 Ending allowance balance: Allotted to loans individually evaluated for impairment $ 110 $ 2,198 $ 690 $ 103 $ 46 $ 22 $ 3,169 Allotted to loans collectively evaluated for impairment $ 13,017 $ 6,046 $ 2,844 $ 1,079 $ 649 $ 225 $ 23,860 |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowed Funds and Subordinated Debt | Borrowed Funds and Subordinated Debt Borrowed funds consisted of FHLB borrowings of $24.2 million at September 30, 2015 , compared to $58.9 million at December 31, 2014 . The Company also carried subordinated debt of $14.8 million at September 30, 2015 , and $10.8 million at December 31, 2014 . The subordinated debt carried at September 30, 2015 consisted of $15.0 million in aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Notes"), issued in January 2015 , in a private placement to an accredited investor. The Notes, which are intended to qualify as Tier 2 capital for regulatory purposes, mature on January 30, 2030 (the "Maturity Date") and are callable by the Company, subject to regulatory approval, at a premium beginning January 30, 2020 , and at par beginning January 30, 2025 . The Notes pay interest at a fixed rate of 6.00% per annum through January 30, 2025 , and beginning on January 31, 2025 through the Maturity Date, or any early redemption date, the interest rate on the Notes will adjust monthly at an interest rate of 3.90% plus 30-day LIBOR. Original note issuance costs were $190 thousand and have been netted against the subordinated debt on the balance sheet in accordance with recent accounting guidance which the Company adopted in the first quarter of 2015. These costs and are being amortized over the life of the Notes. The subordinated debt balance carried at December 31, 2014 consisted of $10.8 million in Junior Subordinated Debt Securities (the "Debt"). In March 2000, Enterprise (MA) Capital Trust I (the "Trust"), a subsidiary of Enterprise Bancorp, issued $10.5 million of 10.875% trust preferred securities that were to mature in 2030 and were callable at a premium. The proceeds from the sale of the trust preferred securities were used by the Trust, along with the Company's $325 thousand capital contribution, to acquire $10.8 million in aggregate principal amount of the Company's 10.875% Debt that was to mature in 2030 and was callable. In March 2015 , the Company redeemed the Debt in full using proceeds from the $15.0 million in Notes issued in January 2015 , which in turned allowed the Trust to redeem in full the trust preferred securities. |
Supplemental Retirement Plan an
Supplemental Retirement Plan and Other Postretirement Benefit Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Supplemental Retirement Plan and Other Postretirement Benefit Obligations | Supplemental Retirement Plan and Other Postretirement Benefit Obligations Supplemental Retirement Plan The Company has salary continuation agreements with two of its current executive officers and one former executive officer. 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 costs in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the plan. This non-qualified plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the "accumulated benefit obligation," which is equal to the present value of the benefits to be provided to the employee or any beneficiary. Because the Company's benefit obligations provide for predetermined fixed-cash payments, the Company does not have any unrecognized costs to be included as a component of accumulated other comprehensive income. The total net periodic benefit costs, which were comprised of interest costs only, were $31 thousand for the three months ended September 30, 2015 , compared to $36 thousand for the three months ended September 30, 2014 . Year-to-date total net periodic benefit costs, comprised of interest costs only, were $94 thousand for the nine months ended September 30, 2015 , compared to $107 thousand for the nine months ended September 30, 2014 . Benefits paid amounted to $69 thousand and $207 thousand for both the three and nine month periods ended September 30, 2015 and September 30, 2014 , respectively. The Company anticipates accruing an additional $31 thousand to the plan during the remainder of 2015 . Supplemental Life Insurance The Company has provided supplemental life insurance through split-dollar life insurance arrangements for certain executive and senior officers on whom the Bank owns bank-owned life insurance ("BOLI"). These arrangements provide a death benefit to the officer's designated beneficiaries that extend to postretirement periods for some of the supplemental life insurance plans. The Company has recognized a liability for these future postretirement benefits. These non-qualified plans represent 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 costs, which were comprised primarily of interest costs, amounted to $18 thousand and $55 thousand for the three and nine months ended September 30, 2015 , respectively. For the three and nine months ended September 30, 2014 , total net periodic benefit costs, which were comprised primarily of interest costs, were $19 thousand and $55 thousand , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 2014 Annual Report on Form 10-K. The Company's stock-based compensation expense includes stock options and stock awards to officers and other employees included in salary and benefits expense, and stock awards and stock compensation in lieu of cash fees to non-employee directors included in other operating expenses. Total stock-based compensation expense was $411 thousand and $1.4 million for the three and nine months ended September 30, 2015 , respectively, compared to $409 thousand and $1.3 million for the three and nine months ended September 30, 2014 , respectively. Stock Option Awards The Company recognized stock-based compensation expense related to stock option awards of $71 thousand and $247 thousand for the three and nine months ended September 30, 2015 , respectively, compared to $87 thousand and $277 thousand for the three and nine months ended September 30, 2014 , respectively. The Company utilizes the Black-Scholes option valuation model in order to determine the per share grant date fair value of option grants. The table below provides a summary of the options granted in 2015 and 2014 . Nine Months Ended September 30, 2015 2014 Options granted 27,376 31,229 Term in years 10 10 Average assumptions used in the fair value model: Expected volatility 47 % 47 % Expected dividend yield 2.90 % 2.88 % Expected life in years 7 7 Risk-free interest rate 1.95 % 2.19 % Market price on date of grant $ 21.03 $ 20.29 Per share weighted average fair value $ 8.51 $ 8.32 Fair value as a percentage of market value at grant date 40 % 41 % Options granted during the first nine months of 2015 and 2014 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 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. Refer to Note 11 "Stock-Based Compensation Plans" in the Company's 2014 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 $295 thousand and $928 thousand for the three and nine months ended September 30, 2015 , respectively, compared to $278 thousand and $868 thousand for the three and nine months ended September 30, 2014 , respectively. In January 2014, the Company granted 2,142 shares of fully vested stock to employees as anniversary awards at a grant date fair market value of $20.95 per share. There were no fully vested stock awards granted in the nine months ended September 30, 2015 . 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 or are performance based awards that vest upon the Company achieving certain predefined performance objectives. Non-employee 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 restricted stock awards granted in 2015 and 2014 . Nine Months Ended September 30, Restricted Stock Awards 2015 2014 Two Year Vesting 7,276 6,660 Four Year Vesting 17,775 19,167 Performance-Based Vesting 30,262 33,017 Total Restricted Stock Awards 55,313 58,844 Weighted average grant date fair value $ 21.03 $ 20.29 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. Stock in Lieu of Directors' Fees In addition to restricted stock awards discussed above, the non-employee 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 these directors' fees amounted to $45 thousand and $190 thousand for the three and nine months ended September 30, 2015 , respectively, compared to $44 thousand and $180 thousand for the three and nine months ended September 30, 2014 , respectively, and is included in other operating expenses. In January 2015 , non-employee directors were issued 11,612 shares of common stock in lieu of 2014 annual cash fees of $242 thousand at a market value price of $20.84 per share, the market value of the common stock on the opt-in measurement date of January 2, 2014 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Basic weighted average common shares outstanding 10,349,232 10,143,055 10,308,310 10,099,593 Dilutive shares 65,022 85,446 65,154 84,671 Diluted weighted average common shares outstanding 10,414,254 10,228,501 10,373,464 10,184,264 For the nine months ended September 30, 2015 , all options outstanding were included in the year-to-date calculation of diluted earnings per share, as they were all considered "in the money" under the treasury stock method. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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 collateral dependent impaired loans open: September 30, 2015 Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Fixed income securities $ 270,001 $ — $ 270,001 $ — Equity securities 11,026 11,026 — — FHLB stock 4,239 — — 4,239 Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,598 — — 2,598 December 31, Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Fixed income securities $ 230,790 $ — $ 230,790 $ — Equity securities 14,275 14,275 — — FHLB stock 3,357 — — 3,357 Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 5,174 — — 5,174 Other real estate owned 861 — — 861 The Company did not have cause to transfer any assets between the fair value measurement levels during the nine months ended September 30, 2015 or the year ended December 31, 2014 . There were no liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2015 or December 31, 2014 . 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, corporate bonds and certificates of deposits, 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. 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 September 30, 2015 amounted to $1.3 million compared to $1.7 million at December 31, 2014 . When OREO 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. The Company carried no OREO at September 30, 2015 compared to $861 thousand at December 31, 2014 . The Company sold the three properties held at December 31, 2014 , recognizing net gains on OREO sales of $154 thousand , during the nine months ended September 30, 2015 ; there were no additions to OREO, or subsequent impairment write-downs during the period. There were no sales or subsequent write downs of OREO during the nine months ended September 30, 2014 . 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 September 30, 2015 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a recurring basis: FHLB stock $4,239 FHLB Stated Par Value N/A N/A Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $2,598 Appraisal of collateral Appraisal adjustments (1) 5% - 50% (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 of 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 September 30, 2015 and December 31, 2014 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 September 30, 2015 and December 31, 2014 , 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. The carrying values, estimated fair values and placement in the fair value hierarchy of the Company's financial instruments for which fair value is only disclosed but not recognized on the balance sheet at the dates indicated are summarized as follows: September 30, 2015 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 1,325 $ 1,346 $ — $ 1,346 $ — Loans, net 1,762,478 1,781,857 — — 1,781,857 Financial liabilities: Certificates of deposit (including brokered) 277,465 277,572 — 277,572 — Borrowed funds 24,171 24,164 — 24,164 — Subordinated debt 14,819 14,148 — — 14,148 December 31, 2014 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 2,371 $ 2,381 $ — $ 2,381 $ — Loans, net 1,645,483 1,668,863 — — 1,668,863 Financial liabilities: Certificates of deposit (including brokered) 263,779 262,774 — 262,774 — Borrowed funds 58,900 58,899 — 58,899 — Subordinated debt 10,825 13,017 — — 13,017 Excluded from the tables above 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. Also excluded from these tables are the fair values of commitments for unused portion of lines of credit and letters of credit, which were estimated to be the fees currently charged to enter into similar agreements and are deemed to be immaterial, as well as commitments to originate non-mortgage loans which were short-term, at current market rates and estimated to have no significant change in fair value. When determining fair values noted in the tables above, 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. 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 September 30, 2015 and December 31, 2014 for similar instruments. The fair value of subordinated debt was estimated using discounted cash flow analysis using a market rate of interest at September 30, 2015 and December 31, 2014 . Limitations: The estimates of fair value of financial instruments were based on information available at September 30, 2015 and December 31, 2014 and are not indicative of the fair market value of those instruments as of the date of this Quarterly Report on Form 10-Q. 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. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014 audited consolidated financial statements and notes thereto contained in the 2014 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 13, 2015 . The Company has not changed its accounting policies from those disclosed in its 2014 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 and its subsidiaries. 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. The security corporations, which hold various types of qualifying securities, 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 greater Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. The Company also plans to open its second Nashua, NH branch in the second quarter of 2016, pending regulatory approval. Through the Bank and its subsidiaries, the Company offers a range of commercial and consumer loan products, and deposit and cash management services. The Company also offers 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"), at December 31, 2014 , the Company carried 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, were excluded from the Company's consolidated financial statements. In March 2015 , the Company redeemed in full the Junior Subordinated Debentures, which in turned allowed the Trust to redeem in full the trust preferred securities. The Company also dissolved the Trust in April 2015. See Note 5, "Borrowed Funds and Subordinated Debt," below for further information on the Company's subordinated debt. 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 unaudited consolidated interim 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 assumptions and estimates 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 2014 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 2014 Annual Report on Form 10-K for significant accounting policies. The Company has not changed its significant accounting policies from those disclosed in its 2014 Annual Report filed on Form 10-K. |
Reporting Comprehensive Income | Reporting Comprehensive Income Comprehensive income is defined as all changes to stockholders' 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 at par value 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 periodic 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, due primarily 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 September 30, 2015 . The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2013 through 2015 tax years. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued ASU No. 2015-03, Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. Entities are required to apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The Company early adopted this ASU as of January 1, 2015 in relation to the Company's Fixed-to-Floating Rate Subordinated Notes issued in January 2015. This adoption did not have a material impact on the Company's financial statements or results of operations. In January 2014, the 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 did not have a material impact on the Company's financial statements or results of operations. In January 2014, the FASB issued ASU No. 2014-01, Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this ASU apply to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in this ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for such investments using the proportional amortization method if certain conditions are met. The investor must recognize any subsequent impairment loss when it is more likely than not that the carrying amount of the investment will not be realized. Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The decision to apply the proportional amortization method of accounting is an accounting policy decision that must be applied consistently to all qualifying affordable housing project investments rather than a decision to be applied to individual investments. A reporting entity must disclose information that enables users of its financial statements to understand the nature of such investments and the effect of the measurement, and the related tax credits, on its financial position and results of operations. The amendments in this ASU are to be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods beginning after December 15, 2014. The adoption of this ASU in the first quarter of 2015 did not have a material impact on the Company's financial statements or results of operations. For information regarding recent accounting pronouncements not yet adopted by the Company, see Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," under the heading "Recent Accounting Pronouncements." |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 68,507 $ 845 $ — $ 69,352 Federal agency mortgage backed securities (MBS) (1) 95,833 1,103 320 96,616 Municipal securities 89,343 1,725 166 90,902 Corporate bonds 9,272 65 28 9,309 Certificates of deposits (2) 3,834 — 12 3,822 Total fixed income securities 266,789 3,738 526 270,001 Equity investments 9,543 1,884 401 11,026 Total available-for-sale securities, at fair value $ 276,332 $ 5,622 $ 927 $ 281,027 December 31, 2014 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 59,518 $ 318 $ 24 $ 59,812 Federal agency mortgage backed securities (MBS) (1) 88,303 1,015 516 88,802 Municipal securities 72,113 2,157 66 74,204 Corporate bonds 7,937 61 26 7,972 Total fixed income securities 227,871 3,551 632 230,790 Equity investments 11,370 3,071 166 14,275 Total available-for-sale securities, at fair value $ 239,241 $ 6,622 $ 798 $ 245,065 __________________________________________ (1) These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae (FNMA), Freddie Mac (FHLMC), Federal Farm Credit Bank, or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae (GNMA), a wholly-owned government entity. (2) Certificates of deposit ("CDs") represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. |
Investments Classified by Contractual Maturity Date | The contractual maturity distribution at September 30, 2015 of total fixed income investments was as follows: Within One Year After One, But Within Five Years After Five, But Within Ten Years After Ten Years Amortized Cost Yields Amortized Cost Yields Amortized Cost Yields Amortized Cost Yields At amortized cost: Federal agency obligations $ — — % $ 56,019 1.57 % $ 12,488 2.19 % $ — — % MBS — — % 4,049 3.13 % 14,120 2.18 % 77,664 2.14 % Municipal securities 3,959 2.75 % 25,893 3.29 % 30,229 3.78 % 29,262 3.98 % Corporate bonds 532 1.32 % 4,724 2.08 % 4,016 2.94 % — — % CDs 2,884 0.29 % 950 2.13 % — — % — — % Total fixed income securities $ 7,375 1.69 % $ 91,635 2.16 % $ 60,853 3.03 % $ 106,926 2.64 % At fair value: Total fixed income securities $ 7,400 $ 93,098 $ 61,623 $ 107,880 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Loans by Loan Classification | Major classifications of loans at the periods indicated were as follows: (Dollars in thousands) September 30, December 31, Commercial real estate $ 922,167 $ 862,747 Commercial and industrial 431,029 402,994 Commercial construction 184,927 168,044 Total commercial loans 1,538,123 1,433,785 Residential mortgages 162,414 149,959 Home equity loans and lines 81,195 80,018 Consumer 10,520 10,708 Total retail loans 254,129 240,685 Gross loans 1,792,252 1,674,470 Deferred loan origination fees, net (1,644 ) (1,866 ) Total loans 1,790,608 1,672,604 Allowance for loan losses (28,130 ) (27,121 ) Net loans $ 1,762,478 $ 1,645,483 |
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) September 30, December 31, Commercial real estate $ 288,188 $ 276,657 Residential mortgages 112,499 107,906 Home equity 14,164 15,677 Total loans pledged to FHLB $ 414,851 $ 400,240 |
Allowance For Loan Loss (Tables
Allowance For Loan Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Financing Receivables by Evaluation Method | The balances of loans as of September 30, 2015 by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Total Loans Commercial real estate $ 13,104 $ 909,063 $ 922,167 Commercial and industrial 7,740 423,289 431,029 Commercial construction 1,780 183,147 184,927 Residential 436 161,978 162,414 Home equity 160 81,035 81,195 Consumer 45 10,475 10,520 Deferred Fees — (1,644 ) (1,644 ) Total loans $ 23,265 $ 1,767,343 $ 1,790,608 The balances of loans as of December 31, 2014 by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Total Loans Commercial real estate $ 15,003 $ 847,744 $ 862,747 Commercial and industrial 10,901 392,093 402,994 Commercial construction 2,675 165,369 168,044 Residential 465 149,494 149,959 Home equity 180 79,838 80,018 Consumer 28 10,680 10,708 Deferred Fees — (1,866 ) (1,866 ) Total loans $ 29,252 $ 1,643,352 $ 1,672,604 |
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. September 30, 2015 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 11,432 $ 1,144 $ 19 $ 909,572 $ 922,167 Commercial and industrial 7,743 5 221 423,060 431,029 Commercial construction 1,863 — — 183,064 184,927 Residential 797 — — 161,617 162,414 Home equity 426 — — 80,769 81,195 Consumer 53 17 — 10,450 10,520 Total gross loans $ 22,314 $ 1,166 $ 240 $ 1,768,532 $ 1,792,252 December 31, 2014 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 11,409 $ 1,188 $ 19 $ 850,131 $ 862,747 Commercial and industrial 11,298 51 57 391,588 402,994 Commercial construction 2,759 — — 165,285 168,044 Residential 1,133 — — 148,826 149,959 Home equity 464 — — 79,554 80,018 Consumer 48 — — 10,660 10,708 Total gross loans $ 27,111 $ 1,239 $ 76 $ 1,646,044 $ 1,674,470 |
Past Due Financing Receivables | The following tables present age analysis of past due loans as of the dates indicated. Balance at September 30, 2015 (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due (non- accrual) Total Past Due Loans Current Loans Gross Loans Commercial real estate $ 3,533 $ 983 $ 8,762 $ 13,278 $ 908,889 $ 922,167 Commercial and industrial 1,408 1,262 4,673 7,343 423,686 431,029 Commercial construction 1,295 — 329 1,624 183,303 184,927 Residential 1,445 56 436 1,937 160,477 162,414 Home equity 280 98 206 584 80,611 81,195 Consumer 9 5 46 60 10,460 10,520 Total gross loans $ 7,970 $ 2,404 $ 14,452 $ 24,826 $ 1,767,426 $ 1,792,252 Balance at December 31, 2014 (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due (non- accrual) Total Past Due Loans Current Loans Gross Loans Commercial real estate $ 1,471 $ 1,235 $ 9,714 $ 12,420 $ 850,327 $ 862,747 Commercial and industrial 1,184 101 5,950 7,235 395,759 402,994 Commercial construction — — 447 447 167,597 168,044 Residential 1,328 370 763 2,461 147,498 149,959 Home equity 29 — 245 274 79,744 80,018 Consumer 94 1 17 112 10,596 10,708 Total gross loans $ 4,106 $ 1,707 $ 17,136 $ 22,949 $ 1,651,521 $ 1,674,470 |
Impaired Financing Receivables | The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated as of the dates indicated. Balance at September 30, 2015 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 15,758 $ 13,104 $ 12,640 $ 464 $ 160 Commercial and industrial 9,521 7,740 5,015 2,725 1,265 Commercial construction 1,889 1,780 221 1,559 516 Residential 525 436 436 — — Home equity 295 160 160 — — Consumer 47 45 — 45 44 Total $ 28,035 $ 23,265 $ 18,472 $ 4,793 $ 1,985 Balance at December 31, 2014 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 17,182 $ 15,003 $ 14,800 $ 203 $ 68 Commercial and industrial 11,991 10,901 5,461 5,440 1,516 Commercial construction 2,862 2,675 1,150 1,525 519 Residential 537 465 465 — — Home equity 183 180 — 180 26 Consumer 28 28 — 28 28 Total $ 32,783 $ 29,252 $ 21,876 $ 7,376 $ 2,157 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 September 30, 2015 Three Months Ended September 30, 2014 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 13,360 $ 56 $ 14,224 $ 75 Commercial and industrial 8,567 16 10,279 40 Commercial construction 1,834 17 3,174 27 Residential 440 — 1,294 (2 ) Home equity 174 1 243 (1 ) Consumer 47 — 25 1 Total $ 24,422 $ 90 $ 29,239 $ 140 The following table presents the average recorded investment in impaired loans and the related interest recognized during the nine month periods indicated. Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 14,277 $ 153 $ 13,913 $ 169 Commercial and industrial 9,881 74 10,482 120 Commercial construction 2,142 59 3,243 79 Residential 449 — 1,032 1 Home equity 177 2 215 (1 ) Consumer 48 — 25 1 Total $ 26,974 $ 288 $ 28,910 $ 369 |
Troubled Debt Restructurings on Financing Receivables | Loans modified as troubled debt restructurings during the nine month period ended September 30, 2015 are detailed below. Nine months ended September 30, 2015 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 3 $ 269 $ 274 Commercial and industrial 4 869 823 Commercial construction — — — Residential — — — Home equity — — — Consumer 1 4 3 Total 8 $ 1,142 $ 1,100 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 September 30, 2015 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial 2 679 Commercial construction — — Residential — — Home Equity — — Consumer — — Total 2 679 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. Nine months ended September 30, 2015 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial 2 679 Commercial construction — — Residential — — Home Equity — — Consumer — — Total 2 $ 679 Loans modified as troubled debt restructurings during the three month period ended September 30, 2014 are detailed below. Three months ended September 30, 2014 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 2 $ 1,429 $ 1,429 Commercial and industrial 2 43 43 Commercial construction — — — Residential — — — Home equity — — — Consumer — — — Total 4 $ 1,472 $ 1,472 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 September 30, 2014 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial — — Commercial construction — — Residential 1 126 Home Equity — — Consumer — — Total 1 $ 126 Loans modified as troubled debt restructurings during the nine month period ended September 30, 2014 are detailed below. Nine months ended September 30, 2014 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 3 $ 1,979 $ 1,979 Commercial and industrial 8 268 263 Commercial construction — — — Residential 1 124 122 Home equity 1 73 73 Consumer — — — Total 13 $ 2,444 $ 2,437 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. Nine months ended September 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 1 126 Home Equity — — Consumer — — Total 2 $ 192 |
Allowance for Credit Losses on Financing Receivables | Changes in the allowance for loan losses by portfolio segment for the three months ended September 30, 2015 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at June 30, 2015 $ 12,864 $ 10,022 $ 3,447 $ 1,022 $ 575 $ 232 $ 28,162 Provision 435 (311 ) 207 (50 ) (52 ) 21 250 Recoveries — 65 — — 1 2 68 Less: Charge offs 108 232 — — — 10 350 Ending Balance at September 30, 2015 $ 13,191 $ 9,544 $ 3,654 $ 972 $ 524 $ 245 $ 28,130 Changes in the allowance for loan losses by segment for the nine months ended September 30, 2015 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2014 $ 12,664 $ 9,245 $ 3,384 $ 989 $ 608 $ 231 $ 27,121 Provision 630 1,268 245 (17 ) (99 ) 73 2,100 Recoveries 5 232 25 — 15 14 291 Less: Charge offs 108 1,201 — — — 73 1,382 Ending Balance at September 30, 2015 $ 13,191 $ 9,544 $ 3,654 $ 972 $ 524 $ 245 $ 28,130 Ending allowance balance: Allotted to loans individually evaluated for impairment $ 160 $ 1,265 $ 516 $ — $ — $ 44 $ 1,985 Allotted to loans collectively evaluated for impairment $ 13,031 $ 8,279 $ 3,138 $ 972 $ 524 $ 201 $ 26,145 Changes in the allowance for loan losses by segment for the three months ended September 30, 2014 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at June 30, 2014 $ 13,065 $ 7,550 $ 3,741 $ 1,266 $ 685 $ 221 $ 26,528 Provision 154 664 (90 ) (38 ) 36 39 765 Recoveries — 286 17 — 1 2 306 Less: Charge offs 92 256 134 46 27 15 570 Ending Balance at September 30, 2014 $ 13,127 $ 8,244 $ 3,534 $ 1,182 $ 695 $ 247 $ 27,029 Changes in the allowance for loan losses by segment for the nine months ended September 30, 2014 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2013 $ 13,174 $ 8,365 $ 3,493 $ 1,057 $ 653 $ 225 $ 26,967 Provision 248 512 128 171 68 38 1,165 Recoveries — 510 47 — 1 24 582 Less: Charge offs 295 1,143 134 46 27 40 1,685 Ending Balance at September 30, 2014 $ 13,127 $ 8,244 $ 3,534 $ 1,182 $ 695 $ 247 $ 27,029 Ending allowance balance: Allotted to loans individually evaluated for impairment $ 110 $ 2,198 $ 690 $ 103 $ 46 $ 22 $ 3,169 Allotted to loans collectively evaluated for impairment $ 13,017 $ 6,046 $ 2,844 $ 1,079 $ 649 $ 225 $ 23,860 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 in 2015 and 2014 . Nine Months Ended September 30, 2015 2014 Options granted 27,376 31,229 Term in years 10 10 Average assumptions used in the fair value model: Expected volatility 47 % 47 % Expected dividend yield 2.90 % 2.88 % Expected life in years 7 7 Risk-free interest rate 1.95 % 2.19 % Market price on date of grant $ 21.03 $ 20.29 Per share weighted average fair value $ 8.51 $ 8.32 Fair value as a percentage of market value at grant date 40 % 41 % |
Schedule of Restricted Stock Awards Granted | The table below provides a summary of restricted stock awards granted in 2015 and 2014 . Nine Months Ended September 30, Restricted Stock Awards 2015 2014 Two Year Vesting 7,276 6,660 Four Year Vesting 17,775 19,167 Performance-Based Vesting 30,262 33,017 Total Restricted Stock Awards 55,313 58,844 Weighted average grant date fair value $ 21.03 $ 20.29 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Basic weighted average common shares outstanding 10,349,232 10,143,055 10,308,310 10,099,593 Dilutive shares 65,022 85,446 65,154 84,671 Diluted weighted average common shares outstanding 10,414,254 10,228,501 10,373,464 10,184,264 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 collateral dependent impaired loans open: September 30, 2015 Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Fixed income securities $ 270,001 $ — $ 270,001 $ — Equity securities 11,026 11,026 — — FHLB stock 4,239 — — 4,239 Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,598 — — 2,598 December 31, Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Fixed income securities $ 230,790 $ — $ 230,790 $ — Equity securities 14,275 14,275 — — FHLB stock 3,357 — — 3,357 Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 5,174 — — 5,174 Other real estate owned 861 — — 861 |
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 September 30, 2015 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a recurring basis: FHLB stock $4,239 FHLB Stated Par Value N/A N/A Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $2,598 Appraisal of collateral Appraisal adjustments (1) 5% - 50% (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 for which fair value is only disclosed but not recognized on the balance sheet at the dates indicated are summarized as follows: September 30, 2015 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 1,325 $ 1,346 $ — $ 1,346 $ — Loans, net 1,762,478 1,781,857 — — 1,781,857 Financial liabilities: Certificates of deposit (including brokered) 277,465 277,572 — 277,572 — Borrowed funds 24,171 24,164 — 24,164 — Subordinated debt 14,819 14,148 — — 14,148 December 31, 2014 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 2,371 $ 2,381 $ — $ 2,381 $ — Loans, net 1,645,483 1,668,863 — — 1,668,863 Financial liabilities: Certificates of deposit (including brokered) 263,779 262,774 — 262,774 — Borrowed funds 58,900 58,899 — 58,899 — Subordinated debt 10,825 13,017 — — 13,017 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2015branchessegment | |
Accounting Policies [Abstract] | |
Number of branches | 22 |
Reportable operating segments | segment | 1 |
Investments Available-for-sale
Investments Available-for-sale (Details) $ in Thousands | Sep. 30, 2015USD ($)investments | Dec. 31, 2014USD ($) | |
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Fair Value | $ 281,027 | $ 245,065 | |
Securities pledged as collateral | 266,200 | ||
Total fixed income securities | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | 266,789 | 227,871 | |
Unrealized gains | 3,738 | 3,551 | |
Unrealized losses | 526 | 632 | |
Fair Value | 270,001 | 230,790 | |
Federal Agency Obligations | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | [1] | 68,507 | 59,518 |
Unrealized gains | [1] | 845 | 318 |
Unrealized losses | [1] | 0 | 24 |
Fair Value | [1] | 69,352 | 59,812 |
Federal agency mortgage backed securities (MBS) | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | [1] | 95,833 | 88,303 |
Unrealized gains | [1] | 1,103 | 1,015 |
Unrealized losses | [1] | 320 | 516 |
Fair Value | [1] | 96,616 | 88,802 |
Pass-through securities backed by residential mortgages | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Fair Value | 67,400 | 75,500 | |
CMOs backed by residential mortgages | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Fair Value | 16,500 | 13,300 | |
CMOs backed by commercial mortgages | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Fair Value | 12,700 | ||
Municipal securities | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | 89,343 | 72,113 | |
Unrealized gains | 1,725 | 2,157 | |
Unrealized losses | 166 | 66 | |
Fair Value | 90,902 | 74,204 | |
Corporate bonds | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | 9,272 | 7,937 | |
Unrealized gains | 65 | 61 | |
Unrealized losses | 28 | 26 | |
Fair Value | 9,309 | 7,972 | |
Certificates of Deposit | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | [2] | 3,834 | |
Unrealized gains | [2] | 0 | |
Unrealized losses | [2] | 12 | |
Fair Value | [2] | 3,822 | |
Equity investments | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | 9,543 | 11,370 | |
Unrealized gains | 1,884 | 3,071 | |
Unrealized losses | 401 | 166 | |
Fair Value | $ 11,026 | 14,275 | |
Percent of portfolio invested in financial services | 16.00% | ||
Fixed Income and Equity Securities, Excluding CDs | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Unrealized losses | $ 915 | ||
Number of securities in loss position | investments | 66 | ||
Investments Temporarily Impaired, Fair Value | $ 50,300 | ||
Investments Temporarily Impaired, 12 months or longer, Unrealized Losses | 309 | ||
Total available for sale securities, at fair value | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | |||
Amortized cost | 276,332 | 239,241 | |
Unrealized gains | 5,622 | 6,622 | |
Unrealized losses | 927 | 798 | |
Fair Value | $ 281,027 | $ 245,065 | |
[1] | These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae (FNMA), Freddie Mac (FHLMC), Federal Farm Credit Bank, or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae (GNMA), a wholly-owned government entity. | ||
[2] | Certificates of deposit ("CDs") represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. |
Investments Maturities (Details
Investments Maturities (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Callable Securities, Fair Value | $ 44,800 |
Total fixed income securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost, Within One Year | $ 7,375 |
Amortized Cost, Within One Year, Yield | 1.69% |
Fair Value, Within One Year | $ 7,400 |
Amortized Cost Basis, After One, But Within Five Years | $ 91,635 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.16% |
Fair Value, After One, But Within Five Years | $ 93,098 |
Amortized Cost, After Five, But Within Ten Years | $ 60,853 |
Amortized Cost, After Five, But Within Ten Years, Yield | 3.03% |
Fair Value, after Five but Within Ten Years | $ 61,623 |
Amortized Cost Basis, After Ten Years | $ 106,926 |
Amortized Cost after Ten Years, Yield | 2.64% |
Fair Value, After Ten Years | $ 107,880 |
Federal agency obligations | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost, Within One Year | $ 0 |
Amortized Cost, Within One Year, Yield | 0.00% |
Amortized Cost Basis, After One, But Within Five Years | $ 56,019 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 1.57% |
Amortized Cost, After Five, But Within Ten Years | $ 12,488 |
Amortized Cost, After Five, But Within Ten Years, Yield | 2.19% |
Amortized Cost Basis, After Ten Years | $ 0 |
Amortized Cost after Ten Years, Yield | 0.00% |
Federal agency mortgage backed securities (MBS) | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost, Within One Year | $ 0 |
Amortized Cost, Within One Year, Yield | 0.00% |
Amortized Cost Basis, After One, But Within Five Years | $ 4,049 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 3.13% |
Amortized Cost, After Five, But Within Ten Years | $ 14,120 |
Amortized Cost, After Five, But Within Ten Years, Yield | 2.18% |
Amortized Cost Basis, After Ten Years | $ 77,664 |
Amortized Cost after Ten Years, Yield | 2.14% |
Municipal securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost, Within One Year | $ 3,959 |
Amortized Cost, Within One Year, Yield | 2.75% |
Amortized Cost Basis, After One, But Within Five Years | $ 25,893 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 3.29% |
Amortized Cost, After Five, But Within Ten Years | $ 30,229 |
Amortized Cost, After Five, But Within Ten Years, Yield | 3.78% |
Amortized Cost Basis, After Ten Years | $ 29,262 |
Amortized Cost after Ten Years, Yield | 3.98% |
Corporate bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost, Within One Year | $ 532 |
Amortized Cost, Within One Year, Yield | 1.32% |
Amortized Cost Basis, After One, But Within Five Years | $ 4,724 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.08% |
Amortized Cost, After Five, But Within Ten Years | $ 4,016 |
Amortized Cost, After Five, But Within Ten Years, Yield | 2.94% |
Amortized Cost Basis, After Ten Years | $ 0 |
Amortized Cost after Ten Years, Yield | 0.00% |
Certificates of Deposit | |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized Cost, Within One Year | $ 2,884 |
Amortized Cost, Within One Year, Yield | 0.29% |
Amortized Cost Basis, After One, But Within Five Years | $ 950 |
Amortized Cost Basis, After One, But Within Five Years, Yield | 2.13% |
Amortized Cost, After Five, But Within Ten Years | $ 0 |
Amortized Cost, After Five, But Within Ten Years, Yield | 0.00% |
Amortized Cost Basis, After Ten Years | $ 0 |
Amortized Cost after Ten Years, Yield | 0.00% |
Loans - Balance by Class of Loa
Loans - Balance by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | $ 1,792,252 | $ 1,674,470 | ||||
Deferred loan origination fees, net | (1,644) | (1,866) | ||||
Total loans | 1,790,608 | 1,672,604 | ||||
Allowance for loan losses | (28,130) | $ (28,162) | (27,121) | $ (27,029) | $ (26,528) | $ (26,967) |
Net Loans | 1,762,478 | 1,645,483 | ||||
Commercial | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 1,538,123 | 1,433,785 | ||||
Commercial real estate | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 922,167 | 862,747 | ||||
Allowance for loan losses | (13,191) | (12,864) | (12,664) | (13,127) | (13,065) | (13,174) |
Commercial and industrial | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 431,029 | 402,994 | ||||
Allowance for loan losses | (9,544) | (10,022) | (9,245) | (8,244) | (7,550) | (8,365) |
Commercial construction | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 184,927 | 168,044 | ||||
Allowance for loan losses | (3,654) | (3,447) | (3,384) | (3,534) | (3,741) | (3,493) |
Retail | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 254,129 | 240,685 | ||||
Residential | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 162,414 | 149,959 | ||||
Allowance for loan losses | (972) | (1,022) | (989) | (1,182) | (1,266) | (1,057) |
Home Equity | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 81,195 | 80,018 | ||||
Allowance for loan losses | (524) | (575) | (608) | (695) | (685) | (653) |
Consumer | ||||||
Schedule of Loans by Loan Classification [Line Items] | ||||||
Gross loans | 10,520 | 10,708 | ||||
Allowance for loan losses | $ (245) | $ (232) | $ (231) | $ (247) | $ (221) | $ (225) |
Loans - Loan Categories Narrati
Loans - Loan Categories Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2015USD ($)payment | Dec. 31, 2014USD ($) | |
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 | $ 65.7 | $ 65.3 |
Participations loans sold that are still serviced amount | $ 51 | 44.8 |
Residential | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Early Payment Default Period | payment | 4 | |
Amount of loans serviced for others | $ 17.9 | $ 19.3 |
Residential | Maximum | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Repayment period, term of loan | 30 years | |
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 | |
Multi-family owner occupied residential property | Minimum | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Loan-to-value ratio | 75.00% | |
Single family owner occupied residential property | Maximum | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Loan-to-value ratio | 97.00% |
Loans - Loans Serving as Collat
Loans - Loans Serving as Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 414,851 | $ 400,240 |
Commercial Real Estate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 288,188 | 276,657 |
Residential | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 112,499 | 107,906 |
Home Equity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 14,164 | $ 15,677 |
Allowance For Loan Loss - Evalu
Allowance For Loan Loss - Evaluation Method (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | $ 23,265 | $ 29,252 |
Loans collectively evaluated for impairment | 1,767,343 | 1,643,352 |
Gross loans | 1,792,252 | 1,674,470 |
Deferred loan origination fees, net | (1,644) | (1,866) |
Total loans | 1,790,608 | 1,672,604 |
Commercial real estate | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 13,104 | 15,003 |
Loans collectively evaluated for impairment | 909,063 | 847,744 |
Gross loans | 922,167 | 862,747 |
Commercial and industrial | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 7,740 | 10,901 |
Loans collectively evaluated for impairment | 423,289 | 392,093 |
Gross loans | 431,029 | 402,994 |
Commercial construction | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 1,780 | 2,675 |
Loans collectively evaluated for impairment | 183,147 | 165,369 |
Gross loans | 184,927 | 168,044 |
Residential | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 436 | 465 |
Loans collectively evaluated for impairment | 161,978 | 149,494 |
Gross loans | 162,414 | 149,959 |
Home Equity | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 160 | 180 |
Loans collectively evaluated for impairment | 81,035 | 79,838 |
Gross loans | 81,195 | 80,018 |
Consumer | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 45 | 28 |
Loans collectively evaluated for impairment | 10,475 | 10,680 |
Gross loans | $ 10,520 | $ 10,708 |
Allowance For Loan Loss - Adver
Allowance For Loan Loss - Adversely Classified Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Adversely classified loans to total loans | 1.32% | 1.70% |
Gross loans | $ 1,792,252 | $ 1,674,470 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 922,167 | 862,747 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 431,029 | 402,994 |
Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 184,927 | 168,044 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 162,414 | 149,959 |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 81,195 | 80,018 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 10,520 | 10,708 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 22,314 | 27,111 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 11,432 | 11,409 |
Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 7,743 | 11,298 |
Substandard | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,863 | 2,759 |
Substandard | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 797 | 1,133 |
Substandard | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 426 | 464 |
Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 53 | 48 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,166 | 1,239 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,144 | 1,188 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 5 | 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 | 0 | 0 |
Doubtful | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 17 | 0 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 240 | 76 |
Loss | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 19 | 19 |
Loss | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 221 | 57 |
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 | 1,768,532 | 1,646,044 |
Not Adversely Classified | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 909,572 | 850,131 |
Not Adversely Classified | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 423,060 | 391,588 |
Not Adversely Classified | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 183,064 | 165,285 |
Not Adversely Classified | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 161,617 | 148,826 |
Not Adversely Classified | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 80,769 | 79,554 |
Not Adversely Classified | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 10,450 | $ 10,660 |
Allowance For Loan Loss - Past
Allowance For Loan Loss - Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
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 | $ 7,970 | $ 4,106 | |
Loans 60-89 Days Past Due | 2,404 | 1,707 | |
Non-accrual loans | 14,452 | 17,136 | |
Total Past Due Loans | 24,826 | 22,949 | |
Current Loans | 1,767,426 | 1,651,521 | |
Gross loans | $ 1,792,252 | $ 1,674,470 | |
The ratio of non-accrual loans to total loans | 0.81% | 1.02% | 1.03% |
Additional funding commitments for loans on non-accrual | $ 320 | ||
Commercial real estate | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Loans 30-59 Days Past Due | 3,533 | $ 1,471 | |
Loans 60-89 Days Past Due | 983 | 1,235 | |
Non-accrual loans | 8,762 | 9,714 | |
Total Past Due Loans | 13,278 | 12,420 | |
Current Loans | 908,889 | 850,327 | |
Gross loans | 922,167 | 862,747 | |
Commercial and industrial | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Loans 30-59 Days Past Due | 1,408 | 1,184 | |
Loans 60-89 Days Past Due | 1,262 | 101 | |
Non-accrual loans | 4,673 | 5,950 | |
Total Past Due Loans | 7,343 | 7,235 | |
Current Loans | 423,686 | 395,759 | |
Gross loans | 431,029 | 402,994 | |
Commercial construction | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Loans 30-59 Days Past Due | 1,295 | 0 | |
Loans 60-89 Days Past Due | 0 | 0 | |
Non-accrual loans | 329 | 447 | |
Total Past Due Loans | 1,624 | 447 | |
Current Loans | 183,303 | 167,597 | |
Gross loans | 184,927 | 168,044 | |
Residential | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Loans 30-59 Days Past Due | 1,445 | 1,328 | |
Loans 60-89 Days Past Due | 56 | 370 | |
Non-accrual loans | 436 | 763 | |
Total Past Due Loans | 1,937 | 2,461 | |
Current Loans | 160,477 | 147,498 | |
Gross loans | 162,414 | 149,959 | |
Home Equity | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Loans 30-59 Days Past Due | 280 | 29 | |
Loans 60-89 Days Past Due | 98 | 0 | |
Non-accrual loans | 206 | 245 | |
Total Past Due Loans | 584 | 274 | |
Current Loans | 80,611 | 79,744 | |
Gross loans | 81,195 | 80,018 | |
Consumer | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Loans 30-59 Days Past Due | 9 | 94 | |
Loans 60-89 Days Past Due | 5 | 1 | |
Non-accrual loans | 46 | 17 | |
Total Past Due Loans | 60 | 112 | |
Current Loans | 10,460 | 10,596 | |
Gross loans | 10,520 | 10,708 | |
Not Adversely Classified | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Gross loans | 1,768,532 | 1,646,044 | |
Non-accrual loans not adversely classified | 322 | 211 | |
Not Adversely Classified | Commercial real estate | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Gross loans | 909,572 | 850,131 | |
Not Adversely Classified | Commercial and industrial | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Gross loans | 423,060 | 391,588 | |
Not Adversely Classified | Commercial construction | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Gross loans | 183,064 | 165,285 | |
Not Adversely Classified | Residential | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Gross loans | 161,617 | 148,826 | |
Not Adversely Classified | Home Equity | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Gross loans | 80,769 | 79,554 | |
Not Adversely Classified | Consumer | |||
Schedule of Aging of Financing Receivables [Line Items] | |||
Gross loans | $ 10,450 | $ 10,660 |
Allowance For Loan Loss - Impai
Allowance For Loan Loss - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||||
Total recorded investment in impaired loans | $ 23,265 | $ 23,265 | $ 29,252 | ||
Total accruing impaired loans | 8,900 | 8,900 | 12,500 | ||
Impaired non-accrual loans | 14,300 | 14,300 | 16,700 | ||
Unpaid contractual principal balance | 28,035 | 28,035 | 32,783 | ||
Recorded investment with no allowance | 18,472 | 18,472 | 21,876 | ||
Recorded investment with allowance | 4,793 | 4,793 | 7,376 | ||
Related allowance | 1,985 | 1,985 | 2,157 | ||
Average recorded investment | 24,422 | $ 29,239 | 26,974 | $ 28,910 | |
Interest income recognized | 90 | 140 | 288 | 369 | |
Additional funding commitments on impaired loans | 320 | 320 | |||
Commercial real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total recorded investment in impaired loans | 13,104 | 13,104 | 15,003 | ||
Unpaid contractual principal balance | 15,758 | 15,758 | 17,182 | ||
Recorded investment with no allowance | 12,640 | 12,640 | 14,800 | ||
Recorded investment with allowance | 464 | 464 | 203 | ||
Related allowance | 160 | 160 | 68 | ||
Average recorded investment | 13,360 | 14,224 | 14,277 | 13,913 | |
Interest income recognized | 56 | 75 | 153 | 169 | |
Commercial and industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total recorded investment in impaired loans | 7,740 | 7,740 | 10,901 | ||
Unpaid contractual principal balance | 9,521 | 9,521 | 11,991 | ||
Recorded investment with no allowance | 5,015 | 5,015 | 5,461 | ||
Recorded investment with allowance | 2,725 | 2,725 | 5,440 | ||
Related allowance | 1,265 | 1,265 | 1,516 | ||
Average recorded investment | 8,567 | 10,279 | 9,881 | 10,482 | |
Interest income recognized | 16 | 40 | 74 | 120 | |
Commercial construction | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total recorded investment in impaired loans | 1,780 | 1,780 | 2,675 | ||
Unpaid contractual principal balance | 1,889 | 1,889 | 2,862 | ||
Recorded investment with no allowance | 221 | 221 | 1,150 | ||
Recorded investment with allowance | 1,559 | 1,559 | 1,525 | ||
Related allowance | 516 | 516 | 519 | ||
Average recorded investment | 1,834 | 3,174 | 2,142 | 3,243 | |
Interest income recognized | 17 | 27 | 59 | 79 | |
Residential | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total recorded investment in impaired loans | 436 | 436 | 465 | ||
Unpaid contractual principal balance | 525 | 525 | 537 | ||
Recorded investment with no allowance | 436 | 436 | 465 | ||
Recorded investment with allowance | 0 | 0 | 0 | ||
Related allowance | 0 | 0 | 0 | ||
Average recorded investment | 440 | 1,294 | 449 | 1,032 | |
Interest income recognized | 0 | (2) | 0 | 1 | |
Home Equity | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total recorded investment in impaired loans | 160 | 160 | 180 | ||
Unpaid contractual principal balance | 295 | 295 | 183 | ||
Recorded investment with no allowance | 160 | 160 | 0 | ||
Recorded investment with allowance | 0 | 0 | 180 | ||
Related allowance | 0 | 0 | 26 | ||
Average recorded investment | 174 | 243 | 177 | 215 | |
Interest income recognized | 1 | (1) | 2 | (1) | |
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Total recorded investment in impaired loans | 45 | 45 | 28 | ||
Unpaid contractual principal balance | 47 | 47 | 28 | ||
Recorded investment with no allowance | 0 | 0 | 0 | ||
Recorded investment with allowance | 45 | 45 | 28 | ||
Related allowance | 44 | 44 | $ 28 | ||
Average recorded investment | 47 | 25 | 48 | 25 | |
Interest income recognized | $ 0 | $ 1 | $ 0 | $ 1 |
Allowance For Loan Loss - Troub
Allowance For Loan Loss - Troubled Debt Restructures (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)restructuring | Sep. 30, 2014USD ($)restructuring | Sep. 30, 2015USD ($)restructuring | Sep. 30, 2014USD ($)restructuring | Dec. 31, 2014USD ($) | |
Financing Receivable, Modifications [Line Items] | |||||
Total Troubled Debt Restructure (TDR) loans | $ 15,400 | $ 15,400 | $ 19,500 | ||
TDR loans on accrual status | 8,400 | 8,400 | 11,900 | ||
TDR loans included in non-performing loans | 7,000 | 7,000 | $ 7,500 | ||
Additional Funding Commitments on TDR loans | $ 11 | $ 11 | |||
Number of restructurings | restructuring | 0 | 4 | 8 | 13 | |
Pre-modification outstanding recorded investment | $ 1,472 | $ 1,142 | $ 2,444 | ||
Post-modification outstanding recorded investment | 1,472 | 1,100 | 2,437 | ||
Specific reserves allocated to TDRs | $ 20 | $ 45 | 20 | 45 | |
Interest payments received on nonaccruing TDR loans excluded from income | 18 | 5 | |||
Charge-offs associated with TDRs | $ 0 | $ 66 | |||
Number of TDRs that defaulted | restructuring | 2 | 1 | 2 | 2 | |
Post-modification outstanding recorded investment | $ 679 | $ 126 | $ 679 | $ 192 | |
Commercial real estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of restructurings | restructuring | 2 | 3 | 3 | ||
Pre-modification outstanding recorded investment | $ 1,429 | $ 269 | $ 1,979 | ||
Post-modification outstanding recorded investment | $ 1,429 | $ 274 | $ 1,979 | ||
Number of TDRs that defaulted | restructuring | 0 | 0 | 0 | 0 | |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial and industrial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of restructurings | restructuring | 2 | 4 | 8 | ||
Pre-modification outstanding recorded investment | $ 43 | $ 869 | $ 268 | ||
Post-modification outstanding recorded investment | $ 43 | $ 823 | $ 263 | ||
Number of TDRs that defaulted | restructuring | 2 | 0 | 2 | 1 | |
Post-modification outstanding recorded investment | $ 679 | $ 0 | $ 679 | $ 66 | |
Commercial construction | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of restructurings | restructuring | 0 | 0 | 0 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | ||
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | ||
Number of TDRs that defaulted | restructuring | 0 | 0 | 0 | 0 | |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Residential | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of restructurings | restructuring | 0 | 0 | 1 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 124 | ||
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 122 | ||
Number of TDRs that defaulted | restructuring | 0 | 1 | 0 | 1 | |
Post-modification outstanding recorded investment | $ 0 | $ 126 | $ 0 | $ 126 | |
Home Equity | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of restructurings | restructuring | 0 | 0 | 1 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 73 | ||
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 73 | ||
Number of TDRs that defaulted | restructuring | 0 | 0 | 0 | 0 | |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of restructurings | restructuring | 0 | 1 | 0 | ||
Pre-modification outstanding recorded investment | $ 0 | $ 4 | $ 0 | ||
Post-modification outstanding recorded investment | $ 0 | $ 3 | $ 0 | ||
Number of TDRs that defaulted | restructuring | 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) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)property | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carry value of OREO | $ 0 | $ 861 | |
Net gains on sales of OREO | $ 154 | $ 0 | |
Other real estate owned | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of OREO properties held in prior year that sold | property | 3 | ||
OREO fair value adjustment | $ 0 | $ 0 | |
Number of OREO properties added | property | 0 |
Allowance For Loan Loss - Allow
Allowance For Loan Loss - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses to total loans ratio | 1.57% | 1.68% | 1.57% | 1.68% | 1.62% |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning Balance | $ 28,162 | $ 26,528 | $ 27,121 | $ 26,967 | |
Provision for loan losses | 250 | 765 | 2,100 | 1,165 | |
Recoveries | 68 | 306 | 291 | 582 | |
Less: Charge offs | 350 | 570 | 1,382 | 1,685 | |
Ending Balance | 28,130 | 27,029 | 28,130 | 27,029 | |
Allotted to loans individually evaluated for impairment | 1,985 | 3,169 | 1,985 | 3,169 | |
Allotted to loans collectively evaluated for impairment | 26,145 | 23,860 | 26,145 | 23,860 | |
Commercial real estate | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning Balance | 12,864 | 13,065 | 12,664 | 13,174 | |
Provision for loan losses | 435 | 154 | 630 | 248 | |
Recoveries | 0 | 0 | 5 | 0 | |
Less: Charge offs | 108 | 92 | 108 | 295 | |
Ending Balance | 13,191 | 13,127 | 13,191 | 13,127 | |
Allotted to loans individually evaluated for impairment | 160 | 110 | 160 | 110 | |
Allotted to loans collectively evaluated for impairment | 13,031 | 13,017 | 13,031 | 13,017 | |
Commercial and industrial | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning Balance | 10,022 | 7,550 | 9,245 | 8,365 | |
Provision for loan losses | (311) | 664 | 1,268 | 512 | |
Recoveries | 65 | 286 | 232 | 510 | |
Less: Charge offs | 232 | 256 | 1,201 | 1,143 | |
Ending Balance | 9,544 | 8,244 | 9,544 | 8,244 | |
Allotted to loans individually evaluated for impairment | 1,265 | 2,198 | 1,265 | 2,198 | |
Allotted to loans collectively evaluated for impairment | 8,279 | 6,046 | 8,279 | 6,046 | |
Commercial construction | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning Balance | 3,447 | 3,741 | 3,384 | 3,493 | |
Provision for loan losses | 207 | (90) | 245 | 128 | |
Recoveries | 0 | 17 | 25 | 47 | |
Less: Charge offs | 0 | 134 | 0 | 134 | |
Ending Balance | 3,654 | 3,534 | 3,654 | 3,534 | |
Allotted to loans individually evaluated for impairment | 516 | 690 | 516 | 690 | |
Allotted to loans collectively evaluated for impairment | 3,138 | 2,844 | 3,138 | 2,844 | |
Residential | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning Balance | 1,022 | 1,266 | 989 | 1,057 | |
Provision for loan losses | (50) | (38) | (17) | 171 | |
Recoveries | 0 | 0 | 0 | 0 | |
Less: Charge offs | 0 | 46 | 0 | 46 | |
Ending Balance | 972 | 1,182 | 972 | 1,182 | |
Allotted to loans individually evaluated for impairment | 0 | 103 | 0 | 103 | |
Allotted to loans collectively evaluated for impairment | 972 | 1,079 | 972 | 1,079 | |
Home Equity | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning Balance | 575 | 685 | 608 | 653 | |
Provision for loan losses | (52) | 36 | (99) | 68 | |
Recoveries | 1 | 1 | 15 | 1 | |
Less: Charge offs | 0 | 27 | 0 | 27 | |
Ending Balance | 524 | 695 | 524 | 695 | |
Allotted to loans individually evaluated for impairment | 0 | 46 | 0 | 46 | |
Allotted to loans collectively evaluated for impairment | 524 | 649 | 524 | 649 | |
Consumer | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Beginning Balance | 232 | 221 | 231 | 225 | |
Provision for loan losses | 21 | 39 | 73 | 38 | |
Recoveries | 2 | 2 | 14 | 24 | |
Less: Charge offs | 10 | 15 | 73 | 40 | |
Ending Balance | 245 | 247 | 245 | 247 | |
Allotted to loans individually evaluated for impairment | 44 | 22 | 44 | 22 | |
Allotted to loans collectively evaluated for impairment | $ 201 | $ 225 | $ 201 | $ 225 |
Borrowed Funds and Subordinat38
Borrowed Funds and Subordinated Debt (Details) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2015 | Mar. 31, 2000 | Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Borrowed funds | $ 24,171,000 | $ 58,900,000 | ||
Subordinated debt | 14,819,000 | 10,825,000 | ||
Proceeds from capital contributions | $ 325,000 | |||
Junior subordinated debt, amount | $ 10,825,000 | |||
Federal Home Loan Bank Borrowings | ||||
Debt Instrument [Line Items] | ||||
Borrowed funds | $ 24,171,000 | $ 58,900,000 | ||
Fixed-to Floating Rate Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Subordinated debt | $ 15,000,000 | |||
Subordinated debt, rate | 6.00% | |||
Original debt issuance costs | $ 190,000 | |||
Junior Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Subordinated debt, rate | 10.875% | |||
Enterprise (MA) Capital Trust 1 | ||||
Debt Instrument [Line Items] | ||||
Trust preferred securities, value | $ 10,500,000 | |||
Trust preferred securities, stated interest rate | 10.875% | |||
London Interbank Offered Rate (LIBOR) | Fixed-to Floating Rate Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Fixed to Floating Rate Conversion Date | Jan. 31, 2025 | |||
Spread over LIBOR fixed-to floating rate note, rate | 3.90% |
Supplemental Retirement Plan 39
Supplemental Retirement Plan and Other Postretirement Benefit Obligations (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)officer | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)officer | Sep. 30, 2014USD ($) | |
Supplemental Employee Retirement Plan | ||||
Defined Benefit Plan Disclosures [Line Items] | ||||
Defined Benefit Plan, Number of Active Executive Officers under Plan | officer | 2 | 2 | ||
Defined Benefit Plan, Number of Former Executive Officers under Plan | officer | 1 | 1 | ||
Term of SERP benefits | 20 years | |||
Net Periodic Benefit Cost, Interest Only | $ 31 | $ 36 | $ 94 | $ 107 |
Benefits Paid | (69) | (69) | (207) | (207) |
Remaining accrual for benefit obligation in current year | 31 | |||
Supplemental Life Insurance Plan | ||||
Defined Benefit Plan Disclosures [Line Items] | ||||
Net Periodic Benefit Cost, Interest Only | $ 18 | $ 19 | $ 55 | $ 55 |
Stock-Based Compensation Summar
Stock-Based Compensation Summary Information for Options Granted (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option awards granted | 27,376 | 31,229 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term in years | 10 years | 10 years |
Expected volatility | 47.00% | 47.00% |
Market price on date of grant | $ 21.03 | $ 20.29 |
Per share weighted average fair value | $ 8.51 | $ 8.32 |
Weighted Average | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 2.90% | 2.88% |
Expected life in years | 7 years | 7 years |
Risk-free interest rate | 1.95% | 2.19% |
Fair Value as a percentage of market value at grant date | 40.00% | 41.00% |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Options, Stock Awards, and Stock in Lieu of Directors' Fees (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2015 | Jan. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jan. 02, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 411 | $ 409 | $ 1,365 | $ 1,325 | ||||
Number of shares issued in lieu of cash to directors | 11,612 | |||||||
Fair market share price | $ 20.84 | |||||||
Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | 71 | 87 | $ 247 | $ 277 | ||||
Restricted stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock awards in period | 55,313 | 58,844 | ||||||
Weighted Average Grant Date Fair Value, Stock Awards | $ 21.03 | $ 20.29 | ||||||
Restricted stock | Employee | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 4 years | |||||||
Restricted stock | Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 2 years | |||||||
Restricted stock and common stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | 295 | 278 | $ 928 | $ 868 | ||||
Common Stock | Employee | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock awards in period | 2,142 | 0 | ||||||
Weighted Average Grant Date Fair Value, Stock Awards | $ 20.95 | |||||||
Common stock in lieu of cash | Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 45 | $ 44 | $ 190 | $ 180 | $ 242 | |||
Year Two | Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted, vesting percentage | 50.00% | 50.00% | ||||||
Vesting, Year Four | Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted, vesting percentage | 50.00% | 50.00% |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Grants (Details) - Restricted stock - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in period | 55,313 | 58,844 |
Weighted Average Grant Date Fair Value, Stock Awards | $ 21.03 | $ 20.29 |
Director | Two year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in period | 7,276 | 6,660 |
Employee | Four year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in period | 17,775 | 19,167 |
Employee | Performance-based vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in period | 30,262 | 33,017 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding | 10,349,232 | 10,143,055 | 10,308,310 | 10,099,593 |
Dilutive shares | 65,022 | 85,446 | 65,154 | 84,671 |
Diluted weighted average common shares outstanding | 10,414,254 | 10,228,501 | 10,373,464 | 10,184,264 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)property | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Specific allowance for collateral dependent impaired loans | $ 1,300 | $ 1,700 | |
Carry value of OREO | 0 | 861 | |
Net gains on sales of OREO | $ 154 | $ 0 | |
Other real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of OREO properties held in prior year that sold | property | 3 | ||
Number of OREO properties added | property | 0 | ||
OREO fair value adjustment | $ 0 | $ 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Fixed income securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 11,026 | 14,275 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | FHLB Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Fixed income securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 270,001 | 230,790 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | FHLB Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Fixed income securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | FHLB Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 4,239 | 3,357 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | 0 | 0 | |
Other real estate owned, Fair Value | 0 | ||
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | 0 | 0 | |
Other real estate owned, Fair Value | 0 | ||
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 | 2,598 | 5,174 | |
Other real estate owned, Fair Value | 861 | ||
Fair Value | Fair Value, Measurements, Recurring | Fixed income securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 270,001 | 230,790 | |
Fair Value | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 11,026 | 14,275 | |
Fair Value | Fair Value, Measurements, Recurring | FHLB Stock | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of assets | 4,239 | 3,357 | |
Fair Value | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | $ 2,598 | 5,174 | |
Other real estate owned, Fair Value | $ 861 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Fair Value, Measurements, Recurring | FHLB Stock | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | $ 4,239 | $ 3,357 | |
Fair Value, Measurements, Recurring | FHLB Stock | FHLB par stated value | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | 4,239 | ||
Fair Value, Measurements, Nonrecurring | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | 2,598 | $ 5,174 | |
Fair Value, Measurements, Nonrecurring | Impaired loans (collateral dependent) | Appraisal of collateral | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | [1] | $ 2,598 | |
Fair Value, Measurements, Nonrecurring | Impaired loans (collateral dependent) | Appraisal of collateral | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Unobservable Input Value or Range | 5.00% | ||
Fair Value, Measurements, Nonrecurring | Impaired loans (collateral dependent) | Appraisal of collateral | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Unobservable Input Value or Range | 50.00% | ||
[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) | 9 Months Ended |
Sep. 30, 2015 | |
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 - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Financial assets: | ||
Loans held for sale | $ 1,325 | $ 2,371 |
Loans, net | 1,762,478 | 1,645,483 |
Financial liabilities: | ||
Borrowed funds | 24,171 | 58,900 |
Subordinated debt | 14,819 | 10,825 |
Carrying Amount | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | 277,465 | 263,779 |
Fair Value | ||
Financial assets: | ||
Loans held for sale | 1,346 | 2,381 |
Loans, net | 1,781,857 | 1,668,863 |
Financial liabilities: | ||
Borrowed funds | 24,164 | 58,899 |
Subordinated debt | 14,148 | 13,017 |
Fair Value | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | 277,572 | 262,774 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Fair Value, Inputs, Level 1 | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Loans held for sale | 1,346 | 2,381 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 24,164 | 58,899 |
Subordinated debt | 0 | 0 |
Fair Value, Inputs, Level 2 | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | 277,572 | 262,774 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 1,781,857 | 1,668,863 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 14,148 | 13,017 |
Fair Value, Inputs, Level 3 | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | $ 0 | $ 0 |