Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 30, 2016 | |
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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 11,517,490 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 220,105,371 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 33,047 | $ 32,318 |
Interest-earning deposits | 17,428 | 19,177 |
Total cash and cash equivalents | 50,475 | 51,495 |
Investment securities at fair value | 374,790 | 300,358 |
Federal Home Loan Bank Stock | 2,094 | 3,050 |
Loans held for sale | 1,569 | 1,709 |
Loans, less allowance for loan losses of $31,342 at December 31, 2016 and $29,008 at December 31, 2015 | 1,991,387 | 1,830,954 |
Premises and equipment, net | 33,540 | 30,553 |
Accrued interest receivable | 8,792 | 7,790 |
Deferred income taxes, net | 17,020 | 14,111 |
Bank-owned life insurance | 28,765 | 28,018 |
Prepaid income taxes | 1,344 | 57 |
Prepaid expenses and other assets | 10,837 | 11,780 |
Goodwill | 5,656 | 5,656 |
Total assets | 2,526,269 | 2,285,531 |
Liabilities | ||
Deposits | 2,268,921 | 2,018,148 |
Borrowed funds | 10,671 | 53,671 |
Subordinated debt | 14,834 | 14,822 |
Accrued expenses and other liabilities | 16,794 | 18,287 |
Accrued interest payable | 263 | 276 |
Total liabilities | 2,311,483 | 2,105,204 |
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; 11,475,742 shares issued and outstanding at December 31, 2016 (including 141,580 shares of unvested participating restricted awards) and 10,377,787 shares issued and outstanding at December 31, 2015 (including 144,717 shares of unvested participating restricted awards) | 115 | 104 |
Additional paid-in capital | 85,421 | 61,008 |
Retained earnings | 130,008 | 116,941 |
Accumulated other comprehensive income | (758) | 2,274 |
Total stockholders’ equity | 214,786 | 180,327 |
Total liabilities and stockholders' equity | $ 2,526,269 | $ 2,285,531 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||||
Allowance for loan losses | $ 31,342 | $ 29,008 | $ 27,121 | $ 26,967 |
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 20,000,000 | 20,000,000 | ||
Common stock, shares issued | 11,475,742 | 10,377,787 | ||
Common stock, shares outstanding | 11,475,742 | 10,377,787 | ||
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 | 141,580 | 144,717 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and dividend income: | |||
Loans and loans held for sale | $ 85,390 | $ 77,946 | $ 71,854 |
Investment securities | 6,640 | 5,346 | 4,504 |
Other interest-earning assets | 285 | 179 | 115 |
Total interest and dividend income | 92,315 | 83,471 | 76,473 |
Interest expense: | |||
Deposits | 4,514 | 4,068 | 4,028 |
Borrowed funds | 81 | 38 | 38 |
Subordinated debt | 928 | 1,071 | 1,177 |
Total interest expense | 5,523 | 5,177 | 5,243 |
Net interest income | 86,792 | 78,294 | 71,230 |
Provision for loan losses | 2,993 | 3,267 | 1,395 |
Net interest income after provision for loan losses | 83,799 | 75,027 | 69,835 |
Non-interest income: | |||
Investment advisory fees | 4,774 | 4,750 | 4,618 |
Deposit and interchange fees | 5,124 | 4,879 | 5,036 |
Income on bank-owned life insurance,net | 747 | 553 | 413 |
Net gains on sales of investment securities | 802 | 1,828 | 1,619 |
Gains on sales of loans | 601 | 492 | 406 |
Other income | 2,393 | 2,465 | 2,340 |
Total non-interest income | 14,441 | 14,967 | 14,432 |
Non-interest expense: | |||
Salaries and employee benefits | 43,886 | 40,285 | 38,029 |
Occupancy and equipment expenses | 7,362 | 7,308 | 6,515 |
Technology and telecommunications expenses | 6,080 | 5,710 | 5,167 |
Advertising and public relations expenses | 2,833 | 2,719 | 2,928 |
Audit, legal and other professional fees | 1,721 | 1,657 | 1,515 |
Deposit insurance premiums | 1,387 | 1,214 | 1,169 |
Supplies and postage expenses | 965 | 988 | 1,053 |
Other operating expenses | 6,094 | 5,851 | 5,655 |
Total non-interest expense | 70,328 | 65,732 | 62,031 |
Income before income taxes | 27,912 | 24,262 | 22,236 |
Provision for income taxes | 9,161 | 8,114 | 7,585 |
Net income | $ 18,751 | $ 16,148 | $ 14,651 |
Basic earnings per share | $ 1.71 | $ 1.56 | $ 1.45 |
Diluted earnings per share | $ 1.70 | $ 1.55 | $ 1.44 |
Basic weighted average common shares outstanding | 10,966,333 | 10,323,016 | 10,118,762 |
Diluted weighted average common shares outstanding | 11,039,511 | 10,389,934 | 10,209,243 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 18,751 | $ 16,148 | $ 14,651 |
Other comprehensive income/(loss), net of taxes: | |||
Gross unrealized holding (losses)/gains on investments arising during the period | (3,876) | (518) | 4,225 |
Income tax benefit/(expense) | 1,357 | 216 | (1,553) |
Net unrealized holding (losses)/gains, net of tax | (2,519) | (302) | 2,672 |
Less: Reclassification adjustment for net gains included in net income | |||
Net realized gains on sales of securities during the period | 802 | 1,828 | 1,619 |
Income tax expense | (289) | (637) | (569) |
Reclassification adjustment for gains realized, net of tax | 513 | 1,191 | 1,050 |
Total other comprehensive income (loss) | (3,032) | (1,493) | 1,622 |
Comprehensive income | $ 15,719 | $ 14,655 | $ 16,273 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated OtherComprehensive Income/(Loss) |
Balance, beginning at Dec. 31, 2013 | $ 151,334 | $ 100 | $ 52,936 | $ 96,153 | $ 2,145 |
Balance, beginning, shares, outstanding at Dec. 31, 2013 | 9,992,560 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 14,651 | 14,651 | |||
Other comprehensive income, net | 1,622 | 1,622 | |||
Tax benefit from stock compensation | 320 | 320 | |||
Common stock dividend paid | (4,853) | (4,853) | |||
Common stock issued under dividend reinvestment plan, shares | 60,586 | ||||
Common stock issued under dividend reinvestment plan | 1,219 | $ 1 | 1,218 | ||
Common stock issued, shares, other net of expenses | 2,917 | ||||
Common stock issued, other net of expenses | $ 0 | 64 | |||
Stock-based compensation, shares, net | 69,926 | ||||
Stock-based compensation, net | 1,704 | $ 1 | 1,703 | ||
Stock options exercised, shares, net | 81,954 | ||||
Stock options exercised, net | 889 | $ 0 | 889 | ||
Balance, ending at Dec. 31, 2014 | 166,950 | $ 102 | 57,130 | 105,951 | 3,767 |
Balance, ending, shares, outstanding at Dec. 31, 2014 | 10,207,943 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 16,148 | 16,148 | |||
Other comprehensive income, net | (1,493) | (1,493) | |||
Tax benefit from stock compensation | 217 | 217 | |||
Common stock dividend paid | (5,158) | (5,158) | |||
Common stock issued under dividend reinvestment plan, shares | 58,529 | ||||
Common stock issued under dividend reinvestment plan | 1,277 | $ 1 | 1,276 | ||
Common stock issued, shares, other net of expenses | 7,674 | ||||
Common stock issued, other net of expenses | 171 | $ 0 | 171 | ||
Stock-based compensation, shares, net | 65,015 | ||||
Stock-based compensation, net | 1,784 | $ 1 | 1,783 | ||
Stock options exercised, shares, net | 38,626 | ||||
Stock options exercised, net | 431 | $ 0 | 431 | ||
Balance, ending at Dec. 31, 2015 | $ 180,327 | $ 104 | 61,008 | 116,941 | 2,274 |
Balance, ending, shares, outstanding at Dec. 31, 2015 | 10,377,787 | 10,377,787 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 18,751 | 18,751 | |||
Other comprehensive income, net | (3,032) | (3,032) | |||
Tax benefit from stock compensation | 789 | 789 | |||
Common stock dividend paid | (5,684) | (5,684) | |||
Common stock issued under dividend reinvestment plan, shares | 53,516 | ||||
Common stock issued under dividend reinvestment plan | 1,381 | $ 1 | 1,380 | ||
Common stock issued, shares, other net of expenses | 932,522 | ||||
Common stock issued, other net of expenses | 19,802 | $ 9 | 19,793 | ||
Stock-based compensation, shares, net | 58,918 | ||||
Stock-based compensation, net | 2,064 | $ 1 | 2,063 | ||
Stock options exercised, shares, net | 52,999 | ||||
Stock options exercised, net | 388 | $ 0 | 388 | ||
Balance, ending at Dec. 31, 2016 | $ 214,786 | $ 115 | $ 85,421 | $ 130,008 | $ (758) |
Balance, ending, shares, outstanding at Dec. 31, 2016 | 11,475,742 | 11,475,742 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividend paid, per share | $ 0.52 | $ 0.50 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 18,751 | $ 16,148 | $ 14,651 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 2,993 | 3,267 | 1,395 |
Depreciation and amortization | 6,081 | 5,603 | 5,458 |
Stock-based compensation expense | 2,380 | 1,803 | 1,752 |
Mortgage loans originated for sale | (28,873) | (23,673) | (20,864) |
Proceeds from mortgage loans sold | 29,614 | 24,827 | 20,154 |
Net gains on sales of loans | (601) | (492) | (406) |
Net gains on sales of OREO | 0 | (154) | 0 |
Net gains on sales of investment | (802) | (1,828) | (1,619) |
Net gains on life insurance | 0 | (163) | 0 |
Income on bank-owned life insurance, net | (747) | (553) | (413) |
Changes in: | |||
Accrued interest receivable | (1,002) | (1,057) | (547) |
Prepaid expenses and other assets | 89 | 1,527 | (6,597) |
Deferred income taxes | (1,261) | (406) | 90 |
Accrued expenses and other liabilities | 418 | 1,342 | 85 |
Subordinated debt issuance costs | 12 | (178) | 0 |
Accrued interest payable | (13) | (290) | 1 |
Net cash provided by operating activities | 27,039 | 25,723 | 13,140 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available-for-sale | 4,800 | 25,115 | 25,371 |
Net proceeds from FHLB capital stock redemptions | 956 | 307 | 967 |
Proceeds from maturities, calls and pay-downs of investment securities | 30,930 | 26,731 | 40,497 |
Purchase of investment securities | (118,255) | (108,962) | (90,918) |
Net increase in loans | (163,426) | (188,738) | (150,079) |
Additions to premises and equipment, net | (7,918) | (3,938) | (4,667) |
Proceeds from OREO sales and payments | 0 | 1,015 | 0 |
Purchase of OREO | 0 | 0 | (457) |
Proceeds from bank-owned life insurance | 405 | 0 | 0 |
Purchase of bank-owned life insurance | 0 | (11,390) | 0 |
Net cash used in (provided by) investing activities | (252,508) | (259,860) | (179,286) |
Cash flows from financing activities: | |||
Net increase in deposits | 250,773 | 249,602 | 132,554 |
Net (decrease) increase in borrowed funds | (43,000) | (5,229) | 22,366 |
Repayment of subordinated debt | 0 | (10,825) | 0 |
Proceeds from the issuance of subordinated debt | 0 | 15,000 | 0 |
Cash dividends paid | (5,684) | (5,158) | (4,853) |
Proceeds from issuance of common stock | 21,183 | 1,448 | 1,283 |
Proceeds from exercise of stock options, net | 388 | 431 | 889 |
Tax benefit from stock-based compensation | 789 | 217 | 320 |
Net cash provided by (used in) financing activities | 224,449 | 245,486 | 152,559 |
Net increase (decrease) in cash and cash equivalents | (1,020) | 11,349 | (13,587) |
Cash and cash equivalents, beginning of year | 51,495 | 40,146 | 53,733 |
Cash and cash equivalents, end of year | 50,475 | 51,495 | 40,146 |
Supplemental financial data: | |||
Cash paid for: Interest | 5,536 | 5,467 | 5,242 |
Cash paid for: Income taxes | 10,868 | 7,594 | 7,466 |
Supplemental schedule of non-cash activity: | |||
Net purchases (sales) of investment securities not yet settled | (301) | 2,296 | 2,336 |
Transfer from loans to other real estate owned | 0 | 0 | 290 |
Bank owned life insurance proceeds not yet received | 0 | 403 | 0 |
Capital expenditures incurred not yet paid | $ 0 | $ 525 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Organization of Holding Company and Basis of Presentation The consolidated financial statements of Enterprise Bancorp, Inc. (the “Company,” “Enterprise,” “we,” or “our”), a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary Enterprise Bank and Trust Company (the “Bank”). The Bank is a Massachusetts trust company organized in 1989. Substantially all of the Company’s operations are conducted through the Bank. The Bank’s subsidiaries include Enterprise Insurance Services, LLC and Enterprise Investment Services, LLC, organized under the laws of the state of Delaware for the purposes of engaging in insurance sales activities and offering non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. 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 23 full-service branches serving the greater Merrimack Valley and North Central regions of Massachusetts, and in Southern New Hampshire. Through the Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, as well as 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. Prior to March 2015 , pursuant to the Accounting Standards Codification (“ASC”) Topic 810 “Consolidation of Variable Interest Entities,” issued by the Financial Accounting Standards Board (“FASB”), 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, had been excluded from the Company’s consolidated financial statements. In March 2015 , the Company redeemed in full the junior subordinated debentures, which in turn allowed the Trust to redeem in full the trust preferred securities. The Company also dissolved the Trust in April 2015. See Note 7, “Borrowed Funds and Subordinated Debt,” below for further information on the Company's subordinated debt. The Federal Deposit Insurance Corporation (“FDIC”) and the Massachusetts Division of Banks (the “Division”) have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Division also retains supervisory jurisdiction over the Company. The accompanying audited consolidated financial statements and notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the instructions for Form 10-K through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying audited consolidated financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying audited consolidated financial statements. Certain previous years' amounts in the audited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. The Company has evaluated subsequent events and transactions from December 31, 2016 through the date this report on Form 10-K was filed with the SEC for potential recognition or disclosure as required by GAAP and determined that there were no material subsequent events requiring recognition or disclosure. (b) Uses of estimates In preparing the 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 at the balance sheet date and income and expenses for the years then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used change over time due to changes in circumstances. Changes in those estimates resulting from continuing change in the economic environment and other factors will be reflected in the financial statements and results of operations in future periods. The three most significant areas in which management applies critical assumptions and estimates are the estimate of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. (c) Cash and cash equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of changes in value due to changes in interest rates. The Company's cash and cash equivalents are comprised of cash on hand and cash items due from banks, interest-earning deposits (deposit accounts, excess cash balances, money market and money market mutual fund accounts) and overnight and term federal funds sold (“fed funds”). Balances in cash and cash equivalents will fluctuate resulting primarily from the timing of net deposit flows, borrowing and loan inflows and outflows, investment purchases and maturities, calls and sales proceeds, and the immediate liquidity needs of the Company. (d) Investments Investments that are intended to be held for indefinite periods of time but which may not be held to maturity or on a long-term basis are considered to be “available-for-sale” and are carried at fair value. Net unrealized appreciation and depreciation on investments available-for-sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income/(loss). Included as available-for-sale are securities that are purchased in connection with the Company’s asset-liability risk management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk and other related factors. In instances where the Company has the positive intent to hold investment securities to maturity, investment securities will be classified as held-to-maturity and carried at amortized cost. As of the balance sheet dates, all of the Company’s investment securities were classified as available-for-sale and carried at fair value. There are inherent risks associated with the Company’s investment activities that could adversely impact the fair market value and the ultimate collectability of the Company’s investments. Management regularly reviews the portfolio for securities with unrealized losses that are other than temporarily impaired. The determination of other-than-temporary impairment (“OTTI”) involves a high degree of judgment and requires management to make significant estimates of current market risks and future trends. Management's assessment, depending on the type of security includes: reviews of market pricing, evaluating the level and duration of the loss on individual securities; ongoing credit quality evaluations; determining if any individual security or mutual fund or other fund exhibits fundamental deterioration; and estimating whether it is unlikely that the individual security or fund will completely recover its unrealized loss within a reasonable period of time, or in the case of debt securities prior to maturity. While management uses available information to measure OTTI at the balance sheet date, future write-downs may be necessary based on extended duration of current unrealized losses, changing market conditions, or circumstances surrounding individual issuers and funds. Should an investment be deemed to have OTTI, the Company is required to write-down the carrying value of the investment. OTTI on equity securities is recognized through a charge to earnings. OTTI on debt securities is assessed in order to determine the impairment attributed to underlying credit quality of the issuer and the portion of noncredit impairment. When there are credit losses on a debt security that management does not intend to sell and it is more likely than not that the Company will not be required to sell prior to a marketplace recovery or maturity, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the security’s amortized cost basis and its fair value would be included in other comprehensive income. Once written-down, the previous charge may not be recovered through earnings until sale or maturity, if in excess of its new cost basis. Any OTTI charges, depending upon the magnitude of the charges, could have a material adverse effect on the Company’s financial condition and results of operations. Investment securities’ discounts are accreted and premiums are amortized over the period of estimated principal repayment using methods that approximate the interest method. Gains or losses on the sale of investment securities are recognized on the trade date on a specific identification basis. (e) Restricted Investments As a member of the Federal Home Loan Bank of Boston (“FHLB”), the Bank is required to purchase certain levels of FHLB stock in association with outstanding advances from the FHLB. From time-to-time, the FHLB may initiate the repurchase, at par value, of "excess" levels of its capital stock held by member banks. This stock investment 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 OTTI review noted above under investments, management also regularly reviews its holdings of FHLB stock for OTTI. Based on management’s ongoing review, the Company has not recorded any OTTI charges on this investment to date. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. (f) Loans Held for Sale Depending on the current interest rate environment, management projections of future interest rates and the overall asset-liability management program of the Company, management may elect to sell those fixed and adjustable rate residential mortgage loans which are eligible for sale in the secondary market. Mortgage loans are generally not pooled for sale, but instead sold on an individual basis. Enterprise may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan, and are subject to an early payment default period covering the first four payments for certain loan sales. Loans held for sale are carried at the lower of aggregate amortized cost or market value. Market value is based on comparable market prices for loans with similar rates and terms. When loans are sold, a gain or loss is recognized to the extent that the sales proceeds plus unamortized fees and costs exceed, or are less than, the carrying value of the loans. Gains and losses are determined using the specific identification method. (g) Loans Loans made by the Company to businesses include commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and standby letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner occupied primary and secondary residences, secured and unsecured personal loans and lines of credit. Most loans granted by the Company are collateralized by real estate or equipment and/or are guaranteed by the principals of the borrower. The ability and willingness of the single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity and real estate values within the borrowers’ geographic areas. The ability and willingness of commercial real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic areas and the general economy, among other factors. Loans are reported at the principal amount outstanding, net of deferred origination fees and costs. The aggregate amount of overdrawn deposit accounts are reclassified as loan balances. Loan origination fees received, offset by direct loan origination costs, are deferred and amortized using the straight line method over three to five years for lines of credit and demand notes or over the life of the related loans using the level-yield method for all other types of loans. When loans are paid off, the unamortized fees and costs are recognized as an adjustment to interest income. The Company participates with other banks in the financing of certain commercial projects. 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. When the participation qualifies as a sale under GAAP, 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. Loans acquired are initially measured at fair value as of the acquisition date without carryover of historical allowance for loan losses. Credit discounts representing losses of unpaid loan principal balances expected over the life of the loans are included in the determination of acquisition date fair value. The fair-market valuation of loans acquired at a premium is amortized into interest income on a level-yield basis over the life of the loan. Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses are similar to originated loans. (h) Allowance for Loan Losses 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 allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated probable losses from specifically known and other credit risks associated with the portfolio. The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology uses a two-tiered approach that makes use of specific reserves for loans individually evaluated and deemed impaired and general reserves for larger groups of homogeneous loans. On a quarterly basis, the Company prepares an estimate of the allowance necessary to cover estimated credit risk inherent in the portfolio as of the specified balance sheet dates. The adequacy of the allowance for loan losses is reviewed and evaluated on a regular basis by an internal management committee, a sub-committee of the Board of Directors and the full Board itself. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. See Note 4, "Allowance for Loan Losses," for additional accounting policies related to non-accrual, impaired and troubled debt restructured loans and to the allowance for loan losses. (i) Other Real Estate Owned Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as Other Real Estate Owned (“OREO”). When property is acquired, it is generally recorded at the lesser of the loan’s remaining principal balance, net of unamortized deferred fees, or the estimated fair value of the property acquired, less estimated costs to sell, establishing a new cost basis. 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. (j) Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: Bank premises and leasehold improvements 10 to 39 years Computer software and equipment 3 to 5 years Furniture, fixtures and equipment 3 to 10 years (k) Bank Owned Life Insurance The Company has purchased bank owned life insurance (“BOLI”) on certain current and former senior and executive officers. The cash surrender value carried on the consolidated balance sheets at December 31, 2016 and December 31, 2015 amounted to $28.8 million and $28.0 million , respectively. There are no associated surrender charges under the outstanding policies. (l) Impairment of Long-Lived Assets Other than Goodwill The Company reviews long-lived assets, including premises and equipment, for impairment on an ongoing basis or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is recognized through a charge to earnings. Impairment losses on assets disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. (m) Goodwill Goodwill carried on the Company’s consolidated financial statements was $5.7 million at both December 31, 2016 and December 31, 2015 . This asset is related to the Company’s acquisition of two branch offices in July 2000. In accordance with GAAP the Company does not amortize goodwill and instead, at least annually, evaluates whether the carrying value of goodwill has become impaired. Impairment of the goodwill may occur when the estimated fair value of the Company is less than its recorded book value. A determination that goodwill has become impaired results in an immediate write-down of goodwill to its determined value with a resulting charge to operations. The annual impairment test begins with a qualitative assessment of whether it is "more likely than not" that the reporting unit's fair value is less than its carrying amount. The assessment is performed at the operating unit level. If an entity concludes it is not "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. In the case of the Company, the services offered through the Bank and subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was determined not to be impaired at December 31, 2016 . If the Company's qualitative assessment concluded that it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test compares the estimated fair value of the reporting unit with its carrying amount, or the book value of the reporting unit, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair values for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of that goodwill, an impairment loss is recognized in the amount required to write down the goodwill to the implied fair value. (n) Investment Assets Under Management Investment assets under management, consisting of assets managed through Enterprise Wealth Management and Enterprise Investment Services and the commercial sweep product, totaled $725.3 million and $678.4 million at December 31, 2016 and 2015 , respectively. Fee income is recorded on an accrual basis and recognized over the period in which it is earned. Securities and other property held in a fiduciary or agency capacity are not included in the consolidated balance sheets because they are not assets of the Company. (o) Derivatives The Company recognizes all derivatives as either assets or liabilities on its consolidated balance sheet and measures those instruments at fair market value. Interest rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. At December 31, 2016 and 2015 , the estimated fair values of these derivative instruments were considered to be immaterial. The Company may use interest-rate swap agreements as part of its interest-rate risk management strategy. Interest-rate swap agreements can be entered into as hedges against future interest-rate fluctuations on specifically identified assets or liabilities. The Company did not have derivative fair value hedges or derivative cash flow hedges at December 31, 2016 or 2015 . Beginning in 2015, the Company implemented a “Back-to-Back Swap” program whereby the Bank enters into an interest rate swap with a qualified commercial banking customer and simultaneously enters into an equal and opposite interest rate swap with an independent counterparty. The customer interest-rate swap agreement allows commercial banking customers to convert a floating-rate loan payment to fixed-rate loan payment. The transaction structure effectively minimizes the Bank’s net risk exposure resulting from such transactions. Customer related credit risk is minimized by the cross collateralization of the loan and the interest rate swap agreement. Back-to-Back Swaps are not speculative but rather result from a service the Company provides to certain customers. Back-to-Back Swaps do not meet hedge accounting requirements and therefore changes in the fair value of both the customer swaps and the counterparty swaps, which have an offsetting relationship, are recognized directly in earnings. See Note 8, "Derivatives and Hedging Activities" for more information about the Company's derivatives. (p) Stock Based Compensation The Company’s financial statements include stock-based compensation expense for the portion of stock option awards, net of estimated forfeitures, and stock awards for which the requisite service has been rendered during the period. The compensation expense has been estimated based on the estimated grant-date fair value of the stock option awards, or in the case of stock awards, the market value of the common stock on the date of grant. The Company will recognize the remaining estimated compensation expense for the portion of outstanding awards and compensation expense for any future awards, net of estimated forfeitures, as the requisite service is rendered (i.e., on a straight-line basis over the remaining vesting period of each award) or as performance objectives are met. Stock awards that do not require future service (“vested awards”) will be expensed immediately. Stock-based compensation also includes Director stock compensation for stock awards and stock in lieu of cash fees, both included in other operating expenses, described in more detail in Note 11 "Stock-Based Compensation Plans." (q) 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 December 31, 2016 or December 31, 2015 . The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2013 through 2016 tax years. (r) Earnings per Share Basic earnings per share are calculated by dividing net income available to common stockholders 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. (s) Reporting Comprehensive Income Comprehensive income is defined as all changes to equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. The Company’s only other comprehensive income component is the net unrealized holding gains or losses on investments available-for-sale, net of deferred income taxes. Pursuant to GAAP, 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." (t) Recent Accounting Pronouncements Accounting pronouncements adopted by the Company In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 2015, the FASB issued ASU No. 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." This ASU will align more closely GAAP income statement presentation guidance with International Audit Standards (IAS) 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this standard did not have an impact on the Company's financial statements. Accounting pronouncements not yet adopted by the Company (in order of effective date) In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. " The amendments are intended to improve the accounting for |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The amortized cost and fair values of investments at December 31, 2016 and 2015 are summarized as follows: 2016 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 74,682 $ 432 $ 45 $ 75,069 Residential federal agency MBS (1) 94,818 96 1,561 93,353 Commercial federal agency MBS (1) 71,993 15 1,730 70,278 Municipal securities 112,401 922 1,520 111,803 Corporate bonds 10,734 51 90 10,695 Certificates of deposits (2) 950 — 1 949 Total debt securities 365,578 1,516 4,947 362,147 Equity investments 10,413 2,532 302 12,643 Total available-for-sale investments, at fair value $ 375,991 $ 4,048 $ 5,249 $ 374,790 2015 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 78,626 $ 352 $ 153 $ 78,825 Residential federal agency MBS (1) 75,105 406 648 74,863 Commercial federal agency MBS (1) 23,908 — 363 23,545 Municipal securities 96,189 2,357 35 98,511 Corporate bonds 10,257 44 95 10,206 Certificates of Deposit (2) 2,753 — 2 2,751 Total debt securities 286,838 3,159 1,296 288,701 Equity investments 10,043 1,966 352 11,657 Total available-for-sales investments, at fair value $ 296,881 $ 5,125 $ 1,648 $ 300,358 (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 ( “ FFCB ” ), 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. Included in the residential federal agency MBS category were collateralized mortgage obligations (“CMOs”) totaling $36.7 million and $20.8 million at December 31, 2016 and 2015 respectively. All of the commercial federal agency MBS investments held by the Company were CMOs issued by U.S. agencies. At December 31, 2016 , the equity portfolio consisted primarily of investments in mutual funds, with approximately 22% of the equity portfolio 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 (loss). The net unrealized gain or loss in the Company's debt security portfolio fluctuates as market interest rates rise and fall. Due to the primarily 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 debt securities will also decline as the securities approach maturity or if the issuer is credit impaired. Unrealized gains or losses will be recognized in the statements of income if the securities are sold. However, if an unrealized loss on the debt security portfolio is deemed to be other than temporary, the credit loss portion is charged to earnings and the noncredit portion is recognized in accumulated other comprehensive income. 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. The following tables summarize investments (debt and equity) having temporary impairment, due to the fair market values having declined below the amortized costs of the individual investments, and the period of time that the investments have been temporarily impaired at December 31, 2016 and 2015 . 2016 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 13,956 $ 45 $ — $ — $ 13,956 $ 45 3 Residential federal agency MBS 68,138 1,236 8,008 325 76,146 1,561 31 Commercial federal agency MBS 60,060 1,730 — — 60,060 1,730 18 Municipal securities 60,436 1,520 — — 60,436 1,520 107 Corporate bonds 5,729 90 — — 5,729 90 37 Certificates of Deposit 949 1 — — 949 1 4 Equity investments 1,185 20 2,743 282 3,928 302 3 Total temporarily impaired investments $ 210,453 $ 4,642 $ 10,751 $ 607 $ 221,204 $ 5,249 203 2015 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 27,420 $ 153 $ — $ — $ 27,420 $ 153 8 Residential federal agency MBS 20,517 275 10,935 373 31,452 648 14 Commercial federal agency MBS 23,545 363 — — 23,545 363 9 Municipal securities 6,988 33 261 2 7,249 35 13 Corporate bonds 4,574 78 419 17 4,993 95 37 Certificates of deposit 1,976 2 — — 1,976 2 10 Equity investments 4,204 351 24 1 4,228 352 5 Total temporarily impaired investments $ 89,224 $ 1,255 $ 11,639 $ 393 $ 100,863 $ 1,648 96 During the years ended December 31, 2016 and 2015 , the Company did not record any fair value impairment charges on its investments. Management regularly reviews the portfolio for securities with unrealized losses that are other-than-temporarily impaired. At December 31, 2016 , management attributes the unrealized losses in the portfolio to increases in current 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 because (1) the decline in market value is not attributable to a fundamental deterioration in quality of the securities, the equity funds 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 with recovery of the amortized cost. 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 debt securities 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 December 31, 2016 , 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 was invested in CDs and was also in an unrealized loss position at December 31, 2016 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 of total debt securities at December 31, 2016 is as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 12,898 $ 12,937 Due after one, but within five years 98,184 98,807 Due after five, but within ten years 136,160 133,755 Due after ten years 118,336 116,648 Total debt securities $ 365,578 $ 362,147 Scheduled contractual maturities 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 debt securities above are callable securities, comprised of municipal securities and corporate bonds with amortized cost and fair values of $49.2 million and $49.0 million , respectively, at December 31, 2016 , which can be redeemed by the issuers prior to the maturity presented above. Management considers these factors when evaluating the interest rate risk in the Company's asset-liability management program. From time to time the Company may pledge securities as collateral against deposit account balances of municipal deposit customers, and for borrowing capacity with the FHLB and the Federal Reserve Bank of Boston ("FRB"). The fair value of securities pledged as collateral for these purposes was $361.2 million at December 31, 2016 and $286.0 million at December 31, 2015 . Sales of investments, including pending trades if applicable, for the years ended December 31, 2016 , 2015 , and 2014 are summarized as follows: (Dollars in thousands) 2016 2015 2014 Amortized cost of investments sold (1) $ 4,299 $ 23,287 $ 23,752 Gross realized gains on sales 803 1,990 1,654 Gross realized losses on sales (1 ) (162 ) (35 ) Total proceeds from sales of investments $ 5,101 $ 25,115 $ 25,371 (1) Amortized cost of investments sold is determined on a specific identification basis. Tax-exempt interest earned on the municipal securities portfolio was $3.6 million for the year ended December 31, 2016 , $2.9 million for the year ended December 31, 2015 and $2.4 million for the year ended December 31, 2014 . The average balance of tax-exempt investments was $100.0 million and $81.2 million for the year ended December 31, 2016 and December 31, 2015 , respectively. See Item (d) “Investments,” contained in Note 1, “Summary of Significant Accounting Policies,” for additional information regarding the accounting for the Company’s investments portfolio. See also Note 15, “Fair Value Measurements,” for additional information regarding the Company’s fair value measurement of investments. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2016 | |
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. See Note 4, "Allowance for Loan Losses," for information on the Company's credit risk management, non-accrual, impaired and troubled debt restructured loans and the allowance for loan losses. Major classifications of loans at the periods indicated, are as follows: (Dollars in thousands) December 31, 2016 December 31, 2015 Commercial real estate $ 1,038,082 $ 936,921 Commercial and industrial 490,799 458,553 Commercial construction 213,447 202,993 Total commercial loans 1,742,328 1,598,467 Residential mortgages 180,560 169,188 Home equity loans and lines of credit 91,065 83,373 Consumer 10,845 10,747 Total retail loans 282,470 263,308 Gross loans 2,024,798 1,861,775 Deferred loan origination fees, net (2,069 ) (1,813 ) Total loans 2,022,729 1,859,962 Allowance for loan losses (31,342 ) (29,008 ) Net loans $ 1,991,387 $ 1,830,954 Loan Categories Commercial loans: Commercial real estate loans include loans secured by both owner-use and non-owner occupied real estate. These loans are typically secured by a variety of commercial and industrial property types including one-to-four family and multi-family apartment buildings, office, industrial or mixed-use facilities, strip shopping centers or other commercial properties and are generally guaranteed by the principals of the borrower. Commercial real estate loans generally have repayment periods of approximately fifteen to twenty-five years. Variable interest rate loans have a variety of adjustment terms and 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, secured in whole or in part by real estate unrelated to the principal purpose of the loan or secured by inventories, equipment, or receivables, and are generally guaranteed by the principals of the borrower. Variable rate loans and lines in this portfolio have interest rates that are periodically adjusted, with loans generally having fixed initial periods. Commercial and industrial loans have average repayment periods of one to seven years. Commercial construction loans include the development of residential housing and condominium projects, the development of commercial and industrial use property, and loans for the purchase and improvement of raw land. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrowers. Construction lenders work to cultivate long-term relationships with established developers. The Company limits the amount of financing provided to any single developer for the construction of properties built on a speculative basis. Funds for construction projects are disbursed as pre-specified stages of construction are completed. Regular site inspections are performed, 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 periodically adjusted variable rate loans and lines and generally have terms of one to three years. From time to time, the Company participates with other banks in the financing of certain commercial projects. Participating loans with other institutions provide banks the opportunity to retain customer relationships and reduce credit risk exposure among each participating bank, while providing them 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 pro-rata risk. The Company performs an independent credit analysis of each commitment and a review of the participating institution prior to participation in the loan, and an annual review thereafter of each participating institution. 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 and amounted to $85.2 million at December 31, 2016 and $62.3 million at December 31, 2015 . Standby letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance by a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. If the letter of credit is drawn upon, a loan is created for the customer, generally a commercial loan, with the same criteria associated with similar commercial loans. Residential mortgage loans: Enterprise originates conventional mortgage loans on one-to-four family residential properties. These properties may serve as the borrower's primary residence, or be vacation homes or investment properties. Loan to value limits vary, generally from 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 consolidated balance sheet. Home equity loans and lines of credit: Home equity term loans have in the past been originated for one-to-four family residential properties with maximum combined 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 be variable or fixed. 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 Wall Street Journal Prime Rate, although minimum rates may be applicable. Some home equity line rates may be fixed for a period of time and then adjusted monthly thereafter. The payment schedule for home equity lines requires interest only payments for the first ten years of the lines. Generally at the end of ten years, the line may be frozen to future advances, and principal plus interest payments are collected over a fifteen -year amortization schedule or, for eligible borrowers meeting certain requirements, the line availability may be extended for an additional interest only period. Consumer loans: Consumer loans primarily consist of secured or unsecured personal loans, energy efficiency financing programs in conjunction with Massachusetts public utilities, and overdraft protection lines on checking accounts extended to individual customers. The aggregate amounts of overdrawn deposit accounts are reclassified as loan balances. Related Party Loans Certain of the Company's directors, officers, principal stockholders and their associates are credit customers of the Company in the ordinary course of business. In addition, certain directors are also directors, trustees, officers or stockholders of corporations and non-profit entities or members of partnerships that are customers of the Bank and that enter into loan and other transactions with the Bank in the ordinary course of business. All loans and commitments included in such transactions are on such terms, including interest rates, repayment terms and collateral, as those prevailing at the time for comparable transactions with persons who are not affiliated with the Bank and do not involve more than a normal risk of collectability or present other features unfavorable to the Bank. As of December 31, 2016 and 2015 , the outstanding loan balances to directors, officers, principal stockholders and their associates were $18.6 million and $17.5 million , respectively. All loans to these related parties were current and accruing at those dates. Unadvanced portions of lines of credit available to these individuals were $9.8 million and $10.6 million , as of December 31, 2016 and 2015 , respectively. During 2016 , new loans and net increases in loan balances or lines of credit under existing commitments of $2.3 million were made and principal paydowns of $1.9 million were received. During 2015 , new loans and net increases in loan balances or lines of credit under existing commitments of $6.7 million were made and principal paydowns of $3.3 million were received. Loans Serviced for Others At December 31, 2016 and 2015 , the Company was servicing residential mortgage loans owned by investors amounting to $18.7 million and $18.5 million , respectively. Additionally, the Company was servicing commercial loans participated out to various other institutions amounting to $62.3 million and $52.7 million at December 31, 2016 and 2015 , respectively. See the discussion above for further information regarding commercial participations. Loans Serving as Collateral Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity for the periods indicated are summarized below: (Dollars in thousands) December 31, 2016 December 31, 2015 Commercial real estate $ 247,664 $ 281,802 Residential mortgages 170,247 118,855 Home equity 12,340 13,972 Total loans pledged to FHLB $ 430,251 $ 414,629 Tax-exempt Interest Tax-exempt interest earned on qualified commercial loans was $2.1 million for the year ended December 31, 2016 and $1.6 million and $1.4 million for the years ended December 31, 2015 and 2014 , respectively. Average tax-exempt loan balances were $63.9 million and $50.9 million for the years ended December 31, 2016 and 2015 , respectively. |
Allowance For Loan Losses
Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Allowance for Loan Loss | Allowance for Loan Losses Inherent in the lending process is the risk of loss due to customer non-payment, or "credit risk." The Company seeks to lessen its credit risk exposure by managing its loan portfolio to avoid concentration by industry, relationship size and source of repayment, and 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. 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, adversely classified and restructured loans, net charge-offs, the growth and composition of the loan portfolio, expansion in geographic market area, the experience level of lenders and any changes in underwriting criteria, and the strength of the local and national economy, among other factors. Allowance for probable loan losses methodology 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 could have an impact on the credit quality of the portfolio. Specific Reserves for loans individually evaluated for impairment When a loan is deemed to be impaired, management estimates the credit loss by comparing the loan's carrying value against either 1) the present value of the expected future cash flows discounted at the loan's effective interest rate; 2) the loan's observable market price; or 3) the expected realizable fair value of the collateral, in the case of collateral dependent loans. A specific allowance is assigned to the impaired loan for the amount of estimated credit loss. Impaired loans are charged off, in whole or in part, when management believes that the recorded investment in the loan is uncollectible. General Reserves for loans collectively evaluated for impairment In assessing the general reserves management has segmented the portfolio for groups of loans with similar risk characteristics, by I. Non-classified loans, and II. Regulatory problem-asset segments. These groups are further subdivided by loan category or internal risk rating, respectively. The general loss allocation factors take into account the quantitative historic loss experience, qualitative or environmental factors such as those identified above, as well as regulatory guidance and industry data. I. Non-classified loans by credit type: Management has established the modified historic loss factor for non-classified loan segments by first calculating net charge-offs over a period of time, divided by the average loan balance over that same period. The time period utilized equates to the estimated loss emergence period for each loan segment. This average period may be changed from time to time to be reflective of the most appropriate corresponding conditions (market, economic, etc.). These historic loss factors are then adjusted up or down based on management’s assessment of current qualitative factors that are likely to cause estimated credit losses as of the evaluation date to differ from the segment’s historical loss experience. These key qualitative factors include the following broad categories: • Several key areas of expansion and growth, including geographic market, changes in lending staff, new or expanded product lines, changes in composition and portfolio concentrations; • Changes in the credit trend and current volume and severity of past due loans, non-accrual loans and the severity of adversely classified and impaired loans compared to historical levels; and • The current economic environment and conditions (local, state and national) and their general implications to each loan category. Management weighs the current effect of each of these areas on each particular non-classified loan segment in determining the allowance allocation factors. Management must exercise significant judgment when evaluating the effect of these qualitative factors on the amount of the allowance for loan losses on the non-classified segments because data may not be reasonably available or directly applicable to determine the precise impact of a factor on the collectability of the loan portfolio as of the evaluation date. The methodology contemplates a range of acceptable levels for these factors due to the subjective nature of the factors and the qualitative considerations related to the inherent credit risk in the portfolio. II. Regulatory problem-assets segments by credit rating: For determining the reserve percentages for problem-loans, management has segmented the portfolio following the regulatory problem-asset segments by risk rating: Criticized; Substandard; Doubtful; or Loss, after excluding loans that are individually evaluated for impairment. The modified historic loss factor for problem loan segments was determined by first tracking a sampling of these loans over a period of time, to determine the ultimate resolution. Those balances resulting in charge-offs were calculated as a percentage of the segment's loan balance and an average was calculated over that same period. This average period may be changed from time to time to be reflective of the most appropriate corresponding conditions (market, economic, etc.). These historic loss factors are then adjusted up or down based on management’s assessment of current qualitative factors that are likely to cause estimated credit losses as of the evaluation date to differ from the segment’s historical loss experience. Management also utilizes regulatory guidance and industry data in relation to the Company's own portfolio statistics as a basis for assessing the reasonableness of the allocation factors for each class of regulatory problem-assets. Management recognizes that additional issues may also impact the estimate of credit losses to some degree. From time to time management will re-evaluate the qualitative factors, regulatory guidance, and industry data in use in order to consider the impact of other issues which, based on changing circumstances, may become more significant in the future. The balances of loans, as of December 31, 2016 , by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 14,261 $ 1,023,821 $ 1,038,082 Commercial and industrial 13,372 477,427 490,799 Commercial construction 3,364 210,083 213,447 Residential 289 180,271 180,560 Home equity 509 90,556 91,065 Consumer 1 10,844 10,845 Total gross loans $ 31,796 $ 1,993,002 $ 2,024,798 See the section titled "Impaired Loans" below, for information regarding the changes in impaired loans balances at December 31, 2016 compared to the prior year. The balances of loans as of December 31, 2015 by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 12,287 $ 924,634 $ 936,921 Commercial and industrial 7,810 450,743 458,553 Commercial construction 3,032 199,961 202,993 Residential 366 168,822 169,188 Home equity 169 83,204 83,373 Consumer 24 10,723 10,747 Total loans $ 23,688 $ 1,838,087 $ 1,861,775 Credit Risk Management The level of adversely classified loans, delinquent and non-performing assets is largely a function of economic conditions, the overall banking environment, the Company's underwriting and credit risk management standards. The Company’s commercial lending focus may entail significant additional risks compared to long term financing on existing, owner-occupied residential real estate. The Company endeavors to minimize this risk through sound underwriting practices and the risk management function. The credit risk management function focuses on a wide variety of factors, including, among others, current and expected economic conditions, the real estate market, the financial condition of borrowers, the ability of borrowers to adapt to changing conditions or circumstances affecting their business and the continuity of borrowers’ management teams. Early detection of credit issues is critical to minimize credit losses. Accordingly, management regularly monitors these factors, among others, through ongoing credit reviews by the Credit Department, an external loan review service, reviews by members of senior management as well as reviews by the Loan Committee and the Board. This review includes the assessment of internal credit quality indicators such as the risk classification of individual loans, individual review of problem assets, 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. These credit quality indicators are discussed below. Credit Quality Indicators 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, through a satisfactory range of "minimal," "moderate," "better than average," and "average" risk, to the regulatory problem-asset classifications of "criticized," for loans that may need additional monitoring, and the more severe adverse classifications of "substandard," "doubtful," and "loss" based on criteria established under banking regulations. Loans classified as substandard include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. These loans are inadequately protected by the sound net worth and paying capacity of the borrower; repayment has become increasingly reliant on collateral liquidation or reliance on guaranties; credit weaknesses are well-defined; borrower cash flow is insufficient to meet the required debt service specified in the loan terms and to meet other obligations, such as trade debt and tax payments. Loans classified as doubtful have all the weaknesses inherent in a substandard rated loan with the added characteristic that the weaknesses make collection or full payment from liquidation, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until more exact status may be determined. Loans classified as loss are generally considered uncollectible at present, although long term recovery of part or all of loan proceeds may be possible. These “loss” loans would require a specific loss reserve or charge-off. Adversely classified loans may be accruing or in non-accrual status and may be additionally designated as impaired or restructured, or some combination thereof. Loans which are evaluated to be of weaker credit quality are reviewed on a more frequent basis by management. The following tables present the Company's credit risk profile for each class of loan in its portfolio by internally assigned adverse risk rating category as of the periods indicated. December 31, 2016 (Dollars in thousands) Adversely Classified Not Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 16,003 $ — $ — $ 1,022,079 $ 1,038,082 Commercial and industrial 12,770 99 2 477,928 490,799 Commercial construction 3,364 — — 210,083 213,447 Residential 1,414 — — 179,146 180,560 Home equity 666 — — 90,399 91,065 Consumer 30 — — 10,815 10,845 Total gross loans $ 34,247 $ 99 $ 2 $ 1,990,450 $ 2,024,798 December 31, 2015 (Dollars in thousands) Adversely Classified Not Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 12,487 $ — $ — $ 924,434 $ 936,921 Commercial and industrial 8,670 — 3 449,880 458,553 Commercial construction 1,776 — — 201,217 202,993 Residential 1,278 — — 167,910 169,188 Home equity 503 — 5 82,865 83,373 Consumer 38 11 — 10,698 10,747 Total gross loans $ 24,752 $ 11 $ 8 $ 1,837,004 $ 1,861,775 Total adversely classified loans amounted to 1.70% of total loans at December 31, 2016 , as compared to 1.33% at December 31, 2015 . At December 31, 2016 , as compared to December 31, 2015 , adversely classified balances increased $9.6 million , primarily due to several larger credit downgrades, partially offset by payoffs, credit upgrades and principal payments during the year. In the current year, the credit ratings of 3 larger commercial relationships with aggregate net carrying value of approximately $14.9 million were downgraded to adverse risk-ratings, based on a review of their individual business circumstances, including 2 commercial relationship additionally designated as TDR/impaired. Although some weaknesses were identified necessitating the downgrades, the borrowers continue to make payments per the loan agreements and the loans remain in accruing status. Past Due and Non-Accrual Loans Loans on which the accrual of interest has been discontinued are designated as non-accrual and the classified portions 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. Interest payments received on loans in a non-accrual status are generally applied to principal on the books of the Company. When a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest accruals are resumed on such loans only when payments are brought current and have remained current for a period of 180 days and when, in the judgment of management, the collectability of both principal and interest is reasonably assured. Additionally, deposit accounts overdrawn for 90 or more days are included in the consumer non-accrual numbers below. The following table presents an age analysis of past due loans as of December 31, 2016 . (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 5,993 $ 923 $ 1,399 $ 8,315 $ 1,029,767 $ 1,038,082 $ 4,876 Commercial and industrial 267 4 1,544 1,815 488,984 490,799 3,174 Commercial construction — — — — 213,447 213,447 519 Residential 648 — 99 747 179,813 180,560 289 Home equity 270 — 269 539 90,526 91,065 616 Consumer 94 13 11 118 10,727 10,845 11 Total gross loans $ 7,272 $ 940 $ 3,322 $ 11,534 $ 2,013,264 $ 2,024,798 $ 9,485 The following table presents an age analysis of past due loans as of December 31, 2015 . (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 1,641 $ 1,532 $ 3,256 $ 6,429 $ 930,492 $ 936,921 $ 8,506 Commercial and industrial 1,332 693 2,125 4,150 454,403 458,553 4,323 Commercial construction 581 — 7 588 202,405 202,993 335 Residential 354 280 57 691 168,497 169,188 366 Home equity 634 9 73 716 82,657 83,373 288 Consumer 36 15 7 58 10,689 10,747 27 Total gross loans $ 4,578 $ 2,529 $ 5,525 $ 12,632 $ 1,849,143 $ 1,861,775 $ 13,845 The past due figures above may include those loans that have also been designated as non-accrual despite their payment due status. At December 31, 2016 and December 31, 2015 , all loans 90 or more days past due were carried as non-accruing. Non-accrual loans which were not adversely classified amounted to $220 thousand at December 31, 2016 and $402 thousand at December 31, 2015 . 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 and are discussed further below. The ratio of non-accrual loans to total loans amounted to 0.47% and 0.74% at December 31, 2016 and December 31, 2015 , respectively. Non-accrual loan balances decreased due primarily to several larger commercial loan payoffs principal paydowns and upgrades and growth in the portfolio, partially offset by additional loans added to non-accrual status during the year. 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. At December 31, 2016 , additional funding commitments for loans on non-accrual status totaled $100 thousand . The reduction in interest income for the years ended December 31, associated with non-accruing loans is summarized as follows: (Dollars in thousands) 2016 2015 2014 Income in accordance with original loan terms $ 1,585 $ 1,052 $ 1,007 Less income recognized 722 426 323 Reduction in interest income $ 863 $ 626 $ 684 Impaired Loans Impaired loans are individually significant loans for which management considers it probable that not all amounts due (principal and interest) in accordance with original contractual terms will be collected. The majority of impaired loans are included within the non-accrual balances; however, not every loan in non-accrual status has been designated as impaired. Impaired loans include loans that have been modified in a troubled debt restructuring (or "TDR", see below). Impaired loans exclude large groups of smaller-balance homogeneous loans, such as residential mortgage loans and consumer loans, which are collectively evaluated for impairment, and loans that are measured at fair value, unless the loan is amended in a TDR. Management does not set any minimum delay of payments as a factor in reviewing for impaired classification. Management considers the individual payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. An impaired or TDR loan classification will be considered for upgrade based on the borrower's sustained performance over time and their improving financial condition. 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 reserve is assigned for the amount of the estimated probable credit loss. Refer to heading “Allowance for probable loan losses methodology” contained within this Note 4 for further discussion of management’s methodology used to estimate specific reserves for impaired loans. The carrying value of impaired loans amounted to $31.8 million and $23.7 million at December 31, 2016 and December 31, 2015 , respectively. Total accruing impaired loans amounted to $22.4 million and $10.1 million at December 31, 2016 and December 31, 2015 , respectively, while non-accrual impaired loans amounted to $9.4 million and $13.6 million as of December 31, 2016 and December 31, 2015 , respectively. During the current year, among other downgrades to impaired status, the credit rating of 2 large commercial relationships, each having both commercial and industrial and commercial real estate components, with net carrying value of approximately $10.5 million , were downgraded to adverse risk-ratings and also designated as accruing TDR, based on a review of individual business circumstances. These downgrades were partially offset by principal pay-downs, credit upgrades, and charge-offs during the period. The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated as of the dates indicated: Balance at December 31, 2016 (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 $ 16,010 $ 14,261 $ 12,444 $ 1,817 $ 370 Commercial and industrial 14,291 13,372 9,366 4,006 2,222 Commercial construction 3,408 3,364 3,051 313 28 Residential 388 289 289 — — Home equity 665 509 509 — — Consumer 2 1 — 1 1 Total $ 34,764 $ 31,796 $ 25,659 $ 6,137 $ 2,621 Balance at December 31, 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 $ 14,903 $ 12,287 $ 11,734 $ 553 $ 186 Commercial and industrial 9,816 7,810 5,253 2,557 1,078 Commercial construction 3,147 3,032 1,583 1,449 499 Residential 453 366 366 — — Home equity 308 169 164 5 5 Consumer 25 24 — 24 24 Total $ 28,652 $ 23,688 $ 19,100 $ 4,588 $ 1,792 The following table presents the average recorded investment in impaired loans and the related interest recognized during the year ends indicated. December 31, 2016 December 31, 2015 December 31, 2014 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 12,988 $ 332 $ 13,827 $ 196 $ 14,135 $ 223 Commercial and industrial 9,790 223 9,372 97 10,682 156 Commercial construction 3,137 150 2,202 83 3,158 105 Residential 301 — 449 — 1,082 3 Home equity 356 (4 ) 174 1 208 — Consumer 14 — 45 — 27 2 Total $ 26,586 $ 701 $ 26,069 $ 377 $ 29,292 $ 489 All payments received on impaired loans in non-accrual status are applied to principal. Interest income that was not recognized on loans that were deemed impaired as of December 31, 2016 , 2015 and 2014 , amounted to $858 thousand , $688 thousand , and $647 thousand , respectively. At December 31, 2016 , additional funding commitments for impaired loans totaled $602 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, extension of additional credit based on receipt of adequate collateral, 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 reviewed and evaluated and a specific reserve is assigned for the amount of the estimated probable credit loss. Total TDR loans, included in the impaired loan figures above as of December 31, 2016 and December 31, 2015 , were $27.0 million and $17.1 million , respectively. The increase in TDR loans was primarily due to the impaired commercial relationships noted above, with a net carrying value of approximately $10.5 million , also being designated as accruing TDR loans due to additional funding outlays totaling $1.8 million after the pledge of additional collateral by the borrower. TDR loans on accrual status amounted to $22.4 million and $10.1 million at December 31, 2016 and December 31, 2015 , respectively. TDR loans included in non-performing loans amounted to $4.6 million and $7.1 million at December 31, 2016 and December 31, 2015 , 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 individual financial circumstances and future prospects of the borrower. For TDR's entered into during 2016 the number of modification consisted of: extension of additional credit based on receipt of adequate collateral ( 8 ); a temporary payment reduction and payment re-amortization of remaining principal over extended term ( 4 ); and temporary interest only payment plans ( 7 ). At December 31, 2016 , additional funding commitments for TDR loans totaled $502 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. The following tables present certain information regarding loan modifications classified as troubled debt restructures. Troubled debt restructure agreements entered into during the year ended December 31, 2016 are detailed below. (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 8 $ 6,212 $ 7,534 Commercial and industrial 11 5,231 5,244 Commercial construction — — — Residential — — — Home equity — — — Consumer — — — Total 19 $ 11,443 $ 12,778 Payment defaults during the year ended December 31, 2016 , on loans modified as troubled debt restructurings within the preceding twelve months are detailed below. (Dollars in thousands) Number of TDRs that defaulted Post-modification outstanding recorded investment Commercial real estate 1 $ 148 Commercial and industrial — — Commercial construction — — Residential — — Home equity — — Consumer — — Total 1 $ 148 There were no subsequent charge-offs associated with TDRs modified during 2016 . At December 31, 2016 , specific reserves allocated to the TDRs entered into during the 2016 amounted to $1.4 million , as management considers it likely the unreserved principal will ultimately be collected. Interest payments received on non-accruing 2016 TDR loans which were applied to principal and not recognized as interest income amounted to $3 thousand . Troubled debt restructure agreements entered into during the year ended December 31, 2015 are detailed below. (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 4 $ 269 $ 371 Commercial and industrial 8 1,786 1,600 Commercial construction 2 1,339 1,339 Residential — — — Home equity — — — Consumer 1 4 3 Total 15 $ 3,398 $ 3,313 Payment defaults, during the year ended December 31, 2015 , on loans modified as troubled debt restructurings within the preceding twelve months are detailed below. (Dollars in thousands) Number of TDRs that defaulted Post-modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial 3 759 Commercial construction — — Residential — — Home equity — — Consumer — — Total 3 $ 759 There were no charge-offs associated with TDRs noted in the table above. At December 31, 2015 , specific reserves allocated to the TDRs entered into during 2015 amounted to $201 thousand as management considered it likely that the unreserved principal would ultimately be collected. Interest payments received on non-accruing 2015 TDR loans which were applied to principal and not recognized as interest income amounted to $18 thousand . Other Real Estate Owned The Company did not have any OREO at December 31, 2016 or December 31, 2015 , and there was no OREO activity during 2016 . During the year ended December 31, 2015 , the Company recorded $154 thousand of net gains on OREO sales; there were no subsequent write-downs of OREO during that period. There were no gains on OREO sales and no subsequent write downs during 2014 . At December 31, 2016 , the Company had consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdictions totaling $200 thousand compared with none at December 31, 2015 . 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 $31.3 million at December 31, 2016 compared to $29.0 million at December 31, 2015 . Provisions made to the allowance for loan losses amounted to $3.0 million and $3.3 million for the years ended December 31, 2016 and 2015 , respectively. The decrease in the provision in the current periods was due primarily to a lower level of loan growth with generally improving credit quality metrics compared to the prior year. Loan growth for the year ended December 31, 2016 was $162.8 million compared to $187.4 million during the year ended December 31, 2015 . Total non-performing loans as a percentage of total loans declined to 0.47% at December 31, 2016 , compared to 0.74% at December 31, 2015 . The Company recorded net charge-offs of $659 thousand for the year ended December 31, 2016 , compared to net charge-offs of $1.4 million for the year ended December 31, 2015 . The balance of the allowance for loan losses allocated to impaired and classified loans amounted to $4.4 million at December 31, 2016 , compared to $3.3 million at December 31, 2015 . During the current year, management downgraded the credit rating of 4 larger commercial relationships to "criticized" or "adverse" risk ratings, including 2 relationships additionally designated as TDR/impaired based on a review of their individual business circumstances, requiring higher levels of reserves in the current period. Although some weaknesses were identified necessitating the downgrades, the borrowers continue to make payments per the loan agreements and the loans remain in accruing status. The allowance for loan losses to total loans ratio was 1.55% at December 31, 2016 , compared to 1.56% at December 31, 2015 . In general, the credit quality of the loan portfolio is improving, however, individual loan downgrades, such as those noted above, which will occur due to individual business circumstances, have contributed to a more gradual decline in the ratio. Management believes that the loan portfolio continued to experience a level of modest credit stabilization during the 2016 period. However, management believes that local and regional commercial markets, despite low unemployment results, are being negatively impacted by economic conditions and results such as low GDP growth, marginal real income growth, risk from continued low interest rates, and a historically long dated expansion, which in turn will have a lagging impact on the general credit profile of the portfolio and individual commercial relationships. Management continues to closely monitor the non-performing assets, charge-off |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment at December 31, are summarized as follows: (Dollars in thousands) 2016 2015 Land $ 5,201 $ 4,614 Bank premises and leasehold improvements 37,390 33,597 Computer software and equipment 9,250 9,014 Furniture, fixtures and equipment 18,243 16,649 Total premises and equipment, before accumulated depreciation 70,084 63,874 Less accumulated depreciation (36,544 ) (33,321 ) Total premises and equipment, net of accumulated depreciation $ 33,540 $ 30,553 Total depreciation expense related to premises and equipment amounted to $4.4 million , $4.3 million and $4.2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Total rent expense for the years ended December 31, 2016 , 2015 and 2014 amounted to $1.3 million , $1.2 million and $1.1 million , respectively. The Company's leased facilities are contracted under various non-cancelable operating leases, most of which provide options to extend lease periods and periodic rent adjustments. Several leases provide the Company the right of first refusal should the property be offered for sale or purchase options at specified periods mutually agreeable to the parties. In February 2017, the company purchased, at fair market value, a property which was a previously leased branch location. At December 31, 2016 , minimum lease payments for these operating leases were as follows: (Dollars in thousands) Payable in: 2017 $ 1,702 2018 1,452 2019 936 2020 716 2021 717 Thereafter 5,455 Total minimum lease payments $ 10,978 The Company currently collects rent through leases for a small portion of the overall square-footage within its Lowell, MA campus headquarters. Rental income was $159 thousand for the year ended December 31, 2016 and $153 thousand for both the years ended December 31, 2015 and December 31, 2014 . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits at December 31, are summarized as follows: (Dollars in thousands) 2016 2015 Non-interest bearing demand deposits $ 646,115 $ 570,589 Interest bearing checking 372,696 313,674 Savings 178,637 167,304 Money market 844,216 692,114 Certificates of deposit $250,000 or less 125,580 129,993 Certificates of deposit more than $250,000 42,315 37,704 Total non-brokered deposits 2,209,559 1,911,378 Brokered deposits (1) 59,362 106,770 Total deposits $ 2,268,921 $ 2,018,148 (1) Primarily brokered CDs $250,000 and under. Total non-brokered deposits include reciprocal money market deposits and CDs received from participating banks in nationwide networks as a result of our customers electing to participate in programs to obtain full FDIC insurance. Essentially, the equivalent of the original deposit comes back to the Company as non-brokered deposits within the appropriate category under total deposits on the consolidated balance sheet. The Company's customers' balances in these reciprocal products were $281.6 million and $206.5 million at December 31, 2016 and December 31, 2015 , respectively. The aggregate amount of overdrawn deposits that have been reclassified as loan balances were $558 thousand and $407 thousand at December 31, 2016 and 2015 , respectively. The following table shows the scheduled maturities of certificates of deposit (including brokered deposits with weighted average remaining lives of approximately 1.5 years and 1.4 years as of December 31, 2016 and 2015 , respectively): (Dollars in thousands) December 31, 2016 December 31, 2015 Due in less than twelve months $ 136,695 $ 176,792 Due in over one year through two years 38,344 37,729 Due in over two years through three years 32,652 23,429 Due in over three years through four years 8,525 26,501 Due in over four years through five years 5,721 5,983 Due in over five years 5,320 4,033 Total certificates of deposit $ 227,257 $ 274,467 |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Borrowed Funds and Subordinated Debt | Borrowed Funds and Subordinated Debt Borrowed funds and subordinated debt outstanding at December 31, are summarized as follows: 2016 2015 2014 (Dollars in thousands) Amount Average Rate Amount Average Rate Amount Average Rate FHLB borrowings $ 10,671 0.80 % $ 40,671 0.51 % $ 58,900 0.30 % Other borrowings — — % 13,000 0.60 % — — % Total borrowed funds $ 10,671 0.80 % $ 53,671 0.53 % $ 58,900 0.30 % Subordinated debt 14,834 6.26 % 14,822 6.16 % 10,825 10.88 % Total borrowed funds and subordinated debt $ 25,505 3.98 % $ 68,493 1.75 % $ 69,725 1.94 % FHLB borrowings at December 31, 2016 consisted of $10.0 million in overnight borrowings, with a weighted average rate of 0.80% , and term borrowings of $671 thousand , with a weighted average rate of 0.87% , which are scheduled to mature within the next year. These term borrowings, with original maturities of one year , are linked to certain outstanding commercial loans under various community investment programs of the FHLB. Maximum FHLB and other borrowings outstanding at any month end during 2016 , 2015 , and 2014 were $43.7 million , $53.7 million , and $58.9 million , respectively. The following table summarizes the average balance and average cost of borrowed funds for the years indicated. Year ended December 31, 2016 2015 2014 (Dollars in thousands) Average Balance Average Cost Average Balance Average Cost Average Balance Average Cost FHLB advances $ 14,551 0.55 % $ 10,731 0.36 % $ 12,085 0.31 % Other borrowings 107 0.61 % 36 0.61 % 28 0.56 % Total borrowed funds $ 14,658 0.55 % $ 10,767 0.36 % $ 12,113 0.31 % The Company’s primary borrowing source is the FHLB, but the Company may choose to borrow from other established business partners. “Other borrowings” represents overnight advances from the FRB or federal funds purchased from correspondent banks. As a member of the FHLB, the Bank has the potential capacity to borrow an amount up to the value of its discounted qualified collateral. Borrowings from the FHLB are secured by certain securities from the Company’s investment portfolio not otherwise pledged and certain residential and commercial real estate loans. At December 31, 2016 , based on qualifying collateral less outstanding advances, the Bank had the capacity to borrow additional funds from the FHLB of up to approximately $487 million . In addition, based on qualifying collateral, the Bank had the capacity to borrow funds from the FRB Discount Window up to approximately $115 million . The Bank also has pre-approved borrowing arrangements with large correspondent banks in order to provide overnight and short-term borrowing capacity. See Note 2, "Investments," and Note 3, "Loans" above to these consolidated financial statements for further information regarding securities and loans pledged for borrowed funds. The Company also carried subordinated debt of $14.8 million at both December 31, 2016 and December 31, 2015 , which 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 debt issuance costs were $190 thousand and have been netted against the subordinated debt on the consolidated balance sheet in accordance with recent accounting guidance which the Company adopted in the first quarter of 2015. These costs are being amortized to interest expense 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 turn allowed the Trust to redeem in full the trust preferred securities. The Company dissolved the Trust in April 2015. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivatives and Hedging Activities Derivatives and Hedging Activities Interest rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. At December 31, 2016 and 2015 , the estimated fair values of these derivative instruments were considered to be immaterial. The Company may use interest-rate contract swaps as part of its interest-rate risk management strategy. Interest-rate swap agreements are entered into as hedges against future interest-rate fluctuations on specifically identified assets or liabilities. The Company did not have derivative fair value hedges or derivative cash flow hedges at December 31, 2016 and 2015 . Derivatives not designated as hedges, such as Back-to-Back Swaps, as detailed in Note 1, are not speculative but rather, result from a service the Company provides to certain customers. The Company had four interest-rate swaps with an aggregate notional amount of $26.7 million at December 31, 2016 compared to two interest-rate swaps with an aggregate notional amount of $10.1 million at December 31, 2015 . Asset derivatives and liability derivatives are included in prepaid expenses and other assets and accrued expenses and other liabilities on the consolidated balance sheets, respectively. The table below presents the fair value and classification of the Company’s derivative financial instruments for the periods presented: As of December 31, 2016 As of December 31, 2015 (Dollars in thousands) Derivatives Assets Derivatives Liabilities Derivatives Assets Derivatives Liabilities Back-to-Back Swaps $ 610 $ 610 $ 16 $ 16 There was no net gain or loss recognized in income on derivatives during the years ended December 31, 2016 or December 31, 2015 . By using derivative financial instruments, the Company exposes itself to counterparty credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that management believes to be creditworthy. As the swaps are subject to master netting agreements, the Company had limited exposure relating to interest rate swaps with institutional counterparties at December 31, 2016 . The Company had unsecured counterparty credit risk exposure of $610 thousand on interest rate swaps at December 31, 2016 . The Counterparty was rated A / A2, respectively, by S&P and Moody’s at December 31, 2016. Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. See the table below for amounts held at each period presented. The table below also presents the Company's asset and liability derivative positions and the potential effect of netting arrangements on its financial position, as of the periods presented. As of December 31, 2016 Gross Amounts of Recognized Asset/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross amounts not offset in the Statement of Financial Position (Dollars in thousands) Financial Instruments Cash collateral (Received)/Posted Net Amount Asset Derivatives Back-to-Back Swaps $ 610 — $ 610 — — $ 610 Liability Derivatives Back-to-Back Swaps $ 610 — $ 610 — — $ 610 As of December 31, 2015 Gross Amounts of Recognized Asset/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross amounts not offset in the Statement of Financial Position (Dollars in thousands) Financial Instruments Cash collateral (Received)/Posted Net Amount Asset Derivatives Back-to-Back Swaps $ 16 — $ 16 — — $ 16 Liability Derivatives Back-to-Back Swaps $ 16 — $ 16 — — $ 16 The Company has agreements with certain derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness. |
Committments, Contingencies and
Committments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | (9) Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, standby letters of credit, and unadvanced portions of loans and lines of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in the particular classes of financial instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments with off-balance sheet credit risk at December 31, 2016 and 2015 are as follows: (Dollars in thousands) 2016 2015 Commitments to originate loans $ 37,753 $ 48,641 Commitments to originate residential mortgages loans for sale 1,946 1,516 Commitments to sell residential mortgage loans 3,115 3,225 Standby letters of credit 21,497 22,712 Unadvanced portions of commercial real estate loans 56,952 13,128 Unadvanced portions of commercial loans and lines 399,833 337,970 Unadvanced portions of construction loans (commercial & residential) 151,757 138,162 Unadvanced portions of home equity lines 82,884 73,397 Unadvanced portions of consumer loans 3,043 2,999 Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. The Company originates residential mortgage loans intended for sale under agreements to sell such loans on an individual loan basis, and may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan, and are subject to an early payment default period covering the first four payments for certain loan sales. Standby letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance by a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. If the letter of credit is drawn upon, a loan is created for the customer, generally a commercial loan, with the same criteria associated with similar commercial loans. Unadvanced portions of loans and lines of credit represent credit extended to customers but not yet drawn upon, and are secured or guaranteed under preexisting loan agreements and credit evaluations having taken into consideration the full commitment amount. The Company also participates in loans originated by third party banks, where the originating bank utilizes a back-to-back interest rate swap structure; however, the Company is not a party to the swap agreements. Under the terms of the loan participations, the Company has accepted contingent liabilities that would only occur if the swaps were terminated early and there were outstanding losses not covered by the underlying borrowers and the borrowers' pledged collateral. If applicable, the Company’s swap loss exposure would be equal to the percentage of the Company’s participation in the underlying loan applied to the originating bank's swap loss. At December 31, 2016 , the Company had two such participation loans and management considers the risk of material swap loss exposure to be unlikely based on the swap mark-to-market and the borrower's underlying collateral and financial strength. At December 31, 2015 , the Company did not have any of these agreements. The Bank is required by the FRB to maintain in reserves certain amounts of vault cash and/or deposits with the FRB. The average daily reserve requirement included in “Cash and Due from Banks” was approximately $6.8 million and $7.4 million , based on the two week computation periods encompassing December 31, 2016 and 2015 , respectively. There are no material pending legal proceedings to which the Company or its subsidiaries are a party or to which any of its property is subject, other than ordinary and routine litigation incidental to the business of the Company. Management does not believe resolution of any present litigation will have a material adverse effect on the financial condition or results of operations of the Company. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company’s authorized capital is divided into common stock and preferred stock. The Company is authorized to issue 20,000,000 shares of common stock and 1,000,000 shares of preferred stock. Holders of common stock are entitled to one vote per share, and are entitled to receive dividends if and when declared by the Board. Dividend and liquidation rights of the common stock may be subject to the rights of any outstanding preferred stock. The Company has a shareholders rights plan. Under the plan each share of common stock includes a right to purchase under certain circumstances one one-hundredth of a share of the Company’s Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of $52.00 per one one-hundredth of a preferred share, subject to adjustment, or, in certain circumstances, to receive cash, property, shares of common stock or other securities of the Company. The rights are not presently exercisable and remain attached to the shares of common stock until the occurrence of certain triggering events that would ordinarily be associated with an unsolicited acquisition or attempted acquisition of 10% or more of the Company’s outstanding shares of common stock. The rights will expire, unless earlier redeemed, exchanged, or otherwise rescinded by the Company, on January 13, 2018 . The rights have no voting or dividend privileges, and unless and until they become exercisable, have no dilutive effect on the earnings of the Company. The Company issues restricted stock awards that upon vesting, may be net share-settled to cover payment for employee tax obligations, resulting in shares of common stock being reacquired by the Company. See Note 12, “Stock-Based Compensation Plans,” below for further information about stock-based compensation issued by the Company and net share-settlement. In addition to shares issued to employees and directors (See Note 12, “Stock-Based Compensation Plans”) and shares issued through equity offerings and the Company's dividend reinvestment and direct stock purchase plan (“DRSPP”), the Company also issues shares in lieu of cash to certain individuals for service on regional advisory councils. These shares vest immediately and the cost, which is deemed to be immaterial, is expensed in the period in which the services are rendered and is based on the market price on the date of grant. Capital Adequacy Requirements Capital planning by the Company and the Bank considers current needs and anticipated future growth. The primary sources of capital for the Company and the Bank have been common stock issuances and proceeds from the issuance of subordinated debt. Ongoing sources of capital include the retention of earnings, less dividends paid, since the Bank commenced operations, proceeds from the exercise of employee stock options and proceeds from purchases of shares pursuant to the Company’s DRSPP. The Company believes its current capital is adequate to support ongoing operations. In the second quarter of 2016, the Company completed a combined shareholder subscription rights offering and supplemental community offering, at an offering price of $21.50 per share, under its $40 million shelf registration statement (Reg No. 333-190017). The Company issued 930,232 shares of common stock and received gross proceeds of $20.0 million ( $19.7 million , net of offering costs). The Company contributed the net proceeds to the Bank to support future asset growth and for general corporate purposes. The Company's shelf registration of common stock, rights or preferred stock that was filed with the Securities and Exchange Commission expired in September 2016. Effective January 1, 2015, with a phase in period that extends to January 2019, the Company is subject to increased capital ratios, changes in the capital ratio calculations and the methodology used to calculate such ratios as a result of regulation adopted by the federal bank regulatory agencies known as the “Basel III Rules.” The Company began phase in of the Basel III Rules in 2015. Management believes, as of December 31, 2016 , that the Company and the Bank meet all capital adequacy requirements to which they were subject. As of December 31, 2016 and December 31, 2015 , the Company met the definition of "well capitalized" under the applicable Federal Reserve Board regulations and the Bank qualified as "well capitalized" under the prompt corrective action regulations of Basel III and the FDIC. The current regulatory requirements, and the Company's and the Bank's actual capital amounts and ratios are presented as of December 31, 2016 and December 31, 2015 in the table below. Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 The Company Total Capital (to risk weighted assets) $ 252,552 11.79 % $ 171,337 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 209,887 9.80 % 128,503 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 209,887 8.34 % 100,628 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 209,887 9.80 % 96,377 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 250,893 11.71 % $ 171,332 8.00 % $ 214,166 10.00 % Tier 1 Capital (to risk weighted assets) 223,062 10.42 % 128,499 6.00 % 171,332 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 223,062 8.87 % 100,627 4.00 % 125,784 5.00 % Common equity tier 1 capital (to risk-weighted assets) 223,062 10.42 % 96,374 4.50 % 139,208 6.50 % Actual Minimum Capital for Capital Adequacy Purposes Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 The Company Total Capital (to risk weighted assets) $ 212,871 10.70 % $ 159,198 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 172,397 8.66 % 119,398 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 172,397 7.73 % 89,173 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 172,397 8.66 % 89,549 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 209,670 10.54 % $ 159,189 8.00 % $ 198,987 10.00 % Tier 1 Capital (to risk weighted assets) 184,019 9.25 % 119,392 6.00 % 159,189 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 184,019 8.25 % 89,172 4.00 % 111,465 5.00 % Common equity tier 1 capital (to risk-weighted assets) 184,019 9.25 % 89,544 4.50 % 129,341 6.50 % ____________________ (1) Before application of the capital conservation buffer of 0.625% as of December 31, 2016 , see discussion below. (2) For the Bank to qualify as “well capitalized," it must maintain at least the minimum ratios listed. These "well capitalized" requirements do not apply to the Company. Under the Basel III Rules, capital ratio requirements for all banking organizations have increased and include a "capital conservation buffer," of 2.50% above the regulatory minimum risk-based capital requirements shown above. Both the Company's and the Bank's actual ratios, as outlined in the table above, would exceed the Basel III risk-based capital requirement with full capital conservation buffer as of December 31, 2016 . The capital conservation buffer requirement began to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase by that amount each year until fully implemented in January 2019. If a banking organization dips into its capital conservation buffer it may be restricted in its ability to pay dividends and discretionary bonus payments to its executive officers. For further information on the Basel III requirements see the “Supervision and Regulation” contained in Item 1, "Business" in this Form 10-K. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank in 2019 after the full phase-in period are summarized in the table below: Basel III Minimum for Capital Adequacy Purposes Basel III Additional Capital Conservation Buffer Basel III "Adequate" Ratio with Capital Conservation Buffer Total Capital (to risk weighted assets) 8.00% 2.50% 10.50% Tier 1 Capital (to risk weighted assets) 6.00% 2.50% 8.50% Tier 1 Capital (to average assets) or Leverage Ratio 4.00% —% 4.00% Common equity tier 1 capital (to risk-weighted assets) 4.50% 2.50% 7.00% Failure to meet minimum capital requirements can initiate or result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material adverse effect on the Company’s financial statements. Under applicable capital adequacy requirements and the regulatory framework for prompt corrective action applicable to the Bank, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Dividends Neither the Company nor the Bank may declare or pay dividends on its stock if the effect thereof would cause stockholders’ equity to be reduced below applicable regulatory capital requirements or if such declaration and payment would otherwise violate regulatory requirements. As the principal asset of the Company, the Bank currently provides the only source of cash for the payment of dividends by the Company. Under Massachusetts law, trust companies such as the Bank may pay dividends only out of “net profits” and only to the extent that such payments will not impair the Bank’s capital stock. Any dividend payment that would exceed the total of the Bank’s net profits for the current year plus its retained net profits of the preceding two years would require the Massachusetts Division of Banks' approval. Applicable provisions of the FDIC Improvement Act also prohibits a bank from paying any dividends on its capital stock if the bank is in default on the payment of any assessment to the FDIC or if the payment of dividends would otherwise cause the bank to become undercapitalized. Any restrictions, regulatory or otherwise, on the ability of the Bank to pay dividends to the Company may restrict the ability of the Company to pay dividends to the holders of its common stock. The statutory term “net profits” essentially equates with the accounting term “net income” and is defined under the Massachusetts banking statutes to mean the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets after deducting from such total all current operating expenses, actual losses, accrued dividends on any preferred stock and all federal and state taxes. The Company previously maintained a dividend reinvestment plan (the “DRP”). In July 2014, the DRP was terminated and the Company adopted a new DRSPP. The DRSPP enables stockholders, at their discretion, to continue to elect to reinvest cash dividends paid on their shares of the Company’s common stock by purchasing additional shares of common stock from the Company at a purchase price equal to fair market value. Under the DRSPP, stockholders and new investors also have the opportunity to purchase shares of the Company's common stock without brokerage fees, subject to monthly minimums and maximums. For the year ended December 31, 2016 , the Company declared and paid $5.7 million in cash dividends. Stockholders utilized the dividend reinvestment portion of the DRSPP to purchase an aggregate of 53,516 shares of the Company's common stock totaling $1.4 million . The direct purchase component of the DRSPP was used to purchase 1,562 shares of the Company's common stock totaling $38 thousand during the year ended December 31, 2016 . In 2015 , the Company declared and paid $5.2 million in cash dividends. Stockholders utilized the dividend reinvestment portion of the DRSPP to purchase 58,529 shares of the Company’s common stock totaling $1.3 million . The direct purchase component of the DRSPP was used to purchase 6,700 shares of the Company's common stock totaling $150 thousand during the year ended December 31, 2015 . In 2014 , the Company declared paid $4.9 million in cash dividends. Stockholders utilized the dividend reinvestment portion of the DRSPP to purchase 60,586 shares of the Company’s common stock totaling $1.2 million . The direct purchase component of the DRSPP was used to purchase 2,917 shares of the Company's common stock totaling $64 thousand during the year ended December 31, 2014 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Defined Contribution Plan and Profit Sharing The Company has a 401(k) defined contribution employee benefit plan. The 401(k) plan allows eligible employees to contribute a percentage of their earnings to the plan. A portion of the employee contribution, as determined by the Compensation Committee of the Board of Directors, is matched by the Company. The Company’s current percentage match has been 60% up to the first 6% contributed by the employee. All eligible employees, at least 18 years of age and completing 1 hour of service, may participate in the 401(k) plan. Vesting for the Company’s 401(k) plan matching contribution is based on years of service with participants becoming 20% vested on January 1st of the year following their date of hire and each subsequent January 1st increasing pro-rata to 100% vesting on January1st following five years of service. Amounts not distributable to an employee following termination of employment are used to offset plan expenses and the Company's contributions. The Company’s expense for the 401(k) plan match was $938 thousand , $859 thousand and $792 thousand , respectively, for the years ended December 31, 2016 , 2015 , and 2014 . Supplemental Retirement Plan (SERP) The Company has salary continuation agreements with two of its current executive officers, and one former executive officer. These salary continuation agreements provide for a predetermined fixed-cash supplemental retirement benefit to be provided for a period of 20 years after the individual reaches a defined “benefit age.” The individuals covered under the SERP have reached the defined benefit age and are receiving payments under the plan. Additionally, the Company has not recognized service cost in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the plan. This non-qualified plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the “Accumulated Benefit Obligation,” which is equal to the present value of the benefits to be provided to the employee or any beneficiary. Because the Company’s benefit obligations provide for predetermined fixed-cash payments, the Company does not have any unrecognized costs to be included as a component of accumulated other comprehensive income. The amounts charged to expense for this plan are included in the table below. The Company anticipates accruing an additional $116 thousand to the plan for the year ending December 31, 2017 . The following table provides a reconciliation of the changes in the supplemental retirement benefit obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2016 2015 2014 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 2,654 $ 2,844 $ 2,889 Net periodic benefit cost: Interest cost 124 133 128 Actuarial loss (gain) — (47 ) 103 Net periodic benefit costs $ 124 $ 86 $ 231 Benefits paid (276 ) (276 ) (276 ) Benefit obligation at end of year $ 2,502 $ 2,654 $ 2,844 Funded status: Accrued liability as of December 31 $ (2,502 ) $ (2,654 ) $ (2,844 ) Discount rate used for benefit obligation (1) 4.75 % 4.75 % 4.50 % (1) Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. Benefits expected to be paid in each of the next five years and in the aggregate five years thereafter: (Dollars in thousands) 2017 $ 276 2018 276 2019 276 2020 276 2021 276 2022-2026 1,379 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 BOLI. See Item (k) “Bank Owned Life Insurance” in Note 1, “Summary of Significant Accounting Policies,” for further information regarding 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 future retirement benefits associated with this arrangement. The following table provides a reconciliation of the changes in the supplemental life insurance plan obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2016 2015 2014 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 1,792 $ 1,723 $ 1,576 Net periodic benefit cost: Service cost (9 ) (56 ) (38 ) Interest cost 88 86 74 Actuarial loss 24 39 111 Total net period cost $ 103 $ 69 $ 147 Benefit obligation at end of year $ 1,895 $ 1,792 $ 1,723 Funded status: Accrued liability as of December 31 $ (1,895 ) $ (1,792 ) $ (1,723 ) Discount rate used for benefit obligation (1) 4.75 % 4.75 % 4.50 % (1) Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. The amounts charged to expense for the postretirement cost of insurance for split dollar insurance coverage are included in the table above. The Company anticipates accruing an additional $80 thousand to the plan for the year ending December 31, 2017 . See Note 11, “Stock-Based Compensation Plans” below, for additional information regarding employee benefits offered in the form of stock options and stock awards. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The Company currently has two individual stock incentive plans: the 2009 plan as amended in 2015, and the 2016 plan. The plans permit the Board of Directors to grant, under various terms, both incentive and non-qualified stock options (for the purchase of newly issued shares of common stock), restricted stock, restricted stock units and stock appreciation rights to officers and other employees, directors and consultants. These plans also allow for newly issued shares of common stock to be issued without restrictions, to officers and other employees, directors and consultants. As of December 31, 2016 , 473,925 shares remain available for future grants under the 2009 and 2016 plans. Total stock-based compensation expense related to these plans 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 both included in other operating expenses, and was $2.4 million for the year ended December 31, 2016 and was $1.8 million for both the years ended December 31, 2015 and 2014 . The total tax benefit recognized related to the stock-based compensation expense was $972 thousand , $720 thousand and $700 thousand for the years ended 2016 , 2015 and 2014 , respectively. The actual tax benefit arising during the period for the tax deduction from stock-based compensation was $789 thousand , $217 thousand and $320 thousand in 2016 , 2015 , and 2014 , respectively. Stock Option Awards Options granted since 2013 vest 50% in year two and 50% in year four, on the anniversary date of the awards. Options that are outstanding and have been granted under the plans prior to 2013 generally vest ratably over four years . Vested options are only exercisable while the employee remains employed with the Bank and for a limited period thereafter. For all awards, if a grantee’s employment or other service relationship, such as service as a director, is terminated for any reason, then any stock options granted that have not vested as of the time of such termination generally must be forfeited, unless the Compensation Committee or the Board of Directors, as the case may be, waives such forfeiture requirement. Under the terms of the plans, stock options may not be granted at less than 100% of the fair market value of the shares on the date of grant and may not have a term of more than ten years. Any shares of common stock reserved for issuance pursuant to options granted under the 2009 and 2016 plans that are returned to the Company unexercised shall remain available for issuance under such plan, while the plan is open. For participants owning 10% or more of the Company’s outstanding common stock (of which there are currently none), incentive stock options may not be granted at less than 110% of the fair market value of the shares on the date of grant and may not have an expiration term of more than five years. The Company utilizes the Black-Scholes option valuation model in order to determine the per share grant date fair value of option grants. The table below provides a summary of the options granted, including the fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the years indicated. Stock Option Awards 2016 2015 2014 Options granted 31,047 27,376 31,229 Term in years 10.0 10.0 10.0 Average assumptions used in the model: Expected volatility 42 % 47 % 47 % Expected dividend yield 3.02 % 2.90 % 2.88 % Expected life in years 7.0 7.0 7.0 Risk-free interest rate 1.91 % 1.95 % 2.19 % Market price on date of grant $ 21.91 $ 21.03 $ 20.29 Per share weighted average fair value $ 7.91 $ 8.51 $ 8.32 Fair value as a percentage of market value at grant date 36 % 40 % 41 % The expected volatility is the anticipated variability in the Company’s share price over the expected life of the option and is based on the Company's historical volatility. The expected dividend yield is the Company’s projected dividends based on historical annualized dividend yield to coincide with volatility divided by its share price at the date of grant. The expected life represents the period of time that the option is expected to be outstanding. The Company utilized the simplified method and under this method, the expected term equals the vesting term plus the contractual term divided by 2. The risk-free interest rate is based on the U.S. Treasury rate in effect at the time of grant for a period equivalent to the expected life of the option. Stock option transactions during the year ended December 31, 2016 are summarized as follows: (Dollars in thousands, except per share data) Options Weighted Average Exercise Price Per Share Weighted Average Remaining Life in Years Aggregate Intrinsic Value Outstanding December 31, 2015 300,969 $ 15.82 4.2 $ 2,116 Granted 31,047 21.91 Exercised 71,544 12.77 Forfeited/Expired 693 18.54 Outstanding December 31, 2016 259,779 $ 17.38 4.5 $ 5,243 Vested and Exercisable at December 31, 2016 165,745 $ 15.80 2.6 $ 3,606 The aggregate intrinsic value in the table above represents the difference between the closing price of the Company’s common stock on December 31, 2016 and the exercise price, multiplied by the number of options. If the closing price was less than the exercise price of the option, no intrinsic value was assigned to the grant. At December 31, 2016 , all of the vested and exercisable options were in-the money. The intrinsic value of options vested and exercisable represents the total pretax intrinsic value that would have been received by the option holders had all in-the-money vested option holders exercised their options on December 31, 2016 . The intrinsic value will change based on the fair market value of the Company’s stock. Cash received from option exercises was $388 thousand , $431 thousand and $889 thousand in 2016 , 2015 and 2014 , respectively, net of payments to cover employee tax obligations. The total intrinsic value of options exercised was $1.0 million , $396 thousand and $867 thousand in 2016 , 2015 and 2014 , respectively. Stock option activity during the year ended December 31, 2016 for unvested options are summarized as follows: Unvested Options Options Weighted Average Grant Date Fair Value Unvested December 31, 2015 95,869 $ 7.64 Granted 31,047 7.91 Vested 32,368 7.31 Forfeited 514 8.02 Unvested December 31, 2016 94,034 $ 7.84 The total fair value of options vested (based on grant date fair value) during the years ended December 31, 2016 , December 31, 2015 and December 31, 2014 was $237 thousand , $359 thousand , and $272 thousand , respectively Accounting guidance requires that the stock-based compensation expense recognized in earnings be based on the amount of awards ultimately expected to vest; therefore, a forfeiture assumption must be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company has estimated forfeitures based on historical experience for the portion of the grant which had vested and/or grants already vested based on similarities in the type of options and employee group. Compensation expense recognized in association with the stock option awards amounted to $267 thousand , $318 thousand and $363 thousand for the years ended 2016 , 2015 and 2014 , respectively. The total tax benefit recognized related to the stock option expense was $109 thousand , $127 thousand , and $145 thousand for the years ended 2016 , 2015 , and 2014 , respectively. As of December 31, 2016 , there was $406 thousand of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested stock options. That cost is expected to be recognized over the remaining weighted average vesting period of 2.4 years. Stock Awards Stock-based compensation expense recognized in association with the stock awards amounted to $1.8 million for the year ended December 31, 2016 , $1.2 million for the year ended December 31, 2015 , and $1.1 million for the year ended December 31, 2014 . The total tax benefit recognized related to stock award compensation expense was $746 thousand , $491 thousand , and $458 thousand for the years ended 2016 , 2015 , and 2014 , respectively. In 2016 , the Company granted 106 shares of fully vested stock as employee anniversary awards at a grant date fair market value of $23.58 per share. In 2015 , the Company granted 105 shares of fully vested stock as employee anniversary awards at a grant date fair market value of $23.64 per share. There were 2,142 fully vested stock awards granted in 2014 at a grant date fair market value of $20.95 per share. 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. Employee performance based awards 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 the years indicated. Restricted Stock Awards 2016 2015 2014 Two Year Vesting 9,060 7,276 6,660 Four Year Vesting 18,298 17,775 19,167 Performance-Based Vesting 35,071 30,262 33,017 Total Restricted Stock Awards 62,429 55,313 58,844 Weighted average grant date fair value $ 21.90 $ 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 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. Upon vesting, restricted stock awards may be net share-settled to cover payment for employee tax obligations, resulting in shares of common stock being reacquired by the Company. In accordance with Chapter 156D of the Massachusetts General Laws, a statute known as the Massachusetts Business Corporation Act, which applies to Massachusetts corporations such as the Company, eliminates the concept of “treasury stock” and provides that shares a Massachusetts company reacquires will be treated as authorized but unissued shares. Any shares that are returned to the Company prior to vesting or as payment for employee tax obligations upon vesting shall remain available for issuance under such plan, while the plan is still open. The following table sets forth a summary of the activity for the Company’s restricted stock awards. (Dollars in thousands, except per share data) Restricted Stock Weighted Average Grant Price Per Share Weighted Average Remaining Life In Years Aggregate Intrinsic Value Unvested December 31, 2015 144,717 $ 19.22 1.0 $ 3,304 Granted 62,429 21.90 Vested/released 64,036 18.46 Forfeited 1,530 20.51 Unvested December 31, 2016 141,580 $ 20.73 1.4 $ 5,318 As of December 31, 2016 , there remained $1.3 million of unrecognized compensation expense related to the restricted stock awards. That cost is expected to be recognized over the remaining weighted average vesting period of 2.1 years. Director Stock Compensation in Lieu of Fees In addition to restricted stock awards discussed above, the members of the Company’s Board of Directors may opt to receive newly issued shares of the Company’s common stock in lieu of cash compensation for attendance at Board and Board Committee meetings. Directors must make an irrevocable election to receive shares of common stock in lieu of cash fees prior to December 31st of the preceding year. Directors are granted shares of common stock in lieu of cash fees at a per share price which reflects the market value of the common stock on the first business day of the year. Total directors' fee expense, included in other operating expenses, amounted to $661 thousand , $424 thousand and $444 thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. Included in the 2016 expense was stock compensation in lieu of cash fees of $286 thousand , which represented 12,992 shares issued to Directors in January 2017 , at a fair market value price of $22.04 per share, which reflected the fair value of the common stock on January 4, 2016 . Included in the 2015 expense was stock compensation of $254 thousand , which represented 10,657 shares issued to Directors in January 2016 , at a fair market value price of $23.86 per share, which reflected the fair value of the common stock on January 2, 2015 . Included in the 2014 expense was stock compensation of $242 thousand , which represented 11,612 shares issued to Directors in January 2015 , at a fair market value price of $20.84 per share, which reflected the fair value of the common stock on January 2, 2014 . The total tax benefit recognized related to the expense of Director stock compensation for attendance was $117 thousand , $102 thousand and $97 thousand , for the years ended 2016 , 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31, were calculated using the asset and liability method as follows: (Dollars in thousands) 2016 2015 2014 Current tax expense: Federal $ 8,178 $ 6,808 $ 5,814 State 2,244 1,712 1,681 Total current tax expense 10,422 8,520 7,495 Deferred tax (benefit)/ expense: Federal (984 ) (284 ) 85 State (277 ) (122 ) 5 Total deferred tax (benefit)/ expense (1,261 ) (406 ) 90 Total income tax expense $ 9,161 $ 8,114 $ 7,585 The provision for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate ( 35% ) for 2016 and 2015 and ( 34% ) for 2014 to income before taxes as follows: (Dollars in thousands) 2016 2015 2014 Computed income tax expense at statutory rate $ 9,769 $ 8,492 $ 7,560 State income taxes, net of federal tax benefit 1,279 1,034 1,113 Tax-exempt income, net of disallowance (1,559 ) (1,226 ) (1,060 ) Bank-owned life insurance income, net (261 ) (251 ) (140 ) Other (67 ) 65 112 Total income tax expense $ 9,161 $ 8,114 $ 7,585 Effective income tax rate 32.8 % 33.4 % 34.1 % At December 31, the tax effects of each type of income and expense item that give rise to deferred taxes are: (Dollars in thousands) 2016 2015 Deferred tax asset: Allowance for loan losses $ 12,753 $ 11,800 Depreciation 3,463 3,103 Net unrealized loss on investment securities 444 — Other-than-temporary impairment on equity securities 22 22 Supplemental employee retirement plans 1,018 1,080 Non-accrual interest 1,145 1,393 Stock-based compensation expense 1,019 873 Other 390 163 Total 20,254 18,434 Deferred tax liability: Goodwill 2,301 2,300 Net unrealized gains on investments securities — 1,204 Deferred origination costs 933 812 Other — 7 Total 3,234 4,323 Net deferred tax asset $ 17,020 $ 14,111 Deferred income taxes are recognized based on the expected future tax consequences of differences between the financial statement and tax basis of assets and liabilities, calculated using currently enacted tax rates. Management records net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making this determination, we consider all available positive and negative evidence, including recent financial operations and projected future taxable income. Management believes based upon positive historical and expected future earnings that it is more likely than not the Company will generate sufficient taxable income to realize the deferred tax asset existing at December 31, 2016 . However, factors beyond management’s control, such as the general state of the economy, can affect future levels of taxable income and there can be no assurances that sufficient taxable income will be generated to fully realize the deferred tax assets in the future. The Company paid total income taxes in 2016 , 2015 , and 2014 of $10.9 million , $7.6 million , and $7.5 million , respectively. The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at December 31, 2016 or December 31, 2015 . The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and in the states of Massachusetts and New Hampshire. The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2013 through 2016 tax years. The Company invests in qualified affordable housing projects as a limited partner. In 2016 , the Company estimated approximately $71 thousand of Federal Low Income Housing tax credits to be recognized. In both 2015 and 2014 , the Company recognized $71 thousand of Federal Low Income Housing tax credits. The Company anticipates that it will receive additional tax credits related to the Federal Low Income Housing Tax Credit program in the amount of $390 thousand which are expected to be realized over the next 6 years. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the years ended December 31st: 2016 2015 2014 Basic weighted average common shares outstanding 10,966,333 10,323,016 10,118,762 Dilutive shares 73,178 66,918 90,481 Diluted weighted average common shares outstanding 11,039,511 10,389,934 10,209,243 There were 434 options outstanding that were determined to be anti-dilutive and therefore excluded from the calculation of dilutive shares for the year ended December 31, 2016 . These options, which were not dilutive at that date, may potentially dilute earnings per share in the future. See Item (r) “Earnings per Share,” contained in Note 1, “Summary of Significant Accounting Policies,” for additional information regarding the earnings per share calculation. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
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: December 31, 2016 Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Debt securities $ 362,147 $ — $ 362,147 $ — Equity securities 12,643 12,643 — — FHLB Stock 2,094 — — 2,094 Interest-rate swaps 610 — 610 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 3,481 — — 3,481 Liabilities measured on a recurring basis: Interest-rate swaps $ 610 — $ 610 — December 31, Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Debt securities $ 288,701 $ — $ 288,701 $ — Equity securities 11,657 11,657 — — FHLB Stock 3,050 — — 3,050 Interest-rate swaps 16 — 16 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,516 — — 2,516 Liabilities measured on a recurring basis: Interest-rate swaps $ 16 — $ 16 — The Company did not transfer any assets between the fair value measurement levels during the year ended December 31, 2016 or the year ended December 31, 2015 . All of the Company's debt and equity securities that are considered “available-for-sale” are carried at fair value. The debt security category above includes federal agency obligations, commercial and residential 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 debt 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 debt 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,” under Item (e) "Restricted Investments," above, for further information regarding the Company’s fair value assessment of FHLB capital stock. Impaired loan balances in the table above represent those collateral dependent impaired commercial loans where management has estimated the probable 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 probable credit loss. The specific allowances assigned to the collateral dependent impaired loans at December 31, 2016 amounted to $1.9 million compared to $1.4 million at December 31, 2015 . The fair values for the interest-rate swap assets and liabilities represent a FASB Level 2 measurement and are based on settlement values adjusted for credit risks associated with the counterparties and the Company and observable market interest rate curves. The settlement values are based on discounted cash flow analysis, a widely accepted valuation technique, reflecting the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. The change in value of interest-rate swap assets and liabilities attributable to credit risk was not significant during the reported periods. Refer also to Note 8, “Derivatives and Hedging Activities,” for additional information on the Company's interest-rate swaps. Standby letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance by a customer to a third-party. The fair value of these commitments was estimated to be the fees charged to enter into similar agreements, and accordingly these fair value measures are deemed to be FASB Level 2 measurements. In accordance with the FASB, the estimated fair values of these commitments are carried on the consolidated balance sheet as a liability and amortized to income over the life of the letters of credit, which is typically one year. The estimated fair value of these commitments carried on the consolidated balance sheet at December 31, 2016 and December 31, 2015 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 are accounted for in accordance with FASB guidance. The fair values of the Company’s derivative instruments are deemed to be FASB Level 2 measurements. At December 31, 2016 and December 31, 2015 , the estimated fair value of the Company’s interest-rate lock commitments and commitments to sell these mortgages loans were considered to be immaterial. The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of December 31, 2016 . (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a recurring basis: FHLB Stock $2,094 FHLB State Par Value N/A N/A Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $3,481 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. Estimated Fair Values of Assets and Liabilities In addition to disclosures regarding the measurement of assets and liabilities carried at fair value on the consolidated 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 consolidated balance sheet at the dates indicated are summarized as follows: December 31, 2016 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 $ 1,569 $ 1,569 $ — $ 1,569 $ — Loans, net 1,991,387 1,997,887 — — 1,997,887 Financial liabilities: Certificates of deposit (including brokered) 227,257 226,536 — 226,536 — Borrowed funds 10,671 10,670 — 10,670 — Subordinated debt 14,834 14,011 — — 14,011 December 31, 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 $ 1,709 $ 1,709 $ — $ 1,709 $ — Loans, net 1,830,954 1,845,009 — — 1,845,009 Financial liabilities: Certificates of deposit (including brokered) 274,467 273,419 — 273,419 — Borrowed funds 53,671 53,670 — 53,670 — Subordinated debt 14,822 13,961 — — 13,961 Excluded from this table are certain financial instruments with carrying values that approximated their fair value at the dates indicated, as they were short-term in nature or payable on demand. These include cash and cash equivalents, accrued interest receivable, non-term deposit accounts, and accrued interest payable. The respective carrying values of these instruments would all be considered to be classified within Level 1 of their fair value hierarchy. Also excluded from these tables are the fair values of the 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 immaterial, as well as, commitments to originate loans that were short-term, were 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 December 31, 2016 and December 31, 2015 for similar instruments. The fair value of subordinated debt was estimated using discounted cash flow analysis using a market rate of interest at December 31, 2016 and December 31, 2015 . Limitations: The estimates of fair value of financial instruments were based on information available at December 31, 2016 and December 31, 2015 and are not indicative of the fair market value of those instruments as of the date of this report. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. The fair value of the Company's time deposit liabilities do not take into consideration the value of the Company's long-term relationships with depositors, which may have significant value. Because no active market exists for a portion of the Company’s financial instruments, fair value estimates were based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates were based on existing on- and off-balance sheet financial instruments without an attempt to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments, including premises and equipment and foreclosed real estate. In addition, the tax ramifications related to the realization of the unrealized appreciation and depreciation can have a significant effect on fair value estimates and have not been considered in any of the estimates. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements Balance Sheets December 31, (Dollars in thousands) 2016 2015 Assets Cash $ 497 $ 2,737 Investment in subsidiaries 227,960 191,949 Other assets 1,243 546 Total assets $ 229,700 $ 195,232 Liabilities and Stockholders’ Equity Liabilities Subordinated debt $ 14,834 $ 14,822 Accrued interest payable 78 78 Other liabilities 2 5 Total liabilities 14,914 14,905 Stockholders' equity: Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued — — Common stock $0.01 par value per share; 20,000,000 shares authorized; 11,475,742 shares issued and outstanding at December 31, 2016 (including 141,580 shares of unvested participating restricted awards) and 10,377,787 shares issued and outstanding at December 31, 2015 (including 144,717 shares of unvested participating restricted awards) 115 104 Additional paid-in capital 85,421 61,008 Retained earnings 130,008 116,941 Accumulated other comprehensive income (758 ) 2,274 Total stockholders’ equity 214,786 180,327 Total liabilities and stockholders’ equity $ 229,700 $ 195,232 Statements of Income For the years ended December 31, (Dollars in thousands) 2016 2015 2014 Equity in undistributed net income of subsidiaries $ 19,313 $ 17,277 $ 13,744 Dividends distributed by subsidiaries 150 — 1,850 Loss distributed by divested subsidiary — (210 ) — Other income — 17 — Total income 19,463 17,084 15,594 Interest expense 928 1,071 1,177 Other operating expenses 194 500 194 Total operating expenses 1,122 1,571 1,371 Income before income taxes 18,341 15,513 14,223 Benefit from income taxes (410 ) (635 ) (428 ) Net income $ 18,751 $ 16,148 $ 14,651 Parent Company Only Financial Statements Statements of Cash Flows For the years ended December 31, (Dollars in thousands) 2016 2015 2014 Cash flows from operating activities: Net income $ 18,751 $ 16,148 $ 14,651 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (19,313 ) (17,277 ) (13,744 ) Payment from subsidiary bank for stock compensation expense 2,348 1,791 1,704 Changes in: Other assets (697 ) (36 ) (277 ) Other liabilities (3 ) (12 ) (3 ) Payments for employee taxes, restricted shares net share-settled (284 ) — — Subordinated debt issuance costs 12 (178 ) — Accrued interest payable — (292 ) — Net cash provided by operating activities 814 144 2,331 Cash flows from investing activities Investment in subsidiary (19,730 ) 781 — Net cash used in (provided by) investing activities (19,730 ) 781 — Cash flows from financing activities: Repayment of subordinated debt — (10,825 ) — Proceeds from the issuance of subordinated debt — 15,000 — Cash dividends paid (5,684 ) (5,158 ) (4,853 ) Proceeds from issuance of common stock 21,183 1,448 1,283 Proceeds from exercise of stock options 388 431 889 Tax benefit from stock-based compensation 789 217 320 Net cash provided by (used in) financing activities 16,676 1,113 (2,361 ) Net increase (decrease) in cash and cash equivalents (2,240 ) 2,038 (30 ) Cash and cash equivalents, beginning of year 2,737 699 729 Cash and cash equivalents, end of year $ 497 $ 2,737 $ 699 See Note 1, “Summary of Significant Accounting Policies,” under Item (a) “Organization of Holding Company and Basis of Presentation” and Note 7, “Borrowed Funds and Subordinated Debt,” above, for further information regarding changes in both the Company's investment in the Capital Trust and in subordinated debt. The Parent Company’s Statements of Comprehensive Income and Statements of Changes in Stockholders’ Equity are identical to the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Changes in Stockholders’ Equity and therefore are not presented here. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) 2016 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 22,465 $ 22,632 $ 23,191 $ 24,027 Interest expense 1,382 1,343 1,374 1,424 Net interest income 21,083 21,289 21,817 22,603 Provision for loan losses 850 267 1,386 490 Net interest income after provision for loan losses 20,233 21,022 20,431 22,113 Non-interest income 3,204 3,519 3,402 3,514 Net gains on sales of investment securities 2 63 546 191 Non-interest expense 16,869 17,542 17,414 18,503 Income before income taxes 6,570 7,062 6,965 7,315 Provision for income taxes 2,257 2,291 2,251 2,362 Net income $ 4,313 $ 4,771 $ 4,714 $ 4,953 Basic earnings per share $ 0.41 $ 0.45 $ 0.41 $ 0.43 Diluted earnings per share $ 0.41 $ 0.45 $ 0.41 $ 0.43 2015 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 19,839 $ 20,437 $ 21,224 $ 21,971 Interest expense 1,385 1,253 1,264 1,275 Net interest income 18,454 19,184 19,960 20,696 Provision for loan losses 625 1,225 250 1,167 Net interest income after provision for loan losses 17,829 17,959 19,710 19,529 Non-interest income 3,125 3,222 3,177 3,615 Net gains on sales of investment securities 900 456 7 465 Non-interest expense 16,210 16,267 16,548 16,707 Income before income taxes 5,644 5,370 6,346 6,902 Provision for income taxes 2,024 1,855 2,054 2,181 Net income $ 3,620 $ 3,515 $ 4,292 $ 4,721 Basic earnings per share $ 0.35 $ 0.34 $ 0.41 $ 0.46 Diluted earnings per share $ 0.35 $ 0.34 $ 0.41 $ 0.45 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements of Enterprise Bancorp, Inc. (the “Company,” “Enterprise,” “we,” or “our”), a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary Enterprise Bank and Trust Company (the “Bank”). The Bank is a Massachusetts trust company organized in 1989. Substantially all of the Company’s operations are conducted through the Bank. The Bank’s subsidiaries include Enterprise Insurance Services, LLC and Enterprise Investment Services, LLC, organized under the laws of the state of Delaware for the purposes of engaging in insurance sales activities and offering non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. 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 23 full-service branches serving the greater Merrimack Valley and North Central regions of Massachusetts, and in Southern New Hampshire. Through the Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, as well as 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. Prior to March 2015 , pursuant to the Accounting Standards Codification (“ASC”) Topic 810 “Consolidation of Variable Interest Entities,” issued by the Financial Accounting Standards Board (“FASB”), 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, had been excluded from the Company’s consolidated financial statements. In March 2015 , the Company redeemed in full the junior subordinated debentures, which in turn allowed the Trust to redeem in full the trust preferred securities. The Company also dissolved the Trust in April 2015. See Note 7, “Borrowed Funds and Subordinated Debt,” below for further information on the Company's subordinated debt. The Federal Deposit Insurance Corporation (“FDIC”) and the Massachusetts Division of Banks (the “Division”) have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Division also retains supervisory jurisdiction over the Company. |
Basis of Accounting | The accompanying audited consolidated financial statements and notes thereto have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the instructions for Form 10-K through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying audited consolidated financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying audited consolidated financial statements. |
Reclassification | Certain previous years' amounts in the audited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. |
Subsequent Events | The Company has evaluated subsequent events and transactions from December 31, 2016 through the date this report on Form 10-K was filed with the SEC for potential recognition or disclosure as required by GAAP and determined that there were no material subsequent events requiring recognition or disclosure. |
Use of Estimates | Uses of estimates In preparing the 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 at the balance sheet date and income and expenses for the years then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used change over time due to changes in circumstances. Changes in those estimates resulting from continuing change in the economic environment and other factors will be reflected in the financial statements and results of operations in future periods. The three most significant areas in which management applies critical assumptions and estimates are the estimate of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. |
Cash and Cash Equivalents | Cash and cash equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of changes in value due to changes in interest rates. The Company's cash and cash equivalents are comprised of cash on hand and cash items due from banks, interest-earning deposits (deposit accounts, excess cash balances, money market and money market mutual fund accounts) and overnight and term federal funds sold (“fed funds”). Balances in cash and cash equivalents will fluctuate resulting primarily from the timing of net deposit flows, borrowing and loan inflows and outflows, investment purchases and maturities, calls and sales proceeds, and the immediate liquidity needs of the Company. |
Investments | Investments Investments that are intended to be held for indefinite periods of time but which may not be held to maturity or on a long-term basis are considered to be “available-for-sale” and are carried at fair value. Net unrealized appreciation and depreciation on investments available-for-sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income/(loss). Included as available-for-sale are securities that are purchased in connection with the Company’s asset-liability risk management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk and other related factors. In instances where the Company has the positive intent to hold investment securities to maturity, investment securities will be classified as held-to-maturity and carried at amortized cost. As of the balance sheet dates, all of the Company’s investment securities were classified as available-for-sale and carried at fair value. There are inherent risks associated with the Company’s investment activities that could adversely impact the fair market value and the ultimate collectability of the Company’s investments. Management regularly reviews the portfolio for securities with unrealized losses that are other than temporarily impaired. The determination of other-than-temporary impairment (“OTTI”) involves a high degree of judgment and requires management to make significant estimates of current market risks and future trends. Management's assessment, depending on the type of security includes: reviews of market pricing, evaluating the level and duration of the loss on individual securities; ongoing credit quality evaluations; determining if any individual security or mutual fund or other fund exhibits fundamental deterioration; and estimating whether it is unlikely that the individual security or fund will completely recover its unrealized loss within a reasonable period of time, or in the case of debt securities prior to maturity. While management uses available information to measure OTTI at the balance sheet date, future write-downs may be necessary based on extended duration of current unrealized losses, changing market conditions, or circumstances surrounding individual issuers and funds. Should an investment be deemed to have OTTI, the Company is required to write-down the carrying value of the investment. OTTI on equity securities is recognized through a charge to earnings. OTTI on debt securities is assessed in order to determine the impairment attributed to underlying credit quality of the issuer and the portion of noncredit impairment. When there are credit losses on a debt security that management does not intend to sell and it is more likely than not that the Company will not be required to sell prior to a marketplace recovery or maturity, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the security’s amortized cost basis and its fair value would be included in other comprehensive income. Once written-down, the previous charge may not be recovered through earnings until sale or maturity, if in excess of its new cost basis. Any OTTI charges, depending upon the magnitude of the charges, could have a material adverse effect on the Company’s financial condition and results of operations. Investment securities’ discounts are accreted and premiums are amortized over the period of estimated principal repayment using methods that approximate the interest method. Gains or losses on the sale of investment securities are recognized on the trade date on a specific identification basis. (e) Restricted Investments As a member of the Federal Home Loan Bank of Boston (“FHLB”), the Bank is required to purchase certain levels of FHLB stock in association with outstanding advances from the FHLB. From time-to-time, the FHLB may initiate the repurchase, at par value, of "excess" levels of its capital stock held by member banks. This stock investment 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 OTTI review noted above under investments, management also regularly reviews its holdings of FHLB stock for OTTI. Based on management’s ongoing review, the Company has not recorded any OTTI charges on this investment to date. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. |
Loans Held for Sale | Loans Held for Sale Depending on the current interest rate environment, management projections of future interest rates and the overall asset-liability management program of the Company, management may elect to sell those fixed and adjustable rate residential mortgage loans which are eligible for sale in the secondary market. Mortgage loans are generally not pooled for sale, but instead sold on an individual basis. Enterprise may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan, and are subject to an early payment default period covering the first four payments for certain loan sales. Loans held for sale are carried at the lower of aggregate amortized cost or market value. Market value is based on comparable market prices for loans with similar rates and terms. When loans are sold, a gain or loss is recognized to the extent that the sales proceeds plus unamortized fees and costs exceed, or are less than, the carrying value of the loans. Gains and losses are determined using the specific identification method. |
Loans | Loans Loans made by the Company to businesses include commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and standby letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner occupied primary and secondary residences, secured and unsecured personal loans and lines of credit. Most loans granted by the Company are collateralized by real estate or equipment and/or are guaranteed by the principals of the borrower. The ability and willingness of the single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity and real estate values within the borrowers’ geographic areas. The ability and willingness of commercial real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers’ geographic areas and the general economy, among other factors. Loans are reported at the principal amount outstanding, net of deferred origination fees and costs. The aggregate amount of overdrawn deposit accounts are reclassified as loan balances. Loan origination fees received, offset by direct loan origination costs, are deferred and amortized using the straight line method over three to five years for lines of credit and demand notes or over the life of the related loans using the level-yield method for all other types of loans. When loans are paid off, the unamortized fees and costs are recognized as an adjustment to interest income. The Company participates with other banks in the financing of certain commercial projects. 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. When the participation qualifies as a sale under GAAP, 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. Loans acquired are initially measured at fair value as of the acquisition date without carryover of historical allowance for loan losses. Credit discounts representing losses of unpaid loan principal balances expected over the life of the loans are included in the determination of acquisition date fair value. The fair-market valuation of loans acquired at a premium is amortized into interest income on a level-yield basis over the life of the loan. Subsequent to the purchase date, the methods utilized to estimate the required allowance for loan losses are similar to originated loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is an estimate of probable credit risk inherent in the loan portfolio as of the specified balance sheet dates. The allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated probable losses from specifically known and other credit risks associated with the portfolio. The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology uses a two-tiered approach that makes use of specific reserves for loans individually evaluated and deemed impaired and general reserves for larger groups of homogeneous loans. On a quarterly basis, the Company prepares an estimate of the allowance necessary to cover estimated credit risk inherent in the portfolio as of the specified balance sheet dates. The adequacy of the allowance for loan losses is reviewed and evaluated on a regular basis by an internal management committee, a sub-committee of the Board of Directors and the full Board itself. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. See Note 4, "Allowance for Loan Losses," for additional accounting policies related to non-accrual, impaired and troubled debt restructured loans and to the allowance for loan losses. |
Other Real Estate Owned | Other Real Estate Owned Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as Other Real Estate Owned (“OREO”). When property is acquired, it is generally recorded at the lesser of the loan’s remaining principal balance, net of unamortized deferred fees, or the estimated fair value of the property acquired, less estimated costs to sell, establishing a new cost basis. The estimated fair value is based on market appraisals and the Company’s internal analysis. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value are charged to non-interest expense. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: Bank premises and leasehold improvements 10 to 39 years Computer software and equipment 3 to 5 years Furniture, fixtures and equipment 3 to 10 years |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has purchased bank owned life insurance (“BOLI”) on certain current and former senior and executive officers. The cash surrender value carried on the consolidated balance sheets at December 31, 2016 and December 31, 2015 amounted to $28.8 million and $28.0 million , respectively. There are no associated surrender charges under the outstanding policies. |
Impairment of Long-Lived Assets Other than Goodwill | Impairment of Long-Lived Assets Other than Goodwill The Company reviews long-lived assets, including premises and equipment, for impairment on an ongoing basis or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is recognized through a charge to earnings. Impairment losses on assets disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. |
Goodwill | Goodwill Goodwill carried on the Company’s consolidated financial statements was $5.7 million at both December 31, 2016 and December 31, 2015 . This asset is related to the Company’s acquisition of two branch offices in July 2000. In accordance with GAAP the Company does not amortize goodwill and instead, at least annually, evaluates whether the carrying value of goodwill has become impaired. Impairment of the goodwill may occur when the estimated fair value of the Company is less than its recorded book value. A determination that goodwill has become impaired results in an immediate write-down of goodwill to its determined value with a resulting charge to operations. The annual impairment test begins with a qualitative assessment of whether it is "more likely than not" that the reporting unit's fair value is less than its carrying amount. The assessment is performed at the operating unit level. If an entity concludes it is not "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. In the case of the Company, the services offered through the Bank and subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was determined not to be impaired at December 31, 2016 . If the Company's qualitative assessment concluded that it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test compares the estimated fair value of the reporting unit with its carrying amount, or the book value of the reporting unit, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair values for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of that goodwill, an impairment loss is recognized in the amount required to write down the goodwill to the implied fair value. |
Investment Assets Under Management | Investment Assets Under Management Investment assets under management, consisting of assets managed through Enterprise Wealth Management and Enterprise Investment Services and the commercial sweep product, totaled $725.3 million and $678.4 million at December 31, 2016 and 2015 , respectively. Fee income is recorded on an accrual basis and recognized over the period in which it is earned. Securities and other property held in a fiduciary or agency capacity are not included in the consolidated balance sheets because they are not assets of the Company. |
Derivatives | Derivatives The Company recognizes all derivatives as either assets or liabilities on its consolidated balance sheet and measures those instruments at fair market value. Interest rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. At December 31, 2016 and 2015 , the estimated fair values of these derivative instruments were considered to be immaterial. The Company may use interest-rate swap agreements as part of its interest-rate risk management strategy. Interest-rate swap agreements can be entered into as hedges against future interest-rate fluctuations on specifically identified assets or liabilities. The Company did not have derivative fair value hedges or derivative cash flow hedges at December 31, 2016 or 2015 . Beginning in 2015, the Company implemented a “Back-to-Back Swap” program whereby the Bank enters into an interest rate swap with a qualified commercial banking customer and simultaneously enters into an equal and opposite interest rate swap with an independent counterparty. The customer interest-rate swap agreement allows commercial banking customers to convert a floating-rate loan payment to fixed-rate loan payment. The transaction structure effectively minimizes the Bank’s net risk exposure resulting from such transactions. Customer related credit risk is minimized by the cross collateralization of the loan and the interest rate swap agreement. Back-to-Back Swaps are not speculative but rather result from a service the Company provides to certain customers. Back-to-Back Swaps do not meet hedge accounting requirements and therefore changes in the fair value of both the customer swaps and the counterparty swaps, which have an offsetting relationship, are recognized directly in earnings. See Note 8, "Derivatives and Hedging Activities" for more information about the Company's derivatives. |
Stock Based Compensation | Stock Based Compensation The Company’s financial statements include stock-based compensation expense for the portion of stock option awards, net of estimated forfeitures, and stock awards for which the requisite service has been rendered during the period. The compensation expense has been estimated based on the estimated grant-date fair value of the stock option awards, or in the case of stock awards, the market value of the common stock on the date of grant. The Company will recognize the remaining estimated compensation expense for the portion of outstanding awards and compensation expense for any future awards, net of estimated forfeitures, as the requisite service is rendered (i.e., on a straight-line basis over the remaining vesting period of each award) or as performance objectives are met. Stock awards that do not require future service (“vested awards”) will be expensed immediately. Stock-based compensation also includes Director stock compensation for stock awards and stock in lieu of cash fees, both included in other operating expenses, described in more detail in Note 11 "Stock-Based Compensation Plans." |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax attributable to differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities will be adjusted accordingly through the provision for income taxes. The Company’s policy is to classify interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law. The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position. The 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 December 31, 2016 or December 31, 2015 . The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2013 through 2016 tax years. |
Earnings Per Share | Earnings per Share Basic earnings per share are calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding (including participating securities) during the year. The Company's only participating securities are unvested restricted stock awards that contain non-forfeitable rights to dividends. Diluted earnings per share reflects the effect on weighted average shares outstanding of the number of additional shares outstanding if dilutive stock options were converted into common stock using the treasury stock method. |
Reporting Comprehensive Income | Reporting Comprehensive Income Comprehensive income is defined as all changes to equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. The Company’s only other comprehensive income component is the net unrealized holding gains or losses on investments available-for-sale, net of deferred income taxes. Pursuant to GAAP, 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." |
Recently Accounting Pronouncements | Recent Accounting Pronouncements Accounting pronouncements adopted by the Company In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 2015, the FASB issued ASU No. 2015-01, "Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items." This ASU will align more closely GAAP income statement presentation guidance with International Audit Standards (IAS) 1, Presentation of Financial Statements, which prohibits the presentation and disclosure of extraordinary items. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this standard did not have an impact on the Company's financial statements. Accounting pronouncements not yet adopted by the Company (in order of effective date) In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. " The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting are simplified including, generally: a) income tax consequences; b) classification of awards as either equity or liabilities; c) accounting for forfeitures; and d) classification on the statement of cash flows. Among the changes, the amendment allows for entities to partially settle awards in cash up to the maximum individual statutory tax rate in the applicable jurisdiction and still qualify for equity classification; all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) will be recognized as income tax expense or benefit in the income statement; in addition, an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur; among other changes. The new standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Based on the Company's evaluation to date management believes the more significant impact of the implementation of this ASU will be the recognition of income tax expenses or benefits in the income statement, which under previous guidance was recognized in additional paid-in capital. In 2016, the Company recognized $789 thousand in additional paid-in capital in this regard, which under the new ASU would be recognized as income tax benefit in the income statement. This amount will vary from year to year as a function of the volume of share-based payments vested or exercised and the then current market price of the Company's stock in comparison to the compensation cost recognized in the financial statements. The foregoing observations are subject to change as management completes their implementation process. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606) ". This ASU is intended to create a single source of revenue guidance which is more principles based than current revenue guidance. The guidance affects any entity that either enters into contracts with customers to transfer goods or services, or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date" to amend the effective date of ASU 2014-09. The amendments in ASU 2014-09 are effective for annual and interim periods within fiscal years beginning after December 15, 2017. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The FASB has since issued additional related ASUs amendments intended to clarify certain aspects and improve understanding of the implementation guidance of Topic 606 but do not change the core principles of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of Topic 606. The Company is currently evaluating the potential impact of the ASU and its amendments on the Company's financial statements and results of operations and does not currently plan to early adopt. Based on the Company's preliminary evaluations to date, and because the largest portion of the Company's revenue, interest income and various loan fees, are specifically excluded from the scope of this ASU, and because the Company currently recognizes the majority of the remaining revenue sources in a manner that management believes is consistent with the new ASU, management believes that revenue recognized under the new standard will generally approximate revenue recognized under current GAAP. The foregoing observations are subject to change as management completes their implementation process. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other things, the new guidance: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the effects of this ASU on the Company's financial statements and results of operations. Based on the Company's evaluation to date, management believes the more significant implications upon adoption of this ASU will be the potential recognition of changes in fair value of our equity portfolio in net income. Under current GAAP, net unrealized appreciation or depreciation on the equity portfolio, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income. For the year ended December 31, 2016 , the change in other comprehensive income generated from the equity portfolio amounted to $379 thousand . Any potential future changes in fair value of the equity portfolio will depend on the amount of dollars invested in the portfolio and the potential magnitude of changes in equity market values. The foregoing observations are subject to change as management completes their implementation process. In August 2016, the FASB issued ASU 2016-15, "Statement of Cashflows - Classification of Certain Cash Receipts and Cash Payments." The amendments are intended to reduce diversity in practice related to the presentation of eight specific cashflow issues. For public business entities that are SEC filers, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Because this amendment primarily impacts the presentation and classification of information, the Company does not expect this ASU to have an impact on the Company's financial statements and results of operations. In November 2016, the FASB issued ASU 2016-18, "Statement of Cashflows-Restricted Cash (Topic 230)." The amendments in this Update clarify the inclusion of restricted cash in the cash and cash equivalents beginning-of-period and end-of period reconciliation on the statement of cashflows. For public business entities that are SEC filers, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Because this amendment primarily impacts the presentation and classification of information, the Company does not expect this ASU to have an impact on the Company's financial statements and results of operations. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which supersedes previous leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the effects of this ASU on the Company's financial statements and results of operations. Based on the Company's evaluation to date, management believes the more significant implication of this ASU on the Company relates to operating leases of our branch facilities. As of December 31, 2016, the Company leased 15 of its branch locations, and expects that upon adoption of this ASU the balance sheet will reflect both lease liabilities, equal to the present value of lease payments, and right-of-use assets, equal to the lease liability plus payments made to lessors adjusted for prepaid or accrued rent and any initial direct cost incurred. In addition, the Company's will recognize lease expense in the income statement on a straight-line basis similar to current operating leases. The straight-line expense will reflect the interest expense on the lease liability (effective interest method) and amortization of the right-of-use asset. Lease expense will be presented as a single line item in the operating expense section of the income statement. Management believes that lease expense under the new standard will generally approximate lease expense under current GAAP. The foregoing observations are subject to change as management completes their implementation process. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326)." The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss and generally recognition of the full amount of credit losses was delayed until the loss was probable of occurring. The amendments in this ASU eliminate the probable initial recognition threshold in current GAAP and, instead, reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP. However, the amendments in this Update require that credit losses be presented as an allowance rather than as a write-down. Unlike current GAAP, the Update provides for reversals of credit losses in future period net income in situations where the estimate of loss declines. An entity will apply the amendments in this Update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). For public business entities that are SEC filers, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is in the process of establishing an implementation committee and creating an enterprise-wide implementation plan for this ASU, which will consider the impact to operations, financial results, disclosures and controls. At present, the impact of the adoption of ASU No. 2016-13 on Company's financial statements and results of operations is unknown. In January 2017, the FASB issued ASU No. 2017-01, "Intangibles-Goodwill and Other-Simplifying the Test for Goodwill Impairment (Topic 350). " The main provision in this ASU eliminated Step 2 of the goodwill impairment test and instead requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount. An impairment charge would be recognized for the amount the carrying value exceeds the reporting unit's fair value as long as the amount recognized doesn't exceed the amount of goodwill allocated to the reporting unit. For public business entities that are SEC filers, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect the adoption of ASU No. 2017-01 to have a material impact on the Company's financial statements and results of operations. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment, Useful Lives | Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: Bank premises and leasehold improvements 10 to 39 years Computer software and equipment 3 to 5 years Furniture, fixtures and equipment 3 to 10 years |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and fair values of investments at December 31, 2016 and 2015 are summarized as follows: 2016 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 74,682 $ 432 $ 45 $ 75,069 Residential federal agency MBS (1) 94,818 96 1,561 93,353 Commercial federal agency MBS (1) 71,993 15 1,730 70,278 Municipal securities 112,401 922 1,520 111,803 Corporate bonds 10,734 51 90 10,695 Certificates of deposits (2) 950 — 1 949 Total debt securities 365,578 1,516 4,947 362,147 Equity investments 10,413 2,532 302 12,643 Total available-for-sale investments, at fair value $ 375,991 $ 4,048 $ 5,249 $ 374,790 2015 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 78,626 $ 352 $ 153 $ 78,825 Residential federal agency MBS (1) 75,105 406 648 74,863 Commercial federal agency MBS (1) 23,908 — 363 23,545 Municipal securities 96,189 2,357 35 98,511 Corporate bonds 10,257 44 95 10,206 Certificates of Deposit (2) 2,753 — 2 2,751 Total debt securities 286,838 3,159 1,296 288,701 Equity investments 10,043 1,966 352 11,657 Total available-for-sales investments, at fair value $ 296,881 $ 5,125 $ 1,648 $ 300,358 (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 ( “ FFCB ” ), 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. |
Schedule of Unrealized Loss on Investments | The following tables summarize investments (debt and equity) having temporary impairment, due to the fair market values having declined below the amortized costs of the individual investments, and the period of time that the investments have been temporarily impaired at December 31, 2016 and 2015 . 2016 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 13,956 $ 45 $ — $ — $ 13,956 $ 45 3 Residential federal agency MBS 68,138 1,236 8,008 325 76,146 1,561 31 Commercial federal agency MBS 60,060 1,730 — — 60,060 1,730 18 Municipal securities 60,436 1,520 — — 60,436 1,520 107 Corporate bonds 5,729 90 — — 5,729 90 37 Certificates of Deposit 949 1 — — 949 1 4 Equity investments 1,185 20 2,743 282 3,928 302 3 Total temporarily impaired investments $ 210,453 $ 4,642 $ 10,751 $ 607 $ 221,204 $ 5,249 203 2015 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 27,420 $ 153 $ — $ — $ 27,420 $ 153 8 Residential federal agency MBS 20,517 275 10,935 373 31,452 648 14 Commercial federal agency MBS 23,545 363 — — 23,545 363 9 Municipal securities 6,988 33 261 2 7,249 35 13 Corporate bonds 4,574 78 419 17 4,993 95 37 Certificates of deposit 1,976 2 — — 1,976 2 10 Equity investments 4,204 351 24 1 4,228 352 5 Total temporarily impaired investments $ 89,224 $ 1,255 $ 11,639 $ 393 $ 100,863 $ 1,648 96 |
Investments Classified by Contractual Maturity Date | The contractual maturity distribution of total debt securities at December 31, 2016 is as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 12,898 $ 12,937 Due after one, but within five years 98,184 98,807 Due after five, but within ten years 136,160 133,755 Due after ten years 118,336 116,648 Total debt securities $ 365,578 $ 362,147 |
Schedule of Realized Gain (Loss) on Sales of Investments | Sales of investments, including pending trades if applicable, for the years ended December 31, 2016 , 2015 , and 2014 are summarized as follows: (Dollars in thousands) 2016 2015 2014 Amortized cost of investments sold (1) $ 4,299 $ 23,287 $ 23,752 Gross realized gains on sales 803 1,990 1,654 Gross realized losses on sales (1 ) (162 ) (35 ) Total proceeds from sales of investments $ 5,101 $ 25,115 $ 25,371 (1) Amortized cost of investments sold is determined on a specific identification basis. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of Loans by Loan Classification | Major classifications of loans at the periods indicated, are as follows: (Dollars in thousands) December 31, 2016 December 31, 2015 Commercial real estate $ 1,038,082 $ 936,921 Commercial and industrial 490,799 458,553 Commercial construction 213,447 202,993 Total commercial loans 1,742,328 1,598,467 Residential mortgages 180,560 169,188 Home equity loans and lines of credit 91,065 83,373 Consumer 10,845 10,747 Total retail loans 282,470 263,308 Gross loans 2,024,798 1,861,775 Deferred loan origination fees, net (2,069 ) (1,813 ) Total loans 2,022,729 1,859,962 Allowance for loan losses (31,342 ) (29,008 ) Net loans $ 1,991,387 $ 1,830,954 |
Schedule of Loans Pledged as Collateral | Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity for the periods indicated are summarized below: (Dollars in thousands) December 31, 2016 December 31, 2015 Commercial real estate $ 247,664 $ 281,802 Residential mortgages 170,247 118,855 Home equity 12,340 13,972 Total loans pledged to FHLB $ 430,251 $ 414,629 |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Financing Receivables by Evaluation Method | The balances of loans as of December 31, 2015 by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 12,287 $ 924,634 $ 936,921 Commercial and industrial 7,810 450,743 458,553 Commercial construction 3,032 199,961 202,993 Residential 366 168,822 169,188 Home equity 169 83,204 83,373 Consumer 24 10,723 10,747 Total loans $ 23,688 $ 1,838,087 $ 1,861,775 The balances of loans, as of December 31, 2016 , by segment and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 14,261 $ 1,023,821 $ 1,038,082 Commercial and industrial 13,372 477,427 490,799 Commercial construction 3,364 210,083 213,447 Residential 289 180,271 180,560 Home equity 509 90,556 91,065 Consumer 1 10,844 10,845 Total gross loans $ 31,796 $ 1,993,002 $ 2,024,798 |
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 adverse risk rating category as of the periods indicated. December 31, 2016 (Dollars in thousands) Adversely Classified Not Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 16,003 $ — $ — $ 1,022,079 $ 1,038,082 Commercial and industrial 12,770 99 2 477,928 490,799 Commercial construction 3,364 — — 210,083 213,447 Residential 1,414 — — 179,146 180,560 Home equity 666 — — 90,399 91,065 Consumer 30 — — 10,815 10,845 Total gross loans $ 34,247 $ 99 $ 2 $ 1,990,450 $ 2,024,798 December 31, 2015 (Dollars in thousands) Adversely Classified Not Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 12,487 $ — $ — $ 924,434 $ 936,921 Commercial and industrial 8,670 — 3 449,880 458,553 Commercial construction 1,776 — — 201,217 202,993 Residential 1,278 — — 167,910 169,188 Home equity 503 — 5 82,865 83,373 Consumer 38 11 — 10,698 10,747 Total gross loans $ 24,752 $ 11 $ 8 $ 1,837,004 $ 1,861,775 |
Past Due Financing Receivables | The following table presents an age analysis of past due loans as of December 31, 2016 . (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 5,993 $ 923 $ 1,399 $ 8,315 $ 1,029,767 $ 1,038,082 $ 4,876 Commercial and industrial 267 4 1,544 1,815 488,984 490,799 3,174 Commercial construction — — — — 213,447 213,447 519 Residential 648 — 99 747 179,813 180,560 289 Home equity 270 — 269 539 90,526 91,065 616 Consumer 94 13 11 118 10,727 10,845 11 Total gross loans $ 7,272 $ 940 $ 3,322 $ 11,534 $ 2,013,264 $ 2,024,798 $ 9,485 The following table presents an age analysis of past due loans as of December 31, 2015 . (Dollars in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 1,641 $ 1,532 $ 3,256 $ 6,429 $ 930,492 $ 936,921 $ 8,506 Commercial and industrial 1,332 693 2,125 4,150 454,403 458,553 4,323 Commercial construction 581 — 7 588 202,405 202,993 335 Residential 354 280 57 691 168,497 169,188 366 Home equity 634 9 73 716 82,657 83,373 288 Consumer 36 15 7 58 10,689 10,747 27 Total gross loans $ 4,578 $ 2,529 $ 5,525 $ 12,632 $ 1,849,143 $ 1,861,775 $ 13,845 |
Schedule of Interest Lost on Nonaccrual Loans | The reduction in interest income for the years ended December 31, associated with non-accruing loans is summarized as follows: (Dollars in thousands) 2016 2015 2014 Income in accordance with original loan terms $ 1,585 $ 1,052 $ 1,007 Less income recognized 722 426 323 Reduction in interest income $ 863 $ 626 $ 684 |
Impaired Financing Receivables | The following table sets forth the recorded investment in impaired loans and the related specific allowance allocated as of the dates indicated: Balance at December 31, 2016 (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 $ 16,010 $ 14,261 $ 12,444 $ 1,817 $ 370 Commercial and industrial 14,291 13,372 9,366 4,006 2,222 Commercial construction 3,408 3,364 3,051 313 28 Residential 388 289 289 — — Home equity 665 509 509 — — Consumer 2 1 — 1 1 Total $ 34,764 $ 31,796 $ 25,659 $ 6,137 $ 2,621 Balance at December 31, 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 $ 14,903 $ 12,287 $ 11,734 $ 553 $ 186 Commercial and industrial 9,816 7,810 5,253 2,557 1,078 Commercial construction 3,147 3,032 1,583 1,449 499 Residential 453 366 366 — — Home equity 308 169 164 5 5 Consumer 25 24 — 24 24 Total $ 28,652 $ 23,688 $ 19,100 $ 4,588 $ 1,792 The following table presents the average recorded investment in impaired loans and the related interest recognized during the year ends indicated. December 31, 2016 December 31, 2015 December 31, 2014 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 12,988 $ 332 $ 13,827 $ 196 $ 14,135 $ 223 Commercial and industrial 9,790 223 9,372 97 10,682 156 Commercial construction 3,137 150 2,202 83 3,158 105 Residential 301 — 449 — 1,082 3 Home equity 356 (4 ) 174 1 208 — Consumer 14 — 45 — 27 2 Total $ 26,586 $ 701 $ 26,069 $ 377 $ 29,292 $ 489 |
Troubled Debt Restructurings on Financing Receivables | The following tables present certain information regarding loan modifications classified as troubled debt restructures. Troubled debt restructure agreements entered into during the year ended December 31, 2016 are detailed below. (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 8 $ 6,212 $ 7,534 Commercial and industrial 11 5,231 5,244 Commercial construction — — — Residential — — — Home equity — — — Consumer — — — Total 19 $ 11,443 $ 12,778 Payment defaults during the year ended December 31, 2016 , on loans modified as troubled debt restructurings within the preceding twelve months are detailed below. (Dollars in thousands) Number of TDRs that defaulted Post-modification outstanding recorded investment Commercial real estate 1 $ 148 Commercial and industrial — — Commercial construction — — Residential — — Home equity — — Consumer — — Total 1 $ 148 Troubled debt restructure agreements entered into during the year ended December 31, 2015 are detailed below. (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 4 $ 269 $ 371 Commercial and industrial 8 1,786 1,600 Commercial construction 2 1,339 1,339 Residential — — — Home equity — — — Consumer 1 4 3 Total 15 $ 3,398 $ 3,313 Payment defaults, during the year ended December 31, 2015 , on loans modified as troubled debt restructurings within the preceding twelve months are detailed below. (Dollars in thousands) Number of TDRs that defaulted Post-modification outstanding recorded investment Commercial real estate — $ — Commercial and industrial 3 759 Commercial construction — — Residential — — Home equity — — Consumer — — Total 3 $ 759 |
Allowance for Credit Losses on Financing Receivables | Changes in the allowance for loan losses for the years ended December 31, are summarized as follows: (Dollars in thousands) 2016 2015 2014 Balance at beginning of year $ 29,008 $ 27,121 $ 26,967 Provision charged to operations 2,993 3,267 1,395 Loan recoveries 709 409 735 Less: Loans charged-off 1,368 1,789 1,976 Balance at end of year $ 31,342 $ 29,008 $ 27,121 Changes in the allowance for loan losses by segment for the year ended December 31, 2016 , are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Cnsmr Total Beg. Balance, 12/31/15 $ 13,514 $ 9,758 $ 3,905 $ 1,061 $ 540 $ 230 $ 29,008 Provision 1,696 1,745 (494 ) (101 ) 97 50 2,993 Recoveries 20 681 — — 3 5 709 Less: Charge offs 328 980 5 — 6 49 1,368 Ending Balance, 12/31/16 $ 14,902 $ 11,204 $ 3,406 $ 960 $ 634 $ 236 $ 31,342 Ending allowance balance allotted to: Loans individually evaluated for impairment $ 370 $ 2,222 $ 28 $ — $ — $ 1 $ 2,621 Loans collectively evaluated for impairment $ 14,532 $ 8,982 $ 3,378 $ 960 $ 634 $ 235 $ 28,721 Changes in the allowance for loan losses by segment for the year ended December 31, 2015 , are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Cnsmr Total Beg. Balance, 12/31/14 $ 12,664 $ 9,245 $ 3,384 $ 989 $ 608 $ 231 $ 27,121 Provision 909 1,805 496 72 (83 ) 68 3,267 Recoveries 74 279 25 — 15 16 409 Less: Charge offs 133 1,571 — — — 85 1,789 Ending Balance, 12/31/15 $ 13,514 $ 9,758 $ 3,905 $ 1,061 $ 540 $ 230 $ 29,008 Ending allowance balance allotted to: Loans individually evaluated for impairment $ 186 $ 1,078 $ 499 $ — $ 5 $ 24 $ 1,792 Loans collectively evaluated for impairment $ 13,328 $ 8,680 $ 3,406 $ 1,061 $ 535 $ 206 $ 27,216 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at December 31, are summarized as follows: (Dollars in thousands) 2016 2015 Land $ 5,201 $ 4,614 Bank premises and leasehold improvements 37,390 33,597 Computer software and equipment 9,250 9,014 Furniture, fixtures and equipment 18,243 16,649 Total premises and equipment, before accumulated depreciation 70,084 63,874 Less accumulated depreciation (36,544 ) (33,321 ) Total premises and equipment, net of accumulated depreciation $ 33,540 $ 30,553 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2016 , minimum lease payments for these operating leases were as follows: (Dollars in thousands) Payable in: 2017 $ 1,702 2018 1,452 2019 936 2020 716 2021 717 Thereafter 5,455 Total minimum lease payments $ 10,978 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | Deposits at December 31, are summarized as follows: (Dollars in thousands) 2016 2015 Non-interest bearing demand deposits $ 646,115 $ 570,589 Interest bearing checking 372,696 313,674 Savings 178,637 167,304 Money market 844,216 692,114 Certificates of deposit $250,000 or less 125,580 129,993 Certificates of deposit more than $250,000 42,315 37,704 Total non-brokered deposits 2,209,559 1,911,378 Brokered deposits (1) 59,362 106,770 Total deposits $ 2,268,921 $ 2,018,148 (1) Primarily brokered CDs $250,000 and under. |
Schedule of Maturities of Time Deposits | The following table shows the scheduled maturities of certificates of deposit (including brokered deposits with weighted average remaining lives of approximately 1.5 years and 1.4 years as of December 31, 2016 and 2015 , respectively): (Dollars in thousands) December 31, 2016 December 31, 2015 Due in less than twelve months $ 136,695 $ 176,792 Due in over one year through two years 38,344 37,729 Due in over two years through three years 32,652 23,429 Due in over three years through four years 8,525 26,501 Due in over four years through five years 5,721 5,983 Due in over five years 5,320 4,033 Total certificates of deposit $ 227,257 $ 274,467 |
Borrowed Funds and Subordinat33
Borrowed Funds and Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds and Debentures | Borrowed funds and subordinated debt outstanding at December 31, are summarized as follows: 2016 2015 2014 (Dollars in thousands) Amount Average Rate Amount Average Rate Amount Average Rate FHLB borrowings $ 10,671 0.80 % $ 40,671 0.51 % $ 58,900 0.30 % Other borrowings — — % 13,000 0.60 % — — % Total borrowed funds $ 10,671 0.80 % $ 53,671 0.53 % $ 58,900 0.30 % Subordinated debt 14,834 6.26 % 14,822 6.16 % 10,825 10.88 % Total borrowed funds and subordinated debt $ 25,505 3.98 % $ 68,493 1.75 % $ 69,725 1.94 % |
Schedule of Average Balances and Rates for Borrowed Funds | The following table summarizes the average balance and average cost of borrowed funds for the years indicated. Year ended December 31, 2016 2015 2014 (Dollars in thousands) Average Balance Average Cost Average Balance Average Cost Average Balance Average Cost FHLB advances $ 14,551 0.55 % $ 10,731 0.36 % $ 12,085 0.31 % Other borrowings 107 0.61 % 36 0.61 % 28 0.56 % Total borrowed funds $ 14,658 0.55 % $ 10,767 0.36 % $ 12,113 0.31 % |
Derivatives and Hedging Activ34
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives, Fair Value and Classification | The table below presents the fair value and classification of the Company’s derivative financial instruments for the periods presented: As of December 31, 2016 As of December 31, 2015 (Dollars in thousands) Derivatives Assets Derivatives Liabilities Derivatives Assets Derivatives Liabilities Back-to-Back Swaps $ 610 $ 610 $ 16 $ 16 |
Schedule of Derivatives-Offsetting Assets and Liabilities | As of December 31, 2016 Gross Amounts of Recognized Asset/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross amounts not offset in the Statement of Financial Position (Dollars in thousands) Financial Instruments Cash collateral (Received)/Posted Net Amount Asset Derivatives Back-to-Back Swaps $ 610 — $ 610 — — $ 610 Liability Derivatives Back-to-Back Swaps $ 610 — $ 610 — — $ 610 As of December 31, 2015 Gross Amounts of Recognized Asset/Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Gross amounts not offset in the Statement of Financial Position (Dollars in thousands) Financial Instruments Cash collateral (Received)/Posted Net Amount Asset Derivatives Back-to-Back Swaps $ 16 — $ 16 — — $ 16 Liability Derivatives Back-to-Back Swaps $ 16 — $ 16 — — $ 16 |
Committments, Contingencies a35
Committments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Risk | Financial instruments with off-balance sheet credit risk at December 31, 2016 and 2015 are as follows: (Dollars in thousands) 2016 2015 Commitments to originate loans $ 37,753 $ 48,641 Commitments to originate residential mortgages loans for sale 1,946 1,516 Commitments to sell residential mortgage loans 3,115 3,225 Standby letters of credit 21,497 22,712 Unadvanced portions of commercial real estate loans 56,952 13,128 Unadvanced portions of commercial loans and lines 399,833 337,970 Unadvanced portions of construction loans (commercial & residential) 151,757 138,162 Unadvanced portions of home equity lines 82,884 73,397 Unadvanced portions of consumer loans 3,043 2,999 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company began phase in of the Basel III Rules in 2015. Management believes, as of December 31, 2016 , that the Company and the Bank meet all capital adequacy requirements to which they were subject. As of December 31, 2016 and December 31, 2015 , the Company met the definition of "well capitalized" under the applicable Federal Reserve Board regulations and the Bank qualified as "well capitalized" under the prompt corrective action regulations of Basel III and the FDIC. The current regulatory requirements, and the Company's and the Bank's actual capital amounts and ratios are presented as of December 31, 2016 and December 31, 2015 in the table below. Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 The Company Total Capital (to risk weighted assets) $ 252,552 11.79 % $ 171,337 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 209,887 9.80 % 128,503 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 209,887 8.34 % 100,628 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 209,887 9.80 % 96,377 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 250,893 11.71 % $ 171,332 8.00 % $ 214,166 10.00 % Tier 1 Capital (to risk weighted assets) 223,062 10.42 % 128,499 6.00 % 171,332 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 223,062 8.87 % 100,627 4.00 % 125,784 5.00 % Common equity tier 1 capital (to risk-weighted assets) 223,062 10.42 % 96,374 4.50 % 139,208 6.50 % Actual Minimum Capital for Capital Adequacy Purposes Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2015 The Company Total Capital (to risk weighted assets) $ 212,871 10.70 % $ 159,198 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 172,397 8.66 % 119,398 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 172,397 7.73 % 89,173 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 172,397 8.66 % 89,549 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 209,670 10.54 % $ 159,189 8.00 % $ 198,987 10.00 % Tier 1 Capital (to risk weighted assets) 184,019 9.25 % 119,392 6.00 % 159,189 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 184,019 8.25 % 89,172 4.00 % 111,465 5.00 % Common equity tier 1 capital (to risk-weighted assets) 184,019 9.25 % 89,544 4.50 % 129,341 6.50 % ____________________ (1) Before application of the capital conservation buffer of 0.625% as of December 31, 2016 , see discussion below. (2) For the Bank to qualify as “well capitalized," it must maintain at least the minimum ratios listed. These "well capitalized" requirements do not apply to the Company. |
Schedule of Basel III Minimum Requirements at Full Phase In [Table Text Block] | The Basel III minimum capital ratio requirements as applicable to the Company and the Bank in 2019 after the full phase-in period are summarized in the table below: Basel III Minimum for Capital Adequacy Purposes Basel III Additional Capital Conservation Buffer Basel III "Adequate" Ratio with Capital Conservation Buffer Total Capital (to risk weighted assets) 8.00% 2.50% 10.50% Tier 1 Capital (to risk weighted assets) 6.00% 2.50% 8.50% Tier 1 Capital (to average assets) or Leverage Ratio 4.00% —% 4.00% Common equity tier 1 capital (to risk-weighted assets) 4.50% 2.50% 7.00% |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following table provides a reconciliation of the changes in the supplemental retirement benefit obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2016 2015 2014 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 2,654 $ 2,844 $ 2,889 Net periodic benefit cost: Interest cost 124 133 128 Actuarial loss (gain) — (47 ) 103 Net periodic benefit costs $ 124 $ 86 $ 231 Benefits paid (276 ) (276 ) (276 ) Benefit obligation at end of year $ 2,502 $ 2,654 $ 2,844 Funded status: Accrued liability as of December 31 $ (2,502 ) $ (2,654 ) $ (2,844 ) Discount rate used for benefit obligation (1) 4.75 % 4.75 % 4.50 % (1) Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Schedule of Expected Benefit Payments | Benefits expected to be paid in each of the next five years and in the aggregate five years thereafter: (Dollars in thousands) 2017 $ 276 2018 276 2019 276 2020 276 2021 276 2022-2026 1,379 |
Supplemental Life Insurance Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following table provides a reconciliation of the changes in the supplemental life insurance plan obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2016 2015 2014 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 1,792 $ 1,723 $ 1,576 Net periodic benefit cost: Service cost (9 ) (56 ) (38 ) Interest cost 88 86 74 Actuarial loss 24 39 111 Total net period cost $ 103 $ 69 $ 147 Benefit obligation at end of year $ 1,895 $ 1,792 $ 1,723 Funded status: Accrued liability as of December 31 $ (1,895 ) $ (1,792 ) $ (1,723 ) Discount rate used for benefit obligation (1) 4.75 % 4.75 % 4.50 % (1) Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, including the fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the years indicated. Stock Option Awards 2016 2015 2014 Options granted 31,047 27,376 31,229 Term in years 10.0 10.0 10.0 Average assumptions used in the model: Expected volatility 42 % 47 % 47 % Expected dividend yield 3.02 % 2.90 % 2.88 % Expected life in years 7.0 7.0 7.0 Risk-free interest rate 1.91 % 1.95 % 2.19 % Market price on date of grant $ 21.91 $ 21.03 $ 20.29 Per share weighted average fair value $ 7.91 $ 8.51 $ 8.32 Fair value as a percentage of market value at grant date 36 % 40 % 41 % |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option transactions during the year ended December 31, 2016 are summarized as follows: (Dollars in thousands, except per share data) Options Weighted Average Exercise Price Per Share Weighted Average Remaining Life in Years Aggregate Intrinsic Value Outstanding December 31, 2015 300,969 $ 15.82 4.2 $ 2,116 Granted 31,047 21.91 Exercised 71,544 12.77 Forfeited/Expired 693 18.54 Outstanding December 31, 2016 259,779 $ 17.38 4.5 $ 5,243 Vested and Exercisable at December 31, 2016 165,745 $ 15.80 2.6 $ 3,606 |
Schedule of Unvested Options | Stock option activity during the year ended December 31, 2016 for unvested options are summarized as follows: Unvested Options Options Weighted Average Grant Date Fair Value Unvested December 31, 2015 95,869 $ 7.64 Granted 31,047 7.91 Vested 32,368 7.31 Forfeited 514 8.02 Unvested December 31, 2016 94,034 $ 7.84 |
Schedule of Restricted Stock Awards Granted | The table below provides a summary of restricted stock awards granted in the years indicated. Restricted Stock Awards 2016 2015 2014 Two Year Vesting 9,060 7,276 6,660 Four Year Vesting 18,298 17,775 19,167 Performance-Based Vesting 35,071 30,262 33,017 Total Restricted Stock Awards 62,429 55,313 58,844 Weighted average grant date fair value $ 21.90 $ 21.03 $ 20.29 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table sets forth a summary of the activity for the Company’s restricted stock awards. (Dollars in thousands, except per share data) Restricted Stock Weighted Average Grant Price Per Share Weighted Average Remaining Life In Years Aggregate Intrinsic Value Unvested December 31, 2015 144,717 $ 19.22 1.0 $ 3,304 Granted 62,429 21.90 Vested/released 64,036 18.46 Forfeited 1,530 20.51 Unvested December 31, 2016 141,580 $ 20.73 1.4 $ 5,318 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for the years ended December 31, were calculated using the asset and liability method as follows: (Dollars in thousands) 2016 2015 2014 Current tax expense: Federal $ 8,178 $ 6,808 $ 5,814 State 2,244 1,712 1,681 Total current tax expense 10,422 8,520 7,495 Deferred tax (benefit)/ expense: Federal (984 ) (284 ) 85 State (277 ) (122 ) 5 Total deferred tax (benefit)/ expense (1,261 ) (406 ) 90 Total income tax expense $ 9,161 $ 8,114 $ 7,585 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate ( 35% ) for 2016 and 2015 and ( 34% ) for 2014 to income before taxes as follows: (Dollars in thousands) 2016 2015 2014 Computed income tax expense at statutory rate $ 9,769 $ 8,492 $ 7,560 State income taxes, net of federal tax benefit 1,279 1,034 1,113 Tax-exempt income, net of disallowance (1,559 ) (1,226 ) (1,060 ) Bank-owned life insurance income, net (261 ) (251 ) (140 ) Other (67 ) 65 112 Total income tax expense $ 9,161 $ 8,114 $ 7,585 Effective income tax rate 32.8 % 33.4 % 34.1 % |
Schedule of Deferred Tax Assets and Liabilities | At December 31, the tax effects of each type of income and expense item that give rise to deferred taxes are: (Dollars in thousands) 2016 2015 Deferred tax asset: Allowance for loan losses $ 12,753 $ 11,800 Depreciation 3,463 3,103 Net unrealized loss on investment securities 444 — Other-than-temporary impairment on equity securities 22 22 Supplemental employee retirement plans 1,018 1,080 Non-accrual interest 1,145 1,393 Stock-based compensation expense 1,019 873 Other 390 163 Total 20,254 18,434 Deferred tax liability: Goodwill 2,301 2,300 Net unrealized gains on investments securities — 1,204 Deferred origination costs 933 812 Other — 7 Total 3,234 4,323 Net deferred tax asset $ 17,020 $ 14,111 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the years ended December 31st: 2016 2015 2014 Basic weighted average common shares outstanding 10,966,333 10,323,016 10,118,762 Dilutive shares 73,178 66,918 90,481 Diluted weighted average common shares outstanding 11,039,511 10,389,934 10,209,243 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: December 31, 2016 Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Debt securities $ 362,147 $ — $ 362,147 $ — Equity securities 12,643 12,643 — — FHLB Stock 2,094 — — 2,094 Interest-rate swaps 610 — 610 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 3,481 — — 3,481 Liabilities measured on a recurring basis: Interest-rate swaps $ 610 — $ 610 — December 31, Fair Value Measurements using: (Dollars in thousands) Fair Value (level 1) (level 2) (level 3) Assets measured on a recurring basis: Debt securities $ 288,701 $ — $ 288,701 $ — Equity securities 11,657 11,657 — — FHLB Stock 3,050 — — 3,050 Interest-rate swaps 16 — 16 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,516 — — 2,516 Liabilities measured on a recurring basis: Interest-rate swaps $ 16 — $ 16 — |
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 non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of December 31, 2016 . (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a recurring basis: FHLB Stock $2,094 FHLB State Par Value N/A N/A Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $3,481 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 consolidated balance sheet at the dates indicated are summarized as follows: December 31, 2016 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 $ 1,569 $ 1,569 $ — $ 1,569 $ — Loans, net 1,991,387 1,997,887 — — 1,997,887 Financial liabilities: Certificates of deposit (including brokered) 227,257 226,536 — 226,536 — Borrowed funds 10,671 10,670 — 10,670 — Subordinated debt 14,834 14,011 — — 14,011 December 31, 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 $ 1,709 $ 1,709 $ — $ 1,709 $ — Loans, net 1,830,954 1,845,009 — — 1,845,009 Financial liabilities: Certificates of deposit (including brokered) 274,467 273,419 — 273,419 — Borrowed funds 53,671 53,670 — 53,670 — Subordinated debt 14,822 13,961 — — 13,961 |
Parent Company Only Financial42
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Balance Sheets December 31, (Dollars in thousands) 2016 2015 Assets Cash $ 497 $ 2,737 Investment in subsidiaries 227,960 191,949 Other assets 1,243 546 Total assets $ 229,700 $ 195,232 Liabilities and Stockholders’ Equity Liabilities Subordinated debt $ 14,834 $ 14,822 Accrued interest payable 78 78 Other liabilities 2 5 Total liabilities 14,914 14,905 Stockholders' equity: Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued — — Common stock $0.01 par value per share; 20,000,000 shares authorized; 11,475,742 shares issued and outstanding at December 31, 2016 (including 141,580 shares of unvested participating restricted awards) and 10,377,787 shares issued and outstanding at December 31, 2015 (including 144,717 shares of unvested participating restricted awards) 115 104 Additional paid-in capital 85,421 61,008 Retained earnings 130,008 116,941 Accumulated other comprehensive income (758 ) 2,274 Total stockholders’ equity 214,786 180,327 Total liabilities and stockholders’ equity $ 229,700 $ 195,232 |
Schedule of Condensed Income Statement | Statements of Income For the years ended December 31, (Dollars in thousands) 2016 2015 2014 Equity in undistributed net income of subsidiaries $ 19,313 $ 17,277 $ 13,744 Dividends distributed by subsidiaries 150 — 1,850 Loss distributed by divested subsidiary — (210 ) — Other income — 17 — Total income 19,463 17,084 15,594 Interest expense 928 1,071 1,177 Other operating expenses 194 500 194 Total operating expenses 1,122 1,571 1,371 Income before income taxes 18,341 15,513 14,223 Benefit from income taxes (410 ) (635 ) (428 ) Net income $ 18,751 $ 16,148 $ 14,651 |
Schedule of Condensed Cash Flow Statement | Parent Company Only Financial Statements Statements of Cash Flows For the years ended December 31, (Dollars in thousands) 2016 2015 2014 Cash flows from operating activities: Net income $ 18,751 $ 16,148 $ 14,651 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (19,313 ) (17,277 ) (13,744 ) Payment from subsidiary bank for stock compensation expense 2,348 1,791 1,704 Changes in: Other assets (697 ) (36 ) (277 ) Other liabilities (3 ) (12 ) (3 ) Payments for employee taxes, restricted shares net share-settled (284 ) — — Subordinated debt issuance costs 12 (178 ) — Accrued interest payable — (292 ) — Net cash provided by operating activities 814 144 2,331 Cash flows from investing activities Investment in subsidiary (19,730 ) 781 — Net cash used in (provided by) investing activities (19,730 ) 781 — Cash flows from financing activities: Repayment of subordinated debt — (10,825 ) — Proceeds from the issuance of subordinated debt — 15,000 — Cash dividends paid (5,684 ) (5,158 ) (4,853 ) Proceeds from issuance of common stock 21,183 1,448 1,283 Proceeds from exercise of stock options 388 431 889 Tax benefit from stock-based compensation 789 217 320 Net cash provided by (used in) financing activities 16,676 1,113 (2,361 ) Net increase (decrease) in cash and cash equivalents (2,240 ) 2,038 (30 ) Cash and cash equivalents, beginning of year 2,737 699 729 Cash and cash equivalents, end of year $ 497 $ 2,737 $ 699 |
Quarterly Results of Operatio43
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2016 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 22,465 $ 22,632 $ 23,191 $ 24,027 Interest expense 1,382 1,343 1,374 1,424 Net interest income 21,083 21,289 21,817 22,603 Provision for loan losses 850 267 1,386 490 Net interest income after provision for loan losses 20,233 21,022 20,431 22,113 Non-interest income 3,204 3,519 3,402 3,514 Net gains on sales of investment securities 2 63 546 191 Non-interest expense 16,869 17,542 17,414 18,503 Income before income taxes 6,570 7,062 6,965 7,315 Provision for income taxes 2,257 2,291 2,251 2,362 Net income $ 4,313 $ 4,771 $ 4,714 $ 4,953 Basic earnings per share $ 0.41 $ 0.45 $ 0.41 $ 0.43 Diluted earnings per share $ 0.41 $ 0.45 $ 0.41 $ 0.43 2015 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 19,839 $ 20,437 $ 21,224 $ 21,971 Interest expense 1,385 1,253 1,264 1,275 Net interest income 18,454 19,184 19,960 20,696 Provision for loan losses 625 1,225 250 1,167 Net interest income after provision for loan losses 17,829 17,959 19,710 19,529 Non-interest income 3,125 3,222 3,177 3,615 Net gains on sales of investment securities 900 456 7 465 Non-interest expense 16,210 16,267 16,548 16,707 Income before income taxes 5,644 5,370 6,346 6,902 Provision for income taxes 2,024 1,855 2,054 2,181 Net income $ 3,620 $ 3,515 $ 4,292 $ 4,721 Basic earnings per share $ 0.35 $ 0.34 $ 0.41 $ 0.46 Diluted earnings per share $ 0.35 $ 0.34 $ 0.41 $ 0.45 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)branchespaymentsegment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 31, 2000branches | |
Summary of Significant Accounting Policies [Line Items] | ||||
Number of branches | branches | 23 | |||
Reportable operating segments | segment | 1 | |||
Bank-owned life insurance | $ 28,765 | $ 28,018 | ||
Goodwill | 5,656 | 5,656 | ||
Number of offices related to the goodwill in acquisition | branches | 2 | |||
Investment assets under management | 725,300 | 678,400 | ||
Tax benefit from stock compensation | 789 | 217 | $ 320 | |
Total other comprehensive income (loss) | $ (3,032) | (1,493) | 1,622 | |
Bank premises and leasehold improvements | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Bank premises and leasehold improvements | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 39 years | |||
Computer software and equipment | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Computer software and equipment | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 5 years | |||
Furniture, fixtures and equipment | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Furniture, fixtures and equipment | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Residential | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Early payment default period | payment | 4 | |||
Lines of Credit and Demand Notes | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Period that loan deferred income is amortized | 3 years | |||
Lines of Credit and Demand Notes | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Period that loan deferred income is amortized | 5 years | |||
Additional Paid-in Capital | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Tax benefit from stock compensation | $ 789 | $ 217 | $ 320 | |
Equity investments | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Total other comprehensive income (loss) | $ 379 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Investment securities at fair value | $ 374,790 | $ 300,358 | ||
Securities pledged as collateral | 361,200 | 286,000 | ||
Debt Securities | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | 365,578 | 286,838 | ||
Unrealized gains | 1,516 | 3,159 | ||
Unrealized losses | 4,947 | 1,296 | ||
Investment securities at fair value | 362,147 | 288,701 | ||
Federal agency obligations | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | [1] | 74,682 | 78,626 | |
Unrealized gains | [1] | 432 | 352 | |
Unrealized losses | [1] | 45 | 153 | |
Investment securities at fair value | [1] | 75,069 | 78,825 | |
Residential federal agency MBS | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | [1] | 94,818 | 75,105 | |
Unrealized gains | [1] | 96 | 406 | |
Unrealized losses | [1] | 1,561 | 648 | |
Investment securities at fair value | [1] | 93,353 | 74,863 | |
Collateralized mortgage obligations | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Investment securities at fair value | 36,700 | 20,800 | ||
Commercial federal agency MBS | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | [1] | 71,993 | 23,908 | |
Unrealized gains | [1] | 15 | 0 | |
Unrealized losses | [1] | 1,730 | 363 | |
Investment securities at fair value | [1] | 70,278 | 23,545 | |
Municipal securities | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | 112,401 | 96,189 | ||
Unrealized gains | 922 | 2,357 | ||
Unrealized losses | 1,520 | 35 | ||
Investment securities at fair value | 111,803 | 98,511 | ||
Tax exempt interest earned on municipal securities | 3,600 | 2,900 | $ 2,400 | |
Average balance tax exempt securities | 100,000 | 81,200 | ||
Corporate bonds | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | 10,734 | 10,257 | ||
Unrealized gains | 51 | 44 | ||
Unrealized losses | 90 | 95 | ||
Investment securities at fair value | 10,695 | 10,206 | ||
Certificates of Deposit | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | [2] | 950 | 2,753 | |
Unrealized gains | [2] | 0 | 0 | |
Unrealized losses | [2] | 1 | 2 | |
Investment securities at fair value | [2] | 949 | 2,751 | |
Equity investments | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | 10,413 | 10,043 | ||
Unrealized gains | 2,532 | 1,966 | ||
Unrealized losses | 302 | 352 | ||
Investment securities at fair value | $ 12,643 | 11,657 | ||
Percent of portfolio invested in financial services | 22.00% | |||
Total available for sale securities, at fair value | ||||
Available-for-sale Securities, Gross Unrealized Gain (Loss) [Abstract] | ||||
Amortized cost | $ 375,991 | 296,881 | ||
Unrealized gains | 4,048 | 5,125 | ||
Unrealized losses | 5,249 | 1,648 | ||
Investment securities at fair value | $ 374,790 | $ 300,358 | ||
[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 (“FFCB”), 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 - Continuous Loss P
Investments - Continuous Loss Position (Details) $ in Thousands | Dec. 31, 2016USD ($)investments | Dec. 31, 2015USD ($)investments |
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 210,453 | $ 89,224 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 4,642 | 1,255 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 10,751 | 11,639 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 607 | 393 |
Investments Temporarily Impaired, Fair Value | 221,204 | 100,863 |
Investments Temporarily Impaired, Unrealized Losses | $ 5,249 | $ 1,648 |
Number of securities in loss position | investments | 203 | 96 |
Federal agency obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 13,956 | $ 27,420 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 45 | 153 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 0 | 0 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 0 | 0 |
Investments Temporarily Impaired, Fair Value | 13,956 | 27,420 |
Investments Temporarily Impaired, Unrealized Losses | $ 45 | $ 153 |
Number of securities in loss position | investments | 3 | 8 |
Residential federal agency MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 68,138 | $ 20,517 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 1,236 | 275 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 8,008 | 10,935 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 325 | 373 |
Investments Temporarily Impaired, Fair Value | 76,146 | 31,452 |
Investments Temporarily Impaired, Unrealized Losses | $ 1,561 | $ 648 |
Number of securities in loss position | investments | 31 | 14 |
Commercial federal agency MBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 60,060 | $ 23,545 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 1,730 | 363 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 0 | 0 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 0 | 0 |
Investments Temporarily Impaired, Fair Value | 60,060 | 23,545 |
Investments Temporarily Impaired, Unrealized Losses | $ 1,730 | $ 363 |
Number of securities in loss position | investments | 18 | 9 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 60,436 | $ 6,988 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 1,520 | 33 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 0 | 261 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 0 | 2 |
Investments Temporarily Impaired, Fair Value | 60,436 | 7,249 |
Investments Temporarily Impaired, Unrealized Losses | $ 1,520 | $ 35 |
Number of securities in loss position | investments | 107 | 13 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 5,729 | $ 4,574 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 90 | 78 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 0 | 419 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 0 | 17 |
Investments Temporarily Impaired, Fair Value | 5,729 | 4,993 |
Investments Temporarily Impaired, Unrealized Losses | $ 90 | $ 95 |
Number of securities in loss position | investments | 37 | 37 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 949 | $ 1,976 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 1 | 2 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 0 | 0 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 0 | 0 |
Investments Temporarily Impaired, Fair Value | 949 | 1,976 |
Investments Temporarily Impaired, Unrealized Losses | $ 1 | $ 2 |
Number of securities in loss position | investments | 4 | 10 |
Equity investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments Temporarily Impaired, Less than 12 months, Fair Value | $ 1,185 | $ 4,204 |
Investments Temporarily Impaired, Less than 12 months, Unrealized Losses | 20 | 351 |
Investments Temporarily Impaired, 12 months or longer, Fair Value | 2,743 | 24 |
Investments Temporarily Impaired,12 months or longer, Unrealized Losses | 282 | 1 |
Investments Temporarily Impaired, Fair Value | 3,928 | 4,228 |
Investments Temporarily Impaired, Unrealized Losses | $ 302 | $ 352 |
Number of securities in loss position | investments | 3 | 5 |
Investments - Maturities (Detai
Investments - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities at fair value | $ 374,790 | $ 300,358 |
Callable debt securities, amortized cost | 49,200 | |
Callable debt securities, fair value | 49,000 | |
Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Within One Year | 12,898 | |
Fair Value, Within One Year | 12,937 | |
Amortized Cost Basis, After One, But Within Five Years | 98,184 | |
Fair Value, After One, But Within Five Years | 98,807 | |
Amortized Cost, After Five, But Within Ten Years | 136,160 | |
Fair Value, After Five, But Within Ten Years | 133,755 | |
Amortized Cost Basis, After Ten Years | 118,336 | |
Fair Value, After Ten Years | 116,648 | |
Amortized cost | 365,578 | 286,838 |
Investment securities at fair value | $ 362,147 | $ 288,701 |
Investments - Sales (Details)
Investments - Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Investments, Debt and Equity Securities [Abstract] | ||||
Amortized cost of available-for-sale investments sold, including pending trades | [1] | $ 4,299 | $ 23,287 | $ 23,752 |
Gross realized gains on sales | 803 | 1,990 | 1,654 | |
Gross realized losses on sales | (1) | (162) | (35) | |
Proceeds from sale of available-for-sale securities, Including pending trades | $ 5,101 | $ 25,115 | $ 25,371 | |
[1] | Amortized cost of investments sold is determined on a specific identification basis. |
Loans - Balance by Class of Loa
Loans - Balance by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | $ 2,024,798 | $ 1,861,775 | ||
Deferred loan origination fees, net | (2,069) | (1,813) | ||
Total loans | 2,022,729 | 1,859,962 | ||
Allowance for loan losses | (31,342) | (29,008) | $ (27,121) | $ (26,967) |
Net loans | 1,991,387 | 1,830,954 | ||
Commercial | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 1,742,328 | 1,598,467 | ||
Commercial real estate | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 1,038,082 | 936,921 | ||
Allowance for loan losses | (14,902) | (13,514) | (12,664) | |
Commercial and industrial | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 490,799 | 458,553 | ||
Allowance for loan losses | (11,204) | (9,758) | (9,245) | |
Commercial construction | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 213,447 | 202,993 | ||
Allowance for loan losses | (3,406) | (3,905) | (3,384) | |
Retail | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 282,470 | 263,308 | ||
Residential | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 180,560 | 169,188 | ||
Allowance for loan losses | (960) | (1,061) | (989) | |
Home Equity | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 91,065 | 83,373 | ||
Allowance for loan losses | (634) | (540) | (608) | |
Consumer | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 10,845 | 10,747 | ||
Allowance for loan losses | $ (236) | $ (230) | $ (231) |
Loans - Loan Categories Narrati
Loans - Loan Categories Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)payment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Loans by Loan Classification [Line Items] | |||
Outstanding loan balances to related parties | $ 18.6 | $ 17.5 | |
Unadvanced lines of credit available to related parties | 9.8 | 10.6 | |
New loans and net increases to loan balances to related parties during period | 2.3 | 6.7 | |
Principal paydowns on related party loans | $ 1.9 | 3.3 | |
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 | $ 85.2 | 62.3 | |
Participations loans sold that are still serviced | 62.3 | 52.7 | |
Tax exempt interest income on qualified commercial loans | 2.1 | 1.6 | $ 1.4 |
Average tax exempt loan balances | $ 63.9 | 50.9 | |
Residential | |||
Schedule of Loans by Loan Classification [Line Items] | |||
Early payment default period | payment | 4 | ||
Amount of loans serviced for others | $ 18.7 | $ 18.5 | |
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 loans | Minimum | |||
Schedule of Loans by Loan Classification [Line Items] | |||
Repayment period, term of loan | 3 years | ||
Home equity loans | Maximum | |||
Schedule of Loans by Loan Classification [Line Items] | |||
Repayment period, term of loan | 15 years | ||
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 | ||
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 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 430,251 | $ 414,629 |
Commercial real estate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 247,664 | 281,802 |
Residential | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 170,247 | 118,855 |
Home Equity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 12,340 | $ 13,972 |
Allowance For Loan Losses - Eva
Allowance For Loan Losses - Evaluation Method (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | $ 31,796 | $ 23,688 |
Loans collectively evaluated for impairment | 1,993,002 | 1,838,087 |
Gross loans | 2,024,798 | 1,861,775 |
Commercial real estate | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 14,261 | 12,287 |
Loans collectively evaluated for impairment | 1,023,821 | 924,634 |
Gross loans | 1,038,082 | 936,921 |
Commercial and industrial | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 13,372 | 7,810 |
Loans collectively evaluated for impairment | 477,427 | 450,743 |
Gross loans | 490,799 | 458,553 |
Commercial construction | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 3,364 | 3,032 |
Loans collectively evaluated for impairment | 210,083 | 199,961 |
Gross loans | 213,447 | 202,993 |
Residential | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 289 | 366 |
Loans collectively evaluated for impairment | 180,271 | 168,822 |
Gross loans | 180,560 | 169,188 |
Home Equity | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 509 | 169 |
Loans collectively evaluated for impairment | 90,556 | 83,204 |
Gross loans | 91,065 | 83,373 |
Consumer | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 1 | 24 |
Loans collectively evaluated for impairment | 10,844 | 10,723 |
Gross loans | $ 10,845 | $ 10,747 |
Allowance For Loan Losses - Adv
Allowance For Loan Losses - Adversely Classified Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)relationship | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 2,024,798 | $ 1,861,775 |
Adversely classified loans to total loans | 1.70% | 1.33% |
Increase (decrease) in loans | $ 162,800 | $ 187,400 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 1,742,328 | 1,598,467 |
Significant Relationships Subsequently Downgraded in Period | relationship | 3 | |
Significant Relationships Downgraded in Period, Value | $ 14,900 | |
Large accruing-impaired commercial relationship downgraded in period | 2 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 1,038,082 | 936,921 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 490,799 | 458,553 |
Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 213,447 | 202,993 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 180,560 | 169,188 |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 91,065 | 83,373 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 10,845 | 10,747 |
Criticized | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Increase (decrease) in loans | 9,600 | |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 34,247 | 24,752 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 16,003 | 12,487 |
Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 12,770 | 8,670 |
Substandard | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 3,364 | 1,776 |
Substandard | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,414 | 1,278 |
Substandard | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 666 | 503 |
Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 30 | 38 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 99 | 11 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 99 | 0 |
Doubtful | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 11 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 2 | 8 |
Loss | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 2 | 3 |
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 | 5 |
Loss | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Not Adversely Classified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,990,450 | 1,837,004 |
Not Adversely Classified | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,022,079 | 924,434 |
Not Adversely Classified | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 477,928 | 449,880 |
Not Adversely Classified | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 210,083 | 201,217 |
Not Adversely Classified | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 179,146 | 167,910 |
Not Adversely Classified | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 90,399 | 82,865 |
Not Adversely Classified | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 10,815 | $ 10,698 |
Allowance For Loan Losses - Pas
Allowance For Loan Losses - Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
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 | |
Non-accrual loans | $ 9,485 | $ 13,845 |
Total Past Due Loans | 11,534 | 12,632 |
Current Loans | 2,013,264 | 1,849,143 |
Gross loans | $ 2,024,798 | $ 1,861,775 |
The ratio of non-accrual loans to total loans | 0.47% | 0.74% |
Additional funding commitments for loans on non-accrual | $ 100 | |
Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Non-accrual loans | 4,876 | $ 8,506 |
Total Past Due Loans | 8,315 | 6,429 |
Current Loans | 1,029,767 | 930,492 |
Gross loans | 1,038,082 | 936,921 |
Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Non-accrual loans | 3,174 | 4,323 |
Total Past Due Loans | 1,815 | 4,150 |
Current Loans | 488,984 | 454,403 |
Gross loans | 490,799 | 458,553 |
Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Non-accrual loans | 519 | 335 |
Total Past Due Loans | 0 | 588 |
Current Loans | 213,447 | 202,405 |
Gross loans | 213,447 | 202,993 |
Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Non-accrual loans | 289 | 366 |
Total Past Due Loans | 747 | 691 |
Current Loans | 179,813 | 168,497 |
Gross loans | 180,560 | 169,188 |
Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Non-accrual loans | 616 | 288 |
Total Past Due Loans | 539 | 716 |
Current Loans | 90,526 | 82,657 |
Gross loans | 91,065 | 83,373 |
Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Non-accrual loans | 11 | 27 |
Total Past Due Loans | 118 | 58 |
Current Loans | 10,727 | 10,689 |
Gross loans | 10,845 | 10,747 |
Loans 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 7,272 | 4,578 |
Loans 30-59 Days Past Due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 5,993 | 1,641 |
Loans 30-59 Days Past Due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 267 | 1,332 |
Loans 30-59 Days Past Due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 581 |
Loans 30-59 Days Past Due | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 648 | 354 |
Loans 30-59 Days Past Due | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 270 | 634 |
Loans 30-59 Days Past Due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 94 | 36 |
Loans 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 940 | 2,529 |
Loans 60-89 Days Past Due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 923 | 1,532 |
Loans 60-89 Days Past Due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 4 | 693 |
Loans 60-89 Days Past Due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 0 |
Loans 60-89 Days Past Due | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 280 |
Loans 60-89 Days Past Due | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 9 |
Loans 60-89 Days Past Due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 13 | 15 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 3,322 | 5,525 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,399 | 3,256 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,544 | 2,125 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 7 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 99 | 57 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 269 | 73 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 11 | 7 |
Not Adversely Classified | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,990,450 | 1,837,004 |
Non-accrual loans not adversely classified | 220 | 402 |
Not Adversely Classified | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,022,079 | 924,434 |
Not Adversely Classified | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 477,928 | 449,880 |
Not Adversely Classified | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 210,083 | 201,217 |
Not Adversely Classified | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 179,146 | 167,910 |
Not Adversely Classified | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 90,399 | 82,865 |
Not Adversely Classified | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | $ 10,815 | $ 10,698 |
Allowance For Loan Losses - Int
Allowance For Loan Losses - Interest Income Lost on Nonaccrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Income in accordance with original loan terms | $ 1,585 | $ 1,052 | $ 1,007 |
Less income recognized | 722 | 426 | 323 |
Reduction in interest income | $ 863 | $ 626 | $ 684 |
Allowance For Loan Losses - Imp
Allowance For Loan Losses - Impaired Loans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Total accruing impaired loans | $ 22,400 | $ 10,100 | |
Impaired non-accrual loans | 9,400 | 13,600 | |
Interest income that was not recognized on loans that were deem impaired | 858 | 688 | $ 647 |
Additional funding commitments on impaired loans | 602 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 34,764 | 28,652 | |
Total recorded investment in impaired loans | 31,796 | 23,688 | |
Recorded investment with no allowance | 25,659 | 19,100 | |
Recorded investment with allowance | 6,137 | 4,588 | |
Related allowance | 2,621 | 1,792 | |
Average recorded investment | 26,586 | 26,069 | 29,292 |
Interest income recognized | $ 701 | 377 | 489 |
Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Large accruing-impaired commercial relationship downgraded in period | 2 | ||
Larger accruing-impaired TDR commercial relationship downgraded in period, net carrying value | $ 10,500 | ||
Commercial real estate | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 16,010 | 14,903 | |
Total recorded investment in impaired loans | 14,261 | 12,287 | |
Recorded investment with no allowance | 12,444 | 11,734 | |
Recorded investment with allowance | 1,817 | 553 | |
Related allowance | 370 | 186 | |
Average recorded investment | 12,988 | 13,827 | 14,135 |
Interest income recognized | 332 | 196 | 223 |
Commercial and industrial | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 14,291 | 9,816 | |
Total recorded investment in impaired loans | 13,372 | 7,810 | |
Recorded investment with no allowance | 9,366 | 5,253 | |
Recorded investment with allowance | 4,006 | 2,557 | |
Related allowance | 2,222 | 1,078 | |
Average recorded investment | 9,790 | 9,372 | 10,682 |
Interest income recognized | 223 | 97 | 156 |
Commercial construction | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 3,408 | 3,147 | |
Total recorded investment in impaired loans | 3,364 | 3,032 | |
Recorded investment with no allowance | 3,051 | 1,583 | |
Recorded investment with allowance | 313 | 1,449 | |
Related allowance | 28 | 499 | |
Average recorded investment | 3,137 | 2,202 | 3,158 |
Interest income recognized | 150 | 83 | 105 |
Residential | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 388 | 453 | |
Total recorded investment in impaired loans | 289 | 366 | |
Recorded investment with no allowance | 289 | 366 | |
Recorded investment with allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 301 | 449 | 1,082 |
Interest income recognized | 0 | 0 | 3 |
Home Equity | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 665 | 308 | |
Total recorded investment in impaired loans | 509 | 169 | |
Recorded investment with no allowance | 509 | 164 | |
Recorded investment with allowance | 0 | 5 | |
Related allowance | 0 | 5 | |
Average recorded investment | 356 | 174 | 208 |
Interest income recognized | (4) | 1 | 0 |
Consumer | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 2 | 25 | |
Total recorded investment in impaired loans | 1 | 24 | |
Recorded investment with no allowance | 0 | 0 | |
Recorded investment with allowance | 1 | 24 | |
Related allowance | 1 | 24 | |
Average recorded investment | 14 | 45 | 27 |
Interest income recognized | $ 0 | $ 0 | $ 2 |
Allowance For Loan Losses - Tro
Allowance For Loan Losses - Troubled Debt Restructures (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)restructuring | Dec. 31, 2015USD ($)restructuring | |
Financing Receivable, Modifications [Line Items] | ||
Total Troubled Debt Restructure (TDR) loans | $ 27,000,000 | $ 17,100,000 |
TDR loans on accrual status | 22,400,000 | 10,100,000 |
TDR loans included in non-performing loans | $ 4,600,000 | $ 7,100,000 |
Financing Receivable Modifications Number of Contracts, Additional Extension of Credit | restructuring | 8 | |
Financing Receivable Modifications Number of Contracts, Extended Payment Term | restructuring | 4 | |
Financing Receivable Modifications Number of Contracts, Temporary Interest Only | restructuring | 7 | |
Additional funding commitment on TDRs | $ 502,000 | |
Number of restructurings | restructuring | 19 | 15 |
Pre-modification outstanding recorded investment | $ 11,443,000 | $ 3,398,000 |
Post-modification recorded investment | $ 12,778,000 | $ 3,313,000 |
Number of TDR's that defaulted | restructuring | 1 | 3 |
Post-modification outstanding recorded investment | $ 148,000 | $ 759,000 |
Charge-offs associated with TDRs | 0 | 0 |
Specific reserves allocated to TDRs | 1,400,000 | 201,000 |
Interest payments received on nonaccruing loans excluded from income | 3,000 | $ 18,000 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Larger accruing-impaired TDR commercial relationship downgraded in period, net carrying value | 10,500,000 | |
Additional funding on larger accruing impaired TDR commercial relationship | $ 1,800,000 | |
Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 8 | 4 |
Pre-modification outstanding recorded investment | $ 6,212,000 | $ 269,000 |
Post-modification recorded investment | $ 7,534,000 | $ 371,000 |
Number of TDR's that defaulted | restructuring | 1 | 0 |
Post-modification outstanding recorded investment | $ 148,000 | $ 0 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 11 | 8 |
Pre-modification outstanding recorded investment | $ 5,231,000 | $ 1,786,000 |
Post-modification recorded investment | $ 5,244,000 | $ 1,600,000 |
Number of TDR's that defaulted | restructuring | 0 | 3 |
Post-modification outstanding recorded investment | $ 0 | $ 759,000 |
Commercial construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 2 |
Pre-modification outstanding recorded investment | $ 0 | $ 1,339,000 |
Post-modification recorded investment | $ 0 | $ 1,339,000 |
Number of TDR's that defaulted | restructuring | 0 | 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 |
Post-modification recorded investment | $ 0 | $ 0 |
Number of TDR's that defaulted | restructuring | 0 | 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 |
Home Equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 |
Post-modification recorded investment | $ 0 | $ 0 |
Number of TDR's that defaulted | restructuring | 0 | 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 1 |
Pre-modification outstanding recorded investment | $ 0 | $ 4,000 |
Post-modification recorded investment | $ 0 | $ 3,000 |
Number of TDR's that defaulted | restructuring | 0 | 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 |
Allowance For Loan Losses - Oth
Allowance For Loan Losses - Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying value of OREO | $ 0 | ||
Net gains on sales of OREO | $ 0 | 154 | $ 0 |
Mortgage Loans in Process of Foreclosure, Amount | 200 | 0 | |
Other real estate owned | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
OREO fair value adjustment | $ 0 | $ 0 | $ 0 |
Allowance For Loan Losses - All
Allowance For Loan Losses - Allowance for Loan Losses (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)relationship | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan losses to total loans ratio | 1.55% | 1.56% | 1.55% | 1.56% | |||||||
Increase (decrease) in loans | $ 162,800 | $ 187,400 | |||||||||
The ratio of non-accrual loans to total loans | 0.47% | 0.74% | 0.47% | 0.74% | |||||||
Net charge-offs on loans | $ 659 | $ 1,380 | |||||||||
Impaired And Classified Financing Receivable Related Allowance | $ 4,400 | $ 3,300 | $ 4,400 | 3,300 | |||||||
Significant Relationships Subsequently Downgraded With Additional Allowance | relationship | 4 | ||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 29,008 | $ 27,121 | $ 29,008 | 27,121 | $ 26,967 | ||||||
Provision for loan losses | 490 | $ 1,386 | $ 267 | 850 | 1,167 | $ 250 | $ 1,225 | 625 | 2,993 | 3,267 | 1,395 |
Recoveries | 709 | 409 | 735 | ||||||||
Less: Charge offs | 1,368 | 1,789 | 1,976 | ||||||||
Ending Balance | 31,342 | 29,008 | 31,342 | 29,008 | 27,121 | ||||||
Allotted to loans individually evaluated for impairment | 2,621 | 1,792 | 2,621 | 1,792 | |||||||
Allotted to loans collectively evaluated for impairment | 28,721 | 27,216 | $ 28,721 | 27,216 | |||||||
Commercial | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Large accruing-impaired commercial relationship downgraded in period | 2 | ||||||||||
Commercial real estate | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 13,514 | 12,664 | $ 13,514 | 12,664 | |||||||
Provision for loan losses | 1,696 | 909 | |||||||||
Recoveries | 20 | 74 | |||||||||
Less: Charge offs | 328 | 133 | |||||||||
Ending Balance | 14,902 | 13,514 | 14,902 | 13,514 | 12,664 | ||||||
Allotted to loans individually evaluated for impairment | 370 | 186 | 370 | 186 | |||||||
Allotted to loans collectively evaluated for impairment | 14,532 | 13,328 | 14,532 | 13,328 | |||||||
Commercial and industrial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 9,758 | 9,245 | 9,758 | 9,245 | |||||||
Provision for loan losses | 1,745 | 1,805 | |||||||||
Recoveries | 681 | 279 | |||||||||
Less: Charge offs | 980 | 1,571 | |||||||||
Ending Balance | 11,204 | 9,758 | 11,204 | 9,758 | 9,245 | ||||||
Allotted to loans individually evaluated for impairment | 2,222 | 1,078 | 2,222 | 1,078 | |||||||
Allotted to loans collectively evaluated for impairment | 8,982 | 8,680 | 8,982 | 8,680 | |||||||
Commercial construction | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 3,905 | 3,384 | 3,905 | 3,384 | |||||||
Provision for loan losses | (494) | 496 | |||||||||
Recoveries | 0 | 25 | |||||||||
Less: Charge offs | 5 | 0 | |||||||||
Ending Balance | 3,406 | 3,905 | 3,406 | 3,905 | 3,384 | ||||||
Allotted to loans individually evaluated for impairment | 28 | 499 | 28 | 499 | |||||||
Allotted to loans collectively evaluated for impairment | 3,378 | 3,406 | 3,378 | 3,406 | |||||||
Residential | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 1,061 | 989 | 1,061 | 989 | |||||||
Provision for loan losses | (101) | 72 | |||||||||
Recoveries | 0 | 0 | |||||||||
Less: Charge offs | 0 | 0 | |||||||||
Ending Balance | 960 | 1,061 | 960 | 1,061 | 989 | ||||||
Allotted to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Allotted to loans collectively evaluated for impairment | 960 | 1,061 | 960 | 1,061 | |||||||
Home Equity | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 540 | 608 | 540 | 608 | |||||||
Provision for loan losses | 97 | (83) | |||||||||
Recoveries | 3 | 15 | |||||||||
Less: Charge offs | 6 | 0 | |||||||||
Ending Balance | 634 | 540 | 634 | 540 | 608 | ||||||
Allotted to loans individually evaluated for impairment | 0 | 5 | 0 | 5 | |||||||
Allotted to loans collectively evaluated for impairment | 634 | 535 | 634 | 535 | |||||||
Consumer | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 230 | $ 231 | 230 | 231 | |||||||
Provision for loan losses | 50 | 68 | |||||||||
Recoveries | 5 | 16 | |||||||||
Less: Charge offs | 49 | 85 | |||||||||
Ending Balance | 236 | 230 | 236 | 230 | $ 231 | ||||||
Allotted to loans individually evaluated for impairment | 1 | 24 | 1 | 24 | |||||||
Allotted to loans collectively evaluated for impairment | $ 235 | $ 206 | $ 235 | $ 206 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | $ 70,084 | $ 63,874 | |
Less accumulated depreciation | (36,544) | (33,321) | |
Total premises and equipment, net of accumulated depreciation | 33,540 | 30,553 | |
Depreciation expense | 4,400 | 4,300 | $ 4,200 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | 5,201 | 4,614 | |
Bank premises and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | 37,390 | 33,597 | |
Computer software and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | 9,250 | 9,014 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | $ 18,243 | $ 16,649 |
Premises and Equipment - Operat
Premises and Equipment - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
2,017 | $ 1,702 | ||
2,018 | 1,452 | ||
2,019 | 936 | ||
2,020 | 716 | ||
2,021 | 717 | ||
Thereafter | 5,455 | ||
Total minimum lease payments | 10,978 | ||
Operating Leases, Rent Expense | 1,300 | $ 1,200 | $ 1,100 |
Rental income | $ 159 | $ 153 | $ 153 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Deposits [Abstract] | |||
Non-interest bearing demand deposits | $ 646,115 | $ 570,589 | |
Interest bearing checking | 372,696 | 313,674 | |
Savings | 178,637 | 167,304 | |
Money market | 844,216 | 692,114 | |
Certificates of deposit $250,000 or less | 125,580 | 129,993 | |
Certificates of deposit more than $250,000 | 42,315 | 37,704 | |
Total non-brokered deposits | 2,209,559 | 1,911,378 | |
Brokered deposits | [1] | 59,362 | 106,770 |
Total deposits | 2,268,921 | 2,018,148 | |
Customer balances in reciprocal deposits | 281,600 | 206,500 | |
Overdrawn deposits reclassified as loans | $ 558 | $ 407 | |
[1] | Primarily brokered CDs $250,000 and under. |
Deposits - Maturities (Details)
Deposits - Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Deposits [Abstract] | ||
Weighted average remaining life, brokered deposits | 1 year 6 months | 1 year 4 months 24 days |
Due in less than twelve months | $ 136,695 | $ 176,792 |
Due in over one year through two years | 38,344 | 37,729 |
Due in over two years through three years, | 32,652 | 23,429 |
Due in over three years through four years | 8,525 | 26,501 |
Due in over four years through five years | 5,721 | 5,983 |
Due in over five years | 5,320 | 4,033 |
Total certificates of deposit | $ 227,257 | $ 274,467 |
Borrowed Funds and Subordinat64
Borrowed Funds and Subordinated Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Federal Home Loan Bank Borrowings | $ 10,671 | $ 40,671 | $ 58,900 |
Other Borrowings | $ 0 | $ 13,000 | $ 0 |
Other Borrowings, Weighted Average interest Rate | 0.00% | 0.60% | 0.00% |
Borrowed Funds | $ 10,671 | $ 53,671 | $ 58,900 |
Borrowed Funds, Weighted Average Interest Rate | 0.80% | 0.53% | 0.30% |
Subordinated debt | $ 14,834 | $ 14,822 | $ 10,825 |
Subordinated Debt, Weighted Average Interest Rate | 6.26% | 6.16% | 10.88% |
Total borrowed funds and subordinated debt, amount | $ 25,505 | $ 68,493 | $ 69,725 |
Total borrowed funds and subordinated debt, Average Rate | 3.98% | 1.75% | 1.94% |
Weighted Average | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank Borrowings,Weighted Average Interest Rate | 0.80% | 0.51% | 0.30% |
Borrowed Funds and Subordinat65
Borrowed Funds and Subordinated Debt - Textual (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2015 | Mar. 31, 2000 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
FHLB overnight borrowings | $ 10,000,000 | ||||
FHLB overnight borrowings, weighted average rate | 0.80% | ||||
FHLB borrowings, due within twelve months | $ 671,000 | ||||
FHLB borrowings, due within twelve months, weighted average rate | 0.87% | ||||
Maximum FHLB and other borrowings outstanding at any month end | $ 43,700,000 | $ 53,700,000 | $ 58,900,000 | ||
Proceeds from capital contribution | $ 325,000 | ||||
Junior subordinated debt, Amount | $ 10,800,000 | ||||
Subordinated debt | $ 14,834,000 | $ 14,822,000 | $ 10,825,000 | ||
Federal Home Loan Bank Advances | |||||
Debt Instrument [Line Items] | |||||
Term of FHLB borrowing | 1 year | ||||
Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Subordinated debt, rate | 10.875% | ||||
Fixed-to Floating Rate Subordinated Notes | |||||
Debt Instrument [Line Items] | |||||
Subordinated debt, rate | 6.00% | ||||
Subordinated debt | $ 15,000,000 | ||||
Original debt issuance costs | $ 190,000 | ||||
Line of credit | FHLB | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity at FHLB | $ 487,000,000 | ||||
Line of credit | Federal Reserve Bank of Boston | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity at FRB | $ 115,000,000 | ||||
Enterprise (MA) Capital Trust I | |||||
Debt Instrument [Line Items] | |||||
Trust preferred securities, value | $ 10,500,000 | ||||
Trust preferred securities, stated interest rate | 10.875% | ||||
London Interbank Offered Rate (LIBOR) [Member] | 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% |
Borrowed Funds and Subordinat66
Borrowed Funds and Subordinated Debt - Average Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |||
FHLB advances, Average Balance | $ 14,551 | $ 10,731 | $ 12,085 |
FHLB advances, Average Rate | 0.55% | 0.36% | 0.31% |
Other borrowings, Average Balance | $ 107 | $ 36 | $ 28 |
Other borrowings, Average Rate | 0.61% | 0.61% | 0.56% |
Total borrowed funds, Average Balance | $ 14,658 | $ 10,767 | $ 12,113 |
Total borrowed funds, Average Rate | 0.55% | 0.36% | 0.31% |
Derivatives and Hedging Activ67
Derivatives and Hedging Activities (Details) | 12 Months Ended | |
Dec. 31, 2016USD ($)instrument | Dec. 31, 2015USD ($)instrument | |
Derivative [Line Items] | ||
Credit exposure on interest Rate swap | $ 610,000 | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of Interest Rate Swaps | instrument | 4 | 2 |
Aggregate notional value of interest-rate swaps | $ 26,700,000 | $ 10,100,000 |
Fair Value of Interest-Rate Swap Asset | 610,000 | 16,000 |
Fair Value of Interest-Rate Swap Liability | 610,000 | 16,000 |
Gain (Loss) on Interest Rate Swaps | 0 | 0 |
Gross Amount Interest Rate Swap Asset Recognized | 610,000 | 16,000 |
Net Asset Amount, Interest Rate Swap | 610,000 | 16,000 |
Gross Amount Interest Rate Swap Liability Recognized | 610,000 | 16,000 |
Collateral Posted | 0 | 0 |
Net Liability Amount, Interest Rate Swap | $ 610,000 | $ 16,000 |
Committments, Contingencies a68
Committments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)paymentloan | Dec. 31, 2015USD ($) | |
Other Commitments [Line Items] | ||
Commitments to Originate Loans | $ 37,753 | $ 48,641 |
Commitments to Sell Residential Mortgage Loans | 3,115 | 3,225 |
Standby Letters of Credit | $ 21,497 | 22,712 |
Number of Participation Loans with Swap Contingent Liabilities | loan | 2 | |
Federal Reserve Bank Average Daily Reserve Requirement included in Cash and Due from Banks | $ 6,800 | 7,400 |
Residential | ||
Other Commitments [Line Items] | ||
Commitments to Originate Loans for Sale | $ 1,946 | 1,516 |
Early payment default period | payment | 4 | |
Commercial real estate | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | $ 56,952 | 13,128 |
Commercial and industrial | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | 399,833 | 337,970 |
Commercial and residential construction | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | 151,757 | 138,162 |
Home Equity | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | 82,884 | 73,397 |
Consumer Loan | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | $ 3,043 | $ 2,999 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2016 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized | 20,000,000 | 20,000,000 | |||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||
Shareholder subscription rights and community offering, price per share | $ 21.50 | ||||
Maximum amount that was available to be raised under shelf registration | $ 40,000,000 | ||||
Shares issued in shareholder subscription rights and community offering | 930,232 | ||||
Gross proceeds from shareholder subscription rights and community offering | $ 20,000,000 | ||||
Net proceeds from shareholder subscription rights offering and community offering, net | $ 19,700,000 | ||||
Capital Conservation Buffer on Regulatory Risk-Based Requirements, Phase-in | 0.625% | 0.625% | |||
Dividends, Common Stock | $ 5,684,000 | $ 5,158,000 | $ 4,853,000 | ||
Common stock issued under dividend reinvestment plan | 1,381,000 | 1,277,000 | 1,219,000 | ||
Common stock issued under direct stock purchase plan, value | 38,000 | 150,000 | 64,000 | ||
Retained Earnings | |||||
Class of Stock [Line Items] | |||||
Dividends, Common Stock | $ 5,684,000 | $ 5,158,000 | $ 4,853,000 | ||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock issued under dividend reinvestment plan, shares | 53,516 | 58,529 | 60,586 | ||
Common stock issued under dividend reinvestment plan | $ 1,000 | $ 1,000 | $ 1,000 | ||
Common stock issued under direct stock purchase plan, shares | 1,562 | 6,700 | 2,917 | ||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Votes Per Share, Number | 1 | ||||
Series A Junior Participating Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Amount of a share allowed to be purchased under right to purchase | 0.01 | ||||
Price per one one-hundredth of a share | $ 52 | ||||
Minimum acquisition percentage to trigger the exercise of the right to purchase | 10.00% |
Stockholders' Equity - Regulato
Stockholders' Equity - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Capital Conservation Buffer on Regulatory Risk-Based Requirements, Phase-in | 0.625% | 0.625% | |||
Total Capital, Actual, Amount | $ 252,552 | $ 212,871 | |||
Total Capital (to risk weighted assets), Actual, Ratio | 11.79% | 10.70% | |||
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 171,337 | $ 159,198 | |||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | [1] | 8.00% | ||
Tier 1 Risk Based Capital, Actual, Amount | $ 209,887 | $ 172,397 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 9.80% | 8.66% | |||
Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 128,503 | $ 119,398 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 6.00% | [1] | 6.00% | ||
Tier 1 Leverage Capital, Actual, Amount | $ 209,887 | $ 172,397 | |||
Tier 1 Leverage Capital (to average assets), Actual, Ratio | 8.34% | 7.73% | |||
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 100,628 | $ 89,173 | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | [1] | 4.00% | ||
Common Equity Tier 1 Risk Based Capital, Actual, Amount | $ 209,887 | $ 172,397 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 9.80% | 8.66% | |||
Common Equity Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 96,377 | $ 89,549 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.50% | [1] | 4.50% | ||
The Bank | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Total Capital, Actual, Amount | $ 250,893 | $ 209,670 | |||
Total Capital (to risk weighted assets), Actual, Ratio | 11.71% | 10.54% | |||
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 171,332 | $ 159,189 | |||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | [1] | 8.00% | ||
Total Capital, Minimum Capital To Be Well Capitalized, Amount | $ 214,166 | $ 198,987 | |||
Total Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 10.00% | 10.00% | ||
Tier 1 Risk Based Capital, Actual, Amount | $ 223,062 | $ 184,019 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 10.42% | 9.25% | |||
Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 128,499 | $ 119,392 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 6.00% | [1] | 6.00% | ||
Tier 1 Risk Based Capital, Minimum Capital To Be Well Capitalized, Amount | $ 171,332 | $ 159,189 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 8.00% | 8.00% | ||
Tier 1 Leverage Capital, Actual, Amount | $ 223,062 | $ 184,019 | |||
Tier 1 Leverage Capital (to average assets), Actual, Ratio | 8.87% | 8.25% | |||
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 100,627 | $ 89,172 | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | [1] | 4.00% | ||
Tier 1 Leverage Capital, Minimum Capital To Be Well Capitalized, Amount | $ 125,784 | $ 111,465 | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 5.00% | 5.00% | ||
Common Equity Tier 1 Risk Based Capital, Actual, Amount | $ 223,062 | $ 184,019 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 10.42% | 9.25% | |||
Common Equity Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 96,374 | $ 89,544 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.50% | [1] | 4.50% | ||
Common Equity Tier 1 Risk Based Capital, Minimum Capital To Be Well Capitalized, Amount | $ 139,208 | $ 129,341 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 6.50% | 6.50% | ||
[1] | Before application of the capital conservation buffer of 0.625% as of December 31, 2016, see discussion below. | ||||
[2] | For the Bank to qualify as “well capitalized," it must maintain at least the minimum ratios listed. These "well capitalized" requirements do not apply to the Company. |
Stockholders' Equity - Basel II
Stockholders' Equity - Basel III Minimum Capital Adequacy Requirements after Full Phase In (Details) | Dec. 31, 2019 | Dec. 31, 2016 | [1] | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | ||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | ||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | ||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | ||
Basel III Minimum Requirements Forecast [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 10.50% | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.50% | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 7.00% | |||
Basel III Additional Capital Conservation Buffer (percent) | 2.50% | |||
[1] | Before application of the capital conservation buffer of 0.625% as of December 31, 2016, see discussion below. |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plan and Profit Sharing (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Company's percent match on 401(K) defined contribution plan | 60.00% | ||
Maximum percentage of employee contribution matched by the Company | 6.00% | ||
Minimum age to be eligible for 401(k) plan | 18 years | ||
Number of minimum hours required to work for 401(k) plan eligibility | 1 hour | ||
Employer's matching contribution, annual vesting percentage for 401(k) plan | 20.00% | ||
Number of years to be fully vested for 401(k) plan | 5 years | ||
Expense for the 401(k) plan match (excluding profit sharing component) | $ 938 | $ 859 | $ 792 |
Employee Benefit Plans - Supple
Employee Benefit Plans - Supplemental Retirement Plan (SERP) (Details) - Supplemental Retirement Plan $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)officer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of active executive officers under plan | officer | 2 | |||
Number of former executive officers under plan | officer | 1 | |||
Term of SERP benefits | 20 years | |||
Accrual for benefit obligation for following year | $ 116 | |||
Benefit obligation at beginning of year | 2,654 | $ 2,844 | $ 2,889 | |
Interest cost | 124 | 133 | 128 | |
Actuarial loss(gain) | 0 | (47) | 103 | |
Net periodic benefit cost(benefit) | 124 | 86 | 231 | |
Benefits paid | (276) | (276) | (276) | |
Benefit obligation at end of year | 2,502 | 2,654 | 2,844 | |
Accrued liability at end of year | $ (2,502) | $ (2,654) | $ (2,844) | |
Discount rate used for benefit obligation | [1] | 4.75% | 4.75% | 4.50% |
[1] | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Future Benefit Payments for SERP (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Compensation and Retirement Disclosure [Abstract] | |
2,017 | $ 276 |
2,018 | 276 |
2,019 | 276 |
2,020 | 276 |
2,021 | 276 |
2022-2026 | $ 1,379 |
Employee Benefit Plans - Supp75
Employee Benefit Plans - Supplemental Life Insurance (Details) - Supplemental Life Insurance Benefit - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other Postretirement Benefit Plan Disclosures [Line Items] | ||||
Benefit obligation at beginning of year | $ 1,792 | $ 1,723 | $ 1,576 | |
Service cost | (9) | (56) | (38) | |
Interest cost | 88 | 86 | 74 | |
Actuarial loss(gain) | 24 | 39 | 111 | |
Net periodic benefit cost(benefit) | 103 | 69 | 147 | |
Benefit obligation at end of year | 1,895 | 1,792 | 1,723 | |
Accrued liability at end of year | $ (1,895) | $ (1,792) | $ (1,723) | |
Discount rate used for benefit obligation | [1] | 4.75% | 4.75% | 4.50% |
Accrual for benefit obligation for following year | $ 80 | |||
[1] | Management utilizes the Moody’s 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Stock-Based Compensation Plan76
Stock-Based Compensation Plans - Stock Options, Stock Awards, and Stock in Lieu of Directors' Fees (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 48 Months Ended | ||||||||
Jan. 31, 2017shares | Jan. 31, 2016shares | Jan. 31, 2015shares | Dec. 31, 2016USD ($)plans$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2012 | Dec. 31, 2016USD ($)plansshares | Jan. 04, 2016$ / shares | Jan. 02, 2015$ / shares | Jan. 02, 2014$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of individual stock incentive plans | plans | 2 | 2 | |||||||||
Shares remain available for future grants under the 2009 plan | shares | 473,925 | 473,925 | |||||||||
Stock-based compensation expense | $ 2,380 | $ 1,803 | $ 1,752 | ||||||||
Tax benefit recognized related to stock-based compensation expense | 972 | 720 | 700 | ||||||||
Tax benefit from stock compensation | $ 789 | 217 | 320 | ||||||||
Price as a percentage of fair market value that stock options may not be granted below | 100.00% | ||||||||||
Percentage of ownership of common stock by participants that if greater causes greater grant price | 10.00% | ||||||||||
Price as a percentage of fair market value that stock options may not be granted below for anyone who owns more than 10% common stock | 110.00% | ||||||||||
Expiration period of options granted for those who own more than 10% common stock | 5 years | ||||||||||
Proceeds from exercise of stock options, net | $ 388 | 431 | 889 | ||||||||
Total intrinsic value of options exercised | 1,000 | 396 | 867 | ||||||||
Fair value of options vested | 237 | 359 | 272 | ||||||||
Directors fee expense | 661 | 424 | 444 | ||||||||
Number of shares issued in lieu of cash to directors | shares | 10,657 | 11,612 | |||||||||
Fair market share price | $ / shares | $ 22.04 | $ 23.86 | $ 20.84 | ||||||||
Additional Paid-in Capital | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Tax benefit from stock compensation | 789 | 217 | 320 | ||||||||
Subsequent Event | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares issued in lieu of cash to directors | shares | 12,992 | ||||||||||
Director | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Tax benefit recognized related to stock-based compensation expense | 117 | 102 | 97 | ||||||||
Stock options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | 267 | 318 | 363 | ||||||||
Tax benefit recognized related to stock-based compensation expense | $ 109 | $ 127 | $ 145 | ||||||||
Term in years | 10 years | 10 years | 10 years | ||||||||
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 406 | $ 406 | |||||||||
Remaining vesting period unrecognized compensation expense is to be recognized | 2 years 4 months 24 days | ||||||||||
Stock options | Options Granted 2012 and Earlier | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Award vesting period | 4 years | ||||||||||
Restricted Stock and Common Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 1,800 | $ 1,200 | $ 1,100 | ||||||||
Tax benefit recognized related to stock-based compensation expense | 746 | $ 491 | $ 458 | ||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized stock-based compensation expense, net of estimated forfeitures | $ 1,300 | $ 1,300 | |||||||||
Remaining vesting period unrecognized compensation expense is to be recognized | 2 years 1 month 6 days | ||||||||||
Stock awards in the period | shares | 62,429 | 55,313 | 58,844 | ||||||||
Granted, Weighted Average Grant Price Per Share | $ / shares | $ 21.90 | $ 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 | ||||||||||
Common Stock | Employee | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock awards in the period | shares | 106 | 105 | 2,142 | ||||||||
Granted, Weighted Average Grant Price Per Share | $ / shares | $ 23.58 | $ 23.64 | $ 20.95 | ||||||||
Common stock in lieu of cash | Director | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock-based compensation expense | $ 286 | $ 254 | $ 242 | ||||||||
Two year vesting | Stock options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted, vesting percentage | 50.00% | ||||||||||
Two year vesting | Restricted Stock | Employee | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock awards in the period | shares | 18,298 | 17,775 | 19,167 | ||||||||
Four year vesting | Stock options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted, vesting percentage | 50.00% | ||||||||||
Four year vesting | Restricted Stock | Employee | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock awards in the period | shares | 35,071 | 30,262 | 33,017 |
Stock-Based Compensation Plan77
Stock-Based Compensation Plans - Summary of Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 31,047 | 27,376 | 31,229 |
Options granted, per share weighted average grant date fair value | $ 7.91 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term in years | 10 years | 10 years | 10 years |
Expected volatility | 42.00% | 47.00% | 47.00% |
Market price on date of grant | $ 21.91 | $ 21.03 | $ 20.29 |
Options granted, per share weighted average grant date fair value | $ 7.91 | $ 8.51 | $ 8.32 |
Weighted Average | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 3.02% | 2.90% | 2.88% |
Expected life in years | 7 years | 7 years | 7 years |
Risk-free interest rate | 1.91% | 1.95% | 2.19% |
Fair Value as a percentage of market value at grant date | 36.00% | 40.00% | 41.00% |
Stock-Based Compensation Plan78
Stock-Based Compensation Plans - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding Options, beginning balance | 300,969 | ||
Options granted | 31,047 | 27,376 | 31,229 |
Exercised, Options | 71,544 | ||
Forfeited/Expired, Options | 693 | ||
Outstanding Options, ending balance | 259,779 | 300,969 | |
Outstanding Options, Weighted Average Exercise Price, beginning balance | $ 15.82 | ||
Granted, Weighted Average Exercise Price | 21.91 | ||
Exercised, Weighted Average Exercise Price | 12.77 | ||
Forfeited/Expired, Weighted Average Exercise Price | 18.54 | ||
Outstanding Options, Weighted Average Exercise Price, ending balance | $ 17.38 | $ 15.82 | |
Outstanding Options, Weighted Average Remaining Life | 4 years 6 months | 4 years 2 months 12 days | |
Options Outstanding, Aggregate Intrinsic Value, beginning balance | $ 2,116 | ||
Options Outstanding, Aggregate Intrinsic Value, ending balance | $ 5,243 | $ 2,116 | |
Vested and Exercisable, ending balance, Options | 165,745 | ||
Vested and Exercisable, ending balance, Weighted Average Exercise Price | $ 15.80 | ||
Vested and Exercisable, ending balance, Weighted Average Remaining Life | 2 years 7 months 6 days | ||
Vested and Exercisable, ending balance, Aggregate Intrinsic Value | $ 3,606 |
Stock-Based Compensation Plan79
Stock-Based Compensation Plans - Summary of Unvested Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Unvested Options [Abstract] | |||
Unvested, options, beginning balance | 95,869 | ||
Options granted | 31,047 | 27,376 | 31,229 |
Options vested, number of shares | 32,368 | ||
Unvested options forfeited, Number of Shares | 514 | ||
Unvested, options, ending balance | 94,034 | 95,869 | |
Unvested options, beginning balance, weighted average grant date fair value | $ 7.64 | ||
Options granted, per share weighted average grant date fair value | 7.91 | ||
Options, vested, weighted average grant date fair value | 7.31 | ||
Unvested Options forfeited, weighted average grant date fair value | 8.02 | ||
Unvested options, ending balance, weighted average grant date fair value | $ 7.84 | $ 7.64 |
Stock-Based Compensation Plan80
Stock-Based Compensation Plans - Restricted Stock Grants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 62,429 | 55,313 | 58,844 |
Granted, Weighted Average Grant Price Per Share | $ 21.90 | $ 21.03 | $ 20.29 |
Director | Restricted Stock | Two year vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 9,060 | 7,276 | 6,660 |
Employee | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 106 | 105 | 2,142 |
Granted, Weighted Average Grant Price Per Share | $ 23.58 | $ 23.64 | $ 20.95 |
Employee | Restricted Stock | Four year vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 18,298 | 17,775 | 19,167 |
Employee | Restricted Stock | Performance-based vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 35,071 | 30,262 | 33,017 |
Stock-Based Compensation Plan81
Stock-Based Compensation Plans - Restricted Stock Award Activity and Weighted Average Price (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested, beginning balance, Restricted Stock | 144,717 | |
Unvested, ending balance, Restricted Stock | 141,580 | 144,717 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested, beginning balance, Restricted Stock | 144,717 | |
Vested/released, Restricted Stock | 64,036 | |
Forfeited, Restricted Stock | 1,530 | |
Unvested, ending balance, Restricted Stock | 141,580 | 144,717 |
Unvested, beginning balance, Weighted Average Grant Price Per Share | $ 19.22 | |
Vested/released, Weighted Average Grant Price Per Share | 18.46 | |
Forfeited, Weighted Average Grant Price Per Share | 20.51 | |
Unvested, ending balance, Weighted Average Grant Price Per Share | $ 20.73 | $ 19.22 |
Unvested, Weighted Average Remaining Life In Years | 1 year 4 months 24 days | 1 year |
Unvested, Aggregate Intrinsic Value | $ 5,318,000 | $ 3,304,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current tax expense: | |||||||||||
Federal | $ 8,178 | $ 6,808 | $ 5,814 | ||||||||
State | 2,244 | 1,712 | 1,681 | ||||||||
Total current tax expense | 10,422 | 8,520 | 7,495 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | (984) | (284) | 85 | ||||||||
State | (277) | (122) | 5 | ||||||||
Total deferred tax expense/ (benefit) | (1,261) | (406) | 90 | ||||||||
Total income tax expense | $ 2,362 | $ 2,251 | $ 2,291 | $ 2,257 | $ 2,181 | $ 2,054 | $ 1,855 | $ 2,024 | $ 9,161 | $ 8,114 | $ 7,585 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | 34.00% | ||||||||
Computed income tax expense at statutory rate | $ 9,769 | $ 8,492 | $ 7,560 | ||||||||
State income taxes, net of federal tax benefit | 1,279 | 1,034 | 1,113 | ||||||||
Tax exempt income, net of disallowance | (1,559) | (1,226) | (1,060) | ||||||||
Bank Owned Life Insurance, net | (261) | (251) | (140) | ||||||||
Other | (67) | 65 | 112 | ||||||||
Total income tax expense | $ 2,362 | $ 2,251 | $ 2,291 | $ 2,257 | $ 2,181 | $ 2,054 | $ 1,855 | $ 2,024 | $ 9,161 | $ 8,114 | $ 7,585 |
Effective income tax rate | 32.80% | 33.40% | 34.10% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Deferred Tax Assets [Abstract] | |||
Allowance for loan losses | $ 12,753 | $ 11,800 | |
Depreciation | 3,463 | 3,103 | |
Net unrealized loss on investment securities | 444 | 0 | |
Other-than-temporary impairment on equity securities | 22 | 22 | |
Supplemental employee retirement plans | 1,018 | 1,080 | |
Non-accrual interest | 1,145 | 1,393 | |
Stock-based compensation expense | 1,019 | 873 | |
Other | 390 | 163 | |
Total | 20,254 | 18,434 | |
Components of Deferred Tax Liabilities [Abstract] | |||
Goodwill | 2,301 | 2,300 | |
Net unrealized gains on investments securities | 0 | 1,204 | |
Deferred origination costs | 933 | 812 | |
Other | 0 | 7 | |
Total | 3,234 | 4,323 | |
Net deferred tax asset | 17,020 | 14,111 | |
Total income taxes paid, net | 10,868 | 7,594 | $ 7,466 |
Federal Low Income Housing Tax Credit | |||
Components of Deferred Tax Liabilities [Abstract] | |||
Tax credit carryforward recognized during period | 71 | $ 71 | $ 71 |
Anticipated additional tax credits | $ 390 | ||
Number of years tax credit to be recognized over | 6 years |
Earnings per share (Details)
Earnings per share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 10,966,333 | 10,323,016 | 10,118,762 |
Dilutive shares | 73,178 | 66,918 | 90,481 |
Diluted weighted average common shares outstanding | 11,039,511 | 10,389,934 | 10,209,243 |
Antidilutive options excluded from computation of EPS | 434 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Specific allowance for collateral dependent impaired loans | $ 1,900 | $ 1,400 |
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, Recurring | Fair Value, Inputs, Level 1 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial liabilities | $ 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Debt 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 | 12,643 | 11,657 |
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 1 | Interest Rate Swap | ||
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 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial liabilities | 610 | 16 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 362,147 | 288,701 |
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 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 610 | 16 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Debt 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 | 2,094 | 3,050 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
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 |
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 |
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 | 3,481 | 2,516 |
Fair Value | Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial liabilities | 610 | 16 |
Fair Value | Fair Value, Measurements, Recurring | Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 362,147 | 288,701 |
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 | 12,643 | 11,657 |
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 | 2,094 | 3,050 |
Fair Value | Fair Value, Measurements, Recurring | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 610 | 16 |
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 | $ 3,481 | $ 2,516 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Measurements, Recurring | FHLB Stock | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | $ 2,094 | $ 3,050 | |
Fair Value, Measurements, Recurring | FHLB Stock | FHLB Stated Par Value | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of assets | 2,094 | ||
Fair Value, Measurements, Nonrecurring | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | 3,481 | $ 2,516 | |
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] | $ 3,481 | |
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 - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Financial assets: | ||
Loans held for sale | $ 1,569 | $ 1,709 |
Loans, net | 1,991,387 | 1,830,954 |
Financial liabilities: | ||
Borrowed funds | 10,671 | 53,671 |
Subordinated debt | 14,834 | 14,822 |
Carrying Amount | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | 227,257 | 274,467 |
Fair Value | ||
Financial assets: | ||
Loans held for sale | 1,569 | 1,709 |
Loans, net | 1,997,887 | 1,845,009 |
Financial liabilities: | ||
Borrowed funds | 10,670 | 53,670 |
Subordinated debt | 14,011 | 13,961 |
Fair Value | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | 226,536 | 273,419 |
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 | 1,569 | 1,709 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 10,670 | 53,670 |
Subordinated debt | 0 | 0 |
Fair Value, Inputs, Level 2 | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | 226,536 | 273,419 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 1,997,887 | 1,845,009 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 14,011 | 13,961 |
Fair Value, Inputs, Level 3 | Certificates of Deposit | ||
Financial liabilities: | ||
Certificates of deposit | $ 0 | $ 0 |
Parent Company Only Financial89
Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash | $ 50,475 | $ 51,495 | $ 40,146 | $ 53,733 |
Total assets | 2,526,269 | 2,285,531 | ||
Liabilities | ||||
Subordinated debt | 14,834 | 14,822 | 10,825 | |
Accrued interest payable | 263 | 276 | ||
Other liabilities | 16,794 | 18,287 | ||
Total liabilities | 2,311,483 | 2,105,204 | ||
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; 11,475,742 shares issued and outstanding at December 31, 2016 (including 141,580 shares of unvested participating restricted awards) and 10,377,787 shares issued and outstanding at December 31, 2015 (including 144,717 shares of unvested participating restricted awards) | 115 | 104 | ||
Additional paid-in capital | 85,421 | 61,008 | ||
Retained earnings | 130,008 | 116,941 | ||
Accumulated other comprehensive income | (758) | 2,274 | ||
Total stockholders’ equity | 214,786 | 180,327 | 166,950 | 151,334 |
Total liabilities and stockholders’ equity | 2,526,269 | 2,285,531 | ||
Parent | ||||
Assets | ||||
Cash | 497 | 2,737 | $ 699 | $ 729 |
Investment in subsidiaries | 227,960 | 191,949 | ||
Other assets | 1,243 | 546 | ||
Total assets | 229,700 | 195,232 | ||
Liabilities | ||||
Subordinated debt | 14,834 | 14,822 | ||
Accrued interest payable | 78 | 78 | ||
Other liabilities | 2 | 5 | ||
Total liabilities | 14,914 | 14,905 | ||
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; 11,475,742 shares issued and outstanding at December 31, 2016 (including 141,580 shares of unvested participating restricted awards) and 10,377,787 shares issued and outstanding at December 31, 2015 (including 144,717 shares of unvested participating restricted awards) | 115 | 104 | ||
Additional paid-in capital | 85,421 | 61,008 | ||
Retained earnings | 130,008 | 116,941 | ||
Accumulated other comprehensive income | (758) | 2,274 | ||
Total stockholders’ equity | 214,786 | 180,327 | ||
Total liabilities and stockholders’ equity | $ 229,700 | $ 195,232 |
Parent Company Only Financial90
Parent Company Only Financial Statements - Balance Sheet (Additional) (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,475,742 | 10,377,787 |
Common stock, shares outstanding | 11,475,742 | 10,377,787 |
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 | 141,580 | 144,717 |
Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 11,475,742 | 10,377,787 |
Common stock, shares outstanding | 11,475,742 | 10,377,787 |
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 | 141,580 | 144,717 |
Parent Company Only Financial91
Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other income | $ 2,393 | $ 2,465 | $ 2,340 | ||||||||
Interest expense | $ 1,424 | $ 1,374 | $ 1,343 | $ 1,382 | $ 1,275 | $ 1,264 | $ 1,253 | $ 1,385 | 5,523 | 5,177 | 5,243 |
Income before income taxes | 7,315 | 6,965 | 7,062 | 6,570 | 6,902 | 6,346 | 5,370 | 5,644 | 27,912 | 24,262 | 22,236 |
Provision for (benefit from) income tax | 2,362 | 2,251 | 2,291 | 2,257 | 2,181 | 2,054 | 1,855 | 2,024 | 9,161 | 8,114 | 7,585 |
Net income | $ 4,953 | $ 4,714 | $ 4,771 | $ 4,313 | $ 4,721 | $ 4,292 | $ 3,515 | $ 3,620 | 18,751 | 16,148 | 14,651 |
Parent | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Equity in undistributed net income of subsidiaries | 19,313 | 17,277 | 13,744 | ||||||||
Dividend distributed by subsidiaries | 150 | 0 | 1,850 | ||||||||
Loss distributed by divested subsidiary | 0 | (210) | 0 | ||||||||
Other income | 0 | 17 | 0 | ||||||||
Total income | 19,463 | 17,084 | 15,594 | ||||||||
Interest expense | 928 | 1,071 | 1,177 | ||||||||
Other operating expenses | 194 | 500 | 194 | ||||||||
Total operating expenses | 1,122 | 1,571 | 1,371 | ||||||||
Income before income taxes | 18,341 | 15,513 | 14,223 | ||||||||
Provision for (benefit from) income tax | (410) | (635) | (428) | ||||||||
Net income | $ 18,751 | $ 16,148 | $ 14,651 |
Parent Company Only Financial92
Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 4,953 | $ 4,714 | $ 4,771 | $ 4,313 | $ 4,721 | $ 4,292 | $ 3,515 | $ 3,620 | $ 18,751 | $ 16,148 | $ 14,651 |
Changes in: | |||||||||||
Subordinated debt issuance costs | 12 | (178) | 0 | ||||||||
Accrued interest payable | (13) | (290) | 1 | ||||||||
Net cash provided by operating activities | 27,039 | 25,723 | 13,140 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash used in (provided by) investing activities | (252,508) | (259,860) | (179,286) | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of subordinated debt | 0 | (10,825) | 0 | ||||||||
Proceeds from the issuance of subordinated debt | 0 | 15,000 | 0 | ||||||||
Cash dividends paid | (5,684) | (5,158) | (4,853) | ||||||||
Proceeds from issuance of common stock | 21,183 | 1,448 | 1,283 | ||||||||
Proceeds from exercise of stock options, net | 388 | 431 | 889 | ||||||||
Tax benefit from stock-based compensation | 789 | 217 | 320 | ||||||||
Net cash provided by (used in) financing activities | 224,449 | 245,486 | 152,559 | ||||||||
Net (decrease) increase in cash and cash equivalents | (1,020) | 11,349 | (13,587) | ||||||||
Cash and cash equivalents, beginning of year | 51,495 | 40,146 | 51,495 | 40,146 | 53,733 | ||||||
Cash and cash equivalents, end of year | 50,475 | 51,495 | 50,475 | 51,495 | 40,146 | ||||||
Parent | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 18,751 | 16,148 | 14,651 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed net income of subsidiaries | (19,313) | (17,277) | (13,744) | ||||||||
Payment from subsidiary bank for stock compensation expense | 2,348 | 1,791 | 1,704 | ||||||||
Changes in: | |||||||||||
Other assets | (697) | (36) | (277) | ||||||||
Other liabilities | (3) | (12) | (3) | ||||||||
Payments Related to Tax Withholding for Share-based Compensation | (284) | 0 | 0 | ||||||||
Subordinated debt issuance costs | 12 | (178) | 0 | ||||||||
Accrued interest payable | 0 | (292) | 0 | ||||||||
Net cash provided by operating activities | 814 | 144 | 2,331 | ||||||||
Cash flows from investing activities: | |||||||||||
Investment in subsidiary | (19,730) | 781 | 0 | ||||||||
Net cash used in (provided by) investing activities | (19,730) | 781 | 0 | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of subordinated debt | 0 | (10,825) | 0 | ||||||||
Proceeds from the issuance of subordinated debt | 0 | 15,000 | 0 | ||||||||
Cash dividends paid | (5,684) | (5,158) | (4,853) | ||||||||
Proceeds from issuance of common stock | 21,183 | 1,448 | 1,283 | ||||||||
Proceeds from exercise of stock options, net | 388 | 431 | 889 | ||||||||
Tax benefit from stock-based compensation | 789 | 217 | 320 | ||||||||
Net cash provided by (used in) financing activities | 16,676 | 1,113 | (2,361) | ||||||||
Net (decrease) increase in cash and cash equivalents | (2,240) | 2,038 | (30) | ||||||||
Cash and cash equivalents, beginning of year | $ 2,737 | $ 699 | 2,737 | 699 | 729 | ||||||
Cash and cash equivalents, end of year | $ 497 | $ 2,737 | $ 497 | $ 2,737 | $ 699 |
Quarterly Results of Operatio93
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 24,027 | $ 23,191 | $ 22,632 | $ 22,465 | $ 21,971 | $ 21,224 | $ 20,437 | $ 19,839 | $ 92,315 | $ 83,471 | $ 76,473 |
Interest expense | 1,424 | 1,374 | 1,343 | 1,382 | 1,275 | 1,264 | 1,253 | 1,385 | 5,523 | 5,177 | 5,243 |
Net interest income | 22,603 | 21,817 | 21,289 | 21,083 | 20,696 | 19,960 | 19,184 | 18,454 | 86,792 | 78,294 | 71,230 |
Provision for loan losses | 490 | 1,386 | 267 | 850 | 1,167 | 250 | 1,225 | 625 | 2,993 | 3,267 | 1,395 |
Net interest income after provision for loan losses | 22,113 | 20,431 | 21,022 | 20,233 | 19,529 | 19,710 | 17,959 | 17,829 | 83,799 | 75,027 | 69,835 |
Non-interest income | 3,514 | 3,402 | 3,519 | 3,204 | 3,615 | 3,177 | 3,222 | 3,125 | |||
Net gains on sales of investment securities | 191 | 546 | 63 | 2 | 465 | 7 | 456 | 900 | 802 | 1,828 | 1,619 |
Non-interest expense | 18,503 | 17,414 | 17,542 | 16,869 | 16,707 | 16,548 | 16,267 | 16,210 | 70,328 | 65,732 | 62,031 |
Income before income taxes | 7,315 | 6,965 | 7,062 | 6,570 | 6,902 | 6,346 | 5,370 | 5,644 | 27,912 | 24,262 | 22,236 |
Provision for income taxes | 2,362 | 2,251 | 2,291 | 2,257 | 2,181 | 2,054 | 1,855 | 2,024 | 9,161 | 8,114 | 7,585 |
Net income | $ 4,953 | $ 4,714 | $ 4,771 | $ 4,313 | $ 4,721 | $ 4,292 | $ 3,515 | $ 3,620 | $ 18,751 | $ 16,148 | $ 14,651 |
Basic earnings per share | $ 0.43 | $ 0.41 | $ 0.45 | $ 0.41 | $ 0.46 | $ 0.41 | $ 0.34 | $ 0.35 | $ 1.71 | $ 1.56 | $ 1.45 |
Diluted earnings per share | $ 0.43 | $ 0.41 | $ 0.45 | $ 0.41 | $ 0.45 | $ 0.41 | $ 0.34 | $ 0.35 | $ 1.70 | $ 1.55 | $ 1.44 |