Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 05, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ENTERPRISE BANCORP INC /MA/ | |
Entity Central Index Key | 0001018399 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 11,897,132 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 32,833 | $ 39,927 |
Interest-earning deposits | 42,024 | 23,867 |
Total cash and cash equivalents | 74,857 | 63,794 |
Investments: | ||
Debt securities at fair value | 505,671 | 504,788 |
Equity securities at fair value | 588 | 467 |
Total investment securities at fair value | 506,259 | 505,255 |
Federal Home Loan Bank (FHLB) stock | 5,624 | 4,484 |
Loans held for sale | 476 | 601 |
Loans, less allowance for loan losses of $39,764 at March 31, 2020 and $33,614 at December 31, 2019 | 2,644,163 | 2,531,845 |
Premises and equipment, net | 46,734 | 45,419 |
Lease right-of-use asset | 18,893 | 19,048 |
Accrued interest receivable | 12,977 | 12,295 |
Deferred income taxes, net | 9,045 | 8,732 |
Bank-owned life insurance | 30,929 | 30,776 |
Prepaid income taxes | 1,005 | 572 |
Prepaid expenses and other assets | 10,535 | 6,572 |
Goodwill | 5,656 | 5,656 |
Total assets | 3,367,153 | 3,235,049 |
Liabilities | ||
Deposits | 2,912,850 | 2,786,730 |
Borrowed funds | 84,169 | 96,173 |
Subordinated debt | 14,876 | 14,872 |
Lease liability | 17,968 | 18,104 |
Accrued expenses and other liabilities | 31,756 | 21,683 |
Accrued interest payable | 897 | 846 |
Total liabilities | 3,062,516 | 2,938,408 |
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; 40,000,000 shares authorized; 11,897,322 shares issued and outstanding at March 31, 2020 and 11,825,331 shares issued and outstanding at December 31, 2019 | 119 | 118 |
Additional paid-in capital | 94,920 | 94,170 |
Retained earnings | 193,791 | 191,843 |
Accumulated other comprehensive income | 15,807 | 10,510 |
Total stockholders' equity | 304,637 | 296,641 |
Total liabilities and stockholders' equity | $ 3,367,153 | $ 3,235,049 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||||
Allowance for loan losses | $ 39,764 | $ 33,614 | $ 33,729 | $ 33,849 |
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 | ||
Common stock, shares issued | 11,897,322 | 11,825,331 | ||
Common Stock, Shares, Outstanding | 11,897,322 | 11,825,331 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income: | ||
Loans and loans held for sale | $ 31,298 | $ 29,616 |
Investment securities | 3,484 | 3,222 |
Other interest-earning assets | 165 | 459 |
Total interest and dividend income | 34,947 | 33,297 |
Interest expense: | ||
Deposits | 4,405 | 4,706 |
Borrowed funds | 415 | 279 |
Subordinated debt | 231 | 228 |
Total interest expense | 5,051 | 5,213 |
Net interest income | 29,896 | 28,084 |
Provision for loan losses | 6,147 | (400) |
Net interest income after provision for loan losses | 23,749 | 28,484 |
Non-interest income: | ||
Wealth management fees | 1,440 | 1,299 |
Deposit and interchange fees | 1,691 | 1,564 |
Income on bank-owned life insurance, net | 153 | 162 |
Net gains (losses) on sales of debt securities | 100 | (1) |
Net gains on sales of loans | 147 | 36 |
Other income | 667 | 776 |
Total non-interest income | 4,198 | 3,836 |
Non-interest expense: | ||
Salaries and employee benefits | 14,819 | 13,481 |
Occupancy and equipment expenses | 2,176 | 2,212 |
Technology and telecommunications expenses | 2,188 | 1,726 |
Advertising and public relations expenses | 645 | 705 |
Audit, legal and other professional fees | 605 | 423 |
Deposit insurance premiums | 404 | 351 |
Supplies and postage expenses | 247 | 224 |
Other operating expenses | 1,595 | 1,728 |
Total non-interest expense | 22,679 | 20,850 |
Income before income taxes | 5,268 | 11,470 |
Provision for income taxes | 1,251 | 2,774 |
Net income | $ 4,017 | $ 8,696 |
Basic earnings per share | $ 0.34 | $ 0.74 |
Diluted earnings per share | $ 0.34 | $ 0.74 |
Basic weighted average common shares outstanding | 11,841,392 | 11,730,482 |
Diluted weighted average common shares outstanding | 11,877,031 | 11,783,405 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,017 | $ 8,696 |
Net change in fair value of debt securities | 7,360 | 3,134 |
Net change in fair value of cash flow hedges | (2,063) | 0 |
Total other comprehensive income, net of tax | 5,297 | 3,134 |
Total comprehensive income, net | $ 9,314 | $ 11,830 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive income/(loss), net |
Balance, beginning, shares, outstanding at Dec. 31, 2018 | 11,708,218 | ||||
Balance, beginning at Dec. 31, 2018 | $ 255,297 | $ 117 | $ 91,281 | $ 165,183 | $ (1,284) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 8,696 | 8,696 | |||
Other comprehensive income (loss), net | 3,134 | 3,134 | |||
Common stock dividend declared | (1,875) | (1,875) | |||
Common stock issued under dividend reinvestment plan, shares | 9,341 | ||||
Common stock issued under dividend reinvestment plan | 298 | $ 0 | 298 | ||
Common stock issued, shares, other | 264 | ||||
Common stock issued, other | 8 | $ 0 | 8 | ||
Stock-based compensation, shares | 62,523 | ||||
Stock-based compensation | 599 | $ 1 | 598 | ||
Net settlement for employee taxes on restricted stock and options, shares | (2,741) | ||||
Net settlement for employee taxes on restricted stock and options | (240) | $ 0 | (240) | ||
Stock options exercised, net, shares | 20,509 | ||||
Stock options exercised, net | 144 | $ 0 | 144 | ||
Balance, ending, shares, outstanding at Mar. 31, 2019 | 11,798,114 | ||||
Balance, ending at Mar. 31, 2019 | $ 266,061 | $ 118 | 92,089 | 172,004 | 1,850 |
Balance, beginning, shares, outstanding at Dec. 31, 2019 | 11,825,331 | 11,825,331 | |||
Balance, beginning at Dec. 31, 2019 | $ 296,641 | $ 118 | 94,170 | 191,843 | 10,510 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 4,017 | 4,017 | |||
Other comprehensive income (loss), net | 5,297 | 5,297 | |||
Common stock dividend declared | (2,069) | (2,069) | |||
Common stock issued under dividend reinvestment plan, shares | 11,050 | ||||
Common stock issued under dividend reinvestment plan | 303 | $ 0 | 303 | ||
Common stock issued, shares, other | 473 | ||||
Common stock issued, other | 7 | $ 0 | 7 | ||
Stock-based compensation, shares | 66,057 | ||||
Stock-based compensation | 607 | $ 1 | 606 | ||
Net settlement for employee taxes on restricted stock and options, shares | (6,329) | ||||
Net settlement for employee taxes on restricted stock and options | (182) | $ 0 | (182) | ||
Stock options exercised, net, shares | 740 | ||||
Stock options exercised, net | $ 16 | $ 0 | 16 | ||
Balance, ending, shares, outstanding at Mar. 31, 2020 | 11,897,322 | 11,897,322 | |||
Balance, ending at Mar. 31, 2020 | $ 304,637 | $ 119 | $ 94,920 | $ 193,791 | $ 15,807 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividend paid, per share | $ 0.175 | $ 0.16 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 4,017 | $ 8,696 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 6,147 | (400) | |
Depreciation and amortization | 1,609 | 1,476 | |
Stock-based compensation expense | 426 | 426 | |
Income on bank-owned life insurance, net | (153) | (162) | |
Net (gains) losses on sales of debt securities | (100) | 1 | |
Mortgage loans originated for sale | (7,957) | (1,443) | |
Proceeds from mortgage loans sold | 8,229 | 1,848 | |
Net gains on sales of loans | (147) | (36) | |
Net losses (gains) on equity securities | 198 | (186) | |
Changes in: | |||
Increase in other assets | (3,758) | (902) | |
Increase (decrease) in other liabilities | 5,328 | (3,355) | |
Net cash provided by operating activities | 13,839 | 5,963 | |
Cash flows from investing activities: | |||
Proceeds from sales of debt securities | 2,627 | 3,648 | |
Purchase of debt securities | (6,350) | (38,788) | |
Proceeds from maturities, calls and pay-downs of debt securities | 11,283 | 7,228 | |
Net purchases of equity securities | (319) | (415) | |
Net (purchases) proceeds from the sales of FHLB capital stock | (1,140) | 3,866 | |
Net (increase) decrease in loans | (118,465) | 2,894 | |
Additions to premises and equipment, net | (2,603) | (1,969) | |
Net cash used in investing activities | (114,967) | (23,536) | |
Cash flows from financing activities: | |||
Net increase in deposits | 126,120 | 191,384 | |
Net decrease in borrowed funds | (12,004) | (100,004) | |
Cash dividends paid, net of DRP | (1,766) | (1,577) | |
Proceeds from issuance of common stock | 7 | 8 | |
Net settlement for employee taxes on restricted stock and options | (182) | (240) | |
Net proceeds from stock option exercises | 16 | 144 | |
Net cash provided by financing activities | 112,191 | 89,715 | |
Net increase in cash and cash equivalents | 11,063 | 72,142 | |
Cash and cash equivalents at beginning of period | 63,794 | 63,120 | $ 63,120 |
Cash and cash equivalents at end of period | $ 74,857 | $ 135,262 | $ 63,794 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Organization of the Company and Basis of Presentation The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2019 audited consolidated financial statements and notes thereto contained in the 2019 Annual Report on Form 10-K of Enterprise Bancorp, Inc. as filed with the Securities and Exchange Commission (the "SEC") on March 10, 2020 (the " 2019 Annual Report on Form 10-K"). The Company has not materially changed its significant accounting policies from those disclosed in its 2019 Annual Report on Form 10-K, other than to elect options for the temporary deferral of certain accounting guidance as allowed under the recently enacted Coronavirus Aid, Relief, and Economic Security ("CARES") Act as discussed under Item (c) "Accounting Policies," below in this Note 1. See also Item (e) "Recent Accounting Pronouncements," under the subheading "Accounting pronouncements adopted by the Company," below in this Note 1. The accompanying unaudited consolidated interim 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, commonly referred to as Enterprise Bank ("the Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, both organized under the laws of the State of Delaware, to engage in insurance sales activities and offer 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's headquarters and the Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. At March 31, 2020 , the Company had 25 full-service branch banking offices serving the Greater Merrimack Valley, Nashoba Valley and North Central regions of Massachusetts and Southern New Hampshire (Southern Hillsborough and Rockingham counties). The Company is also scheduled to open a branch in North Andover, Massachusetts in the second half of 2020. Through the Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, and commercial insurance services. The Company also provides a range of wealth management, wealth services and trust services delivered via two channels, Enterprise Wealth Management and Enterprise Wealth 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. The Federal Deposit Insurance Corporation (the "FDIC") and the Massachusetts Division of Banks (the "Division") have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Division also retains supervisory jurisdiction over the Company. The accompanying unaudited consolidated interim financial statements and notes thereto have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions for SEC Form 10-Q through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying unaudited consolidated interim financial statements. Certain previous years' amounts in the audited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. Interim results are not necessarily indicative of results to be expected for the entire year, or any future period. (b) Uses of Estimates In preparing the unaudited consolidated interim financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the period then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. As discussed in the Company's 2019 Annual Report on Form 10-K, the three most significant areas in which management applies critical assumptions and estimates are: the estimates of the allowance for loan losses, impairment review of investment securities, and the impairment review of goodwill. Refer to Note 1, "Summary of Significant Accounting Policies," to the Company's audited consolidated financial statements included in the Company's 2019 Annual Report on Form 10-K for accounting policies related to these significant estimates. (c) Accounting Policies Restricted Cash and Investments When the Company has pledged cash as collateral in relation to certain derivatives, the cash is carried as restricted cash within "Interest-earning deposits" on the Company's Consolidated Balance Sheet. See Note 8, "Derivatives and Hedging Activities," to the Company's unaudited consolidated interim financial statements below in Quarterly Report on this Form 10-Q ("this Form 10-Q") for more information about the Company's collateral related to its derivatives. The Bank is also typically required by the Federal Reserve Bank of Boston ("FRB") to maintain in reserves certain amounts of vault cash and/or deposits with the FRB, however, in response to the COVID-19 pandemic, this requirement has been eliminated until further notice. As a member of the FHLB, the Company is required to purchase certain levels of FHLB capital stock at par value in association with outstanding advances from the FHLB. This stock represents the only restricted investment held by the Company and is carried at cost, which management believes approximates fair value. Based on management's periodic review for other-than-temporary impairment ("OTTI"), the Company has not recorded any OTTI charges on this investment to date. Other Accounting Policies The CARES Act allows certain financial institutions the option to defer the adoption of the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-13 (Measurement of Credit Losses on Financial Instruments), including the current expected credit loss ("CECL") methodology for estimating allowances for credit losses, during the period beginning on March 27, 2020 until the earlier of (1) the date on which the national emergency concerning the COVID-19 pandemic declared under the National Emergencies Act terminates; or (2) December 31, 2020. The Company has elected to defer the adoption of CECL. See Item (e) "Recent Accounting Pronouncements," under the subheading "Accounting pronouncements not yet adopted by the Company," below in this Note 1 for additional information on CECL. In addition, Section 4013 of the CARES Act provides the option for financial institutions to suspend troubled debt restructuring ("TDR") accounting under GAAP in certain circumstances, during the period beginning March 1, 2020 and ending on the (1) earlier of December 31, 2020; or (2) the date that is 60 days after the date on which the national emergency concerning the COVID-19 pandemic declared under the National Emergencies Act terminates. The Company is suspending TDR accounting, which primarily impacts financial statement disclosure, for loans that have had a short-term payment deferral since March 1, 2020, as long as those loans were current and risk rated as “pass” prior to the onset of the COVID-19 pandemic. (d) Subsequent Events The Company has evaluated subsequent events and transactions from March 31, 2020 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP and determined that outside of the items noted below, there were no material subsequent events requiring recognition or disclosure. From April 3, 2020 through May 4, 2020, covering the period that funding was approved for the Paycheck Protection Program (the “PPP”) though the most recently obtainable date, the Company had submitted and received approval from the U.S. Small Business Administration ("SBA") for approximately 2,400 PPP applications for approximately $500.0 million in PPP loans with the median approved loan size being $74 thousand . The PPP program is administered by the SBA and created under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). In April 2020, the Company established access to the FRB's PPP Liquidity Facility ("PPPLF"), which provides funding secured by PPP pledged loans at a borrowing rate of 0.35% . Advances issued under the PPPLF are non-recourse. The amount and term of an advance matches the amount and remaining term of the PPP loans pledged, which is a maximum of two years from the loan origination date. PPP loans are fully guaranteed by the SBA and have no impact on our risk-based capital ratios. PPP loans pledged as collateral for the PPPLF are excluded from the average assets used in the leverage ratio calculation. As of May 7th, the Company borrowed $43.7 million under the PPPLF. As noted above, under Item (c) "Accounting Policies," section 4013 of the CARES Act provides financial institutions the option to suspend TDR accounting under GAAP in certain circumstances and the Company has elected that option. The Company has worked proactively with customers experiencing financial challenges from the COVID-19 pandemic. The Company had granted short-term payment deferrals related to COVID-19 on 1,135 loans through April 30, 2020 , the latest date information was obtainable. As of March 31, 2020 , these loans had an outstanding balance as of $596.0 million, or 22.2% of the total loan portfolio. All loans remain accruing. (e) Recent Accounting Pronouncements The tables below summarize recent accounting pronouncements issued by the FASB that were either recently adopted by the Company or have not yet been adopted. For pronouncements not yet adopted, the effective date listed below is in line with the required adoption date for public business entities, such as the Company, though certain accounting pronouncements may permit early adoption. For more detailed information regarding these pronouncements, refer to the FASB's ASUs. Accounting pronouncements adopted by the Company Standard/Adoption Date Description Effect on Financial Statements or Other Significant Matters ASU No. 2018-13, Fair Value Measurement January 1, 2020 The amendments in this ASU modify the disclosure requirements primarily related to level 3 fair value measurements of the fair value hierarchy. The adoption of ASU No. 2018-13 in January 2020 did not have a material impact on the Company's consolidated financial statements and results of operations because this ASU primarily relates to disclosure requirements and the dollar amounts of related assets held by the Company are immaterial. ASU No.2018-15, Intangibles-Goodwill and Other- Internal-Use Software (ASU Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract January 1, 2020 The major provision in the amendments in this ASU require an entity to capitalize certain implementation costs incurred in a hosting arrangement that is a service contract in accordance with current GAAP for internal-use software and expense these costs over the term of the hosting arrangement. Additionally, these capitalized implementation costs are required to be reviewed for impairment in accordance with current GAAP for internal-use software. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of ASU No. 2018-15 in January 2020 did not have a material impact on the Company's consolidated financial statements and results of operations. Accounting pronouncements not yet adopted by the Company Standard/Anticipated Adoption Date Description Effect on Financial Statements or Other Significant Matters ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The earlier of (1) the date on which the national emergency concerning the COVID-19 pandemic declared by the National Emergencies Act terminates; or (2) December 31, 2020. 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 ("CECL"). 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 report amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The Statement of Income 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. The Company was originally required to adopt this standard effective January 1, 2020, however, in accordance with the CARES Act, the Company elected to defer the adoption of this standard. Upon adoption, the Company estimates a reduction to retained earnings in the range of $1.0 to $5.0 million, net of tax. The Company continues to monitor regulatory guidance related to the deferment. In March 2020, the regulatory banking agencies issued an interim final rule that allows banking institutions that implement CECL during 2020 to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period. The Company is currently assessing its options at this time and will make its election when the Company adopts CECL. ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (ASU Subtopic 715-20) - Disclosure Framework- Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 The amendments in this ASU modify the disclosure requirements on defined benefit plans including requiring disclosures about significant gains and losses related to changes in the benefit obligation. The adoption of ASU No. 2018-14 will not have a material impact on the Company's consolidated financial statements and results of operations because this ASU primarily relates to disclosure requirements and the balances of the benefit plans impacted by this ASU are immaterial to the Company. Accounting pronouncements not yet adopted by the Company-continued Standard/Anticipated Adoption Date Description Effect on Financial Statements or Other Significant Matters ASU No. 2020-04. Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting January 1, 2022 The amendments in the provision are effective for a limited period and mainly address accounting and reporting challenges due to the transition from LIBOR on existing contracts. The optional expedients may be applied to loans, borrowings, leases and derivatives. The standard 1) simplifies the accounting analyses for contract modifications and 2) simplifies the hedge effectiveness assessment and allows hedging relationships impacted by the LIBOR transition to continue. The Company is assessing the impact of this standard but does not expect that it will have a material impact on the Company's consolidated financial statements, or results of operations. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities As of March 31, 2020 , and December 31, 2019 , the investment portfolio was primarily comprised of debt securities, with a small portion of the portfolio invested in equity securities. See also the section "Restricted Cash and Investments," under Item (c), "Accounting Policies," contained in Note 1, "Summary of Significant Accounting Policies," above in this Form 10-Q, for further information regarding the Company's investment in FHLB Stock. See Note 14, "Fair Value Measurements," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for further information regarding the Company's fair value measurements for investment securities. Debt Securities The amortized cost and fair values of debt securities at the dates specified are summarized as follows: March 31, 2020 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 1,000 $ 6 $ — $ 1,006 Residential federal agency MBS (1) 181,399 7,361 47 188,713 Commercial federal agency MBS (1) 110,441 6,372 — 116,813 Taxable municipal securities 84,034 4,077 237 87,874 Tax-exempt municipal securities 91,554 4,991 1 96,544 Corporate bonds 13,817 467 19 14,265 Certificate of deposits (2) ("CDs") 454 2 — 456 Total debt securities, at fair value $ 482,699 $ 23,276 $ 304 $ 505,671 December 31, 2019 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 999 $ 5 $ — $ 1,004 Residential federal agency MBS (1) 190,392 2,599 333 192,658 Commercial federal agency MBS (1) 111,182 3,453 — 114,635 Taxable municipal securities 79,095 2,726 134 81,687 Tax-exempt municipal securities 95,342 4,696 — 100,038 Corporate bonds 13,826 485 — 14,311 CDs (2) 454 1 — 455 Total debt securities, at fair value $ 491,290 $ 13,965 $ 467 $ 504,788 __________________________________________ (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) CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. As of the dates reflected in the tables above, the majority of residential and commercial federal agency MBS categories were collateralized mortgage obligations ("CMOs") issued by U.S. agencies. The remaining MBS investments totaled $23.7 million and $23.5 million at March 31, 2020 and December 31, 2019 , respectively. As of the dates reflected in the tables above, all of the Company's debt securities were classified as available-for-sale and carried at fair value. Net unrealized appreciation and depreciation on debt securities 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 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. Unrealized losses on debt securities that are deemed OTTI are generally charged to earnings, as described further in Note 1, "Summary of Significant Accounting Policies," under Item (e), "Investments," to the Company's audited consolidated financial statements contained in the Company's 2019 Annual Report on Form 10-K. Gains or losses will be recognized in the Consolidated Statement of Income if the securities are sold. The following tables summarize debt securities with unrealized losses, due to the fair values having declined below the amortized costs of the individual investments, by the duration of their continuous unrealized loss positions at March 31, 2020 and December 31, 2019 : March 31, 2020 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 Residential federal agency MBS $ 9,392 $ 47 $ — $ — $ 9,392 $ 47 3 Taxable municipal securities 6,804 237 — — 6,804 237 7 Tax-exempt municipal securities 582 1 — — 582 1 1 Corporate bonds 2,304 19 — — 2,304 19 17 Total temporarily impaired debt securities $ 19,082 $ 304 $ — $ — $ 19,082 $ 304 28 December 31, 2019 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 Residential federal agency MBS $ 36,464 $ 263 $ 5,060 $ 70 $ 41,524 $ 333 11 Taxable municipal securities 16,826 134 — — 16,826 134 15 Total temporarily impaired debt securities $ 53,290 $ 397 $ 5,060 $ 70 $ 58,350 $ 467 26 During the three months ended March 31, 2020 and 2019 , the Company did not record any OTTI on its investments in debt securities and at March 31, 2020 , management did not consider any debt securities to have OTTI. Management regularly reviews the portfolio for debt securities with unrealized losses that are other-than-temporarily impaired. There have been no material changes to the Company's process for assessing investments for OTTI as reported in the Company's 2019 Annual Report on Form 10-K. For more information about the Company's assessment for OTTI, see Note 2, "Investment Securities," to the Company's audited consolidated financial statements contained in the Company's 2019 Annual Report on Form 10-K. The contractual maturity distribution at March 31, 2020 of debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 11,425 $ 11,478 Due after one, but within five years 85,244 89,501 Due after five, but within ten years 165,531 174,885 Due after ten years 220,499 229,807 Total debt securities $ 482,699 $ 505,671 Scheduled contractual maturities shown above may not reflect the actual maturities of the investments. The actual MBS/CMO cash flows likely will be faster than presented above due to prepayments and amortization. Similarly, included in the table above are callable securities, comprised of municipal securities and corporate bonds, with a fair value of $89.8 million , 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 debt securities as collateral for deposit account balances of municipal customers, and for borrowing capacity with the FHLB and the FRB. The fair value of debt securities pledged as collateral for these purposes was $503.3 million at March 31, 2020 . Sales of debt securities for the three months ended March 31, 2020 and March 31, 2019 are summarized as follows: Three months ended March 31, (Dollars in thousands) 2020 2019 Amortized cost of debt securities sold (1) $ 2,527 $ 1,793 Gross realized gains on sales 100 2 Gross realized losses on sales — (3 ) Total proceeds from sales of debt securities $ 2,627 $ 1,792 _________________________________________ (1) Amortized cost of investments sold is determined on a specific identification basis and includes pending trades based on trade date, if applicable. Equity Securities The Company held equity securities with a fair value of $588 thousand at March 31, 2020 and $467 thousand at December 31, 2019 . At March 31, 2020 , the equity portfolio consisted primarily of investments in common stock of individual entities in the financial services industry and mutual funds held in conjunction with the Company's supplemental executive retirement and deferred compensation plan. Equity securities are accounted for under ASC Topic 321, "Investments-Equity Securities," and are recorded on the Company's consolidated balance sheet at fair value with changes in fair value recognized in the Company's consolidated income statement as a component of "Other Income." There were no sales of equity securities in either the three months ended March 31, 2020 or March 31, 2019 . For the three months ended March 31, 2020 , the Company recorded net losses of $198 thousand compared with net gains of $186 thousand for the three months ended March 31, 2019 to adjust the carrying value in each period to fair value. The amount recognized related to equity securities in "Other income" is dependent on the amount of dollars invested in equities, the magnitude of changes in equity market values, and the amount of gains or losses realized through equity sales. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans | Loans The Company manages its loan portfolio to avoid concentration by industry, relationship size and source of repayment to lessen its credit risk exposure. For additional information on the Company's lending products, see the heading "Lending Products" under Item 1, "Business," contained in the Company's 2019 Annual Report on Form 10-K. Loan Portfolio Classifications Major classifications of loans at the dates indicated were as follows: (Dollars in thousands) March 31, December 31, Commercial real estate $ 1,442,150 $ 1,394,179 Commercial and industrial 537,790 501,227 Commercial construction 345,683 317,477 Total commercial loans 2,325,623 2,212,883 Residential mortgages 254,188 247,373 Home equity 97,223 98,252 Consumer 10,194 10,054 Total retail loans 361,605 355,679 Gross loans 2,687,228 2,568,562 Deferred loan origination fees, net (3,301 ) (3,103 ) Total loans 2,683,927 2,565,459 Allowance for loan losses (39,764 ) (33,614 ) Net loans $ 2,644,163 $ 2,531,845 Commercial loans originated by other banks in which the Company is a participating institution are carried at the pro-rata share of ownership and amounted to $101.0 million at March 31, 2020 and $104.3 million at December 31, 2019 . See also "Loans serviced for others" below for information related to commercial loans participated out to various other institutions. Loans serviced for others At March 31, 2020 and December 31, 2019 , the Company was servicing residential mortgage loans owned by investors amounting to $15.0 million and $15.7 million , respectively. Additionally, the Company was servicing commercial loans originated by the Company and participated out to various other institutions amounting to $82.2 million and $80.2 million at March 31, 2020 and December 31, 2019 , respectively. Loans serving as collateral Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity as of the dates indicated are summarized below: (Dollars in thousands) March 31, December 31, Commercial real estate $ 227,585 $ 246,865 Residential mortgages 240,305 231,028 Home equity 7,639 7,676 Total loans pledged to FHLB $ 475,529 $ 485,569 See also Note 4, "Allowance for Loan Losses," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for information on the Company's credit risk management, non-accrual, impaired and troubled debt restructured loans and the allowance for loan losses. See Note 8, "Derivatives and Hedging Activities," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for information regarding interest-rate swap agreements related to certain commercial loans, and see Note 14, "Fair Value Measurements," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for further information regarding the Company's fair value measurements for loans. |
Allowance For Loan Losses
Allowance For Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Loss | Allowance for Loan Losses Allowance for probable loan losses methodology On a quarterly basis, management prepares an estimate of the allowance necessary to cover estimated probable credit losses. The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology makes use of specific reserves for loans individually evaluated and deemed impaired, and general reserves for larger pools of homogeneous loans, which are collectively evaluated relying on a combination of qualitative and quantitative factors that may affect credit quality of the pool. There have been no material changes to the Company's underwriting practices, credit risk management system, or to the allowance assessment methodology used to estimate loan loss exposure as reported in Note 4, "Allowance for Loan Losses," to the Company's audited consolidated financial statements contained in the Company's 2019 Annual Report on Form 10-K. As previously noted above, the Company has elected to defer the adoption of CECL, as allowed under the CARES Act, until the earlier of: (1) the date on which the national emergency concerning the COVID-19 pandemic declared under the National Emergencies Act terminates; or (2) December 31, 2020. The information that follows is presented under the incurred loss model. The balances of loans as of March 31, 2020 by portfolio classification 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 $ 14,166 $ 1,427,984 $ 1,442,150 Commercial and industrial 6,901 530,889 537,790 Commercial construction 5,304 340,379 345,683 Residential mortgages 1,206 252,982 254,188 Home equity 394 96,829 97,223 Consumer 38 10,156 10,194 Total gross loans $ 28,009 $ 2,659,219 $ 2,687,228 The balances of loans as of December 31, 2019 by portfolio classification 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 $ 17,515 $ 1,376,664 $ 1,394,179 Commercial and industrial 9,332 491,895 501,227 Commercial construction 3,347 314,130 317,477 Residential mortgages 1,229 246,144 247,373 Home equity 411 97,841 98,252 Consumer 44 10,010 10,054 Total gross loans $ 31,878 $ 2,536,684 $ 2,568,562 Credit quality indicators Early detection of credit issues is critical to minimize credit losses. Accordingly, management regularly monitors internal credit quality indicators such as, among others, the risk classification of adversely classified loans, past due and non-accrual loans, impaired and restructured loans, and the level of foreclosure activity. These credit quality indicators are discussed below. 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 which are evaluated to be of weaker credit quality are placed on the "watch credit list" and reviewed on a more frequent basis by management. Adversely classified loans may be accruing or in non-accrual status and may be additionally designated as impaired or restructured, or some combination thereof. The following tables present the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the periods indicated: March 31, 2020 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 13,273 $ — $ — $ 1,428,877 $ 1,442,150 Commercial and industrial 8,550 2,352 — 526,888 537,790 Commercial construction 5,809 — — 339,874 345,683 Residential mortgages 1,799 — — 252,389 254,188 Home equity 565 — — 96,658 97,223 Consumer 65 1 — 10,128 10,194 Total gross loans $ 30,061 $ 2,353 $ — $ 2,654,814 $ 2,687,228 December 31, 2019 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 16,664 $ — $ — $ 1,377,515 $ 1,394,179 Commercial and industrial 10,900 2,370 — 487,957 501,227 Commercial construction 4,836 — — 312,641 317,477 Residential mortgages 1,825 — — 245,548 247,373 Home equity 455 — — 97,797 98,252 Consumer 69 3 — 9,982 10,054 Total gross loans $ 34,749 $ 2,373 $ — $ 2,531,440 $ 2,568,562 Total adversely classified loans amounted to 1.21% of total loans at March 31, 2020 , compared to 1.45% at December 31, 2019 . Past due and non-accrual loans The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated: Balance at March 31, 2020 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 8,687 $ 265 $ 3,886 $ 12,838 $ 1,429,312 $ 1,442,150 $ 8,605 Commercial and industrial 1,042 722 579 2,343 535,447 537,790 2,942 Commercial construction 2,591 720 2,831 6,142 339,541 345,683 2,831 Residential mortgages 1,346 — 301 1,647 252,541 254,188 394 Home equity 270 — 167 437 96,786 97,223 1,014 Consumer 34 7 — 41 10,153 10,194 15 Total gross loans $ 13,970 $ 1,714 $ 7,764 $ 23,448 $ 2,663,780 $ 2,687,228 $ 15,801 Balance at December 31, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 1,469 $ 3,914 $ 4,158 $ 9,541 $ 1,384,638 $ 1,394,179 $ 8,280 Commercial and industrial 576 1,034 265 1,875 499,352 501,227 3,285 Commercial construction 576 3,325 1,735 5,636 311,841 317,477 1,735 Residential mortgages 700 283 623 1,606 245,767 247,373 411 Home equity 645 — 169 814 97,438 98,252 1,040 Consumer 12 — 6 18 10,036 10,054 20 Total gross loans $ 3,978 $ 8,556 $ 6,956 $ 19,490 $ 2,549,072 $ 2,568,562 $ 14,771 At March 31, 2020 and December 31, 2019 , all loans past due 90 days or more were carried as non-accrual, in addition to those loans that were less than 90 days past due where reasonable doubt existed as to the full and timely collection of interest or principal that have also been designated as non-accrual, despite their payment due status shown in the tables above. Non-accrual loans that were not adversely classified amounted to $59 thousand at March 31, 2020 and $84 thousand at December 31, 2019 . These balances primarily represented the guaranteed portions of non-performing SBA loans. The majority of the non-accrual loan balances were also carried as impaired loans during the periods noted and are discussed further below. The ratio of non-accrual loans to total loans amounted to 0.59% at March 31, 2020 and 0.58% and at December 31, 2019 . At March 31, 2020 , additional funding commitments for non-accrual loans were not material. Impaired loans Impaired loans are individually significant loans for which management considers it probable that not all amounts due (principal and interest) will be collected in accordance with the original contractual terms. Impaired loans include loans that have been modified in a troubled debt restructuring ("TDR"), see "Troubled Debt Restructurings" below. Impaired loans are individually evaluated and 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. The carrying value of impaired loans amounted to $28.0 million and $31.9 million at March 31, 2020 and December 31, 2019 , respectively. Total accruing impaired loans amounted to $12.2 million and $17.1 million at March 31, 2020 and December 31, 2019 , respectively, while non-accrual impaired loans amounted to $15.8 million and $14.8 million as of March 31, 2020 and December 31, 2019 , respectively. The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the dates indicated: Balance at March 31, 2020 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 15,257 $ 14,166 $ 13,783 $ 383 $ 29 Commercial and industrial 9,015 6,901 5,264 1,637 908 Commercial construction 5,330 5,304 2,796 2,508 1,473 Residential mortgages 1,317 1,206 1,206 — — Home equity 575 394 394 — — Consumer 39 38 — 38 38 Total $ 31,533 $ 28,009 $ 23,443 $ 4,566 $ 2,448 Balance at December 31, 2019 (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 $ 18,537 $ 17,515 $ 17,129 $ 386 $ 31 Commercial and industrial 11,455 9,332 7,405 1,927 974 Commercial construction 3,359 3,347 3,347 — — Residential mortgages 1,331 1,229 1,229 — — Home equity 607 411 411 — — Consumer 44 44 — 44 44 Total $ 35,333 $ 31,878 $ 29,521 $ 2,357 $ 1,049 The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the three months indicated: Three months ended March 31, 2020 Three months ended March 31, 2019 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 15,273 $ 72 $ 15,803 $ 120 Commercial and industrial 7,808 28 11,919 115 Commercial construction 4,755 — 1,734 25 Residential mortgages 1,220 2 890 1 Home equity 402 — 507 — Consumer 41 — 19 — Total $ 29,499 $ 102 $ 30,872 $ 261 At March 31, 2020 , additional funding commitments for impaired loans were not material. 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 one or a combination of the following: 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 balances above, as of March 31, 2020 and December 31, 2019 , were $18.1 million and $21.1 million , respectively. TDR loans on accrual status amounted to $12.2 million and $17.1 million at March 31, 2020 and December 31, 2019 , respectively. TDR loans included in non-performing loans amounted to $5.9 million at March 31, 2020 and $4.0 million at December 31, 2019 . The Company continues to work with customers and enters into loan modifications (which may or may not be TDRs) 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. At March 31, 2020 , additional funding commitments for TDR loans were not material. The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the periods indicated: Three months ended March 31, 2020 March 31, 2019 (Dollars in thousands) Number of restructurings Amount Number of restructurings Amount Extended maturity date 2 $ 1,697 — $ — Temporary payment reduction and payment re-amortization of remaining principal over extended term 2 978 6 607 Forbearance of post default rights 2 1,022 — — Other payment concessions — — 1 314 Total 6 $ 3,697 7 $ 921 Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above $ 1,275 $ 91 Loans modified as TDRs during the three months ended March 31, 2020 and March 31, 2019 are detailed below: Three months ended March 31, 2020 March 31, 2019 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate — $ — $ — 1 $ 421 $ 415 Commercial and industrial 1 474 409 5 194 192 Commercial construction 4 3,440 3,287 — — — Residential mortgages — — — 1 315 314 Home equity — — — — — — Consumer 1 1 1 — — — Total 6 $ 3,915 $ 3,697 7 $ 930 $ 921 There were no subsequent charge-offs associated with the new TDRs noted in the table above during the three months ended March 31, 2020 or three months ended March 31, 2019 . Payment defaults, during the three months ended March 31, 2020 and March 31, 2019 on loans modified as TDRs within the preceding twelve months are detailed below: Three months ended March 31, 2020 March 31, 2019 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate 1 $ 218 — $ — Commercial and industrial 1 151 2 174 Commercial construction 2 1,697 — — Residential mortgages — — — — Home equity — — — — Consumer 2 4 — — Total 6 $ 2,070 2 $ 174 See "Financial Condition" in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," under the headings "Credit Risk" and "Allowance for Loan Losses" in this Form 10-Q for additional information about changes in the Company's credit quality indicators since December 31, 2019 . Other real estate owned ( " OREO " ) Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as OREO. When property is acquired, it is recorded at estimated fair value of the property acquired, less estimated costs to sell, establishing a new cost basis and carried on the Consolidated Balance Sheet in the line item "Prepaid expenses and other assets." The estimated fair value is based on market appraisals and the Company's internal analysis. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value are charged to non-interest expense. The Company had no OREO at March 31, 2020 , or December 31, 2019 , and the OREO carry value at March 31, 2019 was $255 thousand . There were no OREO additions during the three months ended March 31, 2020 and one addition during the three months ended March 31, 2019 . There were no sales, or subsequent write downs of OREO during the three months ended March 31, 2020 or 2019 . At both March 31, 2020 and December 31, 2019 , the Company had no 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. Allowance for loan loss activity The allowance for loan losses is an estimate of probable credit losses inherent in the loan portfolio as of the specified balance sheet dates. On a quarterly basis, management prepares an estimate of the allowance necessary to cover estimated probable credit losses. 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 allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The allowance for loan losses amounted to $39.8 million at March 31, 2020 , compared to $33.6 million at December 31, 2019 , and $33.7 million at March 31, 2019 . The allowance for loan losses to total loans ratio was 1.48% at March 31, 2020 , 1.31% at December 31, 2019 , and 1.41% at March 31, 2019 . Based on management's judgment as to the existing credit risks inherent in the loan portfolio, as discussed above under the heading "Credit Quality Indicators," management believes that the Company's allowance for loan losses is adequate to absorb probable losses from specifically known and other probable credit risks associated with the portfolio as of March 31, 2020 . Changes in the allowance for loan losses by portfolio classification for the three months ended March 31, 2020 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2019 $ 18,338 $ 9,129 $ 4,149 $ 1,195 $ 536 $ 267 $ 33,614 Provision 2,523 1,104 2,012 403 97 8 6,147 Recoveries — 107 — — 3 10 120 Less: Charge offs — 105 — — — 12 117 Ending Balance at March 31, 2020 $ 20,861 $ 10,235 $ 6,161 $ 1,598 $ 636 $ 273 $ 39,764 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 29 $ 908 $ 1,473 $ — $ — $ 38 $ 2,448 Allocated to loans collectively evaluated for impairment $ 20,832 $ 9,327 $ 4,688 $ 1,598 $ 636 $ 235 $ 37,316 Changes in the allowance for loan losses by portfolio classification for the three months ended March 31, 2019 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2018 $ 18,014 $ 10,493 $ 3,307 $ 1,160 $ 629 $ 246 $ 33,849 Provision (188 ) (406 ) 145 24 (4 ) 29 (400 ) Recoveries — 316 — — 2 5 323 Less: Charge offs — — — — — 43 43 Ending Balance at March 31, 2019 $ 17,826 $ 10,403 $ 3,452 $ 1,184 $ 627 $ 237 $ 33,729 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 6 $ 2,112 $ — $ 12 $ — $ 14 $ 2,144 Allocated to loans collectively evaluated for impairment $ 17,820 $ 8,291 $ 3,452 $ 1,172 $ 627 $ 223 $ 31,585 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases For the Company, material leases consist of operating leases on our facilities, mainly branch leases; leases 12-months or less and immaterial equipment leases have been excluded. As of March 31, 2020 , the Company had 15 operating real estate leases. The Company's leased facilities are contracted under various non-cancelable operating leases, most of which provide options to the Company to extend the lease periods and include periodic rent adjustments. While the Company typically exercises its option to extend lease terms, the lease contains provisions that allow the Company, upon notification, to terminate the lease at the end of the lease term, or any option period. Several real estate leases also provide the Company the right of first refusal should the property be offered for sale. During the third quarter of 2019, the Company finalized the purchase of one of the leased buildings in its main campus. Lease expenses for the three months ended March 31, 2020 and March 31, 2019 were $325 thousand and $334 thousand , respectively. Variable lease costs and short-term lease expenses included in lease expense during this period were immaterial. The weighted average remaining lease term for operating leases at March 31, 2020 was 27.1 years, and the weighted average discount rate was 3.79% . At March 31, 2020 , the remaining undiscounted cash flows by year of these lease liabilities were as follows: (Dollars in thousands) Operating Leases 2020 (nine remaining months) $ 939 2021 1,242 2022 1,244 2023 1,251 2024 1,256 Thereafter 23,344 Total lease payments $ 29,276 Less: Imputed interest 11,308 Total lease liability $ 17,968 In addition, the Company currently collects rent through non-cancellable leases for a small portion of the overall square-footage within its Lowell, Massachusetts campus headquarters and at one of its branch locations. These leases are deemed immaterial. See also Item (k), "Leases," contained in Note 1, "Summary of Significant Accounting Policies," to the Company's consolidated financial statements contained in the Company's 2019 Annual Report on Form 10-K, for further information regarding the accounting for the Company's leases. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are summarized as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Non-interest checking $ 858,718 $ 794,583 Interest-bearing checking 492,313 467,988 Savings 205,367 203,236 Money market 1,054,344 1,009,972 CDs $250,000 or less 216,490 220,751 CDs greater than $250,000 85,618 90,200 Deposits $ 2,912,850 $ 2,786,730 All of the Company' s deposits outstanding at both March 31, 2020 and December 31, 2019 were customer deposits. Deposits include reciprocal balances from checking, money market deposits and CDs received from participating banks in nationwide deposit networks as a result of our customers electing to participate in Company offered programs which allow for enhanced FDIC insurance. Essentially, the equivalent of the customers' original deposited funds comes back to the Company and are carried within the appropriate category under deposits. The Company's balances in these reciprocal products were $471.7 million and $419.7 million at March 31, 2020 and December 31, 2019 , respectively. See Note 14, "Fair Value Measurements," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for further information regarding the Company's fair value measurements for deposits. |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowed Funds and Subordinated Debt | Borrowed Funds and Subordinated Debt The Company's borrowed funds amounted to $84.2 million and $96.2 million at March 31, 2020 and December 31, 2019 , respectively, in FHLB advances. The contractual maturity distribution as of March 31, 2020 and December 31, 2019 , of borrowed funds with the weighted average cost for each category is set forth below: March 31, 2020 December 31, 2019 (Dollars in thousands) Balance Rate Balance Rate Overnight $ 5,000 0.37 % $ 92,000 1.85 % Within 12 months 78,698 1.84 % 3,697 2.22 % Over 5 years 471 — % 476 — % The Company's borrowings at March 31, 2020 maturing within 12 months, consisted primarily of $75.0 million in three-month FHLB borrowings used in conjunction with 3 to 5 year pay fixed interest rate swaps. The remainder of FHLB advances maturing within 12 months, along with advances maturing in over five years, are related to specific lending projects under the FHLB's community development program. At December 31, 2019 , borrowed funds, excluding overnight advances, related to the specific lending projects noted above. The Company also had outstanding subordinated debt (net of deferred issuance costs) of $14.9 million at both March 31, 2020 and December 31, 2019 , which consisted of $15.0 million in aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Notes") issued in January 2015 , with a 15 -year term and currently callable by the Company at a premium. Original debt issuance costs were $190 thousand and have been netted against the subordinated debt on the consolidated balance sheet in accordance with accounting guidance. These costs are being amortized to interest expense over the life of the Notes. The Notes are intended to qualify as Tier 2 capital for regulatory purposes and pay interest at a fixed rate of 6.00% per annum through January 30, 2025 , after which floating rates apply. Refer to Note 8, "Borrowed Funds and Subordinated Debt," to the Company's audited consolidated financial statements contained in the Company's 2019 Annual Report on Form 10-K for additional information about the Company's subordinated debt. See Note 2, "Investment Securities," and Note 3, "Loans," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained above, for further information regarding securities and loans pledged for borrowed funds. Refer to the "Liquidity" and "Borrowed Funds" sections in the "Financial Condition" section in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operation," of this Form 10-Q for additional information about other sources of funding available to the Company and the Company's borrowing capacity. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and may also, at times, use derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and unknown cash amounts, the value of which are determined by interest rates. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the earnings effect of the hedged forecasted transactions in a cash flow hedge. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (“AOCI”), net of tax and subsequently reclassified into interest income or interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to cash flow hedge derivatives will be reclassified to interest expense as interest payments are made on the Company’s hedge liability or interest income as interest payments are made on the Company's hedge asset. See Note 10, “Other Comprehensive Income (Loss),” of this Form 10-Q for additional information related to the cash flow hedges impact on the Company’s AOCI and Consolidated Statement of Income. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply, or the Company elects not to apply hedge accounting. Back-to-Back swaps are not speculative; rather, the transactions result from a service the Company provides to certain commercial 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. The Company records all derivatives on the balance sheet at fair value. Asset derivatives are included in the line item "Prepaid expenses and other assets," and liability derivatives are included in the "Accrued expenses and other liabilities" line item on the Consolidated Balance Sheets, respectively. In accordance with GAAP, the Company elects to measure the credit risk of its derivative financial instruments that are subject to master netting agreements by derivative type on a net basis by counterparty portfolio. The tables below presents a summary of the Company's derivative financial instruments, notional amounts and fair values for the periods presented: As of March 31, 2020 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives designated as hedging instruments Interest-rate contracts - pay fixed, receive floating $ — $ — $ 75,000 $ 2,869 Total cash flow hedge interest-rate swaps $ — $ — $ 75,000 $ 2,869 Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 43,806 $ 3,547 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 43,806 3,547 Total back-to-back interest-rate swaps $ 43,806 $ 3,547 $ 43,806 $ 3,547 December 31, 2019 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 10,502 $ 625 $ 12,273 $ 187 Interest-rate contracts - pay fixed, receive floating — — 22,775 438 Total back-to-back interest-rate swaps $ 10,502 $ 625 $ 35,048 $ 625 __________________________________________ (1) Accrued interest balances related to the Company’s interest rate swaps are not included in the fair values above and are immaterial. The Company had no derivative fair value hedges at either March 31, 2020 or December 31, 2019 . Cash flow Hedges Interest-rate swap agreements may be entered into as hedges against future interest-rate fluctuations on specifically identified assets or liabilities. The Company’s cash flow hedges are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. The Company’s objectives in using these interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, during the first quarter of 2020, the Company entered into three pay fixed, receive float interest rate swaps to hedge the variable cash flows associated with short-term borrowings. Each swap has a notional value of $25.0 million with respective maturities of three years , four years and five years . At March 31, 2020 , these interest rate swaps are designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. In relation to the Company's cash flow hedges, the Company estimates that an additional $605 thousand (pre-tax) will be reclassified out of AOCI as an increase to interest expense during the next twelve months. Back-to-back swaps The Company has 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 a swap counterparty. The customer interest-rate swap agreement allows commercial banking customers to convert a floating-rate loan payment to a fixed-rate payment. Each Back-to-Back swap consists of two interest-rate swaps (a customer swap and offsetting counterparty swap) and amounted to a total number of 12 and 10 interest-rate swaps outstanding at March 31, 2020 and December 31, 2019 , respectively. The transaction structure effectively minimizes the Bank's interest rate 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 to the customer's underlying collateral. Interest-rate swaps with the counterparty are subject to master netting agreements, while interest-rate swaps with customers are not. As a result of this offsetting relationship, there were no net gains or losses recognized in income on Back-to-Back swaps during the three months ended March 31, 2020 or March 31, 2019 . At March 31, 2020 , all of the Back-to-Back swaps with the counterparty were in the same liability position, therefore there was no netting reflected in the Company’s Consolidated Balance Sheet. The table below presents at December 31, 2019 , the Company's liability derivative positions and the potential effect of those netting arrangements on its financial position. As noted above, interest-rate swaps with customers are not subject to master netting agreements and therefore are not included in the table below. As of December 31, 2019 (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Liabilities Derivatives Interest-rate contracts - pay fixed, receive floating $ 625 $ 187 $ 438 Credit Risk 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. Additionally, counterparty interest rate swaps contain provisions for collateral to be posted if the derivative exposure exceeds a threshold amount. The Company has one counterparty and it was rated A and A2 by Standard & Poor's and Moody's, respectively, at March 31, 2020 . The Company had no credit risk exposure at either March 31, 2020 or December 31, 2019 relating to interest-rate swaps with counterparties. When the Company has credit risk exposure, collateral is received from the counterparty and held by the Company. Collateral held by the Company is restricted and not considered an asset of the Company. Therefore, it is not carried on the Company's Consolidated Balance Sheet. If the Company posts collateral, the cash is restricted, is considered an asset of the Company and is carried on the Company's Consolidated Balance Sheet. The Company posted cash collateral of $6.6 million and $850 thousand at March 31, 2020 and December 31, 2019 , respectively. Credit-risk-related Contingent Features The Company's interest-rate swaps with counterparties 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. As of March 31, 2020, the fair value of derivatives in a net liability position, which excludes any adjustment for nonperformance risk, related to these agreements was $6.4 million . The Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral at March 31, 2020 as noted above. Other Derivative Related Activity 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 be realized 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 a percentage of the originating bank's swap loss based on the ratio of the Company's loan participation to the underlying loan. At both March 31, 2020 and December 31, 2019 , the Company had one participation loan where the originating bank utilizes a back-to-back interest-rate swap structure. At March 31, 2020 , management considers the risk of material swap-loss exposure related to this participation loan to be unlikely based on the borrower's financial and collateral strength. Management continues to closely monitor for credit changes resulting from the COVID-19 pandemic. 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 March 31, 2020 and December 31, 2019 , the estimated fair value of the Company's interest-rate lock commitments and commitments to sell these mortgage loans were deemed immaterial. |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Shares Authorized and Share Issuance The Company's authorized capital is divided into common stock and preferred stock. The Company is authorized to issue 40,000,000 shares of common stock, with a par value of $0.01 per share, and as of March 31, 2020 had 11,897,322 shares issued and outstanding. Holders of common stock are entitled to one vote per share and are entitled to receive dividends if, as, and when declared by the Company's Board of Directors (the "Board"). Dividend and liquidation rights of the common stock may be subject to the rights of any outstanding preferred stock. The Company is also authorized to issue 1,000,000 shares of preferred stock, with a par value of $0.01 per share. No preferred stock has been issued as of the date of this Form 10-Q. The Company has a stockholders' 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 $122.50 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 have no voting or dividend privileges, and unless and until they become exercisable, have no dilutive effect on the earnings of the Company. The rights will expire, unless earlier redeemed, exchanged, or otherwise rescinded by the Company, on January 13, 2028. The Company's stock incentive plans permit the Board to grant, under various terms, stock options (for the purchase of newly issued shares of common stock), common stock, restricted stock awards, restricted stock units and stock appreciation rights to officers and other employees, non-employee directors and consultants. The Company issues stock options and restricted stock awards to officers and other employees and restricted stock awards and stock compensation in lieu of cash fees to non-employee directors. The restricted stock awards allow for the non-forfeitable 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. The unvested restricted stock awards are the Company's only participating securities and are included in shares outstanding. Unvested participating restricted awards amounted to 124,997 shares and 102,056 shares as of March 31, 2020 and December 31, 2019 , respectively. See Note 13, "Earnings per Share," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for further information regarding unvested participating restricted awards and the Company's earnings per share calculation. Upon vesting, restricted stock awards may be net settled to cover payment for employee tax obligations, resulting in shares of common stock being reacquired by the Company and returned to the pool of shares reserved for issuance under the incentive plans. In accordance with Massachusetts law, shares reacquired by the Company will be treated as authorized but unissued shares. The Company's stock incentive plans also allow for newly issued shares of common stock to be issued without restrictions to officers and other employees, non-employee directors and consultants. From time to time, the Company issues shares to community members for consulting on regional advisory councils and grants shares of fully vested stock as employee anniversary awards. These shares vest immediately and the cost, which is based on the market price on the date of grant and deemed to be immaterial, is expensed in the period in which the services are rendered. See Note 12, "Stock-Based Compensation," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for additional information regarding the Company's stock incentive plans. In addition, the Company maintains a dividend reinvestment and direct stock purchase plan ("DRSPP") which enables stockholders, at their discretion, 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. See "Capital Resources" in Item 2, "Management's Discussion and Analysis," of this Form 10-Q for the Company's capital ratios and capital adequacy assessment as of March 31, 2020 . See Note 10 "Comprehensive Income (Loss)," of this Form 10-Q for changes to stockholders' equity from comprehensive income (loss) as of March 31, 2020 . Refer to Note 11, "Stockholders' Equity," to the Company's audited consolidated financial statements included in the Company's 2019 Annual Report on Form 10-K for additional information relating to capital adequacy requirements, dividends and the DRSPP. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income is defined as all changes to stockholders' equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. See below for the Company's other components of comprehensive income at the respective dates. 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 losses or gains are realized. The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Three months ended March 31, 2020 Three months ended March 31, 2019 (Dollars in thousands) Pre Tax Tax Expense (Benefit) After Tax Amount Pre Tax Tax Expense (Benefit) After Tax Amount Change in fair value of debt securities $ 9,574 $ (2,136 ) $ 7,438 $ 4,040 $ (907 ) $ 3,133 Less: net security gains (losses) reclassified into non-interest income 100 (22 ) 78 (1 ) — (1 ) Net change in fair value of debt securities 9,474 (2,114 ) 7,360 4,041 (907 ) 3,134 Change in fair value of cash flow hedges (2,844 ) 799 (2,045 ) — — — Less: net cash flow hedges gains (losses) reclassified into interest expense 25 (7 ) 18 — — — Net change in fair value of cash flow hedges (2,869 ) 806 (2,063 ) — — — Total other comprehensive income (loss), net $ 6,605 $ (1,308 ) $ 5,297 $ 4,041 $ (907 ) $ 3,134 Information on the Company's accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the periods indicated: Three months ended March 31, 2020 Three months ended March 31, 2019 (Dollars in thousands) Unrealized gains (losses) debt securities Unrealized gains (losses) cash flow Total Unrealized gains (losses) debt securities Unrealized gains (losses) cash flow Total Accumulated other comprehensive income - beginning balance $ 10,510 $ — $ 10,510 $ (1,284 ) $ — $ (1,284 ) Total other comprehensive income (loss), net 7,360 (2,063 ) 5,297 3,134 — 3,134 Accumulated other comprehensive income - ending balance $ 17,870 $ (2,063 ) $ 15,807 $ 1,850 $ — $ 1,850 |
Supplemental Retirement Plan an
Supplemental Retirement Plan and Other Postretirement Benefit Obligations | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Supplemental Retirement Plans and Other Post-Retirement Benefit Obligations Supplemental Employee 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 predetermined fixed-cash supplemental retirement benefits to be provided for a period of 20 years after each 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 costs in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the plan. This non-qualified plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation. The aggregate amount accrued, or the "accumulated benefit obligation," 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. Benefits paid under the plan amounted to $69 thousand for both the three months ended March 31, 2020 and March 31, 2019 . Total expenses for the plan were $20 thousand for the three months ended March 31, 2020 , compared to $25 thousand for the three months ended March 31, 2019 . The Company anticipates accruing an additional $60 thousand related to the plan during the remainder of 2020 . 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. 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, the Company has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the "accumulated postretirement benefit obligation," which is the present value of the post-retirement benefits associated with this arrangement. Total net periodic post-retirement benefit cost for supplemental life insurance plans, which consisted mainly of interest costs, were $23 thousand for the three months ended March 31, 2020 , compared to $50 thousand for the three months ended March 31, 2019 . See also Note 12, "Stock-Based Compensation," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained below, for further information regarding employee benefits offered in the form of stock options and stock awards. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company currently has one active stock incentive plan: The Enterprise Bancorp, Inc. 2016 Stock Incentive Plan, as amended (the "2016 plan"). As of March 31, 2020 , 189,873 shares remained available for future grants under the 2016 plan. Additionally, the Enterprise Bancorp, Inc 2009 Stock Incentive Plan, as amended, (the "2009 plan") expired in March 2019 with 87,849 unissued shares. As such, the 2009 plan is closed for future grants, although awards previously granted under the 2009 plan remain outstanding and may be exercised through 2028. The Company's 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. Total stock-based compensation expense was $426 thousand for both the three months ended March 31, 2020 and March 31, 2019 . A tax expense associated with employee exercises and vesting of stock compensation of approximately $32 thousand was recorded as an addition to the Company's income tax expense for the three months ended March 31, 2020 , compared with a tax benefit of $111 thousand for the three months ended March 31, 2019 . These amounts, treated as discrete tax items in the period in which they occur, 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 Company's unaudited consolidated interim financial statements. Stock Option Awards The table below provides a summary of the options granted, including the weighted average 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 periods indicated: Three Months Ended March 31, 2020 2019 Options granted 24,208 23,218 Term in years 10 10 Weighted average assumptions used in the fair value model: Expected volatility 37 % 33 % Expected dividend yield 3.43 % 2.75 % Expected life in years 6.5 6.5 Risk-free interest rate 1.02 % 2.58 % Weighted average market price on date of grants $ 28.22 $ 29.84 Per share weighted average fair value $ 8.41 $ 8.70 Fair value as a percentage of market value at grant date 30 % 29 % Options granted during the first three months of 2020 and 2019 generally vest 50% in year two and 50% in year four, on or about the anniversary date of the awards. The Company utilizes the Black-Scholes option valuation model in order to determine the per share grant date fair value of stock option grants. The Company recognized stock-based compensation expense related to stock option awards of $45 thousand for the three months ended March 31, 2020 , compared to $48 thousand for the three months ended March 31, 2019 . Restricted Stock Awards Restricted stock awards are granted at the market price of the Company's common stock on the date of the grant. Employee restricted stock awards generally vest over four years in equal portions beginning on or about the first anniversary date of the restricted stock award or are performance-based restricted stock awards that vest upon the Company achieving certain predefined performance objectives. Non-employee director restricted stock awards generally vest over two years in equal portions beginning on or about the first anniversary date of the restricted stock award. The table below provides a summary of restricted stock awards granted during the periods indicated: Three Months Ended March 31, Restricted Stock Awards (number of underlying shares) 2020 2019 Two-year vesting 8,295 8,368 Four-year vesting 26,015 22,403 Performance-based vesting 25,001 24,427 Total restricted stock awards granted 59,311 55,198 Weighted average grant date fair value $ 28.22 $ 29.84 Stock-based compensation expense recognized in association with stock awards, mainly restricted stock awards, amounted to $309 thousand for the three months ended March 31, 2020 , compared to $301 thousand for the three months ended March 31, 2019 . Stock in Lieu of Directors' Fees In addition to restricted stock awards discussed above, the non-employee members of the Company's Board may opt to receive newly issued shares of the Company's common stock in lieu of cash compensation for attendance at Board and Board committee meetings. Stock-based compensation expense related to these directors' fees amounted to $72 thousand for the three months ended March 31, 2020 , compared to $77 thousand for the three months ended March 31, 2019 , and is included in other operating expenses. In January 2020 , non-employee directors were issued 8,346 shares of the Company's common stock in lieu of 2019 annual cash fees of $253 thousand at a price of $30.35 per share, based on the Company's average quarterly close price in 2019. For further information regarding the Company's stock awards, see Note 9, "Stockholders' Equity," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained above, under the caption "Shares Authorized and Share Issuance." There have been no material changes to the terms of the Company's stock incentive plans or the terms for vesting, forfeiture and settlement for options and restricted stock awards granted and outstanding under such plans as reported in the 2019 Annual Report on Form 10-K. Refer to Note 13, "Stock-Based Compensation Plans," to the Company's audited consolidated financial statements in the Company's 2019 Annual Report on Form 10-K for further information on the Company's stock incentive plans, stock options and restricted awards including descriptions of the assumptions used in the valuation model for stock options. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
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. See Note 9, "Stockholders' Equity," under the caption "Shares Authorized and Share Issuance," to the Company's unaudited consolidated interim financial statements of this Form 10-Q above for further information regarding the Company's participating securities. Diluted earnings per share reflects the effect on weighted average shares outstanding of the number of additional shares outstanding if dilutive stock options were converted into common stock using the treasury stock method. The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the periods indicated: Three months ended March 31, 2020 2019 Basic weighted average common shares outstanding 11,841,392 11,730,482 Dilutive shares 35,639 52,923 Diluted weighted average common shares outstanding 11,877,031 11,783,405 There were 75,545 and 52,478 stock options outstanding for the three months ended March 31, 2020 and March 31, 2019 , respectively that were determined to be anti-dilutive and therefore excluded from the calculation of dilutive shares for those periods. These stock options, which were not dilutive at those dates, may potentially dilute earnings per share in the future. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 based on 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: March 31, 2020 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 505,671 $ — $ 505,671 $ — Equity securities 588 588 — — FHLB stock 5,624 — 5,624 — Interest-rate swaps 3,547 — 3,547 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,079 — — 2,079 Liabilities measured on a recurring basis: Interest-rate swaps $ 6,416 $ — $ 6,416 $ — December 31, 2019 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 504,788 $ — $ 504,788 $ — Equity securities 467 467 — — FHLB stock 4,484 — 4,484 — Interest-rate swaps 625 — 625 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 1,268 — — 1,268 Liabilities measured on a recurring basis: Interest-rate swaps $ 625 $ — $ 625 $ — All of the Company's debt securities are considered "available-for-sale" and 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 CDs, 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. The stock is issued, redeemed, repurchased and transferred by the FHLB only at their fixed par value. This stock is classified as a restricted investment and carried at FHLB par value which management believes approximates fair value; therefore, these securities are categorized as Level 2 measures. Impaired loan balances in the table above represent those collateral dependent 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 loans are categorized as Level 3 within the fair value hierarchy. A specific allowance is assigned to the collateral dependent loan for the amount of management's estimated probable credit loss. The specific allowances assigned to the collateral dependent impaired loans amounted to $1.3 million at March 31, 2020 compared to $564 thousand at December 31, 2019 . The fair values for the interest-rate swap assets and liabilities, which is comprised of back-to-back swaps and cash flow hedges, represent a FASB Level 2 measurement and are based on settlement values adjusted for credit risks 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," to the Company's unaudited consolidated interim financial statements of this Form 10-Q, contained above, for additional information on the Company's interest-rate swaps. Letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance of a customer to a third party. The fair value of these commitments was estimated to be the fees charged to enter into similar agreements, and accordingly these fair value measures are deemed to be FASB Level 2 measurements. In accordance with the FASB, the estimated fair values of these commitments are carried on the Consolidated Balance Sheet as a liability and amortized to income over the life of the letters of credit, which are typically one year. The estimated fair value of these commitments carried on the Consolidated Balance Sheet at March 31, 2020 and December 31, 2019 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 March 31, 2020 and December 31, 2019 , the estimated fair value of the Company's interest-rate lock commitments and commitments to sell these mortgage loans were deemed 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 March 31, 2020 and December 31, 2019 : Fair Value (Dollars in thousands) March 31, 2020 December 31, 2019 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $ 2,079 $ 1,268 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 Consolidated Balance Sheet. The carrying values, estimated fair values and placement in the fair value hierarchy of the Company's consolidated 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: March 31, 2020 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 $ 476 $ 476 $ — $ 476 $ — Loans, net 2,644,163 2,695,924 — — 2,695,924 Financial liabilities: CDs 302,108 305,405 — 305,405 — Borrowed funds 84,169 84,212 — 84,212 — Subordinated debt 14,876 15,969 — — 15,969 December 31, 2019 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 $ 601 $ 609 $ — $ 609 $ — Loans, net 2,531,845 2,542,577 — — 2,542,577 Financial liabilities: CDs 310,951 311,975 — 311,975 — Borrowed funds 96,173 96,045 — 96,045 — Subordinated debt 14,872 14,957 — — 14,957 Excluded from the tables above are certain financial instruments with carrying values that approximated their fair value at the dates indicated, as they were short-term in nature or payable on demand. These include cash and cash equivalents, accrued interest and non-term deposit accounts. The respective carrying values of these instruments would all be classified within Level 1 of their fair value hierarchy. Also excluded from these tables are the fair values of commitments for unused portions of lines of credit and commitments to originate loans that were short-term, at current market rates and estimated to have no significant change in fair value. |
Supplemental Cash Flow
Supplemental Cash Flow | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental Cash Flow Information The supplemental cash flow information for the three months ended March 31, 2020 and March 31, 2019 is as follows: Three months ended March 31, (Dollars in thousands) 2020 2019 Supplemental financial data: Cash paid for: interest $ 5,000 $ 5,100 Cash paid for: income taxes 3,292 1,012 Cash paid for: lease liability 322 288 Supplemental schedule of non-cash activity: Net purchases of investment securities not yet settled — 1,500 Transfer from loans to other real estate owned — 255 ROU lease assets: operating leases (1) — 19,002 _________________________________________ (1) This represents the ROU lease asset that was recorded upon adoption of ASC 842 in 2019 and new leases added in the periods indicated. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying unaudited consolidated interim financial statements and these notes should be read in conjunction with the December 31, 2019 audited consolidated financial statements and notes thereto contained in the 2019 Annual Report on Form 10-K of Enterprise Bancorp, Inc. as filed with the Securities and Exchange Commission (the "SEC") on March 10, 2020 (the " 2019 Annual Report on Form 10-K"). The Company has not materially changed its significant accounting policies from those disclosed in its 2019 Annual Report on Form 10-K, other than to elect options for the temporary deferral of certain accounting guidance as allowed under the recently enacted Coronavirus Aid, Relief, and Economic Security ("CARES") Act as discussed under Item (c) "Accounting Policies," below in this Note 1. See also Item (e) "Recent Accounting Pronouncements," under the subheading "Accounting pronouncements adopted by the Company," below in this Note 1. The accompanying unaudited consolidated interim 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, commonly referred to as Enterprise Bank ("the Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, both organized under the laws of the State of Delaware, to engage in insurance sales activities and offer 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's headquarters and the Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. At March 31, 2020 , the Company had 25 full-service branch banking offices serving the Greater Merrimack Valley, Nashoba Valley and North Central regions of Massachusetts and Southern New Hampshire (Southern Hillsborough and Rockingham counties). The Company is also scheduled to open a branch in North Andover, Massachusetts in the second half of 2020. Through the Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, and commercial insurance services. The Company also provides a range of wealth management, wealth services and trust services delivered via two channels, Enterprise Wealth Management and Enterprise Wealth 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. The Federal Deposit Insurance Corporation (the "FDIC") and the Massachusetts Division of Banks (the "Division") have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Division also retains supervisory jurisdiction over the Company. |
Basis of Accounting | Interim results are not necessarily indicative of results to be expected for the entire year, or any future period. The accompanying unaudited consolidated interim financial statements and notes thereto have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions for SEC Form 10-Q through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying unaudited consolidated interim financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying unaudited consolidated interim financial statements. |
Reclassifications | Certain previous years' amounts in the audited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. |
Uses of Estimates | Uses of Estimates In preparing the unaudited consolidated interim financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the period then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. As discussed in the Company's 2019 Annual Report on Form 10-K, the three most significant areas in which management applies critical assumptions and estimates are: the estimates of the allowance for loan losses, impairment review of investment securities, and the impairment review of goodwill. Refer to Note 1, "Summary of Significant Accounting Policies," to the Company's audited consolidated financial statements included in the Company's 2019 Annual Report on Form 10-K for accounting policies related to these significant estimates. |
Restricted Cash and Investments | Restricted Cash and Investments When the Company has pledged cash as collateral in relation to certain derivatives, the cash is carried as restricted cash within "Interest-earning deposits" on the Company's Consolidated Balance Sheet. See Note 8, "Derivatives and Hedging Activities," to the Company's unaudited consolidated interim financial statements below in Quarterly Report on this Form 10-Q ("this Form 10-Q") for more information about the Company's collateral related to its derivatives. The Bank is also typically required by the Federal Reserve Bank of Boston ("FRB") to maintain in reserves certain amounts of vault cash and/or deposits with the FRB, however, in response to the COVID-19 pandemic, this requirement has been eliminated until further notice. As a member of the FHLB, the Company is required to purchase certain levels of FHLB capital stock at par value in association with outstanding advances from the FHLB. This stock represents the only restricted investment held by the Company and is carried at cost, which management believes approximates fair value. Based on management's periodic review for other-than-temporary impairment ("OTTI"), the Company has not recorded any OTTI charges on this investment to date. |
Other Accounting Policies | Other Accounting Policies The CARES Act allows certain financial institutions the option to defer the adoption of the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-13 (Measurement of Credit Losses on Financial Instruments), including the current expected credit loss ("CECL") methodology for estimating allowances for credit losses, during the period beginning on March 27, 2020 until the earlier of (1) the date on which the national emergency concerning the COVID-19 pandemic declared under the National Emergencies Act terminates; or (2) December 31, 2020. The Company has elected to defer the adoption of CECL. See Item (e) "Recent Accounting Pronouncements," under the subheading "Accounting pronouncements not yet adopted by the Company," below in this Note 1 for additional information on CECL. In addition, Section 4013 of the CARES Act provides the option for financial institutions to suspend troubled debt restructuring ("TDR") accounting under GAAP in certain circumstances, during the period beginning March 1, 2020 and ending on the (1) earlier of December 31, 2020; or (2) the date that is 60 days after the date on which the national emergency concerning the COVID-19 pandemic declared under the National Emergencies Act terminates. The Company is suspending TDR accounting, which primarily impacts financial statement disclosure, for loans that have had a short-term payment deferral since March 1, 2020, as long as those loans were current and risk rated as “pass” prior to the onset of the COVID-19 pandemic. |
Subsequent events | Subsequent Events The Company has evaluated subsequent events and transactions from March 31, 2020 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP and determined that outside of the items noted below, there were no material subsequent events requiring recognition or disclosure. From April 3, 2020 through May 4, 2020, covering the period that funding was approved for the Paycheck Protection Program (the “PPP”) though the most recently obtainable date, the Company had submitted and received approval from the U.S. Small Business Administration ("SBA") for approximately 2,400 PPP applications for approximately $500.0 million in PPP loans with the median approved loan size being $74 thousand . The PPP program is administered by the SBA and created under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). In April 2020, the Company established access to the FRB's PPP Liquidity Facility ("PPPLF"), which provides funding secured by PPP pledged loans at a borrowing rate of 0.35% . Advances issued under the PPPLF are non-recourse. The amount and term of an advance matches the amount and remaining term of the PPP loans pledged, which is a maximum of two years from the loan origination date. PPP loans are fully guaranteed by the SBA and have no impact on our risk-based capital ratios. PPP loans pledged as collateral for the PPPLF are excluded from the average assets used in the leverage ratio calculation. As of May 7th, the Company borrowed $43.7 million under the PPPLF. As noted above, under Item (c) "Accounting Policies," section 4013 of the CARES Act provides financial institutions the option to suspend TDR accounting under GAAP in certain circumstances and the Company has elected that option. The Company has worked proactively with customers experiencing financial challenges from the COVID-19 pandemic. The Company had granted short-term payment deferrals related to COVID-19 on 1,135 loans through April 30, 2020 , the latest date information was obtainable. As of March 31, 2020 , these loans had an outstanding balance as of $596.0 million, or 22.2% of the total loan portfolio. All loans remain accruing. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The tables below summarize recent accounting pronouncements issued by the FASB that were either recently adopted by the Company or have not yet been adopted. For pronouncements not yet adopted, the effective date listed below is in line with the required adoption date for public business entities, such as the Company, though certain accounting pronouncements may permit early adoption. For more detailed information regarding these pronouncements, refer to the FASB's ASUs. Accounting pronouncements adopted by the Company Standard/Adoption Date Description Effect on Financial Statements or Other Significant Matters ASU No. 2018-13, Fair Value Measurement January 1, 2020 The amendments in this ASU modify the disclosure requirements primarily related to level 3 fair value measurements of the fair value hierarchy. The adoption of ASU No. 2018-13 in January 2020 did not have a material impact on the Company's consolidated financial statements and results of operations because this ASU primarily relates to disclosure requirements and the dollar amounts of related assets held by the Company are immaterial. ASU No.2018-15, Intangibles-Goodwill and Other- Internal-Use Software (ASU Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract January 1, 2020 The major provision in the amendments in this ASU require an entity to capitalize certain implementation costs incurred in a hosting arrangement that is a service contract in accordance with current GAAP for internal-use software and expense these costs over the term of the hosting arrangement. Additionally, these capitalized implementation costs are required to be reviewed for impairment in accordance with current GAAP for internal-use software. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of ASU No. 2018-15 in January 2020 did not have a material impact on the Company's consolidated financial statements and results of operations. Accounting pronouncements not yet adopted by the Company Standard/Anticipated Adoption Date Description Effect on Financial Statements or Other Significant Matters ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The earlier of (1) the date on which the national emergency concerning the COVID-19 pandemic declared by the National Emergencies Act terminates; or (2) December 31, 2020. 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 ("CECL"). 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 report amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The Statement of Income 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. The Company was originally required to adopt this standard effective January 1, 2020, however, in accordance with the CARES Act, the Company elected to defer the adoption of this standard. Upon adoption, the Company estimates a reduction to retained earnings in the range of $1.0 to $5.0 million, net of tax. The Company continues to monitor regulatory guidance related to the deferment. In March 2020, the regulatory banking agencies issued an interim final rule that allows banking institutions that implement CECL during 2020 to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period. The Company is currently assessing its options at this time and will make its election when the Company adopts CECL. ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (ASU Subtopic 715-20) - Disclosure Framework- Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 The amendments in this ASU modify the disclosure requirements on defined benefit plans including requiring disclosures about significant gains and losses related to changes in the benefit obligation. The adoption of ASU No. 2018-14 will not have a material impact on the Company's consolidated financial statements and results of operations because this ASU primarily relates to disclosure requirements and the balances of the benefit plans impacted by this ASU are immaterial to the Company. Accounting pronouncements not yet adopted by the Company-continued Standard/Anticipated Adoption Date Description Effect on Financial Statements or Other Significant Matters ASU No. 2020-04. Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting January 1, 2022 The amendments in the provision are effective for a limited period and mainly address accounting and reporting challenges due to the transition from LIBOR on existing contracts. The optional expedients may be applied to loans, borrowings, leases and derivatives. The standard 1) simplifies the accounting analyses for contract modifications and 2) simplifies the hedge effectiveness assessment and allows hedging relationships impacted by the LIBOR transition to continue. The Company is assessing the impact of this standard but does not expect that it will have a material impact on the Company's consolidated financial statements, or results of operations. |
Comprehensive Income (Loss) (Po
Comprehensive Income (Loss) (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Income | Comprehensive income is defined as all changes to stockholders' equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. See below for the Company's other components of comprehensive income at the respective dates. 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 losses or gains are realized. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-Sale Investments Reconciliation | The amortized cost and fair values of debt securities at the dates specified are summarized as follows: March 31, 2020 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 1,000 $ 6 $ — $ 1,006 Residential federal agency MBS (1) 181,399 7,361 47 188,713 Commercial federal agency MBS (1) 110,441 6,372 — 116,813 Taxable municipal securities 84,034 4,077 237 87,874 Tax-exempt municipal securities 91,554 4,991 1 96,544 Corporate bonds 13,817 467 19 14,265 Certificate of deposits (2) ("CDs") 454 2 — 456 Total debt securities, at fair value $ 482,699 $ 23,276 $ 304 $ 505,671 December 31, 2019 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 999 $ 5 $ — $ 1,004 Residential federal agency MBS (1) 190,392 2,599 333 192,658 Commercial federal agency MBS (1) 111,182 3,453 — 114,635 Taxable municipal securities 79,095 2,726 134 81,687 Tax-exempt municipal securities 95,342 4,696 — 100,038 Corporate bonds 13,826 485 — 14,311 CDs (2) 454 1 — 455 Total debt securities, at fair value $ 491,290 $ 13,965 $ 467 $ 504,788 __________________________________________ (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) CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. |
Schedule of Unrealized Loss on Debt Securities, Available-for-Sale Investments | The following tables summarize debt securities with unrealized losses, due to the fair values having declined below the amortized costs of the individual investments, by the duration of their continuous unrealized loss positions at March 31, 2020 and December 31, 2019 : March 31, 2020 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 Residential federal agency MBS $ 9,392 $ 47 $ — $ — $ 9,392 $ 47 3 Taxable municipal securities 6,804 237 — — 6,804 237 7 Tax-exempt municipal securities 582 1 — — 582 1 1 Corporate bonds 2,304 19 — — 2,304 19 17 Total temporarily impaired debt securities $ 19,082 $ 304 $ — $ — $ 19,082 $ 304 28 December 31, 2019 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 Residential federal agency MBS $ 36,464 $ 263 $ 5,060 $ 70 $ 41,524 $ 333 11 Taxable municipal securities 16,826 134 — — 16,826 134 15 Total temporarily impaired debt securities $ 53,290 $ 397 $ 5,060 $ 70 $ 58,350 $ 467 26 |
Debt Securities, Available-for-Sale Investments Classified by Contractual Maturity Date | The contractual maturity distribution at March 31, 2020 of debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 11,425 $ 11,478 Due after one, but within five years 85,244 89,501 Due after five, but within ten years 165,531 174,885 Due after ten years 220,499 229,807 Total debt securities $ 482,699 $ 505,671 |
Schedule of Realized Gain (Loss) on Sales of Debt Securities, Available-for-Sale Investments | Sales of debt securities for the three months ended March 31, 2020 and March 31, 2019 are summarized as follows: Three months ended March 31, (Dollars in thousands) 2020 2019 Amortized cost of debt securities sold (1) $ 2,527 $ 1,793 Gross realized gains on sales 100 2 Gross realized losses on sales — (3 ) Total proceeds from sales of debt securities $ 2,627 $ 1,792 _________________________________________ (1) Amortized cost of investments sold is determined on a specific identification basis and includes pending trades based on trade date, if applicable. |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Loans by Loan Classification | Major classifications of loans at the dates indicated were as follows: (Dollars in thousands) March 31, December 31, Commercial real estate $ 1,442,150 $ 1,394,179 Commercial and industrial 537,790 501,227 Commercial construction 345,683 317,477 Total commercial loans 2,325,623 2,212,883 Residential mortgages 254,188 247,373 Home equity 97,223 98,252 Consumer 10,194 10,054 Total retail loans 361,605 355,679 Gross loans 2,687,228 2,568,562 Deferred loan origination fees, net (3,301 ) (3,103 ) Total loans 2,683,927 2,565,459 Allowance for loan losses (39,764 ) (33,614 ) Net loans $ 2,644,163 $ 2,531,845 |
Schedule of Loans Pledged as Collateral | Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity as of the dates indicated are summarized below: (Dollars in thousands) March 31, December 31, Commercial real estate $ 227,585 $ 246,865 Residential mortgages 240,305 231,028 Home equity 7,639 7,676 Total loans pledged to FHLB $ 475,529 $ 485,569 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Financing Receivables by Evaluation Method | The balances of loans as of March 31, 2020 by portfolio classification 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 $ 14,166 $ 1,427,984 $ 1,442,150 Commercial and industrial 6,901 530,889 537,790 Commercial construction 5,304 340,379 345,683 Residential mortgages 1,206 252,982 254,188 Home equity 394 96,829 97,223 Consumer 38 10,156 10,194 Total gross loans $ 28,009 $ 2,659,219 $ 2,687,228 The balances of loans as of December 31, 2019 by portfolio classification 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 $ 17,515 $ 1,376,664 $ 1,394,179 Commercial and industrial 9,332 491,895 501,227 Commercial construction 3,347 314,130 317,477 Residential mortgages 1,229 246,144 247,373 Home equity 411 97,841 98,252 Consumer 44 10,010 10,054 Total gross loans $ 31,878 $ 2,536,684 $ 2,568,562 |
Financing Receivable Credit Quality Indicators | The following tables present the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the periods indicated: March 31, 2020 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 13,273 $ — $ — $ 1,428,877 $ 1,442,150 Commercial and industrial 8,550 2,352 — 526,888 537,790 Commercial construction 5,809 — — 339,874 345,683 Residential mortgages 1,799 — — 252,389 254,188 Home equity 565 — — 96,658 97,223 Consumer 65 1 — 10,128 10,194 Total gross loans $ 30,061 $ 2,353 $ — $ 2,654,814 $ 2,687,228 December 31, 2019 Adversely Classified Not Adversely (Dollars in thousands) Substandard Doubtful Loss Classified Gross Loans Commercial real estate $ 16,664 $ — $ — $ 1,377,515 $ 1,394,179 Commercial and industrial 10,900 2,370 — 487,957 501,227 Commercial construction 4,836 — — 312,641 317,477 Residential mortgages 1,825 — — 245,548 247,373 Home equity 455 — — 97,797 98,252 Consumer 69 3 — 9,982 10,054 Total gross loans $ 34,749 $ 2,373 $ — $ 2,531,440 $ 2,568,562 |
Past Due Financing Receivables | The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated: Balance at March 31, 2020 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 8,687 $ 265 $ 3,886 $ 12,838 $ 1,429,312 $ 1,442,150 $ 8,605 Commercial and industrial 1,042 722 579 2,343 535,447 537,790 2,942 Commercial construction 2,591 720 2,831 6,142 339,541 345,683 2,831 Residential mortgages 1,346 — 301 1,647 252,541 254,188 394 Home equity 270 — 167 437 96,786 97,223 1,014 Consumer 34 7 — 41 10,153 10,194 15 Total gross loans $ 13,970 $ 1,714 $ 7,764 $ 23,448 $ 2,663,780 $ 2,687,228 $ 15,801 Balance at December 31, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due 90 days or more Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 1,469 $ 3,914 $ 4,158 $ 9,541 $ 1,384,638 $ 1,394,179 $ 8,280 Commercial and industrial 576 1,034 265 1,875 499,352 501,227 3,285 Commercial construction 576 3,325 1,735 5,636 311,841 317,477 1,735 Residential mortgages 700 283 623 1,606 245,767 247,373 411 Home equity 645 — 169 814 97,438 98,252 1,040 Consumer 12 — 6 18 10,036 10,054 20 Total gross loans $ 3,978 $ 8,556 $ 6,956 $ 19,490 $ 2,549,072 $ 2,568,562 $ 14,771 |
Impaired Financing Receivables | The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the dates indicated: Balance at March 31, 2020 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 15,257 $ 14,166 $ 13,783 $ 383 $ 29 Commercial and industrial 9,015 6,901 5,264 1,637 908 Commercial construction 5,330 5,304 2,796 2,508 1,473 Residential mortgages 1,317 1,206 1,206 — — Home equity 575 394 394 — — Consumer 39 38 — 38 38 Total $ 31,533 $ 28,009 $ 23,443 $ 4,566 $ 2,448 Balance at December 31, 2019 (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 $ 18,537 $ 17,515 $ 17,129 $ 386 $ 31 Commercial and industrial 11,455 9,332 7,405 1,927 974 Commercial construction 3,359 3,347 3,347 — — Residential mortgages 1,331 1,229 1,229 — — Home equity 607 411 411 — — Consumer 44 44 — 44 44 Total $ 35,333 $ 31,878 $ 29,521 $ 2,357 $ 1,049 The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the three months indicated: Three months ended March 31, 2020 Three months ended March 31, 2019 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial real estate $ 15,273 $ 72 $ 15,803 $ 120 Commercial and industrial 7,808 28 11,919 115 Commercial construction 4,755 — 1,734 25 Residential mortgages 1,220 2 890 1 Home equity 402 — 507 — Consumer 41 — 19 — Total $ 29,499 $ 102 $ 30,872 $ 261 |
Troubled Debt Restructurings on Financing Receivables | The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the periods indicated: Three months ended March 31, 2020 March 31, 2019 (Dollars in thousands) Number of restructurings Amount Number of restructurings Amount Extended maturity date 2 $ 1,697 — $ — Temporary payment reduction and payment re-amortization of remaining principal over extended term 2 978 6 607 Forbearance of post default rights 2 1,022 — — Other payment concessions — — 1 314 Total 6 $ 3,697 7 $ 921 Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above $ 1,275 $ 91 Loans modified as TDRs during the three months ended March 31, 2020 and March 31, 2019 are detailed below: Three months ended March 31, 2020 March 31, 2019 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate — $ — $ — 1 $ 421 $ 415 Commercial and industrial 1 474 409 5 194 192 Commercial construction 4 3,440 3,287 — — — Residential mortgages — — — 1 315 314 Home equity — — — — — — Consumer 1 1 1 — — — Total 6 $ 3,915 $ 3,697 7 $ 930 $ 921 Payment defaults, during the three months ended March 31, 2020 and March 31, 2019 on loans modified as TDRs within the preceding twelve months are detailed below: Three months ended March 31, 2020 March 31, 2019 (Dollars in thousands) Number of TDRs that defaulted Post- modification outstanding recorded investment Number of TDRs that defaulted Post- modification outstanding recorded investment Commercial real estate 1 $ 218 — $ — Commercial and industrial 1 151 2 174 Commercial construction 2 1,697 — — Residential mortgages — — — — Home equity — — — — Consumer 2 4 — — Total 6 $ 2,070 2 $ 174 |
Allowance for Credit Losses on Financing Receivables | Changes in the allowance for loan losses by portfolio classification for the three months ended March 31, 2020 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2019 $ 18,338 $ 9,129 $ 4,149 $ 1,195 $ 536 $ 267 $ 33,614 Provision 2,523 1,104 2,012 403 97 8 6,147 Recoveries — 107 — — 3 10 120 Less: Charge offs — 105 — — — 12 117 Ending Balance at March 31, 2020 $ 20,861 $ 10,235 $ 6,161 $ 1,598 $ 636 $ 273 $ 39,764 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 29 $ 908 $ 1,473 $ — $ — $ 38 $ 2,448 Allocated to loans collectively evaluated for impairment $ 20,832 $ 9,327 $ 4,688 $ 1,598 $ 636 $ 235 $ 37,316 Changes in the allowance for loan losses by portfolio classification for the three months ended March 31, 2019 are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Consumer Total Beginning Balance at December 31, 2018 $ 18,014 $ 10,493 $ 3,307 $ 1,160 $ 629 $ 246 $ 33,849 Provision (188 ) (406 ) 145 24 (4 ) 29 (400 ) Recoveries — 316 — — 2 5 323 Less: Charge offs — — — — — 43 43 Ending Balance at March 31, 2019 $ 17,826 $ 10,403 $ 3,452 $ 1,184 $ 627 $ 237 $ 33,729 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 6 $ 2,112 $ — $ 12 $ — $ 14 $ 2,144 Allocated to loans collectively evaluated for impairment $ 17,820 $ 8,291 $ 3,452 $ 1,172 $ 627 $ 223 $ 31,585 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Operating lease liability maturity table as lessee | At March 31, 2020 , the remaining undiscounted cash flows by year of these lease liabilities were as follows: (Dollars in thousands) Operating Leases 2020 (nine remaining months) $ 939 2021 1,242 2022 1,244 2023 1,251 2024 1,256 Thereafter 23,344 Total lease payments $ 29,276 Less: Imputed interest 11,308 Total lease liability $ 17,968 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | Deposits are summarized as follows: (Dollars in thousands) March 31, 2020 December 31, 2019 Non-interest checking $ 858,718 $ 794,583 Interest-bearing checking 492,313 467,988 Savings 205,367 203,236 Money market 1,054,344 1,009,972 CDs $250,000 or less 216,490 220,751 CDs greater than $250,000 85,618 90,200 Deposits $ 2,912,850 $ 2,786,730 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds Maturity | The contractual maturity distribution as of March 31, 2020 and December 31, 2019 , of borrowed funds with the weighted average cost for each category is set forth below: March 31, 2020 December 31, 2019 (Dollars in thousands) Balance Rate Balance Rate Overnight $ 5,000 0.37 % $ 92,000 1.85 % Within 12 months 78,698 1.84 % 3,697 2.22 % Over 5 years 471 — % 476 — % |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives, Fair Value and Classification | The tables below presents a summary of the Company's derivative financial instruments, notional amounts and fair values for the periods presented: As of March 31, 2020 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives designated as hedging instruments Interest-rate contracts - pay fixed, receive floating $ — $ — $ 75,000 $ 2,869 Total cash flow hedge interest-rate swaps $ — $ — $ 75,000 $ 2,869 Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 43,806 $ 3,547 $ — $ — Interest-rate contracts - pay fixed, receive floating — — 43,806 3,547 Total back-to-back interest-rate swaps $ 43,806 $ 3,547 $ 43,806 $ 3,547 December 31, 2019 (Dollars in thousands) Asset Notional Amount Asset Derivatives (1) Liability Notional Amount Liability Derivatives (1) Derivatives not subject to hedge accounting Interest-rate contracts - pay floating, receive fixed $ 10,502 $ 625 $ 12,273 $ 187 Interest-rate contracts - pay fixed, receive floating — — 22,775 438 Total back-to-back interest-rate swaps $ 10,502 $ 625 $ 35,048 $ 625 __________________________________________ (1) Accrued interest balances related to the Company’s interest rate swaps are not included in the fair values above and are immaterial. |
Schedule of Derivatives - Offsetting Assets and Liabilities | At March 31, 2020 , all of the Back-to-Back swaps with the counterparty were in the same liability position, therefore there was no netting reflected in the Company’s Consolidated Balance Sheet. The table below presents at December 31, 2019 , the Company's liability derivative positions and the potential effect of those netting arrangements on its financial position. As noted above, interest-rate swaps with customers are not subject to master netting agreements and therefore are not included in the table below. As of December 31, 2019 (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Liabilities Derivatives Interest-rate contracts - pay fixed, receive floating $ 625 $ 187 $ 438 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Comprehensive Income (Loss) Reconciliation of Changes | The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Three months ended March 31, 2020 Three months ended March 31, 2019 (Dollars in thousands) Pre Tax Tax Expense (Benefit) After Tax Amount Pre Tax Tax Expense (Benefit) After Tax Amount Change in fair value of debt securities $ 9,574 $ (2,136 ) $ 7,438 $ 4,040 $ (907 ) $ 3,133 Less: net security gains (losses) reclassified into non-interest income 100 (22 ) 78 (1 ) — (1 ) Net change in fair value of debt securities 9,474 (2,114 ) 7,360 4,041 (907 ) 3,134 Change in fair value of cash flow hedges (2,844 ) 799 (2,045 ) — — — Less: net cash flow hedges gains (losses) reclassified into interest expense 25 (7 ) 18 — — — Net change in fair value of cash flow hedges (2,869 ) 806 (2,063 ) — — — Total other comprehensive income (loss), net $ 6,605 $ (1,308 ) $ 5,297 $ 4,041 $ (907 ) $ 3,134 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Information on the Company's accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the periods indicated: Three months ended March 31, 2020 Three months ended March 31, 2019 (Dollars in thousands) Unrealized gains (losses) debt securities Unrealized gains (losses) cash flow Total Unrealized gains (losses) debt securities Unrealized gains (losses) cash flow Total Accumulated other comprehensive income - beginning balance $ 10,510 $ — $ 10,510 $ (1,284 ) $ — $ (1,284 ) Total other comprehensive income (loss), net 7,360 (2,063 ) 5,297 3,134 — 3,134 Accumulated other comprehensive income - ending balance $ 17,870 $ (2,063 ) $ 15,807 $ 1,850 $ — $ 1,850 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The table below provides a summary of the options granted, including the weighted average 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 periods indicated: Three Months Ended March 31, 2020 2019 Options granted 24,208 23,218 Term in years 10 10 Weighted average assumptions used in the fair value model: Expected volatility 37 % 33 % Expected dividend yield 3.43 % 2.75 % Expected life in years 6.5 6.5 Risk-free interest rate 1.02 % 2.58 % Weighted average market price on date of grants $ 28.22 $ 29.84 Per share weighted average fair value $ 8.41 $ 8.70 Fair value as a percentage of market value at grant date 30 % 29 % |
Schedule of Restricted Stock Awards Granted | The table below provides a summary of restricted stock awards granted during the periods indicated: Three Months Ended March 31, Restricted Stock Awards (number of underlying shares) 2020 2019 Two-year vesting 8,295 8,368 Four-year vesting 26,015 22,403 Performance-based vesting 25,001 24,427 Total restricted stock awards granted 59,311 55,198 Weighted average grant date fair value $ 28.22 $ 29.84 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the periods indicated: Three months ended March 31, 2020 2019 Basic weighted average common shares outstanding 11,841,392 11,730,482 Dilutive shares 35,639 52,923 Diluted weighted average common shares outstanding 11,877,031 11,783,405 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 505,671 $ — $ 505,671 $ — Equity securities 588 588 — — FHLB stock 5,624 — 5,624 — Interest-rate swaps 3,547 — 3,547 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,079 — — 2,079 Liabilities measured on a recurring basis: Interest-rate swaps $ 6,416 $ — $ 6,416 $ — December 31, 2019 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 504,788 $ — $ 504,788 $ — Equity securities 467 467 — — FHLB stock 4,484 — 4,484 — Interest-rate swaps 625 — 625 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 1,268 — — 1,268 Liabilities measured on a recurring basis: Interest-rate swaps $ 625 $ — $ 625 $ — |
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 March 31, 2020 and December 31, 2019 : Fair Value (Dollars in thousands) March 31, 2020 December 31, 2019 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $ 2,079 $ 1,268 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 consolidated 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: March 31, 2020 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 $ 476 $ 476 $ — $ 476 $ — Loans, net 2,644,163 2,695,924 — — 2,695,924 Financial liabilities: CDs 302,108 305,405 — 305,405 — Borrowed funds 84,169 84,212 — 84,212 — Subordinated debt 14,876 15,969 — — 15,969 December 31, 2019 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 $ 601 $ 609 $ — $ 609 $ — Loans, net 2,531,845 2,542,577 — — 2,542,577 Financial liabilities: CDs 310,951 311,975 — 311,975 — Borrowed funds 96,173 96,045 — 96,045 — Subordinated debt 14,872 14,957 — — 14,957 |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The supplemental cash flow information for the three months ended March 31, 2020 and March 31, 2019 is as follows: Three months ended March 31, (Dollars in thousands) 2020 2019 Supplemental financial data: Cash paid for: interest $ 5,000 $ 5,100 Cash paid for: income taxes 3,292 1,012 Cash paid for: lease liability 322 288 Supplemental schedule of non-cash activity: Net purchases of investment securities not yet settled — 1,500 Transfer from loans to other real estate owned — 255 ROU lease assets: operating leases (1) — 19,002 _________________________________________ (1) This represents the ROU lease asset that was recorded upon adoption of ASC 842 in 2019 and new leases added in the periods indicated. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | May 07, 2020USD ($) | Mar. 31, 2020USD ($)branchessegment | May 04, 2020USD ($) | Apr. 30, 2020 |
Summary of Significant Accounting Policies [Line Items] | ||||
Number of branches | branches | 25 | |||
Reportable operating segments | segment | 1 | |||
Amount of short-term payment deferrals as of April 30, 2020 | $ 596,000 | |||
Percent of gross loans on short-term payment deferral as of April 30, 2020 | 22.20% | |||
Accounting Standards Update 2016-13 | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated impact of CECL Adoption on Retained Earnings | $ 1,000 | |||
Accounting Standards Update 2016-13 | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated impact of CECL Adoption on Retained Earnings | $ 5,000 | |||
Subsequent Event | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of PPP Applications April 3rd thru May 4th | 2,400 | |||
Amount of PPP Loan Applications Submitted April 3rd thru May 4th | $ 500,000 | |||
Median Balance PPP Loans from April 3rd to May 4th | $ 74 | |||
FRB Borrowing Under PPPLF Maximum Term | 2 years | |||
FRB Borrowings under the PPPLF as of May 7th | $ 43,700 | |||
Number of loans with short-term payment deferrals as of April 30th | 1,135 | |||
Subsequent Event | FRB's PPP Liquidity Facility | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
FRB borrowing rate under PPPLF | 0.35% |
Investment Securities Debt Secu
Investment Securities Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | $ 482,699 | $ 491,290 | |
Debt Securities, Gross Unrealized Gains | 23,276 | 13,965 | |
Debt Securities, Gross Unrealized Loss | 304 | 467 | |
Debt securities at fair value | 505,671 | 504,788 | |
Federal agency obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | [1] | 1,000 | 999 |
Debt Securities, Gross Unrealized Gains | [1] | 6 | 5 |
Debt Securities, Gross Unrealized Loss | [1] | 0 | 0 |
Debt securities at fair value | [1] | 1,006 | 1,004 |
Residential federal agency MBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | [1] | 181,399 | 190,392 |
Debt Securities, Gross Unrealized Gains | [1] | 7,361 | 2,599 |
Debt Securities, Gross Unrealized Loss | [1] | 47 | 333 |
Debt securities at fair value | [1] | 188,713 | 192,658 |
Commercial federal agency MBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | [1] | 110,441 | 111,182 |
Debt Securities, Gross Unrealized Gains | [1] | 6,372 | 3,453 |
Debt Securities, Gross Unrealized Loss | [1] | 0 | 0 |
Debt securities at fair value | [1] | 116,813 | 114,635 |
Taxable municipal securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | 84,034 | 79,095 | |
Debt Securities, Gross Unrealized Gains | 4,077 | 2,726 | |
Debt Securities, Gross Unrealized Loss | 237 | 134 | |
Debt securities at fair value | 87,874 | 81,687 | |
Tax-exempt municipal securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | 91,554 | 95,342 | |
Debt Securities, Gross Unrealized Gains | 4,991 | 4,696 | |
Debt Securities, Gross Unrealized Loss | 1 | 0 | |
Debt securities at fair value | 96,544 | 100,038 | |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | 13,817 | 13,826 | |
Debt Securities, Gross Unrealized Gains | 467 | 485 | |
Debt Securities, Gross Unrealized Loss | 19 | 0 | |
Debt securities at fair value | 14,265 | 14,311 | |
Certificates of deposit | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | [2] | 454 | 454 |
Debt Securities, Gross Unrealized Gains | [2] | 2 | 1 |
Debt Securities, Gross Unrealized Loss | [2] | 0 | 0 |
Debt securities at fair value | [2] | 456 | 455 |
Mortgage backed securities, excluding CMOs | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities at fair value | 23,700 | $ 23,500 | |
Collateral Pledged | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, pledged as collateral | $ 503,300 | ||
[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] | CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. |
Investment Securities Debt Se_2
Investment Securities Debt Securities- Continuous Loss Position (Details) $ in Thousands | Mar. 31, 2020USD ($)investments | Dec. 31, 2019USD ($)investments |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, temporarily impaired, Less than 12 Months, fair value | $ 19,082 | $ 53,290 |
Debt Securities, temporarily impaired, less than 12 months, unrealized loss | 304 | 397 |
Debt securities, temporarily impaired, 12 months or longer, fair value | 0 | 5,060 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 0 | 70 |
Debt securities, temporarily impaired, fair value | 19,082 | 58,350 |
Debt securities, temporarily impaired, unrealized loss | $ 304 | $ 467 |
Number of debt securities in loss positions | investments | 28 | 26 |
Residential federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, temporarily impaired, Less than 12 Months, fair value | $ 9,392 | $ 36,464 |
Debt Securities, temporarily impaired, less than 12 months, unrealized loss | 47 | 263 |
Debt securities, temporarily impaired, 12 months or longer, fair value | 0 | 5,060 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 0 | 70 |
Debt securities, temporarily impaired, fair value | 9,392 | 41,524 |
Debt securities, temporarily impaired, unrealized loss | $ 47 | $ 333 |
Number of debt securities in loss positions | investments | 3 | 11 |
Taxable municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, temporarily impaired, Less than 12 Months, fair value | $ 6,804 | $ 16,826 |
Debt Securities, temporarily impaired, less than 12 months, unrealized loss | 237 | 134 |
Debt securities, temporarily impaired, 12 months or longer, fair value | 0 | 0 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 0 | 0 |
Debt securities, temporarily impaired, fair value | 6,804 | 16,826 |
Debt securities, temporarily impaired, unrealized loss | $ 237 | $ 134 |
Number of debt securities in loss positions | investments | 7 | 15 |
Tax-exempt municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, temporarily impaired, Less than 12 Months, fair value | $ 582 | |
Debt Securities, temporarily impaired, less than 12 months, unrealized loss | 1 | |
Debt securities, temporarily impaired, 12 months or longer, fair value | 0 | |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 0 | |
Debt securities, temporarily impaired, fair value | 582 | |
Debt securities, temporarily impaired, unrealized loss | $ 1 | |
Number of debt securities in loss positions | investments | 1 | |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, temporarily impaired, Less than 12 Months, fair value | $ 2,304 | |
Debt Securities, temporarily impaired, less than 12 months, unrealized loss | 19 | |
Debt securities, temporarily impaired, 12 months or longer, fair value | 0 | |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 0 | |
Debt securities, temporarily impaired, fair value | 2,304 | |
Debt securities, temporarily impaired, unrealized loss | $ 19 | |
Number of debt securities in loss positions | investments | 17 |
Investment Securities Debt Se_3
Investment Securities Debt Securities -Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized Cost, Within One Year | $ 11,425 | |
Fair Value, Within One Year | 11,478 | |
Amortized Cost Basis, After One, But Within Five Years | 85,244 | |
Fair Value, After One, But Within Five Years | 89,501 | |
Amortized Cost, After Five, But Within Ten Years | 165,531 | |
Fair Value, After Five but Within Ten Years | 174,885 | |
Amortized Cost Basis, After Ten Years | 220,499 | |
Fair Value, After Ten Years | 229,807 | |
Debt Securities, Available-for-sale, Amortized Cost | 482,699 | $ 491,290 |
Debt Securities at fair value | 505,671 | $ 504,788 |
Callable debt securities, fair value | $ 89,800 |
Investment Securities Debt Se_4
Investment Securities Debt Securities -Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Investments, Debt and Equity Securities [Abstract] | |||
Debt Securities, Available-for-sale Securities, Amortized Cost Basis, Investments Sold, Including Pending Trades | [1] | $ 2,527 | $ 1,793 |
Debt Securities, Available-for-sale, Realized Gain | 100 | 2 | |
Debt Securities, Available-for-sale, Realized Loss | 0 | (3) | |
Proceeds from Sale of Debt Securities, Available-for-sale Securities, Including Pending Trades | $ 2,627 | $ 1,792 | |
[1] | Amortized cost of investments sold is determined on a specific identification basis and includes pending trades based on trade date, if applicable. |
Investment Securities Equity Se
Investment Securities Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Equity Securities [Abstract] | |||
Equity Securities, FV-NI, Realized Gain (Loss) | $ 0 | $ 0 | |
Equity securities at fair value | 588 | $ 467 | |
Net (losses) gains recognized during the period on equity securities | $ (198) | $ 186 |
Loans - Balance by Class of Loa
Loans - Balance by Class of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | $ 2,687,228 | $ 2,568,562 | ||
Deferred loan origination fees, net | (3,301) | (3,103) | ||
Total loans | 2,683,927 | 2,565,459 | ||
Allowance for loan losses | (39,764) | (33,614) | $ (33,729) | $ (33,849) |
Net Loans | 2,644,163 | 2,531,845 | ||
Commercial | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 2,325,623 | 2,212,883 | ||
Commercial real estate | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 1,442,150 | 1,394,179 | ||
Allowance for loan losses | (20,861) | (18,338) | (17,826) | (18,014) |
Commercial and industrial | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 537,790 | 501,227 | ||
Allowance for loan losses | (10,235) | (9,129) | (10,403) | (10,493) |
Commercial construction | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 345,683 | 317,477 | ||
Allowance for loan losses | (6,161) | (4,149) | (3,452) | (3,307) |
Retail | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 361,605 | 355,679 | ||
Residential mortgages | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 254,188 | 247,373 | ||
Allowance for loan losses | (1,598) | (1,195) | (1,184) | (1,160) |
Home equity | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 97,223 | 98,252 | ||
Allowance for loan losses | (636) | (536) | (627) | (629) |
Consumer | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 10,194 | 10,054 | ||
Allowance for loan losses | $ (273) | $ (267) | $ (237) | $ (246) |
Loans - Loan Categories Narrati
Loans - Loan Categories Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commercial | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Participation loans amount | $ 101 | $ 104.3 |
Participations loans sold that are still serviced amount | 82.2 | 80.2 |
Residential mortgages | ||
Schedule of Loans by Loan Classification [Line Items] | ||
Amount of loans serviced for others | $ 15 | $ 15.7 |
Loans - Loans Serving as Collat
Loans - Loans Serving as Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 475,529 | $ 485,569 |
Commercial real estate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 227,585 | 246,865 |
Residential mortgages | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 240,305 | 231,028 |
Home equity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 7,639 | $ 7,676 |
Allowance For Loan Losses - Eva
Allowance For Loan Losses - Evaluation Method (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | $ 28,009 | $ 31,878 |
Loans collectively evaluated for impairment | 2,659,219 | 2,536,684 |
Gross loans | 2,687,228 | 2,568,562 |
Commercial real estate | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 14,166 | 17,515 |
Loans collectively evaluated for impairment | 1,427,984 | 1,376,664 |
Gross loans | 1,442,150 | 1,394,179 |
Commercial and industrial | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 6,901 | 9,332 |
Loans collectively evaluated for impairment | 530,889 | 491,895 |
Gross loans | 537,790 | 501,227 |
Commercial construction | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 5,304 | 3,347 |
Loans collectively evaluated for impairment | 340,379 | 314,130 |
Gross loans | 345,683 | 317,477 |
Residential mortgages | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 1,206 | 1,229 |
Loans collectively evaluated for impairment | 252,982 | 246,144 |
Gross loans | 254,188 | 247,373 |
Home equity | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 394 | 411 |
Loans collectively evaluated for impairment | 96,829 | 97,841 |
Gross loans | 97,223 | 98,252 |
Consumer | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 38 | 44 |
Loans collectively evaluated for impairment | 10,156 | 10,010 |
Gross loans | $ 10,194 | $ 10,054 |
Allowance For Loan Losses - Adv
Allowance For Loan Losses - Adversely Classified Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | $ 2,687,228 | $ 2,568,562 |
Adversely classified loans to total loans | 1.21% | 1.45% |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | $ 1,442,150 | $ 1,394,179 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 537,790 | 501,227 |
Commercial construction | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 345,683 | 317,477 |
Residential mortgages | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 254,188 | 247,373 |
Home equity | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 97,223 | 98,252 |
Consumer | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 10,194 | 10,054 |
Substandard | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 30,061 | 34,749 |
Substandard | Commercial real estate | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 13,273 | 16,664 |
Substandard | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 8,550 | 10,900 |
Substandard | Commercial construction | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 5,809 | 4,836 |
Substandard | Residential mortgages | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 1,799 | 1,825 |
Substandard | Home equity | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 565 | 455 |
Substandard | Consumer | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 65 | 69 |
Doubtful | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 2,353 | 2,373 |
Doubtful | Commercial real estate | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 2,352 | 2,370 |
Doubtful | Commercial construction | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Residential mortgages | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Home equity | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Consumer | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 1 | 3 |
Loss | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Commercial real estate | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Commercial construction | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Residential mortgages | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Home equity | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Consumer | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 0 | 0 |
Not Adversely Classified | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 2,654,814 | 2,531,440 |
Not Adversely Classified | Commercial real estate | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 1,428,877 | 1,377,515 |
Not Adversely Classified | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 526,888 | 487,957 |
Not Adversely Classified | Commercial construction | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 339,874 | 312,641 |
Not Adversely Classified | Residential mortgages | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 252,389 | 245,548 |
Not Adversely Classified | Home equity | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | 96,658 | 97,797 |
Not Adversely Classified | Consumer | ||
Financing Receivable, Credit Quality Indicators [Line Items] | ||
Gross loans | $ 10,128 | $ 9,982 |
Allowance For Loan Losses - Pas
Allowance For Loan Losses - Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | $ 2,687,228 | $ 2,568,562 |
Total Past Due Loans | 23,448 | 19,490 |
Current Loans | 2,663,780 | 2,549,072 |
Non-accrual loans | $ 15,801 | $ 14,771 |
The ratio of non-accrual loans to total loans | 0.59% | 0.58% |
Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | $ 1,442,150 | $ 1,394,179 |
Total Past Due Loans | 12,838 | 9,541 |
Current Loans | 1,429,312 | 1,384,638 |
Non-accrual loans | 8,605 | 8,280 |
Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 537,790 | 501,227 |
Total Past Due Loans | 2,343 | 1,875 |
Current Loans | 535,447 | 499,352 |
Non-accrual loans | 2,942 | 3,285 |
Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 345,683 | 317,477 |
Total Past Due Loans | 6,142 | 5,636 |
Current Loans | 339,541 | 311,841 |
Non-accrual loans | 2,831 | 1,735 |
Residential mortgages | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 254,188 | 247,373 |
Total Past Due Loans | 1,647 | 1,606 |
Current Loans | 252,541 | 245,767 |
Non-accrual loans | 394 | 411 |
Home equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 97,223 | 98,252 |
Total Past Due Loans | 437 | 814 |
Current Loans | 96,786 | 97,438 |
Non-accrual loans | 1,014 | 1,040 |
Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 10,194 | 10,054 |
Total Past Due Loans | 41 | 18 |
Current Loans | 10,153 | 10,036 |
Non-accrual loans | 15 | 20 |
Not Adversely Classified | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 2,654,814 | 2,531,440 |
Non-accrual loans not adversely classified | 59 | 84 |
Not Adversely Classified | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,428,877 | 1,377,515 |
Not Adversely Classified | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 526,888 | 487,957 |
Not Adversely Classified | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 339,874 | 312,641 |
Not Adversely Classified | Residential mortgages | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 252,389 | 245,548 |
Not Adversely Classified | Home equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 96,658 | 97,797 |
Not Adversely Classified | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 10,128 | 9,982 |
Loans 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 13,970 | 3,978 |
Loans 30-59 Days Past Due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 8,687 | 1,469 |
Loans 30-59 Days Past Due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,042 | 576 |
Loans 30-59 Days Past Due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 2,591 | 576 |
Loans 30-59 Days Past Due | Residential mortgages | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,346 | 700 |
Loans 30-59 Days Past Due | Home equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 270 | 645 |
Loans 30-59 Days Past Due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 34 | 12 |
Loans 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,714 | 8,556 |
Loans 60-89 Days Past Due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 265 | 3,914 |
Loans 60-89 Days Past Due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 722 | 1,034 |
Loans 60-89 Days Past Due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 720 | 3,325 |
Loans 60-89 Days Past Due | Residential mortgages | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 283 |
Loans 60-89 Days Past Due | Home equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 0 |
Loans 60-89 Days Past Due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 7 | 0 |
Loans equal to or greater than 90 days past due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 7,764 | 6,956 |
Loans equal to or greater than 90 days past due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 3,886 | 4,158 |
Loans equal to or greater than 90 days past due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 579 | 265 |
Loans equal to or greater than 90 days past due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 2,831 | 1,735 |
Loans equal to or greater than 90 days past due | Residential mortgages | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 301 | 623 |
Loans equal to or greater than 90 days past due | Home equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 167 | 169 |
Loans equal to or greater than 90 days past due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | $ 0 | $ 6 |
Allowance For Loan Losses - Imp
Allowance For Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Total recorded investment in impaired loans | $ 28,009 | $ 31,878 | |
Total accruing impaired loans | 12,200 | 17,100 | |
Impaired non-accrual loans | 15,800 | 14,800 | |
Unpaid contractual principal balance | 31,533 | 35,333 | |
Recorded investment with no allowance | 23,443 | 29,521 | |
Recorded investment with allowance | 4,566 | 2,357 | |
Related allowance | 2,448 | 1,049 | |
Average recorded investment | 29,499 | $ 30,872 | |
Interest income recognized | 102 | 261 | |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Total recorded investment in impaired loans | 14,166 | 17,515 | |
Unpaid contractual principal balance | 15,257 | 18,537 | |
Recorded investment with no allowance | 13,783 | 17,129 | |
Recorded investment with allowance | 383 | 386 | |
Related allowance | 29 | 31 | |
Average recorded investment | 15,273 | 15,803 | |
Interest income recognized | 72 | 120 | |
Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Total recorded investment in impaired loans | 6,901 | 9,332 | |
Unpaid contractual principal balance | 9,015 | 11,455 | |
Recorded investment with no allowance | 5,264 | 7,405 | |
Recorded investment with allowance | 1,637 | 1,927 | |
Related allowance | 908 | 974 | |
Average recorded investment | 7,808 | 11,919 | |
Interest income recognized | 28 | 115 | |
Commercial construction | |||
Financing Receivable, Impaired [Line Items] | |||
Total recorded investment in impaired loans | 5,304 | 3,347 | |
Unpaid contractual principal balance | 5,330 | 3,359 | |
Recorded investment with no allowance | 2,796 | 3,347 | |
Recorded investment with allowance | 2,508 | 0 | |
Related allowance | 1,473 | 0 | |
Average recorded investment | 4,755 | 1,734 | |
Interest income recognized | 0 | 25 | |
Residential mortgages | |||
Financing Receivable, Impaired [Line Items] | |||
Total recorded investment in impaired loans | 1,206 | 1,229 | |
Unpaid contractual principal balance | 1,317 | 1,331 | |
Recorded investment with no allowance | 1,206 | 1,229 | |
Recorded investment with allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 1,220 | 890 | |
Interest income recognized | 2 | 1 | |
Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Total recorded investment in impaired loans | 394 | 411 | |
Unpaid contractual principal balance | 575 | 607 | |
Recorded investment with no allowance | 394 | 411 | |
Recorded investment with allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 402 | 507 | |
Interest income recognized | 0 | 0 | |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Total recorded investment in impaired loans | 38 | 44 | |
Unpaid contractual principal balance | 39 | 44 | |
Recorded investment with no allowance | 0 | 0 | |
Recorded investment with allowance | 38 | 44 | |
Related allowance | 38 | $ 44 | |
Average recorded investment | 41 | 19 | |
Interest income recognized | $ 0 | $ 0 |
Allowance For Loan Losses - Tro
Allowance For Loan Losses - Troubled Debt Restructures (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)restructuring | Mar. 31, 2019USD ($)restructuring | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total Troubled Debt Restructure (TDR) loans | $ 18,100,000 | $ 21,100,000 | |
TDR loans on accrual status | 12,200,000 | 17,100,000 | |
TDR loans included in non-performing loans | $ 5,900,000 | $ 4,000,000 | |
Number of restructurings | restructuring | 6 | 7 | |
Pre-modification outstanding recorded investment | $ 3,915,000 | $ 930,000 | |
Post-modification recorded investment | 3,697,000 | 921,000 | |
Charge-offs associated with new TDRs | $ 0 | $ 0 | |
Number of TDRs that defaulted | restructuring | 6 | 2 | |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 2,070,000 | $ 174,000 | |
Specific reserves allocated to TDRs | $ 1,275,000 | $ 91,000 | |
Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 0 | 1 | |
Pre-modification outstanding recorded investment | $ 0 | $ 421,000 | |
Post-modification recorded investment | $ 0 | $ 415,000 | |
Number of TDRs that defaulted | restructuring | 1 | 0 | |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 218,000 | $ 0 | |
Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 1 | 5 | |
Pre-modification outstanding recorded investment | $ 474,000 | $ 194,000 | |
Post-modification recorded investment | $ 409,000 | $ 192,000 | |
Number of TDRs that defaulted | restructuring | 1 | 2 | |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 151,000 | $ 174,000 | |
Commercial construction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 4 | 0 | |
Pre-modification outstanding recorded investment | $ 3,440,000 | $ 0 | |
Post-modification recorded investment | $ 3,287,000 | $ 0 | |
Number of TDRs that defaulted | restructuring | 2 | 0 | |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 1,697,000 | $ 0 | |
Residential mortgages | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 0 | 1 | |
Pre-modification outstanding recorded investment | $ 0 | $ 315,000 | |
Post-modification recorded investment | $ 0 | $ 314,000 | |
Number of TDRs that defaulted | restructuring | 0 | 0 | |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 0 | $ 0 | |
Home equity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 0 | 0 | |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | |
Post-modification recorded investment | $ 0 | $ 0 | |
Number of TDRs that defaulted | restructuring | 0 | 0 | |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 0 | $ 0 | |
Consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 1 | 0 | |
Pre-modification outstanding recorded investment | $ 1,000 | $ 0 | |
Post-modification recorded investment | $ 1,000 | $ 0 | |
Number of TDRs that defaulted | restructuring | 2 | 0 | |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 4,000 | $ 0 | |
Extended Maturity Date | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 2 | 0 | |
Post-modification recorded investment | $ 1,697,000 | $ 0 | |
Temporary payment reduction and payment re-amortization of remaining principal over extended term | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 2 | 6 | |
Post-modification recorded investment | $ 978,000 | $ 607,000 | |
Forbearance of post default rights | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 2 | 0 | |
Post-modification recorded investment | $ 1,022,000 | $ 0 | |
Other payment concessions | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of restructurings | restructuring | 0 | 1 | |
Post-modification recorded investment | $ 0 | $ 314,000 |
Allowance For Loan Losses - Oth
Allowance For Loan Losses - Other Real Estate Owned (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)property | Mar. 31, 2019USD ($)property | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying value of OREO | $ 0 | $ 255,000 | $ 0 |
Net gains on sales of OREO | 0 | 0 | |
Consumer mortgage loans in process of foreclosure, amount | 0 | $ 0 | |
Other real estate owned | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
OREO fair value adjustment | $ 0 | $ 0 | |
OREO Additions | property | 0 | 1 |
Allowance For Loan Losses - All
Allowance For Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for loan losses to total loans ratio | 1.48% | 1.41% | 1.31% |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 33,614 | $ 33,849 | |
Provision for loan losses | 6,147 | (400) | |
Recoveries | 120 | 323 | |
Less: Charge offs | 117 | 43 | |
Ending Balance | 39,764 | 33,729 | |
Allocated to loans individually evaluated for impairment | 2,448 | 2,144 | |
Allocated to loans collectively evaluated for impairment | 37,316 | 31,585 | |
Commercial real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 18,338 | 18,014 | |
Provision for loan losses | 2,523 | (188) | |
Recoveries | 0 | 0 | |
Less: Charge offs | 0 | 0 | |
Ending Balance | 20,861 | 17,826 | |
Allocated to loans individually evaluated for impairment | 29 | 6 | |
Allocated to loans collectively evaluated for impairment | 20,832 | 17,820 | |
Commercial and industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 9,129 | 10,493 | |
Provision for loan losses | 1,104 | (406) | |
Recoveries | 107 | 316 | |
Less: Charge offs | 105 | 0 | |
Ending Balance | 10,235 | 10,403 | |
Allocated to loans individually evaluated for impairment | 908 | 2,112 | |
Allocated to loans collectively evaluated for impairment | 9,327 | 8,291 | |
Commercial construction | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 4,149 | 3,307 | |
Provision for loan losses | 2,012 | 145 | |
Recoveries | 0 | 0 | |
Less: Charge offs | 0 | 0 | |
Ending Balance | 6,161 | 3,452 | |
Allocated to loans individually evaluated for impairment | 1,473 | 0 | |
Allocated to loans collectively evaluated for impairment | 4,688 | 3,452 | |
Residential mortgages | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 1,195 | 1,160 | |
Provision for loan losses | 403 | 24 | |
Recoveries | 0 | 0 | |
Less: Charge offs | 0 | 0 | |
Ending Balance | 1,598 | 1,184 | |
Allocated to loans individually evaluated for impairment | 0 | 12 | |
Allocated to loans collectively evaluated for impairment | 1,598 | 1,172 | |
Home equity | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 536 | 629 | |
Provision for loan losses | 97 | (4) | |
Recoveries | 3 | 2 | |
Less: Charge offs | 0 | 0 | |
Ending Balance | 636 | 627 | |
Allocated to loans individually evaluated for impairment | 0 | 0 | |
Allocated to loans collectively evaluated for impairment | 636 | 627 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 267 | 246 | |
Provision for loan losses | 8 | 29 | |
Recoveries | 10 | 5 | |
Less: Charge offs | 12 | 43 | |
Ending Balance | 273 | 237 | |
Allocated to loans individually evaluated for impairment | 38 | 14 | |
Allocated to loans collectively evaluated for impairment | $ 235 | $ 223 |
Leases Narrative (Details)
Leases Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)property | Mar. 31, 2019USD ($) | |
Leases [Abstract] | ||
Number of operating leases | 15 | |
Property subject to or available for operating lease, number of units, purchased | 1 | |
Operating lease expense | $ | $ 325 | $ 334 |
Weighted average remaining lease term on operating leases | 27 years 1 month 6 days | |
Weighted average discount rate for operating leases | 3.79% |
Leases Maturities (Details)
Leases Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 (nine remaining months) | $ 939 | |
2021 | 1,242 | |
2022 | 1,244 | |
2023 | 1,251 | |
2024 | 1,256 | |
Thereafter | 23,344 | |
Total lease payments | 29,276 | |
Less: Imputed interest | 11,308 | |
Total lease liability | $ 17,968 | $ 18,104 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Non-interest checking | $ 858,718 | $ 794,583 |
Interest-bearing checking | 492,313 | 467,988 |
Savings | 205,367 | 203,236 |
Money market | 1,054,344 | 1,009,972 |
CDs $250,000 or less | 216,490 | 220,751 |
CDs greater than $250,000 | 85,618 | 90,200 |
Deposits | 2,912,850 | 2,786,730 |
Reciprocal deposits | $ 471,700 | $ 419,700 |
Borrowed Funds and Subordinat_2
Borrowed Funds and Subordinated Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jan. 31, 2015 | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Borrowed funds | $ 84,169,000 | $ 96,173,000 | |
FHLB 3 month borrowings in conjunction with interest rate swaps | 75,000,000 | ||
Subordinated debt | $ 14,876,000 | $ 14,872,000 | |
Fixed-to Floating Rate Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Subordinated debt | $ 15,000,000 | ||
Subordinated debt, term | 15 years | ||
Original debt issuance costs | $ 190,000 | ||
Subordinated debt, rate until January 30, 2025 | 6.00% | ||
Interest-rate swaps | Cash Flow Hedging | Minimum | |||
Debt Instrument [Line Items] | |||
Term of interest-rate swap cash flow hedges | 3 years | ||
Interest-rate swaps | Cash Flow Hedging | Maximum | |||
Debt Instrument [Line Items] | |||
Term of interest-rate swap cash flow hedges | 5 years |
Borrowed Funds and Subordinat_3
Borrowed Funds and Subordinated Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Maturities Summary, Fixed Rate [Abstract] | ||
FHLB, overnight borrowings | $ 5,000 | $ 92,000 |
FHLB, overnight borrowings, weighted average rate | 0.37% | 1.85% |
FHLB, borrowings less than one year | $ 78,698 | $ 3,697 |
FHLB, borrowings less than one year, weighted average rate | 1.84% | 2.22% |
FHLB, borrowings greater than five years | $ 471 | $ 476 |
FHLB, borrowings greater than five years, weighted average rate | 0.00% | 0.00% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)instrumentloan | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)instrumentloan | ||
Derivative [Line Items] | ||||
Interest expense on cash flow hedges expected to be reclassified in 12 months | $ 605,000 | |||
Fair value of swaps in a net liability position | $ 6,400,000 | |||
Number of Participation Loans with Swap Contingent Liabilities | loan | 1 | 1 | ||
Interest-rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 43,806,000 | $ 10,502,000 | ||
Fair value of interest-rate swap assets | [1] | 3,547,000 | 625,000 | |
Derivative Liability, Notional Amount | 43,806,000 | 35,048,000 | ||
Fair value of interest-rate swap liabilities | [1] | $ 3,547,000 | $ 625,000 | |
Number of Interest Rate Swaps | instrument | 12 | 10 | ||
Gain (Loss) on Interest Rate Swaps | $ 0 | $ 0 | ||
Counterparty Credit Risk Exposure on Interest Rate Swaps | 0 | $ 0 | ||
Collateral posted for interest-rate swaps | 6,600,000 | 850,000 | ||
Interest-rate swaps | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | 0 | |||
Fair value of interest-rate swap assets | [1] | 0 | ||
Derivative Liability, Notional Amount | 75,000,000 | |||
Fair value of interest-rate swap liabilities | [1] | $ 2,869,000 | ||
Number of Interest Rate Swaps | instrument | 3 | |||
Derivative, individual notional amount | $ 25,000,000 | |||
Interest-rate swaps | Cash Flow Hedging | Contract one | ||||
Derivative [Line Items] | ||||
Derivative, term of contract | 3 years | |||
Interest-rate swaps | Cash Flow Hedging | Contract two | ||||
Derivative [Line Items] | ||||
Derivative, term of contract | 4 years | |||
Interest-rate swaps | Cash Flow Hedging | Contract three | ||||
Derivative [Line Items] | ||||
Derivative, term of contract | 5 years | |||
Pay Fixed Receive Variable | Interest-rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | $ 0 | 0 | ||
Fair value of interest-rate swap assets | [1] | 0 | 0 | |
Derivative Liability, Notional Amount | 43,806,000 | 22,775,000 | ||
Fair value of interest-rate swap liabilities | [1] | 3,547,000 | 438,000 | |
Gross Amount Interest Rate Swap Liabilities Recognized | 625,000 | |||
Gross Amount Interest-Rate offset in the Statement of Financial Position | 187,000 | |||
Pay Fixed Receive Variable | Interest-rate swaps | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | 0 | |||
Fair value of interest-rate swap assets | [1] | 0 | ||
Derivative Liability, Notional Amount | 75,000,000 | |||
Fair value of interest-rate swap liabilities | [1] | 2,869,000 | ||
Receive Fixed Pay Variable | Interest-rate swaps | ||||
Derivative [Line Items] | ||||
Derivative Asset, Notional Amount | 43,806,000 | 10,502,000 | ||
Fair value of interest-rate swap assets | [1] | 3,547,000 | 625,000 | |
Derivative Liability, Notional Amount | 0 | 12,273,000 | ||
Fair value of interest-rate swap liabilities | [1] | $ 0 | $ 187,000 | |
[1] | Accrued interest balances related to the Company’s interest rate swaps are not included in the fair values above and are immaterial. |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 11,897,322 | 11,825,331 |
Common Stock, Shares, Outstanding | 11,897,322 | 11,825,331 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Unvested participating restricted stock awards | 124,997 | 102,056 |
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 | $ 122.5 | |
Minimum acquisition percentage to trigger the exercise of the right to purchase | 10.00% |
Comprehensive Income (Loss) OCI
Comprehensive Income (Loss) OCI Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity [Abstract] | ||
Change in fair value of debt securities, pre tax | $ 9,574 | $ 4,040 |
Change in fair value of debt securities, tax expense (benefit) | (2,136) | (907) |
Change in fair value of debt securities, after tax | 7,438 | 3,133 |
Net security gains (losses) reclassifed into non-interest income, pre tax | 100 | (1) |
Net security gains (losses) reclassified into non-interest income, tax expense (benefit) | (22) | 0 |
Net security gains (losses) reclassified into non-interest income, after tax | 78 | (1) |
Net change in fair value of debt securities, pre tax | 9,474 | 4,041 |
Net change in fair value of debt securities, tax expense (benefit) | (2,114) | (907) |
Net change in fair value of debt securities, after tax | 7,360 | 3,134 |
Change in fair value of cash flow hedges, pre tax | (2,844) | 0 |
Change in fair value of cash flow hedges, tax expense (benefit) | 799 | 0 |
Change in fair value of cash flow hedges, after tax | (2,045) | 0 |
Net cash flow hedges gains (losses) reclassified into interest expense, pre tax | 25 | 0 |
Net cash flow hedges gains (losses) reclassified into interest expense, tax expense (benefit) | (7) | 0 |
Net cash flow hedges gains (losses) reclassified into interest expense, after tax | 18 | 0 |
Net change in fair value of cash flow hedges, pre tax | (2,869) | 0 |
Net change in fair value of cash flow hedges, tax expense (benefit) | 806 | 0 |
Net change in fair value of cash flow hedges, after tax | (2,063) | 0 |
Other comprehensive income (loss), net, pre tax | 6,605 | 4,041 |
Other comprehensive income (loss), net, tax expense (benefit) | (1,308) | (907) |
Other comprehensive income, net of tax | $ 5,297 | $ 3,134 |
Comprehensive Income (Loss) AOC
Comprehensive Income (Loss) AOCI Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 10,510 | |
Other comprehensive income, net of tax | 5,297 | $ 3,134 |
Ending Balance | 15,807 | |
Unrealized gains (losses) cash flow | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 0 | 0 |
Other comprehensive income, net of tax | (2,063) | 0 |
Ending Balance | (2,063) | 0 |
Accumulated other comprehensive income/(loss), net | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 10,510 | (1,284) |
Other comprehensive income, net of tax | 5,297 | 3,134 |
Ending Balance | 15,807 | 1,850 |
Unrealized gains (losses) debt securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 10,510 | (1,284) |
Other comprehensive income, net of tax | 7,360 | 3,134 |
Ending Balance | $ 17,870 | $ 1,850 |
Supplemental Retirement Plan _2
Supplemental Retirement Plan and Other Postretirement Benefit Obligations (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)officer | Mar. 31, 2019USD ($) | |
Supplemental Employee Retirement Plan | ||
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 | |
Benefits Paid | $ 69 | $ 69 |
Net periodic benefit cost | 20 | 25 |
Remaining expected SERP accrual in current year | 60 | |
Supplemental Life Insurance Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | $ 23 | $ 50 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Options, Stock Awards, and Stock in Lieu of Directors' Fees (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2020shares | Mar. 31, 2020USD ($)plansshares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of individual stock incentive plans | plans | 1 | |||
Stock-based compensation expense | $ 426 | $ 426 | ||
Income tax (expense) benefit for stock compensation in Income Statement | (32) | 111 | ||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 45 | 48 | ||
Restricted stock | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Restricted stock | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Restricted stock and common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 309 | 301 | ||
Common stock in lieu of cash | Non-Employee Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 72 | $ 77 | $ 253 | |
Number of shares issued in lieu of cash to directors | shares | 8,346 | |||
Vesting, Year Two | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, vesting percentage | 50.00% | 50.00% | ||
Vesting, Year Four | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, vesting percentage | 50.00% | 50.00% | ||
2016 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares remain available for future grants | shares | 189,873 | |||
2009 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of unissued expired shares | shares | 87,849 | |||
Quarterly Average | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair market share price | $ / shares | $ 30.35 |
Stock-Based Compensation Summar
Stock-Based Compensation Summary Information for Options Granted (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted | 24,208 | 23,218 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Term in years | 10 years | 10 years |
Expected volatility | 37.00% | 33.00% |
Weighted average market price on date of grants | $ 28.22 | $ 29.84 |
Per share weighted average fair value | $ 8.41 | $ 8.70 |
Weighted Average | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 3.43% | 2.75% |
Expected life in years | 6 years 6 months | 6 years 6 months |
Risk-free interest rate | 1.02% | 2.58% |
Fair value as a percentage of market value at grant date | 30.00% | 29.00% |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Grants (Details) - Restricted stock - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in the period | 59,311 | 55,198 |
Weighted Average Grant Date Fair Value, Stock Awards | $ 28.22 | $ 29.84 |
Non-Employee Director | Two-year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in the period | 8,295 | 8,368 |
Employee | Four-year vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in the period | 26,015 | 22,403 |
Employee | Performance-based vesting | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock awards in the period | 25,001 | 24,427 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 11,841,392 | 11,730,482 |
Dilutive shares | 35,639 | 52,923 |
Diluted weighted average common shares outstanding | 11,877,031 | 11,783,405 |
Antidilutive shares excluded from EPS | 75,545 | 52,478 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Specific allowance for collateral dependent impaired loans | $ 1,300 | $ 564 |
Letter of Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortization period of estimated fair value on letters of credit | 1 year | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of 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 | 588 | 467 |
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 swaps | ||
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 swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities | 6,416 | 625 |
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 | 505,671 | 504,788 |
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 | 5,624 | 4,484 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 3,547 | 625 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of 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 | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest-rate swaps | ||
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 | 2,079 | 1,268 |
Fair Value | Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities | 6,416 | 625 |
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 | 505,671 | 504,788 |
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 | 588 | 467 |
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 | 5,624 | 4,484 |
Fair Value | Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 3,547 | 625 |
Fair Value | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans (collateral dependent), Fair Value | $ 2,079 | $ 1,268 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative (Details) - Fair Value, Measurements, Nonrecurring - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | $ 2,079 | $ 1,268 | |
Impaired loans (collateral dependent) | Appraisal of collateral | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | [1] | $ 2,079 | $ 1,268 |
Appraisal adjustments | Impaired loans (collateral dependent) | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, collateral dependent, unobservable input value or range | 5.00% | ||
Appraisal adjustments | Impaired loans (collateral dependent) | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, collateral dependent, 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 | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Financial assets: | ||
Loans held for sale | $ 476 | $ 601 |
Loans, net | 2,644,163 | 2,531,845 |
Financial liabilities: | ||
Borrowed Funds | 84,169 | 96,173 |
Subordinated debt | 14,876 | 14,872 |
Carrying Amount | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | 302,108 | 310,951 |
Fair Value | ||
Financial assets: | ||
Loans held for sale | 476 | 609 |
Loans, net | 2,695,924 | 2,542,577 |
Financial liabilities: | ||
Borrowed Funds | 84,212 | 96,045 |
Subordinated debt | 15,969 | 14,957 |
Fair Value | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | 305,405 | 311,975 |
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 | 476 | 609 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed Funds | 84,212 | 96,045 |
Subordinated debt | 0 | 0 |
Fair Value, Inputs, Level 2 | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | 305,405 | 311,975 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 2,695,924 | 2,542,577 |
Financial liabilities: | ||
Borrowed Funds | 0 | 0 |
Subordinated debt | 15,969 | 14,957 |
Fair Value, Inputs, Level 3 | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | $ 0 | $ 0 |
Supplemental Cash Flow (Details
Supplemental Cash Flow (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Supplemental financial data: | |||
Cash paid for: interest | $ 5,000,000 | $ 5,100,000 | |
Cash paid for: income taxes | 3,292,000 | 1,012,000 | |
Cash paid for: lease liability | 322,000 | 288,000 | |
Supplemental schedule of non-cash activity: | |||
Net purchases of investment securities not yet settled | 0 | 1,500,000 | |
Transfer from loans to other real estate owned | 0 | 255,000 | |
ROU lease assets: operating leases(1) | [1] | $ 0 | $ 19,002,000 |
[1] | This represents the ROU lease asset that was recorded upon adoption of ASC 842 in 2019 and new leases added in the periods indicated |