Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | BERKSHIRE HILLS BANCORP INC | |
Entity Central Index Key | 1,108,134 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,895,052 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 177,858 | $ 54,179 |
Short-term investments | 27,660 | 17,575 |
Total cash and cash equivalents | 205,518 | 71,754 |
Trading security | 14,378 | 14,909 |
Securities available for sale, at fair value | 1,204,756 | 1,091,818 |
Securities held to maturity (fair values of $87,512 and $44,997) | 86,994 | 43,347 |
Federal Home Loan Bank stock and other restricted securities | 73,212 | 55,720 |
Total securities | 1,379,340 | 1,205,794 |
Loans held for sale | 48,514 | 19,493 |
Residential mortgages | 1,637,356 | 1,496,204 |
Commercial real estate | 1,907,237 | 1,611,567 |
Commercial and industrial loans | 921,190 | 804,366 |
Consumer loans | 818,831 | 768,463 |
Total loans | 5,284,614 | 4,680,600 |
Less: Allowance for loan losses | (37,197) | (35,662) |
Net loans | 5,247,417 | 4,644,938 |
Premises and equipment, net | 87,519 | 87,279 |
Other real estate owned | 674 | 2,049 |
Goodwill | 308,043 | 264,742 |
Other intangible assets | 12,473 | 11,528 |
Cash surrender value of bank-owned life insurance policies | 123,536 | 104,588 |
Deferred tax assets, net | 39,565 | 28,776 |
Other assets | 66,148 | 61,090 |
Total assets | 7,518,747 | 6,502,031 |
Liabilities | ||
Demand deposits | 1,012,003 | 869,302 |
NOW deposits | 458,570 | 426,108 |
Money market deposits | 1,477,770 | 1,407,179 |
Savings deposits | 621,909 | 496,344 |
Time deposits | 1,751,924 | 1,455,746 |
Total deposits | 5,322,176 | 4,654,679 |
Short-term debt | 1,058,001 | 900,900 |
Long-term Federal Home Loan Bank advances | 118,483 | 61,676 |
Subordinated borrowings | 89,782 | 89,747 |
Total borrowings | 1,266,266 | 1,052,323 |
Other liabilities | 103,154 | 85,742 |
Total liabilities | 6,691,596 | 5,792,744 |
Stockholders’ equity | ||
Common stock ($.01 par value; 50,000,000 shares authorized and 30,879,974 shares issued and 29,521,482 shares outstanding in 2015; 26,525,466 shares issued and 25,182,566 shares outstanding in 2014) | 307 | 265 |
Additional paid-in capital | 700,193 | 585,289 |
Unearned compensation | (8,220) | (6,147) |
Retained earnings | 164,644 | 156,446 |
Accumulated other comprehensive income (loss) | (396) | 6,579 |
Treasury stock, at cost (1,189,561 shares in 2015 and 1,342,900 shares in 2014) | (29,377) | (33,145) |
Total stockholders’ equity | 827,151 | 709,287 |
Total liabilities and stockholders’ equity | $ 7,518,747 | $ 6,502,031 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 87,512 | $ 44,997 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,879,974 | 26,525,466 |
Common stock, shares outstanding | 29,521,482 | 25,182,566 |
Treasury stock, shares | 1,189,561 | 1,342,900 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and dividend income | ||||
Loans | $ 51,504 | $ 42,309 | $ 95,949 | $ 84,803 |
Securities and other | 8,899 | 8,866 | 17,205 | 16,167 |
Total interest and dividend income | 60,403 | 51,175 | 113,154 | 100,970 |
Interest expense | ||||
Deposits | 5,292 | 4,478 | 10,241 | 9,199 |
Borrowings | 2,474 | 2,368 | 4,783 | 4,676 |
Total interest expense | 7,766 | 6,846 | 15,024 | 13,875 |
Net interest income | 52,637 | 44,329 | 98,130 | 87,095 |
Non-interest income | ||||
Loan related income | 2,783 | 1,846 | 4,066 | 3,094 |
Mortgage banking income | 1,546 | 691 | 2,799 | 1,063 |
Deposit related fees | 6,442 | 6,610 | 12,119 | 12,049 |
Insurance commissions and fees | 2,486 | 2,460 | 5,453 | 5,509 |
Wealth management fees | 2,397 | 2,294 | 5,000 | 4,843 |
Total fee income | 15,654 | 13,901 | 29,437 | 26,558 |
Other | (1,258) | 402 | (2,513) | 926 |
Gain on sale of securities, net | 2,384 | 203 | 2,418 | 237 |
Loss on termination of hedges | 0 | 0 | 0 | (8,792) |
Total non-interest income | 16,780 | 14,506 | 29,342 | 18,929 |
Total net revenue | 69,417 | 58,835 | 127,472 | 106,024 |
Provision for loan losses | 4,204 | 3,989 | 8,055 | 7,385 |
Non-interest expense | ||||
Compensation and benefits | 24,503 | 20,279 | 46,314 | 40,138 |
Occupancy and equipment | 7,243 | 6,656 | 14,351 | 13,470 |
Technology and communications | 4,090 | 3,800 | 7,683 | 7,578 |
Marketing and promotion | 800 | 621 | 1,513 | 1,142 |
Professional services | 1,375 | 1,024 | 2,647 | 2,176 |
FDIC premiums and assessments | 1,143 | 1,029 | 2,272 | 2,038 |
Other real estate owned and foreclosures | 251 | 33 | 502 | 556 |
Amortization of intangible assets | 934 | 1,274 | 1,835 | 2,580 |
Acquisition, restructuring and conversion related expenses | 8,711 | 190 | 13,132 | 6,491 |
Other | 4,975 | 4,357 | 8,924 | 8,454 |
Total non-interest expense | 54,025 | 39,263 | 99,173 | 84,623 |
Income before income taxes | 11,188 | 15,583 | 20,244 | 14,016 |
Income tax expense | 1,144 | 4,119 | 1,441 | 3,658 |
Net income | $ 10,044 | $ 11,464 | $ 18,803 | $ 10,358 |
Earnings per share: | ||||
Basic (USD per share) | $ 0.35 | $ 0.46 | $ 0.71 | $ 0.42 |
Diluted (USD per share) | $ 0.35 | $ 0.46 | $ 0.70 | $ 0.42 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 28,301 | 24,715 | 26,557 | 24,707 |
Diluted (in shares) | 28,461 | 24,809 | 26,713 | 24,821 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,044 | $ 11,464 | $ 18,803 | $ 10,358 |
Other comprehensive income, before tax: | ||||
Changes in unrealized gain on securities available-for-sale | (16,071) | 11,113 | (6,734) | 17,133 |
Changes in unrealized loss on derivative hedges | 784 | (3,267) | (3,117) | 1,266 |
Changes in unrealized gain on terminated swaps | 0 | 0 | 0 | 3,237 |
Changes in unrealized loss on pension | 65 | 0 | (1,466) | 0 |
Income taxes related to other comprehensive income: | ||||
Changes in unrealized gain on securities available-for-sale | 6,100 | (4,261) | 2,495 | (6,481) |
Changes in unrealized loss on derivative hedges | (316) | 1,322 | 1,256 | (510) |
Changes in unrealized gain on terminated swaps | 0 | 0 | 0 | (1,312) |
Changes in unrealized loss on pension | (26) | 0 | 591 | 0 |
Total other comprehensive (loss) income | (9,464) | 4,907 | (6,975) | 13,333 |
Total comprehensive income | $ 580 | $ 16,371 | $ 11,828 | $ 23,691 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Unearned compensation | Retained earnings | Accumulated other comprehensive (loss) income | Treasury stock | |
Balance (shares) at Dec. 31, 2013 | 25,036 | |||||||
Balance at Dec. 31, 2013 | $ 678,062 | $ 265 | $ 587,247 | $ (5,563) | $ 141,958 | $ (9,057) | $ (36,788) | |
Comprehensive income: | ||||||||
Net income | 10,358 | 10,358 | ||||||
Other comprehensive income | 13,333 | 13,333 | ||||||
Total comprehensive income | 23,691 | |||||||
Cash dividends declared | (9,122) | (9,122) | ||||||
Treasury stock purchased (shares) | (100) | |||||||
Treasury stock purchased | (2,467) | (2,467) | ||||||
Forfeited shares (shares) | (7) | |||||||
Forfeited shares | 0 | (6) | 156 | (150) | ||||
Exercise of stock options (shares) | 72 | |||||||
Exercise of stock options | 848 | (945) | 1,793 | |||||
Restricted stock grants (shares) | 130 | |||||||
Restricted stock grants | 0 | 44 | (3,264) | 3,220 | ||||
Stock-based compensation | 1,824 | 41 | 1,783 | |||||
Net tax benefit related to stock-based compensation | (1,980) | (1,980) | ||||||
Other, net (shares) | (16) | |||||||
Other, net | (393) | (6) | (387) | |||||
Balance (shares) at Jun. 30, 2014 | 25,115 | |||||||
Balance at Jun. 30, 2014 | 690,463 | $ 265 | 585,340 | (6,888) | 142,249 | 4,276 | (34,779) | |
Balance (shares) at Dec. 31, 2014 | 25,183 | |||||||
Balance at Dec. 31, 2014 | 709,287 | $ 265 | 585,289 | (6,147) | 156,446 | 6,579 | (33,145) | |
Comprehensive income: | ||||||||
Net income | 18,803 | 18,803 | ||||||
Other comprehensive income | (6,975) | (6,975) | ||||||
Total comprehensive income | 11,828 | |||||||
Acquisition of Hampden Bancorp, Inc. (shares) | [1] | 4,186 | ||||||
Acquisition of Hampden Bancorp, Inc., amount | [1] | 114,604 | $ 42 | 114,562 | ||||
Cash dividends declared | (10,440) | (10,440) | ||||||
Forfeited shares (shares) | (11) | |||||||
Forfeited shares | 28 | 254 | (282) | |||||
Exercise of stock options (shares) | 11 | |||||||
Exercise of stock options | 116 | (165) | 281 | |||||
Restricted stock grants (shares) | 174 | |||||||
Restricted stock grants | 0 | 283 | (4,579) | 4,296 | ||||
Stock-based compensation | 2,252 | 2,252 | ||||||
Net tax benefit related to stock-based compensation | 26 | 26 | ||||||
Other, net (shares) | (22) | |||||||
Other, net | (522) | 5 | (527) | |||||
Balance (shares) at Jun. 30, 2015 | 29,521 | |||||||
Balance at Jun. 30, 2015 | $ 827,151 | $ 307 | $ 700,193 | $ (8,220) | $ 164,644 | $ (396) | $ (29,377) | |
[1] | The Company's common stock includes the elimination of $4.6 million of Berkshire Hills Bancorp stock held by a subsidiary. |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (USD per share) | $ 0.38 | $ 0.36 |
Eliminated value of Berkshire Hills Bancorp stock held by a subsidiary | $ 4.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 18,803 | $ 10,358 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 8,055 | 7,385 |
Net amortization of securities | 863 | 1,008 |
Change in unamortized net loan costs and premiums | 836 | (1,008) |
Premises and equipment depreciation and amortization expense | 4,282 | 4,037 |
Stock-based compensation expense | 2,252 | 1,824 |
Accretion of purchase accounting entries, net | (3,071) | (3,479) |
Amortization of other intangibles | 1,835 | 2,580 |
Write down of other real estate owned | 75 | 160 |
Excess tax loss from stock-based payment arrangements | (26) | (93) |
Income from cash surrender value of bank-owned life insurance policies | (1,535) | (1,458) |
Gain on sales of securities, net | (2,418) | (237) |
Net (increase) decrease in loans held for sale | (28,102) | (4,345) |
Loss on disposition of assets | 2,084 | 715 |
Loss on sale of real estate | 400 | 170 |
Loss on termination of hedges | 0 | 3,237 |
Amortization of interest in tax-advantaged projects | 5,748 | 825 |
Net change in other | (8,384) | 3,143 |
Net cash provided by operating activities | 1,697 | 24,822 |
Cash flows from investing activities: | ||
Net decrease in trading security | 282 | 268 |
Proceeds from sales of securities available for sale | 22,504 | 79,550 |
Proceeds from maturities, calls and prepayments of securities available for sale | 94,561 | 68,342 |
Purchases of securities available for sale | (174,992) | (447,063) |
Proceeds from maturities, calls and prepayments of securities held to maturity | 1,875 | 2,764 |
Purchases of securities held to maturity | (45,520) | (1,021) |
Net change in loans | (126,806) | (268,616) |
Purchases of bank owned life insurance | 431 | 0 |
Proceeds from sale of Federal Home Loan Bank stock | 163 | 379 |
Purchase of Federal Home Loan Bank stock | (10,706) | (9,576) |
Net investment in limited partnership tax credits | (2,500) | (2,884) |
Proceeds from the sale of premises and equipment | 541 | 1,756 |
Purchase of premises and equipment, net | (3,070) | (4,302) |
Acquisitions, net of cash paid | 83,134 | 423,416 |
Proceeds from sale of other real estate | 1,476 | 799 |
Net cash (used in) provided by investing activities | (158,627) | (156,188) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 206,354 | 189,568 |
Proceeds from Federal Home Loan Bank advances and other borrowings | 3,896,000 | 2,935,035 |
Repayments of Federal Home Loan Bank advances and other borrowings | (3,801,362) | (2,945,250) |
Purchase of treasury stock | 0 | (2,467) |
Exercise of stock options | 116 | 848 |
Excess tax loss from stock-based payment arrangements | 26 | 93 |
Common stock cash dividends paid | (10,440) | (9,122) |
Net cash provided (used) by financing activities | 290,694 | 168,705 |
Net change in cash and cash equivalents | 133,764 | 37,339 |
Cash and cash equivalents at beginning of year | 71,754 | 75,539 |
Cash and cash equivalents at end of year | 205,518 | 112,878 |
Supplemental cash flow information: | ||
Interest paid on deposits | 10,290 | 9,177 |
Interest paid on borrowed funds | 4,555 | 5,533 |
Income taxes paid, net | 324 | 71 |
Acquisition of non-cash assets and liabilities: | ||
Assets acquired | 730,868 | 18,064 |
Liabilities assumed | (611,601) | (441,550) |
Other non-cash changes: | ||
Other net comprehensive income | (6,975) | 10,096 |
Real estate owned acquired in settlement of loans | $ 460 | $ 816 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and contain all adjustments, consisting solely of normal, recurring adjustments, necessary for a fair presentation of results for such periods. In addition, these interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to U.S. GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and note disclosures for Berkshire Hills Bancorp, Inc. (the “Company”) previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. Recently Adopted Accounting Standards In January 2014, the Financial Accounting Standard Board “FASB” issued Accounting Standard Updated “ASU” ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. This new guidance also requires new disclosures for all investors in these projects. ASU No. 2014-01 is effective for interim and annual reporting periods beginning after December 15, 2014. Upon adoption, the guidance must be applied retrospectively to all periods presented. However, entities that use the effective yield method to account for investments in these projects before adoption may continue to do so for these pre-existing investments. The Company has elected not to adopt the proportional amortization method, which had no impact on our consolidated financial statements. Also in January 2014, the FASB issued ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted the provisions of ASU No. 2014-04 effective January 1, 2015, which did not have a material effect on our consolidated financial statements. See Note 6. Loan Loss Allowance to the Consolidated Financial Statements for the disclosures required by ASU No. 2014-04. In June 2014, the FASB issued ASU No. 2014-11 related to repurchase-to-maturity transactions, repurchase financing and disclosures. The pronouncement changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The pronouncement also requires two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales in transactions that are economically similar to repurchase agreements. The second disclosure provides increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The pronouncement is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is not permitted. As of March 31, 2015, the Company did not have any repurchase transactions, and therefore the adoption of this pronouncement did not have an impact on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-14 related to classification of certain government-guaranteed mortgage loans upon foreclosure. The objective of this guidance is to reduce diversity in practice related to how creditors classify government-guaranteed mortgage loans, including FHA or VA guaranteed loans, upon foreclosure. Some creditors reclassify those loans to real estate consistent with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments in this guidance require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure; (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The pronouncement is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted the provisions of ASU No. 2014-14 effective January 1, 2015, which did not have a material effect on our consolidated financial statements. Future Application of Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09 related to the recognition of revenue from contracts with customers. The new revenue pronouncement creates a single source of revenue guidance for all companies in all industries and is more principles-based than current revenue guidance. The pronouncement provides a five-step model for a company to recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The five steps are (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the separate performance obligations and (5) recognize revenue when each performance obligation is satisfied. The standard is effective for public entities for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e., interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e., interim and annual reporting periods beginning after December 15, 2016). For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions of ASU No. 2014-09, and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on our consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” This ASU affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of this pronouncement is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of this pronouncement is not expected to have a material impact on our consolidated financial statements. |
BRANCH ACQUISITION
BRANCH ACQUISITION | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
BRANCH ACQUISITION | BANK ACQUISITION Hampden Bancorp, Inc. On April 17, 2015, the Company acquired all of the outstanding common shares of Hampden Bancorp, Inc. (“Hampden”). Hampden, as a holding company, had one banking subsidiary (“Hampden Bank”) that had ten branches primarily serving western Massachusetts. As a result of the transaction, Hampden merged into Berkshire Hills Bancorp, and Hampden Bank merged into Berkshire Bank. This business combination increases Berkshire’s market share in its franchise and the goodwill recognized results from the expected synergies and earnings accretion from this combination, including future cost savings related to Hampden’s operations. On the acquisition date, Hampden had 5.167 million outstanding common shares, net of 209 thousand shares held by Berkshire Bank. Hampden shareholders received 4.186 million Berkshire common shares based on an exchange ratio of 0.81 shares of Berkshire common stock for each Hampden share. The merger qualifies as a reorganization for federal income tax purposes, and as a result, Hampden common shares exchanged for Berkshire common shares are transferred on a tax-free basis. The 4.355 million shares of Berkshire common stock issued in this exchange were valued at $27.38 per share based on the closing price of Berkshire posted on April 17, 2015. Excluding the 169 thousand shares issued to Berkshire Bank, this resulted in a consideration value of $114.6 million . The Hampden shares held by Berkshire Bank were valued at $4.6 million , and the value in excess of the carrying value was recorded as a $2.2 million non-recurring securities gain in the statement of income. The results of Hampden’s operations are included in the Company's Consolidated Statement of Income from the date of acquisition. The assets and liabilities in the Hampden acquisition were recorded at their fair value based on management’s best estimate using information available as of the date of acquisition. Consideration paid, and fair values of Hampden’s assets acquired and liabilities assumed, along with the resulting goodwill, are summarized in the following tables: Fair Value As Recorded at (in thousands) As Acquired Adjustments Acquisition Consideration paid: Berkshire Hills Bancorp common stock issued to Hampden common stockholders $ 114,604 Fair value of Hampden shares previously owned by the Company prior to acquisition 4,632 Total consideration paid $ 119,236 Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: Cash and short-term investments $ 83,134 $ — $ 83,134 Investment securities 72,439 (224 ) (a) 72,215 Loans 501,870 (8,101 ) (b) 493,769 Premises and equipment 4,449 775 (c) 5,224 Core deposit intangibles — 2,780 (d) 2,780 Deferred tax assets, net 3,875 3,091 (e) 6,966 Other assets 22,919 560 (f) 23,479 Deposits (482,130 ) (1,439 ) (g) (483,569 ) Borrowings (117,135 ) (2,380 ) (h) (119,515 ) Other liabilities (8,395 ) (124 ) (i) (8,519 ) Total identifiable net assets $ 81,026 $ (5,062 ) $ 75,964 Goodwill $ 43,272 Explanation of Certain Fair Value Adjustments (a) The adjustment represents the write down of the book value of investments to their estimated fair value based on fair values on the date of acquisition. (b) The adjustment represents the write down of the book value of loans to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan loss inherent in the portfolio. Loans that met the criteria and are being accounted for in accordance with ASC 310-30 had a book value of $28.5 million and have a fair value $16.7 million . Non-impaired loans accounted for under ASC 310-10 had a book value of $473.4 million and have a fair value of $ 477.1 million . ASC 310-30 loans have a $4.0 million fair value adjustment discount that is accretable in earnings over an estimated five year life using the effective yield as determined on the date of acquisition. The effective yield is periodically adjusted for changes in expected flows. ASC 310-10 loans have a $0.4 million fair value adjustment premium that is amortized into expense over the remaining term of the loans using the effective interest method, or a straight-line method if the loan is a revolving credit facility. (c) The amount represents the adjustment of the book value of buildings and equipment, to their estimated fair value based on appraisals and other methods. The adjustments will be depreciated over the estimated economic lives of the assets. (d) The adjustment represents the value of the core deposit base assumed in the acquisition. The core deposit asset was recorded as an identifiable intangible asset and will be amortized using a straight-line method over the average life of the deposit base, which is estimated to be nine years. (e) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles, and other purchase accounting adjustments. (f) The amount consists of a $0.2 million fair value adjustment to write-down other real estate owned based on market report data, a $0.3 million write-down of mortgage servicing assets acquired based on valuation reports, a $0.5 million write-off of prepaid assets due to obsolescence, and a $1.6 million measurement period adjustment increase to current taxes receivable. These adjustments are not accretable into earnings in the statement of income. (g) The adjustment is necessary because the weighted average interest rate of time deposits exceeded the cost of similar funding at the time of acquisition. The amount will be amortized using an accelerated method over the estimated useful life of two years. (h) Adjusts borrowings to their estimated fair value, which is calculated based on the amount of prepayment penalties that would be incurred if the borrowings were exited with the Federal Home Loan Bank of Boston on the date of acquisition. (i) Adjusts the book value of other liabilities to their estimated fair value at the acquisition date. The adjustment consists of a $0.4 million write-off of deferred revenue, a $0.3 million increase to post-retirement liabilities due to change-in-control provisions, and a $0.2 million increase related to non-level leases. Except for collateral dependent loans with deteriorated credit quality, the fair values for loans acquired were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted by estimating future credit losses and the rate of prepayments. Projected monthly cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. For collateral dependent loans with deteriorated credit quality, to estimate the fair value we analyzed the value of the underlying collateral of the loans, assuming the fair values of the loans were derived from the eventual sale of the collateral. Those values were discounted using market derived rates of return, with consideration given to the period of time and costs associated with the foreclosure and disposition of the collateral. There was no carryover of the seller’s allowance for credit losses associated with the loans that were acquired in the acquisition as the loans were initially recorded at fair value. Information about the acquired loan portfolio subject to ASC 310-30 as of April 17, 2015 is, as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 28,505 Contractual cash flows not expected to be collected (nonaccretable discount) (7,884 ) Expected cash flows at acquisition 20,621 Interest component of expected cash flows (accretable discount) (3,950 ) Fair value of acquired loans $ 16,671 The goodwill, which is not amortized for book purposes, was assigned to our banking segment and is not deductible for tax purposes. The fair value of savings and transaction deposit accounts acquired in the Hampden acquisition was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits was estimated by discounting the contractual future cash flows using market rates offered for time deposits of similar remaining maturities. Direct acquisition and integration costs of the Hampden acquisition were expensed as incurred, and totaled $8.0 million during the six months ending June 30, 2015 and there were $0 million for the same period of 2014. The Company has determined it is impractical to report the amounts of revenue and earnings of the acquired entity since the acquisition date. Due to the integration of its operations with those of the organization, the Company does not record revenue and earnings separately for these operations. The revenue and earnings of these operations are included in the consolidated statement of income. The following table presents selected unaudited pro forma financial information reflecting the acquisition assuming it was completed as of January 1, 2014. The unaudited pro forma financial information includes adjustments for scheduled amortization and accretion of fair value adjustments recorded at the time of the merger. These adjustments would have been different if they had been recorded on January 1, 2014, and they do not include the impact of prepayments. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the combined financial results of the Company and Hampden had the transaction actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. Pro forma basic and diluted earnings per common share were calculated using Berkshire’s actual weighted-average shares outstanding for the periods presented plus the 4.2 million shares issued as a result of the Hampden acquisition. The unaudited pro forma information is based on the actual financial statements of Berkshire and Hampden for the periods shown until the date of acquisition, at which time the Hampden operations became included in Berkshire’s financial statements. The unaudited pro forma information, for the six months ended June 30, 2015 and 2014, set forth below reflects adjustments related to (a) amortization and accretion of purchase accounting fair value adjustments; (b) amortization of core deposit intangible; and (c) an estimated tax rate of 40.5 percent . Direct acquisition expenses incurred by Berkshire during 2015 as noted above, and $7.7 million recorded by Hampden are reversed for the purposes of this unaudited pro forma information. Also excluded during 2015, was a $2.2 million gain on Hampden stock that was held by Berkshire at the time of acquisition. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing or anticipated cost-savings that could occur after June 30, 2015. Information in the following table is shown in thousands, except earnings per share: Pro Forma (unaudited) Six Months Ended June 30, 2015 2014 Net interest income $ 105,076 $ 98,639 Non-interest income 28,010 20,708 Net income 22,244 13,435 Pro forma earnings per share: Basic $ 0.77 $ 0.46 Diluted $ 0.76 $ 0.46 |
TRADING SECURITY
TRADING SECURITY | 6 Months Ended |
Jun. 30, 2015 | |
Trading Securities [Abstract] | |
TRADING SECURITY | TRADING SECURITY The Company holds a tax advantaged economic development bond that is being accounted for at fair value. The security had an amortized cost of $12.3 million and $12.6 million , and a fair value of $14.4 million and $14.9 million , at June 30, 2015 and December 31, 2014 , respectively. As discussed further in Note 13 - Derivative Financial Instruments and Hedging Activities, the Company has entered into a swap contract to swap-out the fixed rate of the security in exchange for a variable rate. The Company does not purchase securities with the intent of selling them in the near term, and there are no other securities in the trading portfolio at June 30, 2015 . |
SECURITIES AVAILABLE FOR SALE A
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY | SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY The following is a summary of securities available for sale and held to maturity: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 147,779 $ 4,226 $ (1,704 ) $ 150,301 Government-guaranteed residential mortgage-backed securities 61,533 511 (177 ) 61,867 Government-sponsored residential mortgage-backed securities 886,974 7,005 (4,281 ) 889,698 Corporate bonds 51,651 137 (1,030 ) 50,758 Trust preferred securities 12,747 590 (72 ) 13,265 Other bonds and obligations 3,197 — (30 ) 3,167 Total debt securities 1,163,881 12,469 (7,294 ) 1,169,056 Marketable equity securities 31,616 5,998 (1,914 ) 35,700 Total securities available for sale 1,195,497 18,467 (9,208 ) 1,204,756 Securities held to maturity Municipal bonds and obligations 49,343 25 (992 ) 48,376 Government-sponsored residential mortgage-backed securities 69 3 — 72 Tax advantaged economic development bonds 37,251 1,509 (27 ) 38,733 Other bonds and obligations 331 — — 331 Total securities held to maturity 86,994 1,537 (1,019 ) 87,512 Total $ 1,282,491 $ 20,004 $ (10,227 ) $ 1,292,268 December 31, 2014 Securities available for sale Debt securities: Municipal bonds and obligations $ 127,014 $ 6,859 $ (174 ) $ 133,699 Government-guaranteed residential mortgage-backed securities 68,972 702 (206 ) 69,468 Government-sponsored residential mortgage-backed securities 755,893 7,421 (3,130 ) 760,184 Corporate bonds 55,134 120 (1,103 ) 54,151 Trust preferred securities 16,607 820 (1,212 ) 16,215 Other bonds and obligations 3,211 — (52 ) 3,159 Total debt securities 1,026,831 15,922 (5,877 ) 1,036,876 Marketable equity securities 48,993 7,322 (1,373 ) 54,942 Total securities available for sale 1,075,824 23,244 (7,250 ) 1,091,818 Securities held to maturity Municipal bonds and obligations 4,997 — — 4,997 Government-sponsored residential mortgage-backed securities 70 4 — 74 Tax advantaged economic development bonds 37,948 1,680 (34 ) 39,594 Other bonds and obligations 332 — — 332 Total securities held to maturity 43,347 1,684 (34 ) 44,997 Total $ 1,119,171 $ 24,928 $ (7,284 ) $ 1,136,815 The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities, segregated by contractual maturity at June 30, 2015 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Equity securities have no maturity and are also shown in total. Available for sale Held to maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within 1 year $ 31,405 $ 30,472 $ 4,320 $ 4,320 Over 1 year to 5 years 1,255 1,270 18,924 19,751 Over 5 years to 10 years 12,364 12,590 12,904 13,066 Over 10 years 170,350 173,159 50,777 50,303 Total bonds and obligations 215,374 217,491 86,925 87,440 Marketable equity securities 31,616 35,700 — — Residential mortgage-backed securities 948,507 951,565 69 72 Total $ 1,195,497 $ 1,204,756 $ 86,994 $ 87,512 Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (In thousands) Losses Value Losses Value Losses Value June 30, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 618 $ 11,657 $ 1,086 $ 30,986 $ 1,704 $ 42,643 Government-guaranteed residential mortgage-backed securities 128 12,773 49 14,035 177 26,808 Government-sponsored residential mortgage-backed securities 3,297 180,831 984 122,864 4,281 303,695 Corporate bonds — — 1,030 36,158 1,030 36,158 Trust preferred securities — — 72 928 72 928 Other bonds and obligations 30 3,025 — — 30 3,025 Total debt securities 4,073 208,286 3,221 204,971 7,294 413,257 Marketable equity securities 1,871 8,972 43 299 1,914 9,271 Total securities available for sale 5,944 217,258 3,264 205,270 9,208 422,528 Securities held to maturity Municipal bonds and obligations 176 4,880 816 30,981 992 35,861 Tax advantaged economic development bonds 27 7,847 — — 27 7,847 Total securities held to maturity 203 12,727 816 30,981 1,019 43,708 Total $ 6,147 $ 229,985 $ 4,080 $ 236,251 $ 10,227 $ 466,236 December 31, 2014 Securities available for sale Debt securities: Municipal bonds and obligations $ 8 $ 1,001 $ 166 $ 7,206 $ 174 $ 8,207 Government guaranteed residential mortgage-backed securities 46 7,122 160 16,727 206 23,849 Government-sponsored residential mortgage-backed securities 236 30,672 2,894 167,473 3,130 198,145 Corporate bonds 1,103 39,571 — — 1,103 39,571 Trust preferred securities 65 935 1,147 2,408 1,212 3,343 Other bonds and obligations — — 52 3,035 52 3,035 Total debt securities 1,458 79,301 4,419 196,849 5,877 276,150 Marketable equity securities 1,039 9,902 334 4,755 1,373 14,657 Total securities available for sale 2,497 89,203 4,753 201,604 7,250 290,807 Securities held to maturity Tax advantaged economic development bonds — — 34 7,972 34 7,972 Total securities held to maturity — — 34 7,972 34 7,972 Total $ 2,497 $ 89,203 $ 4,787 $ 209,576 $ 7,284 $ 298,779 Debt Securities The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of June 30, 2015 , prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at June 30, 2015 : AFS municipal bonds and obligations At June 30, 2015 , 41 of the total 186 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 3.8% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing. AFS residential mortgage-backed securities At June 30, 2015 , 86 out of the total 253 securities in the Company’s portfolios of AFS residential mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 1.2% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”) and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s residential mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. AFS corporate bonds At June 30, 2015 , 3 out of 5 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 2.8% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. None of the bonds are investment grade rated. At June 30, 2015 , $0.9 million of the total unrealized losses was attributable to a $31.4 million investment. The Company evaluated this security, with a Level 2 fair value of $30.5 million , for potential other-than-temporary impairment (“OTTI”) at June 30, 2015 and determined that OTTI was not evident based on both the Company’s ability and intent to hold the security until the recovery of its remaining amortized cost. AFS trust preferred securities At June 30, 2015 , 1 out of the 4 securities in the Company’s portfolio of AFS trust preferred securities was in an unrealized loss position. Aggregate unrealized losses represented 7.2% of the amortized cost of the security in an unrealized loss position. The Company’s evaluation of the present value of expected cash flows on this security supports its conclusions about the recoverability of the securities’ amortized cost basis. This security is investment grade rated. The Company reviews the financial strength of all of the single issue trust issuers and has concluded that the amortized cost remains supported by the market value of these securities and they are performing. AFS other bonds and obligations At June 30, 2015 , 4 of the total 8 securities in the Company’s portfolio of other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 0.9% of the amortized cost of securities in unrealized loss positions. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing. Marketable Equity Securities In evaluating its marketable equity securities portfolio for OTTI, the Company considers its ability to more likely than not hold an equity security to recovery. The Company additionally considers other various factors including the length of time and the extent to which the fair value has been less than cost and the financial condition and near term prospects of the issuer. Any OTTI is recognized immediately through earnings. At June 30, 2015 , 4 out of the total 24 securities in the Company’s portfolio of marketable equity securities were in an unrealized loss position. The unrealized loss represented 17.1% of the amortized cost of the securities. The Company has the ability and intent to hold the securities until recovery of their cost basis and does not consider the securities other-than-temporarily impaired at June 30, 2015 . As new information becomes available in future periods, changes to the Company’s assumptions may be warranted and could lead to a different conclusion regarding the OTTI of these securities. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
LOANS | LOANS The Company’s loan portfolio is segregated into the following segments: residential mortgage, commercial real estate, commercial and industrial, and consumer. Residential mortgage loans include classes for 1-4 family owner occupied and construction loans. Commercial real estate loans include construction, single and multi-family, and other commercial real estate classes. Commercial and industrial loans include asset based lending loans, lease financing and other commercial business loan classes. Consumer loans include home equity, direct and indirect auto, and other. These portfolio segments each have unique risk characteristics that are considered when determining the appropriate level for the allowance for loan losses. A substantial portion of the loan portfolio is secured by real estate in western Massachusetts, southern Vermont, northeastern New York, and in the Bank’s other New England lending areas. The ability of many of the Bank’s borrowers to honor their contracts is dependent, among other things, on the specific economy and real estate markets of these areas. Total loans include business activity loans and acquired loans. Acquired loans are those loans acquired from Hampden Bancorp, Inc., the New York branch acquisition, Beacon Federal Bancorp, Inc., The Connecticut Bank and Trust Company, Legacy Bancorp, Inc., and Rome Bancorp, Inc. The following is a summary of total loans: June 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential mortgages: 1-4 family $ 1,238,456 $ 366,046 $ 1,604,502 $ 1,199,408 $ 268,734 $ 1,468,142 Construction 30,247 2,607 32,854 27,044 1,018 28,062 Total residential mortgages 1,268,703 368,653 1,637,356 1,226,452 269,752 1,496,204 Commercial real estate: Construction 181,157 44,230 225,387 169,189 4,201 173,390 Single and multi-family 149,716 47,950 197,666 140,050 53,168 193,218 Other commercial real estate 1,105,381 378,803 1,484,184 1,030,837 214,122 1,244,959 Total commercial real estate 1,436,254 470,983 1,907,237 1,340,076 271,491 1,611,567 Commercial and industrial loans: Asset based lending 339,331 — 339,331 341,246 — 341,246 Other commercial and industrial loans 490,594 91,265 581,859 411,945 51,175 463,120 Total commercial and industrial loans 829,925 91,265 921,190 753,191 51,175 804,366 Total commercial loans 2,266,179 562,248 2,828,427 2,093,267 322,666 2,415,933 Consumer loans: Home equity 294,878 56,275 351,153 252,681 65,951 318,632 Auto and other 315,500 152,178 467,678 346,480 103,351 449,831 Total consumer loans 610,378 208,453 818,831 599,161 169,302 768,463 Total loans $ 4,145,260 $ 1,139,354 $ 5,284,614 $ 3,918,880 $ 761,720 $ 4,680,600 The carrying amount of the acquired loans at June 30, 2015 totaled $1.1 billion . A subset of these loans was determined to have evidence of credit deterioration at acquisition date, which is accounted for in accordance with ASC 310-30. These purchased credit-impaired loans presently maintain a carrying value of $24.9 million (and a note balance of $45.2 ). These loans are evaluated for impairment through the periodic reforecasting of expected cash flows. Loans that were considered not impaired at the acquisition date had a carrying amount of $1.1 billion . The carrying amount of the acquired loans at December 31, 2014 totaled $762 million . A subset of these loans was determined to have evidence of credit deterioration at acquisition date, which is accounted for in accordance with ASC 310-30. These purchased credit-impaired loans presently maintain a carrying value of $13.8 million (and a note balance of $25.8 ). These loans are evaluated for impairment through the periodic reforecasting of expected cash flows. Loans that were considered not impaired at the acquisition date had a carrying amount of $747.9 million . The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. Three Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of period $ 3,431 $ 3,154 Acquisitions 4,178 — Sales — — Reclassification form nonaccretable difference for loans with improved cash flows 405 39 Change in cash flows that do not affect nonaccretable difference — (149 ) Accretion (1,474 ) (604 ) Balance at end of period $ 6,540 $ 2,440 Six Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of period $ 2,541 $ 2,559 Acquisitions 4,178 — Sales — — Reclassification form nonaccretable difference for loans with improved cash flows 1,736 1,579 Change in cash flows that do not affect nonaccretable difference — (149 ) Accretion (1,915 ) (1,549 ) Balance at end of period $ 6,540 $ 2,440 The following is a summary of past due loans at June 30, 2015 and December 31, 2014 : Business Activities Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing June 30, 2015 Residential mortgages: 1-4 family $ 1,915 $ 1,073 $ 3,777 $ 6,765 $ 1,231,691 $ 1,238,456 $ 913 Construction — — — — 30,247 30,247 — Total 1,915 1,073 3,777 6,765 1,261,938 1,268,703 913 Commercial real estate: Construction — — 199 199 180,958 181,157 — Single and multi-family 135 260 262 657 149,059 149,716 187 Other commercial real estate 993 1,819 6,896 9,708 1,095,673 1,105,381 442 Total 1,128 2,079 7,357 10,564 1,425,690 1,436,254 629 Commercial and industrial loans: Asset based lending — — — — 339,331 339,331 — Other commercial and industrial loans 355 438 2,447 3,240 487,354 490,594 — Total 355 438 2,447 3,240 826,685 829,925 — Consumer loans: Home equity 60 — 2,623 2,683 292,195 294,878 1,194 Auto and other 928 120 293 1,341 314,159 315,500 2 Total 988 120 2,916 4,024 606,354 610,378 1,196 Total $ 4,386 $ 3,710 $ 16,497 $ 24,593 $ 4,120,667 $ 4,145,260 $ 2,738 Business Activities Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing December 31, 2014 Residential mortgages: 1-4 family $ 5,580 $ 146 $ 4,053 $ 9,779 $ 1,189,629 $ 1,199,408 $ 1,527 Construction 666 410 — 1,076 25,968 27,044 — Total 6,246 556 4,053 10,855 1,215,597 1,226,452 1,527 Commercial real estate: Construction — 2,000 720 2,720 166,469 169,189 — Single and multi-family 178 156 458 792 139,258 140,050 — Other commercial real estate 692 705 9,383 10,780 1,020,057 1,030,837 621 Total 870 2,861 10,561 14,292 1,325,784 1,340,076 621 Commercial and industrial loans: Asset based lending — — — — 341,246 341,246 — Other commercial and industrial loans 1,040 498 856 2,394 409,551 411,945 6 Total 1,040 498 856 2,394 750,797 753,191 6 Consumer loans: Home equity 333 1,000 1,387 2,720 249,961 252,681 230 Auto and other 831 65 315 1,211 345,269 346,480 10 Total 1,164 1,065 1,702 3,931 595,230 599,161 240 Total $ 9,320 $ 4,980 $ 17,172 $ 31,472 $ 3,887,408 $ 3,918,880 $ 2,394 Acquired Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing June 30, 2015 Residential mortgages: 1-4 family $ 1,622 $ 514 $ 1,787 $ 3,923 $ 2,615 $ 366,046 $ 417 Construction — — — — — 2,607 — Total 1,622 514 1,787 3,923 2,615 368,653 417 Commercial real estate: Construction — — 664 664 3,289 44,230 — Single and multi-family 310 — 158 468 1,798 47,950 — Other commercial real estate 445 — 2,786 3,231 15,179 378,803 603 Total 755 — 3,608 4,363 20,266 470,983 603 Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 1,323 50 584 1,957 1,711 91,265 — Total 1,323 50 584 1,957 1,711 91,265 — Consumer loans: Home equity 78 41 939 1,058 113 56,275 212 Auto and other 661 825 544 2,030 153 152,178 — Total 739 866 1,483 3,088 266 208,453 212 Total $ 4,439 $ 1,430 $ 7,462 $ 13,331 $ 24,858 $ 1,139,354 $ 1,232 Acquired Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing December 31, 2014 Residential mortgages: 1-4 family $ 1,133 $ 638 $ 1,651 $ 3,422 $ 375 $ 268,734 $ 269 Construction — — — — — 1,018 — Total 1,133 638 1,651 3,422 375 269,752 269 Commercial real estate: — Construction — — 691 691 1,296 4,201 — Single and multi-family 277 — 572 849 5,477 53,168 — Other commercial real estate — 715 2,004 2,719 5,504 214,122 329 Total 277 715 3,267 4,259 12,277 271,491 329 Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 202 32 855 1,089 986 51,175 — Total 202 32 855 1,089 986 51,175 — Consumer loans: Home equity 176 95 1,049 1,320 171 65,951 466 Auto and other 1,170 944 1,363 3,477 — 103,351 194 Total 1,346 1,039 2,412 4,797 171 169,302 660 Total $ 2,958 $ 2,424 $ 8,185 $ 13,567 $ 13,809 $ 761,720 $ 1,258 The following is summary information pertaining to non-accrual loans at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans (1) Total Business Activities Loans Acquired Loans (2) Total Residential mortgages: 1-4 family $ 2,864 $ 1,370 $ 4,234 $ 2,526 $ 1,382 $ 3,908 Construction — — — — — — Total 2,864 1,370 4,234 2,526 1,382 3,908 Commercial real estate: Construction 199 — 199 720 — 720 Single and multi-family 75 158 233 458 141 599 Other commercial real estate 6,454 2,183 8,637 8,762 1,675 10,437 Total 6,728 2,341 9,069 9,940 1,816 11,756 Commercial and industrial loans: Other commercial and industrial loans 2,447 547 2,994 850 811 1,661 Total 2,447 547 2,994 850 811 1,661 Consumer loans: Home equity 1,429 728 2,157 1,157 583 1,740 Auto and other 291 543 834 305 1,169 1,474 Total 1,720 1,271 2,991 1,462 1,752 3,214 Total non-accrual loans $ 13,759 $ 5,529 $ 19,288 $ 14,778 $ 5,761 $ 20,539 _______________________________________ (1) At quarter end June 30, 2015 , acquired credit impaired loans accounted for $0.7 million of non-accrual loans that are not presented in the above table. (2) At December 31, 2014 , acquired credit impaired loans accounted for $1.2 million of non-accrual loans that are not presented in the above table. Loans evaluated for impairment as of June 30, 2015 and December 31, 2014 were as follows: Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total June 30, 2015 Loans receivable: Balance at end of period Individually evaluated for impairment $ 2,926 $ 19,100 $ 8,410 $ 605 $ 31,041 Collectively evaluated 1,265,777 1,417,154 821,515 609,773 4,114,219 Total $ 1,268,703 $ 1,436,254 $ 829,925 $ 610,378 $ 4,145,260 Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total December 31, 2014 Loans receivable: Balance at end of year Individually evaluated for impairment $ 3,238 $ 22,015 $ 743 $ 452 $ 26,448 Collectively evaluated for impairment 1,223,214 1,318,061 752,448 598,709 3,892,432 Total $ 1,226,452 $ 1,340,076 $ 753,191 $ 599,161 $ 3,918,880 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total June 30, 2015 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 743 $ 7,338 $ 33 $ 320 $ 8,434 Collectively evaluated 367,910 463,645 91,232 208,133 1,130,920 Total $ 368,653 $ 470,983 $ 91,265 $ 208,453 $ 1,139,354 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total December 31, 2014 Loans receivable: Balance at end of year Individually evaluated for impairment $ 695 $ 5,637 $ 39 $ 199 $ 6,570 Collectively evaluated for impairment 269,057 265,854 51,136 169,103 755,150 Total $ 269,752 $ 271,491 $ 51,175 $ 169,302 $ 761,720 The following is a summary of impaired loans at June 30, 2015 : Business Activities Loans June 30, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 2,043 $ 2,043 $ — Commercial real estate - construction 2,140 2,140 — Commercial real estate - single and multifamily — — — Other commercial real estate loans 15,958 15,958 — Other commercial and industrial loans 6,669 6,669 — Consumer - home equity 493 493 — Consumer - other 112 112 — With an allowance recorded: Residential mortgages - 1-4 family $ 796 $ 883 $ 87 Commercial real estate - construction — — — Commercial real estate - single and multifamily — — — Other commercial real estate loans 973 1,003 30 Other commercial and industrial loans 35 1,741 1,706 Consumer - home equity — — — Total Residential mortgages $ 2,839 $ 2,926 $ 87 Commercial real estate 19,071 19,101 30 Commercial and industrial loans 6,704 8,410 1,706 Consumer 605 605 — Total impaired loans $ 29,219 $ 31,042 $ 1,823 Acquired Loans June 30, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 442 $ 442 $ — Commercial real estate - construction 664 664 — Commercial real estate - single and multifamily — — — Other commercial real estate loans 1,915 1,915 — Other commercial and industrial loans 33 33 — Consumer - home equity 320 320 — With an allowance recorded: Residential mortgages - 1-4 family $ 262 $ 301 $ 39 Commercial real estate - construction — — — Commercial real estate - single and multifamily 2,807 2,847 40 Other commercial real estate loans 1,786 1,912 126 Consumer - home equity — — — Total Residential mortgages $ 704 $ 743 $ 39 Commercial real estate 7,172 7,338 166 Commercial and industrial loans 33 33 — Consumer 320 320 — Total impaired loans $ 8,229 $ 8,434 $ 205 The following is a summary of impaired loans at December 31, 2014 : Business Activities Loans December 31, 2014 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 2,528 $ 2,528 $ — Commercial real estate - construction 16,990 16,990 — Commercial real estate - single and multifamily — — — Other commercial real estate loans 102 102 — Other commercial and industrial loans 743 743 — Consumer - home equity 87 87 — Consumer - other — — — With an allowance recorded: Residential mortgages - 1-4 family $ 555 $ 710 $ 155 Commercial real estate - construction 3,511 4,431 920 Commercial real estate - single and multifamily 490 492 2 Other commercial real estate loans — — — Other commercial and industrial loans — — — Consumer - home equity 194 248 54 Consumer - other 105 117 12 Total Residential mortgages $ 3,083 $ 3,238 $ 155 Commercial real estate 21,093 22,015 922 Commercial and industrial loans 743 743 — Consumer 386 452 66 Total impaired loans $ 25,305 $ 26,448 $ 1,143 Acquired Loans December 31, 2014 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 189 $ 189 $ — Other commercial real estate loans 5,206 5,206 — Other commercial and industrial loans 39 39 — Consumer - home equity — — — With an allowance recorded: Residential mortgages - 1-4 family $ 458 $ 506 $ 48 Other commercial real estate loans 383 431 48 Consumer - home equity 124 199 75 Total Residential mortgages $ 647 $ 695 $ 48 Other commercial real estate loans 5,589 5,637 48 Other commercial and industrial loans 39 39 — Consumer - home equity 124 199 75 Total impaired loans $ 6,399 $ 6,570 $ 171 The following is a summary of the average recorded investment and interest income recognized on impaired loans as of June 30, 2015 and 2014 : Business Activities Loans Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (in thousands) Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income Recognized With no related allowance: Residential mortgages - 1-4 family $ 2,281 $ 41 $ 4,661 $ 99 Commercial real estate - construction 2,466 1 — — Commercial real estate - single and multifamily 120 — 17,308 312 Other commercial real estate loans 12,734 170 2,397 — Commercial and industrial loans 1,447 3 583 14 Consumer - home equity 360 1 300 3 Consumer - other 114 2 123 2 With an allowance recorded: Residential mortgages - 1-4 family $ 764 $ 17 $ 482 $ 3 Commercial real estate - construction — — — — Commercial real estate - single and multifamily — — 2,858 — Other commercial real estate loans 6,629 92 — — Commercial and industrial loans 329 2 2,055 44 Consumer - home equity — — — — Total Residential mortgages $ 3,045 $ 58 $ 5,143 $ 102 Commercial real estate 21,949 263 22,563 312 Commercial and industrial loans 1,776 5 2,638 58 Consumer loans 474 3 423 5 Total impaired loans $ 27,244 $ 329 $ 30,767 $ 477 Acquired Loans Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (in thousands) Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income Recognized With no related allowance: Residential mortgages - 1-4 family $ 569 $ 2 $ 930 $ 5 Commercial real estate - construction 664 60 — — Commercial real estate - single and multifamily 254 — — — Other commercial real estate loans 1,977 3 4,392 51 Other commercial and industrial loans 51 3 537 8 Consumer - home equity 355 6 51 — Consumer - other — — — — With an allowance recorded: Residential mortgages - 1-4 family $ 310 $ 5 $ 363 $ 1 Commercial real estate - single and multifamily 2,872 63 — — Other commercial real estate loans 845 59 1,489 55 Other commercial and industrial loans — — 68 3 Total Residential mortgages $ 879 $ 7 $ 1,293 $ 6 Other commercial real estate loans 6,612 185 5,881 106 Commercial and industrial loans 51 3 605 11 Consumer loans 355 6 51 — Total impaired loans $ 7,897 $ 201 $ 7,830 $ 123 Troubled Debt Restructuring Loans The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months . TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan. The following tables include the recorded investment and number of modifications identified during the three and six months ended June 30, 2015 and for the three and six months ended June 30, 2014, respectively. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. The modifications for the three and six months ending June 30, 2015 were attributable to interest rate concessions, maturity date extensions and modified payment terms. The modifications for the three and six months ending June 30, 2014 were attributable to concessions granted as ordered by bankruptcy court, interest rate concessions and maturity date extensions. Three Months Ended June 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 1,877 $ 1,877 Commercial - Other 1 1,694 1,694 Commercial and industrial - Other 4 8,159 8,159 Total 6 $ 11,730 $ 11,730 Six Months Ended June 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 2,000 $ 2,000 Commercial - Other 2 1,694 1,694 Commercial and industrial - Other 5 8,192 8,192 Total 8 $ 11,886 $ 11,886 Three Months Ended June 30, 2014 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Residential - 1-4 Family 2 $ 247 $ 247 Commercial - single and multifamily 1 623 623 Commercial - other 6 4,804 4,804 Total 9 $ 5,674 $ 5,674 Six Months Ended June 30, 2014 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Residential - 1-4 Family 3 $ 369 $ 366 Commercial - single and multifamily 1 623 623 Commercial - other 6 4,804 4,804 Total 10 $ 5,796 $ 5,793 The following table discloses the recorded investment and number of modifications for TDRs within the last three and six months where a concession has been made, that then defaulted in the respective reporting period. Modifications that Subsequently Defaulted Three Months Ended June 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 668 Modifications that Subsequently Defaulted Six Months Ended June 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 649 Modifications that Subsequently Defaulted Three Months Ended June 30, 2014 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 2 $ 158 Modifications that Subsequently Defaulted Six Months Ended June 30, 2014 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 2 $ 158 The following table presents the Company’s TDR activity for the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of the period $ 17,204 $ 10,112 Principal payments (607 ) (88 ) TDR status change (1) — (589 ) Other reductions/increases (2) (611 ) 4 Newly identified TDRs 9,730 5,674 Balance at end of the period $ 25,716 $ 15,113 Six Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of the period $ 16,714 $ 10,822 Principal payments (1,091 ) (960 ) TDR status change (1) — (641 ) Other reductions/increases (2) (1,793 ) 99 Newly identified TDRs 11,886 5,793 Balance at end of the period $ 25,716 $ 15,113 _______________________________________ (1) TDR status change classification represents TDR loans with a specified interest rate equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan was on current payment status and not impaired based on the terms specified by the restructuring agreement. (2) Other reductions classification consists of transfer to other real estate owned and charge-offs and advances to loans. The evaluation of certain loans individually for specific impairment includes loans that were previously classified as TDRs or continue to be classified as TDRs. As of June 30, 2015 , the Company maintained foreclosed residential real estate property with a fair value of $119 thousand . Additionally, residential mortgage loans collateralized by real estate property that are in the process of foreclosure totaled $5.3 million . As of December 31, 2014 , foreclosed residential real estate property totaled $1.3 million . |
LOAN LOSS ALLOWANCE
LOAN LOSS ALLOWANCE | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
LOAN LOSS ALLOWANCE | LOAN LOSS ALLOWANCE Activity in the allowance for loan losses for the six months ended June 30, 2015 and 2014 was as follows: Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2015 Balance at beginning of period $ 6,836 $ 14,690 $ 5,206 $ 5,928 $ 135 $ 32,795 Charged-off loans 446 4,422 372 462 — 5,702 Recoveries on charged-off loans 113 146 154 127 — 540 Provision/(releases) for loan losses (32 ) 2,553 4,178 (679 ) (427 ) 5,593 Balance at end of period $ 6,471 $ 12,967 $ 9,166 $ 4,914 $ (292 ) $ 33,226 Individually evaluated for impairment 87 30 1,706 — — 1,823 Collectively evaluated 6,384 12,937 7,460 4,914 (292 ) 31,403 Total $ 6,471 $ 12,967 $ 9,166 $ 4,914 $ (292 ) $ 33,226 Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2014 Balance at beginning of period $ 6,937 $ 13,705 $ 5,173 $ 3,644 $ 68 $ 29,527 Charged-off loans 1,159 1,645 1,426 571 — 4,801 Recoveries on charged-off loans 64 6 22 177 — 269 Provision/(releases) for loan losses (299 ) 2,389 1,396 1,597 143 5,226 Balance at end of period $ 5,543 $ 14,455 $ 5,165 $ 4,847 $ 211 $ 30,221 Individually evaluated for impairment 57 712 475 — — 1,244 Collectively evaluated 5,486 13,743 4,690 4,847 211 28,977 Total $ 5,543 $ 14,455 $ 5,165 $ 4,847 $ 211 $ 30,221 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2015 Balance at beginning of period $ 615 $ 790 $ 1,093 $ 369 $ — $ 2,867 Charged-off loans 375 587 336 608 — 1,906 Recoveries on charged-off loans 41 395 56 56 — 548 Provision for loan losses 527 1,188 160 587 — 2,462 Balance at end of period $ 808 $ 1,786 $ 973 $ 404 $ — $ 3,971 Individually evaluated for impairment 39 166 — — — 205 Collectively evaluated 769 1,620 973 404 — 3,766 Total $ 808 $ 1,786 $ 973 $ 404 $ — $ 3,971 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2014 Balance at beginning of period $ 625 $ 2,339 $ 597 $ 235 $ — $ 3,796 Charged-off loans 723 495 176 638 — 2,032 Recoveries on charged-off loans 161 1 24 23 — 209 Provision for loan losses 599 246 624 690 — 2,159 Balance at end of period $ 662 $ 2,091 $ 1,069 $ 310 $ — $ 4,132 Individually evaluated for impairment 60 306 20 — — 386 Collectively evaluated 602 1,785 1,049 310 — 3,746 Total $ 662 $ 2,091 $ 1,069 $ 310 $ — $ 4,132 Credit Quality Information Business Activities Loans Credit Quality Analysis The Company monitors the credit quality of its portfolio by using internal risk ratings that are based on regulatory guidance. Loans that are given a Pass rating are not considered a problem credit. Loans that are classified as Special Mention loans are considered to have potential credit problems and are evaluated closely by management. Substandard and non-accruing loans are loans for which a definitive weakness has been identified and which may make full collection of contractual cash flows questionable. Doubtful loans are those with identified weaknesses that make full collection of contractual cash flows, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company assigns an internal risk rating at origination and reviews the rating annually, semiannually or quarterly depending on the risk rating. The rating is also reassessed at any point in time when management becomes aware of information that may affect the borrower’s ability to fulfill their obligations. The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention and Substandard. Loans that are current within 59 days are rated Pass. Residential mortgages that are 60 - 89 days delinquent are rated Special Mention. Loans delinquent for 90 days or greater are rated Substandard and generally placed on non-accrual status. Home equity loans are risk rated based on the same rating system as the Company’s residential mortgages. Ratings for other consumer loans, including auto loans, are based on a two rating system. Loans that are current within 119 days are rated Performing while loans delinquent for 120 days or more are rated Non-performing. Other consumer loans are placed on non-accrual at such time as they become Non-performing. Acquired Loans Credit Quality Analysis Upon acquiring a loan portfolio, our internal loan review function assigns risk ratings to the acquired loans, utilizing the same methodology as it does with business activities loans. This may differ from the risk rating policy of the predecessor bank. Loans which are rated Substandard or worse according to the rating process outlined below are deemed to be credit impaired loans accounted for under ASC 310-30, regardless of whether they are classified as performing or non-performing. The Bank utilizes an eleven grade internal loan rating system for each of its acquired commercial real estate, construction and commercial loans as outlined in the Credit Quality Information section of this Note. The Company risk rates its residential mortgages, including 1-4 family and residential construction loans, based on a three rating system: Pass, Special Mention and Substandard. Residential mortgages that are current within 59 days are rated Pass. Residential mortgages that are 60 — 89 days delinquent are rated Special Mention. Residential mortgages delinquent for 90 days or greater are rated Substandard. Home equity loans are risk rated based on the same rating system as the Company’s residential mortgages. Other consumer loans are rated based on a two rating system. Other consumer loans that are current within 119 days are rated Performing while loans delinquent for 120 days or more are rated Non-performing. Non-performing other consumer loans are deemed to be credit impaired loans accounted for under ASC 310-30. The Company subjects loans that do not meet the ASC 310-30 criteria to ASC 450-20 by collectively evaluating these loans for an allowance for loan loss. The Company applies a methodology similar to the methodology prescribed for business activities loans, which includes the application of environmental factors to each category of loans. The methodology to collectively evaluate the acquired loans outside the scope of ASC 310-30 includes the application of a number of environmental factors that reflect management’s best estimate of the level of incremental credit losses that might be recognized given current conditions. This is reviewed as part of the allowance for loan loss adequacy analysis. As the loan portfolio matures and environmental factors change, the loan portfolio will be reassessed each quarter to determine an appropriate reserve allowance. Additionally, the Company considers the need for an additional reserve for acquired loans accounted for outside of the scope of ASC 310-30 under ASC 310-20. At acquisition date, the Bank determined a fair value mark with credit and interest rate components. Under the Company’s model, the impairment evaluation process involves comparing the carrying value of acquired loans, including the entire unamortized premium or discount, to the recorded reserve allowance. If necessary, the Company books an additional reserve to account for shortfalls identified through this calculation. Fair value marks are not bifurcated when evaluating for impairment. A decrease in the expected cash flows in subsequent periods requires the establishment of an allowance for loan losses at that time for ASC 310-30 loans. At June 30, 2015, the allowance for loan losses related to acquired loans was $4.0 million using the above mentioned criteria. The Company presented several tables within this footnote separately for business activity loans and acquired loans in order to distinguish the credit performance of the acquired loans from the business activity loans. The following table presents the Company’s loans by risk rating at June 30, 2015 and December 31, 2014: Business Activities Loans Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 1,233,607 $ 1,195,209 $ 30,247 $ 26,634 $ 1,263,854 $ 1,221,843 Special mention 1,073 146 — 410 1,073 556 Substandard 3,776 4,053 — — 3,776 4,053 Total $ 1,238,456 $ 1,199,408 $ 30,247 $ 27,044 $ 1,268,703 $ 1,226,452 Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 178,785 $ 166,295 $ 146,780 $ 137,533 $ 1,048,171 $ 959,836 $ 1,373,736 $ 1,263,664 Special mention — — 769 — 5,432 6,933 6,201 6,933 Substandard 2,372 2,894 2,167 2,517 51,705 63,995 56,244 69,406 Doubtful — — — — 73 73 73 73 Total $ 181,157 $ 169,189 $ 149,716 $ 140,050 $ 1,105,381 $ 1,030,837 $ 1,436,254 $ 1,340,076 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 339,331 $ 341,246 $ 456,713 $ 404,846 $ 796,044 $ 746,092 Special mention — — 20,047 560 20,047 560 Substandard — — 13,834 6,539 13,834 6,539 Total $ 339,331 $ 341,246 $ 490,594 $ 411,945 $ 829,925 $ 753,191 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Performing $ 293,449 $ 251,524 $ 315,209 $ 346,175 $ 608,658 $ 597,699 Nonperforming 1,429 1,157 291 305 1,720 1,462 Total $ 294,878 $ 252,681 $ 315,500 $ 346,480 $ 610,378 $ 599,161 Acquired Loans Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 362,389 $ 266,445 $ 2,607 $ 1,018 $ 364,996 $ 267,463 Special mention 631 638 — — 631 638 Substandard 3,026 1,651 — — 3,026 1,651 Total $ 366,046 $ 268,734 $ 2,607 $ 1,018 $ 368,653 $ 269,752 Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 40,940 $ 2,904 $ 41,080 $ 44,497 $ 356,270 $ 195,681 $ 438,290 $ 243,082 Special mention 2,020 — 625 533 9,076 4,868 11,721 5,401 Substandard 1,270 1,297 6,245 8,138 13,457 13,573 20,972 23,008 Total $ 44,230 $ 4,201 $ 47,950 $ 53,168 $ 378,803 $ 214,122 $ 470,983 $ 271,491 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ — $ — $ 86,751 $ 45,757 $ 86,751 $ 45,757 Special mention — — 1,361 1,723 1,361 1,723 Substandard — — 3,113 3,695 3,113 3,695 Doubtful — — 40 — 40 — Total $ — $ — $ 91,265 $ 51,175 $ 91,265 $ 51,175 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Performing $ 55,547 $ 65,368 $ 151,634 $ 102,182 $ 207,181 $ 167,550 Nonperforming 728 583 544 1,169 1,272 1,752 Total $ 56,275 $ 65,951 $ 152,178 $ 103,351 $ 208,453 $ 169,302 The following table summarizes information about total loans rated Special Mention or lower as of June 30, 2015 and December 31, 2014. The table below includes consumer loans that are special mention and substandard accruing that are classified in the above table as performing based on payment activity. June 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Non-Accrual $ 13,759 $ 6,230 $ 19,989 $ 14,778 $ 6,927 $ 21,705 Substandard Accruing 63,085 22,430 85,515 66,995 23,839 90,834 Total Classified 76,844 28,660 105,504 81,773 30,766 112,539 Special Mention 27,441 14,577 42,018 9,113 8,800 17,913 Total Criticized $ 104,285 $ 43,237 $ 147,522 $ 90,886 $ 39,566 $ 130,452 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2015 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of time deposits is as follows: (In thousands) June 30, December 31, Time less than $100,000 $ 551,610 $ 515,570 Time $100,000 or more 1,200,314 940,176 Total time deposits $ 1,751,924 $ 1,455,746 Included in deposits are brokered deposits of $609.9 million and $430.8 million at June 30, 2015 and December 31, 2014 , respectively. Included in the brokered deposit balance stated above are reciprocal deposits of $8.7 million and $9.4 million at June 30, 2015 and December 31, 2014 , respectively. |
BORROWED FUNDS
BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at June 30, 2015 and December 31, 2014 are summarized, as follows: June 30, 2015 December 31, 2014 Weighted Weighted Average Average (dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLBB $ 1,058,001 0.24 % $ 890,900 0.24 % Other Borrowings — — 10,000 1.80 Total short-term borrowings: 1,058,001 0.24 900,900 0.23 Long-term borrowings: Advances from the FHLBB 118,483 1.92 61,676 0.93 Subordinated borrowings 74,318 7.00 74,283 7.00 Junior subordinated borrowings 15,464 2.13 15,464 2.08 Total long-term borrowings: 208,265 3.75 151,423 4.03 Total $ 1,266,266 0.82 % $ 1,052,323 0.79 % Short term debt includes Federal Home Loan Bank of Boston (“FHLBB”) advances with an original maturity of less than one year and a short-term line-of-credit drawdown through a correspondent bank. The Bank also maintains a $3.0 million secured line of credit with the FHLBB that bears a daily adjustable rate calculated by the FHLBB. There was no outstanding balance on the FHLBB line of credit for the periods ended June 30, 2015 and December 31, 2014 . The Bank is approved to borrow on a short-term basis from the Federal Reserve Bank of Boston as a non-member bank. The Bank has pledged certain loans and securities to the Federal Reserve Bank to support this arrangement. No borrowings with the Federal Reserve Bank of Boston took place for the periods ended June 30, 2015 and December 31, 2014 . Long-term FHLBB advances consist of advances with an original maturity of more than one year. The advances outstanding at June 30, 2015 include callable advances totaling $11.0 million , and amortizing advances totaling $5.1 million . The advances outstanding at December 31, 2014 include callable advances totaling $5.0 million , and amortizing advances totaling $5.1 million . All FHLBB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities. A summary of maturities of FHLBB advances as of June 30, 2015 and December 31, 2014 is as follows: June 30, 2015 December 31, 2014 Weighted Weighted Average Average (in thousands, except rates) Principal Rate Principal Rate Fixed rate advances maturing: 2015 $ 1,067,031 0.25 % $ 940,900 0.24 % 2016 52,792 1.37 1,519 0.88 2017 33,719 2.46 5,000 4.33 2018 1,044 2.62 — — 2019 and beyond 21,898 2.72 5,157 3.85 Total FHLBB advances $ 1,176,484 0.41 % $ 952,576 0.28 % The Company does not have variable-rate FHLB advances for the periods ended June 30, 2015 and December 31, 2014 . In September 2012, the Company issued fifteen year subordinated notes in the amount of $75.0 million at a discount of 1.15% . The interest rate is fixed at 6.875% for the first ten years. After ten years , the notes become callable and convert to an interest rate of three-month LIBOR rate plus 511.3% basis points. The Company holds 100% of the common stock of Berkshire Hills Capital Trust I (“Trust I”) which is included in other assets with a cost of $0.5 million . The sole asset of Trust I is $15.5 million of the Company’s junior subordinated debentures due in 2035. These debentures bear interest at a variable rate equal to LIBOR plus 1.85% and had a rate of 2.13% and 2.08% at June 30, 2015 and December 31, 2014 , respectively. The Company has the right to defer payments of interest for up to five years on the debentures at any time, or from time to time, with certain limitations, including a restriction on the payment of dividends to stockholders while such interest payments on the debentures have been deferred. The Company has not exercised this right to defer payments. The Company has the right to redeem the debentures at par value. Trust I is considered a variable interest entity for which the Company is not the primary beneficiary. Accordingly, Trust I is not consolidated into the Company’s financial statements. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY The actual and required capital ratios were as follows: June 30, Regulatory December 31, Regulatory Company (consolidated) Total capital to risk weighted assets 11.7 % 10.0 % 11.4 % 10.0 % Common Equity Tier 1 Capital to risk weighted assets 9.5 6.5 N/A N/A Tier 1 capital to risk weighted assets 9.6 8.0 9.0 6.0 Tier 1 capital to average assets 7.4 5.0 7.0 5.0 Bank Total capital to risk weighted assets 11.0 % 10.0 % 10.8 % 10.0 % Common Equity Tier 1 Capital to risk weighted assets 9.7 6.5 N/A N/A Tier 1 capital to risk weighted assets 9.7 8.0 9.3 6.0 Tier 1 capital to average assets 7.5 5.0 7.2 5.0 At each date shown, the Company and the Bank met the conditions to be classified as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above. Effective January 1, 2015, the Company and the Bank became subject to the Basel III rule that requires the Company and the Bank to assess their Common Equity Tier 1 Capital to risk weighted assets and the Company and the Bank each exceed the minimum to be well capitalized. Accumulated other comprehensive income (loss) Components of accumulated other comprehensive income is as follows: (In thousands) June 30, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding gain on AFS securities $ 9,259 $ 15,993 Net (loss) on effective cash flow hedging derivatives (6,416 ) (3,299 ) Net unrealized holding (loss) on pension plans (3,757 ) (2,291 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized holding gain on AFS securities (3,582 ) (6,077 ) Net (loss) on effective cash flow hedging derivatives 2,586 1,330 Net unrealized holding (loss) on pension plans 1,514 923 Accumulated other comprehensive income $ (396 ) $ 6,579 The following table presents the components of other comprehensive income for the three and six months ended June 30, 2015 and 2014 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized losses arising during the period $ (13,687 ) $ 5,243 $ (8,444 ) Less: reclassification adjustment for (gains) realized in net income (2,384 ) 857 (1,527 ) Net unrealized holding loss on AFS securities (16,071 ) 6,100 (9,971 ) Net loss on cash flow hedging derivatives: Net unrealized gain arising during the period 784 (316 ) 468 Less: reclassification adjustment for losses realized in net income — — — Net gain on cash flow hedging derivatives 784 (316 ) 468 Net unrealized holding loss on pension plans Net unrealized gain arising during the period — — — Less: reclassification adjustment for losses realized in net income 65 (26 ) 39 Net unrealized holding gain on pension plans 65 (26 ) 39 Other comprehensive loss $ (15,222 ) $ 5,758 $ (9,464 ) Three Months Ended June 30, 2014 Net unrealized holding loss on AFS securities: Net unrealized loss arising during the period $ 11,316 $ (4,344 ) $ 6,972 Less: reclassification adjustment for (gains) realized in net income (203 ) 83 (120 ) Net unrealized holding gain on AFS securities 11,113 (4,261 ) 6,852 Net loss on cash flow hedging derivatives: Net unrealized loss arising during the period (3,267 ) 1,322 (1,945 ) Less: reclassification adjustment for (gains) realized in net income — — — Net loss on cash flow hedging derivatives (3,267 ) 1,322 (1,945 ) Net gain on terminated swap: Net unrealized loss arising during the period — — — Less: reclassification adjustment for losses realized in net income — — — Net gain on terminated swap — — — Other comprehensive income $ 7,846 $ (2,939 ) $ 4,907 (In thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized losses arising during the period $ (4,316 ) $ 1,625 $ (2,691 ) Less: reclassification adjustment for (gains) realized in net income (2,418 ) 870 (1,548 ) Net unrealized holding loss on AFS securities (6,734 ) 2,495 (4,239 ) Net loss on cash flow hedging derivatives: Net unrealized loss arising during the period (3,117 ) 1,256 (1,861 ) Less: reclassification adjustment for losses realized in net income — — — Net loss on cash flow hedging derivatives (3,117 ) 1,256 (1,861 ) Net unrealized holding loss on pension plans Net unrealized loss arising during the period (1,596 ) 643 (953 ) Less: reclassification adjustment for losses realized in net income 130 (52 ) 78 Net unrealized holding loss on pension plans (1,466 ) 591 (875 ) Other comprehensive income $ (11,317 ) $ 4,342 $ (6,975 ) Six Months Ended June 30, 2014 Net unrealized holding loss on AFS securities: Net unrealized loss arising during the period $ 17,370 $ (6,576 ) $ 10,794 Less: reclassification adjustment for (gains) realized in net income (237 ) 95 (142 ) Net unrealized holding gain on AFS securities 17,133 (6,481 ) 10,652 Net loss on cash flow hedging derivatives: Net unrealized loss arising during the period (4,127 ) 1,691 (2,436 ) Less: reclassification adjustment for (gains) realized in net income 5,393 (2,201 ) 3,192 Net gain on cash flow hedging derivatives 1,266 (510 ) 756 Net gain on terminated swap: Net unrealized loss arising during the period — — — Less: reclassification adjustment for losses realized in net income 3,237 (1,312 ) 1,925 Net gain on terminated swap 3,237 (1,312 ) 1,925 Other comprehensive income $ 21,636 $ (8,303 ) $ 13,333 The following table presents the changes in each component of accumulated other comprehensive income (loss), for the three and six months ended June 30, 2015 and 2014 : Net unrealized holding gain on AFS Net loss on effective cash flow hedging Net loss on terminated Net unrealized holding loss on (in thousands) Securities derivatives swap pension plans Total Three Months Ended June 30, 2015 Balance at Beginning of Period $ 15,648 $ (4,298 ) $ — $ (2,282 ) $ 9,068 Other Comprehensive (Loss) Gain Before reclassifications (8,444 ) 468 — — (7,976 ) Amounts Reclassified from Accumulated other comprehensive income (1,527 ) — — 39 (1,488 ) Total Other Comprehensive (Loss) Income (9,971 ) 468 — 39 (9,464 ) Balance at End of Period $ 5,677 $ (3,830 ) $ — $ (2,243 ) $ (396 ) Three Months Ended June 30, 2014 Balance at Beginning of Period $ (1,976 ) $ 1,335 $ — $ 10 $ (631 ) Other Comprehensive Gain (Loss) Before reclassifications 6,972 (1,945 ) — — 5,027 Amounts Reclassified from Accumulated other comprehensive income (120 ) — — — (120 ) Total Other Comprehensive Income (Loss) 6,852 (1,945 ) — — 4,907 Balance at End of Period $ 4,876 $ (610 ) $ — $ 10 $ 4,276 Six Months Ended June 30, 2015 Balance at Beginning of Period $ 9,916 $ (1,969 ) $ — $ (1,368 ) $ 6,579 Other Comprehensive (Loss) Before reclassifications (2,691 ) (1,861 ) — (953 ) (5,505 ) Amounts Reclassified from Accumulated other comprehensive income (1,548 ) — — 78 (1,470 ) Total Other Comprehensive (Loss) (4,239 ) (1,861 ) — (875 ) (6,975 ) Balance at End of Period $ 5,677 $ (3,830 ) $ — $ (2,243 ) $ (396 ) Six Months Ended June 30, 2014 Balance at Beginning of Period $ (5,776 ) $ (1,366 ) $ (1,925 ) $ 10 $ (9,057 ) Other Comprehensive Gain (Loss) Before reclassifications 10,794 (2,436 ) — — 8,358 Amounts Reclassified from Accumulated other comprehensive income (142 ) 3,192 1,925 — 4,975 Total Other Comprehensive Income 10,652 756 1,925 — 13,333 Balance at End of Period $ 4,876 $ (610 ) $ — $ 10 $ 4,276 The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 : Affected Line Item in the Three Months Ended June 30, Statement where Net Income (in thousands) 2015 2014 is Presented Realized (gains) on AFS securities: $ (2,384 ) $ (203 ) Non-interest income 857 83 Tax expense (1,527 ) (120 ) Net of tax Realized losses on cash flow hedging derivatives: — — Non-interest income — — Tax expense — — Net of tax Amortization of realized gains on terminated swap: — — Non-interest income — — Tax expense — — Net of tax Realized loss on pension plans: 65 — Non-interest income (26 ) — Tax expense 39 — Net of tax Total reclassifications for the period $ (1,488 ) $ (120 ) Net of tax Affected Line Item in the Six Months Ended June 30, Statement where Net Income (in thousands) 2015 2014 is Presented Realized (gains) on AFS securities: $ (2,418 ) $ (237 ) Non-interest income 870 95 Tax expense (1,548 ) (142 ) Net of tax Realized losses on cash flow hedging derivatives: — 5,393 Non-interest income — (2,201 ) Tax expense — 3,192 Net of tax Amortization of realized gains on terminated swap: — 3,237 Non-interest income — (1,312 ) Tax expense — 1,925 Net of tax Realized loss on pension plans: 130 — Non-interest income (52 ) — Tax expense 78 — Net of tax Total reclassifications for the period $ (1,470 ) $ 4,975 Net of tax |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2015 2014 2015 2014 Net income $ 10,044 $ 11,464 $ 18,803 $ 10,358 Average number of common shares issued 29,975 26,525 28,260 26,525 Less: average number of treasury shares 1,193 1,417 1,244 1,421 Less: average number of unvested stock award shares 481 393 459 397 Average number of basic common shares outstanding 28,301 24,715 26,557 24,707 Plus: dilutive effect of unvested stock award shares 94 44 91 55 Plus: dilutive effect of stock options outstanding 66 50 65 59 Average number of diluted common shares outstanding 28,461 24,809 26,713 24,821 Earnings per share: Basic $ 0.35 $ 0.46 $ 0.71 $ 0.42 Diluted $ 0.35 $ 0.46 $ 0.70 $ 0.42 For the six months ended June 30, 2015 , 365 thousand shares of restricted stock and 207 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. For the six months ended June 30, 2014 , 342 thousand shares of restricted stock and 305 thousand options were anti-dilutive and therefore excluded from the earnings per share calculations. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS A combined summary of activity in the Company’s stock award and stock option plans for the six months ended June 30, 2015 is presented in the following table: Non-vested Stock Awards Outstanding Stock Options Outstanding Weighted- Weighted- Number of Average Grant Date Number of Average Exercise (Shares in thousands) Shares Fair Value Shares Price December 31, 2014 424 $ 24.33 282 $ 20.42 Granted 174 26.33 — — Stock options exercised — — (11 ) 10.52 Stock awards vested (86 ) 24.28 — — Forfeited (11 ) 23.64 — — Expired — — — — June 30, 2015 501 $ 24.92 271 $ 21.12 Exercisable options, June 30, 2015 271 $ 21.12 During the six months ended June 30, 2015 and 2014 , proceeds from stock option exercises totaled $116 thousand and totaled $848 thousand , respectively. During the six months ended June 30, 2015 , there were 86 thousand shares issued in connection with vested stock awards. During the six months ended June 30, 2014 , there were 66 thousand shares issued in connection with vested stock awards. All of these shares were issued from available treasury stock. Stock-based compensation expense totaled $2.3 million and $1.8 million during the six months ended June 30, 2015 and 2014 , respectively. Stock-based compensation expense is recognized over the requisite service period for all awards. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS The Company has two reportable operating segments, Banking and Insurance, which are delineated by the consolidated subsidiaries of Berkshire Hills Bancorp, Inc. Banking includes the activities of the Bank and its subsidiaries, which provide retail and commercial banking, along with wealth management and investment services. Insurance includes the activities of Berkshire Insurance Group, Inc. (“BIG”), which provides retail and commercial insurance services. The only other consolidated financial activity of the Company is the Parent, which consists of the transactions of Berkshire Hills Bancorp, Inc. Management fees for corporate services provided by the Bank to BIG and the Parent are eliminated. The accounting policies of each reportable segment are the same as those of the Company. The Insurance segment and the Parent reimburse the Bank for administrative services provided to them. Income tax expense for the individual segments is calculated based on the activity of the segments, and the Parent records the tax expense or benefit necessary to reconcile to the consolidated total. The Parent does not allocate capital costs. Average assets include securities available-for-sale based on amortized cost. A summary of the Company’s operating segments was as follows: (In thousands) Banking Insurance Parent Eliminations Total Consolidated Three Months Ended June 30, 2015 Net interest income $ 53,480 $ — $ 5,157 $ (6,000 ) $ 52,637 Provision for loan losses 4,204 — — — 4,204 Non-interest income 14,096 2,486 7,445 (7,247 ) 16,780 Non-interest expense 47,531 1,901 4,591 2 54,025 Income before income taxes 15,841 585 8,011 (13,249 ) 11,188 Income tax expense (benefit) 2,951 227 (2,033 ) (1 ) 1,144 Net income $ 12,890 $ 358 $ 10,044 $ (13,248 ) $ 10,044 Average assets (in millions) $ 7,191 $ 29 $ 884 $ (909 ) $ 7,195 Three Months Ended June 30, 2014 Net interest income (expense) $ 45,244 $ — $ (915 ) $ — $ 44,329 Provision for loan losses 3,989 — — — 3,989 Non-interest income 12,046 2,460 12,272 (12,272 ) 14,506 Non-interest expense 36,970 1,887 406 — 39,263 Income before income taxes 16,331 573 10,951 (12,272 ) 15,583 Income tax expense (benefit) 4,409 223 (513 ) — 4,119 Net income $ 11,922 $ 350 $ 11,464 $ (12,272 ) $ 11,464 Average assets (in millions) $ 6,111 $ 27 $ 744 $ (736 ) $ 6,146 Six Months Ended June 30, 2015 Net interest income $ 99,819 $ — $ 10,311 $ (12,000 ) $ 98,130 Provision for loan losses 8,055 — — — 8,055 Non-interest income 23,509 5,453 11,229 (10,849 ) 29,342 Non-interest expense 90,025 3,841 5,305 2 99,173 Income before income taxes 25,248 1,612 16,235 (22,851 ) 20,244 Income tax expense (benefit) 3,384 626 (2,568 ) (1 ) 1,441 Net income $ 21,864 $ 986 $ 18,803 $ (22,850 ) $ 18,803 Average assets (in millions) $ 6,837 $ 29 $ 821 $ (841 ) $ 6,846 Six Months Ended June 30, 2014 Net interest income (expense) $ 88,954 $ — $ (1,859 ) $ — $ 87,095 Provision for loan losses 7,385 — — — 7,385 Non-interest income 13,420 5,509 12,020 (12,020 ) 18,929 Non-interest expense 79,543 4,209 871 — 84,623 Income before income taxes 15,446 1,300 9,290 (12,020 ) 14,016 Income tax expense (benefit) 4,217 509 (1,068 ) — 3,658 Net income $ 11,229 $ 791 $ 10,358 $ (12,020 ) $ 10,358 Average assets (in millions) $ 5,971 $ 26 $ 733 $ (732 ) $ 5,998 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As of June 30, 2015 , the Company held derivatives with a total notional amount of $1.2 billion . That amount included $300.0 million in forward starting interest rate swap derivatives that were designated as cash flow hedges for accounting purposes. The Company also had economic hedges and non-hedging derivatives totaling $824.0 million and $55.7 million , respectively, which are not designated as hedges for accounting purposes and are therefore recorded at fair value. Economic hedges included interest rate swaps totaling $692.6 million , risk participation agreements with dealer banks of $48.8 million , and $82.6 million in forward commitment contracts. As part of the Company’s risk management strategy, the Company enters into interest rate swap agreements to mitigate the interest rate risk inherent in certain of the Company’s assets and liabilities. Interest rate swap agreements involve the risk of dealing with both Bank customers and institutional derivative counterparties and their ability to meet contractual terms. The agreements are entered into with counterparties that meet established credit standards and contain master netting and collateral provisions protecting the at-risk party. The derivatives program is overseen by the Risk Management/Capital Committee of the Company’s Board of Directors. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant at June 30, 2015 . The Company pledged collateral to derivative counterparties in the form of cash totaling $6.0 million and securities with an amortized cost of $24.8 million and a fair value of $24.8 million as of June 30, 2015 . The Company does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back economic hedges. However certain language is written into the International Swaps Dealers Association, Inc. (“ISDA”) and loan documents where, in default situations, the Bank is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. The Company may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. Information about derivative assets and liabilities at June 30, 2015 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Forward-starting interest rate swaps on FHLBB borrowings $ 300,000 3.8 — % 2.29 % $ (6,416 ) Total cash flow hedges 300,000 (6,416 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 12,272 14.4 0.52 % 5.09 % (2,326 ) Interest rate swaps on loans with commercial loan customers 340,147 6.6 1.74 % 4.54 % (11,471 ) Reverse interest rate swaps on loans with commercial loan customers 340,147 6.6 4.54 % 1.74 % 11,567 Risk Participation Agreements with Dealer Banks 48,801 15.7 (69 ) Forward sale commitments 82,640 0.2 475 Total economic hedges 824,007 (1,824 ) Non-hedging derivatives: Interest rate lock commitments 55,749 0.2 382 Total non-hedging derivatives 55,749 382 Total $ 1,179,756 $ (7,858 ) Information about derivative assets and liabilities at December 31, 2014 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Forward-starting interest rate swaps on FHLBB borrowings $ 300,000 4.3 — % 2.29 % $ (3,299 ) Total cash flow hedges 300,000 (3,299 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 12,554 14.9 0.52 % 5.09 % (2,578 ) Interest rate swaps on loans with commercial loan customers 297,158 6.0 2.23 % 4.54 % (12,183 ) Reverse interest rate swaps on loans with commercial loan customers 297,158 6.0 4.54 % 2.23 % 12,221 Risk participation agreements with dealer banks 45,842 16.6 (91 ) Forward sale commitments 42,366 0.2 (510 ) Total economic hedges 695,078 (3,141 ) Non-hedging derivatives: Interest rate lock commitments 39,589 0.2 625 Total non-hedging derivatives 39,589 625 Total $ 1,034,667 $ (5,815 ) Cash flow hedges The effective portion of unrealized changes in the fair value of derivatives accounted for as cash flow hedges is reported in other comprehensive income and subsequently reclassified to earnings in the same period or periods during which the hedged transaction is forecasted to affect earnings. Each quarter, the Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The ineffective portion of changes in the fair value of the derivatives is recognized directly in earnings. The Company has entered into six forward-starting interest rate swap contracts with a combined notional value of $300.0 million as of June 30, 2015 . The six forward starting swaps will become effective in 2016. All have durations of three years. This hedge strategy converts the one month rolling FHLBB borrowings based on the FHLBB’s one month fixed interest rate to fixed interest rates, thereby protecting the Company from floating interest rate variability. Amounts included in the Consolidated Statements of Income and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Interest rate swaps on FHLBB borrowings: Unrealized gain (loss) recognized in accumulated other comprehensive loss $ 784 $ (3,343 ) $ (3,117 ) $ (4,127 ) Reclassification of unrealized loss from accumulated other comprehensive income to other non-interest income for termination of swaps — — — 8,630 Reclassification of unrealized deferred tax benefit from accumulated other comprehensive income to tax expense for terminated swaps — — — (3,611 ) Net tax benefit (expense) on items recognized in accumulated other comprehensive income (316 ) 1,352 1,256 1,666 Interest rate swaps on junior subordinated debentures: Unrealized loss recognized in accumulated other comprehensive income — — — (1 ) Reclassification of unrealized loss from accumulated other comprehensive income to interest expense — 75 — 204 Net tax expense on items recognized in accumulated other comprehensive income — (29 ) — (80 ) Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ 468 $ (1,945 ) $ (1,861 ) $ 2,681 Net interest expense recognized in interest expense on junior subordinated notes $ — $ 75 $ — $ 204 Hedge ineffectiveness on interest rate swaps designated as cash flow hedges was immaterial to the Company’s financial statements during the three and six months ended June 30, 2015 and 2014 . Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate liabilities. During the next twelve months, the Company does not anticipate any such reclassifications. As a result of the branch acquisition, in the first quarter of 2014, the Company initiated and subsequently terminated all of its interest rate swaps, with various institutions, associated with FHLB advances with 3-month LIBOR based floating interest rates with an aggregate notional amount of $30 million , all of its interest rate swaps associated with 90 day rolling FHLB advances issued using the FHLB’s 3 -month fixed interest rate with an aggregate notional amount of $145 million and all of its forward-starting interest rate swaps associated with 90 day rolling FHLB advances issued using the FHLB’s 3-month fixed interest rate with an aggregate notional amount of $235 million . In the first quarter of 2014, the Company elected to extinguish $215 million of FHLB advances related to the terminated swaps. As a result the Company reclassified $8.6 million of losses from the effective portion of the unrealized changes in the fair value of the terminated derivatives from other comprehensive income to non-interest income as the forecasted transactions to the related FHLB advances will not occur. Economic hedges As of June 30, 2015 , the Company has an interest rate swap with a $12.3 million notional amount to swap out the fixed rate of interest on an economic development bond bearing a fixed rate of 5.09% , currently within the Company’s trading portfolio under the fair value option, in exchange for a LIBOR-based floating rate. The intent of the economic hedge is to improve the Company’s asset sensitivity to changing interest rates in anticipation of favorable average floating rates of interest over the 21 -year life of the bond. The fair value changes of the economic development bond are mostly offset by fair value changes of the related interest rate swap. The Company also offers certain derivative products directly to qualified commercial borrowers. The Company economically hedges derivative transactions executed with commercial borrowers by entering into mirror-image, offsetting derivatives with third-party financial institutions. The transaction allows the Company’s customer to convert a variable-rate loan to a fixed rate loan. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts mostly offset each other in earnings. Credit valuation adjustments arising from the difference in credit worthiness of the commercial loan and financial institution counterparties totaled $94.7 thousand as of June 30, 2015 . The interest income and expense on these mirror image swaps exactly offset each other. The Company has risk participation agreements with dealer banks. Risk participation agreements occur when the Company participates on a loan and a swap where another bank is the lead. The Company gets paid a fee to take on the risk associated with having to make the lead bank whole on Berkshire’s portion of the pro-rated swap should the borrower default. Changes in fair value are recorded in current period earnings. The Company utilizes forward sale commitments to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives with changes in fair value recorded in current period earnings. The Company uses the following types of forward sale commitments contracts: • Best efforts loan sales, • Mandatory delivery loan sales, and • To Be Announced (“TBA”) mortgage-backed securities sales. A best efforts contract refers to a loan sale agreement where the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. The Company may enter into a best efforts contract once the price is known, which is shortly after the potential borrower’s interest rate is locked. A mandatory delivery contract is a loan sale agreement where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into mandatory delivery contracts shortly after the loan closes with a customer. The Company may sell TBA mortgage-backed securities to hedge the changes in fair value of interest rate lock commitments and held for sale loans, which do not have corresponding best efforts or mandatory delivery contracts. These security sales transactions are closed once mandatory contracts are written. On the closing date the price of the security is locked-in, and the sale is paired-off with a purchase of the same security. Settlement of the security purchase/sale transaction is done with cash on a net-basis. Non-hedging derivatives The Company enters into interest rate lock commitments (“IRLCs”) for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs that relate to the origination of mortgage loans that will be held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in noninterest income in the Company’s consolidated statements of income. Changes in the fair value of IRLCs subsequent to inception are based on changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and changes in the probability that the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain (loss) recognized in other non-interest income $ 331 $ (350 ) $ 60 $ (731 ) Interest rate swaps on loans with commercial loan customers: Unrealized (loss) gain recognized in other non-interest income 3,889 (1,919 ) 775 (1,732 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized loss recognized in other non-interest income (3,889 ) 1,919 (775 ) 1,732 Favorable (Unfavorable) change in credit valuation adjustment recognized in other non-interest income 56 4 57 11 Risk Participation Agreements: Unrealized gain recognized in other non-interest income 31 — (40 ) — Forward Commitments: Unrealized gain (loss) recognized in other non-interest income 475 (561 ) 87 (669 ) Realized gain (loss) in other non-interest income 504 (177 ) 413 (341 ) Non-hedging derivatives Interest rate lock commitments Unrealized gain recognized in other non-interest income $ 382 $ 660 $ 1,359 $ 1,037 Realized gain in other non-interest income 186 769 941 1,035 Assets and Liabilities Subject to Enforceable Master Netting Arrangements Interest Rate Swap Agreements (“Swap Agreements”) The Company enters into swap agreements to facilitate the risk management strategies for commercial banking customers. The Company mitigates this risk by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s consolidated statements of condition. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral generally in the form of marketable securities is received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds. The Company had net asset positions with its commercial banking counterparties totaling $11.6 million and $12.3 million as of June 30, 2015 and December 31, 2014 , respectively. The Company had net liability positions with its financial institution counterparties totaling $16.4 million and $18.2 million as of June 30, 2015 and December 31, 2014 , respectively. At June 30, 2015 , the Company did not have a net liability position with its commercial banking counterparties, compared to a $0.1 million liability at December 31, 2014 . The collateral posted by the Company that covered liability positions was $16.4 million and $18.2 million as of June 30, 2015 and December 31, 2014 , respectively. The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of June 30, 2015 and December 31, 2014 : Offsetting of Financial Assets and Derivative Assets Gross Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Assets Condition Condition Instruments Collateral Received Net Amount June 30, 2015 Interest Rate Swap Agreements: Institutional counterparties $ 27 $ — $ 27 $ — $ — $ 27 Commercial counterparties 11,585 — 11,585 — — 11,585 Total $ 11,612 $ — $ 11,612 $ — $ — $ 11,612 Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount June 30, 2015 Interest Rate Swap Agreements: Institutional counterparties $ (16,421 ) $ 5 $ (16,416 ) $ 10,596 $ 5,820 $ — Commercial counterparties (18 ) — (18 ) — — (18 ) Total $ (16,439 ) $ 5 $ (16,434 ) $ 10,596 $ 5,820 $ (18 ) Offsetting of Financial Assets and Derivative Assets Gross Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Assets Condition Condition Instruments Collateral Received Net Amount December 31, 2014 Interest Rate Swap Agreements: Institutional counterparties $ 23 $ — $ 23 $ — $ — $ 23 Commercial counterparties 12,270 — 12,270 — — 12,270 Total $ 12,293 $ — $ 12,293 $ — $ — $ 12,293 Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount December 31, 2014 Interest Rate Swap Agreements: Institutional counterparties $ (18,232 ) $ 58 $ (18,174 ) $ 14,984 $ 3,190 $ — Commercial counterparties (50 ) — (50 ) — — (50 ) Total $ (18,282 ) $ 58 $ (18,224 ) $ 14,984 $ 3,190 $ (50 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value. Recurring Fair Value Measurements The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. June 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,378 $ 14,378 Available-for-sale securities: Municipal bonds and obligations — 150,301 — 150,301 Government guaranteed residential mortgage-backed securities — 61,867 — 61,867 Government-sponsored residential mortgage-backed securities — 889,698 — 889,698 Corporate bonds — 50,758 — 50,758 Trust preferred securities — 13,265 — 13,265 Other bonds and obligations — 3,167 — 3,167 Marketable equity securities 33,983 944 773 35,700 Loans held for sale (1) — 37,324 — 37,324 Derivative assets 425 11,610 431 12,466 Derivative liabilities — 20,326 — 20,326 (1) Loans held for sale excludes $11.2 million of loans for sale held shown on the balance sheet that is held at lower of cost or market. December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,909 $ 14,909 Available-for-sale securities: Municipal bonds and obligations — 133,699 — 133,699 Government guaranteed residential mortgage-backed securities — 69,468 — 69,468 Government-sponsored residential mortgage-backed securities — 760,184 — 760,184 Corporate bonds — 54,151 — 54,151 Trust preferred securities — 14,667 1,548 16,215 Other bonds and obligations — 3,159 — 3,159 Marketable equity securities 53,806 358 778 54,942 Loans Held for Sale — 19,493 — 19,493 Derivative assets — 12,328 625 12,953 Derivative liabilities 417 18,259 93 18,769 There were no transfers between levels during the three and six months ended June 30, 2015 or 2014 . Trading Security at Fair Value. The Company holds one security designated as a trading security. It is a tax advantaged economic development bond issued to the Company by a local nonprofit which provides wellness and health programs. The determination of the fair value for this security is determined based on a discounted cash flow methodology. Certain inputs to the fair value calculation are unobservable and there is little to no market activity in the security; therefore, the security meets the definition of a Level 3 security. The discount rate used in the valuation of the security is sensitive to movements in the 3-month LIBOR rate. Securities Available for Sale . AFS securities classified as Level 1 consist of publicly-traded equity securities for which the fair values can be obtained through quoted market prices in active exchange markets. AFS securities classified as Level 2 include most of the Company’s debt securities. The pricing on Level 2 was primarily sourced from third party pricing services, overseen by management, and is based on models that consider standard input factors such as dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and condition, among other things. The Company owns one privately owned equity security classified as Level 3. The security’s fair value is determined through unobservable issuer-provided financial information and a pricing model utilizing peer data. Loans held for sale. The Company elected the fair value option for all loans held for sale (HFS) originated for sale on or after May 1, 2012. Loans HFS are classified as Level 2 as the fair value is based on input factors such as quoted prices for similar loans in active markets. Aggregate Fair Value June 30, 2015 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale (1) $ 37,324 $ 36,787 $ 537 (1) Loans held for sale excludes $11.2 million of loans for sale held shown on the balance sheet that is held at lower of cost or market. Aggregate Fair Value December 31, 2014 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 19,493 $ 18,885 $ 608 The changes in fair value of loans held for sale for the three and six months ended June 30, 2015 , were losses of $285 thousand and $71 thousand , respectively. The changes in fair value of loans held for sale for the three and six months ended June 30, 2014 , were gains of $427 thousand and $467 thousand , respectively. The changes in fair value are included in mortgage banking income in the Consolidated Statements of Income. Derivative Assets and Liabilities. Interest Rate Swap. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of June 30, 2015 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Interest Rate Lock Commitments. The Company enters into IRLCs for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close, and by the non-refundable costs of originating the loan. The closing ratio is derived from the Bank’s internal data and is adjusted using significant management judgment. The costs to originate are primarily based on the Company’s internal commission rates that are not observable. As such, IRLCs are classified as Level 3 measurements. Forward Sale Commitments . The Company utilizes forward sale commitments as economic hedges against potential changes in the values of the IRLCs and loans originated for sale. To Be Announced (“TBA”) mortgage-backed securities forward commitment sales are used as the hedging instrument, are classified as Level 1, and consist of publicly-traded debt securities for which identical fair values can be obtained through quoted market prices in active exchange markets. The fair values of the Company’s best efforts and mandatory delivery loan sale commitments are determined similarly to the IRLCs using quoted prices in the market place that are observable. However, costs to originate and closing ratios included in the calculation are internally generated and are based on management’s judgment and prior experience, which are considered factors that are not observable. As such, best efforts and mandatory forward commitments are classified as Level 3 measurements. The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2015 and 2014 . Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended June 30, 2015 March 31, 2015 $ 14,970 $ 719 $ 977 $ (93 ) Sale of AFS security — — — — Unrealized (loss) gain, net recognized in other non-interest income (451 ) — 941 — Unrealized gain included in accumulated other comprehensive loss — 54 — 143 Paydown of trading security (141 ) — — — Transfers to held for sale loans — — (1,536 ) — June 30, 2015 $ 14,378 $ 773 $ 382 $ 50 Six Months Ended June 30, 2015 December 31, 2014 $ 14,909 $ 2,326 $ 625 $ (93 ) Sale of AFS security — (1,327 ) — — Unrealized (loss) gain, net recognized in other non-interest income (248 ) — 2,671 — Unrealized gain included in accumulated other comprehensive loss — (226 ) — 143 Paydown of trading security (283 ) — — — Transfers to held for sale loans — — (2,914 ) — June 30, 2015 $ 14,378 $ 773 $ 382 $ 50 Unrealized gains (losses) relating to instruments still held at June 30, 2015 $ 2,106 $ 3 $ 382 $ 50 Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended June 30, 2014 March 31, 2014 $ 14,923 $ 2,046 $ 377 $ (96 ) Purchase of Marketable Equity Security — — — — Unrealized (loss) gain, net recognized in other non-interest income 181 — 1,075 (67 ) Unrealized gain included in accumulated other comprehensive loss — 171 — — Paydown of trading account security (133 ) — — — Transfers to held for sale loans — — (792 ) — June 30, 2014 $ 14,971 $ 2,217 $ 660 $ (163 ) Six Months Ended June 30, 2014 December 31, 2013 $ 14,840 $ 1,964 $ 258 $ 19 Purchase of Marketable Equity Security — — — — Unrealized (loss) gain, net recognized in other non-interest income 399 — 1,794 (182 ) Unrealized gain included in accumulated other comprehensive loss — 253 — — Paydown of trading account security (268 ) — — — Transfers to held for sale loans — — (1,392 ) — June 30, 2014 $ 14,971 $ 2,217 $ 660 $ (163 ) Unrealized gains (losses) relating to instruments still held at June 30, 2014 $ 2,144 $ (1,118 ) $ 660 $ (163 ) Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant Unobservable Input (In thousands) June 30, 2015 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,378 Discounted Cash Flow Discount Rate 2.73 % AFS Securities 773 Pricing Model Median Peer Price/Tangible Book Value Percentage Multiple 99.02 % Forward Commitments 50 Historical Trend Closing Ratio 92.11 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 382 Historical Trend Closing Ratio 92.11 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 15,583 Fair Value Significant Unobservable Input (In thousands) December 31, 2014 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,909 Discounted Cash Flow Discount Rate 2.60 % AFS Securities 2,326 Discounted Cash Flow Discount Rate 13.74 % Credit Spread 11.06 % Forward Commitments (93 ) Historical Trend Closing Ratio 91.07 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 625 Historical Trend Closing Ratio 91.07 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 17,767 Non-Recurring Fair Value Measurements The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with GAAP. The following is a summary of applicable non-recurring fair value measurements. There are no liabilities measured at fair value on a non-recurring basis. June 30, 2015 December 31, 2014 Six months ended Fair Value Measurement Date Level 3 Level 3 Total Level 3 (In thousands) Inputs Inputs Gains (Losses) Inputs Assets Impaired loans $ 6,659 $ 5,820 $ 839 June 2015 Capitalized mortgage servicing rights 4,697 3,757 — May 2015 Other real estate owned 674 2,049 (285 ) March 2013 - July 2014 Total $ 12,030 $ 11,626 $ 554 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (in thousands) June 30, 2015 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 6,659 Fair value of collateral Loss severity 0.41% to 38.41% (9.15%) Appraised value $2.7 to $2,272.0 ($491.6) Capitalized mortgage servicing rights 4,697 Discounted cash flow Constant prepayment rate (CPR) 7.67% to 21.08% (10.43%) Discount rate 10.00% to 13.00% (10.58%) Other real estate owned 674 Fair value of collateral Appraised value $57 to $700.0 ($595.6) Total $ 12,030 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value (in thousands) December 31, 2014 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 5,820 Fair value of collateral Loss severity 0.31% to 38.7% (12.65%) Appraised value $5 to $1,600.0 ($912.7) Capitalized mortgage servicing rights 3,757 Discounted cash flow Constant prepayment rate (CPR) 7.83% to 19.00% (9.92%) Discount rate 10.00% to 13.00% (10.43%) Other real estate owned 2,049 Fair value of collateral Appraised value $57 to $700.0 ($462.6) Total $ 11,626 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. There were no Level 1 or Level 2 nonrecurring fair value measurements for the periods ended June 30, 2015 and December 31, 2014 . Impaired Loans. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, nonrecurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Capitalized mortgage loan servicing rights . A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. Other real estate owned (“OREO”). OREO results from the foreclosure process on residential or commercial loans issued by the Bank. Upon assuming the real estate, the Company records the property at the fair value of the asset less the estimated sales costs. Thereafter, OREO properties are recorded at the lower of cost or fair value less the estimated sales costs. OREO fair values are primarily determined based on Level 3 data including sales comparables and appraisals. Summary of Estimated Fair Values of Financial Instruments The estimated fair values, and related carrying amounts, of the Company’s financial instruments follow. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. June 30, 2015 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 205,518 $ 205,518 $ 205,518 $ — $ — Trading security 14,378 14,378 — — 14,378 Securities available for sale 1,204,756 1,204,756 33,983 1,170,000 773 Securities held to maturity 86,994 87,512 — — 87,512 FHLB bank stock and restricted securities 73,212 73,212 — 73,212 — Net loans 5,247,417 5,293,778 — — 5,293,778 Loans held for sale 48,514 48,514 — 48,514 — Accrued interest receivable 19,120 19,120 — 19,120 — Cash surrender value of bank-owned life insurance policies 123,536 123,536 — 123,536 — Derivative assets 12,466 12,466 425 11,610 431 Assets held for sale 2,519 2,519 — 2,519 — Financial Liabilities Total deposits $ 5,322,176 $ 5,324,354 $ — $ 5,324,354 $ — Short-term debt 1,058,001 1,058,162 — 1,058,162 — Long-term Federal Home Loan Bank advances 118,483 121,809 — 121,809 — Subordinated borrowings 89,782 94,320 — 94,320 — Derivative liabilities 20,326 20,326 — 20,326 — December 31, 2014 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 71,754 $ 71,754 $ 71,754 $ — $ — Trading security 14,909 14,909 — — 14,909 Securities available for sale 1,091,818 1,091,818 5,806 1,035,686 2,326 Securities held to maturity 43,347 44,997 — — 44,997 FHLB bank stock and restricted securities 55,720 55,720 — 55,720 — Net loans 4,644,938 4,695,256 — — 4,695,256 Loans held for sale 19,493 19,493 — 19,493 — Accrued interest receivable 17,274 17,274 — 17,274 — Cash surrender value of bank-owned life insurance policies 104,588 104,588 — 104,588 — Derivative assets 12,953 12,953 — 12,328 625 Assets held for sale 1,280 1,280 — 1,280 — Financial Liabilities Total deposits $ 4,654,679 $ 4,655,234 $ — $ 4,655,234 $ — Short-term debt 900,900 900,983 — 900,983 — Long-term Federal Home Loan Bank advances 61,676 63,283 — 63,283 — Subordinated borrowings 89,747 93,441 — 93,441 — Derivative liabilities 18,769 18,769 417 18,259 93 Other than as discussed above, the following methods and assumptions were used by management to estimate the fair value of significant classes of financial instruments for which it is practicable to estimate that value. Cash and cash equivalents. Carrying value is assumed to represent fair value for cash and cash equivalents that have original maturities of ninety days or less. FHLB bank stock and restricted securities. Carrying value approximates fair value based on the redemption provisions of the issuers. Cash surrender value of life insurance policies. Carrying value approximates fair value. Loans, net. The carrying value of the loans in the loan portfolio is based on the cash flows of the loans discounted over their respective loan origination rates. The origination rates are adjusted for substandard and special mention loans to factor the impact of declines in the loan’s credit standing. The fair value of the loans is estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality. Accrued interest receivable. Carrying value approximates fair value. Deposits. The fair value of demand, non-interest bearing checking, savings and money market deposits is determined as the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the estimated future cash flows using market rates offered for deposits of similar remaining maturities. Borrowed funds. The fair value of borrowed funds is estimated by discounting the future cash flows using market rates for similar borrowings. Such funds include all categories of debt and debentures in the table above. Subordinated borrowings. The Company utilizes a pricing service along with internal models to estimate the valuation of its junior subordinated debentures. The junior subordinated debentures re-price every ninety days. Off-balance-sheet financial instruments. Off-balance-sheet financial instruments include standby letters of credit and other financial guarantees and commitments considered immaterial to the Company’s financial statements. |
NET INTEREST INCOME AFTER PROVI
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2015 | |
Banking and Thrift, Interest [Abstract] | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES Presented below is net interest income after provision for loan losses for the three months ended June 30, 2015 and 2014, respectively. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Net interest income $ 52,637 $ 44,329 $ 98,130 $ 87,095 Provision for loan losses 4,204 3,989 8,055 7,385 Net interest income after provision for loan losses $ 48,433 $ 40,340 $ 90,075 $ 79,710 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On August 7, 2015, the Company acquired all of the outstanding equity of Firestone Financial Corp. (“Firestone”), which now operates as a subsidiary of Berkshire Bank. Firestone is a commercial specialty finance company providing secured installment loan equipment financing for small and medium-sized businesses. Firestone shareholders received 1.4 million shares of the Company’s common stock and $13.7 million cash. As of June 30, 2015, Firestone had assets with a carrying value of approximately $201.2 million , including financing receivables outstanding with a carrying value of approximately $197.7 million . The results of Firestone’s operations will be included in the Company’s Consolidated Statement of Income from the date of acquisition. The Company incurred $896 thousand of merger and acquisition expenses related to the Firestone merger for the three months ended June 30, 2015. As a result of the proximity of the closing of the merger with Firestone to the date these consolidated financial statements are available to be issued, the Company is still evaluating the estimated fair values of the assets acquired and the liabilities assumed. Accordingly, the amount of any goodwill and other intangible assets to be recognized in connection with this transaction is also yet to be determined. This merger agreement had no significant effect on the Company’s financial statements for the periods presented. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and contain all adjustments, consisting solely of normal, recurring adjustments, necessary for a fair presentation of results for such periods. In addition, these interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X, and accordingly, certain information and footnote disclosures normally included in financial statements prepared according to U.S. GAAP have been omitted. The results for any interim period are not necessarily indicative of results for the full year. These consolidated financial statements should be read in conjunction with the audited financial statements and note disclosures for Berkshire Hills Bancorp, Inc. (the “Company”) previously filed with the Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Reclassifications | Reclassifications Certain items in prior financial statements have been reclassified to conform to the current presentation. |
Recently Adopted Accounting Standards and Future Application of Accounting Pronouncements | Recently Adopted Accounting Standards In January 2014, the Financial Accounting Standard Board “FASB” issued Accounting Standard Updated “ASU” ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects.” ASU No. 2014-01 permits reporting entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. This new guidance also requires new disclosures for all investors in these projects. ASU No. 2014-01 is effective for interim and annual reporting periods beginning after December 15, 2014. Upon adoption, the guidance must be applied retrospectively to all periods presented. However, entities that use the effective yield method to account for investments in these projects before adoption may continue to do so for these pre-existing investments. The Company has elected not to adopt the proportional amortization method, which had no impact on our consolidated financial statements. Also in January 2014, the FASB issued ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted the provisions of ASU No. 2014-04 effective January 1, 2015, which did not have a material effect on our consolidated financial statements. See Note 6. Loan Loss Allowance to the Consolidated Financial Statements for the disclosures required by ASU No. 2014-04. In June 2014, the FASB issued ASU No. 2014-11 related to repurchase-to-maturity transactions, repurchase financing and disclosures. The pronouncement changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The pronouncement also requires two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales in transactions that are economically similar to repurchase agreements. The second disclosure provides increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The pronouncement is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is not permitted. As of March 31, 2015, the Company did not have any repurchase transactions, and therefore the adoption of this pronouncement did not have an impact on our consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-14 related to classification of certain government-guaranteed mortgage loans upon foreclosure. The objective of this guidance is to reduce diversity in practice related to how creditors classify government-guaranteed mortgage loans, including FHA or VA guaranteed loans, upon foreclosure. Some creditors reclassify those loans to real estate consistent with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments in this guidance require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) The loan has a government guarantee that is not separable from the loan before foreclosure; (2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The pronouncement is effective for interim and annual reporting periods beginning after December 15, 2014. The Company adopted the provisions of ASU No. 2014-14 effective January 1, 2015, which did not have a material effect on our consolidated financial statements. Future Application of Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09 related to the recognition of revenue from contracts with customers. The new revenue pronouncement creates a single source of revenue guidance for all companies in all industries and is more principles-based than current revenue guidance. The pronouncement provides a five-step model for a company to recognize revenue when it transfers control of goods or services to customers at an amount that reflects the consideration to which it expects to be entitled in exchange for those goods or services. The five steps are (1) identify the contract with the customer, (2) identify the separate performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the separate performance obligations and (5) recognize revenue when each performance obligation is satisfied. The standard is effective for public entities for interim and annual reporting periods beginning after December 15, 2016; early adoption is not permitted. However, in July 2015, the FASB voted to approve deferring the effective date by one year (i.e., interim and annual reporting periods beginning after December 15, 2017). Early adoption is permitted, but not before the original effective date (i.e., interim and annual reporting periods beginning after December 15, 2016). For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company is currently evaluating the provisions of ASU No. 2014-09, and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on our consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis.” This ASU affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) Eliminate the presumption that a general partner should consolidate a limited partnership; (3) Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of this pronouncement is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The adoption of this pronouncement is not expected to have a material impact on our consolidated financial statements. |
BRANCH ACQUISITION (Tables)
BRANCH ACQUISITION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid, and Fair Values of the Assets Acquired and Liabilities Assumed | Consideration paid, and fair values of Hampden’s assets acquired and liabilities assumed, along with the resulting goodwill, are summarized in the following tables: Fair Value As Recorded at (in thousands) As Acquired Adjustments Acquisition Consideration paid: Berkshire Hills Bancorp common stock issued to Hampden common stockholders $ 114,604 Fair value of Hampden shares previously owned by the Company prior to acquisition 4,632 Total consideration paid $ 119,236 Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: Cash and short-term investments $ 83,134 $ — $ 83,134 Investment securities 72,439 (224 ) (a) 72,215 Loans 501,870 (8,101 ) (b) 493,769 Premises and equipment 4,449 775 (c) 5,224 Core deposit intangibles — 2,780 (d) 2,780 Deferred tax assets, net 3,875 3,091 (e) 6,966 Other assets 22,919 560 (f) 23,479 Deposits (482,130 ) (1,439 ) (g) (483,569 ) Borrowings (117,135 ) (2,380 ) (h) (119,515 ) Other liabilities (8,395 ) (124 ) (i) (8,519 ) Total identifiable net assets $ 81,026 $ (5,062 ) $ 75,964 Goodwill $ 43,272 Explanation of Certain Fair Value Adjustments (a) The adjustment represents the write down of the book value of investments to their estimated fair value based on fair values on the date of acquisition. (b) The adjustment represents the write down of the book value of loans to their estimated fair value based on current interest rates and expected cash flows, which includes an estimate of expected loan loss inherent in the portfolio. Loans that met the criteria and are being accounted for in accordance with ASC 310-30 had a book value of $28.5 million and have a fair value $16.7 million . Non-impaired loans accounted for under ASC 310-10 had a book value of $473.4 million and have a fair value of $ 477.1 million . ASC 310-30 loans have a $4.0 million fair value adjustment discount that is accretable in earnings over an estimated five year life using the effective yield as determined on the date of acquisition. The effective yield is periodically adjusted for changes in expected flows. ASC 310-10 loans have a $0.4 million fair value adjustment premium that is amortized into expense over the remaining term of the loans using the effective interest method, or a straight-line method if the loan is a revolving credit facility. (c) The amount represents the adjustment of the book value of buildings and equipment, to their estimated fair value based on appraisals and other methods. The adjustments will be depreciated over the estimated economic lives of the assets. (d) The adjustment represents the value of the core deposit base assumed in the acquisition. The core deposit asset was recorded as an identifiable intangible asset and will be amortized using a straight-line method over the average life of the deposit base, which is estimated to be nine years. (e) Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles, and other purchase accounting adjustments. (f) The amount consists of a $0.2 million fair value adjustment to write-down other real estate owned based on market report data, a $0.3 million write-down of mortgage servicing assets acquired based on valuation reports, a $0.5 million write-off of prepaid assets due to obsolescence, and a $1.6 million measurement period adjustment increase to current taxes receivable. These adjustments are not accretable into earnings in the statement of income. (g) The adjustment is necessary because the weighted average interest rate of time deposits exceeded the cost of similar funding at the time of acquisition. The amount will be amortized using an accelerated method over the estimated useful life of two years. (h) Adjusts borrowings to their estimated fair value, which is calculated based on the amount of prepayment penalties that would be incurred if the borrowings were exited with the Federal Home Loan Bank of Boston on the date of acquisition. (i) Adjusts the book value of other liabilities to their estimated fair value at the acquisition date. The adjustment consists of a $0.4 million write-off of deferred revenue, a $0.3 million increase to post-retirement liabilities due to change-in-control provisions, and a $0.2 million increase related to non-level leases. |
Schedule of Acquired Loan Portfolio | Information about the acquired loan portfolio subject to ASC 310-30 as of April 17, 2015 is, as follows (in thousands): ASC 310-30 Loans Gross contractual receivable amounts at acquisition $ 28,505 Contractual cash flows not expected to be collected (nonaccretable discount) (7,884 ) Expected cash flows at acquisition 20,621 Interest component of expected cash flows (accretable discount) (3,950 ) Fair value of acquired loans $ 16,671 |
Pro Forma Financial Information | Information in the following table is shown in thousands, except earnings per share: Pro Forma (unaudited) Six Months Ended June 30, 2015 2014 Net interest income $ 105,076 $ 98,639 Non-interest income 28,010 20,708 Net income 22,244 13,435 Pro forma earnings per share: Basic $ 0.77 $ 0.46 Diluted $ 0.76 $ 0.46 |
SECURITIES AVAILABLE FOR SALE27
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities available for sale ("AFS") and held to maturity | The following is a summary of securities available for sale and held to maturity: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 147,779 $ 4,226 $ (1,704 ) $ 150,301 Government-guaranteed residential mortgage-backed securities 61,533 511 (177 ) 61,867 Government-sponsored residential mortgage-backed securities 886,974 7,005 (4,281 ) 889,698 Corporate bonds 51,651 137 (1,030 ) 50,758 Trust preferred securities 12,747 590 (72 ) 13,265 Other bonds and obligations 3,197 — (30 ) 3,167 Total debt securities 1,163,881 12,469 (7,294 ) 1,169,056 Marketable equity securities 31,616 5,998 (1,914 ) 35,700 Total securities available for sale 1,195,497 18,467 (9,208 ) 1,204,756 Securities held to maturity Municipal bonds and obligations 49,343 25 (992 ) 48,376 Government-sponsored residential mortgage-backed securities 69 3 — 72 Tax advantaged economic development bonds 37,251 1,509 (27 ) 38,733 Other bonds and obligations 331 — — 331 Total securities held to maturity 86,994 1,537 (1,019 ) 87,512 Total $ 1,282,491 $ 20,004 $ (10,227 ) $ 1,292,268 December 31, 2014 Securities available for sale Debt securities: Municipal bonds and obligations $ 127,014 $ 6,859 $ (174 ) $ 133,699 Government-guaranteed residential mortgage-backed securities 68,972 702 (206 ) 69,468 Government-sponsored residential mortgage-backed securities 755,893 7,421 (3,130 ) 760,184 Corporate bonds 55,134 120 (1,103 ) 54,151 Trust preferred securities 16,607 820 (1,212 ) 16,215 Other bonds and obligations 3,211 — (52 ) 3,159 Total debt securities 1,026,831 15,922 (5,877 ) 1,036,876 Marketable equity securities 48,993 7,322 (1,373 ) 54,942 Total securities available for sale 1,075,824 23,244 (7,250 ) 1,091,818 Securities held to maturity Municipal bonds and obligations 4,997 — — 4,997 Government-sponsored residential mortgage-backed securities 70 4 — 74 Tax advantaged economic development bonds 37,948 1,680 (34 ) 39,594 Other bonds and obligations 332 — — 332 Total securities held to maturity 43,347 1,684 (34 ) 44,997 Total $ 1,119,171 $ 24,928 $ (7,284 ) $ 1,136,815 |
Schedule of amortized cost and estimated fair value of available for sale (AFS) and held to maturity (HTM) securities, segregated by contractual maturity | The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities, segregated by contractual maturity at June 30, 2015 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Equity securities have no maturity and are also shown in total. Available for sale Held to maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value Within 1 year $ 31,405 $ 30,472 $ 4,320 $ 4,320 Over 1 year to 5 years 1,255 1,270 18,924 19,751 Over 5 years to 10 years 12,364 12,590 12,904 13,066 Over 10 years 170,350 173,159 50,777 50,303 Total bonds and obligations 215,374 217,491 86,925 87,440 Marketable equity securities 31,616 35,700 — — Residential mortgage-backed securities 948,507 951,565 69 72 Total $ 1,195,497 $ 1,204,756 $ 86,994 $ 87,512 |
Schedule of securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions | Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (In thousands) Losses Value Losses Value Losses Value June 30, 2015 Securities available for sale Debt securities: Municipal bonds and obligations $ 618 $ 11,657 $ 1,086 $ 30,986 $ 1,704 $ 42,643 Government-guaranteed residential mortgage-backed securities 128 12,773 49 14,035 177 26,808 Government-sponsored residential mortgage-backed securities 3,297 180,831 984 122,864 4,281 303,695 Corporate bonds — — 1,030 36,158 1,030 36,158 Trust preferred securities — — 72 928 72 928 Other bonds and obligations 30 3,025 — — 30 3,025 Total debt securities 4,073 208,286 3,221 204,971 7,294 413,257 Marketable equity securities 1,871 8,972 43 299 1,914 9,271 Total securities available for sale 5,944 217,258 3,264 205,270 9,208 422,528 Securities held to maturity Municipal bonds and obligations 176 4,880 816 30,981 992 35,861 Tax advantaged economic development bonds 27 7,847 — — 27 7,847 Total securities held to maturity 203 12,727 816 30,981 1,019 43,708 Total $ 6,147 $ 229,985 $ 4,080 $ 236,251 $ 10,227 $ 466,236 December 31, 2014 Securities available for sale Debt securities: Municipal bonds and obligations $ 8 $ 1,001 $ 166 $ 7,206 $ 174 $ 8,207 Government guaranteed residential mortgage-backed securities 46 7,122 160 16,727 206 23,849 Government-sponsored residential mortgage-backed securities 236 30,672 2,894 167,473 3,130 198,145 Corporate bonds 1,103 39,571 — — 1,103 39,571 Trust preferred securities 65 935 1,147 2,408 1,212 3,343 Other bonds and obligations — — 52 3,035 52 3,035 Total debt securities 1,458 79,301 4,419 196,849 5,877 276,150 Marketable equity securities 1,039 9,902 334 4,755 1,373 14,657 Total securities available for sale 2,497 89,203 4,753 201,604 7,250 290,807 Securities held to maturity Tax advantaged economic development bonds — — 34 7,972 34 7,972 Total securities held to maturity — — 34 7,972 34 7,972 Total $ 2,497 $ 89,203 $ 4,787 $ 209,576 $ 7,284 $ 298,779 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Loans | The following is a summary of total loans: June 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Residential mortgages: 1-4 family $ 1,238,456 $ 366,046 $ 1,604,502 $ 1,199,408 $ 268,734 $ 1,468,142 Construction 30,247 2,607 32,854 27,044 1,018 28,062 Total residential mortgages 1,268,703 368,653 1,637,356 1,226,452 269,752 1,496,204 Commercial real estate: Construction 181,157 44,230 225,387 169,189 4,201 173,390 Single and multi-family 149,716 47,950 197,666 140,050 53,168 193,218 Other commercial real estate 1,105,381 378,803 1,484,184 1,030,837 214,122 1,244,959 Total commercial real estate 1,436,254 470,983 1,907,237 1,340,076 271,491 1,611,567 Commercial and industrial loans: Asset based lending 339,331 — 339,331 341,246 — 341,246 Other commercial and industrial loans 490,594 91,265 581,859 411,945 51,175 463,120 Total commercial and industrial loans 829,925 91,265 921,190 753,191 51,175 804,366 Total commercial loans 2,266,179 562,248 2,828,427 2,093,267 322,666 2,415,933 Consumer loans: Home equity 294,878 56,275 351,153 252,681 65,951 318,632 Auto and other 315,500 152,178 467,678 346,480 103,351 449,831 Total consumer loans 610,378 208,453 818,831 599,161 169,302 768,463 Total loans $ 4,145,260 $ 1,139,354 $ 5,284,614 $ 3,918,880 $ 761,720 $ 4,680,600 |
Schedule of Activity in the Accretable Yield for the Acquired Loan Portfolio that Falls Under the Review of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer | The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. Three Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of period $ 3,431 $ 3,154 Acquisitions 4,178 — Sales — — Reclassification form nonaccretable difference for loans with improved cash flows 405 39 Change in cash flows that do not affect nonaccretable difference — (149 ) Accretion (1,474 ) (604 ) Balance at end of period $ 6,540 $ 2,440 Six Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of period $ 2,541 $ 2,559 Acquisitions 4,178 — Sales — — Reclassification form nonaccretable difference for loans with improved cash flows 1,736 1,579 Change in cash flows that do not affect nonaccretable difference — (149 ) Accretion (1,915 ) (1,549 ) Balance at end of period $ 6,540 $ 2,440 |
Summary of Past Due Loans | The following is a summary of past due loans at June 30, 2015 and December 31, 2014 : Business Activities Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing June 30, 2015 Residential mortgages: 1-4 family $ 1,915 $ 1,073 $ 3,777 $ 6,765 $ 1,231,691 $ 1,238,456 $ 913 Construction — — — — 30,247 30,247 — Total 1,915 1,073 3,777 6,765 1,261,938 1,268,703 913 Commercial real estate: Construction — — 199 199 180,958 181,157 — Single and multi-family 135 260 262 657 149,059 149,716 187 Other commercial real estate 993 1,819 6,896 9,708 1,095,673 1,105,381 442 Total 1,128 2,079 7,357 10,564 1,425,690 1,436,254 629 Commercial and industrial loans: Asset based lending — — — — 339,331 339,331 — Other commercial and industrial loans 355 438 2,447 3,240 487,354 490,594 — Total 355 438 2,447 3,240 826,685 829,925 — Consumer loans: Home equity 60 — 2,623 2,683 292,195 294,878 1,194 Auto and other 928 120 293 1,341 314,159 315,500 2 Total 988 120 2,916 4,024 606,354 610,378 1,196 Total $ 4,386 $ 3,710 $ 16,497 $ 24,593 $ 4,120,667 $ 4,145,260 $ 2,738 Business Activities Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing December 31, 2014 Residential mortgages: 1-4 family $ 5,580 $ 146 $ 4,053 $ 9,779 $ 1,189,629 $ 1,199,408 $ 1,527 Construction 666 410 — 1,076 25,968 27,044 — Total 6,246 556 4,053 10,855 1,215,597 1,226,452 1,527 Commercial real estate: Construction — 2,000 720 2,720 166,469 169,189 — Single and multi-family 178 156 458 792 139,258 140,050 — Other commercial real estate 692 705 9,383 10,780 1,020,057 1,030,837 621 Total 870 2,861 10,561 14,292 1,325,784 1,340,076 621 Commercial and industrial loans: Asset based lending — — — — 341,246 341,246 — Other commercial and industrial loans 1,040 498 856 2,394 409,551 411,945 6 Total 1,040 498 856 2,394 750,797 753,191 6 Consumer loans: Home equity 333 1,000 1,387 2,720 249,961 252,681 230 Auto and other 831 65 315 1,211 345,269 346,480 10 Total 1,164 1,065 1,702 3,931 595,230 599,161 240 Total $ 9,320 $ 4,980 $ 17,172 $ 31,472 $ 3,887,408 $ 3,918,880 $ 2,394 Acquired Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing June 30, 2015 Residential mortgages: 1-4 family $ 1,622 $ 514 $ 1,787 $ 3,923 $ 2,615 $ 366,046 $ 417 Construction — — — — — 2,607 — Total 1,622 514 1,787 3,923 2,615 368,653 417 Commercial real estate: Construction — — 664 664 3,289 44,230 — Single and multi-family 310 — 158 468 1,798 47,950 — Other commercial real estate 445 — 2,786 3,231 15,179 378,803 603 Total 755 — 3,608 4,363 20,266 470,983 603 Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 1,323 50 584 1,957 1,711 91,265 — Total 1,323 50 584 1,957 1,711 91,265 — Consumer loans: Home equity 78 41 939 1,058 113 56,275 212 Auto and other 661 825 544 2,030 153 152,178 — Total 739 866 1,483 3,088 266 208,453 212 Total $ 4,439 $ 1,430 $ 7,462 $ 13,331 $ 24,858 $ 1,139,354 $ 1,232 Acquired Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing December 31, 2014 Residential mortgages: 1-4 family $ 1,133 $ 638 $ 1,651 $ 3,422 $ 375 $ 268,734 $ 269 Construction — — — — — 1,018 — Total 1,133 638 1,651 3,422 375 269,752 269 Commercial real estate: — Construction — — 691 691 1,296 4,201 — Single and multi-family 277 — 572 849 5,477 53,168 — Other commercial real estate — 715 2,004 2,719 5,504 214,122 329 Total 277 715 3,267 4,259 12,277 271,491 329 Commercial and industrial loans: Asset based lending — — — — — — — Other commercial and industrial loans 202 32 855 1,089 986 51,175 — Total 202 32 855 1,089 986 51,175 — Consumer loans: Home equity 176 95 1,049 1,320 171 65,951 466 Auto and other 1,170 944 1,363 3,477 — 103,351 194 Total 1,346 1,039 2,412 4,797 171 169,302 660 Total $ 2,958 $ 2,424 $ 8,185 $ 13,567 $ 13,809 $ 761,720 $ 1,258 |
Summary of Information Pertaining to Non-Accrual Loans | The following is summary information pertaining to non-accrual loans at June 30, 2015 and December 31, 2014 : June 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans (1) Total Business Activities Loans Acquired Loans (2) Total Residential mortgages: 1-4 family $ 2,864 $ 1,370 $ 4,234 $ 2,526 $ 1,382 $ 3,908 Construction — — — — — — Total 2,864 1,370 4,234 2,526 1,382 3,908 Commercial real estate: Construction 199 — 199 720 — 720 Single and multi-family 75 158 233 458 141 599 Other commercial real estate 6,454 2,183 8,637 8,762 1,675 10,437 Total 6,728 2,341 9,069 9,940 1,816 11,756 Commercial and industrial loans: Other commercial and industrial loans 2,447 547 2,994 850 811 1,661 Total 2,447 547 2,994 850 811 1,661 Consumer loans: Home equity 1,429 728 2,157 1,157 583 1,740 Auto and other 291 543 834 305 1,169 1,474 Total 1,720 1,271 2,991 1,462 1,752 3,214 Total non-accrual loans $ 13,759 $ 5,529 $ 19,288 $ 14,778 $ 5,761 $ 20,539 _______________________________________ (1) At quarter end June 30, 2015 , acquired credit impaired loans accounted for $0.7 million of non-accrual loans that are not presented in the above table. (2) At December 31, 2014 , acquired credit impaired loans accounted for $1.2 million of non-accrual loans that are not presented in the above table. |
Schedule of Loans Evaluated for Impairment | Loans evaluated for impairment as of June 30, 2015 and December 31, 2014 were as follows: Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total June 30, 2015 Loans receivable: Balance at end of period Individually evaluated for impairment $ 2,926 $ 19,100 $ 8,410 $ 605 $ 31,041 Collectively evaluated 1,265,777 1,417,154 821,515 609,773 4,114,219 Total $ 1,268,703 $ 1,436,254 $ 829,925 $ 610,378 $ 4,145,260 Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total December 31, 2014 Loans receivable: Balance at end of year Individually evaluated for impairment $ 3,238 $ 22,015 $ 743 $ 452 $ 26,448 Collectively evaluated for impairment 1,223,214 1,318,061 752,448 598,709 3,892,432 Total $ 1,226,452 $ 1,340,076 $ 753,191 $ 599,161 $ 3,918,880 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total June 30, 2015 Loans receivable: Balance at end of Period Individually evaluated for impairment $ 743 $ 7,338 $ 33 $ 320 $ 8,434 Collectively evaluated 367,910 463,645 91,232 208,133 1,130,920 Total $ 368,653 $ 470,983 $ 91,265 $ 208,453 $ 1,139,354 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Total December 31, 2014 Loans receivable: Balance at end of year Individually evaluated for impairment $ 695 $ 5,637 $ 39 $ 199 $ 6,570 Collectively evaluated for impairment 269,057 265,854 51,136 169,103 755,150 Total $ 269,752 $ 271,491 $ 51,175 $ 169,302 $ 761,720 |
Summary of Impaired Loans | The following is a summary of impaired loans at June 30, 2015 : Business Activities Loans June 30, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 2,043 $ 2,043 $ — Commercial real estate - construction 2,140 2,140 — Commercial real estate - single and multifamily — — — Other commercial real estate loans 15,958 15,958 — Other commercial and industrial loans 6,669 6,669 — Consumer - home equity 493 493 — Consumer - other 112 112 — With an allowance recorded: Residential mortgages - 1-4 family $ 796 $ 883 $ 87 Commercial real estate - construction — — — Commercial real estate - single and multifamily — — — Other commercial real estate loans 973 1,003 30 Other commercial and industrial loans 35 1,741 1,706 Consumer - home equity — — — Total Residential mortgages $ 2,839 $ 2,926 $ 87 Commercial real estate 19,071 19,101 30 Commercial and industrial loans 6,704 8,410 1,706 Consumer 605 605 — Total impaired loans $ 29,219 $ 31,042 $ 1,823 Acquired Loans June 30, 2015 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 442 $ 442 $ — Commercial real estate - construction 664 664 — Commercial real estate - single and multifamily — — — Other commercial real estate loans 1,915 1,915 — Other commercial and industrial loans 33 33 — Consumer - home equity 320 320 — With an allowance recorded: Residential mortgages - 1-4 family $ 262 $ 301 $ 39 Commercial real estate - construction — — — Commercial real estate - single and multifamily 2,807 2,847 40 Other commercial real estate loans 1,786 1,912 126 Consumer - home equity — — — Total Residential mortgages $ 704 $ 743 $ 39 Commercial real estate 7,172 7,338 166 Commercial and industrial loans 33 33 — Consumer 320 320 — Total impaired loans $ 8,229 $ 8,434 $ 205 The following is a summary of impaired loans at December 31, 2014 : Business Activities Loans December 31, 2014 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 2,528 $ 2,528 $ — Commercial real estate - construction 16,990 16,990 — Commercial real estate - single and multifamily — — — Other commercial real estate loans 102 102 — Other commercial and industrial loans 743 743 — Consumer - home equity 87 87 — Consumer - other — — — With an allowance recorded: Residential mortgages - 1-4 family $ 555 $ 710 $ 155 Commercial real estate - construction 3,511 4,431 920 Commercial real estate - single and multifamily 490 492 2 Other commercial real estate loans — — — Other commercial and industrial loans — — — Consumer - home equity 194 248 54 Consumer - other 105 117 12 Total Residential mortgages $ 3,083 $ 3,238 $ 155 Commercial real estate 21,093 22,015 922 Commercial and industrial loans 743 743 — Consumer 386 452 66 Total impaired loans $ 25,305 $ 26,448 $ 1,143 Acquired Loans December 31, 2014 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Residential mortgages - 1-4 family $ 189 $ 189 $ — Other commercial real estate loans 5,206 5,206 — Other commercial and industrial loans 39 39 — Consumer - home equity — — — With an allowance recorded: Residential mortgages - 1-4 family $ 458 $ 506 $ 48 Other commercial real estate loans 383 431 48 Consumer - home equity 124 199 75 Total Residential mortgages $ 647 $ 695 $ 48 Other commercial real estate loans 5,589 5,637 48 Other commercial and industrial loans 39 39 — Consumer - home equity 124 199 75 Total impaired loans $ 6,399 $ 6,570 $ 171 |
Summary of the Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following is a summary of the average recorded investment and interest income recognized on impaired loans as of June 30, 2015 and 2014 : Business Activities Loans Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (in thousands) Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income Recognized With no related allowance: Residential mortgages - 1-4 family $ 2,281 $ 41 $ 4,661 $ 99 Commercial real estate - construction 2,466 1 — — Commercial real estate - single and multifamily 120 — 17,308 312 Other commercial real estate loans 12,734 170 2,397 — Commercial and industrial loans 1,447 3 583 14 Consumer - home equity 360 1 300 3 Consumer - other 114 2 123 2 With an allowance recorded: Residential mortgages - 1-4 family $ 764 $ 17 $ 482 $ 3 Commercial real estate - construction — — — — Commercial real estate - single and multifamily — — 2,858 — Other commercial real estate loans 6,629 92 — — Commercial and industrial loans 329 2 2,055 44 Consumer - home equity — — — — Total Residential mortgages $ 3,045 $ 58 $ 5,143 $ 102 Commercial real estate 21,949 263 22,563 312 Commercial and industrial loans 1,776 5 2,638 58 Consumer loans 474 3 423 5 Total impaired loans $ 27,244 $ 329 $ 30,767 $ 477 Acquired Loans Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (in thousands) Average Recorded Investment Cash Basis Interest Income Recognized Average Recorded Investment Cash Basis Interest Income Recognized With no related allowance: Residential mortgages - 1-4 family $ 569 $ 2 $ 930 $ 5 Commercial real estate - construction 664 60 — — Commercial real estate - single and multifamily 254 — — — Other commercial real estate loans 1,977 3 4,392 51 Other commercial and industrial loans 51 3 537 8 Consumer - home equity 355 6 51 — Consumer - other — — — — With an allowance recorded: Residential mortgages - 1-4 family $ 310 $ 5 $ 363 $ 1 Commercial real estate - single and multifamily 2,872 63 — — Other commercial real estate loans 845 59 1,489 55 Other commercial and industrial loans — — 68 3 Total Residential mortgages $ 879 $ 7 $ 1,293 $ 6 Other commercial real estate loans 6,612 185 5,881 106 Commercial and industrial loans 51 3 605 11 Consumer loans 355 6 51 — Total impaired loans $ 7,897 $ 201 $ 7,830 $ 123 |
Schedule of Recorded Investment and Number of Modifications for TDRs Identified During the Period | The following tables include the recorded investment and number of modifications identified during the three and six months ended June 30, 2015 and for the three and six months ended June 30, 2014, respectively. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. The modifications for the three and six months ending June 30, 2015 were attributable to interest rate concessions, maturity date extensions and modified payment terms. The modifications for the three and six months ending June 30, 2014 were attributable to concessions granted as ordered by bankruptcy court, interest rate concessions and maturity date extensions. Three Months Ended June 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 1,877 $ 1,877 Commercial - Other 1 1,694 1,694 Commercial and industrial - Other 4 8,159 8,159 Total 6 $ 11,730 $ 11,730 Six Months Ended June 30, 2015 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Commercial - Construction 1 $ 2,000 $ 2,000 Commercial - Other 2 1,694 1,694 Commercial and industrial - Other 5 8,192 8,192 Total 8 $ 11,886 $ 11,886 Three Months Ended June 30, 2014 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Residential - 1-4 Family 2 $ 247 $ 247 Commercial - single and multifamily 1 623 623 Commercial - other 6 4,804 4,804 Total 9 $ 5,674 $ 5,674 Six Months Ended June 30, 2014 (Dollars in thousands) Number of Pre-Modification Post-Modification Troubled Debt Restructurings Residential - 1-4 Family 3 $ 369 $ 366 Commercial - single and multifamily 1 623 623 Commercial - other 6 4,804 4,804 Total 10 $ 5,796 $ 5,793 The following table discloses the recorded investment and number of modifications for TDRs within the last three and six months where a concession has been made, that then defaulted in the respective reporting period. Modifications that Subsequently Defaulted Three Months Ended June 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 668 Modifications that Subsequently Defaulted Six Months Ended June 30, 2015 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 1 $ 649 Modifications that Subsequently Defaulted Three Months Ended June 30, 2014 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 2 $ 158 Modifications that Subsequently Defaulted Six Months Ended June 30, 2014 Number of Contracts Recorded Investment Troubled Debt Restructurings Commercial - Other 2 $ 158 |
Schedule of TDR Activity | The following table presents the Company’s TDR activity for the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of the period $ 17,204 $ 10,112 Principal payments (607 ) (88 ) TDR status change (1) — (589 ) Other reductions/increases (2) (611 ) 4 Newly identified TDRs 9,730 5,674 Balance at end of the period $ 25,716 $ 15,113 Six Months Ended June 30, (In thousands) 2015 2014 Balance at beginning of the period $ 16,714 $ 10,822 Principal payments (1,091 ) (960 ) TDR status change (1) — (641 ) Other reductions/increases (2) (1,793 ) 99 Newly identified TDRs 11,886 5,793 Balance at end of the period $ 25,716 $ 15,113 _______________________________________ (1) TDR status change classification represents TDR loans with a specified interest rate equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan was on current payment status and not impaired based on the terms specified by the restructuring agreement. (2) Other reductions classification consists of transfer to other real estate owned and charge-offs and advances to loans. |
LOAN LOSS ALLOWANCE (Tables)
LOAN LOSS ALLOWANCE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of Activity in the Allowance for Loan Losses | Activity in the allowance for loan losses for the six months ended June 30, 2015 and 2014 was as follows: Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2015 Balance at beginning of period $ 6,836 $ 14,690 $ 5,206 $ 5,928 $ 135 $ 32,795 Charged-off loans 446 4,422 372 462 — 5,702 Recoveries on charged-off loans 113 146 154 127 — 540 Provision/(releases) for loan losses (32 ) 2,553 4,178 (679 ) (427 ) 5,593 Balance at end of period $ 6,471 $ 12,967 $ 9,166 $ 4,914 $ (292 ) $ 33,226 Individually evaluated for impairment 87 30 1,706 — — 1,823 Collectively evaluated 6,384 12,937 7,460 4,914 (292 ) 31,403 Total $ 6,471 $ 12,967 $ 9,166 $ 4,914 $ (292 ) $ 33,226 Business Activities Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2014 Balance at beginning of period $ 6,937 $ 13,705 $ 5,173 $ 3,644 $ 68 $ 29,527 Charged-off loans 1,159 1,645 1,426 571 — 4,801 Recoveries on charged-off loans 64 6 22 177 — 269 Provision/(releases) for loan losses (299 ) 2,389 1,396 1,597 143 5,226 Balance at end of period $ 5,543 $ 14,455 $ 5,165 $ 4,847 $ 211 $ 30,221 Individually evaluated for impairment 57 712 475 — — 1,244 Collectively evaluated 5,486 13,743 4,690 4,847 211 28,977 Total $ 5,543 $ 14,455 $ 5,165 $ 4,847 $ 211 $ 30,221 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2015 Balance at beginning of period $ 615 $ 790 $ 1,093 $ 369 $ — $ 2,867 Charged-off loans 375 587 336 608 — 1,906 Recoveries on charged-off loans 41 395 56 56 — 548 Provision for loan losses 527 1,188 160 587 — 2,462 Balance at end of period $ 808 $ 1,786 $ 973 $ 404 $ — $ 3,971 Individually evaluated for impairment 39 166 — — — 205 Collectively evaluated 769 1,620 973 404 — 3,766 Total $ 808 $ 1,786 $ 973 $ 404 $ — $ 3,971 Acquired Loans (In thousands) Residential mortgages Commercial real estate Commercial and industrial loans Consumer Unallocated Total June 30, 2014 Balance at beginning of period $ 625 $ 2,339 $ 597 $ 235 $ — $ 3,796 Charged-off loans 723 495 176 638 — 2,032 Recoveries on charged-off loans 161 1 24 23 — 209 Provision for loan losses 599 246 624 690 — 2,159 Balance at end of period $ 662 $ 2,091 $ 1,069 $ 310 $ — $ 4,132 Individually evaluated for impairment 60 306 20 — — 386 Collectively evaluated 602 1,785 1,049 310 — 3,746 Total $ 662 $ 2,091 $ 1,069 $ 310 $ — $ 4,132 |
Schedule of Loans by Risk Rating | The following table presents the Company’s loans by risk rating at June 30, 2015 and December 31, 2014: Business Activities Loans Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 1,233,607 $ 1,195,209 $ 30,247 $ 26,634 $ 1,263,854 $ 1,221,843 Special mention 1,073 146 — 410 1,073 556 Substandard 3,776 4,053 — — 3,776 4,053 Total $ 1,238,456 $ 1,199,408 $ 30,247 $ 27,044 $ 1,268,703 $ 1,226,452 Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 178,785 $ 166,295 $ 146,780 $ 137,533 $ 1,048,171 $ 959,836 $ 1,373,736 $ 1,263,664 Special mention — — 769 — 5,432 6,933 6,201 6,933 Substandard 2,372 2,894 2,167 2,517 51,705 63,995 56,244 69,406 Doubtful — — — — 73 73 73 73 Total $ 181,157 $ 169,189 $ 149,716 $ 140,050 $ 1,105,381 $ 1,030,837 $ 1,436,254 $ 1,340,076 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 339,331 $ 341,246 $ 456,713 $ 404,846 $ 796,044 $ 746,092 Special mention — — 20,047 560 20,047 560 Substandard — — 13,834 6,539 13,834 6,539 Total $ 339,331 $ 341,246 $ 490,594 $ 411,945 $ 829,925 $ 753,191 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Performing $ 293,449 $ 251,524 $ 315,209 $ 346,175 $ 608,658 $ 597,699 Nonperforming 1,429 1,157 291 305 1,720 1,462 Total $ 294,878 $ 252,681 $ 315,500 $ 346,480 $ 610,378 $ 599,161 Acquired Loans Residential Mortgages Credit Risk Profile by Internally Assigned Grade 1-4 family Construction Total residential mortgages (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 362,389 $ 266,445 $ 2,607 $ 1,018 $ 364,996 $ 267,463 Special mention 631 638 — — 631 638 Substandard 3,026 1,651 — — 3,026 1,651 Total $ 366,046 $ 268,734 $ 2,607 $ 1,018 $ 368,653 $ 269,752 Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction Single and multi-family Other Total commercial real estate (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ 40,940 $ 2,904 $ 41,080 $ 44,497 $ 356,270 $ 195,681 $ 438,290 $ 243,082 Special mention 2,020 — 625 533 9,076 4,868 11,721 5,401 Substandard 1,270 1,297 6,245 8,138 13,457 13,573 20,972 23,008 Total $ 44,230 $ 4,201 $ 47,950 $ 53,168 $ 378,803 $ 214,122 $ 470,983 $ 271,491 Commercial and Industrial Loans Credit Risk Profile by Creditworthiness Category Asset based lending Other Total comm. and industrial loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Grade: Pass $ — $ — $ 86,751 $ 45,757 $ 86,751 $ 45,757 Special mention — — 1,361 1,723 1,361 1,723 Substandard — — 3,113 3,695 3,113 3,695 Doubtful — — 40 — 40 — Total $ — $ — $ 91,265 $ 51,175 $ 91,265 $ 51,175 Consumer Loans Credit Risk Profile Based on Payment Activity Home equity Auto and other Total consumer loans (In thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Performing $ 55,547 $ 65,368 $ 151,634 $ 102,182 $ 207,181 $ 167,550 Nonperforming 728 583 544 1,169 1,272 1,752 Total $ 56,275 $ 65,951 $ 152,178 $ 103,351 $ 208,453 $ 169,302 |
Summary of Information About Total Loans Rated Special Mention or Lower | The following table summarizes information about total loans rated Special Mention or lower as of June 30, 2015 and December 31, 2014. The table below includes consumer loans that are special mention and substandard accruing that are classified in the above table as performing based on payment activity. June 30, 2015 December 31, 2014 (In thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Non-Accrual $ 13,759 $ 6,230 $ 19,989 $ 14,778 $ 6,927 $ 21,705 Substandard Accruing 63,085 22,430 85,515 66,995 23,839 90,834 Total Classified 76,844 28,660 105,504 81,773 30,766 112,539 Special Mention 27,441 14,577 42,018 9,113 8,800 17,913 Total Criticized $ 104,285 $ 43,237 $ 147,522 $ 90,886 $ 39,566 $ 130,452 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deposits [Abstract] | |
Summary of Time Deposits | A summary of time deposits is as follows: (In thousands) June 30, December 31, Time less than $100,000 $ 551,610 $ 515,570 Time $100,000 or more 1,200,314 940,176 Total time deposits $ 1,751,924 $ 1,455,746 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at June 30, 2015 and December 31, 2014 are summarized, as follows: June 30, 2015 December 31, 2014 Weighted Weighted Average Average (dollars in thousands) Principal Rate Principal Rate Short-term borrowings: Advances from the FHLBB $ 1,058,001 0.24 % $ 890,900 0.24 % Other Borrowings — — 10,000 1.80 Total short-term borrowings: 1,058,001 0.24 900,900 0.23 Long-term borrowings: Advances from the FHLBB 118,483 1.92 61,676 0.93 Subordinated borrowings 74,318 7.00 74,283 7.00 Junior subordinated borrowings 15,464 2.13 15,464 2.08 Total long-term borrowings: 208,265 3.75 151,423 4.03 Total $ 1,266,266 0.82 % $ 1,052,323 0.79 % |
Summary of Maturities of FHLBB Advances | A summary of maturities of FHLBB advances as of June 30, 2015 and December 31, 2014 is as follows: June 30, 2015 December 31, 2014 Weighted Weighted Average Average (in thousands, except rates) Principal Rate Principal Rate Fixed rate advances maturing: 2015 $ 1,067,031 0.25 % $ 940,900 0.24 % 2016 52,792 1.37 1,519 0.88 2017 33,719 2.46 5,000 4.33 2018 1,044 2.62 — — 2019 and beyond 21,898 2.72 5,157 3.85 Total FHLBB advances $ 1,176,484 0.41 % $ 952,576 0.28 % |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Actual and Required Capital Ratios | The actual and required capital ratios were as follows: June 30, Regulatory December 31, Regulatory Company (consolidated) Total capital to risk weighted assets 11.7 % 10.0 % 11.4 % 10.0 % Common Equity Tier 1 Capital to risk weighted assets 9.5 6.5 N/A N/A Tier 1 capital to risk weighted assets 9.6 8.0 9.0 6.0 Tier 1 capital to average assets 7.4 5.0 7.0 5.0 Bank Total capital to risk weighted assets 11.0 % 10.0 % 10.8 % 10.0 % Common Equity Tier 1 Capital to risk weighted assets 9.7 6.5 N/A N/A Tier 1 capital to risk weighted assets 9.7 8.0 9.3 6.0 Tier 1 capital to average assets 7.5 5.0 7.2 5.0 |
Schedule of Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive income is as follows: (In thousands) June 30, December 31, Other accumulated comprehensive income, before tax: Net unrealized holding gain on AFS securities $ 9,259 $ 15,993 Net (loss) on effective cash flow hedging derivatives (6,416 ) (3,299 ) Net unrealized holding (loss) on pension plans (3,757 ) (2,291 ) Income taxes related to items of accumulated other comprehensive income: Net unrealized holding gain on AFS securities (3,582 ) (6,077 ) Net (loss) on effective cash flow hedging derivatives 2,586 1,330 Net unrealized holding (loss) on pension plans 1,514 923 Accumulated other comprehensive income $ (396 ) $ 6,579 |
Schedule of Components of Other Comprehensive Income | The following table presents the components of other comprehensive income for the three and six months ended June 30, 2015 and 2014 : (In thousands) Before Tax Tax Effect Net of Tax Three Months Ended June 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized losses arising during the period $ (13,687 ) $ 5,243 $ (8,444 ) Less: reclassification adjustment for (gains) realized in net income (2,384 ) 857 (1,527 ) Net unrealized holding loss on AFS securities (16,071 ) 6,100 (9,971 ) Net loss on cash flow hedging derivatives: Net unrealized gain arising during the period 784 (316 ) 468 Less: reclassification adjustment for losses realized in net income — — — Net gain on cash flow hedging derivatives 784 (316 ) 468 Net unrealized holding loss on pension plans Net unrealized gain arising during the period — — — Less: reclassification adjustment for losses realized in net income 65 (26 ) 39 Net unrealized holding gain on pension plans 65 (26 ) 39 Other comprehensive loss $ (15,222 ) $ 5,758 $ (9,464 ) Three Months Ended June 30, 2014 Net unrealized holding loss on AFS securities: Net unrealized loss arising during the period $ 11,316 $ (4,344 ) $ 6,972 Less: reclassification adjustment for (gains) realized in net income (203 ) 83 (120 ) Net unrealized holding gain on AFS securities 11,113 (4,261 ) 6,852 Net loss on cash flow hedging derivatives: Net unrealized loss arising during the period (3,267 ) 1,322 (1,945 ) Less: reclassification adjustment for (gains) realized in net income — — — Net loss on cash flow hedging derivatives (3,267 ) 1,322 (1,945 ) Net gain on terminated swap: Net unrealized loss arising during the period — — — Less: reclassification adjustment for losses realized in net income — — — Net gain on terminated swap — — — Other comprehensive income $ 7,846 $ (2,939 ) $ 4,907 (In thousands) Before Tax Tax Effect Net of Tax Six Months Ended June 30, 2015 Net unrealized holding gains on AFS securities: Net unrealized losses arising during the period $ (4,316 ) $ 1,625 $ (2,691 ) Less: reclassification adjustment for (gains) realized in net income (2,418 ) 870 (1,548 ) Net unrealized holding loss on AFS securities (6,734 ) 2,495 (4,239 ) Net loss on cash flow hedging derivatives: Net unrealized loss arising during the period (3,117 ) 1,256 (1,861 ) Less: reclassification adjustment for losses realized in net income — — — Net loss on cash flow hedging derivatives (3,117 ) 1,256 (1,861 ) Net unrealized holding loss on pension plans Net unrealized loss arising during the period (1,596 ) 643 (953 ) Less: reclassification adjustment for losses realized in net income 130 (52 ) 78 Net unrealized holding loss on pension plans (1,466 ) 591 (875 ) Other comprehensive income $ (11,317 ) $ 4,342 $ (6,975 ) Six Months Ended June 30, 2014 Net unrealized holding loss on AFS securities: Net unrealized loss arising during the period $ 17,370 $ (6,576 ) $ 10,794 Less: reclassification adjustment for (gains) realized in net income (237 ) 95 (142 ) Net unrealized holding gain on AFS securities 17,133 (6,481 ) 10,652 Net loss on cash flow hedging derivatives: Net unrealized loss arising during the period (4,127 ) 1,691 (2,436 ) Less: reclassification adjustment for (gains) realized in net income 5,393 (2,201 ) 3,192 Net gain on cash flow hedging derivatives 1,266 (510 ) 756 Net gain on terminated swap: Net unrealized loss arising during the period — — — Less: reclassification adjustment for losses realized in net income 3,237 (1,312 ) 1,925 Net gain on terminated swap 3,237 (1,312 ) 1,925 Other comprehensive income $ 21,636 $ (8,303 ) $ 13,333 |
Schedule of Gross Changes in Each Component of Accumulated Other Comprehensive Income | The following table presents the changes in each component of accumulated other comprehensive income (loss), for the three and six months ended June 30, 2015 and 2014 : Net unrealized holding gain on AFS Net loss on effective cash flow hedging Net loss on terminated Net unrealized holding loss on (in thousands) Securities derivatives swap pension plans Total Three Months Ended June 30, 2015 Balance at Beginning of Period $ 15,648 $ (4,298 ) $ — $ (2,282 ) $ 9,068 Other Comprehensive (Loss) Gain Before reclassifications (8,444 ) 468 — — (7,976 ) Amounts Reclassified from Accumulated other comprehensive income (1,527 ) — — 39 (1,488 ) Total Other Comprehensive (Loss) Income (9,971 ) 468 — 39 (9,464 ) Balance at End of Period $ 5,677 $ (3,830 ) $ — $ (2,243 ) $ (396 ) Three Months Ended June 30, 2014 Balance at Beginning of Period $ (1,976 ) $ 1,335 $ — $ 10 $ (631 ) Other Comprehensive Gain (Loss) Before reclassifications 6,972 (1,945 ) — — 5,027 Amounts Reclassified from Accumulated other comprehensive income (120 ) — — — (120 ) Total Other Comprehensive Income (Loss) 6,852 (1,945 ) — — 4,907 Balance at End of Period $ 4,876 $ (610 ) $ — $ 10 $ 4,276 Six Months Ended June 30, 2015 Balance at Beginning of Period $ 9,916 $ (1,969 ) $ — $ (1,368 ) $ 6,579 Other Comprehensive (Loss) Before reclassifications (2,691 ) (1,861 ) — (953 ) (5,505 ) Amounts Reclassified from Accumulated other comprehensive income (1,548 ) — — 78 (1,470 ) Total Other Comprehensive (Loss) (4,239 ) (1,861 ) — (875 ) (6,975 ) Balance at End of Period $ 5,677 $ (3,830 ) $ — $ (2,243 ) $ (396 ) Six Months Ended June 30, 2014 Balance at Beginning of Period $ (5,776 ) $ (1,366 ) $ (1,925 ) $ 10 $ (9,057 ) Other Comprehensive Gain (Loss) Before reclassifications 10,794 (2,436 ) — — 8,358 Amounts Reclassified from Accumulated other comprehensive income (142 ) 3,192 1,925 — 4,975 Total Other Comprehensive Income 10,652 756 1,925 — 13,333 Balance at End of Period $ 4,876 $ (610 ) $ — $ 10 $ 4,276 |
Schedule of Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income | The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 : Affected Line Item in the Three Months Ended June 30, Statement where Net Income (in thousands) 2015 2014 is Presented Realized (gains) on AFS securities: $ (2,384 ) $ (203 ) Non-interest income 857 83 Tax expense (1,527 ) (120 ) Net of tax Realized losses on cash flow hedging derivatives: — — Non-interest income — — Tax expense — — Net of tax Amortization of realized gains on terminated swap: — — Non-interest income — — Tax expense — — Net of tax Realized loss on pension plans: 65 — Non-interest income (26 ) — Tax expense 39 — Net of tax Total reclassifications for the period $ (1,488 ) $ (120 ) Net of tax Affected Line Item in the Six Months Ended June 30, Statement where Net Income (in thousands) 2015 2014 is Presented Realized (gains) on AFS securities: $ (2,418 ) $ (237 ) Non-interest income 870 95 Tax expense (1,548 ) (142 ) Net of tax Realized losses on cash flow hedging derivatives: — 5,393 Non-interest income — (2,201 ) Tax expense — 3,192 Net of tax Amortization of realized gains on terminated swap: — 3,237 Non-interest income — (1,312 ) Tax expense — 1,925 Net of tax Realized loss on pension plans: 130 — Non-interest income (52 ) — Tax expense 78 — Net of tax Total reclassifications for the period $ (1,470 ) $ 4,975 Net of tax |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2015 2014 2015 2014 Net income $ 10,044 $ 11,464 $ 18,803 $ 10,358 Average number of common shares issued 29,975 26,525 28,260 26,525 Less: average number of treasury shares 1,193 1,417 1,244 1,421 Less: average number of unvested stock award shares 481 393 459 397 Average number of basic common shares outstanding 28,301 24,715 26,557 24,707 Plus: dilutive effect of unvested stock award shares 94 44 91 55 Plus: dilutive effect of stock options outstanding 66 50 65 59 Average number of diluted common shares outstanding 28,461 24,809 26,713 24,821 Earnings per share: Basic $ 0.35 $ 0.46 $ 0.71 $ 0.42 Diluted $ 0.35 $ 0.46 $ 0.70 $ 0.42 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity in the Stock Award and Stock Option Plans | A combined summary of activity in the Company’s stock award and stock option plans for the six months ended June 30, 2015 is presented in the following table: Non-vested Stock Awards Outstanding Stock Options Outstanding Weighted- Weighted- Number of Average Grant Date Number of Average Exercise (Shares in thousands) Shares Fair Value Shares Price December 31, 2014 424 $ 24.33 282 $ 20.42 Granted 174 26.33 — — Stock options exercised — — (11 ) 10.52 Stock awards vested (86 ) 24.28 — — Forfeited (11 ) 23.64 — — Expired — — — — June 30, 2015 501 $ 24.92 271 $ 21.12 Exercisable options, June 30, 2015 271 $ 21.12 |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of the Operating Segments | A summary of the Company’s operating segments was as follows: (In thousands) Banking Insurance Parent Eliminations Total Consolidated Three Months Ended June 30, 2015 Net interest income $ 53,480 $ — $ 5,157 $ (6,000 ) $ 52,637 Provision for loan losses 4,204 — — — 4,204 Non-interest income 14,096 2,486 7,445 (7,247 ) 16,780 Non-interest expense 47,531 1,901 4,591 2 54,025 Income before income taxes 15,841 585 8,011 (13,249 ) 11,188 Income tax expense (benefit) 2,951 227 (2,033 ) (1 ) 1,144 Net income $ 12,890 $ 358 $ 10,044 $ (13,248 ) $ 10,044 Average assets (in millions) $ 7,191 $ 29 $ 884 $ (909 ) $ 7,195 Three Months Ended June 30, 2014 Net interest income (expense) $ 45,244 $ — $ (915 ) $ — $ 44,329 Provision for loan losses 3,989 — — — 3,989 Non-interest income 12,046 2,460 12,272 (12,272 ) 14,506 Non-interest expense 36,970 1,887 406 — 39,263 Income before income taxes 16,331 573 10,951 (12,272 ) 15,583 Income tax expense (benefit) 4,409 223 (513 ) — 4,119 Net income $ 11,922 $ 350 $ 11,464 $ (12,272 ) $ 11,464 Average assets (in millions) $ 6,111 $ 27 $ 744 $ (736 ) $ 6,146 Six Months Ended June 30, 2015 Net interest income $ 99,819 $ — $ 10,311 $ (12,000 ) $ 98,130 Provision for loan losses 8,055 — — — 8,055 Non-interest income 23,509 5,453 11,229 (10,849 ) 29,342 Non-interest expense 90,025 3,841 5,305 2 99,173 Income before income taxes 25,248 1,612 16,235 (22,851 ) 20,244 Income tax expense (benefit) 3,384 626 (2,568 ) (1 ) 1,441 Net income $ 21,864 $ 986 $ 18,803 $ (22,850 ) $ 18,803 Average assets (in millions) $ 6,837 $ 29 $ 821 $ (841 ) $ 6,846 Six Months Ended June 30, 2014 Net interest income (expense) $ 88,954 $ — $ (1,859 ) $ — $ 87,095 Provision for loan losses 7,385 — — — 7,385 Non-interest income 13,420 5,509 12,020 (12,020 ) 18,929 Non-interest expense 79,543 4,209 871 — 84,623 Income before income taxes 15,446 1,300 9,290 (12,020 ) 14,016 Income tax expense (benefit) 4,217 509 (1,068 ) — 3,658 Net income $ 11,229 $ 791 $ 10,358 $ (12,020 ) $ 10,358 Average assets (in millions) $ 5,971 $ 26 $ 733 $ (732 ) $ 5,998 |
DERIVATIVE INSTRUMENTS AND HE36
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities | Information about derivative assets and liabilities at June 30, 2015 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Forward-starting interest rate swaps on FHLBB borrowings $ 300,000 3.8 — % 2.29 % $ (6,416 ) Total cash flow hedges 300,000 (6,416 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 12,272 14.4 0.52 % 5.09 % (2,326 ) Interest rate swaps on loans with commercial loan customers 340,147 6.6 1.74 % 4.54 % (11,471 ) Reverse interest rate swaps on loans with commercial loan customers 340,147 6.6 4.54 % 1.74 % 11,567 Risk Participation Agreements with Dealer Banks 48,801 15.7 (69 ) Forward sale commitments 82,640 0.2 475 Total economic hedges 824,007 (1,824 ) Non-hedging derivatives: Interest rate lock commitments 55,749 0.2 382 Total non-hedging derivatives 55,749 382 Total $ 1,179,756 $ (7,858 ) Information about derivative assets and liabilities at December 31, 2014 , follows: Weighted Weighted Average Rate Estimated Notional Average Contract Fair Value Amount Maturity Received pay rate Asset (Liability) (In thousands) (In years) (In thousands) Cash flow hedges: Forward-starting interest rate swaps on FHLBB borrowings $ 300,000 4.3 — % 2.29 % $ (3,299 ) Total cash flow hedges 300,000 (3,299 ) Economic hedges: Interest rate swap on tax advantaged economic development bond 12,554 14.9 0.52 % 5.09 % (2,578 ) Interest rate swaps on loans with commercial loan customers 297,158 6.0 2.23 % 4.54 % (12,183 ) Reverse interest rate swaps on loans with commercial loan customers 297,158 6.0 4.54 % 2.23 % 12,221 Risk participation agreements with dealer banks 45,842 16.6 (91 ) Forward sale commitments 42,366 0.2 (510 ) Total economic hedges 695,078 (3,141 ) Non-hedging derivatives: Interest rate lock commitments 39,589 0.2 625 Total non-hedging derivatives 39,589 625 Total $ 1,034,667 $ (5,815 ) |
Schedule of Amounts Included in the Consolidated Statements of Income and in the Other Comprehensive Income Section of the Consolidated Statements of Comprehensive Income | Amounts included in the Consolidated Statements of Income and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Interest rate swaps on FHLBB borrowings: Unrealized gain (loss) recognized in accumulated other comprehensive loss $ 784 $ (3,343 ) $ (3,117 ) $ (4,127 ) Reclassification of unrealized loss from accumulated other comprehensive income to other non-interest income for termination of swaps — — — 8,630 Reclassification of unrealized deferred tax benefit from accumulated other comprehensive income to tax expense for terminated swaps — — — (3,611 ) Net tax benefit (expense) on items recognized in accumulated other comprehensive income (316 ) 1,352 1,256 1,666 Interest rate swaps on junior subordinated debentures: Unrealized loss recognized in accumulated other comprehensive income — — — (1 ) Reclassification of unrealized loss from accumulated other comprehensive income to interest expense — 75 — 204 Net tax expense on items recognized in accumulated other comprehensive income — (29 ) — (80 ) Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects $ 468 $ (1,945 ) $ (1,861 ) $ 2,681 Net interest expense recognized in interest expense on junior subordinated notes $ — $ 75 $ — $ 204 |
Schedule of Amounts Included in the Consolidated Statements of Income Related to Economic Hedges and Non-Hedging Derivatives | Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Economic hedges Interest rate swap on industrial revenue bond: Unrealized gain (loss) recognized in other non-interest income $ 331 $ (350 ) $ 60 $ (731 ) Interest rate swaps on loans with commercial loan customers: Unrealized (loss) gain recognized in other non-interest income 3,889 (1,919 ) 775 (1,732 ) Reverse interest rate swaps on loans with commercial loan customers: Unrealized loss recognized in other non-interest income (3,889 ) 1,919 (775 ) 1,732 Favorable (Unfavorable) change in credit valuation adjustment recognized in other non-interest income 56 4 57 11 Risk Participation Agreements: Unrealized gain recognized in other non-interest income 31 — (40 ) — Forward Commitments: Unrealized gain (loss) recognized in other non-interest income 475 (561 ) 87 (669 ) Realized gain (loss) in other non-interest income 504 (177 ) 413 (341 ) Non-hedging derivatives Interest rate lock commitments Unrealized gain recognized in other non-interest income $ 382 $ 660 $ 1,359 $ 1,037 Realized gain in other non-interest income 186 769 941 1,035 |
Schedule of Assets Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Assets and Derivative Assets Gross Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Assets Condition Condition Instruments Collateral Received Net Amount December 31, 2014 Interest Rate Swap Agreements: Institutional counterparties $ 23 $ — $ 23 $ — $ — $ 23 Commercial counterparties 12,270 — 12,270 — — 12,270 Total $ 12,293 $ — $ 12,293 $ — $ — $ 12,293 Offsetting of Financial Assets and Derivative Assets Gross Amounts of Gross Amounts Offset in the Net Amounts of Assets Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Assets Condition Condition Instruments Collateral Received Net Amount June 30, 2015 Interest Rate Swap Agreements: Institutional counterparties $ 27 $ — $ 27 $ — $ — $ 27 Commercial counterparties 11,585 — 11,585 — — 11,585 Total $ 11,612 $ — $ 11,612 $ — $ — $ 11,612 |
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount December 31, 2014 Interest Rate Swap Agreements: Institutional counterparties $ (18,232 ) $ 58 $ (18,174 ) $ 14,984 $ 3,190 $ — Commercial counterparties (50 ) — (50 ) — — (50 ) Total $ (18,282 ) $ 58 $ (18,224 ) $ 14,984 $ 3,190 $ (50 ) Offsetting of Financial Liabilities and Derivative Liabilities Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented in the Gross Amounts Not Offset in the Statements of Condition Recognized Statements of Statements of Financial Cash (in thousands) Liabilities Condition Condition Instruments Collateral Pledged Net Amount June 30, 2015 Interest Rate Swap Agreements: Institutional counterparties $ (16,421 ) $ 5 $ (16,416 ) $ 10,596 $ 5,820 $ — Commercial counterparties (18 ) — (18 ) — — (18 ) Total $ (16,439 ) $ 5 $ (16,434 ) $ 10,596 $ 5,820 $ (18 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis Segregated by the Level of the Valuation Inputs Within the Fair Value Hierarchy Utilized to Measure Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. June 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,378 $ 14,378 Available-for-sale securities: Municipal bonds and obligations — 150,301 — 150,301 Government guaranteed residential mortgage-backed securities — 61,867 — 61,867 Government-sponsored residential mortgage-backed securities — 889,698 — 889,698 Corporate bonds — 50,758 — 50,758 Trust preferred securities — 13,265 — 13,265 Other bonds and obligations — 3,167 — 3,167 Marketable equity securities 33,983 944 773 35,700 Loans held for sale (1) — 37,324 — 37,324 Derivative assets 425 11,610 431 12,466 Derivative liabilities — 20,326 — 20,326 (1) Loans held for sale excludes $11.2 million of loans for sale held shown on the balance sheet that is held at lower of cost or market. December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Inputs Inputs Inputs Fair Value Trading security $ — $ — $ 14,909 $ 14,909 Available-for-sale securities: Municipal bonds and obligations — 133,699 — 133,699 Government guaranteed residential mortgage-backed securities — 69,468 — 69,468 Government-sponsored residential mortgage-backed securities — 760,184 — 760,184 Corporate bonds — 54,151 — 54,151 Trust preferred securities — 14,667 1,548 16,215 Other bonds and obligations — 3,159 — 3,159 Marketable equity securities 53,806 358 778 54,942 Loans Held for Sale — 19,493 — 19,493 Derivative assets — 12,328 625 12,953 Derivative liabilities 417 18,259 93 18,769 |
Schedule of Loans Held for Sale | Aggregate Fair Value June 30, 2015 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale (1) $ 37,324 $ 36,787 $ 537 (1) Loans held for sale excludes $11.2 million of loans for sale held shown on the balance sheet that is held at lower of cost or market. Aggregate Fair Value December 31, 2014 Aggregate Aggregate Less Aggregate (In thousands) Fair Value Unpaid Principal Unpaid Principal Loans Held for Sale $ 19,493 $ 18,885 $ 608 |
Schedule of Changes in Level 3 Assets and Liabilities That Were Measured at Fair Value on a Recurring Basis | The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis for the three and six months ended June 30, 2015 and 2014 . Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended June 30, 2015 March 31, 2015 $ 14,970 $ 719 $ 977 $ (93 ) Sale of AFS security — — — — Unrealized (loss) gain, net recognized in other non-interest income (451 ) — 941 — Unrealized gain included in accumulated other comprehensive loss — 54 — 143 Paydown of trading security (141 ) — — — Transfers to held for sale loans — — (1,536 ) — June 30, 2015 $ 14,378 $ 773 $ 382 $ 50 Six Months Ended June 30, 2015 December 31, 2014 $ 14,909 $ 2,326 $ 625 $ (93 ) Sale of AFS security — (1,327 ) — — Unrealized (loss) gain, net recognized in other non-interest income (248 ) — 2,671 — Unrealized gain included in accumulated other comprehensive loss — (226 ) — 143 Paydown of trading security (283 ) — — — Transfers to held for sale loans — — (2,914 ) — June 30, 2015 $ 14,378 $ 773 $ 382 $ 50 Unrealized gains (losses) relating to instruments still held at June 30, 2015 $ 2,106 $ 3 $ 382 $ 50 Assets (Liabilities) Securities Interest Rate Trading Available Lock Forward (In thousands) Security for Sale Commitments Commitments Three Months Ended June 30, 2014 March 31, 2014 $ 14,923 $ 2,046 $ 377 $ (96 ) Purchase of Marketable Equity Security — — — — Unrealized (loss) gain, net recognized in other non-interest income 181 — 1,075 (67 ) Unrealized gain included in accumulated other comprehensive loss — 171 — — Paydown of trading account security (133 ) — — — Transfers to held for sale loans — — (792 ) — June 30, 2014 $ 14,971 $ 2,217 $ 660 $ (163 ) Six Months Ended June 30, 2014 December 31, 2013 $ 14,840 $ 1,964 $ 258 $ 19 Purchase of Marketable Equity Security — — — — Unrealized (loss) gain, net recognized in other non-interest income 399 — 1,794 (182 ) Unrealized gain included in accumulated other comprehensive loss — 253 — — Paydown of trading account security (268 ) — — — Transfers to held for sale loans — — (1,392 ) — June 30, 2014 $ 14,971 $ 2,217 $ 660 $ (163 ) Unrealized gains (losses) relating to instruments still held at June 30, 2014 $ 2,144 $ (1,118 ) $ 660 $ (163 ) |
Summary of Applicable Non-Recurring Fair Value Measurements | Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets is as follows: Fair Value (in thousands) June 30, 2015 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 6,659 Fair value of collateral Loss severity 0.41% to 38.41% (9.15%) Appraised value $2.7 to $2,272.0 ($491.6) Capitalized mortgage servicing rights 4,697 Discounted cash flow Constant prepayment rate (CPR) 7.67% to 21.08% (10.43%) Discount rate 10.00% to 13.00% (10.58%) Other real estate owned 674 Fair value of collateral Appraised value $57 to $700.0 ($595.6) Total $ 12,030 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value (in thousands) December 31, 2014 Valuation Techniques Unobservable Inputs Range (Weighted Average) (a) Assets Impaired loans $ 5,820 Fair value of collateral Loss severity 0.31% to 38.7% (12.65%) Appraised value $5 to $1,600.0 ($912.7) Capitalized mortgage servicing rights 3,757 Discounted cash flow Constant prepayment rate (CPR) 7.83% to 19.00% (9.92%) Discount rate 10.00% to 13.00% (10.43%) Other real estate owned 2,049 Fair value of collateral Appraised value $57 to $700.0 ($462.6) Total $ 11,626 (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. |
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments | The estimated fair values, and related carrying amounts, of the Company’s financial instruments follow. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. June 30, 2015 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 205,518 $ 205,518 $ 205,518 $ — $ — Trading security 14,378 14,378 — — 14,378 Securities available for sale 1,204,756 1,204,756 33,983 1,170,000 773 Securities held to maturity 86,994 87,512 — — 87,512 FHLB bank stock and restricted securities 73,212 73,212 — 73,212 — Net loans 5,247,417 5,293,778 — — 5,293,778 Loans held for sale 48,514 48,514 — 48,514 — Accrued interest receivable 19,120 19,120 — 19,120 — Cash surrender value of bank-owned life insurance policies 123,536 123,536 — 123,536 — Derivative assets 12,466 12,466 425 11,610 431 Assets held for sale 2,519 2,519 — 2,519 — Financial Liabilities Total deposits $ 5,322,176 $ 5,324,354 $ — $ 5,324,354 $ — Short-term debt 1,058,001 1,058,162 — 1,058,162 — Long-term Federal Home Loan Bank advances 118,483 121,809 — 121,809 — Subordinated borrowings 89,782 94,320 — 94,320 — Derivative liabilities 20,326 20,326 — 20,326 — December 31, 2014 Carrying Fair (In thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 71,754 $ 71,754 $ 71,754 $ — $ — Trading security 14,909 14,909 — — 14,909 Securities available for sale 1,091,818 1,091,818 5,806 1,035,686 2,326 Securities held to maturity 43,347 44,997 — — 44,997 FHLB bank stock and restricted securities 55,720 55,720 — 55,720 — Net loans 4,644,938 4,695,256 — — 4,695,256 Loans held for sale 19,493 19,493 — 19,493 — Accrued interest receivable 17,274 17,274 — 17,274 — Cash surrender value of bank-owned life insurance policies 104,588 104,588 — 104,588 — Derivative assets 12,953 12,953 — 12,328 625 Assets held for sale 1,280 1,280 — 1,280 — Financial Liabilities Total deposits $ 4,654,679 $ 4,655,234 $ — $ 4,655,234 $ — Short-term debt 900,900 900,983 — 900,983 — Long-term Federal Home Loan Bank advances 61,676 63,283 — 63,283 — Subordinated borrowings 89,747 93,441 — 93,441 — Derivative liabilities 18,769 18,769 417 18,259 93 |
Recurring | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3 | Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: Fair Value Significant Unobservable Input (In thousands) June 30, 2015 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,378 Discounted Cash Flow Discount Rate 2.73 % AFS Securities 773 Pricing Model Median Peer Price/Tangible Book Value Percentage Multiple 99.02 % Forward Commitments 50 Historical Trend Closing Ratio 92.11 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 382 Historical Trend Closing Ratio 92.11 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 15,583 Fair Value Significant Unobservable Input (In thousands) December 31, 2014 Valuation Techniques Unobservable Inputs Value Assets (Liabilities) Trading Security $ 14,909 Discounted Cash Flow Discount Rate 2.60 % AFS Securities 2,326 Discounted Cash Flow Discount Rate 13.74 % Credit Spread 11.06 % Forward Commitments (93 ) Historical Trend Closing Ratio 91.07 % Pricing Model Origination Costs, per loan $ 2,500 Interest Rate Lock Commitment 625 Historical Trend Closing Ratio 91.07 % Pricing Model Origination Costs, per loan $ 2,500 Total $ 17,767 |
Non-recurring | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3 | June 30, 2015 December 31, 2014 Six months ended Fair Value Measurement Date Level 3 Level 3 Total Level 3 (In thousands) Inputs Inputs Gains (Losses) Inputs Assets Impaired loans $ 6,659 $ 5,820 $ 839 June 2015 Capitalized mortgage servicing rights 4,697 3,757 — May 2015 Other real estate owned 674 2,049 (285 ) March 2013 - July 2014 Total $ 12,030 $ 11,626 $ 554 |
NET INTEREST INCOME AFTER PRO38
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Net Interest Income After Provision for Loan Losses | Presented below is net interest income after provision for loan losses for the three months ended June 30, 2015 and 2014, respectively. Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Net interest income $ 52,637 $ 44,329 $ 98,130 $ 87,095 Provision for loan losses 4,204 3,989 8,055 7,385 Net interest income after provision for loan losses $ 48,433 $ 40,340 $ 90,075 $ 79,710 |
BRANCH ACQUISITION - NARRATIVE
BRANCH ACQUISITION - NARRATIVE (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Apr. 17, 2015USD ($)subsidiarybranch$ / sharesshares | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Business Acquisition [Line Items] | ||||
Fair value of Hampden shares previously owned by the Company prior to acquisition | $ 4,600 | |||
Pro forma estimated tax rate | 40.50% | 40.50% | ||
Hampden Bancorp Inc | ||||
Business Acquisition [Line Items] | ||||
Acquisition related costs | $ 7,700 | |||
Hampden Bancorp Inc | ||||
Business Acquisition [Line Items] | ||||
Number of banking subsidiaries (subsidiary) | subsidiary | 1 | |||
Number of retail bank branches acquired (branches) | branch | 10 | |||
Business combination, number of acquiree shares outstanding, net of shares owned by acquirer (shares) | shares | 5,167 | |||
Business combination, number of acquiree shares outstanding, owned by acquirer (shares) | shares | 209 | |||
Stock issued during period, shares, acquisitions (shares) | shares | [1] | 4,355 | ||
Business combination, number of shares issued, conversion of acquiree stock | 0.81 | |||
Shares issued, price per share (USD per share) | $ / shares | $ 27.38 | |||
Berkshire Hills Bancorp common stock issued to Hampden common stockholders | $ 114,604 | |||
Fair value of Hampden shares previously owned by the Company prior to acquisition | 4,600 | |||
Business combination, step acquisition, equity interest in acquiree, remeasurement gain | $ 2,200 | |||
Acquisition related costs | $ 8,000 | $ 0 | ||
Hampden Bancorp Inc | Core Deposits | ||||
Business Acquisition [Line Items] | ||||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | |||
Hampden Bancorp Inc | Hampden Bank Shareholders | ||||
Business Acquisition [Line Items] | ||||
Stock issued during period, shares, acquisitions (shares) | shares | [1] | 4,186 | ||
Hampden Bancorp Inc | Berkshire Bank | ||||
Business Acquisition [Line Items] | ||||
Stock issued during period, shares, acquisitions (shares) | shares | [1] | 169 | ||
[1] | The Company's common stock includes the elimination of $4.6 million of Berkshire Hills Bancorp stock held by a subsidiary. |
BRANCH ACQUISITION - CONSIDERAT
BRANCH ACQUISITION - CONSIDERATION PAID AND ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Thousands | Apr. 17, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | |||
Investment securities | $ 1,379,340 | $ 1,205,794 | |
Loans | 5,284,614 | 4,680,600 | |
Premises and equipment, net | 87,519 | 87,279 | |
Deferred tax assets, net | 39,565 | 28,776 | |
Other assets | 66,148 | 61,090 | |
Liabilities | |||
Deposits | 5,322,176 | 4,654,679 | |
Borrowings | 1,266,266 | 1,052,323 | |
Other liabilities | 103,154 | 85,742 | |
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||
Goodwill | 308,043 | 264,742 | |
Business combination, fair value adjustment, other real estate owned | $ (674) | $ (2,049) | |
Hampden Bancorp Inc | |||
Assets | |||
Cash and short-term investments | $ 83,134 | ||
Investment securities | 72,439 | ||
Loans | 501,870 | ||
Premises and equipment, net | 4,449 | ||
Core deposit intangibles | 0 | ||
Deferred tax assets, net | 3,875 | ||
Other assets | 22,919 | ||
Liabilities | |||
Deposits | 482,130 | ||
Borrowings | 117,135 | ||
Other liabilities | 8,395 | ||
Net Assets | 81,026 | ||
Hampden Bancorp Inc | |||
Business Acquisition [Line Items] | |||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Carrying Amount, Net | 28,500 | ||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value | 16,700 | ||
Net loans | 477,100 | ||
Consideration paid: | |||
Berkshire Hills Bancorp common stock issued to Hampden common stockholders | 114,604 | ||
Fair value of Hampden shares previously owned by the Company prior to acquisition | 4,632 | ||
Total consideration paid | 119,236 | ||
Assets | |||
Loans | 473,400 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||
Cash and short-term investments | 83,134 | ||
Investment securities | 72,215 | ||
Loans | 493,769 | ||
Premises and equipment | 5,224 | ||
Core deposit intangibles | 2,780 | ||
Deferred tax assets, net | 6,966 | ||
Other assets | 23,479 | ||
Deposits | (483,569) | ||
Borrowings | (119,515) | ||
Other liabilities | (8,519) | ||
Total identifiable net assets | 75,964 | ||
Goodwill | 43,272 | ||
Business combination, fair value adjustment, financial assets, fair value discount adjustment | $ 3,950 | ||
Business combination, fair value adjustment, deposit liability, amortization period | 2 years | ||
Hampden Bancorp Inc | Core Deposits | |||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||
Acquired finite-lived intangible assets, weighted average useful life | 9 years | ||
Hampden Bancorp Inc | Fair Value Adjustment | |||
Assets | |||
Cash and short-term investments | $ 0 | ||
Investment securities | (224) | ||
Loans | (8,101) | ||
Premises and equipment, net | 775 | ||
Core deposit intangibles | 2,780 | ||
Deferred tax assets, net | 3,091 | ||
Other assets | 560 | ||
Liabilities | |||
Deposits | 1,439 | ||
Borrowings | 2,380 | ||
Other liabilities | 124 | ||
Net Assets | $ (5,062) | ||
Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value: | |||
Business combination, fair value adjustment, financial assets, fair value discount, amortization period | 5 years | ||
Business combination, fair value adjustment, financial assets, fair value premium | $ 400 | ||
Business combination, fair value adjustment, other real estate owned | 200 | ||
Business combination, fair value adjustment, mortgage servicing asset | 300 | ||
Business combination, fair value adjustment, prepaid expenses | 500 | ||
Business combination, fair value adjustment, income tax receivable | 1,600 | ||
Business combination, fair value adjustment, deferred revenue | 400 | ||
Business combination, fair value adjustment, post-retirement liability | 300 | ||
Business combination, fair value adjustment, non-level lease liability | $ 200 |
BRANCH ACQUISITION - LOAN PORTF
BRANCH ACQUISITION - LOAN PORTFOLIO ACQUIRED (Details) - Hampden Bancorp Inc $ in Thousands | Apr. 17, 2015USD ($) |
Business Acquisition [Line Items] | |
Gross contractual receivable amounts at acquisition | $ 28,505 |
Contractual cash flows not expected to be collected (nonaccretable discount) | (7,884) |
Expected cash flows at acquisition | 20,621 |
Interest component of expected cash flows (accretable discount) | (3,950) |
Fair value of acquired loans | $ 16,671 |
BRANCH ACQUISITION - PRO FORMA
BRANCH ACQUISITION - PRO FORMA INFORMATION (Details) - Hampden Bancorp Inc - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 105,076 | $ 98,639 |
Non-interest income | 28,010 | 20,708 |
Net income | $ 22,244 | $ 13,435 |
Pro forma earnings per share, basic (USD per share) | $ 0.77 | $ 0.46 |
Pro forma earnings per share, diluted (USD per share) | $ 0.76 | $ 0.46 |
TRADING SECURITY (Details)
TRADING SECURITY (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Trading Securities [Abstract] | ||
Amortized cost | $ 12,300,000 | $ 12,600,000 |
Fair value | 14,378,000 | $ 14,909,000 |
Amount of other securities in the trading portfolio | $ 0 |
SECURITIES AVAILABLE FOR SALE44
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | $ 1,163,881 | $ 1,026,831 |
Available-for-sale debt securities, accumulated gross unrealized gain | 12,469 | 15,922 |
Available-for-sale debt securities, accumulated gross unrealized loss | (7,294) | (5,877) |
Available-for-sale securities, debt securities | 1,169,056 | 1,036,876 |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale equity securities, amortized cost basis | 31,616 | 48,993 |
Available-for-sale equity securities, accumulated gross unrealized gain | 5,998 | 7,322 |
Available-for-sale equity securities, accumulated gross unrealized loss | (1,914) | (1,373) |
Available-for-sale securities, equity securities | 35,700 | 54,942 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||
Available-for-sale securities, amortized cost basis | 1,195,497 | 1,075,824 |
Available-for-sale securities, accumulated gross unrealized gain | 18,467 | 23,244 |
Available-for-sale securities, accumulated gross unrealized loss | (9,208) | (7,250) |
Available for sale securities | 1,204,756 | 1,091,818 |
Securities held to maturity | ||
Held to maturity, amortized cost basis | 86,994 | 43,347 |
Held to maturity securities accumulated unrecognized holding gains | 1,537 | 1,684 |
Held to maturity securities, accumulated unrecognized holding loss | (1,019) | (34) |
Securities held to maturity, fair value | 87,512 | 44,997 |
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||
Held to maturity and available for sale securities, amortized cost basis | 1,282,491 | 1,119,171 |
Held to maturity and available for sale securities, gross unrealized gain | 20,004 | 24,928 |
Held to maturity and available for sale securities, gross unrealized loss | (10,227) | (7,284) |
Held to maturity and available for sale securities, fair value | 1,292,268 | 1,136,815 |
Municipal bonds and obligations | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 49,343 | 4,997 |
Held to maturity securities accumulated unrecognized holding gains | 25 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | (992) | 0 |
Securities held to maturity, fair value | 48,376 | 4,997 |
Government-sponsored residential mortgage-backed securities | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 69 | 70 |
Held to maturity securities accumulated unrecognized holding gains | 3 | 4 |
Held to maturity securities, accumulated unrecognized holding loss | 0 | 0 |
Securities held to maturity, fair value | 72 | 74 |
Tax advantaged economic development bonds | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 37,251 | 37,948 |
Held to maturity securities accumulated unrecognized holding gains | 1,509 | 1,680 |
Held to maturity securities, accumulated unrecognized holding loss | (27) | (34) |
Securities held to maturity, fair value | 38,733 | 39,594 |
Other bonds and obligations | ||
Securities held to maturity | ||
Held to maturity, amortized cost basis | 331 | 332 |
Held to maturity securities accumulated unrecognized holding gains | 0 | 0 |
Held to maturity securities, accumulated unrecognized holding loss | 0 | 0 |
Securities held to maturity, fair value | 331 | 332 |
Municipal bonds and obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 147,779 | 127,014 |
Available-for-sale debt securities, accumulated gross unrealized gain | 4,226 | 6,859 |
Available-for-sale debt securities, accumulated gross unrealized loss | (1,704) | (174) |
Available-for-sale securities, debt securities | 150,301 | 133,699 |
Government-guaranteed residential mortgage-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 61,533 | 68,972 |
Available-for-sale debt securities, accumulated gross unrealized gain | 511 | 702 |
Available-for-sale debt securities, accumulated gross unrealized loss | (177) | (206) |
Available-for-sale securities, debt securities | 61,867 | 69,468 |
Government-sponsored residential mortgage-backed securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 886,974 | 755,893 |
Available-for-sale debt securities, accumulated gross unrealized gain | 7,005 | 7,421 |
Available-for-sale debt securities, accumulated gross unrealized loss | (4,281) | (3,130) |
Available-for-sale securities, debt securities | 889,698 | 760,184 |
Corporate bonds | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 51,651 | 55,134 |
Available-for-sale debt securities, accumulated gross unrealized gain | 137 | 120 |
Available-for-sale debt securities, accumulated gross unrealized loss | (1,030) | (1,103) |
Available-for-sale securities, debt securities | 50,758 | 54,151 |
Trust preferred securities | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 12,747 | 16,607 |
Available-for-sale debt securities, accumulated gross unrealized gain | 590 | 820 |
Available-for-sale debt securities, accumulated gross unrealized loss | (72) | (1,212) |
Available-for-sale securities, debt securities | 13,265 | 16,215 |
Other bonds and obligations | ||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||
Available-for-sale debt securities, amortized cost basis | 3,197 | 3,211 |
Available-for-sale debt securities, accumulated gross unrealized gain | 0 | 0 |
Available-for-sale debt securities, accumulated gross unrealized loss | (30) | (52) |
Available-for-sale securities, debt securities | $ 3,167 | $ 3,159 |
SECURITIES AVAILABLE FOR SALE45
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 31,405 | |
Over 1 year to 5 years | 1,255 | |
Over 5 years to 10 years | 12,364 | |
Over 10 years | 170,350 | |
Total bonds and obligations | 215,374 | |
Marketable equity securities | 31,616 | $ 48,993 |
Residential mortgage-backed securities | 948,507 | |
Available-for-sale securities, amortized cost basis | 1,195,497 | 1,075,824 |
Available for sale, Fair Value | ||
Within 1 year | 30,472 | |
Over 1 year to 5 years | 1,270 | |
Over 5 years to 10 years | 12,590 | |
Over 10 years | 173,159 | |
Total bonds and obligations | 217,491 | |
Marketable equity securities | 35,700 | 54,942 |
Residential mortgage-backed securities | 951,565 | |
Available for sale securities | 1,204,756 | 1,091,818 |
Held to maturity, Amortized Cost | ||
Within 1 year | 4,320 | |
Over 1 year to 5 years | 18,924 | |
Over 5 years to 10 years | 12,904 | |
Over 10 years | 50,777 | |
Total bonds and obligations | 86,925 | |
Residential mortgage-backed securities | 69 | |
Held to maturity, amortized cost basis | 86,994 | 43,347 |
Held to maturity, Fair Value | ||
Within 1 year | 4,320 | |
Over 1 year to 5 years | 19,751 | |
Over 5 years to 10 years | 13,066 | |
Over 10 years | 50,303 | |
Total bonds and obligations | 87,440 | |
Residential mortgage-backed securities | 72 | |
Fair Value | $ 87,512 | $ 44,997 |
SECURITIES AVAILABLE FOR SALE46
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | $ 5,944 | $ 2,497 |
Available for sale securities, over twelve months, gross unrealized losses | 3,264 | 4,753 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 9,208 | 7,250 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 217,258 | 89,203 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 205,270 | 201,604 |
Available for sale securities, continuous unrealized loss position, fair value | 422,528 | 290,807 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 203 | 0 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 816 | 34 |
Held to maturity securities, accumulated unrecognized holding loss | 1,019 | 34 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 12,727 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 30,981 | 7,972 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 43,708 | 7,972 |
Securities available for sale and held to maturity | ||
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, aggregate losses | 6,147 | 2,497 |
Held to maturity and available for sale securities continuous unrealized loss position, less than twelve months, fair value | 229,985 | 89,203 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, aggregate losses | 4,080 | 4,787 |
Held to maturity and available for sale securities continuous unrealized loss position, over twelve months, fair value | 236,251 | 209,576 |
Held to maturity and available for sale securities continuous unrealized loss position, aggregate losses | 10,227 | 7,284 |
Held to maturity and available for sale securities continuous unrealized loss position, fair value | 466,236 | 298,779 |
Debt securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 4,073 | 1,458 |
Available for sale securities, over twelve months, gross unrealized losses | 3,221 | 4,419 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 7,294 | 5,877 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 208,286 | 79,301 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 204,971 | 196,849 |
Available for sale securities, continuous unrealized loss position, fair value | 413,257 | 276,150 |
Debt securities | Municipal bonds and obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 618 | 8 |
Available for sale securities, over twelve months, gross unrealized losses | 1,086 | 166 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,704 | 174 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 11,657 | 1,001 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 30,986 | 7,206 |
Available for sale securities, continuous unrealized loss position, fair value | 42,643 | 8,207 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 176 | |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 816 | |
Held to maturity securities, accumulated unrecognized holding loss | 992 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 4,880 | |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 30,981 | |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 35,861 | |
Debt securities | Government-guaranteed residential mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 128 | 46 |
Available for sale securities, over twelve months, gross unrealized losses | 49 | 160 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 177 | 206 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 12,773 | 7,122 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 14,035 | 16,727 |
Available for sale securities, continuous unrealized loss position, fair value | 26,808 | 23,849 |
Debt securities | Government-sponsored residential mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 3,297 | 236 |
Available for sale securities, over twelve months, gross unrealized losses | 984 | 2,894 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 4,281 | 3,130 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 180,831 | 30,672 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 122,864 | 167,473 |
Available for sale securities, continuous unrealized loss position, fair value | 303,695 | 198,145 |
Debt securities | Corporate bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 0 | 1,103 |
Available for sale securities, over twelve months, gross unrealized losses | 1,030 | 0 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,030 | 1,103 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 39,571 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 36,158 | 0 |
Available for sale securities, continuous unrealized loss position, fair value | 36,158 | 39,571 |
Debt securities | Trust preferred securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 0 | 65 |
Available for sale securities, over twelve months, gross unrealized losses | 72 | 1,147 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 72 | 1,212 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 0 | 935 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 928 | 2,408 |
Available for sale securities, continuous unrealized loss position, fair value | 928 | 3,343 |
Debt securities | Other bonds and obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 30 | 0 |
Available for sale securities, over twelve months, gross unrealized losses | 0 | 52 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 30 | 52 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 3,025 | 0 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 0 | 3,035 |
Available for sale securities, continuous unrealized loss position, fair value | 3,025 | 3,035 |
Debt securities | Tax advantaged economic development bonds | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Held-to-maturity securities, continuous unrealized loss position, less than twelve months, accumulated loss | 27 | 0 |
Held-to-maturity securities, continuous unrealized loss position, over twelve months, gross unrealized losses | 0 | 34 |
Held to maturity securities, accumulated unrecognized holding loss | 27 | 34 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Held to maturity securities, accumulated unrecognized holding loss, less than twelve months, fair value | 7,847 | 0 |
Held to maturity securities, accumulated unrecognized holding loss, over twelve months, fair value | 0 | 7,972 |
Held to maturity securities, accumulated unrecognized holding loss, fair value | 7,847 | 7,972 |
Marketable equity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Available for sale securities, less than twelve months, gross unrealized losses | 1,871 | 1,039 |
Available for sale securities, over twelve months, gross unrealized losses | 43 | 334 |
Available for sale securities, continuous unrealized loss position, accumulated loss | 1,914 | 1,373 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Available for sale securities, continuous unrealized loss position, less than twelve months, fair value | 8,972 | 9,902 |
Available for sale securities, continuous unrealized loss position, over twelve months, fair value | 299 | 4,755 |
Available for sale securities, continuous unrealized loss position, fair value | $ 9,271 | $ 14,657 |
SECURITIES AVAILABLE FOR SALE47
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)security | Dec. 31, 2014USD ($) | |
Investment Holdings [Line Items] | ||
Securities available for sale, at fair value | $ | $ 1,204,756 | $ 1,091,818 |
Level 2 | ||
Investment Holdings [Line Items] | ||
Securities available for sale, at fair value | $ | 1,170,000 | $ 1,035,686 |
Corporate bonds | One Investment | Level 2 | ||
Investment Holdings [Line Items] | ||
Securities available for sale, at fair value | $ | $ 30,500 | |
Municipal bonds and obligations | ||
Investment Holdings [Line Items] | ||
Held-to-maturity, securities in unrealized loss positions, number of positions (securities) | 30 | |
Held to maturity number of securities (securities) | 77 | |
Held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 2.70% | |
Debt securities | Municipal bonds and obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 41 | |
Available for sale securities portfolio, number of securities | 186 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 3.80% | |
Debt securities | Residential Mortgage Backed Securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 86 | |
Available for sale securities portfolio, number of securities | 253 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 1.20% | |
Debt securities | Corporate bonds | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 3 | |
Available for sale securities portfolio, number of securities | 5 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 2.80% | |
Debt securities | Corporate bonds | One Investment | ||
Investment Holdings [Line Items] | ||
Available for sale securities gross unrealized loss accumulated in investments | $ | $ 900 | |
Securities available for sale, at fair value | $ | $ 31,400 | |
Debt securities | Trust preferred securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 1 | |
Available for sale securities portfolio, number of securities | 4 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 7.20% | |
Debt securities | Other bonds and obligations | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 4 | |
Available for sale securities portfolio, number of securities | 8 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 0.90% | |
Marketable equity securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale, securities in unrealized loss positions | 4 | |
Available for sale securities portfolio, number of securities | 24 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 17.10% |
LOANS - Narrative (Details)
LOANS - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 5,284,614 | $ 4,680,600 |
Borrower's sustained repayment performance period | 6 months | |
Residential mortgages: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Foreclosed property | $ 119 | 1,300 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,139,354 | 761,720 |
Acquired Credit Impaired | 24,858 | 13,809 |
Certain loans acquired in transfer not accounted for as debt securities, note balance, net | 45,200 | 25,800 |
Financing receivable not considered impaired at time of acquisition | 1,100,000 | 747,900 |
Mortgages | Residential mortgages: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,637,356 | 1,496,204 |
Process of foreclosure | 5,300 | |
Mortgages | Acquired Loans | Residential mortgages: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 368,653 | 269,752 |
Acquired Credit Impaired | $ 2,615 | $ 375 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 5,284,614 | $ 4,680,600 |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 4,145,260 | 3,918,880 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,139,354 | 761,720 |
Residential mortgages: | Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,637,356 | 1,496,204 |
Residential mortgages: | Mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,268,703 | 1,226,452 |
Residential mortgages: | Mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 368,653 | 269,752 |
Residential mortgages: | 1-4 family | Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,604,502 | 1,468,142 |
Residential mortgages: | 1-4 family | Mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,238,456 | 1,199,408 |
Residential mortgages: | 1-4 family | Mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 366,046 | 268,734 |
Residential mortgages: | Construction | Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 32,854 | 28,062 |
Residential mortgages: | Construction | Mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 30,247 | 27,044 |
Residential mortgages: | Construction | Mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,607 | 1,018 |
Commercial real estate and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,907,237 | 1,611,567 |
Commercial real estate and industrial | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,436,254 | 1,340,076 |
Commercial real estate and industrial | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 470,983 | 271,491 |
Commercial real estate and industrial | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,484,184 | 1,244,959 |
Commercial real estate and industrial | Other commercial real estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 1,105,381 | 1,030,837 |
Commercial real estate and industrial | Other commercial real estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 378,803 | 214,122 |
Commercial real estate and industrial | Business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 921,190 | 804,366 |
Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 829,925 | 753,191 |
Commercial real estate and industrial | Business loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 91,265 | 51,175 |
Commercial real estate and industrial | Business loans | Asset based lending | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 339,331 | 341,246 |
Commercial real estate and industrial | Business loans | Asset based lending | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 339,331 | 341,246 |
Commercial real estate and industrial | Business loans | Asset based lending | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 0 | 0 |
Commercial real estate and industrial | Business loans | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 581,859 | 463,120 |
Commercial real estate and industrial | Business loans | Other commercial real estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 490,594 | 411,945 |
Commercial real estate and industrial | Business loans | Other commercial real estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 91,265 | 51,175 |
Commercial real estate and industrial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 225,387 | 173,390 |
Commercial real estate and industrial | Construction | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 181,157 | 169,189 |
Commercial real estate and industrial | Construction | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 44,230 | 4,201 |
Commercial real estate and industrial | Single and multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 197,666 | 193,218 |
Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 149,716 | 140,050 |
Commercial real estate and industrial | Single and multi-family | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 47,950 | 53,168 |
Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,828,427 | 2,415,933 |
Commercial Loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 2,266,179 | 2,093,267 |
Commercial Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 562,248 | 322,666 |
Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 818,831 | 768,463 |
Consumer Loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 610,378 | 599,161 |
Consumer Loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 208,453 | 169,302 |
Consumer Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 351,153 | 318,632 |
Consumer Loans | Home equity | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 294,878 | 252,681 |
Consumer Loans | Home equity | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 56,275 | 65,951 |
Consumer Loans | Auto and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 467,678 | 449,831 |
Consumer Loans | Auto and other | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 315,500 | 346,480 |
Consumer Loans | Auto and other | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 152,178 | $ 103,351 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 3,431 | $ 3,154 | $ 2,541 | $ 2,559 |
Acquisitions | 4,178 | 0 | 4,178 | 0 |
Sales | 0 | 0 | 0 | 0 |
Reclassification form nonaccretable difference for loans with improved cash flows | 405 | 39 | 1,736 | 1,579 |
Change in cash flows that do not affect nonaccretable difference | 0 | (149) | 0 | (149) |
Accretion | (1,474) | (604) | (1,915) | (1,549) |
Balance at end of period | $ 6,540 | $ 2,440 | $ 6,540 | $ 2,440 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 5,284,614 | $ 4,680,600 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 4,386 | 9,320 |
60-89 Days Past Due | 3,710 | 4,980 |
90 Days or Greater Past Due | 16,497 | 17,172 |
Total Past Due | 24,593 | 31,472 |
Current | 4,120,667 | 3,887,408 |
Total loans | 4,145,260 | 3,918,880 |
Past Due 90 days and Accruing | 2,738 | 2,394 |
Residential mortgages: | Mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,637,356 | 1,496,204 |
Residential mortgages: | Mortgages | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,915 | 6,246 |
60-89 Days Past Due | 1,073 | 556 |
90 Days or Greater Past Due | 3,777 | 4,053 |
Total Past Due | 6,765 | 10,855 |
Current | 1,261,938 | 1,215,597 |
Total loans | 1,268,703 | 1,226,452 |
Past Due 90 days and Accruing | 913 | 1,527 |
Residential mortgages: | Mortgages | 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,604,502 | 1,468,142 |
Residential mortgages: | Mortgages | 1-4 family | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,915 | 5,580 |
60-89 Days Past Due | 1,073 | 146 |
90 Days or Greater Past Due | 3,777 | 4,053 |
Total Past Due | 6,765 | 9,779 |
Current | 1,231,691 | 1,189,629 |
Total loans | 1,238,456 | 1,199,408 |
Past Due 90 days and Accruing | 913 | 1,527 |
Residential mortgages: | Mortgages | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 32,854 | 28,062 |
Residential mortgages: | Mortgages | Construction | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 666 |
60-89 Days Past Due | 0 | 410 |
90 Days or Greater Past Due | 0 | 0 |
Total Past Due | 0 | 1,076 |
Current | 30,247 | 25,968 |
Total loans | 30,247 | 27,044 |
Past Due 90 days and Accruing | 0 | 0 |
Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,907,237 | 1,611,567 |
Commercial real estate and industrial | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,128 | 870 |
60-89 Days Past Due | 2,079 | 2,861 |
90 Days or Greater Past Due | 7,357 | 10,561 |
Total Past Due | 10,564 | 14,292 |
Current | 1,425,690 | 1,325,784 |
Total loans | 1,436,254 | 1,340,076 |
Past Due 90 days and Accruing | 629 | 621 |
Commercial real estate and industrial | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,484,184 | 1,244,959 |
Commercial real estate and industrial | Other commercial real estate | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 1,105,381 | 1,030,837 |
Commercial real estate and industrial | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 225,387 | 173,390 |
Commercial real estate and industrial | Construction | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 2,000 |
90 Days or Greater Past Due | 199 | 720 |
Total Past Due | 199 | 2,720 |
Current | 180,958 | 166,469 |
Total loans | 181,157 | 169,189 |
Past Due 90 days and Accruing | 0 | 0 |
Commercial real estate and industrial | Single and multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 197,666 | 193,218 |
Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 135 | 178 |
60-89 Days Past Due | 260 | 156 |
90 Days or Greater Past Due | 262 | 458 |
Total Past Due | 657 | 792 |
Current | 149,059 | 139,258 |
Total loans | 149,716 | 140,050 |
Past Due 90 days and Accruing | 187 | 0 |
Commercial real estate and industrial | Other | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 993 | 692 |
60-89 Days Past Due | 1,819 | 705 |
90 Days or Greater Past Due | 6,896 | 9,383 |
Total Past Due | 9,708 | 10,780 |
Current | 1,095,673 | 1,020,057 |
Total loans | 1,105,381 | 1,030,837 |
Past Due 90 days and Accruing | 442 | 621 |
Commercial real estate and industrial | Business loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 921,190 | 804,366 |
Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 355 | 1,040 |
60-89 Days Past Due | 438 | 498 |
90 Days or Greater Past Due | 2,447 | 856 |
Total Past Due | 3,240 | 2,394 |
Current | 826,685 | 750,797 |
Total loans | 829,925 | 753,191 |
Past Due 90 days and Accruing | 0 | 6 |
Commercial real estate and industrial | Business loans | Asset based lending | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 339,331 | 341,246 |
Past Due 90 days and Accruing | 0 | |
Commercial real estate and industrial | Business loans | Asset based lending | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
90 Days or Greater Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 339,331 | 341,246 |
Total loans | 339,331 | 341,246 |
Past Due 90 days and Accruing | 0 | |
Commercial real estate and industrial | Business loans | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 581,859 | 463,120 |
Commercial real estate and industrial | Business loans | Other commercial real estate | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 355 | 1,040 |
60-89 Days Past Due | 438 | 498 |
90 Days or Greater Past Due | 2,447 | 856 |
Total Past Due | 3,240 | 2,394 |
Current | 487,354 | 409,551 |
Total loans | 490,594 | 411,945 |
Past Due 90 days and Accruing | 0 | 6 |
Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 818,831 | 768,463 |
Consumer Loans | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 988 | 1,164 |
60-89 Days Past Due | 120 | 1,065 |
90 Days or Greater Past Due | 2,916 | 1,702 |
Total Past Due | 4,024 | 3,931 |
Current | 606,354 | 595,230 |
Total loans | 610,378 | 599,161 |
Past Due 90 days and Accruing | 1,196 | 240 |
Consumer Loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 351,153 | 318,632 |
Consumer Loans | Home equity | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 60 | 333 |
60-89 Days Past Due | 0 | 1,000 |
90 Days or Greater Past Due | 2,623 | 1,387 |
Total Past Due | 2,683 | 2,720 |
Current | 292,195 | 249,961 |
Total loans | 294,878 | 252,681 |
Past Due 90 days and Accruing | 1,194 | 230 |
Consumer Loans | Auto and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 467,678 | 449,831 |
Consumer Loans | Auto and other | Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 928 | 831 |
60-89 Days Past Due | 120 | 65 |
90 Days or Greater Past Due | 293 | 315 |
Total Past Due | 1,341 | 1,211 |
Current | 314,159 | 345,269 |
Total loans | 315,500 | 346,480 |
Past Due 90 days and Accruing | $ 2 | $ 10 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | $ 5,284,614 | $ 4,680,600 |
Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 1,907,237 | 1,611,567 |
Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 818,831 | 768,463 |
Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 4,439 | 2,958 |
60-89 Days Past Due | 1,430 | 2,424 |
90 Days or Greater Past Due | 7,462 | 8,185 |
Total Past Due | 13,331 | 13,567 |
Acquired Credit Impaired | 24,858 | 13,809 |
Total Loans | 1,139,354 | 761,720 |
Past Due 90 days and Accruing | 1,232 | 1,258 |
Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 755 | 277 |
60-89 Days Past Due | 0 | 715 |
90 Days or Greater Past Due | 3,608 | 3,267 |
Total Past Due | 4,363 | 4,259 |
Acquired Credit Impaired | 20,266 | 12,277 |
Total Loans | 470,983 | 271,491 |
Past Due 90 days and Accruing | 603 | 329 |
Acquired Loans | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 739 | 1,346 |
60-89 Days Past Due | 866 | 1,039 |
90 Days or Greater Past Due | 1,483 | 2,412 |
Total Past Due | 3,088 | 4,797 |
Acquired Credit Impaired | 266 | 171 |
Total Loans | 208,453 | 169,302 |
Past Due 90 days and Accruing | 212 | 660 |
Construction | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 225,387 | 173,390 |
Construction | Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
90 Days or Greater Past Due | 664 | 691 |
Total Past Due | 664 | 691 |
Acquired Credit Impaired | 3,289 | 1,296 |
Total Loans | 44,230 | 4,201 |
Past Due 90 days and Accruing | 0 | 0 |
Single and multi-family | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 197,666 | 193,218 |
Single and multi-family | Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 310 | 277 |
60-89 Days Past Due | 0 | 0 |
90 Days or Greater Past Due | 158 | 572 |
Total Past Due | 468 | 849 |
Acquired Credit Impaired | 1,798 | 5,477 |
Total Loans | 47,950 | 53,168 |
Past Due 90 days and Accruing | 0 | 0 |
Other | Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 445 | 0 |
60-89 Days Past Due | 0 | 715 |
90 Days or Greater Past Due | 2,786 | 2,004 |
Total Past Due | 3,231 | 2,719 |
Acquired Credit Impaired | 15,179 | 5,504 |
Total Loans | 378,803 | 214,122 |
Past Due 90 days and Accruing | 603 | 329 |
Mortgages | Residential mortgages: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 1,637,356 | 1,496,204 |
Mortgages | Acquired Loans | Residential mortgages: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,622 | 1,133 |
60-89 Days Past Due | 514 | 638 |
90 Days or Greater Past Due | 1,787 | 1,651 |
Total Past Due | 3,923 | 3,422 |
Acquired Credit Impaired | 2,615 | 375 |
Total Loans | 368,653 | 269,752 |
Past Due 90 days and Accruing | 417 | 269 |
Mortgages | 1-4 family | Residential mortgages: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 1,604,502 | 1,468,142 |
Mortgages | 1-4 family | Acquired Loans | Residential mortgages: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,622 | 1,133 |
60-89 Days Past Due | 514 | 638 |
90 Days or Greater Past Due | 1,787 | 1,651 |
Total Past Due | 3,923 | 3,422 |
Acquired Credit Impaired | 2,615 | 375 |
Total Loans | 366,046 | 268,734 |
Past Due 90 days and Accruing | 417 | 269 |
Mortgages | Construction | Residential mortgages: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 32,854 | 28,062 |
Mortgages | Construction | Acquired Loans | Residential mortgages: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
90 Days or Greater Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 0 | 0 |
Total Loans | 2,607 | 1,018 |
Past Due 90 days and Accruing | 0 | 0 |
Business loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 921,190 | 804,366 |
Business loans | Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,323 | 202 |
60-89 Days Past Due | 50 | 32 |
90 Days or Greater Past Due | 584 | 855 |
Total Past Due | 1,957 | 1,089 |
Acquired Credit Impaired | 1,711 | 986 |
Total Loans | 91,265 | 51,175 |
Past Due 90 days and Accruing | 0 | 0 |
Asset based lending | Business loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 339,331 | 341,246 |
Past Due 90 days and Accruing | 0 | |
Asset based lending | Business loans | Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
90 Days or Greater Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Acquired Credit Impaired | 0 | 0 |
Total Loans | 0 | 0 |
Past Due 90 days and Accruing | 0 | 0 |
Other commercial real estate | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 1,484,184 | 1,244,959 |
Other commercial real estate | Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 378,803 | 214,122 |
Other commercial real estate | Business loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 581,859 | 463,120 |
Other commercial real estate | Business loans | Acquired Loans | Commercial real estate and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,323 | 202 |
60-89 Days Past Due | 50 | 32 |
90 Days or Greater Past Due | 584 | 855 |
Total Past Due | 1,957 | 1,089 |
Acquired Credit Impaired | 1,711 | 986 |
Total Loans | 91,265 | 51,175 |
Past Due 90 days and Accruing | 0 | 0 |
Home equity | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 351,153 | 318,632 |
Home equity | Acquired Loans | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 78 | 176 |
60-89 Days Past Due | 41 | 95 |
90 Days or Greater Past Due | 939 | 1,049 |
Total Past Due | 1,058 | 1,320 |
Acquired Credit Impaired | 113 | 171 |
Total Loans | 56,275 | 65,951 |
Past Due 90 days and Accruing | 212 | 466 |
Auto and other | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans | 467,678 | 449,831 |
Auto and other | Acquired Loans | Consumer Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 661 | 1,170 |
60-89 Days Past Due | 825 | 944 |
90 Days or Greater Past Due | 544 | 1,363 |
Total Past Due | 2,030 | 3,477 |
Acquired Credit Impaired | 153 | 0 |
Total Loans | 152,178 | 103,351 |
Past Due 90 days and Accruing | $ 0 | $ 194 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Non-accrual loans | ||
Non-accrual loans | $ 19,288 | $ 20,539 |
Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 13,759 | 14,778 |
Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 5,529 | 5,761 |
Acquired credit impaired loans | ||
Non-accrual loans | ||
Non-accrual loans | 700 | 1,200 |
Residential mortgages: | Mortgages | ||
Non-accrual loans | ||
Non-accrual loans | 4,234 | 3,908 |
Residential mortgages: | Mortgages | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,864 | 2,526 |
Residential mortgages: | Mortgages | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,370 | 1,382 |
Residential mortgages: | Mortgages | 1-4 family | ||
Non-accrual loans | ||
Non-accrual loans | 4,234 | 3,908 |
Residential mortgages: | Mortgages | 1-4 family | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,864 | 2,526 |
Residential mortgages: | Mortgages | 1-4 family | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,370 | 1,382 |
Residential mortgages: | Mortgages | Construction | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Residential mortgages: | Mortgages | Construction | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Residential mortgages: | Mortgages | Construction | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial real estate and industrial | ||
Non-accrual loans | ||
Non-accrual loans | 9,069 | 11,756 |
Commercial real estate and industrial | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 6,728 | 9,940 |
Commercial real estate and industrial | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,341 | 1,816 |
Commercial real estate and industrial | Construction | ||
Non-accrual loans | ||
Non-accrual loans | 199 | 720 |
Commercial real estate and industrial | Construction | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 199 | 720 |
Commercial real estate and industrial | Construction | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial real estate and industrial | Single and multi-family | ||
Non-accrual loans | ||
Non-accrual loans | 233 | 599 |
Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 75 | 458 |
Commercial real estate and industrial | Single and multi-family | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 158 | 141 |
Commercial real estate and industrial | Other | ||
Non-accrual loans | ||
Non-accrual loans | 8,637 | 10,437 |
Commercial real estate and industrial | Other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 6,454 | 8,762 |
Commercial real estate and industrial | Other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,183 | 1,675 |
Commercial real estate and industrial | Business loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,994 | 1,661 |
Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,447 | 850 |
Commercial real estate and industrial | Business loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 547 | 811 |
Commercial real estate and industrial | Business loans | Other commercial real estate | ||
Non-accrual loans | ||
Non-accrual loans | 2,994 | 1,661 |
Commercial real estate and industrial | Business loans | Other commercial real estate | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,447 | 850 |
Commercial real estate and industrial | Business loans | Other commercial real estate | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 547 | 811 |
Consumer Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,991 | 3,214 |
Consumer Loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,720 | 1,462 |
Consumer Loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,271 | 1,752 |
Consumer Loans | Home equity | ||
Non-accrual loans | ||
Non-accrual loans | 2,157 | 1,740 |
Consumer Loans | Home equity | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,429 | 1,157 |
Consumer Loans | Home equity | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 728 | 583 |
Consumer Loans | Auto and other | ||
Non-accrual loans | ||
Non-accrual loans | 834 | 1,474 |
Consumer Loans | Auto and other | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 291 | 305 |
Consumer Loans | Auto and other | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | $ 543 | $ 1,169 |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loans receivable: balance at end of period | ||
Total loans | $ 5,284,614 | $ 4,680,600 |
Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 31,041 | 26,448 |
Collectively evaluated | 4,114,219 | 3,892,432 |
Total loans | 4,145,260 | 3,918,880 |
Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 8,434 | 6,570 |
Collectively evaluated | 1,130,920 | 755,150 |
Total loans | 1,139,354 | 761,720 |
Residential mortgages: | Mortgages | ||
Loans receivable: balance at end of period | ||
Total loans | 1,637,356 | 1,496,204 |
Residential mortgages: | Mortgages | Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 2,926 | 3,238 |
Collectively evaluated | 1,265,777 | 1,223,214 |
Total loans | 1,268,703 | 1,226,452 |
Residential mortgages: | Mortgages | Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 743 | 695 |
Collectively evaluated | 367,910 | 269,057 |
Total loans | 368,653 | 269,752 |
Commercial real estate and industrial | ||
Loans receivable: balance at end of period | ||
Total loans | 1,907,237 | 1,611,567 |
Commercial real estate and industrial | Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 19,100 | 22,015 |
Collectively evaluated | 1,417,154 | 1,318,061 |
Total loans | 1,436,254 | 1,340,076 |
Commercial real estate and industrial | Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 7,338 | 5,637 |
Collectively evaluated | 463,645 | 265,854 |
Total loans | 470,983 | 271,491 |
Commercial real estate and industrial | Business loans | ||
Loans receivable: balance at end of period | ||
Total loans | 921,190 | 804,366 |
Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 8,410 | 743 |
Collectively evaluated | 821,515 | 752,448 |
Total loans | 829,925 | 753,191 |
Commercial real estate and industrial | Business loans | Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 33 | 39 |
Collectively evaluated | 91,232 | 51,136 |
Total loans | 91,265 | 51,175 |
Consumer Loans | ||
Loans receivable: balance at end of period | ||
Total loans | 818,831 | 768,463 |
Consumer Loans | Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 605 | 452 |
Collectively evaluated | 609,773 | 598,709 |
Total loans | 610,378 | 599,161 |
Consumer Loans | Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 320 | 199 |
Collectively evaluated | 208,133 | 169,103 |
Total loans | $ 208,453 | $ 169,302 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Business Activities Loans | ||
Recorded Investment | ||
Total | $ 29,219 | $ 25,305 |
Unpaid Principal Balance | ||
Total | 31,042 | 26,448 |
Related Allowance | ||
With an allowance recorded | 1,823 | 1,143 |
Business Activities Loans | Residential mortgages: | Mortgages | ||
Recorded Investment | ||
Total | 2,839 | 3,083 |
Unpaid Principal Balance | ||
Total | 2,926 | 3,238 |
Related Allowance | ||
With an allowance recorded | 87 | 155 |
Business Activities Loans | Residential mortgages: | Mortgages | 1-4 family | ||
Recorded Investment | ||
With no related allowance | 2,043 | 2,528 |
With an allowance recorded | 796 | 555 |
Unpaid Principal Balance | ||
With no related allowance | 2,043 | 2,528 |
With an allowance recorded | 883 | 710 |
Related Allowance | ||
With an allowance recorded | 87 | 155 |
Business Activities Loans | Commercial real estate and industrial | ||
Recorded Investment | ||
Total | 19,071 | 21,093 |
Unpaid Principal Balance | ||
Total | 19,101 | 22,015 |
Related Allowance | ||
With an allowance recorded | 30 | 922 |
Business Activities Loans | Commercial real estate and industrial | Single and multi-family | ||
Recorded Investment | ||
With no related allowance | 0 | 0 |
With an allowance recorded | 0 | 490 |
Unpaid Principal Balance | ||
With no related allowance | 0 | 0 |
With an allowance recorded | 0 | 492 |
Related Allowance | ||
With an allowance recorded | 0 | 2 |
Business Activities Loans | Commercial real estate and industrial | Construction | ||
Recorded Investment | ||
With no related allowance | 2,140 | 16,990 |
With an allowance recorded | 0 | 3,511 |
Unpaid Principal Balance | ||
With no related allowance | 2,140 | 16,990 |
With an allowance recorded | 0 | 4,431 |
Related Allowance | ||
With an allowance recorded | 0 | 920 |
Business Activities Loans | Commercial real estate and industrial | Other | ||
Recorded Investment | ||
With no related allowance | 15,958 | 102 |
With an allowance recorded | 973 | 0 |
Unpaid Principal Balance | ||
With no related allowance | 15,958 | 102 |
With an allowance recorded | 1,003 | 0 |
Related Allowance | ||
With an allowance recorded | 30 | 0 |
Business Activities Loans | Commercial real estate and industrial | Business loans | ||
Recorded Investment | ||
Total | 6,704 | 743 |
Unpaid Principal Balance | ||
Total | 8,410 | 743 |
Related Allowance | ||
With an allowance recorded | 1,706 | 0 |
Business Activities Loans | Commercial real estate and industrial | Business loans | Other commercial real estate | ||
Recorded Investment | ||
With no related allowance | 6,669 | 743 |
With an allowance recorded | 35 | 0 |
Unpaid Principal Balance | ||
With no related allowance | 6,669 | 743 |
With an allowance recorded | 1,741 | 0 |
Related Allowance | ||
With an allowance recorded | 1,706 | 0 |
Business Activities Loans | Consumer Loans | ||
Recorded Investment | ||
Total | 605 | 386 |
Unpaid Principal Balance | ||
Total | 605 | 452 |
Related Allowance | ||
With an allowance recorded | 0 | 66 |
Business Activities Loans | Consumer Loans | Home equity | ||
Recorded Investment | ||
With no related allowance | 493 | 87 |
With an allowance recorded | 0 | 194 |
Unpaid Principal Balance | ||
With no related allowance | 493 | 87 |
With an allowance recorded | 0 | 248 |
Related Allowance | ||
With an allowance recorded | 0 | 54 |
Business Activities Loans | Consumer Loans | Other | ||
Recorded Investment | ||
With no related allowance | 112 | 0 |
With an allowance recorded | 105 | |
Unpaid Principal Balance | ||
With no related allowance | 112 | 0 |
With an allowance recorded | 117 | |
Related Allowance | ||
With an allowance recorded | 12 | |
Acquired Loans | ||
Recorded Investment | ||
Total | 8,229 | 6,399 |
Unpaid Principal Balance | ||
Total | 8,434 | 6,570 |
Related Allowance | ||
With an allowance recorded | 205 | 171 |
Acquired Loans | Residential mortgages: | Mortgages | ||
Recorded Investment | ||
Total | 704 | 647 |
Unpaid Principal Balance | ||
Total | 743 | 695 |
Related Allowance | ||
With an allowance recorded | 39 | 48 |
Acquired Loans | Residential mortgages: | Mortgages | 1-4 family | ||
Recorded Investment | ||
With no related allowance | 442 | 189 |
With an allowance recorded | 262 | 458 |
Unpaid Principal Balance | ||
With no related allowance | 442 | 189 |
With an allowance recorded | 301 | 506 |
Related Allowance | ||
With an allowance recorded | 39 | 48 |
Acquired Loans | Commercial real estate and industrial | ||
Recorded Investment | ||
Total | 7,172 | 5,589 |
Unpaid Principal Balance | ||
Total | 7,338 | 5,637 |
Related Allowance | ||
With an allowance recorded | 166 | 48 |
Acquired Loans | Commercial real estate and industrial | Single and multi-family | ||
Recorded Investment | ||
With no related allowance | 0 | |
With an allowance recorded | 2,807 | |
Unpaid Principal Balance | ||
With no related allowance | 0 | |
With an allowance recorded | 2,847 | |
Related Allowance | ||
With an allowance recorded | 40 | |
Acquired Loans | Commercial real estate and industrial | Construction | ||
Recorded Investment | ||
With no related allowance | 664 | |
With an allowance recorded | 0 | |
Unpaid Principal Balance | ||
With no related allowance | 664 | |
With an allowance recorded | 0 | |
Related Allowance | ||
With an allowance recorded | 0 | |
Acquired Loans | Commercial real estate and industrial | Other | ||
Recorded Investment | ||
With no related allowance | 1,915 | 5,206 |
With an allowance recorded | 1,786 | 383 |
Unpaid Principal Balance | ||
With no related allowance | 1,915 | 5,206 |
With an allowance recorded | 1,912 | 431 |
Related Allowance | ||
With an allowance recorded | 126 | 48 |
Acquired Loans | Commercial real estate and industrial | Business loans | Other commercial real estate | ||
Recorded Investment | ||
With no related allowance | 33 | 39 |
Total | 33 | 39 |
Unpaid Principal Balance | ||
With no related allowance | 33 | 39 |
Total | 33 | 39 |
Related Allowance | ||
With an allowance recorded | 0 | 0 |
Acquired Loans | Consumer Loans | Home equity | ||
Recorded Investment | ||
With no related allowance | 320 | 0 |
With an allowance recorded | 0 | 124 |
Total | 124 | |
Unpaid Principal Balance | ||
With no related allowance | 320 | 0 |
With an allowance recorded | 0 | 199 |
Total | 199 | |
Related Allowance | ||
With an allowance recorded | 0 | $ 75 |
Acquired Loans | Consumer Loans | Business loans | Home equity | ||
Recorded Investment | ||
Total | 320 | |
Unpaid Principal Balance | ||
Total | 320 | |
Related Allowance | ||
With an allowance recorded | $ 0 |
LOANS (Details 8)
LOANS (Details 8) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | $ 27,244 | $ 30,767 |
Interest income, cash basis method | 329 | 477 |
Business Activities Loans | Residential mortgages: | Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 3,045 | 5,143 |
Interest income, cash basis method | 58 | 102 |
Business Activities Loans | Residential mortgages: | Mortgages | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 2,281 | 4,661 |
Cash basis interest income recognized, with no related allowance | 41 | 99 |
Recorded investment with related allowance | 764 | 482 |
Cash basis interest income recognized, with related allowance | 17 | 3 |
Business Activities Loans | Commercial real estate and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 21,949 | 22,563 |
Interest income, cash basis method | 263 | 312 |
Business Activities Loans | Commercial real estate and industrial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 2,466 | 0 |
Cash basis interest income recognized, with no related allowance | 1 | 0 |
Recorded investment with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Business Activities Loans | Commercial real estate and industrial | Single and multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 120 | 17,308 |
Cash basis interest income recognized, with no related allowance | 0 | 312 |
Recorded investment with related allowance | 0 | 2,858 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Business Activities Loans | Commercial real estate and industrial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 12,734 | 2,397 |
Cash basis interest income recognized, with no related allowance | 170 | 0 |
Recorded investment with related allowance | 6,629 | 0 |
Cash basis interest income recognized, with related allowance | 92 | 0 |
Business Activities Loans | Commercial real estate and industrial | Business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 1,447 | 583 |
Cash basis interest income recognized, with no related allowance | 3 | 14 |
Recorded investment with related allowance | 329 | 2,055 |
Cash basis interest income recognized, with related allowance | 2 | 44 |
Average recorded investment | 1,776 | 2,638 |
Interest income, cash basis method | 5 | 58 |
Business Activities Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 474 | 423 |
Interest income, cash basis method | 3 | 5 |
Business Activities Loans | Consumer Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 360 | 300 |
Cash basis interest income recognized, with no related allowance | 1 | 3 |
Recorded investment with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Business Activities Loans | Consumer Loans | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 114 | 123 |
Cash basis interest income recognized, with no related allowance | 2 | 2 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 7,897 | 7,830 |
Interest income, cash basis method | 201 | 123 |
Acquired Loans | Residential mortgages: | Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 879 | 1,293 |
Interest income, cash basis method | 7 | 6 |
Acquired Loans | Residential mortgages: | Mortgages | 1-4 family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 569 | 930 |
Cash basis interest income recognized, with no related allowance | 2 | 5 |
Recorded investment with related allowance | 310 | 363 |
Cash basis interest income recognized, with related allowance | 5 | 1 |
Acquired Loans | Commercial real estate and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 6,612 | 5,881 |
Interest income, cash basis method | 185 | 106 |
Acquired Loans | Commercial real estate and industrial | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 664 | 0 |
Cash basis interest income recognized, with no related allowance | 60 | 0 |
Acquired Loans | Commercial real estate and industrial | Single and multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 254 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment with related allowance | 2,872 | 0 |
Cash basis interest income recognized, with related allowance | 63 | 0 |
Acquired Loans | Commercial real estate and industrial | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 1,977 | 4,392 |
Cash basis interest income recognized, with no related allowance | 3 | 51 |
Recorded investment with related allowance | 845 | 1,489 |
Cash basis interest income recognized, with related allowance | 59 | 55 |
Acquired Loans | Commercial real estate and industrial | Business loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 51 | 537 |
Cash basis interest income recognized, with no related allowance | 3 | 8 |
Recorded investment with related allowance | 0 | 68 |
Cash basis interest income recognized, with related allowance | 0 | 3 |
Average recorded investment | 51 | 605 |
Interest income, cash basis method | 3 | 11 |
Acquired Loans | Consumer Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment | 355 | 51 |
Interest income, cash basis method | 6 | 0 |
Acquired Loans | Consumer Loans | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 355 | 51 |
Cash basis interest income recognized, with no related allowance | 6 | 0 |
Acquired Loans | Consumer Loans | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | $ 0 | $ 0 |
LOANS (Details 9)
LOANS (Details 9) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)modification | Jun. 30, 2014USD ($)modification | Jun. 30, 2015USD ($)modification | Jun. 30, 2014USD ($)modification | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 6 | 9 | 8 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 11,730 | $ 5,674 | $ 11,886 | $ 5,796 |
Post-Modification Outstanding Recorded Investment | $ 11,730 | $ 5,674 | $ 11,886 | $ 5,793 |
Other | Commercial real estate and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 1 | 6 | 2 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 1,694 | $ 4,804 | $ 1,694 | $ 4,804 |
Post-Modification Outstanding Recorded Investment | $ 1,694 | $ 4,804 | $ 1,694 | $ 4,804 |
Construction | Commercial Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,877 | $ 2,000 | ||
Post-Modification Outstanding Recorded Investment | $ 1,877 | $ 2,000 | ||
Commercial and industrial - Other | Commercial real estate and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 4 | 5 | ||
Pre-Modification Outstanding Recorded Investment | $ 8,159 | $ 8,192 | ||
Post-Modification Outstanding Recorded Investment | $ 8,159 | $ 8,192 | ||
1-4 family | Mortgages | Residential mortgages: | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 2 | 3 | ||
Pre-Modification Outstanding Recorded Investment | $ 247 | $ 369 | ||
Post-Modification Outstanding Recorded Investment | $ 247 | $ 366 | ||
Single and multi-family | Commercial real estate and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Modifications | modification | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 623 | $ 623 | ||
Post-Modification Outstanding Recorded Investment | $ 623 | $ 623 |
LOANS (Details 10)
LOANS (Details 10) - Other - Commercial Loans $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modifications that subsequently defaulted, number of contracts | 1 | 2 | 1 | 2 |
modifications that subsequently defaulted, recorded investment | $ | $ 668 | $ 158 | $ 649 | $ 158 |
LOANS (Details 11)
LOANS (Details 11) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Trouble Debt Restructuring on Financing Receivables [Roll Forward] | ||||
Balance at beginning of the period | $ 17,204 | $ 10,112 | $ 16,714 | $ 10,822 |
Principal payments | (607) | (88) | (1,091) | (960) |
TDR status change | 0 | (589) | 0 | (641) |
Other reductions/increases | 611 | (4) | 1,793 | (99) |
Newly identified TDRs | 9,730 | 5,674 | 11,886 | 5,793 |
Balance at end of the period | $ 25,716 | $ 15,113 | $ 25,716 | $ 15,113 |
LOAN LOSS ALLOWANCE (Details)
LOAN LOSS ALLOWANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Activity in the allowance for loan losses | ||||
Balance at beginning of period | $ 35,662 | |||
Provision for loan losses | $ 4,204 | $ 3,989 | 8,055 | $ 7,385 |
Balance at end of period | 37,197 | 37,197 | ||
Allowance For Loan Losses | ||||
Total | 37,197 | 35,662 | ||
Business Activities Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 32,795 | 29,527 | ||
Charged-off loans | 5,702 | 4,801 | ||
Recoveries on charged-off loans | 540 | 269 | ||
Provision for loan losses | 5,593 | 5,226 | ||
Balance at end of period | 33,226 | 30,221 | 33,226 | 30,221 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 1,823 | 1,244 | ||
Collectively evaluated | 31,403 | 28,977 | ||
Total | 33,226 | 30,221 | 32,795 | 29,527 |
Acquired Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 2,867 | 3,796 | ||
Charged-off loans | 1,906 | 2,032 | ||
Recoveries on charged-off loans | 548 | 209 | ||
Provision for loan losses | 2,462 | 2,159 | ||
Balance at end of period | 3,971 | 4,132 | 3,971 | 4,132 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 205 | 386 | ||
Collectively evaluated | 3,766 | 3,746 | ||
Total | 3,971 | 4,132 | 2,867 | 3,796 |
Residential mortgages: | Mortgages | Business Activities Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 6,836 | 6,937 | ||
Charged-off loans | 446 | 1,159 | ||
Recoveries on charged-off loans | 113 | 64 | ||
Provision for loan losses | (32) | (299) | ||
Balance at end of period | 6,471 | 5,543 | 6,471 | 5,543 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 87 | 57 | ||
Collectively evaluated | 6,384 | 5,486 | ||
Total | 6,471 | 5,543 | 6,836 | 6,937 |
Residential mortgages: | Mortgages | Acquired Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 615 | 625 | ||
Charged-off loans | 375 | 723 | ||
Recoveries on charged-off loans | 41 | 161 | ||
Provision for loan losses | 527 | 599 | ||
Balance at end of period | 808 | 662 | 808 | 662 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 39 | 60 | ||
Collectively evaluated | 769 | 602 | ||
Total | 808 | 662 | 615 | 625 |
Commercial real estate and industrial | Business Activities Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 14,690 | 13,705 | ||
Charged-off loans | 4,422 | 1,645 | ||
Recoveries on charged-off loans | 146 | 6 | ||
Provision for loan losses | 2,553 | 2,389 | ||
Balance at end of period | 12,967 | 14,455 | 12,967 | 14,455 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 30 | 712 | ||
Collectively evaluated | 12,937 | 13,743 | ||
Total | 12,967 | 14,455 | 14,690 | 13,705 |
Commercial real estate and industrial | Acquired Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 790 | 2,339 | ||
Charged-off loans | 587 | 495 | ||
Recoveries on charged-off loans | 395 | 1 | ||
Provision for loan losses | 1,188 | 246 | ||
Balance at end of period | 1,786 | 2,091 | 1,786 | 2,091 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 166 | 306 | ||
Collectively evaluated | 1,620 | 1,785 | ||
Total | 1,786 | 2,091 | 790 | 2,339 |
Commercial real estate and industrial | Business loans | Business Activities Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 5,206 | 5,173 | ||
Charged-off loans | 372 | 1,426 | ||
Recoveries on charged-off loans | 154 | 22 | ||
Provision for loan losses | 4,178 | 1,396 | ||
Balance at end of period | 9,166 | 5,165 | 9,166 | 5,165 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 1,706 | 475 | ||
Collectively evaluated | 7,460 | 4,690 | ||
Total | 9,166 | 5,165 | 5,206 | 5,173 |
Commercial real estate and industrial | Business loans | Acquired Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 1,093 | 597 | ||
Charged-off loans | 336 | 176 | ||
Recoveries on charged-off loans | 56 | 24 | ||
Provision for loan losses | 160 | 624 | ||
Balance at end of period | 973 | 1,069 | 973 | 1,069 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 0 | 20 | ||
Collectively evaluated | 973 | 1,049 | ||
Total | 973 | 1,069 | 1,093 | 597 |
Consumer Loans | Business Activities Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 5,928 | 3,644 | ||
Charged-off loans | 462 | 571 | ||
Recoveries on charged-off loans | 127 | 177 | ||
Provision for loan losses | (679) | 1,597 | ||
Balance at end of period | 4,914 | 4,847 | 4,914 | 4,847 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated | 4,914 | 4,847 | ||
Total | 4,914 | 4,847 | 5,928 | 3,644 |
Consumer Loans | Acquired Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 369 | 235 | ||
Charged-off loans | 608 | 638 | ||
Recoveries on charged-off loans | 56 | 23 | ||
Provision for loan losses | 587 | 690 | ||
Balance at end of period | 404 | 310 | 404 | 310 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated | 404 | 310 | ||
Total | 404 | 310 | 369 | 235 |
Unallocated | Business Activities Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 135 | 68 | ||
Charged-off loans | 0 | 0 | ||
Recoveries on charged-off loans | 0 | 0 | ||
Provision for loan losses | (427) | 143 | ||
Balance at end of period | (292) | 211 | (292) | 211 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated | (292) | 211 | ||
Total | (292) | 211 | 135 | 68 |
Unallocated | Acquired Loans | ||||
Activity in the allowance for loan losses | ||||
Balance at beginning of period | 0 | 0 | ||
Charged-off loans | 0 | 0 | ||
Recoveries on charged-off loans | 0 | 0 | ||
Provision for loan losses | 0 | 0 | ||
Balance at end of period | 0 | 0 | 0 | 0 |
Allowance For Loan Losses | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated | 0 | 0 | ||
Total | $ 0 | $ 0 | $ 0 | $ 0 |
LOAN LOSS ALLOWANCE - NARRATIVE
LOAN LOSS ALLOWANCE - NARRATIVE (Details) $ in Millions | 3 Months Ended | |
Jun. 30, 2015USD ($)grade | Mar. 31, 2015 | |
Acquired Loans | ||
Credit quality information | ||
Number of grades in internal loan rating system | 11 | |
Allowance for losses on acquired loans under Subtopic ASC 310-30 | $ | $ 4 | |
Other | Consumer Loans | ||
Credit quality information | ||
Number of grades in internal loan rating system | 2 | |
Performing | Maximum | Other | Consumer Loans | ||
Credit quality information | ||
Period within which loans are current, based on which risk rating is assigned | 119 days | |
Performing | Maximum | Other | Acquired Loans | Consumer Loans | ||
Credit quality information | ||
Period within which loans are current, based on which risk rating is assigned | 119 days | |
Nonperforming | Maximum | Other | Acquired Loans | Consumer Loans | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 120 days | |
Nonperforming | Minimum | Other | Consumer Loans | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 120 days | |
Mortgages | Residential mortgages: | ||
Credit quality information | ||
Number of grades in internal loan rating system | 3 | |
Mortgages | Pass | Maximum | Residential mortgages: | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 59 days | |
Mortgages | Pass | Maximum | Acquired Loans | Residential mortgages: | ||
Credit quality information | ||
Period within which loans are current, based on which risk rating is assigned | 59 days | |
Mortgages | Special mention | Maximum | Residential mortgages: | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 89 days | |
Mortgages | Special mention | Maximum | Acquired Loans | Residential mortgages: | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 89 days | |
Mortgages | Special mention | Minimum | Residential mortgages: | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 60 days | |
Mortgages | Special mention | Minimum | Acquired Loans | Residential mortgages: | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 60 days | |
Mortgages | Substandard | Minimum | Residential mortgages: | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 90 days | |
Mortgages | Substandard | Minimum | Acquired Loans | Residential mortgages: | ||
Credit quality information | ||
Delinquency period of loans based on which risk rating is assigned to loans | 90 days |
LOAN LOSS ALLOWANCE (Details 2)
LOAN LOSS ALLOWANCE (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Credit quality information | ||
Total Loans | $ 5,284,614 | $ 4,680,600 |
Business Activities Loans | ||
Credit quality information | ||
Total Loans | 4,145,260 | 3,918,880 |
Acquired Loans | ||
Credit quality information | ||
Total Loans | 1,139,354 | 761,720 |
Residential mortgages: | Mortgages | ||
Credit quality information | ||
Total Loans | 1,637,356 | 1,496,204 |
Residential mortgages: | Mortgages | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,268,703 | 1,226,452 |
Residential mortgages: | Mortgages | Acquired Loans | ||
Credit quality information | ||
Total Loans | 368,653 | 269,752 |
Residential mortgages: | Mortgages | 1-4 family | ||
Credit quality information | ||
Total Loans | 1,604,502 | 1,468,142 |
Residential mortgages: | Mortgages | 1-4 family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,238,456 | 1,199,408 |
Residential mortgages: | Mortgages | 1-4 family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 366,046 | 268,734 |
Residential mortgages: | Mortgages | Construction | ||
Credit quality information | ||
Total Loans | 32,854 | 28,062 |
Residential mortgages: | Mortgages | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 30,247 | 27,044 |
Residential mortgages: | Mortgages | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 2,607 | 1,018 |
Commercial real estate and industrial | ||
Credit quality information | ||
Total Loans | 1,907,237 | 1,611,567 |
Commercial real estate and industrial | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,436,254 | 1,340,076 |
Commercial real estate and industrial | Acquired Loans | ||
Credit quality information | ||
Total Loans | 470,983 | 271,491 |
Commercial real estate and industrial | Other commercial real estate | ||
Credit quality information | ||
Total Loans | 1,484,184 | 1,244,959 |
Commercial real estate and industrial | Other commercial real estate | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,105,381 | 1,030,837 |
Commercial real estate and industrial | Other commercial real estate | Acquired Loans | ||
Credit quality information | ||
Total Loans | 378,803 | 214,122 |
Commercial real estate and industrial | Construction | ||
Credit quality information | ||
Total Loans | 225,387 | 173,390 |
Commercial real estate and industrial | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 181,157 | 169,189 |
Commercial real estate and industrial | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 44,230 | 4,201 |
Commercial real estate and industrial | Single and multi-family | ||
Credit quality information | ||
Total Loans | 197,666 | 193,218 |
Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 149,716 | 140,050 |
Commercial real estate and industrial | Single and multi-family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 47,950 | 53,168 |
Commercial real estate and industrial | Other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,105,381 | 1,030,837 |
Commercial real estate and industrial | Other | Acquired Loans | ||
Credit quality information | ||
Total Loans | 378,803 | 214,122 |
Commercial real estate and industrial | Business loans | ||
Credit quality information | ||
Total Loans | 921,190 | 804,366 |
Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 829,925 | 753,191 |
Commercial real estate and industrial | Business loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 91,265 | 51,175 |
Commercial real estate and industrial | Business loans | Asset based lending | ||
Credit quality information | ||
Total Loans | 339,331 | 341,246 |
Commercial real estate and industrial | Business loans | Asset based lending | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 339,331 | 341,246 |
Commercial real estate and industrial | Business loans | Asset based lending | Acquired Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Commercial real estate and industrial | Business loans | Other commercial real estate | ||
Credit quality information | ||
Total Loans | 581,859 | 463,120 |
Commercial real estate and industrial | Business loans | Other commercial real estate | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 490,594 | 411,945 |
Commercial real estate and industrial | Business loans | Other commercial real estate | Acquired Loans | ||
Credit quality information | ||
Total Loans | 91,265 | 51,175 |
Consumer Loans | ||
Credit quality information | ||
Total Loans | 818,831 | 768,463 |
Consumer Loans | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 610,378 | 599,161 |
Consumer Loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 208,453 | 169,302 |
Consumer Loans | Home equity | ||
Credit quality information | ||
Total Loans | 351,153 | 318,632 |
Consumer Loans | Home equity | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 294,878 | 252,681 |
Consumer Loans | Home equity | Acquired Loans | ||
Credit quality information | ||
Total Loans | 56,275 | 65,951 |
Consumer Loans | Auto and other | ||
Credit quality information | ||
Total Loans | 467,678 | 449,831 |
Consumer Loans | Auto and other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 315,500 | 346,480 |
Consumer Loans | Auto and other | Acquired Loans | ||
Credit quality information | ||
Total Loans | 152,178 | 103,351 |
Pass | Residential mortgages: | Mortgages | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,263,854 | 1,221,843 |
Pass | Residential mortgages: | Mortgages | Acquired Loans | ||
Credit quality information | ||
Total Loans | 364,996 | 267,463 |
Pass | Residential mortgages: | Mortgages | 1-4 family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,233,607 | 1,195,209 |
Pass | Residential mortgages: | Mortgages | 1-4 family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 362,389 | 266,445 |
Pass | Residential mortgages: | Mortgages | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 30,247 | 26,634 |
Pass | Residential mortgages: | Mortgages | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 2,607 | 1,018 |
Pass | Commercial real estate and industrial | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,373,736 | 1,263,664 |
Pass | Commercial real estate and industrial | Acquired Loans | ||
Credit quality information | ||
Total Loans | 438,290 | 243,082 |
Pass | Commercial real estate and industrial | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 178,785 | 166,295 |
Pass | Commercial real estate and industrial | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 40,940 | 2,904 |
Pass | Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 146,780 | 137,533 |
Pass | Commercial real estate and industrial | Single and multi-family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 41,080 | 44,497 |
Pass | Commercial real estate and industrial | Other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,048,171 | 959,836 |
Pass | Commercial real estate and industrial | Other | Acquired Loans | ||
Credit quality information | ||
Total Loans | 356,270 | 195,681 |
Pass | Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 796,044 | 746,092 |
Pass | Commercial real estate and industrial | Business loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 86,751 | 45,757 |
Pass | Commercial real estate and industrial | Business loans | Asset based lending | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 339,331 | 341,246 |
Pass | Commercial real estate and industrial | Business loans | Asset based lending | Acquired Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Pass | Commercial real estate and industrial | Business loans | Other commercial real estate | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 456,713 | 404,846 |
Pass | Commercial real estate and industrial | Business loans | Other commercial real estate | Acquired Loans | ||
Credit quality information | ||
Total Loans | 86,751 | 45,757 |
Special mention | ||
Credit quality information | ||
Total Loans | 42,018 | 17,913 |
Special mention | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 27,441 | 9,113 |
Special mention | Acquired Loans | ||
Credit quality information | ||
Total Loans | 14,577 | 8,800 |
Special mention | Residential mortgages: | Mortgages | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,073 | 556 |
Special mention | Residential mortgages: | Mortgages | Acquired Loans | ||
Credit quality information | ||
Total Loans | 631 | 638 |
Special mention | Residential mortgages: | Mortgages | 1-4 family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,073 | 146 |
Special mention | Residential mortgages: | Mortgages | 1-4 family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 631 | 638 |
Special mention | Residential mortgages: | Mortgages | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 0 | 410 |
Special mention | Residential mortgages: | Mortgages | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Special mention | Commercial real estate and industrial | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 6,201 | 6,933 |
Special mention | Commercial real estate and industrial | Acquired Loans | ||
Credit quality information | ||
Total Loans | 11,721 | 5,401 |
Special mention | Commercial real estate and industrial | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Special mention | Commercial real estate and industrial | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 2,020 | 0 |
Special mention | Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 769 | 0 |
Special mention | Commercial real estate and industrial | Single and multi-family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 625 | 533 |
Special mention | Commercial real estate and industrial | Other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 5,432 | 6,933 |
Special mention | Commercial real estate and industrial | Other | Acquired Loans | ||
Credit quality information | ||
Total Loans | 9,076 | 4,868 |
Special mention | Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 20,047 | 560 |
Special mention | Commercial real estate and industrial | Business loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 1,361 | 1,723 |
Special mention | Commercial real estate and industrial | Business loans | Asset based lending | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Special mention | Commercial real estate and industrial | Business loans | Asset based lending | Acquired Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Special mention | Commercial real estate and industrial | Business loans | Other commercial real estate | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 20,047 | 560 |
Special mention | Commercial real estate and industrial | Business loans | Other commercial real estate | Acquired Loans | ||
Credit quality information | ||
Total Loans | 1,361 | 1,723 |
Substandard | ||
Credit quality information | ||
Total Loans | 85,515 | 90,834 |
Substandard | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 63,085 | 66,995 |
Substandard | Acquired Loans | ||
Credit quality information | ||
Total Loans | 22,430 | 23,839 |
Substandard | Residential mortgages: | Mortgages | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 3,776 | 4,053 |
Substandard | Residential mortgages: | Mortgages | Acquired Loans | ||
Credit quality information | ||
Total Loans | 3,026 | 1,651 |
Substandard | Residential mortgages: | Mortgages | 1-4 family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 3,776 | 4,053 |
Substandard | Residential mortgages: | Mortgages | 1-4 family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 3,026 | 1,651 |
Substandard | Residential mortgages: | Mortgages | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Substandard | Residential mortgages: | Mortgages | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Substandard | Commercial real estate and industrial | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 56,244 | 69,406 |
Substandard | Commercial real estate and industrial | Acquired Loans | ||
Credit quality information | ||
Total Loans | 20,972 | 23,008 |
Substandard | Commercial real estate and industrial | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 2,372 | 2,894 |
Substandard | Commercial real estate and industrial | Construction | Acquired Loans | ||
Credit quality information | ||
Total Loans | 1,270 | 1,297 |
Substandard | Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 2,167 | 2,517 |
Substandard | Commercial real estate and industrial | Single and multi-family | Acquired Loans | ||
Credit quality information | ||
Total Loans | 6,245 | 8,138 |
Substandard | Commercial real estate and industrial | Other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 51,705 | 63,995 |
Substandard | Commercial real estate and industrial | Other | Acquired Loans | ||
Credit quality information | ||
Total Loans | 13,457 | 13,573 |
Substandard | Commercial real estate and industrial | Business loans | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 13,834 | 6,539 |
Substandard | Commercial real estate and industrial | Business loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 3,113 | 3,695 |
Substandard | Commercial real estate and industrial | Business loans | Asset based lending | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Substandard | Commercial real estate and industrial | Business loans | Asset based lending | Acquired Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Substandard | Commercial real estate and industrial | Business loans | Other commercial real estate | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 13,834 | 6,539 |
Substandard | Commercial real estate and industrial | Business loans | Other commercial real estate | Acquired Loans | ||
Credit quality information | ||
Total Loans | 3,113 | 3,695 |
Doubtful | Commercial real estate and industrial | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 73 | 73 |
Doubtful | Commercial real estate and industrial | Construction | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate and industrial | Single and multi-family | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate and industrial | Other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 73 | 73 |
Doubtful | Commercial real estate and industrial | Business loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 40 | 0 |
Doubtful | Commercial real estate and industrial | Business loans | Asset based lending | Acquired Loans | ||
Credit quality information | ||
Total Loans | 0 | 0 |
Doubtful | Commercial real estate and industrial | Business loans | Other commercial real estate | Acquired Loans | ||
Credit quality information | ||
Total Loans | 40 | 0 |
Performing | Consumer Loans | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 608,658 | 597,699 |
Performing | Consumer Loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 207,181 | 167,550 |
Performing | Consumer Loans | Home equity | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 293,449 | 251,524 |
Performing | Consumer Loans | Home equity | Acquired Loans | ||
Credit quality information | ||
Total Loans | 55,547 | 65,368 |
Performing | Consumer Loans | Auto and other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 315,209 | 346,175 |
Performing | Consumer Loans | Auto and other | Acquired Loans | ||
Credit quality information | ||
Total Loans | 151,634 | 102,182 |
Nonperforming | Consumer Loans | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,720 | 1,462 |
Nonperforming | Consumer Loans | Acquired Loans | ||
Credit quality information | ||
Total Loans | 1,272 | 1,752 |
Nonperforming | Consumer Loans | Home equity | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 1,429 | 1,157 |
Nonperforming | Consumer Loans | Home equity | Acquired Loans | ||
Credit quality information | ||
Total Loans | 728 | 583 |
Nonperforming | Consumer Loans | Auto and other | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 291 | 305 |
Nonperforming | Consumer Loans | Auto and other | Acquired Loans | ||
Credit quality information | ||
Total Loans | 544 | 1,169 |
Non-Accrual | ||
Credit quality information | ||
Total Loans | 19,989 | 21,705 |
Non-Accrual | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 13,759 | 14,778 |
Non-Accrual | Acquired Loans | ||
Credit quality information | ||
Total Loans | 6,230 | 6,927 |
Total Classified | ||
Credit quality information | ||
Total Loans | 105,504 | 112,539 |
Total Classified | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 76,844 | 81,773 |
Total Classified | Acquired Loans | ||
Credit quality information | ||
Total Loans | 28,660 | 30,766 |
Total Criticized | ||
Credit quality information | ||
Total Loans | 147,522 | 130,452 |
Total Criticized | Business Activities Loans | ||
Credit quality information | ||
Total Loans | 104,285 | 90,886 |
Total Criticized | Acquired Loans | ||
Credit quality information | ||
Total Loans | $ 43,237 | $ 39,566 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Account balances | ||
Time less than $100,000 | $ 551,610 | $ 515,570 |
Time $100,000 or more | 1,200,314 | 940,176 |
Total time deposits | 1,751,924 | 1,455,746 |
Brokered time deposits | 609,900 | 430,800 |
Reciprocal deposits | $ 8,700 | $ 9,400 |
BORROWED FUNDS (Details)
BORROWED FUNDS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 1,058,001 | $ 900,900 |
Long-term borrowings | 208,265 | 151,423 |
Total borrowings | $ 1,266,266 | $ 1,052,323 |
Weighted average rate on short-term borrowings | 0.24% | 0.23% |
Weighted average rate on long-term borrowings | 3.75% | 4.03% |
Weighted Average Rate | 0.82% | 0.79% |
Advances from the FHLBB | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 1,058,001 | $ 890,900 |
Long-term borrowings | $ 118,483 | $ 61,676 |
Weighted average rate on short-term borrowings | 0.24% | 0.24% |
Weighted average rate on long-term borrowings | 1.92% | 0.93% |
Other Borrowings | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 0 | $ 10,000 |
Weighted average rate on short-term borrowings | 0.00% | 1.80% |
Subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 74,318 | $ 74,283 |
Weighted average rate on long-term borrowings | 7.00% | 7.00% |
Junior subordinated borrowings | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 15,464 | $ 15,464 |
Weighted average rate on long-term borrowings | 2.13% | 2.08% |
BORROWED FUNDS - NARRATIVE (Det
BORROWED FUNDS - NARRATIVE (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2012 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Line of credit, current | $ 3,000,000 | |||
Short-term debt | 1,058,001,000 | $ 900,900,000 | ||
Long-term borrowings | 208,265,000 | 151,423,000 | ||
Advances from the FHLBB | ||||
Debt Instrument [Line Items] | ||||
Long-term line of credit | 0 | 0 | ||
Short-term debt | 1,058,001,000 | 890,900,000 | ||
Long-term borrowings | 118,483,000 | 61,676,000 | ||
Federal Reserve Bank Advances | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | 0 | 0 | ||
Federal Home Loan Bank Certificates And Obligations F H L B Callable Advances | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 11,000,000 | 5,000,000 | ||
Federal Home Loan Bank Certificates And Obligations F H L B Amortizing Advances | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 5,100,000 | 5,100,000 | ||
Subordinated borrowings | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | 74,318,000 | 74,283,000 | ||
Maturity period | 15 years | |||
Principal amount of debt issued | $ 75,000,000 | |||
Discount rate (as a percent) | 1.15% | |||
Fixed interest rate | 6.875% | |||
Maturity period with fixed interest rate | 10 years | |||
Subordinated borrowings | Three-month LIBOR rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 511.30% | |||
Junior subordinated borrowings | ||||
Debt Instrument [Line Items] | ||||
Long-term borrowings | $ 15,464,000 | $ 15,464,000 | ||
Junior subordinated borrowings | Trust I | ||||
Debt Instrument [Line Items] | ||||
Common stock of trust | 100.00% | |||
Common stock of trust included in other asset | $ 500,000 | |||
Sole asset of trust in form of debt | $ 15,500,000 | |||
Variable interest rate | 2.13% | 2.08% | ||
Junior subordinated borrowings | Trust I | Maximum | ||||
Debt Instrument [Line Items] | ||||
Period up to which interest payments can be deferred | 5 years | |||
Junior subordinated borrowings | Trust I | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.85% |
BORROWED FUNDS (Details 2)
BORROWED FUNDS (Details 2) - Fixed rate advances - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Principal | ||
2,015 | $ 1,067,031 | $ 940,900 |
2,016 | 52,792 | 1,519 |
2,017 | 33,719 | 5,000 |
2,018 | 1,044 | 0 |
2019 and beyond | 21,898 | 5,157 |
Total FHLBB advances | $ 1,176,484 | $ 952,576 |
Weighted Average Rate (as a percent) | ||
2,015 | 0.25% | 0.24% |
2,016 | 1.37% | 0.88% |
2,017 | 2.46% | 4.33% |
2,018 | 2.62% | 0.00% |
2019 and beyond | 2.72% | 3.85% |
Total | 0.41% | 0.28% |
BORROWED FUNDS (Details 3)
BORROWED FUNDS (Details 3) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2012 | Mar. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Subordinated borrowings | ||||
Debt Instrument [Line Items] | ||||
Maturity period | 15 years | |||
Principal amount of debt issued | $ 75 | |||
Fixed interest rate | 6.875% | |||
Maturity period with fixed interest rate | 10 years | |||
Discount rate (as a percent) | 1.15% | |||
Subordinated borrowings | Three-month LIBOR rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 511.30% | |||
Junior subordinated borrowings | Trust I | ||||
Debt Instrument [Line Items] | ||||
Common stock of trust | 100.00% | |||
Common stock of trust included in other asset | $ 0.5 | |||
Sole asset of trust in form of debt | $ 15.5 | |||
Variable interest rate | 2.13% | 2.08% | ||
Junior subordinated borrowings | Trust I | Maximum | ||||
Debt Instrument [Line Items] | ||||
Period up to which interest payments can be deferred | 5 years | |||
Junior subordinated borrowings | LIBOR | Trust I | ||||
Debt Instrument [Line Items] | ||||
Interest rate margin | 1.85% |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Jun. 30, 2015 | Dec. 31, 2014 |
Tier 1 capital to risk-weighted assets | ||
Total capital to risk weighted assets | 11.70% | 11.40% |
Common Equity Tier 1 Capital to risk weighted assets | 9.50% | |
Tier 1 capital to risk weighted assets | 9.60% | 9.00% |
Tier 1 capital to average assets | 7.40% | 7.00% |
Regulatory Minimum to be Well Capitalized, Total capital to risk weighted assets | 10.00% | 10.00% |
Regulatory Minimum to be Well Capitalized, Common Equity Tier 1 Capital to risk weighted assets | 6.50% | |
Regulatory Minimum to be Well Capitalized, Tier 1 capital to risk weighted assets | 8.00% | 6.00% |
Regulatory Minimum to be Well Capitalized, Tier 1 capital to average assets | 5.00% | 5.00% |
Bank | ||
Tier 1 capital to risk-weighted assets | ||
Total capital to risk weighted assets | 11.00% | 10.80% |
Common Equity Tier 1 Capital to risk weighted assets | 9.70% | |
Tier 1 capital to risk weighted assets | 9.70% | 9.30% |
Tier 1 capital to average assets | 7.50% | 7.20% |
Regulatory Minimum to be Well Capitalized, Total capital to risk weighted assets | 10.00% | 10.00% |
Regulatory Minimum to be Well Capitalized, Common Equity Tier 1 Capital to risk weighted assets | 6.50% | |
Regulatory Minimum to be Well Capitalized, Tier 1 capital to risk weighted assets | 8.00% | 6.00% |
Regulatory Minimum to be Well Capitalized, Tier 1 capital to average assets | 5.00% | 5.00% |
STOCKHOLDERS' EQUITY (Details 2
STOCKHOLDERS' EQUITY (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Accumulated other comprehensive income (loss) | $ (396) | $ 9,068 | $ 6,579 | $ 4,276 | $ (631) | $ (9,057) |
Net unrealized holding gain on AFS securities | ||||||
Other accumulated comprehensive income (loss), before tax: | 9,259 | 15,993 | ||||
Income taxes related to items of accumulated other comprehensive income: | (3,582) | (6,077) | ||||
Accumulated other comprehensive income (loss) | 5,677 | 15,648 | 9,916 | 4,876 | (1,976) | (5,776) |
Net (loss) on effective cash flow hedging derivatives | ||||||
Other accumulated comprehensive income (loss), before tax: | (6,416) | (3,299) | ||||
Income taxes related to items of accumulated other comprehensive income: | 2,586 | 1,330 | ||||
Accumulated other comprehensive income (loss) | (3,830) | (4,298) | (1,969) | (610) | 1,335 | (1,366) |
Net unrealized holding (loss) on pension plans | ||||||
Other accumulated comprehensive income (loss), before tax: | (3,757) | (2,291) | ||||
Income taxes related to items of accumulated other comprehensive income: | 1,514 | 923 | ||||
Accumulated other comprehensive income (loss) | $ (2,243) | $ (2,282) | $ (1,368) | $ 10 | $ 10 | $ 10 |
STOCKHOLDERS' EQUITY (Details 3
STOCKHOLDERS' EQUITY (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net unrealized gain (loss) arising during the period | ||||
Net of Tax | $ (7,976) | $ 5,027 | $ (5,505) | $ 8,358 |
Less: reclassification adjustment for losses realized in net income | ||||
Net of Tax | (1,488) | (120) | (1,470) | 4,975 |
Other Comprehensive Income | ||||
Before Tax | (15,222) | 7,846 | (11,317) | 21,636 |
Tax Effect | 5,758 | (2,939) | 4,342 | (8,303) |
Total other comprehensive (loss) income | (9,464) | 4,907 | (6,975) | 13,333 |
Net unrealized holding gain on AFS securities | ||||
Net unrealized gain (loss) arising during the period | ||||
Before Tax | (13,687) | 11,316 | (4,316) | 17,370 |
Tax Effect | 5,243 | (4,344) | 1,625 | (6,576) |
Net of Tax | (8,444) | 6,972 | (2,691) | 10,794 |
Less: reclassification adjustment for losses realized in net income | ||||
Before Tax | (2,384) | (203) | (2,418) | (237) |
Tax Effect | 857 | 83 | 870 | 95 |
Net of Tax | (1,527) | (120) | (1,548) | (142) |
Other Comprehensive Income | ||||
Before Tax | (16,071) | 11,113 | (6,734) | 17,133 |
Tax Effect | 6,100 | (4,261) | 2,495 | (6,481) |
Total other comprehensive (loss) income | (9,971) | 6,852 | (4,239) | 10,652 |
Net (loss) on effective cash flow hedging derivatives | ||||
Net unrealized gain (loss) arising during the period | ||||
Before Tax | 784 | (3,267) | (3,117) | (4,127) |
Tax Effect | (316) | 1,322 | 1,256 | 1,691 |
Net of Tax | 468 | (1,945) | (1,861) | (2,436) |
Less: reclassification adjustment for losses realized in net income | ||||
Before Tax | 0 | 0 | 0 | 5,393 |
Tax Effect | 0 | 0 | 0 | (2,201) |
Net of Tax | 0 | 0 | 0 | 3,192 |
Other Comprehensive Income | ||||
Before Tax | 784 | (3,267) | (3,117) | 1,266 |
Tax Effect | (316) | 1,322 | 1,256 | (510) |
Total other comprehensive (loss) income | 468 | (1,945) | (1,861) | 756 |
Net unrealized holding (loss) on pension plans | ||||
Net unrealized gain (loss) arising during the period | ||||
Before Tax | 0 | (1,596) | ||
Tax Effect | 0 | 643 | ||
Net of Tax | 0 | 0 | (953) | 0 |
Less: reclassification adjustment for losses realized in net income | ||||
Before Tax | 65 | 130 | ||
Tax Effect | (26) | (52) | ||
Net of Tax | 39 | 0 | 78 | 0 |
Other Comprehensive Income | ||||
Before Tax | 65 | (1,466) | ||
Tax Effect | (26) | 591 | ||
Total other comprehensive (loss) income | 39 | 0 | (875) | 0 |
Net gain on terminated swap | ||||
Net unrealized gain (loss) arising during the period | ||||
Before Tax | 0 | 0 | ||
Tax Effect | 0 | 0 | ||
Net of Tax | 0 | 0 | 0 | 0 |
Less: reclassification adjustment for losses realized in net income | ||||
Before Tax | 0 | 3,237 | ||
Tax Effect | 0 | (1,312) | ||
Net of Tax | 0 | 0 | 0 | 1,925 |
Other Comprehensive Income | ||||
Before Tax | 0 | 3,237 | ||
Tax Effect | 0 | (1,312) | ||
Total other comprehensive (loss) income | $ 0 | $ 0 | $ 0 | $ 1,925 |
STOCKHOLDERS' EQUITY (Details 4
STOCKHOLDERS' EQUITY (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | $ 9,068 | $ (631) | $ 6,579 | $ (9,057) |
Reclassification from accumulated other comprehensive income, net of tax | ||||
Other Comprehensive (Loss) Gain Before reclassifications | (7,976) | 5,027 | (5,505) | 8,358 |
Amounts Reclassified from Accumulated other comprehensive income | (1,488) | (120) | (1,470) | 4,975 |
Total other comprehensive (loss) income | (9,464) | 4,907 | (6,975) | 13,333 |
Balance at End of Period | (396) | 4,276 | (396) | 4,276 |
Net unrealized holding gain on AFS securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | 15,648 | (1,976) | 9,916 | (5,776) |
Reclassification from accumulated other comprehensive income, net of tax | ||||
Other Comprehensive (Loss) Gain Before reclassifications | (8,444) | 6,972 | (2,691) | 10,794 |
Amounts Reclassified from Accumulated other comprehensive income | (1,527) | (120) | (1,548) | (142) |
Total other comprehensive (loss) income | (9,971) | 6,852 | (4,239) | 10,652 |
Balance at End of Period | 5,677 | 4,876 | 5,677 | 4,876 |
Net (loss) on effective cash flow hedging derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (4,298) | 1,335 | (1,969) | (1,366) |
Reclassification from accumulated other comprehensive income, net of tax | ||||
Other Comprehensive (Loss) Gain Before reclassifications | 468 | (1,945) | (1,861) | (2,436) |
Amounts Reclassified from Accumulated other comprehensive income | 0 | 0 | 0 | 3,192 |
Total other comprehensive (loss) income | 468 | (1,945) | (1,861) | 756 |
Balance at End of Period | (3,830) | (610) | (3,830) | (610) |
Net gain on terminated swap | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | 0 | 0 | 0 | (1,925) |
Reclassification from accumulated other comprehensive income, net of tax | ||||
Other Comprehensive (Loss) Gain Before reclassifications | 0 | 0 | 0 | 0 |
Amounts Reclassified from Accumulated other comprehensive income | 0 | 0 | 0 | 1,925 |
Total other comprehensive (loss) income | 0 | 0 | 0 | 1,925 |
Balance at End of Period | 0 | 0 | 0 | 0 |
Net unrealized holding (loss) on pension plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at Beginning of Period | (2,282) | 10 | (1,368) | 10 |
Reclassification from accumulated other comprehensive income, net of tax | ||||
Other Comprehensive (Loss) Gain Before reclassifications | 0 | 0 | (953) | 0 |
Amounts Reclassified from Accumulated other comprehensive income | 39 | 0 | 78 | 0 |
Total other comprehensive (loss) income | 39 | 0 | (875) | 0 |
Balance at End of Period | $ (2,243) | $ 10 | $ (2,243) | $ 10 |
STOCKHOLDERS' EQUITY (Details 5
STOCKHOLDERS' EQUITY (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | $ (16,780) | $ (14,506) | $ (29,342) | $ (18,929) |
Income tax expense (benefit) | 1,144 | 4,119 | 1,441 | 3,658 |
Net income (loss) | (10,044) | (11,464) | (18,803) | (10,358) |
Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Net income (loss) | (1,488) | (120) | (1,470) | 4,975 |
Net unrealized holding gain on AFS securities | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | (2,384) | (203) | (2,418) | (237) |
Income tax expense (benefit) | 857 | 83 | (870) | (95) |
Net income (loss) | (1,527) | (120) | (1,548) | (142) |
Net (loss) on effective cash flow hedging derivatives | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | 0 | 0 | 0 | 5,393 |
Income tax expense (benefit) | 0 | 0 | 0 | 2,201 |
Net income (loss) | 0 | 0 | 0 | 3,192 |
Net gain on terminated swap | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | 0 | 0 | 0 | 3,237 |
Income tax expense (benefit) | 0 | 0 | 0 | 1,312 |
Net income (loss) | 0 | 0 | 0 | 1,925 |
Net unrealized holding (loss) on pension plans | Amount Reclassified From Accumulated Other Comprehensive Income (loss) | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ||||
Non-interest income | 65 | 0 | 130 | 0 |
Income tax expense (benefit) | (26) | 0 | 52 | 0 |
Net income (loss) | $ 39 | $ 0 | $ 78 | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings per share | ||||
Net income | $ 10,044 | $ 11,464 | $ 18,803 | $ 10,358 |
Average number of common shares issued (shares) | 29,975 | 26,525 | 28,260 | 26,525 |
Less: average number of treasury shares (shares) | 1,193 | 1,417 | 1,244 | 1,421 |
Less: average number of unvested stock award shares (shares) | 481 | 393 | 459 | 397 |
Average number of basic common shares outstanding (shares) | 28,301 | 24,715 | 26,557 | 24,707 |
Average number of diluted common shares outstanding (shares) | 28,461 | 24,809 | 26,713 | 24,821 |
Earnings per share: | ||||
Basic (USD per share) | $ 0.35 | $ 0.46 | $ 0.71 | $ 0.42 |
Diluted (USD per share) | $ 0.35 | $ 0.46 | $ 0.70 | $ 0.42 |
Unvested Stock Award shares | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (shares) | 94 | 44 | 91 | 55 |
Options | ||||
Earnings per share | ||||
Plus: dilutive effect of share-based payment arrangements (shares) | 66 | 50 | 65 | 59 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Unvested Stock Award shares | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 365 | 342 |
Options | ||
Anti-dilutive securities | ||
Securities excluded from the earnings per share calculations (in shares) | 207 | 305 |
STOCK-BASED COMPENSATION PLAN75
STOCK-BASED COMPENSATION PLANS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock-based compensation plans | ||
Total compensation cost | $ 2,300 | $ 1,800 |
Unvested Stock Award shares | ||
Non-vested Stock Awards Outstanding, Number of Shares | ||
Balance at the beginning of the period (in shares) | 424 | |
Granted (in shares) | 174 | |
Stock awards vested (in shares) | (86) | (66) |
Forfeited (in shares) | (11) | |
Balance at the end of the period (in shares) | 501 | |
Non-vested Stock Awards Outstanding, Weighted-Average Grant Date Fair Value | ||
Balance at the beginning of the period (USD per share) | $ 24.33 | |
Granted (USD per share) | 26.33 | |
Stock awards vested (USD per share) | 24.28 | |
Forfeited (USD per share) | 23.64 | |
Balance at the end of the period (USD per share) | $ 24.92 | |
Options | ||
Stock Options Outstanding, Number of Shares | ||
Balance at the beginning of the period (shares) | 282 | |
Granted (shares) | 0 | |
Stock options exercised (shares) | (11) | |
Forfeited (shares) | 0 | |
Expired (shares) | 0 | |
Balance at the end of the period (shares) | 271 | |
Exercisable options at the end of the period (shares) | 271 | |
Stock Options Outstanding, Weighted-Average Exercise Price | ||
Balance at the beginning of the period (USD per share) | $ 20.42 | |
Granted (USD per share) | 0 | |
Stock options exercised (USD per share) | 10.52 | |
Forfeited (USD per share) | 0 | |
Expired (USD per share) | 0 | |
Balance at the end of the period (USD per share) | 21.12 | |
Exercisable options at the end of the period (USD per share) | $ 21.12 | |
Stock-based compensation plans | ||
Proceeds from stock option exercises | $ 116 | $ 848 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | |
Operating segments | ||||
Number of reportable operating segments | segment | 2 | |||
Net interest income | $ 52,637 | $ 44,329 | $ 98,130 | $ 87,095 |
Provision for loan losses | 4,204 | 3,989 | 8,055 | 7,385 |
Non-interest income | 16,780 | 14,506 | 29,342 | 18,929 |
Non-interest expense | 54,025 | 39,263 | 99,173 | 84,623 |
Income before income taxes | 11,188 | 15,583 | 20,244 | 14,016 |
Income tax expense (benefit) | 1,144 | 4,119 | 1,441 | 3,658 |
Net income | 10,044 | 11,464 | 18,803 | 10,358 |
Average assets (in millions) | 7,195,000 | 6,146,000 | 6,846,000 | 5,998,000 |
Operating segment | Banking | ||||
Operating segments | ||||
Net interest income | 53,480 | 45,244 | 99,819 | 88,954 |
Provision for loan losses | 4,204 | 3,989 | 8,055 | 7,385 |
Non-interest income | 14,096 | 12,046 | 23,509 | 13,420 |
Non-interest expense | 47,531 | 36,970 | 90,025 | 79,543 |
Income before income taxes | 15,841 | 16,331 | 25,248 | 15,446 |
Income tax expense (benefit) | 2,951 | 4,409 | 3,384 | 4,217 |
Net income | 12,890 | 11,922 | 21,864 | 11,229 |
Average assets (in millions) | 7,191,000 | 6,111,000 | 6,837,000 | 5,971,000 |
Operating segment | Insurance | ||||
Operating segments | ||||
Net interest income | 0 | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Non-interest income | 2,486 | 2,460 | 5,453 | 5,509 |
Non-interest expense | 1,901 | 1,887 | 3,841 | 4,209 |
Income before income taxes | 585 | 573 | 1,612 | 1,300 |
Income tax expense (benefit) | 227 | 223 | 626 | 509 |
Net income | 358 | 350 | 986 | 791 |
Average assets (in millions) | 29,000 | 27,000 | 29,000 | 26,000 |
Parent | Parent | ||||
Operating segments | ||||
Net interest income | 5,157 | (915) | 10,311 | (1,859) |
Provision for loan losses | 0 | 0 | 0 | 0 |
Non-interest income | 7,445 | 12,272 | 11,229 | 12,020 |
Non-interest expense | 4,591 | 406 | 5,305 | 871 |
Income before income taxes | 8,011 | 10,951 | 16,235 | 9,290 |
Income tax expense (benefit) | (2,033) | (513) | (2,568) | (1,068) |
Net income | 10,044 | 11,464 | 18,803 | 10,358 |
Average assets (in millions) | 884,000 | 744,000 | 821,000 | 733,000 |
Eliminations | ||||
Operating segments | ||||
Net interest income | (6,000) | 0 | (12,000) | 0 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Non-interest income | (7,247) | (12,272) | (10,849) | (12,020) |
Non-interest expense | 2 | 0 | 2 | 0 |
Income before income taxes | (13,249) | (12,272) | (22,851) | (12,020) |
Income tax expense (benefit) | (1) | 0 | (1) | 0 |
Net income | (13,248) | (12,272) | (22,850) | (12,020) |
Average assets (in millions) | $ (909,000) | $ (736,000) | $ (841,000) | $ (732,000) |
DERIVATIVE INSTRUMENTS AND HE77
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - NARRATIVE (Details) | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2014USD ($) | Jun. 30, 2015USD ($)contract | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | |||
Notional amount | $ 1,179,756,000 | $ 1,034,667,000 | |
Cash pledged as collateral to derivative counterparties | 6,000,000 | ||
Amortized cost of securities pledged as collateral to derivative counterparties | 24,800,000 | ||
Fair value of securities as pledged collateral to derivative counterparties | 24,800,000 | ||
Estimated fair value asset (liability) | (7,858,000) | (5,815,000) | |
Commercial counterparties | |||
Derivative [Line Items] | |||
Net asset position | 11,600,000 | 12,300,000 | |
FHLBB borrowings | |||
Derivative [Line Items] | |||
Extinguishment of FHLB advances | $ 215,000,000 | ||
Loss reclassified from the effective portion of the unrealized changes in the fair value of the derivatives | 8,600,000 | ||
Interest rate swaps | |||
Derivative [Line Items] | |||
Notional amount | 12,300,000 | ||
Cash pledged as collateral to derivative counterparties | 5,820,000 | 3,190,000 | |
Amount of collateral posted for the net liability positions | 16,400,000 | 18,200,000 | |
Interest rate swaps | Commercial counterparties | |||
Derivative [Line Items] | |||
Cash pledged as collateral to derivative counterparties | 0 | 0 | |
Interest rate swaps | FHLBB borrowings | |||
Derivative [Line Items] | |||
Notional amount of derivative contract terminated | 30,000,000 | ||
Interest rate swaps | 90 day rolling FHLB advances | |||
Derivative [Line Items] | |||
Notional amount of derivative contract terminated | 145,000,000 | ||
Forward-starting interest rate swaps on FHLBB borrowings | 90 day rolling FHLB advances | |||
Derivative [Line Items] | |||
Notional amount of derivative contract terminated | $ 235,000,000 | ||
Cash flow hedges: | |||
Derivative [Line Items] | |||
Notional amount | $ 300,000,000 | ||
Cash flow hedges: | Interest rate swaps | FHLBB borrowings | |||
Derivative [Line Items] | |||
Maturity period with fixed interest rate | 1 month | ||
Period of rolling advances | 1 month | ||
Cash flow hedges: | Forward-starting interest rate swaps on FHLBB borrowings | |||
Derivative [Line Items] | |||
Number of instruments | contract | 6 | ||
Durations of derivative instruments | 3 months | ||
Cash flow hedges: | Forward-starting interest rate swaps on FHLBB borrowings | FHLBB borrowings | |||
Derivative [Line Items] | |||
Notional amount | $ 300,000,000 | ||
Economic hedges: | |||
Derivative [Line Items] | |||
Notional amount | 824,000,000 | ||
Credit valuation adjustments | $ 94,700 | ||
Economic hedges: | Tax advantaged economic development bonds | |||
Derivative [Line Items] | |||
Fixed rate of interest | 5.09% | ||
Maturity period | 21 years | ||
Economic hedges: | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional amount | $ 692,600,000 | ||
Economic hedges: | Risk participation agreements | |||
Derivative [Line Items] | |||
Notional amount | 48,800,000 | ||
Estimated fair value asset (liability) | (100,000) | ||
Economic hedges: | Forward sale commitments | |||
Derivative [Line Items] | |||
Notional amount | 82,600,000 | ||
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | 55,749,000 | 39,589,000 | |
Estimated fair value asset (liability) | $ 382,000 | $ 625,000 |
DERIVATIVE INSTRUMENTS AND HE78
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 1,179,756 | $ 1,034,667 |
Estimated fair value asset (liability) | (7,858) | (5,815) |
Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 12,300 | |
Cash flow hedges: | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 300,000 | |
Cash flow hedges: | Forward-starting interest rate swaps on FHLBB borrowings | FHLBB borrowings | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 300,000 | |
Economic hedges: | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 824,000 | |
Economic hedges: | Interest rate swaps | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 692,600 | |
Economic hedges: | Risk participation agreements | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 48,800 | |
Estimated fair value asset (liability) | (100) | |
Economic hedges: | Forward sale commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 82,600 | |
Designated as Hedging Instrument | Cash flow hedges: | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 300,000 | 300,000 |
Estimated fair value asset (liability) | (6,416) | (3,299) |
Designated as Hedging Instrument | Cash flow hedges: | Forward-starting interest rate swaps on FHLBB borrowings | FHLBB borrowings | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 300,000 | $ 300,000 |
Weighted average maturity | 3 years 9 months 18 days | 4 years 3 months 18 days |
Weighted average rate, received | 0.00% | 0.00% |
Weighted average rate, contract pay rate | 2.29% | 2.29% |
Estimated fair value asset (liability) | $ (6,416) | $ (3,299) |
Designated as Hedging Instrument | Economic hedges: | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 824,007 | 695,078 |
Estimated fair value asset (liability) | (1,824) | (3,141) |
Designated as Hedging Instrument | Economic hedges: | Interest rate swaps | Tax advantaged economic development bonds | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 12,272 | $ 12,554 |
Weighted average maturity | 14 years 4 months 24 days | 14 years 10 months 24 days |
Weighted average rate, received | 0.52% | 0.52% |
Weighted average rate, contract pay rate | 5.09% | 5.09% |
Estimated fair value asset (liability) | $ (2,326) | $ (2,578) |
Designated as Hedging Instrument | Economic hedges: | Interest rate swaps | Loans with commercial loan customers | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 340,147 | $ 297,158 |
Weighted average maturity | 6 years 7 months 6 days | 6 years |
Weighted average rate, received | 1.74% | 2.23% |
Weighted average rate, contract pay rate | 4.54% | 4.54% |
Estimated fair value asset (liability) | $ (11,471) | $ (12,183) |
Designated as Hedging Instrument | Economic hedges: | Reverse interest rate swaps | Loans with commercial loan customers | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 340,147 | $ 297,158 |
Weighted average maturity | 6 years 7 months 6 days | 6 years |
Weighted average rate, received | 4.54% | 4.54% |
Weighted average rate, contract pay rate | 1.74% | 2.23% |
Estimated fair value asset (liability) | $ 11,567 | $ 12,221 |
Designated as Hedging Instrument | Economic hedges: | Risk participation agreements | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 48,801 | $ 45,842 |
Weighted average maturity | 15 years 8 months 12 days | 16 years 7 months 6 days |
Estimated fair value asset (liability) | $ (69) | $ (91) |
Designated as Hedging Instrument | Economic hedges: | Forward sale commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 82,640 | $ 42,366 |
Weighted average maturity | 2 months 12 days | 2 months 12 days |
Estimated fair value asset (liability) | $ 475 | $ (510) |
Not Designated as Hedging Instrument | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | 55,749 | 39,589 |
Estimated fair value asset (liability) | 382 | 625 |
Not Designated as Hedging Instrument | Interest rate lock commitments | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | ||
Notional amount | $ 55,749 | $ 39,589 |
Weighted average maturity | 2 months 12 days | 2 months 12 days |
Estimated fair value asset (liability) | $ 382 | $ 625 |
DERIVATIVE INSTRUMENTS AND HE79
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative [Line Items] | ||||
Reclassification of unrealized loss from accumulated other comprehensive income to interest expense | $ 7,766 | $ 6,846 | $ 15,024 | $ 13,875 |
Net interest expense recognized in interest expense on junior subordinated notes | 2,474 | 2,368 | 4,783 | 4,676 |
Interest rate swaps | Cash flow hedges: | ||||
Derivative [Line Items] | ||||
Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects | 468 | (1,945) | (1,861) | 2,681 |
FHLBB borrowings | Interest rate swaps | Cash flow hedges: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in accumulated other comprehensive loss | 784 | (3,343) | (3,117) | (4,127) |
Reclassification of unrealized loss from accumulated other comprehensive income to other non-interest income for termination of swaps | 0 | 0 | 0 | 8,630 |
Reclassification of unrealized deferred tax benefit from accumulated other comprehensive income to tax expense for terminated swaps | 0 | 0 | 0 | (3,611) |
Net tax benefit (expense) on items recognized in accumulated other comprehensive income | (316) | 1,352 | 1,256 | 1,666 |
Junior subordinated borrowings | Interest rate swaps | Cash flow hedges: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in accumulated other comprehensive loss | 0 | 0 | 0 | (1) |
Net tax benefit (expense) on items recognized in accumulated other comprehensive income | 0 | (29) | 0 | (80) |
Reclassification of unrealized loss from accumulated other comprehensive income to interest expense | 0 | 75 | 0 | 204 |
Net interest expense recognized in interest expense on junior subordinated notes | $ 0 | $ 75 | $ 0 | $ 204 |
DERIVATIVE INSTRUMENTS AND HE80
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest rate swaps | Economic hedges: | Industrial revenue bond | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | $ 331 | $ (350) | $ 60 | $ (731) |
Interest rate swaps | Economic hedges: | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | 3,889 | (1,919) | 775 | (1,732) |
Favorable (Unfavorable) change in credit valuation adjustment recognized in other non-interest income | 56 | 4 | 57 | 11 |
Reverse interest rate swaps | Economic hedges: | Loans with commercial loan customers | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | (3,889) | 1,919 | (775) | 1,732 |
Risk participation agreements | Economic hedges: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | 31 | 0 | (40) | 0 |
Forward sale commitments | Economic hedges: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | 475 | (561) | 87 | (669) |
Realized gain in other non-interest income | 504 | (177) | 413 | (341) |
Interest rate lock commitments | Non-hedging derivatives: | ||||
Derivative [Line Items] | ||||
Unrealized gain (loss) recognized in other non-interest income | 382 | 660 | 1,359 | 1,037 |
Realized gain in other non-interest income | $ 186 | $ 769 | $ 941 | $ 1,035 |
DERIVATIVE INSTRUMENTS AND HE81
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 3) - Interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | $ 11,612 | $ 12,293 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of assets presented in the Statements of Condition | 11,612 | 12,293 |
Gross amounts not offset in the Statement of Condition, financial instruments | 0 | 0 |
Gross amounts not offset in the Statement of Condition, cash collateral received | 0 | 0 |
Net amount | 11,612 | 12,293 |
Institutional counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 27 | 23 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of assets presented in the Statements of Condition | 27 | 23 |
Gross amounts not offset in the Statement of Condition, financial instruments | 0 | 0 |
Gross amounts not offset in the Statement of Condition, cash collateral received | 0 | 0 |
Net amount | 27 | 23 |
Commercial counterparties | ||
Offsetting of Financial Assets and Derivative Assets | ||
Gross amounts of recognized assets | 11,585 | 12,270 |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of assets presented in the Statements of Condition | 11,585 | 12,270 |
Gross amounts not offset in the Statement of Condition, financial instruments | 0 | 0 |
Gross amounts not offset in the Statement of Condition, cash collateral received | 0 | 0 |
Net amount | $ 11,585 | $ 12,270 |
DERIVATIVE INSTRUMENTS AND HE82
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts not offset in the Statements of Condition, cash collateral pledged | $ 6,000 | |
Interest rate swaps | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (16,439) | $ (18,282) |
Gross amounts offset in the Statements of Condition | 5 | 58 |
Net amounts of liabilities presented in the Statements of Condition | (16,434) | (18,224) |
Gross amounts not offset in the Statements of Condition, financial instruments | 10,596 | 14,984 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 5,820 | 3,190 |
Net amount | (18) | (50) |
Interest rate swaps | Institutional counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (16,421) | (18,232) |
Gross amounts offset in the Statements of Condition | 5 | 58 |
Net amounts of liabilities presented in the Statements of Condition | (16,416) | (18,174) |
Gross amounts not offset in the Statements of Condition, financial instruments | 10,596 | 14,984 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 5,820 | 3,190 |
Net amount | 0 | 0 |
Interest rate swaps | Commercial counterparties | ||
Offsetting of Financial Liabilities and Derivative Liabilities | ||
Gross amounts of recognized liabilities | (18) | (50) |
Gross amounts offset in the Statements of Condition | 0 | 0 |
Net amounts of liabilities presented in the Statements of Condition | (18) | (50) |
Gross amounts not offset in the Statements of Condition, financial instruments | 0 | 0 |
Gross amounts not offset in the Statements of Condition, cash collateral pledged | 0 | 0 |
Net amount | $ (18) | $ (50) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | $ 14,378 | $ 14,909 |
Securities available for sale, at fair value | 1,204,756 | 1,091,818 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 14,378 | 14,909 |
Securities available for sale, at fair value | 1,204,756 | 1,091,818 |
Loans held for sale | 48,514 | 19,493 |
Derivative assets | 12,466 | 12,953 |
Derivative liabilities | 20,326 | 18,769 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Securities available for sale, at fair value | 33,983 | 5,806 |
Loans held for sale | 0 | 0 |
Derivative assets | 425 | 0 |
Derivative liabilities | 0 | 417 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Securities available for sale, at fair value | 1,170,000 | 1,035,686 |
Loans held for sale | 48,514 | 19,493 |
Derivative assets | 11,610 | 12,328 |
Derivative liabilities | 20,326 | 18,259 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 14,378 | 14,909 |
Securities available for sale, at fair value | 773 | 2,326 |
Loans held for sale | 0 | 0 |
Derivative assets | 431 | 625 |
Derivative liabilities | 0 | 93 |
Recurring | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 14,378 | 14,909 |
Loans held for sale | 37,324 | 19,493 |
Derivative assets | 12,466 | 12,953 |
Derivative liabilities | 20,326 | 18,769 |
Recurring | Total Fair Value | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 150,301 | 133,699 |
Recurring | Total Fair Value | Debt securities | Government-guaranteed residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 61,867 | 69,468 |
Recurring | Total Fair Value | Debt securities | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 889,698 | 760,184 |
Recurring | Total Fair Value | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 50,758 | 54,151 |
Recurring | Total Fair Value | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 13,265 | 16,215 |
Recurring | Total Fair Value | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 3,167 | 3,159 |
Recurring | Total Fair Value | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 35,700 | 54,942 |
Recurring | Portion at Other than Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 11,200 | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 0 | 0 |
Derivative assets | 425 | 0 |
Derivative liabilities | 0 | 417 |
Recurring | Level 1 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Government-guaranteed residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 33,983 | 53,806 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 0 | 0 |
Loans held for sale | 37,324 | 19,493 |
Derivative assets | 11,610 | 12,328 |
Derivative liabilities | 20,326 | 18,259 |
Recurring | Level 2 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 150,301 | 133,699 |
Recurring | Level 2 | Debt securities | Government-guaranteed residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 61,867 | 69,468 |
Recurring | Level 2 | Debt securities | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 889,698 | 760,184 |
Recurring | Level 2 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 50,758 | 54,151 |
Recurring | Level 2 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 13,265 | 14,667 |
Recurring | Level 2 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 3,167 | 3,159 |
Recurring | Level 2 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 944 | 358 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading security | 14,378 | 14,909 |
Loans held for sale | 0 | 0 |
Derivative assets | 431 | 625 |
Derivative liabilities | 0 | 93 |
Recurring | Level 3 | Debt securities | Municipal bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Government-guaranteed residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Government-sponsored residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Debt securities | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 1,548 |
Recurring | Level 3 | Debt securities | Other bonds and obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 773 | $ 778 |
FAIR VALUE MEASUREMENTS - NARRA
FAIR VALUE MEASUREMENTS - NARRATIVE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)security | Jun. 30, 2014USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Junior subordinated debentures re-price period | 90 days | |||
Loans Held for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gains in fair value of loans held for sale included in earnings | $ | $ 285 | $ 427 | $ 71 | $ 467 |
Trading Security | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of securities in the portfolio | 1 | |||
Privately owned equity security | Securities Available for Sale | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of securities in the portfolio | 1 |
FAIR VALUE MEASUREMENTS (Deta85
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | $ 48,514 | $ 19,493 |
Aggregate Unpaid Principal | 2,519 | 1,280 |
Recurring | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 37,324 | 19,493 |
Recurring | Loans Held for Sale | Level 2 | ||
Loans Held for Sale | ||
Aggregate Fair Value | 37,324 | 19,493 |
Aggregate Unpaid Principal | 36,787 | 18,885 |
Aggregate Fair Value Less Aggregate Unpaid Principal | 537 | $ 608 |
Portion at Other than Fair Value Measurement | Recurring | ||
Loans Held for Sale | ||
Aggregate Fair Value | $ 11,200 |
FAIR VALUE MEASUREMENTS (Deta86
FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Paydown of trading security | $ 863 | $ 1,008 | ||
Forward Commitments. | ||||
Liabilities | ||||
Balance at the beginning of the period | $ (93) | $ (96) | (93) | 19 |
Unrealized (loss) gain recognized in other non-interest income | 143 | (67) | 143 | (182) |
Balance at the end of the period | 50 | (163) | 50 | (163) |
Unrealized gains (losses) relating to instruments still held at the end of the period | 50 | (163) | 50 | (163) |
Trading Security | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Balance at the beginning of the period | 14,970 | 14,923 | 14,909 | 14,840 |
Sale AFS Security | 0 | 0 | ||
Unrealized (loss) gain, net recognized in other non-interest income | (451) | 181 | (248) | 399 |
Unrealized gain included in accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Paydown of trading security | (141) | (133) | (283) | (268) |
Transfers to held for sale loans | 0 | 0 | 0 | 0 |
Balance at the end of the period | 14,378 | 14,971 | 14,378 | 14,971 |
Liabilities | ||||
Unrealized gains (losses) relating to instruments still held at the end of the period | 2,106 | 2,144 | 2,106 | 2,144 |
Securities Available for Sale | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Balance at the beginning of the period | 719 | 2,046 | 2,326 | 1,964 |
Sale AFS Security | 0 | (1,327) | ||
Unrealized (loss) gain, net recognized in other non-interest income | 0 | 0 | 0 | 0 |
Unrealized gain included in accumulated other comprehensive loss | 54 | 171 | (226) | 253 |
Paydown of trading security | 0 | 0 | 0 | 0 |
Transfers to held for sale loans | 0 | 0 | 0 | 0 |
Balance at the end of the period | 773 | 2,217 | 773 | 2,217 |
Liabilities | ||||
Unrealized gains (losses) relating to instruments still held at the end of the period | 3 | (1,118) | 3 | (1,118) |
Interest rate lock commitments | ||||
Changes in Level 3 assets that were measured at fair value on a recurring basis | ||||
Balance at the beginning of the period | 977 | 377 | 625 | 258 |
Sale AFS Security | 0 | 0 | ||
Unrealized (loss) gain, net recognized in other non-interest income | 941 | 1,075 | 2,671 | 1,794 |
Unrealized gain included in accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Paydown of trading security | 0 | 0 | 0 | 0 |
Transfers to held for sale loans | (1,536) | (792) | (2,914) | (1,392) |
Balance at the end of the period | 382 | 660 | 382 | 660 |
Liabilities | ||||
Unrealized gains (losses) relating to instruments still held at the end of the period | $ 382 | $ 660 | $ 382 | $ 660 |
FAIR VALUE MEASUREMENTS (Deta87
FAIR VALUE MEASUREMENTS (Details 4) - Level 3 - Recurring - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 15,583 | $ 17,767 |
Trading Security | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 14,378 | $ 14,909 |
Discount Rate | 2.73% | 2.60% |
Securities Available for Sale | Discounted Cash Flow | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 2,326 | |
Discount Rate | 13.74% | |
Credit Spread | 11.06% | |
Securities Available for Sale | Pricing Model | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 773 | |
Median Peer Price/Tangible Book Value Percentage Multiple | 99.02% | |
Forward Commitments | Historical Trend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 50 | |
Liabilities, measured on a recurring basis | $ (93) | |
Closing Ratio | 92.11% | 91.07% |
Forward Commitments | Pricing Model | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Origination Costs, per loan | $ 2,500 | $ 2,500 |
Interest rate lock commitments | Historical Trend | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Assets measured on recurring basis | $ 382 | $ 625 |
Closing Ratio | 92.11% | 91.07% |
Interest rate lock commitments | Pricing Model | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Origination Costs, per loan | $ 2,500 | $ 2,500 |
FAIR VALUE MEASUREMENTS (Deta88
FAIR VALUE MEASUREMENTS (Details 5) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 674 | $ 2,049 |
Non-recurring | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 6,659 | 5,820 |
Capitalized mortgage servicing rights | 4,697 | 3,757 |
Other real estate owned | 674 | 2,049 |
Total | 12,030 | $ 11,626 |
Changes Measurement | Non-recurring | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 839 | |
Capitalized mortgage servicing rights | 0 | |
Other real estate owned | (285) | |
Total | $ 554 |
FAIR VALUE MEASUREMENTS (Deta89
FAIR VALUE MEASUREMENTS (Details 6) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 674,000 | $ 2,049,000 |
Non-recurring | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 6,659,000 | 5,820,000 |
Capitalized mortgage servicing rights | 4,697,000 | 3,757,000 |
Other real estate owned | 674,000 | 2,049,000 |
Total | 12,030,000 | 11,626,000 |
Non-recurring | Impaired loans | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | $ 6,659,000 | $ 5,820,000 |
Non-recurring | Impaired loans | Minimum | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 0.31% | |
Non-recurring | Impaired loans | Minimum | Fair Value Of Collateral Valuation Technique | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 0.41% | |
Appraised value | $ 2,700 | $ 5,000 |
Non-recurring | Impaired loans | Maximum | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 38.70% | |
Non-recurring | Impaired loans | Maximum | Fair Value Of Collateral Valuation Technique | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 38.41% | |
Appraised value | $ 2,272,000 | $ 1,600,000 |
Non-recurring | Impaired loans | Weighted Average | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 12.65% | |
Non-recurring | Impaired loans | Weighted Average | Fair Value Of Collateral Valuation Technique | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 9.15% | |
Appraised value | $ 491,600 | $ 912,700 |
Non-recurring | Capitalized mortgage servicing rights | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized mortgage servicing rights | $ 4,697,000 | $ 3,757,000 |
Non-recurring | Capitalized mortgage servicing rights | Minimum | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 7.83% | |
Non-recurring | Capitalized mortgage servicing rights | Minimum | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 7.67% | |
Discount Rate | 10.00% | 10.00% |
Non-recurring | Capitalized mortgage servicing rights | Maximum | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 19.00% | |
Non-recurring | Capitalized mortgage servicing rights | Maximum | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 21.08% | |
Discount Rate | 13.00% | 13.00% |
Non-recurring | Capitalized mortgage servicing rights | Weighted Average | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 9.92% | |
Non-recurring | Capitalized mortgage servicing rights | Weighted Average | Discounted Cash Flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 10.43% | |
Discount Rate | 10.58% | 10.43% |
Non-recurring | Other real estate owned | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 674,000 | $ 2,049,000 |
Non-recurring | Other real estate owned | Minimum | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | 57,000 | |
Non-recurring | Other real estate owned | Minimum | Fair Value Of Collateral Valuation Technique | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | 57,000 | |
Non-recurring | Other real estate owned | Maximum | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | 700,000 | |
Non-recurring | Other real estate owned | Maximum | Fair Value Of Collateral Valuation Technique | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | 700,000 | |
Non-recurring | Other real estate owned | Weighted Average | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | $ 462,600 | |
Non-recurring | Other real estate owned | Weighted Average | Fair Value Of Collateral Valuation Technique | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | $ 595,600 |
FAIR VALUE MEASUREMENTS (Deta90
FAIR VALUE MEASUREMENTS (Details 7) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Trading security | $ 14,378 | $ 14,909 |
Securities available for sale | 1,204,756 | 1,091,818 |
Securities held to maturity | 87,512 | 44,997 |
FHLB bank stock and restricted securities | 73,212 | 55,720 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 205,518 | 71,754 |
Trading security | 0 | 0 |
Securities available for sale | 33,983 | 5,806 |
Securities held to maturity | 0 | 0 |
FHLB bank stock and restricted securities | 0 | 0 |
Net loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | 0 |
Derivative assets | 425 | 0 |
Assets held for sale | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances | 0 | 0 |
Subordinated borrowings | 0 | 0 |
Derivative liabilities | 0 | 417 |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 0 | 0 |
Securities available for sale | 1,170,000 | 1,035,686 |
Securities held to maturity | 0 | 0 |
FHLB bank stock and restricted securities | 73,212 | 55,720 |
Net loans | 0 | 0 |
Loans held for sale | 48,514 | 19,493 |
Accrued interest receivable | 19,120 | 17,274 |
Cash surrender value of bank-owned life insurance policies | 123,536 | 104,588 |
Derivative assets | 11,610 | 12,328 |
Assets held for sale | 2,519 | 1,280 |
Financial Liabilities | ||
Total deposits | 5,324,354 | 4,655,234 |
Short-term debt | 1,058,162 | 900,983 |
Long-term Federal Home Loan Bank advances | 121,809 | 63,283 |
Subordinated borrowings | 94,320 | 93,441 |
Derivative liabilities | 20,326 | 18,259 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Trading security | 14,378 | 14,909 |
Securities available for sale | 773 | 2,326 |
Securities held to maturity | 87,512 | 44,997 |
FHLB bank stock and restricted securities | 0 | 0 |
Net loans | 5,293,778 | 4,695,256 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | 0 |
Derivative assets | 431 | 625 |
Assets held for sale | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term Federal Home Loan Bank advances | 0 | 0 |
Subordinated borrowings | 0 | 0 |
Derivative liabilities | 0 | 93 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 205,518 | 71,754 |
Trading security | 14,378 | 14,909 |
Securities available for sale | 1,204,756 | 1,091,818 |
Securities held to maturity | 86,994 | 43,347 |
FHLB bank stock and restricted securities | 73,212 | 55,720 |
Net loans | 5,247,417 | 4,644,938 |
Loans held for sale | 48,514 | 19,493 |
Accrued interest receivable | 19,120 | 17,274 |
Cash surrender value of bank-owned life insurance policies | 123,536 | 104,588 |
Derivative assets | 12,466 | 12,953 |
Assets held for sale | 2,519 | 1,280 |
Financial Liabilities | ||
Total deposits | 5,322,176 | 4,654,679 |
Short-term debt | 1,058,001 | 900,900 |
Long-term Federal Home Loan Bank advances | 118,483 | 61,676 |
Subordinated borrowings | 89,782 | 89,747 |
Derivative liabilities | 20,326 | 18,769 |
Total Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 205,518 | 71,754 |
Trading security | 14,378 | 14,909 |
Securities available for sale | 1,204,756 | 1,091,818 |
Securities held to maturity | 87,512 | 44,997 |
FHLB bank stock and restricted securities | 73,212 | 55,720 |
Net loans | 5,293,778 | 4,695,256 |
Loans held for sale | 48,514 | 19,493 |
Accrued interest receivable | 19,120 | 17,274 |
Cash surrender value of bank-owned life insurance policies | 123,536 | 104,588 |
Derivative assets | 12,466 | 12,953 |
Assets held for sale | 2,519 | 1,280 |
Financial Liabilities | ||
Total deposits | 5,324,354 | 4,655,234 |
Short-term debt | 1,058,162 | 900,983 |
Long-term Federal Home Loan Bank advances | 121,809 | 63,283 |
Subordinated borrowings | 94,320 | 93,441 |
Derivative liabilities | $ 20,326 | $ 18,769 |
NET INTEREST INCOME AFTER PRO91
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Banking and Thrift, Interest [Abstract] | ||||
Net interest income | $ 52,637 | $ 44,329 | $ 98,130 | $ 87,095 |
Provision for loan losses | 4,204 | 3,989 | 8,055 | 7,385 |
Net interest income after provision for loan losses | $ 48,433 | $ 40,340 | $ 90,075 | $ 79,710 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Firestone Financial Corp. - USD ($) | Aug. 07, 2015 | Jun. 30, 2015 |
SUBSEQUENT EVENTS | ||
Assets acquired | $ 201,200,000 | |
Loans outstanding | 197,700,000 | |
Acquisition related costs | $ 896,000 | |
Subsequent Event | ||
SUBSEQUENT EVENTS | ||
Number of shares received by shareholders | 1,400,000 | |
Cash paid in business combination | $ 13,700,000 |
Uncategorized Items - bhlb-2015
Label | Element | Value |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | $ 1,274 |
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | $ 934 |